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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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FORM 10-Q



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QUARTERLY REPORT

pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2007

001-33635

(Commission file number)



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CARDIUM THERAPEUTICS, INC.

(Exact
name of registrant as specified in its charter)



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|                         |  |                                  
|------------------------ |  | ---------------------------------
|Delaware                 |  | 27-0075787                       
|(State of incorporation) |  | (IRS Employer Identification No.)



|                                                                |  |                                
|--------------------------------------------------------------- |  | -------------------------------
|3611 Valley Centre Drive, Suite 525 San Diego, California 92130 |  | (858) 436-1000                 
|(Address of principal executive offices)                        |  | (Registrant's telephone number)



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Indicate by check mark whether Cardium Therapeutics, Inc. (Cardium) (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that Cardium was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes ̈No

Indicate by check mark whether Cardium is a
large accelerated filer, an accelerated filer, or a non-accelerated filer (as defined in Rule 12b-2 of the Exchange Act).

Large accelerated
filer ̈Accelerated filer ̈Non-accelerated filer  x

Indicate by check mark
whether Cardium is a shell company (as defined in Rule 12b-2 of the Exchange Act.): ̈Yes    x  No

As of August 10, 2007 40,926,254 shares of
Cardium's common stock were outstanding.



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##### Table of Contents

TABLE OF CONTENTS



|           |  |                                                                                       |  |     
|---------- |  | ------------------------------------------------------------------------------------- |  | ----
|           |  |                                                                                       |  | Page
|PART I     |  | FINANCIAL INFORMATION                                                                 |  | 1   
|           |  |                                                                                      
|Item 1.    |  | Financial Statements (Unaudited)                                                      |  | 1   
|           |  |                                                                                      
|           |  | Condensed Consolidated Balance Sheets                                                 |  | 1   
|           |  | Condensed Consolidated Statements of Operations                                       |  | 2   
|           |  | Condensed Consolidated Statements of Cash Flows                                       |  | 3   
|           |  | Notes to Condensed Consolidated Financial Statements                                  |  | 4   
|           |  |                                                                                      
|Item 2.    |  | Management's Discussion and Analysis of Financial Condition and Results of Operations |  | 9   
|           |  |                                                                                      
|Item 3.    |  | Quantitative and Qualitative Disclosures About Market Risk                            |  | 13  
|           |  |                                                                                      
|Item 4.    |  | Controls and Procedures                                                               |  | 14  
|           |  |                                                                                      
|PART II    |  | OTHER INFORMATION                                                                     |  | 14  
|           |  |                                                                                      
|Item 1.    |  | Legal Proceedings                                                                     |  | 14  
|           |  |                                                                                      
|Item 1A.   |  | Risk Factors                                                                          |  | 14  
|           |  |                                                                                      
|Item 2.    |  | Unregistered Sales of Equity Securities and Use of Proceeds                           |  | 15  
|           |  |                                                                                      
|Item 3.    |  | Defaults Upon Senior Securities                                                       |  | 15  
|           |  |                                                                                      
|Item 4.    |  | Submission of Matters to a Vote of Security Holders                                   |  | 15  
|           |  |                                                                                      
|Item 5.    |  | Other Information                                                                     |  | 15  
|           |  |                                                                                      
|Item 6.    |  | Exhibits                                                                              |  | 15  
|           |  |                                                                                      
|SIGNATURES |  |                                                                                       |  | 20  



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##### Table of Contents

PART I  FINANCIAL INFORMATION



|ITEM 1. | FINANCIAL STATEMENTS
|------- | --------------------

CARDIUM THERAPEUTICS, INC.

(a development stage company)

Condensed Consolidated Balance Sheets



|                                                                                                                                                       |  |               |             |   |                   |   |             |  
|------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------- | ----------- | - | ----------------- | - | ----------- | -
|                                                                                                                                                       |  | June 30, 2007 |             |   | December 31, 2006 |  
|                                                                                                                                                       |  | (Unaudited)   |             |   |                   |  
|Assets                                                                                                                                                 |  |               |             |   |                   |   |             |  
|Current assets:                                                                                                                                        |  |               |             |   |                   |   |             |  
|Cash and cash equivalents                                                                                                                              |  | $             | 15,045,579  |   |                   | $ | 5,931,123   |  
|Accounts receivable                                                                                                                                    |  |               | 171,597     |   |                   |   | 275,590     |  
|Inventory                                                                                                                                              |  |               | 1,129,636   |   |                   |   | 857,034     |  
|Prepaid expenses                                                                                                                                       |  |               | 418,623     |   |                   |   | 654,448     |  
|                                                                                                                                                       |  |               |             |   |                   |   |             |  
|Total current assets                                                                                                                                   |  |               | 16,765,435  |   |                   |   | 7,718,195   |  
|                                                                                                                                                       |  |               |             |   |                   |   |             |  
|                                                                                                                                                       |  |              
|Property and equipment, net                                                                                                                            |  |               | 1,416,344   |   |                   |   | 791,277     |  
|Patented technology, net                                                                                                                               |  |               | 4,935,570   |   |                   |   | 5,327,648   |  
|Intangibles, net                                                                                                                                       |  |               | 206,330     |   |                   |   | 228,338     |  
|Deposits                                                                                                                                               |  |               | 150,139     |   |                   |   | 51,965      |  
|                                                                                                                                                       |  |               |             |   |                   |   |             |  
|Total assets                                                                                                                                           |  | $             | 23,473,818  |   |                   | $ | 14,117,423  |  
|                                                                                                                                                       |  |               |             |   |                   |   |             |  
|                                                                                                                                                       |  |              
|Liabilities and Stockholders' Equity                                                                                                                   |  |               |             |   |                   |   |             |  
|Current liabilities:                                                                                                                                   |  |               |             |   |                   |   |             |  
|Accounts payable                                                                                                                                       |  | $             | 2,259,030   |   |                   | $ | 989,021     |  
|Accrued liabilities                                                                                                                                    |  |               | 1,014,988   |   |                   |   | 1,975,047   |  
|                                                                                                                                                       |  |               |             |   |                   |   |             |  
|Total liabilities                                                                                                                                      |  |               | 3,274,018   |   |                   |   | 2,964,068   |  
|                                                                                                                                                       |  |               |             |   |                   |   |             |  
|                                                                                                                                                       |  |              
|Commitments and contingencies                                                                                                                          |  |               |             |   |                   |   |             |  
|                                                                                                                                                       |  |              
|Stockholders' equity:                                                                                                                                  |  |               |             |   |                   |   |             |  
|Common stock, $0.0001 par value; 200,000,000 shares authorized; issued and outstanding 40,926,254 at June 30, 2007 and 32,190,804 at
December 31, 2006 |  |               | 4,093       |   |                   |   | 3,218       |  
|Additional paid-in capital                                                                                                                             |  |               | 56,475,557  |   |                   |   | 35,188,957  |  
|Deficit accumulated during development stage                                                                                                           |  |               | (36,279,850 | ) |                   |   | (24,038,820 | )
|                                                                                                                                                       |  |               |             |   |                   |   |             |  
|Total stockholders' equity                                                                                                                             |  |               | 20,199,800  |   |                   |   | 11,153,355  |  
|                                                                                                                                                       |  |               |             |   |                   |   |             |  
|Total liabilities and stockholders' equity                                                                                                             |  | $             | 23,473,818  |   |                   | $ | 14,117,423  |  
|                                                                                                                                                       |  |               |             |   |                   |   |             |  

See accompanying notes, which are an integral part of these financial statements.



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##### Table of Contents

CARDIUM THERAPEUTICS, INC.

(a development stage company)

Condensed Consolidated Statements of Operations

(Unaudited)



|                                                        |  |                             |            |   |                           |   |            |                                                          |  |   |             |   |  |   |            |   |  |   |             |  
|------------------------------------------------------- |  | --------------------------- | ---------- | - | ------------------------- | - | ---------- | -------------------------------------------------------- |  | - | ----------- | - |  | - | ---------- | - |  | - | ----------- | -
|                                                        |  | Three Months Ended June 30, |            |   | Six Months Ended June 30, |   |            | Period
fromDecember 22, 2003(Inception) to June 30, 2007 | 
|                                                        |  | 2007                        |            |   | 2006                      |   |            | 2007                                                     |  |   | 2006        |   | 
|Revenues                                                |  | $                           | 229,472    |   |                           | $ | 209,438    |                                                          |  | $ | 538,803     |   |  | $ | 248,780    |   |  | $ | 1,294,940   |  
|                                                        |  |                             |            |   |                          
|Cost of goods sold                                      |  |                             | 258,177    |   |                           |   | 228,490    |                                                          |  |   | 504,742     |   |  |   | 281,818    |   |  |   | 1,458,936   |  
|                                                        |  |                             |            |   |                           |   |            |                                                          |  |   |             |   |  |   |            |   |  |   |             |  
|Gross (loss) profit                                     |  |                             | (28,705    | ) |                           |   | (19,052    | )                                                        |  |   | 34,061      |   |  |   | (33,038    | ) |  |   | (163,996    | )
|                                                        |  |                             |            |   |                           |   |            |                                                          |  |   |             |   |  |   |            |   |  |   |             |  
|Operating expenses                                      |  |                             |            |   |                           |   |            |                                                          |  |   |             |   |  |   |            |   |  |   |             |  
|                                                        |  |                             |            |   |                          
|Research and development                                |  |                             | 3,415,213  |   |                           |   | 423,175    |                                                          |  |   | 6,658,079   |   |  |   | 466,513    |   |  |   | 19,042,403  |  
|Selling, general and administrative                     |  |                             | 2,978,448  |   |                           |   | 3,134,600  |                                                          |  |   | 5,517,549   |   |  |   | 5,800,021  |   |  |   | 17,163,328  |  
|Amortization - intangibles                              |  |                             | 207,043    |   |                           |   | 207,575    |                                                          |  |   | 414,086     |   |  |   | 258,902    |   |  |   | 1,087,316   |  
|                                                        |  |                             |            |   |                           |   |            |                                                          |  |   |             |   |  |   |            |   |  |   |             |  
|Total operating expenses                                |  |                             | 6,600,704  |   |                           |   | 3,765,350  |                                                          |  |   | 12,589,714  |   |  |   | 6,525,436  |   |  |   | 37,293,047  |  
|                                                        |  |                             |            |   |                           |   |            |                                                          |  |   |             |   |  |   |            |   |  |   |             |  
|                                                        |  |                             |            |   |                          
|Interest income                                         |  |                             | 228,228    |   |                           |   | 211,364    |                                                          |  |   | 314,623     |   |  |   | 431,145    |   |  |   | 1,177,193   |  
|                                                        |  |                             |            |   |                           |   |            |                                                          |  |   |             |   |  |   |            |   |  |   |             |  
|Net loss                                                |  | $                           | (6,401,181 | ) |                           | $ | (3,573,038 | )                                                        |  | $ | (12,241,030 | ) |  | $ | (6,127,329 | ) |  | $ | (36,279,850 | )
|                                                        |  |                             |            |   |                           |   |            |                                                          |  |   |             |   |  |   |            |   |  |   |             |  
|                                                        |  |                             |            |   |                          
|Loss per common share                                   |  |                             |            |   |                           |   |            |                                                          |  |   |             |   |  |   |            |   |  |   |             |  
|Net loss per common share  basic and diluted           |  | $                           | (0.16      | ) |                           | $ | (0.11      | )                                                        |  | $ | (0.33       | ) |  | $ | (0.20      | ) |  |   |             |  
|                                                        |  |                             |            |   |                           |   |            |                                                          |  |   |             |   |  |   |            |   |  |   |             |  
|                                                        |  |                             |            |   |                          
|Weighted average shares outstanding - basic and diluted |  |                             | 40,914,902 |   |                           |   | 31,750,138 |                                                          |  |   | 37,656,592  |   |  |   | 30,824,556 |   |  |   |             |  
|                                                        |  |                             |            |   |                           |   |            |                                                          |  |   |             |   |  |   |            |   |  |   |             |  

See accompanying notes, which are an integral part of these financial statements.



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CARDIUM THERAPEUTICS, INC.

(a development stage company)

Condensed Consolidated Statements of Cash Flows

(Unaudited)



|                                                                               |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|------------------------------------------------------------------------------ |  | ------------------------- | ----------- | - | -------------------------------------------------------- | - | ---------- | - |  | - | ----------- | -
|                                                                               |  | Six Months Ended June 30, |             |   | Period
fromDecember 22, 2003(Inception) To June 30, 2007 |  
|                                                                               |  | 2007                      |             |   | 2006                                                     |   |           
|Cash Flows From Operating Activities                                           |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|Net loss                                                                       |  | $                         | (12,241,030 | ) |                                                          | $ | (6,127,329 | ) |  | $ | (36,279,850 | )
|Adjustments to reconcile net loss to net cash used in operating activities:    |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|Depreciation and amortization                                                  |  |                           | 175,500     |   |                                                          |   | 97,162     |   |  |   | 435,187     |  
|Amortization - intangibles                                                     |  |                           | 414,086     |   |                                                          |   | 258,902    |   |  |   | 1,087,316   |  
|Common stock issued for services and reimbursement of expenses                 |  |                           |            |   |                                                          |   |           |   |  |   | 41,500      |  
|Stock based compensation expense                                               |  |                           | 1,160,801   |   |                                                          |   | 715,102    |   |  |   | 2,795,607   |  
|In-process purchased technology                                                |  |                           |            |   |                                                          |   |           |   |  |   | 1,027,529   |  
|Changes in operating assets and liabilities, excluding effects of acquisition: |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|Accounts receivable                                                            |  |                           | 103,993     |   |                                                          |   | 3,971      |   |  |   | 4,997       |  
|Inventory                                                                      |  |                           | (272,602    | ) |                                                          |   | (92,625    | ) |  |   | (1,032,972  | )
|Prepaid expenses                                                               |  |                           | 235,825     |   |                                                          |   | (86,371    | ) |  |   | (400,075    | )
|Deposits                                                                       |  |                           | (98,174     | ) |                                                          |   | (22,324    | ) |  |   | (123,478    | )
|Accounts payable                                                               |  |                           | 1,270,009   |   |                                                          |   | 118,652    |   |  |   | 2,210,600   |  
|Accrued liabilities                                                            |  |                           | (960,059    | ) |                                                          |   | (219,184   | ) |  |   | 111,337     |  
|                                                                               |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|Net cash used in operating activities                                          |  |                           | (10,211,651 | ) |                                                          |   | (5,354,044 | ) |  |   | (30,122,302 | )
|                                                                               |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|                                                                               |  |                           |            
|Cash Flows From Investing Activities                                           |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|                                                                               |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|In-process technology purchased from Tissue Repair Company                     |  |                           |            |   |                                                          |   |           |   |  |   | (1,000,000  | )
|Purchases of property and equipment                                            |  |                           | (800,567    | ) |                                                          |   | (171,731   | ) |  |   | (1,651,462  | )
|                                                                               |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|Net cash used in investing activities                                          |  |                           | (800,567    | ) |                                                          |   | (171,731   | ) |  |   | (2,651,462  | )
|                                                                               |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|                                                                               |  |                           |            
|Cash Flows From Financing Activities                                           |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|                                                                               |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|Proceeds from officer loan                                                     |  |                           |            |   |                                                          |   |           |   |  |   | 62,882      |  
|Cash acquired in a merger or an acquisition                                    |  |                           |            |   |                                                          |   | 51,800     |   |  |   | 1,551,800   |  
|Proceeds from the exercise of warrants, net                                    |  |                           | (3          | ) |                                                          |   |           |   |  |   | 498,595     |  
|Proceeds from the sale of common stock, net                                    |  |                           | 20,126,677  |   |                                                          |   |           |   |  |   | 45,706,066  |  
|                                                                               |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|Net cash provided by financing activities                                      |  |                           | 20,126,674  |   |                                                          |   | 51,800     |   |  |   | 47,819,343  |  
|                                                                               |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|                                                                               |  |                           |            
|Net increase (decrease) in cash and cash equivalents                           |  |                           | 9,114,456   |   |                                                          |   | (5,473,975 | ) |  |   | 15,045,579  |  
|Cash and cash equivalents at beginning of period                               |  |                           | 5,931,123   |   |                                                          |   | 21,787,869 |   |  |   |            |  
|                                                                               |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|Cash and cash equivalents at end of period                                     |  | $                         | 15,045,579  |   |                                                          | $ | 16,313,894 |   |  | $ | 15,045,579  |  
|                                                                               |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|                                                                               |  |                           |            
|Non-Cash Activity:                                                             |  |                           |             |   |                                                          |   |            |   |  |   |             |  
|Subscription receivable for common shares                                      |  | $                         |            |   |                                                          | $ |           |   |  | $ | 17,000      |  
|                                                                               |  |                           |            
|Common stock issued for services                                               |  | $                         |            |   |                                                          | $ |           |   |  | $ | 62,882      |  
|Net assets acquired for the issuance of common stock (exclusive of cash)       |  | $                         |            |   |                                                          | $ | 5,824,000  |   |  | $ | 5,824,000   |  

See accompanying notes, which are an integral part of these financial statements.



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CARDIUM THERAPEUTICS, INC.

(a development stage company)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Operations and Liquidity

Operations

Cardium Therapeutics, Inc. (the
Company, Cardium, we, our and us) was organized in Delaware in December 2003. We are a medical technology company primarily focused on the development, manufacture and sale of innovative
products for cardiovascular and related indications. We have initially focused on acquiring fallen angel opportunities having potential unrealized value. In October 2005, we acquired a portfolio of biologic growth factors and related
delivery techniques from the Schering AG Group, Germany, which we plan to develop as cardiovascular-directed growth factor therapeutics for potential use by interventional cardiologists as a one-time treatment to promote and stimulate the growth of
collateral circulation in the hearts of patients with ischemic conditions such as recurrent angina. In March 2006, we acquired the technologies and products of Innercool Therapies, Inc., a medical technology company in the emerging field of
therapeutic hypothermia, or patient temperature modulation, whose systems and products are designed to rapidly and controllably cool the body to reduce cell death and damage following acute ischemic events such as cardiac arrest and stroke, and to
potentially lessen or prevent associated injuries such as adverse neurologic outcomes. In August 2006, we acquired rights to the assets and technologies of Tissue Repair Company, a company focused on the development of growth factor therapeutics for
the potential treatment of tissue wounds such as chronic diabetic wounds, and whose product candidate, ExcellarateTMis initially being developed as a
single administration for the treatment of non-healing, neuropathic diabetic foot ulcers. Innercool Therapies and Tissue Repair Company are each operated as a wholly-owned subsidiary of Cardium.

We are a development stage company in the initial stage of our operations. We have yet to generate positive cash flows from operations, and are essentially dependent on
debt and equity funding to finance our operations. Before October 2005, cash requirements were funded by loans from executive officers. In October 2005, we closed a private placement of 19,325,651 shares of our common stock at a purchase price of
$1.50 per share and received net proceeds of $25,542,389. In connection with the offering, we completed a reverse merger, whereby Cardium merged with Aries Ventures Inc. (Aries), a publicly-traded company. As a result of these
transactions, the stockholders of Cardium became the controlling stockholders of Aries. Accordingly, the acquisition of Cardium by Aries was a reverse merger. The historical financial results before the reverse merger on October 20, 2005, are
those of Cardium. Aries results of operations are included in Cardiums financial results beginning October 20, 2005.

In January 2006,
Aries was merged with and into Cardium, with Cardium as the surviving entity and the successor issuer to Aries. As a result, we are now in our present form a publicly-traded, Delaware corporation named Cardium Therapeutics, Inc.

On March 9, 2007, we closed a private placement of 8,636,000 shares of common stock at a purchase price of $2.50 per share and received net proceeds of $20,126,677.
Investors received five-year warrants to buy up to 35% of the number of shares of common stock purchased in the private placement, at an exercise price of $3.75 per share. Warrants to purchase approximately 3,022,600 shares of common stock, in the
aggregate, were issued to such investors.

Liquidity

Since inception, our operations have consumed substantial amounts of cash and we have had only limited revenues. As a result, we anticipate that the negative cash flow from operations will continue. On March 9, 2007, we completed a
private placement of our common stock that resulted in net proceeds to the Company of approximately $20 million. As of June 30, 2007, we had $15,046,000 in cash and cash equivalents. We believe we would be able to fund required operations for
the next twelve months; however, we would also like to accelerate the study of our



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Generx and Excellarate product candidates and at the same time actively promote the upcoming launches of InnerCools CoolBlue and RapidBlue product
lines, for which we plan to raise additional financing through the sale of equity securities, debt financing and/or strategic licensing agreements. Such additional financing may not be available on terms that are desirable or acceptable to us, or at
all. If we do not raise such funds, we will not be able to accelerate our product development activities. This may negatively impact our business plans.

Note 2. Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

Our principal activities are expected to focus on the commercialization of our licensed technologies, other technologies and the expansion of our existing products. The
accompanying financial statements have been prepared in accordance with Statement of Financial Accounting Standard (SFAS) No. 7, Development Stage Enterprises.

The accompanying interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the
United States of America for interim financial information and pursuant to the instructions to Form 10-Q and applicable rules and regulations. Certain information and footnote disclosures normally included in financial statements prepared in
accordance with U.S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. In management's opinion, all adjustments necessary for a fair presentation of the financial position, results of
operations and cash flows have been included and are of a normal, recurring nature. The results of operations for the three and six months ended June 30, 2007 are not necessarily indicative of the operating results for the full fiscal year or
any future periods.

You should read the accompanying condensed consolidated financial statements and these notes, which are an integral part of the
financial statements, in conjunction with our audited financial statements included in our Annual Report on Form 10-KSB for the year ended December 31, 2006 ("2006 Annual Report"). The accounting policies used to prepare the financial
statements included in this report are the same as those described in the notes to the consolidated financial statements in our 2006 Annual Report unless otherwise noted below.

Loss Per Common Share

We compute earnings per share in accordance with SFAS No. 128, Earnings Per
Share. SFAS No. 128 requires dual presentation of basic and diluted earnings per share.

Basic loss per common share is computed by dividing net
loss by the weighted average number of common shares outstanding during the period. Diluted loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding, plus the issuance of common shares, if
dilutive, resulting from the exercise of outstanding stock options and warrants. These potentially dilutive securities were not included in the calculation of loss per common share for the three and six months ended June 30, 2007 and 2006
because we incurred a loss during such periods and thus their inclusion would have been anti-dilutive. Accordingly, basic and diluted loss per common share is the same for all periods presented. The common stock issued and outstanding with respect
to the stockholders of Aries has been included since October 20, 2005, the effective date of the reverse merger.

Potentially dilutive securities not
included in diluted loss per common share consisted of outstanding stock options and warrants to acquire 11,173,533 and 7,005,319 shares as of June 30, 2007 and 2006, respectively.

Stock-Based Compensation

Effective January 1, 2006, we adopted the fair value recognition provisions of SFAS
No. 123 (revised 2004), Share-Based Payment (SFAS 123R), using the modified prospective transition method. Under the transition method, stock-based compensation expense is recognized (i) for all stock-based compensation awards
granted before, but not yet vested as of, January 1, 2006, based on the grant date fair value estimated in accordance with the original provision of SFAS No. 123, Accounting for Stock-Based Compensation (SFAS 123), and
(ii) for all stock-based compensation awards granted after January 1, 2006, based on the grant date fair value estimated in accordance with the provisions of SFAS 123R.



5



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##### Table of Contents

We recognize stock-based compensation costs on a straight-line basis over the requisite service period of the award,
which is generally the vesting term of the award. Total stock-based compensation expense included in the condensed consolidated statements of operations was $545,965 and $1,160,801 for the three and six months ended June 30, 2007, respectively.
$530,486 was recorded as a component of research and development expenses and $630,315 was recorded as a component of general and administrative expenses. For the three and six months ended June 30, 2006, total stock-based compensation expense
included in the condensed consolidated statements of operations was $438,031 and $715,102, respectively, and was recorded as a component of general and administrative expense. As of June 30, 2007, the Company had $4,690,442 of unvested
stock-based compensation at fair value remaining to be expensed ratably over the period July 2007 through June 2016.

The fair value of the stock options
and similar stock-based compensation granted is estimated on the date of grant using the Black-Scholes option valuation model. The Black-Scholes option valuation model was developed for use in estimating the fair value of traded options that have no
vesting restrictions and are fully transferable. Option valuation models require the input of highly subjective assumptions, including expected life and stock price volatility. The following weighted-average assumptions were used:



|                        |  |                                    |   |  |      |  
|----------------------- |  | ---------------------------------- | - |  | ---- | -
|                        |  | For the Three MonthsEnded June 30, |  
|                        |  | 2007                               |   |  | 2006 |  
|Dividend yield          |  | 0                                  | % |  | 0    | %
|Expected life (years)   |  | 5.25                               |   |  | 5.25 |  
|Risk-free interest rate |  | 4.75                               | % |  | 5.00 | %
|Volatility              |  | 76                                 | % |  | 66   | %
|                        | 
|                        |  | For the Six MonthsEnded June 30,   |  
|                        |  | 2007                               |   |  | 2006 |  
|Dividend yield          |  | 0                                  | % |  | 0    | %
|Expected life (years)   |  | 5.25                               |   |  | 5.25 |  
|Risk-free interest rate |  | 4.75                               | % |  | 4.67 | %
|Volatility              |  | 76                                 | % |  | 66   | %

Income Taxes

Effective January 1, 2007, the Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes  an interpretation of FASB Statement No. 109 (FIN 48). FIN
48 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be
more-likely-than-not to be sustained upon examination by taxing authorities. Differences between tax positions taken or expected to be taken in a tax return and the benefit recognized and measured pursuant to the interpretation are referred to as
unrecognized benefits. A liability is recognized (or amount of net operating loss carry forward or amount of tax refundable is reduced) for an unrecognized tax benefit because it represents an enterprises potential future
obligation to the taxing authority for a tax position that was not recognized as a result of applying the provisions of FIN 48.

In accordance with FIN 48,
interest costs related to unrecognized tax benefits are required to be calculated (if applicable) and would be classified as Interest expense, net. Penalties, if incurred, would be recognized as a component of General and
administrative expenses.

The Company files income tax returns in the United States (federal) and in various state and local jurisdictions. In most
instances, the Company is no longer subject to federal, state and local income tax examinations by tax authorities for years prior to 2003.



6



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##### Table of Contents

The adoption of the provisions of FIN 48 did not have a material impact on the Companys condensed consolidated
financial position and results of operations. As of June 30, 2007, no liability for unrecognized tax benefits was required to be recorded.

The
Company recognized a deferred tax asset of approximately $ 14 million as of June 30, 2007, primarily relating to net operating loss carryforwards of approximately $ 33 million (which excludes net operating losses of $71 million that
represent pre merger losses for which the use of these losses is limited in accordance with Section 382 of the Internal Revenue Code of 1986, as amended), available to offset future taxable income through 2027.

The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become
deductible. The Company considers projected future taxable income and tax planning strategies in making this assessment. At present, the Company does not have a sufficient history of income to conclude that it is more-likely-than-not that the
Company will be able to realize all of its tax benefits in the near future and therefore a valuation allowance was established in the full value of the deferred tax asset.

A valuation allowance will be maintained until sufficient positive evidence exists to support the reversal of any portion or all of the valuation. Should the Company continue to be profitable in future periods with
supportable trends, the valuation allowance will be reversed accordingly.

Note 3. Property and Equipment

Property and equipment consisted of the following:



|                                          |  |               |           |   |                   |   |           |  
|----------------------------------------- |  | ------------- | --------- | - | ----------------- | - | --------- | -
|                                          |  | June 30, 2007 |           |   | December 31, 2006 |  
|Computer and telecommunication equipment  |  | $             | 577,458   |   |                   | $ | 528,447   |  
|Machinery and equipment                   |  |               | 333,119   |   |                   |   | 135,225   |  
|Office equipment                          |  |               | 27,595    |   |                   |   | 27,595    |  
|Instrumentation                           |  |               | 104,553   |   |                   |   | 84,000    |  
|Construction in progress                  |  |               | 524,734   |   |                   |   |          |  
|Office furniture and equipment            |  |               | 284,073   |   |                   |   | 275,697   |  
|                                          |  |               |           |   |                   |   |           |  
|                                          |  |               | 1,851,532 |   |                   |   | 1,050,964 |  
|Accumulated depreciation and amortization |  |               | (435,188  | ) |                   |   | (259,687  | )
|                                          |  |               |           |   |                   |   |           |  
|Property and equipment, net               |  | $             | 1,416,344 |   |                   | $ | 791,277   |  
|                                          |  |               |           |   |                   |   |           |  

Depreciation and amortization of property and equipment totaled $93,888 and $175,500 for the three and six months
ended June 30, 2007, respectively. For the three and six month ended June 30, 2006 depreciation of property and equipment totaled $60,988 and $97,162, respectively, and $435,187 for the period from December 22, 2003 (date of
inception) through June 30, 2007.

Note 4. Accrued Liabilities

Accrued Liabilities consisted of the following:



|                             |  |              |           |                  |   |          
|---------------------------- |  | ------------ | --------- | ---------------- | - | ---------
|                             |  | June 30,2007 |           | December 31,2006
|Accrued consulting expense   |  | $            |          |                  | $ | 37,500   
|Accrued legal expenses       |  |              | 72,226    |                  |   | 70,933   
|Accrued expenses other       |  |              | 484,857   |                  |   | 462,470  
|Accrued payroll and benefits |  |              | 457,905   |                  |   | 1,404,144
|                             |  |              |           |                  |   |          
|Total                        |  | $            | 1,014,988 |                  | $ | 1,975,047



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Note 5. Employment Agreements

The two executive founders of Cardium entered into formal two-year employment agreements with the Company on October 20, 2005. The agreements provided for their combined base annual compensation in an amount initially equal to
$675,000, as such amount may be adjusted from time to time by the Company's Board of Directors. Effective as of March 16, 2007, the Compensation Committee of the Board of Directors approved an increase in their combined base annual compensation
to $708,750. In the event a founder is terminated without cause, the founder shall be entitled to severance pay in an amount equal to the greater of the remaining term of the contract, or one year.

Note 6. Stockholders' Equity

Common Stock

On March 9, 2007, we closed a private placement of 8,636,000 shares of common stock at a purchase price of $2.50 per share and received net proceeds of approximately
$20 million. Investors received five-year warrants to buy up to 35% of the number of shares of common stock purchased in the private placement, at an exercise price of $3.75 per share. Warrants to purchase approximately 3,022,600 shares of common
stock, in the aggregate, were issued to such investors.

In connection with the private placement, we incurred selling commissions, and expenses payable to
the placement agent, totaling approximately $1,478,350, and legal, accounting and other fees and expenses totaling approximately $100,000. In addition, a five-year warrant to purchase 518,160 shares of our common stock was issued to the placement
agent at an exercise price of $ 3.78 per share.

Option Activity

We have an equity incentive plan that was established in 2005 under which 5,665,856 shares of our common stock have been reserved for issuance to employees, non-employee directors and consultants of the Company.

During the six months ended June 30, 2007, 235,000 options or warrants were issued to employees, non-employee directors or consultants of the
Company.

The following is a summary of stock option activity under our equity incentive plan and warrants issued outside of the plan to employees and
consultants, which are included below, during the six months ended June 30, 2007:



|                                       |  |                             |   |  |                              |      |                                                     |     |                         |   |          
|-------------------------------------- |  | --------------------------- | - |  | ---------------------------- | ---- | --------------------------------------------------- | --- | ----------------------- | - | ---------
|                                       |  | Number ofOptions orWarrants |   |  | WeightedAverageExercisePrice |      | WeightedAverage RemainingContractualLife (in
years) |     | AggregateIntrinsicValue
|Balance outstanding, December 31, 2006 |  | 5,304,000                   |   |  | $                            | 2.27 |                                                     | 8.4 |                         |   |         
|Granted                                |  | 235,000                     |   |  |                              | 2.95 |                                                     | 6.8 |                         |   |         
|Exercised                              |  |                            |   |  |                              |     |                                                     |    |                         |   |         
|Expired                                |  |                            |   |  |                              |     |                                                     |    |                         |   |         
|Cancelled                              |  | (37,050                     | ) |  |                              | 2.36 |                                                     |    |                         |   |         
|                                       |  |                             |   |  |                              |      |                                                     |     |                         |   |          
|Balance outstanding, June 30, 2007     |  | 5,501,950                   |   |  | $                            | 2.17 |                                                     | 7.8 |                         | $ | 1,819,043
|                                       |  |                             |   |  |                              |      |                                                     |     |                         |   |          
|Exercisable, June 30, 2007             |  | 1,961,967                   |   |  |                              | 2.18 |                                                     |     |                         |   |          
|                                       |  |                             |   |  |                              |      |                                                     |     |                         |   |          



8



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##### Table of Contents

The following is a summary of unvested options and warrants as of June 30, 2007, and changes during the six months
ended June 30, 2007.



|                                                |  |                             |   |  |                                     |     
|----------------------------------------------- |  | --------------------------- | - |  | ----------------------------------- | ----
|                                                |  | Number ofOptions orWarrants |   |  | WeightedAverageGrant DateFair Value
|Unvested balance outstanding, December 31, 2006 |  | 4,234,053                   |   |  | $                                   | 1.40
|Granted                                         |  | 235,000                     |   |  |                                     | 2.95
|Vested                                          |  | (892,020                    | ) |  |                                     | 1.63
|Expired                                         |  |                            |   |  |                                     |    
|Cancelled                                       |  | (37,050                     | ) |  |                                     | 2.36
|                                                |  |                             |   |  |                                     |     
|Unvested balance outstanding, June 30, 2007     |  | 3,539,983                   |   |  | $                                   | 1.33
|                                                |  |                             |   |  |                                     |     

Warrants

On
March 9, 2007, we closed a private placement of 8,636,000 shares of common stock at a purchase price of $2.50 per share and received net proceeds of $20,126,677. Investors received five-year warrants to buy up to 35% of the number of shares of
common stock purchased in the private placement, at an exercise price of $3.75 per share. Warrants to purchase approximately 3,022,600 shares of common stock, in the aggregate, were issued to such investors. In addition, a five-year warrant to
purchase 518,160 shares of our common stock was issued to the placement agent at an exercise price of $ 3.78 per share.

The following table
summarizes warrant activity for the six months ended June 30, 2007:



|                                       |  |                   |   |  |                |             |                                                     |      
|-------------------------------------- |  | ----------------- | - |  | -------------- | ----------- | --------------------------------------------------- | -----
|                                       |  | Number ofWarrants |   |  | Exercise Price |             | WeightedAverage RemainingContractualLife (in
years)
|Balance outstanding, December 31, 2006 |  | 2,307,853         |   |  | $              | 1.50 -$1.75 |                                                     | 2 - 4
|Warrants issued                        |  | 3,540,760         |   |  |                | 3.75 - 3.78 |                                                     | 4    
|Warrants exercised                     |  | (177,030          | ) |  |                | 1.50        |                                                     | 5    
|Warrants expired                       |  |                  |   |  |                |            |                                                     |     
|Warrants cancelled                     |  |                  |   |  |                | 1.50        |                                                     | 5    
|                                       |  |                   |   |  |                |             |                                                     |      
|Balance outstanding, June 30, 2007     |  | 5,671,583         |   |  | $              | 1.50  3.78 |                                                     | 2 - 5
|                                       |  |                   |   |  |                |             |                                                     |      
|Warrants exercisable at June 30, 2007  |  | 5,671,583         |   |  | $              | 1.50  3.78 |                                                     | 2 - 5
|                                       |  |                   |   |  |                |             |                                                     |      

The table above does not include warrants issued to employees and consultants described and included under
Option Activity" above.



|ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
|------- | ------------------------------------------------------------------------------------

The following discussion and analysis is intended to help you understand our financial condition and results of operations for the three and six months ended June 30, 2007. You should read the following
discussion and analysis together with our unaudited condensed consolidated financial statements and the notes to the condensed



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consolidated financial statements included under Item 1 in this report, as well as the risk factors and other information included in our 2006 Annual
Report and other reports and documents we file with the United States Securities and Exchange Commission (SEC). Our future financial condition and results of operations will vary from our historical financial condition and results of operations
described below.

Executive Overview

The following
overview does not address all of the matters covered in the other sections of this Item 2 or other items in this report or contain all of the information that may be important to our stockholders or the investing public. This overview should be
read in conjunction with the other section of this Item 2 and this report.

We are a medical technology company primarily focused on the
development and commercialization of novel biologic therapeutics and medical devices for cardiovascular and ischemic disease. Building upon our core products and product candidates, our strategic goal is to develop a portfolio of medical products at
various stages of development and secure additional financial resources to commercialize these products in a timely and effective manner. The key elements of our strategy are to:



| |  |  | advance the Phase 3 AWARE clinical study for Generx;
| | - |  | ----------------------------------------------------



| |  |  | initiate a Phase 2b clinical study for Excellarate in the second half of 2007;
| | - |  | ------------------------------------------------------------------------------



| |  |  | accelerate the development and sales of Innercools endovascular patient temperature modulation system and, at the same time, broaden and expand our
therapeutic hypothermia technology into other medical indications and applications;
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | leverage our financial resources and focused corporate infrastructure through the use of contract manufacturers to produce clinical supplies and a contract research
organization to manage or assist planned clinical studies;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | advance the pre-clinical development of Corgentin and potentially seek partnering opportunities for the Corgentin and Genvascor product candidates;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | broaden and expand our product base and financial resources through other corporate development transactions in an attempt to enhance stockholder value, which could
include acquiring other companies or product opportunities and/or securing additional capital; and
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | monetize the economic value of our product portfolio by establishing strategic collaborations at appropriate valuation inflection points.
| | - |  | -----------------------------------------------------------------------------------------------------------------------------------------

We plan to continue to build our business through internal development and external acquisitions. As an emerging public company, we have
initially focused on acquiring undervalued opportunities having unrealized value but which we believe have potential for significant future growth and development or partnering prospects when combined with the skills and perspectives of our
experienced management team.

To the extent our current products and product candidates become successfully advanced, we intend to continue to pursue
opportunistic acquisitions designed to enhance long-term stockholder value. At the same time, as technologies and product candidates are advanced and businesses are built-up, further developed and mature, we may consider various corporate
development transactions to enhance and monetize stockholder value such as corporate partnerings, spin-out transactions and equity distribution.

We
recognize that the practical realities of developing therapeutic products in the current regulatory environment require sizable financial investment. In view of this, we plan to pursue clinical development strategies intended to facilitate
collaborations and partnerships for joint development of our products at appropriate valuation inflection points during their clinical development cycle.

More detailed information about our products, product candidates and our intended efforts to develop our products is included in our 2006 Annual Report.



10



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Critical Accounting Policies and Estimates

The preparation of our financial statements requires that we make estimates and assumptions that affect the amounts reported in our financial statements and their accompanying notes. We have identified certain
policies that we believe are important to the portrayal of our financial condition and results of operations. These policies require the application of significant judgment by our management. We base our estimates on our historical experience,
industry standards, and various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from these estimates under different assumptions or conditions. An adverse effect on our financial condition,
changes in financial condition, and results of operations could occur if circumstances change that alter the various assumptions or conditions used in such estimates or assumptions.

Our significant accounting policies are described under Item 7 of our 2006 Annual Report and in the notes to the financial statements included in this report.

Results of Operations

Revenues for the three months ended
June 30, 2007 were $229,000 compared to revenues of $209,000 for the three months ended June 30, 2006. For the six months ended June 30, 2007 revenues were $539,000 compared to revenues for the six months ended June 30, 2006 of
$249,000. The increase in sales for the six months of 2007 when compared to the same period last year was primarily due to our acquisition of Innercool Therapies, Inc. and its Celsius Control System in March 2006. Before March 2006, we had no
products available for sale or use. Thus, the amounts for the six months ended June 30, 2006, reflect only four month of revenues. Cost of goods sold for the three months ended June 30, 2007 were $258,000 compared to $228,000 for the three
months ended June 30, 2006. For the six months ended June 30, 2007 cost of goods sold were $505,000 compared to $282,000 for the six months ended June 30, 2006. The increase in the cost of goods sold is directly related to the
increase in revenues from the Innercool Therapies products which currently account for a significant portion of our revenues. Tissue Repair Company generated $75,000 in grant revenue during the six month period ended June 30, 2007.

Research and development expenses for the three months ended June 30, 2007 were $3,415,000 compared to $423,000 for the same period last year. For the six months
ended June 30, 2007 and 2006 research and development costs were $6,658,000 and $467,000, respectively. The increase of $6.2 million over the same six month period last year was primarily due to our efforts to advance our lead product
candidate, Generx, to a Phase 3 clinical trial (AWARE), to develop and launch a next-generation console for the Celsius Control System, and to advance our Excellarate product candidate acquired in the Tissue Repair Company acquisition to a Phase 2b
clinical study. In the first half of 2006, we classified our clinical staff as general and administrative expense, as they were then focused on the technology transfer from Schering AG Group, Germany. As they have transitioned to development
activities and clinical studies for our product candidates, we now include their related expenses in research and development. Because we did not acquire Innercool Therapies and its Celsius Control System until March 2006, research and development
expenses for the six months ended June 30, 2006 include only four months of expenses related to Innercool Therapies and the development of its products. Similarly, due to the timing of the Tissue Repair Company acquisition in August 2006,
research and development expenses for the three and six months ended June 30, 2006 do not include any expenses related to the development of Tissue Repair Company's products.

Selling, general and administrative expenses for the three months ended June 30, 2007 were $2,978,000 compared to $3,135,000 for the three months ended June 30, 2006. For the six months ended June 30,
2007 and 2006 selling, general and administrative expenses were $5,518,000 and $5,800,000, respectively. The $282,000 decrease in selling, general and administrative expenses from the comparable six month period last year was due in part to a
classification of expenses related to our clinical staff as general and administrative expense, as described above; which was significantly offset by incremental selling, general and administrative expenses related to our acquisitions of Innercool
Therapies and Tissue Repair Company.

Amortization of intangibles for the three months ended June 30, 2007 was $207,000, no change from the $207,000
of amortization recorded in the three months ended June 30, 2006. Amortization expense for the six months ended June 30, 2007 and 2006 was $414,000 and $259,000, respectively. The increase of $155,000 for the six months ended June 30,
2007 compared to the previous year was in connection with our acquisition of Innercool Therapies as we recorded patented technology and other intangibles and is due to the timing of our acquisition of Innercool Therapies in March 2006.



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We derive interest income from the investment of our available cash in various short-term obligations, such as
certificates of deposit, commercial paper and money market funds. Interest income for the three months ended June 30, 2007 was $228,000 compared to $211,000 for the same three month period last year. For the six months ended June 30, 2007
interest income was $315,000 compared to $431,000 for the six months ended June 30, 2006. The $116,000 decrease in interest income for the six months when compared to the same period last year is directly related to the decrease in cash
available for investment as we used the proceeds from our October 2005 private placement to fund operations, partially offset by the investment of the proceeds received from the private placement we completed in March 2007.

Liquidity and Capital Resources

Our primary source of liquidity has
been cash flows from financing activities and in particular proceeds from the sale of our common stock. Net cash provided by financing activities was $20,127,000 for the six months ended June 30, 2007, and was from proceeds we received from the
sale of our common stock, net of issuance costs. Net cash used in operating activities was $10,212,000 for the six months ended June 30, 2007 compared to $5,354,000 for the same six month period last year. The increase in net cash used in
operating activities was due primarily to an increase in expenditures for research and development and the spending associated with adding Innercool Therapies and Tissue Repair Company to our Company. During the six months ended June 30, 2007,
we purchased $801,000 of property and equipment and leasehold improvements for our new Tech Center facility.

Since inception, our operations have consumed
substantial amounts of cash and we have had only limited revenues. As a result, we anticipate that the negative cash flow from operations will continue. On March 9, 2007, we completed a private placement of our common stock that resulted in net
proceeds to the Company of approximately $20 million. As of June 30, 2007, we had $15,046,000 in cash and cash equivalents. We believe we would be able to fund required operations for the next twelve months; however, we would also like to
accelerate the study of our Generx and Excellarate product candidates and at the same time actively promote the upcoming launches of InnerCools CoolBlue and RapidBlue product lines, for which we plan to raise additional financing through the
sale of equity securities, debt financing and/or strategic licensing agreements. Such additional financing may not be available on terms that are desirable or acceptable to us, or at all. If we do not raise such funds, we will not be able to
accelerate our product development activities. This may negatively impact our business plans.

Off-Balance Sheet Arrangements

As of June 30, 2007, we did not have any significant off-balance sheet debt nor did we have any transactions, arrangements, obligations (including contingent
obligations) or other relationships with any unconsolidated entities or other persons that have or are reasonably likely to have a material current or future effect on financial condition, changes in financial condition, results of operations,
liquidity, capital expenditures, capital resources, or significant components of revenue or expenses material to investors. We do have operating lease obligations of $2,249,329 extending through 2011.

Special Note About Forward-Looking Statements

Certain statements in
this report, including information incorporated by reference, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private
Securities Litigation Reform Act of 1995. Forward-looking statements reflect current views about future events and financial performance based on certain assumptions. They include opinions, forecasts, intentions, plans, goals, projections, guidance,
expectations, beliefs or other statements that are not statements of historical fact. Words such as may, will, should, could, would, expects, plans,
believes, anticipates, intends, estimates, approximates, predicts, or projects, or the negative or other variation of such words, and similar expressions may
identify a statement as a forward-looking statement. Any statements that refer to projections of our future financial performance, our anticipated growth and trends in our business, our goals, strategies, focus and plans, and other characterizations
of future events or circumstances, including statements expressing general optimism about future operating results and the development of our products, are forward-looking statements. Forward-looking statements in this report may include statements
about:



| |  |  | future financial and operating results, including our ability to fund future operations;
| | - |  | ----------------------------------------------------------------------------------------



12



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##### Table of Contents

| |  |  | the timing, conduct and outcome of discussions with regulatory agencies, regulatory submissions and clinical trials;
| | - |  | --------------------------------------------------------------------------------------------------------------------



| |  |  | the performance of Innercools Celsius Control SystemTM, GenerxTM, ExcellarateTMand other product candidates and their potential to attract development partners and/or generate revenues;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | our beliefs and opinions about the safety and efficacy of our products and product candidates and the results of our clinical studies and trials;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the development or commercialization of competitive products or medical procedures;
| | - |  | -----------------------------------------------------------------------------------



| |  |  | our development of new products and product candidates;
| | - |  | -------------------------------------------------------



| |  |  | our growth, expansion and acquisition strategies, the success of such strategies, and the benefits we believe can be derived from such strategies;
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | the outcome of litigation matters;
| | - |  | ----------------------------------



| |  |  | our intellectual property rights and those of others, including actual or potential competitors;
| | - |  | ------------------------------------------------------------------------------------------------



| |  |  | the ability to enter into acceptable relationships with one or more contract manufacturers or other service providers on which we may depend and the ability of such
contract manufacturers or other service providers to manufacture biologics or devices or to provide services of an acceptable quality on a cost-effective basis;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | our personnel, consultants and collaborators;
| | - |  | ---------------------------------------------



| |  |  | operations outside the United States;
| | - |  | -------------------------------------



| |  |  | current and future economic and political conditions;
| | - |  | -----------------------------------------------------



| |  |  | overall industry and market performance;
| | - |  | ----------------------------------------



| |  |  | the impact of accounting pronouncements;
| | - |  | ----------------------------------------



| |  |  | managements goals and plans for future operations; and
| | - |  | -------------------------------------------------------



| |  |  | other assumptions described in this report underlying or relating to any forward-looking statements.
| | - |  | ----------------------------------------------------------------------------------------------------

The forward-looking statements in this report speak only as of the date of this report and caution should be taken not to place undue reliance on any such
forward-looking statements. Forward-looking statements are subject to certain events, risks, and uncertainties that may be outside of our control. When considering forward-looking statements, you should carefully review the risks, uncertainties and
other cautionary statements in this report as they identify certain important factors that could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. These factors include, among others, the
risks described under Item 1A of Part II and elsewhere in this report and in our 2006 Annual Report, as well as in other reports and documents we file with the SEC.

Unless the context requires otherwise, all references in this report to the Company, Cardium, we, our, and us refer to Cardium Therapeutics, Inc. and, as
applicable, Innercool Therapies, Inc., and Tissue Repair Company, each a wholly-owned subsidiary of Cardium.



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

We are
exposed to a limited level of market risk, which is the potential loss arising from adverse changes in market rates and prices, such as interest rates, due to the investment of our available cash in various instruments. The goal of our investment
activities is to preserve principal while seeking to increase income received on our investments without significantly increasing risk. In the normal course of business, we employ established policies and procedures to manage our exposure to changes
in the fair value of our investments. We generally do not, however, enter into derivatives or other financial instruments for trading or speculative purposes or to otherwise manage our



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exposure to interest rate changes. Generally, we seek to limit our exposure to risk by investing substantially in short-term, investment grade securities,
such as commercial paper, certificates of deposit and money market funds. The amount of interest income we receive on our investments will vary with changes in the general level of interest rates in the United States, generally decreasing as
interest rates decrease and increasing as interest rates increase.

While we cannot predict with any certainty our future exposure to fluctuations in
interest rates or other market risks or the impact, if any, such fluctuations may have on our future business, consolidated financial condition, results of operations or cash flows, due to the short-term, investment grade nature of our investments,
we do not believe our exposure to market risk is material.



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

We maintain certain disclosure controls
and procedures. They are designed to help ensure that material information is: (1) gathered and communicated to our management, including our principal executive and financial officers, on a timely basis; and (2) recorded, processed,
summarized, reported and filed with the SEC as required under the Securities Exchange Act of 1934, as amended.

Our management, with the participation of
our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2007. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer concluded that
our disclosure controls and procedures were effective for their intended purpose described above. There were no changes to our internal controls during the quarterly period ended June 30, 2007 that have materially affected, or that are
reasonably likely to materially affect, our internal controls.

PART II  OTHER INFORMATION



|ITEM 1. | LEGAL PROCEEDINGS
|------- | -----------------

From time to time, we may become involved in
various investigations, claims and legal proceedings that arise in the ordinary course of our business. These matters may relate to intellectual property, employment, tax, regulation, contract or other matters. The resolution of these matters as
they arise will be subject to various uncertainties and, even if such claims are without merit, could result in the expenditure of significant financial and managerial resources.

As of August 10, 2007, neither Cardium nor its subsidiaries were a party to any material pending legal proceeding nor was any of their property the subject of any material pending legal proceeding. We anticipate,
however, that we will be regularly engaged in various patent prosecution and related matters in connection with the technology we develop and/or license. To the extent we are not successful in defending against any adverse claims concerning our
technology, we could be compelled to seek licenses from one or more third parties who could be direct or indirect competitors and who might not make licenses available on terms that we find commercially reasonable or at all. In addition, any such
proceedings, even if decided in our favor, involve lengthy processes, are subject to appeals, and typically result in substantial costs and diversion of resources.



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

There have been no material changes from the risk factors previously disclosed in our 2006 Annual
Report. You should carefully consider the risks described under Item 6 of our 2006 Annual Report, as well as the other information in our 2006 Annual Report, this report and other reports and documents we file with the SEC, when evaluating our
business and future prospects. If any of the identified risks actually occur, our business, financial condition and results of operations could be seriously harmed. In that event, the market price of our common stock could decline and you could lose
all or a portion of the value of your investment in our common stock.



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##### Table of Contents

|ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|------- | -----------------------------------------------------------

During the quarterly period ended June 30,
2007, we did not sell any unregistered securities.



|ITEM 3. | DEFAULTS UPON SENIOR SECURITIES
|------- | -------------------------------

None.



|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
|------- | ---------------------------------------------------

Our annual
meeting of stockholders was held on June 6, 2007. The following table sets forth the matters voted upon at the meeting and the results of the voting on each matter voted upon:



|                                                                                                                                                                                          |  |            |  |          |  |               |  |             |  |                 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---------- |  | -------- |  | ------------- |  | ----------- |  | ----------------
|Matter Voted Upon                                                                                                                                                                         |  | Votes For  |  | Withheld |  | Votes Against |  | Abstentions |  | Broker Non-Votes
|Election of two Class I directors to serve until the next annual meeting of stockholders held to elect Class I directors and until their respective successors are elected and
qualified: |  |            |  |          |  |               |  |             |  |                 
|Edward Gabrielson                                                                                                                                                                         |  | 23,241,871 |  | 34,200   |  |              |  |            |  |                
|Lon Otremba                                                                                                                                                                               |  | 23,241,871 |  | 34,200   |  |              |  |            |  |                
|                                                                                                                                                                                          |  |            |  |          | 
|Ratification of the selection of Marcum & Kliegman LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2007                                  |  | 23,259,404 |  |         |  |              |  | 16,667      |  |                

In accordance with the terms set forth in the proxy statement related to the solicitation of proxies for use at
the annual meeting, an abstention from voting was used for the purpose of establishing a quorum, and was considered a vote "against" a proposal. A broker non-vote was also used for the purpose of establishing a quorum, but was not otherwise counted
in the voting process. The named directors and the above matter were each approved by the stockholders at the annual meeting.



|ITEM 5. | OTHER INFORMATION
|------- | -----------------

None.



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

The following exhibit index shows those exhibits filed
with this report and those incorporated by reference:

EXHIBIT INDEX



|              |  |                                                                                                                                                                                                |  |                                                                                                                    
|------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Description                                                                                                                                                                                    |  | Incorporated By Reference To                                                                                       
|2.1           |  | Agreement and Plan of Merger dated as of October 19, 2005 and effective as of October 20, 2005, by and among Aries Ventures Inc., Aries Acquisition Corporation and Cardium Therapeutics, Inc. |  | Exhibit 2.1 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005
|              |  |                                                                                                                                                                                               
|2.2           |  | Certificate of Merger of Domestic Corporation as filed with the Delaware Secretary of State on October 20, 2005                                                                                |  | Exhibit 2.1 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005



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|       |  |                                                                                                                                                                                                              |  |                                                                                                                                         
|------ |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ----------------------------------------------------------------------------------------------------------------------------------------
|       |  |                                                                                                                                                                                                             
|2.3    |  | Agreement and Plan of Merger dated January 17, 2006, between Aries Ventures Inc. and Cardium Therapeutics, Inc.                                                                                              |  | Exhibit 2.4 of our Registration Statement on Form SB-2 (File No. 333-131104), filed with the commission on January 18, 2006             
|       |  |                                                                                                                                                                                                             
|2.4    |  | Certificate of Merger, as filed with the Delaware Secretary of State on January 17, 2006                                                                                                                     |  | Exhibit 2.5 of our Registration Statement on Form SB-2 (File No. 333-131104), filed with the commission on January 18, 2006             
|       |  |                                                                                                                                                                                                             
|3(i)   |  | Second Amended and Restated Certificate of Incorporation of Cardium Therapeutics, Inc. as filed with the Delaware Secretary of State on January 13, 2006                                                     |  | Exhibit 3(i) of our Registration Statement on Form SB-2 (File No. 333-131104), filed with the commission on January 18, 2006            
|       |  |                                                                                                                                                                                                             
|3(ii)  |  | Amended and Restated Bylaws of Cardium Therapeutics, Inc. as adopted on January 12, 2006                                                                                                                     |  | Exhibit 3(ii) of our Registration Statement on Form SB-2 (File No. 333-131104), filed with the commission on January 18, 2006           
|       |  |                                                                                                                                                                                                             
|3(iii) |  | Certificate of Designation of Series A Junior Participating Preferred Stock                                                                                                                                  |  | Exhibit 3.2 of our Registration Statement on Form 8-A, filed with the commission on July 11, 2006                                       
|       |  |                                                                                                                                                                                                             
|4.1    |  | Form of Warrant issued to Lead Investors and Mark Zucker                                                                                                                                                     |  | Exhibit 4.2 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                     
|       |  |                                                                                                                                                                                                             
|4.2    |  | Form of Warrant issued to employees and consultants of Innercool Therapies, Inc.                                                                                                                             |  | Exhibit 4.1 of our Current Report on Form 8-K dated March 8, 2006, filed with the commission on March 14, 2006                          
|       |  |                                                                                                                                                                                                             
|4.3    |  | Form of Common Stock Certificate for Cardium Therapeutics, Inc.                                                                                                                                              |  | Exhibit 4.5 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005, filed with the commission on March 31, 2006
|       |  |                                                                                                                                                                                                             
|4.4    |  | Form of Rights Agreement dated as of July 10, 2006, between Cardium Therapeutics, Inc. and Computershare Trust Company, Inc., as Rights Agent                                                                |  | Exhibit 4.1 of our Registration Statement on Form 8-A, filed with the commission on July 11, 2006                                       
|       |  |                                                                                                                                                                                                             
|4.5    |  | Form of Rights Certificate                                                                                                                                                                                   |  | Exhibit 4.2 of our Registration Statement on Form 8-A, filed with the commission on July 11, 2006                                       
|       |  |                                                                                                                                                                                                             
|4.6    |  | Form of Warrant issued to purchasers in 2007 private financing                                                                                                                                               |  | Exhibit 4.1 of our Current Report on Form 8-K dated March 6, 2007, filed with the commission on March 6, 2007                           
|       |  |                                                                                                                                                                                                             
|4.7    |  | Form of Warrant issued to Oppenheimer & Co. Inc. as Placement Agent in 2007 financing                                                                                                                        |  | Exhibit 4.7 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006, filed with the commission on March 15, 2007
|       |  |                                                                                                                                                                                                             
|10.1   |  | Transfer, Consent to Transfer, Amendment and Assignment of License Agreement effective as of August 31, 2005, by and among New York University, Collateral Therapeutics, Inc. and Cardium
Therapeutics, Inc. |  | Exhibit 10.1 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                    



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##### Table of Contents

|      |  |                                                                                                                                                                                                                                                                                 |  |                                                                                                                                               
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------
|10.2  |  | Transfer, Consent to Transfer, Amendment and Assignment of License Agreement effective as of August 31, 2005, by and among Yale University, Schering Aktiengesellschaft and Cardium
Therapeutics, Inc.                                                                          |  | Exhibit 10.2 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                          
|      |  |                                                                                                                                                                                                                                                                                
|10.3  |  | Transfer, Consent to Transfer, Amendment and Assignment of License Agreement effective as of July 31, 2005, by and among the Regents of the University of California, Collateral Therapeutics,
Inc. and Cardium Therapeutics, Inc.                                              |  | Exhibit 10.3 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                          
|      |  |                                                                                                                                                                                                                                                                                
|10.4  |  | Transfer, Consent to Transfer, Amendment and Assignment of License Agreement effective as of July 31, 2005, by and among the Regents of the University of California, Collateral Therapeutics,
Inc. and Cardium Therapeutics, Inc.                                              |  | Exhibit 10.4 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                          
|      |  |                                                                                                                                                                                                                                                                                
|10.5  |  | Technology Transfer Agreement effective as of October 13, 2005, by and among Schering AG, Berlex, Inc., Collateral Therapeutics, Inc. and Cardium Therapeutics, Inc.                                                                                                            |  | Exhibit 10.5 of Aries Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                       
|      |  |                                                                                                                                                                                                                                                                                
|10.6  |  | Amendment to the Exclusive License Agreement for Angiogenesis Gene Therapy effective as of October 20, 2005, between the Regents of the University of California and Cardium
Therapeutics, Inc.                                                                               |  | Exhibit 10.6 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                          
|      |  |                                                                                                                                                                                                                                                                                
|10.7  |  | Amendment to License Agreement effective as of October 20, 2005, by and between New York University and Cardium Therapeutics, Inc.                                                                                                                                              |  | Exhibit 10.7 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                          
|      |  |                                                                                                                                                                                                                                                                                
|10.8  |  | Second Amendment to Exclusive License Agreement effective as of October 20, 2005, by and between Yale University and Cardium Therapeutics, Inc.                                                                                                                                 |  | Exhibit 10.8 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                          
|      |  |                                                                                                                                                                                                                                                                                
|10.9  |  | 2005 Equity Incentive Plan as adopted effective as of October 20, 2005*                                                                                                                                                                                                         |  | Exhibit 10.9 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                          
|      |  |                                                                                                                                                                                                                                                                                
|10.10 |  | Employment Agreement dated as of October 20, 2005 by and between Aries Ventures Inc. and Christopher Reinhard*                                                                                                                                                                  |  | Exhibit 10.10 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                         
|      |  |                                                                                                                                                                                                                                                                                
|10.11 |  | Employment Agreement dated as of October 20, 2005 by and between Aries Ventures Inc. and Tyler Dylan*                                                                                                                                                                           |  | Exhibit 10.11 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                         
|      |  |                                                                                                                                                                                                                                                                                
|10.12 |  | Office Lease between Cardium and Kilroy Realty, L.P. dated as of September 30, 2005 and commencing on November 1, 2005                                                                                                                                                          |  | Exhibit 10.12 of our Annual Report on Form 10-KSB for the fiscal year ended September 30, 2005, filed with the commission on December 22, 2005
|      |  |                                                                                                                                                                                                                                                                                
|10.13 |  | Yale Exclusive License Agreement between Yale University and Schering Aktiengesellschaft dated September 8, 2000                                                                                                                                                                |  | Exhibit 10.13 of our Annual Report on Form 10-KSB for the fiscal year ended September 30, 2005, filed with the commission on December 22, 2005
|      |  |                                                                                                                                                                                                                                                                                
|10.14 |  | Research and License Agreement between New York University and Collateral Therapeutics, Inc. dated March 24, 1997 (with amendments dated April 28, 1998 and March 24,
2000)                                                                                                     |  | Exhibit 10.14 of our Annual Report on Form 10-KSB for the fiscal year ended September 30, 2005, filed with the commission on December 22, 2005
|      |  |                                                                                                                                                                                                                                                                                
|10.15 |  | Exclusive License Agreement for Angiogenesis Gene Therapy between the Regents of the University of California and Collateral Therapeutics, Inc. dated as of September 27, 1995 (with
amendments dated September 19, 1996, June 30, 1997, March 11, 1999 and February 8, 2000) |  | Exhibit 10.15 of our Annual Report on Form 10-KSB for the fiscal year ended September 30, 2005, filed with the commission on December 22, 2005



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|      |  |                                                                                                                                                                                                                                                                                                                          |  |                                                                                                                                           
|----- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.16 |  | Placement Agency Agreement dated July 1, 2005 by and between Cardium Therapeutics, Inc. and National Securities Corporation                                                                                                                                                                                              |  | Exhibit 1.1 of our Current Report on Form 8-K dated October 20, 2005, filed with the commission on October 26, 2005                       
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.17 |  | Asset Purchase Agreement dated as of March 8, 2006, by and among Cardium Therapeutics, Inc., Innercool Therapies, Inc. (a Delaware corporation), and Innercool Therapies, Inc. (a California
corporation) (without schedules)                                                                                            |  | Exhibit 10.1 of our Current Report on Form 8-K dated March 8, 2006, filed with the commission on March 14, 2006                           
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.18 |  | Production Service Agreement effective as of January 24, 2006, by and between Molecular Medicine Bioservices, Inc. and Cardium Therapeutics, Inc.                                                                                                                                                                        |  | Exhibit 10.18 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005, filed with the commission on March 31, 2006
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.19 |  | Executive Employment Agreement dated March 8, 2006 by and between Innercool Therapies, Inc. and Michael Magers*                                                                                                                                                                                                          |  | Exhibit 10.19 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005, filed with the commission on March 31, 2006
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.20 |  | Master License Agreement effective as of December 1, 1999, by and between SurModics, Inc. and Innercool Therapies, Inc.                                                                                                                                                                                                  |  | Exhibit 10.20 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005, filed with the commission on March 31, 2006
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.21 |  | Lease dated August 12, 1997, by and between R.G. Harris Co., and Elizabeth G. Harris, Henry K. Workman and Don C. Sherwood, Trustees of the Harris Family Revocable Trust (as landlord) and Copper
Mountain Networks, Inc. (as tenant)                                                                                   |  | Exhibit 10.21 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005, filed with the commission on March 31, 2006
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.22 |  | Lease Amendment No. 1 effective as of August 1, 1999, by and among R.G. Harris Co., and Elizabeth G. Harris, Henry K. Workman and Don C. Sherwood, Trustees of the Harris Family Revocable
Trust (as landlord), Copper Mountain Networks, Inc. (as tenant), and Neurothermia, Inc. (as assignee)                         |  | Exhibit 10.22 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005, filed with the commission on March 31, 2006
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.23 |  | Assignment, Assumption and Consent effective as of October 2, 1999, by and among Copper Mountain Networks, Inc., Neurothermia, Inc., and R.G. Harris Co., and Elizabeth G. Harris, Henry K.
Workman and Don C. Sherwood, Trustees of the Harris Family Revocable Trust                                                   |  | Exhibit 10.23 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005, filed with the commission on March 31, 2006
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.24 |  | Lease Amendment No. 2 effective as of October 16, 2002, by and between E.G. Sirrah, LLC, as successor-in-interest to R.G. Harris Co., and Elizabeth G. Harris, Henry K. Workman and Don C.
Sherwood, Trustees of the Harris Family Revocable Trust, and Innercool Therapies, Inc. (formerly known as Neurothermia, Inc.) |  | Exhibit 10.24 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005, filed with the commission on March 31, 2006
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.25 |  | Sublease dated August 30, 2005, by and between Innercool Therapies, Inc., and Acadia Pharmaceuticals Inc.                                                                                                                                                                                                                |  | Exhibit 10.25 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005, filed with the commission on March 31, 2006
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.26 |  | Asset Purchase Agreement dated as of August 11, 2006, by and among Cardium Therapeutics, Inc., Cardium Biologics, Inc. (a Delaware corporation), and Tissue Repair Company (a Delaware
corporation)                                                                                                                      |  | Exhibit 10.26 of our Current Report on Form 8-K dated August 11, 2006, filed with the commission on August 15, 2006                       
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.27 |  | Form of Securities Purchase Agreement, dated March 6, 2007, by an between Cardium Therapeutics, Inc. and each purchaser in 2007 private financing (agreements on substantially this form were
signed by each purchaser in the financing)                                                                                 |  | Exhibit 10.1 of our Current Report on Form 8-K dated March 6, 2007, filed with the commission on March 6, 2007                            
|      |  |                                                                                                                                                                                                                                                                                                                         
|10.28 |  | Form of Lock-Up Agreement executed by each executive officer and director of Cardium Therapeutics, Inc. in connection with 2007 private financing                                                                                                                                                                        |  | Exhibit 10.2 of our Current Report on Form 8-K dated March 6, 2007, filed with the commission on March 6, 2007                            



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|      |  |                                                                                                                                                                              |  |                                                                                                                                           
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------
|10.29 |  | Placement Agent Agreement dated November 1, 2006, by and between Cardium Therapeutics, Inc. and Oppenheimer & Co. Inc.                                                       |  | Exhibit 10.3 of our Current Report on Form 8-K dated March 6, 2007, filed with the commission on March 6, 2007                            
|      |  |                                                                                                                                                                             
|10.30 |  | Office Lease dated as of September 16, 2006 and commencing on January 20, 2007, by and between Cardium Therapeutics, Inc. and Jaguar Properties, L.L.C.                      |  | Exhibit 10.30 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006, filed with the commission on March 15, 2007
|      |  |                                                                                                                                                                             
|10.31 |  | Amendment 1 effective on October 31, 2006, to Sublease dated August 30, 2005, by and between Innercool Therapies, Inc., and Acadia Pharmaceuticals Inc.                      |  | Exhibit 10.31 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006, filed with the commission on March 15, 2007
|      |  |                                                                                                                                                                             
|10.32 |  | Amendment 2 effective as of January 2, 2007, to Sublease dated August 30, 2005, by and between Innercool Therapies, Inc., and Acadia Pharmaceuticals Inc.                    |  | Exhibit 10.32 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006, filed with the commission on March 15, 2007
|      |  |                                                                                                                                                                             
|10.33 |  | Michigan License agreement between the Regents of the University of Michigan and Matrigen, Inc. dated July 13, 1995                                                          |  | Exhibit 10.33 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006, filed with the commission on March 15, 2007
|      |  |                                                                                                                                                                             
|10.34 |  | Amendment to License agreement between the Regents of the University of Michigan and Matrigen, Inc. dated August 10, 1995                                                    |  | Exhibit 10.34 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006, filed with the commission on March 15, 2007
|      |  |                                                                                                                                                                             
|10.35 |  | Second Amendment to the Michigan License agreement between the Regents of the University of Michigan and Selective Genetics, Inc. dated February 1, 2004                     |  | Exhibit 10.35 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006, filed with the commission on March 15, 2007
|      |  |                                                                                                                                                                             
|10.36 |  | Third Amendment to Michigan License Agreement between the Regents of the University of Michigan, and Tissue Repair Company, and Cardium Biologics Inc. dated August 10, 2006 |  | Exhibit 10.36 of our Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006, filed with the commission on March 15, 2007
|      |  |                                                                                                                                                                             
|10.37 |  | First Amendment to Lease Agreement between Cardium Therapeutics, Inc. and Kilroy Realty, L.P. dated February 15, 2007                                                        |  | Exhibit 10.37 of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, filed with the commission on May 15, 2007        
|      |  |                                                                                                                                                                             
|10.38 |  | First Amendment dated March 16, 2007 to Employment Agreement dated as of October 20, 2005 by and between Aries Ventures Inc. and Christopher Reinhard*                       |  | Exhibit 10.38 of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, filed with the commission on May 15, 2007        
|      |  |                                                                                                                                                                             
|10.39 |  | First Amendment dated March 16, 2007 to Employment Agreement dated as of October 20, 2005 by and between Aries Ventures Inc. and Tyler Dylan*                                |  | Exhibit 10.38 of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2007, filed with the commission on May 15, 2007        
|      |  |                                                                                                                                                                             
|31.1  |  | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer                                                                                                            |  | Filed herewith                                                                                                                            
|      |  |                                                                                                                                                                             
|31.2  |  | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer                                                                                                            |  | Filed herewith                                                                                                                            
|      |  |                                                                                                                                                                             
|32    |  | Section 1350 Certification                                                                                                                                                   |  | Filed herewith                                                                                                                            

---

|* | Indicates management contract or compensatory plan or arrangement.
|- | ------------------------------------------------------------------



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Cardium Therapeutics, Inc., the registrant,
has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 14, 2007



CARDIUM THERAPEUTICS, INC.By:

/s/ Dennis M. MulroyDennis M. Mulroy, Chief Financial Officer


Mr. Mulroy is the principal financial officer of Cardium Therapeutics, Inc. and has been duly
authorized to sign on its behalf.



20