UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549
                                   FORM 10-QSB



(Mark One)

/X/    QUARTERLY REPORT PURSUANT TO 13 OR 15(d)
       OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2001

/  /   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
       OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to _______________

Commission File Number 000-28459

                      Advanced Plant Pharmaceuticals, Inc.
--------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

           Delaware                                       59-2762023
-------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

                  43 West 33rd Street, New York, New York 10001
--------------------------------------------------------------------------------
               (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code          212-695-3334
                                                     ---------------------------

Indicate by check mark whether the Registrant (1) has 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 X  NO   .
                                      ---   ---

Indicate the number of shares  outstanding  in each of the  issuer's  classes of
common stock, as of the latest practicable date.

            Class
-------------------------------            -------------------------------

Common shares, $.0007 par value                         153,247,198
                                           -------------------------------

<PAGE>

                                Table of Contents
                                -----------------
                                                                           Page
                                                                           ----



Consolidated Balance Sheet (unaudited) . . . . . . . . . . . . . . . .      1

Consolidated Statements of Operations (unaudited)  . . . . . . . . . .      2

Consolidated Statements of Cash Flows (unaudited). . . . . . . . . . .      3

Notes to the Financial  Statements . . . . . . . . . . . . . . . . . .    4 - 11
 . . . .



<PAGE>

                       Advanced Plant Pharmaceuticals, Inc
                       -----------------------------------
                                  Balance Sheet
                                  -------------
                               As of June 30, 2001
                               -------------------
                                   (Unaudited)
                                   -----------



                                     ASSETS

Current assets:

  Cash and cash equivalents                                  $      --
  Accounts receivable                                              6,459
  Inventory                                                       77,355
                                                             -----------
     Total current assets                                         83,814
                                                             -----------

     Intangible Assets (Net of Accumulated
            Amortization of $125,994)                          2,393,886
     Other assets                                                  8,817
                                                             -----------
                                                               2,402,703
                                                             -----------
     Total other assets                                      $ 4,889,220
                                                             ===========


                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:

  Accounts Payable                                           $   220,757
  Accrued expenses payable                                     2,492,645
  Loans payable                                                  686,895
  Due to distributor                                             103,500
                                                             -----------
     Total current liabilities                                 3,503,797
                                                             -----------


Shareholders' Equity:

  Common stock, $.0007 par value, 250,000,000
   shares authorized and 153,247,198 shares issued               107,274
  Capital in excess of par value                               6,776,385
  Accumulated deficit                                         (7,900,939)
                                                             -----------
     Total shareholders' equity                               (1,017,280)
                                                             -----------
                                                             $ 2,486,517
                                                             ===========



                 See accompanying notes to financial statements.
                                        1
<PAGE>
<TABLE>
<CAPTION>

                      Advanced Plant Pharmaceuticals, Inc.
                      ------------------------------------
                            Statements of Operations
                            ------------------------
                                   (Unaudited)
                                   -----------

                                                  Three Months Ended             Six Months Ended
                                                      June 30,                      June 30,
                                                 2001           2000           2001           2000
                                             -----------    -----------    -----------    -----------
<S>                                          <C>            <C>            <C>            <C>

Net Sales                                    $    11,130    $     6,583    $    17,240    $     9,061

Cost of goods sold                                10,651         13,297         13,547         45,694

                                             -----------    -----------    -----------    -----------
    Gross profit                                     479         (6,714)         3,693        (36,633)
                                             -----------    -----------    -----------    -----------

Operating expenses:

  Research and development                           750         48,500          1,500         49,250
  General and administrative                     200,588        343,829        418,182      1,352,073

                                             -----------    -----------    -----------    -----------
    Total operating expenses                     201,338        392,329        419,682      1,401,323
                                             -----------    -----------    -----------    -----------

      Operating loss                            (200,859)      (399,043)      (415,989)    (1,437,956)

Other expense (income)                              --             --              655           --

                                             -----------    -----------    -----------    -----------
    Loss before provision for income taxes      (200,859)      (399,043)      (416,644)    (1,437,956)

Provision for income taxes                          --             --             --             --

                                             -----------    -----------    -----------    -----------
    Net loss                                 $  (200,859)   $  (399,043)   $  (416,644)   $(1,437,956)
                                             ===========    ===========    ===========    ===========


Loss per common share                        $     (0.00)   $     (0.00)   $     (0.00)   $     (0.01)
                                             ===========    ===========    ===========    ===========

</TABLE>



                 See accompanying notes to financial statements.
                                       2
<PAGE>

                      Advanced Plant Pharmaceuticals, Inc.
                      ------------------------------------
                            Statements of Cash Flows
                            ------------------------
                 For the six months ended June 30, 2001 and 2000
                 -----------------------------------------------
                                   (Unaudited)
                                   -----------


                                                       2001           2000
                                                   -----------    -----------


Cash Flows from Operating Activities:
  Net Loss from operations                         $  (416,644)   $(1,437,956)
  Adjustments to reconcile net loss from
   operations to net cash used by operating
   activities:
     Depreciation and amortization expense              84,480            443
     Services paid with common stock                   280,121        759,750
     Increase in accounts receivable                    (6,459)          --
     Increase in Inventory                             (77,355)          --
     Increase in accounts payable                       50,369         43,783
     (Decrease) increase in accrued expenses           (19,912)       105,263
                                                   -----------    -----------
     Net cash used by operations                      (105,400)      (528,717)
                                                   -----------    -----------


Cash Flows from Investing Activities:
  Purchase of computer equipment                          --           (1,000)
                                                   -----------    -----------
     Net cash used by investing activities                --           (1,000)
                                                   -----------    -----------


Cash Flows from Financing Activities:
  Proceeds from short-term loans payable               105,900        542,000
  Payments on short-term loans payable                    (500)       (25,009)
                                                   -----------    -----------
     Net cash provided by financing activities         105,400        516,991
                                                   -----------    -----------

Net (decrease) in Cash and cash equivalents               --          (12,726)

Cash and cash equivalents at beginning of period          --           12,726
                                                   -----------    -----------
Cash and cash equivalents at end of period         $      --      $      --
                                                   ===========    ===========


Supplemental Cash Flow Information:
  Cash Paid During the Period for:
     Interest                                             --             --
                                                   ===========    ===========
     Income Taxes                                         --             --
                                                   ===========    ===========

  Information about Noncash Activities:
     Common stock issued to satisfy loans          $      --      $      --
                                                   ===========    ===========
     Common stock issued for services              $   280,121    $   759,750
                                                   ===========    ===========



                 See accompanying notes to financial statements.
                                        3
<PAGE>

                      ADVANCED PLANT PHARMACEUTICALS, INC.
                      ------------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                  JUNE 30, 2001
                                  -------------
                                   (UNAUDITED)
                                   -----------


NOTE 1          Basis of Presentation
                ---------------------

         The  accompanying  unaudited  financial  statements  of Advanced  Plant
         Pharmaceuticals,  Inc.  ("APPI" or the  "Company")  as of June 30, 2001
         have been prepared in accordance  with  generally  accepted  accounting
         principles for interim  information.  Accordingly,  certain information
         and footnote  disclosures  required under generally accepted accounting
         principles  have been  condensed  or omitted  pursuant to the rules and
         regulations of the Securities and Exchange  Commission.  In the opinion
         of  management,  all  adjustments  of  a  recurring  nature  considered
         necessary  for a fair  presentation  of the  results  for  the  interim
         periods  presented  have been included.  Operating  results for the six
         months  ended  June 30,  2001  are not  necessarily  indicative  of the
         results that may be expected for the entire year or any other period.

         These  financial  statements  should  be read in  conjunction  with the
         audited financial statements for the year ended December 31, 2000.

NOTE 2          Nature of Operations
                --------------------

         APPI  focuses on the research and  development  of plant based  dietary
         supplements.  The Company owns the rights to a process,  which utilizes
         whole  plants to  manufacture  all  natural  dietary  supplements.  The
         Company  intends to use this process to  manufacture  products  that it
         hopes  to  distribute  worldwide  through  various  sales  distribution
         contracts.

         The Company expects, in the near term, to finance these efforts through
         the sale of its  common  stock  until  such  time,  if  ever,  that the
         operations achieve a positive cash flow. There is no guarantee that the
         Company will accomplish  this goal. See Note 8, "Financial  Results and
         Liquidity."

NOTE 3          GOING CONCERN
                -------------

         Management  believes that it can continue to obtain additional capital.
         However, if additional financing is not obtained,  the Company might be
         forced to cease operations.

         Since its inception,  the Company has had significant  operating losses
         and working capital  deficits.  The Company's  continued  existence has
         been  dependant on cash  proceeds  received from the sale of its common
         stock and the  willingness  of vendors to accept  stock in lieu of cash
         payments for their services.  Employees have also accepted deferrals of
         wage  payments.  The Company  hopes to reverse this trend by generating
         cash  inflows  through the sale of new  products.  To  accomplish  this
         objective,  the Company will require working capital to satisfy current
         operating  expenses and to produce  inventory until such time, if ever,
         that the revenue  cycle begins  generating  cash.  The  Company's  past
         attempts  to  establish  a market  for their  products  has so far been
         unsuccessful and resulted in minimal sales.  There is no assurance that
         future efforts will result in a more favorable outcome.



                                        4
<PAGE>

                      ADVANCED PLANT PHARMACEUTICALS, INC.
                      ------------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                  JUNE 30, 2001
                                  -------------
                                   (UNAUDITED)
                                   -----------


NOTE 4          Summary of Significant Accounting Policies
                ------------------------------------------

         Cash Equivalents
         ----------------

         For purposes of the statement of cash flows, the Company  considers all
         highly  liquid  debt  instruments  purchased  with a maturity  of three
         months or less to be cash equivalents.


         Other Assets
         ------------

         Other assets consist of patents  ($4,132),  security  deposits ($4,144)
         and computer equipment ($541).

         Patents are  amortized on a  straight-line  method over their  economic
         lives  and  are  reviewed  for   impairment   whenever  the  facts  and
         circumstances indicate that the carrying amount may not be recoverable.

         Computer  equipment is depreciated on a  straight-line  method using an
         estimated useful life of three years.

         Inventory
         ---------

         Inventories  are stated at the lower of cost or market.  Actual cost is
         used to value raw  materials  and  supplies.  Inventories  also include
         costs of processing and shipping.

         Intangible Assets
         -----------------

         Intangible  assets  principally  represent  the  exclusive  rights  and
         interest  to the allergy and sinus  formulations  and a thirteen-  step
         process for the manufacturing of the company's  products.  Such amounts
         are being amortized on a straight-line basis over 15 years.

         Research & Development Costs
         ----------------------------

         Research and development costs are expensed as incurred.

         Income Taxes
         ------------

         APPI has incurred  significant losses from operations.  The Company has
         elected  not to record  any tax  benefits  relating  to  potential  net
         operating loss  carryforwards due to the uncertainty of realizing those
         benefits.

         The  Company  intends  to  follow  Statement  of  Financial  Accounting
         Standards No. 109 (SFAS 109), "Accounting for Income Taxes" when either
         operations  achieve  profitability  or the realization of net operating
         loss benefits can more readily be measured, whichever comes first.


                                        5
<PAGE>

                      ADVANCED PLANT PHARMACEUTICALS, INC.
                      ------------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                  JUNE 30, 2001
                                  -------------
                                   (UNAUDITED)
                                   -----------


NOTE 4          Summary of Significant Accounting Policies
(Continued)     ------------------------------------------


         Earnings per Share
         ------------------

         Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings
         Per Share"  discusses the computation and  presentation of earnings per
         share  ("EPS").  Basic EPS,  as defined by SFAS No. 128, is computed by
         dividing   income    available   to   common    shareholders   by   the
         weighted-average  number of common shares outstanding for the reporting
         period,  ignoring  any  potential  effects  of  dilution.  Diluted  EPS
         reflects the  potential  dilution  that would occur if  securities,  or
         other contracts to issue common stock, were exercised or converted into
         common stock that then shared in the earnings of the entity.

         There were  5,500,000  common stock options  outstanding as of June 30,
         2001. As a result of the losses reported in the periods presented these
         options, if exercised, would be antidilutive.  Accordingly,  only Basic
         EPS is presented in these financial  statements.  The  weighted-average
         number  of  shares  used  in the  computation  of per  share  data  was
         147,893,297  and  109,811,099  for the three months ended June 30, 2001
         and 2000,  respectively.  For the  six-month  periods  then ended,  the
         weighted-average   number  of  shares  was   141,742,748  in  2001  and
         109,155,303 in 2000.

         Stock-Based Compensation
         ------------------------

         APPI has satisfied various loans, trade payables,  employee  back-wages
         and other  liabilities  through  the  issue of its  common  stock.  The
         Company accounts for such stock-based compensation using the fair-value
         method  as  prescribed  by SFAS No.  123,  "Accounting  for-Stock-Based
         Compensation."  The  Company  has  also  issued  stock  options  to key
         employees.  As permissible under SFAS No. 123, the Company accounts for
         stock  options using the  intrinsic  value method as  prescribed  under
         Accounting Principles Board Opinion No. 25.

         Use of Estimates
         ----------------

         The  preparation of financial  statements in conformity  with generally
         accepted  accounting  principles  requires management to make estimates
         and  assumptions.  These estimates and assumptions  affect the reported
         amounts  of  assets  and  liabilities,  the  disclosure  of  contingent
         liabilities and the reported  amounts of revenues and expenses.  Actual
         results could differ from these estimates.




                                        6
<PAGE>

                      ADVANCED PLANT PHARMACEUTICALS, INC.
                      ------------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                  JUNE 30, 2001
                                  -------------
                                   (UNAUDITED)
                                   -----------


NOTE 5          Capital Stock
                -------------

         The  Company is  authorized  to issue 250  million  shares of it common
         stock,  par value  $.0007 per share.  The  holders of common  stock are
         entitled  to one vote for each share held on all matters to be voted on
         by stockholders.

         The Company is also  authorized to issue 5 million  shares of preferred
         stock,  par value  $.0007 per share.  There is  currently  no preferred
         stock  outstanding  and the  company  has no  current  plans  to  issue
         preferred stock.

NOTE 6          Loans Payable
                -------------

         Loans Payable consists of unsecured,  non-interest  bearing  short-term
         loans typically of less than three months duration. The loan agreements
         provide the Company  with the option of repaying  the loans with either
         cash or restricted shares of the Company's common stock.

NOTE 7          Related-Parties Transactions
                ----------------------------

         On March  15,  2000 the  company  entered  into a  two-year  employment
         agreement  with Dr. Leonard  Bielory  whereby Dr. Bielory will serve as
         the  Company's  Scientific  Director  and its  Chairman of the Board of
         Directors. Under the terms of the agreement, the Company is required to
         pay Dr. Bielory wages of $500 per month for the first twelve months and
         up to $2,500 per month thereafter,  contingent on the Company achieving
         specified net profit levels.  Upon commencement of this agreement,  and
         each January 1 thereafter,  the Company is to issue Dr. Bielory options
         to purchase  750,000 shares of the Company's common stock as additional
         compensation  under this agreement.  As of August 15, 2001, the Company
         has not issued  any of the  options  required  per the  agreement.  The
         agreement  also  required  the  Company  to issue Dr.  Bielory  225,000
         restricted shares of the Company's common stock as a signing bonus. The
         fair market value of the Company's stock on March 15, 2000 (the date of
         this  agreement)  was $.43 per share.  The Company  accrued the shares'
         aggregate  fair  market  value of  $96,750 as  additional  compensation
         expense during the first quarter of 2000. The shares were issued to Dr.
         Bielory during April 2000.

         On January 22, 2001,  the Company  entered into a consulting  agreement
         with  Summa  Capital,  Inc.,  which is  owned  by the son of a  current
         employee  and  shareholder  of the  Company.  In  accordance  with  the
         agreement,  Summa Capital will provide consulting  services in the area
         of investor relations, public relations, marketing and capital markets.
         The  agreement is renewable  every three months but may be cancelled by
         either party on a monthly basis.




                                        7
<PAGE>

                      ADVANCED PLANT PHARMACEUTICALS, INC.
                      ------------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                  JUNE 30, 2001
                                  -------------
                                   (UNAUDITED)
                                   -----------


NOTE 7          Related-Parties Transactions
(Continued)     ----------------------------


         Compensation  payable to Summa  Capital under this  agreement  includes
         $3,000 per month payable in advance, 300,000 shares of Company stock at
         the end of each three-month period and a percentage of the net proceeds
         of any money  raised by the Company from  sources  introduced  by Summa
         Capital.  Additionally,  at the beginning of every three-month  renewal
         period Summa Capital is to receive two-year  warrants  convertible into
         300,000 shares of the Company's common stock and five-year  warrants to
         purchase an additional  300,000 shares of the Company's stock.  General
         and  administrative  expenses for the three-month and six-month periods
         ended June 30, 2001,  includes  $21,000 and $38,300,  respectively,  of
         expenses relating to this agreement of which $3,700 has been paid as of
         June 30, 2001.

         On February 28, 2001,  the Company  entered into a loan  agreement with
         Sam  Berkowitz,  an  employee  and  shareholder  of  the  Company.  The
         agreement is for a maximum  loan amount of $100,000  and was  initially
         due on June 30,  2001.  The Company has  borrowed  $56,400 on this loan
         which is still  outstanding at June 30, 2001. The loan is interest free
         and  includes  the option to be paid in Company  stock.  If the loan is
         paid in Company stock, the stock conversion price is $.0165 per share.

         The Company's President, and his brother, has also lent the Company
         money at various times in the past. Outstanding balances under these
         loans totals approximately $77,000 at June 30, 2001. These loans are
         also interest free.

NOTE 8          Financial Results and Liquidity
                -------------------------------

         As of June 30,  2001,  the  Company  had no cash  balances.  Since  its
         inception, the Company has had significant operating losses and working
         capital deficits.  The Company's continued existence has been dependant
         on cash  proceeds  received  from the sale of its common  stock and the
         willingness  of vendors to accept  stock in lieu of cash  payments  for
         their  services.   Employees  have  also  accepted  deferrals  of  wage
         payments.  The Company hopes to reverse this trend by  generating  cash
         inflows through the sale of new products. To accomplish this objective,
         the Company will require working  capital to satisfy current  operating
         expenses, and to produce inventory, during the interim period preceding
         such time, if ever, that the revenue cycle begins generating cash.

         To market and generate  sales of its products,  the Company has entered
         into  various  distribution  agreements  over the years.  As of June 30
         2001, none of the  distribution  agreements has resulted in significant
         sales for the Company. The impact of any current or future distribution
         agreements on the Company's cash flow is uncertain.




                                        8
<PAGE>

                      ADVANCED PLANT PHARMACEUTICALS, INC.
                      ------------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                  JUNE 30, 2001
                                  -------------
                                   (UNAUDITED)
                                   -----------


NOTE 8          Financial Results and Liquidity
(Continued)     -------------------------------


         There is no guarantee  that cash  generated from new product sales will
         occur,  or be sufficient to fund operating  costs which can be expected
         to  increase  as  the  Company   "ramps  up"  for   manufacturing   and
         distribution  activities.  There also is no assurance  that the Company
         will continue to be able to finance  operations through the sale of its
         common  stock,  the exchange of stock for services or from the proceeds
         of unsecured loans with private lenders.


NOTE 9          Financial Advisor and Investment Banking Agreement
                --------------------------------------------------

         On February 17, 2000 the Company  entered into an agreement  with First
         Madison  Securities,  Inc. ("FMS") whereby FMS was to act as consultant
         and  non-exclusive  financial  advisor  and  investment  banker  to the
         Company in connection with strategic planning, securities transactions,
         valuations,  mergers & acquisitions,  alternative  financing structures
         and capital  formation.  FMS would also act as placement  agent for the
         Company.

         As compensation  for these  services,  the Company is required to issue
         FMS  6,000,000  restricted  shares  of its  common  stock  as  follows;
         1,700,000  shares upon  execution of the  agreement,  1,700,000  shares
         within  three  months of signing the  agreement  and  2,600,000  shares
         within six months of signing the agreement.  The restricted shares were
         to be registered with the Securities and Exchange  Commission to become
         free  trading   shares  as  soon  as  possible  with  FMS  bearing  all
         registration  costs.  General  and  Administrative   expenses  for  the
         three-months  ended  March 31,  2000  includes  consulting  expense  of
         $663,000,  which was the  aggregate  fair  market  value of the initial
         1,700,000  shares  due  to  FMS  on  February  17,  2000.  The  Company
         distributed the initial 1,700,000 shares during May 2000.

         The  Company  is  also  required  to pay  FMS a  placement  fee for any
         transactions  consummated,  directly or indirectly,  through FMS during
         the term of the agreement or within two years thereafter. The placement
         fee will consist of a payment equal to 10% of the gross proceeds raised
         from   the   sale   of   applicable   securities,    reimbursement   of
         non-accountable  expenses  equal to 3% of the gross  proceeds  from the
         sale of any  applicable  securities  plus  warrants to purchase  common
         stock equal to 10% of the  applicable  shares sold.  Additionally,  the
         Company will  reimburse FMS for all reasonable  out-of-pocket  expenses
         incurred  in the  performance  of this  agreement,  up to a maximum  of
         $25,000.

         Service under this agreement shall continue until  terminated by either
         party by giving thirty days written notice. Through June 30, 2001, this
         contract has not been exercised or terminated.


                                        9
<PAGE>

                      ADVANCED PLANT PHARMACEUTICALS, INC.
                      ------------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                  JUNE 30, 2001
                                  -------------
                                   (UNAUDITED)
                                   -----------


NOTE 10         Sales Management Agreement
                --------------------------

         On March 16, 2001,  the Company  entered into an agreement  whereby the
         Company appointed  National Brokers Associates (NBA) as their exclusive
         sales  management  organization.  The agreement is for a one year term.
         Compensation  under the agreement  involves  percentage of sales volume
         and includes  minimum  payments of $5,000 per month of which 80% can be
         paid with Company stock at a discounted  conversion rate. The agreement
         calls for the issuance of additional  shares of the Company's  stock if
         certain sales levels are achieved.

NOTE 11         Financial Consulting and Public Relations Agreement
                ---------------------------------------------------

         On  June  26,  2001,  the  Company   entered  into  an  agreement  with
         Continental  Management  Group,  Inc.  (CMGI) whereby CMGI will provide
         financial  consulting  and  public  relations  services  to  APPI.  The
         agreement is for a period of one year commencing on July 1, 2001 but is
         cancelable by either party on thirty days written notice.  Compensation
         under this  agreement  includes  the  issuance of  3,000,000  shares of
         common  stock  over the  duration  of the  agreement  in equal  monthly
         installments.  Additionally,  upon  commencement  of services,  500,000
         shares of common  stock,  and  options to purchase  500,000  additional
         shares at $.025 per share, are to be issued to CMGI.

NOTE 12         Prior Period Adjustments
                ------------------------

         Reclassification of purchase of formulation and manufacturing process
         ---------------------------------------------------------------------

         On July 16,  1999,  the  Company  entered  into a  Technology  Purchase
         Agreement  with  C.J.  Lieberman  (brother  of the  current  President)
         whereby  the  Company  acquired  exclusive  rights  and  interest  to a
         thirteen-step  process,  which  utilizes  virtually  the  whole  of the
         nutrients  found in plants to manufacture  herbal dietary  supplements.
         The purchase price for the process  includes  18,000,000  shares of the
         Company's  common stock  issuable in two phases.  As of December  2000,
         none of the  stock  related  to this  agreement  has been  issued.  The
         Company  accrued  $1,440,000,  in  anticipation  of  issuing 12 million
         shares that became due in 2000 per the  agreement.  This amount,  which
         represents  the fair market value of the stock when it became due under
         the agreement was included in "Research and Development"  costs in 2000
         and "Accrued Expenses Payable" at December 31, 2000.

         On  February  28,  2000 the  Company  entered  into an  Asset  Purchase
         Agreement with Dr. Leonard Bielory  (Chairman of the Board of Directors
         of APPI) whereby the Company acquired the exclusive rights and interest
         to  allergy  and sinus  formulations  ("Assets").  The  purchase  price
         includes options to purchase  18,000,000 shares of the Company's common
         stock at an  aggregate  exercise  price of $180.  The options are to be
         issued in two  phases.  The first phase was  completed  in 2000 and the
         required  options to purchase 12 million  shares were issued during the
         fourth  quarter of 2000. The fair value of the 12 million share options
         was $1,079,880 and was included in "Research and  Development"  expense
         in the 2000 income statement.



                                       10
<PAGE>

                      ADVANCED PLANT PHARMACEUTICALS, INC.
                      ------------------------------------
                          NOTES TO FINANCIAL STATEMENTS
                          -----------------------------
                                  JUNE 30, 2001
                                  -------------
                                   (UNAUDITED)
                                   -----------


NOTE 12         Prior Period Adjustments
(Continued)     ------------------------


         During the  fourth  quarter  ending  December  31,  2000,  the  Company
         expensed as research and  development,  the combined cost of $2,519,880
         for the asset purchase  agreements  with Dr.  Leonard  Bielory and C.J.
         Lieberman.  The Company  corrected the error and capitalized such costs
         as  intangible  assets,  subject  to  amortization.  The  effect of the
         restatement was to reduce costs of research and development as reported
         on December 31, 2000 from $2,615,630 to $95,750.

         Additionally,   the   Company   recorded   approximately   $42,000   of
         amortization  for the same period.  The effect of the correction was to
         reduce the net loss reported for the year ended  December 31, 2000 from
         $4,778,734 ($.04 loss per share) to $2,300,854 ($.02 loss per share).

         Additionally,   the   Company   recorded   approximately   $42,000   of
         amortization during the first quarter ending March 31, 2001. The effect
         on the  correction is to increase the loss as originally  reported from
         $173,787 to $215,787.


NOTE 13         Subsequent Events
                -----------------

         In  addition  to the  shares  that may  potentially  be issued  for the
         agreements previously  discussed,  the Company is currently considering
         issuing  approximately  8,705,000  shares  of  common  stock to pay off
         various  payables  existing at June 30, 2001.  The fair market value of
         these shares at June 30, 2001 is approximately $348,000.

         None of the shares relating to these subsequent events has been used to
         calculate earnings per share data since they would be antidilutive.









                                       11
<PAGE>

ITEM 1 - Legal Proceedings

       None

ITEM 2 - Changes in Securities

       None

ITEM 3 - Defaults upon Senior Securities

       None

ITEM 4 - Submission of Matters to a Vote of Security Holders

       None

ITEM 5 - Other Information

       None

ITEM 6 - EXHIBITS AND REPORTS OF FORM 8-K

       None


Pursuant  to the  requirements  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.


Advanced Plant Pharmaceuticals, Inc.


  /s/ David Lieberman
---------------------------
David Lieberman,
President

September 6, 2001