| 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   |
| Consolidated Balance Sheets                                                    | F-1 |
| Consolidated Statements of Expenses                                       | F-2 |
| Consolidated Statements of Cash Flows                                          | F-3 |
| Notes to the Financial Statements                                         | F-4 |
| ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.       | 3   |
| ITEM 3.  CONTROLS AND PROCEDURES.                                         | 5   |
| PART II - OTHER INFORMATION                                                    | 6   |
| ITEM 1.  LEGAL PROCEEDINGS                                           | 6   |
| ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCCEDS | 6   |
| ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                             | 6   |
| ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS         | 6   |
| ITEM 5.  OTHER INFORMATION                                           | 6   |
| ITEM 6.  EXHIBITS                                                         | 6   |

----

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS 

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

----

Consolidated Balance Sheets

|                                                                                                                                                                         |   | April 30, 2010$(unaudited) |     |   | July 31, 2009$ |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------|----------|--------|----------------|--------|
|                                                                                                                                                                         |   |                       |     |   |           |   |
| ASSETS                                                                                                                                                                       |   |                       |     |   |           |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |
| Current Assets                                                                                                                                                               |   |                       |     |   |           |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |
| Cash                                                                                                                                                                         |   |                       | 144,787  |   |           |   | 1,081 |   |
| Prepaid Expenses                                                                                                                                                             |   |                       | 11,000   |   |           |   | – |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| Total Current Assets                                                                                                                                                         |   |                       | 155,787  |   |           |   | 1,081 |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| Deferred Financing Charges                                                                                                                                                   |   |                       | 250,175  |   |           |   | – |   |
| Property and Equipment (Note 4)                                                                                                                                              |   |                       | 14,384   |   |           |   | – |   |
| Website (Note 4)                                                                                                                                                             |   |                       | 6,553    |   |           |   | – |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| Total Assets                                                                                                                                                                 |   |                       | 426,899  |   |           |   | 1,081 |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                   |   |                       |     |   |           |   |   |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| Current Liabilities                                                                                                                                                          |   |                       |     |   |           |   |   |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| Accounts Payable                                                                                                                                                             |   |                       | 63,790   |   |           |   | – |   |
| Due to a Related Party (Note 7)                                                                                                                                              |   |                       | 18,648   |   |           |   | – |   |
| Capital Lease Payable                                                                                                                                                        |   |                       | 5,307    |   |           |   | – |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| Total Liabilities                                                                                                                                                            |   |                       | 87,745   |   |           |   | – |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| Stockholders’ Equity                                                                                                                                                   |   |                       |     |   |           |   |   |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| Common StockAuthorized: 100,000,000 common shares, with a par value of $0.001 per shareIssued and outstanding: 49,804,768  and 400,000 common shares, respectively |   |                       | 49,805   |   |           |   | 1,846 |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| Additional Paid-In Capital                                                                                                                                                   |   |                       | 496,291  |   |           |   | – |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| Accumulated Deficit During the Development Stage                                                                                                                             |   |                       | (206,942 | )      |           |   | (765 | ) |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| Total Stockholders’ Equity                                                                                                                                             |   |                       | 339,154  |   |           |   | 1,081 |   |
|                                                                                                                                                                         |   |                       |     |   |           |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                             |   |                       | 426,899  |   |           |   | 1,081 |   |

----

Consolidated Statements of Operations

|                                                                                 |   | For the Three Months Ended April 30, 2010$ |       |   |  For the Nine Months Ended April 30, 2010$ |   |       | Accumulated from July 3, 2009 (Date of Inception) to April 30, 2010$ |   |
|--------------------------------------------------------------------------------------|--------|--------------------------------------------|------------|--------|-------------------------------------------------|--------|------------|----------------------------------------------------------------------|--------|
|                                                                                 |   |                                       |       |   |                                            |   |       |                                                                 |   |   |   |   |
| Revenue                                                                              |   |                                       | –    |   |                                            |   | –    |                                                                 |   |   | – |   |
|                                                                                 |   |                                       |       |   |                                            |   |       |                                                                 |   |   |   |   |
|                                                                                 |   |                                       |       |   |                                            |   |       |                                                                 |   |   |   |   |
| Expenses                                                                             |   |                                       |       |   |                                            |   |       |                                                                 |   |   |   |   |
|                                                                                 |   |                                       |       |   |                                            |   |       |                                                                 |   |   |   |   |
| Accretion expense                                                                    |   |                                       | 4,128      |   |                                            |   | 14,033     |                                                                 |   |   | 14,033 |   |
| Depreciation (Note 4)                                                                |   |                                       | 980        |   |                                            |   | 1,632      |                                                                 |   |   | 1,632 |   |
| Foreign exchange loss                                                                |   |                                       | 2,235      |   |                                            |   | 4,565      |                                                                 |   |   | 4,565 |   |
| General and administrative                                                           |   |                                       | 28,089     |   |                                            |   | 35,564     |                                                                 |   |   | 35,655 |   |
| Professional fees                                                                    |   |                                       | 52,076     |   |                                            |   | 110,278    |                                                                 |   |   | 110,952 |   |
| Research and development                                                             |   |                                       | 8,427      |   |                                            |   | 28,858     |                                                                 |   |   | 28,858 |   |
|                                                                                 |   |                                       |       |   |                                            |   |       |                                                                 |   |   |   |   |
| Total Expenses                                                                       |   |                                       | 95,935     |   |                                            |   | 194,930    |                                                                 |   |   | 195,695 |   |
|                                                                                 |   |                                       |       |   |                                            |   |       |                                                                 |   |   |   |   |
| Operating Loss                                                                       |   |                                       | (95,935    | )      |                                            |   | (194,930   | )                                                                    |   |   | (195,695 | ) |
|                                                                                 |   |                                       |       |   |                                            |   |       |                                                                 |   |   |   |   |
| Other Expenses                                                                       |   |                                       |       |   |                                            |   |       |                                                                 |   |   |   |   |
| Interest expense                                                                     |   |                                       | (422       | )      |                                            |   | (2,311     | )                                                                    |   |   | (2,311 | ) |
| Loss on settlement of convertible debt                                               |   |                                       | –    |   |                                            |   | (8,936     | )                                                                    |   |   | (8,936 | ) |
|                                                                                 |   |                                       |       |   |                                            |   |       |                                                                 |   |   |   |   |
| Net Loss                                                                             |   |                                       | (96,357    | )      |                                            |   | (206,177   | )                                                                    |   |   | (206,942 | ) |
|                                                                                 |   |                                       |       |   |                                            |   |       |                                                                 |   |   |   |   |
| Loss Per Share – Basic and DilutedNet Loss Per Share – Basic and Diluted |   |                                       | –    |   |                                            |   | (0.01      | )                                                                    |   |   |   |   |
|                                                                                 |   |                                       |       |   |                                            |   |       |                                                                 |   |   |   |   |
| Weighted Average Shares Outstanding                                                  |   |                                       | 48,561,893 |   |                                            |   | 26,625,204 |                                                                 |   |   |   |   |

----

Consolidated Statements of Cash Flows

|                                                 |   | For the Nine Months EndedApril 30, 2010$ |     |   | Accumulated from July 3, 2009(Date of Inception) to April 30, 2010$ |   |
|------------------------------------------------------|--------|----------------------------------------------------|----------|--------|---------------------------------------------------------------------|--------|
|                                                 |   |                                               |     |   |                                                                |   |
| Operating Activities                                 |   |                                               |     |   |                                                                |   |
|                                                 |   |                                               |     |   |                                                                |   |
| Net loss for the period                              |   |                                               | (206,177 | )      |                                                                |   | (206,942 | ) |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Adjustments to reconcile net loss to net cash        |   |                                               |     |   |                                                                |   |   |   |
| provided by (used in) operating activities:          |   |                                               |     |   |                                                                |   |   |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Accretion expense                                    |   |                                               | 14,033   |   |                                                                |   | 14,033 |   |
| Depreciation                                         |   |                                               | 1,632    |   |                                                                |   | 1,632 |   |
| Loss on settlement of convertible debt               |   |                                               | 8,936    |   |                                                                |   | 8,936 |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Changes in operating assets and liabilities:    |   |                                               |     |   |                                                                |   |   |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Prepaid expense                                      |   |                                               | (11,000  | )      |                                                                |   | (11,000 | ) |
| Accounts payable                                     |   |                                               | 34,507   |   |                                                                |   | 34,507 |   |
| Capital lease payable                                |   |                                               | 5,307    |   |                                                                |   | 5,307 |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Net Cash Used In Operating Activities                |   |                                               | (152,762 | )      |                                                                |   | (153,527 | ) |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Investing Activities                                 |   |                                               |     |   |                                                                |   |   |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Purchase of property and equipment                   |   |                                               | (3,326   | )      |                                                                |   | (3,326 | ) |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Net Cash Used In Investing Activities                |   |                                               | (3,326   | )      |                                                                |   | (3,326 | ) |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Financing Activities                                 |   |                                               |     |   |                                                                |   |   |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Cash acquired on acquisition                         |   |                                               | 86,401   |   |                                                                |   | 86,401 |   |
| Proceeds from issuance of common shares              |   |                                               | 202,691  |   |                                                                |   | 204,537 |   |
| Repayment of loan payable                            |   |                                               | (7,946   | )      |                                                                |   | (7,946 | ) |
| Proceeds from related parties                        |   |                                               | 18,648   |   |                                                                |   | 18,648 |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Net Cash Provided By Financing Activities            |   |                                               | 299,794  |   |                                                                |   | 301,640 |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Increase in Cash                                     |   |                                               | 143,706  |   |                                                                |   | 144,787 |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Cash – Beginning of Period                     |   |                                               | 1,081    |   |                                                                |   | – |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Cash – End of Period                           |   |                                               | 144,787  |   |                                                                |   | 144,787 |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Supplemental Disclosures                             |   |                                               |     |   |                                                                |   |   |   |
| Interest paid                                        |   |                                               | –  |   |                                                                |   | – |   |
| Income tax paid                                      |   |                                               | –  |   |                                                                |   | – |   |
|                                                 |   |                                               |     |   |                                                                |   |   |   |
| Non-cash investing and financing activities:         |   |                                               |     |   |                                                                |   |   |   |
| Issuance of common shares to settle loan payable     |   |                                               | 42,500   |   |                                                                |   | – |   |
| Issuance of common shares for financing fees         |   |                                               | 250,000  |   |                                                                |   | – |   |
| Issuance of common shares to settle convertible debt |   |                                               | 83,447   |   |                                                                |   | – |   |

----

Notes to the Consolidated Financial Statements

| 1. | Nature of Operations and Continuance of Business |
|----|--------------------------------------------------|

| 2. | Significant Accounting Policies |
|----|---------------------------------|

| (a)  | Basis of Presentation and Principles of Consolidation |
|-----------|-------------------------------------------------------|

| (b)  | Use of Estimates |
|-----------|------------------|

|   | The preparation of these consolidated financial statements in conformity with generally accepted accounting principles in the United States 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the useful life and recoverability of long-lived assets, fair value on share-based payments, and valuation allowances on deferred income tax losses. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2. | Significant Accounting Policies (continued) |
|----|---------------------------------------------|

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

| (d)   | Interim Financial Statements |
|-----------------|------------------------------|

| (e)   | Website Development Costs |
|-----------------|---------------------------|

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

| (g)   | Impairment of Long-Lived Assets |
|-----------------|---------------------------------|

| (h)   | Revenue Recognition |
|-----------------|---------------------|

| (i)   | Income Taxes |
|-----------------|--------------|

----

| 2. | Significant Accounting Policies (continued) |
|----|---------------------------------------------|

| (j)   | Comprehensive Loss |
|-----------------|--------------------|

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

| (l)   | Foreign Currency Translation |
|-----------------|------------------------------|

| (m)   | Basic and Diluted Net Loss Per Share |
|-----------------|--------------------------------------|

| (n)   | Financial Instruments and Fair Value Measures |
|-----------------|-----------------------------------------------|

----

| 2. | Significant Accounting Policies (continued) |
|----|---------------------------------------------|

| (o)   | Recent Accounting Pronouncements |
|-----------------|----------------------------------|

----

| 2. | Significant Accounting Policies (continued) |
|----|---------------------------------------------|

| (o)   | Recent Accounting Pronouncements (continued) |
|-----------------|----------------------------------------------|

| 3. | Acquisition of Urban Barns Foods Inc. |
|----|---------------------------------------|

|                                                   |   |   | $        |   |
|--------------------------------------------------------|--------|--------|----------|--------|
| Fair value of Urban Barns net assets                   |   |   |     |   |
|                                                   |   |   |     |   |
| Cash and cash equivalents                              |   |   | 86,401   |   |
| Deposit                                                |   |   | 175      |   |
| Property and equipment                                 |   |   | 19,243   |   |
| Accounts payable                                       |   |   | (31,394  | )      |
| Convertible Debentures                                 |   |   | (108,813 | )      |
|                                                   |   |   |     |   |
| Excess purchase price                                  |   |   | (34,388  | )      |
| Fair value of common shares issued (25,000,000 shares) |   |   | 34,388   |   |
|                                                   |   |   | –  |   |

----

| 4. | CapitalAssets |
|----|---------------|

|                      |   | Cost$  |   |   | AccumulatedAmortization$ |   |   | April 30, 2010Net CarryingValue$ |   |   | July 31, 2009Net CarryingValue$ |   |
|---------------------------|--------|--------|--------|--------|--------------------------|--------|--------|----------------------------------|--------|--------|---------------------------------|--------|
| Equipment                 |   |   | 15,408 |   |                     |   | 1,024  |                             |   |   | 14,384                          |   |   |   | – |   |
| Website Development Costs |   |   | 7,161  |   |                     |   | 608    |                             |   |   | 6,553                           |   |   |   | – |   |
|                      |   |   |   |   |                     |   |   |                             |   |   |                            |   |   |   |   |   |
|                      |   |   | 22,569 |   |                     |   | 1,632  |                             |   |   | 20,937                          |   |   |   | – |   |

| 5. | Convertible Debentures |
|----|------------------------|

| a)   | In September 2009, the Company issued $59,000 of convertible debentures due interest at 12% per annum, secured by the Company’s assets, due in three years from the date of issuance, and convertible into common shares of the Company at the option of the note holder at a conversion rate of $1.00 per common share.  Furthermore, the convertible debentures includes the issuance of 59,000 share purchase warrants, where each warrant allows the warrant holder to purchase one additional common share of the Company at $1.50 per common share for a period of two years from the date of issuance.  In accordance with ASC 470, Debt – Debt with Conversions and Other Options, the Company determined that the multiple financial instruments issued in the convertible promissory notes resulted in an allocation of the fair value between the convertible note and the share purchase warrants which resulted in a discount on the convertible notes of $12,260 that was recorded against the note payable and a corresponding credit to additional paid-in capital.  As at April 30, 2010, the convertible debentures have been converted into common shares. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | On October 30, 2009, the Company issued $12,500 of convertible debentures due interest at 12% per annum, secured by the Company’s assets, due in three years from the date of issuance, and convertible into common shares of the Company at the option of the note holder at a conversion rate of $1.00 per common share.  Furthermore, the convertible debentures includes the issuance of 59,000 share purchase warrants, where each warrant allows the warrant holder to purchase one additional common share of the Company at $1.50 per common share for a period of two years from the date of issuance.  In accordance with ASC 470, Debt – Debt with Conversions and Other Options, the Company determined that the multiple financial instruments issued in the convertible promissory notes resulted in an allocation of the fair value between the convertible note and the share purchase warrants which resulted in a discount on the convertible notes of $2,598 that was recorded against the note payable and a corresponding credit to additional paid-in capital.  As at April 30, 2010, the convertible debentures have been converted into common shares. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6. | Common Shares |
|----|---------------|

| a)  | On August 14, 2009, the Company issued 600,000 common shares for proceeds of $2,774. |
|----------|--------------------------------------------------------------------------------------|

| b)  | On December 4, 2009, the Company executed a share exchange agreement whereby the Company acquired 43,400,000 of the issued and outstanding common shares of Urban Barns.  As part of the share exchange agreement, the Company issued 25,000,000 common shares of the Company to shareholders of Urban Barns and cancelled 20,500,000 common shares that were previously issued to the former President and Director of the Company. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)  | On December 17, 2009, the Company issued 50,000 units at $0.85 per unit to settle outstanding loans payable of $42,500.  Each unit is comprised of one common share of the Company and one share purchase warrant to purchase one additional common share at $1.25 per share for a period of two years from the date of issuance. |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 6. | Common Shares (continued) |
|----|---------------------------|

| d)  | On January 14, 2010, the Company issued 59,573 common shares to settle outstanding convertible debentures. |
|----------|------------------------------------------------------------------------------------------------------------|

| e)  | On February 10, 2010, the Company issued 250,000 units at $0.80 per unit for proceeds of $200,000.  Each unit is comprised of one common share of the Company and one share purchase warrant to purchase one additional common share at $1.08 per share for a period of two years from the date of issuance. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)  | On March 26, 2010, the Company issued 74,607 common shares to settle outstanding convertible debentures. |
|----------|----------------------------------------------------------------------------------------------------------|

| g)  | On April 13, 2010, the Company issued 1,470,588 shares at $0.17 per share for payment of financing fees of $250,000 for a private placement that has not been finalized as at April 30, 2010. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7. | Share Purchase Warrants |
|----|-------------------------|

|                                |   | Number of Warrants |    |   | Weighted Average Exercise Price$ |   |
|-------------------------------------|--------|--------------------|---------|--------|----------------------------------|--------|
|                           |   |               |    |   |                             |   |
| Balance, July 31, 2009              |   |               | – |   |                             |   | – |   |
|                                |   |               |    |   |                             |   |   |   |
| Issued                              |   |               | 371,500 |   |                             |   | 1.18 |   |
|                                |   |               |    |   |                             |   |   |   |
| Balance, April 30, 2010 (unaudited) |   |               | 371,500 |   |                             |   | 1.18 |   |

| Number of Warrants | Exercise Price$ | 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            |            |              |

| 8.  | Related Party Transactions |
|----------|----------------------------|

----

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

| Balance Sheet Data:    |   | April 30, 2010 |    |
|------------------------|--------|----------------|---------|
| Cash                   |   | $              | 144,787 |   |
| Property and Equipment |   | $              | 14,384  |   |
| Website                |   | $              | 6,553   |   |
| Total assets           |   | $              | 426,899 |   |
| Total liabilities      |   | $              | 87,745  |   |
| Shareholders' equity   |   | $              | 339,154 |   |

----

| 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 3.  CONTROLS AND PROCEDURES.

----

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

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

| ●   | On January 14, 2010 we converted $50,637.50 worth of convertible debentures into shares of our common stock for an aggregate of 59,573 shares.   The former debenture holders continue to own Warrants which represent the right to purchase from the Company up to 49,000 shares of common stock at the purchase price of $1.50 per share exercisable at any time until April 30, 2011.   These securities were issued pursuant to exemptions from prospectus requirements under Regulation S of the Securities Act of 1933, as amended. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | On February 10, 2010 we issued 250,000 units at $0.80 per unit for gross proceeds of $200,000 to one non-US investor.  Each unit consists of one share of our common stock and a warrant to purchase an additional share of our common stock at $1.08 per share for a period of twelve months or at $1.25 per share for a period of twenty four months.  These securities were issued pursuant to exemptions from prospectus requirements under Regulation S of the Securities Act of 1933, as amended. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ●   | On March 26, 2010 we converted $23,874.42 worth of convertible debentures into shares of our common stock for an aggregate of 74,607 shares.   The former debenture holders continue to own Warrants which represent the right to purchase from the Company up to 22,500 shares of common stock at the purchase price of $1.50 per share exercisable at any time until April 30, 2011.   These securities were issued pursuant to exemptions from prospectus requirements under Regulation S of the Securities Act of 1933, as amended. |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

ITEM 4.  REMOVED

ITEM 5.  OTHER INFORMATION

ITEM 6.  EXHIBITS

| Exhibit No. | Description                                                 |
|-------------|-------------------------------------------------------------|
| 10.1        | Preferred Stock Purchase Agreement dated April 13, 2010 (1) |
| 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       |

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| June 21, 2010  |   | Urban Barns Foods Inc.                                                 |
|---------------------|--------|------------------------------------------------------------------------|
|                | By:    |                                                                   |
|                |   | /s/ Jacob Benne                                                        |
|                |   | Jacob Benne                                                            |
|                |   | (Chief Executive Officer, President, & Director)                   |
|                |   |                                                                   |
|                | By:    |                                                                   |
|                |   | /s/ Daniel Meikleham                                                   |
|                |   | Daniel Meikleham                                                       |
|                |   | (Chief Financial Officer, Principal Accounting Officer & Director) |