| GENELINK, INC.                                          |
|---------------------------------------------------------|
| (Exact      name of registrant specified in itscharter) |

| PENNSYLVANIA                                                            |   | 23-2795613                                    |
|-------------------------------------------------------------------------|--------|-----------------------------------------------|
| (State      or other jurisdiction ofincorporation      or organization) |   | (I.R.S.      EmployerIdentification      No.) |
|                                                                    |   |                                          |
| 317      Wekiva Springs Road, #200Longwood,      Florida                |   | 32779(Zip      Code)                          |
| (Address      of principal executive offices)                           |   |                                          |

|                                                         | (800)      558-4363 |   |
|--------------------------------------------------------------|---------------------|--------|
| Registrant’s      telephone number, including areacode |

| Large      accelerated filer  ̈                                                                   | Accelerated      filer  ̈    |
|-------------------------------------------------------------------------------------------------------|----------------------------------|
|                                                                                                  |                             |
| Non-accelerated      filer    ̈      (Do not check if a smaller reporting company) | Smaller      reporting company x |

| Number      of Shares of Common StockOutstanding      on November 10, 2010 | 139,783,515 |
|----------------------------------------------------------------------------|-------------|

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| PART      I. | FINANCIAL      INFORMATION                                                                                                     |   |
|--------------|--------------------------------------------------------------------------------------------------------------------------------|--------|
|         |                                                                                                                           |   |
|         |                                                                                                                      | Page   |
| ITEM      1  | Financial      Statements.                                                                                                     |   |
|         |                                                                                                                           |   |
|         | Consolidated      Balance Sheets at September 30, 2010 (unaudited) and December 31,      2009                                  | 3      |
|         |                                                                                                                           |   |
|         | Consolidated      Statements of Income (unaudited) for the three months and nine months      ended September 30, 2010 and 2009 | 4      |
|         |                                                                                                                           |   |
|         | Consolidated      Statements of Cash Flows (unaudited) for the nine months ended September      30, 2010 and 2009              | 5-6    |
|         |                                                                                                                           |   |
|         | Notes      to Consolidated Financial Statements                                                                                | 7-10   |

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|                                                                                                                                                                                                                                                                                                                                                                                  |   | (Unaudited)September 30, 2010 |                                                     |   | December 31, 2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|----------------------------------------------------------|--------|------------------------|--------|
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                |   |                               |                                                     |   |                   |   |
| Current      Assets                                                                                                                                                                                                                                                                                                                                                                   |   |                               |                                                     |   |                   |   |
| Cash      and cash equivalents                                                                                                                                                                                                                                                                                                                                                        |   | $                                  | 241,235                                                  |   |                   | $      | 196,857 |   |
| Accounts      receivable                                                                                                                                                                                                                                                                                                                                                              |   |                               | 364,971                                                  |   |                   |   | 465,780 |   |
| Inventory                                                                                                                                                                                                                                                                                                                                                                             |   |                               | 396,312                                                  |   |                   |   | 494,737 |   |
| Prepaid      expenses                                                                                                                                                                                                                                                                                                                                                                 |   |                               | 224,120                                                  |   |                   |   | 141,397 |   |
| Total      current assets                                                                                                                                                                                                                                                                                                                                                             |   |                               | 1,226,638                                                |   |                   |   | 1,298,771 |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |                               |                                                     |   |                   |   |   |   |
| Property      and equipment                                                                                                                                                                                                                                                                                                                                                           |   |                               | 231,498                                                  |   |                   |   | 302,887 |   |
| Other      assets                                                                                                                                                                                                                                                                                                                                                                     |   |                               | 278,179                                                  |   |                   |   | 279,139 |   |
| Total      assets                                                                                                                                                                                                                                                                                                                                                                     |   | $                                  | 1,736,315                                                |   |                   | $      | 1,880,797 |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |                               |                                                     |   |                   |   |   |   |
| LIABILITIES                                                                                                                                                                                                                                                                                                                                                                           |   |                               |                                                     |   |                   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |                               |                                                     |   |                   |   |   |   |
| Current      maturity of long-term debt                                                                                                                                                                                                                                                                                                                                               |   | $                                  | 47,175                                                   |   |                   | $      | 36,079 |   |
| Accounts      payable and accrued expenses                                                                                                                                                                                                                                                                                                                                            |   |                               | 1,158,445                                                |   |                   |   | 1,189,709 |   |
| Accrued      compensation                                                                                                                                                                                                                                                                                                                                                             |   |                               | 248,750                                                  |   |                   |   | 206,272 |   |
| Deferred      revenue                                                                                                                                                                                                                                                                                                                                                                 |   |                               | 303,044                                                  |   |                   |   | 277,132 |   |
| Loans      payable                                                                                                                                                                                                                                                                                                                                                                    |   |                               | 60,000                                                   |   |                   |   | 18,000 |   |
| Total      current liabilities                                                                                                                                                                                                                                                                                                                                                        |   |                               | 1,817,414                                                |   |                   |   | 1,727,192 |   |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |                               |                                                     |   |                   |   |   |   |
| Convertible      promissory notes payable, net of issuance of debt and stock conversion      discounts                                                                                                                                                                                                                                                                                |   |                               | 937,070                                                  |   |                   |   | 893,395 |   |
| Total      liabilities                                                                                                                                                                                                                                                                                                                                                                |   | $                                  | 2,754,484                                                |   |                   | $      | 2,620,587 |   |
| SHAREHOLDERS’      EQUITY (DEFICIENCY)                                                                                                                                                                                                                                                                                                                                          |   |                               |                                                     |   |                   |   |   |   |
| Common      stock, $.01 par value, 250,000,000 shares authorized as of September 30,      2010 and December 31, 2009; 144,142,684 shares and 118,861,347 shares      issued as of September 30, 2010 and December 31, 2009 respectively;      139,783,515  shares and 114,407,132 shares outstanding as of      September 30, 2010 and December 31, 2009, respectively |   |                               |                  1,440,732 |   |                   |   | 1,188,617 |   |
| Additional      paid in capital                                                                                                                                                                                                                                                                                                                                                       |   |                               | 14,356,893                                               |   |                   |   | 12,969,561 |   |
| Stock      warrants                                                                                                                                                                                                                                                                                                                                                                   |   |                               | 3,725,577                                                |   |                   |   | 3,656,227 |   |
| Accumulated      deficit                                                                                                                                                                                                                                                                                                                                                              |   |                               | (19,989,136                                              | )      |                   |   | (18,001,960 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                  |   |                               |                                                     |   |                   |   |   |   |
| Treasury      stock, 4,359,169 shares as of September 30, 2010 and December 31, 2009, at      cost                                                                                                                                                                                                                                                                                    |   |                               | (552,235                                                 | )      |                   |   | (552,235 | ) |
| Total      shareholders’ equity (deficiency)                                                                                                                                                                                                                                                                                                                                    |   |                               | (1,018,169                                               | )      |                   |   | (739,790 | ) |
| Total      liabilities and shareholders’ equity (deficiency)                                                                                                                                                                                                                                                                                                                    |   | $                                  | 1,736,315                                                |   |                   | $      | 1,880,797 |   |

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|                                                                     |   | For TheThree MonthsEndedSeptember 30,2010 |        |   | For TheThree MonthsEndedSeptember 30,2009 |   |        | For TheNine MonthsEndedSeptember 30,2010 |   |   | For TheNine MonthsEndedSeptember 30, 2009 |   |
|--------------------------------------------------------------------------|--------|----------------------------------------------------------|-------------|--------|----------------------------------------------------------|--------|-------------|---------------------------------------------------------|--------|--------|---------------------------------------------------------------|--------|
|                                                                     |   |                                                     |        |   |                                                     |   |        |                                                    |   |   |                                                          |   |   |   |   |   |
| REVENUE                                                                  |   | $                                                        | 1,877,136   |   |                                                     | $      | 2,134,504   |                                                    |   | $      | 6,117,313                                                     |   |   | $ | 6,219,719 |   |
| COST      OF GOODS SOLD                                                  |   |                                                     | 623,757     |   |                                                     |   | 869,328     |                                                    |   |   | 2,197,478                                                     |   |   |   | 2,731,635 |   |
| GROSS      PROFIT                                                        |   |                                                     | 1,253,379   |   |                                                     |   | 1,265,176   |                                                    |   |   | 3,919,835                                                     |   |   |   | 3,488,084 |   |
|                                                                     |   |                                                     |        |   |                                                     |   |        |                                                    |   |   |                                                          |   |   |   |   |   |
| EXPENSES                                                                 |   |                                                     |        |   |                                                     |   |        |                                                    |   |   |                                                          |   |   |   |   |   |
| Selling,      general and administrative                                 |   |                                                     | 2,010,384   |   |                                                     |   | 1,907,783   |                                                    |   |   | 5,636,855                                                     |   |   |   | 5,397,609 |   |
| Research      and development                                            |   |                                                     | 65,965      |   |                                                     |   | 68,976      |                                                    |   |   | 44,950                                                        |   |   |   | 26,705 |   |
|                                                                     |   |                                                     | 2,076,349   |   |                                                     |   | 1,976,759   |                                                    |   |   | 5,681,805                                                     |   |   |   | 5,424,314 |   |
|                                                                     |   |                                                     |        |   |                                                     |   |        |                                                    |   |   |                                                          |   |   |   |   |   |
| OPERATING      LOSS                                                      |   |                                                     | (822,970    | )      |                                                     |   | (711,583    | )                                                       |   |   | (1,761,970                                                    | )      |   |   | (1,936,230 | ) |
|                                                                     |   |                                                     |        |   |                                                     |   |        |                                                    |   |   |                                                          |   |   |   |   |   |
| OTHER      INCOME (EXPENSES)                                             |   |                                                     |        |   |                                                     |   |        |                                                    |   |   |                                                          |   |   |   |   |   |
| Amortization      and depreciation                                       |   |                                                     | 38,179      |   |                                                     |   | 33,411      |                                                    |   |   | 114,641                                                       |   |   |   | 89,359 |   |
| Interest      income (expense)                                           |   |                                                     | 36,032      |   |                                                     |   | 38,800      |                                                    |   |   | 110,565                                                       |   |   |   | 89,071 |   |
|                                                                     |   |                                                     | 74,211      |   |                                                     |   | 72,211      |                                                    |   |   | 225,206                                                       |   |   |   | 178,430 |   |
| NET      LOSS BEFORE PROVISION FOR INCOME TAXES                          |   |                                                     | (897,181    | )      |                                                     |   | (783,794    | )                                                       |   |   | (1,987,176                                                    | )      |   |   | (2,114,660 | ) |
|                                                                     |   |                                                     |        |   |                                                     |   |        |                                                    |   |   |                                                          |   |   |   |   |   |
| PROVISION      FOR INCOME TAXES                                          |   |                                                     | 0           |   |                                                     |   | 0           |                                                    |   |   | 0                                                             |   |   |   | 0 |   |
|                                                                     |   |                                                     |        |   |                                                     |   |        |                                                    |   |   |                                                          |   |   |   |   |   |
| NET      LOSS                                                            |   | $                                                        | (897,181    | )      |                                                     | $      | (783,794    | )                                                       |   | $      | (1,987,176                                                    | )      |   | $ | (2,114,660 | ) |
|                                                                     |   |                                                     |        |   |                                                     |   |        |                                                    |   |   |                                                          |   |   |   |   |   |
| NET      LOSS PER SHARE, BASIC & DILUTED                             |   | $                                                        | (0.010      | )      |                                                     | $      | (0.006      | )                                                       |   | $      | (0.02                                                         | )      |   | $ | (0.02 | ) |
|                                                                     |   |                                                     |        |   |                                                     |   |        |                                                    |   |   |                                                          |   |   |   |   |   |
| Weighted      average common shares and diluted potential common shares. |   |                                                     | 141,899,296 |   |                                                     |   | 113,575,791 |                                                    |   |   | 127,842,623                                                   |   |   |   | 108,786,513 |   |

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| Nine months ended September    30                                                  |   | 2010   |       |   | 2009   |   |
|------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                               |   |   |       |   |   |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                          |   |   |       |   |   |   |
| Net      loss                                                                      |   | $      | (1,987,176 | )      |   | $      | (2,114,660 | ) |
| Adjustments      to reconcile net loss to net cash used by operating    activities |   |   |       |   |   |   |   |   |
| Depreciation      and amortization                                                 |   |   | 114,641    |   |   |   | 89,359 |   |
| Amortization      of discounts on loans payable                                    |   |   | 43,674     |   |   |   | 34,048 |   |
| Common      stock issued for services                                              |   |   | 150,144    |   |   |   | 15,000 |   |
| Fair      value of options granted for services                                    |   |   | 405,742    |   |   |   | 277,117 |   |
| Changes      in operating assets and liabilities                                   |   |   |       |   |   |   |   |   |
| Accounts      receivable                                                           |   |   | 100,809    |   |   |   | 290,828 |   |
| Inventory                                                                          |   |   | 98,425     |   |   |   | 223,240 |   |
| Prepaid      expenses                                                              |   |   | (82,723    | )      |   |   | (107,401 | ) |
| Deposits                                                                           |   |   | 0          |   |   |   | 0 |   |
| Other      assets                                                                  |   |   | (18,750    | )      |   |   | 16,408 |   |
| Accounts      payable and accrued expenses                                         |   |   | (31,264    | )      |   |   | (876,922 | ) |
| Accrued      compensation                                                          |   |   | 42,478     |   |   |   | (14,284 | ) |
| Deferred      revenue                                                              |   |   | 25,912     |   |   |   | 235,558 |   |
|                                                                               |   |   |       |   |   |   |   |   |
| Net      cash used in operating activities                                         |   |   | (1,138,088 | )      |   |   | (1,931,709 | ) |
|                                                                               |   |   |       |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES                                          |   |   |       |   |   |   |   |   |
| Capital      expenditures                                                          |   |   | (23,542    | )      |   |   | (112,284 | ) |
| Patent      acquisition costs                                                      |   |   | 0          |   |   |   | (550 | ) |
|                                                                               |   |   |       |   |   |   |   |   |
| Net      cash used in investing activities                                         |   |   | (23,542    | )      |   |   | (112,834 | ) |
|                                                                               |   |   |       |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                          |   |   |       |   |   |   |   |   |
|                                                                               |   |   |       |   |   |   |   |   |
| Proceeds      from loans and notes payable                                         |   |   | 124,834    |   |   |   | 1,250,000 |   |
| Proceeds      from issuance of common stock and warrants, net                      |   |   | 1,186,500  |   |   |   | 1,014,000 |   |
| Principal      payments on capital lease obligation                                |   |   | 0          |   |   |   | (36,177 | ) |
| Principal      payments on note payable                                            |   |   | (71,738    | )      |   |   | (24,092 | ) |
| Commissions      paid for fundraising costs                                        |   |   | (33,588    | )      |   |   | (168,480 | ) |
|                                                                               |   |   |       |   |   |   |   |   |
| Net      cash provided by financing activities                                     |   |   | 1,206,008  |   |   |   | 2,035,251 |   |

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| Nine months ended September    30                   |   | 2010   |    |   | 2009   |   |
|-----------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                |   |   |    |   |   |   |
| NET      DECREASE IN CASH AND CASH EQUIVALENTS      |   |   | 44,378  |   |   |   | (9,292 | ) |
|                                                |   |   |    |   |   |   |   |   |
| Cash      and cash equivalents, beginning of period |   |   | 196,857 |   |   |   | 435,197 |   |
|                                                |   |   |    |   |   |   |   |   |
| Cash      and cash equivalents, end of period       |   | $      | 241,235 |   |   | $      | 425,905 |   |
|                                                |   |   |    |   |   |   |   |   |
| SUPPLEMENTAL      CASH FLOW INFORMATION             |   |   |    |   |   |   |   |   |
| Cash      paid for interest                         |   | $      | 5,456   |   |   | $      | 5,926 |   |
|                                                |   |   |    |   |   |   |   |   |
| Non-cash      investing and financing transactions: |   |   |    |   |   |   |   |   |
| Stock      warrants granted for services            |   | $      | 405,742 |   |   | $      | 51,500 |   |
| Stock      warrants granted for fundraising         |   | $      | 140,485 |   |   | $      | 223,653 |   |
| Common      stock issued for services               |   | $      | 150,144 |   |   | $      | 15,000 |   |

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| 1      – DESCRIPTION OF      ORGANIZATION |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                            | OrganizationGeneLink,      Inc. (the Company) and its subsidiaries, GeneWize Life Sciences, Inc.      Dermagenetics, Inc. and Helix Health Solutions LLC, operate in      Florida.  The Company was organized under the laws of the      Commonwealth of Pennsylvania and Dermagenetics, Inc. GeneWize Life      Sciences, Inc. were organized under the laws of the State of Delaware and      Helix Health Solutions LLC was organized under the laws of the State of      Florida.  The Company is the successor to a Delaware corporation      organized under the same name on September 21, 1994.  The      Company's offices are located in Longwood, Florida.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                            | The      Company’s scientific foundation developed as a result of discoveries in      the field of human molecular genetics. Research supported by the National      Institute of Health, including the Human Genome Project, as well as      academic, commercial research and research by the scientists on GeneLink’s      Scientific Advisory Board, enabled the identification of an increasing      number of connections between genes, SNP’s (single-nucleotide      polymorphisms) and the specific function of enzymes and receptors relating      to nutrition and skin health. The      Company has developed proprietary SNP-based genetic profiles (named      GeneLink Nutragenetic Profile TM and Dermagenetics®      profiles).  These profiles provide a means of predicting an      individual's inherent genetic capacity to combat such conditions as      oxidative stress and other important areas of physiologic      health.  The profiles, for example, can measure a person's      potential to efficiently control oxygen free radical damage, eliminate      hydrogen peroxide, protect and repair oxidized phospholipids and destroy      harmful environmental compounds.  The Company's profile      assessment enables nutritional and skin care companies and health care      professionals to recommend a specific and targeted regime of antioxidant      vitamins, nutrients or skin care formulations that have been specifically      designed to compensate for predicted deficiencies and to help provide      individuals the best of health and appearance. The      Company’s laboratory assessments are performed under contract in leading      genomics laboratories whose credentials include College of American      Pathologists “CAP” accreditation, CLIA certification, and State of      California licensure and have been independently validated by the      laboratories.  |

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|   | The      Company has developed and received a patent on a DNA Collection Kit ® for      the collection of DNA specimens of clients.  The kit is      classified as a non-medical device. GeneLink's      patented and patent pending assessments, such as GeneLink Healthy Aging      AssessmentTM      and Oxidative Stress, form the foundation of its product      offerings.  Genetic test results drive a proprietary analysis      which in turn generates a nutritional report linked to an individual      ingredient titration matrix.  In order help compensate for any      anticipated need for additional supplementation, "genetically-selected      ingredients" and nutrients (SNPboostsTM,      or "snip boosts") are titrated and blended into the individual nutritional      formulation.  Thus, each customer's product is individually      customized and manufactured, just for that customer. The      nutritional and skin solutions developed by the Company are the first      personalized (mass-customized) nutritional and skincare products      manufactured based on genetic testing that measures single nucleotide      polymorphisms ("SNPs"; pronounced "snips") in DNA.                                                                                                                                                                                                                                                                                                       |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | In      December 2007, the Company formed a new wholly owned subsidiary, GeneWize      Life Sciences, Inc., to operate its direct sales      efforts.  GeneWize is the first direct selling company to focus      exclusively on marketing nutritional supplements and skin care products      specifically tailored to an individual's genetic makeup. GeneWize's      product offering in 2009 and first two quarters of 2010 consisted of its      foundational Life Map NutritionTM      System. GeneWize,      as a direct selling company, also offers customers the opportunity to      participate in selling and distributing the products to others and receive      compensation for doing so.  These independent marketing      affiliates must agree to comply with the Company's policies related to      sales and distribution of product, particularly as it relates to product      claims or, in the case of recruiting other affiliates, income      potential.  In return for creating sales and complying with      appropriate policies and regulations, GeneWize provides commissions and      incentives.  It also provides internet ordering sites, business      management tools, marketing materials, training and events in support of      these affiliates. Helix      Health Solutions LLC was created in June 2010 to facilitate sales receipt      for the Company of a private label joint marketing agreement signed in      March 2010 with a healthcare-related marketing company. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

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| 2      – BASIS OF      PRESENTATION                                                     | The      accompanying unaudited consolidated financial statements have been      prepared by the Company in accordance with the instructions to Form 10-Q      and Article 10 of Regulation S-X relating to interim financial statements.      Accordingly, they do not include all of the information and footnotes      required by generally accepted accounting principles for complete      financial statements and should be read in conjunction with the      consolidated financial statements and notes thereto included in the Annual      Report on Form 10-K of GeneLink, Inc. and Subsidiaries for the year ended      December 31, 2009. In      the opinion of management, all adjustments (consisting of normal recurring      accruals) necessary to present fairly the information set forth in the      accompanying consolidated financial statements have been included. The      results reported in these consolidated financial statements for the      nine-month period ended September 30, 2010 should not be regarded as      necessarily indicative of results that may be expected for the year ended      December 31, 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| 3–      STOCKHOLDERS' EQUITY TRANSACTIONS AND CONVERTIBLE SECURED PROMISSORY      NOTES | During      the three months ended March 31, 2010, the Company sold 2,450,000 shares      of restricted Common Stock of the Company and issued 1,225,000 warrants to      purchase Common Stock at an exercise price of $.10 per share, at a      purchase price of $0.10 per unit (each unit consisting of one share of      Common Stock and 1⁄2 of a warrant) pursuant to a continued Confidential      Private Offering Memorandum, and received an aggregate gross amount of      $245,000. During the three months ended June 30, 2010, the terms of the      private offering were revised to a sale of shares at $0.05 per share      without warrants, and as a result 1,125,000 of the warrants were canceled      and an additional 1,125,000 shares of restricted Common Stock were issued      in their place. In      connection with the above, the Company paid cash commissions of $11,600      and granted 145,000 and 72,000 warrants to acquire shares of Common Stock      at exercise prices of $0.10 per share, respectively, to First Equity      Capital Securities, Inc., which has been recorded as a reduction of the      proceeds in accordance with AICPA Technical Practice Aid 4110.01. Kenneth      R. Levine, a holder of more than five percent of the equity securities of      the Company, is an officer and owner of First Equity Capital Securities,      Inc. During the three months ended June 30, 2010, as a result of the      Company revising the terms of its private placement offering these      warrants were canceled and 250,000 warrants at an exercise price of $.05      were issued in their place. During      the nine months ended September 30, 2010, the Company sold 18,830,000      shares of restricted Common Stock of the Company pursuant to the revised      terms of the Confidential Private Offering Memorandum and received an      aggregate gross amount of $941,500. In connection, the Company incurred      cash commissions of $44,520 and granted 1,843,000 warrants to acquire      shares of Common Stock at an exercise price of $.05 to First Equity      Capital Securities, Inc., which has been recorded as a reduction of the      proceeds in accordance with AICPA Technical Practice Aid      4110.01. |

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|   | During      the nine months ended September 30, 2010, the Company granted 2,131,000      options to acquire shares of Common Stock at exercise prices ranging from      $.08 and $.13 for services provided.  Compensation expense of      $50,125 was recorded for the 462,500 of those options that      vested. During      the nine months ended September 30, 2010, the Company issued 1,681,490      shares of common stock for services performed and recorded $150,144 of      compensation expense in connection with the issuance. On      July 7, 2010, the Company granted five executives options to acquire an      aggregate of 3,100,000 shares of Common Stock at an exercise price of $.08      vesting in four equal annual installments commencing July 7,      2010. On      July 7, 2010, the Company granted to each member of its scientific      advisory board options to acquire an aggregate of 1,900,000 shares of      Common Stock at an exercise price of $.08, vesting in four equal annual      installments commencing July 7, 2010. On      July 7, 2010, the Company granted to each member of its Board of Directors      warrants to acquire an aggregate of 1,000,000 shares of Common Stock at an      exercise price of $.08, vesting in four equal annual installments      commencing July 7, 2010. On      July 7, 2010, the Company granted to an owner of more than 5% of the      equity securities of the Company options to acquire 250,000 shares of      Common Stock at an exercise price of $.08 for consulting services, which      options vest in four equal annual installments commencing July 7,      2010. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM      2. | MANAGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|--------------|-------------------------------------------------------------------------------------------------------|

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| Item 3 | QUANTITATIVE      AND QUALITATIVE DISCLOSURES ABOUT MARKET  RISK |
|--------|------------------------------------------------------------------|

| Item 4T. | CONTROLS AND      PROCEDURES |
|----------|------------------------------|

| PART      II. | OTHER      INFORMATION |
|---------------|------------------------|

| Item 1 | LEGAL      PROCEEDINGS |
|--------|------------------------|

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| Item 2 | UNREGISTERED      SALES OF EQUITY SECURITIES AND USE OF  PROCEEDS |
|--------|-------------------------------------------------------------------|

| Date      |   | $ of Investment |    |   | Number of Shares Issued |   |      | Number ofInvestors |   |
|-----------|--------|-----------------|---------|--------|-------------------------|--------|-----------|--------------------|--------|
| 7/1/2010  |   | $               | 10,000  |   |                    |   | 200,000   |               |   |   | 1 |   |
| 7/19/2010 |   |            | 10,000  |   |                    |   | 200,000   |               |   |   | 1 |   |
| 7/22/2010 |   |            | 50,000  |   |                    |   | 1,000,000 |               |   |   | 1 |   |
| 7/23/2010 |   |            | 5,000   |   |                    |   | 100,000   |               |   |   | 1 |   |
| 8/13/2010 |   |            | 55,000  |   |                    |   | 1,100,000 |               |   |   | 2 |   |
| 9/1/2010  |   |            | 100,000 |   |                    |   | 2,000,000 |               |   |   | 4 |   |
|      |   |            |    |   |                    |   |      |               |   |   |   |   |
| Total     |   | $               | 230,000 |   |                    |   | 4,600,000 |               |   |   | 10 |   |

| Item 3 | DEFAULTS UPON      SENIOR SECURITIES |
|--------|--------------------------------------|

| Item 4 | SUBMISSION OF      MATTERS TO A VOTE OF SECURITIESHOLDERS |
|--------|-----------------------------------------------------------|

| Item 5 | OTHER      INFORMATION |
|--------|------------------------|

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| Exhibit No. |   | Description                                                                                                                                 |
|------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                        |
| 31.1             |   | Certificate of the Chief Executive      Officer and Chief Financial Officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002. |
| 32.1             |   | Certification pursuant to 18      U.S.C. Section 1350, as adopted pursuant to Section 906 of the      Sarbanes-Oxley Act of2002.            |

| Date: November 12,      2010 | By:    | s/ Gary J.    Beeman                                                         |
|------------------------------|--------|------------------------------------------------------------------------------|
|                         |   | Gary J. Beeman, Chief Executive      Officerand Principal Financial  Officer |

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