UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-K

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

                  For the fiscal year ended September 30, 2010

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

         For the transition period from ______________to________________

                        Commission file number 000-50331

                            UPSTREAM BIOSCIENCES INC.
             (Exact name of registrant as specified in its charter)

           Nevada                                                98-0371433
(State or other jurisdiction of                               (I.R.S. Employer
 incorporation or organization)                              Identification No.)

 71130, 198 - 8060 Silver Spring Blvd.
       Calgary, Alberta Canada                                    T3B 5K2
(Address of principal executive offices)                         (Zip Code)

                                  403.537.2516
              (Registrant's telephone number, including area code)

              Securities registered under Section 12(b) of the Act:

       None                                               N/A
Title of each class                    Name of each exchange on which registered


              Securities registered under Section 12(g) of the Act:

                         Common Stock, $0.001 par value
                                (Title of class)

Indicate by checkmark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act. Yes [ ] No [X]

Indicate by checkmark if the registrant is not required to file reports pursuant
to Section 13 or 15(d) of the Act. Yes [ ] No [X]

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

Indicate by check mark whether the registrant has submitted electronically and
posted on its corporate Web site, if any, every Interactive Data File required
to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of
this chapter) during the preceding 12 months (or for such shorter period that
the registrant was required to submit and post such files). Yes [ ] No [ ] (Not
currently applicable to the Registrant).

Indicate by checkmark if disclosure of delinquent filers pursuant to Item 405 of
Regulation S-K (ss. 229.405 of this chapter) is not contained herein, and will
not be contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. [ ]

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

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

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

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates computed by reference to the price at which the common equity
was last sold, or the average bid and asked price of such common equity, as of
the last business day of the registrant's most recently completed second fiscal
quarter: $511,681 based on a price of $0.012 per share, being the average bid
and asked price of such common equity as of March 31, 2010.

              APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY
                     PROCEEDINGS DURING THE PAST FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes [ ] No [ ]

                    APPLICABLE ONLY TO CORPORATE REGISTRANTS

Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date. 34,122,065 shares of common
stock as of September 30, 2011.

                       DOCUMENTS INCORPORATED BY REFERENCE

List hereunder the following documents if incorporated by reference and the Part
of the Form 10-K (e.g., Part I, Part II, etc.) into which the document is
incorporated: (1) any annual report to security holders; (2) any proxy or
information statement; and (3) any prospectus filed pursuant to Rule 424(b) or
(c) of the Securities Act of 1933. The listed documents should be clearly
described for identification purposes (e.g., annual report to security holders
for fiscal year ended December 24, 1980). Not Applicable
<PAGE>
                                     PART I

FORWARD LOOKING STATEMENTS

This annual report contains forward-looking statements that involve risk,
uncertainties and assumptions. In some cases, you can identify forward-looking
statements by terminology such as "may", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", "potential" or "continue" or the
negative of these terms or other comparable terminology. Examples of
forward-looking statements made in this annual report on Form 10-K include
statements about:

     *    Our business plans,

     *    Our ability to raise additional finances, and

     *    Our future investments and allocation of capital resources.

These statements are only predictions and involve known and unknown risks,
uncertainties and other factors, including:

     *    General economic and business conditions,

     *    Our lack of operating history,

     *    Our financial condition,

     *    Our material weakness in our internal control over financial
          reporting,

     *    Our patents are only a provisional patent, and

     *    The risks in the section of this annual report entitled "Risk
          Factors",

any of which may cause our or our industry's actual results, levels of activity,
performance or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied by these
forward-looking statements.

While these forward-looking statements and any assumptions upon which they are
based are made in good faith and reflect our current judgment regarding the
direction of our business, actual results will almost always vary, sometimes
materially, from any estimates, predictions, projections, assumptions or other
future performance suggested herein. Except as required by applicable law,
including the securities laws of the United States, we do not intend to update
any of the forward-looking statements to conform these statements to actual
results

The following discussion and analysis should be read in conjunction with the
financial statements and related notes and the other financial information
appearing elsewhere in this annual report. Our financial statements are stated
in United States dollars and are prepared in accordance with United States
Generally Accepted Accounting Principles.

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

As used in this report and unless otherwise indicated, the terms "we", "us" and
"our" refer to Upstream Biosciences Inc. and our wholly-owned subsidiaries.

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<PAGE>
ITEM 1. BUSINESS

CORPORATE DEVELOPMENTS

We were incorporated pursuant to the laws of the State of Nevada on March 20,
2002 under the name Integrated Brand Solutions Inc. and on February 6, 2006, we
changed our name to Upstream Biosciences Inc.

We have not generated any revenues from our technologies to date. On August 10,
2009, our company issued a press release announcing that we were actively
seeking licensors or acquirors for our novel anti-parasitic drug discovery
portfolio and cancer diagnostic platform. To that end, our company formed an
independent committee of the board to assess the strategic direction of our
company. During the four months following the issuance of the press release, the
independent board shortlisted a number of potential candidates that may have had
interest in the acquisition of our company's pharmaceutical business as formerly
held by our subsidiary Pacific Pharma Technologies Inc. Our independent
committee contacted such organizations but discussions did not result in any
offers or agreements to acquire such assets.

After several months, our company continued to face challenges in raising funds
due to the continued financial downturn, especially for early-stage life
sciences companies. To this end, and as discussed in our periodic reports, Joel
Bellenson and Dexster Smith, both former directors and officers of our company,
agreed to voluntarily defer their salaries for the 2009 calendar year, or until
such time that our company completed a sizeable financing. TCF Ventures Corp., a
company through which Tim Fernback provided services as chief financial officer
of our company, agreed to defer a portion of the amounts owed to him for
consulting services on the understanding that such amounts would be repaid when
our company obtained sufficient funds. However, a dispute arose as to the terms
of the deferral as discussed under the heading "Item 3 - Legal Proceedings".
Following the continued downturn, low cash reserves, no available financing, and
the commencement of litigation with TCF Ventures, our company was left with two
available options. The first option was to restructure our company, including a
change of its management and board of directors, and the second option was
bankruptcy. As bankruptcy would effectively prevent our shareholders from
realizing any value in our company, the board agreed to restructure our company.
As a result, and following a write-down of the pharmaceutical business operated
by Pacific Pharma, our wholly-owned subsidiary, we entered into the Asset Sale
Agreement to transfer such assets as described below under the heading "Asset
Sale Agreement". Joel Bellenson and Dexster Smith then agreed to enter into
return to treasury agreements and cancel the remaining stock held by them to
treasury for no consideration. The entire board of directors and management
resigned but not before appointing Mike McFarland as sole director and officer
of our company. Following the appointment of the new director, the new board of
directors intends to seek out viable business opportunities in order to maximize
shareholder value.

ASSET SALE AGREEMENT

On December 14, 2009, our subsidiary, Pacific Pharma, a British Columbia
company, entered into and closed an asset sale agreement with JTAT Consulting
Inc., a company wholly-owned by Art Cherkasov. Pursuant to the terms of the
agreement, Pacific Pharma sold all of the assets held by Pacific Pharma to JTAT
Consulting for the payment of $1.00. The assets included the URL domain name
www.pacificpharmatech.com, Pacific Pharma's patents, patent applications, and
inventions, methods, processes and discoveries that may be patentable, Pacific
Pharma's know-how, trade secrets, confidential information, technical
information, data, process technology and plans and drawings, owned, used, or
licensed by Pacific Pharma as licensee or licensor. Our board of directors
decided to proceed with the write-down following our inability to find any
potential acquiror or licensor to purchase the assets and advance the technology
and upon deciding to cease any further research and development of this segment
of our business. The write-down resulted in an impairment charge of $59,010 and
a loss on disposal of $78,570. Our company does not believe that this amount
will result in any future cash expenditures.

RETURN TO TREASURY AGREEMENTS

In connection with the restructuring of our company, and on December 4, 2009, we
entered into a return to treasury agreement with each of Joel Bellenson and
Dexster Smith. Pursuant to the terms of the agreements, each of Mr. Bellenson
and Mr. Smith agreed to return 8,095,470 restricted common shares to the
treasury of our company for cancellation without consideration effective
December 4, 2009. Following the share cancellations, each of Joel Bellenson and
Dexster Smith held nil shares in our company.

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<PAGE>
OPTION TERMINATION AGREEMENTS

On December 14, 2009, Mr. Bellenson and Mr. Smith, both former directors and
officers of our company, entered into Option Termination Agreements with our
company, whereby the 400,000 options held by each person were immediately
cancelled.

RELEASE WITH FORMER DIRECTORS AND MANAGEMENT

On December 14, 2009, our company executed a mutual release with each of Mr.
Bellenson and Mr. Smith, whereby each party agreed to release the other for all
claims each party may have against the other.

OUR BUSINESS

Our business strategy is to generate revenues through licensing our technologies
or collaborating with third parties in the disease susceptibility, biomarkers
identification, and drug response areas of cancer, primarily to companies that
develop and/or market developing diagnostic products.

On June 27, 2008, we re-filed a provisional patent application on genetic
markers that, following successful development and testing, may assist in
determining the susceptibility of patients to liver cancer. These markers may
also be important for determining the susceptibility of patients to other types
of cancer, such as prostate or other cancers. On June 27, 2008, we re-filed a
provisional patent application on an assay for identifying genetic markers that
may predict a patient's response to a drug entitled "In-Vivo Assay, Database and
Software Algorithm for using Liver Enzyme CIS-Regulatory Allelic Binding
Affinities to Profile and Predict a Haplotype's Drug Response". On August 13,
2008, we re-filed the three provisional patents that related to genetic
biomarkers for prostate, ovarian and thyroid cancer susceptibility. On July 22,
2010, we re-filed the five above noted provisional patents along with
provisional patents for "Three-Dimensional Genetic-Variant QSAR Methods" and
"Anti-Parasitic Compounds and Methods for Selection Thereof."

OTHER BUSINESS OPPORTUNITIES

Simultaneously with our genetic diagnostic business, we are seeking new
acquisitions and/or business opportunities with established business entities
for the merger of a business with our company. In certain instances, a business
may wish to become a subsidiary of us or may wish to contribute assets to us
rather than merge. We are not currently in negotiations with any parties to
enter into a business opportunity and there can be no assurance that we will be
able to enter into any agreement. We anticipate that any new acquisition or
business opportunities by our company will require additional financing. There
can be no assurance, however, that we will be able to acquire the financing
necessary to enable us to pursue our plan of operation. If our company requires
additional financing and we are unable to acquire such funds, our business may
fail.

Management of our company believes that there are perceived benefits to being a
reporting company with a class of publicly-traded securities. These are commonly
thought to include: (i) the ability to use registered securities to acquire
assets or businesses; (ii) increased visibility in the financial community;
(iii) the facilitation of borrowing from financial institutions; (iv) improved
trading efficiency; (v) stockholder liquidity; (vi) greater ease in subsequently
raising capital; (vii) compensation of key employees through stock options;
(viii) enhanced corporate image; and (ix) a presence in the United States
capital market.

We may seek a business opportunity with entities who have recently commenced
operations, or entities who wish to utilize the public marketplace in order to
raise additional capital in order to expand business development activities, to
develop a new product or service, or for other corporate purposes. We may
acquire assets and establish wholly-owned subsidiaries in various businesses or
acquire existing businesses as subsidiaries.

In implementing a structure for a particular business acquisition or
opportunity, we may become a party to a merger, consolidation, reorganization,
joint venture, or licensing agreement with another corporation or entity. We may
also acquire stock or assets of an existing business.

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<PAGE>
As of the date hereof, management has not entered into any formal written
agreements for a business combination or opportunity and there is no guarantee
that we will be able to enter into such an agreement.

COMPETITION

The biotechnology industry is highly competitive. Numerous entities in the
United States and elsewhere compete with our efforts to commercialize our
technologies. Our competitors include pharmaceutical, biomedical, biotechnology
and diagnostic companies, academic and research institutions and governmental
and other publicly and privately funded research agencies. We face, and expect
to continue to face, competition from these entities to the extent that they
develop products that have a function similar or identical to the function of
our technologies. We also face, and expect to continue to face, competition from
entities that seek to discover therapeutic and diagnostic products.

Because many of our competitors have substantially greater capital resources and
more experience in research and development, manufacturing and marketing than we
do, we may not succeed in developing our proposed products and bringing them to
market in a cost-effective and timely manner.

We are a development stage company. We have not yet completed the development of
our first product and have no revenue from operations. As a result, we may have
difficulty competing with larger, established biomedical companies and
organizations. Within the global genetic biomarker industry, examples of
publicly traded companies include: Compugen, Ltd., Epigenomics AG, Myriad
Genetics, Inc. and Diagnocure Inc. These companies and organizations have much
greater financial, technical, research, marketing, sales, distribution, service
and other resources than us. Moreover, they may offer broader product lines,
services and have greater name recognition than we do, and may offer discounts
as a competitive tactic.

As we are currently seeking other business opportunities, we compete with other
companies for both the acquisition of prospective properties and businesses and
the financing necessary to develop such properties or businesses.

We conduct our business in an environment that is highly competitive and
unpredictable. In seeking out prospective properties and other businesses, we
have encountered intense competition in all aspects of our proposed business as
we compete directly with other development stage companies as well as
established international companies. Many of our competitors are national or
international companies with far greater resources, capital and access to
information than us. Accordingly, these competitors may be able to spend greater
amounts on the acquisition of prospective properties and on the exploration and
development of such properties or the acquisition of other businesses.

INTELLECTUAL PROPERTY

PATENT APPLICATIONS

Our company has re-filed four original provisional patent applications. Our
company re-files provisional patents with the US Patent and Trademark Office on
an annual basis, prior to completing an initial patent filing as part of our
overall intellectual property strategy. We have identified and filed provisional
patent applications on genetic markers that, following successful development
and testing, may assist in determining the susceptibility of patients to liver
cancer, prostate cancer, ovarian cancer, thyroid cancer, as well as, an assay
for identifying genetic markers that may predict a patient's response to a drug.

The validity and breadth of claims in medical technology patents involve complex
legal and factual questions and, therefore, may be highly uncertain. No
assurance can be given that any patents based on pending patent applications or
any future patent applications by us, or any future licensors, will be issued,
that the scope of any patent protection will exclude competitors or provide
competitive advantages to us, that any of the provisional patent applications
that have been or may be issued to us or our licensors will be held valid if
subsequently challenged or that others will not claim rights in or ownership of
the provisional patent applications and other proprietary rights held or
licensed by us. Furthermore, there can be no assurance that others have not
developed or will not develop similar products, duplicate any of our technology
or design around any patents that may be issued to us or our licensors. Since
provisional patent applications in the United States are maintained in secrecy
until patents are issued, we also cannot be certain that others have not or will

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<PAGE>
not file prior applications for inventions covered by our, and our licensors'
pending patent applications, nor can we be certain that we will not infringe any
patents that may be issued to others on such applications.

We have not conducted freedom of use patent searches and no assurance can be
given that patents do not exist or could not be filed which would have an
adverse affect on our ability to market our technology or maintain our
competitive position with respect to our technology. If our technologies or
subject matter are claimed under other existing United States or foreign patents
or are otherwise protected by third party proprietary rights, we may be subject
to infringement actions. In such event, we may challenge the validity of such
patents or other proprietary rights or we may be required to obtain licenses
from such companies in order to develop, manufacture or market our technology.
There can be no assurances that we will be able to obtain such licenses or that
such licenses, if available, may be obtained on commercially reasonable terms.
Furthermore, the failure to either develop a commercially viable alternative or
obtain such licenses may result in delays in marketing our proposed technology
or the inability to proceed with the development, manufacture or sale of
products requiring such licenses, which may have a material adverse affect on
our business, financial condition and results of operations. If we are required
to defend ourselves against charges of patent infringement or to protect our
proprietary rights against third parties, substantial costs will be incurred
regardless of whether we are successful. Such proceedings are typically
protracted with no certainty of success. An adverse outcome could subject us to
significant liabilities to third parties and force us to curtail or cease our
development and commercialization of our technology.

DOMAIN NAMES

We own and operate the following registered internet domain name:
www.upstreambio.com. The information contained on our website does not form part
of this annual report.

GENERAL

We also rely on trade secrets and unpatentable know-how that we seek to protect,
in part, by confidentiality agreements. We intend to require all future
employees, consultants, contractors, manufacturers, outside scientific
collaborators and sponsored researchers, directors on our board, technical
review board and other advisors to execute confidentiality agreements upon the
commencement of employment or consulting relationships with us. These agreements
will provide that all confidential information developed or made known to the
individual during the course of the individual's relationship with us is to be
kept confidential and not disclosed to third parties except in specific limited
circumstances. We intend to require signed confidentiality or material transfer
agreements from any company that receives confidential information from our
company. We intend to ensure that, in the case of employees, consultants and
contractors, any agreements that our company enters into with such persons will
generally provide that all inventions conceived by the person while rendering
services to us shall be assigned to us as the exclusive property of our company.
We can offer no assurance, however, that all persons who we seek to sign such
agreements will sign, or if they do, that these agreements will not be breached,
that we will have adequate remedies for any breach, or that our trade secrets or
unpatentable know-how will not otherwise become known or be independently
developed by competitors.

GOVERNMENT REGULATION

The products and technologies that would be developed from our patents will
require regulatory approval by governmental agencies prior to commercialization.
Various federal statutes and regulations also govern or influence the testing,
manufacturing, safety, labeling, storage, record keeping, and marketing of
therapeutic products. The process of obtaining these approvals and the
subsequent compliance with applicable statutes and regulations require the
expenditure of substantial time and financial resources.

RESEARCH AND DEVELOPMENT

Our research and development costs primarily consist of research programs
related to the development of drug candidates for the treatment of certain
infectious diseases and cancers. We estimate that we will not have any research
and development cash expenditures for the next twelve months.

Our company incurred no research and developments costs in 2010 (2009: $260,147
consisting of $174,801 in cash expenses and $85,346 in stock expenses). We were
focused on the restructuring of the Company and did not expend funds on research
and development during the past fiscal year.

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<PAGE>
EMPLOYEES

We currently have one employee consisting of Michael McFarland, our sole
director and officer. We will hire additional employees when circumstances
warrant.

CUSTOMERS

As we are in the development stage of our business, we do not currently have any
customers of our technologies.

SUPPLIERS

Our company is not reliant upon any suppliers for the research and development
of our technologies.

ITEM 1A. RISK FACTORS

RISKS RELATED TO OUR BUSINESS

WE HAVE HAD NEGATIVE CASH FLOWS FROM OPERATIONS SINCE INCEPTION. WE WILL REQUIRE
SIGNIFICANT ADDITIONAL FINANCING, THE AVAILABILITY OF WHICH CANNOT BE ASSURED,
AND IF OUR COMPANY IS UNABLE TO OBTAIN SUCH FINANCING, OUR BUSINESS MAY FAIL.

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

In light of the current financial crises, financing for companies such as ours
is very difficult to obtain. Even if financing is available, it may not be
available on terms that are favorable to us or in sufficient amounts to satisfy
our requirements. If we require, but are unable to obtain, additional financing
in the future, we may be unable to implement our business plan and our growth
strategies, respond to changing business or economic conditions, withstand
adverse operating results and compete effectively. Without additional funds, we
may not be able to pay our employees or contracts to provide services, and these
same employees or service providers may have to either accept accruals or common
shares, or a combination of both, for compensation. More importantly, if we are
unable to raise further financing when required, we may be forced to scale down
our operations and our ability to continue operations may be negatively
affected.

WE HAVE A HISTORY OF LOSSES AND NOMINAL OPERATING RESULTS, WHICH RAISE
SUBSTANTIAL DOUBT ABOUT OUR ABILITY TO CONTINUE AS A GOING CONCERN.

Since inception through the fiscal year ended September 30, 2010, we have
incurred aggregate net losses of $7,177,065. We can offer no assurance that we
will operate profitably or that we will generate positive cash flow in the
future. In addition, our operating results in the future may be subject to
significant fluctuations due to many factors not within our control, such as the
level of competition and general economic conditions.

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

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

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

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history of losses and nominal operating results raise substantial doubt about
our ability to continue as a going concern, as described in the explanatory
paragraph in our company's independent registered public accounting firm's audit
report dated September 7, 2011 which is included in our annual report on Form
10-K.

THE WORLDWIDE MACROECONOMIC DOWNTURN MAY REDUCE THE ABILITY OF OUR COMPANY TO
OBTAIN THE FINANCING NECESSARY TO CONTINUE OUR BUSINESS AND MAY REDUCE THE
NUMBER OF VIABLE BUSINESSES THAT WE MAY WISH TO ACQUIRE.

In 2009 and 2010, there has been a downturn in general worldwide economic
conditions due to many factors, including the effects of the subprime lending
and general credit market crises, volatile but generally declining energy costs,
slower economic activity, decreased consumer confidence and commodity prices,
reduced corporate profits and capital spending, adverse business conditions,
increased unemployment and liquidity concerns. In addition, these macroeconomic
effects, including the resulting recession in various countries and slowing of
the global economy, will likely result in decreased business opportunities as
potential target companies face increased financial hardship. Tightening credit
and liquidity issues will also result in increased difficulties for our company
to raise capital for our continued operations and to consummate a business
opportunity with a viable business.

WE HAVE IDENTIFIED MATERIAL WEAKNESSES RELATED TO OUR INTERNAL CONTROL OVER
FINANCIAL REPORTING AND CONCLUDED THAT OUR INTERNAL CONTROL OVER FINANCIAL
REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES WERE INEFFECTIVE AS OF
SEPTEMBER 30, 2010. THESE MATERIAL WEAKNESSES REMAIN UNREMEDIED, WHICH COULD
CONTINUE TO IMPACT OUR ABILITY TO REPORT RESULTS OF OPERATIONS AND FINANCIAL
CONDITION ACCURATELY AND IN A TIMELY MANNER.

We have identified a number of material weaknesses in our internal control over
financial reporting. Our management assessed the effectiveness of our internal
control over financial reporting and disclosure controls and procedures as at
September 30, 2009 pursuant to Section 404 of the Sarbanes-Oxley Act of 2002 and
the related SEC rules and concluded that our internal control over financial
reporting and disclosure controls and procedures were ineffective. In connection
with the preparation of our quarterly report for the period ended June 30, 2009,
we determined that an accrual error with respect to the management compensation
of one of our senior officers had been made in our financial statements in prior
periods and we determined that our disclosure controls and procedures were not
effective as at September 30, 2010. We have concluded that five material
weaknesses existed as at September 30, 2010 which are set out in Item 9A under
the heading "Controls and Procedures". Although we intend to remediate such
material weaknesses as set out in Item 9A, we have not yet been able to address
these material weaknesses and they may continue to remain unremedied for some
time, which could adversely impact the accuracy and timeliness of future reports
and filings we make to the SEC and could have a material adverse effect on our
business, results of operations, financial condition and liquidity.

WE CURRENTLY HOLD NO PATENTS ON OUR PROPRIETARY TECHNOLOGY AND IF WE ARE NOT
ABLE TO PROTECT OUR PROPRIETARY TECHNOLOGY, OUR COMPANY WILL SUFFER A MATERIAL
ADVERSE EFFECT.

We currently have provisional patent applications filed on our technologies. We
currently rely on the provisional patent applications and trade secrets to
protect our proprietary intellectual property. We believe our success depends
upon the knowledge and experience of our management and our ability to market
our existing technology and to develop new technologies.

While we believe that we have adequately protected our proprietary technology,
and we intend to take all appropriate and reasonable legal measures to protect
it in the future, the use of our technology by a competitor could have a
material adverse effect on our business, financial condition and results of
operations. Our ability to compete successfully and achieve future revenue
growth will depend, in part, on our ability to protect our proprietary
technology and operate without infringing upon the rights of others. We may not
be able to successfully protect our proprietary technology, and our proprietary
technology may otherwise become known or similar technology may be independently
developed by competitors. Competitors may discover novel uses, develop similar
or more marketable technologies or offer services similar to our company at
lower prices. We cannot predict whether our technologies and services will
compete successfully with the technologies and services of existing or emerging
competitors.

WE MAY LOSE OUR COMPETITIVENESS IF WE ARE NOT ABLE TO PROTECT OUR PROPRIETARY
TECHNOLOGY AND INTELLECTUAL PROPERTY RIGHTS AGAINST INFRINGEMENT, AND ANY
RELATED LITIGATION MAY BE TIME-CONSUMING AND COSTLY.

Our success and ability to compete depends to a significant degree on our
proprietary technology. If any of our competitors copy or otherwise gain access
to our proprietary technology or develop similar technologies independently, we

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

IF OUR PROVISIONAL PATENT APPLICATIONS AND PROPRIETARY RIGHTS DO NOT PROVIDE
SUBSTANTIAL PROTECTION, THEN OUR BUSINESS AND COMPETITIVE POSITION WILL SUFFER.

Our success depends in large part on our, and any of our potential
collaborators, ability to develop, commercialize and protect our proprietary
technology. However, patents may not be granted on any of our provisional or
future patent applications. Also, the scope of any future patent may not be
sufficiently broad to offer meaningful protection. In addition, any patents
granted to us in the future may be successfully challenged, invalidated or
circumvented so that such patent rights may not create an effective competitive
barrier.

OUR COMPANY MAY BECOME SUBJECT TO INTELLECTUAL PROPERTY LITIGATION WHICH MAY
HARM OUR BUSINESS.

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

WE HAVE NOT GENERATED ANY REVENUES FROM OPERATIONS AND IF WE ARE UNABLE TO
DEVELOP MARKET SHARE AND GENERATE SIGNIFICANT REVENUES FROM THE
COMMERCIALIZATION OR LICENSING OF OUR TECHNOLOGY, THEN OUR BUSINESS MAY FAIL.

We operate in a highly competitive industry and our failure to compete
effectively and generate income through the licensing of our technology may
adversely affect our ability to generate revenue. There can be no assurance that
our new or existing technologies will gain market acceptance. Management is
aware of similar technologies that our technology, when developed to a stage of
commercialization, will compete directly against. Many of our competitors have
greater financial, technical, sales and marketing resources, better name
recognition and a larger customer base than ours. In addition, many of our large
competitors may offer customers a broader or superior range of services and
technologies. Some of our competitors may conduct more extensive promotional
activities and offer lower licensing costs to customers than we do, which could
allow them to gain greater market share or prevent us from establishing and
increasing our market share. Increased competition in the genetic biomarker
industry and the drug development industry may result in significant price
competition, reduced profit margins or loss of market share, any of which may
have a material adverse effect on our ability to generate revenues and
successfully operate our business. Our competitors may develop technologies
superior to those that our company is currently developing. In the future, we
may need to decrease our prices if our competitors lower their prices. Our
competitors may be able to respond more quickly to new or changing
opportunities, technologies and customer requirements. Such competition will
potentially affect our chances of achieving profitability, and ultimately affect
our ability to continue as a going concern.

RAPID TECHNOLOGICAL CHANGES IN OUR INDUSTRY MAY RENDER OUR TECHNOLOGY
NON-COMPETITIVE OR OBSOLETE AND CONSEQUENTLY AFFECT OUR ABILITY TO GENERATE
FUTURE REVENUES.

The genetic biomarker industry is characterized by rapidly changing technology,
evolving industry standards and varying customer demand. We believe that our
success will depend on our ability to generate income through the licensing of
our technology. We can make no assurance that our technology will not become
obsolete due to the introduction of alternative technologies. If we are unable
to continue to develop and introduce new genetic biomarkers, new biotechnology

                                       9
<PAGE>
drugs and drug candidates to meet technological changes and changes in market
demands, our business and operating results, including our ability to generate
revenues, may be adversely affected.

IF WE DO NOT KEEP PACE WITH OUR COMPETITORS, TECHNOLOGICAL ADVANCEMENTS AND
MARKET CHANGES, OUR TECHNOLOGY MAY BECOME OBSOLETE AND OUR BUSINESS MAY SUFFER.

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

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

MOST OF OUR ASSETS AND A MAJORITY OF OUR DIRECTORS AND OFFICERS ARE OUTSIDE THE
UNITED STATES, WITH THE RESULT THAT IT MAY BE DIFFICULT FOR INVESTORS TO ENFORCE
WITHIN THE UNITED STATES ANY JUDGMENTS OBTAINED AGAINST US OR ANY OF OUR
DIRECTORS OR OFFICERS.

Although we are organized under the laws of the State of Nevada, United States,
our principal business office is located in Calgary, Alberta, Canada. Outside
the United States, it may be difficult for investors to enforce judgments
against us that are obtained in the United States in any action, including
actions predicated upon civil liability provisions of federal securities laws.
In addition, our sole director and officer resides outside the United States,
and all of the assets of this non-U.S. persons and our assets are located
outside of the United States. As a result, it may not be possible for investors
to affect service of process within the United States upon such persons or to
enforce against us or such persons judgments predicated upon the liability
provisions of United States securities laws. There is substantial doubt as to
the enforceability against us or our sole director and officer located outside
the United States in original actions or in actions of enforcement of judgments
of United States courts or liabilities predicated on the civil liability
provisions of United States federal securities laws. In addition, as the
majority of our assets are located outside of the United States, it may be
difficult to enforce United States bankruptcy proceedings against us. Under
bankruptcy laws in the United States, courts typically have jurisdiction over a
debtor's property, wherever it is located, including property situated in other
countries. Courts outside of the United States may not recognize the United
States bankruptcy court's jurisdiction. Accordingly, you may have trouble
administering a United States bankruptcy case involving a Nevada company as
debtor with most of its property located outside the United States. Any orders
or judgments of a bankruptcy court obtained by you in the United States may not
be enforceable.

OUR BUSINESS IS SUBJECT TO COMPREHENSIVE GOVERNMENT REGULATION AND ANY CHANGE IN
SUCH REGULATION MAY HAVE A MATERIAL ADVERSE EFFECT ON OUR COMPANY.

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

RISKS RELATED TO OUR COMMON STOCK

A DECLINE IN THE PRICE OF OUR COMMON STOCK COULD AFFECT OUR ABILITY TO RAISE
FURTHER WORKING CAPITAL AND ADVERSELY IMPACT OUR ABILITY TO CONTINUE OPERATIONS.

A prolonged decline in the price of our common stock could result in a reduction
in the liquidity of our common stock and a reduction in our ability to raise
capital. Because a significant portion of our operations has been and will be
financed through the sale of equity securities, a decline in the price of our
common stock could be especially detrimental to our liquidity and our
operations. Such reductions may force us to reallocate funds from other planned

                                       10
<PAGE>
uses and may have a significant negative effect on our business plans and
operations, including our ability to develop new products and continue our
current operations. If our stock price declines, we can offer no assurance that
we will be able to raise additional capital or generate funds from operations
sufficient to meet our obligations. If we are unable to raise sufficient capital
in the future, we may not be able to have the resources to continue our normal
operations.

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

IF WE ISSUE ADDITIONAL SHARES IN THE FUTURE, IT WILL RESULT IN THE DILUTION OF
OUR EXISTING SHAREHOLDERS.

Our certificate of incorporation authorizes the issuance of up to 750,000,000
shares of common stock with a $0.001 par value and 100,000,000 preferred shares
with a par value of $0.001, of which 34,112,06 common shares were issued and
outstanding as of September 30, 2010. Our board of directors may fix and
determine the designations, rights, preferences or other variations of each
class or series within each class. Our board of directors may choose to issue
some or all of such shares to acquire one or more businesses or to provide
additional financing in the future. The issuance of any such shares will result
in a reduction of the book value and market price of the outstanding shares of
our common stock. If we issue any such additional shares, such issuance will
cause a reduction in the proportionate ownership and voting power of all current
shareholders. Further, such issuance may result in a change of control of our
company.

TRADING OF OUR STOCK MAY BE RESTRICTED BY THE SECURITIES EXCHANGE COMMISSION'S
PENNY STOCK REGULATIONS, WHICH MAY LIMIT A STOCKHOLDER'S ABILITY TO BUY AND SELL
OUR STOCK.

The Securities and Exchange Commission has adopted regulations which generally
define "penny stock" to be any equity security that has a market price (as
defined) less than $5.00 per share or an exercise price of less than $5.00 per
share, subject to certain exceptions. Our securities are covered by the penny
stock rules, which impose additional sales practice requirements on
broker-dealers who sell to persons other than established customers and
"accredited investors". The term "accredited investor" refers generally to
institutions with assets in excess of $5,000,000 or individuals with a net worth
in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly
with their spouse. The penny stock rules require a broker-dealer, prior to a
transaction in a penny stock not otherwise exempt from the rules, to deliver a
standardized risk disclosure document in a form prepared by the Securities and
Exchange Commission, which provides information about penny stocks and the
nature and level of risks in the penny stock market. The broker-dealer also must
provide the customer with current bid and offer quotations for the penny stock,
the compensation of the broker-dealer and its salesperson in the transaction and
monthly account statements showing the market value of each penny stock held in
the customer's account. The bid and offer quotations, and the broker-dealer and
salesperson compensation information, must be given to the customer orally or in
writing prior to effecting the transaction and must be given to the customer in
writing before or with the customer's confirmation. In addition, the penny stock
rules require that prior to a transaction in a penny stock not otherwise exempt
from these rules, the broker-dealer must make a special written determination
that the penny stock is a suitable investment for the purchaser and receive the
purchaser's written agreement to the transaction. These disclosure requirements
may have the effect of reducing the level of trading activity in the secondary
market for the stock that is subject to these penny stock rules. Consequently,
these penny stock rules may affect the ability of broker-dealers to trade our
securities. We believe that the penny stock rules discourage investor interest
in and limit the marketability of our common stock.

FINRA'S SALES PRACTICE REQUIREMENTS MAY ALSO LIMIT A STOCKHOLDER'S ABILITY TO
BUY AND SELL OUR STOCK.

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

                                       11
<PAGE>
OUR COMMON STOCK IS ILLIQUID AND THE PRICE OF OUR COMMON STOCK MAY BE NEGATIVELY
IMPACTED BY FACTORS WHICH ARE UNRELATED TO OUR OPERATIONS.

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

ITEM 2. PROPERTIES

EXECUTIVE OFFICES

Effective December 14, 2009, our principal offices are located at 71130, 198 -
8060 Silver Spring Blvd., Calgary, Alberta, Canada. Our sole director and
officer provides this space to us free of charge. This space may not be
available free of charge in the future. We do not own any real property. We
believe this office will be adequate for the near future.

ITEM 3. LEGAL PROCEEDINGS

Other than as set forth below, we know of no material, active, or pending legal
proceeding against our company, nor are we involved as a plaintiff in any
material proceeding or pending litigation where such claim or action involves
damages for more than 10% of our current assets as of June 1, 2011.
Additionally, there were no proceedings in which any of our company's directors,
officers, or affiliates, or any registered or beneficial shareholders holding
more than 5% of our voting securities, is an adverse party or has a material
interest adverse to our company's interest as of June 1, 2011.

On September 1, 2009, TCF Ventures filed a Writ of Summons and Statement of
Claim against our company. The Statement of Claim alleged that our company
notified TCF Ventures that it would be reducing amounts payable to TCF Ventures
by 33% and that our company would eventually repay the salary owed when it had
sufficient funds. TCF Ventures accepted the deferral of salary on the
understanding that the deferral was temporary and that it would be repaid as
soon as possible. The Statement of Claim further alleged that on or about
January 2009, our company notified TCF Ventures that our company would be
deferring the salary by 50%. In response, on or about February 3, 2009, the
Statement of Claim alleges that TCF Ventures delivered a written notice to our
company advising that our company was in material breach of the agreement for
failing to pay the salary. TCF Ventures claimed judgment against our company for
$68,750 plus GST for outstanding salary under the agreement and $150,000 for
severance.

On September 22, 2009, our company filed a Statement of Defence against TCF
Ventures, whereby our company denied the allegations made against our company
and counter claimed against TCF Ventures, which counterclaim included the
following: (a) causing our company to pay GST on amounts payable to TCF
Ventures, even though the agreement did not provide for the payment of GST to
TCF Ventures; (b) failure to cause our company to deduct GST from amounts
payable to TCF Ventures and to remit such payments to the required government
authority; and (c) during the term of the agreement, Mr. Fernback caused our
company to overpay on salary payments by applying a rate of exchange between the
Canadian and US dollars that was more favourable to TCF Ventures than existing
market rates. Our company took the position that such breaches constituted
repudiation of the agreement with TCF Ventures such that our company was
entitled to treat the agreement at an end and that TCF Ventures has no cause of
action against our company for the severance. Our company further claimed that
our company was entitled to repayment of the GST paid to TCF Ventures and the
amount paid in excess of the market exchange rates, and therefore claimed a
right of set-off for such amounts against any amount held to be owing to TCF
Ventures.

On December 14, 2009, TCF Ventures and our company signed a mutual release
whereby, in consideration for the payment of $50,000 from our company to TCF
Ventures, both parties agreed to release each other from all claims or
liabilities for any allegations pled in the Statement of Claim and the Statement
of Defence.

                                       12
<PAGE>
ITEM 4. (REMOVED AND RESERVED)

                                    PART II

ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
        ISSUER PURCHASES OF EQUITY SECURITIES

MARKET FOR SECURITIES

Our stock is listed for quotation on the OTC Bulletin Board under the trading
symbol "UPBS". Our common shares initially began trading on the OTC Bulletin
Board on September 1, 2004 under the trading symbol "IBSO.OB". The following
table sets forth, for the periods indicated, the high and low closing prices for
each quarter within the last two fiscal years ended September 30, 2010 as
reported by the quotation service operated by the OTC Bulletin Board. All
quotations for the OTC Bulletin Board reflect inter-dealer prices, without
retail mark-up, mark-down or commission and may not necessarily represent actual
transactions.

Quarter Ended                                   High                    Low
-------------                                   ----                    ---
September 30, 2010                             $0.02                   $0.01
June 30, 2010                                  $0.02                   $0.01
March 31, 2010                                 $0.02                   $0.01
December 31, 2009                              $0.03                   $0.02
September 30, 2009                             $0.25                   $0.02
June 30, 2009                                  $0.09                   $0.03
March 31, 2009                                 $0.08                   $0.02
December 31, 2008                              $0.17                   $0.02

On September 26, 2011, the closing price for the common stock as reported by the
quotation service operated by the OTC Bulletin Board was $0.01.

Nevada Agency and Trust Company is the registrar and transfer agent for our
common shares. Their address is 50 West Liberty, Suite 800 Reno, Nevada, 89501
Telephone: 775.322.0626, Facsimile: 775.322.5623.

HOLDERS OF OUR COMMON STOCK

As of September 26, 2011 there were 10 registered holders of record of our
common stock. As of such date, 34,112,065 common shares were issued and
outstanding.

DIVIDEND POLICY

We have not declared or paid any cash dividends since inception. Although there
are no restrictions that limit our ability to pay dividends on our common
shares, we intend to retain future earnings, if any, for use in the operation
and expansion of our business and do not intend to pay any cash dividends in the
foreseeable future.

EQUITY COMPENSATION PLAN INFORMATION

On March 16, 2007, our board of directors approved the 2007 Stock Option Plan.
Under the terms of the 2007 Stock Option Plan, options to purchase up to
5,000,000 shares of our common stock may be granted to our officers, directors,
employees and permitted consultants of our company.

The following table sets forth certain information concerning all equity
compensation plans previously approved by stockholders and all previous equity
compensation plans not previously approved by stockholders, as of the most
recently completed fiscal year.

                                       13
<PAGE>
RECENT SALES OF UNREGISTERED SECURITIES

The following sets forth certain information concerning securities which were
sold or issued by us during the last fiscal year ended September 30, 2010
without the registration of these securities under the Securities Act of 1933 in
reliance on exemptions from such registration requirements.

On November 19, 2009, we issued 1,000,000 shares to one person. We issued the
shares upon an exemption from registration in an offering of securities in an
offshore transaction to a non US Person (as that term is defined in Regulation S
of the Securities Act of 1933), relying on Regulation S and/or Section 4(2) of
the Securities Act of 1933.

December 4, 2009, we returned 16,190,940 restricted common shares to the
treasury of our company for cancellation without consideration.

On December 14, 2009, Mr. Bellenson and Mr. Smith, both former directors and
officers of our company, entered into Option Termination Agreements with our
company, whereby the 400,000 options held by each person were immediately
cancelled.

ITEM 6. SELECTED FINANCIAL DATA

Not Applicable.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATION

The following discussion should be read in conjunction with our audited
consolidated financial statements and the related notes that appear elsewhere in
this annual report. The following discussion contains forward-looking statements
that reflect our plans, estimates and beliefs. Our actual results could differ
materially from those discussed in the forward looking statements. Factors that
could cause or contribute to such differences include those discussed below and
elsewhere in this annual report.

Our audited consolidated financial statements are stated in United States
dollars and are prepared in accordance with United States generally accepted
accounting principles.

PLAN OF OPERATIONS AND CASH REQUIREMENTS OVER THE NEXT 12 MONTHS

Without adequate funding, it is management's intention to halt current research
and development efforts associated with our biomarker program and wait until
sufficient financial resources exist before spending additional and significant
funds for the commercialization of our biomarker program. However, we will
continue to evaluate and determine the most cost effective use of available
funds for all future research and development programs, including diagnostic
biomarkers, biomarkers for a drug response assay and drug development efforts.

There is no assurance that our research and development programs will produce
commercially viable products or treatments, and a great deal of additional R&D
will be required before a final evaluation of the economic feasibility of our
technologies can be determined.

We are also currently seeking new acquisitions and/or business opportunities
with established business entities for the merger of a target business with our
company including businesses not having a resource focus. In certain instances,
a target business may wish to become a subsidiary of us or may wish to
contribute assets to us rather than merge. There can be no assurance that we
will be able to enter into any agreements. We anticipate that any new

                                       14
<PAGE>
acquisition or business opportunities by our company will require additional
financing. There can be no assurance, however, that we will be able to acquire
the financing necessary to enable us to pursue our plan of operation. If our
company requires additional financing and we are unable to acquire such funds,
our business may fail.

ANTICIPATED CASH REQUIREMENTS

Over the next 12 months, we have estimated our minimum cash requirements to be
as follows:

               Estimated Expenses for the Next Twelve Month Period
               ---------------------------------------------------
            Cash Operating Expenses
              Employee and consultant compensation          $ 15,000
              Professional fees                             $ 50,000
              General and administrative expenses           $ 30,000
              Corporate communications                      $ 10,000
              Research and development                      $ 10,000
                                                            --------

            Total                                           $115,000
                                                            ========

For the 12 months ended September 30, 2010, we recorded a net operating loss of
$247,831 and have an accumulated deficit of $7,274,765 since inception. As at
September 30, 2010, we had a working capital deficit of $144,411 and for the
next 12 months, management estimates minimum cash requirements of $115,000 to
fund on-going operations and planned research and development programs.
Accordingly, we do not have sufficient funds to meet our plan of operation over
the next 12 months and will need to obtain further financing through issuance of
shares, debentures or convertible debentures. We will also endeavor to access
available funding from research and development grants or loans from various
public and private research granting agencies. Moreover, all cash operating
expenses will be carefully monitored to ensure we can meet our obligations as
they come due.

There can be no assurance that additional financing will be available when
needed or, if available, on commercially reasonable terms. If we are not able to
obtain additional financing on a timely basis, we may not be able to meet our
obligations as they come due and may be forced to scale down or perhaps even
cease business operations.

LIQUIDITY AND CAPITAL RESOURCES

Our financial position as at September 30, 2010 and September 30, 2009 and the
changes for the years then ended are as follows:

WORKING CAPITAL

                                                    As at             As at
                                                September 30,     September 30,
                                                    2010              2009
                                                 ----------        ----------
Current Assets                                   $   41,411        $  241,132
Current Liabilities                              $  185,822        $  424,116
Working Capital (Deficiency)                     $ (144,411)       $ (182,984)

Working capital deficiency has decreased by $38,573 from the year ended
September 30, 2010 to September 30, 2009 as a result of the Company being able
to renegotiate balances owing to related parties.

                                       15
<PAGE>
CASH FLOWS

                                                 Year Ended        Year Ended
                                                September 30,     September 30,
                                                    2009              2009
                                                 ----------        ----------
Net cash (used in) Operating Activities          $ (192,410)       $ (375,201)
Net cash from (used in) Investing Activities     $   30,235        $    1,466
Net cash provided by Financing Activities        $       --        $       --
Effect of exchange rate changes                  $  (16,007)       $  (29,237)
Increase (Decrease) in Cash during the Year      $ (178,182)       $ (402,972)
Cash, Beginning of Year                          $  209,334        $  612,306
Cash, End of Year                                $   31,152        $  209,334

During the years ended September 30, 2010 and 2009:

     i)   Our net cash used in operating activities decreased by $182,734
          primarily due to our company focusing  on reducing expenses and
          conserving our available cash.

     ii)  Our net cash provided by investing activities of $30,235 in 2010
          resulted from converting $31,765 of restricted cash to cash, offset by
          the purchase of equipment for $1,530.

     iii) Our net cash from financing activities was $nil in 2010 and 2009.

RESULTS OF OPERATIONS FOR YEAR ENDING SEPTEMBER 30, 2010

The following summary should be read in conjunction with our audited financial
statements for the years ended September 30, 2010 and 2009 included herein.

                                                 Year Ended        Year Ended
                                                September 30,     September 30,
                                                    2010              2009
                                                ------------      ------------
Revenue                                         $        Nil      $       Nil
Expenses
  Management and consulting fees                $     72,245      $   322,652
  Amortization                                           192           64,826
  License fees and royalties                          24,016           10,677
  Loss (gain) of foreign exchange                      5,533            9,302
  Professional fees                                   76,196          118,284
  General and administration                          37,402           61,851
  Corporate communications, transfer agent
   and media                                              --           20,164
  Research and development                                --          260,147
  Interest (income) expense - net                     32,247           (3,529)
  Asset impairment loss                                   --           59,010
  Compensation shares                                 25,000               --
  Loss on sale of intellectual property               78,570               --
  Stock-based compensation                                --          194,545
                                                ------------      -----------

Total expenses                                  $    351,401      $ 1,117,929
                                                ============      ===========
Deferred income tax benefit                           27,857           18,075
                                                ------------      -----------

Net Loss                                        $   (323,544)     $(1,099,854)
                                                ============      ===========

                                       16
<PAGE>
REVENUE

We are a development stage company and have not generated any revenues from our
technologies since inception. We anticipate significant additional time and
financing will be required before our technologies are developed to a marketable
state.

EXPENSES

Our operating expenses for the year ended September 30, 2010 were $247,831
compared to $1,058,919 in 2009. This net decrease of $811,088 was primarily due
to the following:

     *    $250,407 decrease in management and consulting fees due to us
          renegotiating its management compensation structure as part of our
          restructuring plan.

     *    $24,449 decrease in general and administration due to a cash
          conservation strategy adopted by our management during the fiscal
          year.

     *    $20,164 decrease in corporate communication expenses due to a cash
          conservation strategy adopted by our management during the fiscal
          year.

     *    $260,147 decrease in research and development. The decrease in cash
          spend was due to a cash conservation strategy adopted by management
          during the fiscal year. In addition, we did not continue stock based
          research and development costs.

     *    $35,776 increase in net interest expense and finance charges.

     *    $194,545 decrease in stock-based compensation due to a management
          re-evaluation program.

GOING CONCERN

The audited financial statements accompanying this report have been prepared on
a going concern basis, which implies that our company will continue to realize
its assets and discharge its liabilities and commitments in the normal course of
business. Our company has not generated revenues since inception, has never paid
any dividends and is unlikely to pay dividends or generate earnings in the
immediate or foreseeable future. The continuation of our company as a going
concern is dependent upon: (i) the continued financial support from our
shareholders; (ii) the ability of our company to continue raising necessary
equity financing to achieve its operating objectives; and (iii) the eventual
attainment of profitable operations.

Our independent auditors included an explanatory paragraph in their annual
report on our financial statements for the year ended September 30, 2010
regarding concerns about our ability to continue as a going concern. In
addition, our financial statements contain further note disclosures in this
regard. The continuation of our business plan is dependent upon our ability to
continue raising sufficient new capital from equity or debt markets in order to
fund our on-going operating losses and oil and gas acquisition and exploration
activities. The issuance of additional equity securities could result in a
significant dilution in the equity interests of our current stockholders.

APPLICATION OF CRITICAL ACCOUNTING POLICIES

The preparation of financial statements in conformity with United States
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying disclosures of our company. Although these estimates are based on
management's knowledge of current events and actions that our company may
undertake in the future, actual results may differ from such estimates.

                                       17
<PAGE>
BASIS OF PRESENTATION AND CONSOLIDATION
These consolidated financial statements and related notes are presented in
accordance with United States generally accepted accounting principles ("US
GAAP") and are expressed in US dollars. The Company is in the development stage
and has not realized significant revenues from its business plan to date. These
financial statements include the accounts of the Company and its wholly-owned
Canadian subsidiaries, Upstream Biosciences, Inc. ("Upstream Canada") and
Pacific Pharma Technologies Inc. ("PPT"). All inter-company transactions and
account balances have been eliminated on consolidation.

The Company acquired Upstream Canada on February 24, 2006. This transaction was
accounted for as a recapitalization transaction, similar to a reverse
acquisition accounting, with Upstream Canada being treated as the accounting
parent (legal subsidiary) and the Company being treated as the accounting
subsidiary (legal parent). Accordingly, the consolidated results of operations
of the Company include those of Upstream Canada for the period from its
inception on June 14, 2004 and those of the Company since the date of the
reverse acquisition, February 24, 2006.

EQUIPMENT
Equipment is valued at cost less accumulated amortization. Amortization is
recorded using the straight-line method over four years and maintenance and
repairs are expensed as incurred.

INTELLECTUAL PROPERTY RIGHTS
Intellectual Property Rights ("IPR") were being amortized on a straight line
basis over 5 years. The carrying value of the IPR were reviewed on a regular
basis for the existence of facts or circumstances that may suggest impairment.
The determination of any impairment includes a comparison of net carrying value
with estimated future operating cash flows anticipated during the remaining
useful life.

USE OF ESTIMATES AND ASSUMPTIONS
The preparation of financial statements in conformity with US GAAP requires the
Company to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenue and
expenses during the reporting period. The Company bases its estimates and
assumptions on current facts, historical experience and various other factors
that it believes to be reasonable under the circumstances, the results of which
form the basis for making judgments about the carrying values of assets and
liabilities and the accrual of costs and expenses that are readily apparent from
other sources. The actual results experienced by the Company may differ
materially from the Company's estimates. To the extent there are material
differences, future results may be affected. Estimates used in preparing these
financial statements include the carrying value of intellectual property rights
and the fair value of share-based payments, deferred income taxes, financial
instruments and deferred compensation.

SHARE-BASED COMPENSATION
The Company accounts for share-based compensation using the fair value method
and related compensation expense is recognized over the period of benefit when
the service is rendered.

FINANCIAL INSTRUMENTS
The Company's financial instruments consist of cash and cash equivalents, other
receivables, restricted cash, accounts payable, and amounts due to related
parties. The carrying amounts of these financial instruments at September 30,
2010 and 2009 approximate their fair values due to their short term nature.

                                       18
<PAGE>
FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION
The functional and reporting currency of the Company is the United States dollar
and of the Company's Canadian subsidiaries is the Canadian dollar. The financial
statements of the Canadian subsidiaries are translated into United States
dollars using period-end rates of exchange for assets and liabilities, and
period average rates of exchange for revenues and expenses. Foreign currency
transaction gains (losses) are included in the consolidated statements of
operations and those arising from translation of the Canadian subsidiaries
during the consolidation process are included in other comprehensive income
(loss) which is disclosed as a separate component of shareholders' deficit. The
Company has not entered into any derivative instruments to offset the impact of
foreign currency fluctuations.

RESEARCH AND DEVELOPMENT
These costs are expensed when incurred and consist primarily of direct material
and personnel costs, contract services and indirect costs. The Company has
received government assistance in the past and may receive same in the future
regarding its research and development activities. When the work is performed
that qualifies for such grants, the related assistance amount is credited to
research and development expense.

INCOME TAXES
The Company uses the asset and liability method of accounting for income taxes.
Under this method, deferred tax assets and liabilities are determined based on
temporary differences between the financial statements and the tax basis of
assets and liabilities, and net operating loss carry forwards based on using
enacted tax rates in effect for the year in which the differences are expected
to reverse. The effect of a change in tax rates on deferred tax assets and
liabilities is recognized in income in the year that includes the enactment
date. Valuation allowances are established to the extent that it is considered
more likely than not that deferred tax assets will be realized. At September 30,
2010 and 2009, a valuation allowance for the full amount of the deferred tax
assets was recorded.

LOSS PER SHARE
Basic loss per share is computed by dividing the net loss by the weighted
average number of outstanding common shares during the year. Diluted loss per
share gives effect to all potentially dilutive common shares outstanding during
the year, including convertible debt, stock options and share purchase warrants,
using the treasury stock method. The computation of diluted loss per share does
not assume conversion, exercise or contingent exercise of securities that would
have an anti-dilutive effect on loss per share.

NEW ACCOUNTING PRONOUNCEMENTS AND POLICIES
The Company has reviewed recently issued, but not yet effective, accounting
pronouncements and plans to adopt those that are applicable to it. It does not
expect the adoption of these pronouncements to have a material impact on its
reported financial position, results of operations or cash flows.

OFF-BALANCE SHEET ARRANGEMENTS

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



                                       19
<PAGE>
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Stockholders and Board of Directors of Upstream Biosciences, Inc.

We have  audited  the  accompanying  consolidated  balance  sheets  of  Upstream
Biosciences,  Inc. (a  development  stage  company) as of September 30, 2010 and
2009 and the  related  consolidated  statements  of  operations,  cash flows and
stockholders' deficit for the years then ended and the period from June 14, 2004
(inception)  to  September  30,  2010.   These  financial   statements  are  the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and  perform  an audit to obtain  reasonable  assurance  whether  the  financial
statements  are free of material  misstatement.  The Company is not  required to
have,  nor were we engaged to perform,  an audit of its  internal  control  over
financial reporting.  Our audits included consideration of internal control over
financial  reporting  as  a  basis  for  designing  audit  procedures  that  are
appropriate  in the  circumstances,  but not for the  purpose of  expressing  an
opinion on the  effectiveness  of the Company's  internal control over financial
reporting.  Accordingly,  we express  no such  opinion.  An audit also  includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the  financial  statements.  An audit also  includes  assessing  the  accounting
principles  used  and  significant  estimates  made  by  management,  as well as
evaluating the overall  financial  statement  presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion,  these consolidated  financial statements present fairly, in all
material respects,  the financial position of Upstream  Biosciences,  Inc. as at
September 30, 2010 and 2009 and the results of its operations and its cash flows
for the years  then  ended and the  period  from June 14,  2004  (inception)  to
September 30, 2010 in conformity with accounting  principles  generally accepted
in the United States of America.

The accompanying  consolidated  financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed in Note 1 to the
financial statements, the Company has a working capital deficiency, has incurred
losses in  developing  its business,  and further  losses are  anticipated.  The
Company  requires  additional funds to meet its obligations and the costs of its
operations. These factors raise substantial doubt about the Company's ability to
continue as a going concern.  Management's plans in this regard are described in
Note 1. The  financial  statements  do not  include any  adjustments  that might
result from the outcome of this uncertainty.


                                   /s/ DALE MATHESON CARR-HILTON LABONTE LLP
                                   ---------------------------------------------
                                   DALE MATHESON CARR-HILTON LABONTE LLP
                                   CHARTERED ACCOUNTANTS

Vancouver, Canada
September 7, 2011

                                       20
<PAGE>
                           UPSTREAM BIOSCIENCES, INC.
                          (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                     September 30,          September 30,
                                                                         2010                   2009
                                                                     ------------           ------------
<S>                                                                  <C>                    <C>
                                     ASSETS

CURRENT ASSETS
  Cash and cash equivalents                                          $     31,152           $    209,334
  Other receivables                                                        10,259                  2,564
  Prepaid expenses                                                             --                 29,234
                                                                     ------------           ------------
                                                                           41,411                241,132
RESTRICTED CASH                                                                --                 31,765
EQUIPMENT, net                                                              1,338                     --
INTELLECTUAL PROPERTY RIGHTS, net                                              --                178,315
                                                                     ------------           ------------

                                                                     $     42,749           $    451,212
                                                                     ============           ============

                                   LIABILITIES

CURRENT LIABILITIES
  Accounts payable and accrued liabilities                           $    185,822           $    126,146
  Due to related parties                                                       --                297,970
                                                                     ------------           ------------
                                                                          185,822                424,116
DEFERRED INCOME TAX                                                            --                 27,857
                                                                     ------------           ------------
                                                                          185,822                451,973
                                                                     ------------           ------------

                              STOCKHOLDERS' DEFICIT

CAPITAL STOCK
  Authorized:
    100,000,000 non-voting  preferred  shares at $0.001  par value
    750,000,000 common shares at $0.001 par value
  Issued and outstanding:
    34,112,065 common shares (2009 - 49,453,006)                           34,112                 49,453
ADDITIONAL PAID-IN CAPITAL                                              7,123,633              6,889,878
OBLIGATION TO ISSUE SHARES                                                     --                 99,737
DEFERRED COMPENSATION                                                          --                (78,570)
ACCUMULATED OTHER COMPREHENSIVE LOSS                                      (26,053)               (10,038)
DEFICIT ACCUMULATED DURING THE DEVELOPMENT STAGE                       (7,274,765)            (6,951,221)
                                                                     ------------           ------------
                                                                         (143,073)                  (761)
                                                                     ------------           ------------

                                                                     $     42,749           $    451,212
                                                                     ============           ============
</TABLE>


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

                                       21
<PAGE>
                           UPSTREAM BIOSCIENCES, INC.
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                                                                   Cumulative Results
                                                                                                     From Inception
                                                                                                   (June 14, 2004) to
                                                                  Years Ended September 30,           September 30,
                                                                  2010                2009                2010
                                                              ------------        ------------        ------------
<S>                                                           <C>                 <C>                 <C>
REVENUE                                                       $         --        $         --        $     67,600
                                                              ------------        ------------        ------------
OPERATING EXPENSES
  Amortization                                                         192              64,826             133,425
  Consulting fees                                                       --                  --              12,598
  Interest and finance charges                                      33,586                 398             596,430
  Interest income                                                   (1,339)             (3,927)            (84,671)
  Investor and corporate communications                                 --              20,164             258,349
  License fees and royalties                                        24,016              10,677             105,009
  Loss on foreign exchange                                           5,533               9,302              15,453
  Management compensation                                           72,245             322,652           1,526,086
  Office and general administration                                 37,402              61,851             473,796
  Professional fees                                                 76,196             118,284             590,863
  Research and development                                              --             260,147           1,421,530
  Stock-based compensation                                              --             194,545           2,090,632
                                                              ------------        ------------        ------------
                                                                  (247,831)         (1,058,919)         (7,139,500)
OTHER ITEMS
  Asset impairment loss                                                 --              59,010              59,010
  Compensation shares                                               25,000                  --              25,000
  Loss on sale of intellectual property                             78,570                  --              78,570
                                                              ------------        ------------        ------------
LOSS BEFORE INCOME TAX                                            (351,401)         (1,117,929)         (7,234,480)
  Deferred income tax recovery                                      27,857              18,075              57,415
                                                              ------------        ------------        ------------

NET LOSS                                                      $   (323,544)       $ (1,099,854)       $ (7,177,065)
                                                              ============        ============        ============

NET LOSS PER SHARE - BASIC AND DILUTED                        $      (0.01)       $      (0.02)
                                                              ============        ============
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
 - BASIC AND DILUTED                                            36,844,724          49,453,006
                                                              ============        ============
</TABLE>


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

                                       22
<PAGE>
                           UPSTREAM BIOSCIENCES, INC.
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                                    Cumulative Results
                                                                                                      From Inception
                                                                                                    (June 14, 2004) to
                                                                     Years Ended September 30,         September 30,
                                                                      2010              2009               2010
                                                                  ------------      ------------       ------------
<S>                                                               <C>               <C>                <C>
CASH FLOW FROM OPERATING ACTIVITIES
  Net loss                                                        $   (323,544)     $ (1,099,854)      $ (7,177,065)
  Adjustments to reconcile net loss to net cash used in
   operating activities:
     Amortization                                                          192            64,826            133,425
     Accretion of convertible debenture                                     --                --            302,808
     Shares issued or to be issued for services                             --            85,346          1,487,236
     Stock-based compensation                                               --           194,545          1,658,590
     Compensation shares                                                25,000                --             25,000
     Deferred income tax                                               (27,857)          (18,075)           (57,415)
     Asset impairment                                                       --            59,019             59,010
     Loss from sale of intellectual property                            78,570                --             78,570
  Changes in operating assets and liabilities:
     Other receivables                                                  (7,695)            3,921            (10,259)
     Prepaid expenses                                                   29,234             4,897             (2,781)
     Accounts payable and accrued liabilities                           59,676            32,589            263,037
     Due to related parties                                            (25,986)          297,585            271,984
                                                                  ------------      ------------       ------------
           NET CASH USED IN OPERATING ACTIVITIES                      (192,410)         (375,201)        (2,967,860)
                                                                  ------------      ------------       ------------

CASH FLOW FROM INVESTING ACTIVITIES
  Decrease in restricted cash                                           31,765             1,466                 --
  Cash paid for acquisition of PPT shares                                   --                --            (51,507)
  Purchase of equipment                                                 (1,530)               --            (22,764)
                                                                  ------------      ------------       ------------
           NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES          30,235             1,466            (74,271)
                                                                  ------------      ------------       ------------

CASH FLOW FROM FINANCING ACTIVITIES
  Proceeds from issuance of convertible debentures                          --                --          1,000,000
  Proceeds from issuance of common shares, net                              --                --          1,995,345
  Loan from related party                                                   --                --             78,487
                                                                  ------------      ------------       ------------
           NET CASH PROVIDED BY FINANCING ACTIVITIES                        --                --          3,073,832
                                                                  ------------      ------------       ------------

EFFECT OF EXCHANGE RATE CHANGES                                        (16,007)          (29,237)              (549)
                                                                  ------------      ------------       ------------

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                      (178,182)         (402,972)            31,152
CASH AND CASH EQUIVALENTS, BEGINNING                                   209,334           612,306                 --
                                                                  ------------      ------------       ------------

CASH AND CASH EQUIVALENTS, ENDING                                 $     31,152      $    209,334       $     31,152
                                                                  ============      ============       ============
</TABLE>


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

                                       23
<PAGE>
                           UPSTREAM BIOSCIENCES, INC.
                          (A Development Stage Company)
                 CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
             FOR THE PERIOD FROM JUNE 14, 2004 TO SEPTEMBER 30, 2010


<TABLE>
<CAPTION>
                                                                         Common Stock
                                                                     --------------------       Additional    Obligation
                                                                    Number of                    Paid-In       to Issue
                                                                     Shares         Amount       Capital        Shares
                                                                     ------         ------       -------        ------
<S>                                                               <C>             <C>         <C>             <C>
BALANCE - JUNE 14, 2004                                            59,300,000      $59,300     $  (10,300)     $    --

Forward stock split on a 1.5:1 basis                               29,650,000       29,650        (29,650)          --
Comprehensive income (loss)
  Foreign exchange translation adjustment                                  --           --             --           --
  Net loss                                                                 --           --             --           --
                                                                  -----------      -------     ----------      -------
BALANCE - DECEMBER 31, 2005                                        88,950,000       88,950        (39,950)          --

Share exchange and recapitalization
  Shares issued to former shareholders of Upstream Canada          24,000,000       24,000             --           --
  Shares cancelled on acquisition                                 (68,650,000)      68,650             --           --
  Recapitalization adjustment                                              --           --         (4,005)          --
Fair value compensation to consultant
  Issuance of stock at $1.20 per share                                500,000          500        599,500           --
  Amortization of fair value of stock options granted                      --           --        100,150           --
Issuance of convertible debenture
  Fair value of detachable warrants                                        --           --        360,964           --
  Embedded beneficial conversion feature                                   --           --        268,108           --
Issuance of stock for services
  Prepaid for six months ended October 31, 2006                        17,500           18         17,750           --
  Less: amount expensed to September 30, 2006                              --           --             --           --
  Issuance of stock for BCCA license fee                               29,577           30         17,717           --
  Partial forfeiture of convertible debenture                              --           --        141,844           --
Comprehensive loss
  Foreign exchange translation adjustment                                  --           --             --           --
  Net loss                                                                 --           --             --           --
                                                                  -----------      -------     ----------      -------
BALANCE - SEPTEMBER 30, 2006                                       44,847,077       44,848      1,462,078           --

Amortization of fair value of stock options granted                        --           --        771,809           --
Amortization of stock issued for operating expenses                        --           --             --           --
Issuance of stock for services
  Prepaid for twelve months ended October 31, 2007                     48,326           48         34,674           --
  Less: amount expensed to September 30, 2007                              --           --             --           --
Issuance of stock for cash @ 1.50 per share                         1,333,334        1,333      1,998,667           --
Cash payment for unsuccessful due diligence                                --           --         (5,000)          --
Issuance of stock for convertible debenture
  Principal                                                           800,000          800        799,200           --
  Interest payable                                                     53,973           54         53,919           --
Issuance of stock for acquisition of PPT
  For 100% of PPT's shares                                            520,000          520        243,880           --
  For performance-based escrow shares as deferred compensation        225,000          225        105,525           --
Obligation to issue shares under contract                                  --           --             --        4,842
Comprehensive income (loss)
  Foreign exchange translation adjustment                                  --           --             --           --
  Net loss                                                                 --           --             --           --
                                                                  -----------      -------     ----------      -------
BALANCE - SEPTEMBER 30, 2007                                       47,827,710       47,828      5,464,752        4,842

Amortization of fair value of stock options granted                        --           --        424,128           --
Amortization of stock issued for operating expenses                        --           --             --           --
Issuance of stock for consulting services contract
  For six months ended January 31, 2008 @ $0.30 per share              83,183           83         24,872       (4,842)
  For amended and restated contract @ $0.25 per share                 403,388          403        100,445           --
  For six months ended August 31, 2008 @ $0.30 per share              213,725          214         46,841           --
Issuance of stock for achieving Malaria milestone
  New stock issued @ $0.3624/sh                                       925,000          925        334,295           --
  Release of 75,000 performance-based shares from escrow                   --           --             --           --
Obligation to issue shares under contract                                  --           --             --       14,391
Comprehensive income (loss)
  Foreign exchange translation adjustment                                  --           --             --           --
  Net loss                                                                 --           --             --           --
                                                                  -----------      -------     ----------      -------
BALANCE - SEPTEMBER 30, 2008                                       49,453,006       49,453      6,395,333       14,391

Amortization of fair value of stock options granted                        --           --        194,545           --
Forgiveness of related party debt                                          --      300,000             --           --
Obligation to issue shares under contract                                  --           --         85,346           --
Comprehensive income (loss)
Foreign exchange translation adjustment                                    --           --             --           --
Net loss                                                                   --           --             --           --
                                                                  -----------      -------     ----------      -------
BALANCE - SEPTEMBER 30, 2009                                       49,453,006      $49,453     $6,889,878      $99,737
                                                                  -----------      -------     ----------      -------

Forgiveness of related party debt                                          --           --        271,984           --
Issuance of stock as per agreement                                  1,000,000        1,000         24,000           --
Stock returned to treasury                                        (16,340,941)     (16,341)        16,341           --
Forgiveness of obligation to issue shares                                  --           --             --      (99,737)
Forgiveness of deferred compensation due to
 cancellation of escrow shares                                             --           --        (78,570)          --
Comprehensive income (loss)
  Foreign exchange translation adjustment                                  --           --             --           --
  Net loss                                                                 --           --             --           --
                                                                  -----------      -------     ----------      -------

BALANCE - SEPTEMBER 30, 2010                                       34,112,065      $34,112     $7,123,633      $    --
                                                                  ===========      =======     ==========      =======

                                                                                 Accumulated      Deficit
                                                                                   Other        Accumulated
                                                                                Comprehensive    During the       Total
                                                                   Deferred        Income       Development    Stockholders'
                                                                 Compensation      (Loss)          Stage          Equity
                                                                 ------------      ------          -----          ------
BALANCE - JUNE 14, 2004                                          $      --       $     --       $   (77,105)   $   (28,105)

Forward stock split on a 1.5:1 basis
Comprehensive income (loss)
  Foreign exchange translation adjustment                                --         (3,472)              --         (3,472)
  Net loss                                                               --             --          (50,205)       (50,205)
                                                                  ---------       --------      -----------    -----------
BALANCE - DECEMBER 31, 2005                                              --         (3,472)        (127,310)       (81,782)

Share exchange and recapitalization
  Shares issued to former shareholders of Upstream Canada                --             --               --         24,000
  Shares cancelled on acquisition                                        --             --               --        (68,650)
  Recapitalization adjustment                                            --             --          (49,045)       (53,050)
Fair value compensation to consultant
  Issuance of stock at $1.20 per share                                   --             --               --        600,000
  Amortization of fair value of stock options granted                    --             --               --        100,150
Issuance of convertible debenture
  Fair value of detachable warrants                                      --             --               --        360,964
  Embedded beneficial conversion feature                                 --             --               --        268,108
Issuance of stock for services
  Prepaid for six months ended October 31, 2006                     (17,768)            --               --             --
  Less: amount expensed to September 30, 2006                        14,986             --               --         14,986
  Issuance of stock for BCCA license fee                                 --             --               --         17,747
  Partial forfeiture of convertible debenture                            --             --               --        141,844
Comprehensive loss
  Foreign exchange translation adjustment                                --         (5,707)              --         (5,707)
  Net loss                                                               --             --       (1,843,529)    (1,843,529)
                                                                  ---------       --------      -----------    -----------
BALANCE - SEPTEMBER 30, 2006                                         (2,782)        (9,179)      (2,019,884)      (283,252)

Amortization of fair value of stock options granted                      --             --               --        771,809
Amortization of stock issued for operating expenses                   2,782             --               --          2,782
Issuance of stock for services
  Prepaid for twelve months ended October 31, 2007                  (34,722)            --               --             --
  Less: amount expensed to September 30, 2007                        31,600             --               --         31,600
Issuance of stock for cash @ 1.50 per share                              --             --               --      2,000,000
Cash payment for unsuccessful due diligence                              --             --               --         (5,000)
Issuance of stock for convertible debenture
  Principal                                                              --             --               --        800,000
  Interest payable                                                       --             --               --         53,973
Issuance of stock for acquisition of PPT
  For 100% of PPT's shares                                               --             --               --        244,400
  For performance-based escrow shares as deferred compensation     (105,750)            --               --             --
Obligation to issue shares under contract                                --             --               --          4,842
Comprehensive income (loss)
  Foreign exchange translation adjustment                                --         36,035               --         36,035
  Net loss                                                               --             --       (1,796,981)    (1,796,981)
                                                                  ---------       --------      -----------    -----------
BALANCE - SEPTEMBER 30, 2007                                       (108,872)        26,856       (3,816,865)     1,618,541

Amortization of fair value of stock options granted                                                                424,128
Amortization of stock issued for operating expenses                   3,122             --               --          3,122
Issuance of stock for consulting services contract
  For six months ended January 31, 2008 @ $0.30 per share                --             --               --         20,113
  For amended and restated contract @ $0.25 per share                    --             --               --        100,848
  For six months ended August 31, 2008 @ $0.30 per share                 --             --               --         47,055
Issuance of stock for achieving Malaria milestone
  New stock issued @ $0.3624/sh                                          --             --               --        335,220
  Release of 75,000 performance-based shares from escrow             27,180             --               --         27,180
Obligation to issue shares under contract                                --             --               --         14,391
Comprehensive income (loss)
  Foreign exchange translation adjustment                                --         (7,657)              --         (7,657)
  Net loss                                                               --             --       (2,034,502)    (2,034,502)
                                                                  ---------       --------      -----------    -----------
BALANCE - SEPTEMBER 30, 2008                                        (78,570)        19,199       (5,851,367)       548,439

Amortization of fair value of stock options granted                      --             --               --        194,545
Forgiveness of related party debt                                        --             --               --        300,000
Obligation to issue shares under contract                                --             --               --         85,346
Comprehensive income (loss)
Foreign exchange translation adjustment                                  --        (29,237)              --        (29,237)
Net loss                                                                 --             --       (1,099,854)    (1,099,854)
                                                                  ---------       --------      -----------    -----------
BALANCE - SEPTEMBER 30, 2009                                      $ (78,570)      $(10,038)     $(6,951,221)   $      (761)
                                                                  ---------       --------      -----------    -----------

Forgiveness of related party debt                                        --             --               --        271,984
Issuance of stock as per agreement                                       --             --               --         25,000
Stock returned to treasury                                               --             --               --             --
Forgiveness of obligation to issue shares                                --             --               --        (99,737)
Forgiveness of deferred compensation due to
 cancellation of escrow shares                                       78,570             --               --             --
Comprehensive income (loss)
  Foreign exchange translation adjustment                                --        (16,015)              --        (16,015)
  Net loss                                                               --             --         (323,544)      (323,544)
                                                                  ---------       --------      -----------    -----------

BALANCE - SEPTEMBER 30, 2010                                      $      --       $(26,053)     $(7,274,765)   $  (143,073)
                                                                  =========       ========      ===========    ===========
</TABLE>


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

                                       24
<PAGE>
                            UPSTREAM BIOSCIENCES, INC
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                               September 30, 2010


1. NATURE OF BUSINESS AND CONTINUANCE OF OPERATIONS

Upstream  Biosciences,  Inc. ("the Company") was  incorporated on March 20, 2002
under the laws of the State of Nevada.  The  Company  is  engaged in  developing
technology relating to biomarker identification, disease susceptibility and drug
response areas of cancer.

GOING CONCERN
These  consolidated  financial  statements have been prepared in accordance with
generally  accepted  accounting  principles in the United States of America ("US
GAAP") on a going concern basis,  which  contemplates  the realization of assets
and the  satisfaction  of  liabilities  and  commitments in the normal course of
business. As at September 30, 2010, the Company has a working capital deficiency
of $139,443 and has incurred losses since  inception of $7,274,765.  This raises
substantial  doubt about the  Company's  ability to continue as a going  concern
which is dependent  upon  generating  profitable  operations  and  obtaining the
necessary  financing to meet its  obligations  when they become due. There is no
assurance that equity or debt capital will be available as necessary to meet the
Company's requirements or, if the capital is available, that it will be on terms
acceptable to the Company.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION AND CONSOLIDATION
These  consolidated  financial  statements  and related  notes are  presented in
accordance  with United States  generally  accepted  accounting  principles ("US
GAAP") and are expressed in US dollars.  The Company is in the development stage
and has not realized  significant revenues from its business plan to date. These
financial  statements  include the accounts of the Company and its  wholly-owned
Canadian  subsidiaries,  Upstream  Biosciences,  Inc.  ("Upstream  Canada")  and
Pacific Pharma  Technologies  Inc. ("PPT").  All inter-company  transactions and
account balances have been eliminated on consolidation.

The Company acquired  Upstream Canada on February 24, 2006. This transaction was
accounted  for  as  a  recapitalization   transaction,   similar  to  a  reverse
acquisition  accounting,  with Upstream  Canada being treated as the  accounting
parent  (legal  subsidiary)  and the  Company  being  treated as the  accounting
subsidiary (legal parent).  Accordingly,  the consolidated results of operations
of the  Company  include  those  of  Upstream  Canada  for the  period  from its
inception  on June 14,  2004  and  those of the  Company  since  the date of the
reverse acquisition, February 24, 2006.

EQUIPMENT
Equipment  is valued  at cost less  accumulated  amortization.  Amortization  is
recorded  using the  straight-line  method over four years and  maintenance  and
repairs are expensed as incurred.

INTELLECTUAL PROPERTY RIGHTS
Intellectual  Property  Rights  ("IPR") were being  amortized on a straight line
basis over 5 years.  The  carrying  value of the IPR were  reviewed on a regular
basis for the existence of facts or circumstances  that may suggest  impairment.
The determination of any impairment  includes a comparison of net carrying value
with  estimated  future  operating cash flows  anticipated  during the remaining
useful life.

USE OF ESTIMATES AND ASSUMPTIONS
The preparation of financial  statements in conformity with US GAAP requires the
Company to make estimates and  assumptions  that affect the reported  amounts of
assets and  liabilities  and disclosure of contingent  assets and liabilities at
the date of the  financial  statements  and the reported  amounts of revenue and
expenses  during the  reporting  period.  The Company  bases its  estimates  and
assumptions  on current facts,  historical  experience and various other factors
that it believes to be reasonable under the circumstances,  the results of which
form the basis for  making  judgments  about the  carrying  values of assets and
liabilities and the accrual of costs and expenses that are readily apparent from
other  sources.  The  actual  results  experienced  by the  Company  may  differ
materially  from the  Company's  estimates.  To the  extent  there are  material
differences,  future results may be affected.  Estimates used in preparing these
financial statements include the carrying value of intellectual  property rights
and the fair value of share-based  payments,  deferred  income taxes,  financial
instruments and deferred compensation.

SHARE-BASED COMPENSATION
The Company  accounts for share-based  compensation  using the fair value method
and related  compensation  expense is recognized over the period of benefit when
the service is rendered.

                                       25
<PAGE>
FINANCIAL INSTRUMENTS
The Company's financial instruments consist of cash and cash equivalents,  other
receivables,  restricted  cash,  accounts  payable,  and  amounts due to related
parties.  The carrying  amounts of these financial  instruments at September 30,
2010 and 2009 approximate their fair values due to their short term nature.

FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION
The functional and reporting currency of the Company is the United States dollar
and of the Company's Canadian subsidiaries is the Canadian dollar. The financial
statements  of the  Canadian  subsidiaries  are  translated  into United  States
dollars  using  period-end  rates of exchange  for assets and  liabilities,  and
period  average  rates of exchange for revenues and expenses.  Foreign  currency
transaction  gains  (losses)  are  included in the  consolidated  statements  of
operations  and those  arising from  translation  of the  Canadian  subsidiaries
during the  consolidation  process are  included in other  comprehensive  income
(loss) which is disclosed as a separate component of shareholders'  deficit. The
Company has not entered into any derivative  instruments to offset the impact of
foreign currency fluctuations.

RESEARCH AND DEVELOPMENT
These costs are expensed when incurred and consist  primarily of direct material
and  personnel  costs,  contract  services and indirect  costs.  The Company has
received  government  assistance  in the past and may receive same in the future
regarding its research and  development  activities.  When the work is performed
that  qualifies for such grants,  the related  assistance  amount is credited to
research and development expense.

INCOME TAXES
The Company uses the asset and liability  method of accounting for income taxes.
Under this method,  deferred tax assets and liabilities are determined  based on
temporary  differences  between the  financial  statements  and the tax basis of
assets and  liabilities,  and net operating  loss carry  forwards based on using
enacted tax rates in effect for the year in which the  differences  are expected
to  reverse.  The  effect of a change in tax rates on  deferred  tax  assets and
liabilities  is  recognized  in income in the year that  includes the  enactment
date.  Valuation  allowances are established to the extent that it is considered
more likely than not that deferred tax assets will be realized. At September 30,
2010 and 2009,  a valuation  allowance  for the full amount of the  deferred tax
assets was recorded.

LOSS PER SHARE
Basic  loss per  share is  computed  by  dividing  the net loss by the  weighted
average  number of outstanding  common shares during the year.  Diluted loss per
share gives effect to all potentially  dilutive common shares outstanding during
the year, including convertible debt, stock options and share purchase warrants,
using the treasury stock method.  The computation of diluted loss per share does
not assume conversion,  exercise or contingent exercise of securities that would
have an anti-dilutive effect on loss per share.

NEW ACCOUNTING PRONOUNCEMENTS AND POLICIES
The Company has reviewed recently issued accounting  pronouncements and plans to
adopt those that are  applicable to it. It does not expect the adoption of these
pronouncements  to have a material  impact on its reported  financial  position,
results of operations or cash flows.

3. INTELLECTUAL PROPERTY RIGHTS

                                            September 30,         September 30,
                                                2010                  2009
                                             ----------            ----------
Cost                                         $  295,907            $  295,907
Deferred income tax                              56,779                56,779
                                             ----------            ----------
Total cost                                      352,686               352,686
Less: Accumulated amortization                 (115,361)             (115,361)
                                             ----------            ----------
                                                237,325               237,325
Less: Impairment                                (59,010)              (59,010)
                                             ----------            ----------
                                                178,315               178,315
Less: Disposal by sale                         (178,315)                   --
                                             ----------            ----------

                                             $       --            $  178,315
                                             ==========            ==========

Pursuant to an agreement  dated  December 14, 2009, the Company sold its IPR for
proceeds of $1. The  agreement  resulted in the  cancellation  of the  Company's
obligation  to issue  shares  with a value of  $99,737,  resulting  in a loss on
disposal of $78,570.

4. EQUIPMENT

Equipment  consists of computer  equipment  purchased during the year for $1,530
less accumulated amortization of $192.

                                       26
<PAGE>
5. RELATED PARTY TRANSACTIONS

For the year ended September 30, 2010, the Company incurred  expenses of $72,245
(2009  -  $445,034)  to  management,   directors,  or  companies  controlled  by
directors.

                                                Year End             Year End
                                              September 30,        September 30,
                                                  2010                 2009
                                                --------             --------
Management fees and benefits                    $ 72,245             $423,070
Amortization of stock options granted                 --              122,382
                                                --------             --------
Sub-total                                         72,245              545,452
Less: Reclassified to research and
 development expense                                  --             (100,418)
                                                --------             --------

Net Total                                       $ 72,245             $445,034
                                                ========             ========


As at September 30, 2010,  the Company owed $Nil (2009 - $297,970) to directors,
or companies controlled by directors. These amounts were unsecured, did not bear
interest  and were due on  demand.  During the year ended  September  30,  2010,
$271,984  owing to the  directors  was  forgiven.  The  forgiveness  of debt was
treated as a capital  transaction  and recorded as Additional Paid in Capital in
the consolidated financial statements.

During the year ended  September  30, 2010,  16,190,940  shares were returned to
treasury and cancelled for no  consideration  by two directors of the Company in
connection with their resignation.

During the year ended  September 30, 2010, the Company sold its IPR for proceeds
of $1 to a former member of the Company's  management.  In connection  with this
transaction,  its  obligation  to  issue  shares  with a value  of  $99,737  was
cancelled,  and deferred compensation expense of $78,570,  which was included in
shareholders'   deficit,   was  reversed  upon  the   cancellation   of  150,000
performance-based escrow shares.

During the year ended  September 30, 2009, two directors of the Company  amended
their employment agreements with the Company. The amendments resulted in accrued
termination benefits amounting to $300,000 no longer being payable. The reversal
of the  termination  benefit  accrual was treated as a capital  transaction  and
recorded as Additional Paid in Capital in the consolidated financial statements.

Included  in other  receivables  is  $2,430  (2009 - $Nil)  due  from a  company
controlled  by a member of the Company's  management.  This amount is unsecured,
bears not interest and is due on demand.

Related party transactions were conducted in the ordinary course of business and
measured  at the  exchange  amount  established  and  agreed  to by the  related
parties.

6. INCOME TAXES

A reconciliation of the Company's  expected income tax provision compared to the
actual tax provision is as follows:

                                               Year ended          Year ended
                                              September 30,       September 30,
                                                  2010                2009
                                              ------------        ------------
Loss before income taxes                      $   (351,401)       $ (1,117,929)
Corporate tax rate                                      35%                 35%
                                              ------------        ------------
Expected tax recovery                             (122,990)           (391,275)
Increase resulting from:
  Permanent differences                            197,886              79,803
  Differences in foreign tax rates                  39,074              91,910
  Change in valuation allowance                   (141,827)            201,487
                                              ------------        ------------

                                              $    (27,857)       $    (18,075)
                                              ============        ============

                                       27
<PAGE>
At September 30, 2010 and 2009, the components of the deferred income tax assets
and liabilities are as follows:

                                              September 30,       September 30,
                                                  2010                2009
                                              ------------        ------------
Non-capital tax loss carry forwards           $    970,053        $  1,120,500
Other deferred tax assets                            8,620                  --
                                              ------------        ------------
Total deferred tax assets                          978,673           1,120,500
Intangible assets                                       --             (27,857)
                                              ------------        ------------
Net deferred tax assets                            978,673           1,092,643
Less: Valuation allowance                         (978,673)         (1,120,500)
                                              ------------        ------------

                                              $         --        $    (27,857)
                                              ============        ============

The parent  Company is  subject to income  taxes in the US and its  wholly-owned
subsidiaries  are subject to income taxes in Canada.  At September 30, 2010, the
Company  and  its   subsidiaries   had  total   accumulated   non-capital   loss
carry-forwards of approximately  $3,700,000,  of which $300,000 pertained to the
US and $3,400,000 to Canada. These losses are available to reduce taxable income
in future  taxation  years and  begin to  expire in 2025  after a  carry-forward
period of 20 years.  The Company is required to compute the deferred  income tax
benefits from non-capital loss  carry-forwards and other temporary  differences.
However,  due to the  uncertainty  of  realization  of these tax assets,  a full
valuation allowance has been provided.

7. CAPITAL STOCK

A) AUTHORIZED

The  authorized  capital  stock  of the  Company  is  comprised  of  100,000,000
non-voting  preferred shares and 750,000,000  voting common shares,  both with a
par value of $0.001 per share.

B) ISSUED AND OUTSTANDING No preferred shares have been issued to date.

During the year ended  September  30, 2010,  the changes in common stock were as
follows:

(i)  On November 17, 2009, 1,000,000 shares were issued with a fair market value
     of $25,000  pursuant  to the terms of an  agreement  dated  August 24, 2007
     regarding  the purchase of PPT,  whereby the Company was obligated to issue
     these  shares since the minimum  $150,000  was not expended on  third-party
     testing of the PPT technology during the year ended September 30, 2009.

(ii) On  December 4, 2009,  16,190,940  shares  were  returned  to treasury  and
     cancelled  for  no  consideration  by  two  directors  of  the  Company  in
     connection with their resignation.

(iii)Pursuant to an agreement  dated December 10, 2009 to sell the Company's IPR
     (Note 3), 150,000  performance-based  escrow  shares,  recorded as deferred
     compensation  of $78,570  in  shareholders'  deficit,  were  cancelled  and
     returned to treasury.

During the year ended September 30, 2009, there were no changes in common stock.

C) STOCK OPTIONS

The Company has a stock option plan (the "Plan")  authorizing the issuance of up
to  5,000,000  shares of common  stock  upon  exercise  of the  options  granted
pursuant  to the Plan.  Under  the Plan,  the  Company's  employees,  directors,
officers,  consultants  and advisors  (collectively  the  "Optionee  Group") are
eligible to receive a grant of the Company's options, provided however that bona
fide services are rendered by  consultants or advisors and such services are not
in  connection  with  the  offer  or sale  of  securities  in a  capital-raising
transaction.

During the years ended September 30, 2010 and 2009 the Company did not grant any
stock options.

The Company recorded $Nil as stock-based compensation expense for vested options
for the year ended September 30, 2010 (2009 - $194,545).

                                       28
<PAGE>
A summary of transactions involving stock options is as follows:

                                     Year ended             Year ended
                                 September 30, 2010     September 30, 2009
                                 -------------------   --------------------
                                            Weighted               Weighted
                                            average                average
                                 Number of  exercise   Number of   exercise
                                  options     price     options      price
                                  -------     -----     -------      -----
Outstanding, beginning of year   2,000,000    0.95     2,000,000     0.95
Expired                         (1,200,000)   0.91            --       --
                                ----------    ----     ---------     ----

Outstanding, end of year           800,000    1.02     2,000,000     0.95
                                ==========    ====     =========     ====

Exercisable, end of year           800,000    1.02     1,966,666     0.94
                                ==========    ====     =========     ====

At September 30, 2010,  800,000 stock options were  outstanding  with a weighted
average exercise price and remaining life of $1.02 and 1.5 years respectively.

D) SHARE PURCHASE WARRANTS

There are no stock purchase warrants outstanding at September 30, 2010 and 2009.

8. COMMITMENTS AND CONTINGENCIES

An  individual  has  alleged a breach of contract by the Company and has filed a
claim in the amount $500,000 plus interest of $114,000 (as at November 26, 2010)
against  the  Company  and its  directors.  The  Company  refuted  the claims on
December 13, 2010 and there have been no further developments since that time.

The  Company  entered  into  license  agreements  in March  2005  with  both the
University of British  Columbia  ("UBC") and the British  Columbia Cancer Agency
("BCCA").  Both UBC and BCCA have not delivered to the Company the software code
and  documentation  associated with their licensed  technologies and the Company
deems both  parties to be in  defaults of the  license  agreements.  As official
contract  termination  notices have also not been  delivered to UBC and BCCA the
Company  continues to accrue for obligations in terms of the license  agreements
in breach.  As at September 30, 2010,  the Company has accrued  $125,074 (2009 -
64,834)  for the unpaid  license  fees.

                                       29
<PAGE>
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
        FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

As required by paragraph (b) of Rules 13a-15 or 15d-15 under the Exchange Act,
our principal executive officer and principal financial officer evaluated our
company's disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) of the Exchange Act) as of the end of the period covered by this
annual report on Form 10-K. Based on this evaluation, these officers concluded
that as of the end of the period covered by this Annual Report on Form 10-K,
these disclosure controls and procedures were not effective to ensure that the
information required to be disclosed by our company in reports it files or
submits under the Exchange Act is recorded, processed, summarized and reported
within the time periods specified in the rules and forms of the Securities
Exchange Commission and include controls and procedures designed to ensure that
such information is accumulated and communicated to our company's management,
including our company's principal executive officer and principal financial
officer, to allow timely decisions regarding required disclosure. The conclusion
that our disclosure controls and procedures were not effective was due to the
presence of material weaknesses in internal control over financial reporting as
identified below under the heading "Management's Report on Internal Control Over
Financial Reporting." Management anticipates that such disclosure controls and
procedures will not be effective until the material weaknesses are remediated.
Our company intends to remediate the material weaknesses as set out below.

Because of the inherent limitations in all control systems, no evaluation of
controls can provide absolute assurance that all control issues, if any, within
our company have been detected. These inherent limitations include the realities
that judgments in decision-making can be faulty and that breakdowns can occur
because of simple error or mistake.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our company's management is responsible for establishing and maintaining
adequate internal control over financial reporting (as defined in Rules
13a-15(f) and 15d-15(f) of the Exchange Act) for our company. Our company's
internal control over financial reporting is designed to provide reasonable
assurance, not absolute assurance, regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles in the United States of
America. Internal control over financial reporting includes those policies and
procedures that: (i) pertain to the maintenance of records that, in reasonable
detail, accurately and fairly reflect the transactions and dispositions of our
company's assets; (ii) provide reasonable assurance that transactions are
recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles in the United States of
America, and that our company's receipts and expenditures are being made only in
accordance with authorizations of our management and directors; and (iii)
provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could have a
material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements. In addition, projections of any
evaluation of effectiveness to future periods are subject to the risk that
controls may become inadequate because of changes in conditions and that the
degree of compliance with the policies or procedures may deteriorate.

Our management, including our principal executive officer and principal
financial officer, conducted an evaluation of the design and operation of our
internal control over financial reporting as of September 30, 2010 based on the
criteria set forth in Internal Control - Integrated Framework issued by the
Committee of Sponsoring Organizations of the Treadway Commission. This
evaluation included review of the documentation of controls, evaluation of the
design effectiveness of controls, testing of the operating effectiveness of
controls and a conclusion on this evaluation. Based on this evaluation, our
management concluded our internal control over financial reporting was not
effective as at September 30, 2010 due to the following material weaknesses
which are indicative of many small companies with small staff: (i) inadequate
segregation of duties and effective risk assessment; (ii) insufficient written
policies and procedures for accounting and financial reporting with respect to
the requirements and application of both US GAAP and SEC guidelines; (iii)

                                       30
<PAGE>
inadequate security and restricted access to computer systems including
insufficient disaster recovery plans; and (iv) no written whistle-blower policy.

Our company plans to take steps to enhance and improve the design of our
internal controls over financial reporting. During the period covered by this
annual report on Form 10-K, we have not been able to remediate the material
weaknesses identified above. To remediate such weaknesses, we plan to implement
the following changes during our fiscal year ending September 30, 2010: (i)
appoint additional qualified personnel to address inadequate segregation of
duties and ineffective risk management; (ii) adopt sufficient written policies
and procedures for accounting and financial reporting and a whistle-blower
policy; and (iii) implement sufficient security and restricted access measures
regarding our computer systems and implement a disaster recovery plan. The
remediation efforts set out in (i) and (iii) are largely dependent upon our
company securing additional financing to cover the costs of implementing the
changes required. If we are unsuccessful in securing such funds, remediation
efforts may be adversely effected in a material manner.

This annual report does not include an attestation report of our independent
registered public accounting firm regarding internal control over financial
reporting. Our internal control over financial reporting was not subject to
attestation by our independent registered public accounting firm pursuant to
temporary rules of the Securities and Exchange Commission that permit us to
provide only management's report in this annual report.

Because of the inherent limitations in all control systems, no evaluation of
controls can provide absolute assurance that all control issues, if any, within
our company have been detected. These inherent limitations include the realities
that judgments in decision-making can be faulty and that breakdowns can occur
because of simple error or mistake.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There were no changes in our company's internal control over financial reporting
during the quarter ended September 30, 2010 that have materially affected, or
are reasonably likely to materially affect, our company's internal control over
financial reporting.

ITEM 9B. OTHER INFORMATION

None.

                                    PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

DIRECTORS AND EXECUTIVE OFFICERS

As at September 26, 2011, our directors and executive officers, their ages,
positions held, and duration of such, are as follows:

                                                              Date First Elected
Name              Position Held with the Company      Age        or Appointed
----              ------------------------------      ---        ------------
Mike              President, Secretary, Treasurer,    51      December 14, 2009
McFarland(1)(2)   Chief  Executive Officer, Chief
                  Financial Officer and Director

----------
(1)  Member of the Compensation Committee
(2)  Member of the Audit Committee

BUSINESS EXPERIENCE

The following is a brief account of the education and business experience of
each director and executive officer during at least the past five years,
indicating each person's principal occupation during the period, and the name
and principal business of the organization by which he was employed.

                                       31
<PAGE>
MIKE MCFARLAND

Mike McFarland was appointed as a director and the president, secretary,
treasurer, chief executive officer and chief financial officer of our company on
December 14, 2009. Mr. McFarland earned his Bachelor of Science degree in 1982
and his Bachelor of Education in 1984, both from St. Francis Xavier University.
Mr. McFarland has been in the education and teaching profession for over 25
years. Since 2005, he has been teaching at Notre Dame High School in Calgary,
Alberta. He has been an active investor in both private and public ventures for
the past 12 years.

We believe Mr. McFarland is qualified to serve on our board of directors because
of his knowledge of our company's history and current operations, which he
gained from working for our company as described above, in addition to his
education and business experience as described above.

SIGNIFICANT EMPLOYEES

We have no significant employees other than the sole director and officer of our
company.

FAMILY RELATIONSHIPS

There are no family relationships among our directors or officers.

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

Our sole director and executive officer has not been involved in any of the
following events during the past ten years:

     1.   any bankruptcy petition filed by or against any business of which such
          person was a general partner or executive officer either at the time
          of the bankruptcy or within two years prior to that time;

     2.   any conviction in a criminal proceeding or being subject to a pending
          criminal proceeding (excluding traffic violations and other minor
          offences);

     3.   being subject to any order, judgment, or decree, not subsequently
          reversed, suspended or vacated, of any court of competent
          jurisdiction, permanently or temporarily enjoining, barring,
          suspending or otherwise limiting his involvement in any type of
          business, securities or banking activities;

     4.   being found by a court of competent jurisdiction (in a civil action),
          the Securities and Exchange Commission or the Commodity Futures
          Trading Commission to have violated a federal or state securities or
          commodities law, and the judgment has not been reversed, suspended, or
          vacated;

     5.   being the subject of, or a party to, any federal or state judicial or
          administrative order, judgment, decree, or finding, not subsequently
          reversed, suspended or vacated, relating to an alleged violation of:
          (i) any federal or state securities or commodities law or regulation;
          or (ii) any law or regulation respecting financial institutions or
          insurance companies including, but not limited to, a temporary or
          permanent injunction, order of disgorgement or restitution, civil
          money penalty or temporary or permanent cease- and-desist order, or
          removal or prohibition order; or (iii) any law or regulation
          prohibiting mail or wire fraud or fraud in connection with any
          business entity; or

     6.   being the subject of, or a party to, any sanction or order, not
          subsequently reversed, suspended or vacated, of any self-regulatory
          organization (as defined in Section 3(a)(26) of the Securities
          Exchange Act of 1934), any registered entity (as defined in Section
          1(a)(29) of the Commodity Exchange Act), or any equivalent exchange,
          association, entity or organization that has disciplinary authority
          over its members or persons associated with a member.

                                       32
<PAGE>
AUDIT COMMITTEE

Mike McFarland has been appointed as the sole member of the audit committee. Mr.
McFarland is not an independent director of our company as defined by Rule
4200(a)(15) of the Nasdaq Marketplace Rules. Our audit committee undertakes an
independent review of our company's financial statements, and meets with
management to determine the adequacy of internal controls and other financial
reporting matters.

Prior to Mike McFarland being appointed to the audit committee, Dr. Geert
Cauwenbergh and Jeffrey Bacha acted as the audit committee. Our board of
directors determined that Dr. Geert Cauwenbergh and Jeffrey Bacha were the only
members of our board of directors that were "independent" as the term is defined
by Rule 4200(a)(15) of the Nasdaq Marketplace Rules.

AUDIT COMMITTEE FINANCIAL EXPERT

Our board of directors has determined that it does not have an audit committee
member that qualifies as an "audit committee financial expert" as defined in
Item 407(d)(5)(ii) of Regulation S-K. We believe that the sole audit committee
member is capable of analyzing and evaluating our financial statements and
understanding internal controls and procedures for financial reporting. In
addition, we believe that retaining an independent director who would qualify as
an "audit committee financial expert" would be overly costly and burdensome and
is not warranted in our circumstances given the early stages of our development
and the fact that we have not generated revenues to date.

NOMINATION PROCEDURES FOR APPOINTMENT OF DIRECTORS

As of September 26, 2011, we did not effect any material changes to the
procedures by which our stockholders may recommend nominees to our board of
directors.

CODE OF ETHICS

Effective January 29, 2004, our company's board of directors adopted a Code of
Business Conduct and Ethics that applies to, among other persons, members of our
board of directors, our company's officers, contractors, consultants and
advisors. As adopted, our Code of Business Conduct and Ethics sets forth written
standards that are designed to deter wrongdoing and to promote:

     (1)  honest and ethical conduct, including the ethical handling of actual
          or apparent conflicts of interest between personal and professional
          relationships;

     (2)  full, fair, accurate, timely, and understandable disclosure in reports
          and documents that we file with, or submit to, the Securities and
          Exchange Commission and in other public communications made by us;

     (3)  compliance with applicable governmental laws, rules and regulations;

     (4)  the prompt internal reporting of violations of the Code of Business
          Conduct and Ethics to an appropriate person or persons identified in
          the Code of Business Conduct and Ethics; and

     (5)  accountability for adherence to the Code of Business Conduct and
          Ethics.

Our Code of Business Conduct and Ethics requires, among other things, that all
of our company's personnel shall be accorded full access to our president with
respect to any matter which may arise relating to the Code of Business Conduct
and Ethics. Further, all of our company's personnel are to be accorded full
access to our company's board of directors if any such matter involves an
alleged breach of the Code of Business Conduct and Ethics by our company
officers.

In addition, our Code of Business Conduct and Ethics emphasizes that all
employees, and particularly managers and/or supervisors, have a responsibility
for maintaining financial integrity within our company, consistent with
generally accepted accounting principles, and federal, provincial and state
securities laws. Any employee who becomes aware of any incidents involving
financial or accounting manipulation or other irregularities, whether by

                                       33
<PAGE>
witnessing the incident or being told of it, must report it to his or her
immediate supervisor or to our company's President. If the incident involves an
alleged breach of the Code of Business Conduct and Ethics by the President, the
incident must be reported to any member of our board of directors. Any failure
to report such inappropriate or irregular conduct of others is to be treated as
a severe disciplinary matter. It is against our company policy to retaliate
against any individual who reports in good faith the violation or potential
violation of our company's Code of Business Conduct and Ethics by another.

We will provide a copy of the Code of Business Conduct and Ethics to any person
without charge, upon request. Requests can be sent to our company at the address
on the cover of this annual report.

SECTION 16(A) BENEFICIAL OWNERSHIP COMPLIANCE

Section 16(a) of the Securities Exchange Act requires our executive officers and
directors, and persons who own more than 10% of our common stock, to file
reports regarding ownership of, and transactions in, our securities with the
Securities and Exchange Commission and to provide us with copies of those
filings. Based solely on our review of the copies of such forms received by us,
or written representations from certain reporting persons, we believe that
during the fiscal year ended September 30, 2009, all filing requirements
applicable to our officers, directors and greater than 10% percent beneficial
owners were complied with, with the exception of the following:

                                             Number of
                                          Transactions Not
                       Number of Late   Reported on a Timely     Failure to File
Name                      Reports              Basis             Requested Forms
----                      -------              -----             ---------------
Dr. Geert Cauwenbaugh      1(1)                  1                     Nil

----------
(1)  The named director filed a late Form 4 - Statement of Changes in Beneficial
     Ownership which has subsequently been filed.

ITEM 11. EXECUTIVE COMPENSATION

The following table sets forth all compensation received during the two years
ended September 30, 2010 by our Chief Executive Officer, Chief Financial Officer
and each of the other most highly compensated executive officers whose total
compensation exceeded $100,000 in such fiscal year. These officers are referred
to as the Named Executive Officers in this Report.

SUMMARY COMPENSATION

The following table provides a summary of the compensation received by the
persons set out therein for each of our last two fiscal years:

                           SUMMARY COMPENSATION TABLE

<TABLE>
<CAPTION>
                                                                                         Change in
                                                                                          Pension
                                                                                         Value and
                                                                        Non-Equity      Nonqualified
 Name and                                                               Incentive         Deferred
 Principal                                      Stock      Option          Plan         Compensation    All Other
 Position           Year  Salary($)  Bonus($)  Awards($)  Awards($)(5) Compensation($)   Earnings($)  Compensation($) Totals($)
 --------           ----  ---------  --------  ---------  ---------    ---------------   -----------  --------------- ---------
<S>                 <C>   <C>        <C>        <C>       <C>          <C>               <C>          <C>             <C>
Mike McFarland(1)   2010    N/A        N/A        N/A         N/A            N/A             N/A            N/A          N/A
Chief Executive     2009    N/A        N/A        N/A         N/A            N/A             N/A            N/A          N/A
Officer, Chief
Financial
Officer,
President,
Secretary
Treasurer and
Director

                                      36
<PAGE>
Joel L.             2010    N/A        Nil        Nil         Nil            Nil             Nil            Nil          Nil
Bellenson(2)        2009  178,808      Nil        Nil         Nil            Nil             Nil         53,017      178,808
Chief Executive
Officer, Chief
Financial Offer
and Director

Dexster L. Smith(3) 2010    N/A        Nil        Nil         Nil            Nil             Nil            Nil          Nil
President and       2009  178,808      Nil        Nil         Nil            Nil             Nil            Nil      178,808
Director

Tim Fernback(4)     2010    N/A        Nil        Nil         Nil            Nil             Nil            Nil          Nil
former              2009  156,687      Nil        Nil         Nil            Nil             Nil            Nil      156,687
Chief Financial
Officer
</TABLE>

----------
(1)  Mike McFarland was appointed as chief executive officer, chief financial
     officer, president, secretary, treasurer and director on December 14, 2009.
(2)  Joel Bellenson was appointed director and chief executive officer of our
     company on March 1, 2006. Mr. Bellenson was appointed our chief financial
     officer on August 28, 2009. Mr. Bellenson resigned as an officer and
     director on December 14, 2009.
(3)  Dexster Smith was appointed director and president of our company on March
     1, 2006. Mr. Smith resigned as an officer and director on December 4, 2009.
(4)  Tim Fernback was our chief financial officer from April 12, 2006 to August
     28, 2009.
(5)  The determination of value of option awards is based upon the Black-Scholes
     Option pricing model, details and assumptions of which are set out in our
     financial statements included in this annual report. The amounts represent
     annual amortization of fair value of stock options granted to the named
     executive officer.

COMPENSATION DISCUSSION AND ANALYSIS

All of our current research and development was carried out by Mr. Bellenson and
Mr. Smith, former directors and officers of our company, pursuant to employment
agreements with our company calling for annual base salaries of $150,000 each.
Of note, Messrs. Bellenson and Smith voluntarily agreed to defer their salaries
for the 2009 calendar year, or until such time that our company completes a
suitable financing. Effective August 18, 2009, our company entered into
agreements with Messrs. Bellenson and Smith to amend the terms of their
respective employment agreements. The amendment agreements revise the severance
provisions of the original employment agreements which provided for the payment
of $150,000 as a retiring allowance to each of the employees in the event that
their employment was terminated for any reason. Under the terms of the amending
agreements, we agreed to pay each of Messrs. Bellenson and Smith $150,000
severance only in the event that (a) we terminate their employment without
cause; or (b) they terminate their employment upon a material breach or default
of any term of their respective employment agreements by our company, but only
if they first give written notice of such breach or default to us and we fail to
rectify it within a period of 30 days following receipt of such notice.
Accordingly, the accrued liablity of $300,000 will not be recognized in our
company's financial statements subsequent to June 30, 2009 since the amended
agreements will be accounted for on a prospective basis. Subsequent to our year
ended September 30, 2009, we terminated the amending agreements with Messrs.
Bellenson and Smith.

Prior to August 28, 2009, we paid $150,000 annually to TCF Ventures Corp.
("TCFV") for consulting services primarily pertaining to the function of chief
financial officer. TCFV is a company beneficially owned by Mr. Tim Fernback.
TCFV agreed to defer a portion of the amounts owed to him for consulting
services on the understanding that such amounts would be repaid when our company
obtained sufficient funds. TCFV a company through which Tim Fernback provided
services as chief financial officer of our company, agreed to defer a portion of
the amounts owed to him for consulting services on the understanding that such
amounts would be repaid when our company obtained sufficient funds. On August
24, 2009, our company received notice that TCFV was terminating its management
services contract effective August 28, 2009. The notice alleges TCFV's right to

                                       34
<PAGE>
terminate due to an un-rectified material breach arising from our company's
failure to pay a portion of the compensation owing under the contract on a
timely basis. After seeking legal advice, our company denied the breach since
the compensation in question was voluntarily deferred by TCFV. On December 14
2009, TCF Ventures and our company signed a mutual release whereby, in
consideration for the payment of $50,000 from our company to TCF Ventures, both
parties agreed to release each other from all claims or liabilities for any
allegations pled in the Statement of Claim and the Statement of Defence. In
addition, and similar to the situation with respect to Messrs. Bellenson and
Smith above, the $150,000 was incorrectly accrued in the financial statements of
our company from February 7, 2006 (the date of the original contract) to June
30, 2009. Accordingly, and although in dispute, our company has retroactively
reversed the $150,000 accrual from its financial statements as at June 30, 2009.

We have also entered into an amended three year consulting agreement with JTAT
Consulting through which Dr. Artem Cherkasov provides consulting services
related to our biotechnology drug development business. In consideration for
such services, we have agreed to pay JTAT Consulting CDN$50,000 annually and an
equivalent amount of shares in the capital of our company, calculated based upon
the closing price of our shares at the end of each calendar month. Effective
March 1, 2008, we amended the agreement with JTAT Consulting to increase the
equity component of the contract from CDN$50,000 to CDN$200,000 worth of shares
in the capital of our company, calculated based upon the closing price of our
shares at the end of each calendar month. All cash payments have been made and
all obligations to issue shares have been accrued but not yet issued to date. On
December 14, 2009, we stopped making any payments to JTAT Consulting as we
entered into an asset purchase agreement with JTAT Consulting and Dr. Artem
Cherkasov.

Our compensation program for our executive officers is administered and reviewed
by our board of directors and the Compensation Committee. Historically,
executive compensation consists of a combination of base salary and bonuses.
Individual compensation levels are designed to reflect individual
responsibilities, performance and experience, as well as the performance of our
company. The determination of discretionary bonuses is based on various factors,
including implementation of our business plan, acquisition of assets,
development of corporate opportunities and completion of financing. The
objectives of our compensation program are to retain and offer an incentive to
current management, and to carry out our compensation related policies as per
our Compensation Committee Charter.

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

The following table sets forth for each named executive officer certain
information concerning the outstanding equity awards as of September 30, 2010.

                  OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

<TABLE>
<CAPTION>
                                      Option Awards                                               Stock Awards
          --------------------------------------------------------------------   ---------------------------------------------
                                                                                                                       Equity
                                                                                                                      Incentive
                                                                                                           Equity       Plan
                                                                                                          Incentive    Awards:
                                                                                                            Plan      Market or
                                                                                                           Awards:     Payout
                                                Equity                                                    Number of   Value of
                                               Incentive                            Number                Unearned    Unearned
                                              Plan Awards;                            of        Market     Shares,     Shares,
            Number of         Number of        Number of                            Shares     Value of   Units or    Units or
           Securities        Securities       Securities                           or Units   Shares or    Other        Other
           Underlying        Underlying       Underlying                           of Stock    Units of    Rights      Rights
           Unexercised       Unexercised      Unexercised    Option     Option       That     Stock That    That        That
            Options            Options         Unearned     Exercise  Expiration   Have Not    Have Not   Have Not    Have Not
Name      Exercisable(#)(1) Unexercisable(#)   Options(#)(2) Price($)    Date      Vested(#)   Vested($)  Vested(#)   Vested(#)
----      --------------    ----------------  ----------     -----       ----      ---------   ---------  ---------   ---------
<S>            <C>               <C>            <C>         <C>         <C>         <C>        <C>        <C>        <C>
Mike           Nil                Nil             Nil         Nil         Nil         Nil         Nil        Nil         Nil
McFarland(3)
Chief
Executive
Officer,
Chief
Financial
Officer,
President,
Secretary
Treasurer
and
Director

                                       38
<PAGE>
Joel L.        Nil                Nil             Nil         Nil         Nil         Nil        Nil         Nil         Nil
Bellenson(4)
former
Chief
Executive
Officer,
Chief
Financial
Officer and
Director

Dexster L.     Nil                Nil             Nil         Nil         Nil         Nil        Nil         Nil         Nil
Smith(5)
former
President
and
Director

Tim
Fernback(6)    Nil                Nil             Nil         Nil         Nil         Nil        Nil         Nil         Nil
former
Chief
Financial
Officer
</TABLE>

----------

(1)  Represents options granted to the named executive officer that have vested.
(2)  Represents options granted to the named executive officer that have not yet
     vested.
(3)  Mike McFarland was appointed as chief executive officer, chief financial
     officer, president, secretary, treasurer and director on December 14, 2009.
(4)  Joel Bellenson was appointed director and chief executive officer of our
     company on March 1, 2006. Mr. Bellenson was appointed our chief financial
     officer on August 28, 2009. Mr. Bellenson resigned from as an officer and
     director on December 14, 2009.
(5)  Dexster Smith was appointed director and president of our company on March
     1, 2006. Mr. Smith resigned from as an officer and director on December 4,
     2009.
(6)  Mr. Fernback resigned as our chief financial officer on August 28, 2009.

No options were granted during the year ended September 30, 2010. At September
30, 2010, there were 800,000 stock options issued and outstanding.

In March 2007, our company approved and adopted a stock option plan authorizing
the issuance of up to 5,000,000 shares of common stock upon exercise of the
options granted pursuant to the plan. Under the plan, our employees, directors,
officers, consultants and advisors are eligible to receive a grant of our
shares, provided however that bona fide services are rendered by consultants or
advisors and such services are not in connection with the offer or sale of
securities in a capital-raising transaction.

In connection with previously granted options, we recorded $Nil as stock-based
compensation expense for the year ended September 30, 2010 (year ended September
30, 2009 - $194,545).

                                       35
<PAGE>
A summary of our outstanding stock options as of September 30, 2010 is presented
below:

                                                                Options
                                                             Outstanding at
Grant Date         Expiry Date       Exercise Price        September 30, 2010
----------         -----------       --------------        ------------------
March 16, 2007     March 16, 2012     $0.96-$1.00                700,000
May 3, 2007        May 3, 2012        $1.41                      100,000
                                                                 -------
TOTALS                                                           800,000
                                                                 =======

----------
(1)  On December 14, 2009, these options were cancelled.

The weighted average exercise price and remaining life of the stock options was
$1.02 and 1.5 years, respectively.

AGGREGATED OPTION EXERCISES

There were no options exercised by any officer or director of our company during
our twelve month period ended September 30, 2010.

LONG-TERM INCENTIVE PLAN

Currently, our company does not have a long-term incentive plan in favor of any
director, officer, consultant or employee of our company.

DIRECTORS COMPENSATION

The particulars of compensation paid to our directors for our year ended
September 30, 2010, is set out in the following director compensation table:

<TABLE>
<CAPTION>
                                                                                Change in
                                                                                 Pension
                                                                                Value and
                           Fees                                Non-Equity      Nonqualified
                          Earned                               Incentive         Deferred
                         Paid in      Stock      Option          Plan          Compensation      All Other
    Name                 Cash($)     Awards($)  Awards($)(1) Compensation($)    Earnings($)    Compensation($)   Total($)
    ----                 -------     ---------  ---------    ---------------    -----------    ---------------   --------
<S>                       <C>       <C>        <C>             <C>               <C>            <C>              <C>
Mike McFarland(1)           N/A        N/A         N/A             N/A              N/A              N/A            N/A
</TABLE>

----------
(1)  Mike McFarland was appointed as a director of our company on December 14,
     2009.

Independent directors may be paid their expenses for attending each board of
directors meeting and may be paid a fixed sum for attendance at each meeting of
the directors or a stated salary as director. No payment precludes any director
from serving our company in any other capacity and being compensated for the
service. Members of special or standing committees may be allowed like
reimbursement and compensation for attending committee meetings.

PENSION AND RETIREMENT PLANS

Currently, we do not offer any annuity, pension or retirement benefits to be
paid to any of our officers, directors or employees, in the event of retirement.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
         RELATED STOCKHOLDER MATTERS

As of September 26, 2011, there were 34,112,065 shares of our common stock
outstanding. The following table sets forth certain information known to us with
respect to the beneficial ownership of our common stock as of that date by (i)
each of our directors, (ii) each of our executive officers, and (iii) all of our
directors and executive officers as a group. Except as set forth in the table
below, there is no person known to us who beneficially owns more than 5% of our
common stock.

                                       36
<PAGE>
<TABLE>
<CAPTION>
Name and Address of                                           Amount and Nature of        Percentage
 Beneficial Owner                       Position              Beneficial Ownership         of Class
 ----------------                       --------              --------------------         --------
<S>                             <C>                         <C>                           <C>
Mike McFarland                 Chief Executive Officer,              Nil                      N/A
71099, 198 - 8060 Silver       Chief Financial Officer,
Spring Blvd., Calgary,         President, Secretary,
Alberta  Canada                Treasurer and Director

Directors and Executive
 Officers as a Group                                                 Nil                      N/A
</TABLE>

CHANGES IN CONTROL

We are unaware of any contract or other arrangement the operation of which may
at a subsequent date result in a change of control of our company.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
         INDEPENDENCE

Except as described below, no director, executive officer, principal shareholder
holding at least 5% of our common shares, or any family member thereof, had any
material interest, direct or indirect, in any transaction, or proposed
transaction, since the beginning of our year ended September 30, 2010, or in any
currently proposed transaction, in which the amount involved in the transaction
exceeded or exceeds the lesser of $120,000 or one percent of the average of our
total assets at the year end for the last two completed fiscal years.

Of the management compensation incurred during the year ended September 30,
2009, $100,418 was expensed as research and development.

During the year ended September 30, 2009 two of our directors amended their
employment agreements with us. The amendments resulted in accrued termination
benefits amounting to $300,000 no longer being payable.

All related party transactions are conducted in the ordinary course of business
and measured at the exchange amount, which is the consideration established and
agreed to by the related parties.

CORPORATE GOVERNANCE

We currently have one director: Mike McFarland.

We have determined that Mr. McFarland is not an independent director, as that
term is used in Rule 4200(a)(15) of the Nasdaq Marketplace Rules and National
Instrument 52-110.

AUDIT COMMITTEE

Our board of directors struck an audit committee on December 3, 2008. As of that
date, Jeffrey Bacha and Dr. Geert Cauwenbergh were appointed as sole members of
the audit committee, both of whom were independent. Currently, upon the
resignations of Jeffrey Bacha and Dr. Geert Cauwenbergh, Mike McFarland is the
sole member of our audit committee. Mike McFarland is not independent as defined
by Rule 4200(a)(15) of the Nasdaq Marketplace Rules. Our audit committee
undertakes an independent review of our company's financial statements, and
meets with management to determine the adequacy of internal controls and other
financial reporting matters.

Our board of directors has determined that it does not have an audit committee
member that qualifies as an "audit committee financial expert" as defined in
Item 407(d)(5)(ii) of Regulation S-K. We believe that the audit committee
members are collectively capable of analyzing and evaluating our financial
statements and understanding internal controls and procedures for financial
reporting. In addition, we believe that retaining an independent director who
would qualify as an "audit committee financial expert" would be overly costly
and burdensome and is not warranted in our circumstances given the early stages
of our development and the fact that we have not generated revenues to date.

                                       37
<PAGE>
The audit committee acts in accordance with our Audit Committee Charter which
was filed as an exhibit to our Annual Report on Form 10-K, filed with the
Securities and Exchange Commission on December 22, 2008.

COMPENSATION COMMITTEE - COMPENSATION COMMITTEE INTERLOCKS AND INSIDER
PARTICIPATION

Our board of directors struck a compensation committee on September 11, 2008. As
of that date, Dr. Geert Cauwenbergh and Jeffrey Bacha were appointed as sole
members of the committee, each of whom were non-employee directors of our
company. Currently, upon the resignations of Jeffrey Bacha and Dr. Geert
Cauwenbergh, Mike McFarland is the sole member of our compensation committee.
Our sole member of the compensation committee is not independent as defined by
Rule 4200(a)(15) of the Nasdaq Marketplace Rules. The purpose of our
compensation committee is to oversee our company's compensation and benefit
plans, including our compensation and equity-based plans. Our compensation
committee also monitors and evaluates matters relating to the compensation and
benefits structure of our company and takes other such actions within the scope
of the compensation committee charter as our board of directors may assign to
the compensation committee from time to time.

The compensation committee acts in accordance with our Compensation Committee
Charter which is filed as an exhibit to this annual report.

COMPENSATION COMMITTEE REPORT

The compensation committee has reviewed and discussed the Compensation
Discussion and Analysis with management, and based on the review and discussion,
the compensation committee recommended to the board of directors that the
Compensation Discussion and Analysis be included in our company's annual report.

NATIONAL INSTRUMENT 52-110

We are a reporting issuer in the Province of British Columbia. National
Instrument 52-110 of the Canadian Securities Administrators requires our
company, as a venture issuer, to disclose annually in our annual report certain
information concerning the constitution of our audit committee and our
relationship with our independent auditor. As defined in National Instrument
52-110, our sole director and officer, Mike McFarland, is not independent. For a
description of the education and experience of each audit committee member that
is relevant to the performance of his responsibilities as an audit committee
member, please see the disclosure under the heading "Item 10. Directors,
Executive Officers and Corporate Governance - Business Experience".

Mike McFarland, the sole member of our audit committee, is "financially
literate", as defined in National Instrument 52-110, as he has the industry
experience necessary to understand and analyze financial statements of our
company, as well as the understanding of internal controls and procedures
necessary for financial reporting.

The audit committee is responsible for review of both interim and annual
financial statements for our company. For the purposes of performing his duties,
the sole member of the audit committee has the right at all times, to inspect
all the books and financial records of our company and any subsidiaries and to
discuss with management and the external auditors of our company any accounts,
records and matters relating to the financial statements of our company. The
audit committee members meet periodically with management and annually with the
external auditors.

Since the commencement of our company's most recently completed financial year,
our company's board of directors has not failed to adopt a recommendation of the
audit committee to nominate or compensate an external auditor.

Since the commencement of our company's most recently completed financial year,
our company has not relied on the exemptions contained in sections 2.4 or 8 of
National Instrument 52-110. Section 2.4 (DE MINIMIS NON-AUDIT SERVICES) provides
an exemption from the requirement that the audit committee must pre-approve all
non-audit services to be provided by the auditor, where the total amount of fees
related to the non-audit services are not expected to exceed 5% of the total
fees payable to the auditor in the fiscal year in which the non-audit services
were provided. Section 8 (EXEMPTIONS) permits a company to apply to a securities
regulatory authority for an exemption from the requirements of National
Instrument 52-110 in whole or in part.

                                       38
<PAGE>
The audit committee has adopted specific policies and procedures for the
engagement of non-audit services as set out in the Audit Committee Charter of
our company. A copy of our company's Audit Committee Charter was filed as an
exhibit to our annual report on Form 10-K filed with the Securities and Exchange
Commission on December 19, 2008.

NATIONAL INSTRUMENT 58-101

We are a reporting issuer in the Province of British Columbia. National
Instrument 58-101 of the Canadian Securities Administrators requires our
company, as a venture issuer, to disclose annually in our annual report certain
information concerning corporate governance disclosure.

BOARD OF DIRECTORS

Our board of directors currently acts with one member consisting of Mike
McFarland. Mr. McFarland is not independent as that term is defined in National
Instrument 52-110 due to the fact that he is the sole executive officer of our
company.

Our board of directors facilitates its exercise of independent supervision over
management by endorsing the guidelines for responsibilities of the board as set
out by regulatory authorities on corporate governance in Canada and the United
States. Our board's primary responsibilities are to supervise the management of
our company, to establish an appropriate corporate governance system, and to set
a tone of high professional and ethical standards. The board is also responsible
for:

     *    selecting and assessing members of the Board;

     *    choosing, assessing and compensating the chief executive officer of
          our company, approving the compensation of all executive officers and
          ensuring that an orderly management succession plan exists;

     *    reviewing and approving our company's strategic plan, operating plan,
          capital budget and financial goals, and reviewing its performance
          against those plans;

     *    adopting a code of conduct and a disclosure policy for our company,
          and monitoring performance against those policies;

     *    ensuring the integrity of our company's internal control and
          management information systems;

     *    approving any major changes to our company's capital structure,
          including significant investments or financing arrangements; and

     *    reviewing and approving any other issues which, in the view of the
          board or management, may require board scrutiny.

DIRECTORSHIPS

The following directors are also directors of other reporting issuers (or the
equivalent in a foreign jurisdiction), as identified next to their name:

                           Reporting Issuers or Equivalent
Director                      in a Foreign Jurisdiction
--------                      -------------------------
Mike McFarland                         None

                                       39
<PAGE>
ORIENTATION AND CONTINUING EDUCATION

We have an informal process to orient and educate new recruits to the board
regarding their role of the board, our committees and our directors, as well as
the nature and operations of our business. This process provides for an
orientation with key members of the management staff, and further provides
access to materials necessary to inform them of the information required to
carry out their responsibilities as a board member. This information includes
the most recent board approved budget, the most recent annual report, the
audited financial statements and copies of the interim quarterly financial
statements.

The board does not provide continuing education for its directors. Each director
is responsible to maintain the skills and knowledge necessary to meet his or her
obligations as directors.

NOMINATION OF DIRECTORS

The board is responsible for identifying new director nominees. In identifying
candidates for membership on the board, the board takes into account all factors
it considers appropriate, which may include strength of character, mature
judgment, career specialization, relevant technical skills, diversity and the
extent to which the candidate would fill a present need on the board. As part of
the process, the board, together with management, is responsible for conducting
background searches, and is empowered to retain search firms to assist in the
nominations process. Once candidates have gone through a screening process and
met with a number of the existing directors, they are formally put forward as
nominees for approval by the board.

ASSESSMENTS

The board intends that individual director assessments be conducted by other
directors, taking into account each director's contributions at board meetings,
service on committees, experience base, and their general ability to contribute
to one or more of our company's major needs. However, due to our stage of
development and our need to deal with other urgent priorities, the board has not
yet implemented such a process of assessment.

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

AUDIT FEES

The aggregate fees billed for the two most recently completed fiscal periods
ended September 30, 2010 and September 30, 2009 for professional services
rendered by Dale Matheson Carr-Hilton Labonte LLP, Chartered Accountants for the
audit of our annual consolidated financial statements, quarterly reviews of our
interim consolidated financial statements and services normally provided by the
independent accountant in connection with statutory and regulatory filings or
engagements for these fiscal periods were as follows:

                                                  Year Ended        Year Ended
                                                 September 30,     September 30,
                                                     2010              2009
                                                   --------          --------
Audit Fees and Audit Related Fees                  $ 20,000          $ 30,000
Tax Fees                                              1,000            10,000
All Other Fees                                          Nil               Nil
                                                   --------          --------

Total                                              $ 21,000(1)       $ 40,000
                                                   ========          ========

----------
(1)  Audit fees for year ended September 30, 2010 have not been billed to us yet

In the above table, "audit fees" are fees billed by our company's external
auditor for services provided in auditing our company's annual financial
statements for the subject year. "Audit-related fees" are fees not included in
audit fees that are billed by the auditor for assurance and related services
that are reasonably related to the performance of the audit review of our
company's financial statements. "Tax fees" are fees billed by the auditor for

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professional services rendered for tax compliance, tax advice and tax planning.
"All other fees" are fees billed by the auditor for products and services not
included in the foregoing categories.

POLICY ON PRE-APPROVAL BY AUDIT COMMITTEE OF SERVICES PERFORMED BY INDEPENDENT
AUDITORS

The board of directors pre-approves all services provided by our independent
auditors. All of the above services and fees were reviewed and approved by the
board of directors either before or after the respective services were rendered.

The board of directors has considered the nature and amount of fees billed by
Dale Matheson Carr-Hilton Labonte LLP and believes that the provision of
services for activities unrelated to the audit is compatible with maintaining
Dale Matheson Carr-Hilton Labonte LLP.

                                     PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

Exhibit
Number                             Description
------                             -----------
(2)           PLAN OF PURCHASE, SALE, REORGANIZATION, ARRANGEMENT, LIQUIDATION
              OR SUCCESSION

2.1           Share Exchange Agreement dated February 3, 2006, among our
              company, Upstream Canada, the shareholders of Upstream Canada and
              Steve Bajic (incorporated by reference from our Current Report on
              Form 8-K filed on February 6, 2006).

2.2           Amended and Restated Share Exchange Agreement dated February 24,
              2006, among our company, Upstream Canada, the shareholders of
              Upstream Canada and Steve Bajic (incorporated by reference from
              our Current Report on Form 8-K filed on February 27, 2006).

(3)           ARTICLES OF INCORPORATION AND BY-LAWS

3.1           Articles of Incorporation (incorporated by reference from our
              Registration Statement on Form SB-2 filed on July 5, 2002).

3.2           Bylaws (incorporated by reference from our Registration Statement
              on Form SB-2 Filed on July 5, 2002).

3.3           Certificate of Amendment filed with the Nevada Secretary of State
              on March 8, 2005 (incorporated by reference from our Current
              Report on Form 8-K filed on March 10, 2005). 3.4 Certificate of
              Change filed with the Nevada Secretary of State on December 20,
              2005 (incorporated by reference from our Current Report on Form
              8-K filed on December 29, 2005).

3.5           Articles of Merger filed with the Nevada Secretary of State on
              February 6, 2006 (incorporated by reference from our Current
              Report on Form 8-K filed on February 9, 2006).

3.6           Certificate of Amendment filed with the Nevada Secretary of State
              on November 27, 2006 (incorporated by reference from our Current
              Report on Form 8-K filed on November 30, 2006).

(10)          MATERIAL CONTRACTS

10.1          2007 Stock Option Plan (incorporated by reference from our
              Registration Statement on Form SB-2 filed on October 1, 2007)

10.2          Amendment to Employment Agreement dated August 18, 2009 between
              our company and Dexster Smith (incorporated by reference from our
              Quarterly Report on Form 10-Q filed on August 31, 2009)

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<PAGE>
10.3          Amendment to Employment Agreement dated August 18, 2009 between
              our company and Joel Bellenson (incorporated by reference from our
              Quarterly Report on Form 10-Q filed on August 31, 2009)

10.4          Return to Treasury Agreement dated December 14, 2009 between our
              company and Joel Bellenson (incorporated by reference from our
              Current Report on Form 8-K filed on December 14, 2009)

10.5          Return to Treasury Agreement dated December 14, 2009 between our
              company and Dexster Smith (incorporated by reference from our
              Current Report on Form 8-K filed on December 14, 2009)

10.6          Asset Sale Agreement dated December 14, 2009 between Pacific
              Pharma Technologies Inc. and JTAT Consulting Inc. (incorporated by
              reference from our Current Report on Form 8-K filed on December
              14, 2009)

(31)          SECTION 302 CERTIFICATIONS

31.1*         Certification of Principal Executive Officer and Principal
              Financial Officer filed pursuant to Section 302 of the
              Sarbanes-Oxley Act of 2002.

(32)          SECTION 906 CERTIFICATIONS

32.1*         Certification of Principal Executive Officer pursuant to 18 U.S.C.
              Section 1350, as adopted pursuant to Section 906 of the
              Sarbanes-Oxley Act of 2002.

(99)          ADDITIONAL EXHIBITS

99.1          Compensation Committee Charter (incorporated by reference from our
              Annual Report on Form 10-K filed on December 19, 2008)

99.2          Audit Committee Charter (incorporated by reference from our Annual
              Report on Form 10-K filed on December 19, 2008)

----------
*    Filed herewith

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<PAGE>
                                   SIGNATURES

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

UPSTREAM BIOSCIENCES INC.


By: Mike McFarland
    ----------------------------------------
    Mike McFarland
    Chief Executive Officer, Chief Financial
    Officer, President, Secretary, Treasurer
    and Director (Principal Executive
    Officer, Principal Financial Officer and
    Principal Accounting Officer)
Date: September 30, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.


By: Mike McFarland
    ----------------------------------------
    Mike McFarland
    Chief Executive Officer, Chief Financial
    Officer, President, Secretary, Treasurer
    and Director (Principal Executive
    Officer, Principal Financial Officer and
    Principal Accounting Officer)
Date: September 30, 2011

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