**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**FORM      10-QSB**

**MOSAIC      NUTRACEUTICALS CORP.**

| **Nevada**                                                                    | **88-0462298**                                   |
|-------------------------------------------------------------------------------|--------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (IRS                Employer Identification No.) |

**4100      Spring Valley Road, Suite 200, Dallas, Texas 75244**

**(214)      866-0045**

**APPLICABLE      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS      DURING THE PRECEDING FIVE YEARS**

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

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***Table          of Contents***

**TABLE      OF CONTENTS**

| **PART                I                                   ****FINANCIAL                INFORMATION** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                |   |   |
|                                                                                                                                                                                                                                                                                | **Item                1.** | **Financial                Statements** |
|                                                                                                                                                                                                                                                                                |   |   |
|                                                                                                                                                                                                                                                                                | **Item                2.** | **Management’s                Discussion and Analysis or Plan of                Operation** |
|                                                                                                                                                                                                                                                                                |   |   |
|                                                                                                                                                                                                                                                                                | **Item                3.** | **Controls                and Procedures** |
|                                                                                                                                                                                                                                                                                |   |   |
| **PART                II                                 ****OTHER                INFORMATION**                |
|                                                                                                                                                                                                                                                                                |   |   |
|                                                                                                                                                                                                                                                                                | **Item                1.** | **Legal                Proceedings** |
|                                                                                                                                                                                                                                                                                |   |   |
|                                                                                                                                                                                                                                                                                | **Item                2.** | **Unregistered                Sales of Equity Securities and Use of                Proceeds** |
|                                                                                                                                                                                                                                                                                |   |   |
|                                                                                                                                                                                                                                                                                | **Item                6.** | **Exhibits** |
|                                                                                                                                                                                                                                                                                |   |   |
| **SIGNATURES**                                                                                                                                                                                                                                                                      |

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***Table          of Contents***

**PART      I**

**FINANCIAL      INFORMATION**

**Item      1.** **Financial      Statements.**

**MOSAIC      NUTRACEUTICALS, CORP.**

**(A      Development Stage Enterprise)**

**FINANCIAL      REPORTS**

**(UNAUDITED)**

**MARCH      31, 2006**

**DECEMBER      31, 2005**

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP. **

**Contents**

|                                                    |                       |
|---------------------------------------------------------|----------------------------|
|                                                    |                       |
| FINANCIAL                STATEMENTS                     |                       |
|                                                    |                       |
| Balance                Sheets                           | F-3                        |
|                                                    |                       |
| Statements                of Operations                 | F-4                        |
|                                                    |                       |
| Statements                of Stockholders’ Equity | F-5                - F-6   |
|                                                    |                       |
| Statements                of Cash Flows                 | F-7                        |
|                                                    |                       |
| Notes                to Financial Statements            | F-8                - F- 10 |
|                                                    |                       |
|                                                    |                       |
|                                                    |                       |
|                                                    |                       |
|                                                    |                       |
|                                                    |                       |
|                                                    |                       |

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP.**

**(A      Development Stage Enterprise)**

**BALANCE      SHEETS**

|                                                                                                                         |   | March                31, |       | December                31, |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|-----------------------------|--------|
|                                                                                                                         |   | 2006                     |       | 2005                        |   |
|                                                                                                                         |   | (Unaudited)              |       |                             |   |
| ASSETS                                                                                                                       |   |
| CURRENT                ASSETS                                                                                                |   |                     |       |                        |   |   |   |
|     Cash                                                                                                 |   | $                        | 67         |                        | $      | 143 |   |
|     Accounts                receivable                                                                   |   |                     | --         |                        |   | 1,003 |   |
|     Other                receivable                                                                      |   |                     | 101,964    |                        |   | 101,964 |   |
|     Inventory                                                                                            |   |                     | 113,870    |                        |   | 91,257 |   |
|     Prepaid                expenses                                                                      |   |                     | 110,405    |                        |   | 160,485 |   |
|         Total                current assets                                          |   | $                        | 326,306    |                        | $      | 354,852 |   |
|                                                                                                                         |   |                     |       |                        |   |   |   |
| OTHER                ASSETS                                                                                                  |   |                     |       |                        |   |   |   |
|     Deposits                                                                                             |   | $                        | 2,889      |                        | $      | 2,889 |   |
|     Fixed                assets, net                                                                     |   |                     | 33,039     |                        |   | 34,628 |   |
|     Intangible                assets, net                                                                |   |                     | 19,000     |                        |   | 20,500 |   |
|                                                                                                                         |   |                     |       |                        |   |   |   |
|             Total                assets                          |   | $                        | 381,234    |                        | $      | 412,869 |   |
|                                                                                                                         |   |                     |       |                        |   |   |   |
| LIABILITIES                AND STOCKHOLDERS’ EQUITY                                                                    |
|                                                                                                                         |   |                     |       |                        |   |   |   |
| CURRENT                LIABILITIES                                                                                           |   |                     |       |                        |   |   |   |
|     Accounts                payable and accrued expenses                                                 |   | $                        | 154,412    |                        | $      | 116,383 |   |
|     Officer                payable                                                                       |   |                     | 7,500      |                        |   | -- |   |
|     Customer                Deposit                                                                      |   |                     | 4,000      |                        |   | 4,000 |   |
|     Notes                payable                                                                         |   |                     | 19,876     |                        |   | 19,876 |   |
|         Total                current liabilities                                     |   | $                        | 185,788    |                        | $      | 140,259 |   |
|                                                                                                                         |   |                     |       |                        |   |   |   |
| STOCKHOLDERS’                EQUITY                                                                                    |   |                     |       |                        |   |   |   |
|     Preferred                stock: $0.001 par value; authorized                                         |   |                     |       |                        |   |   |   |
|                         5,000,000 shares; no shares issued and                outstanding |   |                     |       |                        |   |   |   |
|     Common                stock: $0.001 par value;                                                       |   |                     |       |                        |   |   |   |
|                         authorized 100,000,000 shares; issued and                         |   |                     |       |                        |   |   |   |
|                         outstanding: 55,209,029 March 31, 2006,                           |   |                     |       |                        |   |   |   |
|                         54,653,242 and December 31, 2005:                                 |   | $                        | 55,209     |                        | $      | 54,653 |   |
|                          Additional paid in capital                                  |   |                     | 2,215,372  |                        |   | 2,047,928 |   |
|     Accumulated                deficit during development stage                                          |   |                     | (2,075,135 | )                           |   | (1,829,971 | ) |
|                                                                                                                         |   |                     |       |                        |   |   |   |
|         Total                stockholders’ equity                              |   | $                        | 195,446    |                        | $      | 272,610 |   |
|                                                                                                                         |   |                     |       |                        |   |   |   |
|             Total                liabilities and                 |   |                     |       |                        |   |   |   |
|             stockholders’                equity            |   | $                        | 381,234    |                        | $      | 412,869 |   |
|                                                                                                                         |   |                     |       |                        |   |   |   |

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP. **

**(A      Development Stage Enterprise)**

**STATEMENTS      OF OPERATIONS**

|                                                                          |   |                              |       |                          |   | Aug.                8, 1990 |   |
|-------------------------------------------------------------------------------|--------|-----------------------------------|------------|-------------------------------|--------|-----------------------------|--------|
|                                                                          |   | Three                months ended |       | (inception)                to |   |
|                                                                          |   | March                31,          |       | March                31,      |   |
|                                                                          |   | 2006                              |       | 2005                          |   | 2006                        |   |
|                                                                          |   | (Unaudited)                       |       |                          |   | (Unaudited)                 |   |
|                                                                          |   |                              |       |                          |   |                        |   |
| Revenues                                                                      |   | $                                 | 6,063      |                          | $      | 221                         |   | $ | 16,110 |   |
|                                                                          |   |                              |       |                          |   |                        |   |   |   |   |
| Cost                of revenue                                                |   |                              | 2,984      |                          |   | --                          |   |   | 5,916 |   |
|                                                                          |   |                              |       |                          |   |                        |   |   |   |   |
|         Gross                profit   |   | $                                 | 3,079      |                          | $      | 221                         |   | $ | 10,194 |   |
|                                                                          |   |                              |       |                          |   |                        |   |   |   |   |
| General,                selling and                                           |   |                              |       |                          |   |                        |   |   |   |   |
| administrative                expenses                                        |   |                              |       |                          |   |                        |   |   |   |   |
|     Operating                expenses                     |   | $                                 | 244,734    |                          | $      | 40,035                      |   | $ | 2,009,945 |   |
|     Depreciation                and amortization          |   |                              | 3,089      |                          |   | 1,500                       |   |   | 16,635 |   |
|         Operating                loss |   | $                                 | (244,744   | )                             | $      | (45,314                     | )      | $ | (2,016,386 | ) |
|                                                                          |   |                              |       |                          |   |                        |   |   |   |   |
| Nonoperating                income (expense)                                  |   |                              | (420       | )                             |   | (398                        | )      |   | (2,673 | ) |
|                                                                          |   |                              |       |                          |   |                        |   |   |   |   |
|     Net                loss                               |   | $                                 | (245,164   | )                             | $      | (45,712                     | )      | $ | (2,019,059 | ) |
|                                                                          |   |                              |       |                          |   |                        |   |   |   |   |
|     Net                loss per share, basic              |   |                              |       |                          |   |                        |   |   |   |   |
|     and                diluted                            |   | $                                 | (0.00      | )                             | $      | (0.00                       | )      |   |   |   |
|                                                                          |   |                              |       |                          |   |                        |   |   |   |   |
|     Weighted                Average number                |   |                              |       |                          |   |                        |   |   |   |   |
|     of                shares of common stock              |   |                              |       |                          |   |                        |   |   |   |   |
|     outstanding                                           |   |                              | 55,005,390 |                          |   | 50,271,097                  |   |   |   |   |

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP. **

**(A      Development Stage Enterprise)**

**STATEMENTS      OF STOCKHOLDERS’ EQUITY**

|                                                                   |   |                        |       |    |   |       |   |        |    | Accumulated                     |   |   |   |
|------------------------------------------------------------------------|--------|-----------------------------|------------|---------|--------|------------|--------|-------------|---------|---------------------------------|--------|--------|--------|
|                                                                   |   |                        |       |    |   | Additional |   | Common      |    | (Deficit)                During |   |   |   |
|                                                                   |   | Common                Stock |       | Paid-In |   | Stock      |   | Development |    |                            |   |
|                                                                   |   | Shares                      |       | Amount  |   | Capital    |   | Subscribed  |    | Stage                           |   | Total  |   |
|                                                                   |   |                        |       |    |   |       |   |        |    |                            |   |   |   |
| Issuance                of Common Stock,                               |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
|     August                8, 1990                  |   |                        | 562,500    |    | $      | 563        |   | $           | 1,937   |                            | $      | 0      |   | $ | 0 |   | $ | 2,500 |   |
| Balance,                December 31, 1990                              |   |                        | 562,500    |    | $      | 563        |   | $           | 1,937   |                            | $      | 0      |   | $ | 0 |   | $ | 2,500 |   |
| Balance,                December 31, 1991                              |   |                        | 562,500    |    | $      | 563        |   | $           | 1,937   |                            |   |   |   | $ | 0 |   | $ | 2,500 |   |
| Net                loss, December 31, 1992                             |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   | (2,500 | ) |   | (2,500 | ) |
| Balance,                December 31, 1992                              |   |                        | 562,500    |    | $      | 563        |   | $           | 1,937   |                            | $      | 0      |   | $ | (2,500 | ) | $ | 0 |   |
| Balance,                December 31, 1993                              |   |                        | 562,500    |    | $      | 563        |   | $           | 1,937   |                            | $      | 0      |   | $ | (2,500 | ) | $ | 0 |   |
| Balance,                December 31, 1994                              |   |                        | 562,500    |    | $      | 563        |   | $           | 1,937   |                            | $      | 0      |   | $ | (2,500 | ) | $ | 0 |   |
| July                20, 1995, changed from no                          |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
|     par                value to $.001              |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
| July                21, 1995, forward stock 900:1                      |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
| Balance,                December 31, 1995                              |   |                        | 562,500    |    | $      | 563        |   | $           | 1,937   |                            | $      | 0      |   | $ | (2,500 | ) | $ | 0 |   |
| February                1, 1996, reverse split 1:100                   |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
| Issuance                of Common Stock for                            |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
|     Services                February 22, 1996      |   |                        | 16,500,000 |    |   | 16,500     |   |        | (1,937  | )                               |   |   |   |   | (13,563 | ) |   | 1,000 |   |
| Net                loss, December 31, 1996                             |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   | (1,000 | ) |   | (1,000 | ) |
| Balance,                December 31, 1996                              |   |                        | 17,062,500 |    | $      | 17,063     |   | $           | 0       |                            | $      | 0      |   | $ | (17,063 | ) | $ | 0 |   |
| Balance,                December 31, 1997                              |   |                        | 17,062,500 |    | $      | 17,063     |   | $           | 0       |                            | $      | 0      |   | $ | (17,063 | ) | $ | 0 |   |
| Balance,                December 31, 1998                              |   |                        | 17,062,500 |    | $      | 17,063     |   | $           | 0       |                            | $      | 0      |   | $ | (17,063 | ) | $ | 0 |   |
| Balance,                December 31, 1999                              |   |                        | 17,062,500 |    | $      | 17,063     |   | $           | 0       |                            | $      | 0      |   | $ | (17,063 | ) | $ | 0 |   |
| Contributed                Capital                                     |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   | 1,025 |   |   | 1,025 |   |
| Net                loss, December 31, 2000                             |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   | (1,025 | ) |   | (1,025 | ) |
| Balance,                December 31, 2000                              |   |                        | 17,062,500 |    | $      | 17,063     |   | $           | 1,025   |                            | $      | 0      |   | $ | (17,063 | ) | $ | 0 |   |
| Issuance                of common stock; April 19,                     |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
|     2001,                at $0.001708 per share    |   |                        | 6,250,000  |    |   | 6,250      |   |        |    |                            |   |   |   |   | (5,823 | ) |   | 427 |   |
| Issuance                of common stock; June 21,                      |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
|     2001,                at $0.001708 per share    |   |                        | 8,750,000  |    |   | 8,750      |   |        |    |                            |   |   |   |   | (8,152  | )  |   | 598  |   |
| Net                loss, December 31, 2001                             |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   | (1,025 | ) |   | (1,025 | ) |
| Balance,                December 31, 2001                              |   |                        | 32,062,500 |    | $      | 32,063     |   | $           | 0       |                            | $      | 0      |   | $ | (32,063 | ) | $ | 0 |   |
| Balance,                December 31, 2002                              |   |                        | 32,062,500 |    | $      | 32,063     |   | $           | 0       |                            | $      | 0      |   | $ | (32,063 | ) | $ | 0 |   |
| Balance,                December 31, 2003                              |   |                        | 32,062,500 |    | $      | 32,063     |   | $           | 0       |                            | $      | 0      |   | $ | (32,063 | ) | $ | 0 |   |
| May                24, 2004, forward stock                             |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
|     split                25:1                      |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
| Recapitalization                of common stock                        |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
|     stock                in connection with merger |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
|     ePublishedBooks.com                            |   |                        | 5,949,300  |    |   | 5,949      |   |        | 24,205  |                            |   |   |   |   | (29,563 | ) |   | 591 |   |
| Issuance                of 11,000,000 shares pursuant                  |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
|     to                merger agreement             |   |                        | 11,000,000 |    |   | 11,000     |   |        |    |                            |   |   |   |   |   |   |   | 11,000 |   |
| Issuance                of 1,000,000 to board member                   |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
|     upon                joining board of directors |   |                        | 1,000,000  |    |   | 1,000      |   |        |    |                            |   |   |   |   |   |   |   | 1,000  |   |
| Issuance                of warrants for services                       |   |                        |       |    |   |       |   |        | 432,387 |                            |   |   |   |   |   |   |   | 432,387 |   |
| Contribution                of capital                                 |   |                        |       |    |   |       |   |        | 268     |                            |   |   |   |   |   |   |   | 268 |   |
| Issuance                of 233,000 shares for debt                     |   |                        | 233,000    |    |   | 233        |   |        | 30,067  |                            |   |   |   |   |   |   |   | 30,300 |   |
| Stock                subscribed                                        |   |                        |       |    |   |       |   |        |    |                            |   | 20,000 |   |   |   |   |   | 20,000 |   |
| Net                loss, December 31, 2004                             |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   | (481,080 | ) |   | (481,080 | ) |
|                                                                   |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |
| Balance,                December 31, 2004                              |   |                        | 50,244,800 |    | $      | 50,245     |   | $           | 486,927 |                            | $      | 20,000 |   | $ | (542,706 | ) | $ | 14,466 |   |
|                                                                   |   |                        |       |    |   |       |   |        |    |                            |   |   |   |   |   |   |   |   |   |

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP. **

**(A      Development Stage Enterprise)**

**STATEMENTS      OF STOCKHOLDERS’ EQUITY**

|                                                    |   |                        |       |    |   |       |   |        |      | Accumulated                     |   |    |   |
|---------------------------------------------------------|--------|-----------------------------|------------|---------|--------|------------|--------|-------------|-----------|---------------------------------|--------|---------|--------|
|                                                    |   |                        |       |    |   | Additional |   | Common      |      | (Deficit)                During |   |    |   |
|                                                    |   | Common                Stock |       | Paid-In |   | Stock      |   | Development |      |                            |   |
|                                                    |   | Shares                      |       | Amount  |   | Capital    |   | Subscribed  |      | Stage                           |   | Total   |   |
|                                                    |   |                        |       |    |   |       |   |        |      |                            |   |    |   |
|                                                    |   |                        |       |    |   |       |   |        |      |                            |   |    |   |
| Balance,                December 31, 2004               |   |                        | 50,244,800 |    | $      | 50,245     |   | $           | 486,927   |                            | $      | 20,000  |   | $ | (542,706 | ) | $ | 14,466 |   |
|                                                    |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   |   |   |   |   |   |
| Issue                subscribed stock                   |   |                        | 33,334     |    |   | 33         |   |        | 19,967    |                            |   | (20,000 | )      |   |   |   |   | -- |   |
| Stock                subscribed                         |   |                        | 333,334    |    |   | 333        |   |        | 49,667    |                            |   |    |   |   |   |   |   | 50,000 |   |
| Stock                subscribed in settlement of        |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   |   |   |   |   |   |
|     accounts                payable |   |                        | 119,520    |    |   | 120        |   |        | 17,809    |                            |   |    |   |   |   |   |   | 17,929 |   |
| Stock                issued for services                |   |                        | 1,852,557  |    |   | 1,853      |   |        | 1,005,647 |                            |   |    |   |   |   |   |   | 1,007,500 |   |
| Stock                issued, net of acquisition fees    |   |                        | 2,069,697  |    |   | 2,069      |   |        | 467,911   |                            |   |    |   |   |   |   |   | 469,980 |   |
| Net                loss, December 31, 2005              |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   | (1,287,265 | ) |   | (1,287,265 | ) |
|                                                    |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   |   |   |   |   |   |
| Balance,                December 31, 2005               |   |                        | 54,653,242 |    | $      | 54,653     |   | $           | 2,047,928 |                            | $      | --      |   | $ | (1,829,971 | ) | $ | 272,610 |   |
|                                                    |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   |   |   |   |   |   |
| Stock                issued                             |   |                        | 120,001    |    |   | 120        |   |        | 17,880    |                            |   |    |   |   |   |   |   | 18,000 |   |
| Stock                issued for services                |   |                        | 435,786    |    |   | 436        |   |        | 149,564   |                            |   |    |   |   |   |   |   | 150,000 |   |
| Net                loss, March 31, 2006                 |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   | (245,164 | ) |   | (245,164 | ) |
|                                                    |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   |   |   |   |   |   |
| Balance,                March 31, 2006                  |   |                        | 55,209,029 |    | $      | 55,209     |   | $           | 2,215,372 |                            | $      | --      |   | $ | (2,075,135 | ) | $ | 195,446 |   |
|                                                    |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   |   |   |   |   |   |
|                                                    |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   |   |   |   |   |   |

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP. **

**(A      Development Stage Enterprise)**

**STATEMENTS      OF CASH FLOWS**

|                                                                                                     |   |                              |        |                          |   | Aug.                8, 1990 |   |
|----------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-------------|-------------------------------|--------|-----------------------------|--------|
|                                                                                                     |   | Three                months ended |        | (inception)                to |   |
|                                                                                                     |   | March                31,          |        | March                31,      |   |
|                                                                                                     |   | 2006                              |        | 2005                          |   | 2006                        |   |
|                                                                                                     |   | (Unaudited)                       |        |                          |   | (Unaudited)                 |   |
|                                                                                                     |   |                              |        |                          |   |                        |   |
| Cash                Flows From Operating Activities                                                      |   |                              |        |                          |   |                        |   |   |   |   |
|     Net                loss                                                          |   | $                                 | (245,164    | )                             | $      | (45,712                     | )      | $ | (2,019,059 | ) |
| Adjustments                to reconcile net loss to cash used in                                         |   |                              |        |                          |   |                        |   |   |   |   |
|     operating                activities:                                             |   |                              |        |                          |   |                        |   |   |   |   |
|     Depreciation                and amortization                                     |   |                              | 3,089       |                          |   | 1,500                       |   |   | 16,635 |   |
|     Stock                based expenses                                              |   |                              | 150,000     |                          |   | --                          |   |   | 1,432,387 |   |
|     Stock                based compensation                                          |   |                              | 52,500      |                          |   | --                          |   |   | 65,500 |   |
|     Interest                expense paid by stock                                    |   |                              | --          |                          |   | --                          |   |   | 300 |   |
| Changes                in assets and liabilities                                                         |   |                              |        |                          |   |                        |   |   |   |   |
|     Increase                in                accounts receivable                    |   |                              | 1,003       |                          |   | --                          |   |   | -- |   |
|     Increase                in                other receivable                       |   |                              | --          |                          |   | --                          |   |   | (101,964 | ) |
|     Increase                in                inventory                              |   |                              | (22,613     | )                             |   | (2,356                      | )      |   | (113,870 | ) |
|     Increase                in                prepaid expenses                       |   |                              | (2,420      | )                             |   | (2,629                      | )      |   | (5,405 | ) |
|     Increase                in                deposits                               |   |                              | --          |                          |   | --                          |   |   | (2,889 | ) |
|     Increase                in                customer deposits                      |   |                              | --          |                          |   | --                          |   |   | 4,000 |   |
|     Increase                in                accounts payable and                   |   |                              |        |                          |   |                        |   |   |   |   |
|     accrued                liabilities                                               |   |                              | 38,029      |                          |   | 17,398                      |   |   | 172,341 |   |
|         Net                cash used in operating activities     |   | $                                 | (25,576     | )                             | $      | (31,799                     | )      | $ | (522,024 | ) |
|                                                                                                     |   |                              |        |                          |   |                        |   |   |   |   |
| Cash                Flows From Investing Activities                                                      |   |                              |        |                          |   |                        |   |   |   |   |
|     Purchase                of                fixed assets                           |   | $                                 | --          |                          | $      | --                          |   | $ | (38,674 | ) |
|     Purchase                of                intangible asset                       |   |                              | --          |                          |   | --                          |   |   | (30,000 | ) |
|     Acquisitions,                net of cash acquired                                |   |                              | --          |                          |   | --                          |   |   | 591 |   |
|         Net                cash used in investing activities     |   | $                                 | --          |                          | $      | --                          |   | $ | (68,083 | ) |
|                                                                                                     |   |                              |        |                          |   |                        |   |   |   |   |
| Cash                Flows From Financing Activities                                                      |   |                              |        |                          |   |                        |   |   |   |   |
|     Issuance                of                common stock                           |   | $                                 | 18,000      |                          | $      | 50,000                      |   | $ | 561,505 |   |
|     Proceeds                from                notes payable                        |   |                              | --          |                          |   | --                          |   |   | 49,876 |   |
|     Loan                from officer                                                 |   |                              | 7,500  |                          |   | --                          |   |   | 7,500 |   |
|     Contribution                of                capital                            |   |                              | --          |                          |   | --                          |   |   | 1,293 |   |
|         Net                cash provided by financing activities |   | $                                 | 25,500      |                          | $      | 50,000                      |   | $ | 620,174 |   |
|                                                                                                     |   |                              |        |                          |   |                        |   |   |   |   |
|         Net                increase in cash                      |   | $                                 | (76         | )                             | $      | 18,201                      |   | $ | 67 |   |
| Cash,                beginning of period                                                                 |   | $                                 | 143         |                          | $      | 2,519                       |   | $ | -- |   |
|                                                                                                     |   |                              |        |                          |   |                        |   |   |   |   |
| Cash,                end of period                                                                       |   | $                                 | 67          |                          | $      | 20,720                      |   | $ | 67 |   |
|                                                                                                     |   |                              |        |                          |   |                        |   |   |   |   |
| Supplemental                Information and Non-monetary Transactions:                                   |   |                              |        |                          |   |                        |   |   |   |   |
| Interest                paid                                                                             |   | $                                 | --          |                          | $      | --                          |   | $ | 757 |   |
| Taxes                paid                                                                                |   | $                                 | --          |                          | $      | --                          |   | $ | -- |   |
| Stock                issued in settlement of accounts payable,                                           |   |                              |        |                          |   |                        |   |   |   |   |
| 119,520                shares                                                                            |   | $                                 | --          |                          | $      | 17,929                      |   | $ | 17,929 |   |
| Warrants                issued for distribution rights agreement                                         |   | $                                 | --          |                          | $      | --                          |   | $ | 432,387 |   |
| Stock                issued for advertising services, 1,838,343 shares                                   |   | $                                 | 150,000     |                          | $      | --                          |   | $ | 1,000,000 |   |
| Stock                issued for debt 233,000 shares at $0.13                                             |   | $                                 | --          |                          | $      | --                          |   | $ | 30,300 |   |
| Stock                issued for directors fees 450,000 shares                                            |   | $                                 | --          |                          | $      | --                          |   | $ | 157,500 |   |

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP. **

**(FKA      MOSAIC NUTRICEUTICALS, CORP.)**

**(A      Development Stage Enterprise)**

**NOTES      TO FINANCIAL STATEMENTS**

**Note      1.    **
**Basis      of Presentation**

**Note      2.    **
**Going      Concern**

**Note      3.      **
**Recent      Accounting Pronouncements**

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP. **

**(FKA      MOSAIC NUTRICEUTICALS, CORP.)**

**(A      Development Stage Enterprise)**

**NOTES      TO FINANCIAL STATEMENTS**

**Note      4.       **
**Notes      Payable**

| Notes                payable consist of the following:                  |   | March                31, |   | December                31, |   |
|-------------------------------------------------------------------------|--------|--------------------------|--------|-----------------------------|--------|
|                                                                    |   | 2006                     |   | 2005                        |   |
| Notes                payable, at 8% interest, due                       |   |                     |   |                        |   |   |   |
|     November                19,                2005 |   | $                        | 10,000 |                        | $      | 10,000 |   |
| Notes                payable, at 8% interest, due                       |   |                     |   |                        |   |   |   |
|     September                7,                2005 |   |                     | 9,876  |                        |   | 9,876 |   |
|                                                                    |   |                     |   |                        |   |   |   |
| Short                term notes payable                                 |   | $                        | 19,876 |                        | $      | 19,876 |   |

**Note      5.      **
**Stockholders’      Equity**

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP. **

**(FKA      MOSAIC NUTRICEUTICALS, CORP.)**

**(A      Development Stage Enterprise)**

**NOTES      TO FINANCIAL STATEMENTS**

**Note      6.         **
**Commitments      and Contingencies**

| 2006                                                  |   |   | 26,001  |   |
|-------------------------------------------------------|--------|--------|---------|--------|
| 2007                                                  |   |   | 34,668  |   |
| 2008                                                  |   |   | 34,668  |   |
| 2009                                                  |   |   | 34,668  |   |
| 2010                and thereafter                    |   |   | 14,445  |   |
| Total                future minimum lease commitments |   | $      | 104,004 |   |

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***Table          of Contents***

**Item      2.** **Management’sDiscussion      and Analysis or Plan of      Operation.**

** **

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***Table          of Contents***

** **
** **

**Item      3.** **Controlsand      Procedures.**

**PART      II**

**OTHER      INFORMATION**

**Item      1.** **Legal      Proceedings.**

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***Table          of Contents***

**Item      2.** **UnregisteredSales      of Equity Securities and Use of      Proceeds.**

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***Table          of Contents***

**Item      6.** **Exhibitsand      Reports on Form 8-K**
**.**

| Exhibit                No. | Description                of Document                                                                                                                                                                                                                                                                |
|----------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    2        | Plan                of Merger and Agreement and Plan of Reorganization of Westchester                Group,                Inc., a Nevada corporation into ePublishedbooks.com, a Nevada corporation,                as the surviving corporation*                                                    |
|             |                                                                                                                                                                                                                                                                                                  |
|    3.1      | Articles                of Incorporation of ePublishedbooks.com filed March 14,                2000*                                                                                                                                                                                             |
|                       |                                                                                                                                                                                                                                                                                                  |
|    3.2      | Articles                of Merger (pursuant to Nevada Revised Statutes Chapter 92A) filed                May 24,                2004*                                                                                                                                                                 |
|                       |                                                                                                                                                                                                                                                                                                  |
|    3.3      | Continuation                of Articles of Merger (Pursuant to NRS Chapter 92A) By and Between                Westchester Group, Inc. into ePublishedbooks.com and Amendment to                the                Articles of Incorporation of ePublishedbooks.com filed May 24,                2004* |
|                       |                                                                                                                                                                                                                                                                                                  |
|    3.4      | Certificate                of Amendment to Articles of Incorporation For Nevada Profit Corporations                filed February 15, 2005*                                                                                                                                                      |
|                       |                                                                                                                                                                                                                                                                                                  |
|    3.5      | By-laws                of ePublishedbooks.com dated as of March 14, 2000*                                                                                                                                                                                                                        |
|                       |                                                                                                                                                                                                                                                                                                  |
|    3.6      | Amended                and Restated Bylaws of Mosaic Nutraceuticals Corp. effective as of                September 23, 2005**                                                                                                                                                                         |
|                       |                                                                                                                                                                                                                                                                                                  |
|  10.1                 | Memorandum                of Understanding (“MOU”) with Global Media Fund, LLC (“GMF”), dated                April 8, 2005*                                                                                                                                              |
|                       |                                                                                                                                                                                                                                                                                                  |
|  10.2                 | Media                Due Bill in the amount of One Million Dollars ($1,000,000) dated                April 8, 2005*                                                                                                                                                                              |
|                       |                                                                                                                                                                                                                                                                                                  |
|  10.3                 | International                Distributor Agreement with AHB Trading Limited, S.A. dated                September 13, 2004*                                                                                                                                                                       |
|                       |                                                                                                                                                                                                                                                                                                  |
|  10.4                 | Munning                Trading Co. exclusive marketing rights letter agreement dated                October 6, 2004*                                                                                                                                                                             |
|                       |                                                                                                                                                                                                                                                                                                  |
|  10.5                 | International                Marketing Agreement with C & H Marketing, Inc. dated July 12,                2004*                                                                                                                                                                              |
|                       |                                                                                                                                                                                                                                                                                                  |
|  10.6                 | Service                Agreement with BJC Marketing dated June 23, 2005*                                                                                                                                                                                                                         |
|                       |                                                                                                                                                                                                                                                                                                  |
|  10.7                 | Office                Lease Agreement between PHL-OPCO, LP, as Landlord and Mosaic                Nutraceuticals Corp., as Tenant*                                                                                                                                                                    |
|                       |                                                                                                                                                                                                                                                                                                  |
|  10.8                 | Correspondence                dated February 21, 2005 to Munning Trading Co. regarding product                pricing***                                                                                                                                                                              |
|                       |                                                                                                                                                                                                                                                                                                  |
|  31.1                 | Certification                of Principal Executive                Officer****                                                                                                                                                                                                                        |
|                       |                                                                                                                                                                                                                                                                                                  |
|  31.2                 | Certification                of Principal Financial                Officer****                                                                                                                                                                                                                        |
|                       |                                                                                                                                                                                                                                                                                                  |
|  32                   | Certification                pursuant to 18 U.S.C. Section                1350****                                                                                                                                                                                                                    |
|                       |                                                                                                                                                                                                                                                                                                  |
| *                          | Incorporated                by reference to the corresponding exhibits filed with Mosaic’s Form 10-SB                filed on July 13, 2005                                                                                                                                                     |
| **                         | Incorporated                herein by reference to the Company’s Form 8-K filed on November 3,                2005                                                                                                                                                                              |
| ***                        | Incorporated                by reference to the corresponding exhibits filed with Mosaic’s Form 10-SB                Amendment No. 2 filed on December 29, 2005                                                                                                                                 |
| ****                       | Filed                herewith                                                                                                                                                                                                                                                                         |

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**SIGNATURES**

| DATE:                May 15, 2006 | MOSAIC                NUTRACEUTICALS CORP.                                                                                                                                                                                                                                                                                                |
|-----------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                              |         (Registrant)                                                                                                                                                                                                                                                                              |
|                              |                                                                                                                                                                                                                                                                                                                                      |
|                              |                                                                                                                                                                                                                                                                                                                                      |
|                              | BY:/s/                Charles                Townsend                                               |
|                              | CHARLES                TOWNSEND                                                                                                                                                                                                                                                                                                           |
|                              | PRESIDENT,                CHIEF EXECUTIVE OFFICER, AND                                                                                                                                                                                                                                                                                    |
|                              | PRINCIPAL                FINANCIAL OFFICER                                                                                                                                                                                                                                                                                                |

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