----

----

| [X]                  | QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934     |
|----------------------|------------------------------------------------------------------------------------------|
|                 | FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2010                                             |
|                 |                                                                                     |
| OR                   |                                                                                     |
|                 |                                                                                     |
| [   ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|   | Large Accelerated Filer                     | [   ] |   | Accelerated Filer         | [  ] |
|--------|---------------------------------------------|----------------------|--------|---------------------------|----------------|
|   | Non-accelerated Filer                       | [   ] |   | Smaller Reporting Company | [X]            |
|   | (Do not check if smaller reporting company) |                 |   |                      |

----

----

----

|                                                                        |                     |
|-----------------------------------------------------------------------------|--------------------------|
| UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS                                 |     Index |
|                                                                        |                     |
| Consolidated Balance Sheets (Unaudited)                                     | F–1                |
| Consolidated Statements of Operations (Unaudited)                           | F–2                |
| Consolidated Statements of Stockholders’ Equity (Deficit) (Unaudited) | F–3                |
| Consolidated Statements of Cash Flows (Unaudited)                           | F–4                |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)                      | F–5                |

----

| Neohydro Technologies Corp. and Subsidiary                                                  |   |
|---------------------------------------------------------------------------------------------|--------|
| (A Development Stage Company)                                                               |   |   |   |   |   |   |   |
| Consolidated Balance Sheets                                                                 |   |   |   |   |   |   |   |
| (Expressed in US Dollars)                                                                   |   |   |   |   |   |   |   |
| (Unaudited)                                                                                 |   |   |   |   |   |   |   |
|                                                                                        |   |   |   |   |   |   |   |
|                                                                                        |   |   |   |   |   |   |   |
|                                                                                        |   |   | June 30, |   |   | December 31, |   |
|                                                                                        |   |   | 2010 |   |   | 2009 |   |
|                                                                                        |   |   |   |   |   |   |   |
| ASSETS                                                                                      |   |
| Current Assets                                                                              |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                                   |   |   | $ | 2,355 |   |   | $ | 39,118 |   |
| Total Assets                                                                                |   |   | $ | 2,355 |   |   | $ | 39,118 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                       |   |
| Current Liabilities                                                                         |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities                                                    |   |   | $ | 58,274 |   |   | $ | 66,074 |   |
| Due to related party (Note 4)                                                               |   |   |   | 77,547 |   |   |   | 25,048 |   |
| Loans payable (Note 5)                                                                      |   |   |   | - |   |   |   | 35,000 |   |
| Convertible notes, less unamortized discount of $nil (December 31, 2009 - $31,893) (Note 6) |   |   | 135,969 |   |   |   | 18,107 |   |
| Derivative liabilities (Note 6)                                                             |   |   |   | 99,417 |   |   |   | 21,607 |   |
| Total current liabilities                                                                   |   |   |   | 371,207 |   |   |   | 165,836 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |
| Commitments                                                                                 |   |   |   | - |   |   |   | - |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |
| Stockholders' Deficit                                                                       |   |   |   |   |   |   |   |   |   |
| Preferred Stock, $0.00001 par value;                                                        |   |   |   |   |   |   |   |   |   |
| authorized 100,000,000 shares, none issued and outstanding                                  |   |   |   | - |   |   |   | - |   |
| Common Stock, $0.00001 par value;                                                           |   |   |   |   |   |   |   |   |   |
| authorized 800,000,000 shares,                                                              |   |   |   |   |   |   |   |   |   |
| 58,990,000 shares issued and outstanding                                                    |   |   |   | 590 |   |   |   | 590 |   |
| Additional paid-in capital                                                                  |   |   |   | 742,910 |   |   |   | 742,910 |   |
| Deficit accumulated during the development stage                                            |   |   |   | (1,112,352 | ) |   |   | (870,218 | ) |
| Total stockholders' deficit                                                                 |   |   |   | (368,852 | ) |   |   | (126,718 | ) |
| Total Liabilities and Stockholders' Deficit                                                 |   |   | $ | 2,355 |   |   | $ | 39,118 |   |

----

| Neohydro Technologies Corp. and Subsidiary       |   |          |       |   |          |   |       |          |   |   |          |   |   |
|--------------------------------------------------|--------|---------------|------------|--------|---------------|--------|------------|---------------|--------|--------|---------------|--------|--------|
| (A Development Stage Company)                    |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |
| Consolidated Statements of Operations            |   |
| (Expressed in US Dollars)                        |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |
| (Unaudited)                                      |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   | Period from |   |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   | November 13, 2007 |   |
|                                             |   | Three months  |       |   | Three months  |   |       | Six months    |   |   | Six months    |   |   | (Date of Inception) |   |
|                                             |   | ended         |       |   | ended         |   |       | ended         |   |   | ended         |   |   | to |   |
|                                             |   | June 30, 2010 |       |   | June 30, 2009 |   |       | June 30, 2010 |   |   | June 30, 2009 |   |   | June 30, 2010 |   |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |
| Revenue                                          |   | $             | -          |   |          | $      | -          |          |   | $      | -             |   |   | $ | - |   |   | $ | - |   |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Costs and expenses                               |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
| General and administrative                       |   |          | 67,920     |   |          |   | 12,046     |          |   |   | 126,461       |   |   |   | 12,046 |   |   |   | 305,333 |   |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Operating Loss                                   |   |          | (67,920    | )      |          |   | (12,046    | )             |   |   | (126,461      | )      |   |   | (12,046 | ) |   |   | (305,333 | ) |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Other Income (Expense)                           |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Accretion of discount on convertible note        |   |          | (30,375    | )      |          |   | -          |          |   |   | (64,405       | )      |   |   | - |   |   |   | (68,501 | ) |
| Loss on extinguishment of debt                   |   |          | (24,467    | )      |          |   | -          |          |   |   | (24,467       | )      |   |   | - |   |   |   | (24,467 | ) |
| Loss on change in fair value of conversion       |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
| feature                                          |   |          | (24,193    | )      |          |   | -          |          |   |   | (26,801       | )      |   |   | - |   |   |   | (12,419 | ) |
| Total other income (expense)                     |   |          | (79,035    | )      |          |   | -          |          |   |   | (115,673      | )      |   |   | - |   |   |   | (105,387 | ) |
| Loss from continuing operations                  |   |          | (146,955   | )      |          |   | (12,046    | )             |   |   | (242,134      | )      |   |   | (12,046 | ) |   |   | (410,720 | ) |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Discontinued operations                          |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Gain on disposal of discontinued operations      |   |          | -          |   |          |   | 18,177     |          |   |   | -             |   |   |   | 18,177 |   |   |   | 18,177 |   |
| Operations                                       |   |          | -          |   |          |   | -          |          |   |   | -             |   |   |   | (55,510 | ) |   |   | (719,809 | ) |
| Total gain (loss) from discontinued operations   |   |          | -          |   |          |   | 18,177     |          |   |   | -             |   |   |   | (37,333 | ) |   |   | (701,632 | ) |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                |   | $             | (146,955   | )      |          | $      | 6,131      |          |   | $      | (242,134      | )      |   | $ | (49,379 | ) |   | $ | (1,112,352 | ) |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Net income (loss) per share - Basic and Diluted: |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |
| Loss from continuing operations                  |   | $             | (0.00      | )      |          | $      | (0.00      | )             |   | $      | (0.00         | )      |   | $ | (0.00 | ) |   |   |   |   |
| Discontinued operations                          |   |          | -          |   |          |   | 0.00       |          |   |   | -             |   |   |   | (0.00 | ) |   |   |   |   |
| Net income (loss)                                |   | $             | (0.00      | )      |          | $      | 0.00       |          |   | $      | (0.00         | )      |   | $ | (0.00 | ) |   |   |   |   |
|                                             |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Weighted Average Shares Outstanding              |   |          |       |   |          |   |       |          |   |   |          |   |   |   |   |   |   |   |   |   |
| Basic and Diluted                                |   |          | 58,990,000 |   |          |   | 61,690,000 |          |   |   | 58,990,000    |   |   |   | 67,339,000 |   |   |   |   |   |

----

| Neohydro Technologies Corp. and Subsidiary                           |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |                                                                                                          |                                                                                                                      |                                                                                                                      |
|----------------------------------------------------------------------|------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
| (A Development Stage Company)                                        |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |                                                                                                          |                                                                                                                      |                                                                                                                      |   |   |
| Consolidated Statements of Stockholders' Equity (Deficit)            |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |
| For the Period November 13, 2007 (Inception) to June 30, 2010        |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |
| (Expressed in US Dollars)                                            |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |                                                                                                          |                                                                                                                      |                                                                                                                      |   |   |
| (Unaudited)                                                          |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |                                                                                                          |                                                                                                                      |                                                                                                                      |   |   |
|                                                                 |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |                                                                                                          |                                                                                                                      |                                                                                                                      |   |   |   |   |
|                                                                 |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |                                                                                                          |                                                                                                                      |                                                                                                                      |   |   |
|                                                                 |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |                                                                                                          |                                                                                                                      | Deficit                                                                                                                   |   |   |
|                                                                 |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |                                                                                                          |                                                                                                                      | Accumulated                                                                                                               |   |   |
|                                                                 |                                           |                                                                                                                      |                                                                                                          | Common Stock,                                                                                                 |                                                                                      | Additional                                                                                                    |                                                                                                                      | During the                                                                                                                |   |   |
|                                                                 |                                           |                                                                                                                      |                                                                                                          | $0.00001 par value                                                                                            |                                                                                      | Paid-in                                                                                                       |                                                                                                                      | Development                                                                                                               |   |   |
|                                                                 |                                           |                                                                                                                      |                                                                                                          |  Shares                                                                                                  |                                                                                      |  Amount                                                                                                  |                                                                                                                      | Capital                                                                                                                   |   |  Stage |   | Total |
|                                                                 |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |                                                                                                          |                                                                                                                      |                                                                                                                      |   |   |   |   |
| Common shares sold for cash at $0.000125 per share                   |       40,000,000 | $                                                                                                                         |                400                 | $                                                                                                             |               4,600 | $                                                                                                             |                     - | $                                                                                                                         |               5,000 |
| Common shares sold for cash at $0.00125 per share                    | 32,800,000                                     |                                                                                                                      |              328                             |                                                                                                          |     40,672                                                            |                                                                                                          |                     - |                                                                                                                      |      41,000 |
| Donated services                                                     |                                           |                     - |                                                                                                          |                   - |                                                                                      |       1,500                                                                     |                                                                                                                      |                     - |   |        1,500 |
| Net Loss                                                             |                                           |                     - |                                                                                                          |                   - |                                                                                      |                 -             |                                                                                                                      |     (26,792)                                                                                          |   |        (26,792) |
| Balance - December 31, 2007                                          |                                           |   72,800,000                                                                                                    |                                                                                                          |             728                                   |                                                                                      |        46,772                                                              |                                                                                                                      |       (26,792)                                                                              |   |        20,708 |
|                                                                 |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |                                                                                                          |                                                                                                                      |                                                                                                                      |   |   |   |   |
| Common shares sold for cash at $0.40 per unit, less costs of $10,000 |      250,000          |                                                                                                                      |                  3       |                                                                                                          |      89,997                                                      |                                                                                                          |                     - |                                                                                                                      |        90,000 |
| Donated services                                                     |                                           |                     - |                                                                                                          |                  -       |                                                                                      |       6,000                                                                     |                                                                                                                      |                     - |   |         6,000 |
| Net Loss                                                             |                                           |                     - |                                                                                                          |                   - |                                                                                      |               -                         |                                                                                                                      |   (637,507)                                                                                                     |   |     (637,507) |
| Balance - December 31, 2008                                          |                                           |  73,050,000                                                                                                          |                                                                                                          |               731                       |                                                                                      |    142,769                                                                                     |                                                                                                                      | (664,299)                                                                                                                 |   |    (520,799) |
|                                                                 |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |                                                                                                          |                                                                                                                      |                                                                                                                      |   |   |   |   |
| Common shares returned and cancelled (Note 3)                        | (14,560,000)                                   |                                                                                                                      |        (146)                                                               |                                                                                                          |          146                                 |                                                                                                          |                     - |                                                                                                                      |                     - |
| Common shares issued for cash at $0.20 per unit                      |      500,000          |                                                                                                                      |                   5 |                                                                                                          |       99,995                                                |                                                                                                          |                     - |                                                                                                                      |        100,000 |
| Donated capital - amount due licensor                                |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |           500,000                                           |                                                                                                                      |                                                                                                                      |   |            500,000 |
| Net Loss                                                             |                                           |                     - |                                                                                                          |                   - |                                                                                      |                   - |                                                                                                                      |    (205,919)                                                                                               |   |      (205,919) |
| Balance - December 31, 2009                                          |                                           | 58,990,000                                                                                                                | $                                                                                                             |               590                       | $                                                                                         |    742,910                                                                                     | $                                                                                                                         |    (870,218)                                                                                               | $ |  (126,718) |
|                                                                 |                                           |                                                                                                                      |                                                                                                          |                                                                                                          |                                                                                      |                                                                                                          |                                                                                                                      |                                                                                                                      |   |   |   |   |
| Net Loss                                                             |                                           |                     - |                                                                                                          |                   - |                                                                                      |                -                   |                                                                                                                      | (242,134)                                                                                                                 |   |  (242,134) |
| Balance -June 30, 2010                                               |                                           |   58,990,000                                                                                                    | $                                                                                                             |               590                       | $                                                                                         |    742,910                                                                                     | $                                                                                                                         |  (1,112,352)                                                                                                         | $ |    (368,852) |

----

| Neohydro Technologies Corp. and Subsidiary                  |   |          |     |   |          |   |    |          |   |
|-------------------------------------------------------------|--------|---------------|----------|--------|---------------|--------|---------|---------------|--------|
| (A Development Stage Company)                               |   |          |     |   |          |   |    |          |   |
| Consolidated Statements of Cash Flows                       |   |          |     |   |          |   |    |          |   |
| (Expressed in US Dollars)                                   |   |          |     |   |          |   |    |          |   |
| (Unaudited)                                                 |   |          |     |   |          |   |    |          |   |
|                                                        |   |          |     |   |          |   |    |          |   |
|                                                        |   |          |     |   |          |   |    |          |   |
|                                                        |   |          |     |   |          |   |    | Period from   |   |
|                                                        |   |          |     |   |          |   |    | November 13,  |   |
|                                                        |   | Six months    |     |   | Six months    |   |    | 2007 (Date of |   |
|                                                        |   | ended         |     |   | ended         |   |    | Inception) to |   |
|                                                        |   | June 30, 2010 |     |   | June 30, 2009 |   |    | June 30, 2010 |   |
| Cash Flows from Operating Activities                        |   |          |     |   |          |   |    |          |   |
| Net income (loss)                                           |   | $             | (242,134 | )      |          | $      | (49,379 | )             |   | $ | (1,112,352 | ) |
| Adjustments to reconcile net income (loss) to net cash used |   |          |     |   |          |   |    |          |   |   |   |   |
| for operating activities:                                   |   |          |     |   |          |   |    |          |   |   |   |   |
| Donated services                                            |   |          | -        |   |          |   | -       |          |   |   | 7,500 |   |
| Impairment of mineral property acquisition costs            |   |          | -        |   |          |   | -       |          |   |   | 6,500 |   |
| Amortization of terminated license agreement costs          |   |          | -        |   |          |   | -       |          |   |   | 1,096 |   |
| Impairment of terminated license agreement costs            |   |          | -        |   |          |   | -       |          |   |   | 498,904 |   |
| Gain on disposal of discontinued operations                 |   |          | -        |   |          |   | (18,177 | )             |   |   | (18,177 | ) |
| Loss on re-valuation of derivative liability                |   |          | 26,801   |   |          |   | -       |          |   |   | 12,419 |   |
| Accretion of debt discount                                  |   |          | 58,435   |   |          |   | -       |          |   |   | 62,531 |   |
| Loss on extinguishment of debt                              |   |          | 24,467   |   |          |   | -       |          |   |   | 24,467 |   |
| Change in operating assets and liabilities:                 |   |          |     |   |          |   |    |          |   |   |   |   |
| Prepaid expenses                                            |   |          | -        |   |          |   | 25,295  |          |   |   | - |   |
| Accounts payable and accrued liabilities                    |   |          | (1,831   | )      |          |   | 38,009  |          |   |   | 82,420 |   |
| Net cash used for operating activities                      |   |          | (134,262 | )      |          |   | (4,252  | )             |   |   | (434,692 | ) |
| Cash Flows from Investing Activities                        |   |          |     |   |          |   |    |          |   |   |   |   |
| Mineral property acquisition costs                          |   |          | -        |   |          |   | -       |          |   |   | (6,500 | ) |
| Net cash used for investing activities                      |   |          | -        |   |          |   | -       |          |   |   | (6,500 | ) |
| Cash Flows from Financing Activities                        |   |          |     |   |          |   |    |          |   |   |   |   |
| Proceeds from sales of common stock - net                   |   |          | -        |   |          |   | -       |          |   |   | 236,000 |   |
| Increase in amount due to related party                     |   |          | 52,499   |   |          |   | 2,041   |          |   |   | 77,547 |   |
| Proceeds from convertible note                              |   |          | 45,000   |   |          |   | -       |          |   |   | 130,000 |   |
| Net cash provided by financing activities                   |   |          | 97,499   |   |          |   | 2,041   |          |   |   | 443,547 |   |
| Increase (Decrease) in cash                                 |   |          | (36,763  | )      |          |   | (2,211  | )             |   |   | 2,355 |   |
| Cash - beginning of period                                  |   |          | 39,118   |   |          |   | 2,268   |          |   |   | - |   |
| Cash - end of period                                        |   | $             | 2,355    |   |          | $      | 57      |          |   | $ | 2,355 |   |
| Supplemental disclosures of cash flow information:          |   |          |     |   |          |   |    |          |   |   |   |   |
| Interest paid                                               |   | $             | -        |   |          | $      | -       |          |   | $ | - |   |
| Income taxes paid                                           |   | $             | -        |   |          | $      | -       |          |   | $ | - |   |
| Non cash investing and financing activities:                |   |          |     |   |          |   |    |          |   |   |   |   |
| Acquisition of license agreement in exchange                |   |          |     |   |          |   |    |          |   |   |   |   |
| for liability due Licensor of license agreement             |   | $             | -        |   |          | $      | -       |          |   | $ | 500,000 |   |
| Contribution of amount due Licensor of                      |   |          |     |   |          |   |    |          |   |   |   |   |
| terminated license agreement                                |   | $             |     |   |          | $      | 500,000 |          |   | $ | - |   |

----

| 1.   | Summary of Significant Accounting Policies |
|----------------|--------------------------------------------|

| a)   | Basis of Presentation |
|----------------|-----------------------|

----

| (Unaudited) |
|-------------|

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

| b)   | Interim Financial Information |
|----------------|-------------------------------|

| c)   | Financial Instruments |
|----------------|-----------------------|

----

|   | (Unaudited) |
|--------|-------------|

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

|   | Level 1   Financial assets and liabilities for which values are based on unadjusted quoted prices for identical assets or liabilities in an active market that management has the ability to access. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | Level 2   Financial assets and liabilities for which values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the asset or liability (commodity derivatives and interest rate swaps). |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | Level 3   Financial assets and liabilities for which values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement.  These inputs reflect management’s own assumptions about the assumptions a market participant would use in pricing the asset or liability. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                               |   | Fair Value Measurements on a Recurring Basis |   |
|----------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------|--------|
|                                                                                               |   | June 30, 2010                                                              |   |
|                                                                                               |   | Level 1                                                                    |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|             Liabilities:                    |   |                                                                       |   |   |   |   |   |   |   |   |   |   |
|             Derivative liabilities          |   |                                                                       | -      |   |   | $ | 99,417 |   |   |   | - |   |   | $ | 99,417 |   |
|             Total liabilities at fair value |   |                                                                       | -      |   |   | $ | 99,417 |   |   |   | - |   |   | $ | 99,417 |   |

----

|   | (Unaudited) |
|--------|-------------|

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

| d)   | Reclassifications |
|----------------|-------------------|

| e)   | Recent Accounting Pronouncements |
|----------------|----------------------------------|

| 2.   | License Agreement Costs, Net |
|----------------|------------------------------|

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| 3.   | Related Party Balances/Transactions |
|----------------|-------------------------------------|

|                                                    |                                                                                | June 30,2010 |   |   | December 31, 2009 |
|---------------------------------------------------------|-------------------------------------------------------------------------------------|--------------|--------|--------|-------------------|
|                                                    | Due to former chief executive officer(from November 13, 2007 to September 22 ,2008) |
| for advances and expenses paid on behalf of the Company | $                                                                                   | 20,998       |   | $      | 20,998            |
|                                                    | Due to significant stockholders                                                     |         |   |
| Unpaid consulting fees                                  |                                                                                | 19,049       |   |   | 4,050             |
| Due to current chief executive officer                  |                                                                                |         |   |   |              |
| Unpaid management fees                                  |                                                                                | 37,500       |   |   | -                 |
|          Total  | $                                                                                   | 77,547       |   | $      | 25,048            |

| a)   | On July 30, 2009, the Company entered into a loan agreement with a private company for $35,000 (“Lender”). The loan is non-interest bearing and due in full on March 1, 2010. The loan can be cancelled upon the conversion of the loan into shares by the Lender. The loan was not repaid by the due date of March 1, 2010 and on April 9, 2010 a new agreement was signed.  (see Note 6(b)). |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | On March 31, 2010 a private company loaned the Company $28,000.   The loan is non-interest bearing and has no repayment terms.  On May 6, 2010 the private company loaned an additional $17,000 and entered into a convertible note agreement for the gross amount of $45,000 due in full on June 30, 2010.  The loan was not repaid by the due date and a new note was signed on July 31, 2010. (see Note 6(c)). |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| a)   | On December 17, 2009, the Company entered into a convertible note agreement with a private company.  The Company received $50,000 which bears interest at 15% per annum and was due on March 31, 2010. On April 1, 2010, the due date of the loan was extended to June 1, 2010 and on June 1, 2010 the due date of the loan was extended to June 30, 2011. The Company evaluated the modifications and concluded that the modifications were not troubled debt restructurings or extinguishments of the original debt; as a result no gain or loss was recognized upon modification and no change to the carrying value of the debt was recognized. Interest is payable on the note when the principal amount becomes due. The loan and any unpaid interest are convertible into shares of common stock at a conversion price which is the lesser of (a) $0.15 or (b) a 25% discount to the five day value weighted average stock price of the common stock as of the date of conversion. The Company initially recognized the fair value of the embedded conversion feature of $35,989 as a derivative liability and reduced the carrying value of the convertible loan to $14,011.  The discount on the convertible loan was accreted over the term of the convertible loan, and at March 31, 2010 the unamortized discount was $0, increasing the carrying value to the face value of $50,000. As at June 30, 2010, the discount was fully accreted and the carrying value of the convertible debt was $50,000.  At June 30, 2010 accrued interest of $4,007 was  outstanding and included in the convertible note balance on the accompanying balance sheet. The fair value of the derivative liability at June 30, 2010 was $37,616 and a loss of $16,010 for the six months ended June 30, 2010 was recorded on the change in the fair value of the derivative liability.  The fair value of the derivative liability of $37,616 was determined using the Black Scholes option pricing model with a quoted market price of $0.01, a conversion price of $0.0105, expected volatility of 253%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.32%.  As of June 30, 2010, the loan has not been repaid or converted into shares. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)   | On April 9, 2010, the Company entered into a convertible loan agreement which replaced the loan agreement for $35,000 referred to in Note 5(a). According to the terms of the agreement the loan is due March 1, 2011 and bears interest at 12% per annum. Interest is payable on the note when the principal amount becomes due. The loan and any unpaid interest are convertible into shares of common stock at a conversion price which is the lesser of (a) $0.015 or (b) a 25% discount to the five day value weighted average stock price of the common stock as of the date of conversion. The Company evaluated the modification and concluded that the modification was an extinguishment of the original debt; as a result a loss of $24,467 for the three and six months ended June 30, 2010 was recognized upon modification and no change to the carrying value of the debt was recognized as the Company determined that the fair value of the new debt was $35,000. The fair value of the derivative liability at June 30, 2010 was $24,467 and a gain of $5,646 for the six months ended June 30, 2010 was recorded for the change in the fair value of the derivative liability and included in the loss on extinguishment.  The fair value of the derivative liability of $24,467 was determined using the Black Scholes option pricing model with a quoted market price of $0.01, a conversion price of $0.0105, expected volatility of 253%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.32%.  As at June 30, 2010, the discount was $0 and the carrying value of the convertible debt was $35,000.  At June 30, 2010 accrued interest of $944 was also outstanding. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| c)   | On May 6, 2010, the Company entered into a convertible note agreement to secure $45,000 of advances referred to in Note 5(b).  According to the terms of the agreement the loan was due on June 30, 2010 and bore interest at 15% per annum.  Interest was payable on the note when the principal became due.  The loan and any unpaid interest were convertible into shares of common stock at a conversion price which of the lesser of (a) $0.02 or (b) a 25% discount to the five day value weighted average stock price of the common stock as of the date of conversion.  The Company initially recognized the fair value of the embedded conversion feature of $26,543 as a derivative liability and reduced the carrying value of the convertible loan to $18,457. The initial fair value of the derivative liability at May 6, 2010 of $26,543 was determined using the Black Scholes option pricing model with a quoted market price of $0.02, a conversion price of $0.0165, expected volatility of 291%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.32%.   The discount on the convertible loan was accreted over the term of the convertible loan, increasing the carrying value to the face value of $45,000 on June 30, 2010. As at June 30, 2010, the discount was fully accreted and the carrying value of the convertible debt was $45,000.  At June 30, 2010 accrued interest of $1,018 was also outstanding. The fair value of the derivative liability at June 30, 2010 was $nil and a gain of $26,543 for the six months ended June 30, 2010 was recorded on the change in the fair value of the derivative liability.  The fair value of the derivative liability at June 30, 2010 was $37,334 and a loss of $37,334 for the six months ended June 30, 2010 was recorded for the change in the fair value of the derivative liability.  The fair value of the derivative liability of $37,334 was determined using the Black Scholes option pricing model with a quoted market price of $0.01, a conversion price of $0.0105, expected volatility of 306%, no expected dividends, an expected term of one year and a risk-free interest rate of 0.32%.  As of June 30, 2010, the loan had not been repaid or converted into shares; the loan was extended on July 31, 2010 with an additional $5,000 loaned to the Company that increased the principal of the outstanding debt to approximately $50,000.  The terms of the extended loan were not modified from the original note except to extend the maturity date to June 30, 2011. |
|----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |                                               | Number ofWarrants | Weighted AverageExercise Price |
|--------|----------------------------------------------------|-------------------|--------------------------------|
|   |                                               |              |                           |
|   | Balance – December 31, 2009 andJune 30, 2010 | 1,250,000         | $0.15                          |

|                                                                 |   | 2009    |
|----------------------------------------------------------------------|--------|---------|
|                                                                 |   |    |
|        Relative fair value of warrants |   | $76,747 |
|        Relative fair value of stock    |   | $23,253 |

----

|   | Description               | Number ofWarrants | ExercisePrice | Expiry Date        |
|--------|---------------------------|-------------------|---------------|--------------------|
|   |                      |              |          |               |
|   | Issued September 23, 2008 | 250,000           | $0.40         | September 23, 2011 |
|   | Issued October 1, 2009    | 500,000           | $0.10         | October 1, 2012    |
|   | Issued October 1, 2009    | 500,000           | $0.08         | October 1, 2013    |
|   |                      |              |          |               |
|   | Total                     | 1,250,000         |          |               |

|   |                             |   | June 30,2010 |   | December 31,2009 |
|--------|----------------------------------|--------|--------------|--------|------------------|
|   | Net operating loss carry-forward | $      | 205,053      | $      | 127,194          |
|   | Valuation allowance              |   | (205,053)    |   | (127,194)        |
|   | Net deferred income tax assets   | $      | –      | $      | –          |

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|                                                                                                                                       |   | For the Six Months Ended |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|
|                                                                                                                                       |   | June 30,2010             |   | June 30,2009 |
|      Expected income tax expense (benefit) at 34%                                                                      | $      | (82,325)                 | $ | (16,789) |
|      Non-taxable portion of gain on disposal of        Discontinued operations |   | –                  |   | 6,180 |
|      Non-deductible accretion                                                                                          |   | 21,897                   |   | – |
|         Non-deductible gain on re-valuation of derivative liability                                     |   | (17,431)                 |   | – |
|      Change in valuation allowance                                                                                |   | 77,859                   |   | 10,609 |
|      Provision for (benefit from) income taxes                                                                    | $      | –                  | $ | – |

| a)   | On June 8, 2009, the Company entered into a licensing agreement with Gene Peckover, a sole proprietor as president of Gene Vettes of Lynden, a Washington corporation (the “GIHS Licensor”) to be formed, wherein Licensor granted to the Company an exclusive license covering the territory of Canada and other such territories that shall be mutually agreed upon and the right to market and sell an environmental fuel efficient turbo technology called Green Interactive Hybrid System (“GIHS”).  The term of the license is three years subject to the following: |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The Company must purchase and have operational a demonstration GIHS by December 31, 2009. |
|--------|----|-------------------------------------------------------------------------------------------|
|   | 2. | The Company must sell at least 3 GIHS units by December 31, 2009.                         |
|   | 3. | The Company must sell at least 25 GIHS units by December 31, 2010.                        |
|   | 4. | The Company must sell at least 200 GIHS units by December 31, 2011.                       |
|   | 5. | The Company must sell at least 500 GIHS units by December 31, 2012.                       |

|   | 1. | The Company must purchase and have operational a demonstration GIHS by June 30, 2010. |
|--------|----|---------------------------------------------------------------------------------------|
|   | 2. | The Company must sell at least 3 GIHS units by December 31, 2010.                     |
|   | 3. | The Company must sell at least 25 GIHS units by December 31, 2011.                    |
|   | 4. | The Company must sell at least 200 GIHS units by December 31, 2012.                   |
|   | 5. | The Company must sell at least 500 GIHS units by December 31, 2013.                   |

----

| b)   | On June 8, 2009, the Company entered into a fee agreement with Michael Kulcheski and Harry Gelbard wherein the Company agreed to issue Kulcheski 9,000,000 restricted shares of common stock and Gelbard 6,000,000 restricted shares of common stock in consideration of Kulcheski and Gelbard using reasonable commercial efforts to sell, market, distribute, and manufacture the GIHS license granted to the Company by the GIHS Licensor and to manage the development of our technology. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | The Company must purchase and have operational a demonstration GIHS by September 30, 2010. |
|--------|----|--------------------------------------------------------------------------------------------|
|   | 2. | The Company must sell at least 3 GIHS units by December 31, 2011.                          |
|   | 3. | The Company must sell at least 25 GIHS units by December 31, 2012.                         |
|   | 4. | The Company must sell at least 200 GIHS units by December 31, 2013.                        |
|   | 5. | The Company must sell at least 500 GIHS units by December 31, 2014.                        |

----

|   | 1. | The Company must purchase and have operational one demonstration GIHS by December 31, 2009. |
|--------|----|---------------------------------------------------------------------------------------------|
|   | 2. | The Company must sell at least three GIHS units by December 31, 2009.                       |
|   | 3. | The Company must sell at least twenty-five GIHS units by December 31, 2010.                 |
|   | 4. | The Company must sell at least two hundred GIHS units by December 31, 2011.                 |
|   | 5. | The Company must sell at least five hundred GIHS units by December 31, 2012.                |

----

|   | 1. | The Company must purchase and have operational one demonstration GIHS by June 30, 2010. |
|--------|----|-----------------------------------------------------------------------------------------|
|   | 2. | The Company must sell at least three GIHS units by December 31, 2010.                   |
|   | 3. | The Company must sell at least twenty-five GIHS units by December 31, 2011.             |
|   | 4. | The Company must sell at least two hundred GIHS units by December 31, 2012.             |
|   | 5. | The Company must sell at least five hundred GIHS units by December 31, 2013.            |

|   | 1. | The Company must purchase and have operational a demonstration GIHS by September 30, 2010. |
|--------|----|--------------------------------------------------------------------------------------------|
|   | 2. | The Company must sell at least 3 GIHS units by December 31, 2011.                          |
|   | 3. | The Company must sell at least 25 GIHS units by December 31, 2012.                         |
|   | 4. | The Company must sell at least 200 GIHS units by December 31, 2013.                        |
|   | 5. | The Company must sell at least 500 GIHS units by December 31, 2014.                        |

----

----

----

----

|   | 1. | The Company must purchase and have operational a demonstration GIHS by December 31, 2009. |
|--------|----|-------------------------------------------------------------------------------------------|
|   | 2. | The Company must sell at least 3 GIHS units by December 31, 2009.                         |
|   | 3. | The Company must sell at least 25 GIHS units by December 31, 2010.                        |
|   | 4. | The Company must sell at least 200 GIHS units by December 31, 2011.                       |
|   | 5. | The Company must sell at least 500 GIHS units by December 31, 2012.                       |

|   | 1. | The Company must purchase and have operational one demonstration GIHS by June 30, 2010. |
|--------|----|-----------------------------------------------------------------------------------------|
|   | 2. | The Company must sell at least three GIHS units by December 31, 2010.                   |
|   | 3. | The Company must sell at least twenty-five GIHS units by December 31, 2011.             |
|   | 4. | The Company must sell at least two hundred GIHS units by December 31, 2012.             |
|   | 5. | The Company must sell at least five hundred GIHS units by December 31, 2013.            |

----

|   | 1. | The Company must purchase and have operational a demonstration GIHS by September 30, 2010. |
|--------|----|--------------------------------------------------------------------------------------------|
|   | 2. | The Company must sell at least 3 GIHS units by December 31, 2011.                          |
|   | 3. | The Company must sell at least 25 GIHS units by December 31, 2012.                         |
|   | 4. | The Company must sell at least 200 GIHS units by December 31, 2013.                        |
|   | 5. | The Company must sell at least 500 GIHS units by December 31, 2014.                        |

----

----

| ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
|---------|-------------------------------------------------------------|

| ITEM 4. | CONTROLS AND PROCEDURES. |
|---------|--------------------------|

----

| ITEM 1A. | RISK FACTORS |
|----------|--------------|

| ITEM 6. | EXHIBITS. |
|---------|-----------|

| Exhibit No. | Document Description                                                                                                                                                 |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                 |
| 10.1        | Lease Agreement (filed as exhibit 10.1 to the Company’s Form S-1 Registration Statement filed on March 13, 2008 and incorporated herein by reference thereto). |
|        |                                                                                                                                                                 |
| 10.2*       | Amendment to the License Agreement                                                                                                                              |
|        |                                                                                                                                                                 |
| 31.1*       | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                              |
|        |
| 32.1*       | Certification of Chief Executive Officer and Chief Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002.                                      |

----

|   | NEOHYDRO TECHNOLOGIES CORP. |
|--------|-----------------------------|
|   |                        |   |
|   | BY:                         | MICHAEL KULCHESKI |
|   |                        | Michael R. Kulcheski, President, Principal Executive Officer, Secretary, Treasurer, Principal Financial Officer, Principal Accounting Officer and sole member of the Board of Directors. |

----

| Exhibit No. | Document Description                                                                                                                                                 |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                 |
| 10.1        | Lease Agreement (filed as exhibit 10.1 to the Company’s Form S-1 Registration Statement filed on March 13, 2008 and incorporated herein by reference thereto). |
|        |                                                                                                                                                                 |
| 10.2*       | Amendment to the License Agreement                                                                                                                              |
|        |                                                                                                                                                                 |
| 31.1*       | Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                              |
|        |
| 32.1*       | Certification of Chief Executive Officer and Chief Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002.                                      |

----