| New York                                                       |         | 11-2653613                           |
|----------------------------------------------------------------|--------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |         | (I.R.S. Employer Identification No.) |
|                                                           |         |                                 |
| 4 Manhattanville Road                                          |         |                                 |
| Purchase, New York                                             |         | 10577-2197                           |
| (Address of Principal Executive Offices)                       |    | (Zip Code)                           |

| Class                                    | Outstanding at May 13, 2011   |
|------------------------------------------|-------------------------------|
| Common Stock, $0.005 par value per share | 192,936,779  shares |

----

|    |   |                                                              |                                                               | PAGE   |
|---------|--------|-------------------------------------------------------------------|-------------------------------------------------------------------------|--------|
|    |   |                                                              |                                                                    |   |
| PART I  |   | FINANCIAL INFORMATION                                             |                                                                    |   |
|    |   |                                                              |                                                                    |   |
| ITEM 1  |   | Financial Statements                                              |                                                                    |   |
|    |   |                                                              |                                                                    |   |
|    |   | (a)                                                               | Condensed Consolidated Balance Sheets at March 31, 2011                 |   |   |
|    |   |                                                              | (unaudited) and June 30, 2010                                           |   | 3 |
|    |   |                                                              |                                                                    |   |   |
|    |   | (b)                                                               | Condensed Consolidated Statements of Operations for the three and nine- |   |   |
|    |   |                                                              | month periods ended March 31, 2011 and 2010                             |   |   |
|    |   |                                                              | (unaudited)                                                             |   | 5 |
|    |   |                                                              |                                                                    |   |   |
|    |   | (c)                                                               | Condensed Consolidated Statement of Stockholders’ Deficit for     |   |   |
|    |   |                                                              | the nine-month period ended March 31, 2011 (unaudited)                  |   | 6 |
|    |   |                                                              |                                                                    |   |   |
|    |   | (d)                                                               | Condensed Consolidated Statements of Cash Flows for the nine-           |   |   |
|    |   |                                                              | month periods ended March 31, 2011 and 2010 (unaudited)                 |   | 7 |
|    |   |                                                              |                                                                    |   |   |
|    |   | (e)                                                               | Notes to Condensed Consolidated Financial Statements (unaudited)        |   | 8 |
|    |   |                                                              |                                                                    |   |
| ITEM 2  |   | Management’s Discussion and Analysis of Financial Condition |                                                                    |   |
|    |   | and Results of Operations                                         |                                                                    | 11     |
|    |   |                                                              |                                                                    |   |
| ITEM 3  |   | Quantitative and Qualitative Disclosures About Market Risk        |                                                                    | 13     |
|    |   |                                                              |                                                                    |   |
| ITEM 4  |   | Controls and Procedures                                           |                                                                    | 13     |
|    |   |                                                              |                                                                    |   |
| PART II |   | OTHER INFORMATION                                                 |                                                                    |   |
|    |   |                                                              |                                                                    |   |
| ITEM 1  |   | Legal Proceedings                                                 |                                                                    | 14     |
|    |   |                                                              |                                                                    |   |
| ITEM 6  |   | Exhibits                                                          |                                                                    | 14     |

----

|                                                                                                                                                             |   | March 31,2011 |         |   | June 30,2010 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|--------------|--------|-------------------|--------|
|                                                                                                                                                             |   | (unaudited)        |         |   | (Note 1)     |   |
| ASSETS                                                                                                                                                           |   |               |         |   |              |   |
|                                                                                                                                                             |   |               |         |   |              |   |
| Current assets:                                                                                                                                                  |   |               |         |   |              |   |
|                                                                                                                                                             |   |               |         |   |              |   |   |   |
| Cash and cash equivalents                                                                                                                                        |   | $                  | 1,194        |   |              | $      | 835 |   |
| Restricted cash                                                                                                                                                  |   |               | 100          |   |              |   | 100 |   |
| Accounts receivable (less allowances for doubtful accounts and returns of $1,121 and $1,231 at March 31, 2011 and June 30, 2010, respectively)                   |   |               |   1,378 |   |              |   |   1,495 |   |
| Other receivables                                                                                                                                                |   |               | 35           |   |              |   | 224 |   |
| Inventories                                                                                                                                                      |   |               | 195          |   |              |   | 173 |   |
| Prepaid expenses and other current assets                                                                                                                        |   |               | 113          |   |              |   | 104 |   |
|                                                                                                                                                             |   |               |         |   |              |   |   |   |
| Total current assets                                                                                                                                             |   |               | 3,015        |   |              |   | 2,931 |   |
|                                                                                                                                                             |   |               |         |   |              |   |   |   |
| Property and equipment, net                                                                                                                                      |   |               | 54           |   |              |   | 57 |   |
|                                                                                                                                                             |   |               |         |   |              |   |   |   |
| Patents, trademarks and other amortizable intangibles (net of accumulated amortization of $27,122 and $27,011 at March 31, 2011 and June 30, 2010, respectively) |   |               |   578   |   |              |   |   588 |   |
|                                                                                                                                                             |   |               |         |   |              |   |   |   |
| Other assets                                                                                                                                                     |   |               | 154          |   |              |   | 386 |   |
|                                                                                                                                                             |   |               |         |   |              |   |   |   |
| TOTAL ASSETS                                                                                                                                                     |   | $                  | 3,801        |   |              | $      | 3,962 |   |

----

|                                                                                                                                                                                                                                                                                   |   | March 31, 2011 |     |   | June 30,2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|----------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                   |   | (unaudited)              |     |   | (Note 1)     |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                                                                                            |   |                     |     |   |              |   |
|                                                                                                                                                                                                                                                                                   |   |                     |     |   |              |   |
| LIABILITIES:                                                                                                                                                                                                                                                                           |   |                     |     |   |              |   |
|                                                                                                                                                                                                                                                                                   |   |                     |     |   |              |   |
| Current liabilities:                                                                                                                                                                                                                                                                   |   |                     |     |   |              |   |
| Accounts payable                                                                                                                                                                                                                                                                       |   | $                        | 496      |   |              | $      | 719 |   |
| Accrued expenses                                                                                                                                                                                                                                                                       |   |                     | 1,028    |   |              |   | 1,321 |   |
| 8% Series J convertible preferred stock subject to mandatory redemption (redemption value $17,750 at March 31, 2011)                                                                                                                                                                   |   |                     | 16,624   |   |              |   | — |   |
| Total current liabilities                                                                                                                                                                                                                                                              |   |                     | 18,148   |   |              |   | 2,040 |   |
| 8% Series J convertible preferred stock subject to mandatory redemption (redemption value $17,750 at June 30, 2010)                                                                                                                                                                    |   |                     | —  |   |              |   | 15,068 |   |
|                                                                                                                                                                                                                                                                                   |   |                     |     |   |              |   |   |   |
| Total liabilities                                                                                                                                                                                                                                                                      |   |                     | 18,148   |   |              |   | 17,108 |   |
| Commitments and contingencies                                                                                                                                                                                                                                                          |   |                     |     |   |              |   |   |   |
| STOCKHOLDERS’ DEFICIT:                                                                                                                                                                                                                                                           |   |                     |     |   |              |   |   |   |
| Preferred stock, $0.01 par value, authorized 5,000,000 shares, 100,000 shares designated as Series H, none issued and outstanding; 17,750 shares designated as Series J convertible preferred stock issued and outstanding at March 31, 2011 and June 30, 2010 (see liabilities above) |   |                     | —  |   |              |   | — |   |
|                                                                                                                                                                                                                                                                                   |   |                     |     |   |              |   |   |   |
| Common stock, $0.005 par value, authorized 500,000,000 shares; 161,878,162 and 96,225,520 shares issued and outstanding at March 31, 2011 and June 30, 2010, respectively                                                                                                              |   |                     | 807      |   |              |   | 479 |   |
|                                                                                                                                                                                                                                                                                   |   |                     |     |   |              |   |   |   |
| Additional paid-in capital                                                                                                                                                                                                                                                             |   |                     | 120,028  |   |              |   | 119,215 |   |
| Accumulated deficit                                                                                                                                                                                                                                                                    |   |                     | (135,182 | )      |              |   | (132,840 | ) |
| Total stockholders’ deficit                                                                                                                                                                                                                                                      |   |                     | (14,347  | )      |              |   | (13,146 | ) |
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                                                                                                                                      |   | $                        | 3,801    |   |              | $      | 3,962 |   |

----

|                                                               |   | Three MonthsEndedMarch 31, |        |   | Nine monthsEndedMarch 31, |   |
|--------------------------------------------------------------------|--------|--------------------------------------|-------------|--------|-------------------------------------|--------|
|                                                               |   | 2011                                 |        |   | 2010                                |   |   | 2011 |   |   | 2010 |   |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |
| Net sales                                                          |   | $                                    | 1,310       |   |                                | $      | 1,602 |   |   | $ | 4,348 |   |   | $ | 5,796 |   |
| Other revenues                                                     |   |                                 | 16          |   |                                |   | 77 |   |   |   | 466 |   |   |   | 252 |   |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL REVENUES                                                     |   |                                 | 1,326       |   |                                |   | 1,679 |   |   |   | 4,814 |   |   |   | 6,048 |   |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| COSTS AND EXPENSES                                                 |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Cost of revenues                                                   |   |                                 | 270         |   |                                |   | 418 |   |   |   | 1,202 |   |   |   | 1,372 |   |
| General and administrative expenses                                |   |                                 | 595         |   |                                |   | 709 |   |   |   | 2,026 |   |   |   | 2,571 |   |
| Advertising and promotion expenses                                 |   |                                 | 210         |   |                                |   | 162 |   |   |   | 573 |   |   |   | 512 |   |
| Research and development expenses                                  |   |                                 | 101         |   |                                |   | 124 |   |   |   | 282 |   |   |   | 306 |   |
| Depreciation and amortization                                      |   |                                 | 7           |   |                                |   | 63 |   |   |   | 133 |   |   |   | 227 |   |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| TOTAL COSTS AND EXPENSES                                           |   |                                 | 1,183       |   |                                |   | 1,476 |   |   |   | 4,216 |   |   |   | 4,988 |   |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING INCOME                                                   |   |                                 | 143         |   |                                |   | 203 |   |   |   | 598 |   |   |   | 1,060 |   |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                    |   |                                 | 1           |   |                                |   | — |   |   |   | 2 |   |   |   | 2 |   |
| Interest expense                                                   |   |                                 | (974        | )      |                                |   | (915 | ) |   |   | (2,871 | ) |   |   | (2,855 | ) |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM CONTINUING OPERATIONS                                    |   |                                 | (830        | )      |                                |   | (712 | ) |   |   | (2,271 | ) |   |   | (1,793 | ) |
| Income taxes                                                       |   |                                 | —     |   |                                |   | — |   |   |   | — |   |   |   | — |   |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM CONTINUING OPERATIONS                                    |   |                                 | (830        | )      |                                |   | (712 | ) |   |   | (2,271 | ) |   |   | (1,793 | ) |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| DISCONTINUED OPERATIONS:                                           |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| LOSS ON  SALE OF DISCONTINUED OPERATIONS, NET OF TAX     |   |                                 | —     |   |                                |   | — |   |   |   | — |   |   |   | (2,140 | ) |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| (LOSS) INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX             |   |                                 | —     |   |                                |   | (124 | ) |   |   | (71 | ) |   |   | 275 |   |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| LOSS FROM DISCONTINUED OPERATIONS                                  |   |                                 | —     |   |                                |   | (124 | ) |   |   | (71 | ) |   |   | (1,865 | ) |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                                                           |   | $                                    | (830        | )      |                                | $      | (836 | ) |   | $ | (2,342 | ) |   | $ | (3,658 | ) |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Loss per common share basic and diluted: continuing operations     |   | $                                    | (0.01       | )      |                                | $      | (0.01 | ) |   | $ | (0.02 | ) |   | $ | (0.02 | ) |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Loss per common share basic and diluted: discontinued operations   |   | $                                    | —     |   |                                | $      | (0.00 | ) |   | $ | — |   |   | $ | (0.02 | ) |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per common share basic and diluted                        |   | $                                    | (0.01       | )      |                                | $      | (0.01 | ) |   | $ | (0.02 | ) |   | $ | (0.04 | ) |
|                                                               |   |                                 |        |   |                                |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares – basic and diluted |   |                                 | 161,059,988 |   |                                |   | 80,450,283 |   |   |   | 146,729,530 |   |   |   | 77,740,145 |   |

----

| NUTRITION 21, INC. |
|--------------------|

| (in thousands, except share data) |
|-----------------------------------|

| (unaudited) |
|-------------|

|                                                               |   | Common Stock |        |   | AdditionalPaid-InCapital |   |    | AccumulatedDeficit |   |   | Total   |   |
|--------------------------------------------------------------------|--------|-------------------|-------------|--------|--------------------------|--------|---------|--------------------|--------|--------|---------|--------|
|                                                               |   | Shares            |        |   | $                        |   |    | $                  |   |   | $       |   |   | $ |   |
|                                                               |   |              |        |   |                     |   |    |               |   |   |    |   |   |   |   |   |   |   |   |
| Balance at June 30, 2010                                           |   |              | 96,225,520  |   |                     |   | 479     |               |   |   | 119,215 |   |   |   | (132,840 | ) |   |   | (13,146 | ) |
|                                                               |   |              |        |   |                     |   |    |               |   |   |    |   |   |   |   |   |   |   |   |   |
| Issuance of common stock for dividends on Series J preferred stock |   |              | 65,652,642  |   |                     |   | 328     |               |   |   | 737     |   |   |   | — |   |   |   | 1,065 |   |
|                                                               |   |              |        |   |                     |   |    |               |   |   |    |   |   |   |   |   |   |   |   |   |
| Stock-based compensation expense                                   |   |              | —     |   |                     |   | — |               |   |   | 76      |   |   |   | — |   |   |   | 76 |   |
|                                                               |   |              |        |   |                     |   |    |               |   |   |    |   |   |   |   |   |   |   |   |   |
| Net loss for the period                                            |   |              | —     |   |                     |   | — |               |   |   | — |   |   |   | (2,342 | ) |   |   | (2,342 | ) |
|                                                               |   |              |        |   |                     |   |    |               |   |   |    |   |   |   |   |   |   |   |   |   |
| Balance at March 31, 2011                                          |   |              | 161,878,162 |   |                     | $      | 807     |               |   | $      | 120,028 |   |   | $ | (135,182 | ) |   | $ | (14,347 | ) |

----

|                                                                                   |   | Nine months EndedMarch 31, |    |
|----------------------------------------------------------------------------------------|--------|-------------------------------------------|---------|
|                                                                                   |   | 2011                                      |    |   | 2010 |   |
| Cash flows from operating activities:                                                  |   |                                      |    |   |   |   |
| Net loss                                                                               |   | $                                         | (2,342  | ) |   | $ | (3,658 | ) |
| Adjustments to reconcile net loss to net cash provided by operating activities:        |   |                                      |    |   |   |   |   |   |
| Depreciation of property and equipment                                                 |   |                                      | 22      |   |   |   | 10 |   |
| Amortization of intangibles                                                            |   |                                      | 111     |   |   |   | 217 |   |
| Accretion of preferred stock and amortization of deferred financing costs              |   |                                      | 1,788   |   |   |   | 1,792 |   |
| Loss on sale of discontinued operations                                                |   |                                      | — |   |   |   | 2,140 |   |
| Convertible preferred stock dividends paid in common stock charged as interest expense |   |                                      | 1,065   |   |   |   | 1,066 |   |
| Stock-based compensation expense                                                       |   |                                      | 76      |   |   |   | 84 |   |
| Gain on disposal of assets                                                             |   |                                      | — |   |   |   | (6 | ) |
|                                                                                   |   |                                      |    |   |   |   |   |   |
| Changes in operating assets and liabilities, net of effects of dispositions:           |   |                                      |    |   |   |   |   |   |
| Accounts receivable                                                                    |   |                                      | 117     |   |   |   | 1,257 |   |
| Other receivables                                                                      |   |                                      | 189     |   |   |   | 312 |   |
| Inventories                                                                            |   |                                      | (22     | ) |   |   | 2,335 |   |
| Prepaid expenses and other current assets                                              |   |                                      | (9      | ) |   |   | 233 |   |
| Accounts payable                                                                       |   |                                      | (223    | ) |   |   | (1,074 | ) |
| Accrued expenses                                                                       |   |                                      | (293    | ) |   |   | (862 | ) |
| Deferred income                                                                        |   |                                      | — |   |   |   | (361 | ) |
| Net cash provided by operating activities                                              |   |                                      | 479     |   |   |   | 3,485 |   |
|                                                                                   |   |                                      |    |   |   |   |   |   |
| Cash flows from investing activities:                                                  |   |                                      |    |   |   |   |   |   |
| Contingent payments for acquisitions, allocated to goodwill, patents and trademarks    |   |                                      | — |   |   |   | (69 | ) |
| Purchases of property and equipment, patents and trademarks                            |   |                                      | (120    | ) |   |   | (77 | ) |
| Net cash used in investing activities                                                  |   |                                      | (120    | ) |   |   | (146 | ) |
|                                                                                   |   |                                      |    |   |   |   |   |   |
| Cash flows from financing activities:                                                  |   |                                      |    |   |   |   |   |   |
| Repayments of short-term borrowings and long-term debt                                 |   |                                      | — |   |   |   | (4,457 | ) |
| Net cash used in financing activities                                                  |   |                                      | — |   |   |   | (4,457 | ) |
|                                                                                   |   |                                      |    |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                   |   |                                      | 359     |   |   |   | (1,118 | ) |
| Cash and cash equivalents at beginning of period                                       |   |                                      | 835     |   |   |   | 1,373 |   |
| Cash and cash equivalents at end of period                                             |   | $                                         | 1,194   |   |   | $ | 255 |   |

----

| Note 1 | BASIS OF PRESENTATION |
|--------|-----------------------|

|   | The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for Quarterly Reports on Form 10-Q and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America.  Accordingly, the unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the fiscal year ended June 30, 2010 included in the Company’s Annual Report on Form 10-K filed on September 22, 2010 (the “Form 10-K”).  The accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of the management, considered necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods.  The June 30, 2010 balance sheet has been derived from the audited consolidated financial statements included in the Form 10-K. Operating results for the three and nine-month periods ended March 31, 2011 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2011. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note 2 | STOCK-BASED COMPENSATION |
|--------|--------------------------|

|   | Stock-based employee compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the requisite service period. The Company has no awards with market or performance conditions. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 2 | STOCK-BASED COMPENSATION (continued) |
|--------|--------------------------------------|

| Options                       |   | Shares(000) |    |   | Weighted-AverageExercise Price |   |    | WeightedAverageRemainingContractualTerm (Yrs.) |   |   | AggregateIntrinsic Value($000) |   |
|-------------------------------|--------|-------------|---------|--------|-------------------------------------|--------|---------|-----------------------------------------------------|--------|--------|-------------------------------------|--------|
| Outstanding at July 1, 2010   |   |        | 5,995   |   |                                | $      | 0.42    |                                                |   |   |                                |   |   |   |
| Granted                       |   |        | 100     |   |                                | $      | 0.01    |                                                |   |   |                                |   |   |   |
| Exercised                     |   |        | — |   |                                |   | — |                                                |   |   |                                |   |   |   |
| Forfeited or expired          |   |        | (489    | )      |                                | $      | 0.90    |                                                |   |   |                                |   |   |   |
| Outstanding at March 31, 2011 |   |        | 5,606   |   |                                | $      | 0.37    |                                                |   |   | 6.4                                 |   |   | $ | - |   |
| Exercisable at March 31, 2011 |   |        | 4,523   |   |                                | $      | 0.42    |                                                |   |   | 6.0                                 |   |   | $ | - |   |

| Restricted Stock            |   | Shares(000) |    |   | Weighted-AverageGrant Price |   |    | WeightedAverageRemainingContractualTerm (Yrs.) |   |   | AggregateIntrinsic Value($000’s) |   |
|----------------------------------|--------|-------------|---------|--------|-----------------------------|--------|---------|-----------------------------------------------------|--------|--------|---------------------------------------------|--------|
| Outstanding at July 1, 2010      |   |        | 130     |   |                        | $      | 1.57    |                                                |   |   |                                        |   |   |   |
| Granted                          |   |        | — |   |                        |   | — |                                                |   |   |                                        |   |   |   |
| Exercised                        |   |        | — |   |                        |   | — |                                                |   |   |                                        |   |   |   |
| Forfeited / expired or cancelled |   |        | — |   |                        |   | — |                                                |   |   |                                        |   |   |   |
| Outstanding at March 31, 2011    |   |        | 130     |   |                        | $      | 1.57    |                                                |   |   | —                                     |   |   | $ | — |   |
| Exercisable at March 31, 2011    |   |        | 130     |   |                        | $      | 1.57    |                                                |   |   | —                                     |   |   |   | — |   |

| Note 3  | FINANCIAL INSTRUMENTS |
|--------------|-----------------------|

| Note 4  | INVENTORIES |
|--------------|-------------|

----

| Note 5  | LOSS PER COMMON SHARE |
|--------------|-----------------------|

| Note 6  | SUPPLEMENTAL CASH FLOW INFORMATION |
|--------------|------------------------------------|

|                                                                           |   | Nine months endedMarch 31, |   |
|--------------------------------------------------------------------------------|--------|----------------------------|--------|
|                                                                           |   | 2011                       |   |   | 2010 |   |
| Supplemental disclosure of cash flow information:                              |   |                       |   |   |   |   |
|                                                                           |   |                       |   |   |   |   |
| Cash paid for interest                                                         |   | $                          | 18     |   |   | $ | 85 |   |
|                                                                           |   |                       |   |   |   |   |   |   |
| Supplemental schedule of non cash financing activities:                        |   |                       |   |   |   |   |   |   |
| Issuance of common stock for dividends on Series J convertible preferred stock |   | $                          | 1,065  |   |   | $ | 710 |   |

| Note 7  | 8% SERIES J CONVERTIBLE PREFERRED STOCK |
|--------------|-----------------------------------------|

| Note 8  | SEGMENT REPORTING |
|--------------|-------------------|

| Note 9  | COMMITMENTS AND CONTINGENCIES |
|--------------|-------------------------------|

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|   | · | The Company maintains allowances for uncollectible accounts receivable for estimated losses resulting from the inability of its customers to make required payments.  If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. |
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|   | · | The Company carries inventories at the lower of cost or estimated net realizable value.  If actual market conditions are less favorable than those projected by management, write-downs may be required. |
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|   | · | Property, equipment, patents, trademarks and other intangible assets owned by the Company are depreciated or amortized over their estimated useful lives.  Useful lives are based on management’s estimates over the period that such assets will generate revenue.  Intangible assets with definite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.  Future adverse changes in market conditions or poor operating results of underlying capital investments or intangible assets could result in losses or an inability to recover the carrying value of such assets, thereby possibly requiring an impairment charge in the future. |
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|   | · | The Company accounts for its stock-based compensation arrangements in accordance with the provisions of ASC 718 - Compensation-Stock Compensation. Stock-based employee compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the requisite service period. The Company has no awards with market or performance conditions. The valuation provisions apply to new awards and to awards that were outstanding on the effective date and subsequently modified or cancelled. |
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|   | (a) | Exhibits |
|--------|-----|----------|

| 31.1 | Certification of the President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.  |
|------|------------------------------------------------------------------------------------------------------------------------|
| 31.2 | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                |
| 32.1 | Certifications of the President and Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.2 | Certifications of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.               |

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| NUTRITION 21, INC. |
|--------------------|
| Registrant         |

| By:    | /s/ Michael A. Zeher          |
|--------|-------------------------------|
|   | Michael A. Zeher              |
|   | President and                 |
|   | Chief Executive Officer       |
|   | (Principal Executive Officer) |

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