----

| x | ANNUAL      REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934. |
|---|-------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934. |
|--------|-----------------------------------------------------------------------------------------------------|

|   | For      the transition period from ___________ to  _____________ |
|--------|-------------------------------------------------------------------|

----

| Delaware                                                                      |   | 84-1368850                                |
|-------------------------------------------------------------------------------|--------|-------------------------------------------|
| (State      or other jurisdiction of incorporation      or organization) |   | (I.R.S.      Employer Identification No.) |

| 303      George Street, Suite 420, New Brunswick, New Jersey |   | 08901           |
|--------------------------------------------------------------|--------|-----------------|
| (Address      of principal executive offices)                |   | (Zip      Code) |

----

| Title of each class            |   | Name of each exchange on which registered |
|-----------------------------------------------|--------|-------------------------------------------------------------------------|
|                                          |   |                                                                    |
| Common      Stock, $0.01 par value per share. |   | NYSE      Amex                                                          |

| Large      accelerated filer   ̈ | Accelerated      filer  ̈ |   |
|------------------------------------------------|-------------------------------|--------|
| Non-accelerated      filer  ̈              | Smaller reporting company x   |   |

| Class                              |   | Number of Shares |
|------------------------------------|--------|----------------------------|
|                               |   |                       |
| Common      Stock, $0.01 par value |   | 22,604,007                 |

----

----

|                      | Item | Page                                                                                                                            |
|---------------------------|------|---------------------------------------------------------------------------------------------------------------------------------|
| PART      I               | 1.   | Business                                                                                                                        | 1 |   |
|                      | 1A.  | Risk      Factors                                                                                                               | 16 |   |
|                      | 1B.  | Unresolved      Staff Comments                                                                                                  | 30 |   |
|                      | 2.   | Properties                                                                                                                      | 30 |   |
|                      | 3.   | Legal      Proceedings                                                                                                          | 30 |   |
|                      | 4.   | Submission      of Matters to a Vote of Security Holders                                                                        | 30 |   |
| PART      II              | 5.   | Market for      Registrant’s Common Equity, Related Stockholder Matters      and Issuer Purchases of Equity    Securities |  31 |   |
|                      | 6.   | Selected      Financial Data                                                                                                    | 38 |   |
|                      | 7.   | Management's      Discussion and Analysis of Financial Condition      and Results of Operations                            | 39 |   |
|                      | 7A.  | Quantitative      and Qualitative Disclosures About Market Risk                                                                 | 50 |   |
|                      | 8.   | Financial      Statements and Supplementary Data                                                                                | 51 |   |
|                      | 9.   | Changes in and      Disagreements with Accountants on Accounting      and Financial Disclosure                                  | 51 |   |
|                      | 9A.  | Controls      and Procedures                                                                                                    | 51 |   |
|                      | 9B.  | Other      Information                                                                                                          | 52 |   |
| PART      III             | 10.  | Directors,      Executive Officers and Corporate Governance                                                                     | 52 |   |
|                      | 11.  | Executive      Compensation                                                                                                     | 52 |   |
|                      | 12.  | Security Ownership      of Certain Beneficial Owners and Management      and Related Stockholder Matters                        | 52 |   |
|                      | 13.  | Certain      Relationships and Related Transactions and Director      Independence                                              | 53 |   |
|                      | 14.  | Principal      Accounting Fees and Services                                                                                     | 53 |   |
| PART      IV              | 15.  | Exhibits      and Financial Statement Schedules                                                                                 | 53 |   |
| SIGNATURES                | 53   |                                                                                                                            |
| FINANCIAL      STATEMENTS | F-1  |                                                                                                                            |

----

|   | · | Performing      efficacy, toxicological and dose-finding studies in mice for our potential      multiple myeloma drug candidate, SNS-01.  SNS-01 is a      nano-encapsulated combination therapy of Factor 5A and an siRNA against      Factor 5A.  Our efficacy study in severe combined      immune-deficient mice with subcutaneous human multiple myeloma tumors      tested SNS-01 dosages ranging from 0.15 mg/kg to 1.5 mg/kg.  In      these studies, mice treated with a dose of either 0.75 mg/kg or 1.5 mg/kg      both showed a 91% reduction in tumor volume and a decrease in tumor weight      of 87% and 95%, respectively.  For mice that received smaller      doses of either 0.38 mg/kg or 0.15 mg/kg, there was also a reduction in      tumor volume (73% and 61%, respectively) and weight (74% and 36%,      respectively).  All of the treated mice, regardless of dose,      survived.  This therapeutic dose range study provided the basis      for an 8-day maximum tolerated dose study in which normal mice received      two intravenous doses of increasing amounts of SNS-01 (from 2.2      mg/kg).  Body weight, organ weight and serum levels of liver      enzymes were used as clinical indices to assess toxicity.  A      dose between 2.2 mg/kg and 2.9 mg/kg was well tolerated with respect to      these clinical indices, and the survival rate at 2.9 mg/kg was      80%.  Those mice receiving above 2.9 mg/kg of SNS-01 showed      evidence of morbidity and up to 80% mortality.  The 2.9 mg/kg      threshold, twice the upper end of the proposed therapeutic dose range, was      therefore determined to be the maximum tolerated dose in    mice. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | demonstrated      significant tumor regression and diminished rate of tumor growth of      multiple myeloma tumors in SCID mice treated with Factor 5A technology      encapsulated in nanoparticles; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased      median survival by approximately 250% in a tumor model of mice injected      with melanoma cancer cells; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | induced      apoptosis in both human cancer cell lines derived from tumors and in lung      tumors in mice; |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | induced      apoptosis of cancer cells in a human multiple myeloma cell line in the      presence of IL-6; |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | measured      VEGF reduction in mouse lung tumors as a result of treatment with our      genes; |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | decreased      ICAM and activation of NFkB in cancer cells employing siRNA against Factor      5A; |
|--------|--------|----------------------------------------------------------------------------------------------------|

|   | · | increased      the survival rate in H1N1 mouse influenza survival studies from 14% in      untreated mice to 52% in mice treated with our siRNA against Factor      5A.  Additionally, the treated mice reversed the weight loss      typically seen in infected mice and had other reduced indicators of      disease severity as measured by blood glucose and liver      enzymes. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased      the survival, while maintaining functionality, of mouse pancreatic islet      cells isolated for transplantation, using intraperitaneal administration      of our technology.  Initial animal studies have shown that our      technology administered prior to harvesting beta islet cells from a mouse,      has a significant impact not only on the survival of the beta islet cells,      but also on the retention of the cells’ functionality when compared to the      untreated beta islet cells.  Additional studies have shown that      the treated beta islet cells survive a pro-inflammatory cytokine      challenge, while maintaining their functionality with respect to insulin      production.  These further studies also revealed Factor-5A’s      involvement in the modulation of inducible nitric oxide synthase (iNOS),      an important indicator of inflammation;and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | increased      the survival rate of mice in a lethal challenge sepsis      model.  Additionally, a broad spectrum of systemic      pro-inflammatory cytokines were down-regulated, while not effecting the      anti-inflammatory cytokine IL-10. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | Multiple      Myeloma.  Our objective is to advance our technology for the      potential treatment of multiple myeloma with the goal of initiating a      clinical trial.  In connection with the potential clinical      trial, we have engaged a clinical research organization, or CRO, to assist      us through the process.  We have also determined the delivery      system for our technology, contracted for the supply of pharmaceutical      grade materials to be used in toxicology and human studies, performed      certain toxicology studies, and have contracted with a third party      laboratory to conduct additional toxicology studies.  Together      with the assistance of our CRO, we will have additional toxicology studies      performed with the goal of filing an investigational new drug application,      or IND application, with the U.S. Food and Drug Administration, or FDA,      for their review and consideration in order to initiate a clinical      trial.  Assuming that we have adequate funding, we estimate that      it will take approximately fifteen (15) months from June 30, 2009 to      complete these objectives. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Lung      Inflammation.  A mouse model system has been conducted to      illustrate the siRNA to Factor 5A’s ability to reduce morbidity and      mortality of lung inflammation caused by the up-regulation of      pro-inflammatory cytokines induced by a  pathogen. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other.  We      may continue to look at other disease states in order to determine the      role of Factor 5A. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Entering      into strategic alliances, including licensing technology to major      marketing and distribution partners;or |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | developing      in-house production and marketingcapabilities. |
|--------|--------|----------------------------------------------------------------|

----

|   | · | longer      shelf life of perishable produce; |
|--------|--------|-----------------------------------------------|

|   | · | increased      biomass and seed yield; |
|--------|--------|----------------------------------------|

|   | · | greater      tolerance to environmental stresses, such as drought and soil      salinity; |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | greater      tolerance to certain fungal and bacterial  pathogens; |
|--------|--------|--------------------------------------------------------------------|

|   | · | more      efficient use of fertilizer; and |
|--------|--------|--------------------------------------------|

|   | · | advancement      to field trials in banana, lettuce, andtrees. |
|--------|--------|----------------------------------------------------------------|

----

|   | · | further      develop and implement the DHS and Factor 5A gene technology in banana,      canola, cotton, turfgrass, bedding plants, rice, alfalfa, corn, soybean      and trees; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | test      the resultant crops for new beneficial traits such as increased yield,      increased tolerance to environmental stress, disease resistance and more      efficient use of fertilizer. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      June 2002, we entered into a three-year worldwide exclusive development      and option agreement with ArborGen, LLC to develop our technology in      certain species of trees.  In June 2006, ArborGen exercised      their option to license our technology and in December 2006, converted the      development and option agreement into a license agreement, referred to      herein as the ArborGen Agreement.  To date, the research being      conducted by ArborGen has proceeded according to      schedule.  ArborGen has seen promising positive growth responses      in greenhouse-grown seedlings.  These initial greenhouse data      led to the initiation of field trials by ArborGen in the second half of      calendar 2004.  At the end of the 2005 growing season, certain      trees which were enhanced by our technology had approximately double the      increase in volume relative to control trees.  Further field      trials are ongoing to support these data and to analyze the growth rates      of trees which incorporate our technology. Under the ArborGen Agreement,      we have received an upfront payment and benchmark payments and we may      receive additional benchmark payments upon achievement of certain      development milestones and royalties upon    commercialization. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | In      September 2002, we entered into an exclusive development and license      agreement with Cal/West Seeds, referred to herein as the Cal/West License,      to commercialize our technology in certain varieties of      alfalfa.  The Cal/West License will continue until the      expiration of the patents set forth in the agreement, unless terminated      earlier by either party pursuant to the terms of the      agreement.  The Cal/West License also grants Cal/West an      exclusive option to develop our technology in various other forage      crops.  The Cal/West development effort successfully      incorporated our technology into their alfalfa seed as of July      2004.  Seed transformation and greenhouse trait analysis is      ongoing.  Under the Cal/West License, we have received an      upfront payment and we may receive benchmark payments as certain      development milestones are achieved and a royalty upon commercialization      based upon the volume of alfalfa seed sold that contains our      technology. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      March 2004, we entered into an exclusive development and license agreement      with The Scotts Company, referred to herein as the Scotts Agreement, to      commercialize our technology in turfgrass and certain species of bedding      plants.  Scotts is working on incorporating our technology to      enhance a variety of traits in these plants, including environmental      stress resistance, disease resistance and enhanced bloom      properties. We are collaborating with Scotts in the areas of      ornamental bedding plants and turfgrass.  A large-scale      greenhouse evaluation of bedding plants was being conducted and additional      greenhouse testing is planned.  Transformation and initial      tissue culture screening of events have been undertaken in      turfgrass.  In tissue culture, turfgrass containing our      technology has grown more successfully than control turfgrass without our      technology.  Greenhouse testing of the grass containing our      technology is the next planned development step. Under the Scotts      Agreement, we have received an upfront payment and benchmark      payments.  In January 2006, the development and license      agreement with The Scotts Company was amended. Due to a change in the      corporate financial policy at Scotts, Scotts requested to defer certain      milestone payments, which were to be made on a calendar      basis.  We agreed and these payments have now been deferred and      incorporated in the amount to be paid to us upon commercialization. Additionally, the      commercialization fee has been increased.  All other aspects of      the agreement remain unchanged, and the project continues to move forward      without interruption. We may also receive royalties upon commercialization      from the net sales of turfgrass seed and bedding plants containing our      technology. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In      October 2005, we entered into an agreement with Poet to license our      proprietary gene technology to Poet to improve aspects of Poet’s ethanol      production capabilities.  We are currently revising our work      plan to incorporate our technology into those aspects of Poet's ethanol      production.  We will receive an annual payment for each Poet      facility that incorporates our technology.  If Poet incorporates      our technology into each of its facilities, we would be entitled to      receive an annual payment in excess of  $1,000,000. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | On      November 8, 2006, we entered into a license agreement with Bayer      CropScience GmbH for the development and commercialization of      Canola.  Under the terms of the agreement, we received an      upfront payment, will receive milestone payments upon the achievement of      certain development milestones and will receive commercialization      fees based upon specified benchmarks.  In August, 2008, Bayer      CropScience GmbH successfully completed the first development milestone      related to this license. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 17, 2007 we entered into a license agreement with Bayer CropScience      AG for the development and commercialization of cotton.  Under      the terms of the agreement, we received an upfront payment, will receive      milestone payments upon the achievement of certain development milestones,      and additionally, upon commercialization, and a royalty on net      sales. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      August 6, 2007 we entered into a license agreement with Monsanto for the      development and commercialization of corn and soy.  Under the      terms of the agreement, we received an upfront payment, will receive      milestone payments upon the achievement of certain development milestones,      and additionally, upon commercialization, and a royalty on net      sales. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      September 11, 2007 we entered into a license agreement with Bayer      CropScience AG for the development and commercialization of      rice.  Under the terms of the agreement, we received an upfront      payment, will receive milestone payments upon the achievement of certain      development milestones, and additionally, upon commercialization, and a      royalty on net sales. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | licensing      technology to major marketing and distribution  partners; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | entering      into strategic alliances; or |
|--------|--------|--------------------------------------------|

|   | · | developing      in-house production and marketingcapabilities. |
|--------|--------|----------------------------------------------------------------|

----

| Seed      Transformation | approximately      1 to 2 years |
|--------------------------|---------------------------------|
| Greenhouse               | approximately      1 to 2 years |
| Field      Trials        | approximately      2 to 5 years |

----

| Project                               |         | Partner                 |         | Status                        |
|---------------------------------------|--------------|-------------------------|--------------|-------------------------------|
| Banana                                |         | Rahan      Meristem     |         |                          |
|   -      Shelf Life         |         |                    |         | Field      trials             |
|   -      Disease Resistance |         |                    |         | Field      trials             |
| Trees                                 |         | Arborgen                |         |                          |
|   -      Growth             |         |                    |         | Field      trials             |
| Alfalfa                               |         | Cal/West                |         | Greenhouse                    |
| Corn                                  |         | Monsanto                |         | Proof      of concept ongoing |
| Cotton                                |         | Bayer                   |         | Proof      of concept ongoing |
| Canola                                |         | Bayer                   |         | Seed      transformation      |
| Rice                                  |         | Bayer                   |         | Proof      of concept ongoing |
| Soybean                               |         | Monsanto                |         | Proof      of concept ongoing |
| Turfgrass                             |         | The      Scotts Company |         | Greenhouse                    |
| Bedding      Plants                   |         | The      Scotts Company |         | Greenhouse                    |
| Ethanol                               |    | Poet                    |    | Modify      inputs            |

----

|   | · | Alan      Bennett, Ph.D., who serves as the Chairman of the Scientific Advisory      Board, is the Associate Vice Chancellor of the Office of Technology      Transfer at the University of California.  His research      interests include the molecular biology of tomato fruit development and      ripening, the molecular basis of membrane transport, and cell wall      disassembly. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Charles      A. Dinarello, M.D., who serves as a member of the Scientific Advisory      Board, is a Professor of Medicine at the University of Colorado School of      Medicine, a member of the U.S. National Academy of Sciences and the author      of over 500 published research articles.  In addition to his      active academic research career, Dr. Dinarello has held advisory positions      with two branches of the National Institutes of Health and positions on      the Board of Governors of both the Weizmann Institute and Ben Gurion      University. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | James      E. Meier is an Associate Professor of Medicine at Beth Israel Deaconess      Medical Center, a teaching hospital of Harvard Medical School. He is also      a practicing physician in the Division of Hematology-Oncology at Beth      Israel. Dr. Mier’s research is funded by the NIH and he is a member of      numerous professional societies. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | delay,      scale-back or eliminate some or all of our research and product      development programs; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

----

|   | · | license      third parties to develop and commercialize products or technologies that      we would otherwise seek to develop and commercialize      ourselves; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | seek      strategic alliances or businesscombinations; |
|--------|--------|--------------------------------------------------------|

|   | · | attempt      to sell our company; |
|--------|--------|-----------------------------------|

|   | · | cease      operations; or |
|--------|--------|---------------------------|

|   | · | declare      bankruptcy. |
|--------|--------|--------------------------|

----

|   | · | delay,      scale back or eliminate some or all of our research and development      programs; |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | provide      a license to third parties to develop and commercialize our technology      that we would otherwise seek to develop and commercialize      ourselves; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | seek      strategic alliances or businesscombinations; |
|--------|--------|--------------------------------------------------------|

|   | · | attempt      to sell our company; |
|--------|--------|-----------------------------------|

|   | · | cease      operations; or |
|--------|--------|---------------------------|

|   | · | declare      bankruptcy. |
|--------|--------|--------------------------|

----

|   | · | the      scope of our research anddevelopment; |
|--------|--------|------------------------------------------------|

|   | · | our      ability to attract business partners willing to share in our development      costs; |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | our      ability to successfully commercialize our  technology; |
|--------|--------|-----------------------------------------------------------------|

|   | · | competing      technological and marketdevelopments; |
|--------|--------|------------------------------------------------------|

|   | · | our      ability to enter into collaborative arrangements for the development,      regulatory approval and commercialization of other products;      and |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      cost of filing, prosecuting, defending and enforcing patent claims and      other intellectual property rights. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | our      ability to obtain patent protection for our technologies and      processes; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | our      ability to preserve our trade secrets;and |
|--------|--------|----------------------------------------------------|

----

|   | · | our      ability to operate without infringing the proprietary rights of other      parties both in the United States and in foreign  countries. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | our      patent applications will result in the issuance of  patents; |
|--------|--------|-----------------------------------------------------------------------|

|   | · | any      patents issued or licensed to us will be free from challenge and if      challenged, would be held to bevalid; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | any      patents issued or licensed to us will provide commercially significant      protection for our technology, products and  processes; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | other      companies will not independently develop substantially equivalent      proprietary information which is not covered by our patent      rights; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | other      companies will not obtain access to our  know-how; |
|--------|--------|---------------------------------------------------------------|

|   | · | other      companies will not be granted patents that may prevent the      commercialization of our technology;or |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | we      will not incur licensing fees and the payment of significant other fees or      royalties to third parties for the use of their intellectual property in      order to enable us to conduct ourbusiness. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|   | · | the      USDA regulates the import, field testing and interstate movement of      specific types of genetic engineering that may be used in the creation of      transgenic plants; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      EPA regulates activity related to the invention of plant pesticides and      herbicides, which may include certain kinds of transgenic plants;      and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      FDA regulates foods derived from new plant  varieties. |
|--------|--------|-----------------------------------------------------------------|

----

|   | · | occurrence      of unacceptable toxicities or sideeffects; |
|--------|--------|------------------------------------------------------------|

|   | · | ineffectiveness      of the product candidate; |
|--------|--------|------------------------------------------------|

|   | · | negative      or inconclusive results from the clinical trials, or results that      necessitate additional studies or clinical  trials; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | delays      in obtaining or maintaining required approvals from institutions, review      boards or other reviewing entities at clinical  sites; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | delays      in patient enrollment; or |
|--------|--------|---------------------------------------|

----

|   | · | insufficient      funding or a reprioritization of financial or other    resources. |
|--------|--------|-------------------------------------------------------------------------------------|

----

----

----

|   | · | quarterly      variations in operating results; |
|--------|--------|-------------------------------------------------|

|   | · | the      progress or perceived progress of our research and development      efforts; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | changes      in accounting treatments orprinciples; |
|--------|--------|-----------------------------------------------------|

|   | · | announcements      by us or our competitors of new technology, product and service offerings,      significant contracts, acquisitions or strategic      relationships; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | additions      or departures of key personnel; |
|--------|--------|------------------------------------------------|

|   | · | future      offerings or resales of our common stock or other    securities; |
|--------|--------|------------------------------------------------------------------------------|

|   | · | stock      market price and volume fluctuations of publicly-traded companies in      general and development companies in particular;  and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | general      political, economic and marketconditions. |
|--------|--------|--------------------------------------------------------|

----

| Item      1B.  | Unresolved      Staff Comments. |
|---------------------|---------------------------------|

| Item      2.  | Properties. |
|--------------------|-------------|

| Item      3.  | Legal      Proceedings. |
|--------------------|-------------------------|

| Item      4.  | Submission      of Matters to a Vote of SecurityHolders. |
|--------------------|----------------------------------------------------------|

----

| Item      5.  | Market      for Registrant’s Common Equity, Related  Stockholder |
|--------------------|------------------------------------------------------------------------|

| QuarterEnded            |   | CommonStock |   |
|-------------------------|--------|-------------|--------|
|                    |   | High        |   |   | Low |   |
|                    |   |        |   |   |   |   |
| September      30, 2007 |   | $           | 1.25   |   |   | $ | 0.78 |   |
| December      31, 2007  |   | $           | 1.05   |   |   | $ | 0.38 |   |
| March      31, 2008     |   | $           | 1.28   |   |   | $ | 0.29 |   |
| June      30, 2008      |   | $           | 1.99   |   |   | $ | 1.00 |   |
| September      30, 2008 |   | $           | 1.81   |   |   | $ | 0.88 |   |
| December      31, 2008  |   | $           | 1.25   |   |   | $ | 0.50 |   |
| March      31, 2009     |   | $           | 0.87   |   |   | $ | 0.33 |   |
| June      30, 2009      |   | $           | 0.97   |   |   | $ | 0.43 |   |

----

|                                                            |   | Number of securitiesto be issued upon exercise of outstanding options, warrants and rights and restrictedstock units |      |   | Weighted-averageexercise price of outstanding options, warrants and rights andrestricted stock units |   |    | Number of securitiesremainingavailable for futureissuanceunder equitycompensation plans |   |
|-----------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------|-----------------------------------------------------------------------------------------------------------------------|--------|
|                                                            |   |                                                                                                                                                                                            |      |   |                                                                                                                                                   |   |    |                                                                                                                  |   |
| Equity      compensation plans approved by security holders     |   |                                                                                                                                                                                            | 4,550,412 | (1)    |                                                                                                                                                   | $      | 1.70    |                                                                                                                  |   |   | 5,887,472 | (2) |
|                                                            |   |                                                                                                                                                                                            |      |   |                                                                                                                                                   |   |    |                                                                                                                  |   |   |   |   |
| Equity      compensation plans not approved by security holders |   |                                                                                                                                                                                            | —   |   |                                                                                                                                                   |   | — |                                                                                                                  |   |   | — |   |
|                                                            |   |                                                                                                                                                                                            |      |   |                                                                                                                                                   |   |    |                                                                                                                  |   |   |   |   |
| Total                                                           |   |                                                                                                                                                                                            | 4,550,412 | (1)    |                                                                                                                                                   | $      | 1.70    |                                                                                                                  |   |   | 5,887,472 | (2) |

----

----

----

----

----

----

|                                  |   | 7/1/04 |   |   | 6/30/05 |   |   | 6/30/06 |   |   | 6/30/07 |   |   | 6/30/08 |   |   | 6/30/09 |   |
|---------------------------------------|--------|--------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
|                                  |   |   |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |
| Senesco      Technologies, Inc.       |   | $      | 100.00 |   |    | $      | 56.83  |    |   | $      | 60.32   |   |   | $       | 36.51  |   |    | $      | 58.73 |   |   | $ | 26.35 |   |
| NYSE      Amex Composite Index        |   | $      | 100.00 |   |    | $      | 131.88 |    |   | $      | 164.58  |   |   | $       | 205.93 |   |    | $      | 204.46 |   |   | $ | 151.95 |   |
| RDG      Microcap Biotechnology Index |   | $      | 100.00 |   |    | $      | 76.14  |    |   | $      | 62.90   |   |   | $       | 42.63  |   |    | $      | 22.12 |   |   | $ | 15.62 |   |

----

|                                                                                  |   | Year Ended June 30,                        |    |
|---------------------------------------------------------------------------------------|--------|--------------------------------------------|---------|
|                                                                                  |   | 2009                                       |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                                                  |   | (In      thousands, except per share data) |    |
| Statement      of Operations Data:                                                    |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue                                                                               |   | $                                          | 275     |   |   | $ | 457 |   |   | $ | 300 |   |   | $ | 67 |   |   | $ | 125 |   |
| Operating      expenses:                                                              |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General      and administrative                                                       |   |                                       | 2,206   |   |   |   | 2,291 |   |   |   | 2,413 |   |   |   | 1,920 |   |   |   | 2,030 |   |
| Research      and development                                                         |   |                                       | 2,354   |   |   |   | 1,765 |   |   |   | 1,208 |   |   |   | 1,566 |   |   |   | 1,417 |   |
| Total      operating expenses                                                         |   |                                       | 4,560   |   |   |   | 4,056 |   |   |   | 3,621 |   |   |   | 3,486 |   |   |   | 3,447 |   |
| Loss      from operations                                                             |   |                                       | (4,285  | ) |   |   | (3,599 | ) |   |   | (3,321 | ) |   |   | (3,419 | ) |   |   | (3,322 | ) |
| Noncash      income                                                                   |   |                                       | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 136 |   |
| Sale      of state income tax loss - net                                              |   |                                       | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 153 |   |
| Amortization      of debt discount and financing costs                                |   |                                       | (478    | ) |   |   | (668 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest      expense – convertible notes                                       |   |                                       | (1,007  | ) |   |   | (434 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Interest      income, net                                                             |   |                                       | 43      |   |   |   | 100 |   |   |   | 69 |   |   |   | 104 |   |   |   | 54 |   |
| Net      loss                                                                         |   | $                                          | (5,727  | ) |   | $ | (4,601 | ) |   | $ | (3,252 | ) |   | $ | (3,315 | ) |   | $ | (2,979 | ) |
| Basic      and diluted net loss per common share                                      |   | $                                          | (.30    | ) |   | $ | (.26 | ) |   | $ | (.19 | ) |   | $ | (.21 | ) |   | $ | (.21 | ) |
| Basic      and diluted weighted average number of common shares      outstanding |   |                                       | 18,888  |   |   |   | 17,660 |   |   |   | 16,917 |   |   |   | 15,469 |   |   |   | 14,054 |   |
|                                                                                  |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      Sheet Data:                                                              |   |                                       |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash,      cash equivalents and investments                                           |   | $                                          | 1,431   |   |   | $ | 6,176 |   |   | $ | 658 |   |   | $ | 1,168 |   |   | $ | 4,481 |   |
| Working      capital                                                                  |   |                                       | 1,259   |   |   |   | 5,673 |   |   |   | 259 |   |   |   | 859 |   |   |   | 3,959 |   |
| Total      assets                                                                     |   |                                       | 7,122   |   |   |   | 10,643 |   |   |   | 3,322 |   |   |   | 3,535 |   |   |   | 6,113 |   |
| Accumulated      deficit                                                              |   |                                       | (35,950 | ) |   |   | (30,223 | ) |   |   | (25,622 | ) |   |   | (22,370 | ) |   |   | (19,055 | ) |
| Total      stockholders’ equity                                                 |   |                                       | 5,668   |   |   |   | 9,836 |   |   |   | 2,690 |   |   |   | 2,952 |   |   |   | 5,590 |   |

----

| Item      7. | Management's      Discussion and Analysis of Financial Condition and Results of      Operations. |
|--------------|--------------------------------------------------------------------------------------------------|

----

|   | · | Nonrefundable      upfront license fees that are received in exchange for the transfer of our      technology to licensees, for which no further obligations to the licensee      exist with respect to the basic technology transferred, are recognized as      revenue on the earlier of when payments are received or collections are      assured. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Nonrefundable      upfront license fees that are received in connection with agreements that      include time-based payments are, together with the time-based payments,      deferred and amortized ratably over the estimated research period of the      license. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Milestone      payments, which are contingent upon the achievement of certain research      goals, are recognized as revenue when the milestones, as defined in the      particular agreement, are achieved. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the      existence of any prior relationship between us and the third party      provider; |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | the      past results of prior research and development services performed by the      third party provider; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|   | · | the      scope and timing of the research and development services set forth in the      agreement with the third partyprovider. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

----

----

|   | · | the      scope, rate of progress and expense of our research      activities; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | the      interim results of our research; |
|--------|--------|-------------------------------------------|

|   | · | the      expense of additional research that may be required after review of the      interim results; |
|--------|--------|--------------------------------------------------------------------------------------------------------|

|   | · | the      terms and timing of any collaborative, licensing and other arrangements      that we may establish; |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|   | · | the      expense and timing of regulatoryapprovals; |
|--------|--------|-----------------------------------------------------|

|   | · | the      effect of competing technological and market developments;    and |
|--------|--------|----------------------------------------------------------------------------|

|   | · | the      expense of filing, prosecuting, defending and enforcing any patent claims      or other intellectual propertyrights. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                          |   | Payments Due by Period |      |
|-------------------------------------------------------------------------------|--------|---------------------------------------|-----------|
| Contractual Obligations                                                  |   | Total                                 |      |   | Less than 1 year |   |   | 1 - 3 years |   |   | 4 - 5 years |   |   | More than 5 years |   |
| Research      and Development Agreements (1)                                  |   | $                                     | 1,702,050 |   |   | $ | 1,702,050 |   |   | $ | — |   |   | $ | — |   |   | $ | — |   |
| Facility,      Rent and Operating Leases (2)                             |   | $                                     | 152,989   |   |   | $ | 79,420 |   |   | $ | 73,569 |   |   | $ | — |   |   | $ | — |   |
| Employment,      Consulting and Scientific Advisory Board Agreements (3) |   | $                                     | 531,970   |   |   | $ | 519,264 |   |   | $ | 12,706 |   |   | $ | — |   |   | $ | — |   |
| Total      Contractual Cash Obligations                                  |   | $                                     | 2,387,009 |   |   | $ | 2,300,734 |   |   | $ | 86,275 |   |   | $ | — |   |   | $ | — |   |

| (1) | Certain      of our research and development agreements disclosed herein provide that      payment is to be made in Canadian dollars and, therefore, the contractual      obligations are subject to fluctuations in the exchange    rate. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The      lease for our office space in New Brunswick, New Jersey is subject to      certain escalations for our proportionate share of increases in the      building’s operating costs. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Certain      of our employment and consulting agreements provide for automatic renewal,      which is not reflected in the table, unless terminated earlier by the      parties to the respectiveagreements. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | On      July 9, 2009, we entered into a Securities Purchase Agreement with Partlet      Holdings Ltd., for the issuance of common stock and warrants for gross      proceeds of $1,000,000. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 29, 2009, we entered into Securities Purchase Agreements with each of      Robert Forbes, Timothy Forbes and certain insiders and affiliates for the      issuance of common stock and warrants for an aggregate gross proceeds of      $530,000. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 29, 2009, we entered into a Securities Purchase Agreement with Cato      Holding Company for the issuance of common stock and warrants in exchange      for amounts currently owed by us to Cato Research Ltd in the amount of      $175,000. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      August 1, 2007 and August 29, 2007, we entered into binding Securities      Purchase Agreements with YA Global and Stanford and have sold to each of      YA9 Global and Stanford $5,000,000 of secured convertible notes and      accompanying warrants for aggregate gross proceeds in the amount of      $10,000,000. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | utilizing      our current cash balance andinvestments, |
|--------|--------|---------------------------------------------------------|

|   | · | achieving      some of the milestones set forth in our current licensing      agreements, |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | through      the execution of additional licensing agreements for our technology,      and |
|--------|--------|--------------------------------------------------------------------------------------------|

|  | · | through      the placement of equity or debtinstruments. |
|--|--------|----------------------------------------------------------|

|                            |   | Year      Ended June 30,             |   |
|---------------------------------|--------|--------------------------------------|--------|
|                            |   | 2009                                 |   |   | 2008 |   |   | Change |   |   | % |   |   | 2008 |   |   | 2007 |   |   | Change |   |   | % |   |
|                            |   | (In      thousands, except % values) |   |
| General      and administrative |   | $                                    | 2,206  |   |   | $ | 2,291 |   |   | $ | (85 | ) |   |   | (4 | )      % |   | $ | 2,291 |   |   | $ | 2,413 |   |   | $ | (122 | ) |   |   | (5 | )% |
| Research      and development   |   |                                 | 2,354  |   |   |   | 1,765 |   |   |   | 589 |   |   |   | 33 | % |   |   | 1,765 |   |   |   | 1,208 |   |   |   | 557 |   |   |   | 46 | % |
| Total      operating expenses   |   | $                                    | 4,560  |   |   | $ | 4,056 |   |   | $ | 504 |   |   |   | 12 | % |   | $ | 4,056 |   |   | $ | 3,621 |   |   | $ | 435 |   |   |   | 12 | % |

----

|                                           |   | Year      ended June 30, |   |
|------------------------------------------------|--------|--------------------------|--------|
|                                           |   | 2009                     |   |   | 2008 |   |   | 2007 |   |
|                                           |   | (In      thousands)      |   |
| Share-based      compensation                  |   | $                        | 445    |   |   | $ | 749 |   |   | $ | 910 |   |
| Payroll      and benefits                      |   |                     | 690    |   |   |   | 669 |   |   |   | 616 |   |
| Investor      relations                        |   |                     | 245    |   |   |   | 305 |   |   |   | 278 |   |
| Professional      fees                         |   |                     | 416    |   |   |   | 261 |   |   |   | 217 |   |
| Depreciation      and amortization             |   |                     | 112    |   |   |   | 97 |   |   |   | 166 |   |
| Other      general and administrative expenses |   |                     | 298    |   |   |   | 210 |   |   |   | 226 |   |
|                                           |   |                     |   |   |   |   |   |   |   |   |   |   |
| Total      general and administrative expenses |   | $                        | 2,206  |   |   | $ | 2,291 |   |   | $ | 2,413 |   |

|   | · | Share-based      compensation for Fiscal 2009 and 2008 consisted of the amortized portion      of the Black-Scholes value of options, restricted stock units and warrants      granted to directors, employees and consultants.  During Fiscal      2009 and 2008, the following options, warrants and restricted stock units      were granted: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                        |   | Fiscal 2009 |    |   | Fiscal 2008 |   |
|-----------------------------|--------|-------------|---------|--------|-------------|--------|
| Options                     |   |        | 834,812 |   |        |   | 1,069,600 |   |
| Warrants                    |   |        | 500     |   |        |   | 1,000 |   |
| Restricted      Stock Units |   |        | 136,000 |   |        |   | 337,700 |   |

|   | · | Payroll      and benefits increased primarily as a result of salary and health      insurance rate increases. |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | Investor      relations expense for Fiscal 2009 is lower than Fiscal 2008 primarily as a      result of a decrease in the cost of the annual report and investor      relations consulting costs. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Professional      fees increased during Fiscal 2009 compared to Fiscal 2008 primarily as a      result of an increase in accounting and legal fees.  Legal fees      increased primarily due to our multiple myeloma project and employee      compensation review.  Accounting and legal fees also increased      primarily due to the review and filing of our securities      filings. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Professional      fees increased during Fiscal 2008 compared to Fiscal 2007 primarily as a      result of an increase in accounting and legal fees in connection with the      additional disclosure included in the annual  report. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation      and amortization increased during Fiscal 2009 compared to Fiscal 2008      primarily as a result of an increase in amortization of patent      costs.  . |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Depreciation      and amortization decreased during Fiscal 2008 compared to Fiscal 2007      primarily as a result of a decrease in amortization of patent      costs.  During Fiscal 2008, we did not amortize the cost of our      human health pending patentapplications. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                |   | Year      Ended June 30,             |   |
|-------------------------------------|--------|--------------------------------------|--------|
|                                |   | 2009                                 |   |   | 2008 |   |   | Change |   |   | % |   |   | 2008 |   |   | 2007 |   |   | Change |   |   | % |   |
|                                |   | (In      thousands, except % values) |   |
| Stock-based      compensation       |   | $                                    | 62     |   |   | $ | 148 |   |   | $ | (86 | ) |   |   | (58 | )% |   | $ | 148 |   |   | $ | 60 |   |   | $ | 88 |   |   |   | 147 | % |
| Other      research and development |   |                                 | 2,292  |   |   |   | 1,617 |   |   |   | 675 |   |   |   | 38 | % |   |   | 1,617 |   |   |   | 1,148 |   |   |   | 469 |   |   |   | 41 | % |
| Total      research and development |   | $                                    | 2,354  |   |   | $ | 1,765 |   |   | $ | 589 |   |   |   | 33 | % |   | $ | 1,765 |   |   | $ | 1,208 |   |   | $ | 557 |   |   |   | 46 | % |

|   | · | Stock-based      compensation decreased during Fiscal 2009 compared to Fiscal 2008      primarily because the Black-Scholes calculated fair value of the options      and warrants granted during Fiscal 2009 were lower than Fiscal 2008      because the number of options granted were lower in Fiscal      2009. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Stock-based      compensation increased during Fiscal 2008 compared to Fiscal 2007      primarily because the Black-Scholes calculated fair value of the options      and warrants granted during Fiscal 2008 were higher than Fiscal 2007      because the number of options granted were higher in Fiscal      2008. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Other      research and development costs increased during Fiscal 2009 compared to      Fiscal 2008 primarily as a result of the expansion of our human health      programs, specifically our multiple myeloma project, which was partially      offset by a decrease in the cost of our research agreement with the      University of Waterloo due to the strengthening of the U.S. dollar against      the Canadian dollar. . |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Other      research and development costs increased during Fiscal 2008 compared to      Fiscal 2007 primarily as a result of the initiation of our multiple      myeloma project during Fiscal 2008.  Additionally, the budget in      connection with the research agreement with the University of Waterloo was      increased and the U.S. dollar was weaker against the Canadian      dollar. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                         |   | Year      ended June 30,             |   |
|----------------------------------------------|--------|--------------------------------------|--------|
|                                         |   | 2009                                 |   |   | % |   |   | 2008 |   |   | % |   |   | 2007 |   |   | % |   |
|                                         |   | (In      thousands, except % values) |   |
| Agricultural      research programs          |   | $                                    | 618    |   |   |   | 26 | % |   | $ | 771 |   |   |   | 44 | % |   | $ | 701 |   |   |   | 58 | % |
| Human      health research programs          |   |                                 | 1,736  |   |   |   | 74 | % |   |   | 994 |   |   |   | 56 | % |   |   | 507 |   |   |   | 42 | % |
| Total      research and development expenses |   | $                                    | 2,354  |   |   |   | 100 | % |   | $ | 1,765 |   |   |   | 100 | % |   | $ | 1,208 |   |   |   | 100 | % |

|   | · | Agricultural      research expenses decreased during Fiscal 2009 compared to Fiscal 2008      primarily as a result of a decrease in the allocation of resources from      agriculture to human health at the University of Waterloo and the      strengthening of the U.S. dollar against the Canadian    dollar. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Agricultural      research expenses increased during Fiscal 2008 compared to Fiscal 2007      primarily as a result of an increase in the budget in connection with our      research agreement at the University of Waterloo, an increase in      stock-based compensation, and the U.S. dollar was weaker against the      Canadian dollar. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Human      health research expenses increased during Fiscal 2009 compared to Fiscal      2008 primarily as a result of the ongoing multiple myeloma      project. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Human      health research expenses increased during Fiscal 2008 compared to Fiscal      2007 primarily as a result of the initiation of the multiple myeloma      project. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                 |   | Year Ended June      30,             |   |
|----------------------|--------|--------------------------------------|--------|
|                 |   | 2007                                 |   |   | 2008 |   |   | Change |   |   | % |   |   | 2008 |   |   | 2007 |   |   | Change |   |   | % |   |
|                 |   | (In      thousands, except % values) |   |
| Interest      income |   | $                                    | 43     |   |   | $ | 100 |   |   | $ | (57 | ) |   |   | (57 | )% |   | $ | 100 |   |   | $ | 69 |   |   | $ | 31 |   |   |   | 45 | % |

----

----

| Item      9. | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure. |
|--------------|-------------------------------------------------------------------------------------------------|

|   | · | Pertain      to the maintenance of records that in reasonable detail accurately and      fairly reflect the transactions and dispositions of the assets of our      company; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with generally accepted      accounting principles, and that receipts and expenditures of our company      are being made only in accordance with authorization of management and      directors of our company; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of our company’s assets that      could have a material effect on the financial  statements. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Item      10. | Directors,      Executive Officers and CorporateGovernance. |
|---------------|-------------------------------------------------------------|

| Item      12. | Security      Ownership of Certain Beneficial Owners and Management and Related      Stockholder Matters. |
|---------------|-----------------------------------------------------------------------------------------------------------|

----

|   | (a) | (1) | Financial      Statements. |
|--------|-----|-----|----------------------------|

|   | (a) | (2) | Financial      Statement Schedules. |
|--------|-----|-----|-------------------------------------|

|   | (a) | (3) | Exhibits. |
|--------|-----|-----|-----------|

| SENESCO      TECHNOLOGIES, INC. |
|---------------------------------|
|                            |   |
| By:                   | /s/ Bruce C. Galton |
|                            | Bruce      C. Galton, President and |
|                            | Chief      Executive Officer |
|                            | (principal      executive officer) |
|                            |   |
| By:                             | /s/ Joel Brooks |
|                            | Joel      Brooks, Chief Financial Officer |
|                            | (principal      financial and accounting |
|                            | officer) |

----

| Signature                   |   | Title                                                       |   | Date                    |
|-----------------------------|--------|-------------------------------------------------------------|--------|-------------------------|
|                        |   |                                                        |   |                    |
| /s/ Harlan W. Waksal, M.D   |   | Chairman      and Director                                  |   | September      28, 2009 |
| Harlan      W. Waksal, M.D. |   |                                                        |   |                    |
|                        |   |                                                        |   |                    |
| /s/ Bruce C. Galton         |   | President      and Chief Executive                          |   | September      28, 2009 |
| Bruce      C. Galton        |   | Officer      (principal executive officer)and      Director |   |                    |
|                        |   |                                                        |   |                    |
| /s/ Joel Brooks             |   | Chief      Financial Officer and Treasurer                  |   | September      28, 2009 |
| Joel      Brooks            |   | (principal      financial and accounting officer)           |   |                    |
|                        |   |                                                        |   |                    |
| /s/ John E. Thompson        |   | Executive      Vice President, Chief                        |   | September      28, 2009 |
| John      E. Thompson       |   | Scientific      Officer and Director                        |   |                    |
|                        |   |                                                        |   |                    |
| /s/ John Braca              |   | Director                                                    |   | September      28, 2009 |
| John      Braca             |   |                                                        |   |                    |
|                        |   |                                                        |   |                    |
| /s/ Christopher Forbes      |   | Director                                                    |   | September      28, 2009 |
| Christopher      Forbes     |   |                                                        |   |                    |
|                        |   |                                                        |   |                    |
| /s/ Warren J. Isabelle      |   | Director                                                    |   | September      28, 2009 |
| Warren      J. Isabelle     |   |                                                        |   |                    |
|                        |   |                                                        |   |                    |
| /s/ Thomas C. Quick         |   | Director                                                    |   | September      28, 2009 |
| Thomas      C. Quick        |   |                                                        |   |                    |
|                        |   |                                                        |   |                    |
| /s/ David Rector            |   | Director                                                    |   | September      28, 2009 |
| David      Rector           |   |                                                        |   |                    |
|                        |   |                                                        |   |                    |
| /s/ Rudolf Stalder          |   | Director                                                    |   | September      28, 2009 |
| Rudolf      Stalder         |   |                                                        |   |                    |
|                        |   |                                                        |   |                    |
| /s/ Jack Van Hulst          |   | Director                                                    |   | September      28, 2009 |
| Jack      Van Hulst         |   |                                                        |   |                    |

----

| ExhibitNo.       |   | Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                          |
|------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1              |   | Merger      Agreement and Plan of Merger by and among Nava Leisure USA, Inc., an Idaho      corporation, the Principal Stockholders (as defined therein), Nava Leisure      Acquisition Corp., and Senesco, Inc., dated October 9,      1998.  (Incorporated by reference to Senesco Technologies, Inc.      definitive proxy statement on Schedule 14A dated January 11,      1999.) |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                            |
| 2.2              |   | Merger      Agreement and Plan of Merger by and between Senesco Technologies, Inc., an      Idaho corporation, and Senesco Technologies, Inc., a Delaware corporation,      dated September 30, 1999.  (Incorporated by reference to Senesco      Technologies, Inc. quarterly report on Form 10-QSB for the period ended      September 30, 1999.)                                   |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                            |
| 3.1              |   | Amended      and Restated Certificate of Incorporation of Senesco Technologies, Inc.      filed with the State of Delaware on January 22,      2007.  (Incorporated by reference to Senesco Technologies, Inc.      quarterly report on Form 10-Q for the period ended December 31,      2006.)                                                                                       |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                            |
| 3.2              |   | Certificate      of Amendment to the Amended and Restated Certificate of Incorporation of      Senesco Technologies, Inc. filed with the State of Delaware on January 22,      2008. (Incorporated by reference to Exhibit 3.1 of Senesco Technologies,      Inc. quarterly report on Form 10-Q for the period ended December 31,      2007.)                                                   |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                            |
| 3.3      † |   | Certificate      of Amendment to the Amended and Restated Certificate of Incorporation of      Senesco Technologies, Inc. filed with the State of Delaware on September      22, 2009.                                                                                                                                                                                                          |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                            |
| 3.4              |   | Amended      and Restated By-laws of Senesco Technologies, Inc. as adopted on October      2, 2000. (Incorporated by reference to Senesco Technologies, Inc.      quarterly report on Form 10-QSB for the period ended December 31,      2000.)                                                                                                                                                 |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.1              |   | Form      of Warrant with Parenteau Corporation. (Incorporated by reference to      Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period      ended December 31, 1999.)                                                                                                                                                                                                    |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.2              |   | Form      of Warrant with Strategic Growth International, Inc. (Incorporated by      reference to Senesco Technologies, Inc. quarterly report on Form 10-QSB      for the period ended December 31, 1999.)                                                                                                                                                                                      |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.3              |   | Form      of Warrant issued to Stanford Venture Capital Holdings, Inc. and certain      officers of Stanford Venture Capital Holdings, Inc. (with attached      schedule of parties and terms thereto). (Incorporated by reference to      Exhibit 4.1 of Senesco Technologies, Inc. quarterly report on Form 10-QSB      for the period ended December 31, 2001.)                              |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.4              |   | Form      of Warrant issued to certain accredited investors (with attached schedule      of parties and terms thereto).  (Incorporated by reference to      Exhibit 4.1 of Senesco Technologies, Inc. Current Report on Form 8-K,      filed on May 4, 2005.)                                                                                                                         |
|             |   |                                                                                                                                                                                                                                                                                                                                                                                            |
| 4.5              |   | Form      of Warrant issued to Oppenheimer & Co. Inc. or its designees, dated as      of May 9, 2005. (Incorporated by reference to Exhibit 4.2 of Senesco      Technologies, Inc. quarterly report on Form 10-QSB for the period ended      March 31,2005.)                                                                                                                                |

----

| ExhibitNo. |   | Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                       |
|------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.6        |   | Form      of Warrant issued to H.C. Wainwright & Co., Inc., or its designees,      dated as of October 10, 2006 (Incorporated by reference to Exhibit 10.42      of Senesco Technologies, Inc. annual report on Form 10-K for the period      ended June 30, 2006.)                                                                                                                                      |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.7        |   | Form      or Warrant issued to certain accredited investors dated October 10, 2006      (with attached schedule of parties and terms      thereto).  (Incorporated by reference to Exhibit 10.40 of      Senesco Technologies, Inc. annual report on Form 10-K for the period ended      June 30, 2006.)                                                                                           |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.8        |   | Form      of Series A Warrant issued to YA Global Investments, L.P. (Incorporated by      reference to Exhibit 4.15 of Senesco Technologies, Inc. annual report on      Form 10-K for the period ended June 30, 2007.)                                                                                                                                                                                       |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.9        |   | Form      of Series A Warrant issued to Stanford Venture Capital Holdings, Inc.      (Incorporated by reference to Exhibit 4.16 of Senesco Technologies, Inc.      annual report on Form 10-K for the period ended June 30,      2007.)                                                                                                                                                                      |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.10       |   | Form      of Debenture issued to YA Global Investments, L.P. (Incorporated by      reference to Exhibit 4.17 of Senesco Technologies, Inc. annual report on      Form 10-K for the period ended June 30, 2007.)                                                                                                                                                                                              |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.11       |   | Form      of Debenture issued to Stanford Venture Capital Holdings, Inc.      (Incorporated by reference to Exhibit 4.18 of Senesco Technologies, Inc.      annual report on Form 10-K for the period ended June 30,      2007.)                                                                                                                                                                             |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.12       |   | Form      of Series B Warrant issued to YA Global Investments, L.P. (Incorporated by      reference to Exhibit 4.19 of Senesco Technologies, Inc. annual report on      Form 10-K for the period ended June 30, 2007.)                                                                                                                                                                                       |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.13       |   | Form      of Series B Warrant issued to Stanford Venture Capital Holdings, Inc.      (Incorporated by reference to Exhibit 4.20 of Senesco Technologies, Inc.      annual report on Form 10-K for the period ended June 30,      2007.)                                                                                                                                                                      |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.14       |   | Form      of Warrant issued to H.C. Wainwright & Co., Inc or its designees.      (Incorporated by reference to Exhibit 4.21 of Senesco Technologies, Inc.      annual report on Form 10-K for the period ended June    30,2008.)                                                                                                                                                                         |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.15       |   | Form      of Series A Warrant issued to Partlet Holdings Ltd. (Incorporated by      reference to Exhibit 4.1 of Senesco Technologies, Inc. Current Report on      Form 8-K, filed on July 10, 2009.)                                                                                                                                                                                                         |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.16       |   | Form      of Series B Warrant issued to Partlet Holdings Ltd. (Incorporated by      reference to Exhibit 4.1 of Senesco Technologies, Inc. Current Report on      Form 8-K, filed on July 10, 2009.)                                                                                                                                                                                                         |
|       |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.17       |   | Form      of Series A Warrant issued to each of Robert Forbes, Timothy Forbes,      Harlan W. Waksal, M.D., Rudolf Stalder, Christopher Forbes, David Rector,      John N. Braca, Jack Van Hulst, Warren Isabelle and the Thomas C. Quick      Charitable Foundation. (Incorporated by reference to Exhibit 4.1 of      Senesco Technologies, Inc. Current Report on Form 8-K, filed on July 30,      2009.) |

----

| ExhibitNo.               |   | Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.18                     |   | Form      of Series B Warrant issued to each of Robert Forbes, Timothy Forbes,      Harlan W. Waksal, M.D., Rudolf Stalder, Christopher Forbes, David Rector,      John N. Braca, Jack Van Hulst, Warren Isabelle and the Thomas C. Quick      Charitable Foundation. (Incorporated by reference to Exhibit 4.1 of      Senesco Technologies, Inc. Current Report on Form 8-K, filed on July 30,      2009.) |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.19                     |   | Form      of Series A Warrant issued to Cato Holding Company. (Incorporated by      reference to Exhibit 4.1 of Senesco Technologies, Inc. Current Report on      Form 8-K, filed on July 30, 2009.)                                                                                                                                                                                                         |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
| 4.20                     |   | Form      of Series B Warrant issued to Cato Holding Company. (Incorporated by      reference to Exhibit 4.1 of Senesco Technologies, Inc. Current Report on      Form 8-K, filed on July 30, 2009.)                                                                                                                                                                                                         |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|        10.1         |   | Indemnification      Agreement by and between Senesco Technologies, Inc. and Christopher      Forbes, dated January 21, 1999.  (Incorporated by reference to      Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period      ended December 31, 1998.)                                                                                                                         |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|        10.2         |   | Indemnification      Agreement by and between Senesco Technologies, Inc. and Thomas C. Quick,      dated February 23, 1999.  (Incorporated by reference to Senesco      Technologies, Inc. quarterly report on Form 10-QSB for the period ended      March 31, 1999.)                                                                                                                              |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|        10.3         |   | Indemnification      Agreement by and between Senesco Technologies, Inc. and Ruedi Stalder,      dated March 1, 1999.  (Incorporated by reference to Senesco      Technologies, Inc. quarterly report on Form 10-QSB for the period ended      March 31, 1999.)                                                                                                                                    |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|        10.4         |   | Indemnification      Agreement by and between Senesco Technologies, Inc. and Bruce C. Galton,      dated October 4, 2001. (Incorporated by reference to Exhibit 10.10 of      Senesco Technologies, Inc. quarterly report on Form 10-QSB for the      quarterly period ended December 31, 2001.)                                                                                                             |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|        10.5         |   | Indemnification      Agreement by and between Senesco Technologies, Inc. and Jack Van Hulst,      dated January 16, 2007. (Incorporated by reference to Exhibit 10.13 of      Senesco Technologies, Inc. annual report on Form 10-K for the period ended      June 30, 2007)                                                                                                                                 |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|        10.6         |   | Indemnification      Agreement by and between Senesco Technologies, Inc. and John Braca, dated      October 8, 2003.  (Incorporated by reference to Exhibit 10.38 of      Senesco Technologies, Inc. annual report on Form 10-KSB for the period      ended June 30, 2004.)                                                                                                                        |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|        10.7         |   | Indemnification      Agreement by and between Senesco Technologies, Inc. and David Rector dated      as of April, 2002.  (Incorporated by reference to Exhibit 10.1      of Senesco Technologies, Inc. quarterly report on Form 10-QSB for the      period ended September 30, 2004.)                                                                                                              |
|                     |   |                                                                                                                                                                                                                                                                                                                                                                                                         |
|        10.8 † |   | Indemnification      Agreement by and between Senesco Technologies, Inc. and Harlan W. Waksal,      M.D. dated as of October 24,2008.                                                                                                                                                                                                                                                                        |

----

| ExhibitNo.                 |   | Description of Exhibit                                                                                                                                                                                                                                                                                                                                        |
|----------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        10.9 †   |   | Indemnification      Agreement by and between Senesco Technologies, Inc. and Warren Isabelle      dated as of June 8, 2009.                                                                                                                                                                                                                                   |
|                       |   |                                                                                                                                                                                                                                                                                                                                                          |
|        10.10 *        |   | Employment      Agreement by and between Senesco, Inc. and Sascha P. Fedyszyn, dated      January 21, 1999. (Incorporated by reference to Senesco Technologies, Inc.      quarterly report on Form 10-QSB for the period ended December 31,      1998.)                                                                                                       |
|                       |   |                                                                                                                                                                                                                                                                                                                                                          |
|        10.11 *        |   | Employment      Agreement by and between Senesco Technologies, Inc. and Bruce C. Galton,      dated October 4, 2001. (Incorporated by reference to Exhibit 10.9 of      Senesco Technologies, Inc. quarterly report on Form 10-QSB for the period      ended December 31, 2001.)                                                                              |
|                       |   |                                                                                                                                                                                                                                                                                                                                                          |
|        10.12 *        |   | Employment      Agreement by and between Senesco Technologies, Inc. and Joel Brooks, dated      July 1, 2003.  (Incorporated by reference to Exhibit 10.29 of      Senesco Technologies, Inc. annual report on Form 10-KSB for the period      ended June 30, 2003.)                                                                                |
|                       |   |                                                                                                                                                                                                                                                                                                                                                          |
|        10.13 *        |   | Employment      Agreement by and between Senesco Technologies, Inc. and Richard Dondero,      dated July 19, 2004.  (Incorporated by reference to Exhibit      10.39 of Senesco Technologies, Inc. annual report on Form 10-KSB for the      period ended June 30, 2004.)                                                                           |
|                       |   |                                                                                                                                                                                                                                                                                                                                                          |
|        10.14 *        |   | Consulting      Agreement by and between Senesco Technologies, Inc. and John E. Thompson,      Ph.D., dated July 12, 1999.  (Incorporated by reference to      Senesco Technologies, Inc. annual report on Form 10-KSB for the period      ended June 30, 2000.)                                                                                    |
|                       |   |                                                                                                                                                                                                                                                                                                                                                          |
|        10.15 *        |   | Amendment      to Consulting Agreement of July 12, 1999, as modified on February 8, 2001,      by and between Senesco, Inc. and John E. Thompson, Ph.D., dated December      13, 2002.  (Incorporated by reference to Exhibit 10.1 of Senesco      Technologies, Inc. quarterly report on Form 10-QSB for the period ended      December 31, 2002.) |
|                       |   |                                                                                                                                                                                                                                                                                                                                                          |
|        10.16 *        |   | Amendment      # 5 to Consulting Agreement of July 12, 1999, as modified, by and between      Senesco, Inc. and John E. Thompson, Ph.D., dated June 15, 2007.      (Incorporated by reference to Exhibit 10.49 of Senesco Technologies, Inc.      annual report on Form 10-K for the period ended June 30,      2007.)                                        |
|                       |   |                                                                                                                                                                                                                                                                                                                                                          |
|        10.17 *† |   | Amendment      # 6 to Consulting Agreement of July 12, 1999, as modified, by and between      Senesco, Inc. and John E. Thompson, Ph.D., dated June 25,      2009.                                                                                                                                                                                            |
|                       |   |                                                                                                                                                                                                                                                                                                                                                          |
|        10.18 +        |   | License      Agreement by and between Senesco Technologies, Inc. and Harris Moran Seed      Company, dated November 19, 2001. (Incorporated by reference to Exhibit      10.8 of Senesco Technologies, Inc. quarterly report on Form 10-QSB for the      period ended December 31, 2001.)                                                                     |
|                       |   |                                                                                                                                                                                                                                                                                                                                                          |
|        10.19 +        |   | Development      Agreement by and between Senesco Technologies, Inc. and ArborGen, LLC,      dated June 28, 2002.  (Incorporated by reference to Exhibit      10.31 of Senesco Technologies, Inc. annual report on Form 10-KSB for the      year ended June 30,2002.)                                                                               |

----

| ExhibitNo.          |   | Description of Exhibit                                                                                                                                                                                                                                                                                            |
|---------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        10.20 + |   | Commercial      License Agreement by and between Senesco Technologies, Inc. and ArborGen,      LLC dated as of December 21, 2006.  (Incorporated by reference      to Senesco Technologies, Inc. quarterly report on Form 10-Q for the period      ended December 31, 2006.)                            |
|                |   |                                                                                                                                                                                                                                                                                                              |
|        10.21 + |   | Development      and License Agreement by and between Senesco Technologies, Inc. and      Calwest Seeds, dated September 14, 2002.  (Incorporated by      reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report      on Form 10-QSB for the period ended September 30,2002.)         |
|                |   |                                                                                                                                                                                                                                                                                                              |
|        10.22 + |   | Development      and License Agreement by and between Senesco Technologies, Inc. and The      Scotts Company, dated March 8,      2004.  (Incorporated by reference to Exhibit 10.1 of Senesco      Technologies, Inc. quarterly report on Form 10-QSB for the period ended      March 31, 2004.)  |
|                |   |                                                                                                                                                                                                                                                                                                              |
|        10.23 + |   | Development      and License Agreement with Broin and Associates, Inc. (currently known as      Poet) dated as of October 14, 2004.  (Incorporated by reference      to Exhibit 10.2 of Senesco Technologies, Inc. quarterly report on Form      10-QSB for the period ended September 30, 2004.)       |
|                |   |                                                                                                                                                                                                                                                                                                              |
|        10.24 + |   | License      Agreement by and between Senesco Technologies, Inc. and Bayer CropScience      GmbH, dated as of November 8, 2006.  (Incorporated by reference      to Senesco Technologies, Inc. quarterly report on Form 10-Q for the      quarterly period ended December 31, 2006.)                    |
|                |   |                                                                                                                                                                                                                                                                                                              |
|        10.25 + |   | License      Agreement with Bayer CropScience AG dated as of July 23, 2007.      (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc.      quarterly report on Form 10-Q for the period ended September 30,      2007.)                                                                       |
|                |   |                                                                                                                                                                                                                                                                                                              |
|        10.26 + |   | Patent      License Agreement with Monsanto Company dated as of August 6, 2007.      (Incorporated by reference to Exhibit 10.2 of Senesco Technologies, Inc.      quarterly report on Form 10-Q for the period ended September 30,      2007.)                                                                   |
|                |   |                                                                                                                                                                                                                                                                                                              |
|        10.27 + |   | License      Agreement with Bayer CropScience AG dated as of September 17, 2007.      (Incorporated by reference to Exhibit 10.3 of Senesco Technologies, Inc.      quarterly report on Form 10-Q for the period ended September 30,      2007.)                                                                  |
|                |   |                                                                                                                                                                                                                                                                                                              |
|        10.28   |   | Research      Agreement by and among Senesco Technologies, Inc., Dr. John E. Thompson      and the University of Waterloo, dated September 1, 1998, as amended.      (Incorporated by reference to Senesco Technologies, Inc. quarterly report      on Form 10-QSB for the period ended December 31, 1998.)       |
|                |   |                                                                                                                                                                                                                                                                                                              |
|        10.29   |   | Research      Agreement by and among Senesco Technologies, Inc., Dr. John E. Thompson      and the University of Waterloo, dated May 1,      2002.  (Incorporated by reference to Exhibit 10.29 of Senesco      Technologies, Inc. annual report on Form 10-KSB for the year ended June      30, 2002.) |
|                |   |                                                                                                                                                                                                                                                                                                              |
|        10.30   |   | Amendment      to Research Agreement by and among the University of Waterloo, Senesco,      Inc., and Dr. John E. Thompson, Ph.D., dated August 1, 2007. (Incorporated      by reference to Exhibit 10.42 of Senesco Technologies, Inc. annual report      on Form 10-K for the period ended June 30,  2007.)     |

----

| ExhibitNo.                |   | Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        10.31         |   | Amendment      to Research Agreement by and among the University of Waterloo, Senesco,      Inc. and Dr. John E. Thompson, Ph.D., dated August 25, 2008. (Incorporated      by reference to Exhibit 10.28 of Senesco Technologies, Inc. annual report      on Form 10-K for the period ended June 30, 2008.)                                                                                                                                      |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        10.32 † |   | Amendment      to Research Agreement by and among the University of Waterloo, Senesco,      Inc. and Dr. John E. Thompson, Ph.D., dated August 27,    2009.                                                                                                                                                                                                                                                                                       |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        10.33    +    |   | Master      Product Sale Agreement with VGXI, Inc. dated as of June 27, 2008.      (Incorporated by reference to Exhibit 10.29 of Senesco Technologies, Inc.      annual report on Form 10-K for the period ended June 30,      2008.)                                                                                                                                                                                                            |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        10.34         |   | Master      Product Sale Agreement with Polyplus-transfection dated as of June 30,      2008. (Incorporated by reference to Exhibit 10.30 of Senesco Technologies,      Inc. annual report on Form 10-K for the period ended June 30,      2008.)                                                                                                                                                                                                 |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        10.35         |   | Proposal      for Manufacture and Supply by and between Avecia Biotechnology, Inc. and      Senesco Technologies, Inc. dated as of September 4, 2008. (Incorporated by      reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report      on Form 10-Q for the period ended September 30, 2008.)                                                                                                                                  |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        10.36         |   | Proposal      for Biodistribution and Repeat Dose Toxicity Studies in Mice by and      between BioReliance and Senesco Technologies, Inc. dated as of September      5, 2008. (Incorporated by reference to Exhibit 10.2 of Senesco      Technologies, Inc. quarterly report on Form 10-Q for the period ended      September 30, 2008.)                                                                                                          |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        10.37         |   | Services      Agreement by and between KBI BioPharma, Inc. and Senesco Technologies,      Inc. dated as of September 15, 2008. (Incorporated by reference to Exhibit      10.3 of Senesco Technologies, Inc. quarterly report on Form 10-Q for the      period ended September 30, 2008.)                                                                                                                                                         |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        10.38         |   | Agreement      for Service on Senesco Technologies, Inc. Scientific Advisory Board by and      between Senesco Technologies, Inc. and Dr. Charles A. Dinarello, dated      February 12, 2002.  (Incorporated by reference to Exhibit 10.6      of Senesco Technologies, Inc. quarterly report on Form 10-QSB for the      period ended March 31, 2002.)                                                                                 |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        10.39         |   | Agreement      for Service on Senesco Technologies, Inc. Scientific Advisory Board by and      between Senesco Technologies, Inc. and James W. Mier, M.D., dated April 2,      2007. (Incorporated by reference to Exhibit 10.43 of Senesco Technologies,      Inc. annual report on Form 10-K for the period ended June 30,      2007.)                                                                                                          |
|                      |   |                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|        10.40         |   | Financial      Advisory Agreement by and among Senesco Technologies, Inc., Stanford Group      Company, Stanford Venture Capital Holdings, Inc., Stanford International      Bank, Ltd., Ronald Stein, Daniel Bogar, Osvaldo Pi and William Fusselmann      dated October 11, 2006.  (Incorporated by reference to Exhibit      10.35 of Senesco Technologies, Inc. annual report on Form 10-K for the      period ended June 30,2006.) |

----

| ExhibitNo.        |   | Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        10.41 |   | Amendment      No. 1 to the financial advisory agreement by and between Stanford Group      Company and Senesco Technologies, Inc., dated February 14, 2008.      (Incorporated by reference to Exhibit 10.1 of Senesco Technologies, Inc.      quarterly report on Form 10-Q for the period ended December 31,      2007.)                                                                                                                         |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|        10.42 |   | Form      of Securities Purchase Agreement by and between Senesco Technologies, Inc.      and certain accredited investors (with attached schedule of parties and      terms thereto). (Incorporated by reference to Exhibit 10.1 of Senesco      Technologies, Inc. Current Report on Form 8-K, filed on February 3,      2004.)                                                                                                                   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|        10.43 |   | Amendment      No. 1 to the Securities Purchase Agreement by and between Senesco      Technologies, Inc. and Crestview Capital Master,      L.L.C.  (Incorporated by reference to Exhibit 10.1 of Senesco      Technologies, Inc. Current Report on Form 8-K, filed on February 13,      2004.)                                                                                                                                           |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|        10.44 |   | Form      of Securities Purchase Agreement by and between Senesco Technologies, Inc.      and certain accredited investors (with schedule of parties and terms      thereto).  (Incorporated by reference to Exhibit 10.1 of Senesco      Technologies, Inc. Current Report on Form 8-K filed on May 4,      2005.)                                                                                                                       |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|        10.45 |   | Registration      Rights Agreement by and among Senesco Technologies, Inc., Stanford Group      Company, Stanford Venture Capital Holdings, Inc., Stanford International      Bank, Ltd., Ronald Stein, Daniel Bogar, Osvaldo Pi and William Fusselmann      dated October 11, 2006.  (Incorporated by reference to Exhibit      10.36 of Senesco Technologies, Inc. annual report on Form 10-K for the      period ended June 30, 2006.) |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|        10.46 |   | Form      of Securities Purchase Agreement by and between Senesco Technologies, Inc.      and certain accredited investors dated October 10, 2006 (with attached      schedule of parties and terms thereto).  (Incorporated by      reference to Exhibit 10.38 of Senesco Technologies, Inc. annual report on      Form 10-K for the period ended June 30, 2006.)                                                                        |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|        10.47 |   | Form      of Registration Rights Agreement by and between Senesco Technologies, Inc      and certain accredited investors dated October 10, 2006 (with attached      schedule of parties and terms thereto).  (Incorporated by      reference to Exhibit 10.39 of Senesco Technologies, Inc. annual report on      Form 10-K for the period ended June 30, 2006.)                                                                         |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|        10.48 |   | Securities      Purchase Agreement by and between Senesco Technologies, Inc. and YA Global      Investments, L.P. (Incorporated by reference to Exhibit 10.44 of Senesco      Technologies, Inc. annual report on Form 10-K for the period ended June      30, 2007.)                                                                                                                                                                               |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|        10.49 |   | Registration      Rights Agreement by and between Senesco Technologies, Inc. and YA Global      Investments, L.P. (Incorporated by reference to Exhibit 10.45 of Senesco      Technologies, Inc. annual report on Form 10-K for the period ended June      30, 2007.)                                                                                                                                                                               |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|        10.50 |   | Securities      Purchase Agreement by and between Senesco Technologies, Inc. and Stanford      Venture Capital Holdings, Inc. (Incorporated by reference to Exhibit 10.46      of Senesco Technologies, Inc. annual report on Form 10-K for the period      ended June 30, 2007.)                                                                                                                                                                   |
|              |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|        10.51 |   | Registration      Rights Agreement by and between Senesco Technologies, Inc. and Stanford      Venture Capital Holdings, Inc. (Incorporated by reference to Exhibit 10.47      of Senesco Technologies, Inc. annual report on Form 10-K for the period      ended June 30,2007.)                                                                                                                                                                    |

----

| ExhibitNo.          |   | Description of Exhibit                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        10.52   |   | Security      Agreement dated as of September 21, 2007 by and between Senesco      Technologies, Inc. and its subsidiaries and YA Global Investments, L.P.      (Incorporated by reference to Exhibit 10.48 of Senesco Technologies, Inc.      annual report on Form 10-K for the period ended June 30,      2007.)                                                                                                                                                                    |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|        10.53   |   | Security      Agreement dated as of December 20, 2007 by and between Senesco      Technologies, Inc. and its subsidiaries and Stanford Venture Capital      Holdings, Inc. (Incorporated by reference to Exhibit 10.50 of Senesco      Technologies, Inc. annual report on Form 10-K for the period ended June      30, 2008.)                                                                                                                                                         |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|        10.54   |   | Securities      Purchase Agreement by and between Senesco Technologies, Inc. and Partlet      Holdings Ltd. Dated as of July 9, 2009. (Incorporated by reference to      Exhibit 10.1 of Senesco Technologies, Inc. Current Report on Form 8-K,      filed on July 10, 2009.)                                                                                                                                                                                                          |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|        10.55   |   | Securities      Purchase Agreement by and between Senesco Technologies, Inc. and each of      Robert Forbes, Timothy Forbes, Harlan W. Waksal, M.D., Rudolf Stalder,      Christopher Forbes, David Rector, John N. Braca, Jack Van Hulst, Warren      Isabelle and the Thomas C. Quick Charitable Foundation dated as of July      29, 2009. (Incorporated by reference to Exhibit 10.1 of Senesco      Technologies, Inc. Current Report on Form 8-K , filed on July 30,      2009.) |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|        10.56   |   | Securities      Purchase Agreement by and between Senesco Technologies, Inc. and Cato      Holding Company dated as of July 29, 2009. (Incorporated by reference to      Exhibit 10.2 of Senesco Technologies, Inc. Current Report on Form 8-K ,      filed on July 30, 2009.)                                                                                                                                                                                                         |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|        10.57   |   | Office      lease by and between Senesco Technologies, Inc. and Matrix/AEW NB, LLC,      dated March 16, 2001.  (Incorporated by reference to Senesco      Technologies, Inc. quarterly report on Form 10-QSB for the period ended      March 31, 2001.)                                                                                                                                                                                                                     |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|        10.58   |   | First      amendment of office lease by and between Senesco Technologies, Inc. and      Matrix/AEW NB, LLC, dated May 13, 2005 (Incorporated by reference to      Exhibit 10.8 of Senesco Technologies, Inc annual report on Form 10-KSB for      the period ended June 30, 2005.)                                                                                                                                                                                                     |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|        10.59 * |   | 1998      Stock Incentive Plan, as amended on December 13, 2002. (Incorporated by      reference to Exhibit 10.7 of Senesco Technologies, Inc. quarterly report      on Form 10-QSB for the period ended December 31, 2002.)                                                                                                                                                                                                                                                           |
|                |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|        10.60*  |   | Senesco      Technologies, Inc. 2008 Incentive Compensation Plan. (Incorporated by      reference to Exhibit 10.1 of Senesco Technologies, Inc. quarterly report      on Form 10-Q for the period ended December 31,  2008.)                                                                                                                                                                                                                                                           |

----

| ExhibitNo.               |   | Description of Exhibit                                                                                                                                                    |
|--------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        21           |   | Subsidiaries      of the Registrant. (Incorporated by reference to Senesco Technologies,      Inc. annual report on Form 10-KSB for the period ended June 30,      1999.) |
|                     |   |                                                                                                                                                                      |
|   23.1    †   |   | Consent      of Goldstein Golub Kessler LLP.                                                                                                                              |
|                     |   |                                                                                                                                                                      |
|        23.2 † |   | Consent      of McGladrey & Pullen, LLP.                                                                                                                              |
|                     |   |                                                                                                                                                                      |
|   31.1    †   |   | Certification      of the principal executive officer pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                     |
|                     |   |                                                                                                                                                                      |
|   31.2    †   |   | Certification      of the principal financial and accounting officer pursuant to Section 302      of the Sarbanes-Oxley Act of 2002.                                      |
|                     |   |                                                                                                                                                                      |
|   32.1    †   |   | Certification      of the principal executive officer pursuant to Section 906 of the      Sarbanes-Oxley Act of 2002.                                                     |
|                     |   |                                                                                                                                                                      |
|   32.2    †   |   | Certification      of the principal financial and accounting officer pursuant to Section 906      of the Sarbanes-Oxley Act of 2002.                                      |
|                     |   |                                                                                                                                                                      |

| * | A      management contract or compensatory plan or arrangement required to be      filed as an exhibit pursuant to Item 13(a) of Form  10-K. |
|---|----------------------------------------------------------------------------------------------------------------------------------------------|

| † | Filed      herewith. |
|---------|----------------------|

| +       The SEC granted Confidential Treatment for portions of this      Exhibit. |
|----------------------------------------------------------------------------------------|

----

----

----

| Reports      of Independent Registered Public Accounting Firm |   | F-2      – F-3  |
|---------------------------------------------------------------|--------|-----------------------|
|                                                          |   |                  |
| Consolidated      Financial Statements:                       |   |                  |
|                                                          |   |                  |
| Balance      Sheets                                           |   | F-4                   |
| Statements      of Operations                                 |   | F-5                   |
| Statements      of Stockholders' Equity                       |   | F-6      - F-10       |
| Statements      of Cash Flows                                 |   | F-11      – F12 |
| Notes      to Consolidated Financial Statements               |   | F-13      - F-38      |

----

----

----

----

|                                                                                                                                    |   | June      30, |        |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|
|                                                                                                                                    |   | 2009          |        |   | 2008 |   |
| ASSETS                                                                                                                                  |   |          |        |   |   |   |
| Current      Assets:                                                                                                                    |   |          |        |   |   |   |
| Cash      and cash equivalents                                                                                                          |   | $             | 380,569     |   |   | $ | 5,676,985 |   |
| Short-term      investments                                                                                                             |   |          | 1,050,000   |   |   |   | 500,000 |   |
| Prepaid      expenses and other current assets                                                                                          |   |          | 1,161,348   |   |   |   | 180,556 |   |
| Total      current assets                                                                                                               |   |          | 2,591,917   |   |   |   | 6,357,541 |   |
|                                                                                                                                    |   |          |        |   |   |   |   |   |
| Property      and Equipment, net                                                                                                        |   |          | 5,986       |   |   |   | 5,459 |   |
| Intangibles,      net                                                                                                                   |   |          | 3,884,999   |   |   |   | 3,213,543 |   |
| Deferred      Financing Costs, net of amortization of $592,308 and $168,706,      respectively                                          |   |          | 632,324     |   |   |   | 1,059,230 |   |
| Deferred      Income Tax Asset, net of valuation allowance of $11,520,000 and      $9,152,000, respectively                             |   |          | -           |   |   |   | - |   |
| Security      Deposit                                                                                                                   |   |          | 7,187       |   |   |   | 7,187 |   |
| Total      Assets                                                                                                                       |   | $             | 7,122,413   |   |   | $ | 10,642,960 |   |
|                                                                                                                                    |   |          |        |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                               |   |          |        |   |   |   |   |   |
| Current      Liabilities:                                                                                                               |   |          |        |   |   |   |   |   |
| Accounts      payable                                                                                                                   |   | $             | 976,680     |   |   | $ | 370,167 |   |
| Accrued      expenses                                                                                                                   |   |          | 355,937     |   |   |   | 314,267 |   |
| Total      current liabilities                                                                                                          |   |          | 1,332,617   |   |   |   | 684,434 |   |
|                                                                                                                                    |   |          |        |   |   |   |   |   |
| Convertible      Notes Payable, net of discount of $9,448,783 and $9,499,943,      respectively                                         |   |          | 6,217       |   |   |   | 57 |   |
| Grant      Payable                                                                                                                      |   |          | 99,728      |   |   |   | 99,728 |   |
| Other      Liability                                                                                                                    |   |          | 16,017      |   |   |   | 23,062 |   |
| Total      liabilities                                                                                                                  |   |          | 1,454,579   |   |   |   | 807,281 |   |
|                                                                                                                                    |   |          |        |   |   |   |   |   |
| Commitments                                                                                                                             |   |          |        |   |   |   |   |   |
|                                                                                                                                    |   |          |        |   |   |   |   |   |
| Stockholders'      Equity:                                                                                                              |   |          |        |   |   |   |   |   |
| Preferred      stock - $0.01 par value; authorized 5,000,000 shares, no shares      issued                                              |   |          | -           |   |   |   | - |   |
| Common      stock - $0.01 par value; authorized 100,000,000 shares, issued and      outstanding 19,812,043 and 18,375,117, respectively |   |          | 198,120     |   |   |   | 183,751 |   |
| Capital      in excess of par                                                                                                           |   |          | 41,419,613  |   |   |   | 39,874,958 |   |
| Deficit      accumulated during the development stage                                                                                   |   |          | (35,949,899 | ) |   |   | (30,223,030 | ) |
| Stockholders'      equity                                                                                                               |   |          | 5,667,834   |   |   |   | 9,835,679 |   |
| Total      Liabilities and Stockholders' Equity                                                                                         |   | $             | 7,122,413   |   |   | $ | 10,642,960 |   |

----

----

|                                                                             |   |                     |       |   |              |   |       |   |   |   | Cumulative |   |
|----------------------------------------------------------------------------------|--------|--------------------------|------------|--------|-------------------|--------|------------|--------|--------|--------|------------|--------|
|                                                                             |   | Year      ended June 30, |       |   | Amounts      from |   |
|                                                                             |   | 2009                     |       |   | 2008              |   |       | 2007   |   |   | Inception  |   |
|                                                                             |   |                     |       |   |              |   |       |   |   |   |       |   |
| Revenue                                                                          |   | $                        | 275,000    |   |              | $      | 456,667    |   |   | $      | 300,000    |   |   | $ | 1,450,000 |   |
|                                                                             |   |                     |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Operating      expenses:                                                         |   |                     |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| General      and administrative                                                  |   |                     | 2,205,739  |   |              |   | 2,291,263  |   |   |   | 2,412,679  |   |   |   | 23,931,195 |   |
| Research      and development                                                    |   |                     | 2,353,962  |   |              |   | 1,764,426  |   |   |   | 1,208,321  |   |   |   | 12,311,557 |   |
| Total      operating expenses                                                    |   |                     | 4,559,701  |   |              |   | 4,055,689  |   |   |   | 3,621,000  |   |   |   | 36,242,752 |   |
|                                                                             |   |                     |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Loss      from operations                                                        |   |                     | (4,284,701 | )      |              |   | (3,599,022 | )      |   |   | (3,321,000 | )      |   |   | (34,792,752 | ) |
|                                                                             |   |                     |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Noncash      income                                                              |   |                     | -          |   |              |   | -          |   |   |   | -          |   |   |   | 321,259 |   |
|                                                                             |   |                     |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Sale      of state income tax loss - net                                         |   |                     | -          |   |              |   | -          |   |   |   | -          |   |   |   | 586,442 |   |
|                                                                             |   |                     |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Amortization      of debt discount and financing costs                           |   |                     | (478,000   | )      |              |   | (668,763   | )      |   |   | -          |   |   |   | (1,146,763 | ) |
|                                                                             |   |                     |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Interest      expense – convertible notes                                  |   |                     | (1,007,244 | )      |              |   | (434,154   | )      |   |   | -          |   |   |   | (1,441,398 | ) |
|                                                                             |   |                     |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Interest      income - net                                                       |   |                     | 43,076     |   |              |   | 100,449    |   |   |   | 69,303     |   |   |   | 523,313 |   |
| Net      loss                                                                    |   | $                        | (5,726,869 | )      |              | $      | (4,601,490 | )      |   | $      | (3,251,697 | )      |   | $ | (35,949,899 | ) |
|                                                                             |   |                     |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Basic      and diluted net loss per common share                                 |   | $                        | (.30       | )      |              | $      | (.26       | )      |   | $      | (.19       | )      |   |   | - |   |
|                                                                             |   |                     |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Basic      and diluted weighted-average number of common shares      outstanding |   |                     | 18,888,142 |   |              |   | 17,660,466 |   |   |   | 16,916,918 |   |   |   | - |   |

----

----

----

|                                                                                                       |   |              |      |   |    |   |   |            |   |   | Deficit       |   |   |         |       |
|------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|--------|---------|--------|--------|-----------------|--------|--------|---------------|--------|--------|--------------|------------|
|                                                                                                       |   |              |      |   |    |   |   |            |   |   | Accumulated   |   |   | Total        |       |
|                                                                                                       |   | Common Stock |      |   | Capital |   |   | During the |   |   | Stockholders' |   |
|                                                                                                       |   | Number of    |      |   |    |   |   | in Excess  |   |   | Development   |   |   | Equity       |       |
|                                                                                                       |   | Shares            |      |   | Amount  |   |   | of Par     |   |   | Stage         |   |   | (Deficiency) |       |
|                                                                                                       |   |              |      |   |    |   |   |            |   |   |          |   |   |         |       |
| Common      stock outstanding                                                                              |   |              | 2,000,462 |   |    | $      | 20,005 |            |   | $      | (20,005       | )      |   |         | -          |   |   |   | - |   |
| Contribution      of capital                                                                               |   |              | -         |   |    |   | -      |            |   |   | 85,179        |   |   |         | -          |   |   | $ | 85,179 |   |
| Issuance      of common stock in reverse merger on January 22, 1999 at $0.01 per      share                |   |              | 3,400,000 |   |    |   | 34,000 |            |   |   | (34,000       | )      |   |         | -          |   |   |   | - |   |
| Issuance      of common stock for cash on May 21, 1999 for $2.63437 per      share                         |   |              | 759,194   |   |    |   | 7,592  |            |   |   | 1,988,390     |   |   |         | -          |   |   |   | 1,995,982 |   |
| Issuance      of common stock for placement fees on May 21, 1999 at $0.01 per      share                   |   |              | 53,144    |   |    |   | 531    |            |   |   | (531          | )      |   |         | -          |   |   |   | - |   |
| Net      loss                                                                                              |   |              | -         |   |    |   | -      |            |   |   | -             |   |   | $            | (1,168,995 | ) |   |   | (1,168,995 | ) |
| Balance      at June 30, 1999                                                                              |   |              | 6,212,800 |   |    |   | 62,128 |            |   |   | 2,019,033     |   |   |         | (1,168,995 | ) |   |   | 912,166 |   |
| Issuance      of common stock for cash on January 26, 2000 for $2.867647 per      share                    |   |              | 17,436    |   |    |   | 174    |            |   |   | 49,826        |   |   |         | -          |   |   |   | 50,000 |   |
| Issuance      of common stock for cash on January 31, 2000 for $2.87875 per      share                     |   |              | 34,737    |   |    |   | 347    |            |   |   | 99,653        |   |   |         | -          |   |   |   | 100,000 |   |
| Issuance      of common stock for cash on February 4, 2000 for $2.924582 per      share                    |   |              | 85,191    |   |    |   | 852    |            |   |   | 249,148       |   |   |         | -          |   |   |   | 250,000 |   |
| Issuance      of common stock for cash on March 15, 2000 for $2.527875 per      share                      |   |              | 51,428    |   |    |   | 514    |            |   |   | 129,486       |   |   |         | -          |   |   |   | 130,000 |   |
| Issuance      of common stock for cash on June 22, 2000 for $1.50 per    share                             |   |              | 1,471,700 |   |    |   | 14,718 |            |   |   | 2,192,833     |   |   |         | -          |   |   |   | 2,207,551 |   |
| Commissions,      legal and bank fees associated with issuances for the year ended June 30,      2000      |   |              | -         |   |    |   | -      |            |   |   | (260,595      | )      |   |         | -          |   |   |   | (260,595 | ) |
| Fair      market value of options and warrants granted and vested during the year      ended June 30, 2000 |   |              | -         |   |    |   | -      |            |   |   | 1,475,927     |   |   |         | -          |   |   |   | 1,475,927 |   |
| Net      loss                                                                                              |   |              | -         |   |    |   | -      |            |   |   | -             |   |   |         | (3,346,491 | ) |   |   | (3,346,491 | ) |
| Balance      at June 30, 2000                                                                              |   |              | 7,873,292 |   |    |   | 78,733 |            |   |   | 5,955,311     |   |   |         | (4,515,486 | ) |   |   | 1,518,558 |   |

----

----

----

|                                                                                                                       |   |              |       |   |    |   |    |            |   |   | Deficit       |   |   |         |        |
|----------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|---------|--------|---------|-----------------|--------|--------|---------------|--------|--------|--------------|-------------|
|                                                                                                                       |   |              |       |   |    |   |    |            |   |   | Accumulated   |   |   | Total        |        |
|                                                                                                                       |   | Common Stock |       |   | Capital |   |    | During the |   |   | Stockholders' |   |
|                                                                                                                       |   | Number of    |       |   |    |   |    | in Excess  |   |   | Development   |   |   | Equity       |        |
|                                                                                                                       |   | Shares            |       |   | Amount  |   |    | of Par     |   |   | Stage         |   |   | (Deficiency) |        |
|                                                                                                                       |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |
| Fair      market value of options and warrants granted and vested during the year      ended June 30, 2001                 |   |              | -          |   |    |   | -       |            |   | $      | 308,619       |   |   |         | -           |   |   | $ | 308,619 |   |
| Net      loss                                                                                                              |   |              | -          |   |    |   | -       |            |   |   | -             |   |   | $            | (2,033,890  | ) |   |   | (2,033,890 | ) |
| Balance      at June 30, 2001                                                                                              |   |              | 7,873,292  |   |    | $      | 78,733  |            |   |   | 6,263,930     |   |   |         | (6,549,376  | ) |   |   | (206,713 | ) |
|                                                                                                                       |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Issuance      of common stock and warrants for cash from November 30, 2001 through April      17, 2002 at $1.75 per unit   |   |              | 3,701,430  |   |    |   | 37,014  |            |   |   | 6,440,486     |   |   |         | -           |   |   |   | 6,477,500 |   |
| Issuance      of common stock and warrants associated with bridge loan conversion on      December 3, 2001                 |   |              | 305,323    |   |    |   | 3,053   |            |   |   | 531,263       |   |   |         | -           |   |   |   | 534,316 |   |
| Commissions,      legal and bank fees associated with issuances for the year ended June 30,      2002                      |   |              | -          |   |    |   | -       |            |   |   | (846,444      | )      |   |         | -           |   |   |   | (846,444 | ) |
| Fair      market value of options and warrants granted and vested during the year      ended June 30, 2002                 |   |              | -          |   |    |   | -       |            |   |   | 1,848,726     |   |   |         | -           |   |   |   | 1,848,726 |   |
| Net      loss                                                                                                              |   |              | -          |   |    |   | -       |            |   |   | -             |   |   |         | (3,021,709  | ) |   |   | (3,021,709 | ) |
| Balance      at June 30, 2002                                                                                              |   |              | 11,880,045 |   |    |   | 118,800 |            |   |   | 14,237,961    |   |   |         | (9,571,085  | ) |   |   | 4,785,676 |   |
|                                                                                                                       |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Fair      market value of options and warrants granted and vested during the year      ended June 30, 2003                 |   |              | -          |   |    |   | -       |            |   |   | 848,842       |   |   |         | -           |   |   |   | 848,842 |   |
| Net      loss                                                                                                              |   |              | -          |   |    |   | -       |            |   |   | -             |   |   |         | (2,778,004  | ) |   |   | (2,778,004 | ) |
| Balance      at June 30, 2003                                                                                              |   |              | 11,880,045 |   |    |   | 118,800 |            |   |   | 15,086,803    |   |   |         | (12,349,089 | ) |   |   | 2,856,514 |   |
|                                                                                                                       |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Issuance      of common stock and warrants for cash from January 15, 2004 through      February 12, 2004 at $2.37 per unit |   |              | 1,536,922  |   |    |   | 15,369  |            |   |   | 3,627,131     |   |   |         | -           |   |   |   | 3,642,500 |   |
| Allocation      of proceeds to warrants                                                                                    |   |              | -          |   |    |   | -       |            |   |   | (2,099,090    | )      |   |         |        |   |   |   | (2,099,090 | ) |
| Reclassification      of warrants                                                                                          |   |              | -          |   |    |   | -       |            |   |   | 1,913,463     |   |   |         | -           |   |   |   | 1,913,463 |   |
| Commissions,      legal and bank fees associated with issuances from January 15, 2004      through February 12, 2004       |   |              | -          |   |    |   | -       |            |   |   | (378,624      | )      |   |         | -           |   |   |   | (378,624 | ) |

----

----

----

|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   | Deficit       |   |   |         |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|---------|--------|---------|-----------------|--------|--------|---------------|--------|--------|--------------|-------------|
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   | Accumulated   |   |   | Total        |        |
|                                                                                                                                             |   | Common Stock |       |   | Capital |   |    | During the |   |   | Stockholders' |   |
|                                                                                                                                             |   | Number of    |       |   |    |   |    | in Excess  |   |   | Development   |   |   | Equity       |        |
|                                                                                                                                             |   | Shares            |       |   | Amount  |   |    | of Par     |   |   | Stage         |   |   | (Deficiency) |        |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |
| Fair      market value of options and  warrants vested during the      year  ended June 30, 2004                             |   |              | -          |   |    |   | -       |            |   | $      | 1,826,514     |   |   |         | -           |   |   | $ | 1,826,514 |   |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Options      and warrants exercised during the year ended June 30, 2004 at exercise      prices ranging from $1.00 - $3.25                       |   |              | 370,283    |   |    | $      | 3,704   |            |   |   | 692,945       |   |   |         | -           |   |   |   | 696,649 |   |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Net      loss                                                                                                                                    |   |              | -          |   |    |   | -       |            |   |   | -             |   |   | $            | (3,726,951  | ) |   |   | (3,726,951 | ) |
| Balance      at June 30, 2004                                                                                                                    |   |              | 13,787,250 |   |    |   | 137,873 |            |   |   | 20,669,142    |   |   |         | (16,076,040 | ) |   |   | 4,730,975 |   |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Issuance      of common stock and warrants for cash on May 9, 2005 at $2.11 per      unit                                                        |   |              | 1,595,651  |   |    |   | 15,957  |            |   |   | 3,350,872     |   |   |         | -           |   |   |   | 3,366,829 |   |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Allocation      of proceeds to warrants                                                                                                          |   |              | -          |   |    |   | -       |            |   |   | (1,715,347    | )      |   |         | -           |   |   |   | (1,715,347 | ) |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Reclassification      of warrants                                                                                                                |   |              | -          |   |    |   | -       |            |   |   | 1,579,715     |   |   |         | -           |   |   |   | 1,579,715 |   |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Commissions,      legal and bank fees associated with issuance on May 9,2005                                                                     |   |              | -          |   |    |   | -       |            |   |   | (428,863      | )      |   |         | -           |   |   |   | (428,863 | ) |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Fair      market value of options and warrants vested during the year ended June 30,      2005                                                   |   |              | -          |   |    |   | -       |            |   |   | 974,235       |   |   |         | -           |   |   |   | 974,235 |   |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Options      and warrants exercised during  the year ended June 30, 2005 at      exercise  prices ranging from $1.50 - $3.25 |   |              | 84,487     |   |    |   | 844     |            |   |   | 60,281        |   |   |         | -           |   |   |   | 61,125 |   |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Net      loss                                                                                                                                    |   |              | -          |   |    |   | -       |            |   |   | -             |   |   |         | (2,978,918  | ) |   |   | (2,978,918 | ) |
| Balance      at June 30, 2005                                                                                                                    |   |              | 15,467,388 |   |    |   | 154,674 |            |   |   | 24,490,035    |   |   |         | (19,054,958 | ) |   |   | 5,589,751 |   |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Fair      market value of options and  warrants vested during the      year  ended June 30, 2006                             |   |              | -          |   |    |   | -       |            |   |   | 677,000       |   |   |         | -           |   |   |   | 677,000 |   |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Warrants      exercised during  the year ended June 30, 2006  at an      exercise price of  $0.01                  |   |              | 10,000     |   |    |   | 100     |            |   |   | -             |   |   |         | -           |   |   |   | 100 |   |
|                                                                                                                                             |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Net      loss                                                                                                                                    |   |              | -          |   |    |   | -       |            |   |   | -             |   |   |         | (3,314,885  | ) |   |   | (3,314,885 | ) |
| Balance      at June 30, 2006                                                                                                                    |   |              | 15,477,388 |   |    |   | 154,774 |            |   |   | 25,167,035    |   |   |         | (22,369,843 | ) |   |   | 2,951,966 |   |

----

----

----

|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   | Deficit       |   |   |         |        |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|---------|--------|---------|-----------------|--------|--------|---------------|--------|--------|--------------|-------------|
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   | Accumulated   |   |   | Total        |        |
|                                                                                                                                              |   | Common Stock |       |   | Capital |   |    | During the |   |   | Stockholders' |   |
|                                                                                                                                              |   | Number of    |       |   |    |   |    | in Excess  |   |   | Development   |   |   | Equity       |        |
|                                                                                                                                              |   | Shares            |       |   | Amount  |   |    | of Par     |   |   | Stage         |   |   | (Deficiency) |        |
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |
| Issuance      of common stock and warrants for cash on October 10, 2006 at $1.135 per      unit                                                   |   |              | 1,986,306  |   |    | $      | 19,863  |            |   | $      | 2,229,628     |   |   |         | -           |   |   | $ | 2,249,491 |   |
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Commissions,      legal and bank fees associated with issuance on October 10,      2006                                                           |   |              | -          |   |    |   | -       |            |   |   | (230,483      | )      |   |         | -           |   |   |   | (230,483 | ) |
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Warrants      exercised during the year ended June 30, 2007 at an exercise price      of  $0.01                                         |   |              | 10,000     |   |    |   | 100     |            |   |   | -             |   |   |         | -           |   |   |   | 100 |   |
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Fair      market value of options and warrants vested during the year ended June 30,      2007                                                    |   |              | -          |   |    |   | -       |            |   |   | 970,162       |   |   |         | -           |   |   |   | 970,162 |   |
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Net      loss                                                                                                                                     |   |              | -          |   |    |   | -       |            |   |   | -             |   |   | $            | (3,251,697  | ) |   |   | (3,251,697 | ) |
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Balance      at June 30, 2007                                                                                                                     |   |              | 17,473,694 |   |    |   | 174,737 |            |   |   | 28,136,342    |   |   |         | (25,621,540 | ) |   |   | 2,689,539 |   |
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Allocation      of proceeds, net of fees paid to holder, from issuance of convertible      notes and warrants during the year ended June 30, 2008 |   |              | -          |   |    |   | -       |            |   |   | 9,340,000     |   |   |         | -           |   |   |   | 9,340,000 |   |
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Convertible      notes converted into common stock during the year ended June 30, 2008, net      of deferred financing costs                      |   |              | 555,556    |   |    |   | 5,556   |            |   |   | 430,952       |   |   |         | -           |   |   |   | 436,508 |   |
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Issuance      of common stock in lieu of cash payment for interest during the year ended      June 30, 2008                                       |   |              | 345,867    |   |    |   | 3,458   |            |   |   | 430,696       |   |   |         | -           |   |   |   | 434,154 |   |
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Fair      market value of options and warrants vested during the year ended June 30,      2008                                                    |   |              | -          |   |    |   | -       |            |   |   | 1,536,968     |   |   |         | -           |   |   |   | 1,536,968 |   |
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Net      loss                                                                                                                                     |   |              | -          |   |    |   | -       |            |   |   | -             |   |   |         | (4,601,490  | ) |   |   | (4,601,490 | ) |
|                                                                                                                                              |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Balance      at June 30, 2008                                                                                                                     |   |              | 18,375,117 |   |    |   | 183,751 |            |   |   | 39,874,958    |   |   |         | (30,223,030 | ) |   |   | 9,835,679 |   |

----

----

----

|                                                                                                                         |   |              |       |   |    |   |    |            |   |   | Deficit       |   |   |         |        |
|------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|--------|---------|--------|---------|-----------------|--------|--------|---------------|--------|--------|--------------|-------------|
|                                                                                                                         |   |              |       |   |    |   |    |            |   |   | Accumulated   |   |   | Total        |        |
|                                                                                                                         |   | Common Stock |       |   | Capital |   |    | During the |   |   | Stockholders' |   |
|                                                                                                                         |   | Number of    |       |   |    |   |    | in Excess  |   |   | Development   |   |   | Equity       |        |
|                                                                                                                         |   | Shares            |       |   | Amount  |   |    | of Par     |   |   | Stage         |   |   | (Deficiency) |        |
| Convertible      notes converted into common stock during the year ended June 30, 2009, net      of deferred financing costs |   |              | 50,000     |   |    | $      | 500     |            |   | $      | 44,433        |   |   |         | -           |   |   | $ | 44,933 |   |
|                                                                                                                         |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Issuance      of common stock in lieu of cash payment for interest during the year ended      June 30, 2009                  |   |              | 1,271,831  |   |    |   | 12,718  |            |   |   | 994,526       |   |   |         | -           |   |   |   | 1,007,244 |   |
|                                                                                                                         |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Warrants      exercised during the year ended June 30, 2009 at an exercise price      of  $0.01                    |   |              | 2,395      |   |    |   | 24      |            |   |   | (24           | )      |   |         | -           |   |   |   | - |   |
|                                                                                                                         |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Issuance      of common stock in connection with short-term incentive program during the      year ended June 30, 2009       |   |              | 112,700    |   |    |   | 1,127   |            |   |   | (1,127        | )      |   |         | -           |   |   |   | - |   |
|                                                                                                                         |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Fair      market value of options and warrants vested during the year ended June 30,      2009                               |   |              | -          |   |    |   | -       |            |   |   | 506,847       |   |   |         | -           |   |   |   | 506,847 |   |
|                                                                                                                         |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Net      loss                                                                                                                |   |              | -          |   |    |   | -       |            |   |   | -             |   |   | $            | (5,726,869  | ) |   |   | (5,726,869 | ) |
|                                                                                                                         |   |              |       |   |    |   |    |            |   |   |          |   |   |         |        |   |   |   |   |   |
| Balance      at June 30, 2009                                                                                                |   |              | 19,812,043 |   |    | $      | 198,120 |            |   | $      | 41,419,613    |   |   | $            | (35,949,899 | ) |   | $ | 5,667,834 |   |

----

----

|                                                                                                    |   |                               |       |   |              |   |       |   |   |   | Cumulative |   |
|---------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|--------|-------------------|--------|------------|--------|--------|--------|------------|--------|
|                                                                                                    |   | Year ended June 30, |       |   | Amounts from |   |
|                                                                                                    |   | 2009                               |       |   | 2008              |   |       | 2007   |   |   | Inception  |   |
| Cash      flows from operating activities:                                                              |   |                               |       |   |              |   |       |   |   |   |       |   |
| Net      loss                                                                                           |   | $                                  | (5,726,869 | )      |              | $      | (4,601,490 | )      |   | $      | (3,251,697 | )      |   | $ | (35,949,899 | ) |
| Adjustments      to reconcile net loss to net cash used in operating      activities:                   |   |                               |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Noncash      capital contribution                                                                       |   |                               | -          |   |              |   | -          |   |   |   | -          |   |   |   | 85,179 |   |
| Noncash      conversion of accrued expenses into equity                                                 |   |                               | -          |   |              |   | -          |   |   |   | -          |   |   |   | 131,250 |   |
| Noncash      income related to change in fair value of warrantliability                                 |   |                               | -          |   |              |   | -          |   |   |   | -          |   |   |   | (321,259 | ) |
| Issuance      of common stock and warrants for interest                                                 |   |                               | 1,007,244  |   |              |   | 434,154    |   |   |   | -          |   |   |   | 1,450,713 |   |
| Share-based      compensation expense                                                                   |   |                               | 506,847    |   |              |   | 897,321    |   |   |   | 970,162    |   |   |   | 10,202,944 |   |
| Depreciation      and amortization                                                                      |   |                               | 111,753    |   |              |   | 96,847     |   |   |   | 166,172    |   |   |   | 572,441 |   |
| Amortization      of convertible note discount                                                          |   |                               | 51,160     |   |              |   | 500,057    |   |   |   | -          |   |   |   | 551,217 |   |
| Amortization      of deferred financing costs                                                           |   |                               | 426,839    |   |              |   | 168,706    |   |   |   | -          |   |   |   | 595,545 |   |
| (Increase)      decrease in operating assets:                                                           |   |                               |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Prepaid      expenses and other current assets                                                          |   |                               | (980,792   | )      |              |   | (76,030    | )      |   |   | 35,058     |   |   |   | (1,161,348 | ) |
| Security      deposit                                                                                   |   |                               | -          |   |              |   | -          |   |   |   | -          |   |   |   | (7,187 | ) |
| Increase      (decrease) in operating liabilities:                                                      |   |                               |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Accounts      payable                                                                                   |   |                               | 606,513    |   |              |   | 260,909    |   |   |   | 31,563     |   |   |   | 976,680 |   |
| Accrued      expenses                                                                                   |   |                               | 41,670     |   |              |   | (63,092    | )      |   |   | 47,475     |   |   |   | 355,937 |   |
| Deferred      revenue                                                                                   |   |                               | -          |   |              |   | (16,667    | )      |   |   | (25,000    | )      |   |   | - |   |
| Other      liability                                                                                    |   |                               | (7,045     | )      |              |   | (6,134     | )      |   |   | (5,222     | )      |   |   | 16,017 |   |
| Net      cash used in operating activities                                                              |   |                               | (3,962,680 | )      |              |   | (2,405,419 | )      |   |   | (2,031,489 | )      |   |   | (22,501,770 | ) |
| Cash      flows from investing activities:                                                              |   |                               |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Patent      costs                                                                                       |   |                               | (779,563   | )      |              |   | (761,093   | )      |   |   | (495,852   | )      |   |   | (4,286,363 | ) |
| Redemption      (purchase) of investments, net                                                          |   |                               | (550,000   | )      |              |   | (250,000   | )      |   |   | 600,000    |   |   |   | (1,050,000 | ) |
| Purchase      of property and equipment                                                                 |   |                               | (4,173     | )      |              |   | (2,783     | )      |   |   | (2,179     | )      |   |   | (177,063 | ) |
| Net      cash provided by (used in) investing activities                                                |   |                               | (1,333,736 | )      |              |   | (1,013,876 | )      |   |   | 101,969    |   |   |   | (5,513,426 | ) |
| Cash      flows from financing activities:                                                              |   |                               |       |   |              |   |       |   |   |   |       |   |   |   |   |   |
| Proceeds      from grant                                                                                |   |                               | -          |   |              |   | -          |   |   |   | -          |   |   |   | 99,728 |   |
| Proceeds      from issuance of bridge notes                                                             |   |                               | -          |   |              |   | -          |   |   |   | -          |   |   |   | 525,000 |   |
| Proceeds      from issuance of convertible notes                                                        |   |                               | -          |   |              |   | 9,340,000  |   |   |   | -          |   |   |   | 9,340,000 |   |
| Deferred      financing costs                                                                           |   |                               | -          |   |              |   | (651,781   | )      |   |   | -          |   |   |   | (651,781 | ) |
| Proceeds      from issuance of common stock and warrants, net and exercise of warrants      and options |   |                               | -          |   |              |   | -          |   |   |   | 2,019,108  |   |   |   | 19,082,818 |   |
| Net      cash provided by financing activities                                                          |   |                               | -          |   |              |   | 8,688,219  |   |   |   | 2,019,108  |   |   |   | 28,395,765 |   |
| Net      (decrease) increase in cash and cash equivalents                                               |   |                               | (5,296,416 | )      |              |   | 5,268,924  |   |   |   | 89,588     |   |   |   | 380,569 |   |
| Cash      and cash equivalents at beginning of period                                                   |   |                               | 5,676,985  |   |              |   | 408,061    |   |   |   | 318,473    |   |   |   | - |   |
| Cash      and cash equivalents at end of period                                                         |   | $                                  | 380,569    |   |              | $      | 5,676,985  |   |   | $      | 408,061    |   |   | $ | 380,569 |   |

----

----

|                                                                                                      |   |                               |      |   |              |   |      |   |   |   | Cumulative |   |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------------|-----------|--------|-------------------|--------|-----------|--------|--------|--------|------------|--------|
|                                                                                                      |   | Year ended June 30, |      |   | Amounts from |   |
|                                                                                                      |   | 2009                               |      |   | 2008              |   |      | 2007   |   |   | Inception  |   |
|                                                                                                      |   |                               |      |   |              |   |      |   |   |   |       |   |
| Supplemental      disclosure of cash flow information:                                                    |   |                               |      |   |              |   |      |   |   |   |       |   |
| Cash      paid during the period for interest                                                             |   | $                                  | -         |   |              | $      | -         |   |   | $      | -          |   |   | $ | 22,317 |   |
| Supplemental      schedule of noncash financing activity:                                                 |   |                               |      |   |              |   |      |   |   |   |       |   |   |   |   |   |
| Conversion      of bridge notes into common stock                                                         |   | $                                  | -         |   |              | $      | -         |   |   | $      | -          |   |   | $ | 534,316 |   |
| Conversion      of convertible note into common stock, net of unamortized financing costs      of $66,796 |   | $                                  | 45,000    |   |              | $      | 500,000   |   |   | $      | -          |   |   | $ | 545,000 |   |
| Allocation      of convertible debt proceeds to warrants and beneficial conversion      feature           |   | $                                  | -         |   |              | $      | 9,340,000 |   |   | $      | -          |   |   | $ | 9,340,000 |   |
| Warrants      issued for financing costs                                                                  |   | $                                  | -         |   |              | $      | 639,645   |   |   | $      | -          |   |   | $ | 639,645 |   |
| Issuance      of common stock for interest payments on convertible notes                                  |   | $                                  | 1,007,244 |   |              | $      | 434,154   |   |   | $      | -          |   |   | $ | 1,450,713 |   |

----

----

| 1.          PRINCIPAL      BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING      POLICIES: |   | The      accompanying consolidated financial statements include the accounts of      Senesco Technologies, Inc. ("ST") and its wholly owned subsidiary,      Senesco, Inc. ("SI") (collectively, the "Company"). All significant      intercompany accounts and transactions have been eliminated in      consolidation. The      Company is a development stage biotechnology company whose mission is to      develop novel approaches to treat programmed cell death diseases in humans      (apoptosis), and to enhance the quality and productivity of fruits,      flowers, vegetables and agronomic crops through the control of cell death      in plants (senescence). SI,      a New Jersey corporation, was incorporated on November 24, 1998 and is the      successor entity to Senesco, L.L.C., a New Jersey limited liability      company that was formed on June 25, 1998 but commenced operations on July      1, 1998. Liquidity       There      is substantial doubt about the Company’s ability to continue as a going      concern due to its limited assets and capital and recurring losses as      explained in the following    paragraphs. |
|-----------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                  |   | As      shown in the accompanying consolidated financial statements, the Company      has a history of losses with a deficit accumulated during the development      stage from July 1, 1998 (inception) through June 30, 2009 of      $35,949,899.  Additionally,      the Company has generated minimal revenues by licensing its      technology for certain crops to companies willing to share in its      development costs. In addition, the Company’s technology may not be ready      for commercialization for several years. The Company expects to continue      to incur losses for the next several years because it anticipates that its      expenditures on research and development, and administrative activities      will significantly exceed its revenues during that period. The Company      cannot predict when, if ever, it will becomeprofitable.                                                                                                                                                                                                                                                                                                    |
|                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                  |   | As      of June 30, 2009, the Company had cash and investments in the amount of      $1,430,569, which consisted of money market funds and U.S. treasury      bills.  The Company estimates that such amount will cover its      expenses for approximately the next six months from June 30,      2009.  The accompanying financial statements do not include any      adjustment from the outcome of this uncertainty.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                  |   | These      conditions raise substantial doubt about the Company's ability to continue      as a going concern.  The Company's continuation as a going      concern is dependent upon its ability to ultimately attain profitable      operations, generate sufficient cash flow to meet its obligations and      obtain additional financing as may be required to comply with      regulatory requirements.  The outcome of these uncertainties      cannot be assured.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                  |   | In      July, 2009, the Company received net proceeds of approximately $850,000      from the private placement of common stock and warrants and also entered      into securities purchase agreements for an additional gross proceeds of      $755,000 from the intended sale of common stock and warrants, which is      subject to the NYSE Amex exchangeapproval.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

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----

|   |   | The      Company will need additional capital and plans to raise additional capital      through the placement of debt instruments or equity or      both.  However, the Company may not be able to obtain adequate      funds for its operations when needed or on acceptable terms.  If      the Company is unable to raise additional funds, it will need to do one or      more of the following:                                                                                                                                                                                                                                                                      |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | ·    delay,      scale-back or eliminate some or all of its research and product      development programs;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | ·    license      third parties to develop and commercialize products or technologies that      it would otherwise seek to develop and commercialize    itself;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   | ·    seek      strategic alliances or business combinations;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   | ·    attempt      to sell the Company;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   | ·    cease      operations; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | ·         declare bankruptcy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | Cash,      Cash Equivalents and Investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | Cash      equivalents consist of investments which are readily convertible into cash      with original maturities of three months or less.  The Company      maintains its cash in money market and bank deposit accounts which, at      times, may exceed federally insured limits.  The Company      believes that there is no significant credit risk with respect to these      accounts.                                                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | The      Company invests in United States treasury notes and high-grade corporate      debt instruments.  Based on the Company's intentions regarding      these instruments, the Company has classified all marketable debt      securities as held-to-maturity and has accounted for these investments at      amortized cost.  Marketable securities maturing in one year or      less are classified as current assets.                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | Property      and Equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | Property      and equipment are stated at cost, less accumulated      depreciation.  Depreciation of property and equipment is      provided for by the straight-line method over the estimated useful lives      of the assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | Intangibles                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | The      Company conducts research and development activities, the cost of which is      expensed as incurred, in order to generate patents that can be licensed to      third parties in exchange for license fees and      royalties.  Because the patents are the basis of the Company’s      future revenue, the patent costs are capitalized.   The      capitalized patent costs represent the outside legal fees incurred by the      Company to submit and undertake all necessary efforts to have such patent      applications issued as patents.                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | The      length of time that it takes for an initial patent application to be      approved is generally between four to six years.  However, due      to the unique nature of each patent application, the actual length of time      may vary.  If a patent application is denied, the associated      cost of that application would be written off.  However, the      Company has not had any patent applications denied as of June 30,      2009.  Additionally, should a patent application become impaired      during the application process, the Company would write down or write off      the associated cost of that patent application. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | Issued      patents and agricultural patent applications pending are being amortized      over a period of 17 years, the expected economic life of the      patent.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

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|   |   | The      Company assesses the impairment in value of intangible assets whenever      events or circumstances indicate that their carrying value may not be      recoverable.  Factors the Company considers important which      could trigger an impairment review include the  following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | ·  significant      negative industry trends:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   | ·  significant      underutilization of the assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   | ·  significant      changes in how the Company uses the assets or its plans for their use;      and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |   | ·  changes in      technology and the appearance of competing technology.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | If      the Company's review determines that the future discounted cash flows      related to these assets will not be sufficient to recover their carrying      value, the Company will reduce the carrying values of these assets down to      its estimate of fair value and continue amortizing them over their      remaining useful lives.  To date, the Company has not recorded      any impairment of intangible assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | Deferred      Financing Costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | Deferred      financing costs represent the costs related to the placement of      convertible notes during the year ended June 30, 2008.  Such      costs are being amortized ratably over the term of the convertible notes,      (see Note 7).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | Deferred      Income Tax Asset                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | Deferred      income tax assets and liabilities are recognized for the future tax      consequences attributable to differences between financial statement      carrying amounts of existing assets and liabilities and their respective      tax bases. Deferred tax assets are reduced by a valuation allowance when,      in the opinion of management, it is more likely than not that some portion      or all of the deferred tax assets will not be      realized.  Deferred tax assets and liabilities are measured      using enacted rates expected to apply when the differences are expected to      be realized.                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | Deferred      Revenue and Revenue Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | The      Company receives certain nonrefundable upfront fees in exchange for the      transfer of its technology to licensees.  Upon delivery of the      technology, the Company has no further obligations to the licensee with      respect to the basic technology transferred and, accordingly, recognizes      revenue at that time.  The Company may, however, receive      additional payments from its licensees in the event such licensees achieve      certain development or commercialization milestones in their particular      field of use.  Other nonrefundable upfront fees and milestone      payments, where the milestone payments are a function of time as opposed      to achievement of specific achievement-based milestones, are deferred and      amortized ratably over the estimated research period of the license.      Milestone payments, which are contingent upon the achievement of certain      research goals, are recognized as revenue when the milestones, as defined      in the particular agreement, areachieved. |

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|   |   | Convertible      Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   | During      the year ended June 30, 2008, the Company issued $10,000,000 of      convertible notes and warrants.  The proceeds of the convertible      notes and warrants have been allocated between the convertible notes and      warrants based upon their fair values whereby the fair value for the      warrants have been  determined using the Black-Scholes      model.  Additional amounts were allocated to the beneficial      conversion feature based upon the effective conversion price compared to      the fair value of the common stock on the date of issuance of the      convertible notes and warrants.  Debt discount associated with      the Convertible Notes is amortized to interest expense, using the      effective yield method, over the remaining life of the Convertible      Notes.  Upon conversion of the Convertible Notes into Common      Stock, any unamortized debt discount relating to the portion converted      will be charged to interest for amortization of debt discount and      equity. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   | Fair      Value of Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   | The      carrying value of cash and cash equivalents, short-term investments,      prepaid and other current assets, accounts payable and accrued expenses      reported in the consolidated balance sheets equal or approximate fair      value due to their short maturities. The fair value of the convertible      notes approximates the amortized portion of the principal amount as such      instruments are at market rates available to the  Company.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   | Common      Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   | On      December 12, 2002, the stockholders approved a proposal to increase the      authorized Common Stock of the Company from 20,000,000 shares to      30,000,000 shares.  On December 14, 2006, the stockholders      approved a proposal to increase the authorized Common Stock of the Company      from 30,000,000 shares to 60,000,000 shares.  On December 13,      2007, the stockholders approved a proposal to increase the authorized      Common Stock of the Company from 60,000,000 shares to 100,000,000      shares.  On September 22, 2009, the stockholders approved a      proposal to increase the authorized Common Stock of the Company from      100,000,000 shares to 120,000,000 shares.                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   | Loss      Per Common Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   | Loss      per common share is computed by dividing the loss by the weighted-average      number of common shares outstanding during the period.  Shares      to be issued upon the exercise of the outstanding options and warrants      aggregating 23,273,855 and 23,522,526 as of June 30, 2009 and 2008,      respectively, are not included in the computation of loss per share as      their effect is anti-dilutive.  Additionally, as of June 30,      2009, 10,505,556 shares to be issued upon the conversion of convertible      notes at a fixed conversion price of $0.90 are not included in the      computation of diluted loss per share as the effect is      anti-dilutive.                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |

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|   |   | Management      Estimates and Judgments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   | The      preparation of financial statements in conformity with accounting      principles generally accepted in the United States of America requires      management to make estimates and judgments that affect the reported      amounts of assets and liabilities and disclosure of contingent assets and      liabilities at the date of the financial statements and the reported      amounts of revenue and expenses during the reporting      period.  The critical accounting policies that require      management's most significant estimate and judgment are the assessment of      the recoverability of intangible assets, and the valuation allowance on      deferred tax assets.  Actual results experienced by the Company      may differ from management's estimates.                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   | Recent      Accounting Pronouncements Applicable to the Company                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   | EITF      Issue No. 07-5 – Determining Whether an Instrument (or Embedded Feature)      is Indexed to an Entity’s Own Stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   | In      June 2008, the FASB ratified EITF Issue No. 07-5, "Determining Whether an      Instrument (or Embedded Feature) is Indexed to an Entity's Own Stock"      ("EITF 07-5"). EITF 07-5 provides guidance on how to determine if certain      instruments or embedded features are considered indexed to our own stock,      including instruments similar to our convertible notes and warrants to      purchase our stock. EITF 07-5 requires companies to use a two-step      approach to evaluate an instrument's contingent exercise provisions and      settlement provisions in determining whether the instrument is considered      to be indexed to its own stock and exempt from the application of SFAS No.      133, "Accounting for Derivative Instruments and Hedging Activities".      Although EITF 07-5 is effective for fiscal years beginning after December      15, 2008, any outstanding instrument at the date of adoption will require      a retrospective application of the accounting through a cumulative effect      adjustment to retained earnings upon adoption. The Company is currently      evaluating the impact that adoption of EITF 07-5 will have on its      consolidated financial statements. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   | EITF      Issue No. 07-1 – Accounting for Collaborative  Arrangements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   | This      pronouncement defines a collaborative arrangement as a contractual      arrangement that involves a joint operating activity that involves two or      more parties who are both active participants in the activity and exposed      to significant risks and rewards dependent on the commercial success of      the activity.  The pronouncement also defines how the costs      incurred and revenues generated from transactions with third parties      should be recorded and presented in each entity’s income      statement.  This pronouncement is effective for financial      statements issued for fiscal years beginning after December 15, 2008, and      interim periods within those fiscal years, and shall be applied      retrospectively to all prior periods presented for all collaborative      arrangements existing as of the effective date.  The Company      does not believe that this pronouncement will have any material effect on      its financial statements.                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |   | Management      does not believe that any other recently issued, but not yet effective,      accounting standards if currently adopted would have a material effect on      the accompanying financialstatements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

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| 2.  INVESTMENTS: |   | At      June 30, 2009 and 2008, the amortized cost basis, aggregate fair value,      gross unrealized gains and maturity by majority security type were as      follows: |
|----------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                      |   | Gross                   |   |   |            |   |      |            |   |
|-----------------------------------------------------------|--------|-------------------------|--------|--------|-----------------|--------|-----------|-----------------|--------|
|                                                      |   | Unrealized              |   |   | Aggregate       |   |      | Amortized       |   |
|                                                      |   | Gain / (Loss) |   |   | Fair Value |   |      | Cost Basis |   |
|                                                      |   |                    |   |   |            |   |      |            |   |
| June      30, 2009                                        |   |                    |   |   |            |   |      |            |   |
| Held-to-maturity      securities:                         |   |                    |   |   |            |   |      |            |   |
| U.S.      treasury notes (maturing within one      year)  |   | $                       | -0-    |   |            | $      | 1,050,000 |            |   | $ | 1,050,000 |   |
| June      30, 2008                                        |   |                    |   |   |            |   |      |            |   |   |   |   |
| Held-to-maturity      securities:                         |   |                    |   |   |            |   |      |            |   |   |   |   |
| Corporate      debt securities (maturing within one year) |   | $                       | -0-    |   |            | $      | 500,000   |            |   | $ | 500,000 |   |

|   |   | Realized gains and losses are      determined based on the specific-identification    method.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | Effective      July 1, 2008 the Company adopted Statement No. 157, Fair Value      Measurements.  Statement No. 157 applies to all assets and      liabilities that are being measured and reported on a fair value basis.      Statement No. 157 requires new disclosure that establishes a framework for      measuring fair value in GAAP, and expands disclosure about fair value      measurements. This statement enables the reader of the financial      statements to assess the inputs used to develop those measurements by      establishing a hierarchy for ranking the quality and reliability of the      information used to determine fair values. The statement requires that      assets and liabilities carried at fair value will be classified and      disclosed in one of the following three categories: |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | Level      1: Quoted market prices in active markets for identical assets or      liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   | Level      2: Observable market based inputs or unobservable inputs that are      corroborated by market data.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   | Level      3: Unobservable inputs that are not corroborated by market      data.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | In      determining the appropriate levels, the Company performs a detailed      analysis of the assets and liabilities that are subject to Statement No.      157.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |   | The      table below presents the balances of assets and liabilities measured at      fair value on a recurring basis by level within the    hierarchy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

|                     |   | Total  |      |   | Level      1 |   |      | Level 2 |   |   | Level 3 |   |
|--------------------------|--------|--------|-----------|--------|--------------|--------|-----------|--------------|--------|--------|--------------|--------|
|                     |   |   |      |   |         |   |      |         |   |   |         |   |
| U.S.      Treasury Notes |   | $      | 1,050,000 |   |         | $      | 1,050,000 |         |   | $      | -            |   |   | $ | - |   |
|                     |   |   |      |   |         |   |      |         |   |   |         |   |   |   |   |
| Total  Assets  |   | $      | 1,050,000 |   |         | $      | 1,050,000 |         |   | $      | -            |   |   | $ | - |   |

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|   |   | The      Company's only asset or liability that is measured at fair value on      recurring basis is short-term investments, based on quoted market prices      in active markets and therefore classified as level 1 within the fair      value hierarchy. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.          PREPAID EXPENSES AND OTHER CURRENT ASSETS: |   | The      following are included in prepaid expenses and other current assets      at: |
|----------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------|

|                           |   | June 30, |      |
|--------------------------------|--------|---------------|-----------|
|                           |   | 2009          |      |   | 2008 |   |
| Prepaid      research supplies |   | $             | 1,044,579 |   |   | $ | 119,153 |   |
| Prepaid      insurance         |   |          | 46,600    |   |   |   | 37,117 |   |
| Prepaid      legal             |   |          | 52,732    |   |   |   | - |   |
| Prepaid      other             |   |          | 17,437    |   |   |   | 24,286 |   |
|                           |   | $             | 1,161,348 |   |   | $ | 180,556 |   |

|                                               |   | Prepaid      research supplies are carried at cost on the accompanying balance sheet.      When such spplies are used, the carrying value of the supplies are      expensed in the period that they are used for the development of      proprietary applications and processes. |
|----------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                               |   |                                                                                                                                                                                                                                                                             |
| 4.          PROPERTY AND EQUIPMENT: |   | Property      and equipment, at cost, consists of the following  at:                                                                                                                                                                                                             |

|                          |   | June 30, |     | Estimated |   |
|-------------------------------|--------|---------------|----------|-----------|--------|
|                          |   | 2009          |     |      | 2008   |   | Useful Life |   |
| Equipment                     |   | $             | 39,909   |      |   | $ | 35,736 |   | 4      years |   |
| Furniture      and fixtures   |   |          | 67,674   |      |   |   | 67,674 |   | 7      years |   |
|                          |   |          | 107,583  |      |   |   | 103,410 |   |   |   |
| Accumulated      depreciation |   |          | (101,597 | )         |   |   | (97,951 | ) |   |   |
|                          |   | $             | 5,986    |      |   | $ | 5,459 |   |   |   |

|   |   | Depreciation      expense aggregated $3,646, $4,850, $4,971 and $171,077 for the years      ended June 30, 2009, 2008, 2007, and cumulatively from inception through      June 30, 2009, respectively. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.          INTANGIBLE ASSETS: |   | Intangible      assets, at cost, consists of the followingat: |
|-----------------------------------------------|--------|---------------------------------------------------------------|

|                          |   | June 30, |      |
|-------------------------------|--------|---------------|-----------|
|                          |   | 2009          |      |   | 2008 |   |
| Patents      approved         |   | $             | 830,152   |   |   | $ | 809,863 |   |
| Patents      pending          |   |          | 3,456,211 |   |   |   | 2,696,937 |   |
|                          |   |          | 4,286,363 |   |   |   | 3,506,800 |   |
| Accumulated      amortization |   |          | (401,364  | ) |   |   | (293,257 | ) |
|                          |   | $             | 3,884,999 |   |   | $ | 3,213,543 |   |

|   |   | Amortization      expense amounted to $108,107, $91,997, $161,201 and $401,364 for the years      ended June 30, 2009, 2008, 2007, and cumulatively from inception through      June 30, 2009,respectively. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | Estimated      amortization expense for the next five years is as  follows: |
|--------|--------|-----------------------------------------------------------------------------|
|   |   |                                                                        |
|   |   | Year      ending June 30,                                                   |

| 2010 |   | $      | 120,000 |   |
|------|--------|--------|---------|--------|
| 2011 |   |   | 120,000 |   |
| 2012 |   |   | 120,000 |   |
| 2013 |   |   | 120,000 |   |
| 2014 |   |   | 120,000 |   |

| 6.         ACCRUED EXPENSES: |   | The      following are included in accrued expensesat: |
|---------------------------------------------|--------|--------------------------------------------------------|

|                                  |   | June      30, |    |
|---------------------------------------|--------|---------------|---------|
|                                  |   | 2009          |    |   | 2008 |   |
| Accrued      research                 |   | $             | 152,226 |   |   | $ | 149,154 |   |
| Accrued      deferred financing costs |   |          | -       |   |   |   | 96,962 |   |
| Accrued      director fees            |   |          | 44,800  |   |   |   | - |   |
| Accrued      patent costs             |   |          | 96,313  |   |   |   | 50,000 |   |
| Accrued      legal                    |   |          | 43,216  |   |   |   | 9,489 |   |
| Accrued      other                    |   |          | 19,382  |   |   |   | 8,662 |   |
|                                  |   | $             | 355,937 |   |   | $ | 314,267 |   |

| 7.    STOCKHOLDERS'            EQUITY AND           |   | 2007 Private Placement of      Convertible Notes and Warrants                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             CONVERTIBLE            NOTES: |   | On      August 1, 2007 and August 29, 2007, the Company entered into binding      Securities Purchase Agreements with YA Global Investments L.P. (“YA      Global”) and Stanford Venture Capital Holdings, Inc. (“Stanford”),      respectively, to sell to each of YA Global and Stanford up to $5,000,000      of secured convertible notes and accompanying warrants for an aggregate      gross proceeds of $10,000,000.  The convertible notes convert      into the Company’s common stock at a fixed price of $0.90 per share      subject to certain adjustments (the “Fixed Conversion Price”), through August 1, 2009 and      December 20, 2009, respectively, at which time the convertible      notes may convert into shares of the Company’s common stock at the lower      of the fixed conversion price or 80% of the lowest daily volume-weighted      average price (the “VWAP”), of the common stock during the five trading      days prior to the conversion date. The maturity date of each of the      convertible notes for YA Global and Stanford is December 30, 2010 and      December 31, 2010, respectively. |
|                                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                  |   | The      convertible notes accrue interest on their outstanding principal balances      at an annual rate of 8%.  The Company has the option to pay      interest in cash or, upon certain conditions, common stock.  If      the Company pays interest in common stock, the stock will be valued at a      10% discount to the average daily VWAP for the five day trading period      prior to the interest payment date (the “Interest  Shares”).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

----

----

|   |   | The      agreements with YA Global and Stanford provide for the issuance of      warrants to purchase an aggregate of 5,550,000 and 8,333,333,      respectively, of the Company’s Common Stock, exercisable six months and      one day from the date of issuance until their expiration on the date that      is five years from the date of issuance.  The warrants have been      issued in two series. The exercise price of the Series A warrants is $1.01      per share, and the exercise price of the Series B warrants is $0.90 per      share, subject to certain adjustments.  The warrants provide a      right of cashless exercise if, at the time of exercise, there is no      effective registration statement registering the resale of the shares      underlying the warrants.                                                                                                           |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | The      conversion rate of each convertible note and the exercise price of the      Series B warrants are subject to adjustment for certain events, including      dividends, stock splits, combinations and the sale of the Company’s Common      Stock or securities convertible into or exercisable for the Company’s      Common Stock at a price less than the then applicable conversion or      exercise price.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | At      the fixed conversion price, the number of shares of common stock issuable      upon conversion of the remaining $9,455,000 (during the years ended June      30, 2008 and 2009, YA Global converted an aggregate of $545,000 of      convertible notes into 605,556 shares of common stock) of convertible      notes outstanding and shares of common stock to be issued upon exercise of      the warrants outstanding at June 30, 2009 represents, in the aggregate,      24,388,888 shares, plus an estimated additional 1,900,000 shares for the      payment of interest in stock under the convertible notes.  As of      September 22, 2009, there were $8,801,600 of convertible notes remaining      (from July 1, 2009 through September 22, 2009, YA Global converted an      additional $653,400 of convertible notes into 1,705,288 shares of common      stock).                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | At      the Company’s option, it can redeem a portion of, or all of, the principal      owed under the convertible notes by providing the investors with at least      30 business days’ written notice, provided that, at the time of receipt of      the notice, either: (A)(i) the VWAP of the common stock exceeds 130% of      the Fixed Conversion Price for at least 20 of 30 prior trading days and      (ii) there is an effective registration statement for the resale of the      common stock that will be issued under the redemption or (B) it redeems a      portion, or all, of the principal owed at a 20% premium above the      principal then outstanding and any accrued interest      thereupon.  If the Company redeems all or any of the principal      outstanding under the convertible notes, it will pay an amount equal to      the principal being redeemed plus accrued interest. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | The      Company has the option to force the investors to convert 50% and 100% of      its then-outstanding convertible notes if its common stock price exceeds      150% and 175% of the Fixed Conversion Price, respectively, for any 20 out      of 30 trading days; provided that such forced conversion meets certain      conditions (the “Call Option”).  If the Company exercises its      Call Option prior to the third anniversary of the signing date, it will      issue additional warrants to the investor equal to 50% of the number of      shares underlying the convertible note subject to the forced      conversion.  These warrants will be exercisable at the fixed      conversion price and will have the same maturity as the other warrants      issued under the YA Global financing.                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   | The      Company’s obligations under the convertible notes are secured by all of      its and its subsidiary’s assets and intellectual property, as evidenced by      certain Security Agreements and certain Patent Security Agreements by and      between the Company and each of YA Global and      Stanford.  Pursuant to a subordination agreement, YA Global is      the senior securedcreditor.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

----

|   |   | The      investors have a right of first refusal on any future funding that      involves the issuance of the Company’s capital stock for so long as a      portion of the convertible notes is outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   | Specifics      of YA Global Financing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   | Pursuant      to the YA Global Securities Purchase Agreement, the Company has issued      three convertible notes in the aggregate amount of $5,000,000 and two      Series A warrants in the amount of 1,387,500 shares each on September 21,      2007 and October 16, 2007 and a Series B warrant in the amount of      2,775,000 shares on December 20, 2007.                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   | The      gross proceeds, less $280,000 paid to YA Global, of $4,720,000 from the      issuance of convertible notes and warrants have been allocated between the      convertible notes and warrants based upon their fair values, whereby the      fair value for the warrants have been  determined using the      Black-Scholes model.  Additional amounts were allocated to the      beneficial conversion feature based upon the effective conversion price      compared to the fair value of the common stock on the date of issuance of      the convertible notes and warrants. The material factors incorporated      in the Black-Scholes model in estimating the value of the warrants include      the following: |

| Estimated life in      years | 5           |   |
|------------------------------|-------------|--------|
| Risk-free interest      rate | 3.5% - 4.4% |   |
| Volatility                   | 100%        |   |
| Dividend    paid             | None        |   |

|   |   | As of June 30, 2008, net proceeds      of $4,720,000 were allocated to the warrants and beneficial conversion      feature and recorded as equity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   | The      convertible notes and warrants issued to YA Global are subject to a      maximum cap of 30,500,000 on the number of shares of common stock that can      be issued upon the conversion of the convertible notes and the exercise of      the warrants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   | Specifics      of Stanford Financing                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   | Pursuant      to the Stanford Securities Purchase Agreement, on December 20, 2007 and      June 30, 2008, the Company issued an aggregate of three convertible notes      in the aggregate amount of $5,000,000 and three Series A and three Series      B warrants in the aggregate amount of 8,333,333 shares                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |   | The      gross proceeds, less $380,000 paid to Stanford, of $4,620,000 from the      issuance of the convertible notes and warrants have been allocated between      the convertible notes and warrants based upon their fair values, whereby      the fair value for the warrants have been  determined using the      Black-Scholes model.  Additional amounts were allocated to the      beneficial conversion feature based upon the effective conversion price      compared to the fair value of the common stock on the date of issuance of      the convertible notes and warrants. The material factors incorporated      in the Black-Scholes model in estimating the value of the warrants include      thefollowing: |

----

----

| Estimated life in      years | 5                           |   |
|------------------------------|-----------------------------|--------|
| Risk-free interest      rate | 3.4%      -  3.5% |   |
| Volatility                   | 100%                        |   |
| Dividend    paid             | None                        |   |

|   |   | The      convertible notes and warrants issued to Stanford are subject to a maximum      cap of 31,888,888 on the number of shares of common stock that can be      issued upon the conversion of the convertible notes and the exercise of      the warrants.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | Debt      discount associated with the Convertible Notes is amortized to interest      expense, using the effective yield method, over the remaining life of the      Convertible Notes.  Upon conversion of the Convertible Notes      into Common Stock, any unamortized debt discount relating to the portion      converted will be charged to interest.  Total charges to      interest for amortization of debt discount were $51,160, $500,057 and      $551,217 for the years ended June 30, 2009 and June 30, 2008 and from      inception through June 30, 2009, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | As      of June 30, 2009, the outstanding balance of the Convertible Notes were      $6,217, which is comprised of notes with an aggregate face amount of      $9,455,000 less unamortized debt discount of$9,448,783.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | The costs associated with the      issuances in the amount of $1,291,427 have been recorded as deferred      financing costs and are being amortized ratably over the term of the      convertible notes.  The balance of deferred financing costs as      of June 30, 2009 amounted to $632,324.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | Stock      Incentive Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | In      December 2008, the Company adopted the 2008 Incentive Compensation Plan      (the "2008 Plan"), which provides for the grant of stock options, stock      grants and stock purchase rights to certain designated employees and      certain other persons performing services for the Company, as designated      by the board of directors.  Pursuant to the 2008 Plan, an      aggregate of 5,137,200 shares of common stock have been reserved for      issuance.  The 2008 Plan is intended to serve as a successor to      the Amended and Restated 1998 Stock Incentive Plan (the “1998 Plan”),      which terminated in December 2008.  To the extent that any of      the 4,548,384 options or restricted stock units issued under the 1998 Plan      subsequently expire unexercised or without the issuance of shares      thereunder, the number of shares of common stock subject to those expired      options and restricted stock units will be added to the share reserve      available for issuance under the 2008 Plan, up to an additional 1,000,000      shares.  On February 19, 2009, the Company filed a registration      statement with the SEC to register all of the 6,137,200 shares of Common      Stock underlying the 2008 Plan.  The registration statement was      deemed effective upon filing. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | The terms and vesting schedules      for share-based awards vary by type of grant and the employment status of      the grantee.  Generally, the awards vest based upon time-based      conditions or achievement of specified goals and      milestones.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |   | The fair value of each stock      option granted has been determined using the Black-Scholes      model.  The material factors incorporated in the      Black-Scholes model in estimating the value of the options reflected in      the above table include thefollowing:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

----

|                             |   | Year      Ended June 30, |      |
|----------------------------------|--------|--------------------------|-----------|
|                             |   | 2009                     |      |   | 2008 |   |   | 2007 |   |
| Estimated      life in years     |   |                     | 3.0-5.5   |   |   |   | 4-6 |   |   |   | 6-10 |   |
| Risk-free      interest rate (1) |   |                     | 1.3%-2.1% |   |   |   | 1,9%-4.1% |   |   |   | 4.2%-4.65% |   |
| Volatility                       |   |                     | 100%      |   |   |   | 100% |   |   |   | 70%-80% |   |
| Dividend      paid               |   | None                     |      |   | None |   |   | None |   |

|   |   | (1)         represents      the interest rate on a U.S. Treasury security with a maturity date      corresponding to that of the option term.                            |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                  |
|   |   | The economic values of the options      will depend on the future price of the Company's common stock, par value      $0.01 (the “Common Stock”), which cannot be forecast with reasonable      accuracy. |
|   |   |                                                                                                                                                                                                                  |
|   |   | Stock      option activity under the 2008 Plan and 1998 Plan is summarized as      follows:                                                                                                                           |

|                                                                                                                     |   |   |      |   | Weighted-average |   |
|--------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|------------------|--------|
|                                                                                                                     |   | Shares |      |   | Exercise Price   |   |
| Options      outstanding at July 1, 2006                                                                                 |   |   | 2,426,500 |   |             | $      | 2.56 |   |
| Granted                                                                                                                  |   |   | 338,000   |   |             | $      | 1,08 |   |
| Exercised                                                                                                                |   |   | -         |   |             |   | - |   |
| Expired                                                                                                                  |   |   | (118,500  | )      |             | $      | 3.42 |   |
| Options      outstanding at June 30, 2007                                                                                |   |   | 2,646,000 |   |             | $      | 2.33 |   |
| Granted                                                                                                                  |   |   | 1,069,600 |   |             | $      | 0.99 |   |
| Exercised                                                                                                                |   |   | -         |   |             |   | - |   |
| Expired                                                                                                                  |   |   | -         |   |             |   | - |   |
| Options      outstanding at June 30, 2008                                                                                |   |   | 3,715,600 |   |             | $      | 1,95 |   |
| Granted                                                                                                                  |   |   | 834,812   |   |             | $      | 0.59 |   |
| Exercised                                                                                                                |   |   | -         |   |             |   | - |   |
| Expired                                                                                                                  |   |   | -         |   |             |   | - |   |
| Options      outstanding at June 30, 2009                                                                                |   |   | 4,550,412 |   |             | $      | 1.70 |   |
|                                                                                                                     |   |   |      |   |             |   |   |   |
| Options      exercisable at June 30, 2007                                                                                |   |   | 2,396,334 |   |             | $      | 2.45 |   |
| Options      exercisable at June 30, 2008                                                                                |   |   | 2,778,336 |   |             | $      | 2.25 |   |
| Options      exercisable at June 30, 2009                                                                                |   |   | 3,667,412 |   |             | $      | 1.90 |   |
|                                                                                                                     |   |   |      |   |             |   |   |   |
| Weighted-average      fair value of  options granted during the      year   ended June 30, 2007 |   |   |      |   |             | $      | 0.86 |   |
| Weighted-average      fair value of  options granted during the      year   ended June 30, 2008 |   |   |      |   |             | $      | 0.76 |   |
| Weighted-average      fair value of  options granted during the      year   ended June 30, 2009 |   |   |      |   |             | $      | 0.45 |   |

----

----

|                                           |   |           |      |   | Weighted-average |   |
|------------------------------------------------|--------|----------------|-----------|--------|------------------|--------|
|                                           |   | Number      of |      |   | Grant-Date       |   |
|                                           |   | Options        |      |   | Fair Value       |   |
| Non-vested      stock options at July 1, 2006  |   |           | 245,163   |   |             | $      | 1.47 |   |
| Granted                                        |   |           | 338,000   |   |             | $      | 0.86 |   |
| Vested                                         |   |           | (328,497  | )      |             | $      | 1.30 |   |
| Forfeited                                      |   |           | (5,000    | )      |             | $      | 0.87 |   |
| Non-vested      stock options at June 30, 2007 |   |           | 249,666   |   |             | $      | 1.07 |   |
| Granted                                        |   |           | 1,069,600 |   |             | $      | 0.76 |   |
| Vested                                         |   |           | (382,002  | )      |             | $      | 0.82 |   |
| Forfeited                                      |   |           | -         |   |             |   | - |   |
| Non-vested      stock options at June 30, 2008 |   |           | 937,264   |   |             | $      | 0.77 |   |
| Granted                                        |   |           | 834,812   |   |             | $      | 0.45 |   |
| Vested                                         |   |           | (889,076  | )      |             | $      | 0.58 |   |
| Forfeited                                      |   |           | -         |   |             |   | - |   |
| Non-vested stock options at June 30,      2009 |   |           | 883,000   |   |             | $      | 0.66 |   |

|                 |   |                |      |   | Options Outstanding          |   |   | Options Exercisable |   |
|----------------------|--------|---------------------|-----------|--------|------------------------------|--------|--------|---------------------|--------|
|                 |   |                |      |   | Weighted      –average |   |   | Weighted-           |   |   |   |   |   | Weighted- |   |
|                 |   | Number              |      |   | Remaining                    |   |   | average             |   |   | Number |   |   | average |   |
| Ranges      of       |   | Outstanding      at |      |   | Contractual                  |   |   | Exercise            |   |   | Exercisable      at |   |   | Exercise |   |
| Exercise      Prices |   | June      30, 2009  |      |   | Life      (Years)            |   |   | Price               |   |   | June      30, 2009 |   |   | Price |   |
| $0.47      - $0.99   |   |                | 1,854,412 |   |                         |   | 8.8    |                |   | $ | 0.81 |   |   |   | 971,412 |   |   | $ | 0.77 |   |
| $1.05      - $2.05   |   |                | 1,378,500 |   |                         |   | 4.6    |                |   | $ | 1.60 |   |   |   | 1,378,500 |   |   | $ | 1.60 |   |
| $2.10      - $4.00   |   |                | 1,317,500 |   |                         |   | 3.2    |                |   | $ | 3.06 |   |   |   | 1,317,500 |   |   | $ | 3.06 |   |
| $0.47      - $4.00   |   |                | 4,550,412 |   |                         |   | 5.9    |                |   | $ | 1.70 |   |   |   | 3,667,412 |   |   | $ | 1.90 |   |

----

----

|   |        1. | 25%      of eligible shares and options for contributions relating to the Company’s      Human Health Objectives; |
|--------|----------------|-------------------------------------------------------------------------------------------------------------------------|

|   |        2. | 15%      of eligible shares and options for contributions relating to the Company’s      Finance Objectives; |
|--------|----------------|--------------------------------------------------------------------------------------------------------------------|

|   |        3. | 20%      of eligible shares and options for contributions relating to the Company’s      Agricultural Licensing Objectives; |
|--------|----------------|-----------------------------------------------------------------------------------------------------------------------------------|

|   |        4. | 25%      of eligible shares and options for contributions relating to the Company’s      Investor Relations, Intellectual Property and Website Administration;      and |
|--------|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |        5. | 15%      of the eligible shares and options relating to the Company’s      Organizational Objectives. |
|--------|----------------|-------------------------------------------------------------------------------------------------------------|

|                         |   | Number of Shares |    |   | Number of Options (1) |   |
|------------------------------|--------|------------------|---------|--------|-----------------------|--------|
| Bruce      C. Galton         |   |             | 66,000  |   |                  |   | — |   |
| John      E. Thompson, Ph.D. |   |             | — |   |                  |   | 48,000 |   |
| Joel      Brooks             |   |             | 28,000  |   |                  |   | — |   |
| Richard      Dondero         |   |             | — |   |                  |   | 80,000 |   |
| Sascha      P. Fedyszyn      |   |             | 42,000  |   |                  |   | — |   |
| Total                        |   |             | 136,000 |   |                  |   | 128,000 |   |

----

----

----

|                         |   | Number of Shares |    |   | Number of Options (1) |   |
|------------------------------|--------|------------------|---------|--------|-----------------------|--------|
|                         |   |             |    |   |                  |   |
| Bruce      C. Galton         |   |             | 50,225  |   |                  |   | — |   |
| John      E. Thompson, Ph.D. |   |             | — |   |                  |   | 52,676 |   |
| Joel      Brooks             |   |             | 37,275  |   |                  |   | — |   |
| Richard      Dondero         |   |             | — |   |                  |   | 71,924 |   |
| Sascha      P. Fedyszyn      |   |             | 25,200  |   |                  |   | — |   |
|                         |   |             |    |   |                  |   |   |   |
| Total                        |   |             | 112,700 |   |                  |   | 124,600 |   |

----

----

|                         |   | Goal 1 |    |   | Goal 2 |   |    | Goal 3 |   |
|------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Number      of Shares        |   |   |    |   |   |   |    |   |   |
|                         |   |   |    |   |   |   |    |   |   |
| Bruce      C. Galton         |   |   | 25,000  |   |   |   | 25,000  |   |   |   | 75,000 |   |
| Joel      Brooks             |   |   | 10,000  |   |   |   | 10,000  |   |   |   | 30,000 |   |
| Sascha      P. Fedyszyn      |   |   | 10,000  |   |   |   | 10,000  |   |   |   | 30,000 |   |
|                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Total      number of shares  |   |   | 45,000  |   |   |   | 45,000  |   |   |   | 135,000 |   |
|                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Number of Options (1)        |   |   |    |   |   |   |    |   |   |   |   |   |
|                         |   |   |    |   |   |   |    |   |   |   |   |   |
| John      E. Thompson, Ph.D. |   |   | 50,000  |   |   |   | 50,000  |   |   |   | 150,000 |   |
| Richard      Dondero         |   |   | 60,000  |   |   |   | 60,000  |   |   |   | 180,000 |   |
|                         |   |   |    |   |   |   |    |   |   |   |   |   |
| Total      number of options |   |   | 110,000 |   |   |   | 110,000 |   |   |   | 330,000 |   |

----

----

|                        |   | June      30, |       |
|-----------------------------|--------|---------------|------------|
| Exercise      Price         |   | 2009          |       |   | 2008 |   |
| $7.00                       |   |          | 10,000     |   |   |   | 10,000 |   |
|   3.79            |   |          | -          |   |   |   | 842,141 |   |
|   3.59            |   |          | -          |   |   |   | 237,600 |   |
|   3.50            |   |          | 280,000    |   |   |   | 280,000 |   |
|   3.45            |   |          | 15,000     |   |   |   | 15,000 |   |
|   3.38            |   |          | 965,380    |   |   |   | 965,380 |   |
|   3.15            |   |          | 20,000     |   |   |   | 20,000 |   |
|   2.35            |   |          | 15,000     |   |   |   | 15,000 |   |
|   2.15            |   |          | 110,000    |   |   |   | 110,000 |   |
|   1.40            |   |          | 5,000      |   |   |   | 5,000 |   |
|   1.18            |   |          | 993,153    |   |   |   | 993,153 |   |
|   1.08            |   |          | 2,500      |   |   |   | 2,500 |   |
|   1.07            |   |          | 139,041    |   |   |   | 139,041 |   |
|   1.01            |   |          | 8,675,000  |   |   |   | 8,675,000 |   |
|          .99 |   |          | 1,000      |   |   |   | 1,000 |   |
|     .90 |   |          | 7,330,555  |   |   |   | 7,330,555 |   |
|     .74 |   |          | 151,314    |   |   |   | 155,556 |   |
|     .60 |   |          | 500        |   |   |   | - |   |
|                        |   |          | 18,713,443 |   |   |   | 19,796,926 |   |

----

----

|   |   | As      of June 30, 2009, 18,712,777 of the above warrants are exercisable      expiring at various dates through 2018.  At June 30, 2009, the      weighted-average exercise price on the above warrants was      $1.15.                  |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                 |
|   |   | Share      Based Compensation                                                                                                                                                                                                                        |
|   |   |                                                                                                                                                                                                                                                 |
|   |   | The      following stock-based compensation expense of $506,847, $897,321, $970,162      and $10,202,944 was recognized for the years ended June 30, 2009, 2008,      2007 and cumulatively from inception through June 30, 2009,      respectively: |

|                                         |   | Year Ended June 30, |    |   | Cumulative |   |
|----------------------------------------------|--------|------------------------------------|---------|--------|------------|--------|
|                                         |   | 2009                               |    |   | 2008       |   |   | 2007 |   |   | From Inception |   |
| General      and administrative expenses     |   | $                                  | 445,255 |   |       | $      | 749,100 |   |   | $ | 909,848 |   |   | $ | 8,731,296 |   |
| Research      and development expenses       |   |                               | 61,592  |   |       |   | 148,221 |   |   |   | 60,314 |   |   |   | 1,471,648 |   |
| Total      stock-based compensation expense  |   | $                                  | 506,847 |   |       | $      | 897,321 |   |   | $ | 970,162 |   |   | $ | 10,202,944 |   |
| Basic      and diluted loss per common share |   | $                                  | .03     |   |       | $      | .05 |   |   | $ | .06 |   |   |   |   |   |

| 8.  INCOME TAXES: |   | The      Company files a consolidated federal income tax return.  The      subsidiary files separate state and local income tax    returns. |
|----------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|                             |   |                                                                                                                                                  |
|                             |   | The      reconciliation of the effective income tax rate to the federal statutory      rate is as follows:                                            |

| Year      ended June 30,                               |   | 2009   |   |   | 2008   |   |       | 2007   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|------------|--------|--------|
|                                                   |   |   |   |   |   |   |       |   |   |
| Federal      statutory rate                            |   |   | (34.0  | )%     |   |   | (34.0      | )%     |   |   | (34.0 | )% |
| Stock      based compensation                          |   |   | 0.5    | %      |   |   | 0.5        | %      |   |   | 2.7 | % |
| Amortization      of debt discount and financing costs |   |   | 5.8    | %      |   |   | 2.9        | %      |   |   | - |   |
| Other                                                  |   |   | 0.1    | %      |   |   | 0.1        | %      |   |   | 0.1 | % |
| Valuation      allowance                               |   |   | 27.6   | %      |   |   | 30.5       | %      |   |   | 31.2 | % |
|                                                   |   |   | -0-    | %      |   |   | - 0      - | %      |   |   | - 0      - | % |

|   |   | The      deferred income tax asset consists of the following  at: |
|--------|--------|-------------------------------------------------------------------|

|                                 |   | June      30, |        |
|--------------------------------------|--------|---------------|-------------|
|                                 |   | 2009          |        |   | 2008 |   |
|                                 |   |          |        |   |   |   |
| Deferred      tax asset:             |   |          |        |   |   |   |
| Net      operating loss carryforward |   | $             | 9,791,000   |   |   | $ | 7,528,000 |   |
| Stock-based      compensation        |   |          | 1,698,000   |   |   |   | 1,506,000 |   |
| Other                                |   |          | 31,000      |   |   |   | 118,000 |   |
|                                 |   |          | 11,520,000  |   |   |   | 9,152,000 |   |
|                                 |   |          |        |   |   |   |   |   |
| Valuation      allowance             |   |          | (11,520,000 | ) |   |   | (9,152,000 | ) |
|                                 |   | $             | -      0-   |   |   | $ | - 0      - |   |

----

----

|   |   | At      June 30, 2009, the Company has federal and state net operating loss      carryforwards of approximately $25,582,000 and $19,219,000, respectively,      available to offset future taxable income expiring on various dates      through 2029.  The timing and extent to which the Company can      utilize future tax deductions in any year may be limited by provisions of      the Internal Revenue Code regarding changes in ownership of Corporations      (i.e. IRS Code Section 382). |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.  COMMITMENTS: |   | Research      Agreement Effective      September 1, 1998, the Company entered into a research and development      agreement, which has subsequently been renewed, with The University of      Waterloo which Dr. John Thompson, who is an officer, director and      stockholder of the Company, is affiliated with.  Pursuant to the      agreement, the university provides research and development under the      direction of the researcher and the Company.  The agreement is      renewable annually by the Company which has the right of termination upon      30 days' advance written notice.  Effective September 1, 2009,      the Company extended the research and development agreement for an      additional one-year period through August 31, 2010, in the amount of Can      $650,400, or approximately U.S. $650,400. Research and development      expenses under this agreement for the years ended June 30, 2009, 2008 and      2007 aggregated U.S. $653,104, U.S. $730,960 and U.S. $568,872,      respectively, and U.S. $5,280,368 for the cumulative period through June      30, 2009.  Future obligations to be paid under the agreement      through August 31, 2010 equal approximately U.S. $770,000. Supply      Agreements On      June 27, 2008, the Company entered into a supply agreement with VGXI, Inc.      (“VGXI”) under which VGXI will supply the Company with the plasmid portion      of the Company’s combination therapy consisting of the Factor 5A gene and      siRNA against Factor 5A (the “Plasmid      Product”).    The agreement has an initial term that      commences on the date of the agreement and runs for a period of five (5)      years.  The agreement shall, upon mutual agreement, renew for      consecutive one (1) year periods thereafter.  The Company’s      financial obligation under the agreement is dependent upon the amount of      Plasmid Product ordered by the Company. On      June 30, 2008, the Company entered into a supply agreement with POLYPLUS      under which POLYPLUS will supply the Company with its “in vivo-jetPEI” (the      “Product”), which is used for systemic delivery of the Company’s      combination therapy of siRNA against Factor 5A and a plasmid of the Factor      5A gene.  The agreement has an initial term which commences on      the date of the agreement and runs until the eighth anniversary of the      first sale of the Product.  The agreement shall automatically      renew for consecutive one (1) year periods thereafter, except if      terminated by either party upon six (6) months written notice prior to the      initial or any subsequent renewal term.  The Company’s financial      obligation under the agreement is dependent upon the amount of Product      ordered by the Company. |
|----------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|   |   | On      September 4, 2008, the Company entered into a supply agreement with AVECIA      under which AVECIA will supply the Company with the siRNA portion of the      Company’s combination therapy consisting of the Factor 5A gene and siRNA      against Factor 5A (the “Plasmid Product”).  The agreement has a      term which commences on the date of the agreement and terminates on the      later of the completion of all services to be provided under the agreement      or 30 days following delivery of the final shipment of      product. In      the aggregate, the Company anticipates that it will pay approximately      $690,000 under the terms of the supply agreements over to the next 12      months. Employment      and Consulting Agreements Effective      May 1, 1999, the Company entered into a consulting agreement for research      and development with Dr. John Thompson.  Effective January 1,      2003, 2005, and 2007, the agreement was amended to provide for an increase      in the monthly payments from $3,000 to $5,000, $5,000 to $5,200, and      $5,200 to $5,417, respectively.  The agreement was renewed for      an additional two-year term through June 30, 2011.  Future      obligations to be paid under the agreement equal  $130,000. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |   | The      Company had employment agreements with the executive officers of the      Company, all of whom are also stockholders of the      Company.  These agreements provided for a base compensation and      additional amounts, as defined.  In May 2009, the Company gave      notice of termination of the employment agreements.  The      agreements will expire between October 2009 and July      2010.  Future base compensation to be paid through July 2010      under the agreements as of June 30, 2009 is $434,974. Facility      Lease The      Company is obligated under a noncancelable operating lease of office space      expiring on May 31, 2011.  The aggregate minimum future      payments, subject to certain escalations, is payable as      follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

| Year      ending June 30, |   |   |    |
|---------------------------|--------|--------|---------|
| 2010                      |   |   | 79,420  |   |
| 2011                      |   |   | 73,568  |   |
|                      |   | $      | 152,988 |   |

|   |   | Rent      expense charged to operations aggregated $84,768, $75,602, $92,872 and      $670,577 for the years ended June 30, 2009, 2008, 2007, and from inception      through June 30, 2009, respectively. The      lease provides for scheduled increases in base rent.  Rent      expense is charged to operations ratably over the term of the lease, which      results in deferred rent payable and represents the cumulative rent      expense charged to operations from inception of the lease in excess of the      required lease payments. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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----

|   |   | Financial      Advisory Agreement On October 11, 2006, the Company      entered into a three-year non-exclusive financial advisory agreement with      Stanford Group Company (“Stanford”).  As compensation under the      agreement, previously issued warrants that were purchased by Stanford and      its affiliates in a private placement were amended.  The      original exercise prices on 1,500,000 warrants, 750,000 of which had an      exercise price of $3.25 and 750,000 of which had an exercise price of      $2.00, were reduced to $2.00 and $1.50,      respectively.  Additionally, the original expiration dates of      December 2006 and January 2007 were each extended for a three-year period      through December 2009 and January 2010,      respectively.  Stock-based compensation in the amount of      $683,000 related to the amendment of such      warrants was recorded during the year ended June 30, 2007. Stanford was also granted      piggyback registration rights in connection with the shares underlying the      warrants. On      February 14, 2008,      the Company amended the agreement.  The amendment extended the      term of the agreement through June 30, 2012 and expanded the services to      be provided to the Company.  As compensation for the term      extension and expansion of services, previously issued warrants were      amended.  The exercise prices of the 1,500,000 shares of Common      Stock underlying the warrants, 750,000 of which had an exercise price of      $2.00 and 750,000 of which had an exercise price of $1.50, were reduced to      $1.01.  Additionally, the expiration dates of December 2009 and      January 2010 were each extended through June 30, 2012.  A      compensation charge in the amount of $384,500 was recorded during the year      ended June 30, 2008 in connection with extension and repricing of the      warrants.  The agreement may be terminated by either party upon      sixty days written notice.  In      February, 2009, Stanford was put into receivership and no longer has the      ability to perform the services provided for in the      agreement.  The Company has no further obligations under the      agreeement |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.  JOINTVENTURE: |   | On      May 14, 1999, the Company entered into a joint venture agreement ("Joint      Venture") with an Israeli partnership that is engaged in the worldwide      marketing of tissue culture plants.  The purpose of the Joint      Venture is to develop enhanced banana plants which will result in banana      fruit with improved consumer- and grower-driven traits.  For the      period from inception on May 14, 1999 to June 30, 2009, the Joint Venture      has had no revenue, expenses, assets or liabilities.  The      program has been performed as a joint collaboration whereby the Company      pays for 50% of the research costs of the program.  The      Company's portion of the  expenses of the collaboration      approximated $210,000, $205,000 and $162,500 for the years ended June 30,      2009, 2008 and 2007, respectively, and is included in research and      development expenses. In      July 1999, the Joint Venture applied for and received a conditional grant      from the Israel - United States Binational Research and Development      Foundation (the "BIRD Foundation").  This agreement, as amended,      allowed the Joint Venture to receive $340,000 over a five-year period      ending May 31, 2004.  Grants received from the BIRD Foundation      will be paid back only upon the commercial success of the Joint Venture's      technology, as defined.  The Company has received a total of      $99,728, none of which was received during the years ended June 30, 2009,      June 30, 2008 and June 30,2007. |
|------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| 11.  LICENSE      ANDDEVELOPMENTAGREEMENTS: |   | In      June 2002, the Company entered into a three-year exclusive worldwide      development and option agreement with ArborGen, ("ArborGen") (the      "Agreement") to develop the Company's technology in certain species of      trees.  In July 2002, the Company received an initial      fee.  In November 2004 and January 2006, the Company received      milestone payments.  On December 21, 2006, ArborGen converted      the Agreement into a commercial license agreement for the development      and commercialization of certain species of trees.  Under the      terms of the license agreement, the Company will receive certain annual      payments over two years and, additionally, upon commercialization, a      royalty on incremental net sales. On      November 8, 2006, the Company entered into a license agreement with Bayer      CropScience GmbH for the development and commercialization of Canola (the      “Agreement”).  Under the terms of the Agreement, the      Company (i) received an upfront payment, (ii) will receive      milestone payments upon the achievement of certain development milestones,      and (iii) will receive commercialization      fees based upon specified benchmarks. On      July 17, 2007, the Company entered into a license agreement with      Bayer CropScience AG for the development and commercialization of cotton      (the “Bayer Cotton Agreement”).  Under the terms of the Bayer      Cotton Agreement, the Company (i) received an upfront initial      payment, (ii) will receive milestone payments upon the achievement of      certain development milestones, and (iii) additionally, upon      commercialization, a royalty on net sales. On      August 6, 2007, the Company entered into a license agreement with the      Monsanto Company for the development and commercialization of corn      and soy (the “Monsanto Agreement”).  Under the terms of the      Monsanto Agreement, the Company (i) received an upfront initial      payment, (ii) will receive milestone payments upon the achievement of      certain development milestones, and (iii) additionally, upon      commercialization, a royalty on net sales. On      September 11, 2007, the Company entered into a license agreement with      Bayer CropScience AG for the development and commercialization of Rice      (the “Bayer Rice Agreement”).  Under the terms of the Bayer Rice      Agreement, the Company (i) received an upfront payment, (ii) will      receive milestone payments upon the achievement of certain development      milestones, and (iii) additionally, upon commercialization, a royalty on      net sales. |
|-------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                  |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 12.  VALUATIONANDQUALIFYINGACCOUNTS:        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

|                                                |   | Years Ended June 30, 2009, 2008, and 2007. |      |
|-----------------------------------------------------|--------|-------------------------------------------------------------------------------|-----------|
|                                                |   | Balance at                                                               |      |   | Additions |   |   |   |   |   |   |   |
|                                                |   | Beginning of                                                             |      |   | Charged |   |   |   |   |   | Balance at |   |
|                                                |   | Year                                                                          |      |   | to Expense(*) |   |   | Deductions |   |   | End of Year |   |
| Year      ended June 30, 2009:                      |   |                                                                          |      |   |   |   |   |   |   |   |   |   |
| Valuation      allowance – deferred tax asset |   | $                                                                             | 9,152,000 |   |   | $ | 2,368,000 |   |   | $ | 0 |   |   | $ | 11,520,000 |   |
| Year      ended June 30, 2008:                      |   |                                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Valuation      allowance – deferred tax asset |   | $                                                                             | 7,719,000 |   |   | $ | 1,433,000 |   |   | $ | 0 |   |   | $ | 9,152,000 |   |
| Year      ended June 30, 2007:                      |   |                                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Valuation      allowance – deferred tax asset |   | $                                                                             | 6,523,000 |   |   | $ | 1,196,000 |   |   | $ | 0 |   |   | $ | 7,719,000 |   |

|   |   | (*)      Offset to tax benefit of net operationlosses. |
|--------|--------|--------------------------------------------------------|

----

----

| 13.  QUARTERLYFINANCIALDATA(UNAUDITED)      : |   |   |
|---------------------------------------------------------|--------|--------|

|                                                                             |   | Year Ended June 30, 2009 |       |
|----------------------------------------------------------------------------------|--------|----------------------------------------------|------------|
| Quarter Ended                                                               |   | September 30                            |       |   | December 31 |   |   | March 31 |   |   | June 30 |   |
|                                                                             |   |                                         |       |   |   |   |   |   |   |   |   |   |
| Revenue                                                                          |   | $                                            | 200,000    |   |   | $ | - |   |   | $ | 75,000 |   |   | $ | - |   |
| Total      operating expenses                                                    |   |                                         | 1,034,251  |   |   |   | 1,228,342 |   |   |   | 1,072,739 |   |   |   | 1,224,369 |   |
| Loss      from operations                                                        |   |                                         | (834,251   | ) |   |   | (1,228,342 | ) |   |   | (997,739 | ) |   |   | (1,224,369 | ) |
| Interest      expense and amortization of debt discount and financing    costs   |   |                                         | (370,212   | ) |   |   | (413,993 | ) |   |   | (334,475 | ) |   |   | (366,564 | ) |
| Interest      income                                                             |   |                                         | 23,057     |   |   |   | 17,994 |   |   |   | 737 |   |   |   | 1,288 |   |
| Net      loss                                                                    |   | $                                            | (1,181,406 | ) |   | $ | (1,624,341 | ) |   | $ | (1,331,477 | ) |   | $ | (1,589,645 | ) |
| Basic      and diluted net loss per common share                                 |   | $                                            | (0.06      | ) |   | $ | (0.09 | ) |   | $ | (0.07 | ) |   | $ | (0.08 | ) |
| Basic      and diluted weighted-average number of common shares      outstanding |   |                                         | 18,379,379 |   |   |   | 18,629,575 |   |   |   | 19,033,091 |   |   |   | 19,520,549 |   |

|                                                                             |   | Year Ended June 30, 2008 |       |
|----------------------------------------------------------------------------------|--------|----------------------------------------------|------------|
| Quarter Ended                                                               |   | September 30                            |       |   | December 31 |   |   | March 31 |   |   | June 30 |   |
|                                                                             |   |                                         |       |   | (Restated) |   |   | (Restated) |   |   |   |   |
|                                                                             |   |                                         |       |   |   |   |   |   |   |   |   |   |
| Revenue                                                                          |   | $                                            | 371,250    |   |   | $ | 6,250 |   |   | $ | 79,167 |   |   | $ | - |   |
| Total      operating expenses                                                    |   |                                         | 741,954    |   |   |   | 978,105 |   |   |   | 1,351,142 |   |   |   | 984,488 |   |
| Loss      from operations                                                        |   |                                         | (370,704   | ) |   |   | (971,855 | ) |   |   | (1,271,975 | ) |   |   | (984,488 | ) |
| Interest      expense and amortization of debt discount and financing    costs   |   |                                         | (18,221    | ) |   |   | (103,210 | ) |   |   | (254,149 | ) |   |   | (727,337 | ) |
| Interest      income                                                             |   |                                         | 6,879      |   |   |   | 25,227 |   |   |   | 43,907 |   |   |   | 24,436 |   |
| Net      loss                                                                    |   | $                                            | (382,046   | ) |   | $ | (1,049,838 | ) |   | $ | (1,482,217 | ) |   | $ | (1,687,389 | ) |
| Basic      and diluted net loss per common share                                 |   | $                                            | (0.02      | ) |   | $ | (0.06 | ) |   | $ | (0.08 | ) |   | $ | (0.09 | ) |
| Basic      and diluted weighted-average number of common shares      outstanding |   |                                         | 17,473,694 |   |   |   | 17,474,870 |   |   |   | 17,583,461 |   |   |   | 18,113,932 |   |

|   |   | Certain      quarterly amounts for the quarters ended December 31, 2007 and March 31,      2008 have been restated. Effective April 1, 2008, the Company changed the      method of amortization of debt discount from the straight-line method to      the effective yield method in accordance with EITF 98-5.  The      effect of this restatement, on a quarterly basis, is as      follows: |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                                                         |   | Quarter Ended |    |
|----------------------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                                         |   | December 31,  |    |   | March 31, |   |
|                                                                                         |   | 2007               |    |   | 2008 |   |
|                                                                                         |   |               |    |   |   |   |
| Decrease      in interest expense and amortization of debt discount and financing      costs |   | $                  | 244,833 |   |   | $ | 561,950 |   |
| Decrease      in net loss                                                                    |   | $                  | 244,833 |   |   | $ | 561,950 |   |
|                                                                                    |   |               |    |   |   |   |   |   |
| Decrease      in basic and diluted net loss per common share                                 |   | $                  | 0.01    |   |   | $ | 0.04 |   |
| Decrease      in convertible notes payable                                                   |   | $                  | 244,833 |   |   | $ | 806,783 |   |
| Increase      in stockholder’s Equity                                                  |   | $                  | 244,833 |   |   | $ | 806,783 |   |

| 14.       SUBSEQUENTEVENTS |   | Transaction      with Partlet Holdings On      July 9, 2009, the Company entered into a Securities Purchase Agreement      (the “Partlet Securities Purchase Agreement”) with Partlet Holdings Ltd.,      which is an accredited investor, pursuant to which the Company will issue      and sell up to an aggregate of 1,111,111 shares (the “Shares”) of the      Company’s common stock at $0.90 per share and each of a Series A warrant      (the “Partlet Series A Warrant”) and a Series B warrant (the “Partlet      Series B Warrant”) (collectively the Partlet Series A Warrant and Partlet      Series B Warrant shall be referred to herein as the “Partlet      Warrants”). The      Partlet Series A Warrant entitles the holder to purchase 1,000,000 shares      of the Company’s common stock at $0.01 per warrant share.  The      Partlet Series A Warrant has a term of seven years and is exercisable      immediately after the date of grant. The      Partlet Series B Warrant entitles the holder to purchase 2,055,555 shares      of the Company’s common stock at $0.60 per warrant share.  The      Partlet Series B Warrant has a term of seven years and is not exercisable      until after the six-month anniversary after the date ofgrant. On      July 9, 2009, the Company closed on $950,000 of aggregate proceeds of the      private placement and, on that date, issued (i) a total of 1,055,555      Shares (ii) a Partlet Series A Warrant to purchase 950,000 shares of the      Company’s common stock, which was exercised on July 14, 2009, and (iii) a      Partlet Series B Warrant to purchase 1,952,778 shares of the Company’s      common stock.  The remaining $50,000 in proceeds cannot be      closed upon until the Company receives  approval from the NYSE      Amex Exchange for certain aspects of the  transaction. |
|---------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | Transaction      with Each of Robert and Tim Forbes On      July 29, 2009, Senesco Technologies, Inc. (the “Company”) entered into a      Securities Purchase Agreement, (the “Forbes Securities Purchase      Agreement”) with each of Robert Forbes and Timothy Forbes, each of whom is      an accredited investor, pursuant to which, subject to stockholder      approval, it is anticipated that the Company will issue and sell an      aggregate of 444,444 shares of common stock at $0.90 (the “Shares”) per      share and each of a Series A warrant, (the “Forbes Series A Warrants”),      and a Series B warrant (the “Forbes Series B Warrants”).  Each      of Robert Forbes and Timothy Forbes are the brothers of Christopher Forbes      who is a director of Senesco.  Mr. Christopher Forbes will not      be deemed to be the beneficial owner of, nor will he have a pecuniary      interest in the Shares or Warrants issued to his brothers. The      Forbes Series A Warrants entitle the holders to purchase, in the      aggregate, up to 400,000 shares of the Company’s common stock at $0.01 per      warrant share.  The Forbes Series A Warrants have a term of seven      years and are exercisable immediately after the date ofgrant. The      Forbes Series B Warrants entitle the holders to purchase, in the      aggregate, up to 405,556 shares of the Company’s common stock at $0.60 per      warrant share.  The Forbes Series B Warrants have a term of seven      years and are not exercisable until after the six-month anniversary after      the date of grant. Transaction      with Insiders and Affiliates On      July 29, 2009, the Company entered into a Securities Purchase Agreement,      (the “Affiliate’s Securities Purchase Agreement”) with each of Harlan      W. Waksal, M.D., Rudolf Stalder, Christopher Forbes, David Rector, John N.      Braca, Jack Van Hulst, Warren Isabelle and the Thomas C. Quick Charitable      Foundation (the “Affiliate Investors”) each of whom is an accredited      investor, pursuant to which, subject to stockholder approval, it is      anticipated that the Company will issue and sell an aggregate of 144,444      Shares of the Company’s common stock at $0.90 per share and each of a      Series A warrant, (the “Affiliate’s Series A Warrants”), and a Series B      warrant (the “Affiliate’s Series B Warrants”).  Each of Harlan      W. Waksal, M.D., Rudolf Stalder, Christopher Forbes, David Rector, John N.      Braca, Jack Van Hulst and Warren Isabelle serve on the Company’s      board.  The Thomas C. Quick Charitable Foundation is an      affiliate of our board member Thomas C. Quick. The      Affiliate’s Series A Warrants entitle the holders to purchase in the      aggregate, up to 130,000 shares of the Company’s common stock at $0.01 per      warrant share.  The Affiliates Series A Warrants have a term of seven      years and are exercisable immediately after the date ofgrant. The      Affiliate’s Series B Warrants entitle the holders to purchase, in the      aggregate, up to 131,807 shares of the Company’s common stock at $0.60 per      warrant share.  The Affiliate’s Series B Warrants have a term of      seven years and are not exercisable until after the six-month anniversary      after the date of grant. |
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|   |   | Transaction      with Cato Research Ltd. On      July 29, 2009, the Company entered into a Securities Agreement with Cato      Holding Company (“Cato”), who is an accredited investor, pursuant to      which, subject to stockholder approval, it is anticipated that the Company      will issue an aggregate of 194,444 Shares of the Company’s common stock at      $0.90 per share and each of a Series A warrant (the “Cato Series A      Warrant”) and a Series B warrant (the “Cato Series B      Warrant”).  The Shares will be issued to Cato in exchange for      debt which is currently owed by us to Cato Research Ltd. in the amount of      $175,000.  Cato Research Ltd. is an affiliate of      Cato. The      Cato Series A Warrant entitles the holder to purchase in the aggregate, up      to 175,000 shares of the Company’s common stock at $0.01 per warrant      share.  The Cato Series A Warrant has a term of seven years and is      exercisable immediately after the date of grant. The      Cato Series B Warrant entitles the holder to purchase, in the aggregate,      up to 177,431 shares of the Company’s common stock at $0.60 per warrant      share.  The Cato Series B Warrant has a term of seven years and is      not exercisable until after the six-month anniversary after the date of      grant. The      foregoing proceeds cannot be closed upon until the Company receives      approval from the NYSE Amex Exchange for certain aspects of the      transactions and complies with other customary closing      conditions.  Assuming all of the proceeds of the private      placements can be closed upon, the Company anticipates it will receive      gross proceeds equal to $705,000. In      May 2009, the FASB issued FASB Statement No. 165 (SFAS No. 165),      "Subsequent Events", which is effective for reporting periods ending after      June 15, 2009.  SFAS 165 establishes general standards of      accounting for and disclosure of events that occur after the balance sheet      date, but before financial statements are issued, or are available to be      issued.  The Company adopted SFAS No. 165 and it did not have an      impact on the Company's consolidated financial statements.  The      Company evaluated all events or transactions that occurred after June 30,      2009 up through September 22,2009. |
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