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                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    ---------

                                    FORM 10-Q

                                    ---------

(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
     ACT OF 1934

               For the nine month period ended September 30, 2008

                                       OR

[_]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
     EXCHANGE ACT OF 1934

           For the transition period from_____________to_____________

                        Commission File Number: 000-17788

                              NEXGEN BIOFUELS LTD.
            (EXACT NAME OF REGISTRANTS AS SPECIFIED IN ITS CHARTERS)

               ISRAEL                                             N/A
  (STATE OR OTHER JURISDICTION OF                           (I.R.S. EMPLOYER
   INCORPORATION OR ORGANIZATION)                          IDENTIFICATION NO.)

   2533 WINDGUARD CIRCLE, SUITE 102                              33544
        WESLEY CHAPEL, FLORIDA                                 (ZIP CODE)
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICE)

                                 (813) 929-4802
              (REGISTRANTS' TELEPHONE NUMBER, INCLUDING AREA CODE)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                               Yes [X]    No [_]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer' and "smaller
reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

                Large accelerated filer [_]            Accelerated filer [_]

                 Non-accelerated filer [_]         Smaller reporting company [X]

     Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act).

                               Yes [_]    No [X]

     Indicate the number of shares outstanding of each class of Ordinary Shares,
as of the latest practicable date

               CLASS                        OUTSTANDING AS OF NOVEMBER 13, 2008
-----------------------------------         -----------------------------------
Ordinary Shares, NIS 0.04 Par Value                  42,730,998 Shares

                              NEXGEN BIOFUELS LTD.
                                    FORM 10-Q

                                QUARTERLY REPORT

                                TABLE OF CONTENTS

          PART I

Item 1.   Financial Statements
          Consolidated Balance Sheets - September 30, 2008 (unaudited) and December 31, 2007 (audited)           3
          Consolidated Statements of Operations - Nine-month and Three-month periods ended September 30,
          2008(unaudited) and 2007 (audited), and for the year ended December 31 2007 (audited) and from
          August 10, 2006 (inception) to September 30, 2008 (unaudited)                                          5
          Consolidated Statements of Cash Flows - Nine-month periods ended September 30, 2008 (unaudited)
          and 2007 (audited) and for the year ended December 31, 2007 (audited) and from August 10, 2006
          (inception) to September 30, 2008 (unaudited)                                                          6
          Notes to Unaudited Consolidated Financial Statements                                                   7

Item 2.   Management's Discussion and Analysis of Financial Condition and Results of Operations                  12

Item 3.   Controls and Procedures                                                                                14

          PART II

Item 1.   Legal Proceedings                                                                                      15

Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds                                            15

Item 3.   Default Upon Senior Securities                                                                         15

Item 4.   Submission of Matters to a Vote of Security Holders                                                    15

Item 5.   Other Information                                                                                      15

Item 6.   Exhibits                                                                                               15

                                       2

NEXGEN BIOFUELS LTD. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEETS
--------------------------------------------------------------------------------
U.S. DOLLARS IN THOUSANDS

                                                    SEPTEMBER 30, DECEMBER 31,
                                                      -------      -------
                                                        2008         2007
                                                      -------      -------
                                                     UNAUDITED     AUDITED
                                                      -------      -------

ASSETS

CURRENT ASSETS:
  Cash and cash equivalents                                 9            1
  Gamida For Life B.V.                                      -          397
  Other accounts receivable and prepaid expenses           24            5
                                                      -------      -------

Total current assets                                       33          403
                                                      -------      -------

LONG-TERM INVESTMENTS:
  Investments in land purchase options                    123          166
                                                      -------      -------

PROPERTY AND EQUIPMENT, NET                                 5            5
                                                      -------      -------

Total assets                                              161          574
                                                      =======      =======

The accompanying notes are an integral part of the consolidated financial
statements.

                                       3

NEXGEN BIOFUELS LTD. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEETS
--------------------------------------------------------------------------------
U.S. DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA

                                                                                        SEPTEMBER 30,    DECEMBER 31,
                                                                                           2008             2007
                                                                                          -------         -------
                                                                                         UNAUDITED        AUDITED
                                                                                          -------         -------
    LIABILITIES AND SHAREHOLDERS' DEFICIENCY

CURRENT LIABILITIES:
  Short-term bank credit                                                                        -              39
  Loan from Gamidor Diagnostics                                                                 -             230
  Trade payables                                                                              186             319
  Employees and payroll accruals                                                                5              62
                                                                                          -------         -------

Total current liabilities                                                                     191             650
                                                                                          -------         -------

LONG-TERM LIABILITIES:

  Line of Credit from related parties                                                         721               -
                                                                                          -------         -------

SHAREHOLDERS' DEFICIENCY
  Share capital -
   Ordinary shares of NIS 0.04 par value - Authorized: 190,000,000 shares as of
    September 30, 2008 and December 31, 2007; Issued and Outstanding: 42,730,998
     and  41,759,498 shares as of September 30, 2008 and December 31, 2007,
     respectively                                                                             445             434
  Additional paid-in capital                                                                2,620           1,615
  Deficit accumulated during the development stage                                         (3,816)         (2,125)
                                                                                          -------         -------

Total shareholders' deficiency                                                               (751)            (76)
                                                                                          -------         -------

Total liabilities and shareholders' deficiency                                                161             574
                                                                                          =======         =======

The accompanying notes are an integral part of the consolidated financial
statements.

                                       4

NEXGEN BIOFUELS LTD. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF OPERATIONS
--------------------------------------------------------------------------------
U.S. DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA

                                                  FOR THE THREE                        FOR THE NINE              FOR THE YEAR    AUGUST 10, 2006
                                                   MONTHS ENDED                        MONTHS ENDED                 ENDED      (DATE OF INCEPTION)
                                          SEPTEMBER 30,       SEPTEMBER 30,  SEPTEMBER 30,       SEPTEMBER 30,   DECEMBER 31,    TO SEPTEMBER 30,
                                              2008                2007           2008               2007            2007              2008
                                          -----------         -----------    -----------         -----------     -----------      -----------
                                          (UNAUDITED)          (AUDITED)     (UNAUDITED)          (AUDITED)       (AUDITED)       (UNAUDITED)

EXPENSES:
  Legal and professional                           60                 115            421                 469             547            1,173
  Salaries expense                                112                 134            383                 508             447            1,011
  Travel expense                                   20                  31            115                 148             208              388
  Loss from expiration of
     land purchase option and
   futures trading                                 42                  54             62                  54             129              191
  Compensation on shares issuance                  43                   -            577                   -               -              577
  Other expenses (income)                          14                 121            125                 238             235              398
                                          -----------         -----------    -----------         -----------     -----------      -----------

Net loss from operations                          291                 455          1,683               1,417           1,566            3,738

Interest expense                                    1                  (5)             8                  63              63               78
                                          -----------         -----------    -----------         -----------     -----------      -----------

NET LOSS                                          292                 450          1,691               1,480           1,629            3,816
                                          ===========         ===========    ===========         ===========     ===========      ===========
Basic and diluted net loss
per share                                        0.01                0.01           0.04                0.04            0.04             0.09
                                          ===========         ===========    ===========         ===========     ===========      ===========
 Weighted average number of
  shares used in computing
  basic and diluted loss per
  share attributed to Ordinary
  shareholders                             42,730,998          41,759,498     42,730,998          41,759,498      41,759,498       42,109,238
                                          ===========         ===========    ===========         ===========     ===========      ===========

The accompanying notes are an integral part of the consolidated financial
statements.

                                       5

NEXGEN BIOFUELS LTD. AND SUBSIDIARIES
 (A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
--------------------------------------------------------------------------------
U.S. DOLLARS IN THOUSANDS

                                                                                               AUGUST 10, 2006
                                                       FOR THE NINE                               (DATE OF
                                                        MONTHS ENDE               YEAR ENDED    INCEPTION) TO
                                                   ------------------------        --------        --------
                                                  SEPTEMBER 30,   SEPTEMBER 30,   DECEMBER 31,   SEPTEMBER 30,
                                                     2008            2007            2007            2008
                                                   --------        --------        --------        --------
                                                  UNAUDITED         AUDITED         AUDITED        UNAUDITED
                                                   --------        --------        --------        --------

OPERATING ACTIVITIES
 Net loss                                            (1,691)         (1,480)         (1,629)         (3,816)
 Adjustments to reconcile net loss to net
   cash used in operating activities:
 Depreciation expense                                     -               1               1               1
 Compensation related to share and option
   issuance to employees                                577               -             (63)            533
 Expiration of land purchase option and
   futures trading                                       62              54              54             116
 Issuance of shares                                       -              95             187             187
 Increase in other receivables                          (19)              -               -             (19)
 Increase (decrease) in trade payables                 (133)             46             255             290
 Increase (decrease) in employees and
   payroll accruals                                     (36)              -             350             472
                                                   --------        --------        --------        --------

 Net cash used in operating activities               (1,240)         (1,284)           (845)         (2,236)
                                                   --------        --------        --------        --------

INVESTING ACTIVITIES
 Purchase of computer equipment                           -              (1)             (1)             (4)
 Cash used in connection with acquisition                 -               -            (280)           (280)
 Repayment of Gamida For Life B.V. debt                   -               -               -             397
 Repayment of loan to Gamidor Diagnostics              (230)              -               -            (230)
 Deposit paid on steel building                           -             (75)              -               -
 Investments in land purchase options and
   futures trading                                      (19)            (40)            (70)           (192)
                                                   --------        --------        --------        --------

 Net cash provided by (used in) investing
   activities                                           148            (116)           (351)           (309)
                                                   --------        --------        --------        --------

FINANCING ACTIVITIES
 Net proceeds from line of credit from
   related party                                        700           1,373           1,216           2,221
 Repayment of short term bank credit                      -               -               -             (39)
 Purchase of treasury shares                              -               -             (68)            (68)
 Proceeds from issuance of shares                       439               -               -             440
                                                   --------        --------        --------        --------

 Net cash provided by financing activities            1,100           1,373           1,148           2,554
                                                   --------        --------        --------        --------

 NET INCREASE (DECREASE) IN CASH                          8             (27)            (48)              9
 CASH AT BEGINNING OF PERIOD                              1              49              49               -
                                                   --------        --------        --------        --------

 CASH AT END OF PERIOD                                    9              22               1               9
                                                   ========        ========        ========        ========

The accompanying notes are an integral part of the consolidated financial
statements.

                                       6

NEXGEN BIOFUELS LTD. AND SUBSIDIARIES
 (A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. DOLLARS

NOTE 1:- ORGANIZATION AND BASIS OF PRESENTATION

     a.   NexGen Biofuels Ltd. (formally: Healthcare Technologies Ltd.) and its
          subsidiaries (the "Company" or "NexGen"), is a development stage
          company that is currently seeking to develop and/or acquire blending
          terminal facilities and, ethanol and bio-diesel plants in the United
          States.

          NexGen Biofuels Ltd. was established as an Israeli corporation. Prior
          to the closing of the Purchase Agreement on December 31, 2007, the
          Company's business was in the field of diagnostic and biotech. In
          accordance with the Purchase Agreement, dated as of January 16, 2007,
          as amended (the "Purchase Agreement"), and consummated on December 31,
          2007, by and among, the Company, NexGen Biofuels, Inc., ("NexGen
          Bio"), MAC Bioventures Inc., ("MAC"), the parent company of NexGen
          Bio, and Gamida for Life B.V., ("Gamida"), the parent company of
          NexGen, the Company completed a Plan of Arrangement (the "Plan") as
          following:

          1.   The Company transferred substantially all of its existing assets
               and liabilities to Gamida, in consideration for 4,700,000 shares
               of the Company held by Gamida.

          2.   NexGen Bio transferred its principal assets (the "NexGen Assets")
               in the ethanol and biodiesel fuel industry consisting of options
               to purchase five Greenfield sites in the United States and
               permitting for 100 million gallons of annual ethanol or
               bio-diesel production capacity per site to NexGen 2007, Inc
               ("NewCo"), a wholly-owned subsidiary of the Company;

          3.   The Company issued to MAC and MAC's designees an aggregate of
               38,280,000 ordinary shares, representing the $58 million
               appraised value of the NexGen Assets divided by $1.50 (the agreed
               upon value of NexGen share) less 1%; In addition, the Company
               issued 386,666 ordinary shares to one of its directors.

          The Plan was subject to shareholders approval which was granted on
          December 4, 2007.

          Prior to the Plan, the Company had no substantial operations as it
          transferred all of its existing assets to Gamida. Therefore, the
          financial statements and accompanying notes represent the historical
          results of NexGen Bio, unless otherwise stated.

          On January 28, 2008, the Company changed its name from Healthcare
          Technologies Ltd. to NexGen Biofuels Ltd.

                                       7

NEXGEN BIOFUELS LTD. AND SUBSIDIARIES
 (A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. DOLLARS

NOTE 1:- ORGANIZATION AND BASIS OF PRESENTATION (CONT.)

     b.   Development Stage Enterprise

          The Company has been in the development stage since its formation on
          August 10, 2006. It has primarily been engaged in the development of
          blending terminals and ethanol/biodiesel plants while raising capital
          to carry out its business plan. The Company expects to continue to
          incur significant operating losses and to generate negative cash flow
          from operating activities while it develops projects, its customer
          base and establishes itself in the marketplace. The Company's ability
          to eliminate operating losses and to generate positive cash flow from
          operations in the future will depend upon a variety of factors, many
          of which the Company may be unable to control. If the Company is
          unable to implement its business plan successfully, it may not be able
          to eliminate operating losses, generate positive cash flow, or achieve
          or sustain profitability, which would materially adversely affect its
          business, operations, and financial results, as well as its ability to
          make payments on its debt obligations.

     c.   Going Concern

          The Company incurred a net loss of $ 3,816 thousand for the period
          August 10, 2006 (date of inception) through September 30, 2008. As of
          September 30, 2008 the Company had $ 158 thousand of negative working
          capital, $ 751 thousand shareholders deficiency and $ 9 thousand of
          cash. The Company depends upon capital to be derived from future
          financial activities, such as subsequent offerings of its Ordinary
          Shares, or debt financing in order to operate and grow the business.
          There can be no assurance that the Company will be successful in
          raising such capital. The key factors that are not within the
          Company's control and that have a direct bearing on operating results
          include, but are not limited to, acceptance of the Company's business
          plan, the ability to raise capital in the future, the ability to
          expand its customer base, and the ability to hire key employees to
          grow the business. There may be other risks and circumstances that
          management may be unable to predict. Although we have made substantial
          efforts to obtain capital funding, in the current global economy it is
          unlikely that such financing will be available to us in the near term.
          We intend to reevaluate the conditions in the credit and financial
          markets and the availability of capital during the first quarter of
          2009, but if we continue to be unable to obtain additional financing,
          we will have to consider various alternatives concerning the future of
          the Company, including, among others, a change in our business plan,
          the possibility of terminating the Company's public reporting status
          and/or seeking a buyer for the Company's business.

          These conditions raise substantial doubt about the Company's ability
          to continue as a going concern. The accompanying consolidated
          financial statements do not include any adjustments relating to
          recoverability of assets and classification of liabilities that might
          be necessary should the Company be unable to continue as a going
          concern.

                                       8

NEXGEN BIOFUELS LTD. AND SUBSIDIARIES
 (A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. DOLLARS

NOTE 1:- ORGANIZATION AND BASIS OF PRESENTATION (CONT.)

     d.   Basis of Presentation-Interim Financial Statements

          The accompanying unaudited consolidated financial statements and
          related notes have been prepared in accordance with accounting
          principles generally accepted in the United States of America for
          interim financial information and the instructions to Form 10-Q and
          Rule 10-01 of Regulation S-X. Accordingly, they do not include all of
          the information and footnotes required by generally accepted
          accounting principles for complete financial statements.

          Results for interim periods should not be considered indicative of
          results for a full year. These interim consolidated financial
          statements should be read in conjunction with the consolidated
          financial statements and related notes contained in the Company's
          Annual Report on Form 10-K for the year ended December 31, 2007.
          Except as disclosed in Note 1e below, the accounting policies used in
          preparing these consolidated financial statements are the same as
          those described in Note 1e to the consolidated financial statements in
          the Company's Annual Report on Form 10-K for the year ended December
          31, 2007.

          In the opinion of management, all adjustments (consisting of normal
          recurring adjustments) considered necessary for a fair statement of
          the results for interim periods have been included. All significant
          intercompany accounts and transactions have been eliminated in
          consolidation.

          The preparation of financial statements in conformity with generally
          accepted accounting principles requires management to make estimates
          and assumptions that affect the amounts reported in the financial
          statements and accompanying notes. Actual results could differ from
          those estimates.

                                       9

NEXGEN BIOFUELS LTD. AND SUBSIDIARIES
 (A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. DOLLARS

NOTE 1:- ORGANIZATION AND BASIS OF PRESENTATION (CONT.)

     e.   Impact of recently issued accounting standards:

          SFAS 157 - FAIR VALUE MEASUREMENT

          In September 2006, the FASB issued SFAS No. 157, "Fair Value
          Measurements ("FAS 157"). This standard defines fair value,
          establishes a framework and gives guidance regarding the methods used
          for measuring fair value, and expands disclosures about fair value
          measurements. This standard is effective for financial statements
          issued for fiscal years beginning after November 15, 2007. In February
          2008, the FASB released a FASB Staff Position (FSP FAS 157-2-
          Effective Date of FASB Statement No. 157) which delays the effective
          date of SFAS No. 157 for all non-financial assets and non-financial
          liabilities, except those that are recognized or disclosed at fair
          value in the financial statements on a recurring basis (at least
          annually) to fiscal years beginning after November 15, 2008. The
          partial adoption of SFAS No. 157 on January 1, 2008, for financial
          assets and liabilities did not have a material impact on the Company's
          consolidated financial position or results of operations.

          SFAS 159- THE FAIR VALUE OPTION FOR FINANCIAL ASSETS AND LIABILITIES.

          In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option
          for Financial Assets and Financial Liabilities - Including an
          amendment of FASB Statement No. 115," which provides a fair value
          option election that permits entities to irrevocably elect to measure
          certain financial assets and liabilities (exceptions are specifically
          identified in the Statement) at fair value as the initial and
          subsequent measurement attribute, with changes in fair value
          recognized in earnings as they occur. SFAS No. 159 permits the fair
          value option election on an instrument-by-instrument basis at initial
          recognition of an asset or liability or upon an event that gives rise
          to a new basis of accounting for that instrument. The adoption of SFAS
          No. 159 on January 1, 2008, for financial assets and liabilities did
          not have a material impact on the Company's consolidated financial
          position or results of operations.

                                       10

NEXGEN BIOFUELS LTD. AND SUBSIDIARIES
 (A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. DOLLARS

NOTE 1:- ORGANIZATION AND BASIS OF PRESENTATION (CONT.)

          FASB STAFF POSITION ("FSP") ACCOUNTING PRINCIPLES BOARD ("APB") 14-1,
          ACCOUNTING FOR CONVERTIBLE DEBT INSTRUMENTS THAT MAY BE SETTLED IN
          CASH UPON CONVERSION (INCLUDING PARTIAL CASH SETTLEMENT):

          In May 2008, the FASB issued FASB Staff Position ("FSP") Accounting
          Principles Board ("APB") 14-1, "Accounting for Convertible Debt
          Instruments That May Be Settled in Cash upon Conversion (Including
          Partial Cash Settlement)." FSP APB 14-1 applies to convertible debt
          instruments that, by their stated terms, may be settled in cash (or
          other assets) upon conversion, including partial cash settlement of
          the conversion option. FSP APB 14-1 requires bifurcation of the
          instrument into a debt component that is initially recorded at fair
          value and an equity component. The difference between the fair value
          of the debt component and the initial proceeds from issuance of the
          instrument is recorded as a component of equity. The liability
          component of the debt instrument is accreted to par using the
          effective yield method; accretion is reported as a component of
          interest expense. The equity component is not subsequently re-valued
          as long as it continues to qualify for equity treatment. FSP APB 14-1
          must be applied retrospectively to previously issued cash-settleable
          convertible instruments as well as prospectively to newly issued
          instruments. FSP APB 14-1 is effective for fiscal years beginning
          after December 15, 2008, and interim periods within those fiscal
          years. We are currently evaluating the impact of FSP APB 14-1 to our
          consolidated financial statements.

          In March 2008, the FASB issued SFAS No. 161 "Disclosures about
          Derivative Instruments and Hedging Activities" ("SFAS No. 161"), which
          will require increased disclosures about an entity's strategies and
          objectives for using derivative instruments; the location and amounts
          of derivative instruments in an entity's financial statements; how
          derivative instruments and related hedged items are accounted for
          under SFAS No. 133, and how derivative instruments and related hedged
          items affect its financial position, financial performance, and cash
          flows. Certain disclosures will also be required with respect to
          derivative features that are credit risk-related. SFAS No. 161 is
          effective for the Company beginning on January 1, 2009 on a
          prospective basis. The Company does not expect this standard to have a
          material impact on the Company's consolidated results of operations or
          financial condition.

          In December 2007, the U.S. Securities and Exchange Commission ("SEC")
          issued Staff Accounting Bulletin 110 ("SAB 110") to amend the SEC's
          views discussed in Staff Accounting Bulletin 107 ("SAB 107") regarding
          the use of simplified method in developing an estimate of expected
          life of share options in accordance with SFAS No. 123(R). SAB 110 is
          effective for the Company beginning in the first quarter of fiscal
          year 2008. The Company expects to continue using the simplified
          method. As a result the Company does not expect the adoption of SAB
          110 will have a significant impact on its consolidated Financial
          Statements.

                                       11

NEXGEN BIOFUELS LTD. AND SUBSIDIARIES
 (A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
U.S. DOLLARS

NOTE 2:- SHARE CAPITAL

     a.   On January 9, 2008, the Company sold 150,000 ordinary shares for an
          aggregate purchase price of $225,000 to an accredited investor in a
          private placement transaction. In addition, the Company issued 15,000
          shares as a 10% commission to the broker responsible for that
          transaction.

     b.   During the first nine months of 2008, NexGen issued 465,000 shares of
          common stock to employees. The Company has accounted for this award in
          accordance with FAS123(R). The total grant date fair value was $ 418
          thousand, reflecting the quoted market price of the Company's Ordinary
          shares as of the date of grant over the purchase price of $ 0 as
          compensation expense.

          In addition, the Company granted on January 9, 2008, one of its
          executives 650,000 options to purchase Ordinary shares of the Company
          under the ISO Plan (defined below). The Options have the following
          terms, among others: (i) a term of 5 years, subject to earlier
          expiration; (ii) an exercise price of $1.50 per share, and (iii)
          vesting and exercise rights in five annually equal installments of
          130,000 shares each. The Company has accounted for this award in
          accordance with FAS123(R). The fair value of each option award is
          estimated on the date of grant using a Black-Scholes option pricing
          model. In June 2008, effective as of June 1 2008, the employment
          agreement with the executive was terminated by mutual agreement. The
          total grant fair value recorded was $ 28 thousand.

     c.   According to the Purchase Agreement, the Company granted to Israel
          Amir 386,666 Ordinary Shares for his willingness to commit to serve as
          a director of the Company for a period of no less than two years after
          the Closing. The Company has accounted for this award in accordance
          with FAS123(R). The total grant date fair value was $ 352 thousand,
          reflecting the quoted market price of the Company's Ordinary shares as
          of the date of grant over the purchase price of $ 0 as compensation
          expense, ratably over the release two years period of the restricted
          shares.

NOTE 3:- INVESTEMENTS IN LAND PURCHASE OPTIONS

     Due to the depressed state of the ethanol/biodiesel industry, coupled with
     lack of Greenfield project financing for ethanol/biodiesel projects, the
     Company will not extend the following land options. When the market
     conditions improve, the Company will either, renew these options, replace
     them with fully permitted sites, or acquire operating facilities, as market
     and financing opportunities permit. Nevertheless:

     On January 7 2008, the Company paid $7.5 thousand to extend the option to
     purchase land in Ottawa County, Ohio until July 12, 2008. This option has
     expired and was written off.

     In January 2008, the Company extended its option to purchase land in
     Reedsburg Wisconsin to April 15, 2008. This option was extended again
     during April 2008 until July 15, 2008. This option was further extended
     until November 2008.

     In addition, In April 2008, the Company extended the option to purchase
     land in Shelby County, Indiana, to January 20, 2009.

                                       12

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

FORWARD LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (the "Report") of NexGen Biofuels Ltd., an
Israeli corporation (formerly known as Healthcare Technologies Ltd.) (the
"Company," "NexGen," "we," "us" and "our"), contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. This Report
includes statements regarding our plans, goals, strategies, intent, beliefs or
current expectations. These statements are expressed in good faith and based
upon a reasonable basis when made, but there can be no assurance that these
expectations will be achieved or accomplished. These forward looking statements
can be identified by the use of terms and phrases such as "believe," "plan,"
"intend," "anticipate," "target," "estimate," "expect," and the like, and/or
future-tense or conditional constructions ("will," "may," "could," "should,"
etc.). Items contemplating or making assumptions about, actual or potential
future sales, market size, collaborations, and trends or operating results also
constitute such forward-looking statements.

Although forward-looking statements in this report reflect the good faith
judgment of management, forward-looking statements are inherently subject to
known and unknown risks, business, economic and other risks and uncertainties
that may cause actual results to be materially different from those discussed in
these forward-looking statements. Readers are urged not to place undue reliance
on these forward-looking statements, which speak only as of the date of this
report. We assume no obligation to update any forward-looking statements in
order to reflect any event or circumstance that may arise after the date of this
report, other than as may be required by applicable law or regulation. Readers
are urged to carefully review and consider the various disclosures made by us in
our reports filed with the Securities and Exchange Commission ("SEC") which
attempt to advise interested parties of the risks and factors that may affect
our business, financial condition, results of operation and cash flows,
including the in the field of ethanol and bio-diesel fuel production under "Risk
Factors" in Item 1A of our Annual Report on Form 10K for the fiscal year ended
December 31, 2007. If one or more of these risks or uncertainties materialize,
or if the underlying assumptions prove incorrect, our actual results may vary
materially from those expected or projected.

OVERVIEW

NexGen is currently in the process of raising capital to develop, construct,
and/or acquire, own, and operate blending terminal facilities in the United
States.

NexGen is pursuing a vertically integrated strategy involving the blending of
ethanol and biodiesel through developing/acquiring of blending terminal and
production facilities. The Company plans to build the blending terminal
following the receipt of phase-I financing.

In order to be responsive to changing market conditions in the ethanol and
bio-diesel industries, and in the capital markets, we intend to postpone our
plans to construct and/or acquire ethanol and bio-diesel plants in favor of
developing a blending terminal first. Two non binding letters of intent
("LOI's") for purchase of majority interests in two separate ethanol production
facilities expired during May 2008 and have not been renewed. The Company
intends to renegotiate those LOI's and/or consider other opportunities to
acquire or construct operating plants as soon as market conditions improve to
the point that conditions become favorable for such developments.

In NexGen's view, controlling assets at both ends of the ethanol and biodiesel
value chains offer a highly effective means for buffering the operating and
financial impacts caused by ethanol and biodiesel price volatility resulting
from feedstock and production output supply/demand imbalances.

                                       13

GENERAL

In accordance with the Purchase Agreement, on December 31, 2007, the Company
completed the Plan pursuant to which the Company transferred substantially all
of its existing business and assets in the field of biotechnology and medical
devices to Gamida For Life B.V. and acquired NexGen Bio's principal assets in
the field of ethanol and bio-diesel fuel production.

The Plan was treated as a reverse merger of the Company for financial accounting
purposes. Accordingly, the historical financial statements of the Company before
the Plan will be replaced with the historical financial statements of NexGen Bio
before the Plan in all future filings that the Company makes with the SEC,
including this Report.

RESULTS OF OPERATIONS

COMPARISON OF THE THREE MONTH AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2008
AND 2007 (IN THOUSANDS)

NexGen is a development stage company which has operational cost related to our
efforts to plan, develop, construct and/or acquire biofuels business. These
costs include legal and professional costs, salaries, travel and other.

The Legal and professional cost amounted to $ 60 for the three month period
ended September 30, 2008 compared to $ 115 for the three months ended September
30, 2007. The Legal and professional cost amounted to $ 421 for the nine month
period ended September 30, 2008 compared to $ 469 for the nine months ended
September 30, 2007.

The salaries for the three month period ended September 30, 2008 amounted to $
112 compared to $ 134 for the three months ended September 30, 2007. The
salaries for the nine month period ended September 30, 2008 amounted to $ 383
compared to $ 508 for the nine months ended September 30, 2007.

The travel expenses for the three month period ended September 30, 2008 amounted
to $ 20 compared to $ 31 for the three months ended September 30, 2007. The
travel expenses for the nine month period ended September 30, 2008 amounted to $
115 compared to $ 148 for the nine months ended September 30, 2007. Travel costs
are for travel in the U.S. and out of the U.S. in connection with the land
purchase options, the Purchase Agreement during 2007 and, our efforts to raise
funds during 2008.

During the three month period ended September 30, 2008, we had $ 43 in
compensation expenses related to the issuance of shares and option shares to
employees and a director, as compared to $ 0 compensation expenses for the
comparable period of 2007. During the first nine month period ended September
30, 2008, we had $ 577 compensation expenses related to the issuance of shares
and option shares to employees and a director, as compared to $ 0 compensation
expenses for the comparable period of 2007.

Net loss for three month period ended September 30, 2008 amounted to $ 292 and $
450 for the three months ended September 30, 2007. Net loss for the nine month
period ended September 30, 2008 amounted to $ 1,691 and $ 1,480 for the nine
months ended September 30, 2007.

                                       14

LIQUIDITY AND CAPITAL RESOURCES (IN THOUSANDS)

The Company's working capital was a negative of $ 158 at September 30, 2008,
compared to a negative of $ 398 at September 30, 2007. Historically, our cash
needs have been satisfied primarily through proceeds from private placements of
our equity securities and related party advances. We expect to continue to be
required to raise capital in the future, but cannot guarantee that such
financing activities will be sufficient to fund our current and future projects
and our ability to meet our cash and working capital needs.

Net cash used in operating activities amounted to $ 1,240 for the nine month
period ended September 30, 2008 compared to $ 1,284 net cash used in operating
activities for the nine months ended September 30, 2007.

Cash provided by investing activities amounted to $ 148 for the nine month
period ended September 30, 2008 compared to $ 116 used in investing activities
in the nine months ended September 30, 2007.

Cash provided from financing activities amounted to $ 1,100 for the nine month
period ended September 30, 2008 compared to $ 1,373 for the nine months ended
September 30, 2007. Financing activities for both periods represent net cash
received from the Company's controlling shareholder for the development of
NexGen's business. Additionally, during the first quarter of fiscal 2008 we
raised approximately $225 through cash generated by the sale of stock via a
private offering.

We have an unsecured line of credit in the amount of $500 available through its
controlling shareholder. We believe these funds will be sufficient to fund our
current operations until we obtain the third-party financing to fund the first
phase of our business plan. However, additional funding may not be available
when required or it may not be available on favorable terms. Without adequate
funds, we may need to significantly reduce or refocus our plan of operations or
obtain funds through arrangements that may require us to relinquish rights to
certain or potential markets, either of which could have a material adverse
effect on our business, financial condition and results of operations. Failure
to secure additional financing in a timely manner and on favorable terms when
needed will have a material adverse effect on the Company's ability to continue
as a going concern, which contemplates the realization of assets and
satisfaction of liabilities in the normal course of business.

As of September 30, 2008, the Company was not subject to any off balance
agreements, other than the office lease agreement disclosed under Item 2
"Description of Property" in our Form 10K.

ITEM 3. CONTROLS AND PROCEDURES

     (a)  Disclosure Controls and Procedures

          The Company performed an evaluation of the effectiveness of its
          disclosure controls and procedures (as defined in RULES 13A-15(E) AND
          15D-15(E) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED) AS OF
          THE END OF THE PERIOD COVERED BY THIS REPORT. BASED ON THE COMPANY'S
          EVALUATION, THE COMPANY'S MANAGEMENT, INCLUDING THE CHIEF EXECUTIVE
          OFFICER, HAS CONCLUDED THAT THE COMPANY'S DISCLOSURE CONTROLS AND
          PROCEDURES AS OF THE END OF THE PERIOD COVERED BY THIS REPORT WERE
          EFFECTIVE.

     (b)  Change in Internal Control over Financial Reporting. No change in the
          Company's internal control over financial reporting occurred during
          the Company's most recent fiscal quarter that has materially affected,
          or is reasonably likely to materially affect the Company's internal
          control over financial reporting.

     (c)  Management believes that a controls system, no matter how well
          designed and operated, cannot provide absolute assurance that the
          objectives of the controls system are met, and no evaluation of
          controls can provide absolute assurance that all control issues and
          instances of fraud, if any, within a company have been detected.

                                       15

                           PART II - OTHER INFORMATION

ITEM 1 LEGAL PROCEEDINGS

N/A

ITEM 2 UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

     On January 9, 2008, the Company sold 150,000 ordinary shares for an
aggregate purchase price of $225,000 to an accredited investor in a private
placement transaction under Section 4(2) of the Securities Act.

ITEM 3 DEFAULTS UPON SENIOR SECURITIES

N/A

ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

N/A

ITEM 5 OTHER INFORMATION

On January 28, 2008, the Company changed its name from Healthcare Technologies
Ltd. to NexGen Biofuels Ltd.

As of March 2008,  our ordinary  shares are quoted in the OTC Bulletin Board  ("OTC-BB")  under the symbol
"NXGNF".  Prior to February 28, 2008,  our ordinary  shares were quoted on the NASDAQ Capital Market under
the symbol HCTL (through February 21, 2008) and thereafter under the symbol NXGN.

In accordance with an agreement dated as of June 17, 2008, effective as of June 1, 2008, the employment
of our Chief Financial Officer who was based in Israel was terminated by mutual agreement of the Company
and the executive.  The Company has begun a search in the United States for a replacement CFO.

ITEM 6 EXHIBITS

Exhibit Number, Name and/or Identification of Exhibit

                                       16

                                INDEX TO EXHIBITS

EXHIBIT               NCORP BY
NUMBERR               IEF. TO EXH.               DESCRIPTION
-----------           --------------------       -----------

(D)   EXHIBITS

 EXHIBIT NO.          INCORP. BY REFERENCE       DESCRIPTION
 -----------          --------------------       -----------

 3.1                         1.1(1)              Memorandum of Association of the Registrant, as amended

 3.2                         1.2(2)              Articles of Association, restated to include all amendments in
                                                 effect as of December 31, 2006

 3.3                         1.3(3)              Amendment to Articles of Association

 10.1                        4.34(2)             Purchase Agreement between Healthcare  Technologies Ltd., Gamida For
                                                 Life B.V., MAC Bioventures Inc. and NexGen Biofuels Inc.

 10.2                        4.35(3)             Amendment No. 1 to Purchase Agreement.

 14                           11(2)              Code of Ethics

 21                            (4)               List of Subsidiaries

 31.1                           *                Certification of  Chief Executive Officer required by Rule
                                                 13a-14(a) under the Exchange Act

 32.1                           *                Certification of Chief Executive Officer pursuant to 18 U.S.C.
                                                 Section 1350, as adopted pursuant to Section 906 of Sarbanes-Oxley
                                                 Act of 2002

 99.1                        4.33(5)             Audit Committee Charter

 99.2                        4.36(6)             AAA Valuation dated May 4, 2007 and letter dated July 13, 2007.

 99.3                        4.37(6)             Valuation from David Boas Business Consultant Ltd., dated January
                                                 20, 2007.

--------------------

* Filed herewith.

                    (1)  Incorporated by reference to the Registrant's Annual
                         Report on Form 20-F for the Fiscal year ended December
                         31, 1997.

                    (2)  Incorporated by reference to the Registrant's Annual
                         Report on Form 20-F for the Fiscal year ended December
                         31, 2006.

                    (3)  Incorporated by reference to the Registrant's Current
                         Report on Form 8-K dated December 31, 2007.

                    (4)  Incorporated by reference to the Consolidated Financial
                         Statements that are filed as a part of this Form 10-K.

                    (5)  Incorporated by reference to the Registrant's Annual
                         Report on Form 20-F for the Fiscal year ended December
                         31, 2004.

                    (6)  Incorporated by reference to the Registrant's Proxy
                         Statement filed as an exhibit to the Registrant's Form
                         6-K dated August 2007, filed on August 16, 2007.

                                       17

                                    SIGNATURE

In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized:

                                     NEXGEN BIOFUELS LTD.

Dated: November 13, 2008
                                     By: /s/ J. Ram Ajjarapu
                                     -----------------------
                                     J. Ram Ajjarapu
                                     Chief Executive Officer

                                       18
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