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

| For the quarterly period ended |   | SEPTEMBER 30, 2010 |
|--------------------------------|--------|--------------------|

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

| Delaware                                                       | 13-4099008                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) |

| 1324 36th Avenue North EastCalgary, Alberta Canada | T2E 8S1    |
|----------------------------------------------------|------------|
| (Address of Principal Executive Offices)           | (Zip Code) |

| (416) 817-5803                                         |
|--------------------------------------------------------|
| (Issuer’s Telephone Number, Including Area Code) |

| 3 Grant Square, #315, Hinsdale, Illinois 60521, (630) 230-8734 |
|----------------------------------------------------------------|
| (Former address and phone number since last report)            |

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

| Class of Securities            |   | Shares Outstanding |
|--------------------------------|--------|--------------------|
| Common Stock, $0.001 par value |   | 95,000,000         |

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| INDEX                                                                                                                                                      | Page   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                       |   |
| PART I  - FINANCIAL INFORMATION                                                                                                                  |   |
|                                                                                                                                                       |   |
| ITEM 1 - FINANCIAL STATEMENTS                                                                                                                              | 3      |
|                                                                                                                                                       |   |
| Consolidated Balance Sheet at September 30, 2010 (unaudited) and December 31, 2009                                                                         | 3      |
|                                                                                                                                                       |   |
| Consolidated Statements of Operations for the three months ended September 30, 2010 and 2009 and nine months ended September 30, 2010 and 2009 (unaudited) | 4      |
|                                                                                                                                                       |   |
| Consolidated Statements of Cash Flows for the nine months ended September 30, 2010 and 2009 (unaudited)                                                    | 5      |
|                                                                                                                                                       |   |
| Notes to Consolidated Financial Statements (unaudited)                                                                                                     | 6      |
|                                                                                                                                                       |   |
| ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS                                                       | 9      |
|                                                                                                                                                       |   |
| ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                                                                        | 10     |
|                                                                                                                                                       |   |
| ITEM 4 - CONTROLS AND PROCEDURES                                                                                                                           | 11     |
|                                                                                                                                                       |   |
| PART II-OTHER INFORMATION                                                                                                                                  |   |
|                                                                                                                                                       |   |
| ITEM 1 - LEGAL PROCEEDINGS                                                                                                                                 | 13     |
|                                                                                                                                                       |   |
| ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                                                                       | 13     |
|                                                                                                                                                       |   |
| ITEM 3 - DEFAULTS UPON SENIOR SECURITIES                                                                                                                   | 13     |
|                                                                                                                                                       |   |
| ITEM 4 – (REMOVED AND RESERVED)                                                                                                                      | 13     |
|                                                                                                                                                       |   |
| ITEM 5 - OTHER INFORMATION                                                                                                                                 | 13     |
|                                                                                                                                                       |   |
| ITEM 6 – EXHIBITS                                                                                                                                    | 13     |

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|                                                                                                                                                      |   | September 30, 2010(unaudited) |       |   | December 31, 2009 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|------------|--------|-------------------|--------|
| ASSETS                                                                                                                                                    |   |                          |       |   |              |   |
| Current assets:                                                                                                                                           |   |                          |       |   |              |   |
| Cash                                                                                                                                                      |   | $                             | --         |   |              | $      | 140 |   |
|                                                                                                                                                      |   |                          |       |   |              |   |   |   |
| Total current assets                                                                                                                                      |   |                          | --         |   |              |   | 140 |   |
|                                                                                                                                                      |   |                          |       |   |              |   |   |   |
|                                                                                                                                                      |   |                          |       |   |              |   |   |   |
| Other assets:                                                                                                                                             |   |                          |       |   |              |   |   |   |
| Investment in securities of Positron Corporation                                                                                                          |   |                          | 212,374    |   |              |   | 286,773 |   |
|                                                                                                                                                      |   |                          |       |   |              |   |   |   |
| Total assets                                                                                                                                              |   | $                             | 212,374    |   |              | $      | 286,913 |   |
|                                                                                                                                                      |   |                          |       |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                     |   |                          |       |   |              |   |   |   |
| Current liabilities:                                                                                                                                      |   |                          |       |   |              |   |   |   |
| Accounts payable                                                                                                                                          |   | $                             | 48,238     |   |              | $      | 48,238 |   |
| Accrued expenses                                                                                                                                          |   |                          | 586,499    |   |              |   | 562,836 |   |
| Due to affiliate                                                                                                                                          |   |                          | 29,224     |   |              |   | 29,224 |   |
|                                                                                                                                                      |   |                          |       |   |              |   |   |   |
| Total current liabilities                                                                                                                                 |   |                          | 663,961    |   |              |   | 640,298 |   |
|                                                                                                                                                      |   |                          |       |   |              |   |   |   |
| Majority interest in consolidated subsidiary                                                                                                              |   |                          | 230,058    |   |              |   | 230,058 |   |
|                                                                                                                                                      |   |                          |       |   |              |   |   |   |
| Total liabilities                                                                                                                                         |   |                          | 894,019    |   |              |   | 870,356 |   |
|                                                                                                                                                      |   |                          |       |   |              |   |   |   |
| Stockholders’ deficit:                                                                                                                              |   |                          |       |   |              |   |   |   |
| Preferred Stock, $0.001 par value; 5,000,000 shares authorized 2,135,000 shares issued in 2010                                                            |   |                          | 2,135      |   |              |   | -- |   |
| Common stock, $0.001 par value; 95,000,000 shares authorized, 95,000,000 shares issued, and 95,000,000 shares outstanding in 2010 and 74,443,284 in 2009. |   |                          | 95,000     |   |              |   | 74,443 |   |
| Additional paid-in capital                                                                                                                                |   |                          | 4,542,052  |   |              |   | 4,112,274 |   |
| Accumulated deficit                                                                                                                                       |   |                          | (5,320,832 | )      |              |   | (4,770,160 | ) |
|                                                                                                                                                      |   |                          |       |   |              |   |   |   |
| Total stockholders’ deficit                                                                                                                         |   |                          | (681,645   | )      |              |   | (583,443 | ) |
|                                                                                                                                                      |   |                          |       |   |              |   |   |   |
| Total liabilities and stockholders’ deficit                                                                                                         |   | $                             | 212,374    |   |              | $      | 286,913 |   |

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|                                                         |   | Three Months Ended |       |   | Nine Months Ended |   |
|--------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                         |   | Sept 30, 2010      |       |   | Sept 30, 2009     |   |   | Sept 30, 2010 |   |   | Sept 30, 2009 |   |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |
| Revenues:                                                    |   | $                  | --         |   |              | $      | -- |   |   | $ | -- |   |   | $ | -- |   |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Costs of revenues:                                           |   |               | --         |   |              |   | -- |   |   |   | -- |   |   |   | 90,315 |   |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Gross loss                                                   |   |               | --         |   |              |   | -- |   |   |   | -- |   |   |   | (90,315 | ) |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                          |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Marketing, general and administrative                        |   |               | 223,500    |   |              |   | 746,281 |   |   |   | 476,273 |   |   |   | 1,052,548 |   |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total operating expenses                                     |   |               | 223,500    |   |              |   | 746,281 |   |   |   | 476,273 |   |   |   | 1,052,548 |   |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                         |   |               | (223,500   | )      |              |   | (746,281 | ) |   |   | (476,273 | ) |   |   | (1,142,863 | ) |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Miscellaneous or other income                                |   |               | --         |   |              |   | 14,399 |   |   |   | -- |   |   |   | 11,474 |   |
| Interest expense                                             |   |               | --         |   |              |   | (1,621 | ) |   |   | -- |   |   |   | (15,142 | ) |
| Equity in income (losses) of  Positron Corporation |   |               | 1,556      |   |              |   | (20,931 | ) |   |   | (74,399 | ) |   |   | (58,450 | ) |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total other income (expense)                                 |   |               | 1,556      |   |              |   | (8,153 | ) |   |   | (74,399 | ) |   |   | (62,118 | ) |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Loss before income taxes                                     |   |               | (221,944   | )      |              |   | (754,434 | ) |   |   | (550,672 | ) |   |   | (1,204,981 | ) |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                                 |   |               | --         |   |              |   | -- |   |   |   | -- |   |   |   | -- |   |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                     |   | $                  | (221,944   | )      |              | $      | (754,434 | ) |   | $ | (550,672 | ) |   | $ | (1,204,981 | ) |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Loss Per Share:                                              |   | $                  | (0.0023    | )      |              | $      | (0.0101 | ) |   | $ | ( 0.0058 | ) |   | $ | ( 0.0163 | ) |
|                                                         |   |               |       |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average common shares:                              |   |               | 95,000,000 |   |              |   | 74,443,284 |   |   |   | 95,000,000 |   |   |   | 74,017,570 |   |

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|                                                                      |   | 2010   |     |   | 2009   |   |
|---------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                                                      |   |   |     |   |   |   |
| Cash flows from operating activities:                                     |   |   |     |   |   |   |
| Net loss                                                                  |   | $      | (550,672 | )      |   | $      | (1,204,981 | ) |
| Adjustment to reconcile net loss to net cash used in operating activities |   |   |     |   |   |   |   |   |
| Depreciation expense                                                      |   |   | --       |   |   |   | 245 |   |
| Loss on disposal of assets                                                |   |   | --       |   |   |   | 2,925 |   |
| Common stock issued for services                                          |   |   | 238,970  |   |   |   | 839,000 |   |
| Equity in losses of Positron Corporation                                  |   |   | 74,399   |   |   |   | 58,450 |   |
| Changes in operating assets and liabilities:                              |   |   |     |   |   |   |   |   |
| Accounts payable and accrued liabilities                                  |   |   | 23,663   |   |   |   | 278,192 |   |
|                                                                      |   |   |     |   |   |   |   |   |
| Net cash used in operating activities                                     |   |   | (213,640 | )      |   |   | (26,169 | ) |
|                                                                      |   |   |     |   |   |   |   |   |
|                                                                      |   |   |     |   |   |   |   |   |
| Cash flows from financing activities:                                     |   |   |     |   |   |   |   |   |
| Preferred Share Subscriptions                                             |   |   | 213,500  |   |   |   | - |   |
| Advance from affiliate                                                    |   |   | -        |   |   |   | 25,364 |   |
|                                                                      |   |   |     |   |   |   |   |   |
| Net cash provided by financing activities                                 |   |   | 213,500  |   |   |   | 25,364 |   |
|                                                                      |   |   |     |   |   |   |   |   |
| Net decrease in cash                                                      |   |   | (140     | )      |   |   | (805 | ) |
|                                                                      |   |   |     |   |   |   |   |   |
| Cash at beginning of period                                               |   |   | 140      |   |   |   | 942 |   |
|                                                                      |   |   |     |   |   |   |   |   |
| Cash at end of period                                                     |   | $      | --       |   |   | $      | 137 |   |
|                                                                      |   |   |     |   |   |   |   |   |
| Supplemental cash flow information:                                       |   |   |     |   |   |   |   |   |
| Interest paid                                                             |   | $      | --       |   |   | $      | -- |   |
| Income taxes paid                                                         |   |   | --       |   |   |   | -- |   |

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|                                |   | Nine Months Ended Sept 30, 2010 |        |   | Nine Months Ended Sept 30, 2009 |   |
|-------------------------------------|--------|-------------------------------------------|-------------|--------|-------------------------------------------|--------|
| Revenues                            |   | $                                         | 2,414,000   |   |                                      | $      | 889,000 |   |
| Loss from operations                |   |                                      | (12,880,000 | )      |                                      |   | (2,568,000 | ) |
| Net loss                            |   |                                      | (9,364,000  | )      |                                      |   | (2,864,000 | ) |
| Loss per share                      |   | $                                         | (0.016      | )      |                                      | $      | (0.014 | ) |
| Weighted average shares outstanding |   |                                      | 582,766,000 |   |                                      |   | 198,935,000 |   |

|                        |   | Sept 30, 2010 |         |
|-----------------------------|--------|---------------|--------------|
| Current assets              |   | $             | 3,782,000    |   |
| Total assets                |   |          | 4,151,000    |   |
| Current liabilities         |   |          | 3,040,000    |   |
| Total liabilities           |   |          | 5,056,000    |   |
| Stockholders’ deficit |   |          | (100,693,000 | ) |
| Common shares outstanding   |   |          | 778,852,547  |   |

| Convertible Series A Preferred Stock |   |   | 457,000       |   |
|--------------------------------------|--------|--------|---------------|--------|
| Convertible Series B Preferred Stock |   |   | 608,859,000   |   |
| Convertible Series G Preferred Stock |   |   | 2,920,000     |   |
| Convertible Series S Preferred Stock |   |   | 1,000,000,000 |   |
| Stock Warrants                       |   |   | 238,563,000   |   |
| Stock Options                        |   |   | 276,450,000   |   |
|                                 |   |   | 2,127,249,000 |   |

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|   | · | Establishing a formal review process of significant accounting transactions that includes participation of the Chief Executive Officer, the Chief Financial Officer and the Company’s corporate legal counsel. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Form an Audit Committee that will establish policies and procedures that will provide the Board of Directors a formal review process that will among other things, assure that management controls and procedures are in place and being maintained consistently. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Exhibit |   | Description of the Exhibit                                                                                                                                 |
|---------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |   |                                                                                                                                                       |
| 31.1    |   | Chief Executive Officer  Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                   |
| 31.2    |   | Chief Financial Officer Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                              |
| 32.1    |   | Chief Executive Officer  Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.2    |   | Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.            |

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|                                                 | IMAGIN MOLECULAR CORPORATION               |
|------------------------------------------------------|--------------------------------------------|
|                                                 |                                       |
| Date:     November 22, 2010 | /s/ Patrick J. Rooney                      |
|                                                 | Patrick J. Rooney, Chief Executive Officer |
|                                                 | (Principal Executive Officer)              |
|                                                 |                                       |
| Date:     November 22, 2010 | /s/ Gregory Pappas                         |
|                                                 | Gregory Pappas, Chief Financial Officer    |
|                                                 | (Principal Accounting Officer)             |

|  Exhibit |   |                                                                                                                                                       |
|---------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------|
|          |   |                                                                                                                                                       |
| 31.1          |   | Chief Executive Officer  Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                   |
|          |   |                                                                                                                                                       |
| 31.2          |   | Chief Financial Officer Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                              |
|          |   |                                                                                                                                                       |
| 32.1          |   | Chief Executive Officer  Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|          |   |                                                                                                                                                       |
| 32.2          |   | Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.            |

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