----

----

----

----

|   | þ | Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended October 31, 2011 |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   |  ̈ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from __________ to __________. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| Nevada                          | 88-0380546             |
|---------------------------------|------------------------|
| (State or other jurisdiction of | (I.R.S. Employer       |
| incorporation or organization)  | Identification Number) |

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

----

----

----

**EXPLANATORY NOTE**

 

We are filing this Amendment No. 1 toAnnual Report on Form 10-K to amend and restate in its entirety our Annual Report on Form 10-K for the fiscal year ended October 31,2011 (this “Amendment”), as filed with the Securities and Exchange Commission (the “SEC”)on January 30, 2012 (the “10-K”). The purpose of this Amendment is solely to add dates to (a) the Reportof Independent Registered Accounting Firm (Page F-1), (b) the Signature Page (Page 41), (c) the Consent of Independent RegisteredPublic Accounting Firm (Exhibit 23.1), and (d) the certifications contained in Exhibits 31.1, 31.2 and 32.1, which were inadvertentlyleft undated in the 10-K., and modify the date of the Consent of Independent Registered Public Accounting Firm containedin Exhibit 23.2.

 

No changes have been made in this Amendmentto modify or update the other disclosures presented in the 10-K. This Amendment does not reflect events occurring after the filingof the original 10-K or modify or update those disclosures that may be affected by subsequent events.

 

 

|                                                                                                                | Page     |
|---------------------------------------------------------------------------------------------------------------------|----------|
|                                                                                                                |     |
| Part I                                                                                                              | 1        |
|                                                                                                                |     |
| Item 1. Business                                                                                                    | 1        |
| Item 1A. Risk Factors                                                                                               | 12       |
| Item 1B. Unresolved Staff Comments                                                                                  | 19       |
| Item 2. Properties                                                                                                  | 19       |
| Item 3. Legal Proceedings                                                                                           | 19       |
| Item 4. (Removed and Reserved)                                                                                      | 20       |
|                                                                                                                |     |
| Part II                                                                                                             | 21       |
|                                                                                                                |     |
| Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Securities | 21       |
| Item 6. Selected Financial Data                                                                                     | 23       |
| Item 7. Management’s Discussion and Analysis or Plan of Operation                                             | 23       |
| Item7A. Quantitive and Qualitative Disclosure about Market Risk                                                     | 28       |
| Item 8. Financial Statements and Supplementary Data                                                                 | 28       |
| Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                        | 28       |
| Item 9A. Controls and Procedures                                                                                    | 28       |
| Item 9B. Other Information                                                                                          | 29       |
|                                                                                                                |     |
| Part III                                                                                                            | 29       |
|                                                                                                                |     |
| Item 10. Directors, Executive Officers and Corporate Governance                                                     | 29       |
| Item 11. Executive Compensation                                                                                     | 31       |
| Item 12. Security Ownership of Certain Beneficial Owners and Related Stockholder Matters                            | 33       |
| Item 13. Certain Relationships and Related Transactions, and Director Independence                                  | 34       |
| Item 14. Principal Accounting Fees and Services                                                                     | 35       |
|                                                                                                                |     |
| Part IV                                                                                                             |  36 |
|                                                                                                                |     |
| Item 15. Exhibits, Financial Statement Schedules                                                                    | 36       |

----

----

|   | § | The QL Care Analyzer (the “QLCA”), a state-of-the-art proprietary Point-of-Care (“POC”) immunoassay analyzer; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | § | A series of immunoassay tests to detect cardiac markers (the “Cardiovascular Tests”); and, |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | § | Paramagnetic beads developed through its proprietary method, which improves their light collection (the “Beads”). |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

----

----

| Product                         |   | 2007   |   |   | 2008   |   |   | 2009   |   |   | 2010   |   |   | 2011   |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| IVD  (billions)       |   |   | 42.1   |   |   |   | 44.5   |   |   |   | 47.1   |   |   |   | 49.1   |   |   |   | 52.9 |   |
| Immunoassay Testing (billions)  |   |   | 4.185  |   |   |   | 4.435  |   |   |   | 4.695  |   |   |   | 4.975  |   |   |   | 5.260 |   |
| POC Testing (billions)          |   |   | 1.625  |   |   |   | 1.715  |   |   |   | 1.815  |   |   |   | 1.910  |   |   |   | 2.02 |   |
| Cardiac Marker Tests (millions) |   |   | 425    |   |   |   | 471.75 |   |   |   | 523.64 |   |   |   | 581.24 |   |   |   | 645.17 |   |

|                 |   | 2007   |   |   | 2006   |   |   | 2005   |   |
|----------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Abbott Diagnostics   |   |   | 2,100  |   |   |   | 1,900  |   |   |   | 1,800 |   |
| Siemans/Dade Behring |   |   | 825    |   |   |   | 785    |   |   |   | 750 |   |
| Siemens/Bayer        |   |   | 750    |   |   |   | 714    |   |   |   | 680 |   |
| Beckman Coulter      |   |   | 596    |   |   |   | 484    |   |   |   | 402 |   |
| Siemens/DPC          |   |   | 595    |   |   |   | 517    |   |   |   | 473 |   |
| Roche                |   |   | 575    |   |   |   | 509    |   |   |   | 450 |   |
| bioMérieux      |   |   | 363    |   |   |   | 362    |   |   |   | 353 |   |
| Fujirebio            |   |   | 299    |   |   |   | 277    |   |   |   | 279 |   |
| Ortho                |   |   | 200    |   |   |   | 190    |   |   |   | 160 |   |
| TOTAL                |   |   | 6,303  |   |   |   | 5,738  |   |   |   | 5,347 |   |

|   | · | Expanding opportunities after completion of the human genome project. |
|--------|--------|-----------------------------------------------------------------------|

|   | · | Demand for automated and sensitive POC immunoassay analyzers. |
|--------|--------|---------------------------------------------------------------|

|   | · | Search for an ideal POC platform. |
|--------|--------|-----------------------------------|

----

3 $6.685 million including infectious diseases  

  

----

|   | · | Increased mergers and acquisition among top tier IVD companies to achieve more complete product lines |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | Greater cooperation between test developers and top tier IVD companies. |
|--------|--------|-------------------------------------------------------------------------|

|   | · | The continued automation of routine immunoassays – thyroid, anemia, fertility, therapeutic drug monitoring and drugs of abuse; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | More new assays and test categories for disease risk evaluation.6 |
|--------|--------|-------------------------------------------------------------------|

----

  

----

----

----

----

| Test                                           |   | Description |
|------------------------------------------------|--------|-------------|
| Troponin I (TnI)                               |   | §      | TnI testing is the current routine testing for a heart attack. |
|                                           |   | §      | TnI is a heart muscle protein, released in the bloodstream shortly after a heart attack (myocardial infarction or MI). |
|                                           |   | §      | Current laboratory analyzers cannot detect TnI before 4-6 hours after the onset of symptoms, when TnI concentration in the blood reaches its detection threshold. |
|                                           |   | §      | Our test will take only 15 minutes to deliver quantitative results, allowing physicians to obtain much more rapid results and therefore accelerate patient triage. |
|                                           |   |        |   |
| Plasminogen Activator Inhibitor Type-1 (PAI-1) |   | §      | This test will help to optimize the performance of a heart drug (“tPA” or tissue Plasminogen Activator), a clot buster used as the first line of therapy for MI patients. |
|                                           |   | §      | This proprietary whole blood test will quantify PAI-1 levels within 15 minutes. |
|                                           |   | §      | Forty percent of patients do not respond to tPA, a fact recognized only after the “golden hour” (the time period in which permanent heart damage can be prevented) has passed. |
|                                           |   |        |   |
| Heart Failure Risk Stratification (HFRS)       |   | §      | We have discovered a family of related proteins that are released into the bloodstream during heart failure. |
|                                           |   | §      | We are developing a proprietary test, the Heart Failure Risk Stratification or HFRS test to stratify the risk of death in patients with heart failure, thus permitting the initiation of appropriate therapy at an early stage. |
|                                           |   |        |   |
| Heart Failure Genomics Risk (HFGR)             |   | §      | We are developing a proprietary HFGR test that predicts the response of heart failure patients to routinely administered drugs. |
|                                           |   | §      | The need to measure the precise response to these drugs in a timely manner would minimize the trial and error methods now used by doctors to optimize drugs best suited to each patient. |

----

|   | · | complete the development of our QLCA and our cardiovascular tests; |
|--------|--------|--------------------------------------------------------------------|

|   | · | obtain FDA approval of our QLCA and the cardiovascular tests; |
|--------|--------|---------------------------------------------------------------|

|   | · | develop further tests that can be run on our QLCA; |
|--------|--------|----------------------------------------------------|

|   | · | commercialize our Beads. |
|--------|--------|--------------------------|

----

----

|   | · | Biosite Diagnostics Incorporated; |
|--------|--------|-----------------------------------|

|   | · | Response Biomedicals Corp.; |
|--------|--------|-----------------------------|

|   | · | Roche POC division; and |
|--------|--------|-------------------------|

|   | · | i-Stat division of Abbott Diagnostics |
|--------|--------|---------------------------------------|

----

----

----

|   | • | continued scientific progress in our research and development programs; |
|--------|---------|-------------------------------------------------------------------------|

|   | • | costs and timing of conducting clinical trials and seeking regulatory approvals and patent prosecutions; |
|--------|---------|----------------------------------------------------------------------------------------------------------|

|   | • | competing technological and market developments; |
|--------|---------|--------------------------------------------------|

|   | • | our ability to establish additional collaborative relationships; and |
|--------|---------|----------------------------------------------------------------------|

|   | • | the effect of commercialization activities and facility expansions if and as required. |
|--------|---------|----------------------------------------------------------------------------------------|

----

----

----

| • | changes in foreign medical reimbursement policies and programs; |
|---------|-----------------------------------------------------------------|

| • | multiple foreign regulatory requirements that are subject to change and that could restrict our ability to manufacture, market, and sell our products; |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| • | differing local product preferences and product requirements; |
|---------|---------------------------------------------------------------|

| • | trade protection measures and import or export licensing requirements; |
|---------|------------------------------------------------------------------------|

| • | difficulty in establishing, staffing, and managing foreign operations; |
|---------|------------------------------------------------------------------------|

| • | differing labor regulations; |
|---------|------------------------------|

| • | potentially negative consequences from changes in or interpretations of tax laws; |
|---------|-----------------------------------------------------------------------------------|

| • | political and economic instability; |
|---------|-------------------------------------|

| • | inflation, recession and fluctuations in foreign currency exchange and interest rates; and, |
|---------|---------------------------------------------------------------------------------------------|

| • | compulsory licensing or diminished protection of intellectual property. |
|---------|-------------------------------------------------------------------------|

| • | Changes in or interpretations of laws and regulations including changes in accounting standards, taxation requirements and environmental laws in domestic or foreign jurisdictions. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Changes in the rate of inflation (including the cost of raw materials, commodities, and supplies), interest rates and the performance of investments held by us. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Changes in the creditworthiness of counterparties that transact business with or provide services to our distributors or us. |
|---------|------------------------------------------------------------------------------------------------------------------------------|

| • | Changes in business, economic, and political conditions, including: war, political instability, terrorist attacks in the U.S. and other parts of the world, the threat of future terrorist activity in the U.S. and other parts of the world and related military action; natural disasters; the cost and availability of insurance due to any of the foregoing events; labor disputes, strikes, slow-downs, or other forms of labor or union activity; and, pressure from third-party interest groups. |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Changes in our business units and investments and changes in the relative and absolute contribution of each to earnings and cash flow resulting from evolving business strategies, changing product mix, changes in tax rates both in the U.S. and abroad and opportunities existing now or in the future. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Changes in the buying patterns of a major distributor, retailer, or wholesale customer resulting from buyer purchasing decisions, pricing, seasonality, or other factors, or other problems with licensors, suppliers, distributors, and business partners. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Difficulties related to our information technology systems, any of which could adversely affect business operations, including any significant breakdown, invasion, destruction, or interruption of these systems. |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| • | Changes in credit markets impacting our ability to obtain financing for our business operations. |
|---------|--------------------------------------------------------------------------------------------------|

| • | Legal difficulties, any of which could preclude or delay commercialization of products or adversely affect profitability, including claims asserting statutory or regulatory violations, adverse litigation decisions, and issues regarding compliance with any governmental consent decree. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

| Type of Warrant |         | Number of Shares |         | Exercise Price |       | Vesting Date |           | Term         |
|---------------------------|--------------|----------------------------|--------------|---------------------|------------|-------------------|----------------|--------------|
| Cash Exercise Only        |         | 250,000                    |         | $              | 0.30/share |              | immediate      |         | 5 years |
| Cash Exercise Only        |         | 250,000                    |         | $              | 0.50/share |              | immediate      |         | 5 years |
| Cash Exercise Only        |         | 500,000                    |         | $              | 0.75/share |              | immediate      |         | 5 years |
| Cash Exercise Only        |         | 500,000                    |         | $              | 1.00/share |              | immediate      |         | 5 years |
| Cash or Cashless Exercise |    | 500,000                    |    | $              | 0.75/share |         | August 1, 2012 |    | 5 years |

----

| Fiscal Year Ending October 31, 2011 |   |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|
| Quarter Ended                       |   | High $ |   |   | Low $  |   |
| October 31, 2011                    |   |   | 0.65   |   |   |   | 0.30 |   |
| July 31, 2011                       |   |   | 0.80   |   |   |   | 0.55 |   |
| April 30, 2011                      |   |   | 1.08   |   |   |   | 0.60 |   |
| January 31, 2011                    |   |   | 1.39   |   |   |   | 0.87 |   |
| Fiscal Year Ending October 31, 2010 |   |   |   |   |   |   |   |   |
| Quarter Ended                       |   | High $ |   |   | Low $  |   |
| October 31, 2010                    |   |   | 2.27   |   |   |   | 1.47 |   |
| July 31, 2010                       |   |   | 2.13   |   |   |   | 1.19 |   |
| April 30, 2010                      |   |   | 2.93   |   |   |   | 0.697 |   |
| January 31, 2010                    |   |   | 0.93   |   |   |   | 0.52 |   |

----

| Date               |   | Principal Amount Converted |      |   | Number of Shares |   |
|--------------------|--------|--------------------------------------|-----------|--------|----------------------------|--------|
| June 28, 2006      |   | $                                    | 25,000    |   |                       |   | 125,313 |   |
| July 21, 2006      |   | $                                    | 50,000    |   |                       |   | 279,642 |   |
| August 3, 2006     |   | $                                    | 50,000    |   |                       |   | 279,642 |   |
| August 15, 2006    |   | $                                    | 50,000    |   |                       |   | 289,855 |   |
| September 14, 2006 |   | $                                    | 50,000    |   |                       |   | 556,793 |   |
| September 18, 2006 |   | $                                    | 50,000    |   |                       |   | 556,793 |   |
| November 20, 2006  |   | $                                    | 150,000   |   |                       |   | 1,246,883 |   |
| November 30, 2006  |   | $                                    | 105,000   |   |                       |   | 872,818 |   |
| January 5, 2007    |   | $                                    | 100,000   |   |                       |   | 629,327 |   |
| August 23, 2007    |   | $                                    | 500,000   |   |                       |   | 1,250,000 |   |
| August 28, 2007    |   | $                                    | 420,000   |   |                       |   | 1,050,000 |   |
| September 25, 2007 |   | $                                    | 550,000   |   |                       |   | 1,375,000 |   |
| September 28, 2007 |   | $                                    | 130,000   |   |                       |   | 325,000 |   |
| November 14, 2007  |   | $                                    | 300,000   |   |                       |   | 750,000 |   |
| December 17, 2007  |   | $                                    | 1,000,000 |   |                       |   | 2,500,000 |   |
| January 24, 2008   |   | $                                    | 295,000   |   |                       |   | 737,500 |   |
| January 31, 2008   |   | $                                    | 860,679   |   |                       |   | 2,151,699 |   |

| Warrant No. |   | Exercise Date |   | # of Shares Exercised |       |   | Exercise Price |   |   | Gross Proceeds |   |
|------------------|--------|--------------------|--------|--------------------------------------|------------|--------|---------------------|--------|--------|---------------------|--------|
| CCP-1            |   | January 31, 2008   |   |                                 | 700,000    |   |                | $      | 0.40   |                |   | $ | 280,000 |   |
|             |   | May 16, 2008       |   |                                 | 1,300,000  |   |                | $      | 0.40   |                |   | $ | 520,000 |   |
| CCP-2            |   | April 30, 2009     |   |                                 | 2,000,000  |   |                | $      | 0.05   |                |   | $ | 100,000 |   |
| CCP-3            |   | March 12, 2009     |   |                                 | 2,000,000  |   |                | $      | 0.07   |                |   | $ | 140,000 |   |
| CCP-4            |   | September 30, 2008 |   |                                 | 1,750,000  |   |                | $      | 0.20   |                |   | $ | 350,000 |   |
|             |   | May 29, 2009       |   |                                 | 625,000    | *      |                | $      | 0.20   |                |   | $ | 0.00 |   |
| CCP-5            |   | June 1, 2009       |   |                                 | 2,000,000  |   |                | $      | 0.40   |                |   | $ | 800,000 |   |
|             |   | July 28, 2009      |   |                                 | 750,000    |   |                | $      | 0.18   |                |   | $ | 135,000 |   |
|             |   | August 4, 2009     |   |                                 | 250,000    |   |                | $      | 0.18   |                |   | $ | 45,000 |   |
|             |   |               |   |                                 | 11,375,000 |   |                |   |   |                |   | $ | 2,370,000 |   |

----

----

|                                                            |   | Years Ended October 31, |       |
|-----------------------------------------------------------------|--------|----------------------------------------|------------|
|                                                            |   | 2011                                   |       |   | 2010 |   |
|                                                            |   |                                   |       |   |   |   |
| Revenue                                                         |   | $                                      | 8,876      |   |   | $ | — |   |
|                                                            |   |                                   |       |   |   |   |   |   |
| Operating Expenses:                                             |   |                                   |       |   |   |   |   |   |
| Depreciation and amortization of property and equipment         |   |                                   | 20,399     |   |   |   | 20,932 |   |
| Amortization of patent application costs                        |   |                                   | 5,207      |   |   |   | 3,023 |   |
| Write-off of patent application costs                           |   |                                   | 55,549     |   |   |   | 105,345 |   |
| General and administrative                                      |   |                                   | 1,349,300  |   |   |   | 1,246,887 |   |
| Cost of settlement of lawsuit                                   |   |                                   | 1,753,800  |   |   |   | — |   |
| Research and product development, net of investment tax credits |   |                                   | 613,504    |   |   |   | 605,658 |   |
| Total operating expenses                                        |   |                                   | 3,797,759  |   |   |   | 1,981,845 |   |
|                                                            |   |                                   |       |   |   |   |   |   |
| Operating loss                                                  |   |                                   | (3,788,883 | ) |   |   | (1,981,845 | ) |
|                                                            |   |                                   |       |   |   |   |   |   |
| Other Expenses:                                                 |   |                                   |       |   |   |   |   |   |
| Interest expense and bank charges (net)                         |   |                                   | 20,135     |   |   |   | 30,166 |   |
| Loss on foreign exchange transactions                           |   |                                   | 90,737     |   |   |   | 104,182 |   |
| Total other expenses                                            |   |                                   | 110,872    |   |   |   | 134,348 |   |
|                                                            |   |                                   |       |   |   |   |   |   |
| Loss from Continuing Operations                                 |   |                                   | (3,899,755 | ) |   |   | (2,116,193 | ) |
|                                                            |   |                                   |       |   |   |   |   |   |
| Discontinued Operations:                                        |   |                                   |       |   |   |   |   |   |
| Gain on sale of subsidiary                                      |   |                                   | —    |   |   |   | 90,051 |   |
| Loss from discontinued operations                               |   |                                   | —    |   |   |   | (12,355 | ) |
| Net Loss                                                        |   | $                                      | (3,899,755 | ) |   | $ | (2,038,497 | ) |

----

----

|   | (a) | Convertible Debentures |
|--------|-----|------------------------|

|   | (b) | Research and Development Costs |
|--------|-----|--------------------------------|

|   | (c) | Income Taxes |
|--------|-----|--------------|

----

|   | (d) | Stock-Based Compensation |
|--------|-----|--------------------------|

|   | (e) | Foreign Currency Translation |
|--------|-----|------------------------------|

|   | (f) | Goodwill |
|--------|-----|----------|

|   | (g) | Non-controlling Interest in Consolidated Financial Statements |
|--------|-----|---------------------------------------------------------------|

----

|   | · | lack of documented policies and procedures; |
|--------|--------|---------------------------------------------|

|   | · | lack of resources to account for complex and unusual transactions: and |
|--------|--------|------------------------------------------------------------------------|

|   | · | there is no effective separation of duties, which includes monitoring controls, between the members of management. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

----

| Name                | Age    |   | Position                               |
|---------------------|--------|--------|----------------------------------------|
| Yahia Gawad         | 53     |   | Director & Chief Executive Officer |
|                |   |   |                                   |
| Alexander D.G. Reid | 73     |   | Director                               |
|                |   |   |                                   |
| J Neil Tabatznik    | 61     |   | Director/Acting Chairman               |
|                |   |   |                                   |
| Linda J. Sterling   | 50     |   | Director & Secretary               |
|                |   |   |                                   |
| James A. Essex      | 63     |   | Chief Financial Officer                |

----

----

| Name and                |   |   | Salary |    | Stock Awards |   | Total  |   |
|-------------------------|--------|--------|--------|---------|--------------|--------|--------|--------|
| Principal Position      | Year   |   | ($)    |    | ($)          |   | ($)    |   |
|                    |   |   |   |    |         |   |   |   |
| Dr. Yahia Gawad         | 2011   |   |   | 152,238 | (1)          |   |   |   | 152,238 |   |
| Chief Executive Officer | 2010   |   |   | 143,968 | (1)          |   |   |   | 143,968 |   |
|                    |   |   |   |    |         |   |   |   |   |   |
| James A. Essex          | 2011   |   |   | 36,537  | (1)          |   |   |   | 36,537 |   |
| Chief Financial Officer | 2009   |   |   | 35,881  | (1)          |   |   |   | 35,881 |   |
|                    |   |   |   |    |         |   |   |   |   |   |
| Linda J. Sterling       | 2011   |   |   | 30,448  | (1)          |   |   |   | 30,448 |   |
| Corporate Secretary     | 2010   |   |   | 45,590  | (1)          |   |   |   | 45,590 |   |

|   | (1) | Cash compensation is stated in the table in U.S. dollars. To the extent any cash compensation was paid in Canadian dollars, it has been converted into U.S. dollars based on the average Canadian/U.S. dollar exchange rate for the years ended October 31, 2011 and October 31, 2010. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | 1. | Non-employee directors do not receive an annual cash base retainer. |   |
|--------|----|---------------------------------------------------------------------|--------|

|   | 2. | At the discretion of the full Board of Directors, nonemployee directors may receive shares of the Company’s common stock. The number and terms of such shares is within the discretion of the full Board of Directors. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Directors who are officers or employees of CardioGenics do not receive separate consideration for their service on the Board of Directors. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------|

|                 |   | Stock Award |   | Stock Award |   |      |   |
|----------------------|--------|-------------|--------|-------------|--------|-----------|--------|
|                 |   | As Director |   | (Other)     |   | Total (1) |   |
| Name                 |   | $           |   | $           |   | $         |   |
|                 |   |        |   |        |   |      |   |
| J Neil Tabatznik     |   |        | 0      |        |   |      |   | 0 |   |
|                 |   |        |   |        |   |      |   |   |   |
| Alexander D. G. Reid |   |        | 0      |        |   |      |   | 0 |   |

|   | (1) | As of October 31, 2011, the aggregate number of shares underlying stock awards granted to each non-employee director was as follows: Mr. Tabatnik (561,648) and Mr. Reid (52,393). |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name & Address of BeneficialOwner   |   | Number of SharesBeneficially Owned |         |   | Percentage of Class** |   |
|-------------------------------------------------------------|--------|---------------------------------------------------|--------------|--------|---------------------------------|--------|
| Yahia Gawad                                                 |   |                                              | 18,144,652   |   |                            |   | 27.70 | % |
|                                                        |   |                                              |         |   |                            |   |   |   |
| Alexander D.G. Reid                                         |   |                                              | 523,196      |   |                            |   | * |   |
|                                                        |   |                                              |         |   |                            |   |   |   |
| J. Neil Tabatznik                                           |   |                                              | 2,482,534(1) |   |                            |   | 3.79 | % |
|                                                        |   |                                              |         |   |                            |   |   |   |
| Linda J. Sterling                                           |   |                                              | 1,501,617    |   |                            |   | 2.29 | % |
|                                                        |   |                                              |         |   |                            |   |   |   |
| James Essex                                                 |   |                                              | 398,183      |   |                            |   | * |   |
|                                                        |   |                                              |         |   |                            |   |   |   |
| All executive officers and directors as a group (5 persons) |   |                                              | 23,050,182   |   |                            |   | 33.78 | % |

| * | Less than one percent (1%) |
|---|----------------------------|

| ** | Based on 65,461,135 shares of common stock issued and outstanding and all options and warrants to acquire common stock having been exercised |
|----|----------------------------------------------------------------------------------------------------------------------------------------------|

----

| (1) | Included 157,178 shares of common stock issuable upon exercise of a warrant |
|-----|-----------------------------------------------------------------------------|

|                                                       |                        |   |    |                   |   | Number of                 |   |
|------------------------------------------------------------|----------------------------------|--------|---------|-----------------------------|--------|--------------------------------|--------|
|                                                  |                        |   |    |                   |   | securities remaining      |   |
|                                                  | Number of                   |   |    |                   |   | available for future |   |
|                                                  | securities                       |   |    | Weighted average       |   | issuance under            |   |
|                                                  | to be issued upon |   |    | exercise price of |   | equity compensation       |   |
|                                                  | exercise of                 |   |    | outstanding                 |   | plans (excluding          |   |
|                                                  | outstanding options,        |   |    | options, warrants      |   | securities reflected      |   |
|                                                  | warrants and rights    |   |    | and rights             |   | In column (a))       |   |
|                                                       | (a)                              |   |    | (b)                         |   | (c)                            |   |
| Equity compensation plans approved by security holders     | Not applicable                   |   |    | Not applicable              |   | Not applicable                 |   |
|                                                       |                             |   |    |                        |   |                           |   |
| Equity compensation plans not approved by security holders | —                          |   | $       | —                     |   |                           | 30,000 |   |
|                                                       |                             |   |    |                        |   |                           |   |   |
| TOTAL                                                      | —                          |   | $  | —                     |   |                           | 30,000 |   |

|   | (1) | The maximum number of shares that may be subject to outstanding awards under our 1999 Long-Term Incentive Plan is 600,000 shares of Common Stock.  Because this limitation applies only to outstanding awards under the plan, as the outstanding options included in column (a) are either exercised, forfeited or expire pursuant to their terms, the number of shares remaining available for future issuance in column (c) shall be increased by the number of shares subject to such option so exercised, forfeited or expired. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|               |   | Fiscal Year |   |   | Fiscal Year |   |
|--------------------|--------|-------------|--------|--------|-------------|--------|
|               |   | Ended       |   |   | Ended       |   |
|               |   | October     |   |   | October     |   |
|               |   | 2011        |   |   | 2010        |   |
|               |   |        |   |   |        |   |
| Audit fees         |   | $           | 60,000 | (1)    |        | $      | 66,090 |   |
| Audit related fees |   | $           | 53,173 | (2)    |        | $      | 46,728 | (2) |
| Tax fees (3)       |   | $           | 0      | (3)    |        | $      | 0 | (3) |
| All other fees     |   | $           | 0      |   |        | $      | 0 |   |

| (1) | Represents estimated audit fees for the fiscal year ended October 31, 2012. |
|-----|-----------------------------------------------------------------------------|

| (2) | Represents charges of J.H. Cohn LLP, CardioGenics’ auditor in the fiscal years ended October 31, 2011and 2010 for review of interim financial statements. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | J.H. Cohn LLP did not provide and did not bill for any tax services. |
|-----|----------------------------------------------------------------------|

----

| Exhibit No. |   | Description                                                                                                                                                                                                                                                    |
|-------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1         |   | Amended and Restated Articles of Incorporation of Registrant.  Incorporated by reference to the Registrant’s Form 10-QSB filed with the SEC on June 19, 2006.                                                                                  |
|        |   |                                                                                                                                                                                                                                                           |
| 3.2         |   | Bylaws of Registrant.  Incorporated by reference to the Registrant’s Form SB-2 filed with the SEC on September 30, 1999.                                                                                                                       |
|        |   |                                                                                                                                                                                                                                                           |
| 3.3         |   | Certificate of Designation of Series 1 Preferred Stock of Registrant. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on July 24, 2009.                                                                                        |
|        |   |                                                                                                                                                                                                                                                           |
| 3.4         |   | Articles of Amendment of CardioGenics ExchangeCo Inc. effective July 14 2009 and Articles of Incorporation of CardioGenics ExchangeCo Inc. Effective May 22, 2009                                                                                              |
|        |   |                                                                                                                                                                                                                                                           |
| 3.5         |   | Certificate of Amendment to Articles of Incorporation of Registrant. Incorporated by reference to the Registrant’s Form DEF 14C filed with the SEC on September 9, 2009.                                                                                 |
|        |   |                                                                                                                                                                                                                                                           |
| 3.6         |   | Certificate of Change of CardioGenics Holdings Inc. Effective June 18, 2010. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on June 23, 2010.                                                                                 |
|        |   |                                                                                                                                                                                                                                                           |
| 4.1         |   | Form of Common Stock Certificate.  Incorporated by reference to the Registrant’s Form 10-KSB filed with the SEC on November 8, 2005.                                                                                                           |
|        |   |                                                                                                                                                                                                                                                           |
| 4.2         |   | Form of Series 2 Class B Stock Certificate. Incorporated by reference to the Registrant’s Form 10-KSB filed with the SEC on November 8, 2005.                                                                                                            |
|        |   |                                                                                                                                                                                                                                                           |
| 4.3         |   | Securities Purchase Agreement, effective May 25, 2006, with YA Global. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on June 1, 2006.                                                                                        |
|        |   |                                                                                                                                                                                                                                                           |
| 4.4         |   | Letter Agreement, dated January 31, 2008, relating to the conversion of the remaining principal balance of the convertible secured debentures.  Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on February 6, 2008. |
|        |   |                                                                                                                                                                                                                                                           |
| 4.5         |   | Warrant No. CCP-1 for 2,000,000 shares of common stock issued to YA Global, effective May 25, 2006. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on June 1, 2006.                                                           |
|        |   |                                                                                                                                                                                                                                                           |
| 4.6         |   | Warrant No. CCP-2 for 2,000,000 shares of common stock issued to YA Global, effective May 25, 2006.  Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on June 1, 2006.                                                |
|        |   |                                                                                                                                                                                                                                                           |
| 4.7         |   | Warrant No. CCP-3 for 2,000,000 shares of common stock issued to YA Global, effective May 25, 2006.  Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on June 1, 2006.                                                |
|        |   |                                                                                                                                                                                                                                                           |
| 4.8         |   | Warrant No. CCP-4 for 3,000,000 shares of common stock issued to YA Global, effective May 25, 2006.  Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on June 1, 2006.                                                |
|        |   |                                                                                                                                                                                                                                                           |
| 4.9         |   | Warrant No. CCP-5 for 3,000,000 shares of common stock issued to YA Global, effective May 25, 2006.  Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on June 1, 2006.                                                |
|        |   |                                                                                                                                                                                                                                                           |
| 4.10        |   | Letter Agreement, amending Warrant No. CCP-4. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on October 3, 2008.                                                                                                              |

----

| Exhibit No. |   | Description                                                                                                                                                                                                                                                                                  |
|-------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.11        |   | Investor Registration Rights Agreement, effective May 25, 2006, with YA Global. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on June 1, 2006.                                                                                                             |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.1        |   | Non-Binding Letter of Intent, dated October 1, 2008, by and among the Registrant, BlueCreek, e2 Business and YA Global.  Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on October 3, 2008.                                                       |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.2        |   | 1999 Long-Term Incentive Plan, as amended.  Incorporated by reference to Exhibit [  ] to the Registrant’s Form S-8 filed with the SEC on May 1, 2002.                                                                                                              |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.3        |   | Amended and Restated Employment Agreement, dated August 31, 2001, between Thomas J. Mazzarisi and Registrant.  Incorporated by reference to Exhibit 10.21 in Amendment No. 1 to the Registrant’s Form SB-2 filed with the SEC on September 26, 2001.                         |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.4        |   | Amended and Restated Employment Agreement, dated August 31, 2001, between Stephen J. Schoepfer and Registrant.  Incorporated by reference to Exhibit 10.20 in Amendment No. 1 to the Registrant’s Form SB-2 filed with the SEC on September 26, 2001.                        |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.5        |   | Amendment to Amended and Restated Employment Agreement, dated as of November 3, 2005, between Registrant and Thomas J. Mazzarisi.  Incorporated by reference to the Registrant’s Form 10-KSB filed with the SEC on November 8, 2005.                                         |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.6        |   | Amendment to Amended and Restated Employment Agreement, dated as of November 3, 2005, between Registrant and Stephen J. Schoepfer.  Incorporated by reference to the Registrant’s Form 10-KSB filed with the SEC on November 8, 2005.                                        |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.7        |   | Amendment to Amended and Restated Employment Agreement, dated as of November 12, 2007, by and between Registrant and Thomas J. Mazzarisi.  Incorporated by reference to Exhibit 10.6 of Registrant’s Form 10-K filed with the SEC on November 13, 2008.                      |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.8        |   | Amendment to Amended and Restated Employment Agreement, dated as of November 12, 2007, by and between Registrant and Stephen J. Schoepfer.  Incorporated by reference to Exhibit 10.7 of the Registrant’s Form 10-K filed with the SEC on November 13, 2008                       |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.9        |   | Extension of Amended and Restated Employment Agreement dated as of November 12, 2008 between registrant and Thomas J. Mazzarisi. Incorporated by reference to Exhibit 10.9 of the Registrant’s Form 10-K filed with the SEC on November 13, 2008.                                      |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.10       |   | Extension of Amended and Restated Employment Agreement dated as of November 12, 2008 between registrant and Stephen J. Schoepfer. Incorporated by reference to Exhibit 10.10 of the Registrant’s Form 10-K filed with the SEC on November 13, 2008.                                    |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.11       |   | Consulting Agreement, dated November 12, 2007, between the Registrant and Walsh Organization, Inc.Incorporated by reference to Exhibit 10.31 of the Registrant’s Annual Report on Form 10-KSB filed November 13, 2003.                                                                 |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.12       |   | Power of Attorney and Contingent Fee Contract, dated June 14, 2002, among the Registrant, Gary Valinoti and the Law Firm of O’Quinn, Laminack & Pirtle. Incorporated by reference to Exhibit 10.32 of the Registrant’s Annual Report on Form 10-KSB filed November 13, 2003. |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.13       |   | Subscription Agreement, dated December 10, 2002, between the Registrant and Bay Point Investment Partners LLC. Incorporated by reference to the Registrant’s Registration Statement on Form SB-2 filed on January 9, 2003.                                                             |
|        |   |                                                                                                                                                                                                                                                                                         |
| 10.14       |   | Placement Agent Agreement, dated December 10, 2002, between the Registrant and RMC 1 Capital Markets, Inc. Incorporated by reference to the Registrant’s Registration Statement on Form SB-2 filed on January 9, 2003.                                                                 |

----

| Exhibit No. |   | Description                                                                                                                                                                                                                                                 |
|-------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.15       |   | Placement Agent Agreement, dated as of June 19, 2003, between the Registrant and RMC 1 Capital Markets, Inc., as amended on August 12, 2003. Incorporated by reference to the Registrant’s Current Report on Form 8-K filed on August 13, 2003.       |
|        |   |                                                                                                                                                                                                                                                        |
| 10.16       |   | Subscription Agreement, dated as of June 19, 2003, between the Registrant and Bay Point Investment Partners LLC, as amended on August 12, 2003. Incorporated by reference to the Registrant’s Current Report on Form 8-K filed on August 13, 2003.    |
|        |   |                                                                                                                                                                                                                                                        |
| 10.17       |   | Subscription Agreement, dated as of September 25, 2003, between the Registrant and Kuekenhof Equity Fund L.P. Incorporated by reference to Exhibit 10.39 of the Registrant’s Form 10-KSB filed with the SEC on November 13, 2003.                     |
|        |   |                                                                                                                                                                                                                                                        |
| 10.18       |   | Non-Circumvention/Non-Disclosure Agreement, dated as of January 1, 2004 between Flow Capital Advisors Inc. and the Registrant. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on July 25, 2007.                            |
|        |   |                                                                                                                                                                                                                                                        |
| 10.19       |   | Finder’s Fee Agreement, dated as of January 5, 2004, between the Registrant and Flow Capital Advisors, Inc. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on January 20, 2004.                                      |
|        |   |                                                                                                                                                                                                                                                        |
| 10.20       |   | Finder’s Fee Agreement, dated as of March 14, 2005, by and between the Registrant and Flow Capital Advisors, Inc. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on July 25, 2007.                                   |
|        |   |                                                                                                                                                                                                                                                        |
| 10.21       |   | Irrevocable Transfer Agent Instructions, effective May 25, 2006, between the Registrant and YA Global. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on June 1, 2006.                                                     |
|        |   |                                                                                                                                                                                                                                                        |
| 10.22       |   | Letter, dated as of June 17, 2008, from Cryptometrics regarding termination of the agreement and plan of merger between the Registrant and Cryptometrics. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on June 18, 2008. |
|        |   |                                                                                                                                                                                                                                                        |
| 10.23       |   | Stand-By Equity Distribution Agreement dated March 12, 2009 between Registrant and YA Global Master SPV Ltd. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on March 13, 2009.                                             |
|        |   |                                                                                                                                                                                                                                                        |
| 10.24       |   | Registration Rights Agreement dated March 12, 2009 between Registrant and YA Global Master SPV Ltd. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on March 13, 2009.                                                      |
|        |   |                                                                                                                                                                                                                                                        |
| 10.23       |   | Share Purchase Agreement dated May 22, 2009 between Registrant, CardioGenics ExchnageCo Inc., CardioGenics Inc. And Yahia Gawad, Principal Shareholder of CardioGenics Inc.                                                                                 |
|        |   |                                                                                                                                                                                                                                                        |
| 10.24       |   | Voting and Exchange Trust Agreement dated July 6, 2009 among Registrant, CardioGenics ExchangeCo Inc. and Weirfoulds LLP. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on July 6, 2009.                                  |
|        |   |                                                                                                                                                                                                                                                        |
| 10.25       |   | Support Agreement dated July 6, 2009 between Registrant and CardioGenics ExchangeCo Inc. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on July 6, 2009.                                                                   |
|        |   |                                                                                                                                                                                                                                                        |
| 10.26       |   | Agreement dated September 10, 2009 between Registrant and The Investor’s Relations Group, Inc. by reference to the Registrant’s Form 8-K filed with the SEC on September 11, 2009.                                                              |
|        |   |                                                                                                                                                                                                                                                        |
| 10.27       |   | Agreement dated September 28, 2009 between Registrant and Gilford Securities Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on October 2, 2009.                                                                            |
|        |   |                                                                                                                                                                                                                                                        |
| 10.28       |   | Retainer Agreement dated January 20, 2010 between Registrant and Wolf, Axelrod & Weinberger Associates LLC. Incorporated by reference to the Registrant’s Form 10-K filed with the SEC on February 16, 2010.                                      |
|        |   |                                                                                                                                                                                                                                                        |
| 10.29       |   | Letter of Agreement dated January 18, 2010 between Registrant and The Investor Relations Group, Inc. Incorporated by reference to the Registrant’s Form 10-K filed with the SEC on February 16, 2010.                                                 |

----

| Exhibit No. |   | Description                                                                                                                                                                                                                                                                                                   |
|-------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.30       |   | Employment agreement dated July 31, 2009 between Registrant and Dr. Yahia Gawad. Incorporated by reference to the Registrant’s Form 10-K filed with the SEC on February 16, 2010.                                                                                                                       |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 10.31       |   | LLC Membership Interest Purchase Agreement dated February 10, 2010 between Registrant and Rothcove Partners LLC. Incorporated by reference to the Registrant’s Form 10-K filed with the SEC on February 16, 2010.                                                                                       |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 10.31       |   | Lock-Up Agreement dated March 15, 2010 among Yahia Gawad, CardioGenics Holdings Inc., CardioGenics ExchangeCo Inc. and Weirfoulds LLP. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on March 16, 2010.                                                                     |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 10.32       |   | Letter Agreement dated March 19, 2010 between Registrant and YA Global Master SPV Ltd. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on March 22, 2010.                                                                                                                     |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 10.33       |   | Form of Lock-Up Agreements entered into by certain members of the Board of the Directors of Registrant and certain other stockholders with respect to their “Exchangeable Shares.” Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on March 25, 2010.             |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 10.34       |   | Form of Lock-Up Agreements entered into by certain members of the Board of the Directors of Registrant and certain other stockholders with respect to their shares of the Registrant’s common stock. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on March 25, 2010. |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 10.35       |   | Form of Subscription Agreements for Sale of Unregistered Securities made on November 3, 2010. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on December 4, 2010.                                                                                                            |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 10.36       |   | Letter Agreement dated December 21, 2010 entered into between CardioGenics Holdings Inc. and Chandra Panchal. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on December 22, 2010.                                                                                           |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 10.37       |   | Redemption Notice for Series 2 Class B Common Stock dated February 25, 2011 and Redemption Notice for Series 3 Class B Common Stock dated February 25, 2011. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on March 2, 2011.                                                |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 10.38       |   | Intellectual Property Assignment & License Agreement dated June 21, 2011 between CardioGenics Inc., an Ontario corporation and Luxspheres Inc., an Ontario corporation. Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on June 22, 2011.                                 |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 14.1        |   | Code of Ethics.  Incorporated by reference to the Registrant’s Form 10-KSB filed with the SEC on November 13, 2003.                                                                                                                                                                           |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 21.1        |   | Subsidiaries of Registrant. Incorporated by reference to the Registrant’s Form 10-K filed with the SEC on January 31, 2011.                                                                                                                                                                             |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 23.1        |   | Consent of J.H. Cohn LLP*                                                                                                                                                                                                                                                                                     |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 23.2        |   | Consent of BDO Dunwoody LLP*                                                                                                                                                                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 31.1        |   | Section 302 Certification of Chief Executive Officer*                                                                                                                                                                                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 31.2        |   | Section 302 Certification of Chief Financial Officer*                                                                                                                                                                                                                                                         |
|        |   |                                                                                                                                                                                                                                                                                                          |
| 32.1        |   | Section 906 Certification of Chief Executive Officer and Chief Financial Officer*                                                                                                                                                                                                                             |

----

| Report of Independent Registered Public Accounting Firm            | F-1     |
|--------------------------------------------------------------------|---------|
|                                                               |    |
| Report of Independent Registered Public Accounting Firm            | F-2     |
|                                                               |    |
| Consolidated Balance Sheets                                        | F-3     |
|                                                               |    |
| Consolidated Statements of Operations                              | F-4     |
|                                                               |    |
| Consolidated Statements of Stockholders’ Equity (Deficiency) | F-5-11  |
|                                                               |    |
| Consolidated Statements of Cash Flows                              | F-12    |
|                                                               |    |
| Notes to Consolidated Financial Statements                         | F-13-28 |

----

| CardioGenics Holdings Inc.                              |
|---------------------------------------------------------|
| (A Development Stage Company)                           |
| Report of Independent Registered Public Accounting Firm |

----

| CardioGenics Holdings Inc.                              |
|---------------------------------------------------------|
| (A Development Stage Company)                           |
| Report of Independent Registered Public Accounting Firm |

----

| CardioGenics Holdings Inc.    |
|-------------------------------|
| (A Development Stage Company) |
| Consolidated Balance Sheets   |

|                                                                                                                                                                                                                                    |   | October 31, |        |   | October 31, |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------|-------------|--------|-------------|---------|
|                                                                                                                                                                                                                                    |   | 2011        |        |   | 2010        |    |
|                                                                                                                                                                                                                                    |   |        |        |   |        |    |
| Assets                                                                                                                                                                                                                                  |   |        |        |   |        |    |
|                                                                                                                                                                                                                                    |   |        |        |   |        |    |
| Current Assets                                                                                                                                                                                                                          |   |        |        |   |        |    |
| Cash and Cash Equivalents                                                                                                                                                                                                               |   | $           | 669,202     |   |        | $       | 1,844,752 |   |
| Accounts Receivable                                                                                                                                                                                                                     |   |        | 9,002       |   |        | — |   |
| Share Subscriptions Receivable                                                                                                                                                                                                          |   | —     |        |   |        | 115,000 |   |
| Deposits and Prepaid Expenses                                                                                                                                                                                                           |   |        | 1,360,837   |   |        |    | 89,774 |   |
| Refundable Taxes Receivable                                                                                                                                                                                                             |   |        | 35,191      |   |        |    | 21,959 |   |
| Government Grants and Investment Tax Credits Receivable                                                                                                                                                                                 |   | —     |        |   |        | 156,482 |   |
|                                                                                                                                                                                                                                    |   |        | 2,074,232   |   |        |    | 2,227,967 |   |
| Long term Assets                                                                                                                                                                                                                        |   |        |        |   |        |    |   |   |
| Property and Equipment, net                                                                                                                                                                                                             |   |        | 82,308      |   |        |    | 87,465 |   |
| Patents, net                                                                                                                                                                                                                            |   |        | 130,732     |   |        |    | 170,703 |   |
| Prepaid Consulting Contract                                                                                                                                                                                                             |   |        | 567,015     |   |        |    | — |   |
|                                                                                                                                                                                                                                    |   |        | 780,055     |   |        |    | 258,168 |   |
|                                                                                                                                                                                                                                    |   | $           | 2,854,287   |   |        | $       | 2,486,135 |   |
| Liabilities and Stockholders' Equity (Deficit)                                                                                                                                                                                          |   |        |        |   |        |    |   |   |
|                                                                                                                                                                                                                                    |   |        |        |   |        |    |   |   |
| Current Liabilities                                                                                                                                                                                                                     |   |        |        |   |        |    |   |   |
| Accounts Payable and Accrued Expenses                                                                                                                                                                                                   |   | $           | 416,692     |   |        | $       | 523,155 |   |
| Due to Director                                                                                                                                                                                                                         |   | —     |        |   |        | 15,149  |   |
| Current Portion of Capital Lease Obligation                                                                                                                                                                                             |   |        | 25,711      |   |        |    | 20,992 |   |
| Funds Held in Trust for Redemption of Class B Common Shares                                                                                                                                                                             |   |        | 4           |   |        | — |   |
|                                                                                                                                                                                                                                    |   |        | 442,407     |   |        |    | 559,296 |   |
|                                                                                                                                                                                                                                    |   |        |        |   |        |    |   |   |
| Long Term Liabilities                                                                                                                                                                                                                   |   |        |        |   |        |    |   |   |
| Capital Lease Obligation, net of current portion                                                                                                                                                                                        |   |        | 2,630       |   |        |    | 20,881 |   |
|                                                                                                                                                                                                                                    |   |        | 2,630       |   |        |    | 20,881 |   |
|                                                                                                                                                                                                                                    |   |        |        |   |        |    |   |   |
| Mandatorily redeemable Class B common stock; par value $.00001 per share: 400,000 shares designated as series 2; 381,749 shares issued and outstanding                                                                                  |   | —     |        |   |        | 4       |   |
| 40,000 shares designated as series 3; 21,500 shares issued and outstanding                                                                                                                                                              |   | —     |        |   | —     |    |
|                                                                                                                                                                                                                                    |   | —     |        |   |        | 4       |   |
|                                                                                                                                                                                                                                    |   |        |        |   |        |    |   |   |
| Commitments and contingencies                                                                                                                                                                                                           |   |        |        |   |        |    |   |   |
| Stockholders' Equity (Deficit)                                                                                                                                                                                                          |   |        |        |   |        |    |   |   |
| Preferred stock; par value $.0001 per share, 5,000,000 shares authorized, none issued                                                                                                                                                   |   | —     |        |   | —     |    |
| Common stock; par value $.00001 per share; 65,000,000 shares authorized, 31,237,262 and 28,620,257 common shares and 24,388,904 and 24,388,904 exchangeable shares issued and outstanding as at October 31, 2011 and 2010, respectively |   |        | 540         |   |        |    | 514 |   |
|                                                                                                                                                                                                                                    |   |        |        |   |        |    |   |   |
| Additional paid-in capital                                                                                                                                                                                                              |   |        | 41,774,001  |   |        |    | 37,441,728 |   |
|                                                                                                                                                                                                                                    |   |        |        |   |        |    |   |   |
| Deficit accumulated during development stage                                                                                                                                                                                            |   |        | (38,880,934 | )      |        |    | (35,006,558 | ) |
|                                                                                                                                                                                                                                    |   |        |        |   |        |    |   |   |
| Accumulated other comprehensive loss                                                                                                                                                                                                    |   |        | (166,756    | )      |        |    | (237,508 | ) |
|                                                                                                                                                                                                                                    |   |        |        |   |        |    |   |   |
| Total CardioGenics Holdings Inc. Stockholders’ Equity                                                                                                                                                                             |   |        | 2,726,851   |   |        |    | 2,198,176 |   |
| Non-Controlling Interest                                                                                                                                                                                                                |   |        | (317,601    | )      |        |    | (292,222 | ) |
| Total Equity                                                                                                                                                                                                                            |   |        | 2,409,250   |   |        |    | 1,905,954 |   |
| Total liabilities and stockholders' equity                                                                                                                                                                                              |   | $           | 2,854,287   |   |        | $       | 2,486,135 |   |

----

| CardioGenics Holdings Inc.                                                |
|---------------------------------------------------------------------------|
| (A Development Stage Company)                                             |
| Consolidated Statements of Operations                                     |
| For the Years Ended October 31, 2011 and 2010 and                         |
| Cumulative from November 20, 1997 (Date of Inception) to October 31, 2011 |

|                                                            |   |                |       |   |          |   |       | Cumulative   |   |
|-----------------------------------------------------------------|--------|---------------------|------------|--------|---------------|--------|------------|--------------|--------|
|                                                            |   |                |       |   |          |   |       | From         |   |
|                                                            |   |                |       |   |          |   |       | November 20, |   |
|                                                            |   |                |       |   |          |   |       | 1997         |   |
|                                                            |   |                |       |   |          |   |       | (Date of     |   |
|                                                            |   | For the Years Ended |       |   | Inception) to |   |
|                                                            |   | October 31,         |       |   | October 31,   |   |
|                                                            |   | 2011                |       |   | 2010          |   |       | 2011         |   |
|                                                            |   |                |       |   |          |   |       |         |   |
| Revenue                                                         |   | $                   | 8,876      |   |          |   | —    |         |   | $ | 8,876 |   |
|                                                            |   |                |       |   |          |   |       |         |   |   |   |   |
| Operating Expenses                                              |   |                |       |   |          |   |       |         |   |   |   |   |
| Depreciation and Amortization of Property and Equipment         |   |                | 20,399     |   |          |   | 20,932     |         |   |   | 201,439 |   |
| Amortization of Patent Application Costs                        |   |                | 5,207      |   |          |   | 3,023      |         |   |   | 12,411 |   |
| Write-off of Patent Application Costs                           |   |                | 55,549     |   |          |   | 105,345    |         |   |   | 214,625 |   |
| General and Administrative                                      |   |                | 1,349,300  |   |          |   | 1,246,887  |         |   |   | 5,625,408 |   |
| Write-off of Goodwill                                           |   |                | —    |   |          |   | —    |         |   |   | 12,780,214 |   |
| Research and Product Development, Net of Investment Tax Credits |   |                | 613,504    |   |          |   | 605,658    |         |   |   | 3,814,877 |   |
| Cost of Settlement of Lawsuit                                   |   |                | 1,753,800  |   |          |   | —    |         |   |   | 1,753,800 |   |
| Total operating expenses                                        |   |                | 3,797,759  |   |          |   | 1,981,845  |         |   |   | 24,402,774 |   |
| Operating Loss                                                  |   |                | (3,788,883 | )      |          |   | (1,981,845 | )            |   |   | (24,393,898 | ) |
|                                                            |   |                |       |   |          |   |       |         |   |   |   |   |
| Other Expenses                                                  |   |                |       |   |          |   |       |         |   |   |   |   |
| Interest Expense and Bank Charges (Net)                         |   |                | 20,135     |   |          |   | 30,166     |         |   |   | 2,136,636 |   |
| Loss on Change in Value of Derivative Liability                 |   |                | —    |   |          |   | —    |         |   |   | 12,421,023 |   |
| Loss on Foreign Exchange Transactions                           |   |                | 90,737     |   |          |   | 104,182    |         |   |   | 209,265 |   |
| Total other expenses                                            |   |                | 110,872    |   |          |   | 134,348    |         |   |   | 14,766,924 |   |
|                                                            |   |                |       |   |          |   |       |         |   |   |   |   |
| Loss from Continuing Operations                                 |   |                | (3,899,755 | )      |          |   | (2,116,193 | )            |   |   | (39,160,822 | ) |
|                                                            |   |                |       |   |          |   |       |         |   |   |   |   |
| Discontinued Operations                                         |   |                |       |   |          |   |       |         |   |   |   |   |
| Gain on Sale of Subsidiary                                      |   |                | —    |   |          |   | 90,051     |         |   |   | 90,051 |   |
| Loss from Discontinued Operations                               |   |                | —    |   |          |   | (12,355    | )            |   |   | (127,762 | ) |
| Net Loss                                                        |   |                | (3,899,755 | )      |          |   | (2,038,497 | )            |   |   | (39,198,533 | ) |
| Net Loss Attributed to Non-Controlling Interest                 |   |                | 25,379     |   |          |   | 14,225     |         |   |   | 317,599 |   |
| Net Loss Attributed to CardioGenics Holdings Inc.               |   | $                   | (3,874,376 | )      |          | $      | (2,024,272 | )            |   | $ | (38,880,934 | ) |
|                                                            |   |                |       |   |          |   |       |         |   |   |   |   |
| Basic and Fully Diluted Net Loss per Common Share               |   | $                   | (0.07      | )      |          | $      | (0.04      | )            |   |   |   |   |
| Basic and Fully Diluted Net Loss per Common Share               |   |                |       |   |          |   |       |         |   |   |   |   |
| From Discontinued Operations                                    |   | $                   | 0.00       |   |          | $      | 0.00       |         |   |   |   |   |
|                                                            |   |                |       |   |          |   |       |         |   |   |   |   |
| Weighted-average number of Common Shares                        |   |                | 54,167,687 |   |          |   | 49,624,916 |         |   |   |   |   |

----

| CardioGenics Holdings Inc.                                              |
|-------------------------------------------------------------------------|
| (A Development Stage Company)                                           |
| Consolidated Statements of Changes in Stockholders' Equity (Deficiency) |
| For the year ended October 31, 2011                                     |

|                                                    |   |         |       |   |    |   |    |        |   |          | Deficit     |   |           |   |    |     |   |                                             |    |
|---------------------------------------------------------|--------|--------------|------------|--------|---------|--------|---------|-------------|--------|---------------|-------------|--------|----------------|--------|---------|----------|--------|--------------------------------------------------|---------|
|                                                    |   |         |       |   |    |   |    |        |   |          | Accumulated |   |           |   |    |     |   |                                             |    |
|                                                    |   |         |       |   |    |   |    |        |   |          | During      |   | Accumulated    |   |    |     |   | Total                                            |    |
|                                                    |   |         |       |   |    |   |    | Additional  |   |          | the         |   | Other          |   |    |     |   | Stockholders'                                    |    |
|                                                    |   | Common Stock |       |   | Paid-in |   |    | Development |   | Comprehensive |        |   | Noncontrolling |   | Equity  |     |
|                                                    |   | Shares       |       |   | Amount  |   |    | Capital     |   |          | Stage       |   | Income (Loss)  |   |    | Interest |   | (Deficiency)                                     |    |
|                                                    |   |         |       |   |    |   |    |        |   |          |        |   |           |   |    |     |   |                                             |    |
| Issuance of common shares for cash November 1998        |   |         | 1,592,732  |   |    | $      | 16      |        |   | $             | (15         | )      |           |   |    |     |   |                                             |    |   | $ | 1 |   |
| Issuance of common shares for cash December 1998, $.00  |   |         | 796,366    |   |    |   | 8       |        |   |          | 35,028      |   |           |   |    |     |   |                                             |    |   |   | 35,036 |   |
| Issuance of common shares for cash March 1998, $.00     |   |         | 551,611    |   |    |   | 6       |        |   |          | 24,442      |   |           |   |    |     |   |                                             |    |   |   | 24,448 |   |
| Issuance of common shares for cash April 1998, $.00     |   |         | 12,986,611 |   |    |   | 130     |        |   |          | 5,573       |   |           |   |    |     |   |                                             |    |   |   | 5,703 |   |
| Issuance of common shares for cash May 1998, $.01       |   |         | 210,249    |   |    |   | 2       |        |   |          | 17,297      |   |           |   |    |     |   |                                             |    |   |   | 17,299 |   |
| Issuance of common shares for cash August 1998, $.00    |   |         | 2,787,281  |   |    |   | 28      |        |   |          | 200         |   |           |   |    |     |   |                                             |    |   |   | 228 |   |
| Issuance of common shares for cash September 1998, $.01 |   |         | 84,100     |   |    |   | 1       |        |   |          | 6,570       |   |           |   |    |     |   |                                             |    |   |   | 6,571 |   |
| Issuance of common shares for cash October 1998, $.01   |   |         | 31,949     |   |    |   | — |        |   |          | 2,500       |   |           |   |    |     |   |                                             |    |   |   | 2,500 |   |
| Comprehensive Income (Loss)                             |   |         |       |   |    |   |    |        |   |          |        |   |           |   |    |     |   |                                             |    |   |   |   |   |
| Net Loss                                                |   |         |       |   |    |   |    |        |   |          |        |   |           |   | (81,208 | )        |   |                                             |    |   |   |   | (81,208 | ) |
| Other Comprehensive Income (Loss)                       |   |         |       |   |    |   |    |        |   |          |        |   |           |   |    |     |   |                                             |    |   |   |   |   |   |
| Currency Translation Adjustment                         |   |         |       |   |    |   |    |        |   |          |        |   |           |   |    |     | (2,096 | )                                           |    |   |   |   | (2,096 | ) |
| Total Comprehensive Income (Loss)                       |   |         |       |   |    |   |    |        |   |          |        |   |           |   | (81,208 | )        | (2,096 | )                                           |    |   |   |   | (83,304 | ) |
| Balance at October 31, 1998                             |   |         | 19,040,899 |   |    | $      | 191     |        |   | $             | 91,595      |   |           | $      | (81,208 | )        | $      |        (2,096 | )  | $ | — |   | $ | 8,482 |   |

|                                                                         |   |         |       |   |    |   |    |        |   |   | Deficit       |   |   |           |     |   |     |   |   |          |   |
|------------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|---------|-------------|--------|--------|---------------|--------|--------|----------------|----------|--------|----------|--------|--------|---------------|--------|
|                                                                         |   |         |       |   |    |   |    |        |   |   | Accumulated   |   |   |           |     |   |     |   |   |          |   |
|                                                                         |   |         |       |   |    |   |    |        |   |   | During        |   |   | Accumulated    |     |   |     |   |   | Total         |   |
|                                                                         |   |         |       |   |    |   |    | Additional  |   |   | the           |   |   | Other          |     |   |     |   |   | Stockholders' |   |
|                                                                         |   | Common Stock |       |   | Paid-in |   |    | Development |   |   | Comprehensive |   |   | Noncontrolling |     |   | Equity   |   |
|                                                                         |   | Shares       |       |   | Amount  |   |    | Capital     |   |   | Stage         |   |   | Income (Loss)  |     |   | Interest |   |   | (Deficiency)  |   |
|                                                                         |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |   |          |   |
| Balance November 1, 1998                                                     |   |         | 19,040,899 |   |    | $      | 191     |        |   | $      | 91,595        |   |   | $              | (81,208  | )      |     | $      | (2,096 | )             |   | $ | — |   |   | $ | 8,482 |   |
| Issuance of common shares for cash November 1998, $.01                       |   |         | 32,066     |   |    |   | — |        |   |   | 2,500         |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 2,500 |   |
| Issuance of common shares for cash February 1999, $.01                       |   |         | 159,273    |   |    |   | 2       |        |   |   | 14,287        |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 14,289 |   |
| Commission paid on issuance of common stock for cash February 1999           |   |         |       |   |    |   |    |        |   |   | (935          | )      |   |           |     |   |     |   |   |          |   |   |   |   |   |   | (935 | ) |
| Issuance of common shares for cash March 1999, $.01                          |   |         | 278,728    |   |    |   | 3       |        |   |   | 24,707        |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 24,710 |   |
| Commission paid on issuance of common stock for cash March 1999              |   |         |       |   |    |   |    |        |   |   | (1,647        | )      |   |           |     |   |     |   |   |          |   |   |   |   |   |   | (1,647 | ) |
| Issuance of common shares for cash to minority shareholders April 1999, $.01 |   |         | —    |   |    |   | — |        |   |   | 10,707        |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 10,707 |   |
| Commission paid on issuance of common stock for cash April 1999              |   |         |       |   |    |   |    |        |   |   | (627          | )      |   |           |     |   |     |   |   |          |   |   |   |   |   |   | (627 | ) |
| Issuance of common shares for cash April 1999, $.01                          |   |         | 39,818     |   |    |   | — |        |   |   | 3,814         |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 3,814 |   |
| Commission paid on issuance of common stock for cash April 1999              |   |         |       |   |    |   |    |        |   |   | (314          | )      |   |           |     |   |     |   |   |          |   |   |   |   |   |   | (314 | ) |
| Issuance of common shares for cash July 1999, $.01                           |   |         | 119,455    |   |    |   | 1       |        |   |   | 10,073        |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 10,074 |   |
| Issuance of common shares for cash August 1999, $.01                         |   |         | 119,455    |   |    |   | 1       |        |   |   | 10,045        |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 10,046 |   |
| Net loss attributable to noncontrolling interest                             |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |   |          |   |   | (604 | ) |   |   | (604 | ) |
| Comprehensive Income (Loss)                                                  |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   |   |   |
| Net Loss                                                                     |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (100,141 | )      |     |   |   |          |   |   |   |   |   |   | (100,141 | ) |
| Other Comprehensive Income (Loss)                                            |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                              |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   | (3,489 | )             |   |   |   |   |   |   | (3,489 | ) |
| Total Comprehensive Income (Loss)                                            |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (100,141 | )      |     |   | (3,489 | )             |   |   |   |   |   |   | (103,630 | ) |
| Balance at October 31, 1999                                                  |   |         | 19,789,694 |   |    | $      | 198     |        |   | $      | 164,205       |   |   | $              | (181,349 | )      |     | $      | (5,585 | )             |   | $ | (604 | ) |   | $ | (23,135 | ) |

----

| CardioGenics Holdings Inc.                                              |
|-------------------------------------------------------------------------|
| (A Development Stage Company)                                           |
| Consolidated Statements of Changes in Stockholders' Equity (Deficiency) |
| For the year ended October 31, 2011                                     |

|                                                                                             |   |         |       |   |    |   |    |        |   |   | Deficit       |   |   |           |     |   |     |   |   |          |   |
|--------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|---------|-------------|--------|--------|---------------|--------|--------|----------------|----------|--------|----------|--------|--------|---------------|--------|
|                                                                                             |   |         |       |   |    |   |    |        |   |   | Accumulated   |   |   |           |     |   |     |   |   |          |   |
|                                                                                             |   |         |       |   |    |   |    |        |   |   | During        |   |   | Accumulated    |     |   |     |   |   | Total         |   |
|                                                                                             |   |         |       |   |    |   |    | Additional  |   |   | the           |   |   | Other          |     |   |     |   |   | Stockholders' |   |
|                                                                                             |   | Common Stock |       |   | Paid-in |   |    | Development |   |   | Comprehensive |   |   | Noncontrolling |     |   | Equity   |   |
|                                                                                             |   | Shares       |       |   | Amount  |   |    | Capital     |   |   | Stage         |   |   | Income (Loss)  |     |   | Interest |   |   | (Deficiency)  |   |
|                                                                                             |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |   |          |   |
| Balance November 1, 1999                                                                         |   |         | 19,789,694 |   |    | $      | 198     |        |   | $      | 164,205       |   |   | $              | (181,349 | )      |     | $      | (5,585 | )             |   | $ | (604 | ) |   | $ | (23,135 | ) |
| Issuance of common shares for cash November 1999, $.03                                           |   |         | 318,546    |   |    |   | 3       |        |   |   | 99,997        |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 100,000 |   |
| Issuance of common shares for minority shareholders as employee compensation December 1999, $.03 |   |         | —    |   |    |   | — |        |   |   | 3,396         |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 3,396 |   |
| Issuance of common shares for cash March 2000, $.03                                              |   |         | 167,237    |   |    |   | 2       |        |   |   | 43,124        |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 43,126 |   |
| Issuance of common shares for minority shareholders for cash March, 2000, $.03                   |   |         | —    |   |    |   | — |        |   |   | 25,330        |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 25,330 |   |
| Issuance of common shares for cash April 2000, $.03                                              |   |         | 23,891     |   |    |   | — |        |   |   | 6,128         |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 6,128 |   |
| Loan Payable plus interest exchanged for shares July 2000, $.03                                  |   |         | 356,772    |   |    |   | 4       |        |   |   | 111,996       |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 112,000 |   |
| Issuance of common shares for minority shareholders as employee compensation October 2000, $.03  |   |         | —    |   |    |   | — |        |   |   | 6,611         |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 6,611 |   |
| Issuance of stock options in exchange for services rendered October 2000                         |   |         | —    |   |    |   |    |        |   |   | 11,570        |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   | 11,570 |   |
| Net loss attributable to noncontrolling interest                                                 |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |   |          |   |   | (1,840 | ) |   |   | (1,840 | ) |
| Comprehensive Income (Loss)                                                                      |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   |   |   |
| Net Loss                                                                                         |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (152,525 | )      |     |   |   |          |   |   |   |   |   |   | (152,525 | ) |
| Other Comprehensive Income (Loss)                                                                |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |   |          |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                                                  |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   | 921    |          |   |   |   |   |   |   | 921 |   |
| Total Comprehensive Income (Loss)                                                                |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (152,525 | )      |     |   | 921    |          |   |   |   |   |   |   | (151,604 | ) |
| Balance at October 31, 2000                                                                      |   |         | 20,656,140 |   |    | $      | 207     |        |   | $      | 472,357       |   |   | $              | (333,874 | )      |     | $      | (4,664 | )             |   | $ | (2,444 | ) |   | $ | 131,582 |   |

|                                                                                           |   |         |       |   |    |   |    |        |   |   | Deficit       |   |   |           |     |   |     |   |    |          |   |
|------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|---------|-------------|--------|--------|---------------|--------|--------|----------------|----------|--------|----------|--------|---------|---------------|--------|
|                                                                                           |   |         |       |   |    |   |    |        |   |   | Accumulated   |   |   |           |     |   |     |   |    |          |   |
|                                                                                           |   |         |       |   |    |   |    |        |   |   | During        |   |   | Accumulated    |     |   |     |   |    | Total         |   |
|                                                                                           |   |         |       |   |    |   |    | Additional  |   |   | the           |   |   | Other          |     |   |     |   |    | Stockholders' |   |
|                                                                                           |   | Common Stock |       |   | Paid-in |   |    | Development |   |   | Comprehensive |   |   | Noncontrolling |     |   | Equity   |   |
|                                                                                           |   | Shares       |       |   | Amount  |   |    | Capital     |   |   | Stage         |   |   | Income (Loss)  |     |   | Interest |   |    | (Deficiency)  |   |
|                                                                                           |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |    |          |   |
| Balance November 1, 2000                                                                       |   |         | 20,656,140 |   |    | $      | 207     |        |   | $      | 472,357       |   |   | $              | (333,874 | )      |     | $      | (4,664  | )             |   | $ | (2,444 | ) |   | $ | 131,582 |   |
| Issuance of common shares as employee compensation October 2001, $.03                          |   |         | 2,410      |   |    |   | — |        |   |   | 925           |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 925 |   |
| Issuance of common share for minority shareholders as employee compensation October 2001, $.03 |   |         | —    |   |    |   | — |        |   |   | 6,169         |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 6,169 |   |
| Issuance of  stock options in exchange for services rendered October 2001            |   |         | —    |   |    |   | — |        |   |   | 22,269        |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 22,269 |   |
| Net loss attributable to noncontrolling interest                                               |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |    |          |   |   | (1,500 | ) |   |   | (1,500 | ) |
| Comprehensive Income (Loss)                                                                    |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   |   |   |
| Net Loss                                                                                       |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (114,761 | )      |     |   |    |          |   |   |   |   |   |   | (114,761 | ) |
| Other Comprehensive Income (Loss)                                                              |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                                                |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   | (10,528 | )             |   |   |   |   |   |   | (10,528 | ) |
| Total Comprehensive Income (Loss)                                                              |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (114,761 | )      |     |   | (10,528 | )             |   |   |   |   |   |   | (125,289 | ) |
| Balance at October 31, 2001                                                                    |   |         | 20,658,550 |   |    | $      | 207     |        |   | $      | 501,720       |   |   | $              | (448,635 | )      |     | $      | (15,192 | )             |   | $ | (3,944 | ) |   | $ | 34,156 |   |

|                                                                                            |   |         |       |   |    |   |    |        |   |   | Deficit       |   |   |           |     |   |     |   |    |          |   |
|-------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|---------|-------------|--------|--------|---------------|--------|--------|----------------|----------|--------|----------|--------|---------|---------------|--------|
|                                                                                            |   |         |       |   |    |   |    |        |   |   | Accumulated   |   |   |           |     |   |     |   |    |          |   |
|                                                                                            |   |         |       |   |    |   |    |        |   |   | During        |   |   | Accumulated    |     |   |     |   |    | Total         |   |
|                                                                                            |   |         |       |   |    |   |    | Additional  |   |   | the           |   |   | Other          |     |   |     |   |    | Stockholders' |   |
|                                                                                            |   | Common Stock |       |   | Paid-in |   |    | Development |   |   | Comprehensive |   |   | Noncontrolling |     |   | Equity   |   |
|                                                                                            |   | Shares       |       |   | Amount  |   |    | Capital     |   |   | Stage         |   |   | Income (Loss)  |     |   | Interest |   |    | (Deficiency)  |   |
|                                                                                            |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |    |          |   |
| Balance November 1, 2001                                                                        |   |         | 20,658,550 |   |    | $      | 207     |        |   | $      | 501,720       |   |   | $              | (448,635 | )      |     | $      | (15,192 | )             |   | $ | (3,944 | ) |   | $ | 34,156 |   |
| Issuance of common shares for cash June 2002, $.03                                              |   |         | 1,051,211  |   |    |   | 11      |        |   |   | 319,011       |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 319,022 |   |
| Issuance of common shares to minority shareholders for cash July 2002, $.03                     |   |         | —    |   |    |   | — |        |   |   | 3,235         |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 3,235 |   |
| Issuance of common shares for cash September 2002, $.03                                         |   |         | 20,957     |   |    |   | — |        |   |   | 6,345         |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 6,345 |   |
| Issuance of common shares for minority shareholders as employee compensation October 2002, $.03 |   |         | —    |   |    |   | — |        |   |   | 9,505         |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 9,505 |   |
| Issuance of stock options in exchange for services rendered October 2002                        |   |         | —    |   |    |   | — |        |   |   | 70,518        |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 70,518 |   |
| Net loss attributable to noncontrolling interest                                                |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |    |          |   |   | (2,243 | ) |   |   | (2,243 | ) |
| Comprehensive Income (Loss)                                                                     |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   |   |   |
| Net Loss                                                                                        |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (156,214 | )      |     |   |    |          |   |   |   |   |   |   | (156,214 | ) |
| Other Comprehensive Income (Loss)                                                               |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                                                 |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   | (11,506 | )             |   |   |   |   |   |   | (11,506 | ) |
| Total Comprehensive Income (Loss)                                                               |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (156,214 | )      |     |   | (11,506 | )             |   |   |   |   |   |   | (167,720 | ) |
| Balance at October 31, 2002                                                                     |   |         | 21,730,718 |   |    | $      | 218     |        |   | $      | 910,334       |   |   | $              | (604,849 | )      |     | $      | (26,698 | )             |   | $ | (6,187 | ) |   | $ | 272,818 |   |

----

| CardioGenics Holdings Inc.                                              |
|-------------------------------------------------------------------------|
| (A Development Stage Company)                                           |
| Consolidated Statements of Changes in Stockholders' Equity (Deficiency) |
| For the year ended October 31, 2011                                     |

|                                                                                            |   |         |       |   |    |   |    |        |   |   | Deficit       |   |   |           |     |   |     |   |    |          |   |
|-------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|---------|-------------|--------|--------|---------------|--------|--------|----------------|----------|--------|----------|--------|---------|---------------|--------|
|                                                                                            |   |         |       |   |    |   |    |        |   |   | Accumulated   |   |   |           |     |   |     |   |    |          |   |
|                                                                                            |   |         |       |   |    |   |    |        |   |   | During        |   |   | Accumulated    |     |   |     |   |    | Total         |   |
|                                                                                            |   |         |       |   |    |   |    | Additional  |   |   | the           |   |   | Other          |     |   |     |   |    | Stockholders' |   |
|                                                                                            |   | Common Stock |       |   | Paid-in |   |    | Development |   |   | Comprehensive |   |   | Noncontrolling |     |   | Equity   |   |
|                                                                                            |   | Shares       |       |   | Amount  |   |    | Capital     |   |   | Stage         |   |   | Income (Loss)  |     |   | Interest |   |    | (Deficiency)  |   |
|                                                                                            |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |    |          |   |
| Balance November 1, 2002                                                                        |   |         | 21,730,718 |   |    | $      | 218     |        |   | $      | 910,334       |   |   | $              | (604,849 | )      |     | $      | (26,698 | )             |   | $ | (6,187 | ) |   | $ | 272,818 |   |
| Issuance of common shares for cash May 2003, $.03                                               |   |         | 28,292     |   |    |   | — |        |   |   | 9,871         |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 9,871 |   |
| Issuance of common shares for minority shareholders for cash May 2003 $.03                      |   |         | —    |   |    |   | — |        |   |   | 10,967        |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 10,967 |   |
| Issuance of warrants in conjunction with convertible debentures September 2003                  |   |         |       |   |    |   |    |        |   |   | 358,406       |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 358,406 |   |
| Issuance of common shares as employee compensation October 2003, $.04                           |   |         | 56,584     |   |    |   | 1       |        |   |   | 20,421        |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 20,422 |   |
| Issuance of common shares for minority shareholders as employee compensation October 2003, $.04 |   |         | —    |   |    |   | — |        |   |   | 7,564         |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 7,564 |   |
| Issuance of stock options in exchange for services rendered October 2003                        |   |         | —    |   |    |   | — |        |   |   | 23,580        |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   | 23,580 |   |
| Net loss attributable to noncontrolling interest                                                |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |    |          |   |   | (3,825 | ) |   |   | (3,825 | ) |
| Comprehensive Income (Loss)                                                                     |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   |   |   |
| Net Loss                                                                                        |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (228,993 | )      |     |   |    |          |   |   |   |   |   |   | (228,993 | ) |
| Other Comprehensive Income (Loss)                                                               |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   |    |          |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                                                 |   |         |       |   |    |   |    |        |   |   |          |   |   |           |     |   |     |   | 42,957  |          |   |   |   |   |   |   | 42,957 |   |
| Total Comprehensive Income (Loss)                                                               |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (228,993 | )      |     |   | 42,957  |          |   |   |   |   |   |   | (186,036 | ) |
| Balance at October 31, 2003                                                                     |   |         | 21,815,594 |   |    | $      | 219     |        |   | $      | 1,341,143     |   |   | $              | (833,842 | )      |     | $      | 16,259  |          |   | $ | (10,012 | ) |   | $ | 513,767 |   |

|                                                                                          |   |         |       |   |    |   |    |        |   |   | Deficit       |   |   |           |       |   |     |   |   |          |   |
|-----------------------------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|---------|-------------|--------|--------|---------------|--------|--------|----------------|------------|--------|----------|--------|--------|---------------|--------|
|                                                                                          |   |         |       |   |    |   |    |        |   |   | Accumulated   |   |   |           |       |   |     |   |   |          |   |
|                                                                                          |   |         |       |   |    |   |    |        |   |   | During        |   |   | Accumulated    |       |   |     |   |   | Total         |   |
|                                                                                          |   |         |       |   |    |   |    | Additional  |   |   | the           |   |   | Other          |       |   |     |   |   | Stockholders' |   |
|                                                                                          |   | Common Stock |       |   | Paid-in |   |    | Development |   |   | Comprehensive |   |   | Noncontrolling |       |   | Equity   |   |
|                                                                                          |   | Shares       |       |   | Amount  |   |    | Capital     |   |   | Stage         |   |   | Income (Loss)  |       |   | Interest |   |   | (Deficiency)  |   |
|                                                                                          |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   |   |          |   |
| Balance November 1, 2003                                                                      |   |         | 21,815,594 |   |    | $      | 219     |        |   | $      | 1,341,143     |   |   | $              | (833,842   | )      |     | $      | 16,259 |          |   | $ | (10,012 | ) |   | $ | 513,767 |   |
| Issuance of warrants in conjunction with convertible debentures September 2004                |   |         |       |   |    |   |    |        |   |   | 152,628       |   |   |           |       |   |     |   |   |          |   |   |   |   |   |   | 152,628 |   |
| Issuance of common shares as employee compensation October 2004, $.04                         |   |         | 123,646    |   |    |   | 1       |        |   |   | 47,316        |   |   |           |       |   |     |   |   |          |   |   |   |   |   |   | 47,317 |   |
| Issuance of common shares as directors' compensation October 2004, $.04                       |   |         | 157,177    |   |    |   | 2       |        |   |   | 60,147        |   |   |           |       |   |     |   |   |          |   |   |   |   |   |   | 60,149 |   |
| Issuance of stock options in exchange for services rendered October 2004                      |   |         | —    |   |    |   | — |        |   |   | 27,669        |   |   |           |       |   |     |   |   |          |   |   |   |   |   |   | 27,669 |   |
| Issuance of options to directors and committee chairmen for services rendered in October 2004 |   |         |       |   |    |   |    |        |   |   | 54,582        |   |   |           |       |   |     |   |   |          |   |   |   |   |   |   | 54,582 |   |
| Net loss attributable to noncontrolling interest                                              |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   |   |          |   |   | (9,774 | ) |   |   | (9,774 | ) |
| Comprehensive Income (Loss)                                                                   |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   |   |          |   |   |   |   |   |   |   |   |
| Net Loss                                                                                      |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (592,706   | )      |     |   |   |          |   |   |   |   |   |   | (592,706 | ) |
| Other Comprehensive Income (Loss)                                                             |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   |   |          |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                                               |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   | (6,136 | )             |   |   |   |   |   |   | (6,136 | ) |
| Total Comprehensive Income (Loss)                                                             |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (592,706   | )      |     |   | (6,136 | )             |   |   |   |   |   |   | (598,842 | ) |
| Balance at October 31, 2004                                                                   |   |         | 22,096,417 |   |    | $      | 222     |        |   | $      | 1,683,485     |   |   | $              | (1,426,548 | )      |     | $      | 10,123 |          |   | $ | (19,786 | ) |   | $ | 247,496 |   |

----

| CardioGenics Holdings Inc.                                              |
|-------------------------------------------------------------------------|
| (A Development Stage Company)                                           |
| Consolidated Statements of Changes in Stockholders' Equity (Deficiency) |
| For the year ended October 31, 2011                                     |

|                                                                     |   |         |       |   |    |   |    |        |   |   | Deficit       |   |   |           |       |   |     |   |    |          |   |
|--------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|---------|-------------|--------|--------|---------------|--------|--------|----------------|------------|--------|----------|--------|---------|---------------|--------|
|                                                                     |   |         |       |   |    |   |    |        |   |   | Accumulated   |   |   |           |       |   |     |   |    |          |   |
|                                                                     |   |         |       |   |    |   |    |        |   |   | During        |   |   | Accumulated    |       |   |     |   |    | Total         |   |
|                                                                     |   |         |       |   |    |   |    | Additional  |   |   | the           |   |   | Other          |       |   |     |   |    | Stockholders' |   |
|                                                                     |   | Common Stock |       |   | Paid-in |   |    | Development |   |   | Comprehensive |   |   | Noncontrolling |       |   | Equity   |   |
|                                                                     |   | Shares       |       |   | Amount  |   |    | Capital     |   |   | Stage         |   |   | Income (Loss)  |       |   | Interest |   |    | (Deficiency)  |   |
|                                                                     |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   |    |          |   |
| Balance November 1, 2004                                                 |   |         | 22,096,417 |   |    | $      | 222     |        |   | $      | 1,683,485     |   |   | $              | (1,426,548 | )      |     | $      | 10,123  |          |   | $ | (19,786 | ) |   | $ | 247,496 |   |
| Issuance of common shares as employee compensation November 2004, $.04   |   |         | 9,431      |   |    |   | — |        |   |   | 3,760         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 3,760 |   |
| Issuance of common shares as employee compensation December 2004, $.04   |   |         | 9,431      |   |    |   | — |        |   |   | 3,692         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 3,692 |   |
| Issuance of common shares as employee compensation January 2005, $.04    |   |         | 9,431      |   |    |   | — |        |   |   | 3,674         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 3,674 |   |
| Issuance of common shares as employee compensation February 2005, $.04   |   |         | 9,431      |   |    |   | — |        |   |   | 3,629         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 3,629 |   |
| Issuance of common shares as employee compensation March 2005, $.04      |   |         | 9,431      |   |    |   | — |        |   |   | 3,701         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 3,701 |   |
| Issuance of common shares as employee compensation April 2005, $.04      |   |         | 9,431      |   |    |   | — |        |   |   | 3,641         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 3,641 |   |
| Issuance of common shares as employee compensation May 2005, $.04        |   |         | 9,431      |   |    |   | — |        |   |   | 3,584         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 3,584 |   |
| Issuance of common shares as employee compensation June 2005, $.04       |   |         | 9,431      |   |    |   | — |        |   |   | 3,628         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 3,628 |   |
| Issuance of common shares as employee compensation July 2005, $.04       |   |         | 9,431      |   |    |   | — |        |   |   | 3,680         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 3,680 |   |
| Issuance of common shares as employee compensation August 2005, $.04     |   |         | 9,431      |   |    |   | — |        |   |   | 3,737         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 3,737 |   |
| Issuance of common shares as employee compensation September 2005, $.04  |   |         | 9,431      |   |    |   | — |        |   |   | 3,821         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 3,821 |   |
| Issuance of common shares as employee compensation October 2005, $.04    |   |         | 9,431      |   |    |   | — |        |   |   | 3,822         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 3,822 |   |
| Issuance of stock options in exchange for services rendered October 2005 |   |         | —    |   |    |   | — |        |   |   | 33,973        |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 33,973 |   |
| Net loss attributtable to noncontolling interest                         |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   |    |          |   |   | (11,195 | ) |   |   | (11,195 | ) |
| Comprehensive Income (Loss)                                              |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   |   |   |
| Net Loss                                                                 |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (682,408   | )      |     |   |    |          |   |   |   |   |   |   | (682,408 | ) |
| Other Comprehensive Income (Loss)                                        |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                          |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   | (13,288 | )             |   |   |   |   |   |   | (13,288 | ) |
| Total Comprehensive Income (Loss)                                        |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (682,408   | )      |     |   | (13,288 | )             |   |   |   |   |   |   | (695,696 | ) |
| Balance at October 31, 2005                                              |   |         | 22,209,589 |   |    | $      | 222     |        |   | $      | 1,761,827     |   |   | $              | (2,108,956 | )      |     | $      | (3,165  | )             |   | $ | (30,981 | ) |   | $ | (381,053 | ) |

|                                                                            |   |         |       |   |    |   |    |        |   |   | Deficit       |   |   |           |       |   |     |   |    |          |   |
|---------------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|---------|-------------|--------|--------|---------------|--------|--------|----------------|------------|--------|----------|--------|---------|---------------|--------|
|                                                                            |   |         |       |   |    |   |    |        |   |   | Accumulated   |   |   |           |       |   |     |   |    |          |   |
|                                                                            |   |         |       |   |    |   |    |        |   |   | During        |   |   | Accumulated    |       |   |     |   |    | Total         |   |
|                                                                            |   |         |       |   |    |   |    | Additional  |   |   | the           |   |   | Other          |       |   |     |   |    | Stockholders' |   |
|                                                                            |   | Common Stock |       |   | Paid-in |   |    | Development |   |   | Comprehensive |   |   | Noncontrolling |       |   | Equity   |   |
|                                                                            |   | Shares       |       |   | Amount  |   |    | Capital     |   |   | Stage         |   |   | Income (Loss)  |       |   | Interest |   |    | (Deficiency)  |   |
|                                                                            |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   |    |          |   |
| Balance November 1, 2005                                                        |   |         | 22,209,589 |   |    | $      | 222     |        |   | $      | 1,761,827     |   |   | $              | (2,108,956 | )      |     | $      | (3,165  | )             |   | $ | (30,981 | ) |   | $ | (381,053 | ) |
| Issuance of common shares as employee compensation November 2005, $.04          |   |         | 10,478     |   |    |   | — |        |   |   | 4,232         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 4,232 |   |
| Issuance of common shares in exchange for services rendered December 2005, $.04 |   |         | 10,478     |   |    |   | — |        |   |   | 4,305         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 4,305 |   |
| Issuance of common shares in exchange for services rendered January 2006, $.04  |   |         | 10,478     |   |    |   | — |        |   |   | 4,321         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 4,321 |   |
| Issuance of stock options in exchange for services rendered October 2006        |   |         | —    |   |    |   | — |        |   |   | 2,658         |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   | 2,658 |   |
| Net loss attributable to noncontrolling interest                                |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   |    |          |   |   | (8,561 | ) |   |   | (8,561 | ) |
| Comprehensive Income (Loss)                                                     |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   |   |   |
| Net Loss                                                                        |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (522,532   | )      |     |   |    |          |   |   |   |   |   |   | (522,532 | ) |
| Other Comprehensive Income (Loss)                                               |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   |    |          |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                                 |   |         |       |   |    |   |    |        |   |   |          |   |   |           |       |   |     |   | (25,688 | )             |   |   |   |   |   |   | (25,688 | ) |
| Total Comprehensive Income (Loss)                                               |   |         |       |   |    |   |    |        |   |   |          |   |   |           | (522,532   | )      |     |   | (25,688 | )             |   |   |   |   |   |   | (548,220 | ) |
| Balance at October 31, 2006                                                     |   |         | 22,241,023 |   |    | $      | 222     |        |   | $      | 1,777,343     |   |   | $              | (2,631,488 | )      |     | $      | (28,853 | )             |   | $ | (39,542 | ) |   | $ | (922,318 | ) |

----

| CardioGenics Holdings Inc.                                              |
|-------------------------------------------------------------------------|
| (A Development Stage Company)                                           |
| Consolidated Statements of Changes in Stockholders' Equity (Deficiency) |
| For the year ended October 31, 2011                                     |

|                                                                                                        |   |         |       |   |    |   |   |        |   |   | Deficit       |   |   |           |       |   |     |   |     |          |   |
|-------------------------------------------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|--------|-------------|--------|--------|---------------|--------|--------|----------------|------------|--------|----------|--------|----------|---------------|--------|
|                                                                                                        |   |         |       |   |    |   |   |        |   |   | Accumulated   |   |   |           |       |   |     |   |     |          |   |
|                                                                                                        |   |         |       |   |    |   |   |        |   |   | During        |   |   | Accumulated    |       |   |     |   |     | Total         |   |
|                                                                                                        |   |         |       |   |    |   |   | Additional  |   |   | the           |   |   | Other          |       |   |     |   |     | Stockholders' |   |
|                                                                                                        |   | Common Stock |       |   | Paid-in |   |   | Development |   |   | Comprehensive |   |   | Noncontrolling |       |   | Equity   |   |
|                                                                                                        |   | Shares       |       |   | Amount  |   |   | Capital     |   |   | Stage         |   |   | Income (Loss)  |       |   | Interest |   |     | (Deficiency)  |   |
|                                                                                                        |   |         |       |   |    |   |   |        |   |   |          |   |   |           |       |   |     |   |     |          |   |
| Balance November 1, 2006                                                                                    |   |         | 22,241,023 |   |    | $      | 222    |        |   | $      | 1,777,343     |   |   | $              | (2,631,488 | )      |     | $      | (28,853  | )             |   | $ | (39,542 | ) |   | $ | (922,318 | ) |
| Incremental increase in fair value of warrants in conjunction with re-structuring of debentures, April 2007 |   |         |       |   |    |   |   |        |   |   | 44,096        |   |   |           |       |   |     |   |     |          |   |   |   |   |   |   | 44,096 |   |
| Net loss attributable to noncontrolling interest                                                            |   |         |       |   |    |   |   |        |   |   |          |   |   |           |       |   |     |   |     |          |   |   | (4,972 | ) |   |   | (4,972 | ) |
| Comprehensive Income (Loss)                                                                                 |   |         |       |   |    |   |   |        |   |   |          |   |   |           |       |   |     |   |     |          |   |   |   |   |   |   |   |   |
| Net Loss                                                                                                    |   |         |       |   |    |   |   |        |   |   |          |   |   |           | (303,477   | )      |     |   |     |          |   |   |   |   |   |   | (303,477 | ) |
| Other Comprehensive Income (Loss)                                                                           |   |         |       |   |    |   |   |        |   |   |          |   |   |           |       |   |     |   |     |          |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                                                             |   |         |       |   |    |   |   |        |   |   |          |   |   |           |       |   |     |   | (184,432 | )             |   |   |   |   |   |   | (184,432 | ) |
| Total Comprehensive Income (Loss)                                                                           |   |         |       |   |    |   |   |        |   |   |          |   |   |           | (303,477   | )      |     |   | (184,432 | )             |   |   |   |   |   |   | (487,909 | ) |
| Balance at October 31, 2007                                                                                 |   |         | 22,241,023 |   |    | $      | 222    |        |   | $      | 1,821,439     |   |   | $              | (2,934,965 | )      |     | $      | (213,285 | )             |   | $ | (44,514 | ) |   | $ | (1,371,103 | ) |

|                                                                               |   |         |       |   |    |   |   |        |   |   | Deficit       |   |   |           |       |   |     |   |     |          |   |
|------------------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|--------|-------------|--------|--------|---------------|--------|--------|----------------|------------|--------|----------|--------|----------|---------------|--------|
|                                                                               |   |         |       |   |    |   |   |        |   |   | Accumulated   |   |   |           |       |   |     |   |     |          |   |
|                                                                               |   |         |       |   |    |   |   |        |   |   | During        |   |   | Accumulated    |       |   |     |   |     | Total         |   |
|                                                                               |   |         |       |   |    |   |   | Additional  |   |   | the           |   |   | Other          |       |   |     |   |     | Stockholders' |   |
|                                                                               |   | Common Stock |       |   | Paid-in |   |   | Development |   |   | Comprehensive |   |   | Noncontrolling |       |   | Equity   |   |
|                                                                               |   | Shares       |       |   | Amount  |   |   | Capital     |   |   | Stage         |   |   | Income (Loss)  |       |   | Interest |   |     | (Deficiency)  |   |
|                                                                               |   |         |       |   |    |   |   |        |   |   |          |   |   |           |       |   |     |   |     |          |   |
| Balance November 1, 2007                                                           |   |         | 22,241,023 |   |    | $      | 222    |        |   | $      | 1,821,439     |   |   | $              | (2,934,965 | )      |     | $      | (213,285 | )             |   | $ | (44,514 | ) |   | $ | (1,371,103 | ) |
| Issuance of warrants in conjunction with re-structuring of debentures October 2008 |   |         |       |   |    |   |   |        |   |   | 231,580       |   |   |           |       |   |     |   |     |          |   |   |   |   |   |   | 231,580 |   |
| Net loss attributable to noncontrolling interest                                   |   |         |       |   |    |   |   |        |   |   |          |   |   |           |       |   |     |   |     |          |   |   | (21,813 | ) |   |   | (21,813 | ) |
| Comprehensive Income (Loss)                                                        |   |         |       |   |    |   |   |        |   |   |          |   |   |           |       |   |     |   |     |          |   |   |   |   |   |   |   |   |
| Net Loss                                                                           |   |         |       |   |    |   |   |        |   |   |          |   |   |           | (1,331,408 | )      |     |   |     |          |   |   |   |   |   |   | (1,331,408 | ) |
| Other Comprehensive Income (Loss)                                                  |   |         |       |   |    |   |   |        |   |   |          |   |   |           |       |   |     |   |     |          |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                                    |   |         |       |   |    |   |   |        |   |   |          |   |   |           |       |   |     |   | 422,766  |          |   |   |   |   |   |   | 422,766 |   |
| Total Comprehensive Income (Loss)                                                  |   |         |       |   |    |   |   |        |   |   |          |   |   |           | (1,331,408 | )      |     |   | 422,766  |          |   |   |   |   |   |   | (908,642 | ) |
| Balance at October 31, 2008                                                        |   |         | 22,241,023 |   |    | $      | 222    |        |   | $      | 2,053,019     |   |   | $              | (4,266,373 | )      |     | $      | 209,481  |          |   | $ | (66,327 | ) |   | $ | (2,069,978 | ) |

----

| CardioGenics Holdings Inc.                                              |
|-------------------------------------------------------------------------|
| (A Development Stage Company)                                           |
| Consolidated Statements of Changes in Stockholders' Equity (Deficiency) |
| For the year ended October 31, 2011                                     |

|                                                                                                                       |   |         |       |    |   |   |        |       |   |          | Deficit     |   |           |          |        |   |     |   |     |          |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|---------|--------|--------|-------------|------------|--------|---------------|-------------|--------|----------------|---------------|-------------|--------|----------|--------|----------|---------------|--------|
|                                                                                                                       |   |         |       |    |   |   |        |       |   |          | Accumulated |   |           |          |        |   |     |   |     |          |   |
|                                                                                                                       |   |         |       |    |   |   |        |       |   |          | During      |   |           | Accumulated   |        |   |     |   |     | Total         |   |
|                                                                                                                       |   |         |       |    |   |   |        | Additional |   |          | the         |   |           | Other         |        |   |     |   |     | Stockholders' |   |
|                                                                                                                       |   | Common Stock |       | Paid-in |   |   | Development |       |   | Comprehensive |        |   | Noncontrolling |          |        | Equity |     |
|                                                                                                                       |   | Shares       |       |    | Amount |   |        | Capital    |   |          | Stage       |   |           | Income (Loss) |        |   | Interest |   |     | (Deficiency)  |   |
|                                                                                                                       |   |         |       |    |   |   |        |       |   |          |        |   |           |          |        |   |     |   |     |          |   |
| Balance November 1, 2008                                                                                                   |   |         | 22,241,023 |    |   | $      | 222         |       |   | $             | 2,053,019   |   |           | $             | (4,266,373  | )      |     | $      | 209,481  |          |   | $ | (66,327 | ) |   | $ | (2,069,978 | ) |
|                                                                                                                       |   |         |       |    |   |   |        |       |   |          |        |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   |   |   |
| Issuance of common shares as payment of debenture interest, January 2009, $0.05 per share                                  |   |         | 495,094    |    |   |   | 5           |       |   |          | 236,238     |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 236,243 |   |
| Issuance of common shares on exercise of options, April 2009                                                               |   |         | 570,980    |    |   |   | 6           |       |   |          | 22          |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 28 |   |
| Issuance of common shares as employee compensation for the years 2001 to 2008, May 2009, $0.04 per share                   |   |         | 3,153,878  |    |   |   | 32          |       |   |          | 1,298,753   |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 1,298,785 |   |
| Issuance of common shares to directors, pursuant to debenture financing of January 2009, May 2009, $0.04 per share         |   |         | 928,394    |    |   |   | 9           |       |   |          | 382,521     |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 382,530 |   |
| Issuance of common shares in exchange for services rendered, June 2009, $0.04 per share                                    |   |         | 5,023      |    |   |   | —     |       |   |          | 2,062       |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 2,062 |   |
| Issuance of common shares for cash June 2009, $0.04 per share                                                              |   |         | 24,090     |    |   |   | —     |       |   |          | 8,602       |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 8,602 |   |
| Issuance of common shares in exchange for services rendered, July 2009, $0.04 per share                                    |   |         | 47,153     |    |   |   | —     |       |   |          | 20,250      |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 20,250 |   |
| Issuance of common shares as payment of director compensation, for the years 2004 through 2009, July 2009, $0.04 per share |   |         | 241,005    |    |   |   | 2           |       |   |          | 103,498     |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 103,500 |   |
| Issuance of common shares as employee compensation pursuant to reverse merger transaction, July 2009, $0.04 per share      |   |         | 1,173,592  |    |   |   | 12          |       |   |          | 503,988     |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 504,000 |   |
| Issuance of common shares to retire debentures, July 2009, $0.03 per share                                                 |   |         | 3,346,028  |    |   |   | 34          |       |   |          | 997,538     |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 997,572 |   |
| Issuance of common shares as payment of debenture interest, January 2009, July 2009, $0.05 per share                       |   |         | 855,712    |    |   |   | 9           |       |   |          | 418,659     |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 418,668 |   |
| Issuance of common shares to retire director's loan, July 2009 $0.04 per share                                             |   |         | 2,377,813  |    |   |   | 24          |       |   |          | 884,976     |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 885,000 |   |
| Issuance of common shares as payment of interest on director's loan, July 2009, $0.04 per share                            |   |         | 218,556    |    |   |   | 2           |       |   |          | 108,633     |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 108,635 |   |
| Issuance of common shares for cash, July 2009, $0.04 per share                                                             |   |         | 6,540,017  |    |   |   | 66          |       |   |          | 2,714,934   |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 2,715,000 |   |
| Issuance of common shares as compensation for consulting contract, July 2009, $0.38 per share                              |   |         | 100,000    |    |   |   | 1           |       |   |          | 379,999     |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 380,000 |   |
| Issuance of common shares on exercise of warrants by YA Global for cash August 2009                                        |   |         | 25,000     |    |   |   | —     |       |   |          | 45,000      |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 45,000 |   |
| Beneficial conversion charge on 3rd debenture                                                                              |   |         | —    |    |   |   |        |       |   |          | 335,000     |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 335,000 |   |
| Beneficial conversion charge on director's loan                                                                            |   |         | —    |    |   |   |        |       |   |          | 117,109     |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 117,109 |   |
| Reclassification of warrants to derivative liability                                                                       |   |         |       |    |   |   |        |       |   |          | (786,710    | )      |           |          |        |   |     |   |     |          |   |   |   |   |   |   | (786,710 | ) |
| Assumption of options in reverse merger                                                                                    |   |         |       |    |   |   |        |       |   |          | 644,806     |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 644,806 |   |
| Reclassification of derivative liability on increase of authorized shares                                                  |   |         |       |    |   |   |        |       |   |          | 13,501,360  |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   | 13,501,360 |   |
|                                                                                                                       |   |         |       |    |   |   |        |       |   |          |        |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   |   |   |
| Effect of Reverse Merger                                                                                                   |   |         | 7,089,282  |    |   |   | 71          |       |   |          | 11,573,465  |   |           |          | —     |   |     |   | —  |          |   |   |   |   |   |   | 11,573,536 |   |
|                                                                                                                       |   |         |       |    |   |   |        |       |   |          |        |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   |   |   |
| Net loss attributable to noncontrolling interest                                                                           |   |         |       |    |   |   |        |       |   |          |        |   |           |          |        |   |     |   |     |          |   |   | (211,670 | ) |   |   | (211,670 | ) |
| Comprehensive Income (Loss)                                                                                                |   |         |       |    |   |   |        |       |   |          |        |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   |   |   |
| Net Loss                                                                                                                   |   |         |       |    |   |   |        |       |   |          |        |   |           |          | (28,715,913 | )      |     |   |     |          |   |   |   |   |   |   | (28,715,913 | ) |
| Other Comprehensive Income (Loss)                                                                                          |   |         |       |    |   |   |        |       |   |          |        |   |           |          |        |   |     |   |     |          |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                                                                            |   |         |       |    |   |   |        |       |   |          |        |   |           |          |        |   |     |   | (529,296 | )             |   |   |   |   |   |   | (529,296 | ) |
| Total Comprehensive Loss                                                                                                   |   |         |       |    |   |   |        |       |   |          |        |   |           |          | (28,715,913 | )      |     |   | (529,296 | )             |   |   |   |   |   |   | (29,245,209 | ) |
| Balance October 31, 2009                                                                                                   |   |         | 49,432,640 |    |   | $      | 495         |       |   | $             | 35,543,722  |   |           | $             | (32,982,286 | )      |     | $      | (319,815 | )             |   | $ | (277,997 | ) |   | $ | 1,964,119 |   |

----

| CardioGenics Holdings Inc.                                              |
|-------------------------------------------------------------------------|
| (A Development Stage Company)                                           |
| Consolidated Statements of Changes in Stockholders' Equity (Deficiency) |
| For the year ended October 31, 2011                                     |

|                                                                           |   |        |       |   |    |   |    |        |   |   | Deficit       |   |   |           |        |   |     |   |     |         |   |
|--------------------------------------------------------------------------------|--------|-------------|------------|--------|---------|--------|---------|-------------|--------|--------|---------------|--------|--------|----------------|-------------|--------|----------|--------|----------|--------------|--------|
|                                                                           |   |        |       |   |    |   |    |        |   |   | Accumulated   |   |   |           |        |   |     |   |     |         |   |
|                                                                           |   |        |       |   |    |   |    |        |   |   | During        |   |   | Accumulated    |        |   |     |   |     | Total        |   |
|                                                                           |   |        |       |   |    |   |    | Additional  |   |   | the           |   |   | Other          |        |   |     |   |     | Stockholders |   |
|                                                                           |   | CommonStock |       |   | Paid-in |   |    | Development |   |   | Comprehensive |   |   | Noncontrolling |        |   | Equity   |   |
|                                                                           |   | Shares      |       |   | Amount  |   |    | Capital     |   |   | Stage         |   |   | Income (Loss)  |        |   | Interest |   |     | (Deficiency) |   |
|                                                                           |   |        |       |   |    |   |    |        |   |   |          |   |   |           |        |   |     |   |     |         |   |
| Balance November 1, 2009                                                       |   |        | 49,432,640 |   |    | $      | 495     |        |   | $      | 35,543,722    |   |   | $              | (32,982,286 | )      |     | $      | (319,815 | )            |   | $ | (277,997 | ) |   | $ | 1,964,119 |   |
| Issuance of common shares in exchange for services rendered January 2010, $.14 |   |        | 35,000     |   |    |   | — |        |   |   | 49,000        |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 49,000 |   |
| Common shares issued on exercise of Warrants, February 2010                    |   |        | 75,000     |   |    |   | 1       |        |   |   | 35,249        |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 35,250 |   |
| Common shares issued for cash, February 2010                                   |   |        | 77,000     |   |    |   | 1       |        |   |   | 76,999        |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 77,000 |   |
| Common shares issued in exchange for services rendered, May 2010               |   |        | 78,371     |   |    |   | 1       |        |   |   | 88,199        |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 88,200 |   |
| Common shares issued in exchange for services rendered, June 2010              |   |        | 50,000     |   |    |   | — |        |   |   | 18,000        |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 18,000 |   |
| Common shares issued for cash, October 2010                                    |   |        | 3,031,150  |   |    |   | 15      |        |   |   | 1,515,558     |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 1,515,573 |   |
| Common shares issued for subscription receivable, October 2010                 |   |        | 230,000    |   |    |   | 1       |        |   |   | 114,999       |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 115,000 |   |
| Net loss attributable to noncontrolling interest                               |   |        |       |   |    |   |    |        |   |   |          |   |   |           |        |   |     |   |     |         |   |   | (14,225 | ) |   |   | (14,225 | ) |
| Comprehensive Income (Loss)                                                    |   |        |       |   |    |   |    |        |   |   |          |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   |   |   |
| Net Loss                                                                       |   |        |       |   |    |   |    |        |   |   |          |   |   |           | (2,024,272  | )      |     |   |     |         |   |   |   |   |   |   | (2,024,272 | ) |
| Other Comprehensive Income (Loss)                                              |   |        |       |   |    |   |    |        |   |   |          |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                                |   |        |       |   |    |   |    |        |   |   |          |   |   |           |        |   |     |   | 82,307   |         |   |   |   |   |   |   | 82,307 |   |
| Total Comprehensive Income (Loss)                                              |   |        |       |   |    |   |    |        |   |   |          |   |   |           | (2,024,272  | )      |     |   | 82,307   |         |   |   |   |   |   |   | (1,941,965 | ) |
| Balance at October 31, 2010                                                    |   |        | 53,009,161 |   |    | $      | 514     |        |   | $      | 37,441,728    |   |   | $              | (35,006,558 | )      |     | $      | (237,508 | )            |   | $ | (292,222 | ) |   | $ | 1,905,954 |   |

|                                                                             |   |         |       |   |    |   |   |        |   |   | Deficit       |   |   |           |        |   |     |   |     |         |   |
|----------------------------------------------------------------------------------|--------|--------------|------------|--------|---------|--------|--------|-------------|--------|--------|---------------|--------|--------|----------------|-------------|--------|----------|--------|----------|--------------|--------|
|                                                                             |   |         |       |   |    |   |   |        |   |   | Accumulated   |   |   |           |        |   |     |   |     |         |   |
|                                                                             |   |         |       |   |    |   |   |        |   |   | During        |   |   | Accumulated    |        |   |     |   |     | Total        |   |
|                                                                             |   |         |       |   |    |   |   | Additional  |   |   | the           |   |   | Other          |        |   |     |   |     | Stockholders |   |
|                                                                             |   | Common Stock |       |   | Paid-in |   |   | Development |   |   | Comprehensive |   |   | Noncontrolling |        |   | Equity   |   |
|                                                                             |   | Shares       |       |   | Amount  |   |   | Capital     |   |   | Stage         |   |   | Income (Loss)  |        |   | Interest |   |     | (Deficiency) |   |
| Balance November 1, 2010                                                         |   |         | 53,009,161 |   |    | $      | 514    |        |   | $      | 37,441,728    |   |   | $              | (35,006,558 | )      |     | $      | (237,508 | )            |   | $ | (292,222 | ) |   | $ | 1,905,954 |   |
| Issuance of common shares in exchange for services rendered December 2010, $1.00 |   |         | 100,000    |   |    |   | 1      |        |   |   | 99,999        |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 100,000 |   |
| Issuance of common shares for cash December 2010, $.50                           |   |         | 600,000    |   |    |   | 6      |        |   |   | 297,741       |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 297,747 |   |
| Issuance of common shares for cash February 2011, $.50                           |   |         | 100,000    |   |    |   | 1      |        |   |   | 49,999        |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 50,000 |   |
| Issuance of common shares on exercise of warrants, February 2011, $.47           |   |         | 22,005     |   |    |   |   |        |   |   | 10,402        |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 10,402 |   |
| Refund of common shares subscribed for October 2010 in cash February 2011, $.50  |   |         | (30,000    | )      |    |   |   |        |   |   | (15,000       | )      |   |           |        |   |     |   |     |         |   |   |   |   |   |   | (15,000 | ) |
| Re-pricing of options in exchange for services rendered, February 2011           |   |         |       |   |    |   |   |        |   |   | 163,750       |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 163,750 |   |
| Issuance of common shares on exercise of options, February 2011, $.01            |   |         | 275,000    |   |    |   | 3      |        |   |   | 2,747         |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 2,750 |   |
| Issuance of common shares on settlement of lawsuit, August 2011                  |   |         | 1,000,000  |   |    |   | 10     |        |   |   | 599,990       |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 600,000 |   |
| Issuance of warrants on settlement of lawsuit, August 2011                       |   |         |       |   |    |   |   |        |   |   | 1,053,800     |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 1,053,800 |   |
| Issuance of common shares in exchange for services rendered September 2011       |   |         | 550,000    |   |    |   | 5      |        |   |   | 291,495       |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 291,500 |   |
| Issuance of warrants in exchange for services rendered, September 2011           |   |         |       |   |    |   |   |        |   |   | 1,777,350     |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   | 1,777,350 |   |
| Net loss attributable to noncontrolling interest                                 |   |         |       |   |    |   |   |        |   |   |          |   |   |           |        |   |     |   |     |         |   |   | (25,379 | ) |   |   | (25,379 | ) |
| Comprehensive Income (Loss):                                                     |   |         |       |   |    |   |   |        |   |   |          |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   |   |   |
| Net Loss                                                                         |   |         |       |   |    |   |   |        |   |   |          |   |   |           | (3,874,376  | )      |     |   |     |         |   |   |   |   |   |   | (3,874,376 | ) |
| Other Comprehensive Income                                                       |   |         |       |   |    |   |   |        |   |   |          |   |   |           |        |   |     |   |     |         |   |   |   |   |   |   |   |   |
| Currency Translation Adjustment                                                  |   |         |       |   |    |   |   |        |   |   |          |   |   |           |        |   |     |   | 70,752   |         |   |   |   |   |   |   | 70,752 |   |
| Total Comprehensive (Loss)                                                       |   |         |       |   |    |   |   |        |   |   |          |   |   |           | (3,874,376  | )      |     |   | 70,752   |         |   |   |   |   |   |   | (3,803,624 | ) |
| Balance at October 31, 2011                                                      |   |         | 55,626,166 |   |    | $      | 540    |        |   | $      | 41,774,001    |   |   | $              | (38,880,934 | )      |     | $      | (166,756 | )            |   | $ | (317,601 | ) |   | $ | 2,409,250 |   |

----

| CardioGenics Holdings Inc.                                                |
|---------------------------------------------------------------------------|
| Consolidated Statements of Cash Flows                                     |
| Years Ended October 31, 2011 and 2010 and                                 |
| Cumulative from November 20, 1997 (Date of Inception) to October 31, 2011 |

|                                                                                      |   |        |       |   |                |   |       | Cumulative from   |   |
|-------------------------------------------------------------------------------------------|--------|-------------|------------|--------|---------------------|--------|------------|-------------------|--------|
|                                                                                      |   |        |       |   |                |   |       | November 20, 1997 |   |
|                                                                                      |   | Years Ended |       |   | (Date of Inception) |   |
|                                                                                      |   | October 31  |       |   | To October 31,      |   |
|                                                                                      |   | 2011        |       |   | 2010                |   |       | 2011              |   |
|                                                                                      |   |        |       |   |                |   |       |              |   |
| Cash flows from operating activities                                                      |   |        |       |   |                |   |       |              |   |
| Consolidated Net Loss for the Period                                                      |   | $           | (3,899,755 | )      |                | $      | (2,038,497 | )                 |   | $ | (39,198,533 | ) |
| Adjustments to reconcile net loss for the period to net cash used in operating activities |   |        |       |   |                |   |       |              |   |   |   |   |
| Depreciation and amortization of Property and Equipment                                   |   |        | 20,399     |   |                |   | 20,932     |              |   |   | 201,439 |   |
| Amortization of Patent Application Costs                                                  |   |        | 5,207      |   |                |   | 3,023      |              |   |   | 12,411 |   |
| Write-off of Patent Application Costs                                                     |   |        | 55,549     |   |                |   | 105,345    |              |   |   | 214,625 |   |
| Amortization of Deferred Consulting Contract Costs                                        |   |        | 163,750    |   |                |   | —    |              |   |   | 163,750 |   |
| Write-off of Goodwill                                                                     |   |        | —    |   |                |   | —    |              |   |   | 12,780,214 |   |
| Amortization of Deferred Debt Issuance Costs                                              |   |        | —    |   |                |   | —    |              |   |   | 511,035 |   |
| Loss on Extinguishment of Debt                                                            |   |        | —    |   |                |   | —    |              |   |   | 275,676 |   |
| Loss on Change in Value of Derivative Liability                                           |   |        | —    |   |                |   | —    |              |   |   | 12,421,023 |   |
| Interest Accrued and Foreign Exchange Loss on Debt                                        |   |        | —    |   |                |   | —    |              |   |   | 922,539 |   |
| Unrealized Foreign Currency Exchange Gains                                                |   |        | —    |   |                |   | —    |              |   |   | 25,092 |   |
| Beneficial Conversion Charge included in Interest Expense                                 |   |        | —    |   |                |   | —    |              |   |   | 452,109 |   |
| Common Stock and Warrants Issued on Settlement of Lawsuit                                 |   |        | 1,653,800  |   |                |   | —    |              |   |   | 1,653,800 |   |
| Common Stock Issued as Employee or Officer/Director Compensation                          |   |        | —    |   |                |   | —    |              |   |   | 2,508,282 |   |
| Common Stock Issued for Services Rendered, Net of Prepaid Portion                         |   |        | 292,539    |   |                |   | 155,200    |              |   |   | 850,051 |   |
| Stock Options Issued for Services Rendered                                                |   |        | —    |   |                |   | —    |              |   |   | 192,238 |   |
| Stock Options Issued to Directors and Committee Chairman                                  |   |        | —    |   |                |   | —    |              |   |   | 54,582 |   |
| Changes in Operating Assets and Liabilities, Net of Acquisition                           |   |        |       |   |                |   |       |              |   |   |   |   |
| Accounts Receivable                                                                       |   |        | (9,002     | )      |                |   | —    |              |   |   | (9,002 | ) |
| Share Subscriptions Receivable                                                            |   |        | 115,000    |   |                |   | (115,000   | )                 |   |   | — |   |
| Deposits and Prepaid Expenses                                                             |   |        | 38,233     |   |                |   | (77,778    | )                 |   |   | (50,752 | ) |
| Refundable Taxes Receivable                                                               |   |        | (13,232    | )      |                |   | (7,081     | )                 |   |   | (34,327 | ) |
| Government Grants and Investment Tax Credits Receivable                                   |   |        | 156,482    |   |                |   | 19,072     |              |   |   | 20,062 |   |
| Accounts Payable and Accrued Expenses                                                     |   |        | 12,017     |   |                |   | (227,880   | )                 |   |   | (232,740 | ) |
| Advances                                                                                  |   |        | —    |   |                |   | —    |              |   |   | 131 |   |
| Net cash used in operating activities                                                     |   |        | (1,409,013 | )      |                |   | (2,162,664 | )                 |   |   | (6,266,295 | ) |
|                                                                                      |   |        |       |   |                |   |       |              |   |   |   |   |
| Cash flows from investing activities                                                      |   |        |       |   |                |   |       |              |   |   |   |   |
| Cash Acquired from Acquisition                                                            |   |        | —    |   |                |   | —    |              |   |   | 195,885 |   |
| Purchase of Property and Equipment                                                        |   |        | (15,242    | )      |                |   | (11,058    | )                 |   |   | (219,666 | ) |
| Patent Application Costs                                                                  |   |        | (17,764    | )      |                |   | (37,091    | )                 |   |   | (314,570 | ) |
| Net cash used in investing activities                                                     |   |        | (33,006    | )      |                |   | (48,149    | )                 |   |   | (338,351 | ) |
|                                                                                      |   |        |       |   |                |   |       |              |   |   |   |   |
| Cash flows from financing activities                                                      |   |        |       |   |                |   |       |              |   |   |   |   |
| Repayment of Capital Lease Obligation                                                     |   |        | (13,532    | )      |                |   | (2,044     | )                 |   |   | (15,576 | ) |
| Due to Director                                                                           |   |        | (15,149    | )      |                |   | (131,953   | )                 |   |   | 725,330 |   |
| Issue of Debentures                                                                       |   |        | —    |   |                |   | —    |              |   |   | 1,378,305 |   |
| Issue of Common Shares on Exercise of Stock Options                                       |   |        | 2,750      |   |                |   | —    |              |   |   | 2,781 |   |
| Issue of Common Shares on Exercise of Warrants                                            |   |        | 10,402     |   |                |   | 35,250     |              |   |   | 45,652 |   |
| Issue of Common Shares for Cash                                                           |   |        | 347,747    |   |                |   | 1,707,575  |              |   |   | 5,624,169 |   |
| Refund of Share Subscription                                                              |   |        | (15,000    | )      |                |   | —    |              |   |   | (15,000 | ) |
| Redemption of 10% Senior Convertible Debentures                                           |   |        | —    |   |                |   | (25,000    | )                 |   |   | (394,972 | ) |
| Net cash provided by financing activities                                                 |   |        | 317,218    |   |                |   | 1,583,828  |              |   |   | 7,350,689 |   |
|                                                                                      |   |        |       |   |                |   |       |              |   |   |   |   |
| Effect of foreign exchange on cash and cash equivalents                                   |   |        | (50,749    | )      |                |   | 83,221     |              |   |   | (76,841 | ) |
| Cash and Cash Equivalents                                                                 |   |        |       |   |                |   |       |              |   |   |   |   |
| Increase (Decrease) in cash and cash equivalents during the period                        |   |        | (1,175,550 | )      |                |   | (543,764   | )                 |   |   | 669,202 |   |
| Beginning of Period                                                                       |   |        | 1,844,752  |   |                |   | 2,388,516  |              |   |   | — |   |
| End of Period                                                                             |   | $           | 669,202    |   |                | $      | 1,844,752  |              |   | $ | 669,202 |   |

----

|   | 1. | Nature of Business |
|--------|----|--------------------|

|   | 2. | Basis of Presentation |
|--------|----|-----------------------|

----

|   | 3. | Summary of Significant Accounting Policies |
|--------|----|--------------------------------------------|

|   | (a) | Principles of Consolidation |
|--------|-----|-----------------------------|

|   | (b) | Development Stage Company |
|--------|-----|---------------------------|

|   | (c) | Cash and Cash Equivalents |
|--------|-----|---------------------------|

|   | (d) | Share Subscription Receivable |
|--------|-----|-------------------------------|

|   | (e) | Government Grants and Investment Tax Credits Receivable |
|--------|-----|---------------------------------------------------------|

----

|   | (f) | Property and Equipment |
|--------|-----|------------------------|

|   | Furniture and Fixtures              | 20% declining balance                                                           |
|--------|-------------------------------------|---------------------------------------------------------------------------------|
|   | Lab Equipment                       | 20% declining balance                                                      |
|   | Computer Equipment – Hardware | 30% declining balance                                                           |
|   | Computer Equipment – Software | 50% declining balance                                                           |
|   | Leasehold Improvements              | Straight-line over the lesser of the life of the asset or the life of the lease |

|   | (g) | Patents |
|--------|-----|---------|

|   | (h) | Impairment or Disposal of Long-Lived Assets |
|--------|-----|---------------------------------------------|

|   | (i) | Research and Development Costs |
|--------|-----|--------------------------------|

|   | (j) | Income Taxes |
|--------|-----|--------------|

----

|   | (k) | Stock-Based Compensation |
|--------|-----|--------------------------|

|   | (l) | Net Loss Per Common Share |
|--------|-----|---------------------------|

|   | (m) | Comprehensive Income (Loss) |
|--------|-----|-----------------------------|

|   | (n) | Concentration of Credit Risk |
|--------|-----|------------------------------|

|   | (o) | Use of Estimates |
|--------|-----|------------------|

----

|   | (p) | Foreign Currency Translation |
|--------|-----|------------------------------|

|   | (q) | Financial Instruments |
|--------|-----|-----------------------|

|   | (r) | Revenue Recognition |
|--------|-----|---------------------|

|   | (s) | Effects of Recent Accounting Pronouncements |
|--------|-----|---------------------------------------------|

|   | (t) | Reclassification |
|--------|-----|------------------|

----

| 4. | Property and Equipment |
|----|------------------------|

|                                           |   | October 31 |    |
|------------------------------------------------|--------|-----------------|---------|
|                                           |   | 2011            |    |   | 2010 |   |
|                                           |   |            |    |   |   |   |
| Furniture and Fixtures                         |   | $               | 12,120  |   |   | $ | 12,120 |   |
| Lab Equipment                                  |   |            | 164,504 |   |   |   | 149,262 |   |
| Computer Hardware                              |   |            | 19,490  |   |   |   | 19,490 |   |
| Computer Software                              |   |            | 8,433   |   |   |   | 8,433 |   |
| Leasehold Improvements                         |   |            | 91,269  |   |   |   | 91,269 |   |
| Total Property and Equipment                   |   |            | 295,816 |   |   |   | 280,574 |   |
| Less Accumulated Depreciation and Amortization |   |            | 213,508 |   |   |   | 193,109 |   |
| Property and Equipment, Net                    |   | $               | 82,308  |   |   | $ | 87,465 |   |

| 5. | Patents |
|----|---------|

|                           |   | October 31 |    |
|--------------------------------|--------|-----------------|---------|
|                           |   | 2011            |    |   | 2010 |   |
|                           |   |            |    |   |   |   |
| Patents                        |   | $               | 143,143 |   |   | $ | 177,907 |   |
| Less: Accumulated Amortization |   |            | (12,411 | ) |   |   | (7,204 | ) |
| Patents, Net                   |   | $               | 130,732 |   |   | $ | 170,703 |   |
|                           |   |            |    |   |   |   |   |   |
| Weighted-Average Life          |   | 17 Years        |    |   | 17 Years |   |

|   | Amortization expense amounted to $5,207 and $3,023 for the years ended October 31, 2011 and 2010, respectively.  Amortization expense is expected to be approximately $5,200 per year for the years ended October 31, 2012 through 2016.  During the years ended October 31, 2011 and 2010, the Company wrote off approximately $52,529 and $105,345 of net book value of patents, respectively, for abandoned patents. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Due to Director |
|----|-----------------|

----

| 7. | Income Taxes |
|----|--------------|

|                                           |   | October 31 |        |
|------------------------------------------------|--------|-----------------|-------------|
|                                           |   | 2011            |        |   | 2010 |   |
|                                           |   |            |        |   |   |   |
| Temporary:                                     |   |            |        |   |   |   |
| Property and equipment                         |   | $               | (27,632     | ) |   | $ | (21,512 | ) |
| Net operating loss carryforwards               |   |            | 18,472,016  |   |   |   | 17,269,873 |   |
| Unrealized foreign exchange                    |   |            | (42,525     | ) |   |   | (15,304 | ) |
| Investment tax credits                         |   |            | (103,392    | ) |   |   | (100,000 | ) |
| Permanent:                                     |   |            |        |   |   |   |   |   |
| Common shares issued for lawsuit settlement    |   |            | (496,140    | ) |   |   | — |   |
| Common shares and warrants issued for services |   |            | (166,575    | ) |   |   | — |   |
| Total Deferred Tax Assets                      |   |            | 17,635,752  |   |   |   | 17,133,057 |   |
| Valuation Allowance                            |   |            | (17,635,752 | ) |   |   | (17,133,057 | ) |
| Net Deferred Income Taxes                      |   | $               | —     |   |   | $ | — |   |

----

|                                        |   | October 31 |    |
|---------------------------------------------|--------|-----------------|---------|
|                                        |   | 2011            |    |   | 2010 |   |
|                                        |   |            |    |   |   |   |
| Statutory rate                              |   |            | 28      | % |   |   | 30 | % |
| Decrease in income tax rate resulting from: |   |            |    |   |   |   |   |   |
| Rate differences                            |   |            | — |   |   |   | — |   |
| Changes in tax rate                         |   |            | — |   |   |   | — |   |
| Timing Differences                          |   |            | — |   |   |   | — |   |
| Permanent differences                       |   |            | (18.4   | )% |   |   | (12.5 | )% |
| Change in valuation allowance               |   |            | (9.6    | )% |   |   | (17.5 | )% |
| Effective tax rate                          |   |            | 0.0     | % |   |   | 0.0 | % |

| 8. | Accounts Payable and Accrued Expenses |
|----|---------------------------------------|

|                     |   | October 31 |    |
|--------------------------|--------|-----------------|---------|
|                     |   | 2011            |    |   | 2010 |   |
|                     |   |            |    |   |   |   |
| Accounts Payable         |   | $               | 103,544 |   |   | $ | 109,913 |   |
| Research and Development |   |            | 24,796  |   |   |   | 26,288 |   |
| Investor Relations       |   |            | 7,924   |   |   |   | 87,500 |   |
| Patent Application Costs |   |            | 5,209   |   |   |   | 20,245 |   |
| Legal Fees               |   |            | 274,616 |   |   |   | 246,915 |   |
| Accounting Fees          |   |            | 603     |   |   |   | 32,294 |   |
| Total                    |   | $               | 416,692 |   |   | $ | 523,155 |   |

| 9. | Stock-Based Compensation |
|----|--------------------------|

|                                 |   |    |    |   | Weighted |   |
|--------------------------------------|--------|---------|---------|--------|----------|--------|
|                                 |   |    |    |   | Average  |   |
|                                 |   |    |    |   | Exercise |   |
|                                 |   | Options |    |   | Price    |   |
|                                 |   |    |    |   |     |   |
| Outstanding – October 31, 2009 |   |    | 305,000 |   |     | $      | 2.34 |   |
| Granted                              |   |    | — |   |     |   | — |   |
| Forfeited/expired                    |   |    | — |   |     |   | — |   |
| Exercised                            |   |    | — |   |     |   | — |   |
| Outstanding – October 31, 2010 |   |    | 305,000 |   |     | $      | 2.34 |   |
| Granted                              |   |    | — |   |     |   | — |   |
| Forfeited/expired                    |   |    | — |   |     |   | — |   |
| Exercised                            |   |    | 275,000 |   |     | $      | 0.10 |   |
| Outstanding – October 31, 2011 |   |    | 30,000  |   |     | $      | 0.90 |   |
| Exercisable                          |   |    | 30,000  |   |     | $      | 0.90 |   |

----

|                                                                                      |   | Options |    |
|-------------------------------------------------------------------------------------------|--------|---------|---------|
|                                                                                      |   |    |    |
| Stock options formerly priced at $0.20 were repriced at $0.01 and extended to August 2011 |   |    | 75,000  |   |
| Stock options formerly priced at $3.60 were repriced at $0.01 and extended to August 2011 |   |    | 200,000 |   |
|                                                                                      |   |    | 275,000 |   |

|                |   |   | Options Outstanding and Exercisable |   |
|---------------------|--------|--------|----------------------------------------------------|--------|
|                |   |   |                                               |   |   |   |   |   | Weighted |   |   |   |   |
|                |   |   | Number                                             |   |   | Weighted |   |   | Average |   |   |   |   |
|                |   |   | Outstanding                                        |   |   | Average |   |   | Remaining |   |   | Aggregate |   |
| Range of       |   |   | at                                                 |   |   | Exercise |   |   | Life |   |   | Intrinsic |   |
| Exercise Price |   |   | October 31, 2010                         |   |   | Price |   |   | (Years) |   |   | Value |   |
| $                   | 0.90   |   |                                               |   | 30,000 |   |   | $ | 0.90 |   |   |   | 7.75 |   |   |   |   |   |
|                |   |   |                                               |   | 30,000 |   |   |   |   |   |   |   | 7.75 |   |   | $ | 0 |   |

|                                           |   | For the Year Ended October 31, |    |
|------------------------------------------------|--------|---------------------------------------------------------|---------|
|                                           |   | 2011                                                    |    |   | 2010 |   |
|                                           |   |                                                    |    |   |   |   |
| Weighted Average Fair Value of Options Granted |   | $                                                       | — |   |   | $ | — |   |
|                                           |   |                                                    |    |   |   |   |   |   |
| Cash Received for Exercise of Stock Options    |   | $                                                       | 2,750   |   |   | $ | — |   |

| 10. | Capital Lease Obligations |
|-----|---------------------------|

|                                                         |   | October 31 |   |
|--------------------------------------------------------------|--------|-----------------|--------|
|                                                         |   | 2011            |   |   | 2010 |   |
| Total amount payable in equal monthly installments of $500   |   | $               | 9,000  |   |   | $ | — |   |
| Total amount payable in equal monthly installments of $2,090 |   |            | 22,440 |   |   |   | 46,029 |   |
|                                                         |   |            | 31,440 |   |   |   | 46,029 |   |
| Less: Amount representing interest                           |   |            | 3,099  |   |   |   | 4,156 |   |
| Present value of minimum lease payments                      |   |            | 28,341 |   |   |   | 41,873 |   |
| Less: Current portion                                        |   |            | 25,711 |   |   |   | 20,992 |   |
|                                                         |   | $               | 2,630  |   |   | $ | 20,881 |   |

----

| For the years ended October 31 |   |
|---------------------------------------------------------|--------|
|                                                    |   |   |   |
| 2012                                                    |   | $ | 28,440 |   |
| 2013                                                    |   |   | 3,000 |   |
|                                                    |   | $ | 31,440 |   |

| 11. | Stockholders’ Equity (Deficiency) |
|-----|-----------------------------------------|

----

|                                                                                                                                                                                                                               |   | October 31, |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|-----------|
|                                                                                                                                                                                                                               |   | 2011             |      |   | 2010 |   |
|                                                                                                                                                                                                                               |   |             |      |   |   |   |
| Warrants                                                                                                                                                                                                                           |   |             |      |   |   |   |
| Issued to subscribers to the debenture financing of 2003 and its related extension entitling the holder to purchase 1 common share of the Company at an exercise price of $0.47 per common share up to and including July 31, 2012 |   |             | 2,046,808 |   |   |   | 2,046,808 |   |
| Issued to subscribers to the debenture financing of 2004 and its related extension entitling the holder to purchase 1 common share in the Company at an exercise price of $0.47 per common share up to and including July 31, 2012 |   |             | 1,021,654 |   |   |   | 1,043,659 |   |
| Issued to agents for the debenture financings of 2003 and 2004 entitling the holder to  purchase 1 common share in the Company at an exercise price of $0.47 per common share up to and including July 31, 2012          |   |             | 208,417   |   |   |   | 208,417 |   |
| Issued to former employee entitling the holder to purchase 1 common share in the Company at an exercise price of $0.47 per common share up to and including July 31, 2012                                                          |   |             | 136,220   |   |   |   | 136,220 |   |
| Issued to consultants July 31, 2009, entitling the holder to purchase 1 common share of the Company at an exercise price of $0.90 per share up to and including July 31, 2012                                                      |   |             | 104,785   |   |   |   | 104,785 |   |
| Issued to consultant August 1, 2009, entitling the holder to purchase 1 common share in the company at an exercise price of $0.90 per common share up to and including July 31, 2017                                               |   |             | 287,085   |   |   |   | 287,085 |   |
| Issued to Flow Capital Advisors Inc. on settlement of lawsuit in August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $0.30 per common share up to and including August 23, 2016    |   |             | 250,000   |   |   |   | — |   |
| Issued to Flow Capital Advisors Inc. on settlement of lawsuit August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $0.50 per common share up to and including August 23, 2016       |   |             | 250,000   |   |   |   | — |   |
| Issued to Flow Capital Advisors Inc. on settlement of lawsuit August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $0.75 per common share up to and including August 23, 2016       |   |             | 500,000   |   |   |   | — |   |
| Issued to Flow Capital Advisors Inc. on settlement of lawsuit August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $1.00 per common share up to and including August 23, 2016       |   |             | 500,000   |   |   |   | — |   |
| Issued to Flow Capital Advisors Inc. on settlement of lawsuit August 2011, entitling the holder to purchase 1 common share in the Company at an exercise price of $0.75 per common share up to and including August 23, 2016       |   |             | 500,000   |   |   |   | — |   |
| Issued to consultants in September 2011 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.10 per common share up to and including March 20, 2013                                          |   |             | 1,500,000 |   |   |   | — |   |
| Issued to consultants in September 2011 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.34 per common share up to and including March 20, 2013                                          |   |             | 1,500,000 |   |   |   | — |   |
| Issued to consultants in September 2011 entitling the holders to purchase 1 common share in the Company at an exercise price of $0.50 per common share up to and including September 20, 2021                                      |   |             | 1,000,000 |   |   |   | — |   |
| Total Warrants outstanding                                                                                                                                                                                                         |   |             | 9,804,969 |   |   |   | 3,826,974 |   |

| 12. | Standby Equity Distribution Agreement |
|-----|---------------------------------------|

----

| 13.  | Authorized Share Capital |
|-----------|--------------------------|

----

| 14. | Issuance of Common Stock |
|-----|--------------------------|

|                                                         |   | Year Ended October 31, 2011 |      |   | Year Ended October 31, 2010 |   |
|--------------------------------------------------------------|--------|-------------------------------------------------|-----------|--------|-------------------------------------------------|--------|
|                                                         |   | # of shares                           |      |   | Amount                                          |   |   | # of shares |   |   | Amount |   |
| Issuance to third parties for services rendered              |   |                                            | 650,000   |   |                                            | $      | 391,500 |   |   |   | 95,000 |   |   | $ | 77,000 |   |
| Issuance to a director for cash                              |   |                                            | 600,000   |   |                                            | $      | 297,747 |   |   |   | — |   |   |   | — |   |
| Issuance to third parties for cash                           |   |                                            | 70,000    |   |                                            | $      | 35,884 |   |   |   | 3,108,150 |   |   | $ | 1,592,575 |   |
| Issuance to third parties on exercise of warrants            |   |                                            | 22,005    |   |                                            | $      | 10,402 |   |   |   | 75,000 |   |   | $ | 35,250 |   |
| Issuance to third parties on exercise of options             |   |                                            | 275,000   |   |                                            | $      | 2,750 |   |   |   | — |   |   |   | — |   |
| Issuance to Flow Capital Advisors Inc. on Settlement of Suit |   |                                            | 1,000,000 |   |                                            | $      | 600,000 |   |   |   | — |   |   |   | — |   |
| Issued to an employee stockholder for services rendered      |   |                                            | —   |   |                                            |   | — |   |   |   | 21,090 |   |   | $ | 23,200 |   |
| Issued to non-employee stockholders for services rendered    |   |                                            | —   |   |                                            |   | — |   |   |   | 47,281 |   |   | $ | 55,000 |   |
| Issued to unrelated third party for subscription receivable  |   |                                            | —   |   |                                            |   | — |   |   |   | 230,000 |   |   | $ | 115,000 |   |

| 15. | Redemption of Class B Common Stock |
|-----|------------------------------------|

----

| 16. | Net Loss per Share |
|-----|--------------------|

|                              |   | Years EndedOctober 31, |       |
|-----------------------------------|--------|----------------------------------|------------|
|                              |   | 2011                             |       |   | 2010 |   |
|                              |   |                             |       |   |   |   |
| Weighted-average shares - basic   |   |                             | 54,167,687 |   |   |   | 49,624,916 |   |
| Effect of dilutive securities     |   |                             | —    |   |   |   | — |   |
| Weighted-average shares - diluted |   |                             | 54,167,687 |   |   |   | 49,624,916 |   |

| 17. | Commitments and Contingent Liabilities |
|-----|----------------------------------------|

----

| Year                         |   | Amount |    |
|------------------------------|--------|--------|---------|
|                         |   |   |    |
| 2012                         |   | $      | 43,775  |   |
| Thereafter                   |   |   | — |   |
| Total Minimum Lease Payments |   | $      | 43,775  |   |

----

| Type of Warrant |   | Number of Shares |    |   | Exercise Price |   | Vesting Date |   | Term      |
|---------------------------|--------|----------------------------|---------|--------|---------------------|--------|-------------------|--------|-----------|
| Cash Exercise Only        |   |                       | 250,000 |   |                | $      | 0.30/share        |   | Immediate |   | 5 years |
| Cash Exercise Only        |   |                       | 250,000 |   |                | $      | 0.50/share        |   | Immediate |   | 5 years |
| Cash Exercise Only        |   |                       | 500,000 |   |                | $      | 0.75/share        |   | Immediate |   | 5 years |
| Cash Exercise Only        |   |                       | 500,000 |   |                | $      | 1.00/share        |   | Immediate |   | 5 years |
| Cash or Cashless Exercise |   |                       | 500,000 |   |                | $      | 0.75/share        |   | Immediate |   | 5 years |

| 18. | Supplemental Disclosure of Cash Flow Information |
|-----|--------------------------------------------------|

|                                              |   | Years Ended |      |
|---------------------------------------------------|--------|------------------|-----------|
|                                              |   | October 31  |      |
|                                              |   | 2011             |      |   | 2010 |   |
|                                              |   |             |      |   |   |   |
| Cash paid during the year for:                    |   |             |      |   |   |   |
| Interest                                          |   | $                | 18,748    |   |   | $ | 35,441 |   |
| Non-cash financing activity:                      |   |             |      |   |   |   |   |   |
| Fixed assets acquired through capital lease       |   | $                | 10,660    |   |   | $ | 43,001 |   |
| Warrants issued for deferred consulting contracts |   | $                | 1,777,350 |   |   | $ | — |   |

| 19. | Assets and Liabilities from Discontinued Operations |
|-----|-----------------------------------------------------|

----

| CARDIOGENICS HOLDINGS INC. |
|----------------------------|
|                       |   |
| By:                        | /s/ Yahia Gawad |
|                       | Yahia Gawad |
|                       | Chief Executive Officer |

| SIGNATURE       | TITLE                   | DATE   |
|-----------------|-------------------------|--------|
|            |                    |   |
| /s/ Yahia Gawad | Chief Executive Officer |