| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|-----------------------------------------------------------------------------------------|

|  ̈ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| Delaware                                                       | 84-1368850                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |

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

----

|       |                                                                                                                          |                                                                                        |   | Page   |
|------------|-------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|--------|--------|
| PART I.    | FINANCIAL INFORMATION.                                                                                                        |                                                                                        |   |
|       |                                                                                                                          |                                                                                        |   |
|       | Item 1.                                                                                                                       | Financial Statements (Unaudited)                                                            |   | 1      |
|       |                                                                                                                          |                                                                                        |   |   |
|       | CONDENSED CONSOLIDATED BALANCE SHEETS                                                                                         |                                                                                        |   |
|       | as of March 31, 2011 and June 30, 2010                                                                                        |                                                                                        | 2      |
|       |                                                                                                                          |                                                                                        |   |
|       | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                                                                               |                                                                                        |   |
|       | For the Three Months and Nine Months Ended March 31, 2011 and 2010, and From Inception on July 1, 1998 through March 31, 2011 |                                                                                        | 3      |
|       |                                                                                                                          |                                                                                        |   |
|       | CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY                                                                |                                                                                        |   |
|       | For the Nine Months Ended March 31, 2011                                                                                      |                                                                                        | 4      |
|       |                                                                                                                          |                                                                                        |   |
|       | CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                               |                                                                                        |   |
|       | For the Nine Months Ended March 31, 2011 and 2010, and From Inception on July 1, 1998 through March 31, 2011                  |                                                                                        | 5      |
|       |                                                                                                                          |                                                                                        |   |
|       | NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS                                                                          |                                                                                        | 6      |
|       |                                                                                                                          |                                                                                        |   |
|       | Item 2.                                                                                                                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   | 14     |
|       |                                                                                                                          |                                                                                        |   |
|       | Overview                                                                                                                      |                                                                                        | 14     |
|       |                                                                                                                          |                                                                                        |   |
|       | Liquidity and Capital Resources                                                                                               |                                                                                        | 18     |
|       |                                                                                                                          |                                                                                        |   |
|       | Changes to Critical Accounting Policies and Estimates                                                                         |                                                                                        | 20     |
|       |                                                                                                                          |                                                                                        |   |
|       | Results of Operations                                                                                                         |                                                                                        | 21     |
|       |                                                                                                                          |                                                                                        |   |
|       | Off-Balance Sheet Arrangements                                                                                                |                                                                                        | 29     |
|       |                                                                                                                          |                                                                                        |   |
|       | Item 3.                                                                                                                       | Quantitative and Qualitative Disclosures about Market Risk                                  |   | 30     |
|       |                                                                                                                          |                                                                                        |   |   |
|       | Item 4.                                                                                                                       | Controls and Procedures                                                                     |   | 30     |
|       |                                                                                                                          |                                                                                        |   |   |
| PART II.   | OTHER INFORMATION.                                                                                                            |                                                                                        |   |
|       |                                                                                                                          |                                                                                        |   |
|       | Item 1.                                                                                                                       | Legal Proceedings.                                                                          |   | 31     |
|       |                                                                                                                          |                                                                                        |   |   |
|       | Item 1A.                                                                                                            | Risk Factors.                                                                               |   | 31     |
|       |                                                                                                                          |                                                                                        |   |   |
|       | Item 2.                                                                                                                       | Unregistered Sales of Equity Securities and Use of Proceeds.                                |   | 47     |
|       |                                                                                                                          |                                                                                        |   |   |
|       | Item 3.                                                                                                                       | Defaults Upon Senior Securities                                                             |   | 47     |
|       |                                                                                                                          |                                                                                        |   |   |
|       | Item 4.                                                                                                                       | [REMOVED AND RESERVED]                                                                      |   | 47     |
|       |                                                                                                                          |                                                                                        |   |   |
|       | Item 5.                                                                                                                       | Other Information.                                                                          |   | 47     |
|       |                                                                                                                          |                                                                                        |   |   |
|       | Item 6.                                                                                                                       | Exhibits.                                                                                   |   | 47     |
|       |                                                                                                                          |                                                                                        |   |   |
| SIGNATURES |                                                                                                                          |                                                                                        |   | 48     |

----

| Item 1. | Financial Statements (Unaudited). |
|---------|-----------------------------------|

----

|                                                                                                                                                                                       |   | March 31, |        |   | June 30, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|----------|--------|
|                                                                                                                                                                                       |   | 2011      |        |   | 2010     |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |
| ASSETS                                                                                                                                                                                     |   |      |        |   |     |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |
| CURRENT ASSETS:                                                                                                                                                                            |   |      |        |   |     |   |
| Cash and cash equivalents                                                                                                                                                                  |   | $         | 4,860,893   |   |     | $      | 8,026,296 |   |
| Prepaid research supplies and expenses                                                                                                                                                     |   |      | 1,319,872   |   |     |   | 1,304,795 |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| Total Current Assets                                                                                                                                                                       |   |      | 6,180,765   |   |     |   | 9,331,091 |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| Equipment, furniture and fixtures, net                                                                                                                                                     |   |      | 4,481       |   |     |   | 4,554 |   |
| Intangibles, net                                                                                                                                                                           |   |      | 4,900,388   |   |     |   | 4,568,895 |   |
| Deferred income tax assets, net                                                                                                                                                            |   |      | -           |   |     |   | - |   |
| Security deposit                                                                                                                                                                           |   |      | 7,187       |   |     |   | 7,187 |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| TOTAL ASSETS                                                                                                                                                                               |   | $         | 11,092,821  |   |     | $      | 13,911,727 |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                       |   |      |        |   |     |   |   |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| Accounts payable                                                                                                                                                                           |   | $         | 510,281     |   |     | $      | 557,420 |   |
| Accrued expenses                                                                                                                                                                           |   |      | 519,762     |   |     |   | 576,857 |   |
| Line of credit                                                                                                                                                                             |   |      | 2,194,844   |   |     |   | 2,194,844 |   |
| Deferred rent                                                                                                                                                                              |   |      | 2,015       |   |     |   | - |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| Total Current Liabilities                                                                                                                                                                  |   |      | 3,226,902   |   |     |   | 3,329,121 |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| Warrant liabilities ($0 and $490,438 to related parties, respectively)                                                                                                                     |   |      | 867,289     |   |     |   | 2,493,794 |   |
| Deferred rent                                                                                                                                                                              |   |      | -           |   |     |   | 8,060 |   |
| Grant payable                                                                                                                                                                              |   |      | 99,728      |   |     |   | 99,728 |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| TOTAL LIABILITIES                                                                                                                                                                          |   |      | 4,193,919   |   |     |   | 5,930,703 |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| STOCKHOLDERS' EQUITY:                                                                                                                                                                      |   |      |        |   |     |   |   |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| Preferred stock, $0.01 par value, authorized 5,000,000 shares                                                                                                                              |   |      |        |   |     |   |   |   |
| Series A 10,297 shares issued and 3,850 and 8,035 shares outstanding, respectively (liquidation preference of $4,042,500 and $8,235,875 at March 31, 2011 and June 30, 2010, respectively) |   |      | 38          |   |     |   | 80 |   |
| Series B 1,200 shares issued and outstanding (liquidation preference of $1,260,000 and $1,210,000 at March 31, 2011 and June 30, 2010, respectively)                                       |   |      | 12          |   |     |   | 12 |   |
| Common stock, $0.01 par value, authorized 250,000,000 shares, issued and outstanding 75,903,016 and 50,092,204, at March 31, 2011 and June 30, 2010, respectively                          |   |      | 759,030     |   |     |   | 500,922 |   |
| Capital in excess of par                                                                                                                                                                   |   |      | 63,936,922  |   |     |   | 58,321,169 |   |
| Deficit accumulated during the development stage                                                                                                                                           |   |      | (57,797,100 | )      |     |   | (50,841,159 | ) |
|                                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| Total Stockholders' Equity                                                                                                                                                                 |   |      | 6,898,902   |   |     |   | 7,981,024 |   |
|                                                                                                                                                                                       |   |      |        |   |     |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                                 |   | $         | 11,092,821  |   |     | $      | 13,911,727 |   |

----

|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   | Cumulative |       |
|------------------------------------------------------------------------|--------|------------------------------|------------|--------|-----------------------------|--------|------------|--------------|--------|--------|------------|--------|--------|------------|------------|
|                                                                   |   | Three months ended March 31, |       |   | Nine months ended March 31, |   |       | Amounts from |   |
|                                                                   |   | 2011                         |       |   | 2010                        |   |       | 2011         |   |   | 2010       |   |   | Inception  |       |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |
| Revenue                                                                |   | $                            | -          |   |                        | $      | -          |         |   | $      | -          |   |   | $          | 140,000    |   |   | $ | 1,590,000 |   |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Operating expenses:                                                    |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| General and administrative                                             |   |                         | 567,460    |   |                        |   | 554,953    |         |   |   | 1,943,029  |   |   |       | 1,735,317  |   |   |   | 28,223,340 |   |
| Research and development                                               |   |                         | 800,341    |   |                        |   | 566,307    |         |   |   | 3,135,200  |   |   |       | 1,522,610  |   |   |   | 18,084,164 |   |
| Total operating expenses                                               |   |                         | 1,367,801  |   |                        |   | 1,121,260  |         |   |   | 5,078,229  |   |   |       | 3,257,927  |   |   |   | 46,307,504 |   |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Loss from operations                                                   |   |                         | (1,367,801 | )      |                        |   | (1,121,260 | )            |   |   | (5,078,229 | )      |   |       | (3,117,927 | ) |   |   | (44,717,504 | ) |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Other non-operating income (expense)                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Grant income                                                           |   |                         | -          |   |                        |   | -          |         |   |   | 244,479    |   |   |       | -          |   |   |   | 244,479 |   |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Fair value – warrant liability                                   |   |                         | (16,177    | )      |                        |   | (527,566   | )            |   |   | 453,209    |   |   |       | 1,811,775  |   |   |   | 7,701,637 |   |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Sale of state income tax loss – net                              |   |                         | -          |   |                        |   | -          |         |   |   | -          |   |   |       | -          |   |   |   | 586,442 |   |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Other noncash (expense) income, net                                    |   |                         | -          |   |                        |   | -          |         |   |   | (115,869   | )      |   |       | -          |   |   |   | 205,390 |   |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Loss on extinguishment of debt                                         |   |                         | -          |   |                        |   | (275,345   | )            |   |   | -          |   |   |       | (361,877   | ) |   |   | (361,877 | ) |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Amortization of debt discount and financing costs                      |   |                         | -          |   |                        |   | (3,206,049 | )            |   |   | -          |   |   |       | (4,973,909 | ) |   |   | (11,227,870 | ) |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Interest expense – convertible notes                             |   |                         | -          |   |                        |   | (146,640   | )            |   |   | -          |   |   |       | (528,909   | ) |   |   | (2,027,930 | ) |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Interest (expense) income - net                                        |   |                         | (21,130    | )      |                        |   | (7,375     | )            |   |   | (60,737    | )      |   |       | (6,349     | ) |   |   | 438,441 |   |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Net loss                                                               |   |                         | (1,405,108 | )      |                        |   | (5,284,235 | )            |   |   | (4,557,147 | )      |   |       | (7,177,196 | ) |   |   | (49,158,792 | ) |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Preferred dividends                                                    |   |                         | (716,780   | )      |                        |   | -          |         |   |   | (2,398,794 | )      |   |       | -          |   |   |   | (8,638,308 | ) |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Loss applicable to common shares                                       |   | $                            | (2,121,888 | )      |                        | $      | (5,284,235 | )            |   | $      | (6,955,941 | )      |   | $          | (7,177,196 | ) |   | $ | (57,797,100 | ) |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Basic and diluted net loss per common share                            |   | $                            | (0.03      | )      |                        | $      | (0.17      | )            |   | $      | (0.10      | )      |   | $          | (0.27      | ) |   |   |   |   |
|                                                                   |   |                         |       |   |                        |   |       |         |   |   |       |   |   |       |       |   |   |   |   |   |
| Basic and diluted weighted-average number of common shares outstanding |   |                         | 74,904,192 |   |                        |   | 31,650,371 |         |   |   | 66,731,159 |   |   |       | 26,610,925 |   |   |   |   |   |

----

|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   | Deficit     |   |       |          |   |
|-------------------------------------------------------------------------------------|--------|-----------------|--------|--------|--------------|--------|--------|--------------|--------|--------|------------|--------|--------|-------------------|---------|--------|-------------|--------|------------|---------------|--------|
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   | Accumulated |   |       |          |   |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   | During the  |   |       | Stockholders' |   |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   | Capital in Excess |    |   | Development |   |       | Equity        |   |
|                                                                                |   | Preferred Stock |   |   | Common Stock |   |   | of Par Value |   |   | Stage      |   |   | (Deficiency)      |    |
|                                                                                |   | Shares          |   |   | Amount       |   |   | Shares       |   |   | Amount     |   |   |              |    |   |        |   |       |          |   |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |
| Balance July 1, 1998 (inception) through June 30, 2010                              |   |            | 9,235  |   |         | $      | 92     |         |   |   | 50,092,204 |   |   | $                 | 500,922 |   |        | $      | 58,321,169 |          |   | $ | (50,841,159 | ) |   | $ | 7,981,024 |   |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock at prices ranging from $0.30 per share to $0.36 per share  |   |            | -      |   |         |   | -      |         |   |   | 5,848,215  |   |   |              | 58,482  |   |        |   | 1,775,902  |          |   |   | - |   |   |   | 1,834,384 |   |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |   |   |   |   |   |   |   |
| Commissions and other fees related to the issuance of common stock                  |   |            | -      |   |         |   | -      |         |   |   | -          |   |   |              | -       |   |        |   | (196,674   | )             |   |   | - |   |   |   | (196,674 | ) |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |   |   |   |   |   |   |   |
| Preferred stock converted into common stock                                         |   |            | (4,185 | )      |         |   | (42    | )            |   |   | 13,135,417 |   |   |              | 131,354 |   |        |   | (131,312   | )             |   |   | - |   |   |   | - |   |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |   |   |   |   |   |   |   |
| Warrants converted into common stock                                                |   |            |   |   |         |   |   |         |   |   | 175,000    |   |   |              | 1,750   |   |        |   | -          |          |   |   | - |   |   |   | 1,750 |   |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock in lieu of cash payment for dividends                      |   |            | -      |   |         |   | -      |         |   |   | 6,642,180  |   |   |              | 66,422  |   |        |   | 1,950,014  |          |   |   | (1,785,561 | ) |   |   | 230,875 |   |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |   |   |   |   |   |   |   |
| Fair market value of options and warrants vested and amended                        |   |            | -      |   |         |   | -      |         |   |   | -          |   |   |              | -       |   |        |   | 683,894    |          |   |   | - |   |   |   | 683,894 |   |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |   |   |   |   |   |   |   |
| Reclassification of warrant liability                                               |   |            | -      |   |         |   | -      |         |   |   | -          |   |   |              | -       |   |        |   | 1,173,296  |          |   |   | - |   |   |   | 1,173,296 |   |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |   |   |   |   |   |   |   |
| Issuance of common stock under the Company's the Company's long-term incentive plan |   |            | -      |   |         |   | -      |         |   |   | 10,000     |   |   |              | 100     |   |        |   | (100       | )             |   |   | - |   |   |   | - |   |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |   |   |   |   |   |   |   |
| Deemed dividend - Preferred Stock                                                   |   |            | -      |   |         |   | -      |         |   |   | -          |   |   |              | -       |   |        |   | 360,733    |          |   |   | (360,733 | ) |   |   | - |   |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |   |   |   |   |   |   |   |
| Dividends accrued and unpaid at March 31, 2011                                      |   |            | -      |   |         |   | -      |         |   |   | -          |   |   |              | -       |   |        |   | -          |          |   |   | (252,500 | ) |   |   | (252,500 | ) |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |   |   |   |   |   |   |   |
| Net loss                                                                            |   |            | -      |   |         |   | -      |         |   |   | -          |   |   |              | -       |   |        |   | -          |          |   |   | (4,557,147 | ) |   |   | (4,557,147 | ) |
|                                                                                |   |            |   |   |         |   |   |         |   |   |       |   |   |              |    |   |        |   |       |          |   |   |   |   |   |   |   |   |
| Balance at March 31, 2011                                                           |   |            | 5,050  |   |         | $      | 50     |         |   |   | 75,903,016 |   |   | $                 | 759,030 |   |        | $      | 63,936,922 |          |   | $ | (57,797,100 | ) |   | $ | 6,898,902 |   |

----

|                                                                                          |   |                        |       |   | Cumulative   |   |
|-----------------------------------------------------------------------------------------------|--------|-----------------------------|------------|--------|--------------|--------|
|                                                                                          |   | Nine months ended March 31, |       |   | Amounts from |   |
|                                                                                          |   | 2011                        |       |   | 2010         |   |   | Inception |   |
| Cash flows from operating activities:                                                         |   |                        |       |   |         |   |   |   |   |
| Net loss                                                                                      |   | $                           | (4,557,147 | )      |         | $      | (7,177,196 | ) |   | $ | (49,158,792 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities:                   |   |                        |       |   |         |   |   |   |   |   |   |   |
| Noncash capital contribution                                                                  |   |                        | -          |   |         |   | - |   |   |   | 85,179 |   |
| Noncash conversion of accrued expenses into equity                                            |   |                        | -          |   |         |   | - |   |   |   | 131,250 |   |
| Noncash income related to change in fair value of warrant liability                           |   |                        | (453,209   | )      |         |   | (1,811,775 | ) |   |   | (8,022,896 | ) |
| Noncash charge for change in warrant terms                                                    |   |                        | 115,869    |   |         |   | - |   |   |   | 115,869 |   |
| Issuance of common stock and warrants for interest                                            |   |                        | -          |   |         |   | 382,269 |   |   |   | 2,003,386 |   |
| Issuance of common stock for services                                                         |   |                        | -          |   |         |   | 53,800 |   |   |   | 53,800 |   |
| Stock-based compensation expense                                                              |   |                        | 568,025    |   |         |   | 271,784 |   |   |   | 11,157,608 |   |
| Depreciation and amortization                                                                 |   |                        | 105,547    |   |         |   | 92,613 |   |   |   | 804,555 |   |
| Deferred rent                                                                                 |   |                        | (6,045     | )      |         |   | (5,968 | ) |   |   | 2,015 |   |
| Amortization of convertible note discount                                                     |   |                        | -          |   |         |   | 4,518,864 |   |   |   | 10,000,000 |   |
| Amortization of deferred financing costs                                                      |   |                        | -          |   |         |   | 455,045 |   |   |   | 1,227,869 |   |
| Loss on extinguishment of debt                                                                |   |                        | -          |   |         |   | 361,877 |   |   |   | 361,877 |   |
| (Increase) decrease in operating assets:                                                      |   |                        |       |   |         |   |   |   |   |   |   |   |
| Prepaid expenses and other current assets                                                     |   |                        | (15,077    | )      |         |   | (108,140 | ) |   |   | (1,319,872 | ) |
| Security deposit                                                                              |   |                        | -          |   |         |   | - |   |   |   | (7,187 | ) |
| Increase (decrease) in operating liabilities:                                                 |   |                        |       |   |         |   |   |   |   |   |   |   |
| Accounts payable                                                                              |   |                        | (47,139    | )      |         |   | 599,455 |   |   |   | 510,281 |   |
| Accrued expenses                                                                              |   |                        | (78,720    | )      |         |   | 265,677 |   |   |   | 442,263 |   |
| Net cash used in operating activities                                                         |   |                        | (4,367,896 | )      |         |   | (2,101,695 | ) |   |   | (31,612,795 | ) |
|                                                                                          |   |                        |       |   |         |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                         |   |                        |       |   |         |   |   |   |   |   |   |   |
| Patent costs                                                                                  |   |                        | (434,941   | )      |         |   | (689,843 | ) |   |   | (5,529,219 | ) |
| Purchase of equipment, furniture and fixtures                                                 |   |                        | (2,026     | )      |         |   | (1,116 | ) |   |   | (180,205 | ) |
| Net cash (used in) provided by investing activities                                           |   |                        | (436,967   | )      |         |   | (690,959 | ) |   |   | (5,709,424 | ) |
|                                                                                          |   |                        |       |   |         |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                         |   |                        |       |   |         |   |   |   |   |   |   |   |
| Proceeds from grant                                                                           |   |                        | -          |   |         |   | - |   |   |   | 99,728 |   |
| Proceeds from draw-down on line of credit                                                     |   |                        | -          |   |         |   | 2,198,609 |   |   |   | 2,194,844 |   |
| Proceeds from issuance of bridge notes                                                        |   |                        | -          |   |         |   | - |   |   |   | 525,000 |   |
| Proceeds from issuance of preferred stock and warrants, net                                   |   |                        | -          |   |         |   | - |   |   |   | 10,754,841 |   |
| Redemption of convertible notes and warrants                                                  |   |                        | -          |   |         |   | (2,160,986 | ) |   |   | (2,160,986 | ) |
| Proceeds from issuance of convertible notes                                                   |   |                        | -          |   |         |   | - |   |   |   | 9,340,000 |   |
| Deferred financing costs                                                                      |   |                        | -          |   |         |   | - |   |   |   | (651,781 | ) |
| Proceeds from issuance of common stock and warrants, net and exercise of warrants and options |   |                        | 1,639,460  |   |         |   | 1,364,169 |   |   |   | 22,081,466 |   |
| Net cash provided by financing activities                                                     |   |                        | 1,639,460  |   |         |   | 1,401,792 |   |   |   | 42,183,112 |   |
|                                                                                          |   |                        |       |   |         |   |   |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                                          |   |                        | (3,165,403 | )      |         |   | (1,390,862 | ) |   |   | 4,860,893 |   |
|                                                                                          |   |                        |       |   |         |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                              |   |                        | 8,026,296  |   |         |   | 1,430,569 |   |   |   | - |   |
| Cash and cash equivalents at end of period                                                    |   | $                           | 4,860,893  |   |         | $      | 39,707 |   |   | $ | 4,860,893 |   |
|                                                                                          |   |                        |       |   |         |   |   |   |   |   |   |   |
| Supplemental disclosure of non-cash transactions:                                             |   |                        |       |   |         |   |   |   |   |   |   |   |
|                                                                                          |   |                        |       |   |         |   |   |   |   |   |   |   |
| Conversion of convertible note into common stock                                              |   | $                           | -          |   |         | $      | 2,619,360 |   |   | $ | 10,000,000 |   |
| Conversion of bridge notes into common stock                                                  |   |                        | -          |   |         |   | - |   |   |   | 534,316 |   |
| Conversion of preferred stock into common stock                                               |   |                        | 131,354    |   |         |   | - |   |   |   | 317,317 |   |
| Allocation of preferred stock proceeds to warrants and beneficial conversion feature          |   |                        | 360,733    |   |         |   | - |   |   |   | 7,449,780 |   |
| Allocation of convertible debt proceeds to warrants and beneficial conversion feature         |   |                        | -          |   |         |   | - |   |   |   | 9,340,000 |   |
| Warrants issued for financing costs                                                           |   |                        | -          |   |         |   | - |   |   |   | 690,984 |   |
| Issuance of common stock for interest payments on convertible notes                           |   |                        | -          |   |         |   | 382,269 |   |   |   | 2,003,386 |   |
| Issuance of common stock for dividend payments on preferred stock                             |   |                        | 1,785,561  |   |         |   | - |   |   |   | 3,204,592 |   |
| Issuance of common stock in settlement of accounts payable                                    |   |                        | -          |   |         |   | 175,000 |   |   |   | 175,000 |   |
| Dividends accrued on preferred stock                                                          |   |                        | 252,500    |   |         |   | - |   |   |   | 252,500 |   |
| Supplemental disclosure of cash flow information:                                             |   |                        |       |   |         |   |   |   |   |   |   |   |
| Cash paid for interest                                                                        |   |                        | 79,373     |   |         |   | 33,859 |   |   |   | 205,858 |   |

----

----

|   | · | delay, scale-back or eliminate some or all of its research and product development programs; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | license third parties to develop and commercialize products or technologies that it would otherwise seek to develop and commercialize itself; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | seek strategic alliances or business combinations; |
|--------|--------|----------------------------------------------------|

|   | · | attempt to sell the Company; |
|--------|--------|------------------------------|

|   | · | cease operations; or |
|--------|--------|----------------------|

|   | · | declare bankruptcy. |
|--------|--------|---------------------|

|   | • | significant negative industry trends; |
|--------|---------|---------------------------------------|

|   | • | significant underutilization of the assets; |
|--------|---------|---------------------------------------------|

|   | • | significant changes in how the Company uses the assets or its plans for their use; and |
|--------|---------|----------------------------------------------------------------------------------------|

|   | • | changes in technology and the appearance of competing technology. |
|--------|---------|-------------------------------------------------------------------|

----

|                        |   | Three Months Ended |            |   | Nine Months Ended |   |
|-----------------------------|--------|--------------------|-----------------|--------|-------------------|--------|
|                        |   | March 31,          |            |   | March 31,         |   |
|                        |   | 2011               |            |   | 2010              |   |   | 2011 |   |   | 2010 |   |
|                        |   |               |            |   |              |   |   |   |   |   |   |   |
| Warrants granted            |   | None               |            |   | None              |   |   | None |   |   | None |   |
| Options granted             |   |               | 208,620         |   |              |   | 1,015,000 |   |   |   | 4,324,512 |   |   |   | 1,748,399 |   |
| Estimated life in years     |   |               | 5.0 – 5.5 |   |              |   | 5 - 5.7 |   |   |   | 5.0-10.0 |   |   |   | 3.5 - 5.7 |   |
| Risk-free interest rate (1) |   |               | 2.37            | %      |              |   | 2.5%-3.9 | % |   |   | 1.3%-2.9 | % |   |   | 2.2% – 3.9 | % |
| Volatility                  |   |               | 104             | %      |              |   | 100 | % |   |   | 104 | % |   |   | 100 | % |
| Dividend paid               |   | None               |            |   | None              |   |   | None |   |   | None |   |

|                              |   | Number of Options |       |   | Weighted-AverageExercise Price |   |
|-----------------------------------|--------|-------------------|------------|--------|--------------------------------|--------|
| Outstanding at July 1, 2010       |   |              | 7,269,172  |   |                           | $      | 1.13 |   |
| Granted                           |   |              | 4,324,512  |   |                           |   | 0.26 |   |
| Exercised                         |   |              | —    |   |                           |   | — |   |
| Expired                           |   |              | (500,000   | )      |                           |   | 1.14 |   |
| Outstanding at March 31, 2011     |   |              | 11,093,684 |   |                           | $      | 0.79 |   |
| Exercisable at March 31, 2011     |   |              | 6,622,014  |   |                           | $      | 1.10 |   |
| Not Exercisable at March 31, 2011 |   |              | 4,471,670  |   |                           | $      | 0.26 |   |

----

----

|                      |   |     |      |   | Fair Value Measurement at |                      |
|---------------------------|--------|----------|-----------|--------|------------------------------------------|---------------------------|
|                 |   | Carrying |      |   | March 31, 2011                 |                      |
|                 |   | Value    |      |   | Level 1                             |                      |   | Level 2 |   |   | Level 3 |   |
| Assets:                   |   |     |      |   |                                     |                      |   |   |   |   |   |   |
| Cash and cash equivalents |   | $        | 4,860,893 |   |                                     | $                         | 4,860,893 |   |   | $ | - |   |   | $ | - |   |
| Liabilities:              |   |     |      |   |                                     |                      |   |   |   |   |   |   |   |   |   |   |
| Warrant Liabilities       |   | $        | 867,289   |   |                                     | $                         | - |   |   | $ | 867,289 |   |   | $ | - |   |
|                      |   |     |      |   |                                     |                      |   |   |   |   |   |   |   |   |   |   |
|                      |   |     |      |   |                                     | Fair Value Measurement at |   |
|                      |   | Carrying |      |   | June 30, 2010                            |                      |
|                      |   | Value    |      |   | Level 1                                  |                      |   | Level 2 |   |   | Level 3 |   |
| Assets:                   |   |     |      |   |                                     |                      |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents |   | $        | 7,937,945 |   |                                     | $                         | 7,937,945 |   |   | $ | - |   |   | $ | - |   |
| Liabilities:              |   |     |      |   |                                     |                      |   |   |   |   |   |   |   |   |   |   |
| Warrant Liabilities       |   | $        | 2,493,794 |   |                                     | $                         | - |   |   | $ | 2,493,794 |   |   | $ | - |   |

----

|                                 |   | March 31, 2011 |   |   | June 30, 2010 |   |
|--------------------------------------|--------|--------------------------|--------|--------|-------------------------|--------|
| Warrants issued on December 20, 2007 |   |                     |   |   |                    |   |
| Estimated life in years              |   |                     | 1.75   |   |                    |   | 2.50 |   |
| Risk-free interest rate (1)          |   |                     | 0.80   | %      |                    |   | 0.80 | % |
| Volatility                           |   |                     | 91     | %      |                    |   | 106 | % |
| Dividend paid                        |   | None                     |   |   | None                    |   |
|                                 |   |                     |   |   |                    |   |   |   |
| Warrants issued on June 30, 2008     |   |                     |   |   |                    |   |   |   |
| Estimated life in years              |   |                     | 2.25   |   |                    |   | 3.00 |   |
| Risk-free interest rate (1)          |   |                     | 0.80   | %      |                    |   | 1.00 | % |
| Volatility                           |   |                     | 91     | %      |                    |   | 106 | % |
| Dividend paid                        |   | None                     |   |   | None                    |   |
|                                 |   |                     |   |   |                    |   |   |   |
| Warrants issued on April 1, 2010     |   |                     |   |   |                    |   |   |   |
| Estimated life in years              |   |                     | 4.00   |   |                    |   | 4.75 |   |
| Risk-free interest rate (1)          |   |                     | 1.76   | %      |                    |   | 1.79 | % |
| Volatility                           |   |                     | 111    | %      |                    |   | 106 | % |
| Dividend paid                        |   | None                     |   |   | None                    |   |
|                                 |   |                     |   |   |                    |   |   |   |
| Warrants issued on June 2, 2010 (2)  |   |                     |   |   |                    |   |   |   |
| Estimated life in years              |   |                     | -      |   |                    |   | 4.9 |   |
| Risk-free interest rate (1)          |   |                     | -      |   |                    |   | 1.79 | % |
| Volatility                           |   |                     | -      |   |                    |   | 106 | % |
| Dividend paid                        |   |                     | -      |   |                    | None   |   |

|   | (1) | Represents the interest rate on a U.S. Treasury security with a maturity date corresponding to that of the warrant term. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Such warrants were amended during the nine months ended March 31, 2011 and are no longer deemed liabilities. |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

----

----

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
|---------|----------------------------------------------------------------------------------------------|

----

----

|   | · | further develop and implement the DHS and Factor 5A gene technology in banana, canola, cotton, turfgrass, rice, alfalfa, corn, soybean and trees; and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | test the resultant crops for new beneficial traits such as increased yield, increased tolerance to environmental stress, disease resistance and more efficient use of fertilizer. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Seed Transformation |   | approximately 1 to 2 years |
|---------------------|--------|----------------------------|
| Greenhouse          |   | approximately 1 to 2 years |
| Field Trials        |   | approximately 2 to 5 years |

| Project                          |         | Partner            |         | Status                   |
|----------------------------------|--------------|--------------------|--------------|--------------------------|
| Banana                           |         | Rahan Meristem     |         |                     |
|   - Shelf Life         |         |               |         | Field trials             |
|   - Disease Resistance |         |               |         | Field trials             |
| Trees                            |         | Arborgen           |         |                     |
|   - Growth             |         |               |         | Field trials             |
| Alfalfa                          |         | Cal/West           |         | Greenhouse               |
| Corn                             |         | Monsanto           |         | Proof of concept ongoing |
| Cotton                           |         | Bayer              |         | Seed transformation      |
| Canola                           |         | Bayer              |         | Seed transformation      |
| Rice                             |         | Bayer              |         | Proof of concept ongoing |
| Soybean                          |         | Monsanto           |         | Proof of concept ongoing |
| Turfgrass                        |    | The Scotts Company |    | Greenhouse               |

----

----

|                                                                |   | Payments Due by Period |      |
|---------------------------------------------------------------------|--------|---------------------------------------|-----------|
| Contractual Obligations                                        |   | Total                                 |      |   | Less than 1 year |   |   | 1 - 3 years |   |   | 3 - 5 years |   |   | More than 5 years |   |
| Research and Development Agreements (1)                             |   | $                                     | 965,879   |   |   | $ | 965,879 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| Facility, Rent and Operating Leases (2)                             |   | $                                     | 13,376    |   |   | $ | 13,376 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| Employment, Consulting and Scientific Advisory Board Agreements (3) |   | $                                     | 182,417   |   |   | $ | 173,250 |   |   | $ | 9,167 |   |   | $ | — |   |   | $ | — |   |
| Total Contractual Cash Obligations                                  |   | $                                     | 1,161,672 |   |   | $ | 1,152,505 |   |   | $ | 9,167 |   |   | $ | — |   |   | $ | — |   |

| (1) | Certain of our research and development agreements disclosed herein provide that payment is to be made in Canadian dollars and, therefore, the contractual obligations are subject to fluctuations in the exchange rate. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The lease for our office space in New Brunswick, New Jersey is subject to certain escalations for our proportionate share of increases in the building’s operating costs. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Certain of our consulting agreements provide for automatic renewal, which is not reflected in the table, unless terminated earlier by the parties to the respective agreements. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | utilizing our current cash balance and investments; |
|--------|--------|-----------------------------------------------------|

|   | · | the placement of additional equity or debt instruments; |
|--------|--------|---------------------------------------------------------|

|   | · | achieving some of the milestones set forth in our current licensing agreements; and |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | the possible execution of additional licensing agreements for our technology. |
|--------|--------|-------------------------------------------------------------------------------|

----

----

|                             |   | Three Months Ended March 31,    |   |
|----------------------------------|--------|-----------------------------------------------------|--------|
|                             |   | 2011                                                |   |   | 2010 |   |   | Change |   |   | % |   |
|                             |   | (in thousands, except % values) |   |
|                             |   |                                                |   |   |   |   |   |   |   |   |   |   |
| Payroll and benefits             |   | $                                                   | 144    |   |   | $ | 142 |   |   | $ | 2 |   |   |   | 1.4 | % |
| Investor relations               |   |                                                | 90     |   |   |   | 34 |   |   |   | 56 |   |   |   | 164.7 | % |
| Professional fees                |   |                                                | 39     |   |   |   | 122 |   |   |   | (83 | ) |   |   | (68.0 | )% |
| Depreciation and amortization    |   |                                                | 36     |   |   |   | 32 |   |   |   | 4 |   |   |   | 12.5 | % |
| Other general and administrative |   |                                                | 98     |   |   |   | 84 |   |   |   | 14 |   |   |   | 16.7 | % |
|                             |   |                                                | 407    |   |   |   | 414 |   |   |   | (7 | ) |   |   | (1.7 | )% |
| Stock-based compensation         |   |                                                | 160    |   |   |   | 141 |   |   |   | 19 |   |   |   | 13.5 | % |
| Total general and administrative |   | $                                                   | 567    |   |   | $ | 555 |   |   | $ | 12 |   |   |   | 2.2 | % |

|   | · | Investor relations expense for the three months ended March 31, 2011 was higher than for the three months ended March 31, 2010, primarily as a result of the timing of our annual meeting and an increase in investor relations consulting costs.  The current year annual meeting was held in March 2011.  The previous year annual meeting was held in May 2010. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Professional fees for the three months ended March 31, 2011 was lower than for the three months ended March 31, 2010, primarily as a result of a decrease in legal fees, which was slightly offset by an increase accounting fees.  Legal fees decreased primarily due to discounts on legal fees that were recorded during the three months ended March 31, 2011 but were not available during the three months ended March 31, 2010.  Accounting fees increased primarily due to the use of a consultant to assist with the preparation of our quarterly filings. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation and amortization for the three months ended March 31, 2011 was higher than for the three months ended March 31, 2010, primarily as a result of an increase in amortization of patent costs. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other general and administration expenses for the three months ended March 31, 2011 was higher than for the three months ended March 31, 2010 primarily due to an increase in insurance costs and director compensation. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Stock-based compensation for the three months ended March 31, 2011 was higher than for the three months ended March 31, 2010, primarily due to the amortization of the Black-Scholes value of the options previously granted to employees and directors. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                              |   | Three Months Ended March 31,    |   |
|---------------------------------------------------|--------|-----------------------------------------------------|--------|
|                                              |   | 2011                                                |   |   | 2010 |   |   | Change |   |   | % |   |
|                                              |   | (in thousands, except % values) |   |
| Payroll                                           |   | $                                                   | 41     |   |   | $ | 39 |   |   | $ | 2 |   |   |   | 5.1 | % |
| Research contract with the University of Waterloo |   |                                                | 149    |   |   |   | 164 |   |   |   | (15 | ) |   |   | (9.1 | )% |
| Other research and development                    |   |                                                | 607    |   |   |   | 361 |   |   |   | 246 |   |   |   | 68.4 | % |
|                                              |   |                                                | 797    |   |   |   | 564 |   |   |   | 233 |   |   |   | 41.5 | % |
| Stock-based compensation                          |   |                                                | 3      |   |   |   | 2 |   |   |   | 1 |   |   |   | 50.0 | % |
| Total research and development                    |   | $                                                   | 800    |   |   | $ | 566 |   |   | $ | 234 |   |   |   | 41.3 | % |

|   | · | The cost associated with the research contract with the University of Waterloo decreased primarily due to a reduction in amount being funded for agricultural research, effective March 1, 2011. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other research and development costs increased primarily due to an increase in the costs incurred in connection with our development of SNS01-T for multiple myeloma.  Specifically, during the three months ended March 31, 2011, we were concluding our pivotal toxicology study, filing an IND for the treatment of multiple myeloma with SNS01-T and the preparation for a clinical trial. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   | Three Months Ended March 31,    |   |
|--------------------------------|--------|---------------------------------|--------|
|                           |   | 2011                            |   |   | % |   |   | 2010 |   |   | % |   |
|                           |   | (in thousands, except % values) |   |
| Agricultural                   |   | $                               | 126    |   |   |   | 16 | % |   | $ | 138 |   |   |   | 24 | % |
| Human health                   |   |                            | 674    |   |   |   | 84 | % |   |   | 428 |   |   |   | 76 | % |
| Total research and development |   | $                               | 800    |   |   |   | 100 | % |   | $ | 566 |   |   |   | 100 | % |

|   | · | Agricultural research expenses did not materially change during the three months ended March 31, 2011 from the three months ended March 31, 2010, as we have not materially changed the scope of our agricultural research. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Human health research expenses increased during the three months ended March 31, 2011, primarily as a result of the timing of certain aspects of the development of our potential drug candidate, SNS01-T, for treating multiple myeloma.  Specifically, during the three months ended March 31, 2011, we incurred costs related to the conclusion of our pivotal toxicology studies, the preparation and filing of an IND and the preparation for a clinical trial. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                             |   | Nine Months Ended March 31,     |   |
|----------------------------------|--------|---------------------------------|--------|
|                             |   | 2011                            |   |   | 2010 |   |   | Change |   |   | % |   |
|                             |   | (in thousands, except % values) |   |
|                             |   |                            |   |   |   |   |   |   |   |   |   |   |
| Payroll and benefits             |   | $                               | 429    |   |   | $ | 542 |   |   | $ | (113 | ) |   |   | (20.8 | )% |
| Investor relations               |   |                            | 196    |   |   |   | 125 |   |   |   | 71 |   |   |   | 56.8 | % |
| Professional fees                |   |                            | 305    |   |   |   | 384 |   |   |   | (79 | ) |   |   | (20.6 | )% |
| Depreciation and amortization    |   |                            | 105    |   |   |   | 93 |   |   |   | 12 |   |   |   | 12.9 | % |
| Other general and administrative |   |                            | 374    |   |   |   | 267 |   |   |   | 107 |   |   |   | 40.1 | % |
|                             |   |                            | 1,409  |   |   |   | 1,411 |   |   |   | (2 | ) |   |   | (0.1 | )% |
| Stock-based compensation         |   |                            | 534    |   |   |   | 324 |   |   |   | 210 |   |   |   | 64.8 | % |
| Total general and administrative |   | $                               | 1,943  |   |   | $ | 1,735 |   |   | $ | 208 |   |   |   | 12.0 | % |

|   | · | Payroll and benefits for the nine months ended March 31, 2011 was lower than for the nine months ended March 31, 2010, primarily due to the severance package recorded for the former VP – Corporate Development during Fiscal 2010 and the lower salary paid to the interim President and CEO from November 2009 through March 2010 as compared to the salary being paid to the current President and CEO.  This was partially offset by a bonus granted to the Chief Financial Officer during Fiscal 2011. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Investor relations expense for the nine months ended March 31, 2011 was higher than for the nine months ended March 31, 2010, primarily as a result of the timing of our annual meeting and an increase in investor relations consulting costs.  The current year annual meeting was held in March 2011.  The previous year annual meeting was held in May 2010. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Professional fees for the nine months ended March 31, 2011 was lower than for the nine months ended March 31, 2010, primarily as a result of an decrease in legal fees, which was slightly offset by an increase accounting fees.  Legal fees decreased primarily due to discounts on legal fees that were recorded during the nine months ended March 31, 2011 but were not available during the nine months ended March 31, 2010.  Accounting fees increased primarily due to the use of a consultant to assist with the preparation of our quarterly filings. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation and amortization for the nine months ended March 31, 2011 was higher than for the nine months ended March 31, 2010, primarily as a result of an increase in amortization of patent costs. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other general and administration expenses for the nine months ended March 31, 2011 was higher than for the nine months ended March 31, 2010, primarily due to an increase in insurance, franchise taxes and certain consulting costs. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Stock-based compensation for the nine months ended March 31, 2011 was higher than for the nine months ended March 31, 2010, primarily due to the increase in the number of options granted during the nine months ended March 31, 2011 as compared to the number of options granted during the nine months ended March 31, 2010.  Additionally, stock-based compensation for the nine months ended March 31, 2011 includes the Black-Scholes value of the 300,000 warrants granted to consultants.  Also, during the nine months ended March 31, 2011, we recognized $93,500 of stock-based compensation in connection with the achievement of a milestone related to our long-term incentive plan. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                              |   | Nine Months Ended March 31, |   |
|---------------------------------------------------|--------|-------------------------------------------------|--------|
|                                              |   | 2011                                            |   |   | 2010 |   |   | Change |   |   | % |   |
|                                              |   | (in thousands, except % values)                 |   |
| Payroll                                           |   | $                                               | 137    |   |   | $ | 118 |   |   | $ | 19 |   |   |   | 16.1 | % |
| Research contract with the University of Waterloo |   |                                            | 463    |   |   |   | 479 |   |   |   | (16 | ) |   |   | (3.3 | )% |
| Other research and development                    |   |                                            | 2,502  |   |   |   | 924 |   |   |   | 1,578 |   |   |   | 170.8 | % |
|                                              |   |                                            | 3,102  |   |   |   | 1,521 |   |   |   | 1,581 |   |   |   | 103.9 | % |
| Stock-based compensation                          |   |                                            | 33     |   |   |   | 2 |   |   |   | 31 |   |   |   | 1550.0 | % |
| Total research and development                    |   | $                                               | 3,135  |   |   | $ | 1,523 |   |   | $ | 1,612 |   |   |   | 105.8 | % |

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|   | · | Payroll increased primarily due to a bonus grant to the VP-Research and Development. |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | The cost associated with the research contract with the University of Waterloo decreased primarily due to a reduction in amount being funded for agricultural research, effective March 1, 2011. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other research and development costs increased primarily due to an increase in the costs incurred in connection with our development of SNS01-T for multiple myeloma.  Specifically, during the nine months ended March 31, 2011, we incurred costs related to the performance of our pivotal toxicology studies the preparation and submission of an IND and the preparation for a clinical trial. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Stock-based compensation consists primarily of the amortized portion of Black-Scholes value of options and warrants granted to research and development consultants and employees.   Stock-based compensation for the nine months ended March 31, 2011 was higher than for the nine months ended March 31, 2010, primarily due to an increase in the number of options granted during the nine months ended March 31, 2011 as compared to the number of options granted during the nine months ended March 31, 2010.  Additionally, for the nine months ended March 31, 2011, stock-based compensation consisted of the amount of awards under our long-term incentive plan and for the nine months ended March 31, 2010, stock-based compensation also consisted of the amount of awards under our short-term incentive plan. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | Nine Months Ended March 31,     |   |
|--------------------------------|--------|---------------------------------|--------|
|                           |   | 2011                            |   |   | % |   |   | 2010 |   |   | % |   |
|                           |   | (in thousands, except % values) |   |
| Agricultural                   |   | $                               | 403    |   |   |   | 13 | % |   | $ | 404 |   |   |   | 27 | % |
| Human health                   |   |                            | 2,732  |   |   |   | 87 | % |   |   | 1,119 |   |   |   | 73 | % |
| Total research and development |   | $                               | 3,135  |   |   |   | 100 | % |   | $ | 1,523 |   |   |   | 100 | % |

|   | · | Agricultural research expenses did not materially change during the nine months ended March 31, 2011 from the nine months ended March 31, 2010, as we have not materially changed the scope of our agricultural research. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Human health research expenses increased during the nine months ended March 31, 2011, primarily as a result of the timing of certain aspects of the development of our potential drug candidate, SNS01-T, for treating multiple myeloma.  Specifically, during the nine months ended March 31, 2011, we incurred costs related to the performance of our pivotal toxicology studies, the preparation and filing of an IND and the preparation for a clinical trial. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Item 3. | Quantitative and Qualitative Disclosures about Market Risk. |
|---------|-------------------------------------------------------------|

| Item 4. | Controls and Procedures. |
|---------|--------------------------|

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| Item 1. | Legal Proceedings. |
|---------|--------------------|

| Item 1A. | Risk Factors. |
|----------|---------------|

|   | · | delay, scale-back or eliminate some or all of our research and product development programs; |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | provide licenses to third parties to develop and commercialize products or technologies that we would otherwise seek to develop and commercialize ourselves; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | seek strategic alliances or business combinations; |
|--------|--------|----------------------------------------------------|

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|   | · | attempt to sell our company; |
|--------|--------|------------------------------|

|   | · | cease operations; or |
|--------|--------|----------------------|

|   | · | declare bankruptcy. |
|--------|--------|---------------------|

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|   | · | delay, scale back or eliminate some or all of our research and development programs; |
|--------|--------|--------------------------------------------------------------------------------------|

|   | · | provide a license to third parties to develop and commercialize our technology that we would otherwise seek to develop and commercialize ourselves; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | seek strategic alliances or business combinations; |
|--------|--------|----------------------------------------------------|

|   | · | attempt to sell our company; |
|--------|--------|------------------------------|

|   | · | cease operations; or |
|--------|--------|----------------------|

|   | · | declare bankruptcy. |
|--------|--------|---------------------|

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|   | · | the scope of our research and development; |
|--------|--------|--------------------------------------------|

|   | · | our ability to attract business partners willing to share in our development costs; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | our ability to successfully commercialize our technology; |
|--------|--------|-----------------------------------------------------------|

|   | · | competing technological and market developments; |
|--------|--------|--------------------------------------------------|

|   | · | our ability to enter into collaborative arrangements for the development, regulatory approval and commercialization of other products; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the cost of filing, prosecuting, defending and enforcing patent claims and other intellectual property rights. |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | our ability to obtain patent protection for our technologies and processes; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | our ability to preserve our trade secrets; and |
|--------|--------|------------------------------------------------|

|   | · | our ability to operate without infringing the proprietary rights of other parties both in the United States and in foreign countries. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | our patent applications will result in the issuance of patents; |
|--------|--------|-----------------------------------------------------------------|

|   | · | any patents issued or licensed to us will be free from challenge and if challenged, would be held to be valid; |
|--------|--------|----------------------------------------------------------------------------------------------------------------|

|   | · | any patents issued or licensed to us will provide commercially significant protection for our technology, products and processes; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | · | other companies will not independently develop substantially equivalent proprietary information which is not covered by our patent rights; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | other companies will not obtain access to our know-how; |
|--------|--------|---------------------------------------------------------|

|   | · | other companies will not be granted patents that may prevent the commercialization of our technology; or |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | we will not incur licensing fees and the payment of significant other fees or royalties to third parties for the use of their intellectual property in order to enable us to conduct our business. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

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|   | · | the United States Department of Agriculture, or USDA, regulates the import, field testing and interstate movement of specific types of genetic engineering that may be used in the creation of transgenic plants; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the United States Environmental Protection Agency, or EPA, regulates activity related to the invention of plant pesticides and herbicides, which may include certain kinds of transgenic plants; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the FDA regulates foods derived from new plant varieties. |
|--------|--------|-----------------------------------------------------------|

----

----

|   | · | we may discover that the product candidate does not exhibit the expected therapeutic results in humans, may cause harmful side effects or have other unexpected characteristics that may delay or preclude regulatory approval or limit commercial use if approved; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the results from early clinical trials may not be statistically significant or predictive of results that will be obtained from expanded advanced clinical trials; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | institutional review boards or regulators, including the FDA, may hold, suspend or terminate our clinical research or the clinical trials of our product candidate for various reasons, including noncompliance with regulatory requirements or if, in their opinion, the participating subjects are being exposed to unacceptable health risks; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | subjects may drop out of our clinical trials; |
|--------|--------|-----------------------------------------------|

|   | · | our preclinical studies or clinical trials may produce negative, inconsistent or inconclusive results, and we may decide, or regulators may require us, to conduct additional preclinical studies or clinical trials; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the cost of our clinical trials may be greater than we currently anticipate. |
|--------|--------|------------------------------------------------------------------------------|

|   | · | occurrence of unacceptable toxicities or side effects; |
|--------|--------|--------------------------------------------------------|

|   | · | ineffectiveness of the product candidate; |
|--------|--------|-------------------------------------------|

|   | · | negative or inconclusive results from the clinical trials, or results that necessitate additional studies or clinical trials; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

|   | · | delays in obtaining or maintaining required approvals from institutions, review boards or other reviewing entities at clinical sites; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | · | delays in patient enrollment; or |
|--------|--------|----------------------------------|

|   | · | insufficient funding or a reprioritization of financial or other resources. |
|--------|--------|-----------------------------------------------------------------------------|

----

|   | · | obtaining an effective IND or regulatory approval to commence a clinical trial; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | negotiating acceptable clinical trial agreement terms with prospective trial sites; |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | obtaining institutional review board approval to conduct a clinical trial at a prospective site; |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | recruiting qualified subjects to participate in clinical trials; |
|--------|--------|------------------------------------------------------------------|

|   | · | competition in recruiting clinical investigators; |
|--------|--------|---------------------------------------------------|

|   | · | shortage or lack of availability of supplies of drugs for clinical trials; |
|--------|--------|----------------------------------------------------------------------------|

|   | · | the need to repeat clinical trials as a result of inconclusive results or poorly executed testing; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | the placement of a clinical hold on a study; |
|--------|--------|----------------------------------------------|

|   | · | the failure of third parties conducting and overseeing the operations of our clinical trials to perform their contractual or regulatory obligations in a timely fashion; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | exposure of clinical trial subjects to unexpected and unacceptable health risks or noncompliance with regulatory requirements, which may result in suspension of the trial. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

----

----

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|   | · | quarterly variations in operating results; |
|--------|--------|--------------------------------------------|

|   | · | the progress or perceived progress of our research and development efforts; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | changes in accounting treatments or principles; |
|--------|--------|-------------------------------------------------|

|   | · | announcements by us or our competitors of new technology, product and service offerings, significant contracts, acquisitions or strategic relationships; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | additions or departures of key personnel; |
|--------|--------|-------------------------------------------|

|   | · | future offerings or resales of our common stock or other securities; |
|--------|--------|----------------------------------------------------------------------|

|   | · | stock market price and volume fluctuations of publicly-traded companies in general and development companies in particular; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | · | general political, economic and market conditions. |
|--------|--------|----------------------------------------------------|

----

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
|---------|--------------------------------------------------------------|

| Item 3. | Defaults Upon Senior Securities. |
|---------|----------------------------------|

| Item 4. | [REMOVED AND RESERVED] |
|---------|------------------------|

| Item 5. | Other Information. |
|---------|--------------------|

| Item 6. | Exhibits. |
|---------|-----------|

| Exhibit No. |   | Description                                                                                                                                                 |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.1        |   | Master Services Agreement by and among Cato Research Ltd. and Senesco Technologies, Inc., dated October 12, 2007. (filed herewith)                          |
| 10.2        |   | Promissory Note by and among J.P. Morgan Clearing Corp. and Senesco Technologies, Inc., dated April 8, 2011. (filed herewith)                               |
| 31.1        |   | Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (filed herewith)                                    |
| 31.2        |   | Certification of principal financial and accounting officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (filed herewith)                     |
| 32.1        |   | Certification of principal executive officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350. (furnished herewith)                |
| 32.2        |   | Certification of principal financial and accounting officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350. (furnished herewith) |

----

|                          | SENESCO TECHNOLOGIES, INC. |
|-------------------------------|----------------------------|
|                          |                       |
| DATE:  May 13, 2011 | By:                        |   /s/ Leslie J. Browne |
|                          |                       | Leslie J. Browne, Ph.D., President |
|                          |                       | and Chief Executive Officer(Principal Executive Officer) |
|                          |                       |
| DATE:  May 13, 2011 | By:                        |   /s/ Joel Brooks |
|                          |                       | Joel Brooks, Chief Financial Officer, |
|                          |                       | Secretary and Treasurer(Principal Financial and Accounting Officer) |

----