| Nevada                                                         |   | N/A                                                        |
|----------------------------------------------------------------|--------|------------------------------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.)                       |
|                                                           |   |                                                       |
| 7170 Glover RoadMilner, B.C., Canada  V0X 1T0        |   | 604-888-0420                                               |
| (Address of principal executive offices) (Zip Code)            |   | (Registrant’s telephone number, including area code) |

----

| PART I - FINANCIAL INFORMATION                                                 |   2 |
|--------------------------------------------------------------------------------|----------|
| Item 1. Financial Statements                                                   |   2 |
| Results of Operations                                                          |   3 |
| Balance Sheet Data: 1/31/11                                                    |   3 |
| Plan of Operation                                                              |   4 |
| ITEM 1.  LEGAL PROCEEDING                                            |   6 |
| ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCCEDS |   6 |
| ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                             |   6 |
| ITEM 4. REMOVED AND RESERVED                                                   |   6 |
| ITEM 5.  OTHER INFORMATION                                           |   6 |

----

PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

| Consolidated Balance Sheets                     | F-1 |
|------------------------------------------------------|-----|
| Consolidated Statements of Operations           | F-2 |
| Consolidated Statements of Cash Flows           | F-3 |
| Notes to the Consolidated Financial Statements  | F-4 |

----

|                                                                                                                                                                 |   | January 31,2011$(unaudited) |     |   | July 31,2010$ |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|----------|--------|---------------|--------|
|                                                                                                                                                                 |   |                        |     |   |          |   |
| ASSETS                                                                                                                                                               |   |                        |     |   |          |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |
| Current Assets                                                                                                                                                       |   |                        |     |   |          |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |
| Cash                                                                                                                                                                 |   |                        | 285      |   |          |   | 5,642 |   |
| Prepaid Expenses                                                                                                                                                     |   |                        | 2,172    |   |          |   | 23,410 |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Total Current Assets                                                                                                                                                 |   |                        | 2,457    |   |          |   | 29,052 |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Deferred Financing Charges                                                                                                                                           |   |                        | 250,000  |   |          |   | 250,000 |   |
| Property and Equipment (Note 3)                                                                                                                                      |   |                        | 12,457   |   |          |   | 13,686 |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Total Assets                                                                                                                                                         |   |                        | 264,914  |   |          |   | 292,738 |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                           |   |                        |     |   |          |   |   |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Current Liabilities                                                                                                                                                  |   |                        |     |   |          |   |   |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Accounts Payable                                                                                                                                                     |   |                        | 45,030   |   |          |   | 20,685 |   |
| Due to a Related Party (Note 4)                                                                                                                                      |   |                        | 35,935   |   |          |   | 4,423 |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Total Liabilities                                                                                                                                                    |   |                        | 80,965   |   |          |   | 25,108 |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Stockholders’ Equity                                                                                                                                           |   |                        |     |   |          |   |   |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Preferred StockAuthorized: 100,000,000 preferred shares, with a par value of $0.01 per shareIssued and outstanding: nil shares                                       |   |                        | –  |   |          |   | – |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Common StockAuthorized: 100,000,000 common shares, with a par value of $0.001 per shareIssued and outstanding: 53,304,768 and 49,804,768 common shares, respectively |   |                        | 53,305   |   |          |   | 49,805 |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Additional Paid-In Capital                                                                                                                                           |   |                        | 757,344  |   |          |   | 569,176 |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Accumulated Deficit During the Development Stage                                                                                                                     |   |                        | (626,700 | )      |          |   | (351,351 | ) |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Total Stockholders’ Equity                                                                                                                                     |   |                        | 183,949  |   |          |   | 267,630 |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                     |   |                        | 264.914  |   |          |   | 292,738 |   |
|                                                                                                                                                                 |   |                        |     |   |          |   |   |   |

----

|                                                                                 |   | For the Three Months Ended  January 31,2011 |       |   | For the Three Months Ended January 31,2010 |   |       |  For the Six Months Ended January 31,2011 |   |   |  For the Six Months Ended January 31,2010 |   |   | Accumulated from July 3, 2009 (Date of Inception) to January 31,2011 |       |
|--------------------------------------------------------------------------------------|--------|-------------------------------------------------------|------------|--------|-------------------------------------------------|--------|------------|-----------------------------------------------------|--------|--------|-----------------------------------------------------|--------|--------|---------------------------------------------------------------------------|------------|
|                                                                                 |   | $                                                     |       |   | $                                               |   |       | $                                                   |   |   | $                                                   |   |   | $                                                                         |       |
|                                                                                 |   |                                                  |       |   |                                            |   |       |                                                |   |   |                                                |   |   |                                                                      |       |
| Revenue                                                                              |   |                                                  | –    |   |                                            |   | –    |                                                |   |   | –                                             |   |   |                                                                      | –    |   |   |   | – |   |
|                                                                                 |   |                                                  |       |   |                                            |   |       |                                                |   |   |                                                |   |   |                                                                      |       |   |   |   |   |   |
|                                                                                 |   |                                                  |       |   |                                            |   |       |                                                |   |   |                                                |   |   |                                                                      |       |   |   |   |   |   |
| Expenses                                                                             |   |                                                  |       |   |                                            |   |       |                                                |   |   |                                                |   |   |                                                                      |       |   |   |   |   |   |
| Depreciation (Note 3)                                                                |   |                                                  | 615        |   |                                            |   | 652        |                                                |   |   | 1,229                                               |   |   |                                                                      | 652        |   |   |   | 3,474 |   |
| Foreign exchange loss                                                                |   |                                                  | 233        |   |                                            |   | –    |                                                |   |   | 1,580                                               |   |   |                                                                      | –    |   |   |   | 8,367 |   |
| Impairment of website development costs                                              |   |                                                  | –    |   |                                            |   | –    |                                                |   |   | –                                             |   |   |                                                                      | –    |   |   |   | 6,553 |   |
| General and administrative                                                           |   |                                                  | 195,733    |   |                                            |   | 3,912      |                                                |   |   | 216,644                                             |   |   |                                                                      | 18,811     |   |   |   | 302,608 |   |
| Professional fees                                                                    |   |                                                  | 21,101     |   |                                            |   | 52,448     |                                                |   |   | 54,698                                              |   |   |                                                                      | 58,202     |   |   |   | 181,760 |   |
| Research and development                                                             |   |                                                  | 611        |   |                                            |   | 19,827     |                                                |   |   | 1,198                                               |   |   |                                                                      | 20,431     |   |   |   | 25,972 |   |
|                                                                                 |   |                                                  |       |   |                                            |   |       |                                                |   |   |                                                |   |   |                                                                      |       |   |   |   |   |   |
| Total Expenses                                                                       |   |                                                  | 218,293    |   |                                            |   | 76,839     |                                                |   |   | 275,349                                             |   |   |                                                                      | 98,096     |   |   |   | 528,734 |   |
|                                                                                 |   |                                                  |       |   |                                            |   |       |                                                |   |   |                                                |   |   |                                                                      |       |   |   |   |   |   |
| Operating Loss                                                                       |   |                                                  | (218,293   | )      |                                            |   | (76,839    | )                                                   |   |   | (275,349                                            | )      |   |                                                                      | (98,096    | ) |   |   | (528,734 | ) |
|                                                                                 |   |                                                  |       |   |                                            |   |       |                                                |   |   |                                                |   |   |                                                                      |       |   |   |   |   |   |
| Other expenses                                                                       |   |                                                  |       |   |                                            |   |       |                                                |   |   |                                                |   |   |                                                                      |       |   |   |   |   |   |
| Interest and accretion expense                                                       |   |                                                  | –    |   |                                            |   | (11,669    | )                                                   |   |   | –                                             |   |   |                                                                      | (11,724    | ) |   |   | (63,578 | ) |
|                                                                                 |   |                                                  |       |   |                                            |   |       |                                                |   |   |                                                |   |   |                                                                      |       |   |   |   |   |   |
| Net Loss                                                                             |   |                                                  | (218,293   | )      |                                            |   | (85,509    | )                                                   |   |   | (275,349                                            | )      |   |                                                                      | (109,820   | ) |   |   | (592,312 | ) |
|                                                                                 |   |                                                  |       |   |                                            |   |       |                                                |   |   |                                                |   |   |                                                                      |       |   |   |   |   |   |
| Loss Per Share – Basic and DilutedNet Loss Per Share – Basic and Diluted |   |                                                  | –    |   |                                            |   | –    |                                                |   |   | (0.01                                               | )      |   |                                                                      | (0.01      | ) |   |   |   |   |
|                                                                                 |   |                                                  |       |   |                                            |   |       |                                                |   |   |                                                |   |   |                                                                      |       |   |   |   |   |   |
| Weighted Average Shares Outstanding                                                  |   |                                                  | 51,100,000 |   |                                            |   | 30,485,000 |                                                |   |   | 50,451,000                                          |   |   |                                                                      | 16,014,000 |   |   |   |   |   |

----

|                                             |   | For the Six Months EndedJanuary 31,2011 |     |   | For the Six Months EndedJanuary 31,2010 |   |     | Accumulated from July 3, 2009 (Date of Inception) to January 31,2011 |   |
|--------------------------------------------------|--------|----------------------------------------------|----------|--------|----------------------------------------------|--------|----------|----------------------------------------------------------------------|--------|
|                                             |   | $                                            |     |   | $                                            |   |     | $                                                                    |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |
| Operating Activities                             |   |                                         |     |   |                                         |   |     |                                                                 |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |
| Net loss for the period                          |   |                                         | (275,349 | )      |                                         |   | (109,820 | )                                                                    |   |   | (592,312 | ) |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Adjustments to reconcile net loss to net cash    |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| provided by (used in) operating activities:      |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Accretion of discounts on convertible debentures |   |                                         | –  |   |                                         |   | 18,841   |                                                                 |   |   | 47,433 |   |
| Shares issued for services                       |   |                                         | 191,668  |   |                                         |   | –  |                                                                 |   |   | 191,668 |   |
| Depreciation                                     |   |                                         | 1,229    |   |                                         |   | 652      |                                                                 |   |   | 3,474 |   |
| Impairment of website development costs          |   |                                         | –  |   |                                         |   | –  |                                                                 |   |   | 6,553 |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Changes in operating assets and liabilities:     |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Prepaid expense                                  |   |                                         | 21,238   |   |                                         |   | –  |                                                                 |   |   | (1,997 | ) |
| Accounts payable                                 |   |                                         | 24,345   |   |                                         |   | 16,479   |                                                                 |   |   | 29,782 |   |
| Due to related parties                           |   |                                         | 31,512   |   |                                         |   | –  |                                                                 |   |   | 35,935 |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Net Cash Used In Operating Activities            |   |                                         | (5,357   | )      |                                         |   | (73,848  | )                                                                    |   |   | (279,464 | ) |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Investing Activities                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Purchase of property and equipment               |   |                                         | –  |   |                                         |   | –  |                                                                 |   |   | (3,242 | ) |
| Cash acquired on recapitalization                |   |                                         | –  |   |                                         |   | 86,401   |                                                                 |   |   | 86,401 |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Net Cash Used In Investing Activities            |   |                                         | –  |   |                                         |   | 86,401   |                                                                 |   |   | 83,159 |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Financing Activities                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Proceeds from Capital Lease Payable              |   |                                         | –  |   |                                         |   | 5,641    |                                                                 |   |   | – |   |
| Proceeds from issuance of common shares          |   |                                         | –  |   |                                         |   | 2,774    |                                                                 |   |   | 204,536 |   |
| Repayment of loan payable                        |   |                                         | –  |   |                                         |   | –  |                                                                 |   |   | (7,946 | ) |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Net Cash Provided By Financing Activities        |   |                                         | –  |   |                                         |   | 8,415    |                                                                 |   |   | 196,590 |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Increase (Decrease) in Cash                      |   |                                         | (5,357   | )      |                                         |   | 20,968   |                                                                 |   |   | 285 |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Cash – Beginning of Period                 |   |                                         | 5,642    |   |                                         |   | 1,081    |                                                                 |   |   | – |   |
|                                             |   |                                         |     |   |                                         |   |     |                                                                 |   |   |   |   |
| Cash – End of Period                       |   |                                         | 285      |   |                                         |   | 22,049   |                                                                 |   |   | 285 |   |

----

----

|                 |   |   Cost$ |   |   |   AccumulatedAmortization$ |   |   | January 31, 2011Net Carrying Value$(unaudited) |   |   | July 31,2010Net Carrying Value$ |   |
|----------------------|--------|-------------------|--------|--------|--------------------------------------|--------|--------|------------------------------------------------|--------|--------|---------------------------------|--------|
|                 |   |              |   |   |                                 |   |   |                                           |   |   |                            |   |
| Production equipment |   |              | 15,529 |   |                                 |   | 3,072  |                                           |   |   | 12,457                          |   |   |   | 13,686 |   |
|                 |   |              |   |   |                                 |   |   |                                           |   |   |                            |   |   |   |   |   |
|                 |   |              | 15,529 |   |                                 |   | 3,072  |                                           |   |   | 12,457                          |   |   |   | 13,686 |   |

| (a) | On December 28, 2010, the Company issued 2,000,000 common shares with a fair value of $80,000 for consulting services. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (b) | On December 28, 2010, the Company issued 1,500,000 common shares upon the exercise of stock options for consulting services with a fair value of $52,500. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                        |   | Number ofWarrants |    |   | Weighted Average Exercise Price$ |   |
|-------------------------------------------------------------|--------|-------------------|---------|--------|----------------------------------|--------|
|                                                        |   |              |    |   |                             |   |
| Outstanding, July 31, 2009                                  |   |              | – |   |                             |   | – |   |
|                                                        |   |              |    |   |                             |   |   |   |
| Issued                                                      |   |              | 371,500 |   |                             |   | 1.18 |   |
|                                                        |   |              |    |   |                             |   |   |   |
| Outstanding, July 31, 2010 and January 31, 2011 (unaudited) |   |              | 371,500 |   |                             |   | 1.18 |   |

| Number of Warrants | ExercisePrice$ | Expiry Date       |
|--------------------|----------------|-------------------|
|               |           |              |
| 49,000             | 1.50           | March 25, 2011    |
| 10,000             | 1.50           | March 30, 2011    |
| 12,500             | 1.50           | April 30, 2011    |
| 50,000             | 1.25           | December 17, 2011 |
| 250,000            | 1.08           | February 10, 2012 |
|               |           |              |
| 371,500            |           |              |

----

|                                |   | Number of Options |       |   | Weighted Average Exercise Price |   |    | Weighted-Average Remaining Contractual Term(years)$ |   |   | Aggregate Intrinsic Value$ |   |
|-------------------------------------|--------|-------------------|------------|--------|---------------------------------|--------|---------|-----------------------------------------------------|--------|--------|----------------------------|--------|
|                                |   |              |       |   |                            |   |    |                                                |   |   |                       |   |   |   |
| Outstanding, July 31, 2009 and 2010 |   |              | –    |   |                            |   | – |                                                |   |   |                       |   |   |   |   |   |
|                                |   |              |       |   |                            |   |    |                                                |   |   |                       |   |   |   |   |   |
| Granted                             |   |              | 1,500,000  |   |                            |   | 0.035   |                                                |   |   |                       |   |   |   |   |   |
| Exercised                           |   |              | (1,500,000 | )      |                            |   | 0.035   |                                                |   |   |                       |   |   |   |   |   |
|                                |   |              |       |   |                            |   |    |                                                |   |   |                       |   |   |   |   |   |
| Outstanding, January 31, 2011       |   |              | –    |   |                            |   | – |                                                |   |   | –                    |   |   |   | – |   |

|                                                  |   | For the Six Months EndedJanuary 31,2011$ |    |   | For the Six Months EndedJanuary 31,2010$ |   |    | Accumulated from July 3, 2009 (Date of Inception) to January 31,2011$ |   |
|-------------------------------------------------------|--------|-----------------------------------------------|---------|--------|-----------------------------------------------|--------|---------|-----------------------------------------------------------------------|--------|
| Interest paid                                         |   |                                          | – |   |                                          |   | – |                                                                  |   |   | – |   |
| Income tax paid                                       |   |                                          | – |   |                                          |   | – |                                                                  |   |   | – |   |
|                                                  |   |                                          |    |   |                                          |   |    |                                                                  |   |   |   |   |
| Non-cash investing and financing activities:          |   |                                          |    |   |                                          |   |    |                                                                  |   |   |   |   |
| Shares issued for payment of consulting fees          |   |                                          | 122,500 |   |                                          |   | – |                                                                  |   |   | 122,500 |   |
| Shares issued for settlement of loan payable          |   |                                          | – |   |                                          |   | – |                                                                  |   |   | 42,500 |   |
| Shares issued for settlement of convertible debt      |   |                                          | – |   |                                          |   | – |                                                                  |   |   | 74,511 |   |
| Shares issued for deposit for financing fee           |   |                                          | – |   |                                          |   | – |                                                                  |   |   | 250,000 |   |
| Loans payable acquired from recapitalization          |   |                                          | – |   |                                          |   | – |                                                                  |   |   | 50,446 |   |
| Convertible debentures acquired from recapitalization |   |                                          | – |   |                                          |   | – |                                                                  |   |   | 58,367 |   |

----

Results of Operations

| Balance Sheet Data:  |   | 1/31/11 |    |
|----------------------|--------|---------|---------|
| Cash                 |   | $       | 285     |   |
| Fixed assets         |   | $       | 12,457  |   |
| Total assets         |   | $       | 264,914 |   |
| Total liabilities    |   | $       | 80,965  |   |
| Shareholders' equity |   | $       | 183,949 |   |

----

Plan of Operation

| Description                                               | Potential Completion Date |   | Estimated Expenses ($) |      |
|-----------------------------------------------------------|---------------------------|--------|-----------------------------|-----------|
| Seedling purchases                                        | 12 months                 |   |                        | 96,000    |   |
| Packaging                                                 | 12 months                 |   |                        | 76,800    |   |
| Direct cost of sales (including research and development) | 12 months                 |   |                        | 979,200   |   |
| Shipping                                                  | 12 months                 |   |                        | 225,000   |   |
| Payroll                                                   | 12 months                 |   |                        | 350,000   |   |
| Advertising and marketing                                 | 12 months                 |   |                        | 370,000   |   |
| General and administrative expenses                       | 12 months                 |   |                        | 204,800   |   |
| Total                                                     |                      |   |                        | 2,301,800 |   |

----

----

ITEM 1.  LEGAL PROCEEDINGS

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCCEDS

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

ITEM 4.  REMOVED AND RESERVED

ITEM 5.  OTHER INFORMATION

| Exhibit No. | Description                                                        |
|-------------|--------------------------------------------------------------------|
| 10.1        | Share Exchange Agreement as filed on Form 8-K filed March 11, 2011 |
| 31.1        |  Sec. 302 Certification of Principal Executive Officer        |
| 31.2        | Sec. 302 Certification of Principal Financial Officer              |
| 32.1        | Sec. 906 Certification of Principal Executive Officer              |
| 32.2        | Sec. 906 Certification of Principal Financial Officer              |

----

| March 16, 2011 |   | Urban Barns Foods Inc.                                                 |
|----------------|--------|------------------------------------------------------------------------|
|           |   |                                                                   |
|           |   | /s/ Jacob Benne                                                        |
|           | By:    | Jacob Benne                                                            |
|           |   | (Chief Executive Officer, President, & Director)                   |
|           |   |                                                                   |
|           |   | /s/ Daniel Meikleham                                                   |
|           | By:    | Daniel Meikleham                                                       |
|           |   | (Chief Financial Officer, Principal Accounting Officer & Director) |