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 March 31, 2006
                        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 May 18, 2006, was 86,382,447.

                             See accompanying notes

                                       1
<PAGE>

                                 ORGANETIX, INC.
                                 ---------------
                           A DEVELOPMENT STAGE COMPANY


                                                                         PAGE(S)
                                                                         -------

PART I    FINANCIAL INFORMATION

Item 1.   Financial Statements:

           Balance Sheets - March 31, 2006 and December 31, 2005              3.

           Statements of Operations - Three Months Ended March 31, 2006
           and 2005 and the
            Period from Inception (May 28, 2003) to March 31, 2005            4.

           Statements of Cash Flows - Three Months ended March 31, 2006
           and 2005 and the
            Period from Inception (May 28, 2003) to March 31, 2006            5.

           Notes to Interim Financial Statements                              6.

Item 2.   Management's Discussion and Analysis of Financial Condition and
          Results of Operations                                              13.

Item 3.   Controls and Procedures                                            17.


PART II   OTHER INFORMATION

          Signatures                                                         18.

          Exhibits                                                           18.

                             See accompanying notes


                                       2
<PAGE>

                         PART 1 - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

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

<TABLE>
<CAPTION>
                                                                                    MARCH 31, 2006  DECEMBER 31, 2005
                                                                                      (UNAUDITED)       (AUDITED)
                                                                                    --------------  -----------------

                                     ASSETS
<S>                                                                                            <C>               <C>
CURRENT ASSETS:
Cash                                                                                 $     1,762       $     3,279
Research and development supplies                                                              0                 0
Prepaid expenses                                                                           7,543            18,859
                                                                                     -----------       -----------
TOTAL CURRENT ASSETS                                                                 $     9,305       $    22,138

FIXED ASSETS:
Transportation equipment - Net accumulated depreciation of $17,500 and $15,000
respectively                                                                              12,500            15,000

OTHER ASSETS:
License agreement - net of accumulated amortization of $166,937.50 and $153,250
respectively                                                                           2,023,063         2,036,750
                                                                                     -----------       -----------
TOTAL ASSETS                                                                         $ 2,044,868       $ 2,073,888
                                                                                     ===========       ===========

                      LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
Convertible Note Payable                                                             $   150,000       $   150,000
Note payable to an individual                                                             16,200            16,200
Accounts payable                                                                         227,016           157,152
Accrued salaries to officers                                                             558,966           483,966
Interest Payable                                                                          23,116            15,720
Due to related parties                                                                   181,093           161,480
                                                                                     -----------       -----------
TOTAL CURRENT LIABILITIES                                                            $ 1,156,391       $   984,518
                                                                                     -----------       -----------

COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
Common stock, $.0001 par value; 150,000,000 shares authorized; 86,382,447 and
84,962,447 shares issued and outstanding in 2005 and 2004, respectively                    8,638             8,638
Additional paid-in capital                                                             3,985,099         3,985,099
Deficit accumulated during the development stage                                      (3,105,260)       (2,904,367)
                                                                                     -----------       -----------
TOTAL SHAREHOLDERS EQUITY                                                            $   888,477       $ 1,089,370
                                                                                     -----------       -----------

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY                                            $ 2,044,868       $ 2,073,888
                                                                                     ===========       ===========
</TABLE>


                             See accompanying notes

                                       3
<PAGE>

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

<TABLE>
<CAPTION>

                                              THREE MONTHS        THREE MONTHS    FOR THE PERIOD
                                             ENDED MARCH 31,     ENDED MARCH 31,  FROM INCEPTION
                                                  2006                2005       (MAY 28, 2003) TO
                                                                                   MAR. 31, 2006
                                             ----------------------------------- -----------------
<S>                                           <C>                <C>                <C>
REVENUES                                      $         --       $         --       $         --
                                             --------------      --------------     --------------

COSTS AND EXPENSES:

Operating expenses - research facility        $     18,600       $     22,626       $    229,659
Research and development expenses                   66,139            113,817          1,183,156
Consulting fees                                     45,000             45,000            423,528
Professional fees                                   11,380             14,528            321,880
Travel and accommodations                            3,532             13,201            124,242
Telephone                                            2,252              2,614             34,724
Interest expense                                     7,530                  0             45,920
Insurance                                           11,326             12,137             92,698
Rent                                                 3,701              3,481             36,766
Shipping expense                                       786                560              6,929
Office and other expense                            14,031             20,072            149,670
Marketing and public relations                         426             60,542            271,650
Depreciation and amortization expense               16,188             16,188            184,438
                                             --------------      --------------     --------------
                                              $    200,891       $    324,766       $  3,105,260
                                             --------------      --------------     --------------


NET LOSS                                      $   (200,891)      $   (324,766)      $ (3,105,260)
                                             ==============      ==============     ==============


LOSS PER SHARE:

Basic and diluted                                     (.01)             (0.01)             (0.05)
                                             ==============      ==============     ==============

Weighted average number of common shares
outstanding                                     86,382,447         84,962,447         64,773,574
                                             ==============      ==============     ==============
</TABLE>


                             See accompanying notes


                                       4
<PAGE>

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

<TABLE>
<CAPTION>
                                                                                                                FOR THE PERIOD
                                                                             THREE MONTHS      THREE MONTHS     FROM INCEPTION
                                                                             ENDED MAR. 31,    ENDED MAR. 31,  (MAY 28, 2003) TO
                                                                                  2006              2005         MAR. 31, 2006
                                                                             --------------    --------------  -----------------
<S>                                                                           <C>               <C>               <C>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS:

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss                                                                      $  (200,891)      $  (324,766)      $(3,105,260)
Adjustment to reconcile net loss to net cash utilized by operating
activities:
Depreciation and amortization                                                      16,188            16,188           184,438
Compensatory shares                                                                     0            52,500           324,111
Changes in assets and liabilities:
Research and development supplies                                                       0             5,221                 0
Prepaid expenses                                                                   11,315             2,698            (7,544)
Accounts payable                                                                   69,863            32,695           227,016
Accrued salaries to officers                                                       75,000            45,000           558,966
Due to shareholders                                                                19,612                 0           181,093
Increase in accrued interest                                                        7,396                 0            23,116
                                                                              -----------       -----------       -----------

                               NET CASH UTILIZED BY OPERATING ACTIVITIES      $    (1,517)      $  (170,464)      $(1,614,064)
                                                                              -----------       -----------       -----------

CASH FLOWS FROM INVESTING ACTIVITIES


Payment regarding license                                                     $         0       $         0       $  (150,000)
Capital expenditures                                                          $         0                 0           (30,000)
                                                                              -----------       -----------       -----------


                               NET CASH UTILIZED BY INVESTING ACTIVITIES      $         0       $         0       ($  180,000)
                                                                              -----------       -----------       -----------

CASH FLOWS FROM FINANCING ACTIVITIES:


Issuance of common stock to founders                                          $         0       $         0       $    65,760
Additional Contribution to Capital                                            $         0           124,000         1,263,866
Cash received in merger                                                       $         0                 0           300,000
Convertible Note Payable                                                      $         0                 0           150,000
Note Payable to Individual                                                    $         0                 0            16,200
                                                                              -----------       -----------       -----------


                               NET CASH PROVIDED BY FINANCING ACTIVITIES      $         0       $   124,000       $ 1,795,826
                                                                              -----------       -----------       -----------


NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                          $    (1,517)      $   (46,464)      $     1,762
Cash, beginning of period                                                           3,279            57,495                 0
                                                                              -----------       -----------       -----------
                                                     CASH, END OF PERIOD      $     1,762       $    11,031       $     1,762
                                                                              -----------       -----------       -----------
</TABLE>

                             See accompanying notes

                                       5
<PAGE>

                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2006

NOTE 1 - DESCRIPTION OF COMPANY/OPERATIONS

            Organetix, Inc. ("the Company" or "Organetix"), a Delaware
            Corporation, was incorporated on May 28, 2003.

            Organetix is a biotechnology company that has the exclusive
            worldwide license (see Note 8) 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. 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 many
            liver disorders, and may also be useful as an anti-ager and
            anti-toxin. 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.

            As shown in the accompanying financial statements, the Company has
            incurred net losses of $3,105,260 since inception and has a negative
            working capital of $1,147,086 at March 31, 2006. Management's plans
            include raising of capital through the equity markets to fund
            operations, and the generating of revenue through its business.
            Failure to raise adequate capital and generate adequate sales
            revenues could result in the Company having to curtail or cease
            operations. Additionally, even if the Company does raise sufficient
            capital to support its operating expenses and generate adequate
            revenues, there can be no assurances that the revenue will be
            sufficient to enable it to develop to a level where it will generate
            profits and cash flows from operations. These matters raise
            substantial doubt about the Company's ability to continue as a going
            concern. However, the accompanying financial statements have been
            prepared on a going concern basis, which contemplates the
            realization of assets and satisfaction of liabilities in the normal
            course of business. These financial statements do not include any
            adjustments relating to the recovery of the recorded assets or the
            classifications of the liabilities that might be necessary should
            the Company be unable to continue as a going concern.

                                       6
<PAGE>

                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2006

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

            The Company's accounting policies are in accordance with accounting
            principles generally accepted in the United States of America.
            Outlined below are those policies considered particularly
            significant.

      (A)   USE OF ESTIMATES:

            In preparing financial statements in accordance with accounting
            principles generally accepted in the United States of America,
            management makes certain estimates and assumptions, where
            applicable, that affect the reported amounts of assets and
            liabilities and disclosures of contingent assets and liabilities at
            the date of the financial statements, as well as the reported
            amounts of revenues and expenses during the reporting period. While
            actual results could differ from those estimates, management does
            not expect such variances, if any, to have a material effect on the
            financial statements.

      (B)   STATEMENTS OF CASH FLOWS:

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

      (C)   FAIR VALUE:

            The Company's financial instruments consist primarily of cash and
            cash equivalents and accounts payable. The recorded values of cash
            and cash equivalents and accounts payable approximate their fair
            values based on their short-term nature.

      (D)   FIXED ASSETS:

            Fixed assets are recorded at cost. Depreciation and amortization are
            provided on a straight-line basis over 5 years.

      (E)   AMORTIZATION - LICENSE AGREEMENT:

            The cost of the license (see Note 6) is being amortized on the
            straight-line method over its contractual life of 40 years.
            Intangible assets that do not have indefinite lives are amortized
            over their useful lives and reviewed for impairment in accordance
            with SFAS No. 144 "Accounting for the Impairment or Disposal of
            Long-Lived Assets". As of December 31, 2005, the Company believes
            that the carrying value of this license is fully recoverable.

      (F)   RESEARCH AND DEVELOPMENT EXPENSES:

            Research and development costs are charged to expense when incurred
            and aggregated $66,139 and $113,817 for the three months ended March
            31, 2006 and March 31, 2005 respectively. For the period from
            inception to March 31, 2006, the Company has incurred and aggregated
            research and development costs of $1,183,156.

                                       7
<PAGE>

                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2006

      (G)   INCOME TAXES:

            The asset and liability method is used in accounting for income
            taxes. Under this method, deferred tax assets and liabilities are
            recognized for operating loss and tax credit carry forwards and for
            the future tax consequences attributable to differences between the
            financial statement carrying amounts of existing assets and
            liabilities and their respective tax bases. Deferred tax assets and
            liabilities are measured using enacted tax rates expected to apply
            to taxable income in the years in which those temporary differences
            are expected to be recovered or settled. The effect on deferred tax
            assets and liabilities of a change in tax rates is recognized in the
            results of operations in the period that includes the enactment
            date. A valuation allowance is recorded to reduce the carrying
            amounts of deferred tax assets unless it is more likely than not
            that such assets will be realized.

      (H)   LOSS PER SHARE:

            Basic and diluted earnings (loss) per common share is computed using
            the weighted average number of shares of common stock outstanding
            for the period.

      (I)   RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY:

            In December 2004, the FASB issued SFAS No. 123 (revised 2004), or
            SFAS 123R, "Share-Based Payment." This statement replaces SFAS 123,
            "Accounting for Stock-Based Compensation" and supersedes Accounting
            Principles Board's Opinion No. 25 (ABP 25), "Accounting for Stock
            Issued to Employees." SFAS 123R will require us to measure the cost
            our employee stock-based compensation awards granted after the
            effective date based on the grant date fair value of those awards
            and to record that cost as compensation expense over the period
            during which the employee is required to perform services in
            exchange for the award (generally over the vesting period of the
            award). SFAS 123R addresses all forms of share-based payments
            awards, including shares issued under employee stock purchase plans,
            stock option, restricted stock and stock appreciation rights. In
            addition, we will be required to record compensation expense (as
            previous awards continue to vest) for the unvested portion of
            previously granted awards that remain outstanding at the date of
            adoption. SFAS 123R is effective for fiscal periods beginning after
            June 15, 2005. Therefore, we are required to implement the standard
            no later than our third fiscal quarter, which begins on July 1,
            2005. SFAS 123R permits public companies to adopt its requirements
            using the following methods: (1) a "modified prospective" method in
            which compensation cost is recognized beginning with the effective
            date (a) based on the requirements of SFAS 123R for all share-based
            payments granted after the effective date and (b) based on the
            requirements of SFAS 123 for all awards granted to employees prior
            to the effective date of SFAS 123R that remain unvested on the
            effective date; or (2) a "modified retrospective" method which
            includes the requirements of the modified prospective method
            described above, but also permits entities to restate their
            financial statements based on the amounts previously recognized
            under SFAS 123 for purposes of pro forma disclosures for either (a)
            all prior periods presented or (b) prior interim periods of the year
            of adoption.

            In December 2004, the FASB issued Statement of Financial Accounting
            Standards No. 153 (SFAS 153), "Exchanges of Non-monetary Assets."
            SFAS 153 amends the guidance in APB No. 29, "Accounting for
            Non-monetary Assets." APB No. 29 was based on the principle that
            exchanges of non-monetary assets should be measured on the fair
            value of the assets exchanged. SFAS 153 amends APB No. 29 to
            eliminate the exception for non-monetary exchanges of similar
            productive assets and replaces it with a general exception for
            exchanges of non-monetary assets that do not have commercial
            substance if the future cash flows of the entity are expected to
            change significantly as a result of the exchange. SFAS 151 is
            effective for financial statements issued for fiscal years beginning
            after June 15, 2005. The adoption of SFAS 153 is not expected to
            have a material effect on the Company's financial position or
            results of operations.

            In May 2005, the FASB issued SFAS no. 154, "Accounting Changes and
            Error Corrections ("SFAS No 154") which replaces APB Opinion No. 20,
            "Accounting changes" and SFAS No. 3, "Reporting Accounting Changes
            in Interim Financial Statements-An Amendment of ABP Opinion No. 28.
            SFAS No. 154 provides guidance on the accounting for and reporting
            of accounting changes and error corrections. Specifically, this
            statement requires "retrospective application" of the direct effect
            for a voluntary change in accounting principle to prior periods'

                                       8
<PAGE>

                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2006

            financial statements, if it is practical to do so. SFAS No. 154 also
            strictly defines the term "restatement" to mean the correction of an
            error revising previously issued financial statements. SFAS No. 154
            is effective for accounting changes and corrections of errors made
            in fiscal years beginning after December 15, 2005 and are required
            to be adopted by the Company in the first quarter of fiscal year
            2007. Although we will continue to evaluate the application of SFAS
            No. 154, management does not currently believe adoption will have a
            material impact on our results of operations, financial position or
            cash flows.

NOTE 3 - RESEARCH AND DEVELOPMENT SUPPLIES:

            As of December 31, 2004, the Company had $72,108 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 along with other required testing.
            During 2005, the existing inventory had been utilized for the
            continued product testing.

NOTE 4 - CONVERTIBLE NOTE PAYABLE:

            On July 6, 2005 the Company entered into three convertible
            promissory notes with three individuals who are also shareholders of
            the Company for an aggregate of $150,000. The note was to bridge the
            Company for 90 days while it closed a proposed private placement
            memorandum with an investment banker in New Jersey, which did not
            materialize due to a significant drop in the Company's share price
            in the second quarter of 2005. The note bears interest at the rate
            of 20% per annum and was due within 90 days of the note date. The
            note is currently in default. Additionally, these individuals
            received 150,000 shares of the Company's restricted common stock as
            additional consideration for making an unsecured loan to the
            Company.

            The terms of the conversion were based upon the proposed private
            placement memorandum which did not materialize and thus the Company
            does not have definitive conversion terms. The Company plans to
            reach amicable terms with the note holders relating to the terms of
            conversion or the Company will re-pay the $150,000 plus interest
            accrued.

NOTE 5 - NOTE PAYABLE TO INDIVIDUAL:

            The Company in April 2005 borrowed $16,200 from an individual who is
            also a shareholder of the Company. This amount represents advances
            for working capital in order to continue operations. The loan is
            non-interest bearing to December 31, 2005, is unsecured and has no
            specific repayment date.

NOTE 6 - RELATED PARTY TRANSACTIONS:

            At March 31, 2006 the Company is indebted to the President, Chief
            Executive Officer and Director through his related companies for
            $181,093. This amount represents advances for working capital in
            order to continue operations. These advances as of March 31, 2006
            are non-interest bearing, have no specific maturity date and are
            unsecured.

                                       9
<PAGE>

                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2006

NOTE 7 - INCOME TAXES:

<TABLE>
<CAPTION>
                                                                                 2005                 2004
   Deferred tax assets and liabilities consist of the following:           ----------------     ----------------
<S>                                                                        <C>                  <C>
   Deferred tax assets:
     Net operating loss carry forwards                                     $      675,000       $       555,000

     Less valuation allowance                                                    (675,000)             (555,000)
                                                                           ----------------     ----------------
                                                                           $           --       $            --
                                                                           ================     ================
</TABLE>

            At December 31, 2005, the Company had approximately $2,700,000 of
            net operating loss carry forwards ("NOL's") available, which expires
            in years beginning in 2021. The Company has provided a 100%
            valuation allowance on the deferred tax assets at December 31, 2005
            and 2004 to reduce such asset to zero, since there is no assurance
            that the Company will generate future taxable income to utilize such
            asset. Management will review this valuation allowance requirement
            periodically and make adjustments as warranted.


NOTE 8 - 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 rights, 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.

                                       10
<PAGE>

                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2006

NOTE 9 - SHAREHOLDERS' EQUITY:

            The Company has authorized 150 million shares of common stock, par
            value $.0001 per share.

            The following shares, aggregating 64,000,000, were issued in
            connection with the share exchange agreement described in Note 1:
            (i) in May 2003, the Company issued 7,200,000 shares of common stock
            to its founders, at a per share price of $.01, for aggregate
            proceeds of $72,000 of which $6,240 had not been received as of
            December 31, 2003, but was received by June 2004, (ii) in June 2003,
            the Company began offering its common stock in a private offering of
            such securities and, generated proceeds of $160,000, for the sale of
            640,000 shares of its common stock at a per share price of $.25;
            (iii) in July 2003, the Company issued 8,160,000 shares of its
            common stock in connection with the assignment of a license
            agreement (see Note 8). These shares were deemed to have a fair
            value of $.25 per share at the time of issuance, and in November
            2003, the Company issued an additional 48 million shares pursuant to
            the share exchange agreement.

            During the year ended December 31, 2004, the Company declared and
            paid a 10% stock dividend to all shareholders, excluding the
            majority shareholder, AMMA Corporation, issuing 3,017,584 shares of
            its common stock in connection therewith. The Company also received
            $479,866 in proceeds from the sales of 5,439,990 shares of its
            common stock. In partial payment for legal services received, the
            Company issued 142,857 shares of common stock valued at $10,000. In
            connection with the reverse merger with Diamond International, Inc.,
            Sylvio 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 year, 2,500,000
            shares were sold and transferred to 20 persons generating $500,000
            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, $131,970, was recorded as
            additional paid-in capital.

            On January 2, 2004, the majority shareholder approved the adoption
            of the 2004 Omnibus Stock Option Plan under which 5,000,000 shares
            of Company common stock have been reserved for issuance. To date, no
            options have been granted under this plan.

            During the year ended December 31, 2005, in connection with the
            reverse merger with Diamond International, Inc. in 2003, Sylvio
            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 twelve months ending December
            31, 2005, 620,000 shares were issued to 7 persons for services
            rendered for a total of $124,000 of proceeds, which were then
            contributed to the Company as additional paid-in capital.

            In July 2005, 150,000 shares of common stock valued at $22,485 were
            issued in connection with a bridge note (see Note 5). In August
            2005, 470,000 shares of common stock value at $65,853 were issued
            for services rendered to the Company. In November 2005, 800,000
            shares of common stock value at $39,920 were issued for services
            rendered to the Company.

                                       11
<PAGE>

                                 ORGANETIX, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                 MARCH 31, 2006

NOTE 10 - COMMITTMENTS:

            LEASES:

            The Company leases space on a month-to-month basis in Calgary,
            Alberta, for its main offices, and in Peru, for manufacturing,
            research, bulk packaging and storage. Additional office space is
            also provided in New York, New York, by the Company's attorneys, at
            no cost. The Company is also renting on an annual basis a small
            business office located in Lima, Peru.

            EMPLOYMENT AGREEMENTS:

            On January 2, 2004, the Company entered into an Employment Agreement
            with Mr. L. B. (Brad) Clarke as a "senior executive" (the
            "Employment Agreement"). The Employment Agreement is for a 3-year
            term and provides for annual salaries of $120,000 for 2004, $180,000
            for 2005 and $240,000 for 2006. Other remuneration under the
            Employment Agreement is a $700 per month automobile allowance and 30
            days paid vacation. The Employment Agreement may be terminated for
            "cause". All salaries and automobile allowance have been accrued as
            payable but not paid. Please note Mr. Clarke has agreed not to
            accrue his annual salary for 2006 but to instead accrue the same
            amount as he accrued in 2005.




                                       12
<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.

RESULTS OF OPERATIONS
Due to the inability of the Company to close funding, the Company is in default
of its License Agreement dated July 15, 2003 with AMMA Corporation, and with the
assignment of a consulting agreement, dated June 1, 2001 with AMMA Corporation
relating to Dr. Jose Cabanillas. The Company is also in default of its
employment agreement with its President & CEO, L.B.(Brad) Clarke. The Company
has also not been able to pay its consulting obligations for Robert Howell,
Dennis Chan, John Garcia, as well as professional fees owed to the Company's
ex-auditors, Lazar Levine & Felix LLP and its present attorneys, Rubin, Bailin,
Ortoli LLP as well as its other accounts, loans and notes payable. To date all
parties have deferred payments owed to them in the hope that the Company will
successfully secure funding to pay back such debts and continue operations.

FUND RAISING ACTIVITIES
The Company hopes to finalize its fund raising activities in the second quarter
of 2006. The basic terms of such fund raising activities would be a minimum of
$500,000 and a maximum of $7,000,000 through a variable price convertible note,
merger and or the sale of common shares which may combine common stock and
warrants. If funding cannot be concluded the Company may have to file for
bankruptcy and or re-organize accordingly.

Otherwise, 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 March 31, 2006 aggregated
$3,105,260. This includes costs incurred in research and development of
$1,183,156, operating expenses for our research facility in Peru of $229,659 and
fees paid to various professionals for research as well as to our attorneys and
accountants in the collective amount of $321,880. As a result of the above we
realized a cumulative loss of $3,105,260.

Operating costs for the three-month period ended March 31, 2006 aggregated
$200,891. This includes costs incurred in research and development of $66,139,
operating expenses for our research facility in Peru of $18,600 and fees paid to
various professionals for research as well as to our attorneys and accountants
in the collective amount of $11,380. As a result of the above we realized a loss
of $200,891 for the three-month period ended March 31, 2006.

                                       13
<PAGE>

From inception through March 31, 2006, net cash used to fund operating
activities totaled $1,614,064, net cash utilized by investing activities totaled
$180,000 and net cash provided by financing activities totaled $1,795,826. Cash
on hand was $1,762 as of March 31, 2006.

ONGOING PRODUCT DEVELOPMENT AND PATENTING
The Company is continuing to prepare to file patents. Upon the closing of
sufficient funding, 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, sell, 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 other parts of the world. We are in the process of
researching, developing and preparing to patent 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.

HISTORY
Prior to November 7, 2003, Organetix, Inc. (the "Company") was in the direct
mail business and was named Diamond International Group, Inc. However, on such
date, pursuant to a Share Exchange Agreement between Diamond and Organetix, Inc.
and all of the shareholders of Organetix ("Exchange Agreement"), Diamond
acquired all of the shares of Organetix, Inc. from its shareholders in
consideration for the issuance of 64,000,000 restricted shares of Diamond to the
Organetix, Inc. shareholders (this transaction is referred to herein as the
"Exchange"). Pursuant to the Exchange Agreement: (i) Organetix, Inc. became a
wholly-owned subsidiary of Diamond; (ii) and Diamond divested itself of all of
its pre-Exchange assets to the pre-Exchange shareholders; (iii) Diamond changed
its name to Organetix, Inc.; (iv) Diamond changed its symbol to "OGTX"; and (v)
Sylvio Martini resigned as the sole director and officer of the Company and L.B.
(Brad) Clarke was appointed to the Board of Directors and named as President,
Chief Executive Officer and Chief Financial Officer of Diamond. The present
company shall sometimes be referred to as Organetix or the Company.

The Exchange was approved by the unanimous consent of the Board of Directors of
Diamond and by unanimous consent of the Board of Directors of Organetix on
October 31, 2003.

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.
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 and for patients taking chemotherapy. 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 many liver disorders, and may be useful
as an anti-ager and anti-toxin.

                                       14
<PAGE>

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 a 10 patient study completed in 2004 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 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."

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

In summary, to date Organetix Inc., has 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.

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.

                                       15
<PAGE>

A one hundred cell study, which was designed to investigate the possible
genotoxicity of A4+L liver product 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.

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. Similar results were reported on an inoperable
breast cancer patient in Calgary, Alberta, Canada while she was being treated
with FEC Chemotherapy to reduce large tumors so that she could undergo a
mastectomy.

DESCRIPTION OF PROPERTY
The Company's main facility is located at Suite 200, Manulife House, 603 - 7th
Avenue S.W., Calgary, Alberta T2P 2T5. This facility is rented on a month to
month basis by the Company. The Company is also sharing space at no cost to the
Company on a month to month basis with Rubin, Bailin, Ortoli LLP, located at the
15th floor of 405 Park Avenue, New York, New York 10022. This facility is
approximately 200 square feet. The Company is also renting on a month to month
basis a facility located at Alfonso Cobian Manzana "H" Lot #1, in the District
of Chaclalayo, near Lima, Peru. This facility is approximately 700 square meters
and is used for manufacturing, research, bulk packaging and storage. The Company
is also renting on an annual basis a small business office located at #302, 1080
Malecon de la Marina, Mita Flores, Lima, Peru. This facility is approximately 70
square meters.

LEGAL PROCEEDINGS
The Company is not a party to any material pending legal proceedings or
government actions, including any bankruptcy, receivership, or similar
proceedings. Management of the Company does not believe that there are any
proceedings to which any director, officer, or affiliate of the Company, any
owner of record of the beneficially or more than five percent of the common
stock of the Company, or any associate of any such director, officer, affiliate
of the Company, or security holder is a party adverse to the Company or has a
material interest adverse to the Company.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The Company's discussion and analysis of its financial condition and results of
operations are based upon 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.

                                       16
<PAGE>

RECENT ACCOUNTING PRONOUNCEMENTS AFFECTING THE COMPANY
In December 2004, the FASB issued SFAS No. 123 (revised 2004), or SFAS 123R,
"Share-Based Payment." This statement replaces SFAS 123, "Accounting for
Stock-Based Compensation" and supersedes Accounting Principles Board's Opinion
No. 25 (ABP 25), "Accounting for Stock Issued to Employees." SFAS 123R will
require us to measure the cost our employee stock-based compensation awards
granted after the effective date based on the grant date fair value of those
awards and to record that cost as compensation expense over the period during
which the employee is required to perform services in exchange for the award
(generally over the vesting period of the award). SFAS 123R addresses all forms
of share-based payments awards, including shares issued under employee stock
purchase plans, stock option, restricted stock and stock appreciation rights. In
addition, we will be required to record compensation expense (as previous awards
continue to vest) for the unvested portion of previously granted awards that
remain outstanding at the date of adoption. SFAS 123R is effective for fiscal
periods beginning after June 15, 2005. Therefore, we are required to implement
the standard no later than our third fiscal quarter, which begins on July 1,
2005. SFAS 123R permits public companies to adopt its requirements using the
following methods: (1) a "modified prospective" method in which compensation
cost is recognized beginning with the effective date (a) based on the
requirements of SFAS 123R for all share-based payments granted after the
effective date and (b) based on the requirements of SFAS 123 for all awards
granted to employees prior to the effective date of SFAS 123R that remain
unvested on the effective date; or (2) a "modified retrospective" method which
includes the requirements of the modified prospective method described above,
but also permits entities to restate their financial statements based on the
amounts previously recognized under SFAS 123 for purposes of pro forma
disclosures for either (a) all prior periods presented or (b) prior interim
periods of the year of adoption.


ITEM 3 - CONTROLS AND PROCEDURES


EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES.
As of March 31, 2006, 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.




                                       17
<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

         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

                                       18
<PAGE>

                                   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:  May 18, 2006


/s/ Robert C. Howell
-----------------------------
Name: Robert C. Howell
Title: Chief Financial Officer
Date: May 18, 2006




                                       19