UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-QSB/A

(Amendment No. 1)

(Mark One)

|x | QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|- | ---------------------------------------------------------------------------------

For the quarterly period ended: September 30, 2007



| ̈ | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
|- | ---------------------------------------------------------------

For the transition period from  to

Commission File Number: 000-52029

PLATINUM RESEARCH ORGANIZATION, INC.

(Exact name of small business issuer as specified in its charter)



|                                                               |  |                                  
|-------------------------------------------------------------- |  | ---------------------------------
|Delaware                                                       |  | 20-2842514                       
|(State or other jurisdiction of incorporation or organization) |  | (IRS Employer Identification No.)
|                                                               | 
|2777 Stemmons Freeway, Suite 1440, Dallas Texas                |  | 75207                            
|(Address of principal executive offices)                       |  | (Zip code)                       

Issuers telephone number: (214) 271-9503

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

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

State the
number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date:

75,000,000 shares
of common stock issued and outstanding as of March 28, 2008

Transitional Small Business Disclosure Format (Check
one):    Yes   ̈    No  x









---

EXPLANATORY NOTE

This Form 10-QSB/A is being filed by Platinum Research Organization, Inc. (the Company) to amend its Quarterly Report on Form 10-QSB for the fiscal quarter ended September 30, 2007 (the Report)
that was filed with the Securities and Exchange Commission on November 13, 2007. For the readers convenience, this Amendment No. 1 includes all Items included in the Report, even those not amended by this Amendment No. 1. The information
contained in this Amendment No. 1 does not reflect events occurring after the filing of the Report except those required to reflect the effects of the restatement of the Companys financial statements for the periods presented or as deemed
necessary in connection with the completion of the Companys restated financial statements. Changes from the original to the amended filing include: (i) amendments to the Companys financial statements in Item 1 to address the
Companys accounting for its shares of Series A Preferred Stock and the cancellation and reissuance of stock options; (ii) amendments to Managements Discussion and Analysis or Plan of Operation in Item 2; and (iii)
modifications of managements evaluation of the effectiveness of the Companys disclosure controls and procedures in Item 3. In addition, this Amendment No. 1 includes updated certifications from the Companys Chief Executive Officer
and Chief Financial Officer as Exhibits 31.1, 31.2 and 32.1.

TABLE OF CONTENTS



|                                                                                                             |  |         
|------------------------------------------------------------------------------------------------------------ |  | --------
|                                                                                                             |  | Page No.
|NOTE CONCERNING FORWARD-LOOKING INFORMATION                                                                  |  | 1       
|                                                                                                             | 
|PART I: FINANCIAL INFORMATION                                                                                |  | 1       
|                                                                                                             | 
|Item 1.
Financial Statements (unaudited)                                                                     |  | 1       
|Consolidated Balance Sheets as of September 30, 2007 and December 31, 2006                                   |  | 3       
|Consolidated Statements of Operations for the Three and Nine-Month Periods Ended September 30, 2007 and 2006 |  | 4       
|Consolidated Statements of Cash Flows for the Nine-Month Periods Ended September 30, 2007 and 2006           |  | 5       
|Consolidated Statements of Changes in Shareholders Equity                                                   |  | 6       
|Notes to Consolidated Financial Statements                                                                   |  | 7       
|Item 2.
Managements Discussion and Analysis or Plan of Operation                                            |  | 19      
|Item 3.
Controls and Procedures                                                                              |  | 25      
|                                                                                                             | 
|PART II: OTHER INFORMATION                                                                                   |  | 27      
|                                                                                                             | 
|Item 6.
Exhibits                                                                                             |  | 27      
|                                                                                                             | 
|SIGNATURES                                                                                                   |  | 28      
|                                                                                                             | 
|EXHIBIT INDEX                                                                                                |  | 29      



---

NOTE CONCERNING FORWARD-LOOKING INFORMATION

The statements contained in this Form 10-QSB that are not purely
historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These include statements about our expectations, beliefs, intentions or
strategies for the future, which are indicated by words or phrases such as anticipate, expect, intend, plan, will, believe, management believes and similar words or
phrases. The forward-looking statements are based on our current expectations and are subject to certain risks, uncertainties and assumptions. Our actual results could differ materially from results anticipated in these forward-looking statements.
All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements.

PART I - FINANCIAL INFORMATION



|Item 1. | Financial Statements
|------- | --------------------

The interim financial
statements included herein are unaudited but reflect, in managements opinion, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of financial position and the results of our operations for the
interim periods presented.

The interim financial statements should be read in conjunction with the financial statements of Platinum
Research Organization, Inc. (the Company) and the notes thereto contained in the Companys audited financial statements for the year ended December 31, 2006 presented in the Annual Report on Form 10-KSB that was filed with the
Securities and Exchange Commission (the SEC) on March 23, 2007.

Interim results are not necessarily indicative of results
for the full fiscal year.

The unaudited consolidated financial statements presented in this Amendment No. 1 to Quarterly Report on Form
10-QSB/A restate the unaudited consolidated financial statements of the Company contained in the Companys Quarterly Report on Form 10-QSB originally filed with the Securities and Exchange Commission (SEC) on November 13, 2007.

On March 24, 2008, the Audit Committee of the Companys Board of Directors determined that the Companys previously issued
unaudited financial statements for the three and nine months ended September 30, 2007 (the Financial Statements) contained errors in accounting with respect to the Companys issuance of its shares of Series A Preferred
Stock (Series A Preferred) on April 18, 2007 and errors in accounting with respect to the cancellation and reissuance of stock options on April 18, 2007. As a result, the Audit Committee, in consultation with management and the
Companys independent registered public accounting firm, concluded that the Companys unaudited financial statements included in the Form 10-QSB for the period ended September 30, 2007 should no longer be relied upon and should be
restated.

The Company previously classified the 5,000,000 shares of Series A Preferred issued on April 18, 2007 as components of
Shareholders Equity. Since the Certificate of Designation for these shares contains a mandatory redemption date, the Company has determined these shares should be reclassified as a long-term liability in accordance with SFAS 150. The
correction of this error has resulted in the Series A Preferred being reflected as a long-term liability on the Companys Balance Sheet. The correction of this error increased interest expense and net loss by $45,370 and $81,370 for the three
and nine months ended September 30, 2007, respectively. The correction also increased the long-term liability by $81,370 as of September 30, 2007. The recognition of this item did not affect the cash balance of the Company.

The Company also did not properly calculate or record the intrinsic value of the Beneficial Conversion Feature contained in the Series A Preferred. The
shares of Series A Preferred are convertible into shares of the Companys common stock at a value less than the fair market value of the underlying common stock when the shares of Series A Preferred were issued on April 18, 2007. In accordance
with EITF 98-5, this price differential generated a Beneficial Conversion Feature and has resulted in a discount of $4,500,000 offsetting the long-term liability for the Series A Preferred shares and a $4,500,000 increase in additional paid-in
capital at the issuance date of the Series A Preferred shares. Additionally, in accordance with EITF 00-27, the discount will be accreted to interest expense over the five-year period from the issuance date to the mandatory redemption date of the
Series A Preferred shares, resulting in a reduction of the long term liability discount and an increase in interest expense over this five-year period. The correction of this error increased interest expense and increased net loss by $226,849 and
$406,849 for the three and nine months ended September 30, 2007, respectively. The correction of this error also reduced the Beneficial Conversion Discount by $406,849 as of September 30, 2007. The recognition of this item did not affect the cash
balance of the Company.



1



---

The Company also identified an error in the calculation of compensation cost for the three and six
months ended June 30, 2007. On April 18, 2007, options for 3,116,428 shares of the Companys common stock were issued at an exercise price of $1.35. Although the cancellation and reissuance of the stock options was previously disclosed in the
financial statements, the additional compensation cost was not recorded in the financial statements for the period ended September 30, 2007. Recognizing the additional compensation expense resulted in increased salary expense and an increased net
loss of $157,929 and $249,360, respectively, for the three and nine months ended September 30, 2007. The recognition of this item did not affect the cash balance of the Company.

See Note 2 to the Notes to Consolidated Financial Statements for a discussion regarding the impact of the restatements on the Financial Statements.



2



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Consolidated Balance Sheets

(Unaudited)



|                                                                |  |              |            |   |              |   |           |  
|--------------------------------------------------------------- |  | ------------ | ---------- | - | ------------ | - | --------- | -
|                                                                |  | Sep 30, 2007 |            |   | Dec 31, 2006 |  
|                                                                |  | (Restated)   |            |   |              |  
|Assets                                                          |  |              |            |   |              |   |           |  
|Current Assets                                                  |  |              |            |   |              |   |           |  
|Cash  unrestricted                                             |  | $            | 2,395,623  |   |              | $ | 211,778   |  
|Cash-Restricted                                                 |  |              | 1,585,598  |   |              |   | 1,527,389 |  
|                                                                |  |              |            |   |              |   |           |  
|Total Cash                                                      |  |              | 3,981,221  |   |              |   | 1,739,167 |  
|Accounts Receivable                                             |  |              | 3,738      |   |              |   | 3,301     |  
|                                                                |  |              |            |   |              |   |           |  
|Total Current Assets                                            |  |              | 3,984,959  |   |              |   | 1,742,468 |  
|Property, Plant and Equipment - Net of accumulated depreciation |  |              | 77,364     |   |              |   | 1,402     |  
|Other Assets                                                    |  |              |            |   |              |   |           |  
|Loan Issuance Costs - Net of accumulated amortization           |  |              | 199,237    |   |              |   | 327,254   |  
|Intellectual Property - Net of accumulated amortization         |  |              | 3,538,566  |   |              |   | 3,698,207 |  
|Intellectual Property - non amortizable                         |  |              | 193,843    |   |              |   | 133,490   |  
|                                                                |  |              |            |   |              |   |           |  
|Total Other Assets                                              |  |              | 3,931,646  |   |              |   | 4,158,951 |  
|                                                                |  |              |            |   |              |   |           |  
|Total Assets                                                    |  | $            | 7,993,969  |   |              | $ | 5,902,821 |  
|                                                                |  |              |            |   |              |   |           |  
|Liabilities and Shareholders Equity                            |  |              |            |   |              |   |           |  
|Current Liabilities                                             |  |              |            |   |              |   |           |  
|Accounts Payable                                                |  | $            | 83,070     |   |              | $ | 134,187   |  
|Accrued Interest                                                |  |              | 70,000     |   |              |   | 70,000    |  
|Preferred Dividend Payable                                      |  |              | 206,199    |   |              |   |          |  
|                                                                |  |              |            |   |              |   |           |  
|Total Current Liabilities                                       |  |              | 359,269    |   |              |   | 204,187   |  
|Long Term Debt                                                  |  |              | 6,000,000  |   |              |   | 6,000,000 |  
|Long Term Liabilities                                           |  |              |            |   |              |   |           |  
|Mandatorily Redeemable Preferred Stock                          |  |              | 4,500,000  |   |              |   |          |  
|Preferred Stock, Beneficial Conversion Discount                 |  |              | (4,093,151 | ) |              |   |          |  
|Preferred Stock, Discount on Convertible Liability              |  |              | 81,370     |   |              |   |          |  
|                                                                |  |              |            |   |              |   |           |  
|Total Long Term Liabilities                                     |  |              | 488,219    |   |              |   |          |  
|                                                                |  |              |            |   |              |   |           |  
|Shareholders Equity                                            |  |              | 1,146,481  |   |              |   | (301,366  | )
|                                                                |  |              |            |   |              |   |           |  
|Total Liabilities and Shareholders Equity                      |  | $            | 7,993,969  |   |              | $ | 5,902,821 |  
|                                                                |  |              |            |   |              |   |           |  

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



3



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Consolidated Statements of Operations

(Unaudited)



|                                                                         |  |                    |             |   |              |   |            |                   |         |   |              |         |  |                                       |            |            |  |   |            |            |  |   |             |   |  |   |            |  
|------------------------------------------------------------------------ |  | ------------------ | ----------- | - | ------------ | - | ---------- | ----------------- | ------- | - | ------------ | ------- |  | ------------------------------------- | ---------- | ---------- |  | - | ---------- | ---------- |  | - | ----------- | - |  | - | ---------- | -
|                                                                         |  | Three Months Ended |             |   | Incr/ (Decr) |   |            | Nine Months Ended |         |   | Incr/ (Decr) |         |  | For the Period From Date of Inception |           
|                                                                         |  | 9/30/07            |             |   | 9/30/06      |   |            |                   | 9/30/07 |   |              | 9/30/06 |  |                                       |            | to 9/30/07 | 
|                                                                         |  | (Restated)         |             |   |              |   |            |                   |         |   | (Restated)   |         |  |                                       |            |            |  |   |            | (Restated) | 
|Sales                                                                    |  | $                  |            |   |              | $ |           |                   |         | $ |             |         |  | $                                     |           |            |  | $ |           |            |  | $ |            |   |  | $ |           |  
|Cost of Goods Sold                                                       |  |                    |            |   |              |   |           |                   |         |   |             |         |  |                                       |           |            |  |   |           |            |  |   |            |   |  |   |           |  
|Gross Profit                                                             |  |                    |            |   |              |   |           |                   |         |   |             |         |  |                                       |           |            |  |   |           |            |  |   |            |   |  |   |           |  
|Selling General and Administrative Expenses                              |  |                    |             |   |              |   |            |                   |         |   |              |         |  |                                       |            |            |  |   |            |            |  |   |             |   |  |   |            |  
|Salaries                                                                 |  |                    | 349,538     |   |              |   | 73,132     |                   |         |   | 276,406      |         |  |                                       | 716,013    |            |  |   | 218,685    |            |  |   | 497,328     |   |  |   | 1,512,484  |  
|Travel                                                                   |  |                    | 17,547      |   |              |   | 18,328     |                   |         |   | (781         | )       |  |                                       | 86,787     |            |  |   | 68,932     |            |  |   | 17,855      |   |  |   | 310,452    |  
|Product Evaluation / Technical Support                                   |  |                    | 156,570     |   |              |   | 31,375     |                   |         |   | 125,195      |         |  |                                       | 265,546    |            |  |   | 104,125    |            |  |   | 161,421     |   |  |   | 653,472    |  
|Outside Legal and Professional Fees                                      |  |                    | 250,921     |   |              |   | 89,163     |                   |         |   | 161,758      |         |  |                                       | 777,042    |            |  |   | 233,458    |            |  |   | 543,584     |   |  |   | 1,707,007  |  
|Contribution Agreement Related Costs                                     |  |                    |            |   |              |   |           |                   |         |   |             |         |  |                                       | 339,783    |            |  |   |           |            |  |   | 339,783     |   |  |   | 339,783    |  
|Insurance                                                                |  |                    | 18,806      |   |              |   | 12,696     |                   |         |   | 6,110        |         |  |                                       | 96,842     |            |  |   | 38,291     |            |  |   | 58,551      |   |  |   | 264,872    |  
|Rent                                                                     |  |                    | 6,081       |   |              |   | 6,503      |                   |         |   | (422         | )       |  |                                       | 29,364     |            |  |   | 17,342     |            |  |   | 12,022      |   |  |   | 101,789    |  
|Other                                                                    |  |                    | 41,229      |   |              |   | 5,156      |                   |         |   | 36,073       |         |  |                                       | 77,549     |            |  |   | 18,849     |            |  |   | 58,700      |   |  |   | 169,332    |  
|                                                                         |  |                    |             |   |              |   |            |                   |         |   |              |         |  |                                       |            |            |  |   |            |            |  |   |             |   |  |   |            |  
|Total SG&A                                                               |  |                    | 840,692     |   |              |   | 236,353    |                   |         |   | 604,339      |         |  |                                       | 2,388,926  |            |  |   | 699,682    |            |  |   | 1,689,244   |   |  |   | 5,059,191  |  
|Depreciation and Amortization                                            |  |                    | 84,065      |   |              |   | 122,231    |                   |         |   | (38,166      | )       |  |                                       | 329,420    |            |  |   | 365,671    |            |  |   | (36,251     | ) |  |   | 1,540,474  |  
|Other Income                                                             |  |                    | 62,046      |   |              |   | 27,998     |                   |         |   | 34,048       |         |  |                                       | 150,076    |            |  |   | 99,791     |            |  |   | 50,285      |   |  |   | 416,618    |  
|Interest Expense                                                         |  |                    | 482,219     |   |              |   | 210,000    |                   |         |   | 272,219      |         |  |                                       | 1,143,013  |            |  |   | 630,000    |            |  |   | 513,013     |   |  |   | 3,368,747  |  
|                                                                         |  |                    |             |   |              |   |            |                   |         |   |              |         |  |                                       |            |            |  |   |            |            |  |   |             |   |  |   |            |  
|Net Loss Before Taxes                                                    |  |                    | (1,344,930  | ) |              |   | (540,586   | )                 |         |   | (532,125     | )       |  |                                       | (3,711,283 | )          |  |   | (1,595,562 | )          |  |   | (31,777,502 | ) |  |   | (9,551,794 | )
|Income Tax - Current                                                     |  |                    |            |   |              |   |           |                   |         |   |             |         |  |                                       |           |            |  |   |           |            |  |   |            |   |  |   |           |  
|Income Tax - Deferred                                                    |  |                    |            |   |              |   |           |                   |         |   |             |         |  |                                       |           |            |  |   |           |            |  |   |            |   |  |   |           |  
|                                                                         |  |                    |             |   |              |   |            |                   |         |   |              |         |  |                                       |            |            |  |   |            |            |  |   |             |   |  |   |            |  
|Net Loss                                                                 |  |                    | (1,344,930  | ) |              |   | (540,586   | )                 |         |   | (804,344     | )       |  |                                       | (3,711,283 | )          |  |   | (1,595,562 | )          |  |   | (2,115,721  | ) |  |   | (9,551,794 | )
|Dividends Declared on Preferred Stock                                    |  |                    | (112,500    | ) |              |   |           |                   |         |   | (112,500     | )       |  |                                       | (206,200   | )          |  |   |           |            |  |   | (206,200    | ) |  |   | (206,200   | )
|                                                                         |  |                    |             |   |              |   |            |                   |         |   |              |         |  |                                       |            |            |  |   |            |            |  |   |             |   |  |   |            |  
|Net Loss Attributed to Common Shareholders                               |  | $                  | (1,457,430  | ) |              | $ | (540,586   | )                 |         | $ | (916,844     | )       |  | $                                     | (3,917,483 | )          |  | $ | (1,595,562 | )          |  | $ | (2,321,921  | ) |  | $ | (9,757,994 | )
|                                                                         |  |                    |             |   |              |   |            |                   |         |   |              |         |  |                                       |            |            |  |   |            |            |  |   |             |   |  |   |            |  
|Per Share Amounts                                                        |  |                    |             |   |              |   |            |                   |         |   |              |         |  |                                       |            |            |  |   |            |            |  |   |             |   |  |   |            |  
|Net Loss                                                                 |  | $                  | (0.01       | ) |              | $ | (0.02      | )                 |         | $ | (0.01        | )       |  | $                                     | (0.05      | )          |  | $ | (0.05      | )          |  |   |            |   |  | $ | (0.27      | )
|Dividends Declared on Preferred Stock                                    |  |                    |            |   |              |   |           |                   |         |   |             |         |  |                                       |           |            |  |   |           |            |  |   |            |   |  |   |           |  
|                                                                         |  |                    |             |   |              |   |            |                   |         |   |              |         |  |                                       |            |            |  |   |            |            |  |   |             |   |  |   |            |  
|Loss per Common Share  Basic                                            |  | $                  | (0.01       | ) |              | $ | (0.02      | )                 |         | $ | 0.01         |         |  | $                                     | (0.05      | )          |  | $ | (0.05      | )          |  |   |            |   |  | $ | (0.27      | )
|                                                                         |  |                    |             |   |              |   |            |                   |         |   |              |         |  |                                       |            |            |  |   |            |            |  |   |             |   |  |   |            |  
|Weighted Average Number of Shares used in per share calculations - Basic |  |                    | 102,500,000 |   |              |   | 32,500,000 |                   |         |   | 70,000,000   |         |  |                                       | 77,335,165 |            |  |   | 29,239,927 |            |  |   | 48,095,238  |   |  |   | 36,684,000 |  

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



4



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Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Consolidated Statements of Cash Flows

(Unaudited)



|                                                                     |  |                         |            |   |                       |   |            |            |  |   |            |  
|-------------------------------------------------------------------- |  | ----------------------- | ---------- | - | --------------------- | - | ---------- | ---------- |  | - | ---------- | -
|                                                                     |  | Nine-Month Period Ended |            |   | Inception to9/30/2007 |  
|                                                                     |  | 9/30/2007               |            |   | 9/30/2006             |   |           
|                                                                     |  | (Restated)              |            |   |                       |   |            | (Restated) | 
|Cash Flow From Operating Activities                                  |  |                         |            |   |                       |   |            |            |  |   |            |  
|Net Loss for the Period                                              |  | $                       | (3,711,283 | ) |                       | $ | (1,595,562 | )          |  | $ | (9,551,794 | )
|Items not requiring Cash                                             |  |                         |            |   |                       |   |            |            |  |   |            |  
|Depreciation and Amortization                                        |  |                         | 329,420    |   |                       |   | 365,671    |            |  |   | 1,540,474  |  
|Option Expense                                                       |  |                         | 364,798    |   |                       |   |           |            |  |   | 364,798    |  
|Interest Expense  Preferred Stock Discount                          |  |                         | 488,219    |   |                       |   |           |            |  |   | 488,219    |  
|Changes in Assets and Liabilities                                    |  |                         |            |   |                       |   |            |            |  |   |            |  
|(Increase) / Decrease in Receivables                                 |  |                         | 94         |   |                       |   | (937       | )          |  |   | (3,207     | )
|Increase / (Decrease) in Payables                                    |  |                         | (51,116    | ) |                       |   | (4,049     | )          |  |   | 83,071     |  
|Increase / (Decrease) in Accrued Interest                            |  |                         |           |   |                       |   |           |            |  |   | 1,167,681  |  
|                                                                     |  |                         |            |   |                       |   |            |            |  |   |            |  
|Net Cash Used in Operating Activities                                |  |                         | (2,579,868 | ) |                       |   | (1,234,877 | )          |  |   | (5,910,758 | )
|                                                                     |  |                         |            |   |                       |   |            |            |  |   |            |  
|Cash Flow From Investing Activities                                  |  |                         |            |   |                       |   |            |            |  |   |            |  
|Purchases of Property, Plant and Equipment                           |  |                         | (77,655    | ) |                       |   | (715       | )          |  |   | (80,628    | )
|Investment in Intellectual Property                                  |  |                         | (100,423   | ) |                       |   | (68,075    | )          |  |   | (347,052   | )
|                                                                     |  |                         |            |   |                       |   |            |            |  |   |            |  
|Net Cash Used in Investing Activities                                |  |                         | (178,078   | ) |                       |   | (68,790    | )          |  |   | (427,680   | )
|                                                                     |  |                         |            |   |                       |   |            |            |  |   |            |  
|Cash Flow From Financing Activities                                  |  |                         |            |   |                       |   |            |            |  |   |            |  
|Net ProceedsLong Term Debt                                          |  |                         |           |   |                       |   |           |            |  |   | 5,550,000  |  
|Preferred Shares Issued for Cash                                     |  |                         | 4,500,000  |   |                       |   |           |            |  |   | 4,500,000  |  
|Funds Received From Previously Controlled Entity                     |  |                         | 500,000    |   |                       |   |           |            |  |   | 500,000    |  
|Loan Costs/Other                                                     |  |                         |           |   |                       |   | (9,879     | )          |  |   | (230,341   | )
|                                                                     |  |                         |            |   |                       |   |            |            |  |   |            |  
|Net Cash Generated From Financing Activities                         |  |                         | 5,000,000  |   |                       |   | (9,879     | )          |  |   | 10,319,659 |  
|                                                                     |  |                         |            |   |                       |   |            |            |  |   |            |  
|Increase (decrease) in cash and cash equivalents                     |  |                         | 2,242,054  |   |                       |   | (1,313,546 | )          |  |   | 3,981,221  |  
|Cash and Cash Equivalents Beginning of Period                        |  |                         | 1,739,167  |   |                       |   | 3,553,211  |            |  |   |           |  
|                                                                     |  |                         |            |   |                       |   |            |            |  |   |            |  
|Cash and Cash Equivalents End of Period                              |  | $                       | 3,981,221  |   |                       | $ | 2,239,665  |            |  | $ | 3,981,221  |  
|                                                                     |  |                         |            |   |                       |   |            |            |  |   |            |  
|Supplemental Disclosures:                                            |  |                         |            |   |                       |   |            |            |  |   |            |  
|Cash Paid During the Period for:                                     |  |                         |            |   |                       |   |            |            |  |   |            |  
|Interest                                                             |  | $                       | 654,794    |   |                       | $ | 630,000    |            |  | $ | 2,880,528  |  
|Income Tax                                                           |  |                         |           |   |                       |   |           |            |  |   |           |  
|Non-Cash Items                                                       |  |                         |            |   |                       |   |            |            |  |   |            |  
|Purchase of Intellectual Property Through the Assumption of Debt     |  |                         |           |   |                       |   |           |            |  | $ | 4,475,789  |  
|Partners Capital Contribution Resulting from the Forgiveness of Debt |  |                         |           |   |                       |   |           |            |  | $ | 5,536,597  |  
|Preferred Dividends                                                  |  | $                       | 206,200    |   |                       |   |           |            |  | $ | 206,200    |  
|Loan Costs Netted Against Proceeds of Loan                           |  |                         |           |   |                       |   |           |            |  | $ | 450,000    |  
|Interest Expense                                                     |  | $                       | 488,219    |   |                       |   |           |            |  | $ | 488,219    |  

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



5



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Consolidated Statements of Changes in Shareholders Equity



|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|------------------------------------------------- |  | ------------------------ | - |  | --------------------------- |  | ---------------------- |  | ------------- | - |  | ------------------------- |  | ------------------------------------------ | - |  | -------------------------------- | - |  | --------- |  | ----------------------------- | - |  | ----------------------------- | -
|                                                  |  | NumberCommonSharesIssued |   |  | NumberPreferredSharesIssued |  | NumberofWarrantsIssued |  | CapitalStock$ |   |  | PreferredStock$(Restated) |  | Paid inCapital andDistributions$(Restated) |   |  | Subscrip-tionsPayable$(Restated) |   |  | Warrants$ |  | DeficitAccumulated$(Restated) |   |  | ShareholdersEquity$(Restated) |  
|Balance at April 28, 2004  Date of Inception     |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Forgiveness of Debt (Note 12)                     |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 5,536,597                                  |   |  |                                  |   |  |           |  |                               |   |  | 5,536,597                     |  
|Capital Contributions                             |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 4,484                                      |   |  |                                  |   |  |           |  |                               |   |  | 4,484                         |  
|Distributions                                     |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | (145                                       | ) |  |                                  |   |  |           |  |                               |   |  | (145                          | )
|Net Loss                                          |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  | (1,347,794                    | ) |  | (1,347,794                    | )
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Balance at December 31, 2004                      |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 5,540,936                                  |   |  |                                  |   |  |           |  | (1,347,794                    | ) |  | 4,193,142                     |  
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Capital Contributions                             |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 1,938                                      |   |  |                                  |   |  |           |  |                               |   |  | 1,938                         |  
|Distributions                                     |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | (4,740                                     | ) |  |                                  |   |  |           |  |                               |   |  | (4,740                        | )
|Net Loss                                          |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  | (2,147,610                    | ) |  | (2,147,610                    | )
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Balance at December 31, 2005                      |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 5,538,134                                  |   |  |                                  |   |  |           |  | (3,495,404                    | ) |  | 2,042,730                     |  
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Capital Contributions                             |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 1,086                                      |   |  |                                  |   |  |           |  |                               |   |  | 1,086                         |  
|Distribution                                      |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | (75                                        | ) |  |                                  |   |  |           |  |                               |   |  | (75                           | )
|Net Loss for period                               |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  | (2,345,107                    | ) |  | (2,345,107                    | )
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Balance at December 31, 2006                      |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 5,539,145                                  |   |  |                                  |   |  |           |  | (5,840,511                    | ) |  | (301,366                      | )
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Capital Contribution                              |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 268                                        |   |  |                                  |   |  |           |  |                               |   |  | 268                           |  
|Earnings Charge for options expense (Note 7)      |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 36,359                                     |   |  |                                  |   |  |           |  |                               |   |  | 36,359                        |  
|Net Loss for period                               |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  | (817,684                      | ) |  | (817,684                      | )
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Balance at March 31, 2007                         |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 5,575,772                                  |   |  |                                  |   |  |           |  | (6,658,195                    | ) |  | (1,082,423                    | )
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Capital contributions cash                        |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 269                                        |   |  |                                  |   |  |           |  |                               |   |  | 269                           |  
|Shares Issued to PRO Transferors (Note 6)         |  | 55,000,000               |   |  |                             |  |                        |  | 55,000        |   |  |                           |  | (55,000                                    | ) |  |                                  |   |  |           |  |                               |   |  |                               |  
|Preferred Equity raised (Note 4)                  |  |                          |   |  | 5,000,000                   |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Warrants Issued to Investa/Pineda (Note 6)        |  |                          |   |  |                             |  | 2,500,000              |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Earnings charge for options expense (Note 7)      |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 136,484                                    |   |  |                                  |   |  |           |  |                               |   |  | 136,484                       |  
|Preferred dividends payable (Note 4)              |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  | (93,700                          | ) |  |           |  |                               |   |  | (93,700                       | )
|Net Loss for Period                               |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  | (1,548,669                    | ) |  | (1,548,669                    | )
|Beneficial conv option  Preferred Stock (Note 4) |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 4,500,000                                  |   |  |                                  |   |  |           |  |                               |   |  | 4,500,000                     |  
|Equity of PRO Inc. at 3/31/2007                   |  | 42,500,000               |   |  |                             |  |                        |  | 42,500        |   |  |                           |  | 435,097                                    |   |  |                                  |   |  |           |  |                               |   |  | 477,597                       |  
|Change in PRO Inc. Equity 3/31-4/18/2007          |  | (22,500,000              | ) |  |                             |  |                        |  | (22,500       | ) |  |                           |  | 44,904                                     |   |  |                                  |   |  |           |  |                               |   |  | 22,404                        |  
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Equity of PRO Inc at 4/18/2007                    |  | 20,000,000               |   |  |                             |  |                        |  | 20,000        |   |  |                           |  | 480,001                                    |   |  |                                  |   |  |           |  |                               |   |  | 500,001                       |  
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Balance at June 30, 2007                          |  | 75,000,000               |   |  | 5,000,000                   |  | 2,500,000              |  | 75,000        |   |  |                           |  | 10,637,526                                 |   |  | (93,700                          | ) |  |           |  | (8,206,864                    | ) |  | 2,411,962                     |  
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Capital Contributions                             |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | (6                                         | ) |  |                                  |   |  |           |  |                               |   |  | (6                            | )
|Distributions                                     |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Preferred Dividend payable (Note 4)               |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  | (112,500                         | ) |  |           |  |                               |   |  | (112,500                      | )
|Earnings charge for options expense (Note 7)      |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  | 191,955                                    |   |  |                                  |   |  |           |  |                               |   |  | 191,955                       |  
|Net Loss for period                               |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  | (1,344,930                    | ) |  | (1,344,930                    | )
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  
|Balance at September 30, 2007                     |  | 75,000,000               |   |  | 5,000,000                   |  | 2,500,000              |  | 75,000        |   |  |                           |  | 10,829,475                                 |   |  | (206,200                         | ) |  |           |  | (9,551,794                    | ) |  | 1,146,481                     |  
|                                                  |  |                          |   |  |                             |  |                        |  |               |   |  |                           |  |                                            |   |  |                                  |   |  |           |  |                               |   |  |                               |  

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



6



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Notes to Consolidated Financial Statements

September 30, 2007



|1. | Nature and Continuance of Operations
|-- | ------------------------------------

Platinum
Research Organization, Inc. (the Company) was incorporated in the State of Nevada on May 13, 2005, under the name NorthTech Corporation. The Company was originally formed to develop, expand and market two web-based database
programs for small business and community sports. The Company completed its initial public offering in March 2006. Efforts to implement this business plan were pursued, but ultimately the web-based software development business was abandoned.

Management reviewed various strategic alternatives, and on October 26, 2006, the Company entered into a Contribution Agreement with
Platinum Research Organization L.P., a Texas limited partnership (Platinum LP), Lubrication Partners, a joint venture and sole shareholder of Platinum IP Management, Inc., the general partner of Platinum LP, each holding a limited
partnership interest in Platinum LP, and Cork Jaeger as the representative of all PRO Transferors and Steve Drayton as the representative of certain individual private placement investors in the Company.

The Company, at the time being NorthTech Corporation, merged with its wholly-owned subsidiary Platinum Research Organization, Inc., a Nevada
corporation (NV Sub), on October 31, 2006, in order to amend its charter documents, change its name to Platinum Research Organization, Inc. and effect a 5-for-1 forward split of its outstanding common stock. On April 13,
2007, the Company completed another merger with its wholly-owned subsidiary, Platinum Research Organization, Inc., a Delaware corporation (DE Sub), to reincorporate the Company in Delaware. The name of the surviving company remained
Platinum Research Organization, Inc., and the certificate of incorporation and bylaws of DE Sub became the certificate of incorporation and bylaws of the Company. Both NV Sub and DE Sub were formed by the Company for the sole purpose of
effecting the aforementioned transactions in preparation for the consummation of the transactions contemplated by the Contribution Agreement. On April 18, 2007, we closed the Contribution Agreement (Note 8), which resulted in our acquisition of
Platinum LP and the appointment of a new slate of directors. As a result of our acquisition of Platinum LP, the Companys new business focus is the design, development and commercialization of patented high-performance lubricants and coatings.

The acquisition of Platinum LP has been accounted for as a reverse acquisition application of the purchase method of accounting by the
Company (formerly known as NorthTech), with Platinum LP treated as the accounting acquirer. Accordingly, the assets and liabilities of the Company (formerly known as NorthTech) have been recorded at their respective historical costs and added to
those of Platinum LP, and the reported results of operations of the Company reflect the historical results of operations of Platinum LP.

The Companys products will be marketed under the trade name TechroBond for automotive,
aviation, industrial and consumer aftermarkets. TechroBondTMis one of a series of product applications Platinum LP developed based on its patented
processes and technologies relating to a fluorinated thiophosphate and a new technique to react zinc dialkyl dithiophosphate (ZDDP) and poly tetra fluroethylene to yield new proprietary compounds that enhance the anti-wear and extreme
pressure capabilities of lubricants and coatings (individually and collectively, the PRO Technology). The resulting compounds have yielded significantly enhanced anti-wear and extreme pressure capabilities when measured in bench
laboratory tests at the University of Texas at Arlington, and, more importantly, suggest that the PRO Technology may be a replacement for ZDDP in engine and lubricating oils. Management believes that this new technology will position the Company to
penetrate several large, global markets for lubricants should the Company be successful in bringing its products that rely upon this new technology to market.

The Company is a development stage enterprise, as defined in Statements of Financial Accounting Standards (SFAS) No. 7. The Company is currently devoting all of its present efforts to
commercialization of its products and technologies. Accordingly, no revenue has been realized to date.

The Companys financial
statements at September 30, 2007 and for the three- and nine-month periods then ended have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal
course of business. The Company incurred a loss of $3,711,283 for the nine -month period ended September 30, 2007 and had cash of $3,981,221 at September 30, 2007.

Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt
and/or equity capital. Management believes that the Companys capital resources should be adequate to continue operating and maintaining its business strategy for the next seven to eight months. However, if the Company is unable to realize
revenue from the



7



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Notes to Consolidated Financial
Statements

September 30, 2007



commercialization of its products or is unable to raise additional capital in the future, management expects that the Company will need to seek additional
capital on less favorable terms and/or pursue other remedial measures. These financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might
be necessary should the Company be unable to continue as a going concern.



|2. | Significant Accounting Policies
|-- | -------------------------------

The following is a
summary of significant accounting policies used in the preparation of these financial statements.

Basis of presentation

The accompanying unaudited interim financial statements have been prepared as of September 30, 2007, and for the three and nine month periods ended
September 30, 2007 and 2006 in accordance with accounting principles generally accepted in the United States of America (GAAP) relating to the preparation of financial statements for interim periods. Accordingly, they do not include all
the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the three and nine-month periods ended September 30, 2007 are not necessarily indicative of the results that may be expected for the year ending December 31, 2007.

These interim financial statements follow the same accounting policies and methods of their application as the most recent annual financial statements.
These interim financial statements should be read in conjunction with the audited financial statements of the Company as at December 31, 2006, as contained in the Companys Form 10-KSB filed with the Securities and Exchange Commission on
March 23, 2007.

Restatements

Subsequent to the Companys issuance of 5,000,000 shares of Series A Preferred Stock (Series A Preferred) in connection with the consummation of the Contribution Agreement on April 18,
2007, the Companys Audit Committee and management concluded that changes were necessary to correct the accounting for the Series A Preferred shares in the financial statements. The Company previously classified the 5,000,000 Series A Preferred
shares issued on April 18, 2007 as components of Shareholders Equity. Since the Certificate of Designation for these shares contains a mandatory redemption date, the Company has determined these shares should be classified as a long-term
liability in accordance with SFAS 150. The correction of this error required the Series A Preferred shares to be reflected as a long-term liability on the Companys Balance Sheet. The long-term liability will be increased by $900,000 over the
five-year period from the issuance date to the mandatory redemption date of the Preferred shares to reflect the 20% redemption premium contained in the Certificate of Designation for the Series A Preferred. The correction of this error increased
interest expense and the net loss by $45,370 and $81,370 respectively for the three and nine months ended September 30, 2007. The correction increased the long-term liability by $81,370 as of September 30, 2007. The recognition of this
item did not affect the cash balance of the Company.



8



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Notes to Consolidated Financial
Statements

September 30, 2007



The Company also did not properly calculate or record the intrinsic value of the Beneficial
Conversion Feature contained in Series A Preferred shares. The Series A Preferred shares are convertible into shares of the Companys stock at a value of $0.18 per common share at the option of the holder, which price was less than the $1.35
fair market value of the underlying common stock when the Series A Preferred shares were issued on April 18, 2007. In accordance with EITF 98-5, this price differential generated a Beneficial Conversion Feature which should have been recognized
as a discount against the long-term liability and is limited to the proceeds received from the issuance of the Series A Preferred shares. The recognition of the Beneficial Conversion Feature resulted in a discount of $4,500,000 offsetting the
long-term liability for the Series A Preferred shares and a $4,500,000 increase in additional paid-in capital at the issuance date of the Series A Preferred shares. Additionally, in accordance with EITF 00-27, the discount will be accreted to
interest expense over the five-year period from the issuance date to the mandatory redemption date of the Series A Preferred shares. The accretion resulted in a reduction of the long term liability discount and an increase in interest expense over
this five year period. The correction of this error increased interest expense and increased the net loss by $226,849 and $406,849 respectively for the three and nine months ended September 30, 2007. The correction of this error reduced the
Beneficial Conversion Discount by $406,849 as of September 30, 2007. The recognition of this item did not affect the cash balance of the Company.

The Company also identified an error in the calculation of compensation cost for the three and nine months ended September 30, 2007. On April 18, 2007, options for 3,116,428 shares of common stock at an
exercise price of $1.35 were issued. On August 3, 2007, these options were cancelled and reissued at an exercise price of $0.79. Under SFAS 123R, the cancellation and reissuance of stock options should result in increased compensation cost over
the service period of the new option grant. Although the cancellation and reissuance of the stock options was previously disclosed in the financial statements, the additional compensation cost was not recorded in the financial statements for the
period ended September 30, 2007. Recognizing the additional compensation expense resulted in increased salary expense and increased net loss of $157,929 and $249,360 respectively for the three and nine months ended September 30, 2007. The
recognition of this item did not affect the cash balance of the Company.

The following table reflects the restatement for each line on the
unaudited Balance Sheet as of September 30, 2007:



|                                                   |  |                          |           |            |   |            |                 |  |   |            |  
|-------------------------------------------------- |  | ------------------------ | --------- | ---------- | - | ---------- | --------------- |  | - | ---------- | -
|                                                   |  | As of September 30, 2007 |          
|Line Item                                          |  | OriginalBalance          |           | Adjustment |   |            | RestatedBalance | 
|Mandatorily Redeemable Preferred Stock             |  | $                        |          |            | $ | 4,500,000  |                 |  | $ | 4,500,000  |  
|Preferred Stock, Beneficial Conversion Discount    |  | $                        |          |            | $ | (4,093,151 | )               |  | $ | (4,093,151 | )
|Preferred Stock, Discount on Convertible Liability |  | $                        |          |            | $ | 81,370     |                 |  | $ | 81,370     |  
|Shareholders Equity                               |  | $                        | 1,634,700 |            | $ | (488,219   | )               |  | $ | 1,146,481  |  

The following table reflects the restatement for each line on the unaudited Statement of Operations
for the three and nine months ended September 30, 2007:



9



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Notes to Consolidated Financial
Statements

September 30, 2007



|                                           |  |                                       |          |   |                                      |   |          |                 |  |   |                 |   |  |            |            |   |                 |   |          |   |  |   |            |  
|------------------------------------------ |  | ------------------------------------- | -------- | - | ------------------------------------ | - | -------- | --------------- |  | - | --------------- | - |  | ---------- | ---------- | - | --------------- | - | -------- | - |  | - | ---------- | -
|                                           |  | Three Months Ended September 30, 2007 |          |   | Nine Months Ended September 30, 2007 |  
|Line Item                                  |  | OriginalBalance                       |          |   | Adjustment                           |   |          | RestatedBalance |  |   | OriginalBalance |   |  | Adjustment |            |   | RestatedBalance |  
|Salaries                                   |  | $                                     | 191,609  |   |                                      | $ | 157,929  |                 |  | $ | 349,538         |   |  | $          | 466,653    |   |                 | $ | 249,360  |   |  | $ | 716,013    |  
|Total SG&A                                 |  | $                                     | 682,763  |   |                                      | $ | 157,929  |                 |  | $ | 840,692         |   |  | $          | 2,139,566  |   |                 | $ | 249,360  |   |  | $ | 2,388,926  |  
|Interest Expense                           |  | $                                     | 210,000  |   |                                      | $ | 272,219  |                 |  | $ | 482,219         |   |  | $          | 654,794    |   |                 | $ | 488,219  |   |  | $ | 1,143,013  |  
|Net Loss Before Taxes                      |  | $                                     | (914,782 | ) |                                      | $ | (430,148 | )               |  | $ | (1,344,930      | ) |  | $          | (2,973,704 | ) |                 | $ | (737,579 | ) |  | $ | (3,711,283 | )
|Net Loss                                   |  | $                                     | (914,782 | ) |                                      | $ | (430,148 | )               |  | $ | (1,344,930      | ) |  | $          | (2,973,704 | ) |                 | $ | (737,579 | ) |  | $ | (3,711,283 | )
|Dividends Declared on Preferred Stock      |  | $                                     |         |   |                                      | $ | (112,500 | )               |  | $ | (112,500        | ) |  | $          |           |   |                 | $ | (206,200 | ) |  | $ | (206,200   | )
|Net Loss Attributed to Common Shareholders |  | $                                     | (914,782 | ) |                                      | $ | (542,648 | )               |  | $ | (1,457,430      | ) |  | $          | (2,973,704 | ) |                 | $ | (943,779 | ) |  | $ | (3,917,483 | )
|Per Share Amounts                          |  |                                       |          |   |                                      |   |          |                 |  |   |                 |   |  |            |            |   |                 |   |          |   |  |   |            |  
|Net Loss                                   |  | $                                     | (0.01    | ) |                                      | $ |         |                 |  | $ | (0.01           | ) |  | $          | (0.04      | ) |                 | $ | (0.01    | ) |  | $ | (0.05      | )
|Dividends Declared on Preferred Stock      |  | $                                     |         |   |                                      | $ |         |                 |  | $ | (0.00           | ) |  | $          |           |   |                 | $ |         |   |  | $ | (0.00      | )
|Net Loss Attributed to Common Shareholders |  | $                                     | (0.01    | ) |                                      | $ |         |                 |  | $ | (0.01           | ) |  | $          | (0.04      | ) |                 | $ | (0.01    | ) |  | $ | (0.05      | )

Principles of consolidation

The consolidated financial statements include the accounts of Platinum Research Organization, Inc., Platinum Research Organization, L.P. and Platinum
Intellectual Property, LP., its wholly owned subsidiaries. All material intercompany accounts and transactions are eliminated in consolidation.

Cash and cash equivalents

Cash and cash equivalents include highly liquid investments with original maturities of three
months or less.

Intangible Assets

Amortizable Intellectual Property. For the nine-month period ended September 30, 2007, the Company had $3,538,566 in amortizable intellectual property that consisted principally of capitalized patent costs
related to the Companys five patents. The net balance at September 30, 2007 consisted of $4,592,124 in gross patent carrying costs and $1,053,558 of accumulated amortization. These patents are being amortized over their useful remaining
life and have an average weighted amortization period of 15 years. If a particular patent or trademark is denied or abandoned, the associated costs are written off.

Non-amortizable Intellectual Property. For the period ended September 30, 2007 the Company had $193,483 in non-amortizable intellectual property that consisted of capitalized trademark costs and pending
patent costs.

Intellectual Property consisted of the following for the listed periods:



|                                      |  |                           |            |   |                              |   |           |                              |  |   |           |  
|------------------------------------- |  | ------------------------- | ---------- | - | ---------------------------- | - | --------- | ---------------------------- |  | - | --------- | -
|                                      |  | NineMonths Ended9/30/2007 |            |   | TwelveMonths Ended12/31/2006 |   |           | TwelveMonths Ended12/31/2005 | 
|Amortizable Intellectual Property     |  | $                         | 4,592,124  |   |                              | $ | 4,552,055 |                              |  | $ | 4,438,810 |  
|Less: Accumulated Amortization        |  |                           | (1,053,558 | ) |                              |   | (853,848  | )                            |  |   | (537,119  | )
|                                      |  |                           |            |   |                              |   |           |                              |  |   |           |  
|                                      |  |                           | 3,538,566  |   |                              |   | 3,698,207 |                              |  |   | 3,901,691 |  
|Non-amortizable Intellectual Property |  |                           | 193,843    |   |                              |   | 133,490   |                              |  |   | 160,859   |  
|                                      |  |                           |            |   |                              |   |           |                              |  |   |           |  
|                                      |  | $                         | 3,732,409  |   |                              | $ | 3,831,697 |                              |  | $ | 4,062,550 |  



10



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Notes to Consolidated Financial
Statements

September 30, 2007



Future Amortization costs for Amortizable Intellectual Property are as follows:



|                           |  |   |          
|-------------------------- |  | - | ---------
|3 months ended 12/31/2007  |  | $ | 56,030   
|12 months ended 12/31/2008 |  |   | 463,657  
|12 months ended 12/31/2009 |  |   | 307,317  
|12 months ended 12/31/10   |  |   | 307,317  
|12 months ended 12/31/11   |  |   | 307,317  
|12 months ended 12/31/12   |  |   | 307,317  
|Beyond                     |  |   | 1,789,611
|                           |  |   |          
|Total                      |  | $ | 3,538,566

Amortization expense relating to Intellectual Property was $178,389 and $316,729 for the nine
month period ended September 30, 2007 and twelve month period ended December 31, 2006, respectively.

Financial instruments

The carrying value of cash, loans receivable, accounts payable and accrued liabilities, amounts due to related parties and convertible
promissory notes payable approximates their fair value because of the short maturity of these instruments. Prior to April 2007, the Companys operations were located in Canada, and virtually all of its assets and liabilities gave rise to
significant exposure to market risks from changes in foreign currency rates. The Companys financial risk was the risk that arose from fluctuations in foreign exchange rates and the degree of volatility of these rates. Subsequent to March 2007,
the Companys operations are located in the United States and foreign currency transactions are not prevalent. Currently, the Company does not use derivative instruments to reduce its exposure to foreign currency risk.

Derivative financial instruments

The
Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Research and Development

The Companys research and development efforts are conducted primarily
by the University of Texas at Arlington. Research and development expenditures consist primarily of research salaries and materials consumed in the testing and evaluation process. All such expenses are expensed as incurred. The Companys
research and development expenditures for the nine months ended September 30, 2007 were $200,401 compared to $104,125 for the same period in 2006. Research and development expenses are included in the Product Evaluation and Technical Support
line item of Selling, General and Administrative expenses.

Income taxes

Deferred income taxes are reported for timing differences between items of income or expense reported in the financial statements and those reported for
income tax purposes in accordance with SFAS No. 109, Accounting for Income Taxes, which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future
tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax loss and credit carry-forwards. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary



11



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Notes to Consolidated Financial
Statements

September 30, 2007



differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary
differences and carry-forwards when realization is more likely than not. As of September 30, 2007 and September 30, 2006, the net deferred tax asset has been offset by a valuation allowance.

Basic and diluted net loss per share

The Company computes net loss per share in accordance with SFAS No. 128, Earnings per Share. SFAS No. 128 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income
statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all potentially dilutive common
shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed
to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive.

Comprehensive loss

SFAS No. 130, Reporting Comprehensive Income, establishes standards
for the reporting and display of comprehensive loss and its components in the financial statements. As of September 30, 2007, the Company had no items that represented a comprehensive loss and, therefore, has not included a schedule of
comprehensive loss in the financial statements.

Segments of an enterprise and related information

SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information, supersedes SFAS No. 14, Financial Reporting for
Segments of a Business Enterprise. SFAS 131 establishes standards for the way that public companies report information about operating segments in annual financial statements and requires reporting of selected information about operating
segments in interim financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. SFAS 131 defines operating segments as components of a company about
which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company has evaluated this SFAS and does not believe it is
applicable at this time.

Start-up expenses

The Company has adopted Statement of Position No. 98-5, Reporting the Costs of Start-up Activities, which requires that costs associated with start-up activities be expensed as
incurred. Accordingly, start-up costs associated with the Companys formation have been included in the Companys expenses for the period from the date of incorporation on May 13, 2005 to September 30, 2007.

Foreign currency translation

The
Companys functional and reporting currency is in U.S. dollars. The financial statements of the Company are translated to U.S. dollars in accordance with SFAS No. 52, Foreign Currency Translation. Monetary assets and liabilities
denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the
determination of income. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.



12



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Notes to Consolidated Financial
Statements

September 30, 2007



Use of estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from these estimates.

Recent accounting pronouncements

In
February 2007, the Financial Accounting Standards Board (the FASB) issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (SFAS 159). SFAS 159 allows the Company to choose
to measure many financial assets and financial liabilities at fair value. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. SFAS 159 is effective for fiscal years beginning after
November 15, 2007. After reviewing SFAS 159 and 157, the company has elected not to measure financial assets and liabilities at fair value.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurement (SFAS 157). The Statement provides guidance for using fair value to measure assets and liabilities. The Statement also expands disclosures
about the extent to which companies measure assets and liabilities at fair value, the information used to measure fair value, and the effect of fair value measurement on earnings. This Statement applies under other accounting pronouncements that
require or permit fair value measurements. This Statement does not expand the use of fair value measurements in any new circumstances. Under this Statement, fair value refers to the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants in the market in which the entity transacts. SFAS 157 is effective for the Company for fair value measurements and disclosures made by the Company in its fiscal year beginning on
January 1, 2008. After reviewing SFAS 159 and 157, the company has elected not to measure financial assets and liabilities at fair value.

In February 2006, the FASB issued SFAS No. 155, Accounting for Certain Hybrid Financial Instruments, which amends SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities and
SFAS No. 140. SFAS No. 155 permits fair value measurement for any hybrid financial instrument that contains an embedded derivative that otherwise would require bifurcation, establishes a requirement to evaluate interests in securitized
financial assets to identify interests that are freestanding derivatives or hybrid financial instruments containing embedded derivatives. The adoption of SFAS No. 155 is not expected to have a material impact on the Companys financial
position, results of operations or cash flows.

In July 2006, the FASB issued FASB interpretation No. 48, Accounting for
Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109 (FIN 48). FIN 48 provides guidance on the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax
return. FIN 48 requires that we recognize in the financial statements the impact of a tax position if that position more likely than not will be sustained on an audit, based on the technical merits of the position. FIN 48 also provides guidance on
derecognition, classification, interest and penalties, accounting in interim periods, disclosures and transition provisions. The transition adjustment recognized on the date of adoption is recorded as an adjustment to retained earnings as of the
beginning of the adoption period. After reviewing FASB 48, the company does not believe that adoption of FASB 48 will have a material impact on the companys financial statements.

Comparative figures

Certain
comparative figures have been adjusted to conform to the current periods presentation.



13



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Notes to Consolidated Financial
Statements

September 30, 2007



|3. | Accounts Payable and Accrued Liabilities
|-- | ----------------------------------------

Accounts
payable and accrued liabilities are non-interest bearing, unsecured and have settlement dates within one year.



|4. | Long Term Liabilities
|-- | ---------------------

On April 18, 2007, the
Company issued a total of 5,000,000 authorized preferred shares were designated as Series A Preferred Stock, which are convertible into shares of the Companys common stock at a rate of five common shares for each share of Series A
Preferred at any time by the holder or by the Company under certain conditions. The Series A Preferred is also subject to mandatory conversion on the last day of any period of twenty consecutive trading days ending on or after the sale of the
underlying shares of common stock are registered with the Securities and Exchange Commission in which the volume weighted average of the daily market price of the Companys common stock equals or exceeds 200% of the adjusted conversion price of
the Series A Preferred.

The terms of the Series A Preferred entitle the holder to annual cumulative dividends of $0.09 per share, payable
quarterly at the discretion of the Companys Board of Directors. The annual cumulative dividend will be reduced to $0.045 per share upon the Company entering into a commercial agreement(s) that increases the Companys aggregate revenues to
$40,000,000 per annum and to $0.018 per share upon the Company recording net revenues equal to or greater than $1,000,000 per quarter.

The
Series A Preferred has a maturity date of five years from the date of closing of the Contribution Agreement (see Note7).

At
September 30, 2007, the Company had 5,000,000 shares of Series A Preferred shares outstanding which were issued at $0.90 per share. The Certificate of Designation for the Series A Preferred includes a mandatory redemption requirement on the
maturity date of April 18, 2012 that requires the Company to redeem all of the outstanding shares of its Series A Preferred, to the extent that it has funds legally available at the time, and to the extent that the Series A Preferred shares
have not been converted to shares of common stock, at a redemption price of $1.08 per share. As a result of the mandatory conversion requirement and per SFAS 150, these Series A Preferred shares have been classified as a Long Term Liability.
Additionally, the $0.18 per share discount (redemption price of $1.08 less issued price of $0.90) will be recorded as interest expense of $900,000 ($0.18 x 5,000,000 shares) over the five year period from April 18, 2007 to April 18, 2012.
Accordingly, $45,370 and $81,370 respectively has been recorded as interest expense for the three and nine month periods ended September 30, 2007.

The Series A Preferred shares are convertible to common shares at a value of $0.18 per common share at the option of the holder, which price was less than the fair market value of the underlying common stock when the
Series A Preferred shares were issued on April 18, 2007. In accordance with EITF 98-5, this price differential generated a Beneficial Conversion Feature that should be recognized as a discount against the long-term liability and as an increase
to additional paid in capital, since the conversion would be accomplished through the issuance of shares of common stock. The amount of the discount is limited to the proceeds received from the issuance of the Series A Preferred shares. In
accordance with EITF 00-27, the discount will be accreted to interest expense over the five-year period from the issuance date to the mandatory redemption date of the Series A Preferred shares. For the three and nine months ended September 30,
2007 respectively, $226,849 and $406,849 accretion of the discount, respectively, was recognized as additional interest expense.



14



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Notes to Consolidated Financial
Statements

September 30, 2007



|5. | Long Term Debt
|-- | --------------

As of September 30, 2007, the
Company had $6,000,000 in long term debt due under a note with the Seattle City Employees Retirement System (SCERS). The principal amount outstanding under this note bears interest at a fixed rate equal to 14% per annum, which will
increase to 19% per annum following any event of default under the note. Accrued interest on the outstanding principal is payable on a quarterly basis, and all outstanding principal and interest is due and payable on February 28, 2011. As
additional consideration for making the loan, SCERS will receive quarterly participation payments at the end of each fiscal quarter that are equal to the greater of (i) 5% of the Companys gross revenues on a consolidated basis, or
(ii) 20% of the Companys consolidated net income, for such quarter. The participation payments will continue until SCERS is paid all of the principal and accrued interest under the note, plus an aggregate $6.0 million in participation
payments. SCERS has received no participation payments through the quarter ended September 30, 2007. The note is secured by all of the assets of the Company.



|6. | Capital Stock
|-- | -------------

Authorized

As of September 30, 2007, the Companys total authorized capital was 400,000,000 common shares, with a par value of $0.001 per common share, and
100,000,000 preferred shares, with a par value of $0.001 per preferred share. The Company has designated 5,000,000 Preferred shares as Series A Preferred shares.

Issued and outstanding

Under the terms of the Contribution Agreement (please see Note 8 below), on
April 18, 2007, the Company:



| | a) | issued to the Pro Transferors, 55,000,000 unregistered shares of Company common stock;
| | -- | --------------------------------------------------------------------------------------



| | b) | issued to the Investors 5,000,000 shares of Series A Preferred;
| | -- | ---------------------------------------------------------------



| | c) | issued to Investa Corporation and Ms. Cecelia Pineda 2,500,000 warrants to purchase shares of common stock at a price of $0.26 per share; and
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------



| | d) | cancelled 22,500,000 shares of Company common stock held by Ms. Pineda.
| | -- | -----------------------------------------------------------------------

As of September 30, 2007, the Companys total issued and outstanding capital stock consisted of 75,000,000 common shares, 5,000,000 shares of Series A Preferred and warrants to acquire 2,500,000 common
shares.

On February 8, 2007, the Company issued 10,000,000 common shares valued at a price of $0.05 per share upon the exercise of
previously outstanding share purchase warrants issued March 30, 2006. As of September 30, 2007, no share purchase warrants in this series were outstanding.

On March 30, 2006, 10,000,000 Units (the Units) of the Company were issued for cash proceeds of $100,000. Each Unit consisted of one common share of the Company and one fifth of one purchase warrant
share. Each full purchase warrant share entitled the holder to purchase an additional five common shares of the Company at a price of $0.25 per common share expiring March 30, 2009.

Warrants

The following is a summary
of warrant activities during the nine-month period ended September 30, 2007:



15



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Notes to Consolidated Financial
Statements

September 30, 2007



|                                                  |  |                   |   |  |                               |     
|------------------------------------------------- |  | ----------------- | - |  | ----------------------------- | ----
|                                                  |  | Number ofwarrants |   |  | Weightedaverageexercise price
|Outstanding and exercisable at December 31, 2006  |  | 2,000,000         |   |  | $                             | 0.25
|Exercised                                         |  | (2,000,000        | ) |  | $                             | 0.25
|                                                  |  |                   |   |  |                               |     
|Outstanding and exercisable at March 31, 2007     |  |                  |   |  |                               |    
|                                                  |  |                   |   |  |                               |     
|Granted                                           |  | 2,500,000         |   |  | $                             | 0.26
|                                                  |  |                   |   |  |                               |     
|Outstanding and exercisable at June 30, 2007      |  | 2,500,000         |   |  | $                             | 0.26
|                                                  |  |                   |   |  |                               |     
|Outstanding and exercisable at September 30, 2007 |  | 2,500,000         |   |  | $                             | 0.26
|                                                  |  |                   |   |  |                               |     



|7. | Equity
|-- | ------

Effective January 1, 2006, the Company
adopted SFAS No. 123R Share Based Payment under the modified prospective method described therein. Compensation expense recognized in the three and nine month periods ended September 30, 2006 and 2007 includes compensation
expense for all stock-based payments granted, modified or vested since adoption of SFAS No. 123R based on the grant date fair value. Stock-based compensation expense recognized in the three- and nine-month periods ended September 30, 2007
was included in Selling, General and Administrative Expenses and totaled $191,955 and $364,798 respectively. No stock-based compensation was recognized in the three and nine month periods ended September 30, 2006.

Prior to the consummation of the transactions contemplated by the Contribution Agreement (see Note 8), Platinum LP had issued to key executive officers
and consultants, options to acquire up to 18.685% of limited partner partnership interests in Platinum LP. Following the completion of the transactions contemplated in the Contribution Agreement, the Company issued options to acquire 23,292,184
shares of common stock to holders of the Platinum LP options, in substitution for, and following the cancellation of, the Platinum LP options. The substitution of the Company options for the Platinum LP options complied with Sections 409A and 424 of
the Internal Revenue Code of 1986, as amended, and the Treasury Regulations proposed and issued thereunder. Accordingly, and in addition to the satisfaction of other requirements under these provisions, the ratio of the exercise price to the fair
market value of the shares subject to the Company options issued in substitution of the Platinum LP options immediately following the consummation of the transactions contemplated by the Contribution Agreement was not greater than the ratio of the
exercise price to the fair market value of the canceled Platinum LP options immediately prior to the transaction. Additionally, the excess of the fair market value of the Company options issued in substitution of the Platinum LP options over their
respective strike prices did not exceed the fair market value of the Platinum options over their respective strike prices. The fair market value of the Platinum LP options was established by an independent appraisal by Empire Valuation Consultants,
LLC which was completed in August 2007.

On August 3, 2007, the independent members of the Companys Board of Directors met and
approved a proposal to cancel all of the outstanding employee stock options held by the Companys then Chief Financial Officer, Michael D. Newman, which were granted on April 18, 2007 at an exercise price of $1.35, and reissue 3,116,428
options at an exercise price of $0.79, which was the closing per share market price of the common stock on August 3, 2007.



16



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Notes to Consolidated Financial
Statements

September 30, 2007



|8. | Contribution Agreement
|-- | ----------------------

On October 26, 2006,
the Company entered into a contribution agreement (the Contribution Agreement) with Platinum LP, Lubrication Partners Joint Venture (GP Transferor) and sole shareholder of Platinum IP Management, Inc., the general partner of
Platinum LP (PRO GP), each holding a limited partnership interest in Platinum LP (each, a Limited Partner and collectively, the PRO Transferors) and John T. (Cork) Jaeger as the representative of all PRO
Transferors (the PRO Transferor Representative), and Steve Drayton as the representative (the Investor Representative) of all certain individuals who invested in the Company (other than the PRO Transferors) (the
Investors) in a private placement completed in conjunction with the Contribution Agreement.

Under the terms of the Contribution
Agreement, GP Transferor contributed to the Company all of the capital stock of PRO GP, each Limited Partner contributed to the Company all of the outstanding limited partner partnership interests of Platinum LP, and the Investors contributed to the
Company an aggregate minimum cash amount of $4,500,000.

At the Companys Special Meeting held on April 12, 2007, stockholders
approved the completion of the proposed Contribution Agreement transaction with Platinum Research Organization, L.P. et al. The closing of the Contribution Agreement transaction became effective April 18, 2007.

Upon completion of the Contribution Agreement, the Company completed the following:



| | a) | Issued to the PRO Transferors 55,000,000 unregistered shares of common stock of the Company;
| | -- | --------------------------------------------------------------------------------------------



| | b) | Issued to the Investors 5,000,000 shares Series A Preferred Stock and 2,500,000 share purchase warrants (the Warrants). Each Warrant is exercisable for one common share
of the Company at an exercise price of $0.26 per share for a three-year period from date of closing; and
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c) | Entered into a bridge loan agreement (the Loan Agreement) with Platinum LP, pursuant to which the Company loaned Platinum LP $1,000,000 (the Platinum LP
Note). The Platinum LP Note bore regular interest at an annual rate of 10% per annum, was due and payable six months from the date of issuance, and was secured by a second lien on all of the assets of Platinum LP. On January 17,
2007, the Company advanced $1,000,000 to Platinum LP under the terms of the Loan Agreement. The Loan Agreement was satisfied on the April 18, 2007 closing date upon the conversion of the promissory note evidencing the loan into shares of Series
A Preferred.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

During the second quarter, the Company entered into an amending agreement whereby the Company assumed certain
general security obligations upon closing of the Contribution Agreement.



|9. | Commitments
|-- | -----------

On June 20, 2007, the Company
signed a five-year lease for new office space at a rate of approximately $60,000 per year, effective September 1, 2007 (see Note 9). The Company had previously leased office space from EFO Holdings, a related party to Lubrication Partners, L.P.
and Lubrication Partners Joint Venture, our two largest stockholders.



17



---

Platinum Research Organization, Inc. and Subsidiaries

(A Development Stage Company)

Notes to Consolidated Financial
Statements

September 30, 2007



On July 3, 2007, the Company entered into a $60,000 standby letter of credit agreement with
Crescent Real Estate Funding VIII LP as a condition of an office lease, also with Crescent Real Estate Funding VIII LP, entered into on June 20, 2007.



|10. | Subsequent Events
|--- | -----------------

On October 12, 2007, the
Compensation Committee of the Board of Directors of the Company approved Short-Term and Long-Term Incentive Plans for the Chief Executive Officer and the Senior Vice President & Chief Financial Officer of the Company. The material terms of
such plans are described in the Companys Current Report on Form 8-K filed with the Securities and Exchange Commission on October 16, 2007.



|11. | Earnings Per Share
|--- | ------------------

Basic earnings per share are
computed by dividing net earnings less dividends on Series A Preferred Stock by the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed similarly to basic earnings per share, except the
denominator is increased by including the number of additional common shares that would have been outstanding if dilutive potential common shares had been issued. This calculation is not done for periods in a loss position as this would be
antidilutive.



|                                             |  |                             |   |  |                   |   |  |                             |   |  |                   |   |  |                               |  
|-------------------------------------------- |  | --------------------------- | - |  | ----------------- | - |  | --------------------------- | - |  | ----------------- | - |  | ----------------------------- | -
|                                             |  | Three Months Ended          |   |  | Nine Months Ended |   |  | For thePeriod fromDate of   |  
|                                             |  | September30, 2007(Restated) |   |  | September30, 2006 |   |  | September30, 2007(Restated) |   |  | September30, 2006 |   |  | Inception to9/30/07(Restated) |  
|Numerator                                    |  |                             |   |  |                   |   |  |                             |   |  |                   |   |  |                               |  
|Net Income (Loss)                            |  | (1,344,930                  | ) |  | (540,586          | ) |  | (3,711,283                  | ) |  | (1,595,562        | ) |  | (9,551,794                    | )
|Dividends Declared on Preferred Stock        |  | (112,500                    | ) |  |                  |   |  | (206,200                    | ) |  |                  |   |  | (206,200                      | )
|                                             |  |                             |   |  |                   |   |  |                             |   |  |                   |   |  |                               |  
|Net Loss Attributable to Common Shareholders |  | (1,457,430                  | ) |  | (540,586          | ) |  | (3,917,483                  | ) |  | (1,595,562        | ) |  | (9,757,994                    | )
|Denominator                                  |  |                             |   |  |                   |   |  |                             |   |  |                   |   |  |                               |  
|Basic Weighted Average Shares Outstanding    |  | 102,500,000                 |   |  | 32,500,000        |   |  | 77,335,165                  |   |  | 29,239,927        |   |  | 36,684,000                    |  
|Basic Earnings per Share                     |  | (0.01                       | ) |  | (0.02             | ) |  | (0.05                       | ) |  | (0.05             | ) |  | (0.27                         | )



|12. | Debt Forgiveness
|--- | ----------------

In April 2004, $5,536,597 of debt
owed by Platinum LP to Lubrication Partners, Joint Venture was forgiven in exchange for 100% equity interest in Platinum LP.



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|Item 2. | Managements Discussion and Analysis or Plan of Operation.
|------- | ----------------------------------------------------------

All statements other than statements of historical facts contained in this report, including statements regarding our future financial position, business strategy, budgets, projected costs and plans and objectives of
management for future operations, are considered to be forward-looking statements. We express our expectations, beliefs and projections in good faith and believe our expectations reflected in these forward-looking statements are based on reasonable
assumptions; however, we cannot assure you that these expectations, beliefs or projections will prove to have been correct.

Readers are
referred to the caption Risk Factors appearing at the end of Item 1 of our latest Annual Report on Form 10-KSB for additional factors that may affect our forward-looking statements. In light of these risks, uncertainties and
assumptions, the forward-looking events discussed in this report might not occur. We undertake no obligation to update or revise our forward-looking statements, whether as a result of new information, future events or otherwise.

Plan of Operation

On April 18, 2007, the Company
closed the Contribution Agreement, which resulted in the acquisition of Platinum LP and the appointment of a new slate of directors. Under the terms of the Contribution Agreement:



| |  |  | Lubrication Partners, joint venture (GP Transferor) contributed all of the capital stock of Platinum IP Management, Inc., the general partner of
Platinum LP (PRO GP) (the PRO GP Capital Stock), free and clear of all liens, to the Company;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | each limited partner of Platinum LP contributed all of the outstanding limited partner partnership interests of Platinum LP (collectively, the Partnership
Interests) held by such limited partner, free and clear of all liens, to the Company; and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | certain individuals who invested in the Company (the Investors) contributed $4,500,000 in new capital by way of private placement to the Company. This
private placement included the conversion of the convertible promissory notes totaling $1,000,000 held by two Investors.
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

In return, the Company issued the aggregate total of:



| |  |  | 55,000,000 unregistered shares of its common stock to GP Transferor for the PRO GP Capital Stock and for the Partnership Interests;
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------



| |  |  | 5,000,000 unregistered shares of Series A Preferred to the Investors; and
| | - |  | -------------------------------------------------------------------------



| |  |  | 2,500,000 unregistered common stock share purchase warrants to Investa Corporation and Ms. Cecelia Pineda.
| | - |  | ----------------------------------------------------------------------------------------------------------

Concurrent with the closing of the Contribution Agreement, Ms. Pineda returned to the Companys treasury 22,500,000 shares of common stock of the
Company held in her name.

The Companys acquisition of Platinum LP has been accounted for as a reverse acquisition application of the
purchase method of accounting by the Company, with Platinum LP being treated as the accounting acquirer. Accordingly, the assets and liabilities of the Predecessor were recorded at their respective historical costs and added to those of Platinum LP,
and the reported results of operations of the Company now and going forward reflect the historical financial and operating results of Platinum LP.

As a result of the foregoing transactions, the Pro Transferors now own 73.33% of the issued and outstanding shares of common stock of the Company on a non-diluted basis and 53.66% of the Companys common stock on a fully-diluted basis.

As a result of our acquisition of Platinum LP, the Companys new business
focus is the design, development and commercialization of patented high-performance lubricants and coatings. The Companys products will be marketed under the trade name TechroBond for automotive, aviation, industrial and consumer
aftermarkets. TechroBondTMis one of a series of product applications Platinum LP developed based on its patented processes and technologies
relating to a fluorinated thiophosphate and a new technique to react zinc dialkyl dithiophosphate (ZDDP) and poly tetra fluroethylene to yield new proprietary compounds that enhance the anti-wear and extreme pressure capabilities of
lubricants and coatings (individually and collectively, the PRO Technology). The resulting compounds have yielded significantly enhanced anti-wear and extreme pressure capabilities when measured in bench laboratory tests at the
University of Texas at Arlington, and, more importantly, suggest that the PRO Technology may be a replacement for ZDDP in engine and lubricating oils. Management believes that this new technology will position the Company to penetrate several large,
global markets for lubricants should the Company be successful in bringing its products that rely upon this new technology to market.

The
Companys intellectual property, including its patents, licenses and trademarks, is an important component of its business. The Company actively protects its inventions, new technologies and product developments by filing patent applications or
maintaining trade secrets. The Companys research and development efforts have resulted in proprietary formulations and processes protected by five issued U.S. patents, four U.S. patent applications pending, five U.S. continuation-in-part
applications and several trade secrets. The Company has filed these patents or patent applications in key jurisdictions in the international market, and the U.S. patent applications are protected under patent, copyright and trademark filings. These
proprietary formulations and processes use specific chemical compounds that can act as a catalyst, a reactant or both to provide surface and substrate modification in both liquid and solid lubricants to wear surfaces such as iron, steel and
aluminum.

The Company intends to develop three primary product lines within the lubricant additive industry, including greases, industrial
oils and engine oils, as well as to develop specialty coatings. A more detailed



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description of the new business of the Company, associated risk factors, and historical financial statements of Platinum LP are in the Definitive Schedule
14A Proxy Statement filed with the SEC on April 2, 2007.

Results of Operations

On July 31, 2007 the Company signed a global marketing and distribution agreement with R.T.
Vanderbilt, a manufacturer and distributor of chemicals and minerals serving a diverse set of markets worldwide. The agreement gives R.T. Vanderbilt the exclusive right to market and distribute the companys TechroBondTMproducts on a global basis to the grease market.

Three
Months Ended September 30, 2007 Compared to Three Months Ended September 30, 2006.

Net Sales and Gross Profit. Net sales and gross
profit for both the three-month period ended September 30, 2007 and the three-month period ended September 30, 2006 were $0. The Company is a development stage company and continues to focus its efforts on the marketing and
commercialization of the Companys products and technologies, the registration of its products with the Environmental Protection Agency (the EPA), in Europe, Japan and the Far East and on further developing its relationships with
key business partners in the Engine Oil, Grease, Industrial Oil and Coatings markets.

Selling, General and Administrative Expenses.The
Companys total SG&A expenses for the three-month period ended September 30, 2007 were $840,692 an increase of $604,339 over total SG&A expenses of $236,353 for the three-month period ended September 30, 2006. Total SG&A
expenses are composed of outside legal and professional fees, salaries, insurance costs, product evaluation and technical support and other SG&A expenses.

The Companys outside legal and professional fees for the three-month period ended September 30, 2007 were $250,921, an increase of $161,758 over outside legal and professional fees of $89,163 for the
three-month period ended September 30, 2006. This increase was due to increased product and technology consultancy costs; increased public and investor relations costs and increased public company compliance costs associated with SEC filings and
filing of a registration statement to register the shares of common stock underlying the Series A Preferred.

The Companys salaries
expense for the three-month period ended September 30, 2007 was $349,538 an increase of $276,406 over salaries expense of $73,132 for the three-month period ended September 30, 2006. This increase was primarily due to non-cash expenses
incurred relating to the expensing of stock options pursuant to SFAS 123R, the addition of a new Chief Financial Officer following consummation of the Contribution Agreement and the execution of a new employment contract for the Companys Chief
Executive Officer. Of the total salaries increase, $191,955 was related to expensing of stock options.

The Companys insurance costs
for the three-month period ended September 30, 2007 were $18,806 an increase of $6,110 over insurance costs of $12,696 for the three-month period ended September 30, 2006. This increase was principally due principally to higher insurance
costs associated with patents and intellectual property.

Product evaluation and technical support expenses for the three-month period
ended September 30, 2007 were $156,570 an increase of $125,195 over product evaluation and technical support expenses of $31,375 for the three-month period ended September 30, 2006. This increase was due to an increase in scope of the
testing and research efforts conducted at the University of Texas - Arlington related to the Companys products and technologies and costs associated with registering the companys products in foreign countries.

Other SG&A expenses for the three-month period ended September 30, 2007 were $41,229, an increase of $36,073 over other SG&A expenses of
$5,156 for the three-month period ended September 30, 2006. This increase was due to increased office support costs and Board of Director related costs.

Depreciation and Amortization.Depreciation for the three-month period ended September 30, 2007 was $84,065, a decrease of $38,166 over depreciation of $122,231 for the three-month period ended September 30, 2006 and relates
principally to the amortization of loan issuance costs for debt with the Seattle City Employees Retirement System (SCERS), the amortization of capitalized patent expenses and the depreciation of office and testing equipment.



20



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Interest Expense.Interest expense for the three-month period ended September 30, 2007 was $482,219 which was
an increase of $272,219 compared to interest expense of $210,000 for the three-month period ended September 30, 2006. Interest expense for the three-month period of 2007 was comprised of interest related to $6,000,000 of long-term debt with the
SCERS and $272,219 of interest related to the amortization of a beneficial conversion discount and the amortization of a mandatory redemption premium both of which are related to the Companys Series A Preferred. Both items are non-cash items
(please see Note 4 to the Companys Consolidated Financial Statements).

Other Income. Other income for the three-month period ended
September 30, 2007 was $62,046 an increase of $34,048 over other income of $27,998 for the three-month period ended September 30, 2006. This increase was due primarily to interest income from increased cash on hand as a result of equity
raised through the Companys issuance, in April 2007, of the Series A Preferred and the issuance of warrants to acquire 2,500,000 shares of common stock.

Nine Months Ended September 30, 2007 Compared to Nine Months Ended September 30, 2006

Net Sales and Gross Profit.Net sales and gross profit for both the nine-month period ending September 30, 2007 and the nine-month period ending September 30, 2006 was $0. The Company continues to focus its efforts on the marketing and commercialization of the
Companys products and technologies, the registration of its products with the EPA, in Europe, Japan and the Far East and efforts to further develop its relationships with key business partners in the Engine Oil, Grease, Industrial Oil and
Coatings markets.

Selling, General and Administrative Expenses.The Companys total SG&A expenses for the nine-month period ended
September 30, 2007 were $2,388,926, an increase of $1,689,244 over total SG&A expenses of $699,682 for the nine-month period ended September 30, 2006. Total SG&A expenses are composed of outside legal and professional fees,
salaries, insurance costs, product evaluation and technical support and other SG&A expenses.

The Companys outside legal and
professional fees for the nine-month period ended September 30, 2007 were $777,042 an increase of $543,584 over outside legal and professional fees of $233,458 for the nine-month period ended September 30, 2006. This increase was due to
legal and professional costs incurred in connection with the Companys issuance of the Series A Preferred and the issuance of warrants to acquire 2,500,000 shares of common stock; increased public company compliance costs associated with SEC
filings and the filing of a registration statement to register the shares of common stock underlying the Series A Preferred; recruitment costs associated with hiring a new Chief Financial Officer; increased product and technology consultancy costs;
and increased public and investor relations costs.

The Company incurred $339,783 in costs related to the Contribution Agreement for the
nine-month period ended September 30, 2007. No such costs were incurred during the same period in 2006. These costs consisted of outside legal, accounting and audit work related to the Contribution Agreement and related transactions.

The Companys salaries expense for the nine-month period ended September 30, 2007 was $716,013, an increase of $497,328 over
salaries expense of $218,685 for the nine-month period ended September 30, 2006. This increase was primarily due to non-cash expenses incurred relating to the expensing of stock options pursuant to SFAS 123R, the addition of a new Chief
Financial Officer following consummation of the Contribution Agreement and the execution of a new employment contract for the Companys Chief Executive Officer. Of the total salaries increase, $364,798 was related to expensing of stock options.

The Companys insurance costs for the nine-month period ended September 30, 2007 were $96,842, an increase of $58,551 over
insurance costs of $38,291 for the nine-month period ended September 30, 2006. This increase was due to the purchase of a new Directors and Officers Liability Policy and higher costs associated with patents and intellectual property.

Product evaluation and technical support expenses for the nine-month period ended September 30, 2007 were $265,546, an increase of
$161,421 over product evaluation and technical support expenses of $104,125 for the nine-month period ended September 30, 2006. This increase was due to an increase in scope of the testing and research efforts conducted at the University of
Texas at Arlington related to the Companys products and technologies and costs associated with registering the companys products in foreign countries.



21



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Other SG&A expenses for the nine-month period ended September 30, 2007 were $77,549, an increase
of $58,700 over other SG&A expenses of $18,849 for the nine-month period ended September 30, 2006. This increase was due mainly to increased office support costs and Board of Director related expenses.

Depreciation and Amortization.Depreciation for the nine -month period ended September 30, 2007 was $329,420, a decrease of $36,251 from depreciation of
$365,671 for the nine-month period ended September 30, 2006 and relates to the amortization of loan issuance costs for debt with the SCERS, the amortization of capitalized patent expenses and the depreciation of office and testing equipment.

Interest Expense.Interest expense for the nine-month period ended September 30, 2007 was $1,143,013 an increase of $513,013 over interest
expense of $630,000 for the nine-month period ended September 30, 2006, due mainly to $24,794 in additional interest costs associated with $1,000,000 in convertible promissory notes and $760,438 of interest related to recording the amortization
of a beneficial conversion discount and the amortization of a mandatory redemption premium related to the Companys Series A Preferred. Both of these entries are non-cash items (please see Note 4 to the Companys Notes to Financial
Statements).

Other Income. Other income for the nine -month period ended September 30, 2007 was $150,076, an increase of $50,285 over other
income of $99,791 for the nine-month period ended September 30, 2006. This increase was due primarily to interest income from increased cash on hand as a result of equity raised through the Companys issuance of the Series A Preferred and
the issuance of warrants to acquire 2,500,000 shares of common stock April 2007.

Research and Development

The Companys research and development expenditures for the nine month period ended September 30, 2007 were $200,401 compared to $104,125 for
the nine month period ended September 31, 2006. The R&D expenditures are comprised of research staff salaries and materials consumed in the testing and evaluation process. The Company has established an alliance with the University of Texas
at Arlington to collaborate on research, development, testing and commercialization efforts. The number of personnel for each project is reviewed and agreed upon annually by the Company and the University of Texas at Arlington as a part of the
budgeting process. The Company is then billed monthly per the budgeting contract. The Company expenses all such R&D expenditures as incurred. The Company does not track R&D costs by project, as the majority of R&D expenditures for each
project are comprised of salaries for research personnel and materials consumed in testing and evaluation. The Company also utilizes a number of mechanical testing laboratories equipped with a variety of gasoline and diesel engines, driveline and
other mechanical equipment to evaluate the performance of additives for lubricants and fuels.

For the calendar years of 2007 and 2008,
there are five key projects, as identified and described below, that comprise the Companys R&D budget. All of the listed projects are currently active and have research personnel assigned. Company management reviews the project progress on
a monthly basis. All of the identified key projects are in progress, and are expected to continue for the next 12-18 months. As such, the Company is unable to estimate completion dates with any reasonable certainty. The Companys inability to
successfully complete or fund these projects could have a material adverse impact on the Companys ability to execute its business plan.

Grease

The Companys Grease project consists of research into anti-wear and extreme pressure
enhancements for lubrication greases. Product development for the Companys original Grease product, TechroBond 280, is complete. As TechroBond 280 utilizes existing registered materials in its composition, no additional product registration is
necessary. The suppliers of raw materials and a contract manufacturer for manufacturing the material have been contracted by the Company. The Companys ongoing research and development in the Grease project is focused on enhancing the existing
TechroBond 280 product and ensuring its compatibility with customers products.

Coatings

The Companys Coatings project consists of research into anti-fouling paints and anti-corrosion coatings and testing of products to be used in
anti-graffiti or other anti-fouling media applications. Product development for this project is still in the early stages, and no registration of the product or product approvals from regulatory agencies has occurred. Proof of concept testing is
currently underway, using a variety of approaches and materials. The early results of the Companys product testing are promising, but no marketable product has been developed, and there is no assurance that the products can be developed into a
marketable product.

Engine Oil (Use of ZDDP in HD Oil Applications)

The Companys Engine Oil ZDDP Applications project consists of testing the use of fluorinated ZDDP in heavy duty engine oil applications. Product
development for this project is in the intermediate stages, and registration of the base materials is currently underway. Product testing is currently focused on bench wear testing as part of defining the proper blend to be used in a marketable
product.

Engine Oil (Improved Lubrication in Engine Oils)

The Companys Engine Oil Improved Lubrication project consists of research into improved lubrication in engine oils. Product development for this
projects product, TechroBond 240, is in the final stages of development, and the products materials have been registered with the EPA and are currently undergoing testing for registration in the European Union, which is expected to be
completed in the third quarter of 2008. Following European Union registration, further registration will be conducted in additional international jurisdictions. Manufacturing processes have been defined, and a contract manufacturer has been
identified for the manufacture of the product. Actual engine tests utilizing the product are currently being schedules, and should be completed during the first half of 2008.

Testing of Interaction of Anti-Oxidants with F-ZDDP

This project
consists of testing the interaction of anti-oxidants and F-ZDDP, as its name suggests. Product development in this project is in the intermediate stages, with registration of the base materials currently underway (see the Engine Oil (Improved
Lubrication in Engine Oils) project description above). This projects product is currently undergoing bench oxidation tests to determine interactions and compatibility with existing engine oil additive packages.



22



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Liquidity and Capital Resources

As of September 30, 2007, the Company had total cash on hand of $3,981,221, of which $1,585,598 was restricted cash. Cash needs during the next
twelve months are expected to average approximately $300,000 per month. As of September 30, 2007, the Company believed it had sufficient funds available to fund operations for approximately the next seven to eight months.

Cash flows used in operating activities for the nine months of September 30, 2007 were $2,579,868 compared to $1,234,877 used in operating
activities for the nine-month period ended September 30, 2006.

As of December 31, 2007, the Company did not have any material
commitments for capital expenditures. The Company is currently working with a manufacturer in Tulsa, Oklahoma to evaluate the manufacturing process and required capital to produce TechroBond 240. The Company expects that if it is able to receive
additional financing in the first half of 2008, it will complete its evaluation of the manufacturing process and commit to an estimated $1,000,000 in capital expenditures for a manufacturing facility to support the first phase of its production of
TechroBond 240.

Net cash provided by financing activities was $5,000,000 for the first nine months of 2007, consisting primarily of the
private placement of 5,000,000 shares of Series A Preferred Stock for a purchase price of $4,500,000. The Series A Preferred is subject to the terms and conditions of a Certificate of Designation, which terms and conditions include a 10% accrued
dividend that will be reduced to a 5% dividend upon the Company entering into a commercial agreement(s) that will increase the Companys aggregate revenues to $40 million per year, and further reduced to a 2% dividend upon the Company recording
net revenues of $1 million per quarter. Each share of Series A Preferred may be converted into five shares of common stock at anytime by the holder and under certain conditions by the Company. The Series A Preferred must be redeemed by the Company
on April 18, 2012, or prior to that time if the Company fails to fulfill certain obligations to those holders of Series A Preferred for reserving and registering for resale the shares that may be issued upon conversion or upon certain assignments or
bankruptcy proceedings.

Immediately following the closing of the Contribution Agreement, Platinum LP became the sole operating subsidiary
of the Company, holding substantially all of the Companys operating assets, other than (i) the intellectual property used by the Company, which is held by Platinum Intellectual Property L.P. (PIP), a wholly-owned subsidiary of
Platinum LP, and (ii) the proceeds of the Series A Preferred offering completed as part of the Contribution Agreement, which are held by the Company directly. On December 3, 2004, the Company and PIP entered into a secured note purchase agreement,
which provided for PIP to obtain a $6.0 million term loan from SCERS (the Seattle Loan).

In connection with the Contribution
Agreement, SCERS, the Company, Platinum LP, PIP, Newlight Capital LLC (Newlight) and JPMorgan Chase Bank, N.A. entered into an amendment of the Seattle Loan on January 9, 2007, which became effective upon the closing of the Contribution
Agreement on April 18, 2007. The Seattle Loan is governed by a senior secured note issued by PIP to SCERS. The principal amount outstanding under the Seattle Loan will continue to bear interest at a fixed rate equal to 14% per annum, which will
increase to 19% per annum following any event of default under the senior secured note. Accrued interest on the outstanding principal is payable on a quarterly basis, and all outstanding principal and interest is due and payable on February 28,
2011. As additional consideration for making the loan, SCERS will receive quarterly participation payments at the end of each fiscal quarter that are equal to the greater of (i) 5% of the Companys gross revenues on a consolidated basis, or
(ii) 20% of the Companys consolidated net income, for such quarter. The participation payments will continue until SCERS is paid all of the principal and accrued interest under the Seattle Loan, plus an aggregate $6.0 million in participation
payments. SCERS has received no participation payments through December 31, 2007.

PIPs performance under the Seattle Loan is secured
by all of the assets of PIP, including all of the registered intellectual property used in the Companys business. In addition, approximately $1.4 million of the loan proceeds were placed in escrow, representing 18 months of estimated interest
expense, in the amount of $1.25 million, and $150,000 of certain estimated fees that are payable in connection with the Seattle Loan.

As
amended, the Seattle Loan is subject to certain financial covenants and restrictions, including limitations on incurring indebtedness or granting liens, mergers or consolidations, distributions, expenditures in excess of budgeted amounts, leases,
compensation of management, sale of assets and capital expenditures, which apply equally to PIP, Platinum LP and the Company. If PIP issues or sells any new promissory note while the Seattle Loan is outstanding that are on terms that are more
favorable than those under the Seattle Loan, as determined in SCERSs sole discretion, then the Seattle Loan will automatically be amended such that those more favorable terms will apply to the Seattle Loan to the same extent as they are to
apply under the new promissory note. PIP may issue one or more new promissory notes having an aggregate principal amount of no more than $9.0 million, and SCERS will take any actions that are necessary in order to permit the purchasers of such notes
to have a security interest and lien that is pari passu with SCERS interests in the collateral securing the Seattle Loan. Any amounts borrowed by PIP that are in excess of the $9.0 million limit shall be subordinate to the Seattle Loan.

Newlight serves as the monitoring agent on behalf of SCERS. In consideration for those services, Newlight received a placement fee of $450,000 at the
initial funding and continues to receive $120,000 in annual monitoring fees after the closing of the Contribution Agreement. Newlight received substitution options for 1,909,938 shares of the Companys common stock upon closing of the
Contribution Agreement, representing approximately 1.50% of the Companys outstanding shares, on a fully-diluted basis, after the closing of the Contribution Agreement. Newlight also serves as a consultant to the Company in connection with its
intellectual property commercialization efforts as well as in raising additional capital. Newlight receives a percentage of the total additional capital raised or revenues generated from intellectual property commercialization as compensation for
such consulting services.

Management cannot provide assurance that the Company will ultimately achieve profitable operations or become
cash flow positive, or raise additional debt and/or equity capital. Management believes that the Companys capital resources are adequate to continue operating and maintaining its current business strategy during the next seven to eight months.
However, if the Company is unable to realize revenue from the commercialization of its products or is unable to raise additional capital in the future, management expects that the Company will need to seek additional capital on less favorable terms
and/or pursue other remedial measures. The financial statements included in this Quarterly Report on Form 10-QSB do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of
liabilities that might be necessary should the Company be unable to continue as a going concern.

Accounting Policies  Intangible Assets

The Company evaluates annually the carrying value of its intellectual property for recoverability by analyzing the expected sales and
profits of its products in the grease, engine oil and industrial oil markets over the next five years. In conducting its impairment analysis, the Company only tests intellectual property being amortized per SFAS 144; non-amortizable intellectual
property is excluded. Amortizable intellectual property was $3,698,207 as of December 31, 2006.

The Companys impairment testing
methodology involves testing the carrying amount of its intellectual property assets compared to the undiscounted cash flows from the Companys estimated operations (excluding interest) for the years 2008 through 2012. While the Company
recognizes that the useful lives of its patents extend beyond 2012 and in some case to the year 2020, the Companys planning period is five years, and data is not available for years beyond 2012.

At December 31, 2006, the Companys impairment testing revealed that the sum of the undiscounted cash flows for the applicable testing period
exceeded the carrying values of amortizable intellectual property. Based on this analysis, the Company expected that sufficient profit will be realized from these sales to recover the balance of intellectual property on its books, and therefore did
not believe that any impairment of its intellectual property existed at December 31, 2006. As such, no impairment adjustment was recorded.



23



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Restatements

Subsequent to the Companys issuance of 5,000,000 shares of Series A Preferred Stock (Series A Preferred) in connection with the consummation of the Contribution Agreement on April 18,
2007, the Companys Audit Committee and management concluded that changes were necessary to correct the accounting for the Series A Preferred shares in the financial statements. The Company previously classified the 5,000,000 Series A Preferred
shares issued on April 18, 2007 as components of Shareholders Equity. Since the Certificate of Designation for these shares contains a mandatory redemption date, the Company has determined these shares should be classified as a long-term
liability in accordance with SFAS 150. The correction of this error required the Series A Preferred shares to be reflected as a long-term liability on the Companys Balance Sheet. The long-term liability will be increased by $900,000 over the
five-year period from the issuance date to the mandatory redemption date of the Preferred shares to reflect the 20% redemption premium contained in the Certificate of Designation for the Series A Preferred. The correction of this error increased
interest expense and net loss by $45,370 and $81,370, respectively, for the three and nine months ended September 30, 2007. The correction also increased the long-term liability by $81,370 as of September 30, 2007. The recognition of this item
did not affect the cash balance of the Company.

The Company also did not properly calculate or record the intrinsic value of the
Beneficial Conversion Feature contained in Series A Preferred shares. The Series A Preferred shares are convertible into shares of the Companys common shares at a value of $0.18 per common share at the option of the holder, which price was
less than the fair market value of the underlying common stock when the Series A Preferred shares were issued on April 18, 2007. In accordance with EITF 98-5, this price differential generated a Beneficial Conversion Feature which should have
been recognized as a discount against the long-term liability and is limited to the proceeds received from the issuance of the Series A Preferred shares. The recognition of the Beneficial Conversion Feature resulted in a discount of $4,500,000
offsetting the long-term liability for the Series A Preferred shares and a $4,500,000 increase in additional paid-in capital at the issuance date of the Series A Preferred shares. Additionally, in accordance with EITF 00-27, the discount will be
accreted to interest expense over the five-year period from the issuance date to the mandatory redemption date of the Series A Preferred shares, which will result in a reduction of the long term liability discount and an increase in interest expense
over this five-year period. The correction of this error increased interest expense and increased net loss by $226,849 and $406,849, respectively, for the three and nine months ended September 30, 2007. The correction of this error also reduced
the Beneficial Conversion Discount by $406,849 as of September 30, 2007. The recognition of this item did not affect the cash balance of the Company.

The Company also identified an error in the calculation of compensation cost for the three and nine months ended September 30, 2007. On April 18, 2007, options for 3,116,428 shares of common stock at an
exercise price of $1.35 were issued. On August 3, 2007, these options were cancelled and reissued at an exercise price of $0.79. Under SFAS 123R, the cancellation and reissuance of stock options should result in increased compensation cost over
the service period of the new option grant. Although the cancellation and reissuance of the stock options was previously disclosed in the financial statements, the additional compensation cost was not recorded in the financial statements for the
period ended September 30, 2007. Recognizing the additional compensation expense resulted in increased salary expense and increased net loss of $157,929 and $249,360, respectively, for the three and nine months ended September 30, 2007.
The recognition of this item did not affect the cash balance of the Company.

The following table reflects the restatement for each line on
the Companys unaudited Balance Sheet as of September 30, 2007:



|                                                   |  |                          |           |            |   |            |                 |  |   |            |  
|-------------------------------------------------- |  | ------------------------ | --------- | ---------- | - | ---------- | --------------- |  | - | ---------- | -
|                                                   |  | As of September 30, 2007 |          
|Line Item                                          |  | OriginalBalance          |           | Adjustment |   |            | RestatedBalance | 
|Mandatorily Redeemable Preferred Stock             |  | $                        |          |            | $ | 4,500,000  |                 |  | $ | 4,500,000  |  
|Preferred Stock, Beneficial Conversion Discount    |  | $                        |          |            | $ | (4,093,151 | )               |  | $ | (4,093,151 | )
|Preferred Stock, Discount on Convertible Liability |  | $                        |          |            | $ | 81,370     |                 |  | $ | 81,370     |  
|Shareholders Equity                               |  | $                        | 1,634,700 |            | $ | (488,219   | )               |  | $ | 1,146,481  |  



24



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The following table reflects the restatement for each line on the Companys unaudited Statement of
Operations for the three and nine months ended September 30, 2007:



|                                           |  |                                       |          |   |                                      |   |          |                 |  |   |                 |   |  |            |            |   |                 |   |          |   |  |   |            |  
|------------------------------------------ |  | ------------------------------------- | -------- | - | ------------------------------------ | - | -------- | --------------- |  | - | --------------- | - |  | ---------- | ---------- | - | --------------- | - | -------- | - |  | - | ---------- | -
|                                           |  | Three Months Ended September 30, 2007 |          |   | Nine Months Ended September 30, 2007 |  
|Line Item                                  |  | OriginalBalance                       |          |   | Adjustment                           |   |          | RestatedBalance |  |   | OriginalBalance |   |  | Adjustment |            |   | RestatedBalance |  
|Salaries                                   |  | $                                     | 191,609  |   |                                      | $ | 157,929  |                 |  | $ | 349,538         |   |  | $          | 466,653    |   |                 | $ | 249,360  |   |  | $ | 716,013    |  
|Total SG&A                                 |  | $                                     | 682,763  |   |                                      | $ | 157,929  |                 |  | $ | 840,692         |   |  | $          | 2,139,566  |   |                 | $ | 249,360  |   |  | $ | 2,388,926  |  
|Interest Expense                           |  | $                                     | 210,000  |   |                                      | $ | 272,219  |                 |  | $ | 482,219         |   |  | $          | 654,794    |   |                 | $ | 488,219  |   |  | $ | 1,143,013  |  
|Net Loss Before Taxes                      |  | $                                     | (914,782 | ) |                                      | $ | (430,148 | )               |  | $ | (1,344,930      | ) |  | $          | (2,973,704 | ) |                 | $ | (737,579 | ) |  | $ | (3,711,283 | )
|Net Loss                                   |  | $                                     | (914,782 | ) |                                      | $ | (430,148 | )               |  | $ | (1,344,930      | ) |  | $          | (2,973,704 | ) |                 | $ | (737,579 | ) |  | $ | (3,711,283 | )
|Dividends Declared on Preferred Stock      |  | $                                     |         |   |                                      | $ | (112,500 | )               |  | $ | (112,500        | ) |  | $          |           |   |                 | $ | (206,200 | ) |  | $ | (206,200   | )
|Net Loss Attributed to Common Shareholders |  | $                                     | (914,782 | ) |                                      | $ | (542,648 | )               |  | $ | (1,457,430      | ) |  | $          | (2,973,704 | ) |                 | $ | (943,779 | ) |  | $ | (3,917,483 | )
|Per Share Amounts                          |  |                                       |          |   |                                      |   |          |                 |  |   |                 |   |  |            |            |   |                 |   |          |   |  |   |            |  
|Net Loss                                   |  | $                                     | (0.01    | ) |                                      | $ |         |                 |  | $ | (0.01           | ) |  | $          | (0.04      | ) |                 | $ | (0.01    | ) |  | $ | (0.05      | )
|Dividends Declared on Preferred Stock      |  | $                                     |         |   |                                      | $ |         |                 |  | $ | (0.00           | ) |  | $          |           |   |                 | $ |         |   |  | $ | (0.00      | )
|Net Loss Attributed to Common Shareholders |  | $                                     | (0.01    | ) |                                      | $ |         |                 |  | $ | (0.01           | ) |  | $          | (0.04      | ) |                 | $ | (0.01    | ) |  | $ | (0.05      | )

Critical Accounting Policies and Significant Judgments and Estimates

Other than changes mentioned above under Restatements, there have been no material changes in our critical accounting policies or critical
accounting estimates since the filing of our initial registration statement on Form SB-2 in January 2006, nor have we adopted any accounting policy that has or will have a material impact on our consolidated financial statements. For further
discussion of our accounting policies see Note 2, Significant Accounting Policies in the Notes to Consolidated Financial Statements in this Quarterly Report on Form 10-QSB and the Notes to Consolidated Financial Statements in our Annual
Report on Form 10-KSB for the fiscal year ended December 31, 2006.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial
condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to its stockholders.



|Item 3. | Controls and Procedures
|------- | -----------------------

Evaluation of Disclosure Controls
and Procedures

Our CEO and CFO have evaluated the effectiveness of our disclosure controls and procedures pursuant to Exchange Act
Rule 13a-15(b) as of the end of the period covered by this report. Our disclosure controls and procedures are designed to ensure that information that is required to be included in our filings with the SEC is recorded, processed, summarized and
reported within the time periods specified by the SEC, and that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Based on that
evaluation, they have concluded that our current disclosure controls and procedures were not effective as of the end of the period covered by this Quarterly Report on Form 10-QSB because of the material weaknesses discussed below.

Identification of a Material Weakness

A
material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected.



25



---

As part of managements analysis of comments received from the SEC in the review of a registration
statement previously filed by us, our CFO began an internal review of the accounting treatment of the issuance of the Companys Series A Preferred. Based on the results of this internal review, on March 24, 2008, our Audit Committee
concluded that the Unaudited Condensed Consolidated Balance Sheet as of September 30, 2007, and the related Unaudited Condensed Consolidated Statements of Operations for the three and nine month periods ended September 30, 2007, that were
presented in our Quarterly Report on Form 10-QSB for the quarterly period ended September 30, 2007, contained errors relating to the accounting of this financing transaction, and that these Unaudited Condensed Consolidated Financial Statement
should be amended and restated. See Note 2 of Notes to Consolidated Financial Statements for a discussion of the nature of these errors.

During the preparation of the financial statements for the year ended December 31, 2007, the Company identified an error in the calculation of compensation cost for the three and nine months ended September 30, 2007. On
April 18, 2007, options for 3,116,428 shares of common stock at an exercise price of $1.35 were issued. On August 3, 2007, these options were cancelled and reissued as an exercise price of $0.79. Under SFAS 123R, the cancellation and
reissuance of stock options should result in increased compensation cost over the service period of the new option grant. Although the cancellation and reissuance of the stock options was previously disclosed in the financial statements, the
additional compensation cost was not recorded in the financial statements for the three and nine month periods ended September 30, 2007. See Note 2 of the Notes to Condensed Consolidated Financial Statements presented under Item 1 of this
Quarterly Report on Form 10-QSB for a discussion of this error.

As a result of the restatements described above, our management has
determined that material weaknesses existed in our internal controls over financial reporting with respect to the analysis of and accounting for the financing transaction and stock option grant. Due to the material weaknesses in internal control
over financial reporting, our CEO and our CFO concluded that, as of September 30, 2007, our disclosure controls and procedures were not effective.

Remediation of Material Weaknesses

In March 2008, the Company identified the need for additional consultative
accounting guidance on unusual, infrequent or significant accounting transactions. In response, the Audit Committee of our Board of Directors engaged Saville, Dodgen & Company, P.A., an independent licensed accounting firm, to provide
technical accounting guidance on all financing transactions, equity transactions and other extraordinary transactions consummated by the Company outside of the ordinary course of business. Saville, Dodgen will provide accounting research and
guidance to augment the skills of our internal staff on an ongoing basis.

Upon the March 1, 2008 resignation of our Chief Financial
Officer, we identified the need to obtain a licensed CPA to fill the role of Chief Financial Officer on an interim basis. In March 2008, the Company appointed Mr. David Hart as Interim Chief Financial Officer to satisfy this need. Mr. Hart has
extensive senior management experience with public and private companies, as well as significant experience with public company financial reporting. Mr. Hart is performing a major role in ensuring the accuracy and completeness of our financial
reporting and the effectiveness of our disclosure controls and procedures.

We believe that the addition of Mr. Hart as the Interim Chief
Financial Officer and the engagement of Saville, Dodgen will be sufficient to remediate the material weaknesses in the Companys Disclosure controls and procedures described above.

Changes in Internal Control Over Financial Reporting

Other than that described above, there
has not been any change in our internal control over financial reporting, that occurred during the fiscal quarter covered by this Quarterly Report on Form 10-QSB, that has materially affected, or is reasonably likely to materially affect, our
internal control over financial reporting.



26



---

PART II - OTHER INFORMATION



|Item 6. | Exhibits.
|------- | ---------

A list of the exhibits required by Item 601 of
Regulation S-B and filed as part of this report is set forth in the Index to Exhibits on page 29, which immediately precedes such exhibits.



27



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SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.



|                     |  |  |  |                                      |  |                         |  |                                                                        
|-------------------- |  |  |  | ------------------------------------ |  | ----------------------- |  | -----------------------------------------------------------------------
|                     |  |  |  | PLATINUM RESEARCH ORGANIZATION, INC.
|                     |  |  | 
|Date: March 31, 2008 |  |  |  | By:                                  |  | /s/ John T. Jaeger, Jr.
|                     |  |  |  |                                      |  |                         |  | John T. Jaeger, Jr.                                                    
|                     |  |  |  |                                      |  |                         |  | President, Chief Executive Officer and Member of the Board of Directors
|                     |  |  | 
|Date: March 31, 2008 |  |  |  | By:                                  |  | /s/ David A. Hart      
|                     |  |  |  |                                      |  |                         |  | David A. Hart                                                          
|                     |  |  |  |                                      |  |                         |  | Interim Chief Financial Officer                                        



28



---

EXHIBIT INDEX



|            |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|----------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit No. |  | Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|            | 
|2.1         |  | Contribution Agreement, dated October 26, 2006, by and among Platinum Research Organization, LP, Lubrication Partners, joint venture, Platinum IP Management, Inc., John T. (Cork) Jaeger as the
representative of the partners of Platinum Research Organization, LP, and Steve Drayton as the representative of all certain individuals who invested in the Company in a private placement completed in conjunction with the Contribution Agreement
(incorporated by reference to Exhibit 2.1 filed with the Companys Current Report on Form 8-K/A-1 dated October 26, 2006).
|            | 
|2.2         |  | Amendment to Contribution Agreement dated December 26, 2006. (incorporated by reference to Exhibit 4.1 filed with the Companys Current Report on Form 8-K dated January 9,
2007).                                                                                                                                                                                                                                                                                                                                                                                              
|            | 
|2.3         |  | Amendment to Contribution Agreement dated February 28, 2007. (incorporated by reference to Exhibit 4.1 filed with the Companys Current Report on Form 8-K dated February 28,
2007).                                                                                                                                                                                                                                                                                                                                                                                            
|            | 
|3.1*        |  | Certificate of Incorporation of Platinum Research Organization, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|            | 
|3.2*        |  | Bylaws of Platinum Research Organization, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|            | 
|4.1         |  | Certificate of Designations for Series A Preferred Stock (incorporated by reference to Exhibit 4.1 to the Companys Current Report on Form 8-K dated April 18,
2007).                                                                                                                                                                                                                                                                                                                                                                                                         
|            | 
|4.2         |  | Registration Rights Agreement, dated April 18, 2007, between the Company, the investors named therein, Investa Corporation and Cecilia Pineda (incorporated by reference to Exhibit 4.4 filed with
the Companys Current Report on Form 8-K dated October 26, 2006).                                                                                                                                                                                                                                                                                                            
|            | 
|4.3         |  | Lock-Up Agreement, dated April 18, 2007, between the Company, Lubrication Partners, Joint Venture and Lubrication Partners, L.P Pineda (incorporated by reference to Exhibit 4.7 filed with the
Companys Current Report on Form 8-K dated October 26, 2006).                                                                                                                                                                                                                                                                                                                   
|            | 
|4.4         |  | Voting Agreement, dated April 18, 2007, between the Company, Lubrication Partners, Joint Venture and Lubrication Partners, L.P. Pineda (incorporated by reference to Exhibit 4.6 filed with the
Companys Current Report on Form 8-K dated October 26, 2006).                                                                                                                                                                                                                                                                                                                   
|            | 
|10.1        |  | Exclusive Distribution Agreement, dated July 25, 2007, between R.T. Vanderbilt Company, Inc. and Platinum Research Organization,
Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                           
|            | 
|10.2*       |  | Form of Non-Qualified Stock Option Agreement under the Platinum Research Organization, Inc. Stock Incentive Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|            | 
|10.3*       |  | Form of Directors Non-Qualified Stock Option Agreement under the Platinum Research Organization, Inc. Stock Incentive
Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|            | 
|31.1        |  | Certificate of CEO as Required by Rule 13a-14(a)/15d-14.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|            | 
|31.2        |  | Certificate of CFO as Required by Rule 13a-14(a)/15d-14.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|            | 
|32.1        |  | Certificate of CEO and CFO as Required by Rule 13a-14(b) and Rule 15d-14(b) (17 CFR 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code.                                                                                                                                                                                                                                                                                                                                                                                                        



|* | Filed Previously
|- | ----------------



29