**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington**
**,      D.C. 20549**

**FORM      10-QSB**

**MOSAIC      NUTRACEUTICALS CORP.**

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

**APPLICABLE      ONLY TO ISSUERS INVOLVED IN BANKRUPTCY**

**PROCEEDINGS      DURING THE PRECEDING FIVE YEARS**

**APPLICABLE      ONLY TO CORPORATE ISSUERS**

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***Table          of Contents***

**TABLE      OF CONTENTS**

**PART      I **
**FINANCIAL      INFORMATION**

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

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

**Item      3.** **Controls      and Procedures**

**PART      II **
**OTHER      INFORMATION**

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

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

**Item      3.** **Defaults      Upon Senior Securities**

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

**Item      5.** **Other      Information**

**Item      6.** **Exhibits** 

**SIGNATURES**

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***Table          of Contents***

**PART      I**

**FINANCIAL      INFORMATION**

**Item      1.** **FinancialStatements**

**MOSAIC      NUTRACEUTICALS, CORP.**

**(A      Development Stage Enterprise)**

**FINANCIAL      REPORTS**

**(UNAUDITED)**

**SEPTEMBER      30, 2006**

**DECEMBER      31, 2005**

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP.**

**(A      Development Stage Enterprise)**

**Contents**

| REPORT                OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
|------------------------------------------------------------------------|
|                                                                   |   |
| FINANCIAL                STATEMENTS                                    |   |
|                                                                   |   |
| Balance                Sheets                                          | F-2 |
|                                                                   |   |
| Statements                of Operations                                | F-3 |
|                                                                   |   |
| Statements                of Stockholders’ Equity                | F-4 |
|                                                                   |   |
| Statements                of Cash Flows                                | F-5 |
|                                                                   |   |
| Notes                to Financial Statements                           | F-                6 - F -9 |
|                                                                   |   |

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***Table          of Contents***

**Report      of Independent Registered Public Accounting Firm**

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP.**

**(A      Development Stage Enterprise)**

**BALANCE      SHEETS**

|                                                              |   | September                30, |       | December                31, |   |
|-------------------------------------------------------------------|--------|------------------------------|------------|-----------------------------|--------|
|                                                              |   | 2006                         |       | 2005                        |   |
|                                                              |   | (Unaudited)                  |       |                        |   |
| ASSETS                                                            |   |                         |       |                        |   |
| CURRENT                ASSETS                                     |   |                         |       |                        |   |
| Cash                                                              |   | $                            | 2,880      |                        | $      | 143 |   |
| Accounts                receivable                                |   |                         | --         |                        |   | 1,003 |   |
| Other                receivable                                   |   |                         | 101,963    |                        |   | 101,964 |   |
| Inventory                                                         |   |                         | 113,759    |                        |   | 91,257 |   |
| Prepaid                expenses                                   |   |                         | 105,000    |                        |   | 160,485 |   |
| Total                current assets                               |   | $                            | 320,881    |                        | $      | 354,852 |   |
|                                                              |   |                         |       |                        |   |   |   |
| OTHER                ASSETS                                       |   |                         |       |                        |   |   |   |
| Deposits                                                          |   | $                            | --         |                        | $      | 2,889 |   |
| Fixed                assets, net                                  |   |                         | 10,243     |                        |   | 34,628 |   |
| Intangible                assets, net                             |   |                         | 16,000     |                        |   | 20,500 |   |
|                                                              |   |                         |       |                        |   |   |   |
| Total                assets                                       |   | $                            | 349,845    |                        | $      | 412,869 |   |
|                                                              |   |                         |       |                        |   |   |   |
| LIABILITIES                AND STOCKHOLDERS’ EQUITY         |   |                         |       |                        |   |   |   |
|                                                              |   |                         |       |                        |   |   |   |
| CURRENT                LIABILITIES                                |   |                         |       |                        |   |   |   |
| Accounts                payable and accrued expenses              |   | $                            | 216,675    |                        | $      | 116,383 |   |
| Accrued                officer compensation and taxes             |   |                         | 145,327    |                        |   | -- |   |
| Officer                payable                                    |   |                         | 8,500      |                        |   | -- |   |
| Customer                Deposit                                   |   |                         | 4,000      |                        |   | 4,000 |   |
| Notes                payable                                      |   |                         | 19,876     |                        |   | 19,876 |   |
| Total                current liabilities                          |   | $                            | 394,378    |                        | $      | 140,259 |   |
|                                                              |   |                         |       |                        |   |   |   |
| STOCKHOLDERS’                EQUITY                         |   |                         |       |                        |   |   |   |
| Preferred                stock: $0.001 par value; authorized      |   |                         |       |                        |   |   |   |
| 5,000,000                shares; no shares issued and outstanding |   |                         |       |                        |   |   |   |
| Common                stock: $0.001 par value;                    |   |                         |       |                        |   |   |   |
| authorized                100,000,000 shares; issued and          |   |                         |       |                        |   |   |   |
| outstanding:                55,209,029 September 30, 2006,   |   |                         |       |                        |   |   |   |
| 54,653,242                and December 31, 2005:                  |   | $                            | 55,209     |                        | $      | 54,653 |   |
| Additional                paid in capital                         |   |                         | 2,215,372  |                        |   | 2,047,928 |   |
| Accumulated                deficit during development stage       |   |                         | (2,315,114 | )                           |   | (1,829,971 | ) |
|                                                              |   |                         |       |                        |   |   |   |
| Total                stockholders’ equity (deficit)         |   | $                            | (44,533    | )                      | $      | 272,610 |   |
|                                                              |   |                         |       |                        |   |   |   |
| Total                liabilities and                              |   |                         |       |                        |   |   |   |
| stockholders’                equity (deficit)               |   | $                            | 349,845    |                        | $      | 412,869 |   |

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP.**

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

**(A      Development Stage Enterprise)**

**STATEMENTS      OF OPERATIONS**

|                                                  |   |                              |         |                             |    |                          |    |                         |         | Aug                8, 1990   |    |
|-------------------------------------------------------|--------|-----------------------------------|--------------|----------------------------------|---------|-------------------------------|---------|------------------------------|--------------|------------------------------|---------|
|                                                  |   | Three                months ended |         | Nine                months ended |    | (inception)                to |    |
|                                                  |   | September30,                      |         | September                30,     |    | September                30,  |    | September                30, |         | September                30, |    |
|                                                  |   | 2006                              |         | 2005                             |    | 2006                          |    | 2005                         |         | 2006                         |    |
|                                                  |   | (unaudited)                       |         |                             |    | (unaudited)                   |    |                         |         | (unaudited)                  |    |
|                                                  |   |                              |         |                             |    |                          |    |                         |         |                         |    |
| Revenues                                              |   | $                                 | --           |                             | $       | 5,290                         |    | $                            | 6,448        |                         | $       | 5,992 |   | $ | 16,495 |   |
|                                                  |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
| Cost                of revenue                        |   |                              | --           |                             |    | 1,608                         |    |                         | 3,048        |                         |    | 1,729 |   |   | 5,979 |   |
|                                                  |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
| Gross                profit                           |   | $                                 | --           |                             | $       | 2,682                         |    | $                            | 3,400        |                         | $       | 4,263 |   | $ | 10,516 |   |
|                                                  |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
| General,                selling and                   |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
| administrative                expenses                |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
| Operating                expenses                     |   | $                                 | 113,553      |                             | $       | 764,523                       |    | $                            | 474,036      |                         | $       | 1.023.461 |   | $ | 2,239,248 |   |
| Depreciation                and amortization          |   |                              | 2,213        |                             |    | 3,061                         |    |                         | 8,392        |                         |    | 6.956 |   |   | 21,937 |   |
| Operating                loss                         |   |                              | (115,766     | )                                | $       | (763,902                      | )       | $                            | (479,028     | )                            | $       | (1,026,154 | ) | $ | (2,250,669 | ) |
|                                                  |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
| Nonoperating                income (expense)          |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
|                 Interest expense            |   | $                            | (398         | )                           | $  | (400                          | )  | $                       | (1,222  | )                       | $  | (1,208  | )  | $  | (3,475  | )  |
|    Loss              on sale of assets |   |                              | (4,893  | )                           |    | --                       |    |                         | (4,893  | )                       |    | --  |   |   | (4,893  | )  |
|                                                  |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
| Net                loss                               |   | $                                 | (121,057     | )                                | $       | (764,302                      | )       | $                            | (485,143     | )                            | $       | (213,060 | ) | $ | (2,259,037 | ) |
|                                                  |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
| Net                loss per share, basic              |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
| and                diluted                            |   | $                                 | (0.00        | )                                | $       | (0.00                         | )       | $                            | (0.01        | )                            | $       | (0.02 | ) |   |   |   |
|                                                  |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
| Weighted                Average number                |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
| of                shares of common stock              |   |                              |         |                             |    |                          |    |                         |         |                         |    |   |   |   |   |   |
| outstanding                                           |   |                              | 55,209,029   |                             |    | 53,299,935                    |    |                         | 55,141,895   |                         |    | 52,301,417 |   |   |   |   |

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP.**

**(A      Development Stage Enterprise)**

**STATEMENTS      OF STOCKHOLDERS’ EQUITY (DEFICIT)**

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

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP.**

**(A      Development Stage Enterprise)**

**STATEMENTS      OF STOCKHOLDERS’ EQUITY**

|                                                 |   |                        |       |    |   |       |   |        |      |  Accumulated               |   |         |   |
|------------------------------------------------------|--------|-----------------------------|------------|---------|--------|------------|--------|-------------|-----------|---------------------------------|--------|---------|--------|
|                                                 |   |                        |       |    |   | Additional |   | Common      |      | (Deficit)                During |   |    |   |
|                                                 |   | Common                Stock |       | Paid-In |   | Stock      |   | Development |      |                            |   |
|                                                 |   | Shares                      |       | Amount  |   | Capital    |   | Subscribed  |      | Stage                           |   | Total   |   |
|                                                 |   |                        |       |    |   |       |   |        |      |                            |   |    |   |
| Balance,                December 31, 2004            |   |                        | 50,244,800 |    | $      | 50,245     |   | $           | 486,927   |                            | $      | 20,000  |   | $ | (542,706 | ) | $ | 14,466 |   |
|                                                 |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   |   |   |   |   |   |
| Issue                subscribed stock                |   |                        | 33,334     |    |   | 33         |   |        | 19,967    |                            |   | (20,000 | )      |   |   |   |   | -- |   |
| Stock                subscribed                      |   |                        | 333,334    |    |   | 333        |   |        | 49,667    |                            |   |    |   |   |   |   |   | 50,000 |   |
| Stock                subscribed in settlement of     |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   |   |   |   |   |   |
| accounts                payable                      |   |                        | 119,520    |    |   | 120        |   |        | 17,809    |                            |   |    |   |   |   |   |   | 17,929 |   |
| Stock                issued for services             |   |                        | 1,852,557  |    |   | 1,853      |   |        | 1,005,647 |                            |   |    |   |   |   |   |   | 1,007,500 |   |
| Stock                issued, net of acquisition fees |   |                        | 2,069,697  |    |   | 2,069      |   |        | 467,911   |                            |   |    |   |   |   |   |   | 469,980 |   |
| Net                loss, December 31, 2005           |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   | (1,287,265 | ) |   | (1,287,265 | ) |
|                                                 |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   |   |   |   |   |   |
| Balance,                December 31, 2005            |   |                        | 54,653,242 |    | $      | 54,653     |   | $           | 2,047,928 |                            | $      | --      |   | $ | (1,829,971 | ) | $ | 272,610 |   |
|                                                 |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   |   |   |   |   |   |
| Stock                issued                          |   |                        | 120,001    |    |   | 120        |   |        | 17,880    |                            |   |    |   |   |   |   |   | 18,000 |   |
| Stock                issued for services             |   |                        | 435,786    |    |   | 436        |   |        | 149,564   |                            |   |    |   |   |   |   |   | 150,000 |   |
| Net                loss, September 30, 2006          |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   | (485,143 | ) |   | (485,143 | ) |
|                                                 |   |                        |       |    |   |       |   |        |      |                            |   |    |   |   |   |   |   |   |   |
| Balance,                September 30, 2006           |   |                        | 55,209,029 |    | $      | 55,209     |   | $           | 2,215,372 |                            | $      | --      |   | $ | (2,315,114 | ) | $ | (44,533 | )  |

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP.**

**(A      Development Stage Enterprise)**

**STATEMENTS      OF CASH FLOWS**

|                                                                            |   |                             |         |                          |    | Aug.                8, 1990 |   |
|---------------------------------------------------------------------------------|--------|----------------------------------|--------------|-------------------------------|---------|-----------------------------|--------|
|                                                                            |   | Nine                Months Ended |         | (inception)                to |    |
|                                                                            |   | September 30,               |         | September                30,  |    |
|                                                                            |   | 2006                             |         | 2005                          |    | 2006                        |   |
|                                                                            |   | (unaudited)                      |         |                          |    | (unaudited)                 |   |
|                                                                            |   |                             |         |                          |    |                        |   |
| Cash                Flows From Operating Activities                             |   |                             |         |                          |    |                        |   |   |   |   |
| Net                loss                                                         |   | $                                | (485,143     | )                             | $       | (1,027,362                  | )      | $ | (2,259,037 | ) |
| Adjustments                to reconcile net loss to cash used in                |   |                             |         |                          |    |                        |   |   |   |   |
| operating                activities:                                            |   |                             |         |                          |    |                        |   |   |   |   |
| Depreciation                and amortization                                    |   |                             | 8,392        |                          |    | 6,956                       |   |   | 21,937 |   |
|    Loss              on Disposition of assets                    |   |                             |  4,893  |                          |    | --                          |   |   | 4,893 |   |
| Stock                based expenses                                             |   |                             | 150,000      |                          |    | 700,000                     |   |   | 1,432,387 |   |
| Stock                based compensation                                         |   |                             | 52,500       |                          |    | --                          |   |   | 65,500 |   |
| Interest                expense paid by stock                                   |   |                             | --           |                          |    | --                          |   |   | 300 |   |
| Changes                in assets and liabilities                                |   |                             |         |                          |    |                        |   |   |   |   |
| Decrease                in accounts receivables                                 |   |                             | 1,003        |                          |    | --                          |   |   | -- |   |
| (Increase)                in other receivables                                  |   |                             | --           |                          |    | --                          |   |   | (101,963 | ) |
| (Increase)                in inventory                                          |   |                             | (22,502      | )                             |    | (143,947                    | )      |   | (113,759 | ) |
| (Increase)                decrease in prepaid expenses                          |   |                             | 2,985        |                          |    | (128,417                    | )      |   | -- |   |
| (Increase)                decrease in deposits                             |   |                             | 2,889        |                          |    | (2,889                      | )      |   | -- |   |
| Increase                in customer deposits                                    |   |                             | --           |                          |    | --                          |   |   | 4,000 |   |
| Increase                in accounts payable and accrued liabilities             |   |                             | 245,620      |                          |    | 88,795                      |   |   | 379,931 |   |
| Net                cash used in operating activities                            |   | $                                | (39,363      | )                             | $       | (506,864                    | )      | $ | (565,811 | ) |
|                                                                            |   |                             |         |                          |    |                        |   |   |   |   |
| Cash                Flows From Investing Activities                             |   |                             |         |                          |    |                        |   |   |   |   |
| Purchase                of fixed assets                                         |   | $                                | --           |                          | $       | (38,674                     | )      | $ | (38,674 | ) |
| Purchase                of intangible asset                                     |   |                             | --           |                          |    | --                          |   |   | (30,000 | ) |
|                 Proceeds from sale of assets                          |   |                             | 15,600  |                          |    |  --                    |   |   |  15,600 |   |
| Acquisitions,                net of cash acquired                               |   |                             | --           |                          |    | --                          |   |   | 591 |   |
| Net                cash used in investing activities                            |   | $                                | 15,600       |                          | $       | (38,674                     | )      |   | (52,483 | ) |
|                                                                            |   |                             |         |                          |    |                        |   |   |   |   |
| Cash                Flows From Financing Activities                             |   |                             |         |                          |    |                        |   |   |   |   |
| Issuance                of common stock                                         |   | $                           | 18,000       |                          |  $ | 550,000                     |   |  $ | 561,505 |   |
| Proceeds                from notes payable                                      |   |                             | --           |                          |    | --                          |   |   | 49,876 |   |
| Loan                from officer                                                |   |                             | 8,500        |                          |    | --                          |   |   | 8,500 |   |
| Contribution                of capital                                          |   |                             | --           |                          |    | --                          |   |   | 1,293 |   |
| Net                cash provided by financing activities                        |   | $                                | 26,500       |                          | $       | 550,000                     |   | $ | 621,174 |   |
|                                                                            |   |                             |         |                          |    |                        |   |   |   |   |
| Net                increase in cash                                             |   | $                                | 2,737        |                          | $       | 4,462                       |   | $ | 2,880 |   |
| Cash,                beginning of period                                        |   | $                                | 143          |                          | $       | 2,519                       |   | $ | -- |   |
| Cash,                end of period                                              |   | $                                | 2,880        |                          | $       | 6,981                       |   | $ | 2,880 |   |
|                                                                            |   |                             |         |                          |    |                        |   |   |   |   |
| Supplemental                Information and Non-monetary Transactions:          |   |                             |         |                          |    |                        |   |   |   |   |
|                                                                            |   |                             |         |                          |    |                        |   |   |   |   |
| Interest                paid                                                    |   | $                                | 6            |                          | $       | 742                         |   | $ | 763 |   |
| Taxes                paid                                                       |   | $                                | --           |                          | $       | --                          |   | $ | -- |   |
| Stock                issued in settlement of accounts payable, 119,520 shares   |   | $                                | --           |                          | $       | 17,929                      |   | $ | 17,929 |   |
| Stock                issued for advertising services, 1,000,000 shares at $0.50 |   | $                                | 150,000      |                          | $       | 700,000                     |   | $ | 1,000,000 |   |
| Warrants                issued for distribution services                        |   | $                                | --           |                          | $       | --                          |   | $ | 432,387 |   |
| Stock                issued for debt 233,000 shares at $0.13                    |   | $                                | --           |                          | $       | --                          |   | $ | 30,300 |   |
| Stock                issued for directors fees 450,000 shares                   |   | $                                | --           |                          | $       | 157,500                     |   | $ | 157,500 |   |

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP.**

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

**(A      Development Stage Enterprise)**

**NOTES      TO FINANCIAL STATEMENTS**

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

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

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

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP.**

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

**(A      Development Stage Enterprise)**

**NOTES      TO FINANCIAL STATEMENTS**

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

| Notes                payable consist of the following:                             |   |   | September                30,2006 |   |   | December                31,2005 |   |
|------------------------------------------------------------------------------------|--------|--------|----------------------------------|--------|--------|---------------------------------|--------|
| Notes                payable, at 8% interest, due November                19, 2005 |   | $      | 10,000                           |   | $      | 10,000                          |   |
| Notes                payable, at 8% interest, due September                7, 2005 |   |   | 9,876                            |   |   | 9,876                           |   |
|  Short                term notes payable                                      |   | $      | 19,876                           |   | $      | 19,876                          |   |

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

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***Table          of Contents***

**MOSAIC      NUTRACEUTICALS, CORP. **

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

**(A      Development Stage Enterprise)**

**NOTES      TO FINANCIAL STATEMENTS**

**Note      3.**
**Commitments      and Contingencies**

**Note        4.   **
**Related        party transactions**

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***Table          of Contents***

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

** **

** **

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

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***Table          of Contents***

**PART      II**

**OTHER      INFORMATION**

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

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

**Item      3.** **DefaultsUpon      Senior Securities**

**Item      4.** **Submissionof      Matters to a Vote of Security      Holders**

**Item      5.** **OtherInformation**

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***Table          of Contents***

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

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

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**SIGNATURES**

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