UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-Q   QUARTERLY REPORTUNDERSECTION 13 OR15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2010  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from ______ to _______  Commission File Number 000-53337  FERO INDUSTRIES INC. (Name of small business issuer in its charter)  Colorado01-0884561(State of incorporation)(I.R.S. Employer Identification No.)  254-16 Midlake Boulevard SE Calgary Alberta, Canada T2X 2X7 (Address of principal executive offices)  (403) 827-7936 (Registrant’s telephone number)  with a copy to: Carrillo Huettel, LLP 3033 Fifth Ave. Suite 201 San Diego, CA 92103 Telephone (619) 399-3090 Facsimile (619) 399-0120  Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes      No  Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes     No (Not required)  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.  Large Accelerated Filer
Accelerated FilerNon-Accelerated Filer
Smaller Reporting Company  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes  No  As of December 10, 2010, there were 133,350,000shares of the registrant’s $.001 par value common stock issued and outstanding.                           FERO INDUSTRIES, INC.  TABLE OF CONTENTS


|                                             |                                                                                       | 
|-------------------------------------------- | ------------------------------------------------------------------------------------- | 
|                                             |                                                                                       | 
|                                             | Page                                                                                 
|                                             |                                                                                      
|PART I.                FINANCIAL INFORMATION |                                                                                      
|                                             |                                                                                      
|ITEM 1.                                      | FINANCIAL STATEMENTS                                                                  | 
|ITEM 2.                                      | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 
|ITEM 3.                                      | QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK                            | 
|ITEM 4.                                      | CONTROLS AND PROCEDURES                                                               | 
|                                             |                                                                                      
|PART II.               OTHER INFORMATION     |                                                                                      
|                                             |                                                                                      
|ITEM 1.                                      | LEGAL PROCEEDINGS                                                                     | 
|ITEM 1A.                                     | RISK FACTORS                                                                          | 
|ITEM 2.                                      | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                           | 
|ITEM 3.                                      | DEFAULTS UPON SENIOR SECURITIES                                                       | 
|ITEM 4.                                      | [REMOVED AND RESERVED]                                                                | 
|ITEM 5.                                      | OTHER INFORMATION                                                                     | 
|ITEM 6.                                      | EXHIBITS                                                                              | 
|                                             |                                                                                      

Special Note Regarding Forward-Looking Statements  Information included in this Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). This information may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fero Industries, Inc. (the “Company”), to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future.  *Please note that throughout this Quarterly Report, and unless otherwise noted, the words "we," "our," "us," the "Company," or "FROI" refers to Fero Industries, Inc.  PART I: FINANCIAL INFORMATION  ITEM 1. FINANCIAL STATEMENTS        FERO INDUSTRIES, INC. (A Development Stage Company) FINANCIAL STATEMENTS  FOR THE PERIOD ENDED SEPTEMBER 30, 2010   F-1. Balance Sheets (unaudited)  F-2. Statements of Operations (unaudited)  F-3. Statements of Cash Flows (unaudited)  F-4. Notes to the Financial Statements (unaudited)                                  FERO INDUSTRIES, INC. (A Development Stage Company) FINANCIAL STATEMENTS  FOR THE PERIOD ENDED SEPTEMBER 30, 2010 Balance Sheets (unaudited)   (UNAUDITED)September 30,June 30,20102010ASSETSCurrent Assets:Cash$                             -$                             -Prepaid expenses28,000Total Current Assets-$                             -Total Assets$                     28,000$                             -LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)Current Liabilities:Accounts payable$                     19,265$                       6,150Advances from shareholder64,31236,255Promissory note payable250,000250,000Total liabilties333,577292,405Stockholders' Equity (Deficit):Preferred stock, $.001 par value; authorized 10,000,000, none issued--Common stock, $.001 par value; 500,000,000 shares authorized132,750,000 shares issued and outstanding at September 30, 2010;127,500,000 shares issued and oustanding at June 30, 2010132,750127,500Additional paid in capital113,850(90,900)Deficit accumulated in development stage(552,177)(329,005)Total Stockholders' Equity (Deficit)(305,577)(292,405)Total Liabilities and Stockholders' Equity (Deficit)$                     28,000$                             -       F-1 FERO INDUSTRIES, INC. (A Development Stage Company) FINANCIAL STATEMENTS  FOR THE PERIOD ENDED SEPTEMBER 30, 2010 Statements of Operations (unaudited)  FromDecember 11,2000For theFor the(Date ofthree monthsthree monthsinception)endedendedtoSeptember 30,September 30,September 30,201020092010Revenue:$                          -$                          -$                            -Total Revenue---Operating Expenses:General & administrative13,17212,40592,177Professional fees210,000-210,000Impairment of bioceutical assets--250,000Total Operating Expenses223,17212,405552,177NET LOSS$                 (223,172)$                   (12,405)$                 (552,177)Weighted Average SharesCommon Stock Outstanding127,966,667127,500,000Net Loss Per  Share(Basic and Fully Diluted)$                          -$                          -          F-2     FERO INDUSTRIES, INC. (A Development Stage Company) FINANCIAL STATEMENTS  FOR THE PERIOD ENDED SEPTEMBER 30, 2010 Statements of Cash Flows (unaudited)


|                                                      |                                |                                |                               
|----------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------
|                                                      |                                |                                | From                          
|                                                      |                                |                                | December 11,                  
|                                                      |                                |                                | 2000                          
|                                                      | For the                        | For the                        | (Date of                      
|                                                      | three months                   | three months                   | inception)                    
|                                                      | ended                          | ended                          | to                            
|                                                      | September 30,                  | September 30,                  | September 30,                 
|                                                      | 2010                           | 2009                           | 2010                          
|Cash Flows Used in Operating Activities:              |                                |                                |                               
|Net Loss                                              | $                 (223,172)    | $                   (12,405)   | $                 (552,177)   
|Adjustments to reconcile net (loss) to net cash       |                                |                                |                               
|provided by operating activites:                      |                                |                                |                               
|Impairment of bioceutical assets                      |                                |                                | 250,000                       
|Issuance of stock for services rendered               | 210,000                        | -                              | 211,600                       
|Increase in accounts payable                          | 13,172                         | 12,405                         | 19,322                        
|Increase in prepaid expenses                          | (28,000)                       | -                              | (28,000)                      
|                                                      |                                |                                |                               
|Net Cash Used in Operating Activities                 | (28,000)                       | -                              | (99,255)                      
|                                                      |                                |                                |                               
|Cash Flows from Investing Activities:                 | -                              | -                              | -                             
|                                                      |                                |                                |                               
|Cash Flows from Financing Activities:                 |                                |                                |                               
|Issuance of common stock for cash                     | -                              | -                              | 35,000                        
|Advances from shareholder                             | 28,000                         | -                              | 64,255                        
|                                                      |                                |                                |                               
|Net Cash Provided by Financing Activities             | 28,000                         | -                              | 99,255                        
|                                                      |                                |                                |                               
|Net Increase (Decrease) in Cash                       | -                              | -                              | -                             
|                                                      |                                |                                |                               
|Cash at Beginning of Year                             | -                              | -                              | -                             
|                                                      |                                |                                |                               
|Cash at End of Year                                   | $                            - | $                            - | $                            -
|                                                      |                                |                                |                               
|Non-Cash Investing & Financing Activities             |                                |                                |                               
|Issuance of stock for management services rendered    | $                            - | $                            - | $                      1,600  
|Acquisition of bioceutical assets for promisorry note |                                |                                | 250,000                       
|                                                      |                                |                                |                               

F-3  FERO INDUSTRIES INC. (A Development Stage Company) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION NATURE OF OPERATIONS Fero Industries, Inc. (the “Company”) was incorporated under the laws of the State of Colorado on December 11, 2000.  The Company’s activities to date have been limited to organization and capital formation.  The Company is a “development stage company”. BASIS OF PRESENTATION These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in US dollars. The accompanying unaudited financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation of the results for the interim periods have been made and are of a normal, recurring nature. Operating results for the three months ended September 30, 2010 are not necessarily indicative of the results that may be expected for any interim period or the entire year. For further information, these financial statements and the related notes should be read in conjunction with the Company’s audited financial statements for the year ended June 30, 2010 included in the Company’s report on Form 10-K.  NOTE 2 – NATURE OF SIGNIFICANT ACCOUNTING POLICIES CASH AND CASH EQUIVALENTS The Company considers all highly liquid debt instruments purchased with maturity of three months or less to be cash equivalents. REVENUE RECOGNITION The Company recognizes revenue at the time services are performed. USE OF ESTIMATES The preparation of the Company’s financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from these estimates. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s short-term financial instruments consist of cash and cash equivalents and accounts payable.  The carrying amounts of these financial instruments approximate fair value because of their short-term maturities.  The Company does not hold or issue financial instruments for trading purposes nor does it hold or issue interest rate or leveraged derivative financial instruments. F-4   FERO INDUSTRIES INC. (A Development Stage Company) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  EARNINGS PER SHARE Basic Earnings per Share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year.  Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants.  Basic and diluted EPS are the same for the Company, as of September 30, 2010, as the Company does not have any common share equivalents outstanding. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s short-term financial instruments consist of cash and cash equivalents and accounts payable.  The carrying amounts of these financial instruments approximate fair value because of their short-term maturities.  The Company does not hold or issue financial instruments for trading purposes nor does it hold or issue interest rate or leveraged derivative financial instruments. EARNINGS PER SHARE Basic Earnings per Share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year.  Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants.  Basic and diluted EPS are the same for the Company, as of September 30, 2010, as the Company does not have any common share equivalents outstanding. INCOME TAXES The Company uses the asset and liability method of accounting, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of certain assets and liabilities.  Deferred income tax assets and liabilities are computed annually for the difference between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.  Income tax expense is the tax payable or refundable for the period, plus or minus the change during the period in deferred tax assets and liabilities. Deferred income taxes may arise from temporary differences resulting from income and expanse items reported for financial accounting and tax purposes in different periods.  Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate.  Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.  As of September 30, 2010, the Company has recorded a valuation allowance to fully offset the deferred tax asset of approximately $116,000 related to its cumulative net operating losses of $342,177.  F-5  FERO INDUSTRIES INC. (A Development Stage Company) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  CONCENTRATION OF CREDIT RISK  Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash.  During the year the Company did not maintain cash deposits at financial institution in excess of the $100,000 limit covered by the Federal Deposit Insurance Corporation. RECENT ACCOUNTING PRONOUNCEMENTS The Company does not expect that the adoption of recent accounting pronouncements will have a material impact on its financial statements. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned and majority owned subsidiaries, including businesses acquired since their respective dates of acquisition.  All intercompany transactions and balances have been eliminated. NOTE 3 – ACQUISITION OF DOMAIN NAMES AND DEPOSITS On April 20, 2007, the Company entered into an asset purchase and sale agreement with Mr. Jerry Capehart of Grand Prairie, Texas whereby he sold to us a 100% undivided right title and interest in seventeen internet domain names for a total purchase price of $180,000. Terms of the purchase are as follows: $5,000 to Mr. Capehart and 12,500,000 shares of our common stock as a non-refundable deposit (recorded as Deposits on the Balance Sheet) and an additional $75,000 on or before June 30, 2008.  All domain names are fully valid and registered and ready for construction. The Company did not execute this contract by the closing date of June 30, 2010.  As such, the Company has not recorded the liability or corresponding asset related to this sale agreement in its financial statements. NOTE 4– ACQUISITION OF SUCANON On May 23, 2010, Fero Industries, Inc., a Colorado corporation, (the "Company") entered that certain Asset Acquisition Agreement (the "Agreement") with Gvest, Inc., (“Gvest”) an Ontario, Canada corporation.  Pursuant to the terms and conditions of the Agreement, the Company acquired certain assets directly related to the manufacturing, sale and distribution of that certain product known as Sucanon, which is an herbal remedy for Type II Diabetes. The acquired assets include all of the intellectual property rights, training, and “know how” to manufacture and produce Sucanon, including sources and suppliers of Sucanon ingredients and mixing equipment; certain associated trademarks and patents ("Acquired Assets"). The Acquired Assets include the exclusive world-wide rights to manufacture, sell and distribute Sucanon. The Company purchased the Acquired Assets for an aggregate purchase price of $250,000. The Agreement contained customary representations and warranties and pre- and post-closing covenants of each party and customary closing conditions. Breaches of the representations and warranties were subject to customary indemnification provisions, subject to specified aggregate limits of liability. This transaction closed on July 7, 2010.  F-6  FERO INDUSTRIES INC. (A Development Stage Company) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  NOTE 5 – COMMON STOCK On December 11, 2000 the Company issued 15,00,000 shares of its common stock to its President and Chief Executive Officer, Kyle Schlosser at a deemed price of  $0.001 per share or $600 in return for his time effort and expense of forming the company and keeping it in good standing. On December 28, 2006 the Company issued 12,500,000 shares of our common stock to our Secretary/Treasurer and Chief Financial Officer, Leigh-Ann Squire at a deemed price of $0.001 per share or $500 in return for her agreement to join our Board of Directors, become an officer of the registrant and his agreement to provide the computer and internet expertise in constructing our websites and providing the server for operation of the sites, at no charge. As referred to in Note 4 above, on April 20, 2007 the Company issued 12,500,000 shares of our common stock to Mr. Jerry Capehart of Grand Prairie, Texas at a deemed price of $0.001 per share, or $500, as a good faith deposit for seventeen domain names relating to the oil and gas industry. On April 30, 2007 the Company issued 77,500,000 shares of our common stock to thirty-one non US persons at a price of $0.01 per share. On May 10, 2007 the Company issued 10,000,000 shares of our common stock to three US individuals (one representing a Grandchildren’s Trust), at a price of $0.01 per share. On November 18, 2008 the Board of Directors of the registrant passed unanimously a resolution authorizing a forward split of the authorized and issued and outstanding common shares on a three to one (5 – 1) basis bringing the total common shares issued and outstanding to 25,500,000.  The forward split has been retroactively recorded in the financial statements of the Company as if the forward split had occurred at the inception of the Company and the authorized common shares have increased to 500,000,000.  On April 15, 2010 the Board of Directors of Fero Industries (the Registrant) passed a resolution declaring a stock dividend of four (4) shares of common stock for each share held, of record as of April 20, 2010. The common shares of the Registrant will be considered Ex Dividend on April 21, 2010.  This brings the total issued and outstanding common shares to 127,500,000. All share references in these financial statements have been retroactively adjusted for this stock dividend.  On September 22, 2010, the Company issued 5,250,000 shares of stock for legal and consulting services, valued at $.04 per share, which was the closing price of the stock on that date.  NOTE 6- ADVANCES  As of September 30, 2010 and June 30, 2010, the Company has received advances from a shareholder in the amount of $64,312 and $36,255, respectively. These advances are non-interest bearing, unsecured, and have no fixed terms of repayment.  F-7  FERO INDUSTRIES INC. (A Development Stage Company) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  NOTE 7- PROMISSORY NOTE  On June 24, 2010, we issued a Two Hundred Fifty Thousand Dollars ($250,000) Promissory Note (the “Note”) in favor of Mr. Peter Hogendoorn (the “Lender”). The Note contains standard representations, and warranties and affirmative and negative covenants, and is described in greater detail below. The Note memorializes a loan made by the Lender to the Company, in order for the Company to close that certain Asset Acquisition Agreement with Gvest. The Note accrues simple interest at a rate equal to 1% over the average Canadian Prime Rate and is due 30 days from the date executed, or thereafter by mutual agreement of the parties hereto, the principal and all accrued interest thereon shall be due and payable within ten (10) days of written demand by Holder. Additionally, the Note may be repaid in whole or in part by the Company without penalty or premium at any time and from time to time prior to the Maturity Date.  NOTE 8– GOING CONCERN The accompanying financial statements have been prepared assuming the Company will continue as a going concern.  As shown in the accompanying financial statements, the Company has no sales and has incurred a net loss of $552,177 since inception.  The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its mineral properties.  Management has plans to seek additional capital through a private placement and public offering of its common stock.  The financial statements do not include any adjustments relating to the recoverability and classifications of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. NOTE 9-SUBSEQUENT EVENTS On October 1, 2010, the Company issued 600,000 shares for consulting services, valued at $.04 per share.  On October 4, 2010 the Company received advances from shareholders totalling $9,980. The advances are non interest bearing, unsecured, and there are no fixed terms of repayment. The Company has evaluated subsequent events through December 13, 2010.                F-8     ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION FORWARD-LOOKING STATEMENTS This Management's Discussion and Analysis or Plan of Operation (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, or implied, by those forward-looking statements.  You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms.  These statements are only predictions. In evaluating these statements, you should specifically consider various factors, including the risk factors outlined below.  These factors may cause our actual results to differ materially from any forward-looking statements.  Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements.  We undertake no obligation to revise or update publicly any forward-looking statements for any reason. On May 23, 2010, Fero Industries, Inc., a Colorado corporation, (the "Company") entered that certain Asset Acquisition Agreement (the "Agreement") with Gvest, Inc., (“Gvest”) an Ontario, Canada corporation.  Pursuant to the terms and conditions of the Agreement, the Company acquired certain assets directly related to the manufacturing, sale and distribution of that certain product known as Sucanon, which is an herbal remedy for Type II Diabetes.  The acquired assets include all of the intellectual property rights, training, and “know how” to manufacture and produce Sucanon, including sources and suppliers of Sucanon ingredients and mixing equipment; certain associated trademarks and patents ("Acquired Assets"). The Acquired Assets include the exclusive world-wide rights to manufacture, sell and distribute Sucanon. The Company purchased the Acquired Assets for an aggregate purchase price of $250,000. The Agreement contained customary representations and warranties and pre- and post-closing covenants of each party and customary closing conditions. Breaches of the representations and warranties were subject to customary indemnification provisions, subject to specified aggregate limits of liability.  On June 29, 2010, the Company and Gvest determined that all closing conditions had been met and that the transaction should therefore close based on the terms and conditions thereof. On July 1, 2010, the Company received such documents necessary to conduct complete and full due diligence relating to the Acquired Assets.  On July 7, 2010, the Company determined, based on a full review and the completion of due diligence related to the Acquired Assets, the Company has determined that the Acquired Assets will allow the Company to move forward with its new business plan to make, manufacture and distribute Sucanon world-wide.            Overview Fero’s mission is to acquire healthcare related companies, products, and technologies that have large market potential, improve the quality of care, or have unmet needs. Fero is focused on the medical device, biotechnology, pharmaceutical, nutraceutical, and healthcare IT industries. Fero's mission is to create and enhance shareholder value via a growth-by-acquisition strategy by acquiring synergistic companies, products, and technologies that have large market potential, improve the quality of care, or have unmet needs. Fero’s initial focus is on diabetes. The Company has acquired the intellectual property and other exclusive world-wide rights related to the production, marketing, and distribution of Sucanon also known as Diab II, a treatment for Type II diabetes.  Sucanon is approved and is sold as an Over-The-Counter ("OTC") herbal remedy for Type II diabetes in Mexico and as a prescription pharmaceutical in Peru. Sucanon has also undergone clinical trials in China and Brazil. Application for United States Food and Drug Administration (“FDA”) approval of Sucanon has not been made. As such, it is not offered for sale nor approved for sale in the United States at this time. The Company will consider applying for FDA approval in the near future.  Current Product Sucanon is one of only several drugs in the world, belonging to a class of diabetic medications called insulin sensitizers.  Insulin sensitizers lower blood sugar by increasing the muscle, fat and liver’s sensitivity to insulin.  Insulin sensitizers are blood sugar normalizing or euglycemic drugs that help return the blood sugar to the normal range without the risk of low blood sugars.  [fero930201010qx001.jpg]1.
Insulin binding to receptors and entering the cell, (which is impeded in NIDDM patients), is essential for the uptake of glucose;
2.
Sucanon increases the binding of insulin to its receptors;3.     Sucanon increases the internalization of insulin; and,
4.     As a result, Sucanon increases the intracellular level of insulin, which then increases the uptake of glucose.      Sucanon is a medication that helps the body make better use of its own insulin, the hormone that controls blood sugar levels.  Type II Diabetics produce insulin, but their cells gradually lose the ability to absorb and use insulin to get sugar out of the blood stream.  Sucanon transports sugar out of the blood stream and into cells where it can be burned.  Sucanon particularly helps muscle cells use insulin and thus draws sugar out of the blood stream.  Sucanon increases sensitivity to insulin which leads to decreased blood sugar levels and a reduction of a wide range of Type II Diabetes symptoms, including: weight gain, fatigue, excess thirst and excess urination. The reduction in blood sugar levels also reduces the possibility of peripheral nerve damage; this damage caused to peripheral nerves by chronic high blood sugar can ultimately lead to impotence in men and amputation of limbs in both men and women.  Sucanon is an herbal medication. It is derived from the combination of the dried root of tricosanthis and molybdenum, a light metal.Sucanon’s chemical name is manitolatodimolybdate.  Clinical Trial Summary: Clinical trials on Sucanon were performed in China.  After submission of a New Drug Application ("NDA") Sucanon was approved by the State Food and Drug Administration (SFDA) of China.  Subsequent clinical trials were also performed on Sucanon in Brazil, yet the trials have not yet been completed.  Sucanon clinical trials (seeClinical Results for more detailed information on trial results) were shown to reduce the problems and symptoms of Type II Diabetes: High blood sugar:  Clinical studies have shown that Sucanon reduces blood sugar readings by about 25% - 30% and brings high blood sugar back into the normal range (non-fasting blood sugar  is above 200 mg/dL (milligrams per deciliter) or fasting blood sugar is above 126 mg/dL).  Fatigue:  Clinical studies have shown that Sucanon reduces fatigue.  Fatigue is a frequent symptom of Type II Diabetes or a pre-diabetic condition called Impaired Glucose Tolerance. Weight gain:  Clinical studies have shown that people who have taken Sucanon report weight loss along with increased energy. Very often, people who are diabetic or pre-diabetic gain weight because their insulin-resistance leads to sugar being converted into fat instead of being burned to produce energy. Excess thirst and urination:  Clinical studies have shown that Sucanon reduces excess thirst and excess urination. Higher-than-normal levels of blood sugar instigate thirst, which in turn leads to increased frequency of urination. High cholesterol and triglyceride levels:  Clinical studies have shown that Sucanon reduces the levels of cholesterol and triglycerides. People who are diabetic or pre-diabetic often have elevated cholesterol and triglyceride levels.  Elevated cholesterol and triglycerides significantly increase the risk of heart disease. Side effects: Clinical studies have shown that Sucanon showed no side effects.  This setsSucanon apart from many other anti-diabetic products, which can have effects on digestion, the liver, or the heart. Toxicity: Clinical studies have shown that Sucanon toxicity was undistinguishable from theplacebo.  In addition, Sucanon showed no carcinogenicity, mutagenicity, and teratogenicity in mice.      Clinical Results Clinical Experience  The clinical benefits of Sucanon were convincingly demonstrated in a double-blind, randomized, placebo- & Glibenclamide-controlled, multi-center, efficacy and safety study in 370 adult patients with Type II diabetes. Sucanon was administered as tablets, one in the morning and one in the evening. The duration of the study was 6 months: four months treatment, preceded by one month screening evaluation, and followed by one month post-treatment follow-up. Glibenclamide is a commonly prescribed sulfonylurea; its benefits and limitations have been well known to diabetologists for over a decade. The parameters of response to therapy included an evaluation of the changes in clinical signs and symptoms of diabetes, an alteration in the blood and urine measurements of glucose metabolism, and an alteration in blood lipid levels.  The results indicated that the parameters of disease activity in patients receiving either Glibenclamide or Sucanon responded in a highly relevant clinical manner and that the differences from baseline measurements were statistically highly significant (p values <0.01). The lack of response in the group of patients who were randomized to receive placebo was also unequivocal, where the effect of administration was clinically small or non-existent, and the baseline to treatment difference was statistically insignificant (p value >0.05). An extract of the data is summarized in the following graphs and tables.  Table 1 Changes in glucose abnormalities in 370 Type II diabetic patients in 3 treatment groups of the randomized, double-blind, controlled study (before treatment and at the end of treatment analyses)  [fero930201010qx003.gif] Table 2 Results from table 1 expressed as “Percent Improvement” (baseline to end of treatment)  [fero930201010qx005.gif]  Response to therapy was documented not only by a loss of, or a reduction in, disease related symptoms which included polyuria, polvdipsia, polyphagia, and fatigue, but also by the improvement in objective parameters of disease, namely, a reduction to normal or near normal levels in the elevated fasting blood glucose, and urinary sugar, and a normalization of the 100 g - oral glucose tolerance test. The objective results are given in table 1 above where the mean and standard deviations for these Values are listed, as well as the calculated "t" and “p" values. Given that the coefficient of variance of baseline values for the three treatment groups is small, and the patient number per group relatively large (n = 123), a between treatment group comparison is not unreasonable. These calculations (not shown) reveal that the improvements associated with therapy for both the Glibenclamide group of patients and the Sucanon group of patients were both better than placebo for all objective parameters measured to a level that was statistically significant (p Values <0.05 to <0.01 respectively. This was not surprising from the t values listed in table 1. The difference in reduction of fasting blood glucose between the latter treatment groups was not statistically significant (p value >.0.05).  Table 3 Sucanon associated improvements in blood lipid levels  [fero930201010qx007.gif] Pre-clinical pharmacology  Pre-clinical in vivo and in vitro studies have identified that intravenous and oral Sucanon is pharmacodynamically active in diabetic rats, and out-performed all biguanides and sulfonylureas tested in those models. When added to rat muscle cells, its critical influence commences in seconds as it up-regulates insulin receptors, in a manner not yet understood, with the resultant increase in insulin endocytosis, uptake of glucose, and L-leucine effects, all of which last more than an hour.  In single-dose rat studies, peak response in lowering blood glucose takes 2 to 4 hours to occur, and the effect is lost by about 10 hours. Multiple oral dosing in rats (48 days) and up to 4 months in man, shows no loss of activity. Clear-cut pharmacological dose-response features were documented. Sucanon is also superior to other hypoglycemic agents in these models.  Toxicity   The therapeutic index is so large (10,000 in mice) that its margin of safety must be unique in the armamentarium of drugs for the treatment of diabetes. Carcinogenicity, mutagenicity, and teratogenicity toxicities were not found in mice. Chronic dosing in dogs and rats at 2000 times the therapeutic dose was free of any toxicity.  Sucanon Regulatory Approvals: Sucanon has been approved for prescription sale in Peru and has been approved as an over-the-counter (non-prescription) product in Mexico. Application for United States FDA regulatory approval has not yet been made.  Thus, doctors cannot prescribe nor purchase Sucanon in the United States. However, Type II diabetics can buy Sucanon for their own use and have it delivered to them from Mexico under the U.S. FDA’s “personal importation” guidelines. A similar program exists for Type II diabetics in Canada who wish to buy Sucanon for their own use. Results of Operations  We are an development stage company and have no revenues to date.  We incurred operating expenses of $223,172 and $12,405 for the three month periods ended September 30, 2010 and 2009, respectively.  The increase of $210,767 is a result of the acquisition of the Sucanon type II diabetes treatment and increase in professional fees and general and administrative expenses over the prior period.  The increase in our operating expenses for the three months ended September 30, 2010 was a result of increased administrative expenses and  the acquisition of the Sucanon type II diabetes treatment  During the three months ended September 30, 2010, we recognized a net loss of $223,172 compared to a net loss of $12,405 for the three months ended September 30, 2010.  The increase was a result of the increase in operational expenses as discussed above.   Liquidity and Capital Resources  At September 30, 2010, we had total assets of $28,000 consisting of cash.  At September 30, 2010, we had total current liabilities of $333,577, consisting of accounts payable of $19,265, advances from shareholder of $64,312, and a promissory note for $250,000.  During the three months ended September 30, 2010, we used cash of $28,000 in operations. During the three months ended September 30, 2010, net losses of $223,172 were adjusted for any non-cash items.  During the three months ended September 30, 2009, net losses of $12,405 were not adjusted for any non-cash items.  During the three months ended September 30, 2010 and 2009, we did not have any cash flows from investment activities.  During the three months ended September 30, 2010, we received $28,000 from our financing activities.  During the three months ended September, 2009, we received $0 from our financing activities  Quarterly Developments  On August 31, 2010, the Company’s Board of Directors appointed Luis Manuel Ornelas Lopez as a member of the Board of Directors by unanimous written consent.  On September 20, 2010, the Company registered on Form S-8, the 2010 Share Incentive Plan, under which the Company is authorized to issue up to twenty million (20,000,000) shares of the Company’s common stock to the Company’s employees, executives and consultants.  Going Concern  We have not attained profitable operations and is dependent upon obtaining financing to pursue any extensive acquisitions and exploration activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.   Future Financings  We will continue to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund planned acquisitions and activities.  Off-Balance Sheet Arrangements  We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.  Recent Accounting Pronouncements  The Company does not expect that the adoption of any recent accounting pronouncements will have a material impact on its financial statements.  Critical Accounting Policies  CASH AND CASH EQUIVALENTS  The Company considers all highly liquid debt instruments purchased with maturity of three months or less to be cash equivalents.  REVENUE RECOGNITION  The Company recognizes revenue at the time services are performed.  USE OF ESTIMATES  The preparation of the Company’s financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from these estimates.  FAIR VALUE OF FINANCIAL INSTRUMENTS  The Company’s short-term financial instruments consist of accounts payable.  The carrying amounts of these financial instruments approximate fair value because of their short-term maturities.  The Company does not hold or issue financial instruments for trading purposes nor does it hold or issue interest rate or leveraged derivative financial instruments.  EARNINGS PER SHARE  Basic Earnings per Share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year.  Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants.  Basic and diluted EPS are the same for the Company, as of September 30, 2010, as the Company does not have any common share equivalents outstanding.  INCOME TAXES  The Company uses the asset and liability method of accounting for income. This method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of certain assets and liabilities.  Deferred income tax assets and liabilities are computed annually for the difference between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.  Income tax expense is the tax payable or refundable for the period, plus or minus the change during the period in deferred tax assets and liabilities.  Deferred income taxes may arise from temporary differences resulting from income and expanse items reported for financial accounting and tax purposes in different periods.  Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate.  Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.  As of September 30, 2010, the Company has recorded a valuation allowance to fully offset the deferred tax asset of approximately $116,000 related to its cumulative net operating losses of $342,177.  CONCENTRATION OF CREDIT RISK  Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash.  During the year the Company did not maintain cash deposits at financial institution in excess of the $100,000 limit covered by the Federal Deposit Insurance Corporation.  ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.    ITEM 4. CONTROLS AND PROCEDURES Disclosure Controls and Procedures Under the supervision and with the participation of our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Exchange Act, as of September 30, 2010. Based on this evaluation, our principal executive officer and principal financial officer concluded as of September 30, 2010, that our disclosure controls and procedures were effective such that the information relating to the Company, including our consolidated subsidiaries, required to be disclosed in our SEC reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (ii) is accumulated and communicated to management, including our principal executive officer/principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.  Management's Report on Internal Control over Financial Reporting  Our management is responsible for establishing and maintaining adequate control over financial reporting (as defined in Rule 13a-15(f) promulgated under the Exchange Act. Our management assessed the effectiveness of our internal control over financial reporting as of September 30, 2010. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control-Integrated Framework. Our management has concluded that, as of September 30, 2010, our internal control over financial reporting is effective based on these criteria.  Changes in Internal Control over Financial Reporting  Our management has also evaluated our internal control over financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of our last evaluation.  The Company is not required by current SEC rules to include, and does not include, an auditor's attestation report. The Company's registered public accounting firm has not attested to Management's reports on the Company's internal control over financial reporting.  PART II - OTHER INFORMATION  ITEM 1. LEGAL PROCEEDINGS.  We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which our director, officer or any affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.  ITEM 1A. RISK FACTORS.  We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.   ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.  1.            Quarterly Issuances:  During the quarter, we did not issue any unregistered securities other than as previously disclosed.  2.            Subsequent Issuances:  Subsequent to the quarter, we did not issue any unregistered securities other than as previously disclosed.  ITEM 3. DEFAULTS UPON SENIOR SECURITIES.  None.  ITEM 4. [REMOVED AND RESERVED]   ITEM 5. OTHER INFORMATION. ITEM 6. EXHIBITS  Exhibit
NumberDescription of ExhibitFiling3.01Articles of IncorporationIncorporated by reference to our Registration Statement Form SB-2 filed with the SEC on October 23, 2007.3.01aAmended Articles of IncorporationFiled with the SEC on July 9, 2010 as part of our Current Report on Form 8-K.3.01bAmended Articles of IncorporationFiled with the SEC on July 9, 2010 as part of our Current Report on Form 8-K.3.02BylawsIncorporated by reference to our Registration Statement Form SB-2 filed with the SEC on October 23, 2007.4.012010 Share Incentive PlanFiled with the SEC on September 20, 2010 as part of our Form S-8.4.02Sample Qualified Stock Option Grant AgreementFiled with the SEC on September 20, 2010 as part of our Form S-8.4.03Sample Non-Qualified Stock Option Grant AgreementFiled with the SEC on September 20, 2010 as part of our Form S-8.4.04Sample Performance-Based Award AgreementFiled with the SEC on September 20, 2010 as part of our Form S-8.10.01Asset Option and Purchase Agreement between Fero Industries, Inc. and Jerry Capehart dated April 22, 2007Incorporated by reference to our Registration Statement Form SB-2 filed with the SEC on October 23, 2007.10.02Interim Agreement Between Fero and PyroFiled with the SEC on December 8, 2008 as part of our Current Report on Form 8-K.10.03Amending Agreement Between Fero and PyroFiled with the SEC on May 19, 2009 as part of our Current Report on Form 8-K.10.04Definitive Share Exchange Agreement Between Fero Industries, Inc. and Pyro Pharmaceuticals, Inc.Filed with the SEC on October 14, 2009 as part of our Amended Current Report on Form 8-K/A.10.05Definitive Asset Purchase Agreement Between Fero Industries, Inc. and Pyro Pharmaceuticals, Inc.Filed with the SEC on December 10, 2009 as part of our Current Report on Form 8-K.10.06Termination of Share Exchange Agreement Between Fero Industries, Inc. and Pyro Pharmaceuticals, Inc.Filed with the SEC on December 10, 2009 as part of our Current Report on Form 8-K.10.07Asset Acquisition Agreement between Fero Industries, Inc and Gvest, Inc.Filed with the SEC on May 28, 2010 as part of our Current Report on Form 8-K.10.08Promissory Note with Peter Hogendoorn executed on June 24, 2010Filed with the SEC on July 1, 2010 as part of our Current Report on Form 8-K.31.01Certification of Principal Executive Officer Pursuant to Rule 13a-14Filed herewith.31.02Certification of Principal Financial Officer Pursuant to Rule 13a-14Filed herewith.32.01Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley ActFiled herewith.32.02Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley ActFiled herewith.  SIGNATURES Pursuant to the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.  FERO INDUSTRIES, INC.Dated: December 13, 2010By:   /s/ Kyle SchlosserKYLE SCHLOSSERChief Executive Officer and PresidentDated: December 130, 2010By: /s/ Leigh-Ann SquireLEIGH-ANN SQUIREChief Financial Officer, Secretary and Treasurer