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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 31, 2009or

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________________ to
_____________________

Commission File Number 000-52057

CYPLASIN BIOMEDICAL LTD.(Exact name of registrant as specified in its charter)

|Nevada                                                               | 47-0930829                       
|-------------------------------------------------------------------- | ---------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (IRS Employer Identification No.)
|                                                                     |                                  
|9650  20 Avenue, Edmonton, Alberta, Canada                          | T6N 1G1                          
|(Address of principal executive offices)                             | (Zip Code)                       

780.469.2975(Registrants telephone number,
including area code)

N/A(Former name, former address and
former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. [X]  Yes 
  [   ] NO

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer, or a small
reporting company. See the definitions of large accelerated filer,
accelerated filer and smaller reporting company in Rule 12b-2 of the
Exchange Act

Large accelerated filer [   ]
    
    Accelerated
      filer                   
      [   ]Non-accelerated filer   [   ]
    (Do not check if a smaller reporting company)
    Smaller reporting company   
      [X]


Indicate by check mark whether the registrant is a shell company
  (as defined in Rule 12b-2 of the Exchange Act
  [   ] YES    [X] NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant has filed all documents and reports
required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after
the distribution of securities under a plan confirmed by a
court.[   ] YES    [   ] NO

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of
Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or
for such shorter period that the registrant was required to submit and post such
files).[   ] YES    [   ] NO

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the
issuers classes of common stock, as of the latest practicable date.
989,600common shares issued and outstanding as of
September 10, 2009

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PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.











2

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CYPLASIN BIOMEDICAL, LTD.(A Development Stage
Company)

July 31, 2009 (Unaudited)







|                                                     | Index
|---------------------------------------------------- | -----
|                                                     |      
|Consolidated
      Balance Sheets                    | F1  
|                                                     |      
|Consolidated
      Statements of Operations          | F2  
|                                                     |      
|Consolidated
      Statements of Cash Flows          | F3  
|                                                     |      
|Notes
      to the Consolidated Financial Statements | F4  

3

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CYPLASIN BIOMEDICAL, LTD.(A Development Stage
Company) Consolidated Balance Sheets

|                                                                 |  | July 31,    |   |  | January 31, |  
|---------------------------------------------------------------- |  | ----------- | - |  | ----------- | -
|                                                                 |  | 2009        |   |  | 2009        |  
|ASSETS                                                           |  | $           |   |  | $           |  
|                                                                 |  | (Unaudited) |   |  | (Audited)   |  
|                                                                 |  |             |   |  |             |  
|Current Assets                                                   |  |             |   |  |             |  
|Cash                                                             |  | 9,785       |   |  | 25,953      |  
|Receivables                                                      |  | 27,504      |   |  | 18,160      |  
|Prepaids                                                         |  | 6,497       |   |  | 5,421       |  
|Total Current Assets                                             |  | 43,786      |   |  | 49,534      |  
|Equipment, net                                                   |  | 927         |   |  | 1,200       |  
|Patent (Note 3)                                                  |  | 101         |   |  | 101         |  
|Total Assets                                                     |  | 44,814      |   |  | 50,835      |  
|                                                                 |  |             |   |  |             |  
|LIABILITIES AND STOCKHOLDERS DEFICIT                            |  |             |   |  |             |  
|Current Liabilities                                              |  |             |   |  |             |  
|Accounts payable and accrued liabilities (Note
      2)          |  | 99,555      |   |  | 86,364      |  
|Obligation to issue shares (Note 4)                              |  | 5,250       |   |  | -           |  
|Total Current
      Liabilities                                  |  | 104,805     |   |  | 86,364      |  
|                                                                 |  |             |   |  |             |  
|Contingency (Note 1)                                             |  |             |   |  |             |  
|                                                                 |  |             |   |  |             |  
|Stockholders Deficit                                            |  |             |   |  |             |  
|Common stock                                                     |  |             |   |  |             |  
|Authorized: 11,625,000 shares,
      par value $0.001            |  |             |   |  |             |  
|Issued and
      outstanding: 989,600 shares (January 31, 2009  |  |             |   |  |             |  
|989,600)                                                         |  | 990         |   |  | 990         |  
|Additional paid-in capital
      (Note 5)                        |  | 1,503,244   |   |  | 1,464,111   |  
|Subscriptions received (Note 4)                                  |  | 96,500      |   |  |            |  
|Accumulated other
      comprehensive income                     |  | 33,042      |   |  | 41,128      |  
|Deficit                                                          |  | (54,275     | ) |  | (54,275     | )
|Deficit accumulated during the development
      stage           |  | (1,639,492  | ) |  | (1,487,483  | )
|Total
      Stockholders Deficit                                |  | (59,991     | ) |  | (35,529     | )
|Total Liabilities and Stockholders Deficit                      |  | 44,814      |   |  | 50,835      |  

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

F-1

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CYPLASIN BIOMEDICAL, LTD.(A Development Stage
Company) Consolidated Statements of Operations (Unaudited)

Accumulated FromFebruary 15, 2007(Date of reportingas a development
      
      
      Six
      
      
      Six
      
      
      Three
      
      
      Threestage company)
      
      
      Months
      
      
      Months
      
      
      Months
      
      
      Monthsto
      
      
      Ended
      
      
      Ended
      
      
      Ended
      
      
      EndedJuly 31,
      
      
      July 31,
      
      
      July 31,
      
      
      July 31,
      
      
      July 31,2009
      
      
      2009
      
      
      2008
      
      
      2009
      
      
      2008$
      
      
      $
      
      
      $
      
      
      $
      
      
      $Operating ExpensesGeneral and administrative
      
      545,821
      
      
      48,412
      
      
      148,868
      
      
      49,984
      
      
      70,099Management fees
      
      228,540
      
      
      55,358
      
      
      47,655
      
      
      36,540
      
      
      30,028Research and development
      
      851,014
      
      
      48,108
      
      
      157,768
      
      
      29,290
      
      
      88,167Travel
      
      14,117
      
      
      131
      
      
      3,674
      
      
      59
      
      
      3,674Net Loss
      
      (1,639,492
      )
      
      (152,009
      )
      
      (357,965
      )
      
      (115,873
      )
      
      (191,968
      )Loss Per Share  Basic and Diluted
      
      
      
      
      (0.17
      )
      
      (0.36
      )
      
      (0.12
      )
      
      (0.19
      )Weighted Average Shares Outstanding Basic and Diluted
      
      
      
      
      989,600
      
      
      989,600
      
      
      989,600
      
      
      989,600


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

F-2

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CYPLASIN BIOMEDICAL, LTD.(A Development Stage
Company) Consolidated Statements of Cash Flows (Unaudited)

|                                                                                                             |  | Accumulated From      |   |  |          |   |  |          |  
|------------------------------------------------------------------------------------------------------------ |  | --------------------- | - |  | -------- | - |  | -------- | -
|                                                                                                             |  | February 15, 2007     |   |  |          |   |  |          |  
|                                                                                                             |  | (Date of reporting as |   |  | Six      |   |  | Six      |  
|                                                                                                             |  | a development stage   |   |  | Months   |   |  | Months   |  
|                                                                                                             |  | company) To           |   |  | Ended    |   |  | Ended    |  
|                                                                                                             |  | July 31,              |   |  | July 31, |   |  | July 31, |  
|                                                                                                             |  | 2009                  |   |  | 2009     |   |  | 2008     |  
|                                                                                                             |  | $                     |   |  | $        |   |  | $        |  
|                                                                                                             |  |                       |   |  |          |   |  |          |  
|Cash Flows From Operating Activities                                                                         |  |                       |   |  |          |   |  |          |  
|Net loss                                                                                                     |  | (1,639,492            | ) |  | (165,009 | ) |  | (357,965 | )
|Adjustments to reconcile net loss
      to net cash                                                          |  |                       |   |  |          |   |  |          |  
|provided by (used in) operating
      activities:                                                            |  |                       |   |  |          |   |  |          |  
|Depreciation                                                                                                 |  | 985                   |   |  | 273      |   |  | 273      |  
|Shares for consulting services                                                                               |  | 5,250                 |   |  | 5,250    |   |  |          |  
|Stock-based
      compensation                                                                               |  | 347,632               |   |  | 39,133   |   |  | 57,566   |  
|Changes in operating assets and liabilities:                                                                 |  |                       |   |  |          |   |  |          |  
|Receivables                                                                                                  |  | (27,504               | ) |  | (9,344   | ) |  | (1,829   | )
|Prepaids                                                                                                     |  | (6,497                | ) |  | (1,076   | ) |  | 2,728    |  
|Accounts payable and accrued
      liabilities                                                               |  | 99,555                |   |  | 26,191   |   |  | 44,451   |  
|Net Cash Used in Operating
      Activities                                                                  |  | (1,220,071            | ) |  | (104,582 | ) |  | (254,776 | )
|Cash Flows From Investing Activities                                                                         |  |                       |   |  |          |   |  |          |  
|Acquisition of equipment                                                                                     |  | (1,912                | ) |  |         |   |  |         |  
|Acquisition of patent                                                                                        |  | (100                  | ) |  |         |   |  |         |  
|Net Cash Used in Investing
      Activities                                                                  |  | (2,012                | ) |  |         |   |  |         |  
|Cash Flows From Financing Activities                                                                         |  |                       |   |  |          |   |  |          |  
|Issuance of common stock                                                                                     |  | 1,100,000             |   |  | -        |   |  |         |  
|Subscriptions received                                                                                       |  | 96,500                |   |  | 101,750  |   |  |         |  
|Net Cash Provided
      By Financing Activities                                                              |  | 1,196,500             |   |  | 101,750  |   |  |         |  
|Effect of Exchange Rate Changes                                                                              |  | 35,368                |   |  | (8,086   | ) |  | (3,724   | )
|Change in Cash                                                                                               |  | 9,785                 |   |  | (16,168  | ) |  | (258,500 | )
|Cash Beginning                                                                                              |  |                      |   |  | 25,953   |   |  | 437,514  |  
|Cash Ending                                                                                                 |  | 9,785                 |   |  | 9,785    |   |  | 179,014  |  
|                                                                                                             |  |                       |   |  |          |   |  |          |  
|Supplemental Disclosures                                                                                     |  |                       |   |  |          |   |  |          |  
|During the six month period ended
      July 31, 2009, the Company recorded $5,250 (July 31, 2008 - $Nil) in |  |                       |   | 
|management fees for shares which the Company is
      obligated to issue (Note 4).                           |  |                       |   |  |          |   | 
|Interest paid                                                                                                |  |                      |   |  |         |   |  |         |  
|Income
      taxes paid                                                                                      |  |                      |   |  |         |   |  |         |  

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

F-3

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CYPLASIN BIOMEDICAL, LTD.(A Development Stage
Company) Notes to Consolidated Financial StatementsJuly 31, 2009

|1. | Going Concern                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | The Company is in the development stage and has not yet
      realized any revenues from its planned operations. Previously, it had
      generated or sustained significant revenues. These financial statements
      have been prepared on a going concern basis, which implies the Company
      will continue to realize its assets and discharge its liabilities in the
      normal course of business. The Company is unlikely to pay dividends or
      generate significant earnings in the immediate or foreseeable future. The
      continuation of the Company as a going concern and the ability of the
      Company to emerge from the development stage are dependent upon its
      successful efforts to raise additional equity financing to continue
      operations and generate sustainable significant revenue. There is no
      guarantee that the Company will be able to raise adequate equity
      financings or generate profitable operations. These financial statements
      do not include any adjustment to the recoverability and classification of
      recorded asset amounts and classification of liabilities that might be
      necessary should the Company be unable to continue as a going concern.
      These factors raise substantial doubt regarding the Companys ability to
      continue as a going concern.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Unaudited Interim Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | The accompanying unaudited consolidated interim financial
      statements have been prepared in accordance with generally accepted
      accounting principles in the United States (US GAAP) for interim
      financial information and with the instructions to Form 10-Q. They may not
      include all information and footnotes required by US GAAP for complete
      financial statements. The consolidated interim unaudited financial
      statements should be read in conjunction with those financial statements
      included in the Form 10-K as at January 31, 2009. In the opinion of
      management, all adjustments considered necessary for a fair presentation,
      consisting solely of normal recurring adjustments, have been made.
      Operating results for the period ended July 31, 2009, are not necessarily
      indicative of the results that may be expected for the year ending January
      31, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|2. | Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | During the six month period ended July 31, 2009, the
      president of the Company received a monthly management fee of CDN$11,250
      totalling $57,084 (July 31, 2008 - $66,379) of which $28,542 has been
    recorded at management fees and $28,542 as research and development.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | Included in accounts payable and accrued liabilities
      balance at July 31, 2009 are amounts of $37,391 (January 31, 2009 -
      $26,868) due to related parties and significant shareholders of the
      Company. These amounts are unsecured, bear no interest and are repayable
      on demand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | All related party transactions are measured at the
      exchange amount which is the consideration agreed to between the related
      parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|3. | Patent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | During the six month period ended July 31, 2009, the
      Company entered into a licensing agreement with Bioxen Ltd. (Bioxen) for
      further development of its intellectual property. Under terms of the
      agreement, Bioxen received an exclusive license to further develop and
      commercialize the intellectual property and corresponding patents held by
      the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   | In consideration of the license granted, Bioxen shall pay
      the Company a 1.25% royalty, calculated on all gross revenue of licensed
      products sold by Bioxen. In addition, Bioxen shall pay to the Company a
      non-refundable license fee of 25,000 EUR. This fee shall be due within 30
      days of the completion of any corporate financing by Bioxen, in which
      Bioxen receives a minimum collective amount of 500,000 EUR. Bioxen also
      agrees to pay all current outstanding patent amounts owed by the Company
      and all ongoing, continued, and related patent and maintenance fees owed.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

|4. | Common Stock                                                                                                                                                                                                                                                                                                               
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                            
|   | During the year ended January 31, 2009, the Company
      authorized a 40 to 1 reverse stock split which became effective for
      trading on February 2, 2009. All share and per share information in these
      financial statements has been adjusted to reflect the reverse stock split
      on a retroactive basis.
|   |                                                                                                                                                                                                                                                                                                                            
|   | During the six month period ended July 31, 2009, the
      Company received gross proceeds of $96,500 for a subscription of 1,600,000
      shares of its common stock at $0.025 per share, and 565,000 shares of its
      common stock at $0.10 per share. These shares have not been issued at July
      31, 2009.     
|   |                                                                                                                                                                                                                                                                                                                            
|   | At July 31, 2009, the Company is obligated to issue
      52,500 shares (January 31, 2009  Nil) of its common stock at a fair value
      of $0.10 per share, totalling $5,250, for consulting
  fees.                                                                                                                    

F-4

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CYPLASIN BIOMEDICAL, LTD.(A Development Stage
Company) Notes to Consolidated Financial StatementsJuly 31, 2009

|5. | Stock Options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | The following are the assumptions used for the
      Black-Scholes option pricings model to record the fair value of the stock
      options:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | On May 11, 2007 the Company adopted a stock option plan
      (the Plan) and granted 22,250 stock options to officers, employees and
      consultants, exercisable at $30.40 per share for a period of five years.
      The Company recognizes stock-based compensation costs on a straight-line
      basis over the requisite service period of the award, which is the option
      vesting term. The options vest at a rate of 20% every six months,
      commencing November 10, 2007. The fair value of these options at the date
      of grant was estimated to be $575,656 using the Black-Scholes option
      pricing model with an expected life of 5 years, a risk free interest rate
      of 4.75%, a dividend yield of 0%, and expected volatility of
  123%.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | During the six month period ended July 31, 2009, $39,133
      in stock based compensation expense was recognized (July 31, 2008 -
      $57,566) in relation to vested stock options and $20,698 of total
      unrecognized compensation costs related to the unvested options. During
      the six month period ended July 31, 2009, stock based compensation expense
      has been allocated equally to Management fees and Research and
      Development.                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | As of July 31, 2009, 22,250 options have been granted,
      3,200 options have vested, 18,250 options have expired and no options have
      been exercised.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     

F-5

---

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

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements.
These statements relate to future events or our future financial performance. In
some cases, you can identify forward-looking statements by terminology such as
"may", "should", "expects", "plans", "anticipates", "believes", "estimates",
"predicts", "potential" or "continue" or the negative of these terms or other
comparable terminology. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors, that may cause our or our
industry's actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements. Although
we believe that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. Except as required by applicable law, including the securities
laws of the United States, we do not intend to update any of the forward-looking
statements to conform these statements to actual results.

Our unaudited financial statements are stated in United States
Dollars (US$) and are prepared in accordance with United States Generally
Accepted Accounting Principles. The following discussion should be read in
conjunction with our financial statements and the related notes that appear
elsewhere in this quarterly report. The following discussion contains
forward-looking statements that reflect our plans, estimates and beliefs. Our
actual results could differ materially from those discussed in the forward
looking statements. Factors that could cause or contribute to such differences
include, but are not limited to, those discussed below and elsewhere in this
quarterly report.

In this quarterly report, unless otherwise specified, all
dollar amounts are expressed in United States dollars. All references to "US$"
refer to United States dollars and all references to "common shares" refer to
the common shares in our capital stock.

As used in this quarterly report, the terms "we", "us", "our"
and "our company" mean Cyplasin Biomedical Ltd., unless otherwise indicated.

General Overview

We were incorporated pursuant to the laws of the State of
Nevada on May 12, 2004 under the name Glass Wave Enterprises, Inc. Effective
February 16, 2007, we changed our name to Cyplasin Biomedical Ltd. and effected
a six point two (6.2) for one forward stock split of our authorized, issued and
outstanding common stock. Following our incorporation, we commenced the
business, through our wholly-owned subsidiary, Astro Nutrition Inc., as a
reseller of health products and herbal remedies. We targeted the market of
health food supplements and herbal remedies by catering mainly to the European
and Asian markets. We disposed of our former wholly-owned subsidiary, Astro
Nutrition Inc. during our quarter July 31, 2007.

We were not successful in implementing our business plan as a
reseller of health products and herbal remedies. As management of our company
investigated opportunities and challenges in the business of being a reseller of
health products and herbal remedies, management realized that the business did
not present the best opportunity for our company to realize value for our
shareholders. Accordingly, we abandoned our previous business plan and focused
on the identification of suitable businesses with which to enter into a business
opportunity or business combination.

On February 1, 2007, we entered into an asset purchase
agreement dated February 1, 2007 with Christian Petzelt. The asset purchase
agreement contemplated our company acquiring certain intellectual property
pertaining to cancer treatments, specifically protein molecules, for potential
applications in treating various cancers in exchange for the issuance by our
company of 21,000,000 shares of our common stock on a post six point two (6.2)
for one forward basis. The closing of the transactions contemplated in the asset
purchase agreement and the acquisition of such intellectual property occurred on
February 15, 2007. In connection with the closing of the asset purchase
agreement, we cancelled 53,320,000 post-split shares of our common stock held by
Chester Ku, the former president, secretary, treasurer and a director of our
company, and Bianca Knop, the former vice president and a director of our
company, and issued 500,000 post-split shares of our common stock pursuant to
the closing of a private placement. As at the

4

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closing date, Christian Petzelt held approximately 53.9% of the
issued and outstanding shares of common stock of our company.

On April 10, 2007, we entered into an asset purchase agreement
with Bioxen Ltd. to acquire certain intellectual property. The closing of the
transactions contemplated in the asset purchase agreement and the acquisition of
the intellectual property occurred on April 10, 2007. In accordance with the
closing of the asset purchase agreement, we paid $100 to Bioxen in exchange for
the acquisition by our company of such intellectual property.

Effective December 23, 2008, we effected a forty (40) old for
one (1) new reverse stock split of our authorized and issued and outstanding
common stock. As a result, our authorized capital decreases from 465,000,000
shares of common stock with a par value of $0.001 to 11,625,000 shares of common
stock with a par value of $0.001and our issued and outstanding shares decrease
from 39,584,000 shares of common stock to 989,600 shares of common stock.

The reverse stock split became effective with the
Over-the-Counter Bulletin Board at the opening for trading on February 2, 2009
under the new stock symbol CPBM. Our new CUSIP number is 232664201.

On February 4, 2009, our board of directors and the holders of
the majority of our outstanding shares approved an increase to our authorized
number of shares of common stock from 11,625,000 shares to 100,000,000 shares
with a par value of $0.001 per share. They also authorized the issuance of up to
100,000,000 shares of preferred stock, par value of $0.001 per share. These
amendments have not yet become effective with the Securities and Exchange
Commission.

On February 7, 2009, we entered into a licensing agreement with
Bioxen for further development of its intellectual property. Under terms of the
agreement, Bioxen received an exclusive license to further develop and
commercialize the intellectual property and corresponding patents held by our
company.

In consideration of the license granted, Bioxen shall pay our
company a 1.25% royalty, calculated on all gross revenue of licensed products
sold by Bioxen. In addition, Bioxen shall pay to our company a non-refundable
license fee of 25,000 EUR. This fee shall be due within 30 days of the
completion of any corporate financing by Bioxen, in which Bioxen receives a
minimum collective amount of 500,000 EUR. Bioxen also agrees to pay all current
outstanding patent amounts owed by our company and all ongoing, continued, and
related patent and maintenance fees owed.

On February 13, 2009, we entered into a letter of intent with
Vancouver based Pacific Therapeutics Ltd. to effect a reverse takeover in which
we would acquire 100% of Pacific Therapeutics Ltd.s common stock to be
completed on or before March 30, 2009. Due to Pacific Therapeutics Ltd.s
investors wishing to remain a private company, the letter of intent with PTL was
terminated May 1, 2009.

Subsequent to this termination management of our company has
continued to seek out other business and technology opportunities which would be
of benefit to the ongoing activities of our company. Several opportunities have
been identified and management is actively pursuing discussions to explore and
evaluate each of these identified opportunities.

Other than as set out herein, we have not been involved in any
bankruptcy, receivership or similar proceedings, nor have we been a party to any
material reclassification, merger, consolidation or purchase or sale of a
significant amount of assets not in the ordinary course of our business.

Our Current Business

As of the closing date of the asset purchase agreement on
February 15, 2007, our company commenced the business of developing a novel
therapeutic, recombinant protein called Cyplasin. The name Cyplasin was
coined by Professor Christian Petzelt, our companys former Chief Scientific
Officer, to signify the proteins high cytotoxic potency, which was originally
isolated from a marine organism known as Aplysia punctata (commonly called a
sea hare). Professor Petzelt discovered the cyplasin proteins selective
cytotoxic effects for cancer cells in 1997 and

5

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received a US patent  number 6,171,818 - on January 9, 2001
relating to a protein having anti-tumor activity, while having a DNA encoding
for the same, plus having a process for the preparation of the same with
application of methods for treating malignancies such as cancers with the same.
On April 10, 2007, we entered in an asset purchase agreement with Bioxen Ltd.,
whereby we acquired a second Cyplasin patent describing a protein having anti
tumor effect.

Using our newly obtained Intellectual Property (IP) patented
approach we plan to apply our technology to improve the treatment profile of
skin cancer and melanoma patients via a topical application by microinjection.
This first in our family of cyplasin protein products is to be known as
Cyplasin-SC, which once commercialized is expected to allow us to open new
markets and disease applications with other forms of cancer. Our business
strategy is to generate revenues through developing and licensing our
technologies through partnerships with biotechnology and pharmaceutical
companies while pursuing the development of our own products for unmet medical
needs.

Subsequent research into the cyplasin protein structure has
allowed us to manufacture the protein in the laboratory and develop procedures
for the scale up in large-scale manufacturing processes as the discovery is
commercialized. Patents have been filed for these various processes and some
have been issued in various jurisdictions and we anticipate these to be issued
in other pending countries in the future. It is our intention to continue to
create a strong patent or IP portfolio as we move along with the further
development of the protein for our current and future applications.

Prior to the asset being vended into our company an aggregate
of approximately $1.8 million had been spent on research and development related
activities. These expenditures allowed for the development of the protein
molecule from the discovery and proof of concept stage.

We have completed the preclinical testing of Cyplasin-SC,
which is an application for skin cancer and melanoma treatment. Management is
currently reviewing the results of the preclinical testing and intends to make a
decision on whether to further develop the protein forward into preclinical
development stages and then into subsequent human clinical trial development.

Results of Operations

Three month Summary ending July 31, 2009 and 2008

Three Months EndedJuly 312009
      
      
      2008Revenue
      $
      Nil
      
      $
      NilOperating Expenses
      $
      115,873
      
      $
      191,968Net Loss
      $
      (115,873
      )
      $
      (191,968
      )


Expenses

Our operating expenses for the three month periods ended July
31, 2009 and 2008 are outlined in the table below:

Three Months EndedJuly 312009
      
      
      2008General and administrative
      $
      49,984
      
      $
      70,099Management fees
      $
      36,540
      
      $
      30,028Research and development
      $
      29,290
      
      $
      88,167Travel
      $
      59
      
      $
      3,674


Operating expenses for the three months ended July 31, 2009,
decreased by 40% as compared to the comparative period in 2008 primarily as a
result of decreases in general and administrative, research and development and
travel expenses.

6

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Six month Summary ending July 31, 2009 and 2008

Six Months EndedJuly 312009
      
      
      2008Revenue
      $
      Nil
      
      $
      NilOperating Expenses
      $
      152,009
      
      $
      357,965Net Loss
      $
      (152,009
      )
      $
      (357,965
      )


Expenses

Our operating expenses for the Six month periods ended July 31,
2009 and 2008 are outlined in the table below:

Six Months EndedJuly 312009
      
      
      2008General and administrative
      $
      48,412
      
      $
      148,868Management fees
      $
      55,358
      
      $
      47,655Research and development
      $
      48,108
      
      $
      157,768Travel
      $
      131
      
      $
      3,674


Operating expenses for the Six months ended July 31, 2009,
decreased by 58% as compared to the comparative period in 2008 primarily as a
result of decreases in general and administrative, research and development and
travel expenses.

Revenue

We have not earned any revenues since our inception and we do
not anticipate earning revenues in the upcoming quarter.

Equity Compensation

On March 31, 2007 our board of directors approved our 2007
stock option plan. Under the 2007 stock option plan, options may be granted only
to our directors, officers, employees and consultants as determined by our board
of directors. Pursuant to the Plan, we reserved for issuance 75,000 (post split)
shares of our common stock. As at July 31, 2009, there were 52,500 (post split)
shares of our common stock still available for future grant under the plan.

Liquidity and Financial Condition

Working CapitalAt July 31,
    
    
    At January
    
    
    Percentage2009
    
    
    31, 2009
    
    
    Increase/DecreaseCurrent Assets
    $
    43,786
    
    $
    50,835
    
    
    (14%)Current Liabilities
    $
    104,805
    
    $
    86,364
    
    
    30%Working Capital
    $
    (61,019
    )
    $
    (35,529
    )
    
    71%


Cash FlowsAs atJuly 31,2009
      
      
      2008Net Cash Provided by (Used in) Operating
        Activities
      $
      (104,582
      )
      $
      (254,776
      )Net Cash Provided by (Used In) Investing Activities
      $
      Nil
      
      $
      NilNet Cash Provided by Financing Activities
      $
      96,500
      
      $
      NilEffect of Exchange Rate Changes
      $
      (8,086
      )
      $
      (3,724
      )Increase (Decrease) In Cash During The
        Period
      $
      (16,168
      )
      $
      (258,500
      )


7

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As of July 31, 2009, our company had working capital deficit of
$61,019. We estimate our operating expenses and working capital requirements for
the next twelve month period to be as follows:

Estimated Expenses for the Next Twelve Month PeriodOperating
      ExpensesManagement and Consulting
    $
    120,000Research
      and Development
    
    150,000General and
      Administrative
    
    150,000Total
    $
    420,000


We plan to raise additional capital required to meet immediate
short-term needs and to meet the balance of our estimated funding requirements
for the twelve months, primarily through the private placement of our
securities.

We are not aware of any known trends, demands, commitments,
events or uncertainties that will result in or that are reasonably likely to
result in our liquidity increasing or decreasing in any material way.

Future Financings

We will require additional financing in order to enable us to
proceed with our product development program. There is no assurance that any
party will advance additional funds to us in order to enable us to sustain our
plan of operations. We anticipate continuing to rely on equity sales of our
common stock in order to continue to fund our business operations. Issuances of
additional shares will result in dilution to our existing stockholders. There is
no assurance that we will achieve any additional sales of our equity securities
or arrange for debt or other financing to fund our planned business activities.

We presently do not have any arrangements for additional
financing and no potential lines of credit or sources of financing are currently
available for the purpose of proceeding with our plan of operations.

Contractual Obligations

As a smaller reporting company, we are not required to
provide tabular disclosure obligations.

Going Concern

We anticipate that additional funding will be required in the
form of equity financing from the sale of our common stock. At this time, we
cannot provide investors with any assurance that we will be able to raise
sufficient funding from the sale of our common stock or through a loan from our
directors to meet our obligations over the next twelve months. We do not have
any arrangements in place for any future debt or equity financing.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that is material to
stockholders.

Critical Accounting Policies

The discussion and analysis of our financial condition and
results of operations are based upon our financial statements, which have been
prepared in accordance with the accounting principles generally accepted in the
United States of America. Preparing financial statements requires management to
make estimates and assumptions that affect the reported amounts of assets,
liabilities, revenue, and expenses. These estimates and assumptions are affected
by managements application of accounting policies. We believe that
understanding the basis and nature of the estimates and assumptions involved
with the following aspects of our financial statements is critical to an
understanding of our financial statements.

8

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Basis of Presentation

These consolidated financial statements and notes are presented
in accordance with accounting principles generally accepted in the United States
(U.S. GAAP) and are expressed in US dollars. Our companys fiscal year end is
January 31.

Principles of Consolidation

These financial statements include the accounts of our company
and our wholly-owned subsidiary, Cyplasin OncoScience Inc. These financial
statements also include the accounts of Astro, whose results of operations and
cash flows for the period from February 1, 2007 to February 15, 2007, have been
reported on a discontinued basis. All significant intercompany transactions and
balances have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with U.S.
GAAP requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities and the reported amounts of revenues and expenses. Our companys
actual results could differ from managements estimates and assumptions.
Significant areas requiring the use of management estimates relate to the
determination of impairment of intangibles and long lived assets, expected tax
rates for future income tax recoveries and determining the fair values of
financial statements.

Equipment

Equipment consists of computer hardware, furniture and
equipment and is recorded at cost. Computer hardware and furniture and equipment
are depreciated on a straight-line basis over their estimated lives of three
years and five years, respectively.

Long-Lived Assets

Long-lived assets are reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount of the assets
might not be recoverable at the end of each reporting period. Conditions that
would necessitate an impairment assessment include a significant decline in the
observable market value of an asset, a significant change in the extent of
manner in which an asset is used, or a significant adverse change that would
indicate that the carrying amount of asset or group of assets is not
recoverable. For long-lived assets to be held and used, management measures fair
value based on quoted market prices or based on discounted estimates of future
cash flows.

Research and Development

Pursuant to SFAS No. 2 Accounting for Research and Development
Costs, research and product development costs are expensed as incurred.

Other Comprehensive Income

SFAS No. 130, Reporting Comprehensive Income,
establishes standards for the reporting and display of comprehensive income and
its components in the financial statements. During the years ended January 31,
2009 and 2008, the only component of comprehensive income was foreign currency
translation adjustments.

Income Taxes

Our company uses the assets and liability method of accounting
for income taxes pursuant to SFAS No. 109 Accounting for Income Taxes. Under
this method, deferred income tax assets and liabilities are recognized for the
future tax consequences attributable to temporary differences between the
financial statements carrying amounts of existing assets and liabilities and
their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled.

9

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Our company adopted the provisions of Financial Accounting
Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in
Income Taxes (FIN 48), on February 1, 2007. Previous, our company had
accounted for tax contingencies in accordance with SFAS No.5, Accounting for
Contingencies. As required by Interpretation 48, which clarifies SFAS No. 109,
Accounting for Income Taxes, the Company recognizes the financial statement
benefit of a tax position only after determining that the relevant tax authority
would make more likely than not sustain the position following an audit. For tax
positions meeting this standard, the amount recognized in the financial
statements is the largest benefit that has a greater than 50 percent likelihood
of being realized upon ultimate settlement with the relevant tax authority. At
the adoption date, our company applied Interpretation 48 to all tax positions
for which the statute of limitations remained open. The adoption of FIN 48 did
not have a material impact in the consolidated financial statements during the
year ended January 31, 2009.

Basic and Diluted Loss per Share

Our company reports basic loss per share in accordance with
SFAS No. 128, Earnings per Share. Basic loss per share is computed using the
weighted average number of common shares outstanding during the year. Diluted
earnings per share reflect the potential dilution that could occur if
potentially dilutive securities were exercised or converted to common stock. The
dilutive effect of options and warrants and their equivalent is computed by
application of the treasury stock method and the effect of convertible
securities by the if converted method. For the years presented, diluted loss
per share is equal to basic loss per share as the effect of the computations are
anti-dilutive.

Financial Instruments and Risk Management

The carrying value of our companys financial instruments,
consisting of cash, receivables and accounts payable and accrued liabilities
approximates their fair value due to the short maturity of such instruments.
Unless otherwise noted, it is managements opinion that our company is not
exposed to significant interest, currency or credit risks arising from these
financial instruments.

Our companys operations are in Canada and virtually all of its
assets and liabilities are giving rise to significant exposure to market risks
from changes in foreign currency rates. The financial risk is the risk to our
companys operations that arise from fluctuations in foreign exchange rates and
the degree of volatility of these rates. Currently, our company does not use
derivative instruments to reduce its exposure to foreign currency risk.

Foreign Currency Translation

Our companys functional currency is the Canadian dollar. The
financial statements of the Company are translated to United States dollar
equivalents in accordance with SFAS No. 52, Foreign Currency
Translation. Monetary assets and liabilities denominated in foreign
currencies are translated into United States dollar equivalents at rates of
exchange in effect at the balance sheet date. Average rates for the year are
used to translate revenues and expenses.

The cumulative translation adjustment is reported as a separate
component of accumulated other comprehensive income, whereas gains and losses
arising from foreign currency translations are included in results of
operations.

Stock-Based Compensation

Our company has adopted SFAS No. 123(R), Share Based
Payments, which requires the compensation cost related to share-based
payments, such as stock options and employee stock purchase plans, be recognized
in the financial statements based on the grant-date fair value of the award.

Recent Accounting Pronouncements

In March 2008, the FASB issued SFAS No. 161, Disclosures about
Derivative Instruments and Hedging Activities (SFAS 161). SFAS 161 is intended
to improve financial reporting about derivative instruments and hedging
activities by requiring enhanced disclosures to enable investors to better
understand their effects on an entitys financial position, financial
performance, and cash flows. SFAS 161 achieves these improvements by requiring
disclosure of the fair values of derivative instruments and their gains and
losses in a tabular format. It also provides more information about an entitys
liquidity by requiring disclosure of derivative features that are credit
risk-related.

10

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Finally, it requires cross-referencing within footnotes to
enable financial statement users to locate important information about
derivative instruments. SFAS 161 will be effective for financial statements
issued for fiscal years and interim periods beginning after November 15, 2008,
will be adopted by our company beginning in the first quarter of 2010. Our
company does not expect there to be any significant impact of adopting SFAS 161
on its financial position, cash flows and results of operations.

In April 2008, the FASB issued Staff Position No. 142-3,
Determination of the Useful Life of Intangible Assets (FSP No. 142-3). FSP
No. 142-3 amends the factors to be considered in assumptions used to determine
the useful lives of recognized intangible assets recognized under SFAS No. 142.
The new guidance applies to intangible assets with contractual lives that are
acquired individually or with a group of assets as well as those assets acquired
in a business combination. The new guidance is effective for fiscal years
beginning after December 15, 2008 and interim periods. Our company will adopt
the statement on January 1, 2009 which is the beginning of its 2009 fiscal year.
Management is in the process of evaluating the impact FSP No. 142-3 will have on
our companys consolidated financial statements.

In May 2008, the FASB issued SFAS No. 162, The Hierarchy of
Generally Accepted Accounting Principles. SFAS No. 162 sets forth the level of
authority to a given accounting pronouncement or document by category. Where
there might be conflicting guidance between two categories, the more
authoritative category will prevail. SFAS No. 162 will become effective 60 days
after the SEC approves the Public Company Accounting Oversight Boards (PCAOB)
amendments to AU Section 411 of the AICPA Professional Standards. SFAS No. 162
has no effect on our companys financial position, statements of operations, or
cash flows at this time. Management is in the process of evaluating the impact
SFAS No. 162 will have on our companys consolidated financial statements.

In May 2008, the FASB issued SFAS No. 163, Accounting for
Financial Guarantee Insurance Contracts-and interpretation of FASB Statement No.
60. SFAS No. 163 clarifies how Statement 60 applies to financial guarantee
insurance contracts, including the recognition and measurement of premium
revenue and claims liabilities. This statement also requires expanded
disclosures about financial guarantee insurance contracts. SFAS No. 163 is
effective for fiscal years beginning on or after December 15, 2008, and interim
periods within those years. SFAS No. 163 has no effect on our companys
financial position, statements of operations, or cash flows at this time.
Management is in the process of evaluating the impact SFAS No. 163 will have on
our companys consolidated financial statements.

Item 3. Quantitative Disclosures About Market Risks

As a smaller reporting company, we are not required to
provide the information required by this Item.

Item 4T. Controls and Procedures.

We maintain disclosure controls and procedures that are
designed to ensure that information required to be disclosed in our reports
filed under the Securities Exchange Act of 1934, as amended, is recorded,
processed, summarized and reported within the time periods specified in the
Securities and Exchange Commission's rules and forms, and that such information
is accumulated and communicated to our management, including our president (also
our principal executive officer, principal financial officer and principal
accounting officer) to allow for timely decisions regarding required disclosure.

As of July 31, 2009, the end of our second quarter covered by
this report, we carried out an evaluation, under the supervision and with the
participation of our president (also our principal executive officer, principal
financial and accounting officer), of the effectiveness of the design and
operation of our disclosure controls and procedures. Based on the foregoing, our
president (also our principal executive officer, principal financial and
accounting officer) concluded that our disclosure controls and procedures were
not effective in providing reasonable assurance in the reliability of our
financial reports as of the end of the period covered by this quarterly report.

There have been no changes in our internal controls over
financial reporting that occurred during the quarter ended July 31, 2009 that
have materially or are reasonably likely to materially affect, our internal
controls over financial reporting.

11

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

We know of no material, existing or pending legal proceedings
against our company, nor are we involved as a plaintiff in any material
proceeding or pending litigation. There are no proceedings in which any of our
directors, officers or affiliates, or any registered or beneficial shareholder,
is an adverse party or has a material interest adverse to our interest.

Item 1A. Risk Factors

Much of the information included in this quarterly report
includes or is based upon estimates, projections or other "forward looking
statements". Such forward looking statements include any projections or
estimates made by us and our management in connection with our business
operations. While these forward-looking statements, and any assumptions upon
which they are based, are made in good faith and reflect our current judgment
regarding the direction of our business, actual results will almost always vary,
sometimes materially, from any estimates, predictions, projections, assumptions
or other future performance suggested herein.

Such estimates, projections or other "forward looking
statements" involve various risks and uncertainties as outlined below. We
caution the reader that important factors in some cases have affected and, in
the future, could materially affect actual results and cause actual results to
differ materially from the results expressed in any such estimates, projections
or other "forward looking statements".

Our common shares are considered speculative during the
development of our new business operations. Prospective investors should
consider carefully the risk factors set out below.

RISKS RELATED TO OUR BUSINESS

We have had negative cash flows from operations since
inception. We will require significant additional financing, the availability of
which cannot be assured, and if our company is unable to obtain such financing,
our business may fail.

To date, we have had negative cash flows from operations and
have depended on sales of our equity securities and debt financing to meet our
cash requirements. Our ability to develop and, if warranted, commercialize our
technologies, will be dependent upon our ability to raise significant additional
financing. If we are unable to obtain such financing, we will not be able to
fully develop our business. Specifically, we will need to raise additional funds
to:

- support our planned growth and carry out our business plan;
- continue scientific progress in our research and development programs;
- address costs and timing of conducting clinical trials and seek regulatory
  approvals and patent prosecutions;
- address competing technological and market developments; and
- establish additional collaborative relationships.

We may not be able to obtain additional equity or debt
financing on acceptable terms as required. Even if financing is available, it
may not be available on terms that are favourable to us or in sufficient amounts
to satisfy our requirements. If we require, but are unable to obtain, additional
financing in the future, we may be unable to implement our business plan and our
growth strategies, respond to changing business or economic conditions,
withstand adverse operating results and compete effectively. More importantly,
if we are unable to raise further

12

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financing when required, we may be forced to scale down our
operations and our ability to generate revenues may be negatively affected.

We have a history of losses and nominal operating results,
which raise substantial doubt about our ability to continue as a going
concern.

Since inception through July 31, 2009, we have a net loss of
$1,639,492. We can offer no assurance that we will operate profitably or that we
will generate positive cash flow in the future. In addition, our operating
results in the future may be subject to significant fluctuations due to many
factors not within our control, such as the level of competition and general
economic conditions.

Our company's operations will be subject to all the risks
inherent in the establishment of a developing enterprise and the uncertainties
arising from the absence of a significant operating history. No assurance can be
given that we may be able to operate on a profitable basis.

Due to the nature of our business and the early stage of our
development, our securities must be considered highly speculative. We have not
realized a profit from our operations to date and there is little likelihood
that we will realize any profits in the short or medium term. Any profitability
in the future from our business will be dependent upon the successful
commercialization or licensing of our core technology, which itself is subject
to numerous risks.

We expect to continue to incur development costs and operating
costs. Consequently, we expect to incur operating losses and negative cash flows
until our technology gains market acceptance sufficient to generate a
sustainable level of income from the commercialization or licensing of our
technology.

Our inability to complete our product development activities
successfully may severely limit our ability to operate and finance operations.

Commercialization of our core technology will require
significant additional research and development as well as substantial clinical
trials. We believe that the United States will be the principal market for our
technology, as will any country in the world where the need for anti cancer
therapeutics, initially for skin cancer and melanomas, exists. We may not be
able to successfully complete development of our core technology, or
successfully market our technology. We, and any of our potential collaborators,
may encounter problems and delays relating to research and development,
regulatory approval and intellectual property rights of our technology. Our
research and development programs may not be successful. Our core technology may
not prove to be safe and efficacious in clinical trials, and we may not obtain
the intended regulatory approvals for our core technology. Whether or not any of
these events occur, we may not have adequate resources to continue operations
for the period required to resolve the issue delaying commercialization and we
may not be able to raise capital to finance our continued operation during the
period required for resolution of that issue.

We may lose our competitiveness if we are not able to
protect our proprietary technology and intellectual property rights against
infringement, and any related litigation may be time-consuming and costly.

Our success and ability to compete depends to a significant
degree on our proprietary technology. If any of our competitors copy or
otherwise gain access to our proprietary technology or develop similar
technologies independently, we may not be able to compete as effectively. The
measures we have implemented to protect our proprietary technology and other
intellectual property rights are currently based upon a combination of patents
and trade secrets. This, however, may not be adequate to prevent the
unauthorized use of our proprietary technology and our other intellectual
property rights. Further, the laws of foreign countries may provide inadequate
protection of such intellectual property rights. We may need to bring legal
claims to enforce or protect such intellectual property rights. Any litigation,
whether successful or unsuccessful, may result in substantial costs and a
diversion of our company's resources. In addition, notwithstanding our rights to
our intellectual property, other persons may bring claims against us alleging
that we have infringed on their intellectual property rights or claims that our
intellectual property rights are not valid. Any claims against us, with or
without merit, could be time consuming and costly to defend or litigate, divert
our attention and resources, result in the loss of goodwill associated with our
business or require us to make changes to our technology.

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Our company may become subject to intellectual property
litigation which may harm our business.

Our success depends in part on our ability to develop
commercially viable products without infringing the proprietary rights of
others. Although we have not been subject to any filed infringement claims,
other patents could exist or could be filed which may prohibit or limit our
ability to market our products or maintain a competitive position. In the event
of an intellectual property dispute, we may be forced to litigate. Intellectual
property litigation may divert management's attention from developing our
technology and may force us to incur substantial costs regardless of whether we
are successful. An adverse outcome could subject us to significant liabilities
to third parties, and force us to curtail or cease the development and
commercialization of our technology.

If our company commercializes or tests our technology, our
company will be subject to potential product liability claims which may affect
our earnings and financial condition.

We face an inherent business risk of exposure to product
liability claims in the event that the use of our core technology during
research and development efforts, including clinical trials, or after
commercialization, results in adverse affects. As a result, we may incur
significant product liability exposure, which may exceed any insurance coverage
that we obtain in the future. Even if we elect to purchase such issuance in the
future, we may not be able to maintain adequate levels of insurance at
reasonable cost and/or reasonable terms. Excessive insurance costs or uninsured
claims may increase our operating loss and affect our financial condition.

If we fail to effectively manage the growth of our company
and the commercialization or licensing of our technology, our future business
results could be harmed and our managerial and operational resources may be
strained.

As we proceed with the development of our technology and the
expansion of our marketing and commercialization efforts, we expect to
experience significant growth in the scope and complexity of our business. We
will need to add staff to manage operations, handle business development efforts
and perform finance and accounting functions. We anticipate that we will be
required to hire a broad range of additional personnel in order to successfully
advance our operations. This growth is likely to place a strain on our
management and operational resources. The failure to develop and implement
effective systems, or to hire and retain sufficient personnel for the
performance of all of the functions necessary to effectively service and manage
our potential business, or the failure to manage growth effectively, could have
a material adverse effect on our business and financial condition.

Failure to obtain and maintain required regulatory approvals
will severely limit our ability to commercialize our technology.

We believe that it is important for the success of our business
to obtain the approval of the Food and Drug Administration in the United States
(FDA) before we commence commercialization of our technology in the United
States, the principal market for our technology. We may also be required to
obtain additional approvals from foreign regulatory authorities to apply for any
sales activities we may carry out in those jurisdictions. If we cannot
demonstrate the safety, reliability and efficacy of our technology, the FDA or
other regulatory authorities could delay or withhold regulatory approval of our
technology.

Even if we obtain regulatory approval of our technology, that
approval may be subject to limitations on the indicated uses for which it may be
marketed. Even after granting regulatory approval, the FDA and other regulatory
agencies and governments in other countries will continue to review and inspect
any future marketed products as well as any manufacturing facilities that we may
establish in the future. Later discovery of previously unknown problems with a
product or facility may result in restrictions on the product, including a
withdrawal of the product from the market. Further, governmental regulatory
agencies may establish additional regulations which could prevent or delay
regulatory approval of our technology.

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Even if we obtain regulatory approval to commercialize our
products, lack of commercial acceptance may impair our business.

Our product development efforts are primarily directed toward
obtaining regulatory approval for our cyplasin protein product treatments. Our
products may not be employed in all potential applications being investigated,
and any reduction in applications may limit the market acceptance of our
products and our potential revenues. As a result, even if our products are
developed into marketable products and we obtain all required regulatory
approvals, we cannot be certain that our products will be adopted at a level
that would allow us to operate profitably.

If we do not keep pace with our competitors, technological
advancements and market changes, our technology may become obsolete and our
business may suffer.

The market for our technology is very competitive, is subject
to rapid technological changes and varies for different individual products. We
believe that there are potentially many competitive approaches being pursued
that compete with our technology, including some by private companies for which
information is difficult to obtain.

Many of our competitors have significantly greater resources
and have developed products and processes that directly compete with our
technology. Our competitors may develop, or may in the future develop, new
technologies that directly compete with our technology or even render our
technology obsolete. Our technology is designed to develop a topical treatment
for skin cancer and melanoma. Even if we are able to demonstrate improved or
equivalent results from our technology, researchers and practitioners may not
use our technology and we may suffer a competitive disadvantage. Finally, to the
extent that others develop new technologies that address the targeted
application for our current technology, our business will suffer.

Our ability to hire and retain key personnel will be an
important factor in the success of our business and a failure to hire and retain
key personnel may result in our inability to manage and implement our business
plan.

We are highly dependent upon our management personnel such as
Christian Petzelt who discovered the cyplasin proteins selective cytotoxic
effects. The loss of the services of one or more of our management may impair
management's ability to operate our company. We have not purchased key man
insurance on any of these individuals, which insurance would provide us with
insurance proceeds in the event of their death. Without key man insurance, we
may not have the financial resources to develop or maintain our business until
we could replace the individual or to replace any business lost by the death of
that person. The competition for qualified personnel in the markets in which we
operate is intense. In addition, in order to manage growth effectively, we must
implement management systems and recruit and train new employees. We may not be
able to attract and retain the necessary qualified personnel. If we are unable
to retain or to hire qualified personnel as required, we may not be able to
adequately manage and implement our business.

Most of our assets and all of our directors and officers are
outside the United States, with the result that it may be difficult for
investors to enforce within the United States any judgments obtained against us
or any of our directors or officers.

Although we are organized under the laws of the State of
Nevada, United States, our principal business office is located in Edmonton,
Alberta, Canada. Outside the United States, it may be difficult for investors to
enforce judgments against us that are obtained in the United States in any
action, including actions predicated upon civil liability provisions of federal
securities laws. In addition, a majority of our directors and officers reside
outside the United States, and nearly all of the assets of these persons and our
assets are located outside of the United States. As a result, it may not be
possible for investors to effect service of process within the United States
upon such persons or to enforce against us or such persons judgments predicated
upon the liability provisions of United States securities laws. There is
substantial doubt as to the enforceability against us or any of our directors
and officers located outside the United States in original actions or in actions
of enforcement of judgments of United States courts or liabilities predicated on
the civil liability provisions of United States federal securities laws. In
addition, as the majority of our assets are located outside of the United
States, it may be difficult to enforce United States bankruptcy proceedings
against us. Under bankruptcy laws in the United States, courts typically have
jurisdiction over a debtor's property, wherever it is located, including
property situated in other countries. Courts outside of the United States may
not recognize the United States bankruptcy court's jurisdiction. Accordingly,
you may have

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trouble administering a United States bankruptcy case involving
a Nevada company as debtor with most of its property located outside the United
States. Any orders or judgments of a bankruptcy court obtained by you in the
United States may not be enforceable.

Our business is subject to comprehensive government
regulation and any change in such regulation may have a material adverse effect
on our company.

There is no assurance that the laws, regulations, policies or
current administrative practices of any government body, organization or
regulatory agency in the United States or any other jurisdiction, will not be
changed, applied or interpreted in a manner which will fundamentally alter the
ability of our company to carry on our business. The actions, policies or
regulations, or changes thereto, of any government body or regulatory agency, or
other special interest groups, may have a detrimental effect on our company. Any
or all of these situations may have a negative impact on our operations.

RISKS RELATED TO OUR COMMON STOCK

A decline in the price of our common stock could affect our
ability to raise further working capital and adversely impact our ability to
continue operations.

A prolonged decline in the price of our common stock could
result in a reduction in the liquidity of our common stock and a reduction in
our ability to raise capital. Because a significant portion of our operations
has been and will be financed through the sale of equity securities, a decline
in the price of our common stock could be especially detrimental to our
liquidity and our operations. Such reductions may force us to reallocate funds
from other planned uses and may have a significant negative effect on our
business plans and operations, including our ability to develop new products and
continue our current operations. If our stock price declines, we can offer no
assurance that we will be able to raise additional capital or generate funds
from operations sufficient to meet our obligations. If we are unable to raise
sufficient capital in the future, we may not be able to have the resources to
continue our normal operations.

The market price for our common stock may also be affected by
our ability to meet or exceed expectations of analysts or investors. Any failure
to meet these expectations, even if minor, may have a material adverse effect on
the market price of our common stock.

If we issue additional shares in the future, it will result
in the dilution of our existing shareholders.

Our certificate of incorporation authorizes the issuance of up
to 465,000,000 shares of common stock. Our board of directors may choose to
issue some or all of such shares to acquire one or more businesses or to provide
additional financing in the future. The issuance of any such shares will result
in a reduction of the book value and market price of the outstanding shares of
our common stock. If we issue any such additional shares, such issuance will
cause a reduction in the proportionate ownership and voting power of all current
shareholders. Further, such issuance may result in a change of control of our
corporation.

Trading of our stock may be restricted by the Securities
Exchange Commission's penny stock regulations, which may limit a stockholder's
ability to buy and sell our stock.

The Securities and Exchange Commission has adopted regulations
which generally define "penny stock" to be any equity security that has a market
price (as defined) less than $5.00 per share or an exercise price of less than
$5.00 per share, subject to certain exceptions. Our securities are covered by
the penny stock rules, which impose additional sales practice requirements on
broker-dealers who sell to persons other than established customers and
"accredited investors". The term "accredited investor" refers generally to
institutions with assets in excess of $5,000,000 or individuals with a net worth
in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly
with their spouse. The penny stock rules require a broker-dealer, prior to a
transaction in a penny stock not otherwise exempt from the rules, to deliver a
standardized risk disclosure document in a form prepared by the Securities and
Exchange Commission, which provides information about penny stocks and the
nature and level of risks in the penny stock market. The broker-dealer also must
provide the customer with current bid and offer quotations for the

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penny stock, the compensation of the broker-dealer and its
salesperson in the transaction and monthly account statements showing the market
value of each penny stock held in the customer's account. The bid and offer
quotations, and the broker-dealer and salesperson compensation information, must
be given to the customer orally or in writing prior to effecting the transaction
and must be given to the customer in writing before or with the customer's
confirmation. In addition, the penny stock rules require that prior to a
transaction in a penny stock not otherwise exempt from these rules; the
broker-dealer must make a special written determination that the penny stock is
a suitable investment for the purchaser and receive the purchaser's written
agreement to the transaction. These disclosure requirements may have the effect
of reducing the level of trading activity in the secondary market for the stock
that is subject to these penny stock rules. Consequently, these penny stock
rules may affect the ability of broker-dealers to trade our securities. We
believe that the penny stock rules discourage investor interest in and limit the
marketability of our common stock.

The Financial Industry Regulatory Authority, or FINRA, has
adopted sales practice requirements which may also limit a stockholder's ability
to buy and sell our stock.

In addition to the "penny stock" rules described above, FINRA
has adopted rules that require that in recommending an investment to a customer,
a broker-dealer must have reasonable grounds for believing that the investment
is suitable for that customer. Prior to recommending speculative low priced
securities to their non-institutional customers, broker-dealers must make
reasonable efforts to obtain information about the customer's financial status,
tax status, investment objectives and other information. Under interpretations
of these rules, FINRA believes that there is a high probability that speculative
low priced securities will not be suitable for at least some customers. FINRA
requirements make it more difficult for broker-dealers to recommend that their
customers buy our common stock, which may limit your ability to buy and sell our
stock and have an adverse effect on the market for our shares.

Our common stock is illiquid and the price of our common
stock may be negatively impacted by factors which are unrelated to our
operations.

Our common stock currently trades on a limited basis on the OTC
Bulletin Board. Trading of our stock through the OTC Bulletin Board is
frequently thin and highly volatile. There is no assurance that a sufficient
market will develop in the stock, in which case it could be difficult for
shareholders to sell their stock. The market price of our common stock could
fluctuate substantially due to a variety of factors, including market perception
of our ability to achieve our planned growth, quarterly operating results of our
competitors, trading volume in our common stock, changes in general conditions
in the economy and the financial markets or other developments affecting our
competitors or us. In addition, the stock market is subject to extreme price and
volume fluctuations. This volatility has had a significant effect on the market
price of securities issued by many companies for reasons unrelated to their
operating performance and could have the same effect on our common stock.

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

On August 20, 2009, we approved the issuance of 1,665,000
common shares pursuant to private placements from April 2009 to August 2009
raising gross proceeds of $97,100. The shares were issued on September 11, 2009
to eight (8) non-U.S. persons (as that term is defined in Regulation S of the
Securities Act of 1933), in an offshore transaction relying on Regulation S of
the Securities Act of 1933

Item 3. Defaults Upon Senior Securities.

None.

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

None.

Item 5. Other Information

None.

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Item 6. Exhibits.

Exhibits required by Item 601 of Regulation S-K

|Exhibit |                                                                                                                                                                                                              
|------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Number  | Description                                                                                                                                                                                                  
|        |                                                                                                                                                                                                              
|(3)     | Articles
        of Incorporation and By-laws                                                                                                                                                                
|        |                                                                                                                                                                                                              
|3.1     | Articles of
        Incorporation (Incorporated by reference from our Registration Statement
        on Form SB-2/a filed on July 29, 2005)                                                                  
|        |                                                                                                                                                                                                              
|3.2     | Bylaws (Incorporated
        by reference from our Registration Statement on Form SB-2 filed on May
        5, 2005)                                                                                         
|        |                                                                                                                                                                                                              
|(10)    | Material
        Contracts                                                                                                                                                                                   
|        |                                                                                                                                                                                                              
|10.1    | Asset Purchase
        Agreement dated February 1, 2007 with Christian Petzelt (Incorporated
        by reference from our Form 8-K Current Report filed on February 5, 2007)                                
|        |                                                                                                                                                                                                              
|10.2    | Asset Purchase
        Agreement dated April 10, 2007 with Bioxen Ltd. (Incorporated by reference
        from our Form 8-K Current Report filed on April 13, 2007)                                          
|        |                                                                                                                                                                                                              
|10.3    | Consulting Agreement
        dated February 15, 2007 with Christian Petzelt (Incorporated by reference
        from our Form 10-KSB filed on May 1, 2007)                                                    
|        |                                                                                                                                                                                                              
|10.4    | Consulting Agreement
        dated February 15, 2007 with Bioxen Ltd. (Incorporated by reference from
        our Form 10-KSB filed on May 1, 2007)                                                          
|        |                                                                                                                                                                                                              
|10.5    | Consulting Agreement
        dated February 15, 2007 with Garth Likes (Incorporated by reference from
        our Form 10-KSB filed on May 1, 2007)                                                          
|        |                                                                                                                                                                                                              
|10.7    | Form of Stock
        Option Agreement (Incorporated by reference from our Form 8-K Current
        Report filed on July 3, 2007)                                                                            
|        |                                                                                                                                                                                                              
|(31)    | Section 302
        Certification                                                                                                                                                                            
|        |                                                                                                                                                                                                              
|31.1*   | Certification
        of Principal Executive Officer and Principal Financial Officer filed pursuant
        to Section 302 of the Sarbanes-Oxley Act of 2002                                                 
|        |                                                                                                                                                                                                              
|(32)    | Section 906
        Certification                                                                                                                                                                            
|        |                                                                                                                                                                                                              
|32.1*   | Certification
        of Principal Executive Officer and Principal Financial Officer pursuant
        to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
        Act of 2002

* Filed herewith

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

|                          | CYPLASIN BIOMEDICAL LTD.                               
|------------------------- | -------------------------------------------------------
|                          | (Registrant)                                           
|                          |                                                        
|                          |                                                        
|Dated: September 14, 2009 | /s/
      Garth Likes                                  
|                          | Garth Likes                                            
|                          | President, Chief Executive Officer and Director        
|                          | (Principal Executive Officer, Principal
      Financial
|                          | Officer and Principal Accounting Officer)              

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