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 September 30, 2004
                        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.)

             603 - 7th Avenue S.W., Calgary, Alberta, Canada T2P 2T5
               (Address of principal executive offices) (Zip Code)
                    Issuer's telephone number: (403) 261-8888
                    (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 November 7, 2004, 2004 was 84,605,300.

<PAGE>

                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                                      INDEX

<TABLE>
<CAPTION>
                                                                                                 PAGE(S)
<S>      <C>                                                                                     <C>
PART I   FINANCIAL INFORMATION

Item 1.    Financial Statements:

             Balance Sheets - September 30, 2004 (unaudited) and December 31, 2003                  3.

             Statements of Operations - Nine and Three Months Ended September 30, 2004
               and the Period from Inception (May 28, 2003) to September 30, 2004                   4.

             Statements of Cash Flows - Nine Months Ended September 30, 2004 and the
               Period from Inception (May 28, 2003) to September 30, 2004                           5.

             Notes to Interim Financial Statements (unaudited)                                      6.

Item 2.    Management's Discussion and Analysis of Financial Condition and Results of Operations    8.

Item 3.    Controls and Procedures                                                                 10.


PART II    OTHER INFORMATION                                                                       11.

           Signatures                                                                              12.

           Exhibits                                                                                13.
</TABLE>

                             See accompanying notes.

<PAGE>

                                                  PART 1 - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                                 BALANCE SHEETS

<TABLE>
<CAPTION>
                                                                                    SEPTEMBER 30,    DECEMBER 31,
                                                                                        2004             2003
                                                                                   --------------    --------------
                                                                                    (UNAUDITED)
                                   - ASSETS -

CURRENT ASSETS:
<S>                                                                                <C>               <C>
     Cash                                                                          $       47,977    $      186,235
     Raw material inventory                                                                92,000            15,000
     Prepaid expenses                                                                      20,303            10,000
                                                                                   --------------    --------------

TOTAL CURRENT ASSETS                                                                      160,280           211,235

FIXED ASSETS:
     Transportation equipment - net of accumulated
      depreciation of $2,500                                                               27,500                --

OTHER ASSETS:
     License agreement - net of accumulated amortization                                2,105,187         2,146,250
                                                                                   --------------    --------------

                                                                                   $    2,292,967    $    2,357,485
                                                                                   ==============    ==============



                    - LIABILITIES AND SHAREHOLDERS' EQUITY -

CURRENT LIABILITIES:
     Accounts payable and accrued expenses                                         $           73    $       11,490
     Due to affiliate                                                                     124,966            52,656
     Due to shareholders                                                                       --           122,261
                                                                                   --------------    --------------

TOTAL CURRENT LIABILITIES                                                                 125,039           186,407
                                                                                   --------------    --------------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
     Common  stock,  $.0001  par  value;  100,000,000  shares
        authorized;   84,605,300  and 76,362,056 shares issued
        and outstanding in 2004 and 2003, respectively                                      8,470             7,636
     Additional paid-in capital                                                         3,376,396         2,564,364
     Subscription receivable                                                                   --            (6,240)
     Deficit accumulated during the development stage                                  (1,216,938)         (394,682)
                                                                                   --------------    --------------
                                                                                        2,167,928         2,171,078
                                                                                   --------------    --------------


                                                                                   $    2,292,967    $    2,357,485
                                                                                   ==============    ==============

</TABLE>


                            See accompanying notes.

                                                                         Page 3.
<PAGE>

                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF OPERATIONS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                            For the Period
                                                            From Inception                       THREE MONTHS    For the Period
                                                            (May 28, 2003)                          ENDED        From Inception
                                                             to September   NINE MONTHS ENDED    SEPTEMBER 30,   (May 28, 2003 to
                                                               30, 2004     SEPTEMBER 30, 2004       2004       September 30, 2003
                                                            --------------  ------------------  --------------  ------------------
<S>                                                         <C>               <C>               <C>               <C>
REVENUES                                                    $           --    $           --    $           --    $           --
                                                            --------------    --------------    --------------    --------------

COSTS AND EXPENSES:
     Operating expenses - research facility                        111,930            68,670            23,880                --
     Research and development expenses                             529,901           410,675            78,038                --
     Consulting fees                                               154,528            90,000            30,000                --
     Professional fees                                             127,506            67,065            18,000                --
     Travel and accommodations                                      73,364            50,547            28,462                --
     Telephone                                                      18,860             9,053             2,941                --
     Insurance                                                      33,270            28,667            24,497                --
     Rent                                                           15,390             9,852             2,200                --
     Shipping expense                                                2,797             1,077               252                --
     Office and other expense                                       40,890            21,900             5,478                --
     Marketing and public relations                                 21,189            21,187               627                --
     Depreciation and amortization expense                          87,313            43,563            16,188                --
                                                            --------------    --------------    --------------    --------------
                                                                 1,216,938           822,256           230,563                --
                                                            --------------    --------------    --------------    --------------


NET LOSS                                                    $   (1,216,938)   $     (822,256)   $     (230,563)   $           --
                                                            ==============    ==============    ==============    ==============



LOSS PER SHARE:

     Basic and diluted                                      $         (.02)   $         (.01)   $           --    $           --
                                                            ==============    ==============    ==============    ==============

     Weighted average number of common shares outstanding       63,662,798        88,480,357        84,580,766                --
                                                            ==============    ==============    ==============    ==============
</TABLE>

                            See accompanying notes.

                                                                         Page 4.

<PAGE>

                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                            STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                           For the Period                      For the Period
                                                           From Inception                      From Inception
                                                           (May 28, 2003)     NINE MONTHS      (May 28, 2003
                                                            to September     ENDED SEPTEMBER    to September
                                                              30, 2004          30, 2004          30, 2003
                                                           --------------    --------------    --------------
<S>                                                        <C>               <C>               <C>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS:


CASH FLOWS FROM OPERATING ACTIVITIES:
     Net loss                                              $   (1,216,938)   $     (822,256)   $           --

   Adjustment to reconcile net loss to net cash utilized
    by operating activities:
     Depreciation and amortization                                 87,313            43,563                --
     Compensatory shares                                           14,000            14,000                --

   Changes in assets and liabilities:
     Raw material inventory                                       (92,000)          (77,000)               --
     Prepaid expenses                                             (20,303)          (10,303)               --
     Accounts payable and accrued expenses                             73           (11,417)               --
     Due to affiliates                                            124,966            72,310                --
     Due to shareholders                                               --          (122,261)               --
                                                           --------------    --------------    --------------
        NET CASH UTILIZED BY OPERATING ACTIVITIES              (1,102,889)         (913,364)               --
                                                           --------------    --------------    --------------


CASH FLOWS FROM INVESTING ACTIVITIES
     Payment regarding license                                   (150,000)               --                --
     Capital expenditures                                         (30,000)          (30,000)               --
                                                           --------------    --------------    --------------
        NET CASH UTILIZED BY INVESTING ACTIVITIES                (180,000)          (30,000)               --
                                                           --------------    --------------    --------------


CASH FLOWS FROM FINANCING ACTIVITIES:
     Issuance of common stock to founders                          65,760                --                --
     Proceeds from private placement of common stock              965,106           805,106                --
     Cash received in merger                                      300,000                --                --
                                                           --------------    --------------    --------------
        NET CASH PROVIDED BY FINANCING ACTIVITIES               1,330,866           805,106                --
                                                           --------------    --------------    --------------

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS               47,977          (138,258)               --

         Cash, beginning of period                                     --           186,235                --
                                                           --------------    --------------    --------------

CASH, END OF PERIOD                                        $       47,977    $       47,977    $           --
                                                           ==============    ==============    ==============
</TABLE>

                            See accompanying notes.

                                                                         Page 5.

<PAGE>

                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2004

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 3) for the formula of a proprietary  medical discovery relating
            to the  liver.  Organetix  intends  to  patent,  research,  develop,
            produce  and sell this  proprietary  liver  product  initially  as a
            nutra-ceutical/herbal  supplement,  referred to as "A4+L  Compound".
            This liver product has been used specifically to treat patients with
            Hepatitis C. 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  September  30,  2004  and the
            results of its  operations and its cash flows for the nine and three
            months ended  September 30, 2004 and the period from  inception (May
            28, 2003) to  September  30,  2004.  Operating  results for the nine
            months ended  September 30, 2004 are not  necessarily  indicative of
            the results  that may be expected  for the year ended  December  31,
            2004.

            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, 2003, 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.



NOTE 2 -    DUE TO AFFILIATE/SHAREHOLDERS:

            The  Company  is  indebted  to certain  of its  shareholders  and an
            affiliate,  Amma  Corporation,   for  expenses  (administrative  and
            managerial   costs)   incurred  in  connection  with  the  Company's
            operations from inception.  These amounts are  non-interest  bearing
            and are payable on demand.

                                                                         Page 6.

<PAGE>

\                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                 NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS
                               SEPTEMBER 30, 2004


NOTE 3 - 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, to the Company, 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,  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.


NOTE 4 -    STOCKHOLDERS' EQUITY:

            The Company has authorized  100 million shares of common stock,  par
            value $.0001 per share.

            During the  quarter  ended  March 31,  2004,  the  Company  received
            $125,000 in exchange for the issuance of 1,000,000  shares of common
            stock.  The Company also issued  855,400 common shares for aggregate
            net proceeds of $98,057.  The Company  declared a 10% stock dividend
            and accordingly issued 3,017,401 shares of common stock.

            During  the  quarter  ended  June 30,  2004,  the  Company  received
            $553,608 for the issuance of 3,227,313  shares of common stock.  The
            Company  also issued  85,714  shares of common  stock as payment for
            professional fees in the amount of $6,000.

            During the quarter ended  September 30, 2004,  the Company  received
            $7,000  for the  issuance  of  100,000  shares of common  stock,  in
            addition to $20,000 also  contributed by this investor.  The Company
            also  issued   57,143   shares  of  common   stock  as  payment  for
            professional fees in the amount of $8,000.

                                                                         Page 7.

<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 is a biotechnology  company that has the exclusive  worldwide  license
for the  formula  of a  proprietary  medical  discovery  relating  to the liver.
Organetix  will patent,  research,  develop,  produce and sell this  proprietary
liver  product  initially as a  nutraceutical.  This liver product has been used
specifically to treat patients with Hepatitis C. Limited research shows that the
product  regenerates  liver tissue thus allowing the liver to begin  functioning
again  despite  years of damage from the virus.  Therefore,  this product may be
useful for  treating all liver  disorders  including  cirrhosis  and may someday
eliminate  most liver  transplants.  Much like insulin  being used for diabetes,
this proprietary  liver product does not cure Hepatitis C but has the capability
of regenerating the liver.

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 will directly  compete in a billion dollar market that currently  exists
around the world.  Additional testing will be ongoing. Analog products will also
be evaluated.

Organetix will  specialize in  researching,  developing and patenting  bioactive
compounds and their unique  formulas and  processes  from plants having a unique
history of medicinal use. We feel that  Nutraceuticals  and Bioceuticals are the
foundations for the new and exciting drugs to be discovered in the 21st Century.

The following describes the Company's immediate priorities:

o     Register patents and research synthesis of the existing nutraceuticals and
      bioceuticals from the licensed liver product;
o     Complete a larger  clinical  study of Hepatitis C patients  suffering from
      severe symptoms and late stages of liver disease;
o     Sub-license,  market and  distribute  the  licensed  liver  products  with
      strategic partners;
o     Develop  new  nutraceuticals  and  bioceuticals  from the  licensed  liver
      product.

                                                                         Page 8.
<PAGE>


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

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 period from inception to September 30, 2004  aggregated
$1,216,938.  This  includes  costs  incurred  in  research  and  development  of
$529,901,  operating  expenses for our research facility in Peru of $111,930 and
fees paid to various  professionals for research as well as to our attorneys and
accountants  in the collective  amount of $282,034.  As a result of the above we
realized a cumulative loss of $1,216,938 or $.02 per share.

Operating  costs for the nine-month  period ended  September 30, 2004 aggregated
$822,256.  This includes costs incurred in research and development of $410,675,
operating expenses for our research facility in Peru of $68,670 and fees paid to
various  professionals  for research as well as to our attorneys and accountants
in the  collective  amount of  $157,065.  As a result of the above we realized a
loss of $822,256 for the nine-month  period ended September 30, 2004 or $.01 per
share.

Organetix,  Inc.'s Board of Directors has appointed Dr. Jose Cabanillas to serve
as Executive Vice President of Research and Development. Dr. Cabanillas has been
a speaker at conferences and seminars and has several  credited  publications in
relevant journals.  Using Integrative  Medicine,  his practice incorporates both
modern  biomedicine  and natural  healing  methods.  Dr.  Cabanillas,  through a
variety of roles,  has in the past been  active with the  University  of British
Columbia in  Vancouver,  Canada.  He recently  lectured to Cornell  University's
pre-med  students at their  bio-diversity  laboratory  in Punta Cana,  Dominican
Republic.

In addition,  Organetix,  Inc.'s Board of Directors  has  appointed  Mr.  Robert
Howell to serve as Executive Vice  President and Chief  Financial  Officer.  Mr.
Howell is a senior  executive  with extensive  management  experience in all key
areas of running  first class  organizations.  He has  provided  leadership  for
corporate  strategic  planning,  acquisitions,  and the  development of critical
partnerships and has participated in all operational  improvement  projects.  In
his recent past,  Mr.  Howell had been  President,  CEO, COO, and earlier in his
past was the Vice  President  of Finance and  Treasurer/Secretary  of a national
private  company  with  over  $80  million  in  sales  per  year.  Some  of  his
accomplishments included building and leading a team that took a company from $5
million in sales and 25 employees  to a group of  companies  with $80 million in
sales  and  over  250  employees.  Profitability  increased  5  -  9  times.  He
formulated,  developed and created an infrastructure which included new software
technology  and five new  buildings.  Mr.  Howell  headed up a team to write and
execute a strategic five-year business plan, offering  memorandums and financing
proposals.  These new  initiatives  were used to formalize  more products and to
develop and  implement  a  corporate  governance/risk  analysis  strategy  which
resulted  in a more  productive  approach  to risk  management.  Mr.  Howell was
admitted into the Society of Management Accountants of Alberta in 1982.

Organetix,  Inc.  has also  appointed  Mr.  Dennis Chan to serve as an Executive
Assistant.   Mr.  Chan  has  over  12  years  of  business   experience  in  the
pharmaceutical,  information  technology  (IT)  and oil and gas  industries.  He
gained  international  business  experience  working in Asia for Merck Sharp and
Dohme  (Merck & Co.)  where he  assisted  in  setting  up six Asian  offices  in
countries  including  China,  Korea  and the  Philippines.  Returning  to  North
America,  Mr. Chan joined Trans Canada Corp.,  a leading North  American  energy
company  with  over  2,300  employees  where he was  responsible  for  strategic
planning of their IT  infrastructure,  and integrating  systems and processes of
merged and  acquired  companies.  In addition,  he  structured  numerous  vendor
agreements  and  managed a portion of Trans  Canada's IT  outsourcing  contract,
which was awarded to IBM. Mr. Chan has a wealth of  cross-discipline  experience
and is very adaptive to new environments and cultures. Mr. Chan graduated with a
Bachelor of Commerce degree from the University of Calgary.

                                                                         Page 9.

<PAGE>

The Company currently maintains a D & O insurance policy with AIG and intends to
continue to add new members to the management team and additional members to the
Board of Directors.

The Company is now formalizing  discussions with certain  investment bankers and
has  received a  proposed  term sheet for up to  $5,000,000  from a NASD  member
broker-dealer.  The funding is based on the recent  positive test results on the
Company's  A4+L  liver  product.   The  study  was  designed  to  determine  the
effectiveness  of A4+L on the quality of life of Hepatitis C patients.  The test
was  designed by  independent  doctors in the USA and Peru and was  conducted in
Peru.

Based on the  results  reported  by the  doctors,  who tested and  examined  the
patients,  the  Company has decided  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.

A recent 10 patient  study  reported a significant  increase in the  prothrombin
activity  and  the  serum  cholinesterase,   which  suggests  increased  protein
synthesis by the liver and a decrease in the degradation of the liver.  Clinical
research  suggests it is  regenerating  liver tissue thus  allowing the liver to
begin functioning again despite years of damage from the virus.

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."

Upon the  successful  completion  of  funding,  the  Company  intends to use the
proceeds to fund additional research, clinical studies, patents,  acquisition of
intellectual  property  and working  capital.  The funding is subject to certain
conditions including the execution of a definitive Placement Agent Agreement.

The  Company  has  already  commenced  the  phytochemistry  and  the  technology
processes relating to the A4+L product.


LIQUIDITY AND CAPITAL RESOURCES

From  inception  through  September  30, 2004,  net cash used to fund  operating
activities totaled $1,102,889, net cash utilized by investing activities totaled
$180,000 and net cash provided by financing  activities totaled $1,330,866.  For
the nine-month  period ended September 30, 2004, net cash used to fund operating
activities  totaled  $913,364  and net cash  provided  by  financing  activities
totaled $805,106.

The Company has not generated  revenues and has financed its  operations to date
through the sale of  securities  and has received  $965,106 from such sales from
inception to September  30, 2004.  To date,  the Company has also paid  $150,000
towards its license for the A4+L compound. As a result, cash on hand was $47,977
as of September 30, 2004.

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.  Current  discussions  are
ongoing  with a  number  of  potential  funding  sources  and we  hope to have a
definitive funding agreement in place within the next 30 days.

                                                                        Page 10.

<PAGE>


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.  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 September 30, 2004, 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.

CHANGES IN INTERNAL  CONTROLS.  There were no changes in internal  controls over
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.

                                                                        Page 11.

<PAGE>

                                     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

         Exhibit 31.1 Certification of President and Principal Financial Officer

         Exhibit 32.2 Certification  of   Chief  Financial  Officer  and  Chief
                      Executive 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: President, Chief Financial Officer and Chairman of the Board
Date:  November 15, 2004

                                                                        Page 12.