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

                     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 January 31,2006.

                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 March 16, 2006, the registrant had 27,631,914 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                                      7-13

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations                                  13

Item 3.   Controls and Procedures                                             16

PART II.  OTHER INFORMATION                                                   17
---------------------------

Item 1.  Legal Proceedings                                                    17

Item 2.  Change in Securities                                                 17

Item 3.  Defaults Upon Senior Securities                                      17

Item 4.  Submission of Matters to Vote of Security Holders                    17

Item 5.  Other Information                                                    17

Item 6.  Exhibits                                                             17

SIGNATURES                                                                    18


<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>
                                                                                 January 31,   July 31,
                                                                                    2006        2005
                                                                                 -----------   --------
                                                                                 Unaudited
                                                                                 -----------
<S>                                                                              <C>           <C>
     ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                                                      $     1,718   $  2,603
  Prepaid expenses and other current assets                                              222        265
                                                                                 -----------   --------

Total current assets                                                                   1,940      2,868
                                                                                 -----------   --------

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

SEVERANCE PAY FUND                                                                        22         29
                                                                                 -----------   --------

PROPERTY AND EQUIPMENT, NET                                                               17         21
                                                                                 -----------   --------

Total assets                                                                     $     1,984   $  2,918
                                                                                 ===========   ========

    LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Trade payables                                                                 $         6   $      5
  Other accounts payable and accrued expenses                                            588        660
                                                                                 -----------   --------

Total current liabilities                                                                594        665
                                                                                 -----------   --------

ACCRUED SEVERANCE PAY                                                                     32         39
                                                                                 -----------   --------

Total liabilities                                                                        626        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 at
       January 31, 2006 and July 31, 2005; Issued and outstanding:
       27,582,114 shares at January 31, 2006 and July 31, 2005                             3          3
    Preferred stock of $ 0.0001 par value each - Authorized: 20,000,000
       shares at January 31, 2006 and July 31, 2005; Issued and outstanding:
       0 shares at January 31, 2006 and July 31, 2005                                   --         --
  Additional paid-in capital                                                          28,841     28,859
  Deferred stock based compensation                                                      (18)       (31)
  Deficit accumulated during the development stage                                   (27,468)   (26,617)
                                                                                 -----------   --------

Total stockholders' equity                                                             1,358      2,214
                                                                                 -----------   --------

Total liabilities and stockholders' equity                                       $     1,984   $  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
                                                     Six months ended                   (inception date)
                                                        January 31,        Year ended        through
                                                 ------------------------   July 31,       January 31,
                                                     2006         2005        2005            2006
                                                 -----------  -----------  -----------  ----------------
                                                         Unaudited                         Unaudited
                                                 ------------------------               ----------------
<S>                                              <C>           <C>         <C>          <C>

Operating expenses:
  Research and development (including
    cost related to options and warrants
    granted to Yeda (see Note 2) and to
    service providers in the amount of $ 0,
    $ 12 and $ 14 for the six months ended
    January 31, 2006 and 2005 and for
    the year ended July 31, 2005, respectively)  $       589  $       662  $     1,296  $         14,633
    General and administrative (including
    cost related to shares granted to service
    providers in the amount of $ (5), $100,
    and $ 1,780 for the six months ended
    January 31, 2006 and 2005 and for
    the year ended July 31, 2005, respectively)          300          625        2,740            12,813
                                                 -----------  -----------  -----------  ----------------

                                                         889        1,287        4,036            27,446
Financial income, net                                     45           28           68               115
                                                 -----------  -----------  -----------  ----------------

Loss from continuing operations before income
   taxes                                                 844        1,259        3,968            27,331
Income taxes                                               7           12           15                45
                                                 -----------  -----------  -----------  ----------------

Loss from continuing operations                          851        1,271        3,983            27,376
Loss from discontinued operations                       --           --           --                  92
                                                 -----------  -----------  -----------  ----------------

Net loss                                         $       851  $     1,271  $     3,983  $         27,468
                                                 ===========  ===========  ===========  ================

Basic and diluted net loss per share             $      0.03  $      0.05  $      0.14
                                                 ===========  ===========  ===========

Weighted average number of shares used in
   computing basic and diluted net loss per
   share                                          27,582,114   27,577,868   27,580,571
                                                 ===========  ===========  ===========
</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 and per 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
Amortization of 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
Warrants granted to service providers             --          --           (18)          --            --               (18)
Amortization of stock based compensation
  related to options granted to employees
  and directors                                   --          --          --               13          --                13
Net loss                                          --          --          --             --            (851)           (851)
                                            ----------  ----------  ----------   ------------   -----------   -------------

Balance as of January 31, 2006 (unaudited)  27,582,114  $        3  $   28,841   $        (18)  $   (27,468)  $       1,358
                                            ==========  ==========  ==========   ============   ===========   =============
</TABLE>


*) Less 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,
                                                             Six months ended                  2000 (inception
                                                                 January 31,      Year ended   date) through
                                                            -------------------    July 31,      January 31,
                                                              2006       2005        2005           2006
                                                            --------   --------   ----------   ---------------
                                                                  Unaudited                       Unaudited
                                                            -------------------   ----------   ---------------
<S>                                                         <C>                   <C>          <C>
Cash flows from operating activities:
   Net loss                                                 $   (851)  $ (1,271)  $   (3,983)  $       (27,468)
   Adjustments required to reconcile net loss to total net
      cash used in operating activities:
     Depreciation                                                  4          6           14                21
     Expenses (income) related to warrants granted to Yeda
       and to service providers                                  (18)       (52)        (362)           11,049
     Expenses related to options granted to employees and
       directors                                                  13        164          176             1,319
     Expenses related to shares and warrants granted to
       service providers and compensation to investors          --         --          1,980             9,346
     Decrease (increase) in prepaid expenses and other
       current assets                                             43         12          (28)             (222)
     Increase (decrease) in trade payables                         1        (12)         (16)                6
     Increase (decrease) in other accounts payable and
       accrued expenses                                          (72)       114          157               588
     Accrued severance pay, net                                 --            1            6                10
                                                            --------   --------   ----------   ---------------

 Net cash used in continuing operating activities               (880)    (1,038)      (2,056)           (5,351)
 Net cash provided by discontinued operating activities         --         --           --                  75
                                                            --------   --------   ----------   ---------------

 Total net cash used in operating activities                    (880)    (1,038)      (2,056)           (5,276)
                                                            --------   --------   ----------   ---------------

 Cash flows from investing activities:
   Sale of property and equipment                               --            9            9                 9
   Purchase of property and equipment                           --           (4)          (6)              (47)
                                                            --------   --------   ----------   ---------------

 Net cash provided by (used in) continuing investing
   activities                                                   --            5            3               (38)
 Net cash used in discontinued investing activities             --         --           --                 (15)
                                                            --------   --------   ----------   ---------------

 Total net cash provided by (used in) investing activities      --            5            3               (53)
                                                            --------   --------   ----------   ---------------

 Cash flows from financing activities:
   Issuance of shares and warrants, net                         --         --           --               7,017
   Restricted cash                                                (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               (885)    (1,033)      (2,053)            1,718
 Cash and cash equivalents at beginning of period              2,603      4,656        4,656              --
                                                            --------   --------   ----------   ---------------

 Cash and cash equivalents at end of period                 $  1,718   $  3,623   $    2,603   $         1,718
                                                            ========   ========   ==========   ===============

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


*) Less 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 January
                        31, 2006 and for the six 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 six months ended January 31, 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
                        January 31, 2006, amounted to approximately $ 27,468 and
                        $ 851, respectively. The Company is currently
                        negotiating fund raising with potential investors. In
                        addition the Company is negotiating its current research
                        and development agreement with Yeda (see Note 2) so as
                        to reduce its future 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 2006.
                        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 2006 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 conducts the
            research for a period of three years, at the Weizmann Institute of
            Science (the commercialization company of Yeda). 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,
            1,421,160 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 $ 225 for the year ended July 31, 2005
            and $ 0 for the six months ended January 31, 2006. 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.

            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.

            The Company shall also pay Yeda the following: (i) with regard to
            the first year of the research period commencing on April 9, 2003,
            an amount of $ 900; (ii) with regard to the second year and third
            year of research, an annual amount which shall be not less than $
            900 and not more than $ 1,000, to be determined by mutual agreement
            of the parties no later than 30 days prior to the commencement of
            the relevant year. The amounts are paid in four equal quarterly
            non-refundable installments, payable in advance at the beginning of
            each three-month period during such year. If the parties fail to
            reach an agreement within the time frame referred to above regarding
            the amount of the research budget payable for the second and third
            year of the research period, then the research budget for such year
            shall be $ 900 and Yeda shall procure for the Company the
            performance of research for such reduced amount.


                                       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 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.

            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 January 31, 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
                  Stateemnt 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 six months ended January
                  31, 2006 and 2005: weighted average volatility of 2.08%,
                  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:

                                                              Six months ended
                                                                January 31,
                                                            -------------------
                                                              2006       2005
                                                            --------   --------
                                                                 Unaudited
                                                            -------------------

                  Net loss as reported                      $    841   $  1,271

                  Deduct: stock-based employee
                    compensation expense included
                    in reported net loss in
                    accordance with APB No. 25                   (13)      (164)
                  Add: stock-based employee
                    compensation expense
                    determined under
                    fair value method                            514        245
                                                            --------   --------
                  Pro forma net loss                        $  1,342   $  1,352
                                                            ========   ========
                  Net loss per share
                    (basic and diluted)
                    as reported                             $  (0.03)  $  (0.05)
                                                            ========   ========
                  Pro forma net loss per share
                    (basic and diluted)                     $  (0.05)  $  (0.05)
                                                            ========   ========

            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.


                                       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 3:-    SIGNIFICANT ACCOUNTING POLICIES (Cont.)

                  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).


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 to expenses 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 as a doubtful account as of
                        July 31, 2004.


                                       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.

      b.    In 2004, the Company granted two finders involved with the Company's
            first PPM, 93,480 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.


                               - - - - - - - - - -


                                       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 its
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.


                                       13
<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.

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:


                                       14
<PAGE>


      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.

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, 2006;
      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 January 31, 2006 Compared to
the Fiscal Period Ended January 31, 2005

Revenues and Cost of Goods Sold

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

Operating expenses

Operating expenses for the period ended January 31, 2006 amounted to $889,000
compared to $1,287,000 in the period ended January 31, 2005. This decrease is
attributed to options and warrants granted to employees, service providers and
consultants totaling $112,000 in the period ended January 31, 2005 changed to an
income of $5,000 in the period ended January 31, 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 January 31, 2006 amounted to $589,000
compared to $662,000 in the period ended January 31, 2005 this decrease is
attributed to a decrease in salaries expenses due to a lesser amount of
employees. The Company General and administrative expenses decreased to $300,000
in the period ended January 31, 2006 from $625,000 in the period ended January
31, 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 changed to income of $5,000 in the period ended
January 31, 2006 from an expense of $100,000 in period ended January 31, 2005.
In addition the company decreases its general and administrative expenses mainly
to its auditors and legal advisors.


                                       15
<PAGE>


Financial Income

The Company has financial income in the amount of $45,000 for the period ended
January 31, 2006 compared to net financial income of $28,000 in the period ended
January 31, 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 3.5% per annum.

Taxes on Income

We had a tax expense amounting to $7,000 the quarter ending January 31, 2006
compared to $12,000 January 31, 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 activities the Company incurred a net loss of $851,000
for the period ended January 31, 2006, as compared to a net loss of $1,271,000
for the period ended January 31, 2005. Liquidity and Capital Resources

Liquidity and Capital Resources

The Company's cash and cash equivalents were $1,718,000 as of January 31, 2006,
compared to $2,603,000 as of July 31, 2005; this decrease is attributed to funds
used in financing the Company development activities and the overhead related to
it. The Company had working capital of $1,346,000 as of January 31, 2006,
compared to $2,203,000 as of July 31, 2005. The Company plans to continue to
finance its operations through a combination of privet placement, stock
issuances, debt issuances, mutual development with possible milestone license
payments and research and development programs. 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. These conditions raise substantial doubt
about the Company's ability to continue to operate as a going concern.

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.


                                       16
<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 investor that participated in the March 2004
            private placement setting forth a final resolution to such issues;

      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 $121,000) 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 $2,023,000).
            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.


                                       17
<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

      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.


                                       18
<PAGE>


                                   SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, this
Form 10-QSB Report, for the Quarter ended January 31, 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:March 16, 2006  By:  /s/Amos Eiran
                           -----------------------------------------------------
                           Amos Eiran
                           Chief Executive Officer (Principal Executive Officer)


Dated:March 16, 2006  By:  /s/Alex Werber
                           -----------------------------------------------------
                           Alex Werber
                           Chief Financial Officer (Principal Financial and
                           Accounting Officer)