EXHIBIT 10.4

                               EXTENSION AGREEMENT
                          DATED AS OF JANUARY 21, 2005
                        BETWEEN DMI BIOSCIENCES, INC. AND
                           COGENCO INTERNATIONAL, INC.


     This Extension Agreement dated as of January 21, 2005 is made by and
between DMI BioSciences, Inc., a Colorado corporation ("DMI") and Cogenco
International, Inc. ("Cogenco"), (collectively referred to as the "Parties").

     WHEREAS, DMI and Cogenco entered into a Term Sheet executed on August 23,
2004 (the "Term Sheet"), requiring, among other things, a standstill period
through November 23, 2004 and the execution of the Co-Development Agreement
referred to below;

     WHEREAS, DMI and Cogenco entered into an Amended Letter of Intent dated and
executed on November 5, 2004 (superceding a previous Letter of Intent dated
August 23, 2004) regarding (i) a proposed Co-Development Agreement relating to
the treatment of asthma in humans ("CODA") and (ii) a proposed subsequent merger
and equity investment between the Parties; and

     WHEREAS, DMI and Cogenco entered into a Co-Development Agreement regarding
the treatment of asthma in humans ("CODA") effective on November 21, 2004
requiring, among other things, a non-refundable $500,000 fee and a
non-refundable $2,500,000 access payment, aggregating $3,000,000, due no later
than November 21, 2004;

     WHEREAS, the Parties mutually desire to extend the time required by Cogenco
to make the non-refundable payments aggregating $3,000,000 to DMI under the CODA
from November 2004 to February 22, 2005, pursuant to Section 8 of the CODA

     NOW THEREFORE, in consideration of the mutual covenants and agreements
contained herein, which the Parties hereto acknowledge and to be good and
sufficient consideration, the Parties hereby agree as follows:

     1. Extension. DMI and Cogenco hereby agree to extend the time Cogenco is
allowed under the CODA and Amended LOI to make certain non-refundable fee and
access payments aggregating $3,000,000 to DMI from November 2004 to February 22,
2005 (the "Extension Date"). The CODA and Amended LOI shall remain in place
until the Extension Date.

     2. Waiver of Defaults. DMI hereby waives any and all Events of
Noncompliance and Events of Default of whatever nature by Cogenco pursuant to
CODA and Amended LOI until the Extension Date.

     3. Notice. Any notices, papers, demands or communications which are
required to be given in accordance with this Extension Agreement shall be in
writing and shall be delivered to the relevant Parties pursuant to and at the
addresses set forth in Section 24.1 of the CODA.

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     4. Miscellaneous. This Extension Agreement may only be amended by the
written agreement of DMI and Cogenco. Unless specified herein, this Extension
Agreement may not be assigned by either party except with the express written
consent of both parties. This agreement shall be binding on DMI and Cogenco and
their successors and assigns. This agreement has been made and executed in the
State of Colorado and shall be construed in accordance with the laws of the
State of Colorado.

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.


DMI BIOSCIENCES, INC.



By:___________________________
   Bruce G. Miller, President and CEO


COGENCO INTERNATIONAL, INC.



By:____________________________
   David W. Brenman, President