| NEVADA                                                       | 98-0559606                           |
|--------------------------------------------------------------|--------------------------------------|
| State or other jurisdiction of incorporation or organization | (I.R.S. Employer Identification No.) |
|                                                         |                                 |
| 120 Wall Street, Suite 2401                                  | 10005                                |
| New York, NY                                                 |                                 |
| (Address of principal executive offices)                     | (Zip Code)                           |

----

| Large accelerated filer [ ]                                                        | Accelerated filer [ ]           |
|------------------------------------------------------------------------------------|---------------------------------|
| Non-accelerated filer [ ] (Do not check if a smaller reporting company)  | Smaller reporting company [ x ] |

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|                          |                                                                                                                                                             | Page No. |
|-------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|                          |                                                                                                                                                             |     |
| PART I. FINANCIAL INFORMATION |                                                                                                                                                             |
|                          |                                                                                                                                                             |     |
| Item 1.                       | Financial Statements                                                                                                                                             | 1        |
|                          |                                                                                                                                                             |     |
|                          | Condensed Balance Sheets – at August 31, 2010 (unaudited) and February 28, 2010                                                                            | 1        |
|                          |                                                                                                                                                             |     |
|                          | Condensed Statements of Operations for the three and six months ended August 31, 2010 and 2009, and for the period from inception to August 31, 2010 (unaudited) | 2        |
|                          |                                                                                                                                                             |     |
|                          | Condensed Statement of stockholders’ equity for the period from inception (April 26, 2000) to August 31, 2010 (unaudited)                                  |     |
|                          |                                                                                                                                                             |     |
|                          | Condensed Statements of Cash Flows for the six months ended August 31, 2010 and 2009, and for the period from inception to August 31, 2010 (unaudited)           | 3        |
|                          |                                                                                                                                                             |     |
|                          | Notes to the Condensed Financial Statements (unaudited)                                                                                                          | 4        |
|                          |                                                                                                                                                             |     |
| Item 2.                       | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                      | 12       |
|                          |                                                                                                                                                             |     |
| Item 3.                       | Quantitative and Qualitative Disclosures About Market Risk                                                                                                       | 15       |
|                          |                                                                                                                                                             |     |
| Item 4.                       | Controls and Procedures                                                                                                                                          | 15       |
|                          |                                                                                                                                                             |     |
| PART II. OTHER INFORMATION    |                                                                                                                                                             |
|                          |                                                                                                                                                             |     |
| Item 1.                       | Legal Proceedings                                                                                                                                                | 16       |
|                          |                                                                                                                                                             |     |
| Item 2.                       | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                      | 16       |
|                          |                                                                                                                                                             |     |
| Item 3.                       | Defaults Upon Senior Securities                                                                                                                                  | 16       |
|                          |                                                                                                                                                             |     |
| Item 4.                       | (Removed and Reserved)                                                                                                                                           | 16       |
|                          |                                                                                                                                                             |     |
| Item 5.                       | Other Information                                                                                                                                                | 16       |
|                          |                                                                                                                                                             |     |
| Item 6.                       | Exhibits                                                                                                                                                         | 16       |
|                          |                                                                                                                                                             |     |
| Signatures                    |                                                                                                                                                             | 17       |

----

| THERABIOGEN, INC.                                                                   |
|-------------------------------------------------------------------------------------|
| (A DEVELOPMENT STAGE COMPANY)                                                       |
| CONDENSED BALANCE SHEETS                                                            |
|                                                                                |   |   |   |   |   |   |
|                                                                                |   | August 31, 2010 |   |   | February 28, 2010 |   |
|                                                                                |   | (unaudited) |   |   |   |   |
| ASSETS                                                                              |   |   |   |   |   |   |
| Current assets                                                                      |   |   |   |   |   |   |
| Cash and cash equivalents                                                           |   | $ | 50,173 |   |   | $ | 4,137 |   |
| Inventory                                                                           |   |   | 203,000 |   |   |   | 14,147 |   |
| Note and interest receivable-related party                                          |   |   | 10,713 |   |   |   | 10,411 |   |
|    Total current assets                                              |   |   | 263,886 |   |   |   | 28,695 |   |
| License, net of amortization of $208,397 and $161,993                               |   |   | 2,219,803 |   |   |   | 2,266,207 |   |
| Mineral rights                                                                      |   |   | 7,349 |   |   |   | 7,349 |   |
| Goodwill                                                                            |   |   | 101,183 |   |   |   | 101,183 |   |
|    Total assets                                                      |   | $ | 2,592,221 |   |   | $ | 2,403,434 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                |   |   |   |   |   |   |   |   |
| Current liabilities                                                                 |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                               |   | $ | 169,234 |   |   | $ | 99,528 |   |
| Notes and interest payable-related parties                                          |   |   | 795,133 |   |   |   | 343,059 |   |
| Note payable - net of discount of $130,500 and $ 0                                  |   |   | 129,500 |   |   |   | - |   |
|                                                                                |   |   |   |   |   |   |   |   |
|     Total current liabilities                                   |   |   | 1,093,867 |   |   |   | 442,587 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Notes payable-related parties                                                       |   |   | - |   |   |   | 374,000 |   |
| Note payable                                                                        |   |   | - |   |   |   | 20,000 |   |
| Liability for unissued common stock                                                 |   |   | 97,500 |   |   |   | - |   |
|                                                                                |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' EQUITY                                                                |   |   |   |   |   |   |   |   |
| Common stock, $0.001 par value, 150,000,000 shares                                  |   |   |   |   |   |   |   |   |
|     authorized 36,953,500  and 32,927,500 outstanding |   |   | 36,954 |   |   |   | 32,927 |   |
| Additional paid-in capital                                                          |   |   | 5,020,796 |   |   |   | 2,689,422 |   |
| Deficit accumulated during the development stage                                    |   |   | (3,656,896 | ) |   |   | (1,155,502 | ) |
|   Total stockholders' equity                                              |   |   | 1,400,854 |   |   |   | 1,566,847 |   |
|   Total liabilities and stockholders' equity                              |   | $ | 2,592,221 |   |   | $ | 2,403,434 |   |

----

| THERABIOGEN, INC.                   |
|-------------------------------------|
| (A DEVELOPMENT STAGE COMPANY)       |
| CONDENSED STATEMENTS OF OPERATIONS  |
| (unaudited)                         |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   | Three Months Ended |   |   | Six Months Ended |   |   | Inception(April 26, 2000) |   |
|                                |   | August 31, |   |   | August 31, |   |   | to |   |
|                                |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |   | August 31, 2010 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative          |   | $ | 1,355,443 |   |   | $ | 109,988 |   |   | $ | 2,154,058 |   |   | $ | 150,602 |   |   | $ | 3,008,964 |   |
| Selling and marketing               |   |   | 194,993 |   |   |   | 22,866 |   |   |   | 209,018 |   |   |   | 44,762 |   |   |   | 286,526 |   |
| Amortization                        |   |   | 23,202 |   |   |   | 39,220 |   |   |   | 46,404 |   |   |   | 68,635 |   |   |   | 208,397 |   |
| Interest-net - related party        |   |   | 25,528 |   |   |   | 9,297 |   |   |   | 45,966 |   |   |   | 16,320 |   |   |   | 107,061 |   |
| Interest -net                       |   |   | 25,066 |   |   |   | - |   |   |   | 30,948 |   |   |   | - |   |   |   | 30,948 |   |
| Finance cost                        |   |   | 15,000 |   |   |   | - |   |   |   | 15,000 |   |   |   | - |   |   |   | 15,000 |   |
| Total expenses                      |   |   | 1,639,232 |   |   |   | 181,371 |   |   |   | 2,501,394 |   |   |   | 280,319 |   |   |   | 3,656,896 |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                            |   | $ | (1,639,232 | ) |   | $ | (181,371 | ) |   | $ | (2,501,394 | ) |   | $ | (280,319 | ) |   | $ | (3,656,896 | ) |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss - per share                |   | $ | (0.05 | ) |   | $ | (0.01 | ) |   | $ | (0.07 | ) |   | $ | (0.01 | ) |   |   |   |   |
|                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  basic and dilutive            |   |   | 35,223,523 |   |   |   | 18,791,000 |   |   |   | 34,018,216 |   |   |   | 18,791,000 |   |   |   |   |   |

----

| THERABIOGEN, INC.                                      |
|--------------------------------------------------------|
| (A DEVELOPMENT STAGE COMPANY)                          |
| CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   | Additional |   |   | Deficit |   |   | Total |   |
|                                                   |   | Preferred Stock |   |   | Common Stock |   |   | Paid-in |   |   | From |   |   | Stockholders' |   |
|                                                   |   | Number |   |   | Amount |   |   | Number |   |   | Amount |   |   | Capital |   |   | Inception |   |   | Equity |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                                   |   |   |   |   |   |   |   |   | 1,290,000 |   |   | $ | 129 |   |   | $ | 3,926 |   |   |   |   |   | $ | 4,055 |   |
| Services                                               |   |   |   |   |   |   |   |   | 600,000 |   |   |   | 60 |   |   |   | 540 |   |   |   |   |   |   | 600 |   |
| Net loss for for the period                            |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   | $ | (2,780.0 | ) |   |   | (2,780 | ) |
| Balance - February 28, 2001                            |   |   | - |   |   |   | - |   |   |   | 1,890,000 |   |   |   | 189 |   |   |   | 4,466 |   |   |   | (2,780 | ) |   |   | 1,875 |   |
| Common stock issued for cash                           |   |   |   |   |   |   |   |   |   |   | 5,000 |   |   |   | 1 |   |   |   | 149 |   |   |   |   |   |   |   | 150 |   |
| Net loss for the year                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (6,479 | ) |   |   | (6,479 | ) |
| Balance - February 28, 2002                            |   |   | - |   |   |   | - |   |   |   | 1,895,000 |   |   |   | 190 |   |   |   | 4,615 |   |   |   | (9,259 | ) |   |   | (4,454 | ) |
| Net loss for the year                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (8,499 | ) |   |   | (8,499 | ) |
| Balance - February 28, 2003 and 2004                   |   |   | - |   |   |   | - |   |   |   | 1,895,000 |   |   |   | 190 |   |   |   | 4,615 |   |   |   | (17,758 | ) |   |   | (12,953 | ) |
| Contributed capital                                    |   |   | - |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 5,000 |   |   |   |   |   |   |   | 5,000 |   |
| Net loss for the year                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (5,000 | ) |   |   | (5,000 | ) |
| Balance - February 28, 2005                            |   |   | - |   |   |   | - |   |   |   | 1,895,000 |   |   |   | 190 |   |   |   | 9,615 |   |   |   | (22,758 | ) |   |   | (12,953 | ) |
| Cancellation of stock                                  |   |   |   |   |   |   |   |   |   |   | (1,800,000 | ) |   |   | (180 | ) |   |   | 180 |   |   |   |   |   |   |   | - |   |
| Issuance of preferred stock                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Conversion of indebtedness                             |   |   | 135,000 |   |   | $  | 14 |   |   |   |   |   |   |   |   |   |   |   | 5,986 |   |   |   |   |   |   |   | 6,000 |   |
| Issuance of common stock                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Conversion of indebtedness                             |   |   |   |   |   |   |   |   |   |   | 750,000 |   |   |   | 75 |   |   |   | 1,675 |   |   |   |   |   |   |   | 1,750 |   |
| Conversion of preferred stock                          |   |   | (135,000 | ) |   |   | (14 | ) |   |   | 1,350,000 |   |   |   | 135 |   |   |   | (121 | ) |   |   |   |   |   |   | - |   |
| Net income for the year                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 5,203 |   |   |   | 5,203 |   |
| Balance - February 28, 2006                            |   |   | - |   |   |   | - |   |   |   | 2,195,000 |   |   |   | 220 |   |   |   | 17,335 |   |   |   | (17,555 | ) |   |   | - |   |
| Net loss for the year                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,000 | ) |   |   | (1,000 | ) |
| Balance - February 28, 2007                            |   |   | - |   |   |   | - |   |   |   | 2,195,000 |   |   |   | 220 |   |   |   | 17,335 |   |   |   | (18,555 | ) |   |   | (1,000 | ) |
| Net loss for the year                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,000 | ) |   |   | (1,000 | ) |
| Balance - February 28, 2008                            |   |   | - |   |   |   | - |   |   |   | 2,195,000 |   |   |   | 220 |   |   |   | 17,335 |   |   |   | (19,555 | ) |   |   | (2,000 | ) |
| Common stock isssued:                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| Acquisition of license                                 |   |   |   |   |   |   |   |   |   |   | 15,300,000 |   |   |   | 1,530 |   |   |   | 2,201,670 |   |   |   |   |   |   |   | 2,203,200 |   |
| Services                                               |   |   |   |   |   |   |   |   |   |   | 400,000 |   |   |   | 40 |   |   |   |   |   |   |   |   |   |   |   | 40 |   |
| Conversion of debt                                     |   |   |   |   |   |   |   |   |   |   | 896,000 |   |   |   | 90 |   |   |   | 6,310 |   |   |   |   |   |   |   | 6,400 |   |
| Net loss for the year                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (190,306 | ) |   |   | (190,306 | ) |
| Balance - February 28, 2009                            |   |   | - |   |   |   | - |   |   |   | 18,791,000 |   |   |   | 1,880 |   |   |   | 2,225,315 |   |   |   | (209,861 | ) |   |   | 2,017,334 |   |
| Effect of recapitalization - reverse merger            |   |   |   |   |   |   |   |   |   |   | 13,598,000 |   |   |   | 30,509 |   |   |   | 195,645 |   |   |   |   |   |   |   | 226,154 |   |
| Issuance of unit of 2 shares of                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | - |   |
| common stock and one warrant                           |   |   |   |   |   |   |   |   |   |   | 538,000 |   |   |   | 538 |   |   |   | 268,462 |   |   |   |   |   |   |   | 269,000 |   |
| Net loss for the year                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (945,641 | ) |   |   | (945,641 | ) |
| Balance - February 28, 2010                            |   |   |   |   |   |   |   |   |   |   | 32,927,000 |   |   |   | 32,927 |   |   |   | 2,689,422 |   |   |   | (1,155,502 | ) |   |   | 1,566,847 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of  units of 2 shares of       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| common stock and one warrant                      |   |   |   |   |   |   |   |   |   |   | 334,000 |   |   |   | 334 |   |   |   | 166,666 |   |   |   |   |   |   |   | 167,000 |   |
| Common stock issued:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash                                                   |   |   |   |   |   |   |   |   |   |   | 300,000 |   |   |   | 300 |   |   |   | 149,700 |   |   |   |   |   |   |   | 150,000 |   |
| Warrant exercise                                       |   |   |   |   |   |   |   |   |   |   | 400,000 |   |   |   | 400 |   |   |   |   |   |   |   |   |   |   |   | 400 |   |
| Debt                                                   |   |   |   |   |   |   |   |   |   |   | 162,500 |   |   |   | 163 |   |   |   | 81,087 |   |   |   |   |   |   |   | 81,250 |   |
| Conversion of debt                                     |   |   |   |   |   |   |   |   |   |   | 250,000 |   |   |   | 250 |   |   |   | 124,750 |   |   |   |   |   |   |   | 125,000 |   |
| Awards                                                 |   |   |   |   |   |   |   |   |   |   | 2,525,000 |   |   |   | 2,525 |   |   |   | 1,107,475 |   |   |   |   |   |   |   | 1,110,000 |   |
| Financing                                              |   |   |   |   |   |   |   |   |   |   | 55,000 |   |   |   | 55 |   |   |   | (14,304 | ) |   |   |   |   |   |   | (14,249 | ) |
| Beneficial conversion feature -notes payable           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 23,000 |   |   |   |   |   |   |   | 23,000 |   |
| Fair market value of warrant and option awards         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 693,000 |   |   |   |   |   |   |   |   |   |
| Net loss for the period                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (2,501,394 | ) |   |   | (1,808,394 | ) |
| Balance - August 31, 2010 (unaudited)                  |   |   | - |   |   | $ | - |   |   |   | 36,953,500 |   |   | $ | 36,954 |   |   | $ | 5,020,796 |   |   | $ | (3,656,896 | ) |   | $ | 1,400,854 |   |

----

| THERABIOGEN, INC.                                                                    |                                  |
|--------------------------------------------------------------------------------------|---------------------------------------|
| (A DEVELOPMENT STAGE COMPANY)                                                        |                                  |
| CONDENSED STATEMENTS OF CASH FLOWS                                                   |                                  |
| (unaudited)                                                                          |                                  |
|                                                                                 |                                  |   | Six Months Ended |   |   |   |   |
|                                                                                 |                                  |   | August 31, |   |   | Inception to |   |
|                                                                                 |                                  |   | 2010 |   |   | 2009 |   |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                 |                                  |   |   |   |   |   |   |   |   |
| Net loss                                                                             |                                  |   | $ | (2,501,394 | ) |   | $ | (280,319 | ) |   | $ | (3,656,896 | ) |
| Adjustments to reconcile to net loss to net cash                                     |                                  |   |   |   |   |   |   |   |   |   |   |   |
| used in operating activities                                                         |                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Amortization of debt discount         |   |   | 31,250 |   |   |   | - |   |   |   | 31,250 |   |
|                                                                                 | Amortization of license costs         |   |   | 46,404 |   |   |   | 49,028 |   |   |   | 208,397 |   |
|                                                                                 | Noncash compensation                  |   |   | 1,803,000 |   |   |   | - |   |   |   | 1,976,390 |   |
| Changes in operating assets and liabilities                                          |                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 | Interest receivable                   |   |   | (312 | ) |   |   | - |   |   |   | (713 | ) |
|                                                                                 | Inventory                             |   |   | (188,853 | ) |   |   | (3,000 | ) |   |   | (203,000 | ) |
|                                                                                 | Accounts payable and accrued expenses |   |   | 109,683 |   |   |   | 46,507 |   |   |   | 232,592 |   |
| Net cash used in operating activities                                                |                                  |   | (700,222 | ) |   |   | (187,784 | ) |   |   | (1,411,980 | ) |
|                                                                                 |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                 |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Acquisition of license                                                               |                                  |   | - |   |   |   | (75,000 | ) |   |   | (225,000 | ) |
| Loan to related party                                                                |                                  |   | - |   |   |   | - |   |   |   | (10,000 | ) |
| Net cash used in investing activities                                                |                                  |   | - |   |   |   | (75,000 | ) |   |   | (235,000 | ) |
|                                                                                 |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                 |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Net proceeds from issuance of common stock and units (including shares to be issued) |                                  |   | 342,751 |   |   |   | - |   |   |   | 615,956 |   |
| Exercise of stock warrants                                                           |                                  |   | 400 |   |   |   | - |   |   |   | 400 |   |
| Proceeds from capital contribution                                                   |                                  |   |   |   |   |   | 500 |   |   |   | 5,000 |   |
| Proceeds from issuance of indebtedness                                               |                                  |   | 365,000 |   |   |   |   |   |   |   | 385,000 |   |
| Proceeds from issuance of debt - related parties                                     |                                  |   | 38,107 |   |   |   | 270,000 |   |   |   | 689,607 |   |
| Net cash provided by financing activities                                            |                                  |   | 746,258 |   |   |   | 270,500 |   |   |   | 1,695,963 |   |
|                                                                                 |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase in cash                                                                 |                                  |   | 46,036 |   |   |   | 7,716 |   |   |   | 48,983 |   |
|                                                                                 |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash at beginning of period                                                          |                                  |   | 4,137 |   |   |   | 871 |   |   |   | - |   |
|                                                                                 |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash at end of period                                                                |                                  | $ | 50,173 |   |   | $ | 8,587 |   |   | $ | 48,983 |   |
|                                                                                 |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW INFORMATION                                                   |                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-cash investing and financing activities                                          |                                  |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                 |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Common stock issued  in connection with:                                   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| extinguishment of indebtedness                                                       |                                  | $ | 125,000 |   |   | $ | - |   |   | $ | 131,400 |   |
| acquisition                                                                          |                                  | $ | - |   |   | $ | - |   |   | $ | 61,154 |   |
| license                                                                              |                                  |   | $ | - |   |   | $ | - |   |   | $ | 2,203,200 |   |

----

| THERABIOGEN, INC.                                 |
|---------------------------------------------------|
| (A DEVELOPMENT STAGE COMPANY)                     |
|  NOTES TO CONDENED FINANCIAL STATEMENTS |
|                                              |

----

----

----

| Financial Statement Caption                        |   | As previously Reported |       |                      | Adjustment |   |     | As Restated               |   |
|--------------------------------------------------------------|--------|-----------------------------|------------|---------------------------|------------|--------|----------|---------------------------|--------|
|                                                         |   |                        |       |                      |       |   |     |                      |   |
| Additional paid-in capital                              |   | $                           | 4,327,796  |                      |       | $      | 693,000  |                      |   | $ | 5,020,796 |   |
|                                                         |   |                        |       |                      |       |   |     |                      |   |   |   |   |
| Deficit accumulated during the development stage   |   | $                           | (2,963,896 | )     |       | $      | (693,000 | )     |   | $ | (3,656,896 | ) |
|                                                         |   |                        |       |                      |       |   |     |                      |   |   |   |   |

| Financial Statement Caption   |   | As previously Reported |     |   | Adjustment |   |     | As Restated               |   |
|-----------------------------------------|--------|-----------------------------|----------|--------|------------|--------|----------|---------------------------|--------|
|                                    |   |                        |     |   |       |   |     |                      |   |
| General and administrative    |   | $                           | 851,443  |   |       | $      | 504,000  |                      |   | $ | 1,355,443 |   |
| Selling and marketing    |   | $                           | 5,993    |   |       | $      | 189,000  |                      |   | $ | 194,993 |   |
| Total expenses      |   | $                           | 946,232  |   |       | $      | 693,000  |                      |   | $ | 1,639,232 |   |
| Net loss                 |   | $                           | (946,232 | )      |       | $      | (693,000 | )     |   | $ | (1,639,232 | )  |
| Net loss - per share          |   |                        | (0.03    | )      |       |   | (0.02    | )                         |   |   | (0.05 | ) |

| Financial Statement Caption   |   | As previously Reported |            |   | Adjustment |   |     | As Restated               |   |
|-----------------------------------------|--------|-----------------------------|-----------------|--------|------------|--------|----------|---------------------------|--------|
|                                    |   |                        |            |   |       |   |     |                      |   |
| General and administrative    |   | $                           | 1,650,058  |   |       | $      | 504,000  |                      |   | $ |  2,154,058 |   |
| Selling and marketing    |   | $                           | 20,018          |   |       | $      | 189,000  |                      |   | $ | 209,018 |   |
| Total expenses      |   | $                           | 1,808,394       |   |       | $      | 693,000  |                      |   | $ | 2,501,394 |   |
| Net loss                 |   | $                           | (1,808,394      | )      |       | $      | (693,000 | )     |   | $ | (2,501,394 | )  |
| Net loss - per share          |   |                        | (0.05           | )      |       |   | (0.02    | )                         |   |   | (0.07 | ) |

----

| Financial Statement Caption   |   | As previously Reported |         |   | Adjustment |   |     | As Restated               |   |
|-----------------------------------------|--------|-----------------------------|--------------|--------|------------|--------|----------|---------------------------|--------|
|                                    |   |                        |         |   |       |   |     |                      |   |
| General and administrative    |   | $                           | 2,504,964    |   |       | $      | 504,000  |                      |   | $ |  3,008,964 |   |
| Selling and marketing    |   | $                           | 97,526  |   |       | $      | 189,000  |                      |   | $ | 286,526 |   |
| Total expenses      |   | $                           | 2,963,896    |   |       | $      | 693,000  |                      |   | $ | 3,656,896 |   |
| Net loss                 |   | $                           | (2,963,896   | )      |       | $      | (693,000 | )     |   | $ | (3,656,896 | )  |

| Financial Statement Caption   |   | As previously Reported |       |   | Adjustment |   |     | As Restated |   |
|-----------------------------------------|--------|-----------------------------|------------|--------|------------|--------|----------|-------------|--------|
|                                    |   |                        |       |   |       |   |     |        |   |
| Net loss                      |   | $                           | (1,808,394 | )      |       | $      | (693,000 | )           |   | $ | (2,501,394 | ) |
| Noncash compensation          |   | $                           | 1,110,000  |   |       | $      | 693,000  |        |   | $ | 1,803,000 |   |

| Financial Statement Caption   |   | As previously Reported |            |   | Adjustment |   |     | As Restated |   |
|-----------------------------------------|--------|-----------------------------|-----------------|--------|------------|--------|----------|-------------|--------|
|                                    |   |                        |            |   |       |   |     |        |   |
| Net loss                      |   | $                           | (2,963,896      | )      |       | $      | (693,000 | )           |   | $ | (3,656,896 | ) |
| Noncash compensation          |   | $                           | 1,283,390  |   |       | $      | 693,000  |        |   | $ | 1,976,390 |

----

| Mineral rights                                                                                                                                                   |   | $      | 7,349   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|
| Goodwill                                                                                                                 |   |   | 101,183 |   |
| Accounts payable                                                                                                                                                                                         |   |   | (47,378 | )      |
|                                                                                                                                                                                                                                                                                                                                            |   | $      | 61,154  |   |

----

----

----

----

----

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| Exhibit |   | Description                                                     |
|---------|--------|-----------------------------------------------------------------|
| 31.1    |   | Certification of Chief Executive and Principal Financial Offcer |
|    |   |                                                            |
| 32.1    |   | Section 1350 Certification                                      |

----

|   | TheraBiogen, Inc. |                                                      |
|--------|-------------------|-----------------------------------------------------------|
|   |              |                                                      |   |
|   | By:               | /s/ Kelly T. Hickel                   |   |
|   |              | Chief Executive and Principal Financial Officer |   |
|   |              |                                                      |   |
|   |              |                                                      |   |