UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION


                    Washington, D.C.  20549

                          FORM 10-KSB


(Mark One)

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE FISCAL YEAR ENDED NOVEMBER 30, 2006.

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO ____________.

                         GENOSYS, INC.
         (Name of Small Business Issuer in its Charter)

                    Commission File Number: 000-49817
                    ---------------------------------


            UTAH                                        87-0671592
            ----                                        ----------
 (State or Other Jurisdiction of                     (I.R.S. Employer
  incorporation or organization)                    Identification No.)

               280 W. Riverpark Drive, Provo, UT 84604
               ---------------------------------------
              (Address of Principal Executive Offices)

Issuer's Telephone Number:  (801) 623-4751

Securities Registered under Section 12(b) of the Exchange Act:

                                   None.

Securities Registered under Section 12(g) of the Exchange Act:

               Common Stock, par value $0.001 per share
                         (Title of Class)

Check whether the Issuer is not required to file reports pursuant to Section
13 or 15(d) of the Exchange Act. [ ]

Check whether the Issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the Issuer was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
     1)   Yes  [X]   (2)   Yes  [X]

Check if there is no disclosure of delinquent filers in response to Item 405
of Regulation S-B contained in this form, and no disclosure will be contained,
to the best of Issuer's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB.  [ ]

                          1
Indicate by check mark whether the Issuer is a shell company (as defined in
Rule 12b-2 of the Exchange Act).  No [X].

State Issuer's revenues for its most recent fiscal year: November 30, 2006 -$0

The aggregate market value of common stock held by non-affiliates (i.e., does
not include directors, executive officers or ten percent stockholders
identified in Item 11 hereof) of the Issuer as of February 22, 2007, was
approximately $10,871,000.

As of February 22, 2007, the Issuer had 45,668,031 shares of common stock
outstanding.

              DOCUMENTS INCORPORATED BY REFERENCE

For information on documents incorporated herein by reference, see Part III,
Item 13.

Transitional Small Business Disclosure Format:  Yes [ ]  No  [X]

                          2
                          GeNOsys, Inc

               TABLE OF CONTENTS TO ANNUAL REPORT
                         ON FORM 10-KSB
                  YEAR ENDED NOVEMBER 30, 2006




                             PART I

Item 1.   Description of Business                                     4
Item 2.   Description of Property                                    18
Item 3.   Legal Proceedings                                          18
Item 4.   Submission of Matters to a Vote of Security Holders        19


                            PART II

Item 5.   Market for Common Equity and Related Stockholder Matters   20
Item 6.   Management's Discussion and Analysis or Plan of Operation  20
Item 7.   Financial Statements                                       27
Item 8.   Changes in and Disagreements with Accountants on
          Accounting and Financial Disclosures                       28
Item 8A.  Controls and Procedures                                    28
Item 8B.  Other Information                                          28

                            PART III

Item 9.   Directors, Executive Officers, Promoters and Control
          Persons; Compliance with Section 16(a) of the
          Exchange Act                                               28
Item 10.  Executive Compensation                                     31
Item 11.  Security Ownership of Certain Beneficial Owners and
          Management                                                 32
Item 12.  Certain Relationships and Related Transactions             33
Item 13.  Exhibits                                                   33
Item 14.  Principal Accountant Fees and Services                     34
                          3

                   Forward-Looking Statements

     The Securities and Exchange Commission encourages companies to disclose
forward-looking information so that investors can better understand future
prospects and make informed investment decisions.  This Annual Report contains
these types of statements.  Words such as "may," "will," "expect," "believe,"
"anticipate," "estimate," "project," or "continue" or comparative terminology
used in connection with any discussion of future operating results or
financial performance identify forward-looking statements.  You are cautioned
not to place undue reliance on the forward-looking statements, which speak
only as of the date of this report.  All forward-looking statements reflect
our present expectation of future events and are subject to a number of
important factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.

     Unless otherwise required by applicable law, we do not undertake, and
specifically disclaim any obligation, to update any forward-looking statements
to reflect occurrences, developments, unanticipated events or circumstances
after the date of such statement.

                              PART I

Item 1.  Description of Business.

     Business Development.
     ---------------------

     References to our "Company," "our," "we," "us" and words of similar
import refer to GeNOsys, Inc., a Utah corporation, formerly known as "The
Autoline Group, Inc.", and our wholly-owned subsidiary, GeNOsys, Inc., a
Nevada corporation ["GeNOsys Nevada"]), as applicable.  Our current operations
will be conducted through GeNOsys Nevada, our wholly-owned subsidiary.

     Autoline.
     ---------

     For any historical information regarding Autoline under any caption that
is not included below, please see our 10-SB Registration Statement, as
amended, duly filed with the Securities and Exchange Commission on May 14,
2002, and amended on September 10, 2002, November 19, 2002, and December 9,
2002 (our 10SB"); our 10-KSB Annual Report for the year ended November 30,
2004, duly filed with the Securities and Exchange Commission on February 24,
2005 (our "2004 10-KSB"); and our 10-QSB Quarterly Report for the quarter
ended May 31, 2005, duly filed with the Securities and Exchange Commission on
July 14, 2005 (our "May 31 10-QSB"), which are incorporated herein by
reference.  See Part III, Item 13.

     We formed The Autoline Group 2, Inc., a Utah corporation and wholly-owned
subsidiary "Autoline 2"), through which we commenced to conduct all of our
operations on or after August 5, 2005.

     Effective August 18, 2005, we acquired GeNOsys Nevada.  See our 8-K
Current Report dated August 18, 2005, and our 8-KA Current Report dated August
18, 2005, respectively filed with the Securities and Exchange Commission on
August 25, 2005, and September 28, 2005, and which are incorporated herein by
reference.  See Part III, Item 13.  Also see the heading "Business," below,
for a complete description of the planned business operations and intellectual
property to which we succeeded.
                          4
     On September 12, 2005, we conveyed all of the securities of our wholly-
owned subsidiary, Autoline 2, through which we formerly conducted all of our
automobile purchase and sale operations, as payment of our obligations under
our Indemnification Agreement with James P. Doolin, a former director and
executive officer of Autoline who had agreed to assume, pay and indemnify and
hold us and GeNOsys Nevada harmless from and against any and all liabilities
of our Company that existed or were based upon transactions that occurred
prior to the closing of the GeNOsys Nevada merger on August 18, 2005; and with
this conveyance, we ceased all of these operations.  See our 8-KA Current
Report dated August 18, 2005, referenced in Part III, Item 13.

     On September 19, 2005, we filed a Definitive Information Statement with
the Securities and Exchange Commission and mailed it to our shareholders on
that date respecting resolutions of our Board of Directors and persons owning
a majority of our outstanding voting securities that would amend our Articles
of Incorporation by changing our name to "GeNOsys, Inc.," to be effective on
or about October 10, 2005.

     We completed the private sale to certain "accredited investors" as
defined in Regulation D and Rule 506 of the Securities and Exchange Commission
of 3,964,031 shares (this amount includes 64 shares for rounding) of our
common stock that were "restricted securities" as defined in Rule 144 at a
price of $0.60 per share for aggregate gross proceeds of approximately $2.38
Million.

     On January 24, 2006, we executed a Research and Advisory Services
Agreement (the "Agreement") with IriSys Inc., a Pharmaceutical Formulation
Development and cGMP ("current good manufacturing practices") firm located in
San Diego, California.  Under the Agreement, IriSys will provide contract
services to us to support the development of a tablet that produces a known
quantity of nitric oxide when used in conjunction with our custom generators,
all as discussed below.  IriSys' development activities will include methods
suitable for the germination of the tablet properties and nitric oxide
generation; the formulated development of the components to determine the
process of producing tablets with acceptable characteristics for use in our
generators; the development of a blending and tableting process; prototype
development; packaging development; manufacturing and process development;
stability testing; and analytic methods validation.  These services commenced
during the first quarter of 2006, at an estimated cost of approximately
$408,000, payable in various increments based upon progress billings and have
continued over the past year.  As of the end of the year, IriSys had completed
the initial tasks as modified.

     Business.
     ---------

     With the completion of the merger with GeNOsys Nevada, we are now a
medical research and development company that is specializing in
pharmaceutical, bio-technical and medical gas generating systems.  The primary
gas our systems will generate is nitric oxide, along with other various
combinations of beneficial medical gases suitable for the treatment of human
diseases.

     Nitric oxide gas is produced and sold commercially by major gas companies
as a specialty gas mixture and calibration gas.  Nitrogen dioxide is present
in all nitric oxide gas currently produced; that limits the size of the dose
of nitric oxide gas that can be administered to humans and animals.

     We have developed a proprietary compound formulation that will be
utilized to produce nitric oxide gas in our generators.  The nitric oxide gas
is produced in our desktop generators.  Management believes that with further
formulation of our proprietary compound, we can make or filter nitric oxide
gas with less toxic amounts of nitrogen dioxide and that this process can
produce nitric oxide gas in ample quantities for any current or prospective
use and at a substantially reduced price of all currently available
technologies.
                          5
     Our current generator model is capable of delivering sufficient
quantities of nitric oxide gas for individual laboratory desktop use. GeNOsys
will continue to further develop our generator and our compound formulation
for high production quantities and consistency.  The product must have a known
shelf life and be available in various configurations to produce known
concentrations and known volumes of gas.  Packaging will be another
developmental process that will need to be addressed. Management plans to rely
on outside contractors to achieve these objectives.

     We estimate that non-clinical laboratory sales should take place earlier
than United States Food and Drug Administration ("FDA") approval. Management
anticipates that selling our generator earlier into the market as laboratory
equipment will pave the way for sales of our medical generator and proprietary
tablets, but expected financial contributions from non-medical generator and
tablet sales will be too late to help with the substantial costs of the FDA
approval process for human medical uses.  We expect that contributions will be
able to support our manufacturing and set-up costs and contribute to the
overall profitability of our Company in due time, but we believe that they
will also require financing.  We anticipate entering the non-clinical
laboratory market in the next 24 months.

     All human medical uses of nitric oxide gas require FDA approval and the
approval of similar international agencies.  Approval can be a long and
expensive process, with no assurance that any such approval can ever be
gained.  Management hopes to reduce time to regulatory approval by certain
strategic approaches that are proprietary.

     Our objectives are to establish GeNOsys (generated nitric oxide systems)
as the premier nitric oxide generating pharmaceutical company and to:

     *     manufacture and sell medical grade nitric oxide generators and
           tablets for use in the relief of human diseases;

     *     offer value added services such as custom generators adapted for
           the treatment of various diseases;

     *     hire staff both currently identified and unidentified to implement
           our business model;

     *     gain FDA approval of our generating system; and

     *     to reach a break-even point by the end of year five.

     Principal Products or Services and Their Markets.
     -------------------------------------------------

     Our principal products are our nitric oxide gas generator, our medical
gas generator and our proprietary compound formulation for use in these
generators for producing nitric oxide gas.  We believe that our Technology
Rights represent an improvement in existing methods of producing and
delivering nitric oxide gas.  See the heading "Patents, Trademarks, Licenses,
Franchises, Concessions, Royalty Agreements or Labor Contracts," of this Item,
below.  There are no current human medical uses for nitric oxide that do not
require prior FDA approval.  See the heading "Need for any Governmental
Approval of Principal Products or Services," of this Item, below.

     Our business model is built upon the sale of our gas generators to
hospitals, laboratories and other medical groups requiring our products, with
ongoing revenues being expected from the continued sale of our proprietary
nitric oxide producing tablets.
                          6
     In order to further shorten the time line to positive cash flow and to
lessen the cash demand, laboratory sales of generating devices will commence
as soon as possible.  Less stringent regulatory demands make this an
attractive method of infiltration into the research community.  As sales
increase in the laboratory market, new uses for the gas generator will be
spawned as well as new applications and dose ranges for other diseases that
may be unknown at this time.  This new knowledge can be used to our advantage
in customizing and updating generators for these new markets.

     There is a substantial market for use of nitric oxide gas for use in
experiments in various non-medical trials which do not require the use of a
medically approved nitric oxide gas.  We will target that market as soon as we
have completed planned additional development of our generator and the further
formulation of our proprietary compound, estimated to be completed by early
fiscal 2007.

     Distribution Methods of the Products or Services.
     -------------------------------------------------

     In North America, the FDA restricts sales of drugs that do not meet their
approval.  Our strategy will be to ensure that our human medical products are
FDA approved.  After FDA approval, we will choose an appropriate distributor
that has a complimentary line of products.  The estimated time to market is
approximately five years; however, because of the nature of the process, there
can be no assurance as to the actual timing or success of the process.
Existing sales of nitric oxide gas are over $300 million per year at very high
dosage costs.  We expect to significantly expand this market by reducing the
per unit dosage costs.  It is of importance to note that although
international markets will follow the lead of the FDA on matters concerning
sale of pharmaceuticals in their countries, each country will have their own
regulatory requirements to which we plan to comply.

     Market strategy is linked to the key users of our products during
clinical trials.  Early innovators will be sought to use our products in
trials.  The early innovators are the best word of mouth advertisers in the
medical community.  We intend to secure the services of several key
individuals who may be specifically helpful in advancing our sales and
marketing opportunities.

     Management anticipates that the non-medical laboratory use of the
generator will create direct to customer contacts and create interest within
the nitric oxide market to gain interest in our products by demonstration and
use. Management plans to engage a distributor to handle our marketing and
distribution when appropriate.

     Competitive Business Conditions.
     --------------------------------

     We are entering the medical device and therapy business.  Although
competitive, there are certain protections allowed an FDA approved drug.  When
approval is given, by default, other competitors are excluded because of the
high costs of attaining the approval as well as the futility of duplicating
the same drug application, as investment in the same drug, would be
unprofitable duplication.  Patents also inhibit competition.  Additionally,
our anticipated low production cost of nitric oxide gas may inhibit
competitors from entry into the market.  Production costs of the compound are
expected to be a fraction of current industry costs.
                          7
     Regardless, we expect that all of our products under development will
face intense competition from existing and future products marketed by large
companies, including our generators and our proprietary compound formulation
of tablets that will be utilized to produce nitric oxide gas.  For risks
associated with patent rights and other proprietary rights, see the Risk
Factor, "We Face Intense Competition in the Markets Targeted by Our Products";
"Most All of Our Competitors Have Substantially Greater Resources than We Do
and Have Been in Business Longer Than We Have"; and "We Expect That All of Our
Products Candidates under Development Will Face Intense Competition from
Existing or Future Drugs or Applications, Many of Which May Rely on Nitric
Oxide as a Primary Source," below, under the caption "RISK FACTORS."  Nitric
oxide is sold commercially by most major gas companies as a specialty gas
mixture and calibration gas.  Most of these gases are not medical use gases.
The major competitors in this industry are Praxair (Union Carbide), Airgas,
Air Liquide (Liquid Air), AGA (Europe), British Oxygen and Mattheson Gas.

     Extensive research is currently being done by numerous pharmaceutical
companies, colleges and universities on various treatments utilizing nitric
oxide gas.  Over 20,000 articles have been published on various nitric oxide
experiments and another 5,000 are being published yearly.  Findings of these
studies will only increase the current competition in this field for medical
uses of nitric oxide.

     Sources and Availability of Raw Materials and Names of Principal
     Suppliers.
     ----------

     The substances that make up our proprietary compound formulation of
tablets that will be utilized to produce nitric oxide gas in our generators
are common substances that are available from many sources.

     Dependence on One or a Few Major Customers.
     ------------------------------------------

     It is not presently anticipated that we will be dependent upon one or a
few major customers for our success or for the sale of our products.  We
believe the markets for nitric oxide gas are wide and varied and will continue
to grow.  If our technology is successful in producing low cost nitric oxide
gas for non-medical use and for use in the treatment of human diseases and
maladies as outlined above, management believes that the use of nitric oxide
gas will increase substantially.

     Patents, Trademarks, Licenses, Franchises, Concessions, Royalty
     Agreements or Labor Contracts.
     ------------------------------

        We have and have succeeded to the following rights with respect to our
products:

     *     Nitric Oxide Gas Generator, Canadian Patent Application, Serial
           Number 2,413,834, Filed December 10, 2002;

     *     Medical Gas Generator, Canadian Design Registration, Patent No.
           104685, Issued November 23, 2004;

     *     Nitric Oxide Gas Generator, U. S. Patent Application, Serial No.
           10/733,805, Filed December 10, 2003; Allowed, January 29, 2007; and

     *     Medical Gas Generator, U. S. Design Application, Serial No.
           29/204,287, Filed April 27, 2004.

     Management intends to continue filing patent applications or other
applications that may protect our proprietary compound formulation of tablets
that will be utilized to produce nitric oxide gas in our generators as the
need arises. Following further development of the generator and formulation of
the compound, we anticipate filing patent applications in the United States,
Canada and other foreign countries, as appropriate. See Part II, Item 6,
specifically, the heading "Plan of Operation."
                          8
     For risks associated with patent rights and other proprietary rights, see
the Risk Factors, "If We Fail to Protect Our Technology, Our Ability to Pursue
the Development of Our Technologies and Products Would Be Negatively
Affected," "We Have Not Commissioned an Extensive Investigation Concerning Our
Freedom to Practice or the Validity or Enforceability of Our Technology or
Product Candidates, and We May Be Held to Infringe the Intellectual Property
Rights of Others" and "We May Be Involved in Lawsuits to Protect or Enforce
Our Patents, Which Could Be Expensive and Time Consuming," under the caption
"RISK FACTORS," below.

     Need for Governmental Approval of Principal Products or Services.
     -----------------------------------------------------------------

     One of our corporate strategies is to produce nitric oxide gas for use in
the treatment of human diseases and maladies. That application will require
FDA approval, which approval process is expected to take many years; approval
is never assured, and the process is very time consuming and costly. We do not
presently have the funds available for these purposes, and no assurance can be
given that we will be able to raise the required funding for this planned
application of our products.

     The following is a brief summary of applicable governmental regulations
to which we may be subject in our planned business operations that relate to
the use of our products in the treatment of humans.

     Regulation by governmental authorities in the United States and other
countries is a significant factor affecting the timing of the
commercialization of our generator and our nitric oxide tablet product.  Human
use of either will require regulatory approval by governmental agencies prior
to commercialization.  Various laws and regulations govern or influence the
research and development, manufacturing, safety, labeling, storage, record
keeping and marketing of our products.  The lengthy process of seeking these
approvals, and the subsequent compliance with applicable laws and regulations
require the expenditure of substantial resources.  Any failure to obtain or
maintain, or any delay in obtaining or maintaining, regulatory approvals could
materially adversely affect our business.  Our policy will be to conduct our
research and development activities in compliance with current FDA guidelines,
and with comparable guidelines in other countries where we may be conducting
clinical trials or other developmental activities.

     Clinical testing, manufacturing and marketing of human pharmaceutical
products require prior approval from the FDA and comparable agencies in
foreign countries.  This process can be both lengthy and costly and the
results are uncertain.  The FDA has established mandatory procedures and
safety and efficacy standards that apply to the testing, manufacture and
marketing of such products in the United States.  In the United States, these
procedures include pre-clinical studies, request for designation, FDA
registration, the filing of an Investigational New Drug Application ("IND") or
equivalent, human clinical trials and approval of a New Drug Application
("NDA").  The results of pre-clinical testing, which include laboratory
evaluation of product chemistry and animal studies to assess the potential
safety and efficacy of the product and its formulations, must be submitted to
the FDA as part of an IND that must be reviewed before clinical testing can
begin.  Clinical trials generally involve a three-phase process:

     *    Phase I trials are conducted in volunteers or patients to
          determine the early side effect profile and, perhaps, the pattern
          of drug absorption, distribution and metabolism;
                          9
     *    Phase II trials are conducted in groups of patients with a
          specific disease in order to determine appropriate dosages and
          dose regimens, expand evidence of the safety profile and, perhaps,
          determine preliminary efficacy; and

     *    Phase III trials are large scale, comparative trials that are
          conducted on patients with a target disease in order to generate
          enough data to provide the statistical proof of efficacy and safety
          required by national regulatory agencies.

     The results of the preclinical and clinical testing are then submitted to
the FDA in the form of an NDA for approval to commence commercial sales.  The
FDA may, in responding to an NDA, grant marketing approval, request additional
information or deny the approval if it determines that the NDA does not
provide an adequate basis for approval. Among the conditions for an NDA
approval is the requirement that the prospective manufacturer's quality
control and manufacturing procedures conform on an ongoing basis with current
Good Manufacturing Practices ("cGMP"). In complying with cGMP, we must
continue to expend time, money and effort in the areas of production and
quality control to ensure full compliance or engage the services of outside
contractors who are well versed in compliance with these requirements.
Following approval of the NDA, we are subject to periodic inspections by the
FDA.  Any determination by the FDA of manufacturing deficiencies could
materially adversely affect our business.

     It is not presently anticipated that we will be manufacturing our
generator or our nitric oxide tablet; we intend to develop our products
through testing and then to contract the manufacture, sale or license of those
products.

     European countries generally follow the same regulatory approval
procedures.  The European Union has established a unified filing system
administered by the Committee for Proprietary Medicinal Products ("CPMP")
designed to reduce the administrative burden of processing applications for
pharmaceutical products derived from new technologies.  Following CPMP review
and approval, marketing applications are submitted to member countries for
final approval and pricing approval, as appropriate.  In addition to obtaining
regulatory approval of products, it is generally necessary to obtain
regulatory approval of the facility in which the product will be manufactured.
The approval process for medical devices in Europe is similar but is
administered by private certification organizations known as Notified Bodies,
which are accredited by each member state of the European Union.  The receipt
of regulatory approvals often takes a number of years, involves the
expenditure of substantial resources and depends on a number of factors,
including the severity of the disease in question, the availability of
alternative treatments and the risks and benefits demonstrated in clinical
trials.  On occasion, regulatory authorities may require larger or additional
studies, leading to unanticipated delay or expense.  There can be no assurance
that any approval will be granted to us, and, even if granted, such approval
may be withdrawn if compliance with regulatory standards is not maintained.
In addition, the regulatory approval processes for products in the U.S.,
European countries and other countries around the world are undergoing or may
undergo changes, and we cannot predict what effect any changes in the
regulatory approval process may have on our business.

     In addition to the foregoing, our present and future business may be
subject to various laws and regulations relating to safe working conditions,
clinical, laboratory and manufacturing practices, the experimental use of
animals and the use and disposal of hazardous or potentially hazardous
substances, including radioactive compounds and infectious disease agents,
used in connection with our research, as well as national restrictions on
technology transfer, and import, export and customs regulations and similar
laws and regulations in foreign countries.
                          10
     Effect of Existing or Probable Governmental Regulations on Business.
     --------------------------------------------------------------------

     The following regulations are applicable to us:

     Sarbanes-Oxley Act.
     -------------------

     On July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act
of 2002 (the "Sarbanes-Oxley Act").  The Sarbanes-Oxley Act imposes a wide
variety of new regulatory requirements on publicly-held companies and their
insiders.  Many of these requirements will affect us.  For example:

     *    Our chief executive officer and chief financial officer must now
          certify the accuracy of all of our periodic reports that contain
          financial statements;

     *    Our periodic reports must disclose our conclusions about the
          effectiveness of our disclosure controls and procedures; and

     *    We may not make any loan to any director or executive officer and
          we may not materially modify any existing loans.

     The Sarbanes-Oxley Act has required us to review our current procedures
and policies to determine whether they comply with the Sarbanes-Oxley Act and
the new regulations promulgated thereunder.  We will continue to monitor our
compliance with all future regulations that are adopted under the Sarbanes-
Oxley Act and will take whatever actions are necessary to ensure that we are
in compliance.

     Penny Stock.
     ------------

     Our common stock is "penny stock" as defined in Rule 3a51-1 of the
Securities and Exchange Commission.  Penny stocks are stocks:

     *    with a price of less than five dollars per share;

     *    that are not traded on a "recognized" national exchange;

     *    whose prices are not quoted on the NASDAQ automated quotation
          system; or

     *    an issuer with net tangible assets less than $2,000,000, if the
          issuer has been in continuous operation for at least three years,
          or $5,000,000, if in continuous operation for less than three
          years, or with average revenues of less than $6,000,000 for the
          last three years.

     Section 15(g) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), and Rule 15g-2 of the Securities and Exchange Commission
promulgated thereunder require broker/dealers dealing in penny stocks to
provide potential investors with a document disclosing the risks of penny
stocks and to obtain a manually signed and dated written receipt of the
document before making any transaction in a penny stock for the investor's
account.  You are urged to obtain and read this disclosure carefully before
purchasing any of our shares.

     Rule 15g-9 of the Securities and Exchange Commission requires
 broker/dealers in penny stocks to approve the account of any investor for
transactions in these stocks before selling any penny stock to that investor.
                          11
     This procedure requires the broker/dealer to:

     *    get information about the investor's financial situation,
          investment experience and investment goals;

     *    reasonably determine, based on that information, that transactions
          in penny stocks are suitable for the investor and that the
          investor can evaluate the risks of penny stock transactions;

     *    provide the investor with a written statement setting forth the
          basis on which the broker/dealer made his or her determination;
          and

     *    receive a signed and dated copy of the statement from the
          investor, confirming that it accurately reflects the investors'
          financial situation, investment experience and investment goals.

     Compliance with these requirements may make it harder for our
stockholders to resell their shares.

     Reporting Obligations.
     ----------------------

     Section 14(a) of the Exchange Act requires all companies with securities
registered pursuant to Section 12(g) of the Exchange Act to comply with the
rules and regulations of the Securities and Exchange Commission regarding
proxy solicitations, as outlined in Regulation 14A.  Matters submitted to
stockholders of our Company at a special or annual meeting thereof or pursuant
to a written consent will require our Company to provide our stockholders with
the information outlined in Schedules 14A or 14C of Regulation 14; preliminary
copies of this information must be submitted to the Securities and Exchange
Commission at least 10 days prior to the date that definitive copies of this
information are forwarded to our stockholders.

     We are also required to file annual reports on Form 10-KSB and quarterly
reports on Form 10-QSB with the Securities Exchange Commission on a regular
basis, and will be required to timely disclose certain material events (e.g.,
changes in corporate control; sales of in excess of 5% of our outstanding
securities; acquisitions or dispositions of a significant amount of assets
other than in the ordinary course of business; certain changes in our
directors and executive officers; and bankruptcy) in a current report on Form
8-K.

     Small Business Issuer.
     ----------------------

     The integrated disclosure system for small business issuers adopted by
the Securities and Exchange Commission in Release No. 34-30968 and effective
as of August 13, 1992, substantially modified the information and financial
requirements of a "Small Business Issuer," defined to be an issuer that has
revenues of less than $25,000,000; is a U.S. or Canadian issuer; is not an
investment company; and if a majority-owned subsidiary, the parent is also a
small business issuer.  We are deemed to be a "small business issuer."

     The Securities and Exchange Commission, state securities commissions and
the North American Securities Administrators Association, Inc. ("NASAA") have
expressed an interest in adopting policies that will streamline the
registration process and make it easier for a small business issuer to have
access to the public capital markets.
                          12
     Research and Development.
     -------------------------

     We have not commenced planned principal operations.  The development of
our business plan and our Plan of Operation will require substantial
expenditures for research and development of our products, including our
generator and our proprietary tablet formulation for production of nitric
oxide gas.  See the Part II, Item 6, below, specifically, the heading "Plan of
Operation."  It is estimated that our predecessors expensed approximately
$900,000 in research and development of our Technology Rights that we acquired
under the merger with GeNOsys Nevada.

     Cost and Effects of Compliance with Environmental Laws.
     -------------------------------------------------------

     We do not anticipate any material expense for compliance with
environmental laws in connection with our planned or contemplated business
operations as our Plan of Operations details that we will be using contractors
well versed in dealing with the applicable hazards associated with producing
and packaging nitric oxide gas and other pharmaceuticals.  See the Part II,
Item 6, below, specifically, the heading "Plan of Operation."

     Number of Employees.
     --------------------

     We currently have five employees and will consider our employment needs
as business developments require.  We anticipate filling most of our needs for
services, other than core employees, through contract organizations and
outside agreements with suppliers of services in the industries of our planned
business operations as may be required.

RISK FACTORS.
-------------

     We are subject to the risks inherent in any newly formed,
undercapitalized and developmental stage company, including, among other risk
factors, the following.  This list of risk factors is not exclusive or all
encompassing.

     Because our limited operations have not generated revenues, we require
substantial funding to undertake our Plan of Operation, and we may never
generate revenues or, if we are able to generate revenues, achieve
profitability.

     We are focused on product development, and we have not generated any
revenues to date utilizing our Technology Rights.  The process of developing
our products requires significant clinical, development and laboratory testing
and clinical trials.  In addition, commercialization of our products will
require that we obtain necessary regulatory approvals and establish sales and
marketing capabilities, either through internal hiring or through contractual
relationships with others.  We expect to incur substantial losses for the
foreseeable future as a result of anticipated increases in our research and
development costs, including costs associated with conducting preclinical
testing and clinical trials and regulatory compliance activities.

     Our ability to generate revenues and achieve profitability will depend on
numerous factors, including success in:

     *    developing and testing our products;

     *    receiving regulatory approvals;

     *    commercializing our products; and

     *    establishing a favorable competitive position.

     Many of these factors will depend on circumstances beyond our control.
We cannot assure you that we will ever bring any product to market or, if we
are successful in doing so, that we will ever become profitable.
                          13
     Our Products Are Based on a Technology That Could Ultimately Prove
Ineffective.
------------

     Our products are to be created using our proprietary Technology Rights.
We have not yet conducted laboratory or animal studies to establish whether
the Technology Rights are safe and effective for all of our intended uses.
Ultimately, our research currently indicating that our Technology Rights
possess beneficial properties, may prove to be incorrect.  In this case
products made from our Technology Rights may not differ substantially from
existing treatment methods and may in fact be inferior to them.  If these
products are substantially identical or inferior to treatment methods already
available, the market for our products would be reduced or eliminated.

     Our Products Are at an Early Stage of Development.  If We Are Unable to
Develop and Commercialize Our Products Successfully, We May Never Generate
Revenues Or, If We Are Able to Generate Revenues, Achieve Profitability.
------------------------------------------------------------------------

     We have not commercialized any of our products or recognized any revenue
from product sales utilizing our Technology Rights.  All of our proposed
products using our Technology Rights are in early stages of development.  We
must conduct significant additional research and development activities before
we will be able to commercialize any products utilizing our Technology Rights.
We must successfully complete adequate and well-controlled studies designed to
demonstrate the safety and efficacy of the product candidates and obtain
regulatory approval before we are able to commercialize these product
candidates for many uses.  We may not be able to fund all of these programs to
completion or provide the support necessary to perform the clinical trials,
seek regulatory approvals or market any approved products.  Even if we succeed
in developing and commercializing one or more of our products utilizing our
Technology Rights, we may never generate sufficient or sustainable revenue to
enable us to be profitable.

     We Face Intense Competition in the Markets Targeted by Our Products.
Most of Our Competitors Have Substantially Greater Resources than We Do, and
We Expect That All of Our Products Candidates under Development Will Face
Intense Competition from Existing or Future Drugs or Applications, Many of
Which May Rely on Nitric Oxide as a Primary Source.
---------------------------------------------------

     We have not yet devoted substantial research efforts or capital to the
development of our Technology Rights and our products.  However, even if our
future efforts are successful in this regard, we expect that all of our
products under development will face intense competition from existing and
future products marketed by large companies.  The markets for treatments for
many diseases are well developed and populated with established drugs marketed
by large pharmaceutical, biotechnology and generic drug companies.  Each of
these companies has significantly greater financial and other resources than
we do.  If we obtain regulatory approval to market one or more of our
products, we will compete with these established drugs and will need to show
that our products have safety or efficacy advantages in order to take market
share and be successful for many uses.

     If We Lose Our Key Personnel or Are Unable to Hire Additional Personnel,
We Will Have Trouble Growing Our Business.
------------------------------------------

     We will depend to a large extent on the abilities of our President, John
W. R. Miller.  The loss of Mr. Miller or our inability to attract or retain
other qualified employees could seriously impair our results of operations and
financial condition.
                          14
     Our future success depends on our ability to attract, retain and motivate
highly skilled technical, marketing, management, accounting and administrative
personnel.  Competition for qualified personnel is intense.  As a result, we
may be unable to attract, assimilate or retain qualified personnel.  We may
also be unable to retain the employees that we currently employ or to attract
additional technical personnel.  The failure to retain and attract the
necessary personnel could seriously harm our business, financial condition and
results of operations.

     If We Fail to Protect Our Technology, Our Ability to Pursue the
Development of Our Technologies and Products Would Be Negatively Affected.
--------------------------------------------------------------------------

     Our success will depend in part on our ability to obtain patents and
maintain adequate protection of our Technology Rights and products.  If we do
not adequately protect our intellectual property, competitors may be able to
use our Technology Rights to produce and market nitric oxide in direct
competition with us and erode our competitive advantage.  Some foreign
countries lack rules and methods for defending intellectual property rights
and do not protect proprietary rights to the same extent as the United States.
Many companies have had difficulty protecting their proprietary rights in
these foreign countries.  We may not be able to prevent misappropriation of
our proprietary rights.  In addition, patent positions can be uncertain and
involve complex legal and factual questions.  We can protect our proprietary
rights from unauthorized use by third parties only to the extent that our
proprietary technologies are covered by valid and enforceable patents or are
effectively maintained as trade secrets.  Others may challenge our patents, or
our patent applications may not result in issued patents.  Moreover, any
patents issued to us may not provide us with meaningful protection, or others
may challenge, circumvent or narrow our patents.  Third parties may also
independently develop products similar to our products, duplicate our
unpatented products or design around any patents on products we develop.
Additionally, extensive time is required for development, testing and
regulatory review of a potential product.  While extensions of patent term due
to regulatory delays may be available, it is possible that, before any of our
product candidates can be commercialized, any related patent, even with an
extension, may expire or remain in force for only a short period following
commercialization, thereby reducing any advantages of the patent.

     In addition to patents, we will rely on a combination of trade secrets,
confidentiality, nondisclosure and other contractual provisions, and security
measures to protect our confidential and proprietary information.  These
measures may not adequately protect our trade secrets or other proprietary
information.  If they do not adequately protect our rights, third parties
could use our Technology Rights, and we could lose any competitive advantage
we may have.  In addition, others may independently develop similar
proprietary information or techniques or otherwise gain access to our trade
secrets, which could impair any competitive advantage we may have.

     We Have Not Commissioned an Extensive Investigation Concerning Our
Freedom to Practice or the Validity or Enforceability of Our Technology Rights
or Product Candidates, and We May Be Held to Infringe the Intellectual
Property Rights of Others.
--------------------------

     Our ability to freely practice our products may be dependent upon the
duration and scope of other patents held by third parties.  Our patent, prior
art and infringement investigations have been conducted primarily by us.
Although we have consulted with our patent counsel in connection with our
Technology Rights investigations, our patent counsel has not undertaken an
extensive independent analysis to determine whether our Technology or products
                          15
infringe upon any issued patents or whether our patent applications relating
to the Technology Rights could be invalidated or rendered unenforceable for
any reason or could be subject to interference proceedings.  There may be
patents or patent applications of which we are unaware, and avoiding patent
infringement may be difficult.  We may inadvertently infringe third-party
patents.  Third-party patents may impair or block our ability to conduct our
business.  There are no unresolved communications, allegations, complaints or
threats of litigation related to the possibility that we might infringe
patents held by others.

     Claims may be asserted against us that our products or Technology Rights
infringe patents or other intellectual property owned by others.  We may be
exposed to future litigation by third parties based on claims that our
products or activities infringe the intellectual property rights of others.
In the event of litigation, any claims may not be resolved in our favor.  Any
litigation or claims against us, whether or not valid, may result in
substantial costs and may result in an award of damages, lost profits,
attorney's fees, and tripling of those damages in the event that a court finds
an infringement to have been willful.  A lawsuit could also place a
significant strain on our financial resources, divert the attention of
management and harm our reputation. In addition, intellectual property
litigation or claims could force us to do one or more of the following:

     *    cease making, selling, offering or using any products that
          infringe a third party's intellectual property through an
          injunction;

     *    obtain a license or an assignment from the holder of the infringed
          intellectual property right, which license or assignment may be
          costly or may not be available on reasonable terms, if at all; and

     *    redesign our products, which would be costly and time-consuming,
          and may not be possible.

     We May Be Involved in Lawsuits to Protect or Enforce Our Patents, Which
Could Be Expensive and Time Consuming.
--------------------------------------

     Competitors may infringe our patents, if and when filed and granted, and
we may file infringement claims to counter infringement or unauthorized use.
This can be expensive, particularly for a company of our size, and time-
consuming.  In addition, in an infringement proceeding, a court may decide
that a patent of ours is not valid or is unenforceable, or may refuse to stop
the other party from using the technology at issue on the grounds that our
patents do not cover our Technology Rights.  An adverse determination of any
litigation or defense proceedings could put one or more of our patents at risk
of being invalidated or interpreted narrowly.

     Also, a third party may assert that our patents are invalid and/or
unenforceable.  There are no unresolved communications, allegations,
complaints or threats of litigation related to the possibility that our patent
applications are invalid or unenforceable.  Any litigation or claims against
us, whether or not merited, may result in substantial costs, place a
significant strain on our financial resources, divert the attention of
management and harm our reputation.  An adverse decision in a litigation could
result in inadequate protection for our products and/or substantially reduce
our ability to effectuate our business plan.

     Interference proceedings brought before the U.S. Patent and Trademark
Office may be necessary to determine priority of invention with respect to our
patents or patent applications.  During an interference proceeding, it may be
determined that we do not have priority of invention for one or more aspects
                          16
in our patents or patent applications and could result in the invalidation in
part or whole of a patent or could put a patent application at risk of not
issuing.  Even if successful, an interference may result in substantial costs
and distraction to our management.

     Furthermore, because of the substantial amount of discovery required in
connection with intellectual property litigation or interference proceedings,
there is a risk that some of our confidential information could be compromised
by disclosure.  In addition, there could be public announcements of the
results of hearings, motions or other interim proceedings or developments. If
investors perceive these results to be negative, the price of our common stock
in any market that may develop for it could be adversely affected.

     We Intend to Rely on Third Parties to Manufacture the Compounds Used in
One or More of Our Products.  If These Third Parties Do Not Manufacture Our
Product in Sufficient Quantities and at an Acceptable Cost, Development and
Commercialization of Our Product Candidates Could Be Delayed, Prevented or
Impaired.
---------

     We have no manufacturing facilities, and we have no experience in the
clinical or commercial-scale manufacture of drugs or in designing drug
manufacturing processes.  We expect that certain specialized manufacturers
will provide us with pharmaceutical compounds.  We do not have any short-term
or long-term manufacturing agreements with any of these manufacturers.  If we
fail to contract for manufacturing on acceptable terms or if third-party
manufacturers do not perform as we expect, our development programs could be
materially adversely affected.

     We intend to rely on third parties to manufacture some or all of our
products that reach commercialization.  We believe that there are a variety of
manufacturers that we may be able to retain to produce these products.
However, once we retain a manufacturing source, if our manufacturers do not
perform in a satisfactory manner, we may not be able to develop or
commercialize potential products as planned.

     Failure by Our Third-party Manufacturers to Comply with the Regulatory
Guidelines Set Forth by the FDA with Respect to Our Products Could Delay or
Prevent the Commercialization of Our Products.
----------------------------------------------

     Our reliance on third-party manufacturers will expose us to the following
additional risks, any of which could delay or prevent the completion of our
clinical trials, the approval of our products by the FDA for some uses or
other regulatory agencies or the commercialization of our products, result in
higher costs or deprive us of potential product revenues:

     *    Manufacturers are obligated to operate in accordance with
          FDA-mandated cGMP requirements. A failure of any of our third-party
          manufacturers to establish and follow cGMP requirements and to
          document their adherence to such practices may lead to significant
          delays in the availability of our products for commercial
          distribution.

     *    Replacing our third-party manufacturers or contracting with
          additional manufacturers may require re-validation of the
          manufacturing processes and procedures in accordance with cGMP and
          compliance with supplemental approval requirements. Any such
          necessary re-validation and supplemental approvals may be costly
          and time-consuming.
                          17
     *    Drug manufacturers are subject to ongoing periodic unannounced
          inspections by the FDA and corresponding state and foreign agencies
          to ensure strict compliance with cGMP requirements and other
          requirements under federal drug laws, other government
          regulations and corresponding foreign standards.  If our
          third-party manufacturers or we fail to comply with applicable
          regulations, sanctions could be imposed on us, including fines,
          injunctions, civil penalties, seizures or recalls of product,
          operating restrictions and criminal prosecutions.

     We believe that our contracted sources are cGMP qualified. See the
heading "Business Development," of this Item 1.

     Our Products May Not Be Accepted by the Market.
      ----------------------------------------------

     Our products may not gain market acceptance among physicians, patients,
healthcare providers, insurance companies and the medical community in
general.  The degree of market acceptance of any pharmaceutical product that
we develop will depend on a number of factors, including:

     *    cost-effectiveness;

     *    the safety and effectiveness of our products, including any
          potential side effects, as compared to alternative products or
          treatment methods;

     *    the timing of market entry as compared to competitive products;

     *    the rate of adoption of our products by doctors and nurses;

     *    product labeling or product insert required by the FDA for each of
          our products;

     *    reimbursement policies of government and third-party payors;

     *    effectiveness of our sales, marketing and distribution
          capabilities and the effectiveness of such capabilities of our
          collaborative partners, if any; and

     *    unfavorable publicity concerning our products or any similar
          products.

     Our products, if successfully developed, will compete with a number of
products manufactured and marketed by major pharmaceutical companies,
biotechnology companies and manufacturers of generic drugs.  Our products may
also compete with new products currently under development by others.
Physicians, patients, third-party payors and the medical community may not
accept and utilize any of our product candidates.  Physicians may not be
inclined to prescribe the treatment methods created utilizing our Technology
Rights unless our products bring substantial and demonstrable advantages over
other products currently marketed for the same indications.  If our products
do not achieve market acceptance, we will not be able to generate significant
revenues or become profitable.

     If We Fail to Establish Marketing, Sales and Distribution Capabilities,
or Fail to Enter into Arrangements with Third Parties, We Will Not Be Able to
Create a Market for Our Product Candidates.
-------------------------------------------

     Our strategy with our products is to control, directly or through
contracted third parties, all or most aspects of the product development
process, including marketing, sales and distribution.  Currently, we do not
have any sales, marketing or distribution capabilities.  In order to generate
                          18
sales of any product candidates, we must either acquire or develop an internal
marketing and sales force with technical expertise and with supporting
distribution capabilities or make arrangements with third parties to perform
these services for us.  The acquisition or development of a sales and
distribution infrastructure would require substantial resources, which may
divert the attention of our management and key personnel and defer our product
development efforts.  To the extent that we enter into marketing and sales
arrangements with other companies, our revenues will depend on the efforts of
others.  These efforts may not be successful.  If we fail to develop sales,
marketing and distribution channels, or enter into arrangements with third
parties, we will experience delays in product sales and incur increased costs.

     In the Event That We Are Successful in Bringing Any Products to Market,
Our Revenues May Be Adversely Affected If We Fail to Obtain Acceptable Prices
or Adequate Reimbursement for Our Products from Third-party Payors.
-------------------------------------------------------------------

     Our ability to commercialize pharmaceutical products successfully may
depend in part on the availability of reimbursement for our products from:

     *    government and health administration authorities;

     *    private health insurers; and

     *    other third party providers or payors, including Medicare.

     We cannot predict the availability of reimbursement for health care
products.  Third-party payors, including Medicare, are challenging the prices
charged for medical products and services.  Government and other third-party
payors increasingly are limiting both coverage and the level of reimbursement
for new drugs.  Third-party insurance coverage may not be available to
patients for any of our products.


     The continuing efforts of government and third-party payors to contain or
reduce the costs of health care may limit our commercial opportunity.  If
government and other third-party payors do not provide adequate coverage and
reimbursement for any product we bring to market, doctors may not prescribe
them or patients may ask to have their physicians prescribe competing drugs
with more favorable reimbursement.  In some foreign markets, pricing and
profitability of prescription pharmaceuticals are subject to government
control.  In the United States, we expect that there will continue to be
federal and state proposals for similar controls.  In addition, we expect that
increasing emphasis on managed care in the United States will continue to put
pressure on the pricing of pharmaceutical products.  Cost control initiatives
could decrease the price that we receive for any products in the future.
Further, cost control initiatives could impair our ability to commercialize
our products and our ability to earn revenues from this commercialization.

     We Could Be Forced to Pay Substantial Damage Awards If Product Liability
Claims That May Be Brought Against Us Are Successful.
-----------------------------------------------------

     We may be exposed to liability claims and financial losses resulting from
the use or sale of our products.  We may not be able to maintain insurance
coverage at a reasonable cost or in sufficient amounts or scope to protect us
against losses.

Item 2.  Description of Property.

     Our executive offices are located at 280 W. Riverpark Drive, Provo,
Utah 84604.  We lease approximately 2,600 square feet at a lease price of
$4,850 per month.  Our lease is for a period of five years, commencing in May,
2006.  In addition, our original facility space, located at 5063 Riverpark
Way, Provo, Utah 84604, is being utilized for our research and development.
It is on a month-to-month lease with a monthly payment of $1,600.
                          19
Item 3.  Legal Proceedings.

     We are not a party to any pending legal proceeding and, to the knowledge
of management, no federal, state or local governmental agency is presently
contemplating any proceeding against us.  No director, executive officer or
affiliate of ours or owner of record or beneficially of more than five percent
of our common stock is a party adverse to us or has a material interest
adverse to us in any proceeding.

Item 4.  Submission of Matters to a Vote of Security Holders.

     Our Company has had no matters submitted to a vote of security holders
during the fourth quarter of the fiscal year ended November 30, 2006.
                          20
                         PART II

Item 5.  Market for Common Equity, Related Stockholder Matters and Small
Business Issuer Purchases of Equity Securities.

     Market Information.
     -------------------

     Our Company's common stock is traded on the "OTC Bulletin Board" of the
National Association of Securities Dealers, Inc. ("NASD") under the symbol
"GNYS."

     The high and low bid quotations for our Company's common stock during the
each quarter of the fiscal year ended November 30, 2006, and 2005, is shown
below.  Prices are inter-dealer quotations as reported by the NASD and do not
necessarily reflect transactions, retail markups, mark downs or commissions.

                             STOCK QUOTATIONS*

                                                  BID

Quarter ended:                          High                Low
--------------                          ----                ---
February 28, 2005                      $1.01               $0.51

May 31, 2005                           $0.51               $0.10

August 31, 2005                        $0.25               $0.10

November 30, 2005                      $3.05               $0.25

February 28, 2006                      $3.60               $3.05

May 31, 2006                           $3.60               $2.50

August 31, 2006                        $2.50               $2.00

November 30, 2006                      $2.05               $1.43

          *    The future sale of presently outstanding "restricted
               securities" (common stock) of our Company by present members of
               management and others may have an adverse effect on any market
               in the shares of common stock of our Company.

     Holders.
     --------

     The number of record holders of our outstanding common stock as of the
date of this Annual Report is approximately 233.

     Dividends.
     ----------

     We have not declared any cash dividends with respect to our common stock,
and do not intend to declare dividends in the foreseeable future.  Our future
dividend policy cannot be ascertained with any certainty.  There are no
material restrictions limiting, or that are likely to limit, our ability to
pay dividends on our securities.
                          21
     Recent Sales of Restricted Securities.
     --------------------------------------

     We issued 40,000,000 shares of our common stock in the merger with
GeNOsys Nevada that was completed on August 18, 2005.  For a complete
accounting of the issuance of these shares, see our Statement of Stockholders'
Deficit in our audited financial statements contained herein.

     Effective on or about November 1, 2005, we completed the private sale of
3,964,031 shares (this amount includes 64 shares for rounding) of our common
stock at a price of $0.60 per share for aggregate gross proceeds of
approximately $2.38 Million.

     On January 31, 2006, we issued 450,000 shares to Smith Consulting
Services, Inc., a Utah corporation and financial consulting firm to us
("SCS"), in replacement of 450,000 shares that SCS had conveyed to two of our
consultants and one attorney for services that were rendered for our benefit
from the shares that SCS received under our merger with GeNOsys Nevada.  These
consultants and the one attorney provided services to SCS under its Consulting
Agreement with GeNOsys Nevada.  For a complete accounting of the issuance of
these shares, see our Statement of Stockholders' Deficit in our audited
financial statements contained herein.

     We issued these securities to persons who were either "accredited
investors," or "sophisticated investors," who, by reason of education,
business acumen, experience or other factors, were fully capable of evaluating
the risks and merits of an investment in our Company; and each had prior
access to all material information about us.  We believe that the offer and
sale of these securities was exempt from the registration requirements of the
Securities Act of 1933, as amended (the "Securities Act"), pursuant to
Sections 4(2) and 4(6) thereof, and Rule 506 of Regulation D of the Securities
and  Exchange Commission and from various similar state exemptions, and with
respect to the foreign investors, pursuant to Regulation S of the  Securities
and Exchange Commission.

     Use of Proceeds of Registered Securities.
     -----------------------------------------

     There have been no sales of registered securities by us.

     Securities Authorized for Issuance under Equity Compensation Plans.
     -------------------------------------------------------------------

     We have no equity compensation plans.

     Purchases of Company Equity Securities.
     ---------------------------------------

     There were no purchases of our equity securities by us or any affiliated
purchasers during the calendar year ended November 30, 2006; however, SCS
canceled 1,302,500 shares of the 3,800,000 shares it acquired under the
GeNOsys Nevada merger, based upon its understanding with principals of GeNOsys
Nevada in their Consulting Agreement that if it were able to purchase any of
the shares of our Company that were already outstanding and owned by former
principals or others following the merger, that it would cancel a like number
of such shares so that the number of shares that SCS was entitled to under
such Consulting Agreement would remain unchanged.  SCS purchased 1,302,500
shares of our common stock from two former principals and three non-affiliated
persons for cash on or about August 25, 2005, and executed and delivered
certain Lock-Up/Leak-Out Agreements that restricted the sale of these
purchased shares.
                          22
      Effective January 31, 2006, we waived the provisions of these Lock-
Up/Leak-Out Agreements so that SCS could privately sell an aggregate of
413,044 shares the resale of which were covered thereby for the aggregate sum
of $250,000 to a limited number of persons who were believed to be "accredited
investors" or "sophisticated investors" as defined in Regulation D and/or Rule
506 of the Securities and Exchange Commission; and to make gifts of 61,635
shares to five persons who were also believed to be "accredited investors" or
"sophisticated investors".  The Lock- Up/Leak-Out Agreements that had been
executed by SCS with respect to the remaining 827,821 of these shares that are
currently still owned by SCS were reaffirmed; these Lock-Up/Leak-Out
Agreements expired on or about August 24, 2006.

     See the Schedule 13D, the Schedule 13DA-1 and the Schedule 13DA-2 filed
by SCS with the Securities and Exchange Commission for additional information
about these share purchases.

Item 6.  Management's Discussion and Analysis or Plan of Operation.

     The following discussion and analysis provides information which
management believes is relevant to an assessment and understanding of our
results of operations and financial condition.  The discussion should be read
in conjunction with the financial statements and notes thereto.

     Overview.
     ---------

     We are in the development stage and have incurred cumulative net losses
since inception.  We incurred negative cash flows from operating activities of
$928,751 and $270,573 for the years ended November 30, 2006 and 2005,
respectively.  Our products are in the development stage and are subject to
regulatory approval by the Food and Drug Administration.  Although we are
confident that the products under development will be successfully tested and
commercialized, there can be no assurance that such approvals will be
received.  Development work to date is detailed below.

     In the first 12 months, we contracted with a pharmaceutical formulation
development laboratory, to improve the formulation and deliver the first
nitric oxide generating tablets produced under good laboratory practices
("GLP") guidelines. This was done in preparation for application to the FDA
for approval. In accordance with initial plans, we have continued discussions
with qualified groups concerning clinical trials, but no agreements have been
executed. In the first 12 months, we successfully obtained a five-year lease
for office space in which to headquarter our operations and have hired staff
to begin the creation of an FDA Quality System and ISO 13485 compliance.

     Over the next 12 to 24 months, we plan to pursue various levels of the
international regulatory approval process. Applications and product
opportunities for nitric oxide generators are believed to be broad and cover a
wide range of commercial fields, each with a distinct pre-market requirement.
We plan to seek the most effective regulatory paths to market.  We plan to
approach a contracted supplier to produce a device capable of meeting FDA
guidance document requirements for a nitric oxide system.  We will also
continue to seek and hire qualified staff necessary to implement the FDA-
required Quality System throughout all levels of the operation.  We plan to
enter the non-clinical laboratory market with products produced by outside
contractors. In order to maintain protection of proprietary, intellectual
property, we will continue securing patents for all developed and developing
technology.

     Our ability to carry out our plan depends entirely upon our ability to
obtain additional substantial equity, debt financing or royalties.  We can not
assure you that we will receive this financing. If we do not receive such
funding, we will not be able to proceed with our intended business plans.
                          23
     We completed the private sale of 3,964,031 shares (this amount includes
64 shares for rounding) of our common stock at a price of $0.60 per share for
aggregate gross proceeds of approximately $2.38 Million during November, 2005.
Substantial additional funds will still be required if we are to reach our
goals that are outlined above.  We currently have no arrangements or
understandings that will assure that we can successfully raise any additional
funds that may be required.

     Critical Accounting Policies.
     -----------------------------

     Revenue Recognition.
     --------------------

     Pursuant to Staff Accounting Bulletin ("SAB") No. 104, "Revenue
Recognition," we will recognize revenue when the following criteria have been
met: (1) persuasive evidence of an arrangement exists, (2) delivery has
occurred or services have been rendered, (3) the price is fixed or
determinable and (4) collectability is reasonably assured

     Product revenues will be recognized when persuasive evidence of an
arrangement exists, risk of loss and title has transferred to our customers,
the fee is fixed or determinable and collection is probable.  Rights of return
for manufactured product are dependent upon the agreement.

     Long-Lived Assets.
     ------------------

     We regularly evaluate whether events or circumstances have occurred that
indicate the carrying value of our long-lived assets may not be recoverable.
When factors indicate the asset may not be recoverable, we compare the related
undiscounted future net cash flows to the carrying value of the asset to
determine if impairment exists.  If the expected future net cash flows are
less than the carrying value, an impairment charge is recognized based on the
fair value of the asset.  No such impairments were recorded during the years
ended November 30, 2006 and 2005.

     Capitalization of Patent Costs.
     -------------------------------

     We have elected to capitalize patent costs and will amortize them over
the shorter of the life of the patent or the number of years for which it is
estimated that economic benefit will be derived.

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

     On January 1, 2006, we adopted the provisions of Statement 123 (revised
2004) (Statement 123(R)), "Share-Based Payment," which revises Statement 123,
"Accounting for Stock-Based Compensation," and supersedes APB Opinion 25,
"Accounting for Stock Issued to Employees."  Statement 123(R) requires us to
recognize expense related to the fair value of our stock-based compensation
awards, including employee stock options.

     We have elected to use the modified prospective transition method as
permitted by Statement 123(R).  Under this transition method, we will apply
the provisions of Statement 123(R) to all new awards.

     Off-Balance Sheet Arrangements.
     -------------------------------

     We do not have any off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial
condition, changes in financial condition, revenues or expenses, results of
operations, liquidity, capital expenditures or capital resources that are
material to investors.
                          24
     Recent Accounting Pronouncements.
     ---------------------------------

     In June 2006, the Financial Accounting Standards Board ("FASB") issued
FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an
interpretation of FASB Statement No. 109" (FIN 48).  FIN 48 clarifies the
accounting for uncertainty in income taxes recognized in a company's financial
statements and prescribes a recognition threshold and measurement attribute
for financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return.  This Interpretation also provides
related guidance on derecognition, classification, interest and penalties,
accounting in interim periods and disclosure.  FIN 48 is effective for us
beginning January 1, 2007.  We are currently evaluating the impact of this
standard.

     In September 2006, the FASB issued SFAS No. 157, "Fair Value
Measurements".  SFAS No. 157 defines fair value, establishes a framework for
measuring fair value in generally accepted accounting principles, and expands
disclosures about fair value measurements.  This statement addresses how to
calculate fair value measurements required or permitted under other accounting
pronouncements.  Accordingly, this statement does not require any new fair
value measurements.  However, for some entities, the application of the
statement will change current practice.  SFAS No. 157 is effective for us
beginning January 1, 2008.  We are currently evaluating the impact of this
standard.

     In September 2006, the Securities and Exchange Commission ("SEC") staff
issued Staff Accounting Bulletin No. 108 ("SAB 108"), "Considering the Effects
of Prior Year Misstatements when Quantifying Misstatements in Current Year
Financial Statements."  The stated purpose of SAB 108 is to provide
consistency between how registrants quantify financial statement
misstatements.

     Prior to the issuance of SAB 108, there have been two widely-used
methods, known as the "roll-over" and "iron curtain" methods, of quantifying
the effects of financial statement misstatements.  The roll-over method
quantifies the amount by which the current year income statement is misstated
while the iron curtain method quantifies the error as the cumulative amount by
which the current year balance sheet is misstated.  Neither of these methods
considers the impact of misstatements on the financial statements as a whole.

     SAB 108 established an approach that requires quantification of
financial statement misstatements based on the effects of the misstatement on
each of the Company's financial statements and the related financial statement
disclosures.  This approach is referred to as the "dual approach" as it
requires quantification of errors under both the roll-over and iron curtain
methods.

     SAB 108 allows registrants to initially apply the dual approach by
either retroactively adjusting prior financial statements as if the dual
approach had always been used, or by recording the cumulative effect of
initially applying the dual approach as adjustments to the carrying values of
assets and liabilities as of January 1, 2006 with an offsetting adjustment
recorded to the opening balance of retained earnings.

     We will initially apply SAB 108 using the cumulative effect transition
method in connection with the preparation of our annual financial statements
for the year ending November 30, 2006.  We do not believe the adoption of SAB
108 will have a significant effect on our financial statements.

     In May 2005, the FASB issued SFAS 154, "Accounting Changes and Error
Corrections." This statement replaces APB Opinion No. 20, "Accounting
Changes," and FASB Statement No. 3, "Reporting Accounting Changes in Interim
Financial Statements." Statement 154 changes the requirements for the
accounting for and reporting of a change in accounting principle. This
                          25
statement requires retrospective application to prior periods' financial
statements of changes in accounting principle, unless it is impracticable to
determine the period-specific effects or the cumulative effect of the change.
Such an exchange has commercial substance if the future cash flows of the
entity are expected to change significantly as a result of accounting changes
and corrections of error.  SFAS 154 is effective for accounting changes and
corrections of errors made in fiscal years beginning after December 15, 2005.
Earlier application is permitted.  We do not expect adoption of SFAS 154 to
have a material impact on our financial statements.

     In December 2004, the FASB issued SFAS 123R, "Share-Based Payments"
("SFAS No. 123R"), a revision of SFAS No. 123, "Accounting for Stock-Based
Compensation" ("SFAS No. 123"), which requires companies to measure all
employee stock-based compensation awards using a fair value method and record
such expense in their financial statements.  While the Company has no
outstanding awards, it has adopted this standard effective January 1, 2006 and
elected the modified-prospective transition method.  Under the modified-
prospective transition method, awards that are granted, modified, repurchased
or canceled after the date of adoption should be measured and accounted for
in accordance with SFAS No. 123R.  We do not expect the adoption of SFAS 123R
to have a material impact on our financial statements, but this will be re-
evaluated when/if stock-based compensation awards are implemented.

     We have reviewed all other recently issued, but not yet adopted,
accounting standards in order to determine their effects, if any, on our
consolidated results of operation, financial position or cash flows.  Based on
that review, we believe that none of these pronouncements will have a
significant effect on our current or future earnings or operations.

     Financial Position.
     -------------------

     We had $904,715 in cash as of November 30, 2006.  This is a decrease of
$1,103,830 from November 30, 2005.  Working capital as of November 30, 2006,
was $928,942 as compared to $1,999,885 at November 30, 2005.  This decrease
was largely due to the operating loss for the fiscal year, coupled with
capital expenditures.

     Years Ended November 30, 2006 and 2005.
     ---------------------------------------

     During the years ended November 30, 2006 and 2005, we had no revenue or
related cost of sales.

     Research and development expenses ("R&D") for the year ended November
30, 2006, were $730,131.  No R&D expenses were recorded for the year ended
November 30, 2005.  The expenses in 2006 are comprised of salaries and
benefits, travel expenses, production of prototypes, and other development
expenses related to the research of nitric oxide gas.  It is anticipated that
R&D expenses will significantly increase as FDA applications are made and the
development work required for commercialization escalates.

     General and administrative expenses for the year ended November 30, 2006,
were $506,801 compared to $269,421 for the year ended November 30, 2005, an
increase of $237,380.  The hiring of additional personnel, travel expenses,
office rental, and other administrative expenses will continue to increase
throughout 2007.

     Other income of $58,131 was realized for the year ended November 30,
2006 from interest earned on invested funds.  That income is expected to
decline in 2007 as funds are drawn from investment accounts to fund operating
and capital expenses.
                          26
     The net loss for the year ended November 30, 2006, was $1,178,901.  This
compares to a net loss realized for the year ended November 30, 2005, of
$200,399.  It is anticipated that the net loss in 2007 will widen as
additional resources are allocated to the testing, approval and
commercialization of the products.

     Liquidity and Capital Resources.
     --------------------------------

     To date, we have financed our operations principally through private
placements of equity securities.  We used net cash for operating activities of
$928,751 in the year ended November 30, 2006.  As of November 30, 2006, our
working capital was $928,942, and our current liabilities were $59,632.

     Our working capital requirements for the foreseeable future will vary
based on a number of factors, including the costs to complete development
work, the cost of bring products to commercial viability, the timing of the
market launches, and the level of sales.  As of November 30, 2006, we had
accounts payable and accrued liabilities totaling $59,632.  We anticipate that
we will need to raise additional funds during 2007 to execute our business
plan.  There can be no assurance that additional funding will be available to
us or that if funding is available that it will be under favorable terms.  If
we are unsuccessful in raising additional funds we may be required to
substantially reduce or eliminate certain areas of our product development
activities, limit our operations significantly or cease operations entirely.

Item 7.  Financial Statements

                          27
                          GeNOsys, Inc.
                  (A Development Stage Company)
     Report of Independent Registered Public Accounting Firm
                     and Financial Statements

                       November 30, 2006

                       TABLE OF CONTENTS
                                                                    Page
Report of Independent Registered Public Accounting Firm              F-2


Consolidated Balance Sheet as of November 30, 2006                   F-3


Consolidated Statements of Operations for the years ended
November 30, 2006 and 2005 and for the period of the
development stage (June 30,2005) through November 30, 2006.          F-4


Consolidated Statements of Stockholders' Equity for the years
ended November 30, 2006 and 2005 and for the period of the
development stage(June 30, 2005) through November 30, 2006.          F-5


Consolidated Statements of Cash Flows for the years ended
November 30, 2006and 2005 and for the period of the
development stage (June 30, 2005) through November 30, 2006.         F-6


Notes to Consolidated Financial Statements                    F-8 - F-13

                               F-1



     REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


The Board of Directors and Shareholders
GeNOsys, Inc.

We have audited the accompanying consolidated balance sheet of GeNOsys, Inc.
as of November 30, 2006 and 2005, and the related consolidated statements of
operations, stockholders' equity, and cash flows for the years ended November
30, 2006 and 2005 and for the period of the development stage (June 30, 2005)
through November 30, 2006.  These financial statements are the responsibility
of the Company's management.  Our responsibility is to express an opinion on
these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.  The Company has
determined that it is not required to have, nor were we engaged to perform, an
audit of its internal control over financial reporting.  Our audit included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for expressing an opinion on the effectiveness of the Company's internal
controls over financial reporting.  Accordingly, we express no such opinion.
An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements.  An audit also includes assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation.  We
believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of  GeNOsys, Inc., (a
development stage company), as of November 30, 2006 and 2005, and the results
of their operations and their cash flows for the periods ended November 30,
2006 and 2005 in conformity with accounting principles generally accepted in
the United States of America.

The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern.  As discussed in Note 2
to the financial statements, the Company has experienced recurring losses from
operations since its inception.  These factors raise substantial doubt about
its ability to continue as a going concern.  The Company has not established
operations with consistent revenue streams.  Management's plans in regard to
these matters are also described in Note 2.  The financial statements do not
include any adjustments that might result from the outcome of this
uncertainty.


/s/Mantyla McReynolds, LLC

Mantyla McReynolds, LLC
Salt Lake City, Utah
February 27, 2007
                               F-2

                         GENOSYS, INC.
                 (A Development Stage Company)
                  Consolidated Balance Sheets

                             ASSETS


                                        November 30, November 30,
                                                   2006          2005
CURRENT ASSETS
   Cash and cash equivalents - Note 9           $ 904,715    $2,008,545
   Prepaid expenses                                83,859             -
                                                ---------    ----------
      Total Current Assets                        988,574     2,008,545
                                                ---------    ----------
Patent - Note 6                                     7,967           297
Prepaid expenses, net of amortization                   -         2,102
Property and equipment, net of depreciation
  Note 5                                          176,949        20,475
                                                ---------    ----------
     TOTAL ASSETS                              $1,173,490    $2,031,419
                                                =========    ==========

               LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
  Accounts payable                             $    9,692    $    6,060
  Accrued liabilities                              49,840         2,500
  Taxes payable                                       100           100
                                               ----------    ----------
     Total Current Liabilities                     59,632         8,660
                                               ----------    ----------
     TOTAL LIABILITIES                             59,632         8,660
                                               ----------    ----------
STOCKHOLDERS' EQUITY

  Common stock, $0.001 par value; 50,000,000
    shares authorized; 45,668,031 and
    45,218,031 shares issued and outstanding,
    respectively - Note 4                          45,668        45,218
  Additional paid-in capital                    2,525,414     2,255,864
  Accumulated deficit                             (77,924)      (77,924)
  Deficit accumulated in the development stage (1,379,300)     (200,399)
                                               ----------    ----------
     Total Stockholders' Equity                 1,113,858     2,022,759
                                               ----------    ----------
     TOTAL LIABILITIES AND STOCKHOLDERS'
     EQUITY                                    $1,173,490    $2,031,419
                                               ==========    ==========


         See Accompanying Notes to Financial Statements.
                               F-3

                         GENOSYS, INC.
                 (A Development Stage Company)
             Consolidated Statements of Operations

                                                        From Inception of
                                                      the Development Stage
                                For the Years Ended     On June 30, 2005
                                 November 30,            Through
                                  2006        2005      November 30, 2006

REVENUES                        $       -   $        -  $         -
COSTS OF GOODS SOLD                     -            -            -
                                ---------   ----------  -----------
   GROSS PROFIT                         -            -            -
                                ---------   ----------  -----------

OPERATING EXPENSES
  General and Administrative      506,801      269,421      776,222
  Research and development        730,131            -      730,131
                                ---------   ----------  -----------
    Total Expenses              1,236,932      269,421    1,506,353
                                ---------   ----------  -----------
LOSS FROM OPERATIONS           (1,236,932)    (269,421)  (1,506,353)
                                ---------   ----------  -----------
OTHER INCOME (EXPENSES)
  Interest income                  58,131            -       58,131
  Interest expense                      -            -            -
                                ---------   ----------  -----------
   Total Other Income (Expenses)   58,131            -       58,131
                                ---------   ----------  -----------
LOSS FROM CONTINUING OPERATIONS
  BEFORE INCOME TAXES          (1,178,801)    (269,421)  (1,448,222)

PROVISION FOR INCOME TAXES           (100)        (100)        (200)
                                ---------   ----------  -----------
LOSS FROM CONTINUING OPERATIONS(1,178,901)    (269,521)  (1,448,422)

DISCONTINUED OPERATIONS
  Loss from discontinued
   operations, net of tax               -       (2,131)      (2,131)
  Gain on disposal of discontinued
   operations, net of tax               -       71,253       71,253
                                ---------   ----------  -----------
  Net gain from discontinued
   operations                           -       69,122       69,122
                                ---------   ----------  -----------
NET INCOME (LOSS)             $(1,178,901)  $ (200,399) $(1,379,300)
                               ==========   ==========  ===========

LOSS PER SHARE FROM CONTINUING
  OPERATIONS                  $     (0.03)  $    (0.01) $     (0.03)
                              ===========   ==========  ===========
INCOME PER SHARE FROM DISCONTINUED
  OPERATIONS                  $         -   $      NIL  $       NIL
                              ===========   ==========  ===========
NET LOSS PER SHARE            $     (0.03)  $    (0.01) $     (0.03)
                              ===========   ==========  ===========
WEIGHTED AVERAGE SHARES
  OUTSTANDING - BASIC &
  DILUTED                      45,591,593   41,631,879   44,576,678
                              ===========   ==========  ===========


         See Accompanying Notes to Financial Statements.

                               F-4

                         GENOSYS, INC.
                 (A Development Stage Company)
  CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT
         For the years ended November 30, 2006 and 2005

                                           Additional
                          Common Stock      Paid in    Accumulated
                        Shares     Amount   Capital      Deficit   Total
Balance at November
30, 2003              2,556,500 $ 2,557  $   26,243  $   (51,941) $(23,141)

Net loss for the period
ended November 30, 2004       -       -           -      (25,983)  (25,983)
                     ---------- -------  ----------  -----------  --------
Balance November 30,
2004                  2,556,500   2,557      26,243      (77,924)  (49,124)

Issued common stock
for cash at $0.0001  33,231,456  33,231     (29,908)           -     3,323

Issued stock for
patents at $0.0001    2,968,544   2,969      (2,672)           -       297

Issued stock for
consulting agreement
at $0.0001            3,800,000   3,800      (3,420)           -       380

Shares canceled      (1,302,500) (1,303)      1,303            -         -

Issued stock for
cash at $0.60 per
share                 3,964,031   3,964   2,374,418            - 2,378,382

Stock promotion costs         -       -    (110,100)           -  (110,100)

Net loss for the
period ended November
30, 2005                      -       -           -     (200,399) (200,399)
                     ---------- -------  ----------  -----------  --------
Balance at November
30, 2005             45,218,031  45,218   2,255,864     (278,323)2,022,759

Issued stock for
services at $0.60
per share               450,000     450     269,550            -   270,000

Net loss for the
period ended
November 30, 2006             -       -           -  (1,178,901)(1,178,901)
                     ---------- -------  ----------  ----------  ---------
Balance at November
30, 2006             45,668,031 $45,668  $2,525,414 $(1,457,224)$1,113,858
                     ========== =======  ==========  ==========  =========

          See Accompanying Notes to Financial Statements

                               F-5

                         GENOSYS, INC.
                 (A Development Stage Company)
             Consolidated Statements of Cash Flows

                                                        From Inception of
                                                      the Development Stage
                                For the Years Ended     On June 30, 2006
                                 November 30,            Through
                                  2006        2005      November 30, 2006

CASH FLOWS FROM OPERATING ACTIVITIES
 Net loss                        $(1,178,901) $  (200,399)    $(1,379,300)
 Adjustments to reconcile net
  loss to net cash used by
  operating activities:
   Depreciation and Amortization      10,936          415          11,351
   Gain on disposal                        -      (71,253)        (71,253)
   Decrease in cash from
   discontinued operations                 -       (6,020)         (6,020)
   Stock issued for services         270,000            -         270,000
Changes in operating assets and
liabilities
   (Increase) Decrease in prepaid
   expenses                          (81,757)      (1,976)        (83,733)
   Increase (decrease) in accounts
   payable                             3,631        6,060           9,691
   Increase (decrease) in accrued
   compensation                       47,240        2,500          49,740
   Increase (decrease) in tax
   payable                               100          100             200
                                ------------  -----------    ------------
    Net Cash Used by Operating
    Activities                      (928,751)    (270,573)     (1,199,324)
                                ------------  -----------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Purchase of intangible assets       (7,670)           -          (7,670)
  Purchase of equipment             (167,409)     (20,637)       (188,046)
                                ------------  -----------    ------------
    Net Cash Used by Investing
    Activities                      (175,079)     (20,637)       (195,716)
                                ------------  -----------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Issuance of common stock for
  cash                                     -    2,271,604       2,271,604
  Cash from discontinued operations        -      (19,777)        (19,777)
                                ------------  -----------    ------------
    Net Cash Provided by Financing
    Activities                             -    2,251,827       2,251,827
                                ------------  -----------    ------------

NET INCREASE IN CASH              (1,103,830)   1,960,617         856,787
CASH AT BEGINNING OF PERIOD        2,008,545       47,928          47,928
                                ------------  -----------    ------------
CASH AT END OF PERIOD           $    904,715  $ 2,008,545    $    904,715
                                ============  ===========    ============

         See Accompanying Notes to Financial Statements.

                               F-6

                         GENOSYS, INC.
                 (A Development Stage Company)
             Consolidated Statements of Cash Flows

                                                        From Inception of
                                                      the Development Stage
                                For the Years Ended     On June 30, 2006
                                 November 30,            Through
                                  2006        2005      November 30, 2006

SUPPLEMENTAL DISCLOSURES INFORMATION
  Cash paid during the year for
  interest                      $       -  $     750       $       750
  Cash paid during the year for
  income/franchise taxes        $     100  $     100       $       200



         See Accompanying Notes to Financial Statements.

                               F-7


NOTE 1  ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

GeNOsys, Inc. (Company) was founded June 30, 2005.  On August 19, 2005 the
Company merged with The Autoline Group, Inc., which operated as an automotive
dealership until September 12, 2005 when the dealership was discontinued.  The
Company was organized to engage in the business of producing a portable,
medical gas generator.  The Company was incorporated under the laws of the
State of Nevada.

The Company is considered to be in the development stage as defined in
Financial Accounting Standards Board Statement No. 7.  It has yet to commence
full-scale operations and it continues to develop its planned principle
operations.

The financial statements of the Company have been prepared in accordance with
accounting principles generally accepted in the United States of America.  The
consolidated financial statements of the Company include the accounts of
GeNOsys, Inc. and its subsidiary, GeNOsys, Inc., a Nevada corporation.  All
significant intercompany transactions have been eliminated.  The following
summarizes the more significant of such policies:

Income Taxes

The Company applies the provisions of Statement of Financial Accounting
Standards No. 109 [the Statement], Accounting for Income Taxes.  The Statement
requires an asset and liability approach for financial accounting and
reporting for income taxes, and the recognition of deferred tax assets and
liabilities for the temporary differences between the financial reporting
basis and tax basis of the Company's assets and liabilities at enacted tax
rates expected to be in effect when such amounts are realized or settled.  See
Note 3.

Net Loss Per Common Share

In accordance with Statement of Financial Accounting Standards No. 128,
"Earnings per Share," basic loss per common share is based on the weighted-
average number of shares outstanding.  Diluted income or loss per share is
computed using weighted average number of common shares plus dilutive common
share equivalents outstanding during the period using the treasury stock
method.  There are no common stock equivalents outstanding, thus, basic and
diluted income or loss per share calculations are the same.
Revenue Recognition

The Company recognizes revenue in accordance with the Securities and Exchange
Commission Staff Accounting Bulletin (SAB) number 104, which states that
revenue is generally recognized when it is realized and earned.  Specifically,
the Company recognizes revenue when products are completed and accepted by the
customer.

Research and Development Costs

Research and development costs are expensed in the period they are incurred in
accordance with Financial Accounting Standard No. 2, "Accounting for Research
& Development Costs."

Capitalization of Patent Costs

The Company has elected to capitalize patent costs and will amortize them over
the shorter of the life of the patent or the number of years from which it is
estimated that economic benefit will be derived.

Statement of Cash Flows

For purposes of the statements of cash flows, the Company considers cash on
deposit in the bank to be cash.  The Company had $904,715 in cash on November
30, 2006.

Use of Estimates in Preparation of Financial Statements

The preparation of financial statements in conformity with U. S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, and
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the
reporting period.  Actual results could differ from those estimates.

                               F-8

Fair Value of Financial Instruments

All cash and cash equivalents, accounts payable, and accrued liabilities are
carried at approximate market value.

Recent Accounting Pronouncements

In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48, "Accounting for Uncertainty in Income Taxes, an
interpretation of FASB Statement No. 109" (FIN 48).  FIN 48 clarifies the
accounting for uncertainty in income taxes recognized in a company's financial
statements and prescribes a recognition threshold and measurement attribute
for financial statement recognition and measurement of a tax position taken or
expected to be taken in a tax return.  This Interpretation also provides
related guidance on derecognition, classification, interest and penalties,
accounting in interim periods and disclosure.  FIN 48 is effective for us
beginning January 1, 2007.  The Company is currently evaluating the impact of
this standard.

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements".
SFAS No. 157 defines fair value, establishes a framework for measuring fair
value in generally accepted accounting principles, and expands disclosures
about fair value measurements.  This statement addresses how to calculate fair
value measurements required or permitted under other accounting
pronouncements.  Accordingly, this statement does not require any new fair
value measurements.  However, for some entities, the application of the
statement will change current practice.  SFAS No. 157 is effective for us
beginning January 1, 2008.  The Company is currently evaluating the impact of
this standard.

In September 2006, the Securities and Exchange Commission ("SEC") staff issued
Staff Accounting Bulletin No. 108 ("SAB 108"), "Considering the Effects of
Prior Year Misstatements when Quantifying Misstatements in Current Year
Financial Statements."  The stated purpose of SAB 108 is to provide
consistency between how registrants quantify financial statement
misstatements.

Prior to the issuance of SAB 108, there have been two widely-used methods,
known as the "roll-over" and "iron curtain" methods, of quantifying the
effects of financial statement misstatements.  The roll-over method quantifies
the amount by which the current year income statement is misstated while the
iron curtain method quantifies the error as the cumulative amount by which the
current year balance sheet is misstated.  Neither of these methods considers
the impact of misstatements on the financial statements as a whole.

SAB 108 established an approach that requires quantification of financial
statement misstatements based on the effects of the misstatement on each of
the Company's financial statements and the related financial statement
disclosures.  This approach is referred to as the "dual approach" as it
requires quantification of errors under both the roll-over and iron curtain
methods.

SAB 108 allows registrants to initially apply the dual approach by either
retroactively adjusting prior financial statements as if the dual approach had
always been used, or by recording the cumulative effect of initially applying
the dual approach as adjustments to the carrying values of assets and
liabilities as of January 1, 2006 with an offsetting adjustment recorded to
the opening balance of retained earnings.

In May 2005, the FASB issued SFAS 154, "Accounting Changes and Error
Corrections." This statement replaces APB Opinion No. 20, "Accounting
Changes," and FASB Statement No. 3, "Reporting Accounting Changes in Interim
Financial Statements." Statement 154 changes the requirements for the
accounting for and reporting of a change in accounting principle. This
statement requires retrospective application to prior periods' financial
statements of changes in accounting principle, unless it is impracticable to
determine the period-specific effects or the cumulative effect of the change.
Such an exchange has commercial substance if the future cash flows of the
entity are expected to change significantly as a result of accounting changes
and corrections of error.  SFAS 154 is effective for accounting changes and
corrections of errors made in fiscal years beginning after December 15, 2005.
Earlier application is permitted.  Management does not expect adoption of SFAS
154 to have a material impact on the Company's financial statements.

                               F-9

In December 2004, the FASB issued SFAS 123R, "Share-Based Payments" ("SFAS No.
123R"), a revision of SFAS No. 123, "Accounting for Stock-Based Compensation"
("SFAS No. 123"), which requires companies to measure all employee stock-based
compensation awards using a fair value method and record such expense in their
financial statements.  While the Company has no outstanding awards, it has
adopted this standard effective January 1, 2006 and elected the modified-
prospective transition method.  Under the modified-prospective transition
method, awards that are granted, modified, repurchased or canceled after the
date of adoption should be measured and accounted for in accordance with SFAS
No. 123R.  Because the Company had no options outstanding as of November 30,
2006, the adoption of SFAS 123R will not have any effect on its financial
position, results or operations or cash flows for the period ending November
30, 2006.

The Company has reviewed all other recently issued, but not yet adopted,
accounting standards in order to determine their effects, if any, on its
consolidated results of operation, financial position or cash flows.  Based on
that review, it believes that none of these pronouncements will have a
significant effect on our current or future earnings or operations.

NOTE 2   GOING CONCERN

The Company has accumulated losses since inception and has not yet been able
to generate profits from operations.  Operating capital has been raised
through the sale of common stock or through loans from shareholders.  These
factors raise substantial doubt about the Company's ability to continue as a
going concern.

Management plans include further development and production of portable,
medical gas generators.  The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.

NOTE 3   INCOME TAXES

The provision for income taxes consists of the following:

                                           2006           2005
Current Taxes                           $       100   $       100
                                        -----------   -----------
                                        $       100   $       100
                                        ===========   ===========

The Company has available net operating losses of approximately $1,460,773
which can be utilized to offset future earnings of the Company. Below is a
summary of deferred tax asset calculations on the net operating loss
carryforward amount.  The net loss carryforwards amount begins to expire in
2025.  A valuation allowance is provided when it is more likely than not that
some portion of the deferred tax asset will not be realized.

                               F-10

The Company has the following carryforwards available at November 30, 2006:

                                    Taxable
                                   Temporary     Expected   Deferred Tax
                                   Difference    Tax Rate Asset (Liability)
Non-current deferred tax liability
----------------------------------
Book/Tax depreciation difference
     Federal                       $  (7,247)      15%        $   (1,087)
     State                            (7,247)       5%              (362)
                                                              ----------
Total non-current deferred tax
liability                                                         (1,449)

Non-current deferred tax asset
------------------------------
Net operating losses
     Federal                       1,460,773       15%        $  219,116
     State                         1,460,773        5%            73,039
Deferred tax asset valuation
allowance                                                       (290,706)
                                                              ----------
Total non-current deferred tax asset                          $    1,449

Total deferred tax asset (liability)                                   -
                                                              ----------
Deferred tax asset valuation allowance                          (290,706)
Total non-current deferred tax asset                               1,449
Total deferred tax asset (liability)                                   -

The company is incorporated n the State of Nevada, but conducts its operations
in the State of Utah, which levies a $100 minimum tax per year.  As a result,
the Company has accrued a provision of $100 per year to account for this tax.

The effective tax rate for continuing operations differs from the statutory
rate as follows:

Expected provision (taxes on income before taxes )        $   (235,760)
                                                          ------------
Effect of:
   Non-deductible expenses                                         442
   Temporary differences due to depreciation                    (1,469)
   Deduction for state taxes                                       (20)
   Increase (decrease) in valuation allowance                  236,807
   State minimum franchise tax                                     100
                                                          ------------
Total actual provision                                    $        100
                                                          ============

                               F-11

NOTE 4   COMMON STOCK

On June 30, 2005, the Company issued 33,231,456 shares of common stock for
cash, at $0.0001 per share to the officers of the Company. In addition, the
Company issued 2,968,544 shares of common stock at $0.0001 per share in
exchange for patents and 3,800,000 shares of common stock at $0.0001 per share
as part of a consulting agreement, of which, 1,302,500 were subsequently
canceled. In October and November of 2005, the Company issued 3,964,031
shares of common stock for cash, at $0.60 per share to private investors and
incurred stock promotion expenses of $110,100 as part of the issuance.

On January 31, 2006, the Board of Directors consented to the issuance of
450,000 shares of restricted common stock in exchange for services provided to
the Company.  The transaction was valued at $270,000 ($0.60 per share).

NOTE 5   PROPERTY, PLANT & EQUIPMENT

The major classes of assets as of the balance sheet date are as follows:

                                               2006           2005
Furniture and fixtures                      $  64,289      $       -
Office equipment                               30,027          5,812
Lab equipment                                  85,546         14,825
Leasehold improvements                          8,184              -
                                            ---------      ---------
                                              188,046         20,637
Accumulated depreciation                      (11,097)          (161)
                                            ---------      ---------
                                            $ 176,949      $  20,476
                                            =========      =========

Equipment is stated at cost.  Depreciation is provided by using the
straight-line method of depreciation over five years.  Depreciation expense
for the year ended November 30, 2006 and 2005 was $10,936 and $162,
respectively.  Amortization expense for the years ended November 30,
2006 and 2005 was $0 and $253, respectively.  Expenditures for maintenance and
repairs are charged to expense as incurred.

NOTE 6   PATENTS

The Company issued 200,000 shares of common stock at $0.0001 per share for
Technology Rights and 2,768,544 shares of common stock at $0.0001 per share
for additional rights. (See Note 4.)  The Company also capitalized $7,670 in
patent costs during the current year.  As of November 30, 2006 the patents
were valued at $7,967 for the common stock issued.

NOTE 7   COMMITMENTS AND CONTINGENCIES

The Company leases office space under a five-year noncancelable operating
lease that commenced on May 12, 2006.  The following summarizes future minimum
lease payments under the operating lease at November 30, 2006:

                                                    Minimum
                       Year Ending November 30,  Lease Payments
                       ------------------------  --------------
                                2007               $  58,966
                                2008                  60,440
                                2009                  62,158
                                2010                  64,002
                                2011                  28,958
                                                   ---------
                                                   $ 274,524

The Company also continues to lease its previous office space on a
month-to-month basis at a rate of $1,600 per month.  The space is used for
research and development purposes.

Total rent expense for the year ended November 30, 2006 and 2005 was $25,854
and $18,300, respectively.

                               F-12

NOTE 8   DISCONTINUED OPERATIONS

On September 12, 2005 the Company discontinued its automotive dealership
operations by divesting the ownership of The Autoline Group 2, Inc., a wholly
owned subsidiary, to a former officer in exchange for an indemnification
agreement.

NOTE 9   CONCENTRATION

The Company maintains cash balances at a financial institution located in the
Ogden, UT area.  Accounts at this institution are insured by the Federal
Deposit Insurance Corporation up to $100,000.  The Company had cash of
$904,615, as of November 30, 2006 in this financial institution, which is in
excess of the FDIC insured limits by $804,615.

NOTE 10   RELATED PARTIES

As of November 30, 2006, a director and officer of the Company owned 55% of
the Company's issued and outstanding stock.  This allows for the officer to
effectively control the vote on substantially all significant matters without
the approval of the other stockholders.
                               F-13

Item 8.  Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.

     None.

Item 8A.  Controls and Procedures.

     Management's Annual Report on Internal Controls Over Financial Reporting.
     -------------------------------------------------------------------------

     Within 90 days prior to the date of this Annual Report, we carried out
an evaluation, under the supervision and with the participation of our
President and Secretary, of the effectiveness of the design and operation of
our disclosure controls and procedures.  Based on this evaluation, our
President and Secretary concluded that our disclosure controls and procedures
are effective and timely alert them to material information required to be
included in our periodic reports that are filed with the Securities and
Exchange Commission.  It should be noted that the design of any system of
controls is based in part upon certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions, regardless
of how remote.  In addition, we reviewed our internal controls, and there have
been no significant changes in our internal controls or in other factors that
could significantly affect those controls subsequent to the date of their last
evaluation.

     Changes in internal control over financial reporting.
     -----------------------------------------------------

     There were no changes in internal controls over financial reporting.

Item 8(b).  Other.

    None.

                             PART III

Item 9.  Directors, Executive Officers, Promoters and Control Persons;
Compliance with Section 16(a) of the Exchange Act.

     Identification of Directors and Executive Officers.
     ---------------------------------------------------

     The following table sets forth the names of all of our current directors
and executive officers.  These persons will serve until the next annual
meeting of the stockholders or until their successors are elected or appointed
and qualified, or their prior resignation or termination.


                                      Date of         Date of
                      Positions     Election or     Termination
Name                     Held       Designation   or Resignation
----                     ----       -----------   --------------
John W. R. Miller     President and
                      Director         8/18/2005          *

Clark M. Mower        Director         8/18/2005          *

Christie M. Woodruff  Secretary/       8/18/2005          *
Jones                 Treasurer and
                      Director

          * These persons presently serve in the capacities indicated.

                          28
     Business Experience.
     --------------------

     John W. R. Miller.  Mr. Miller is 55 years old.  In 2003, he co-founded
Alberta 1017975 with Christie Woodruff Jones, the predecessor to our
Technology Rights.  From 2001 to 2003, Mr. Miller was self-employed.  Mr.
Miller was the President and a Co-Founder of Pulmonox Medical Corp., a
biotechnology corporation, where he worked from 1990 to 2001. He participated
in the FDA approval process for inhaled nitric oxide therapy. Mr. Miller sold
his interest in Pulmonox in 2001.  Mr. Miller received a B.S. Degree in
Education/Business from Brigham Young University in 1972.

     Clark M. Mower.   Mr. Mower is a director of our Company and is 60 years
old. From January 2005 to the present, Mr. Mower has been the President/CEO
and a director of Flexpoint Sensor Systems, Inc., a producer of sensors for
automotive and industrial uses.  His responsibilities include all areas of
management, including staffing and financial responsibilities of a growing
sensor company.  From August 2002 to the present, Mr. Mower has also served as
a co-founder and managing member of Polar Energy, LLC, of Mountain Green,
Utah, and Littleton, Colorado, which provides consulting services to companies
that are considering divestiture, mergers or acquisitions.  From January 2000
to August 2002, Mr. Mower was Senior Vice President, Mergers and Acquisitions,
Merchant Energy Group, with El Paso Energy in Golden, Colorado, where he
worked on or lead teams that successfully closed power related acquisitions
and divestitures.

     Christie M. Woodruff Jones.  Ms. Jones is 24 years old.  Ms. Jones co-
founded Alberta 1017975 in 2003 and is the President of Alberta 1017975.  In
the fall of 2003, she became President of GeNOsys Canada, a biotechnology
corporation.  Ms. Jones has been Executive Assistant to John W.R. Miller since
1999.  Her responsibilities included: tracking nitric oxide research projects,
supervising manufacturing contractors, payroll, scheduling, and supervision of
personnel.  Ms. Jones studied mathematics at Grant MacEwan Community College
in Edmonton, Alberta, Canada.

     Significant Employees.
     ----------------------

     There are no employees who are not executive officers and who are
expected to make a significant contribution to our Company's business.

     Family Relationships.
     ---------------------

     There are no family relationships between any director or executive
officer.

     Involvement in Certain Legal Proceedings.
     -----------------------------------------

     During the past five years, no present or former director, executive
officer or person nominated to become a director or an executive officer of
our Company:

          (1) was a general partner or executive officer of any business
against which any bankruptcy petition was filed, either at the time of the
bankruptcy or two years prior to that time;

          (2) was convicted in a criminal proceeding or named subject to a
pending criminal proceeding (excluding traffic violations and other minor
offenses);
                          29
          (3) was subject to any order, judgment or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining, barring, suspending or otherwise
limiting his involvement in any type of business, securities or banking
activities; or

          (4) was found by a court of competent jurisdiction (in a civil
action), the Commission or the Commodity Futures Trading Commission to have
violated a federal or state securities or commodities law, and the judgment
has not been reversed, suspended or vacated.

     Compliance with Section 16(a) of the Exchange Act.
     --------------------------------------------------

     All reports required to be filed pursuant to Section 16(a) of the
Exchange Act have been filed on a timely basis.

     Code of Ethics.
     ---------------

     We adopted a Code of Ethics for our Chief Executive Officer or our
Chief Financial Officer and attached a copy of our Code of Ethics as an
exhibit to our Form 10-KSB for the year ended November 30, 2005.  See Part
III, Item 13.

     A copy of our Code of Ethics will be provided, free of charge, upon
request to us at the address and telephone number listed on the cover page of
this Annual Report.

     Corporate Governance.
     ---------------------

     Director Independence.
     ----------------------

     None of our directors presently qualify as independent directors due to
their percentage of Company ownership and/or affiliation with us as an
employee or consultant.

     Board Meetings and Committees; Annual Meeting Attendance.
     ---------------------------------------------------------

     During the year ended November 30, 2006, one Board meeting was held.  No
annual meeting was held in 2006.  An annual meeting will be held in 2007, at a
date and place not yet determined.

     Nominating Committee Corporate Governance Committee.
     ----------------------------------------------------

     We have not established a nominating and corporate governance committee
because, due to our lack of substantial operations and the fact that we only
have three directors and executive officers, we believe that we are able to
effectively manage the issues normally considered by a nominating and
corporate governance committee.  Following an increase in our current
operations, a further review of this issue will no doubt be necessitated and
undertaken by our management.

     Audit Committee.
     ----------------

     We have not yet established an audit committee; we do not believe the
lack of an audit committee will have any adverse effect on our financial
statements, based upon our current business operations.  We will assess the
point at which an audit committee will be necessary in the future.

     Compensation Committee.
     -----------------------

     We have not established a compensation committee because, due to our lack
of substantial operations and the fact that we only have three directors and
executive officers, we believe that we are able to effectively manage the
issues normally considered by a compensation committee.  Following an increase
in our current operations, a further review of this issue will no doubt be
necessitated and undertaken by our management.
                          30
     Shareholder Communications.
     ---------------------------

     Although we do not have a formal policy regarding communications with
the Board of Directors, stockholders may communicate with our Board of
Directors by writing to the Company at:  GeNOsys, Inc., Attention: Investor
Relations, 280 West Riverpark Dr., Suite 300, Provo, UT 84604.  Stockholders
who would like their submission directed to a particular member of the Board
may so specify, and the communications will be forwarded to that director, as
appropriate.

Item 10. Executive Compensation.

     The following table sets forth the aggregate compensation paid by us for
services rendered during the periods indicated:

                                 Other                                   All
Name and   Year or              Annual             Securities           Other
Principal  Period  Salary Bonus Compen- Restricted Underlying   LTIP   Compen-
Position    Ending  ($)    ($)  sation     Stock     Options  Payouts  sation

John W.R.
Miller,
President 11/30/06 $120,000 0    0          0           0        0        0
and       11/30/05 $ 25,100 0    0          0           0        0        0
Director     (1)

Michael J.
Holman,
Chief     11/30/06 $  8,462 0    0          0           0        0        0
Financial    (2)
Officer

Christie  11/30/06 $ 62,030 0    0          0           0        0        0
Jones,    11/30/05 $  9,630 0    0          0           0        0        0
Sec/Treas.   (3)
and
Director

Clark M.
Mower,    11/30/06        0 0  $30,000      0           0        0        0
Director  11/30/05        0 0  $ 2,500      0           0        0        0
             (4)

James P.
Doolin,
President  11/30/04       0 0    0          0           0         0       0
and          (5)
Director

Burke
Staker, VP
and        11/30/04       0 0    0          0           0         0       0
Director      (5)

(1)  John W.R. Miller, beginning November 1, 2005, receives an annual
     salary of $120,000 to serve as President and a director.
(2)  Compensation for Michael J. Holman represents earnings from his
     hire date of November 1, 2006, through November 30, 2006.
(3)  Christie M. Jones is paid $30 per hour for each hour worked for
     her services as Secretary/Treasurer and a director.
(4)  Clark M. Mower is paid $2,500 for his service as an outside director.
(5)  James P. Doolin and Burke Staker were to be paid $1,500 per quarter, or
     $6,000 annually, that was accrued.  This accrued compensation was
     forgiven as part of the GeNOsys Nevada merger.

     Stock Option Plans.
     -------------------

     No cash compensation, deferred compensation or long-term incentive plan
awards were issued or granted to our Company's management during the fiscal
years ended November 30, 2006 or 2005.  Further, no member of our management
has been granted any option or stock appreciation rights; accordingly, no
tables relating to such items have been included within this Item.

     Compensation of Directors.
     --------------------------

     Our outside Board members were each paid $2,500 monthly for service as
directors, commencing November 1, 2005.  The Chairman, if an outside director,
will receive an additional $500 per month for serving as Board Chairman; no
additional amounts are payable to our Company's directors for committee
participation or special assignments.

     Termination of Employment and Change of Control Arrangement.
     ------------------------------------------------------------

     There are no employment contracts, compensatory plans or arrangements,
including payments to be received from our Company, with respect to any
director or executive officer of our Company which would in any way result in
payments to any such person because of his or her resignation, retirement or
other termination of employment with our Company, any change in control of the
Company, or a change in the person's responsibilities following a change in
control of our Company.

Item 11. Security Ownership of Certain Beneficial Owners and Management.

     Security Ownership of Certain Beneficial Owners.
     ------------------------------------------------

     The following table sets forth the shareholdings of those persons who own
more than five percent of our Company's common stock as of the date hereof, to
wit:


                        Number of Shares           Percentage
Name and Address       Beneficially Owned           of Class
----------------       ------------------           --------
John W. R. Miller             President and         25,093,592*       55.0%
5063 N. Riverpark Way         Director
Provo, Utah  84604

Christie Melanie Woodruff     Secretary/               195,000*        0.43%
Jones                         Treasurer and
5063 N. Riverpark Way         Director
Provo, Utah  84604

Clark M. Mower                Director               8,357,864         18.3%
5509 Mountain View Drive
Mountain Green, Utah  84050

Smith Consulting Services,    Stockholder            3,337,821          7.3%
Inc.
455 East 500 So., #201
Salt Lake City,  Utah 84111

Total:                                              36,984,277*        80.9%
                          32
          *  These amounts include 120,000 shares which are jointly owned by
             John W. R. Miller and Christie Melanie Jones.

     Security Ownership of Management.
     ---------------------------------

     The following table sets forth the shareholdings of our common stock by
directors and executive officers as of the date hereof, to wit:

                          Number of Shares
                         Beneficially Owned      Percentage of
Name and Address           as of 2/22/07           of Class
----------------         ------------------      -------------
John W. R. Miller             President and         25,093,592*       55.0%
5063 N. Riverpark Way         Director
Provo, Utah  84604

Christie Melanie Woodruff     Secretary/               195,000*        0.43%
Jones                         Treasurer and
5063 N. Riverpark Way         Director
Provo, Utah  84604

Clark M. Mower                Director               8,357,864         18.3%
5509 Mountain View Drive
Mountain Green, Utah  84050

TOTALS                                              33,646,456         73.7%

     *    These amounts include 120,000 shares which are jointly owned by
          John W. R. Miller and Christie Melanie Jones.

     Changes in Control.
     -------------------

     There are no present arrangements or pledges of GeNOsys Inc.'s securities
which may result in a change in control.

Item 12. Certain Relationships and Related Transactions.

     There have been no material transactions involving $60,000 or more
between us or our subsidiaries and/or our directors, executive officers or
five percent stockholders other than compensatory arrangements set forth under
the caption "Executive Compensation," of Part III, Item 10, above.

Item 13. Exhibits and Reports on Form 8-K.

     Exhibits.
     ---------

     Listed on page 36 hereof.
                        33
Item 14. Principal Accountant Fees and Services.

     Audit Fees.
     -----------

     During the fiscal year ended November 30, 2006, audit expenses were
$9,252; during the fiscal year ended November 30, 2005, audit expenses were
$4,859.

     Audit Related Fees.
     -------------------

     During the fiscal year ended November 30, 2006, we paid $4,073 for Audit
Related Fees.  During the fiscal year ended November 30, 2005, we paid $5,226
in Audit Related Fees.

     Tax Fees.
     ---------

     During the fiscal year ended November 30, 2006, we incurred $0 in Tax
Fees; during the fiscal year ended November 30, 2005, we paid $0 for Tax Fees.

     Other Fees.
     -----------

     During the fiscal year ended November 30, 2006, we had $952 in Other
Fees; during the fiscal year ended November 30, 2005, we paid $0 in Other
Fees.

                              SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Annual Report to be
signed on its behalf by the undersigned, thereunto duly authorized.

                                             GeNOsys, Inc.

Date: 3/15/2007                           By/s/John W. R. Miller
      ---------                             -------------------------
                                            John W. R. Miller, Jr., Director
                                            and President


Date: 3/15/2007                          By/s/Christie Melanie Woodruff Jones
      ---------                             --------------------------
                                            Christie Melanie Woodruff Jones
                                            Secretary/Treasurer
                                            Director


Date: 3/15/2007                           By/s/Clark M. Mower
      ---------                             --------------------------
                                            Clark M. Mower, Director
                          35
                          Exhibit Index


Exhibit No.              Description of Exhibit


3.1            Articles of Incorporation (Incorporated by reference to the
               Company's Registration Statement on Form 10-SB filed May 14,
               2002).

3.2            By-laws (Incorporated by reference to the Company's
               Registration Statement on Form 10-SB filed May 14, 2002).

3.3            Amendment to the Articles of Incorporation dated September
               12, 2005 (Incorporated  by reference to Exhibit 3.3 of the
               Company's Form 10-KSB, dated November 30, 2005).

3.4            Amendment to the By-Laws dated June 18th, 2004 (Incorporated
               by reference to Exhibit 3.4 of the Company's Form 10-KSB,
               dated November 30, 2005).

14             Code of Ethics (Incorporated by reference to Exhibit 14 of
               the Company's Form 10-KSB, dated November 30, 2005).


21             Subsidiaries (Incorporated by reference to Exhibit 21 of the
               Company's Form 10-KSB, dated November 30, 2005).

               Registration statement on Form 10-SB filed May 14, 2002, as
               amended on September 10, 2002, November 19, 2002 and December
               9, 2002*

               Annual Report on Form 10KSB for the year ended November 30,
               2004 and filed on February 24, 2005*

               Quarterly Report on Form 10QSB for the quarter ended May 31,
               2005 and filed on July 14, 2005*

               Current Report on Form 8-K dated August 18, 2005 and filed
               August 25, 2005 and as amended on September 28, 2005*

               *   Incorporated here in by reference.

31.1           Certification of John W. R. Miller under Section 302 of the
               Sarbanes-Oxley Act of 2002.

31.2           Certification of Christie Melanie Woodruff Jones under
               Section 302 of the Sarbanes-Oxley Act of 2002.

32             Certification of John W.R. Miller and Christie Melanie
               Woodruff Jones pursuant to 18 U.S.C. Section 1350, as
               Adopted pursuant to Section 906 of the Sarbanes-Oxley Act
               Of 2002


                          36