================================================================================

                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                                   (Mark One)
 |X| Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
                                  Act of 1934

                  For the quarterly period ended April 30, 2006

      Transition Report Pursuant to 13 or 15(d) of the Securities Exchange
                                  Act of 1934

             For the transition period from __________ to __________

                         Commission file number: 0-32801

                                  TISSERA, INC.
        (Exact Name of Small Business Issuer as Specified in Its Charter)

                                BERT Logic, Inc.
                           (Former Name of Registrant)

          Washington                                   91-2034750
(State or other jurisdiction of                     (I.R.S. Employer
incorporation of organization)                     Identification No.)

      Maskit 8, 4rd floor, Herzlia                    46733  Israel
(Address of principal executive offices)               (Zip Code)

      Issuer's telephone number: +972-36344107


      (Former Name, Former Address and Former Fiscal Year, If Changed Since
                                  Last Report)

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes |X| No |_|

As of June 2,  2006,  the  registrant  had  27,770,652  shares of  common  stock
outstanding.

Transitional Small Business Disclosure Format (Check one): Yes |_| No |X|

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act) Yes |_| No |X|

================================================================================

<PAGE>

Tissera, Inc.

INDEX

PART I.  FINANCIAL INFORMATION                                       PAGE NUMBER
------------------------------                                       -----------

Item 1.  Financial statements
            (unaudited)

         Consolidated Balance Sheets                                        3

         Consolidated Statements of Operations                              4

         Consolidated Statements of Changes in Stockholders'
            Equity (Deficiency)                                             5

         Consolidated Statements of Cash Flows                              6

         Notes to Financial Statements                                   7-14

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations                               15

Item 3.  Controls and Procedures                                           19

PART II. OTHER INFORMATION                                                 20
---------------------------

Item 1.  Legal Proceedings                                                 20

Item 2.  Change in Securities                                              21

Item 3.  Defaults Upon Senior Securities                                   21

Item 4.  Submission of Matters to Vote of Security Holders                 21

Item 5.  Other Information                                                 21

Item 6.  Exhibits                                                          21

SIGNATURES                                                                 22


                                       2
<PAGE>

PART I. FINANCIAL INFORMATION

Item 1. Financial statements (unaudited)

                                        TISSERA INC. (Formerly: BERT LOGIC INC.)
                                                   (A development stage company)

CONSOLIDATED BALANCE SHEETS
--------------------------------------------------------------------------------
U.S. dollars in thousands (except share and per share data)

<TABLE>
<CAPTION>
                                                                                          April 30,     July 31,
                                                                                            2006          2005
                                                                                          ---------     ---------
                                                                                          Unaudited
                                                                                          ---------
<S>                                                                                       <C>           <C>
     ASSETS

CURRENT ASSETS:
   Cash and cash equivalents                                                              $   1,438     $   2,603
   Prepaid expenses and other current assets                                                     99           265
                                                                                          ---------     ---------

 Total current assets                                                                         1,537         2,868
                                                                                          ---------     ---------

 RESTRICTED CASH                                                                                  5            --
                                                                                          ---------     ---------

 SEVERANCE PAY FUND                                                                              27            29
                                                                                          ---------     ---------

 PROPERTY AND EQUIPMENT, NET                                                                     15            21
                                                                                          ---------     ---------

 Total assets                                                                             $   1,584     $   2,918
                                                                                          =========     =========

     LIABILITIES AND STOCKHOLDERS' EQUITY

 CURRENT LIABILITIES:
   Trade payables                                                                         $      10     $       5
   Other accounts payable and accrued expenses                                                  701           660
                                                                                          ---------     ---------

 Total current liabilities                                                                      711           665
                                                                                          ---------     ---------

 ACCRUED SEVERANCE PAY                                                                           38            39
                                                                                          ---------     ---------

 Total liabilities                                                                              749           704
                                                                                          ---------     ---------

 COMMITMENTS AND CONTINGENCIES (Note 4)

 STOCKHOLDERS' EQUITY:
   Stock capital (Note 5) -
     Common stock of $ 0.0001 par value each -
       Authorized: 100,000,000 shares as of April 30, 2006 and July 31, 2005; Issued
          and outstanding: 27,770,652 and 27,582,114 as of April 30, 2006 and July 31,
          2005, respectively                                                                      3             3
     Preferred stock of $ 0.0001 par value each -
       Authorized: 20,000,000 shares as of April 30, 2006 and July 31, 2005; Issued
          and outstanding: 0 shares as of April 30, 2006 and July 31, 2005                       --            --
   Additional paid-in capital                                                                28,834        28,859
   Deferred stock based compensation                                                            (11)          (31)
   Deficit accumulated during the development stage                                         (27,991)      (26,617)
                                                                                          ---------     ---------

 Total stockholders' equity                                                                     835         2,214
                                                                                          ---------     ---------

 Total liabilities and stockholders' equity                                               $   1,584     $   2,918
                                                                                          =========     =========
</TABLE>

The accompanying notes are an integral part of the consolidated financial
statements.


                                       3
<PAGE>

                                        TISSERA INC. (Formerly: BERT LOGIC INC.)
                                                   (A development stage company)

CONSOLIDATED STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
U.S. dollars in thousands (except share and per share data)

<TABLE>
<CAPTION>
                                                                                                                From
                                                                                                            May 31, 2000
                                                                                                             (inception
                                                      Nine months ended            Three months ended           date)
                                                          April 30,                     April 30,              through
                                                 --------------------------    --------------------------     April 30,
                                                    2006           2005           2006           2005           2006
                                                 -----------    -----------    -----------    -----------    -----------
                                                                         Unaudited                            Unaudited
                                                 --------------------------------------------------------    -----------
<S>                                              <C>            <C>            <C>            <C>            <C>
Operating expenses:
Research and development (including
     expenses (income) related to options and
     warrants granted to Yeda (see Note 2)
     and to service providers in the amount
     of $ (25) and $ 14 for the nine months
     ended April 30, 2006 and 2005,
     respectively and $ 0 and $ 5 for the
     three months ended April 30, 2006 and
     2005, respectively)                         $       824    $       946    $       235    $       284    $    15,159

General and administrative (including
     expenses related to options, warrants
     and shares granted to service providers
     and compensation to investor (see Note
     5) in the amount of $ 20 , $ 2,043 for
     the nine months ended April 30, 2006 and
     2005, respectively and $ 2 and $ 1,943
     for the three months ended April 30,
     2006 and 2005, respectively)                        589          2,774            246          2,149         12,811
                                                 -----------    -----------    -----------    -----------    -----------

                                                       1,413          3,720            481          2,433         27,970
Financial income, net                                     50             48              5             20            120
                                                 -----------    -----------    -----------    -----------    -----------

Loss from continuing operations for the
   period                                              1,363          3,672            476          2,413         27,850
Income taxes                                              11             17              4              5             49
                                                 -----------    -----------    -----------    -----------    -----------
Net loss from continuing operations for the            1,374          3,689            480          2,418         27,899
   period
Loss from discontinued operations                         --             --             --             --             92
                                                 -----------    -----------    -----------    -----------    -----------

Net loss                                         $     1,374    $     3,689    $       480    $     2,418    $    27,991
                                                 ===========    ===========    ===========    ===========    ===========

Basic and diluted net loss per share from
   continuing operations                         $      0.05    $      0.13    $      0.02    $      0.08
                                                 ===========    ===========    ===========    ===========

Weighted average number of shares used in
   computing basic and diluted net loss per
   share                                          27,616,527     27,579,252     27,687,673     27,577,868
                                                 ===========    ===========    ===========    ===========
</TABLE>

The accompanying notes are an integral part of the consolidated financial
statements.


                                       4
<PAGE>

                                        TISSERA INC. (Formerly: BERT LOGIC INC.)
                                                   (A development stage company)

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIENCY)
--------------------------------------------------------------------------------
U.S. dollars in thousands (except share data)

<TABLE>
<CAPTION>
                                                                                                        Deficit
                                                                                                       accumulated      Total
                                                  Stock capital          Additional      Deferred      during the    stockholders'
                                             ------------------------      paid-in     stock based     development      equity
                                               Number        Amount        capital     compensation      stage       (deficiency)
                                             ----------    ----------    ----------    ------------    -----------   ------------
<S>                                          <C>           <C>           <C>            <C>            <C>            <C>
 Balance as of May 31, 2000                          --    $       --    $       --     $       --     $       --     $       --
 Stock issued for cash on May 31, 2000       15,036,000             2             8             --             --             10
 Net loss                                            --            --            --             --             (5)            (5)
                                             ----------    ----------    ----------     ----------     ----------     ----------

 Balance as of July 31, 2000                 15,036,000             2             8             --             (5)             5
 Stock issued for cash on July 17, 2001       3,000,000         *) --            40             --             --             40
 Contribution of capital                             --            --            15             --             --             15
 Net loss                                            --            --            --             --            (30)           (30)
                                             ----------    ----------    ----------     ----------     ----------     ----------

 Balance as of July 31, 2001                 18,036,000             2            63             --            (35)            30
 Contribution of capital                             --            --            15             --             --             15
 Net loss                                            --            --            --             --            (39)           (39)
                                             ----------    ----------    ----------     ----------     ----------     ----------

 Balance as of July 31, 2002                 18,036,000             2            78             --            (74)             6
 Contribution of capital                             --            --            15             --             --             15
 Net loss                                            --            --            --             --            (31)           (31)
                                             ----------    ----------    ----------     ----------     ----------     ----------

 Balance as of July 31, 2003                 18,036,000             2            93             --           (105)           (10)
 Stock issued for cash related to PPM1,
   net of $ 176 of cash issuance expenses     1,767,200         *) --         2,033             --             --          2,033
 Stock issued for cash related to PPM2,
   net of $ 517 of cash issuance expenses     3,142,858             1         4,983             --             --          4,984
 Stock based compensation related to
   warrants granted to service providers             --            --        11,429             --             --         11,429
 Stock based compensation related to
   options granted to employees and
   directors                                         --            --         1,130             --             --          1,130
 Compensation related to stock granted to
   service providers and to employees         3,067,090         *) --         7,366             --             --          7,366
 Deferred stock based compensation                   --            --           163           (163)            --             --
 Exercise of options                          1,543,766         *) --            --             --             --          *) --
 Net loss                                            --            --            --             --        (22,529)       (22,529)
                                             ----------    ----------    ----------     ----------     ----------     ----------

 Balance as of July 31, 2004                 27,556,914             3        27,197           (163)       (22,634)         4,403
 Stock based compensation related to
   warrants granted to investors                     --            --         1,980             --             --          1,980
 Warrants granted to Yeda and to service
   providers                                         --            --          (362)            --             --           (362)
 Amortization of stock based compensation
   related to options granted to
   employees and directors                           --            --            --            176             --            176
 Deferred stock based compensation                   --            --            44            (44)            --             --
 Exercise of options                             25,200         *) --            --             --             --             --
 Net loss                                            --            --            --             --         (3,983)        (3,983)
                                             ----------    ----------    ----------     ----------     ----------     ----------

 Balance as of July 31, 2005                 27,582,114             3        28,859            (31)       (26,617)         2,214
 Exercise of options                            188,538         *) --         *) --             --             --          *) --
 Warrants granted to service providers               --            --           (25)            --             --            (25)
 Amortization of stock based compensation
   related to options granted to
   employees and directors                           --            --            --             20             --             20
 Net loss                                            --            --            --             --         (1,374)        (1,374)
                                             ----------    ----------    ----------     ----------     ----------     ----------

 Balance as of April 30, 2006 (unaudited)    27,770,652    $        3    $   28,834     $      (11)    $  (27,991)    $      835
                                             ==========    ==========    ==========     ==========     ==========     ==========
</TABLE>

*) Represents an amount lower than $ 1.

The accompanying notes are an integral part of the consolidated financial
statements.


                                       5
<PAGE>

                                        TISSERA INC. (Formerly: BERT LOGIC INC.)
                                                   (A development stage company)

CONSOLIDATED STATEMENTS OF CASH FLOWS
--------------------------------------------------------------------------------
U.S. dollars in thousands

<TABLE>
<CAPTION>
                                                                                                 From May 31,
                                                                                                    2000
                                                                                                  (inception
                                                             Nine months ended                      date)
                                                                 April 30,          Year ended     through
                                                           ---------------------     July 31,     April 30,
                                                             2006         2005         2005         2006
                                                           --------     --------    ----------    ---------
                                                                 Unaudited                        Unaudited
                                                           ---------------------                  ---------
<S>                                                        <C>          <C>          <C>          <C>
 Cash flows from operating activities:
   Net loss                                                $ (1,374)    $ (3,689)    $ (3,983)    $(27,991)
   Adjustments required to reconcile net loss to net
      cash used in operating activities:
     Depreciation                                                 6           11           14           23
     Expenses (income) related to warrants granted to
       Yeda and to service providers                            (25)          14         (362)      11,042
     Expenses related to options granted to employees
       and directors                                             20           63          176        1,326
     Expenses related to shares and warrants granted to
       service providers and compensation to investors           --        1,980        1,980        9,346
     Decrease (increase) in prepaid expenses and other
       current assets                                           166          (66)         (28)         (99)
     Increase (decrease) in trade payables                        5          (15)         (16)          10
     Increase in accounts payable and accrued expenses           41            6          157          701
     Increase in accrued severance pay, net                       1            1            6           11
                                                           --------     --------     --------     --------

 Net cash used in continuing operating activities            (1,160)      (1,695)      (2,056)      (5,631)
 Net cash provided by discontinued operating activities          --           --           --           75
                                                           --------     --------     --------     --------

 Total net cash used in operating activities                 (1,160)      (1,695)      (2,056)      (5,556)
                                                           --------     --------     --------     --------

 Cash flows from investing activities:
   Sales of property and equipment                               --            9            9            9
   Restricted cash                                               --           (6)          (6)         (47)
                                                           --------     --------     --------     --------

 Net cash provided by (used in) continuing investing
   activities                                                    --            3            3          (38)
 Net cash used in discontinued investing activities              --           --           --          (15)
                                                           --------     --------     --------     --------

 Total net cash provided by (used in) investing
   activities                                                    --            3            3          (53)
                                                           --------     --------     --------     --------

 Cash flows from financing activities:
   Issuance of shares and warrants, net                       *) --           --        *) --        7,017
   Receipts on account of shares                                 (5)          --           --           (5)
                                                           --------     --------     --------     --------

 Net cash provided by (used in) continuing financing
   activities                                                    (5)          --           --        7,012
 Net cash provided by discontinued financing activities          --           --           --           35
                                                           --------     --------     --------     --------
 Total net cash provided by (used in) financing
   activities                                                    (5)          --           --        7,047
                                                           --------     --------     --------     --------

 Increase (decrease) in cash and cash equivalents            (1,165)      (1,692)      (2,053)       1,438
 Cash and cash equivalents at beginning of period             2,603        4,656        4,656           --
                                                           --------     --------     --------     --------

 Cash and cash equivalents at end of period                $  1,438     $  2,964     $  2,603     $  1,438
                                                           ========     ========     ========     ========

 Non-cash financing activity:
   Licenses purchased against notes payable                $     --     $     --     $     --     $     28
                                                           ========     ========     ========     ========
</TABLE>

*) Represents an amount lower than $ 1.

The accompanying notes are an integral part of the consolidated financial
statements.


                                       6
<PAGE>

                                        TISSERA INC. (Formerly: BERT LOGIC INC.)
                                                   (A development stage company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. dollars in thousands, except share and per share data

NOTE 1:- GENERAL

      a.    Tissera Inc. ("the Company") was incorporated  under the laws of the
            State  of  Washington  on  May  31,  2000.  The  Company  is in  the
            development  stage. The Company is engaged in developing and testing
            organ  transplantation  therapies  based  on an  approach  employing
            organ-specific precursor tissues.

      b.    The accompanying unaudited interim consolidated financial statements
            have been prepared as of April 30, 2006 and for the nine months then
            ended, in accordance with accounting  principles  generally accepted
            in the  United  States  relating  to the  preparation  of  financial
            statements for interim periods. Accordingly, they do not include all
            the  information  and  footnotes   required  by  generally  accepted
            accounting  principles  for complete  financial  statements.  In the
            opinion  of  management,   all  adjustments  (consisting  of  normal
            recurring  accruals)  considered  necessary for a fair  presentation
            have been  included.  Operating  results for the nine months and for
            the three months ended April 30, 2006 are not necessarily indicative
            of the  results  that may be  expected  for the year ending July 31,
            2006.

            On October 8, 2003, the Company  entered into a research and license
            agreement  with  Yeda  Research  and  Development   Company  Limited
            ("Yeda"),  according  to which  Yeda  provided  the  Company  with a
            worldwide exclusive license to develop,  manufacture and sell Yeda's
            tissue  transplant  technologies.  Yeda is  entitled  to cancel  the
            agreement under certain conditions  determined in the agreement (see
            Note 2). The Company  currently  bases its entire  operations on the
            license provided from Yeda. Should Yeda terminate the agreement with
            the  Company,  the Company  will not be able to continue its current
            research operations.

      c.    Going concern considerations:

      The  Company's  accumulated  deficit  and net loss as of April  30,  2006,
      amounted to approximately $ 27,991 and $ 1,374, respectively.  The Company
      is  currently  negotiating  fund  raising  with  potential  investors.  In
      addition,  the Company has finalized its current  research and development
      agreement  with Yeda (see Note 2) so as to reduce its current R&D expenses
      arising on its execution.  The Company's ability to continue to operate as
      a going  concern is dependent on its ability to generate  sufficient  cash
      flows to meet its  obligations  on a timely  basis,  to obtain  additional
      financing and to ultimately  attain  profitability.  The Company is in the
      development stage and, as such, has incurred  recurring  operating losses,
      has  generated an  accumulated  deficit and has a negative  cash flow from
      operating  activities.  The process of developing commercial products will
      require significant additional  expenditures for research and development,
      maintaining the key technology license,  pre-clinical testing and clinical
      trials,  as well  as  obtaining  regulatory  approval.  These  activities,
      together with general and administrative  expenses, are expected to result
      in substantial operating losses in the foreseeable future.

      In the event the  Company  is unable to  successfully  raise  capital  and
      generate  revenues,  it is unlikely that the Company will have  sufficient
      cash flows and  liquidity to finance its business  operations as currently
      contemplated  and,  thus,  will  have to  cease or  delay  development  of
      projects until it is able to obtain sufficient financing.  There can be no
      assurance that additional  funds will be available on terms  acceptable to
      the Company, or at all.


                                       7
<PAGE>

                                        TISSERA INC. (Formerly: BERT LOGIC INC.)
                                                   (A development stage company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. dollars in thousands, except share and per share data

NOTE 1:- GENERAL (Cont.)

            These conditions raise substantial doubt about the Company's ability
            to continue to operate as a going concern.  The financial statements
            do not include any adjustments to reflect the possible future effect
            on the  recoverability  and  classification of assets or the amounts
            and  classification  of liabilities that may result from the outcome
            of this uncertainly.

      d.    Risk factors:

            The Company  depends on Yeda to conduct its research and development
            activities.  As discussed in Note 2, the research services are to be
            provided  until April  2007.  Thereafter,  the Company  will have to
            negotiate for new research services to be received whether from Yeda
            or from  other  service  providers.  If Yeda  fails to  provide  the
            research  services or is unwilling  to continue to provide  research
            services  after  April  2007 at  terms  that are  acceptable  to the
            Company,  the Company may be required to seek alternative sources of
            research  services.  A change in service  provider  could  result in
            delays in the  research  activities,  increase in expenses and could
            adversely affect the Company's results of operations and cash flows.
            In addition, as discussed in Note 2, Yeda may terminate the research
            and license agreement under certain conditions.

NOTE 2:- RESEARCH AND LICENSE AGREEMENT

            On October 8, 2003, the Company  entered into a research and license
            agreement  ("the  agreement")  with Yeda. The Company  conducted the
            research for a period of three years,  at the Weizmann  Institute of
            Science (the  commercialization  company of Yeda). On April 11, 2006
            the  Company  has  signed an  agreement  with  Yeda,  extending  the
            research  period by  addiyional  one year,  until  April  2007.  The
            research  relates  to  an  invention  comprising  methods  of  organ
            transplantation  employing  nephric  tissues.  The license  that was
            granted  to the  Company  shall  expire  at  the  later  of (i)  the
            expiration  of the patents in the country of sale,  or (ii) 15 years
            from the date of  receipt  of FDA new drug  approval  (in the United
            States),  or the  equivalent  in any  other  country  in  which  the
            products are sold. In addition,  Yeda may terminate the agreement if
            the  Company  will fail to  achieve  certain  commercialization  and
            development  achievements,  as defined in the agreement.  Currently,
            the Company complies with all of the terms of the agreement.

            The Company  committed to grant Yeda, within 120 days of the date on
            which the  agreement  is signed,  (i) a warrant,  exercisable  at an
            aggregate  exercise  price of $ 0.9 to  purchase  up to 2.23% of the
            issued  and  outstanding  Common  stock of the  Company  immediately
            following  the  exercise  of  such  warrant,  and  (ii)  a  warrant,
            exercisable  at an aggregate  exercise price of $ 1.1 to purchase up
            to  2.67%  of the  issued  and  outstanding  shares  of the  Company
            immediately  following the exercise of such  warrant,  provided that
            the maximum  number of shares of Common stock that Yeda may exercise
            under the warrants  shall be 3,010,699 and  3,612,839,  respectively
            (the  number  of  shares  of  Common  stock  shall be  appropriately
            adjusted  in the event of stock  splits,  stock  dividends,  capital
            reorganizations,  reclassifications,  recapitalizations and the like
            as well as issuances or sales by the Company of shares for par value
            only,  for a  consideration  of  less  than  par  value  and  for no
            consideration,  all in accordance  with the terms and  conditions of
            said warrant).  Each such warrant shall be exercisable  for a period
            beginning  one year after the date on which the agreement is signed,
            and ending at the later of (a) one year following the termination of
            the agreement and (b) October 7, 2013. As of the balance sheet date,
            1,430,875 of the Company's shares of Common stock are underlying the
            warrants. The warrants shall be exercisable on a cashless basis.


                                       8
<PAGE>

                                        TISSERA INC. (Formerly: BERT LOGIC INC.)
                                                   (A development stage company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. dollars in thousands, except share and per share data

NOTE 2:- RESEARCH AND LICENSE AGREEMENT (Cont.)

            Until February 2005, the terms of certain  warrants had not yet been
            agreed upon by the parties,  as required by the original  agreement.
            On February  24,  2005,  the  Company and Yeda came to an  agreement
            regarding  the terms of the  warrants,  which  were  issued in March
            2005.

            In addition,  a development program that the Company was required to
            submit  to Yeda was not  delivered  on time.  The  Company  received
            Yeda's  consent for the deferral of the program's  submission  until
            September 2005, at which date the development program was submitted.
            To date all required reports have been submitted to Yeda.

            Since the license is used for  research and  development  activities
            and no  alternative  use  exists  for the  license,  the cost of the
            license was recorded as research and development  (income)  expenses
            in the amount of $ (156) and $ 0 for the nine months ended April 30,
            2005 and April 30,  2006,  respectively  and $ (109) and $ 0 for the
            three months ended April 30, 2005 and April 30, 2006,  respectively.
            The fair value of the warrants was determined based on the number of
            shares  underlying  the warrants as of the balance  sheet date.  The
            number of shares  underlying  the  warrants as of the balance  sheet
            date was  determined  based on the  actual  issued  and  outstanding
            shares of the Company and any  options to acquire  Company's  shares
            for a nominal  consideration,  totaling  1,558,896  shares of Common
            stock.  Since Yeda is  entitled to a fix  percentage  of warrants as
            described  above,  exercising  warrants during the period,  entitles
            Yeda to an  additional  9,715  warrants.  Each such warrant shall be
            immediately exercisable at fair value till the later of (a) one year
            following the termination of the agreement and (b) October 7, 2013.

            Prior to the  actual  issuance  of the  warrants,  the  value of the
            warrants for  recording  the research and  development  expenses was
            re-measured at each  reporting  period based on the number of shares
            underlying the warrants as of each reporting  period with the entire
            change  in the  fair  value of the  underlying  shares  reported  in
            research and development expenses.

            After the issuance of the warrants,  since the warrants  entitle the
            investors to a final  percentage  of the  Company's  shares (up to a
            certain maximum number of shares), with each change in the number of
            the Company's issued and outstanding shares or the number of options
            with a nominal  exercise  price,  the fair  value of the  additional
            shares  underlying  the  warrants  will be recorded as research  and
            development  expenses.  Once the  number  of shares  underlying  the
            warrants will reach the maximum  number of shares that can be issued
            under  the   warrants,   the  warrants  will  cease  to  be  further
            re-measured.

            According to the agreement, the Company paid Yeda with regard to the
            first year of the  research  period  commencing  April 9,  2003,  an
            amount of $ 900.

            In July 2004,  the Company  signed a first addendum to the agreement
            with Yeda and committed to pay Yeda an amount of $ 900 in respect of
            the second year of the research period.

            In  September  2005,  the  Company  signed a second  addendum to the
            agreement  with Yeda and committed to pay Yeda an amount of $ 900 in
            respect of the third year of the research period.


                                       9
<PAGE>

                                        TISSERA INC. (Formerly: BERT LOGIC INC.)
                                                   (A development stage company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. dollars in thousands, except share and per share data

NOTE 2:- RESEARCH AND LICENSE AGREEMENT (Cont.)

            In April 2006,  the Company signed a third addendum to the agreement
            with Yeda and committed to pay Yeda an amount of $ 600 to be paid in
            four equal installments  payable in advance in respect of the fourth
            year of the research period ending April 9, 2007.

            According to the agreement,  if within the fourth research year, the
            Company  raises at least $ 1,000 due to an  investment  or merger as
            defined in the  agreement,  or granted an amount of $ 300 designated
            to finance  the  research  and  development  than the  budget  shall
            increase to $ 900.

            The Company  undertook to make its best efforts to commercialize the
            licensed products. The Company also agreed to pay Yeda a license fee
            of (i) $ 50 per year, to be paid commencing the first year after the
            completion of the research and  development  period;  (ii) 4% of net
            sales of all products  using the licensed  technology;  (iii) 33% of
            all sublicense fees for all agreements  entered into within one year
            following the agreement  date, and (iv) 16% of all  sublicense  fees
            for all agreements entered into after such one-year period.

NOTE 3:- SIGNIFICANT ACCOUNTING POLICIES

      a.    The  significant  accounting  policies  applied in the  consolidated
            financial statements as of April 30, 2006, are consistent with those
            applied  in the  consolidated  financial  statements  as of July 31,
            2005.

            These financial  statements  should be read in conjunction  with the
            audited  annual  financial  statements of the Company as of July 31,
            2005 and their accompanying notes.

      b.    Accounting for share-based compensation:

            The  Company  has  elected  to follow  Accounting  Principles  Board
            Statement No. 25, "Accounting for Stock Options Issued to Employees"
            ("APB No. 25"),  and FASB  Interpretation  No. 44,  "Accounting  for
            Certain Transactions Involving Stock Compensation" ("FIN No. 44") in
            accounting for its employee  stock  options.  Under APB No. 25, when
            the exercise  price of the Company's  stock options is less than the
            market  price  of  the  underlying  stock  on  the  date  of  grant,
            compensation expense is recognized over the option's vesting period.

            Pro  forma  information  regarding  net loss  and loss per  share is
            required by SFAS No. 123, and has been  determined as if the Company
            had  accounted  for its employee  stock options under the fair value
            method  prescribed by SFAS No. 123. The fair value for these options
            was  estimated  at the date of grant using a  Black-Scholes  options
            pricing model, with the following  weighted average  assumptions for
            the nine  months  ended April 30,  2006 and 2005:  weighted  average
            volatility  of 208%,  risk-free  interest  rates of 3.94%,  dividend
            yields of 0% and a weighted-average  expected life of the options of
            7.03 years, respectively.


                                       10
<PAGE>

                                        TISSERA INC. (Formerly: BERT LOGIC INC.)
                                                   (A development stage company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. dollars in thousands, except share and per share data

NOTE 3:- SIGNIFICANT ACCOUNTING POLICIES (Cont.)

            For purposes of pro forma  disclosures,  the estimated fair value of
            the options is amortized  over their vesting  period.  The Company's
            pro forma information under SFAS No. 123 is as follows:

<TABLE>
<CAPTION>
                                                                   Nine months ended
                                                                       April 30,
                                                                  -------------------
                                                                   2006        2005
                                                                  -------     -------
                                                                       Unaudited
                                                                  -------------------
<S>                                                               <C>         <C>
            Net loss as reported                                  $ 1,374     $ 3,689

            Deduct: stock-based employee compensation
              expense included in reported net loss in
              accordance with APB No. 25                              (20)       (170)
            Add: stock-based employee compensation
              expense determined under fair value method              770         719
                                                                  -------     -------

            Pro forma net loss                                    $ 2,124     $ 4,238
                                                                  =======     =======

            Net loss per share (basic and diluted) as reported    $ (0.05)    $ (0.15)
                                                                  =======     =======

            Pro forma net loss per share (basic and diluted)      $ (0.08)    $ (0.13)
                                                                  =======     =======
</TABLE>

      c.    Impact of recently issued Accounting Standards:

            On December 16,  2004,  the  Financial  Accounting  Standards  Board
            issued FASB Statement No. 123 (revised 2004),  "Share-Based Payment"
            ("Statement 123(R)"), which is a revision of FASB Statement No. 123,
            "Accounting  for   Stock-Based   Compensation".   Statement   123(R)
            supersedes APB 25, and amends FASB  Statement No. 95,  "Statement of
            Cash Flows".  Generally, the approach in Statement 123(R) is similar
            to the  approach  described  in Statement  123.  However,  Statement
            123(R)  requires all  share-based  payments to employees,  including
            grants of employee  stock  options,  to be  recognized in the income
            statement  based on their fair values.  Pro forma  disclosure  is no
            longer an  alternative.  The new Standard  will be effective for the
            Company in the first interim period beginning after August 1, 2006.

            As permitted by Statement  123, the Company  currently  accounts for
            share-based  payments to employees  using APB 25's  intrinsic  value
            method.  Accordingly,  the adoption of Statement 123(R)'s fair value
            method will have a significant  impact on the  Company's  results of
            operations,  although it will have no impact on the Company  overall
            financial  position.  The impact of the adoption of Statement 123(R)
            cannot be predicted at this time because it will depend on levels of
            share-based payments granted in the future. However, had the Company
            adopted  Statement  123(R)  in prior  periods,  the  impact  of that
            Standard  would have  approximated  the impact of  Statement  123 as
            described in the disclosure of pro forma net loss and loss per share
            above in b.

            In March 2005,  the SEC issued  Staff  Accounting  Bulletin  No. 107
            ("SAB 107") to give guidance on  implementation of Statement 123(R).
            The Company will consider SAB 107 in implementing Statement 123(R).


                                       11
<PAGE>

                                        TISSERA INC. (Formerly: BERT LOGIC INC.)
                                                   (A development stage company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. dollars in thousands, except share and per share data

NOTE 4:- COMMITMENTS AND CONTINGENCIES

      a.    The Company's  subsidiary obtained a bank guarantee in the amount of
            $ 5 to  secure a rent  agreement.  The  Company  has  pledged $ 5 to
            secure the bank guarantee.

      b.    On  September 7, 2004,  the Board of Directors  decided to terminate
            the employment of the Chief  Executive  Officer of the Company ("the
            Former CEO").  According to the Former CEO's  employment  agreement,
            the Former CEO is entitled to payments  totaling  approximately $ 78
            upon  termination  of employment  with the Company.  On December 21,
            2004, a claim  against the Company was  submitted to the Labor Court
            by the  Former  CEO for a payment  of  approximately  $ 121 (NIS 564
            thousand) in respect of payments  allegedly  due to her. The Company
            has filed a statement of defense against the Former CEO's claim. The
            Company's  management and its legal advisors are of the opinion that
            the Company has good defense arguments against the claim. As of July
            31,  2005,  a  provision  in the amount of $ 100,  in respect of net
            salary expenses was recorded under operating expenses,  with respect
            to the Former CEO.

      c.    1.    On June 5, 2005,  the Former CEO  submitted  to the  Company a
                  third party notice by which the Company was informed  that the
                  Former CEO was the  beneficiary  of  397,000  shares of Common
                  stock,  $ 0.0001  par value  issued to  service  providers  on
                  January 15, 2004 for services. The fair value of the shares in
                  the  amount  of  $  834  was   recorded   under   general  and
                  administrative expenses on the date of grant.

            2.    On November 4, 2004, the Board of Directors has questioned the
                  procedures  according  to which a bonus in the amount of $ 110
                  was  granted to the  Former  CEO in March 2004 and  decided to
                  cancel the bonus and to demand that the Former CEO returns the
                  bonus.   The  bonus   amount  was  recorded   under   accounts
                  receivable, and was fully provided for as a doubtful account.

            3.    On November 4, 2004, the Board of Directors  decided to demand
                  from the  Former  CEO to repay to the  Company  the  amount of
                  withholding  tax  exposure  totaling  $ 538 to be  paid by the
                  Company to the tax authorities,  in respect of the exercise of
                  options. Based on a preliminary discussion with the income tax
                  authorities  and   consultations,   the  Company   recorded  a
                  liability  to the tax  authorities  in the  amount of $ 269. A
                  corresponding  receivable  from the Former CEO  totaling $ 269
                  was recorded and fully  provided for as a doubtful  account as
                  of July 31, 2004.

                  The former CEO claims in a letter  dated  March 7, 2006,  that
                  the warrants were issued free of all taxes and that if the tax
                  authorities will demand any sums then  reimbursement  shall be
                  demanded from the Company.  The Company  rejects these demands
                  in its response  from March 23, 2006.  Furthermore,  since the
                  company  intends  to  continue  its  claim  and  collects  the
                  withholding  tax from the  Former  CEO,  management  is of the
                  opinion  that it dose not have a gross  up tax  exposure  with
                  regard the exercise of the options.


                                       12
<PAGE>

                                        TISSERA INC. (Formerly: BERT LOGIC INC.)
                                                   (A development stage company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. dollars in thousands, except share and per share data

NOTE 4:- COMMITMENTS AND CONTINGENCIES (Cont.)

            4.    During 2004, the Former CEO's  brother,  who was also employed
                  by the Company, was granted 280,000 shares of Common stock for
                  no cash  consideration.  In March 2004,  the Board  decided to
                  grant him an additional  280,000  warrants to purchase 280,000
                  shares of Common  stock,  the  vesting  of which is subject to
                  signing a definitive  employment  agreement  with the Company.
                  Such  agreement  was  never  entered  into.  As a  result,  on
                  November  4,  2004,  the  Board  of  Directors  cancelled  the
                  warrants.  The  cancelled  warrants are not presented in these
                  financial   statements,   nor  was  any  compensation  expense
                  recorded in respect of these warrants.

            5.    The Company  filed a counter  claim  against its Former CEO in
                  the amount of approximately $ 2,023 (NIS 9,405 thousand) which
                  includes,  inter alia, the issues  described in 1-4 above. The
                  Company's management and its legal advisors are of the opinion
                  that  the  Company  has a  reasonably  good  assertion  in its
                  counter claim.

      d.    On July 11, 2005,  the Former CEO  submitted to the Company a letter
            claiming that the Company  included in its Form 10-QSB filed on June
            24, 2005 slanderous allegations regarding the Former CEO. The Former
            CEO demanded a retraction and asserted damages of at least $ 23. The
            Company's management denies the claim.

      e.    In March  2004,  the Former  CEO was  granted  2,267,046  options to
            purchase a total of 2,267,046  shares of Common stock,  out of which
            270,000  options were  exercised into 249,859 shares of Common stock
            on a cashless basis. The total number of options to which the Former
            CEO is  entitled  should  have  been  based  on a  formula  that was
            determined in the agreement with the Former CEO. However, the number
            of  options  that  were  granted  in March  2004 was  incorrect.  In
            November 2004, the Company's Board of Directors decided to amend the
            number of options  granted to the Former CEO to a total of 2,042,551
            options to purchase a total of 2,042,551 shares of Common stock. The
            amended  calculation  is  based  on the  formula  determined  in the
            agreement.

            The number of  options  and  related  compensation  recorded  in the
            financial statements are based on the revised calculation.

      f.    On September 7, 2004, certain shareholders  demanded from the Former
            CEO to repay the Company  the amount of $ 1,074  (which is the value
            of the  shares  that the  Company  issued as a result of the  Former
            CEO's cashless exercise of the abovementioned  options,  at the date
            of exercise,  and which were sold by the Former CEO),  claiming that
            the  exercise  of the  options  was  executed  before the end of the
            vesting  period.  In addition,  the  shareholders  demanded that the
            Former CEO pays the Company  compensation in the amount of $ 645 for
            damages.  The Company's management and its legal advisors are of the
            opinion  that the vast  majority of the  assertions  are against the
            Former CEO and not  against  the  Company.  The  Company  denies the
            assertions  that may  imply  to the  Company's  responsibility  and,
            accordingly, no provision has been made in the accounts.


                                       13
<PAGE>

                                        TISSERA INC. (Formerly: BERT LOGIC INC.)
                                                   (A development stage company)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. dollars in thousands, except share and per share data

NOTE 5:- STOCK CAPITAL

      a.    On October 27,  2005,  the Board of  Directors  decided to amend the
            exercise  price  of  473,445  warrants  previously  granted  to  two
            directors, from $ 1 to $ 0.3 per share. The warrants are exercisable
            into Common stock on a cashless basis.

            No  compensation   was  recorded  since  the  exercise  price  after
            modification is higher than the fair value of the warrants.

      b.    In 2004, the Company granted two finders involved with the Company's
            first PPM, 43,680 fully vested warrants, exercisable until May 2005.
            On October  27,  2005,  the Board of  Directors  has  prolonged  the
            warrants  exercise  period until May 2006 at no  consideration.  The
            Company  has  recorded  the  benefit  totaling $ 10 in  general  and
            administrative expenses.

            Post  balance  sheet date the above  warrants  were  exercised  into
            shares.

                               - - - - - - - - - -


                                       14
<PAGE>

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

Forward Looking Statements - Cautionary Statements

This Form  10-QSB  contains  certain  "forward-looking  statements"  within  the
meaning  of  Section  27A of  the  Securities  Act  of  1933,  as  amended  (the
"Securities  Act"),  and Section 21E of the Securities  Exchange Act of 1934, as
amended (the "Exchange Act"). Specifically, all statements other than statements
of  historical  facts  included in this report  regarding  Tissera,  Inc.'s (the
"Company") financial position, business strategy and plans and objectives of the
Company's management for future operations are forward-looking statements. These
forward-looking statements are based on the beliefs of the Company's management,
as well  as  assumptions  made by and  information  currently  available  to the
Company's  management.  When  used  in  this  report,  the  words  "anticipate,"
"believe,"  "estimate,"  "expect,"  "intend,"  and words or  phrases  of similar
import,  as they relate to the Company or Company  management,  are  intended to
identify   forward-looking   statements.   Such  statements   (the   "cautionary
statements")  reflect the current view of the Company's  management with respect
to future  events  and are  subject  to risks,  uncertainties,  and  assumptions
related to various factors including,  without limitation,  competitive factors,
general economic conditions, customer relations, relationships with vendors, the
interest rate environment, governmental regulation and supervision, seasonality,
product introductions and acceptance,  technological change, changes in industry
practices,  and one-time events. Although the Company believes that expectations
are reasonable, it can give no assurance that such expectations will prove to be
correct.  Based upon changing conditions,  should any one or more of these risks
or  uncertainties  materialize,  or  should  any  underlying  assumptions  prove
incorrect,  actual results may vary materially  from those  described  herein as
anticipated,  believed, estimated, expected, or intended. All subsequent written
and oral  forward-looking  statements  attributable  to the  Company  or persons
acting on its behalf are expressly qualified in their entirety by the applicable
cautionary  statements.  The  Company  does not  assume  any  responsibility  to
publicly update any of its forward-looking statements regardless whether factors
change as a result of new information,  future events,  or for any other reason.
The Company advises you to review any additional disclosures made in its 10-QSB,
8-K, and 10-KSB reports filed with the Commission.

Overview

We were incorporated  under the laws of the State of Washington on May 31, 2000.
We  develop,  test and  intend  to  commercialize  solid  organ  transplantation
therapies based on an approach employing  organ-specific  precursor tissues. Our
future  approach  will  involve  harvesting  embryonic  mammalian  tissue at the
optimal   gestational   stage  after   which  stem  cells   commit  to  becoming
organ-specific precursor tissues and transplanting them in human recipients. The
optimal windows for embryonic tissue  transplantation have been defined by Prof.
Reisner's lab at the Weizmann Institute.  We entered into a Research and License
Agreement with Yeda Research and Development  Company Limited,  which is located
in Rehovot,  Israel,  whereby Yeda procures the  performance  of research at the
Weizman Institute of Science, under the supervision of Professor Yair Reisner of
the Department of Immunology.  We have a world wide license that shall expire in
each country with respect to each product at the later of (i) the  expiration of
the patents  covering such product in the country of sale, or (ii) 15 years from
the date of  receipt  of FDA New Drug  Approval  in the  United  States for such
product, or the equivalent in any other country in which the products are sold.

We are at the  development  stage  and  are  devoting  substantially  all of our
efforts toward conducting R&D activities,  raising capital,  pursuing regulatory
approval,  recruiting personnel and building infrastructure.  Our former line of
business was selling bit error testers. Our license in connection with bit error
testers expired in May 2004.


                                       15
<PAGE>

Research Agreement

On October 8, 2003,  we entered  into a  Research  and  License  Agreement  (the
"Research Agreement") with Yeda Research and Development Company Limited located
in Rehovot,  Israel.  The agreement relates to the rights of our company to have
the license from Yeda related to research  conducted  and to be conducted at the
Weizmann  Institute of Science,  under the supervision of Professor Yair Reisner
of the Department of Immunology,  and relates to an invention comprising methods
of organ  transplantation  utilizing  developing nephric and other tissues.  The
license  granted to us shall expire in each country with respect to each product
at the later of the following:

            o     the  expiration  of the patents  covering  such product in the
                  country of sale; or

            o     15 years from the date of receipt of FDA New Drug Approval (in
                  the United States),  or the equivalent in any other country in
                  which the products are sold.

In addition,  Yeda may terminate the Research and License Agreement if we are in
breach  thereof and Yeda may, at its option,  terminate the Research and License
Agreement,  in whole or in part,  or make it  non-exclusive  if we fail to reach
certain  commercialization  and development goals as set out in the Research and
License Agreement. Yeda is entitled to unilaterally amend the license so that it
is  non-exclusive  or terminate the license in the event that we fail to achieve
commercialization  of at least one product within  certain time limits,  fail to
commence various phases of clinical trials within certain time limits or fail to
sell a product after certain milestones.  Further, if we contest the validity of
the patents,  Yeda may terminate the license.  In the event that Yeda would like
to pursue  sponsored  research with respect to, or the  commercialization  of, a
given  product  that would  otherwise  be subject to the  Research  and  License
Agreement that we have not already commenced  developing,  then Yeda may provide
us with notice of its intention.  Upon receipt of such notice, we will then have
three months to submit a product  development  program. If we do not submit such
program, the license will be terminated with respect to said given product.

As part of the Research  and License  Agreement,  the Company  issued to Yeda on
February 24, 2005 the following:

      o     a warrant,  exercisable at an aggregate exercise price of US $900 to
            purchase up to 2.23% of the issued and outstanding  shares of common
            stock of our  company  immediately  following  the  exercise of such
            warrant; and

      o     a warrant,  exercisable at an aggregate  exercise price of US $1,100
            to purchase up to 2.67% of the issued and outstanding  shares of our
            company immediately following the exercise of such warrant.


                                       16
<PAGE>

However,  the Research and License Agreement provides that the maximum number of
shares of common stock that Yeda may exercise into for each warrant is 3,010,699
and  3,612,839,  respectively  (in each case as such  number of shares of common
stock  shall be  appropriately  adjusted  in the  event of stock  splits,  stock
dividends, capital reorganizations, reclassifications, recapitalizations and the
like as well as  issuances  or sales by us of  shares  for par value  only,  for
consideration  less than par value and for no  consideration,  all in accordance
with the terms and conditions of said warrant,  which shall be  satisfactory  to
Yeda and us).  The share  amounts  described  above are  adjusted to reflect the
three for one split,  but not the other  adjustment  events described above that
have occurred  through the date hereof.  Each such warrant shall be  exercisable
for a period  beginning  on the date of its  issuance and ending at the later of
the following:

      o     one year  following  the  termination  of the  Research  and License
            Agreement; and

      o     October 17, 2013.

We also agreed to pay or have paid to Yeda the following:

      o     with regard to the first year of the research period  (commencing on
            April  9,  2003),  we paid  the  amount  of US  $450,000  of which a
            non-refundable  installment  of US $450,000 was paid on December 23,
            2003.  This amount is in addition  to the  $450,000  paid to Yeda in
            connection with researched performed by Yeda during the first year;

      o     with  regard to the second  year of research we paid an amount of US
            $900,000 of which $225,000 was paid on April 23, 2004;  $225,000 was
            paid on July 8, 2004;  $225,000  was paid on  October  8, 2004;  and
            $225,000 was paid on January 10, 2005.

      o     with  regard to the third year of  research  we paid an amount of US
            $900,000 of which $225,000 was paid on April 18, 2005;  $225,000 was
            paid on July 11,  2005;  $225,000  was paid on October  12, 2005 and
            $225,000 was paid on January 9, 2006.

      o     pursuant to the third addendum of the Research Agreement dated April
            11, 2006, with regard to the fourth year of research we committed to
            pay an amount of US  $600,000 of which  $150,000  was paid on May 2,
            2006. The amount payable may be increased to $900,000 if the Company
            achieves certain fund raising milestones.  Further,  the termination
            for the research period was extended from April 10, 2006 to April 9,
            2007.

We have also  agreed  that  within  one year from the date of the  Research  and
License  Agreement,  we will  submit  a  development  program  to  Yeda  for its
approval.  The company has applied to Yeda for the deferral of the submission of
this program to September 2005, and Yeda has given its consent for the deferral.
The  September  2005 product  development  plan has been  submitted to Yeda.  We
further  undertook  to use  our  best  efforts  to  commercialize  the  licensed
products. We also agreed to pay Yeda a license fee as follows:

      o     $50,000 per year commencing on April 9, 2007;
      o     4% of net sales of all products  covered by the Research and License
            Agreement;
      o     33% of all sublicense  fees for all  agreements  entered into within
            one year of the Agreement; and
      o     16% of all  sublicense  fees for all  agreements  entered into after
            such one year period.

Results of Operations for the Fiscal Period Ended April 30, 2006 Compared to the
Fiscal Period Ended April 30, 2005

Revenues and Cost of Goods Sold

We are in a development stage and, therefore, have no revenues and cost of goods
sold.


                                       17
<PAGE>

Operating Expenses

Operating  expenses for the period ended April 30, 2006  amounted to  $1,413,000
compared to  $3,720,000  in the period  ended April 30, 2005.  This  decrease is
attributed to options and warrants granted to employees,  service  providers and
consultants  totaling  $2,057,000 in the period ended April 30, 2005 compared to
an income of $5,000 in the period  ended  April 30,  2006 and to a  decrease  in
salaries expenses as well to a decrease in general and administrative  expenses.
The R&D  expenses  in the period  ended  April 30,  2006  amounted  to  $824,000
compared  to  $946,000  in the period  ended  April 30,  2005 this  decrease  is
attributed  mainly to a decrease in salaries  expenses due to a lesser amount of
employees.  The  Company's  general and  administrative  expenses  decreased  to
$589,000 for the period ended April 30, 2006 from $2,774,000 in the period ended
April 30,  2005.  The  decrease  in general  and  administrative  expenses  were
attributed to costs related to warrants and shares granted to service  providers
and to employees  and directors  which  decreased to $20,000 in the period ended
April 30, 2006 from $2,043,000 in period ended April 30, 2005. In addition,  the
Company decreased its general and  administrative  expenses through the decrease
in payments to its auditors and legal advisors.

The Company had  financial  income in the amount of $50,000 in the period  ended
April 30, 2006 compared to net  financial  income of $48,000 in the period ended
April 30,  2005.  This is primarily a result from  interest  income on the funds
raised on March 2004 private  placement.  The Company  invests its funds in risk
less deposits that bear interest rates of approximately 4.0% per annum.

TAXES ON INCOME

We had a tax  expense  amounting  to $11,000  the period  ending  April 30, 2006
compared  to $17,000  April 30,  2005.  Our company  has an  agreement  with our
subsidiary  to  which we will  provide  services  related  to our  Research  and
Development  activities.  We will reimburse  Tissera Ltd. for expenses on a cost
plus 10% basis which creates a taxable income in our subsidiary.

Net loss

As a result of the above factors,  the Company incurred a net loss of $1,374,000
for the period ended April 30, 2006, as compared to a net loss of $3,689,000 for
the period ended April 30, 2005.

LIQUIDITY AND CAPITAL RESOURCES

Our cash and cash equivalents were $1,438,000 as of April 30, 2006,  compared to
$2,603,000 as of July 31, 2005.  This decrease in Cash and Cash  equivalents  is
attributable  to the Company's need to finance its  development  activities from
its cash and cash equivalents.  We had a working capital of $826,000 as of April
30, 2006,  compared to  $2,203,000  as of July 31, 2005.  We plan to continue to
consume cash in our research and development activities by payments of salaries,
payments  for  services  received  from  Yeda and other  costs.  We also plan to
continue  finance our operations  through a combination  of private  placements,
stock issuances,  debt issuances,  mutual  development  with possible  milestone
license payments and research and development programs. There are no assurances,
however,  that we will be successful in obtaining an adequate level of financing
required for the  long-term  development  and  commercialization  of our planned
products.


                                       18
<PAGE>

Item 3. Controls and Procedures

As of the end of the period covered by this report,  we conducted an evaluation,
under the supervision and with the  participation of our chief executive officer
and chief  financial  officer of our  disclosure  controls  and  procedures  (as
defined in Rule 13a-15(e) and Rule  15d-15(e) of the Exchange  Act).  Based upon
this  evaluation,  our  chief  executive  officer  and chief  financial  officer
concluded  that our  disclosure  controls and procedures are effective to ensure
that  information  required to be disclosed by us in the reports that we file or
submit under the Exchange Act is recorded,  processed,  summarized and reported,
within the time periods specified in the Commission's rules and forms. There was
no change in our internal  controls or in other  factors that could affect these
controls  during our last fiscal  quarter that has  materially  affected,  or is
reasonably  likely to materially  affect,  our internal  control over  financial
reporting.


                                       19
<PAGE>

Part II: OTHER INFORMATION

Item 1. Legal Proceedings

      From time to time, the Company may become involved in various lawsuits and
legal  proceedings  which arise in the  ordinary  course of  business.  However,
litigation is subject to inherent uncertainties,  and an adverse result in these
or other  matters  may  arise  from  time to time  that  may harm the  Company's
business.  Except for the  following,  the Company is currently not aware of nor
has any knowledge of any such legal  proceedings  or claims that we believe will
have,  individually  or in the  aggregate,  a  material  adverse  affect  on our
business, financial condition or operating results:

      o     On July 19, 2004,  an investor  who  participated  in the  Company's
            private  placement of securities in March 2004,  sent a letter to us
            claiming  that it was a  victim  of the  Company's  misconduct.  The
            letter was subsequently withdrawn on July 29, 2004;

      o     On September 30, 2004, an investor who participated in the Company's
            private  placement of securities in March 2004, sent a letter to the
            Company asserting the intention to bring a claim against the Company
            in the United States District Court for the Southern District of New
            York in the event  that the  Company  did not  reach an  appropriate
            compromise.  In March 2005,  the Company  entered  into a settlement
            agreement  with the investors  that  participated  in the March 2004
            private  placement  setting forth a final resolution to such issues;
            and

      o     On December 21, 2004, Dr. Rabenou, filed claim in the District Labor
            Court located in Tel Aviv Israel ("Labor Court") against the Company
            alleging  that the  Company  owed Dr.  Rabenou a sum of NIS  564,140
            (approximately  $125,000)  pursuant  to the terms of her  employment
            agreement.  This claim remains  pending,  and the Company intends to
            continue its current  defense efforts with respect to such claim. In
            addition,  the Company,  filed a counterclaim against Dr. Rabenou in
            the Labor Court based on damages incurred to the Company pursuant to
            certain of Dr. Rabenou's actions or omissions,  during her tenure as
            the  Company's  CEO.  The  counterclaim  seeks  damages  against Dr.
            Rabenou in the amount of NIS 9,405,491  (approximately  $2,089,000).
            These  damages are based  primarily on certain  actions taken by Dr.
            Rabenou  on January  15,  2004,  when Dr.  Rabenou  recommended  the
            issuance  of  Company  shares to number of  specified  entities  and
            individuals,   including   a   company   known  as   BioGreen   Ltd.
            ("BioGreen"),  to which  the  Company  issued  397,000  shares  (the
            "BioGreen Shares"). The issuance of the BioGreen Shares gave rise to
            a Company  expense of $833,700.  After Dr. Rabenou  resigned as CEO,
            the Company commenced an internal  investigation  into all corporate
            actions taken during Dr.  Rabenou's  tenure,  including the BioGreen
            matter.  The  Company's  management  attempted,  unsuccessfully,  to
            identify  the  specific  services  that  served  as  the  basis  for
            BioGreen's  compensation,  and Dr. Rabenou refused to cooperate with
            the  Company's  investigation.  Notwithstanding,  in response to the
            Company's counterclaim, Dr. Rabenou filed a reply brief within which
            she asserted  that she assigned her right to the BioGreen  Shares to
            an unnamed  offshore  company  incorporated in the Bahamas (that the
            Company  believes  is  BioGreen),  and  asserting  a  number  of new
            defenses and  mitigating  factors,  which were not disclosed  either
            during or  immediately  subsequent  to the January 15, 2004 Board of
            Directors  Meeting.   The  Company  initially  described  the  above
            litigation proceedings, within its Form 10-QSB filed for the quarter
            ended April 30, 2005.  Subsequent to the filing of such Form 10-QSB,
            Dr. Rabenou's legal counsel: (a) communicated to the Company that it
            believed that the statements in such 10-QSB  constituted  libel; (b)
            threatened  legal action against the Company if such statements were
            not  withdrawn;  and (c) claimed  damages of  approximately  $23,000
            related to such alleged libel. The Company,  based on the opinion of
            its legal  advisors,  does not intend to  retract  any of its public
            statements regarding the above matters.


                                       20
<PAGE>

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds,

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Submission of Matters to Vote of Security Holders

None.

Item 5. Other Information

None.

Item 6. Exhibits

(a)   Exhibit  Description

      10.1     Third  Addendum  Agreement  by  and  between  Yeda  Research  and
               Development Company Ltd. and Tissera Ltd. dated April 11, 2006

      31.1     Certification  of the Chief  Executive  Officer of Tissera,  Inc.
               pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

      31.2     Certification  of the Chief  Financial  Officer of Tissera,  Inc.
               pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

      32.1     Certification  of the Chief  Executive  Officer of Tissera,  Inc.
               pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

      32.2     Certification  of the Chief  Financial  Officer of Tissera,  Inc.
               pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.


                                       21
<PAGE>

                                   SIGNATURES

      Pursuant to the requirements of the Securities  Exchange Act of 1934, this
Form 10-QSB  Report,  for the Quarter ended April 30, 2006 has been signed below
by the following  person on behalf of the  Registrant and in the capacity and on
the date indicated.

                                        TISSERA, INC.


Dated: June 15, 2006                    By: /s/Amos Eiran
                                            --------------
                                            Amos Eiran
                                            Chief Executive Officer


Dated: June 15, 2006                    By: /s/Alex Werber
                                            --------------
                                            Alex Werber
                                            Chief Financial Officer


                                       22