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****UNITED        STATES****

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D. C. 20549**

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**FORM          10-QSB**

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**xQuarterly      Report      Pursuant to Section 13 or 15(d) of the Securities Exchange**

**Act      of 1934**

**For      the quarterly period ended June 30, 2007**

**or**

**o  Transition      Report Pursuant to Section 13 or 15(d) of the Securities**

**Exchange      Act of 1934**

**For      the transition period from ___________ to _____________**

**Commission      File Number**
**033-05384**

**IR      BIOSCIENCES HOLDINGS, INC.**

| **Delaware**                                                                  |   | **13-3301899**                                      |
|-------------------------------------------------------------------------------|--------|-----------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) |   | (I.R.S.                Employer Identification No.) |

**4021      N. 75th Street, Suite 201,Scottsdale, Arizona 85251**

**(480)      922-3926**

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Table          of Contents

**IR      BIOSCIENCES HOLDINGS, INC. AND SUBSIDIARY**

**Table      Of Contents**

**PART**
** **
**I**

|                                                                                                                                                                                                                                                              | **Page**                   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|
| Item              1. Financial Statements                                                                                                                                                                                                                         |                       |
| Condensed                Consolidated Balance Sheet as of June 30, 2007                (unaudited)                                                                                                                                                                | F-1                        |
| Condensed                Consolidated Statement of Losses for the three                and six months ended June 30, 2007 and 2006, and for the  period                of inception (October 30, 2002) to June 30, 2007                (unaudited) | F-2                        |
| Condensed                Consolidated Statement of Stockholders'                Equity (Deficit) from date of inception (October 30, 2002) to                June 30, 2007 (unaudited)                                                                  | F-3                to F-9  |
| Condensed                Consolidated Statements of Cash Flows for the                six months ended June 30, 2007 and 2006, and for the period of                inception (October 30, 2002) to June 30, 2007                (unaudited)            | F-10                to F11 |
| Notes                to Consolidated Financial Statements                                                                                                                                                                                                         | F-12                       |
| Item                2. Management's Discussion and Analysis of                Financial Condition or Plan of Operation                                                                                                                                       | 3                          |
| Item                3. Controls and Procedures                                                                                                                                                                                                                    | 9                          |
|                                                                                                                                                                                                                                                              |                       |
| **PART                II**  Other Information                                                                                                                                                                                                                |                       |
|                                                                                                                                                                                                                                                              |                       |
| Item                1. Legal Proceedings                                                                                                                                                                                                                          | 10                         |
| Item                2. Unregistered Sale of Equity Securities and                Use of Proceeds                                                                                                                                                             | 10                         |
| Item                3. Defaults Upon Senior                Securities                                                                                                                                                                                             | 10                         |
| Item                4. Submission of Matters to a Vote of Securities                Holders                                                                                                                                                                  | 10                         |
| Item                5. Other Information                                                                                                                                                                                                                          | 10                         |
| Item                6. Exhibits                                                                                                                                                                                                                                   | 10                         |
|                                                                                                                                                                                                                                                              |                       |
| Signatures                                                                                                                                                                                                                                                        | 11                         |

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Table          of Contents

**ITEM      1. FINANCIAL INFORMATION**

**IR      BioSciences Holdings, Inc. and Subsidiary**

**(A      Development Stage Company)**

**Condensed      Consolidated Balance Sheet as of June 30, 2007**

**(Unaudited)**

| **Assets**                                                                                                           |
|----------------------------------------------------------------------------------------------------------------------|
| Current                  assets                                                                                      |   |   |   |
|                                                                                                                 |   |   |   |
| Cash                  and cash equivalents                                                                      | $ | 1,513,379 |   |
| Prepaid                  services and other current assets (Note 1)                                                  |   | 48,031 |   |
| Salary                  advance (Note 1)                                                                             |   | 3,975 |   |
|                                                                                                                 |   |   |   |
| Total                  current assets                                                                                |   | 1,565,385 |   |
|                                                                                                                 |   |   |   |
| Deposits                  and other assets (Note 1)                                                                  |   | 2,260 |   |
| Furniture                  and equipment, net of accumulated depreciation of $18,351 (Note                  2)  |   | 29,747 |   |
|                                                                                                                 |   |   |   |
| Total                  assets                                                                                        | $ | 1,597,392 |   |
|                                                                                                                 |   |   |   |
| **Liabilities                  and Stockholders' Equity**                                                            |
| Current                  liabilities                                                                                 |   |   |   |
| Accounts                  payable and accrued liabilities (Note 4)                                                   | $ | 593,806 |   |
| Current                  portion of Notes Payable (Note 5)                                                      |   | 50,000 |   |
|                                                                                                                 |   |   |   |
| Total                  current liabilities                                                                           |   | 643,806 |   |
|                                                                                                                 |   |   |   |
| Commitments                  and Contingencies                                                                       |   | - |   |
|                                                                                                                 |   |   |   |
| Stockholders'                  Equity                                                                                |   |   |   |
| Preferred                  stock, $0.001 par value:                                                                  |   |   |   |
| 10,000,000                  shares authorized, no shares issued and outstanding                                      |   | - |   |
| Common                  stock, $0.001 par value; 250,000,000 shares                  authorized;                     |   |   |   |
| 114,322,539                  shares issued and outstanding at June 30, 2007 (Note                  6)                |   | 114,323 |   |
| Additional                  paid-in capital                                                                          |   | 16,100,898 |   |
| Deficit                  accumulated during the development stage                                                    |   | (15,261,635 | ) |
| Total                  stockholders’ equity                                                                    |   | 953,586 |   |
|                                                                                                                 |   |   |   |
| Total                  liabilities and stockholders' equity                                                          | $ | 1,597,392 |   |

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Table          of Contents

**IR      BioSciences Holdings, Inc. and Subsidiary**

**(A      Development Stage Company)**

**Condensed      Consolidated Statement of Losses**

**For      the three and six months ended June 30, 2007 and 2006,**

**And      for the period of inception (October 30, 2002) to June 30,      2007**

**(Unaudited)**

|                                                                  | **For                the Three Months Ended****June                30,** |        | **For                the Six Months Ended****June                30,** |   | **For                the Period October 30, 2002 to** |   |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------|-------------|------------------------------------------------------------------------|--------|-------------------------------------------------------|--------|
|                                                                  |                                                                     | **2007**    |                                                                   |   | **2006**                                              |   |   | **2007** |   |   | **2006** |   |  **June                30****, 2007** |   |
| Revenues                                                              | $                                                                        | -           |                                                                   | $      | -                                                     |   | $ | - |   | $ | - |   | $ | - |   |
|                                                                  |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses:                                  |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
|                                                                  |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Selling,                  general and administrative expenses         |                                                                     | 1,141,908   |                                                                   |   | 601,972                                               |   |   | 2,016,018 |   |   | 1,163,116 |   |   | 12,585,636 |   |
| Merger                  fees and costs                                |                                                                     | -           |                                                                   |   | -                                                     |   |   | - |   |   | - |   |   | 350,000 |   |
| Financing                  cost                                       |                                                                     | -           |                                                                   |   | -                                                     |   |   | - |   |   | - |   |   | 90,000 |   |
| Impairment                  of intangible asset costs                 |                                                                     | -           |                                                                   |   | -                                                     |   |   | - |   |   | - |   |   | 6,393 |   |
| Total                  operating expenses                             |                                                                     | 1,141,908   |                                                                   |   | 601,972                                               |   |   | 2,016,018 |   |   | 1,163,116 |   |   | 13,032,029 |   |
|                                                                  |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Operating                  loss                                       |                                                                     | (1,141,908  | )                                                                      |   | (601,972                                              | )      |   | (2,016,018 | ) |   | (1,163,116 | ) |   | (13,032,029 | ) |
|                                                                  |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Other                  expense:                                       |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Cost                  of penalty for late registration of shares      |                                                                     | -           |                                                                   |   | (994,574                                              | )      |   | - |   |   | (438,601 | ) |   | 2,192,160 |   |
| (Gain)                  loss from marking to market - warrant portion |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| of                  penalty for late registration of shares           |                                                                     | -           |                                                                   |   | (39,887                                               | )      |   | - |   |   | (46,755 | ) |   | (378,198 | ) |
| (Gain)                  loss from marketing to market - stock portion |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| of                  penalty for late registration of shares           |                                                                     | -           |                                                                   |   | (124,524                                              | )      |   | - |   |   | (72,101 | ) |   | (760,058 | ) |
| Interest                  (income) expense, net                       |                                                                     | (26,812     | )                                                                      |   | 15,057                                                |   |   | (47,678 | ) |   | 14,891 |   |   | 1,167,587 |   |
|                                                                  |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Total                  other (income) expense                         |                                                                     | (26,812     | )                                                                      |   | (1,143,928                                            | )      |   | (47,678 | ) |   | (542,566 | ) |   | 2,221,491 |   |
|                                                                  |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) before income taxes                    |                                                                     | (1,115,096  | )                                                                      |   | 541,956                                               |   |   | (1,968,340 | ) |   | (620,550 | ) |   | (15,253,520 | ) |
|                                                                  |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Provision                  for income taxes                           |                                                                     | -           |                                                                   |   | -                                                     |   |   | (8,115 | ) |   | - |   |   | (8,115 | ) |
|                                                                  |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Net                  (loss)                                           | $                                                                        | (1,115,096  | )                                                                      | $      | 541,956                                               |   | $ | (1,976,455 | ) | $ | (620,550 | ) | $ | (15,261,635 | ) |
|                                                                  |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Net                  income (loss) per share - basic and diluted      | $                                                                        | (0.01       | )                                                                      | $      | 0.01                                                  |   | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.28 | ) |
|                                                                  |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average shares outstanding -                |                                                                     |        |                                                                   |   |                                                  |   |   |   |   |   |   |   |   |   |   |
| basic                  and diluted                                    |                                                                     | 114,322,539 |                                                                   |   | 69,632,567                                            |   |   | 114,119,683 |   |   | 69,554,432 |   |   | 54,267,855 |   |

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Table          of Contents

**IR      BioSciences Holding, Inc. and Subsidiary**

**(A      Development Stage Company)**

**Consolidated      Statement of Stockholders' Equity (Deficit)**

**From      date of inception (October 30, 2002) to June 30, 2007**

**(Unaudited)**

|                                                                                                                                                          |                            |       |        |       |   | **Additional** |   |   |             |   |   | **Common**      |   |   |        |   |   |      |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------|------------|-------------|------------|--------|----------------|--------|--------|------------------|--------|--------|-----------------|--------|--------|-------------|--------|--------|-----------|--------|
|                                                                                                                                                          | **Common                Stock** |       | **Paid-In** |       |   | **Deferred**   |   |   | **Stock**        |   |   | **Accumulated** |   |   |        |   |
|                                                                                                                                                          | **Shares**                      |       |        | **Amount** |   | **Capital**    |   |   | **Compensation** |   |   | **Subscribed**  |   |   | **Deficit** |   |   | **Total** |   |
| Balance                at October 30, 2002 (date of inception)                                                                                                |                            | -          |        |       | $      | -              |   | $      | -                |   |   | $               | -      |   |        | $      | -      |      |   | $ | - |   |   | $ | - |   |
|                                                                                                                                                          |                            |       |        |       |   |           |   |   |             |   |   |            |   |   |        |   |   |      |   |   |   |   |   |   |   |   |
| Shares                of common stock issued at $0.0006 per share to founders for license                of                proprietary right in December 2002 |                            | 16,612,276 |        |       |   | 16,612         |   |   | (7,362           | )      |   |            | -      |   |        |   | -      |      |   |   | - |   |   |   | 9,250 |   |
|                                                                                                                                                          |                            |       |        |       |   |           |   |   |             |   |   |            |   |   |        |   |   |      |   |   |   |   |   |   |   |   |
| Shares                of common stock issued at $0.0006 per share to founders for services                rendered in December 2002                           |                            | 1,405,310  |        |       |   | 1,405          |   |   | (623             | )      |   |            | -      |   |        |   | -      |      |   |   | - |   |   |   | 782 |   |
|                                                                                                                                                          |                            |       |        |       |   |           |   |   |             |   |   |            |   |   |        |   |   |      |   |   |   |   |   |   |   |   |
| Shares                of common stock issued at $0.1671 per share to consultants for services                rendered in December 2002                        |                            | 53,878     |        |       |   | 54             |   |   | 8,946            |   |   |            | (9,000 | )      |        |   | -      |      |   |   | - |   |   |   | - |   |
|                                                                                                                                                          |                            |       |        |       |   |           |   |   |             |   |   |            |   |   |        |   |   |      |   |   |   |   |   |   |   |   |
| Sale                of common stock for cash at $0.1671 per share in December                2002                                                             |                            | 185,578    |        |       |   | 186            |   |   | 30,815           |   |   |            | -      |   |        |   | -      |      |   |   | - |   |   |   | 31,001 |   |
|                                                                                                                                                          |                            |       |        |       |   |           |   |   |             |   |   |            |   |   |        |   |   |      |   |   |   |   |   |   |   |   |
| Net                loss for the period from inception (October 30, 2002) to December                31,                2002                                   |                            | -          |        |       |   | -              |   |   | -                |   |   |            | -      |   |        |   | -      |      |   |   | (45,918 | ) |   |   | (45,918 | ) |
|                                                                                                                                                          |                            |       |        |       |   |           |   |   |             |   |   |            |   |   |        |   |   |      |   |   |   |   |   |   |   |   |
| Balance                at December 31, 2002 (reflective of stock splits)                                                                                      |                            | 18,257,042 |        |       | $      | 18,257         |   | $      | 31,776           |   |   | $               | (9,000 | )      |        | $      | -      |      |   | $ | (45,918 | ) |   | $ | (4,885 | ) |

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Table          of Contents

**IR        BioSciences Holding, Inc. and Subsidiary**

**(A        Development Stage Company)**

**Consolidated        Statement of Stockholders' Equity (Deficit)**

**From        date of inception (October 30, 2002) to June 30, 2007**

**(Unaudited)**

**(Continued)**

|   |                              |   |        |       |         | **Additional** |   |             |   |   | **Common**      |   |   |        |   |   |      |   |
|--------|-----------------------------------|--------|-------------|------------|--------------|----------------|--------|------------------|--------|--------|-----------------|--------|--------|-------------|--------|--------|-----------|--------|
|   | **Common                  Stock** |   | **Paid-In** |       | **Deferred** |           |   | **Stock**        |   |   | **Accumulated** |   |   |        |   |
|   | **Shares**                        |   |        | **Amount** |         | **Capital**    |   | **Compensation** |   |   | **Subscribed**  |   |   | **Deficit** |   |   | **Total** |   |
|   |                              |   |        |       |         |           |   |             |   |   |            |   |   |        |   |   |      |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
| Shares                granted to consultants at $0.1392 per share for services rendered                in                January 2003                         |   |   | 98,776     |   |   |   | 99     |   |   |   | 13,651    |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 13,750     |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Sale                of shares of common stock for cash at $0.1517 per share in January                2003                                                    |   |   | 329,552    |   |   |   | 330    |   |   |   | 49,670    |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 50,000     |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Shares                granted to consultants at $0.1392 per share for services rendered                in March                2003                           |   |   | 154,450    |   |   |   | 154    |   |   |   | 21,346    |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 21,500     |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Conversion                of notes payable to common stock at $0.1392 per share in April                2003                                                  |   |   | 1,436,736  |   |   |   | 1,437  |   |   |   | 198,563   |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 200,000    |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Shares                granted to consultants at $0.1413 per share for services rendered                in April                2003                           |   |   | 14,368     |   |   |   | 14     |   |   |   | 2,016     |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 2,030      |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Sale                of shares of common stock for cash at $0.2784 per share in May                2003                                                        |   |   | 17,960     |   |   |   | 18     |   |   |   | 4,982     |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 5,000      |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Sales                of shares of common stock for cash at $0.2784 per share in June                2003                                                      |   |   | 35,918     |   |   |   | 36     |   |   |   | 9,964     |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 10,000     |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Conversion                of notes payable to common stock at $0.1392 per share in June                2003                                                   |   |   | 718,368    |   |   |   | 718    |   |   |   | 99,282    |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 100,000    |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Beneficial                conversion feature associated with notes issued in June                2003                                                         |   |   | -          |   |   |   | -      |   |   |   | 60,560    |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 60,560     |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Amortization                of deferred compensation                                                                                                          |   |   | -          |   |   |   | -      |   |   |   | -         |   |   |   | 9,000  |   |   |   | -      |   |   |   | -          |   |   |   | 9,000      |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Costs                of GPN Merger in July 2003                                                                                                               |   |   | 2,368,130  |   |   |   | 2,368  |   |   |   | (123,168  | )      |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | (120,799   | )      |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Value                of warrants issued with extended notes payable in October                2003                                                            |   |   | -          |   |   |   | -      |   |   |   | 189,937   |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 189,937    |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Value                of Company warrants issued in conjunction with fourth quarter notes                payable issued October through December 2003          |   |   | -          |   |   |   | -      |   |   |   | 207,457   |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 207,457    |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Value                of warrants contributed by founders in conjunction with fourth quarter                notes payable issued October through December 2003 |   |   | -          |   |   |   | -      |   |   |   | 183,543   |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 183,543    |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Value                of warrants issued for services in October through December                2003                                                          |   |   | -          |   |   |   | -      |   |   |   | 85,861    |   |   |   | -      |   |   |   | -      |   |   |   | -          |   |   |   | 85,861     |   |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Net                loss for the twelve month period ended December 31, 2003                                                                                   |   |   | -          |   |   |   | -      |   |   |   | -         |   |   |   | -      |   |   |   | -      |   |   |   | (1,856,702 | )      |   |   | (1,856,702 | )      |
|                                                                                                                                                          |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Balance                at December 31, 2003                                                                                                                   |   |   | 23,431,300 |   |   | $      | 23,431 |   |   | $      | 1,035,441 |   |   | $      | -      |   |   | $      | -      |   |   | $      | (1,902,620 | )      |   | $      | (843,748   | )      |

----

Table          of Contents

**IR          BioSciences Holding, Inc. and Subsidiary**

**(A          Development Stage Company)**

**Consolidated          Statement of Stockholders' Equity (Deficit)**

**From          date of inception (October 30, 2002) to June 30, 2007**

**(Unaudited)**

**(Continued)**

|   |                                |   |        |       |         | **Additional** |   |             |   |   | **Common**      |   |   |        |   |   |      |   |
|--------|-------------------------------------|--------|-------------|------------|--------------|----------------|--------|------------------|--------|--------|-----------------|--------|--------|-------------|--------|--------|-----------|--------|
|   | **Common                    Stock** |   | **Paid-In** |       | **Deferred** |           |   | **Stock**        |   |   | **Accumulated** |   |   |        |   |
|   | **Shares**                          |   |        | **Amount** |         | **Capital**    |   | **Compensation** |   |   | **Subscribed**  |   |   | **Deficit** |   |   | **Total** |   |
|   |                                |   |        |       |         |           |   |             |   |   |            |   |   |        |   |   |      |   |   |   |   |   |   |   |   |   |

|                                                                                                                                            |   |   |      |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| Shares                granted at $1.00 per share pursuant to the Senior Note Agreement                in                January 2004            |   |   | 600,000   |   |   |   | 600    |   |   |   | 599,400 |   |   |   | (600,000 | )      |   |   | -      |   |   |   | -      |   |   |   | -       |   |
|                                                                                                                                            |   |   |      |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued at $1.00 per share to a consultant for services rendered in                January                2004             |   |   | 800,000   |   |   |   | 800    |   |   |   | 799,200 |   |   |   | (800,000 | )      |   |   | -      |   |   |   | -      |   |   |   | -       |   |
|                                                                                                                                            |   |   |      |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued to a consultant at $0.62 per share for services rendered in                February 2004                           |   |   | 40,000    |   |   |   | 40     |   |   |   | 24,760  |   |   |   | (24,800  | )      |   |   | -      |   |   |   | -      |   |   |   | -       |   |
|                                                                                                                                            |   |   |      |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued to a consultant at $0.40 per share for services rendered in                March                2004               |   |   | 1,051,600 |   |   |   | 1,051  |   |   |   | 419,589 |   |   |   | (420,640 | )      |   |   | -      |   |   |   | -      |   |   |   | -       |   |
|                                                                                                                                            |   |   |      |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued to a consultant at $0.50 per share for services rendered in                March                2004               |   |   | 500,000   |   |   |   | 500    |   |   |   | 249,500 |   |   |   | (250,000 | )      |   |   | -      |   |   |   | -      |   |   |   | -       |   |
|                                                                                                                                            |   |   |      |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                sold for cash at $0.15 per share in March, 2004                                                                           |   |   | 8,000     |   |   |   | 8      |   |   |   | 1,192   |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 1,200   |   |
|                                                                                                                                            |   |   |      |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued at $0.50 per share to consultants for services rendered in                March                2004                |   |   | 20,000    |   |   |   | 20     |   |   |   | 9,980   |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 10,000  |   |
|                                                                                                                                            |   |   |      |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued to a consultant at $0.40 per share for services rendered in                March                2004               |   |   | 2,000     |   |   |   | 2      |   |   |   | 798     |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 800     |   |
|                                                                                                                                            |   |   |      |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued to consultants at $0.32 per share for services rendered in                March                2004                |   |   | 91,600    |   |   |   | 92     |   |   |   | 29,220  |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 29,312  |   |
|                                                                                                                                            |   |   |      |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                to be issued to consultant at $0.41 per share in April 2004 for services                to be rendered through March 2005 |   |   | -         |   |   |   | -      |   |   |   | -       |   |   |   | (82,000  | )      |   |   | -      |   |   |   | -      |   |   |   | (82,000 | )      |
|                                                                                                                                            |   |   |      |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                granted pursuant to the New Senior Note Agreement in April                2004                                            |   |   | 600,000   |   |   |   | 600    |   |   |   | 149,400 |   |   |   | (150,000 | )      |   |   | -      |   |   |   | -      |   |   |   | -       |   |

----

Table          of Contents

**IR        BioSciences Holding, Inc. and Subsidiary**

**(A        Development Stage Company)**

**Consolidated        Statement of Stockholders' Equity (Deficit)**

**From        date of inception (October 30, 2002) to June 30, 2007**

**(Unaudited)**

**(Continued)**

|   |                                |   |        |       |         | **Additional** |   |             |   |   | **Common**      |   |   |        |   |   |      |   |
|--------|-------------------------------------|--------|-------------|------------|--------------|----------------|--------|------------------|--------|--------|-----------------|--------|--------|-------------|--------|--------|-----------|--------|
|   | **Common                    Stock** |   | **Paid-In** |       | **Deferred** |           |   | **Stock**        |   |   | **Accumulated** |   |   |        |   |
|   | **Shares**                          |   |        | **Amount** |         | **Capital**    |   | **Compensation** |   |   | **Subscribed**  |   |   | **Deficit** |   |   | **Total** |   |
|   |                                |   |        |       |         |           |   |             |   |   |            |   |   |        |   |   |      |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| Shares                issued to officer at $0.32 per share for services rendered in April                2004                                                           |   |   | 200,000 |   |   |   | 200    |   |   |   | 63,800  |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 64,000  |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Conversion                of Note Payable to common stock at $0.10 per share in May                2004                                                                 |   |   | 350,000 |   |   |   | 350    |   |   |   | 34,650  |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 35,000  |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Beneficial                Conversion Feature associated with note payable in May                2004                                                                    |   |   | -       |   |   |   | -      |   |   |   | 35,000  |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 35,000  |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Issuance                of warrants to officers and founder for services rendered in May                2004                                                            |   |   | -       |   |   |   | -      |   |   |   | 269,208 |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 269,208 |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                to a consultant at $0.20 per share as a due diligence fee in May                2004                                                              |   |   | 125,000 |   |   |   | 125    |   |   |   | 24,875  |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 25,000  |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued to a consultant at $1.00 per share for services to be rendered                over                twelve months beginning May 2004         |   |   | 500,000 |   |   |   | 500    |   |   |   | 499,500 |   |   |   | (500,000 | )      |   |   | -      |   |   |   | -      |   |   |   | -       |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Beneficial                Conversion Feature associated with notes payable issued in June                2004                                                           |   |   | -       |   |   |   | -      |   |   |   | 3,000   |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 3,000   |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Issuance                of warrants to note holders in April, May, and June 2004                                                                                        |   |   | -       |   |   |   | -      |   |   |   | 17,915  |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 17,915  |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Issuance                of warrants to employees and consultants for services rendered in                April                through June 2004                         |   |   | -       |   |   |   | -      |   |   |   | 8,318   |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 8,318   |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued in July to a consultant at $0.10 for services to be rendered                through July 2005                                              |   |   | 250,000 |   |   |   | 250    |   |   |   | 24,750  |   |   |   | (25,000  | )      |   |   | -      |   |   |   | -      |   |   |   | -       |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued to a consultant in July and September at $0.41 per share for                services to be rendered through April 2005                     |   |   | 200,000 |   |   |   | 200    |   |   |   | 81,800  |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 82,000  |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued to a consultant in September at $0.12 to $0.22 for services                rendered through September 2004                                 |   |   | 127,276 |   |   |   | 127    |   |   |   | 16,782  |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 16,909  |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued in July to September 2004 as interest on note                payable                                                                       |   |   | 300,000 |   |   |   | 300    |   |   |   | 35,700  |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 36,000  |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Issuance                of warrants with notes payable in July and August 2004                                                                                          |   |   | -       |   |   |   | -      |   |   |   | 72,252  |   |   |   | -        |   |   |   | -      |   |   |   | -      |   |   |   | 72,252  |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Accrued                deferred compensation in August 2004 to a consultant for 100,000                shares at                $0.10 per share, committed but unissued |   |   | -       |   |   |   | -      |   |   |   | -       |   |   |   | (10,000  | )      |   |   | -      |   |   |   | -      |   |   |   | (10,000 | )      |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Shares                issued in August 2004 at $0.14 to a consultant for services to be                performed through October 2004                                   |   |   | 100,000 |   |   |   | 100    |   |   |   | 13,900  |   |   |   | (14,000  | )      |   |   | -      |   |   |   | -      |   |   |   | -       |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   |    |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |    |   |

----

Table            of Contents

**IR          BioSciences Holding, Inc. and Subsidiary**

**(A          Development Stage Company)**

**Consolidated          Statement of Stockholders' Equity (Deficit)**

**From          date of inception (October 30, 2002) to June 30, 2007**

**(Unaudited)**

**(Continued)**

|   |                                |   |        |       |         | **Additional** |   |             |   |   | **Common**      |   |   |        |   |   |      |   |
|--------|-------------------------------------|--------|-------------|------------|--------------|----------------|--------|------------------|--------|--------|-----------------|--------|--------|-------------|--------|--------|-----------|--------|
|   | **Common                    Stock** |   | **Paid-In** |       | **Deferred** |           |   | **Stock**        |   |   | **Accumulated** |   |   |        |   |
|   | **Shares**                          |   |        | **Amount** |         | **Capital**    |   | **Compensation** |   |   | **Subscribed**  |   |   | **Deficit** |   |   | **Total** |   |
|   |                                |   |        |       |         |           |   |             |   |   |            |   |   |        |   |   |      |   |   |   |   |   |   |   |   |   |

| Shares                issued in August 2004 at $0.125 per share for conversion of $30,000                demand                loan                                            |   |   | 240,000    |   |   |   | 240    |   |   |   | 29,760    |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 30,000     |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Shares                issued in August 2004 at $0.16 per share to a consultant for services                provided.                                                           |   |   | 125,000    |   |   |   | 125    |   |   |   | 19,875    |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 20,000     |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Shares                issued in October 2004 to employees at $0.16 to $0.25 per                share                                                                           |   |   | 48,804     |   |   |   | 49     |   |   |   | 8,335     |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 8,384      |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Commitment                to issue 100,000 shares of stock to a consultant at $0.23 per share                for                services to be provided through September 2005 |   |   | -          |   |   |   | -      |   |   |   | -         |   |   |   | (23,000   | )      |   |   | -      |   |   |   | -          |   |   |   | (23,000    | )      |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Sale                of stock for cash in October at $0.125 per share, net of costs of                $298,155                                                                  |   |   | 18,160,000 |   |   |   | 18,160 |   |   |   | 1,345,763 |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 1,363,923  |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Value                of warrants issued with sale of common stock in October, net of                costs                                                                      |   |   | -          |   |   |   | -      |   |   |   | 607,922   |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 607,922    |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Issuance                of warrant to officer in October, 2004                                                                                                                 |   |   | -          |   |   |   | -      |   |   |   | 112,697   |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 112,697    |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Issuance                of stock to investment bankers in October 2004 for commissions                earned                                                                   |   |   | 4,900,000  |   |   |   | 4,900  |   |   |   | (4,900    | )      |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | -          |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Conversion                of accounts payable to stock in October at $0.125 per                share                                                                           |   |   | 1,257,746  |   |   |   | 1,258  |   |   |   | 107,382   |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 108,640    |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Value                of warrants issued with accounts payable conversions                                                                                                      |   |   | -          |   |   |   | -      |   |   |   | 48,579    |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 48,579     |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Conversion                of demand loan to stock in October at $0.11 per share                                                                                                |   |   | 93,300     |   |   |   | 93     |   |   |   | 10,170    |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 10,263     |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Forgiveness                of notes payable in October 2004                                                                                                                    |   |   | -          |   |   |   | -      |   |   |   | 36,785    |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 36,785     |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Issuance                of stock to officer and director at $0.125 per share in October for                conversion of liability                                             |   |   | 1,440,000  |   |   |   | 1,440  |   |   |   | 122,493   |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 123,933    |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Value                of warrants issued with officer and director conversion of                liabilities                                                                     |   |   | -          |   |   |   | -      |   |   |   | 56,067    |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 56,067     |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Conversion                of debt and accrued interest to common stock at $0.075 to $0.125                per                share                                             |   |   | 6,703,151  |   |   |   | 6,703  |   |   |   | 417,514   |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 424,217    |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Value                of warrants issued with conversion of debt                                                                                                                |   |   | -          |   |   |   | -      |   |   |   | 191,111   |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 191,111    |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Conversion                of note payable in October into common stock at $0.075 per                share                                                                      |   |   | 67,616     |   |   |   | 68     |   |   |   | 4,932     |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 5,000      |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Issuance                of warrants to note holders in October 2004                                                                                                            |   |   | -          |   |   |   | -      |   |   |   | 112,562   |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 112,562    |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Value                of shares issued to CFO as compensation                                                                                                                   |   |   | 100,000    |   |   |   | 100    |   |   |   | 34,900    |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 35,000     |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Value                of warrants issued to members of advisory committees in November                and                December                                               |   |   | -          |   |   |   | -      |   |   |   | 16,348    |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 16,348     |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Beneficial                conversion feature associated with notes payable                                                                                                     |   |   | -          |   |   |   | -      |   |   |   | 124,709   |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | 124,709    |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Shares                issued per conversion of Note Payable - correction                                                                                                       |   |   | (9,002     | )      |   |   | (9     | )      |   |   | 9         |   |   |   | -         |   |   |   | -      |   |   |   | -          |   |   |   | -          |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Amortization                of deferred compensation through December 31, 2004                                                                                                 |   |   | -          |   |   |   | -      |   |   |   | -         |   |   |   | 2,729,454 |   |   |   | -      |   |   |   | -          |   |   |   | 2,729,454  |   |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Loss                for the twelve months ended December 31, 2004                                                                                                              |   |   | -          |   |   |   | -      |   |   |   | -         |   |   |   | -         |   |   |   | -      |   |   |   | (5,305,407 | )      |   |   | (5,305,407 | )      |
|                                                                                                                                                                           |   |   |       |   |   |   |   |   |   |   |      |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |       |   |
| Balance                at December 31, 2004                                                                                                                                    |   |   | 62,423,391 |   |   | $      | 62,423 |   |   | $      | 7,922,943 |   |   | $      | (169,986  | )      |   | $      | -      |   |   | $      | (7,208,027 | )      |   | $      | 607,353    |   |

----

Table          of Contents

**IR          BioSciences Holding, Inc. and Subsidiary**

**(A          Development Stage Company)**

**Consolidated          Statement of Stockholders' Equity (Deficit)**

**From          date of inception (October 30, 2002) to June 30, 2007**

**(Unaudited)**

**(Continued)**

|   |                                |   |        |       |         | **Additional** |   |             |   |   | **Common**      |   |   |        |   |   |      |   |
|--------|-------------------------------------|--------|-------------|------------|--------------|----------------|--------|------------------|--------|--------|-----------------|--------|--------|-------------|--------|--------|-----------|--------|
|   | **Common                    Stock** |   | **Paid-In** |       | **Deferred** |           |   | **Stock**        |   |   | **Accumulated** |   |   |        |   |
|   | **Shares**                          |   |        | **Amount** |         | **Capital**    |   | **Compensation** |   |   | **Subscribed**  |   |   | **Deficit** |   |   | **Total** |   |
|   |                                |   |        |       |         |           |   |             |   |   |            |   |   |        |   |   |      |   |   |   |   |   |   |   |   |   |

|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|------------|--------|
| Sale                of shares of common stock for cash at $0.20 per share in March 2005                for                warrant exercise, net of costs  |   |   | 6,600,778  |   |   |   | 6,600  |   |   |   | 1,184,256 |   |   |   | -       |   |   |   | -      |   |   |   | -           |   |   |   | 1,190,856  |   |
|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of warrants issued to members of advisory committees in March2005                                                                    |   |   | -          |   |   |   | -      |   |   |   | 137,049   |   |   |   | -       |   |   |   | -      |   |   |   | -           |   |   |   | 137,049    |   |
|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Deferred                compensation in February 2005 to a consultant for 50,000 shares of                common                stock at $0.65 per share. |   |   | -          |   |   |   | -      |   |   |   | -         |   |   |   | (32,500 | )      |   |   | -      |   |   |   | -           |   |   |   | (32,500    | )      |
|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Warrants                exercised at $0.05 per share in June 2003                                                                                         |   |   | 80,000     |   |   |   | 80     |   |   |   | 3,920     |   |   |   | -       |   |   |   | -      |   |   |   | -           |   |   |   | 4,000      |   |
|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of warrants issued to members of advisory committee in June                2005                                                      |   |   | -          |   |   |   | -      |   |   |   | 70,781    |   |   |   | -       |   |   |   | -      |   |   |   | -           |   |   |   | 70,781     |   |
|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of warrants issued to investors and service providers in June                2005                                                    |   |   | -          |   |   |   | -      |   |   |   | 32,991    |   |   |   | -       |   |   |   | -      |   |   |   | -           |   |   |   | 32,991     |   |
|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Issuance                of 232,153 shares of common stock in July 2005 for conversion of                notes                payable                      |   |   | 232,153    |   |   |   | 232    |   |   |   | 64,771    |   |   |   | -       |   |   |   | -      |   |   |   | -           |   |   |   | 65,003     |   |
|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Issuance                of 100,000 shares of common stock in August 2005 to a consultant                for                services provided              |   |   | 100,000    |   |   |   | 100    |   |   |   | 9,900     |   |   |   | -       |   |   |   | -      |   |   |   | -           |   |   |   | 10,000     |   |
|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of warrants issued to advisory committee in September 2005 for                services                                               |   |   | -          |   |   |   | -      |   |   |   | 20,491    |   |   |   | -       |   |   |   | -      |   |   |   | -           |   |   |   | 20,491     |   |
|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Amortization                of deferred comp for the twelve months ended December,                2005                                                    |   |   | -          |   |   |   | -      |   |   |   | -         |   |   |   | 199,726 |   |   |   | -      |   |   |   | -           |   |   |   | 199,726    |   |
|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of warrants issued in October and December 2005 to investors and                service                providers                     |   |   | -          |   |   |   | -      |   |   |   | 18,399    |   |   |   | -       |   |   |   | -      |   |   |   | -           |   |   |   | 18,399     |   |
|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Loss                for the year ended December 31,2005                                                                                                   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   | -      |   |   |   | (4,591,107  | )      |   |   | (4,591,107 | )      |
|                                                                                                                                                      |   |   |       |   |   |   |   |   |   |   |      |   |   |   |    |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Balance                at December 31, 2005                                                                                                               |   |   | 69,436,322 |   |   | $      | 69,435 |   |   | $      | 9,465,501 |   |   | $      | (2,760  | )      |   | $      | -      |   |   | $      | (11,799,134 | )      |   | $      | (2,266,958 | )      |

----

Table          of Contents

**IR        BioSciences Holding, Inc. and Subsidiary**

**(A        Development Stage Company)**

**Consolidated        Statement of Stockholders' Equity (Deficit)**

**From        date of inception (October 30, 2002) to June 30, 2007**

**(Unaudited)**

**(Continued)**

|   |                                |   |        |       |         | **Additional** |   |             |   |   | **Common**      |   |   |        |   |   |      |   |
|--------|-------------------------------------|--------|-------------|------------|--------------|----------------|--------|------------------|--------|--------|-----------------|--------|--------|-------------|--------|--------|-----------|--------|
|   | **Common                    Stock** |   | **Paid-In** |       | **Deferred** |           |   | **Stock**        |   |   | **Accumulated** |   |   |        |   |
|   | **Shares**                          |   |        | **Amount** |         | **Capital**    |   | **Compensation** |   |   | **Subscribed**  |   |   | **Deficit** |   |   | **Total** |   |
|   |                                |   |        |       |         |           |   |             |   |   |            |   |   |        |   |   |      |   |   |   |   |   |   |   |   |   |

|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|---------|--------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|--------|------------|--------|
| Issuance                of 100,000 shares to officer, previously accrued                                                              |   |   | 100,000     |   |   |   | 100     |   |   |   | 41,316     |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 41,416     |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of warrants issued to members of advisory committee in March                2006                                 |   |   | -           |   |   |   | -       |   |   |   | 8,399      |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 8,399      |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Amortization                of deferred compensation for the three months ended March 31,                2006                         |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   | 2,760  |   |   |   | -      |   |   |   | -           |   |   |   | 2,760      |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Issuance                of common stock in May 2006 to a consultant for services                provided                              |   |   | 34,464      |   |   |   | 35      |   |   |   | 16,162     |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 16,197     |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Conversion                of accrued interest to common stock at $0.125 per share in May,                2006                         |   |   | 19,288      |   |   |   | 19      |   |   |   | 2,392      |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 2,411      |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Conversion                of accrued interest to common stock at $0.125 per share in May,                2006                         |   |   | 16,324      |   |   |   | 16      |   |   |   | 2,025      |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 2,041      |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Conversion                of accrued interest to common stock at $0.10 per share in May,                2006                          |   |   | 13,454      |   |   |   | 14      |   |   |   | 1,341      |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 1,355      |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Common                stock issued pursuant to the exercise of warrants at $0.09 per share                in                June 2006 |   |   | 5,000       |   |   |   | 5       |   |   |   | 445        |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 450        |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of warrants issued to members of advisory committee in June                2006                                  |   |   | -           |   |   |   | -       |   |   |   | 8,820      |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 8,820      |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of warrants issued to members of advisory committee in September                2006                             |   |   | -           |   |   |   | -       |   |   |   | 3,495      |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 3,495      |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of warrants issued to officers                                                                                   |   |   | -           |   |   |   | -       |   |   |   | 50,874     |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 50,874     |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Issuance                of penalty Common Stock, previously accrued                                                                   |   |   | 4,150,798   |   |   |   | 4,151   |   |   |   | 867,514    |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 871,665    |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Issuance                of penalty warrants, previously accrued                                                                       |   |   | -           |   |   |   | -       |   |   |   | 182,239    |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 182,239    |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of options issued to officer                                                                                     |   |   | -           |   |   |   | -       |   |   |   | 78,802     |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 78,802     |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of warrants issued to members of advisory committee in December                2006                              |   |   | -           |   |   |   | -       |   |   |   | 1,974      |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 1,974      |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Issuance                of Common Stock for cash                                                                                      |   |   | 34,266,250  |   |   |   | 34,267  |   |   |   | 4,579,282  |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 4,613,549  |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Common                stock to be issued as commission for equity fund raising                                                        |   |   | -           |   |   |   | -       |   |   |   | (5,483     | )      |   |   | -      |   |   |   | 5,483  |   |   |   | -           |   |   |   | -          |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of options issued to officer                                                                                     |   |   | -           |   |   |   | -       |   |   |   | 32,120     |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 32,120     |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of options issued to officer                                                                                     |   |   | -           |   |   |   | -       |   |   |   | 185,472    |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 185,472    |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Loss                for the year ended December 31, 2006                                                                              |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   | -      |   |   |   | -      |   |   |   | (1,486,046  | )      |   |   | (1,486,046 | )      |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Balance                at December 31, 2006                                                                                           |   |   | 108,041,900 |   |   | $      | 108,042 |   |   | $      | 15,522,690 |   |   | $      | -      |   |   | $      | 5,483  |   |   | $      | (13,285,180 | )      |   | $      | 2,351,035  |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Common                stock issued as commission for equity fund raising                                                              |   |   | 5,482,600   |   |   |   | 5,483   |   |   |   | -          |   |   |   | -      |   |   |   | (5,483 | )      |   |   | -           |   |   |   | -          |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Common                stock issued to consultant in January, 2007 at $0.15 per                share                                   |   |   | 298,039     |   |   |   | 298     |   |   |   | 44,408     |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 44,706     |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Common                stock issued to consultants in January, 2007 at $0.155 per                share                                 |   |   | 400,000     |   |   |   | 400     |   |   |   | 61,600     |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 62,000     |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Common                stock issued to consultants in January, 2007 at $0.15 per                share                                  |   |   | 100,000     |   |   |   | 100     |   |   |   | 14,900     |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 15,000     |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of options issued to officer in January, February and March                2007                                  |   |   | -           |   |   |   | -       |   |   |   | 181,440    |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 181,440    |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of options issued to employee in January, 2007                                                                   |   |   | -           |   |   |   | -       |   |   |   | 1,302      |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 1,302      |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Loss                for the three months ended March 31, 2007                                                                         |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   | -      |   |   |   | -      |   |   |   | (861,359    | )      |   |   | (861,359   | )      |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Balance                at March 31, 2007                                                                                              |   |   | 114,322,539 |   |   | $      | 114,323 |   |   | $      | 15,826,340 |   |   | $      | -      |   |   | $      | -      |   |   | $      | (14,146,539 | )      |   | $      | 1,794,124  |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of options issued to officer in January, February and March                2007                                  |   |   | -           |   |   |   | -       |   |   |   | 183,456    |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 183,456    |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of options issued to employee in January 2007                                                                    |   |   | -           |   |   |   | -       |   |   |   | 1,302      |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 1,302      |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                of warrants issued to consultant in April 2007                                                                   |   |   | -           |   |   |   | -       |   |   |   | 89,800     |   |   |   | -      |   |   |   | -      |   |   |   | -           |   |   |   | 89,800     |   |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Loss                for the three months ended June 30, 2007                                                                          |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   | -      |   |   |   | -      |   |   |   | (1,115,096  | )      |   |   | (1,115,096 | )      |
|                                                                                                                                  |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Balance                at June 30, 2007                                                                                               |   |   | 114,322,539 |   |   | $      | 114,323 |   |   | $      | 16,100,898 |   |   | $      | -      |   |   | $      | -      |   |   | $      | (15,261,635 | )      |   | $      | 953,586    |   |

----

Table          of Contents

**IR      BioSciences Holdings, Inc. and Subsidiary**

**(A      Development Stage Company)**

**Condensed      Consolidated Statements of Cash Flows**

**For      the Six Months Ended June 30, 2007 and 2006,**

**And      For the Period of Inception (October 30, 2002) to June 30,      2007**

**(Unaudited)**

|                                                                                            | **For                the Six Months Ended June 30,** |       |   | **For                the Period October 30, 2002 to** |   |
|-------------------------------------------------------------------------------------------------|------------------------------------------------------|------------|--------|-------------------------------------------------------|--------|
|                                                                                            | **2007**                                             |       |   | **2006**                                              |   |   | **June                30, 2007** |   |
| Cash                flows from operating activities:                                            |                                                 |       |   |                                                  |   |   |   |   |
| Net                loss                                                                         | $                                                    | (1,976,455 | )      |                                                  | $      | (620,550 | ) |   | $ | (15,261,635 | ) |
| Adjustments                to reconcile net loss to net                                         |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| cash                used in operating activities:                                               |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| Non-cash                compensation                                                            |                                                 | 564,168    |   |                                                  |   | 45,926 |   |   |   | 4,883,684 |   |
| Cost                of penalty for late registration of shares - stock portion                  |                                                 | -          |   |                                                  |   | (360,197 | ) |   |   | 1,631,726 |   |
| Cost                of penalty for late registration of shares - warrant                portion |                                                 | -          |   |                                                  |   | (78,404 | ) |   |   | 560,434 |   |
| (Gain)                loss from marking to market - stock portion of penalty                    |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| for                late registration of shares                                                  |                                                 | -          |   |                                                  |   | (72,101 | ) |   |   | (760,058 | ) |
| (Gain)                loss from marking to market - warrant portion of penalty                  |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| for                late registration of shares                                                  |                                                 | -          |   |                                                  |   | (46,755 | ) |   |   | (378,198 | ) |
| Legal                fees for note payable                                                      |                                                 | -          |   |                                                  |   | 10,125 |   |   |   | 20,125 |   |
| Placement                fees for note payable                                                  |                                                 | -          |   |                                                  |   | 40,000 |   |   |   | 65,000 |   |
| Impairment                of intangible asset                                                   |                                                 | -          |   |                                                  |   | - |   |   |   | 6,393 |   |
| Interest                expense                                                                 |                                                 | -          |   |                                                  |   | - |   |   |   | 156,407 |   |
| Amortization                of discount on notes payable                                        |                                                 | -          |   |                                                  |   | - |   |   |   | 1,006,935 |   |
| Depreciation                and amortization                                                    |                                                 | 6,109      |   |                                                  |   | 3,882 |   |   |   | 43,708 |   |
| Changes                in operating assets and liabilities:                                     |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| Prepaid                services and other assets                                                |                                                 | -          |   |                                                  |   | 17,137 |   |   |   | (35,158 | ) |
| Accounts                payable and accrued expenses                                            |                                                 | 177,543    |   |                                                  |   | 324,890 |   |   |   | 839,560 |   |
| Salary                advance                                                                   |                                                 | (2,475     | )      |                                                  |   | - |   |   |   | (3,975 | ) |
|                                                                                            |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| Net                cash used in operating activities                                            |                                                 | (1,231,110 | )      |                                                  |   | (736,047 | ) |   |   | (7,225,052 | ) |
|                                                                                            |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| Cash                flows from investing activities:                                            |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| Acquisition                of property and equipment                                            |                                                 | (7,614     | )      |                                                  |   | (16,475 | ) |   |   | (48,098 | ) |
|                                                                                            |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| Net                cash used in investing activities                                            |                                                 | (7,614     | )      |                                                  |   | (16,475 | ) |   |   | (48,098 | ) |
|                                                                                            |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| Cash                flows from financing activities:                                            |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| Proceeds                from notes payable and cash advances                                    |                                                 | -          |   |                                                  |   | 509,875 |   |   |   | 1,953,375 |   |
| Principal                payments on notes payable and demand loans                             |                                                 | -          |   |                                                  |   | - |   |   |   | (1,044,747 | ) |
| Shares                of stock sold for cash                                                    |                                                 | -          |   |                                                  |   | - |   |   |   | 7,873,451 |   |
| Proceeds                from exercise of warrant                                                |                                                 | -          |   |                                                  |   | 450 |   |   |   | 4,450 |   |
| Officer                repayment of amounts paid on his behalf                                  |                                                 | -          |   |                                                  |   | - |   |   |   | 19,880 |   |
| Cash                paid on behalf of officer                                                   |                                                 | -          |   |                                                  |   | - |   |   |   | (19,880 | ) |
|                                                                                            |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| Net                cash provided by financing activities                                        |                                                 | -          |   |                                                  |   | 510,325 |   |   |   | 8,786,529 |   |
|                                                                                            |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| Net                increase (decrease) in cash and cash equivalents                             |                                                 | (1,238,724 | )      |                                                  |   | (242,197 | ) |   |   | 1,513,379 |   |
|                                                                                            |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| Cash                and cash equivalents at beginning of period                                 |                                                 | 2,752,103  |   |                                                  |   | 265,860 |   |   |   | - |   |
|                                                                                            |                                                 |       |   |                                                  |   |   |   |   |   |   |   |
| Cash                and cash equivalents at end of period                                       | $                                                    | 1,513,379  |   |                                                  | $      | 23,663 |   |   | $ | 1,513,379 |   |

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Table          of Contents

**IR        BioSciences Holdings, Inc. and Subsidiary**

**(A        Development Stage Company)**

**Condensed        Consolidated Statements of Cash Flows**

**For        the Six Months Ended June 30, 2007 and 2006,**

**And        For the Period of Inception (October 30, 2002) to June 30,        2007**

**(Unaudited)**

**(Continued)**

|   | **For                  the Six Months Ended June 30,** |   |   | **For                  the Period October 30, 2002 to** |   |
|--------|--------------------------------------------------------|--------|--------|---------------------------------------------------------|--------|
|   | **2007**                                               |   |   | **2006**                                                |   |   | **June                  30, 2007** |   |

|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|--------|----------|--------|--------|--------|------------|--------|
| Supplemental                disclosures of cash flow information:                                                                                        |   |    |   |   |   |     |   |   |   |       |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Cash                paid during the period for:                                                                                                          |   |    |   |   |   |     |   |   |   |       |   |
| Interest                                                                                                                                                 | $      | -       |   |   | $      | 438      |   |   | $      | 80,053     |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Taxes                                                                                                                                                    | $      | -       |   |   | $      | -        |   |   | $      | 8,115      |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Acquisition                and capital restructure:                                                                                                      |   |    |   |   |   |     |   |   |   |       |   |
| Assets                acquired                                                                                                                           |   | -       |   |   |   | -        |   |   |   | -          |   |
| Liabilities                assumed                                                                                                                       |   | -       |   |   |   | -        |   |   |   | (120,799   | )      |
| Common                stock retained                                                                                                                     |   | -       |   |   |   | -        |   |   |   | (2,369     | )      |
| Adjustment                to additional paid-in capital                                                                                                  |   | -       |   |   |   | -        |   |   |   | 123,168    |   |
| Organization                costs                                                                                                                        |   | -       |   |   |   | -        |   |   |   | 350,000    |   |
| Total                consideration paid                                                                                                                  | $      | -       |   |   | $      | -        |   |   | $      | 350,000.00 |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Common                stock issued in exchange for proprietary rights                                                                                    | $      | -       |   |   | $      | -        |   |   | $      | 9,250      |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Common                stock issued in exchange for services                                                                                              | $      | 77,000  |   |   | $      | 16,198   |   |   | $      | 3,018,483  |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Common                stock issued in exchange for previously incurred debt and accrued                interest                                          | $      | -       |   |   | $      | 5,807    |   |   | $      | 1,066,401  |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Common                stock issued in exchange as interest                                                                                               | $      | -       |   |   | $      | -        |   |   | $      | 36,000     |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Amortization                of beneficial conversion feature                                                                                             | $      | -       |   |   | $      | -        |   |   | $      | 223,269    |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Stock                options and warrants issued in exchange for services                rendered                                                        | $      | 457,300 |   |   | $      | -        |   |   | $      | 1,576,949  |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Debt                and accrued interest forgiveness from note holders                                                                                   | $      | -       |   |   | $      | -        |   |   | $      | 36,785     |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Common                stock issued in satisfaction of amounts due to an Officer and a                Director                                            | $      | -       |   |   | $      | -        |   |   | $      | 180,000    |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Common                stock issued in satisfaction of accounts payable                                                                                   | $      | -       |   |   | $      | -        |   |   | $      | 157,219    |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Deferred                compensation to a consultant accrued in March 2005                                                                               | $      | -       |   |   | $      | -        |   |   | $      | 2,630,761  |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Amortization                of deferred compensation                                                                                                     | $      | -       |   |   | $      | 2,760    |   |   | $      | 202,486    |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Fair                value of common stock and warrants in payable in connection with                late                filing of registration statement | $      | -       |   |   | $      | (994,574 | )      |   | $      | 3,684,664  |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Gain                from marking to market - stock portion of penalty for late registration                of                shares                      | $      | -       |   |   | $      | (124,524 | )      |   | $      | (1,124,255 | )      |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Gain                from marking to market - warrant portion of penalty for late registration                of shares                                   | $      | -       |   |   | $      | (39,887  | )      |   | $      | (456,603   | )      |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Impairment                of intangible asset                                                                                                            | $      | -       |   |   | $      | -        |   |   | $      | 6,393      |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Issuance                of stock to Officer, previously accrued                                                                                          | $      | -       |   |   | $      | 41,416   |   |   | $      | 41,416     |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Value                of warrants issued to members of advisory board                                                                                     | $      | -       |   |   | $      | 17,219   |   |   | $      | 22,688     |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Services                for note payable                                                                                                                 | $      | -       |   |   | $      | 9,750    |   |   | $      | 9,750      |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Issuance                of shares for accounts payable                                                                                                   | $      | 44,706  |   |   | $      | -        |   |   | $      | 44,706     |   |
|                                                                                                                                                     |   |    |   |   |   |     |   |   |   |       |   |
| Stock                issued as commission for equity fund raising                                                                                        | $      | 5,483   |   |   | $      | -        |   |   | $      | 5,483      |   |

----

Table          of Contents

**IR      BIOSCIENCES HOLDINGS, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTES      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**

**June      30, 2007**

**(Unaudited)**

**Note      1 - Summary Of Accounting Policies**

----

Table          of Contents

|                                            | **Options** |      |   | **Weighted                Average****Exercise                Price** |
|-------------------------------------------------|-------------|-----------|--------|----------------------------------------------------------------------|
| Outstanding                at December 31, 2006 |        | 5,914,212 |   |                                                                 | $ | 0.50 |
| Issued                                          |        | 100,000   |   |                                                                 |   | 0.13 |
| Exercised                                       |        | -         |   |                                                                 |   | - |
| Forfeited                or expired             |        | -         |   |                                                                 |   | - |
| Outstanding                at June 30, 2007     |        | 6,014,212 |   |                                                                 | $ | 0.49 |
|                                            |        |      |   |                                                                 |   |   |
| Non-vested                at June 30, 2007      |        | 518,270   |   |                                                                 | $ | 0.21 |
| Exercisable                at June 30, 2007     |        | 5,495,942 |   |                                                                 | $ | 0.52 |

| Prepaid                insurance | $      | 12,434 |
|----------------------------------|--------|--------|
| Prepaid                expenses  |   | 35,597 |
|                             | $      | 48,031 |

----

Table          of Contents

**Note      2 – Furniture and equipment**

| Computer                equipment   | 3                years |
|-------------------------------------|------------------------|
| Laboratory                equipment | 3                years |
| Furniture                           | 7                years |

| Office                Equipment              | $      | 41,950  |   |
|----------------------------------------------|--------|---------|--------|
| Office                furniture and fixtures |   | 6,148   |   |
|                                         |   | 48,098  |   |
| Accumulated                depreciation      |   | (18,351 | )      |
| Total                                        | $      | 29,747  |   |

**Note      3 - Related Party Transactions**

**Note      4 - Accounts Payable And Accrued Liabilities**

| Accounts                payable and accrued liabilities | $      | 526,041 |
|---------------------------------------------------------|--------|---------|
| Accounts                payable - shell company         |   | 34,926  |
| Credit                cards payable                     |   | 15,845  |
| Insurance                notes payable                  |   | 5,138   |
| Interest                payable                         |   | 8,656   |
| State                income tax payable                 |   | 3,200   |
|                                                    | $      | 593,806 |

----

Table          of Contents

**Note      5 - Notes Payable**

**Note      6 - Equity**

| **Warrants                Outstanding** |   | **Warrants                Exercisable** |
|-----------------------------------------|--------|-----------------------------------------|
|                                    |   |                                    |   | **Weighted** |   |   |   |   |   | **Weighted** |
|                                    |   |                                    |   | **Average** |   | **Weighted** |   |   |   | **Average** |
|                                    |   |                                    |   | **Remaining** |   | **Average** |   |   |   | **Remaining** |
| **Exercise**                            |   | **Number**                              |   | **Contractual** |   | **Exercise** |   | **Number** |   | **Contractual** |
| **Prices**                              |   | **Outstanding**                         |   | **Life                (years)** |   | **Price** |   | **Exercisable** |   | **Life                (years)** |
| $                .05-.10                |   | 594,780                                 |   | 1.91 |   | $.05-.10 |   | 594,780 |   | 1.91 |
| .125-.22                                |   | 2,514,319                               |   | 3.55 |   | .125-.22 |   | 1,764,319 |   | 3.01 |
| .23-.56                                 |   | 31,477,434                              |   | 3.72 |   | .23-.56 |   | 27,977,430 |   | 3.58 |
| 1.00                                    |   | 677,564                                 |   | 1.44 |   | 1.00 |   | 677,564 |   | 1.44 |
| 2.00                                    |   | 16,550                                  |   | 1.13 |   | 2.00 |   | 16,550 |   | 1.13 |
|                                    |   | 35,280,647                              |   | 3.63 |   |   |   | 31,030,643 |   | 3.46 |

|                                            | **Number                of Shares****(post-split)** |       | **Weighted                Average****Price                Per Share****(post-split)** |
|-------------------------------------------------|-----------------------------------------------------|------------|---------------------------------------------------------------------------------------|
| Outstanding                at December 31, 2006 |                                                | 30,651,543 |                                                                                  | $ | 0.37 |
| Granted                                         |                                                | 5,000,000  |                                                                                  |   | 0.28 |
| Exercised                                       |                                                | -          |                                                                                  |   | - |
| Cancelled                or expired             |                                                | (370,900   | )                                                                                     |   | 0.32 |
| Outstanding                at June 30, 2007     |                                                | 35,280,647 |                                                                                  | $ | 0.35 |

|                                                       | **2007**              |   | **2006**                      |
|------------------------------------------------------------|-----------------------|--------|-------------------------------|
| Significant                assumptions (weighted-average): |                  |   |                          |
| Risk-free                interest rate at grant date       | 4.75%                 |   | 4.50%                to 4.75% |
| Expected                stock price volatility             | 87.71%                |   | 93%                to 73%     |
| Expected                dividend payout                    | -                     |   | -                             |
| Expected                option life-years (a)              | 3                to 5 |   | 3                to 5         |

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|                                     | **Options                Outstanding** |                                  | **Options                Exercisable** |
|------------------------------------------|----------------------------------------|---------------------------------------|----------------------------------------|
|  **Exercise                Prices** |                                   | **Number                Outstanding** |                                   | **Weighted                Average Remaining Contractual Life (years)** |   | **Weighted                Average Exercise Price** |   | **Number                Exercisable** |   | **Weighted                Average Remaining Contractual Life (years)** |
|  $                                  | 0.128-0.22                             |                                  |                                   | 3,800,000 |   |   | 4.22 |   | $ | 0.128-0.22 |   |   | 3,329,668 |   |   | 4.82 |
|                                     | 0.23                                   |                                  |                                   | 1,896,970 |   |   | 4.04 |   |   | 0.23 |   |   | 1,849,032 |   |   | 4.15 |
|                                     | 0.31                                   |                                  |                                   | 1,000 |   |   | 3.46 |   |   | 0.31 |   |   | 1,000 |   |   | 3.46 |
|                                     | 0.33                                   |                                  |                                   | 103,030 |   |   | 3.14 |   |   | 0.33 |   |   | 103,030 |   |   | 3.14 |
|                                     | 0.44                                   |                                  |                                   | 150,000 |   |   | 3.01 |   |   | 0.44 |   |   | 150,000 |   |   | 3.01 |
|                                     | 25.00                                  |                                  |                                   | 63,212 |   |   | 2.75 |   |   | 25.00 |   |   | 63,212 |   |   | 2.75 |
|                                     |                                   |                                  |                                   | 6,014,212 |   |   |   |   |   |   |   |   | 5,495,942 |   |   |   |

|                                            | **Number                of Shares** |      | **Weighted                Average****Price                Per Share** |
|-------------------------------------------------|-------------------------------------|-----------|-----------------------------------------------------------------------|
| Outstanding                at December 31, 2006 |                                | 5,914,212 |                                                                  | $ | 0.50 |
| Granted                                         |                                | 100,000   |                                                                  |   | 0.13 |
| Exercised                                       |                                | -         |                                                                  |   | - |
| Expired                                         |                                | -         |                                                                  |   | - |
| Outstanding                at June 30, 2007     |                                | 6,014,212 |                                                                  | $ | 0.49 |
|                                            |                                |      |                                                                  |   |   |
| Non-vested                at June 30, 2007      |                                | 518,270   |                                                                  | $ | 0.21 |
| Exercisable                June 30, 2007        |                                | 5,495,942 |                                                                  | $ | 0.52 |

**Note      7 - Subsequent Events**

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Item

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**Results      of Operations for the Three Month Periods Ended June 30, 2007 and June 30,      2006**

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**Results      of Operations for the Six Month Periods Ended June 30, 2007 and June 30,      2006**

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**Plan      of Operations**

**Off-Balance      Sheet Arrangements**

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**Liquidity        And Capital Resources**

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**Risk        Factors**

**Risks        Related to Our Financial Results**

**We        have limited cash resources, an accumulated deficit, are not currently        profitable and expect to incur significant expenses in the near        future.**

**We        may fail to become and remain profitable or we may be unable to fund our        continuing losses, in which case our business may fail.**

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ITEM

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**PART        II**
**Other Information**

Item

| (a)   | Exhibits |
|-----------------|----------|

|   |                                                                                                                                                                                                                              |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1   | Certification                  of Chief Executive Officer pursuant to Item 601(b)(31) of Regulation                  S-B,                  as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of                  2002. |
|   |                                                                                                                                                                                                                              |
| 31.2   | Certification                  of Chief Financial Officer pursuant to Item 601(b)(31) of Regulation                  S-B,                  as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of                  2002. |
|   |                                                                                                                                                                                                                              |
| 32.1   | Certifications                  of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as                  adopted                  pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002.*           |
|   |                                                                                                                                                                                                                              |
| 32.2   | Certifications                  of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as                  adopted                  pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002.*           |
|   |                                                                                                                                                                                                                              |

| *                    | This                  exhibit shall not be deemed "filed" for purposes of Section 18 of the                  Securities Exchange Act of 1934 or otherwise subject to the                  liabilities of that section, nor shall it be deemed incorporated by                  reference in any filing under the Securities Act of 1933 or                  the Securities Exchange Act of 1934, whether made before                  or after the date hereof and irrespective of any                  general incorporation language in any                  filings. |
|---------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**Signatures**

|   | **IR                  BioSciences Holdings, Inc.** |                                                                                                                                                                                                                                                                                                     |
|--------|----------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                               |                                                                                                                                                                                                                                                                                                     |   |
|   | By:                                                |  /s/                  Michael K.                  Wilhelm                                        |   |
|   |                                               | Michael                  K. Wilhelm                                                                                                                                                                                                                                                                      |   |
|   |                                               | President,                  Chief Executive Officer                                                                                                                                                                                                                                                      |   |
|   |                                               |                                                                                                                                                                                                                                                                                                     |   |

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