ORGANETIX, INC.
                          (A Development Stage Company)
                 NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS
                                  JUNE 30, 2005


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

                                   FORM 10-QSB

                   QUARTERLY REPORT UNDER SECTION 13 or 15 (d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2005
                        Commission file number 333-63432

                                 Organetix, Inc.
        (Exact name of small business issuer as specified in its charter)


             Delaware                               73-1556428
(State or other jurisdiction of                  (I.R.S. Employer
incorporation or organization)                   Identification
No.)
                   Suite 200, 603 - 7th Avenue S.W., Calgary,
                       Alberta, Canada T2P 2T5 (Address of
                     principal executive offices) (Zip Code)
                    Issuer's telephone number: (403) 261-8888
                                    ext# 224
                    (Address of principal executive offices)

              (Former name, former address and former fiscal year,
                         if changed since last report.)

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

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

The number of shares of the issuer's outstanding common stock, which is the only
class of its common equity, on August 5, 2005 was 85,332,447.


                                       1
<PAGE>


                               ORGANETIX, INC.
                           (A Development Stage Company)
                NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS
                                 JUNE, 30 2005

                                 ORGANETIX, INC.
                           A Development Stage Company


                                                                         PAGE(S)

PART I   FINANCIAL INFORMATION

Item 1.     Financial Statements:

              Balance Sheets - June 30, 2005 (unaudited)
                and December 31, 2004                                       3.

              Statements of Operations - Six Months Ended
               June 30, 2005 and 2004 and the Period from
               Inception (May 28, 2003) to June 30, 2005 (unaudited)        4.

              Statements of Cash Flows - Six Months ended
               June 30, 2005 and 2004 and the Period from
               Inception (May 28, 2003) to June 30, 2005 (unaudited)        5.

              Notes to Interim Financial Statements (unaudited)             6.

Item 2.     Management's Discussion and Analysis of Financial
              Condition and Results of Operations                           9.

Item 3.     Controls and Procedures                                         12.


PART II     OTHER INFORMATION                                               13.

            Signatures                                                      13.

            Exhibits


                                       2
<PAGE>


                               ORGANETIX, INC.
                           (A Development Stage Company)
                NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS
                                 JUNE, 30 2005


<TABLE>
<CAPTION>
                                                                          June 30, 2005 (unaudited)          December 31, 2004
                                                                          ---------------------------    --------------------------

                                                              ASSETS
<S>                                                                                           <C>                          <C>
CURRENT ASSETS:
Cash                                                                                          $4,700                       $57,495
Research and development supplies                                                             61,914                        72,108
Prepaid expenses                                                                              54,240                        22,447
                                                                          ---------------------------    --------------------------
TOTAL CURRENT ASSETS                                                                         120,854                       152,050

FIXED ASSETS:
Transportation equipment                                                                      20,000                        25,000

OTHER ASSETS:
License agreement - net of accumulated amortization                                        2,064,125                     2,091,500
                                                                          ---------------------------    --------------------------

                                                                                          $2,204,979                    $2,268,550
                                                                          ===========================    ==========================

                                               LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Accounts payable and accrued expenses                                                       $202,595                       $47,756
Due to affiliate                                                                             251,966                       161,966
Due to shareholders
Due to Peru - Operations                                                                       6,200
Loan Payable                                                                                  99,325
                                                                          ---------------------------    --------------------------
TOTAL CURRENT LIABILITIES                                                                    560,086                       209,722
                                                                          ---------------------------    --------------------------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
Common stock, $.0001 par value; 150,000,000 shares authorized; 84,962,447 and
76,362,056 shares issued and outstanding in 2004 and
2003, respectively                                                                             8,496                         8,496
Additional paid-in capital                                                                 3,861,841                     3,685,340
Subscription receivable                                                                                                     -
Deficit accumulated during the development stage                                         (2,225,443)                   (1,635,008)
                                                                          ---------------------------    --------------------------
                                                                                           1,644,894                     2,058,828
                                                                          ---------------------------    --------------------------

                                                                                          $2,204,979                    $2,268,550
                                                                          ===========================    ==========================
</TABLE>


                                       3
<PAGE>


                               ORGANETIX, INC.
                           (A Development Stage Company)
                NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS
                                 JUNE, 30 2005


                                 ORGANETIX, INC.
                          (A Development Stage Company)
                            STATEMENTS OF OPERATIONS


<TABLE>
<CAPTION>
                                          For the Cumulative
                                              Period From               Six months ended
                                          Inception (May 28,             June on June 30,        Six months ended June
                                         2003) to June 30, 2005                2005                on June 30, 2004
                                         ----------------------      ----------------------    ------------------------
<S>                                                    <C>                         <C>                               <C>
REVENUES                                               (1,110)                     (1,110)                           0
                                         ----------------------      ----------------------    ------------------------

COSTS AND EXPENSES:
Operating expenses - research facility                 174,236                      40,626                      44,790
Research and development expenses                      877,665                     209,747                     332,637
Consulting fees                                        281,528                      90,000                      60,000
Professional fees                                      262,896                      68,408                      49,065
Travel and accommodations                              109,504                      18,246                      22,085
Telephone                                               25,937                       3,606                       6,112
Insurance                                               57,329                      22,907                       4,170
Rent                                                    25,952                       7,134                       7,652
Shipping expense                                         5,229                         912                         825
Office and other expense                               105,202                      34,351                      16,420
Marketing and public relations                         162,980                      61,013                      20,562
Depreciation and amortization expense                  135,875                      32,375                      27,375
                                         ----------------------      ----------------------    ------------------------
                                                     2,224,333                     589,325                     591,693
                                         ----------------------      ----------------------    ------------------------


NET LOSS                                          ($2,225,443)                  ($590,435)                  ($591,693)
                                         ======================      ======================    ========================


LOSS PER SHARE:

Basic and diluted                                                                                               (0.01)
                                         ======================      ======================    ========================

Weighted average number of common
shares outstanding                                                                                          47,656,991
                                         ======================      ======================    ========================
</TABLE>


                                       4
<PAGE>


                               ORGANETIX, INC.
                           (A Development Stage Company)
                NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS
                                 JUNE, 30 2005


                                 ORGANETIX, INC.
                          (A Development Stage Company)
                            STATEMENTS OF CASH FLOWS


<TABLE>
<CAPTION>
                                                                For the Cumulative
                                                              Period From Inception  Six months ending   Six months ending
                                                                  (May 28, 2003) to      June 30, 2005     June 30, 2004
                                                                     June 30, 2005         (unaudited)       (unaudited)
                                                                    ---------------    ---------------    ---------------
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS:
<S>                                                                             <C>                <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                                 (2,225,443)          (590,435)          (591,693)
Adjustment to reconcile net loss to net cash utilized by
operating activities:
Depreciation and amortization                                               135,875             32,375             27,375
Compensatory shares                                                         148,210              6,000
Changes in assets and liabilities:
Research and development supplies                                           (61,914)            10,194            (77,000)
Prepaid expenses                                                            (54,240)           (31,793)            (9,822)
Accounts payable and accrued expenses                                       202,595            154,839              6,990
Due to affiliates                                                           251,966             90,000             42,310
Due to shareholders                                                               0                  0            (80,592)
Due to Peru - Operations                                                      6,200              6,200                  0
                                                                    ---------------    ---------------    ---------------
                        Net cash utilized by operating activities        (1,596,751)          (328,620)          (676,432)
                                                                    ---------------    ---------------    ---------------

CASH FLOWS FROM INVESTING ACTIVITIES
Payment regarding license                                                  (150,000)                 0                  0
Capital expenditures                                                        (30,000)                 0            (30,000)
                                                                    ---------------    ---------------    ---------------
                        Net cash utilized by investing activities          (180,000)                 0            (30,000)
                                                                    ---------------    ---------------    ---------------

CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock to founders                                         65,760                  0
Proceeds from private placement of common stock                           1,316,366            176,501            778,106
Cash received in merger                                                     300,000                  0
Loan Payable                                                                 99,325             99,325
                                                                    ---------------    ---------------    ---------------
                        Net cash provided by financing activities         1,781,451            275,826            778,106
                                                                    ---------------    ---------------    ---------------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                          4,700            (52,794)            71,674
Cash, beginning of period                                                         0                  0            186,235
                                                                    ---------------    ---------------    ---------------
                                              CASH, END OF PERIOD             4,700            (52,794)           257,909
                                                                    ---------------    ---------------    ---------------
</TABLE>


                                       5
<PAGE>


                                 ORGANETIX, INC.
                          (A Development Stage Company)
                 NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS
                                  JUNE 30, 2005


NOTE 1 - DESCRIPTION OF COMPANY/OPERATIONS:

      Organetix, Inc. ("the Company" or "Organetix"), a Delaware Corporation,
      was incorporated on May 28, 2003. The Company is a biotechnology company
      that has the exclusive worldwide license (see Note 4) for the formula of a
      proprietary medical discovery relating to the liver referred to as A4+L.
      The Company intends to patent, research, develop, produce and sell this
      proprietary liver product initially as a nutraceutical and will
      investigate the possibility of manufacturing a synthetic drug in an
      alliance with a major pharmaceutical partner. To date, the Company has
      been using this liver product to treat patients with Hepatitis C and to
      treat cancer patients who are being treated with chemotherapy. Much like
      insulin being used for diabetes, this proprietary liver product does not
      cure Hepatitis C but clinical research suggests it is regenerating liver
      tissue thus allowing the liver to begin functioning again despite years of
      damage from the Hepatitis C virus and or despite liver damage and toxicity
      while taking chemotherapy. This product may be useful for treating all
      liver disorders, and may also be useful as an anti-ager and anti-toxin and
      may someday help eliminate most liver transplants. Organetix intends to
      also specialize in researching, developing and patenting bioactive
      compounds and their unique formulas and processes from plants having a
      distinctive history of medicinal use.

      On November 7, 2003 (the "Effective Date"), pursuant to a Share Exchange
      Agreement ("Agreement") between Diamond International Group, Inc.
      ("Diamond"), a Delaware corporation and Organetix, Inc. ("Organetix"), a
      Delaware corporation and all of the shareholders of Organetix, Diamond
      acquired all of the shares of Organetix as consideration for the issuance
      of 64,000,000 restricted shares of Diamond to the Organetix shareholders.
      As a result of this Agreement, Diamond International Group, Inc. (the
      legal acquirer) received 100% of the issued and outstanding common stock
      of Organetix, Inc. in exchange for 64,000,000 shares of common stock of
      Diamond. Pursuant to the Agreement, Organetix became a wholly owned
      subsidiary of Diamond which entity filed a Certificate of Amendment with
      the State of Delaware changing its name to Organetix, Inc. This reverse
      merger transaction was treated retroactively as a recapitalization with
      Organetix, Inc. being treated as the accounting acquirer.

      The Company has been devoting its time towards establishing its business
      and no revenues have been generated to date. As such, the Company is
      considered as being in the development stage, since its inception, in
      accordance with Statement of Financial Accounting Standards No. 7, and its
      year-end is December 31.

      In the opinion of management, the accompanying unaudited interim
      consolidated financial statements of Organetix, Inc. ("the Company"),
      contain all adjustments (consisting of normal recurring accruals and
      adjustments) considered necessary to present fairly the Company's
      financial position as of June 30, 2005 and the results of its operations
      and its cash flows for the three months ended June 30, 2005 and 2004 and
      the period from inception (May 28, 2003) to June 30, 2005. Operating
      results for the six months ended June 30, 2005 are not necessarily
      indicative of the results that may be expected for the year ended December
      31, 2005.

      The accounting policies followed by the Company are set forth in Note 2 to
      the Company's financial statements included in its annual report on Form
      10-KSB for the year ended December 31, 2004, which is incorporated herein
      by reference. Specific reference is made to this report for a description
      of the Company's securities and the notes to financial statements included
      therein. The accompanying unaudited interim condensed financial statements
      have been prepared in accordance with accounting principles generally
      accepted in the United States of America for interim financial information
      and with the instructions to Form 10-QSB. Accordingly, they do not include
      all of the information and footnotes required by accounting principles
      generally accepted in the United States of America



                                       6
<PAGE>


                               ORGANETIX, INC.
                           (A Development Stage Company)
                NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS
                                 JUNE, 30 2005


NOTE 2 - RESEARCH AND DEVELOPMENT SUPPLIES:

      As of June 30, 2005, the Company had $61,914 in raw materials purchased
      and other costs incurred for production of its nutraceutical supplement
      which is currently being utilized in research. The Company only produced
      the nutraceutical supplement in Peru during the period of January 2004
      through March 2004. The product manufactured is being used to continue the
      testing on the existing Hepatitis C patients and cancer patients being
      treated with chemotherapy along with other required testing.


NOTE 3 - DUE TO AFFILIATE/SHAREHOLDERS:

      The Company is indebted to affiliates, AMMA Corporation, Clarke Management
      Services Inc. and Joint Venture Management Inc. for expenses
      (administrative and managerial costs) incurred in connection with the
      Company's operations from inception. This amount is non-interest bearing
      and are payable on demand.


NOTE 4 - ASSIGNMENT OF LICENSE AND CONSULTING AGREEMENTS:

      (a)   License Agreement:

      On July 15, 2003, Amma Corporation ("Amma"), a privately held entity
      domiciled in Alberta, Canada, assigned all of its right, title and
      interest in and to the A4+L compound as defined in a License Agreement,
      dated June 5, 2003, between Amma and Dr. Jose Cabanillas Coral, a Canadian
      resident and citizen of Peru, to the Company in exchange for 8,160,000
      shares of Company common stock.

      The A4+L compound (the "technology"), is a multiple plant formulation used
      for the relief of certain medical symptoms associated with Hepatitis C.
      This license grants the Company the exclusive right to use and sublicense
      the technology, and any improvements, and to research, manufacture,
      distribute and sell products throughout the world excluding Peru.

      This 40-year license also requires that the Company pay a royalty equal to
      3% of gross sales and sublicensing revenues to Dr. Cabanillas.

      (b)   Consulting Agreement:

      Concurrently with the assignment of the license agreement described above,
      Amma also assigned its consulting agreement, dated June 1, 2001, with Dr.
      Cabanillas to the Company.

      This agreement, which expires on June 1, 2006, requires that Dr.
      Cabanillas provide general and research duties as requested, in exchange
      for a monthly fee of $12,000.


                                       7
<PAGE>


                               ORGANETIX, INC.
                           (A Development Stage Company)
                NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS
                                 JUNE, 30 2005


NOTE 5 - STOCKHOLDERS' EQUITY:

      In connection with the reverse merger with Diamond International, Inc.,
      Silvio Martini, the majority shareholder at the time, agreed to pay
      certain expenses of the Company from the shares retained by him. Such
      shares were placed in escrow and during the six months ending June 30,
      2005, 620,000 shares were sold and transferred to 7 persons generating
      $124,000 of proceeds, which were then contributed to the Company as
      additional paid-in capital. Mr. Martini also transferred certain escrowed
      shares to consultants as payment for services provided to the Company. The
      value of these shares, $52,500, was recorded as additional paid-in
      capital.


                                       8
<PAGE>


ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS:

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING STATEMENTS

It should be noted that this Management's Discussion and Analysis of Financial
Condition and Results of Operations may contain "forward-looking statements."
The terms "believe," "anticipate," "intend," "goal," "expect," and similar
expressions may identify forward-looking statements. These forward-looking
statements represent the Company's current expectations or beliefs concerning
future events. The matters covered by these statements are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those set forth in the forward-looking statements, including the Company's
dependence on weather-related factors, introduction and customer acceptance of
new products, the impact of competition and price erosion, as well as supply and
manufacturing restraints and other risks and uncertainties. The foregoing list
should not be construed as exhaustive, and the Company disclaims any obligation
subsequently to revise any forward-looking statements to reflect events or
circumstances after the date of such statements, or to reflect the occurrence of
anticipated or unanticipated events. In light of the significant uncertainties
inherent in the forward-looking information included herein, the inclusion of
such information should not be regarded as a representation that the strategy,
objectives or other plans of the Company will be achieved. The Company wishes to
caution readers not to place undue reliance on any such forward-looking
statements, which speak only as of the date made.

OVERVIEW

Organetix, Inc. http://www.organetixinc.com; (OTCBB: OGTX) is a biotechnology
company that has the exclusive worldwide license for the formula of a
proprietary medical discovery relating to the liver referred to as A4+L. The
A4+L liver treatment is an all natural organic botanical formula. Organetix will
patent, research, develop, produce and sell this proprietary liver product
initially as a nutraceutical and will investigate the possibility of
manufacturing a synthetic drug in an alliance with a major pharmaceutical
partner.

To date, Organetix, Inc. has been using this liver product to treat patients
with Hepatitis C. Much like insulin being used for diabetes, this proprietary
liver product does not cure Hepatitis C but clinical research suggests it is
regenerating liver tissue thus allowing the liver to begin functioning again
despite years of damage from the virus.

This product may be useful for treating all liver disorders, and may be useful
as an anti-ager and anti-toxin and may someday help eliminate most liver
transplants.

Management, together with research and medical advisors are reporting that the
formula, in the limited tests conducted to date eliminates most of the symptoms
of Hepatitis C quickly and effectively without any known side effects. The liver
product may directly compete in a billion dollar market that currently exists
around the world. Additional testing will be ongoing. Analog products will also
be evaluated.

The objective of our clinical study was to determine the effectiveness of A4+L
on the quality of life of Hepatitis C patients. It was designed by independent
doctors in the USA and Peru and was conducted in Peru on North American
patients. These patients were directly under care and supervision of doctors and
nurses for approximately four weeks.

Based on the results reported by the USA doctors, who tested and examined the
patients at the beginning and at the end of the study, it was concluded that
there was significant success in the areas of depression, health-related quality
of life burden, clinical symptoms, and within blood results relating to the
prothrombin activity and the serum cholinesterase.

As quoted by Dr. Joseph Nystrom, Chief of Staff Elect at the East Pasco Medical
Center, located in the Tampa Bay Metropolitan area: "In summary, the
nutraceutical product A4+L has enormous potential as therapy for emotional and
physical suffering of the burgeoning number of Hepatitis C sufferers. A larger
placebo controlled long-term study is warranted. Further study of A4+L may
reveal it to be useful in other disease processes as well."


                                       9
<PAGE>


ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued):

The Company has since commenced the phytochemistry, pharmacology and the
technology processes relating to the A4+L liver product.

In addition to treating Hepatitis C, the Company's A4+L liver product may be
useful in treating cirrhosis, liver cancer and toxic liver patients. Researchers
are also requesting us to test our liver treatment as an adjunct product to help
patients who are being treated with chemotherapy and or interferon drugs.

Organetix, Inc. has received positive independent laboratory results from tests
conducted in Germany, Spain, and Argentina, which significantly confirms the
effectiveness of our A4+L liver product. Successful results from these
laboratory tests are significant in supporting management's decision to continue
further laboratory and patient testing.

In summary, to date Organetix Inc., has successful results supporting this
product in the following areas:

Laboratory Testing has reported:

-        A4+L does not damage human DNA.
-        A4+L is a powerful Anti-Toxin
-        A4+L is a powerful Anti-Oxidant
-        A4+L is proliferating cell growth

Blood Testing has shown there was a significant increase in prothrombin activity
and serum cholinesterase which supports increased protein synthesis by liver and
a decrease in the degradation of the liver.

3D Ultrasounds, MRI, Cat scans and Biopsies before and after taking A4+L are
reporting significant physical changes in the structure and size of livers
treated.

Depression: The severity of depression at the start of the study ranged from
borderline in 10% of the subjects, mild to moderate depression in 80%, and
severe depression in 10%. By the end of the study period significant improvement
in depression was noted and 90% of the subjects had become free of depression.
Noteworthy is the reported change in the Beck Depression Inventory score. The
scoring reported is unusual in population norms.

Health-Related Quality of Life Burden: In general, use of A4+L was accompanied
by significantly improved health-related quality of life in study subjects by
Day 14. By Day 28, the functional status and well-being of study subjects were
restored completely to normal levels. The score improvements observed in this
study by Day 28 were on average larger than two standard deviations for nearly
all health-related quality of life scales, which has rarely been observed in the
thousands of treatment studies of other chronic diseases involving the SF-36
Health Survey.

Clinical symptoms: Study subjects showed a significant improvement in most of
their symptoms. This included improvement in fatigue, right upper quadrant pain
and tenderness, dyspepsia, nausea-vomiting, indigestion, headache, muscle and
joint/bone pain.

Organetix Inc. recently announced the results from a recent one hundred cell
study which was designed to investigate the possible genotoxicity of A4+L liver
product. The test focused on the primary culture of human lymphocytes using the
Comet Assay to evaluate the damage to the genetic material.

The study concluded that our A4+L liver product doesn't induce damage to the DNA
in human lymphocytes. The results are a positive step in evidencing that the
A4+L liver product is safe for human consumption.


                                       10
<PAGE>


Organetix Inc. has also
recently received positive independent medical and laboratory results from a
test conducted in Peru on a chemotherapy patient diagnosed with lung cancer and
metastasis on the liver. This patient received the A4+L liver product while
taking her 5th through her 32nd treatment of chemotherapy.
After 15 days of taking A4+L along with her chemotherapy treatments, her nausea
and fatigue disappeared completely and her appetite was restored. She recorded a
weight gain of 7 kilograms.


                                       11
<PAGE>


ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued):

The following describes the Company's immediate priorities:

1.    Register patents and research synthesis of the existing nutraceuticals
         and bioceuticals from the licensed liver product;

2.    Complete a larger placebo controlled clinical study of Hepatitis C,
      Cirrhosis and on Chemotherapy patients;

3.    Sub-license, market and distribute the licensed liver products with
      strategic partners; and

4.    Develop new nutraceuticals and bioceuticals from the licensed liver
      product.

Organetix has established a pipeline to many plant based medicines through
medical doctors in Peru and India. We will specialize in researching, developing
and patenting bioactive compounds and their unique formulas and processes from
plants having a unique history of medicinal use.

Nutraceuticals and Bioceuticals are the foundations for the new and exciting
drugs to be discovered in the 21st Century.

RESULTS OF OPERATIONS

We are currently in the development stage and have generated no revenues to
date. Our activities from inception to date were related to our formation,
preparation of our business model, arranging and planning financing and the
acquiring all rights, title and interest in the A4+L compound. During 2003 the
Company completed a reverse acquisition of Diamond International Group Inc.,
changed its name to Organetix, Inc., changed its OTC-BB symbol to OGTX and began
a new harvest of materials necessary to begin formulating new bulk inventories
of the A4+L liver product in 2004. We have financed our operations to date
through the sale of our securities and affiliates of our shareholders have
provided administrative services for which we have been billed.

Operating costs for the six-month period from inception June 30, 2005 aggregated
$2,224,333. This includes costs incurred in research and development of
$877,665, operating expenses for our research facility in Peru of $174,236 and
fees paid to various professionals for research as well as to our attorneys and
accountants in the collective amount of $544,424. As a result of the above we
realized a cumulative loss of $2,225,443 or $0.03 per share.

Operating costs for the six-month period ended June 30, 2005 aggregated
$589,325. This includes costs incurred in research and development of $209,747,
operating expenses for our research facility in Peru of $40,626 and fees paid to
various professionals for research as well as to our attorneys and accountants
in the collective amount of $158,408. As a result of the above we realized a
loss of $590,435 for the six-month period ended June 30, 2005 or $0.00 per
share.


                                       12
<PAGE>


ITEM 2. - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (Continued):

LIQUIDITY AND CAPITAL RESOURCES

From inception through June 30, 2005, net cash used to fund operating activities
totaled $1,596,751, net cash utilized by investing activities totaled $180,000
and net cash provided by financing activities totaled $1,781,451. For the
six-month period ended June 30, 2005, net cash used to fund operating activities
totaled $328,620 and net cash provided by financing activities totaled $275,826.

The Company has not generated revenues and has financed its operations to date
through the sale of securities and has received $1,316,366 from such sales from
inception to June 30, 2005. To date, the Company has also paid $150,000 towards
its license for the A4+L compound. Cash on hand was $4,700 as of June 30, 2005.


The Company is presently seeking to raise between $2 to $5 million in order to
fund research, phytochemistry, clinical studies, patents, manufacturing,
marketing and to fund the Company's exclusive option to purchase the
intellectual property for the A4+L liver product. Organetix, Inc. has signed a
Private Placement Agreement with an investment banker and anticipates being in a
position to close at least the minimum of such Placement by the end of September
2005.


CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The Company's discussion and analysis of its financial condition and results of
operations are based upon the its financial statements, which have been prepared
in accordance with accounting principles generally accepted in the United
States. The preparation of these financial statements requires the Company to
make estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses, and related disclosure of contingent assets
and liabilities. On an on-going basis, the Company evaluates its estimates,
including those related to bad debts, income taxes and contingencies and
litigation, when applicable. The Company bases its estimates on historical
experience and on various other assumptions that are believed to be reasonable
under the circumstances, the results of which form the basis for making
judgments about carrying values of assets and liabilities that are not readily
apparent from other sources. Actual results may differ from these estimates
under different assumptions or conditions.


ITEM 3 - CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures. As of June 30, 2005, the
Company's management carried out an evaluation, under the supervision of the
Company's Chief Executive Officer and the Chief Financial Officer of the
effectiveness of the design and operation of the Company's system of disclosure
controls and procedures pursuant to the Securities and Exchange Act , Rule
13a-15(e) and 15d-15(e) under the Exchange Act. Based upon that evaluation, the
Chief Executive Officer and Chief Financial Officer concluded that the Company's
disclosure controls and procedures were effective, as of the date of their
evaluation, for the purposes of recording, processing, summarizing and timely
reporting material information required to be disclosed in reports filed by the
Company under the Securities Exchange Act of 1934.

As a result of the Company's lack of available cash and in consideration of the
minimal number of transactions in the recent reporting period, it has declined
retaining its independent auditor to review its financial statements enclosed
with this Quarterly Report. At such time that the Company completes its proposed
financing and is a position to properly compensate its independent auditor for
review its quarterly financial statements, it will do so.

Changes in internal controls. There were no changes in internal controls over


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<PAGE>


financial reporting, known to the Chief Executive Officer or Chief Financial
Officer that occurred during the period covered by this report that has
materially affected, or is likely to materially effect, the Company's internal
control over financial reporting.


                                     PART II
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

         31.1 Certification of Chief Executive Officer
         31.2 Certification of Principal Financial Officer
         32.1 Certification of Chief Executive Officer
         32.2 Certification of Principal Financial Officer



                                   SIGNATURES

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

ORGANETIX, INC.

/s/ L. B. (Brad) Clarke
-----------------------------
Name: L. B. (Brad) Clarke
Title: Chief Executive Officer
Date:  August 15, 2005


/s/ Robert C. Howell
-----------------------------
Name: Robert C. Howell
Title: Chief Financial Officer
Date: August 15, 2005


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