| DELAWARE                                      | 33-0824714                                |
|-----------------------------------------------|-------------------------------------------|
| (State      of Incorporation)                 | (I.R.S.      Employer Identification No.) |
|                                          |                                      |
| 8885      Rehco Road, San Diego, California   | 92121                                     |
| (Address      of Principal Executive Offices) | (Zip      Code)                           |

----

|        BIO-MATRIX      SCIENTIFIC GROUP, INC. AND SUBSIDIARIES                                                                                                                                                                                                                                                                             |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        (A      Development Stage Company)                                                                                                                                                                                                                                                                                                  |
|        Consolidated      Balance Sheet                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                            |   | December      31, 2009 |   |   | September      30, 2009 |   |
|                                                                                                                                                                                                                                                                                                                                            | (unaudited) |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |
| CURRENT      ASSETS                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |
|    Cash                                                                                                                                                                                                                                                                                                                          |   | $ | 1,788 |   |   | $ | 17,750 |   |
| Securities      Available for sale                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   | 0 |   |
|    Pre-paid      Expenses                                                                                                                                                                                                                                                                                                        |   |   | 332,646 |   |   |   | 333,398 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|     Total      Current Assets                                                                                                                                                                                                                                                                                               |   |   | 334,434 |   |   |   | 351,148 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| PROPERTY      & EQUIPMENT (Net of Accumulated Depreciation)                                                                                                                                                                                                                                                                                 |   |   | 538,868 |   |   |   | 538,868 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Other      Assets                                                                                                                                                                                                                                                                                                                               |   |   | 25,507 |   |   |   | 25,507 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                                                                                                                                                                                                                                                                                               |   | $ | 898,809 |   |   | $ | 915,523 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                  LIABILITIES      AND STOCKHOLDERS' EQUITY |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| CURRENT      LIABILITIES                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|    Accounts      payable                                                                                                                                                                                                                                                                                                         |   | $ | 349,509 |   |   | $ | 227,377 |   |
| Bank      Overdraft                                                                                                                                                                                                                                                                                                                             |   |   | 1,358 |   |   |   |   |   |
|    Notes      Payable                                                                                                                                                                                                                                                                                                            |   |   | 391,343 |   |   |   | 397,322 |   |
|    Accrued      Payroll                                                                                                                                                                                                                                                                                                          |   |   | 412,500 |   |   |   | 342,000 |   |
|    Accrued      Payroll  taxes                                                                                                                                                                                                                                                                                         |   |   | 24,798 |   |   |   | 24,044 |   |
|    Accrued      Interest                                                                                                                                                                                                                                                                                                         |   |   | 116,355 |   |   |   | 84,911 |   |
|    Accrued      expenses                                                                                                                                                                                                                                                                                                         |   |   | 5,000 |   |   |   | 5,000 |   |
| Current      portion of Convertible Note                                                                                                                                                                                                                                                                                                        |   |   | 503,400 |   |   |   | 503,400 |   |
| Current      portion of Note to Affiliated Party                                                                                                                                                                                                                                                                                                |   |   | 1,000 |   |   |   | 1,000 |   |
|          Total      Current Liabilities                                                                                                                                                                                                                                                            |   |   | 1,805,263 |   |   |   | 1,585,054 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| LONG      TERM LIABILITIES                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Convertible      Note                                                                                                                                                                                                                                                                                                                           |   |   | 0 |   |   |   | 0 |   |
| Note      to Affiliated Party                                                                                                                                                                                                                                                                                                                   |   |   | 0 |   |   |   | 0 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES                                                                                                                                                                                                                                                                                                                          |   |   | 1,805,263 |   |   |   | 1,585,054 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'      EQUITY                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| Preferred      Stock ($.0001 par value                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| 20,000,000      shares authorized;  2,975,478                                                                                                                                                                                                                                                                                         |   |   | 300 |   |   |   | 300 |   |
| issued      and outstanding as of September 30, 2009 and December 31,    2009                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Series      AA Preferred Stock ($0.0001 par value)                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| 100,000      shares authorized, 4852 issued and outstanding                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| as      of September 30, 2009 and December 31, 2009                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Series      B Preferred Shares ($0.0001 par value) 2,000,000 shares      authorized,  725, 409 issued and outstanding as of September 30,      2009 and December 31, 2009                                                                                                                                                             |   |   | 73 |   |   |   | 73 |   |
| Common      Stock,  ($.0001  par value)                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| 80,000,000      shares authorized;  47,091,708 and 43,728,375                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| shares      issued and outstanding as of December 31, 2009 and September 30,      2009                                                                                                                                                                                                                                                          |   |   | 4,709 |   |   |   | 4,371 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Additional      paid in Capital                                                                                                                                                                                                                                                                                                                 |   |   | 9,576,042 |   |   |   | 9,364,701 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Contributed      capital                                                                                                                                                                                                                                                                                                                        |   |   | 499,000 |   |   |   | 499,000 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| Accumulated      Other Comprehensive Income (Loss)                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Deficit      accumulated during the development stage                                                                                                                                                                                                                                                                                           |   |   | (10,839,828 | ) |   |   | (10,443,980 | ) |
| Deficit      attributable to noncontrolling interest in subsidiary                                                                                                                                                                                                                                                                              |   |   | (146,749 | ) |   |   | (93,995 | ) |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|      Total      Stockholders' Equity (Deficit)                                                                                                                                                                                                                                                                         |   |   | (906,453 | ) |   |   | (669,530 | ) |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| TOTAL      LIABILITIES                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| &      STOCKHOLDERS' EQUITY                                                                                                                                                                                                                                                                                                                 |   | $ | 898,809 |   |   | $ | 915,523 |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| The      following Notes are an integral part of these Financial      Statements                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |   |   |

----

| BIO-MATRIX      SCIENTIFIC GROUP, INC. AND SUBSIDIARIES                          |   |                   |       |   |                   |     |         |                   |   |
|----------------------------------------------------------------------------------|--------|------------------------|------------|--------|------------------------|----------|--------------|------------------------|--------|
| (A      Development Stage Company)                                               |   |                   |       |   |                   |     |         |                   |   |
| Consolidated      Statements of Operations                                       |   |                   |       |   |                   |     |         |                   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |
|                                                                             |   | Quarter      Ended     |       |   | Quarter      Ended     |     |         | From      Inception    |   |
|                                                                             |   | December      31, 2009 |       |   | December      31, 2008 |     |         | (August      2, 2005)  |   |
|                                                                             |   | (unaudited)            |       |   | (unaudited)            |     |         | through                |   |
|                                                                             |   |                   |       |   |                   |     |         | December      31, 2009 |   |
|                                                                             |   |                   |       |   |                   |     |         | (unaudited)            |   |
| REVENUES                                                                         |   |                   |       |   |                   |     |         |                   |   |
|    Sales                                                          |   |                   |       |   |                   |     |         |                   |   |
|                                                                             | $      | -                      |       |   | $                      | -        |         |                   | $      | - |   |
|                                                                             |   |                   |       |   |                   |     |    |                   |   |   | 0 |   |
| Total      Revenues                                                              |   |                   | 0          |   |                   |     | 0            |                   |   |   | 0 |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
| COSTS      AND EXPENSES                                                          |   |                   |       |   |                   |     |         |                   |   |   |   |   |
| Research      and Development                                                    |   |                   | 44,495     |   |                   |     | 43,628       |                   |   |   | 831,552 |   |
| General      and administrative                                                  |   |                   | 344,934    |   |                   |     | 257,204      |                   |   |   | 4,766,018 |   |
| Depreciation      and amortization                                               |   |                   |       |   |                   |     |         |                   |   |   | 2,668 |   |
| Consulting      and professional fees                                            |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             |   | 27,729                 |       |   |                   | 62,300   |         |                   |   | 4,658,119 |   |
| Impairment      of goodwill & intangibles                                    |   |                   |       |   |                   |     |         |                   |   |   | 34,688 |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
| Total      Costs and Expenses                                                    |   |                   | 417,158    |   |                   |     | 363,132      |                   |   |   | 10,293,045 |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
| OPERATING      LOSS                                                              |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             |   | (417,158               | )          |   |                   | (363,132 | )            |                   |   | (10,293,045 | ) |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
| OTHER      INCOME & (EXPENSES)                                               |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
| Interest      Expense                                                            |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             |   | (31,444                | )          |   |                   | (25,590  | )            |                   |   | (235,872 | ) |
| Interest      Income                                                             |   |                   |       |   |                   |     |         |                   |   |   | 306 |   |
| Other      income                                                                |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   | 30,100 |   |
| Loss      on sale of Available for Sale Securities                               |   |                   |       |   |                   |     |         |                   |   |   | (487,900 | ) |
| Other      Expense                                                               |   |                   |       |   |                   |     |         |                   |   |   | (166 | ) |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
| Total      Other Income & (Expenses)                                         |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             |   | (31,444                | )          |   |                   | (25,590  | )            |                   |   | (693,532 | ) |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|  NET      INCOME (LOSS)                                                     |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |
|                                                                             | $      | (448,602               | )          |   | $                      | (388,722 | )            |                   | $      | (10,986,577 | ) |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
| (NET      INCOME) LOSS attributable to                                           |   |                   |       |   |                   |     |         |                   |   |   |   |   |
| noncontrolling      interest in Entest BioMedical, Inc                           |   |                   | 52,754     |   |                   |     |         |                   |   |   | 146,749 |   |
|  Net      Loss attributable to common shareholders                          |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             | $      | (395,848               | )          |   | $                      | (388,722 | )            |                   | $      | (10,839,828 | ) |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |
| BASIC      AND DILUTED EARNINGS (LOSS) PER SHARE                                 |   |                   |       |   |                   |     |         |                   |   |   |   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |
|                                                                             |   | (0.009                 | )          |   |                   | (0.015   | )            |                   |   |   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
| Weighted      Average Shares Outstanding                                         |   |                   | 45,369,136 |   |                   |     | 25,257,809   |                   |   |   |   |   |
|                                                                             |   |                   |       |   |                   |     |         |                   |   |   |   |   |
| The      Following Notes are an Integral Part of these Financial      Statements |   |

----

| Bio-matrix      Scientific Group, Inc. and Subsidiaries |
|---------------------------------------------------------|
| (A      Development Stage Company)                      |
| Consolidated      Statement of Cash Flow                |

|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|----------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             | Three      Months Ended                                                                                                                                                                                                                                                                    | Three      Months Ended                                                                                                                                                                                             | Inception      (August 2, 2005) to                                                                                                                                                                                                         |
|                                                                             | December      31, 2009                                                                                                                                                                                                                                                                     | December      31, 2008                                                                                                                                                                                              | December      31, 2009                                                                                                                                                                                                                     |
|                                                                             | (unaudited)                                                                                                                                                                                                                                                                                | (unaudited)                                                                                                                                                                                                         | (unaudited)                                                                                                                                                                                                                                |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                        |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|  Net      Income (loss)                                                     |  $                                             (395,848)                           |  $                                  (388,722)                      |  $                          (10,839,828)                                                            |
| Adjustments      to reconcile net loss to net cash (used in) provided            |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| by      operating activities:                                                    |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Depreciation      expense                                                        |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                | 2,667                                                                                                                                                                                                                                      |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Stock      issued for compensation to employees                                  | 103,476                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                | 1,038,543                                                                                                                                                                                                                                  |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Stock      issued for services rendered by consultants                           | 5,000                                                                                                                                                                                                                                                                                      | 3,333                                                                                                                                                                                                               | 3,978,734                                                                                                                                                                                                                                  |
| Stock      issued for prepaid expenses                                           |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                | 300,000                                                                                                                                                                                                                                    |
| Stock      issued for interest                                                   |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                | 101,430                                                                                                                                                                                                                                    |
| Changes      in operating assets and liabilities:                                |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| (Increase)      decrease in receivables                                          |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| (Increase)      decrease in prepaid expenses                                     | 752                                                                                                                                                                                                                                                                                        | 24,601                                                                                                                                                                                                              | (332,646)                                                                                                                                                                                                                                  |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Increase      (Decrease) in Accounts Payable                                     | 122,132                                                                                                                                                                                                                                                                                    | 33,361                                                                                                                                                                                                              | 349,509                                                                                                                                                                                                                                    |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Increase      (Decrease) in Accrued Expenses                                     | 102,698                                                                                                                                                                                                                                                                                    | 60,469                                                                                                                                                                                                              | 588,600                                                                                                                                                                                                                                    |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Increase      (Decrease) in Other Comprehensive Income                           |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                | (50,000)                                                                                                                                                                                                                                   |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Loss      attributable to Non Controlling interest in subsidiary                 | (52,754)                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                | (146,749)                                                                                                                                                                                                                                  |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Net      Cash Provided by (Used in) Operating Activities                         | (114,544)                                                                                                                                                                                                                                                                                  | (233,677)                                                                                                                                                                                                           | (5,009,740)                                                                                                                                                                                                                                |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                        |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| (      Increase) Decrease in Deposits                                            |                                                                                                                                                                                                                                                                                       | (4,200)                                                                                                                                                                                                             | (25,507)                                                                                                                                                                                                                                   |
| Purchases      of fixed assets                                                   |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                | (541,536)                                                                                                                                                                                                                                  |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| (Additions)      Decreases  to Securities Available for Sale           |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                | 50,000                                                                                                                                                                                                                                     |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Net      Cash Provided by (Used in) Investing Activities                         |                                                                                                                                                                                                                                                                                       | (4,200)                                                                                                                                                                                                             | (517,043)                                                                                                                                                                                                                                  |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                        |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Preferred      Stock issued for cash                                             |                                                                                                                                                                                                                                                                                       | 15                                                                                                                                                                                                                  | 339                                                                                                                                                                                                                                        |
| Common      stock issued for cash                                                |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                | 1,630                                                                                                                                                                                                                                      |
| Common      Stock issued for Debt                                                | 98,200                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                | 314,916                                                                                                                                                                                                                                    |
| Common      Stock issued for Accrued Salaries                                    |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                | 120,000                                                                                                                                                                                                                                    |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Additional      paid in Capital                                                  | 5,000                                                                                                                                                                                                                                                                                      | 17,902                                                                                                                                                                                                              | 1,680,919                                                                                                                                                                                                                                  |
| Principal      borrowings on notes and Convertible Debentures                    | (5,979)                                                                                                                                                                                                                                                                                    | 225,350                                                                                                                                                                                                             | 1,210,799                                                                                                                                                                                                                                  |
| Increase      (Decrease) Due to Shareholder                                      |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Convertible      notes                                                           |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                | 503,400                                                                                                                                                                                                                                    |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Contributed      Capital                                                         |                                                                                                                                                                                                                                                                                       | 499,000                                                                                                                                                                                                             | 499,000                                                                                                                                                                                                                                    |
| Increase      (Decrease) in Bank Overdraft                                       | 1,358                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                | 1,358                                                                                                                                                                                                                                      |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Net      borrowings from related parties                                         |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                | 1,195,196                                                                                                                                                                                                                                  |
| Increase      (Decrease) in Notes from Affiliated party                          |                                                                                                                                                                                                                                                                                       | (499,000)                                                                                                                                                                                                           | 1,000                                                                                                                                                                                                                                      |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Net      Cash Provided by (Used in) Financing Activities                         | 98,579                                                                                                                                                                                                                                                                                     | 243,267                                                                                                                                                                                                             | 5,528,557                                                                                                                                                                                                                                  |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Net      Increase (Decrease) in Cash                                             | (15,962)                                                                                                                                                                                                                                                                                   | 5,390                                                                                                                                                                                                               | 1,788                                                                                                                                                                                                                                      |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Cash      at Beginning of Period                                                 | 17,750                                                                                                                                                                                                                                                                                     | 8,410                                                                                                                                                                                                               | 0                                                                                                                                                                                                                                          |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|  Cash      at End of Period                                                 |  $                                                  1,788 |  $                                      13,796 |  $                                     1,788 |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Supplemental  Cash      Flow Disclosures:                              |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Significant      non-cash activities:                                            |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Stock      issued to cancel debt                                                 | 2,044,592                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Preferred      stock issued for stock dividend                                   | 108                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| Total                                                                            | 2,044,700                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
| The      Following Notes are an integral part of these Financial      Statements |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |
|                                                                             |                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                |                                                                                                                                                                                                                                       |

----

----

| As      of December 31 ,2009          |
|---------------------------------------|
|                                  |   |   |   |
| Deferred      tax assets:             |   |   |   |
| Net      operating tax carry forwards |   | $ | 3,748,656 |   |
| Other                                 |   |   | -0- |   |
| Gross      deferred tax assets        |   |   | 3,748,656 |   |
| Valuation      allowance              |   |   | (3,748,656)) |   |
|                                  |   |   |   |   |
| Net      deferred tax assets          |   | $ | -0- |   |

----

----

| Flow      Cytometer (4 Color) (BD Facscanto)                          |
|-----------------------------------------------------------------------|
| Laboratory      computer system/also for enrollments/storage tracking |
| Hematology      Analyzer (celldyne 1800)(ABBOTT)                      |
| Laminar      Flow Hood 4 ft ( Clean hood) (2)                         |
| Bench      top centrifuges (2) refrigerated                           |
| Small      equipment (lab set-up)                                     |
| Microscope                                                            |
| Tube      heat sealers (2 ea)                                         |
| Barcode      printer and labeling device                              |
|                                                                  |

----

|   | (a) | increased      general and administrative and income expenses incurred by us offset      by |
|--------|-----|---------------------------------------------------------------------------------------------|

|   | (b) | decreased      .professional and consulting fees incurred by us as well as $52, 754 in      Net Losses in the quarter ended December 31, 2009 attributable to      noncontrolling interest in Entest BioMedical,  Inc. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 31.1   | Certification      of Chief Executive Officer                                                                  |
|--------|----------------------------------------------------------------------------------------------------------------|
|   |                                                                                                           |
| 31.2   | Certification      of Acting Chief Financial Officer                                                           |
|   |                                                                                                           |
| 32.1   | Certification      of Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act of      2002.        |
|   |                                                                                                           |
| 32.2   | Certification      of Acting Chief Financial Officer under Section 906 of the Sarbanes-Oxley      Act of 2002. |

----

|            | Bio-      Matrix Scientific Group, Inc. |
|-----------------|-----------------------------------------|
|            | a      Delaware corporation             |
|            |                                    |
| By:        | /s/      David R. Koos                  |
|            | David      R. Koos                 |
|            | Chief      Executive Officer            |
|            | Date:      February 8, 2010             |

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