----

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**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**WASHINGTON,      D. C. 20549**

**FORM      10-QSB**

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

**Act      of 1934**

**For      the quarterly period ended September 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.) |

**8767      E. Via de Ventura, Suite 190, Scottsdale,Arizona 85258**

**(480)      922-3926**

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

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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 September 30, 2007                (unaudited)                                                                                                                                                                      | F-1                         |
|  Condensed                Consolidated Statement of Losses for                the three and nine months ended September 30, 2007 and 2006, and                for the  period of inception (October 30, 2002) to September 30, 2007                (unaudited) | F-2                         |
|  Condensed                Consolidated Statement of Stockholders' Equity from                date of inception (October 30, 2002) to September 30, 2007                (unaudited)                                                                                       | F-3                to F-10  |
|  Condensed                Consolidated Statements of Cash Flows                for the nine months ended September 30, 2007 and 2006, and for                the period of inception (October 30, 2002) to September 30, 2007                (unaudited)            | F-11                to F12  |
|  Notes                to Unaudited Condensed Consolidated Financial                Statements                                                                                                                                                                                 | F-13                to F-19 |
| Item                2. Management's Discussion and Analysis of                Financial Condition or Plan of Operation                                                                                                                                                        | 3                           |
| Item                3. Controls and Procedures                                                                                                                                                                                                                                     | 8                           |
|                                                                                                                                                                                                                                                                               |                        |
| **PART                II**  Other Information                                                                                                                                                                                                                                 |                        |
|                                                                                                                                                                                                                                                                               |                        |
| Item                1. Legal Proceedings                                                                                                                                                                                                                                           | 9                           |
| Item                2. Unregistered Sale of Equity Securities and Use of                Proceeds                                                                                                                                                                              | 9                           |
| 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 September 30, 2007**

**(Unaudited)**

| Current                assets                                                                                                                        |   |   |        |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|
|                                                                                                                                                 |   |   |        |
| Cash                  and cash equivalents                                                                                                      |   | $      | 871,987     |   |
| Prepaid                services and other current assets (Note 1)                                                                                    |   |   | 33,921      |   |
| Salary                  advance (Note 1)                                                                                                             |   |   | 3,000       |   |
|                                                                                                                                                 |   |   |        |   |
| Total                  current assets                                                                                                                |   |   | 908,908     |   |
|                                                                                                                                                 |   |   |        |   |
| Furniture                    and equipment, net of accumulated depreciation of $21,544 (Note                    2)                              |   |   | 26,553      |   |
| Deposits                and other assets (Note 1)                                                                                                    |   |   | 2,260       |   |
|                                                                                                                                                 |   |   |        |   |
| Total                assets                                                                                                                          |   | $      | 937,721     |   |
|                                                                                                                                                 |   |   |        |   |
| **Liabilities                and Stockholders' Equity**                                                                          |
| Current                  liabilities                                                                                                                 |   |   |        |   |
| Accounts                payable and accrued liabilities (Note 4)                                                                                     |   | $      | 664,820     |   |
| Total                  current liabilities                                                                                                           |   |   | 664,820     |   |
|                                                                                                                                                 |   |   |        |   |
| 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 September 30, 2007                  (Note                  6) |   |   | 114,323     |   |
| Additional                paid-in capital                                                                                                            |   |   | 17,858,988  |   |
| Deficit                  accumulated during the development stage                                                                                    |   |   | (17,700,410 | ) |
| Total                stockholders’ equity                                                                                                      |   |   | 272,901     |   |
|                                                                                                                                                 |   |   |        |   |
| Total                liabilities and stockholders' equity                                                                                            |   | $      | 937,721     |   |

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Table          of Contents

**IRBioSciences      Holdings, Inc. and      Subsidiary**

**(A      Development Stage Company)**

**Condensed      Consolidated Statement of Losses**

**For      the three and nine months ended September 30, 2007 and      2006,**

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

**(Unaudited)**

|                                                                                                                              |   | **For                the Three Months Ended****September                30,** |        |   | **For                the Nine Months Ended****September                30,** |   |       | **For                the Period October 30, 2002 to** |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------|-------------|--------|------------------------------------------------------------------------------|--------|------------|-------------------------------------------------------|--------|
|                                                                                                                              |   | **2007**                                                                      |        |   | **2006**                                                                     |   |       | **2007**                                              |   |   | **2006** |   |   | **September                30, 2007** |   |
| Revenues                                                                                                                          |   | $                                                                             | -           |   |                                                                         | $      | -          |                                                  |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                                                                              |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  expenses:                                                                                              |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                              |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Selling,                  general and administrative expenses                                                                     |   |                                                                          | 2,447,782   |   |                                                                         |   | 598,045    |                                                  |   |   | 4,463,800 |   |   |   | 1,761,161 |   |   |   | 15,033,418 |   |
| Merger                fees and costs                                                                                              |   |                                                                          | -           |   |                                                                         |   | -          |                                                  |   |   | - |   |   |   | - |   |   |   | 350,000 |   |
| Financing                  cost                                                                                                   |   |                                                                          | -           |   |                                                                         |   | -          |                                                  |   |   | - |   |   |   | - |   |   |   | 90,000 |   |
| Impairment                of intangible asset costs                                                                               |   |                                                                          | -           |   |                                                                         |   | -          |                                                  |   |   | - |   |   |   | - |   |   |   | 6,393 |   |
| Total                  operating expenses                                                                                         |   |                                                                          | 2,447,782   |   |                                                                         |   | 598,045    |                                                  |   |   | 4,463,800 |   |   |   | 1,761,161 |   |   |   | 15,479,811 |   |
|                                                                                                                              |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating                  loss                                                                                                   |   |                                                                          | (2,447,782  | )      |                                                                         |   | (598,045   | )                                                     |   |   | (4,463,800 | ) |   |   | (1,761,161 | ) |   |   | (15,479,811 | ) |
|                                                                                                                              |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                  expense:                                                                                                   |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                of penalty for late registration of shares                                                                    |   |                                                                          | -           |   |                                                                         |   | -          |                                                  |   |   | - |   |   |   | (438,601 | ) |   |   | 2,192,160 |   |
| (Gain)                  loss from marking to market - warrant portion of penalty for late                  registration of shares |   |                                                                          | -           |   |                                                                         |   | (76,750    | )                                                     |   |   | - |   |   |   | (123,505 | ) |   |   | (378,198 | ) |
| (Gain)                  loss from marketing to market - stock portion of penalty for late                  registration of shares |   |                                                                          | -           |   |                                                                         |   | (373,572   | )                                                     |   |   | - |   |   |   | (445,673 | ) |   |   | (760,058 | ) |
| Interest                  (income) expense, net                                                                                   |   |                                                                          | (10,221     | )      |                                                                         |   | 32,290     |                                                  |   |   | (57,899 | ) |   |   | 47,181 |   |   |   | 1,157,366 |   |
|                                                                                                                              |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                  other (income) expense                                                                                     |   |                                                                          | (10,221     | )      |                                                                         |   | (418,032   | )                                                     |   |   | (57,899 | ) |   |   | (960,598 | ) |   |   | 2,211,270 |   |
|                                                                                                                              |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  (loss) before income taxes                                                                                |   |                                                                          | (2,437,561  | )      |                                                                         |   | (180,013   | )                                                     |   |   | (4,405,901 | ) |   |   | (800,563 | ) |   |   | (17,691,081 | ) |
|                                                                                                                              |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                  for income taxes                                                                                       |   |                                                                          | (1,214      | )      |                                                                         |   | -          |                                                  |   |   | (9,329 | ) |   |   | - |   |   |   | (9,329 | ) |
|                                                                                                                              |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  (loss)                                                                                                       |   | $                                                                             | (2,438,775  | )      |                                                                         | $      | (180,013   | )                                                     |   | $ | (4,415,230 | ) |   | $ | (800,563 | ) |   | $ | (17,700,410 | ) |
|                                                                                                                              |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income (loss) per share - basic and diluted                                                                  |   | $                                                                             | (0.02       | )      |                                                                         | $      | (0.00      | )                                                     |   | $ | (0.04 | ) |   | $ | (0.01 | ) |   | $ | (0.34 | ) |
|                                                                                                                              |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average shares outstanding -                                                                            |   |                                                                          |        |   |                                                                         |   |       |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| basic                and diluted                                                                                                  |   |                                                                          | 114,322,539 |   |                                                                         |   | 71,429,544 |                                                  |   |   | 114,188,044 |   |   |   | 70,165,289 |   |   |   | 51,487,987 |   |

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Table          of Contents

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

**(A      Development Stage Company)**

**ConsolidatedStatement      of Stockholders' Equity      (Deficit)**

**From      date of inception (October 30, 2002) to September 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 September 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 September 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 September 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 September 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 September 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 September 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  |   |

----

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 September 30, 2007**

**(Unaudited)**

**(Continued)**

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

| 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 a 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    |   |
|                                                                                                      |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                  of options issued to employee in January 2007                                      |   |   |        |   |   |   |    |   |   |   | 1,466      |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   | 1,466      |   |
|                                                                                                      |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                  of options issued to officer in January, February and March                  2007  |   |   |        |   |   |   |    |   |   |   | 106,561    |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   | 106,561    |   |
|                                                                                                      |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                  of options issued to employees in July 2007                                        |   |   |        |   |   |   |    |   |   |   | 996,133    |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   | 996,133    |   |
|                                                                                                      |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                  of options issued to directors in July 2007                                        |   |   |        |   |   |   |    |   |   |   | 537,833    |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   | 537,833    |   |
|                                                                                                      |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                  of options issued to consultants in July 2007                                      |   |   |        |   |   |   |    |   |   |   | 77,499     |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   | 77,499     |   |
|                                                                                                      |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Value                  of warrants issued to a consultant in April 2007                                   |   |   |        |   |   |   |    |   |   |   | 38,599     |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   | 38,599     |   |
|                                                                                                      |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Loss                  for the three months ended September 30, 2007                                       |   |   | -           |   |   |   | -       |   |   |   | -          |   |   |   | -      |   |   |   | -      |   |   |   | (2,438,775  | )      |   |   | (2,438,755 | )      |
|                                                                                                      |   |   |        |   |   |   |    |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |        |   |   |   |       |   |
| Balance                  at September 30, 2007                                                            |   |   | 114,322,539 |   |   | $      | 114,323 |   |   | $      | 17,858,989 |   |   | $      | -      |   |   | $      | -      |   |   | $      | (17,700,410 | )      |   | $      | 272,902    |   |

----

Table          of Contents

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

**(A      Development Stage Company)**

**Condensed      Consolidated Statements of Cash Flows**

**For      the Nine Months Ended September 30, 2007 and 2006,**

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

**(Unaudited)**

|                                                                                                                                                         | **For                the Nine Months Ended September 30,** |       |   | **For                the Period October 30, 2002 to** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|------------|--------|-------------------------------------------------------|--------|
|                                                                                                                                                         | **2007**                                                   |       |   | **2006**                                              |   |   | **September                30, 2007** |   |
| Cash                  flows from operating activities:                                                                                                       |                                                       |       |   |                                                  |   |   |   |   |
| Net                  loss                                                                                                                                    | $                                                          | (4,415,230 | )      |                                                  | $      | (800,563 | ) |   | $ | (17,700,410 | ) |
| Adjustments                to reconcile net loss to net                                                                                                      |                                                       |       |   |                                                  |   |   |   |   |   |   |   |
| cash                  used in operating activities:                                                                                                          |                                                       |       |   |                                                  |   |   |   |   |   |   |   |
| Non-cash                compensation                                                                                                                         |                                                       | 2,292,390  |   |                                                  |   | 144,087 |   |   |   | 6,611,906 |   |
| 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 |                                                       | -          |   |                                                  |   | (445,673 | ) |   |   | (760,058 | ) |
| (Gain)                loss from marking to market - warrant portion of penalty     for                late registration of shares   |                                                       | -          |   |                                                  |   | (123,505 | ) |   |   | (378,198 | ) |
| Legal                  fees for note payable                                                                                                                 |                                                       | -          |   |                                                  |   | 20,125 |   |   |   | 20,125 |   |
| Placement                fees for note payable                                                                                                               |                                                       | -          |   |                                                  |   | 65,000 |   |   |   | 65,000 |   |
| Impairment                  of intangible asset                                                                                                              |                                                       | -          |   |                                                  |   | - |   |   |   | 6,393 |   |
| Interest                expense                                                                                                                              |                                                       | -          |   |                                                  |   | - |   |   |   | 156,407 |   |
| Amortization                  of discount on notes payable                                                                                                   |                                                       | -          |   |                                                  |   | - |   |   |   | 1,006,935 |   |
| Depreciation                and amortization                                                                                                                 |                                                       | 9,303      |   |                                                  |   | 5,885 |   |   |   | 46,902 |   |
| Changes                  in operating assets and liabilities:                                                                                                |                                                       |       |   |                                                  |   |   |   |   |   |   |   |
|      Prepaid                services and other assets                                                                               |                                                       | 43,978     |   |                                                  |   | 28,048 |   |   |   | 8,820 |   |
|      Accounts                  payable and accrued expenses                                                                         |                                                       | 248,557    |   |                                                  |   | 571,918 |   |   |   | 910,574 |   |
|      Salary                advance                                                                                                  |                                                       | (1,500     | )      |                                                  |   | - |   |   |   | (3,000 | ) |
|                                                                                                                                                         |                                                       |       |   |                                                  |   |   |   |   |   |   |   |
| Net                cash used in operating activities                                                                                                         |                                                       | (1,822,502 | )      |                                                  |   | (973,279 | ) |   |   | (7,816,444 | ) |
|                                                                                                                                                         |                                                       |       |   |                                                  |   |   |   |   |   |   |   |
| Cash                flows from investing activities:                                                                                                         |                                                       |       |   |                                                  |   |   |   |   |   |   |   |
| Acquisition                  of property and equipment                                                                                                       |                                                       | (7,614     | )      |                                                  |   | (22,587 | ) |   |   | (48,098 | ) |
|                                                                                                                                                         |                                                       |       |   |                                                  |   |   |   |   |   |   |   |
| Net                  cash used in investing activities                                                                                                       |                                                       | (7,614     | )      |                                                  |   | (22,587 | ) |   |   | (48,098 | ) |
|                                                                                                                                                         |                                                       |       |   |                                                  |   |   |   |   |   |   |   |
| Cash                  flows from financing activities:                                                                                                       |                                                       |       |   |                                                  |   |   |   |   |   |   |   |
| Proceeds                from notes payable and cash advances                                                                                                 |                                                       | -          |   |                                                  |   | 719,875 |   |   |   | 1,953,375 |   |
| Principal                  payments on notes payable and demand loans                                                                                        |                                                       | (50,000    | )      |                                                  |   | - |   |   |   | (1,094,747 | ) |
| 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                                                                                                   |                                                       | (50,000    | )      |                                                  |   | 720,325 |   |   |   | 8,736,529 |   |
|                                                                                                                                                         |                                                       |       |   |                                                  |   |   |   |   |   |   |   |
| Net                  increase (decrease) in cash and cash equivalents                                                                                        |                                                       | (1,880,116 | )      |                                                  |   | (275,541 | ) |   |   | 871,987 |   |
|                                                                                                                                                         |                                                       |       |   |                                                  |   |   |   |   |   |   |   |
| Cash                  and cash equivalents at beginning of period                                                                                            |                                                       | 2,752,103  |   |                                                  |   | 265,860 |   |   |   | - |   |
|                                                                                                                                                         |                                                       |       |   |                                                  |   |   |   |   |   |   |   |
| Cash                  and cash equivalents at end of period                                                                                                  | $                                                          | 871,987    |   |                                                  | $      | (9,681) |   |   | $ | 871,987 |   |

----

Table          of Contents

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

**(A      Development Stage Company)**

**Condensed      Consolidated Statements of Cash Flows**

**For      the Nine Months Ended September 30, 2007 and 2006,**

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

**(Unaudited)**

**(Continued)**

|   | **For                  the Nine Months Ended September 30,** |   |   | **For                  the Period October 30, 2002 to** |
|--------|--------------------------------------------------------------|--------|--------|---------------------------------------------------------|
|   | **2007**                                                     |   |   | **2006**                                                |   |   | **September                  30, 2007** |

| Supplemental                  disclosures of cash flow information:                                                                                            |   |   |      |   |   |   |      |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                                                                                                                           |   |   |      |   |   |   |      |   |   |
| Cash                paid during the period for:                                                                                                                |   |   |      |   |   |   |      |   |   |
| Interest                                                                                                                                                       |   | $      | 9,737     |   |   | $      | 1,027     |   |   | $ | 89,790 |   |
|                                                                                                                                                           |   |   |      |   |   |   |      |   |   |   |   |   |
| 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                                                          |   | $      | 2,215,390 |   |   | $      | 786,605   |   |   | $ | 3,335,039 |   |
|                                                                                                                                                           |   |   |      |   |   |   |      |   |   |   |   |   |
| 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                                                                                                         |   | $      | -         |   |   | $      | 46,552    |   |   | $ | 202,486 |   |
|                                                                                                                                                           |   |   |      |   |   |   |      |   |   |   |   |   |
| Fair                  value of common stock and warrants in payable in connection with                  late                  filing of registration statement |   | $      | -         |   |   | $      | 1,053,904 |   |   | $ | 3,684,664 |   |
|                                                                                                                                                           |   |   |      |   |   |   |      |   |   |   |   |   |
| Gain                  from marking to market - stock portion of penalty for late registration                  of                  shares                      |   | $      | -         |   |   | $      | (805,870  | )      |   | $ | (1,124,255 | ) |
|                                                                                                                                                           |   |   |      |   |   |   |      |   |   |   |   |   |
| Gain                  from marking to market - warrant portion of penalty for late registration                  of shares                                     |   | $      | -         |   |   | $      | (201,910  | )      |   | $ | (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                                                                                         |   | $      | -         |   |   | $      | 20,714    |   |   | $ | 22,688 |   |
|                                                                                                                                                           |   |   |      |   |   |   |      |   |   |   |   |   |
| Services                  for note payable                                                                                                                     |   | $      | -         |   |   | $      | -         |   |   | $ | 9,750 |   |
|                                                                                                                                                           |   |   |      |   |   |   |      |   |   |   |   |   |
| Issuance                  of shares for accounts payable                                                                                                       |   | $      | 44,706    |   |   | $      | -         |   |   | $ | 44,706 |   |
|                                                                                                                                                           |   |   |      |   |   |   |      |   |   |   |   |   |
| Stock                  issued as commission for equity fund raising                                                                                            |   | $      | 5,483     |   |   | $      | -         |   |   | $ | 5,483 |   |

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**IR      BIOSCIENCES HOLDINGS, INC.**

**(A      DEVELOPMENT STAGE COMPANY)**

**NOTESTO      CONDENSED CONSOLIDATED FINANCIAL      STATEMENTS**

**SEPTEMBER      30, 2007**

**(Unaudited)**

**Note      1 - Summary Of Accounting Policies**

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|                                               |   | **Options** |       |   | **Weighted                Average****Exercise                Price** |   |
|----------------------------------------------------|--------|-------------|------------|--------|----------------------------------------------------------------------|--------|
| Outstanding                at December 31, 2006    |   |        | 5,914,212  |   |                                                                 | $      | 0.50 |   |
| Issued                                             |   |        | 10,100,000 |   |                                                                 |   | 0.17 |   |
| Exercised                                          |   |        | -          |   |                                                                 |   | - |   |
| Forfeited                  or expired              |   |        | -          |   |                                                                 |   | - |   |
| Outstanding                at September 30, 2007   |   |        | 16,014,212 |   |                                                                 | $      | 0.30 |   |
|                                               |   |        |       |   |                                                                 |   |   |   |
| Non-vested                at September 30, 2007    |   |        | 137,500    |   |                                                                 | $      | 0.16 |   |
| Exercisable                  at September 30, 2007 |   |        | 15,876,712 |   |                                                                 | $      | 0.30 |   |

| Prepaid                  insurance |   | $      | 2,278  |
|------------------------------------|--------|--------|--------|
| Prepaid                expenses    |   |   | 31,643 |
|                               |   | $      | 33,921 |

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**Note      2 – Furniture and equipment**

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

| Office                  Equipment            |   | $      | 41,950  |   |
|----------------------------------------------|--------|--------|---------|--------|
| Office                furniture and fixtures |   |   | 6,147   |   |
|                                         |   |   | 48,097  |   |
| Accumulated                depreciation      |   |   | (21,544 | )      |
| Total                                        |   | $      | 26,553  |   |

**Note      3 - Related Party Transactions**

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

| Accounts                  payable and accrued liabilities |   | $      | 603,731 |
|-----------------------------------------------------------|--------|--------|---------|
| Accounts                payable - shell company           |   |   | 34,926  |
| Credit                  cards payable                     |   |   | 19,750  |
| Interest                  payable                         |   |   | 3,213   |
| State                income tax payable                   |   |   | 3,200   |
|                                                      |   | $      | 664,820 |

**Note      5 - Notes Payable**

**Note      6 - Equity**

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| **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  |   |                                    |   | 574,780 |   |   |   | 1.72 |   |   | $ | .05-.10 |   |   |   | 574,780 |   |   |   | 1.72 |
|                                    | .125-.22 |   |                                    |   | 2,514,319 |   |   |   | 3.29 |   |   |   | .125-.22 |   |   |   | 1,920,569 |   |   |   | 2.90 |
|                                    | .23-.56  |   |                                    |   | 31,447,434 |   |   |   | 3.47 |   |   |   | .23-.56 |   |   |   | 28,676,597 |   |   |   | 3.36 |
|                                    | 1.00     |   |                                    |   | 677,564 |   |   |   | 1.19 |   |   |   | 1.00 |   |   |   | 677,564 |   |   |   | 1.19 |
|                                    | 2.00     |   |                                    |   | 6,550 |   |   |   | 1.83 |   |   |   | 2.00 |   |   |   | 6,550 |   |   |   | 1.83 |
|                                    |     |   |                                    |   | 35,220,647 |   |   |   | 3.38 |   |   |   |   |   |   |   | 31,856,060 |   |   |   | 3.26 |

|                                               |   | **Number                of Shares****(post-split)** |       |   | **Weighted                Average****Price                Per Share****(post-split)** |
|----------------------------------------------------|--------|-----------------------------------------------------|------------|--------|---------------------------------------------------------------------------------------|
| Outstanding                  at December 31, 2006  |   |                                                | 30,651,547 |   |                                                                                  | $ | 0.37 |
| Granted                                            |   |                                                | 5,000,000  |   |                                                                                  |   | 0.28 |
| Exercised                                          |   |                                                | -          |   |                                                                                  |   | - |
| Cancelled                or expired                |   |                                                | (430,900   | )      |                                                                                  |   | 0.37 |
| Outstanding                  at September 30, 2007 |   |                                                | 35,220,647 |   |                                                                                  | $ | 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 |   |                                   |   | 13,800,000 |   |   |   | 7.97 |   |   | $ | 0.128-0.22 |   |   |   | 13,737,500 |   |   |   | 8.07 |   |
|                                   | 0.23       |   |                                   |   | 1,896,970 |   |   |   | 3.79 |   |   |   | 0.23 |   |   |   | 1,896,970 |   |   |   | 3.79 |   |
|                                   | 0.31       |   |                                   |   | 1,000 |   |   |   | 3.21 |   |   |   | 0.31 |   |   |   | 1,000 |   |   |   | 3.21 |   |
|                                   | 0.33       |   |                                   |   | 103,030 |   |   |   | 2.89 |   |   |   | 0.33 |   |   |   | 103,030 |   |   |   | 2.89 |   |
|                                   | 0.44       |   |                                   |   | 150,000 |   |   |   | 2.75 |   |   |   | 0.44 |   |   |   | 150,000 |   |   |   | 2.75 |   |
|                                   | 25.00      |   |                                   |   | 63,212 |   |   |   | 2.50 |   |   |   | 25.00 |   |   |   | 63,212 |   |   |   | 2.50 |   |
|                                   |       |   |                                   |   | 16,014,212 |   |   |   |   |   |   |   |   |   |   |   | 15,951,712 |   |   |   |   |   |

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|                                              |   | **Number                of Shares** |       |   | **Weighted                Average****Price                Per Share** |
|---------------------------------------------------|--------|-------------------------------------|------------|--------|-----------------------------------------------------------------------|
| Outstanding                  at December 31, 2006 |   |                                | 5,914,212  |   |                                                                  | $ | 0.50 |
| Granted                                           |   |                                | 10,100,000 |   |                                                                  |   | 0.17 |
| Exercised                                         |   |                                | -          |   |                                                                  |   | - |
| Expired                                           |   |                                | -          |   |                                                                  |   | - |
| Outstanding                at September 30, 2007  |   |                                | 16,014,212 |   |                                                                  | $ | 0.30 |
|                                              |   |                                |       |   |                                                                  |   |   |
| Non-vested                at September 30, 2007   |   |                                | 137,500    |   |                                                                  | $ | 0.06 |
| Exercisable                  September 30, 2007   |   |                                | 15,876,712 |   |                                                                  | $ | 0.30 |

**Note      7 - Subsequent Events**

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Item

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

**Results      of Operations for the Nine Month Periods Ended September 30, 2007 and September      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.**

**Sales        or issuances of additional equity securities may adversely affect the market        price of our common stock and your rights in us may be        reduced.**

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Item

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

Item

Item

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Item

Item

|   |                                                                                                                                                                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 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.*           |
|   |                                                                                                                                                                                                                      |

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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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