----

----

| Delaware                                                       |   |                                    |
|----------------------------------------------------------------|--------|-----------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   |  (IRS Employer Identification No.) |

| Large accelerated filer                       |  ̈ | Accelerated filer         |  ̈ |
|-----------------------------------------------|--------|---------------------------|--------|
| Non-accelerated filer                         |  ̈ | Smaller reporting company | x      |
| (Do not check if a smaller reporting company) |   |                      |   |

----

----

----

|                                                                                    |   | December 31, |       |   | June 30,   |   |
|-----------------------------------------------------------------------------------------|--------|--------------|------------|--------|------------|--------|
|                                                                                    |   | 2010         |       |   | 2010       |   |
| Assets                                                                                  |   | (Restated)   |       |   | (Restated) |   |
| Current assets:                                                                         |   |         |       |   |       |   |
|       Cash and cash equivalents                           |   | $            | 31,168,661 |   |       | $      | 27,009,066 |   |
| Accounts receivable, net of allowance for doubtful accounts of $433,657                 |   |         |       |   |       |   |   |   |
|    and $421,079 at December 31, 2010 and June 30, 2010, respectively     |   |         | 9,395,224  |   |       |   | 8,185,240 |   |
| Inventory                                                                               |   |         | 5,470,575  |   |       |   | 3,588,824 |   |
| Advance payments                                                                        |   |         | 394,420    |   |       |   | 382,980 |   |
| Loans receivable                                                                        |   |         | -          |   |       |   | 294,600 |   |
| Other current assets                                                                    |   |         | 31,746     |   |       |   | 77,283 |   |
| Total current assets                                                                    |   |         | 46,460,626 |   |       |   | 39,537,993 |   |
|                                                                                    |   |         |       |   |       |   |   |   |
| Property and equipment, net                                                             |   |         | 22,668,370 |   |       |   | 14,968,822 |   |
|                                                                                    |   |         |       |   |       |   |   |   |
| Intangibles, net                                                                        |   |         | 15,348,771 |   |       |   | 15,232,286 |   |
|                                                                                    |   |         |       |   |       |   |   |   |
| Total assets                                                                            |   | $            | 84,477,767 |   |       | $      | 69,739,101 |   |
|                                                                                    |   |         |       |   |       |   |   |   |
| Liabilities                                                                             |   |         |       |   |       |   |   |   |
| Current liabilities:                                                                    |   |         |       |   |       |   |   |   |
| Accounts payable and accrued expenses                                                   |   | $            | 1,560,592  |   |       | $      | 1,715,781 |   |
| Accounts payable – construction related                                           |   |         | 5,195,829  |   |       |   | 2,248,849 |   |
| Short-term bank loans                                                                   |   |         | 1,517,000  |   |       |   | 1,473,000 |   |
| VAT taxes payable                                                                       |   |         | 704,657    |   |       |   | 658,312 |   |
| Income taxes payable                                                                    |   |         | 950,264    |   |       |   | 861,614 |   |
| Other taxes payable                                                                     |   |         | 146,587    |   |       |   | 19,564 |   |
| Dividends payable                                                                       |   |         | 53,501     |   |       |   | 72,995 |   |
| Other current liabilities                                                               |   |         | 607,196    |   |       |   | 429,135 |   |
| Total current liabilities                                                               |   |         | 10,735,626 |   |       |   | 7,479,250 |   |
|                                                                                    |   |         |       |   |       |   |   |   |
| Warrant liability                                                                       |   |         | 3,451,468  |   |       |   | 4,733,872 |   |
|                                                                                    |   |         |       |   |       |   |   |   |
| Total liabilities                                                                       |   |         | 14,187,094 |   |       |   | 12,213,122 |   |
|                                                                                    |   |         |       |   |       |   |   |   |
| Equity                                                                                  |   |         |       |   |       |   |   |   |
| Stockholders’ equity:                                                             |   |         |       |   |       |   |   |   |
| Common stock, $0.001 par value, 50,000,000 shares authorized,                           |   |         | 27,986     |   |       |   | 27,326 |   |
|    27,986,026 and 27,371,526 shares issued and outstanding at            |   |         |       |   |       |   |   |   |
|   December 31, 2010 and June 30, 2010, respectively                           |   |         |       |   |       |   |   |   |
| Series A convertible preferred stock, $0.001 par value 1,360,250 shares                 |   |         | 1,360      |   |       |   | 1,360 |   |
|    issued and outstanding at December 31, 2010 and June 30, 2010,        |   |         |       |   |       |   |   |   |
|    Respectively                                                          |   |         |       |   |       |   |   |   |
| Additional paid-in capital                                                              |   |         | 26,758,300 |   |       |   | 25,046,388 |   |
| Statutory reserve                                                                       |   |         | 3,782,883  |   |       |   | 3,732,883 |   |
| Treasury stock                                                                          |   |         | (111,587   | )      |       |   | (111,587 | ) |
| Retained earnings                                                                       |   |         | 34,782,880 |   |       |   | 25,530,906 |   |
| Accumulated other comprehensive income                                                  |   |         | 4,611,993  |   |       |   | 2,845,076 |   |
| Total stockholders’ equity                                                        |   |         | 69,853,815 |   |       |   | 57,072,352 |   |
|                                                                                    |   |         |       |   |       |   |   |   |
| Noncontrolling interest                                                                 |   |         | 436,858    |   |       |   | 453,627 |   |
|                                                                                    |   |         |       |   |       |   |   |   |
| Total equity                                                                            |   |         | 70,290,673 |   |       |   | 57,525,979 |   |
|                                                                                    |   |         |       |   |       |   |   |   |
| Total liabilities and equity                                                            |   | $            | 84,477,767 |   |       | $      | 69,739,101 |   |
|                                                                                    |   |         |       |   |       |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |

----

|                                                            |   | For the Three Months Ended |       |   | For the Six Months Ended |   |
|-----------------------------------------------------------------|--------|----------------------------|------------|--------|--------------------------|--------|
|                                                            |   | December 31,               |       |   | December 31,             |   |
|                                                            |   | 2010                       |       |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                                            |   | (Restated)                 |       |   | (Restated)               |   |   | (Restated) |   |   | (Restated) |   |
| Sales                                                           |   | $                          | 25,333,853 |   |                     | $      | 14,936,378 |   |   | $ | 47,284,667 |   |   | $ | 28,341,581 |   |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                   |   |                       | 13,999,623 |   |                     |   | 7,177,503 |   |   |   | 25,139,312 |   |   |   | 13,526,730 |   |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                                    |   |                       | 11,334,230 |   |                     |   | 7,758,875 |   |   |   | 22,145,355 |   |   |   | 14,814,851 |   |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                                             |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative                             |   |                       | 5,747,435  |   |                     |   | 4,409,735 |   |   |   | 11,734,661 |   |   |   | 8,527,501 |   |
| Research and development                                        |   |                       | 258,702    |   |                     |   | 197,380 |   |   |   | 516,677 |   |   |   | 389,870 |   |
| Total operating expenses                                        |   |                       | 6,006,137  |   |                     |   | 4,607,115 |   |   |   | 12,251,338 |   |   |   | 8,917,371 |   |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                                          |   |                       | 5,328,093  |   |                     |   | 3,151,760 |   |   |   | 9,894,017 |   |   |   | 5,897,480 |   |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expenses):                                        |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Interest income (expenses), net                                 |   |                       | 5,584      |   |                     |   | (10,443 | ) |   |   | 14,790 |   |   |   | (19,995 | ) |
| Change in fair value of warrant liability                       |   |                       | 1,555,421  |   |                     |   | (1,640,727 | ) |   |   | 1,282,404 |   |   |   | (6,817,373 | ) |
| Other income (expenses)                                         |   |                       | -          |   |                     |   | - |   |   |   | - |   |   |   | (39,510 | ) |
| Total other expenses                                            |   |                       | 1,561,005  |   |                     |   | (1,651,170 | ) |   |   | 1,297,194 |   |   |   | (6,876,878 | ) |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Income before provision for income tax                          |   |                       | 6,889,098  |   |                     |   | 1,500,590 |   |   |   | 11,191,211 |   |   |   | (979,398 | ) |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income tax                                        |   |                       | 942,068    |   |                     |   | 571,755 |   |   |   | 1,847,507 |   |   |   | 1,081,691 |   |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                      |   |                       | 5,947,030  |   |                     |   | 928,835 |   |   |   | 9,343,704 |   |   |   | (2,061,089 | ) |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Less: Net income (loss) attributable to Noncontrolling interest |   |                       | (8,785     | )      |                     |   |  1,486 |   |   |   | (16,629 | ) |   |   | (1,040 | ) |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to Tianyin Pharmaceutical Co., Inc.     |   |                       | 5,955,815  |   |                     |   | 927,349 |   |   |   | 9,360,333 |   |   |   | (2,060,049 | ) |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                                        |   | $                          | 0.21       |   |                     | $      | 0.03 |   |   | $ | 0.33 |   |   | $ | (0.11 | ) |
| Diluted earnings per share                                      |   | $                          | 0.20       |   |                     | $      | 0.03 |   |   | $ | 0.31 |   |   | $ | (0.07 | ) |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares                        |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|    outstanding                                   |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                           |   |                       | 27,986,026 |   |                     |   | 24,906,965 |   |   |   | 27,939,271 |   |   |   | 22,323,116 |   |
| Diluted                                                         |   |                       | 30,524,479 |   |                     |   | 30,439,912 |   |   |   | 30,477,723 |   |   |   | 28,521,127 |   |
|                                                            |   |                       |       |   |                     |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                                        |   | For the Three Months Ended |      |   | For the Six Months Ended |   |
|-----------------------------------------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                                                        |   | December 31,               |      |   | December 31,             |   |
|                                                                        |   | 2010                       |      |   | 2009                     |   |   | 2010 |   |   | 2009 |   |
|                                                                        |   | (Restated)                 |      |   | (Restated)               |   |   | (Restated) |   |   | (Restated) |   |
| Net income                                                                  |   | $                          | 5,947,030 |   |                     | $      | 928,835 |   |   | $ | 9,343,704 |   |   | $ | (2,061,089 | ) |
|                                                                        |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income                                                  |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|       Foreign currency translation adjustment |   |                       | 814,035   |   |                     |   | 10,927 |   |   |   | 1,766,917 |   |   |   | 46,784 |   |
|                                                                        |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Total other comprehensive income                                            |   |                       | 814,035   |   |                     |   | 10,927 |   |   |   | 1,766,917 |   |   |   | 46,784 |   |
|                                                                        |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income                                                        |   |                       | 6,761,065 |   |                     |   | 939,762 |   |   |   | 11,110,621 |   |   |   | (2,014,305 | ) |
|                                                                        |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income attributable to the                                    |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|   noncontrolling interest                                         |   |                       | 178,443   |   |                     |   | 3,999 |   |   |   | 389,762 |   |   |   | 9,720 |   |
|                                                                        |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income attributable to                                        |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
|   Tianyin Pharmaceutical Co., Inc.                                |   | $                          | 6,582,622 |   |                     | $      | 935,763 |   |   | $ | 10,720,859 |   |   | $ | (2,024,025 | ) |

----

|                                                          |   | For the Six Months Ended |       |
|---------------------------------------------------------------|--------|--------------------------|------------|
|                                                          |   | December 31,             |       |
|                                                          |   | 2010                     |       |   | 2009 |   |
| Cash flows from operating activities:                         |   | (Restated)               |       |   | (Restated) |   |
| Net Income                                                    |   | $                        | 9,343,704  |   |   | $ | (2,061,089 | ) |
| Adjustments to reconcile net income to net cash               |   |                     |       |   |   |   |   |   |
|   provided by (used in) operating activities:       |   |                     |       |   |   |   |   |   |
| Depreciation and amortization                                 |   |                     | 602,584    |   |   |   | 393,575 |   |
| Change in fair value of warrant liability                     |   |                     | (1,282,404 | ) |   |   | 6,817,373 |   |
| Share-based payments                                          |   |                     | 1,762,572  |   |   |   | 1,055,395 |   |
| Loss on disposal of fixed assets                              |   |                     | -          |   |   |   | 39,510 |   |
| Changes in current assets and current liabilities:            |   |                     |       |   |   |   |   |   |
| Accounts receivable                                           |   |                     | (949,316   | ) |   |   | (3,013,450 | ) |
| Inventory                                                     |   |                     | (1,744,837 | ) |   |   | 592,309 |   |
| Other current assets                                          |   |                     | 46,231     |   |   |   | 438,737 |   |
| Accounts payable and accrued expenses                         |   |                     | (170,205   | ) |   |   | 256,055 |   |
| Accounts payable – construction related                 |   |                     | 2,918,583  |   |   |   | - |   |
| VAT taxes payable                                             |   |                     | (1,020     | ) |   |   | 83,038 |   |
| Income tax payable                                            |   |                     | 61,860     |   |   |   | 80,668 |   |
| Other taxes payable                                           |   |                     | 151,575    |   |   |   | 3,788 |   |
| Dividends payable                                             |   |                     | (18,138    | ) |   |   | - |   |
| Other current liabilities                                     |   |                     | 45,190     |   |   |   | 193,483 |   |
| Total adjustments                                             |   |                     | 1,422,675  |   |   |   | 6,940,481 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Net cash provided by operating activities                     |   |                     | 10,766,379 |   |   |   | 4,879,392 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Cash flows from investing activities:                         |   |                     |       |   |   |   |   |   |
| Additions to property and equipment                           |   |                     | (7,400,717 | ) |   |   | (1,288,234 | ) |
| Additions to intangible assets – drug                   |   |                     | -          |   |   |   | (2,742,168 | ) |
| Loans receivable                                              |   |                     | 298,320    |   |   |   | (293,280 | ) |
|                                                          |   |                     |       |   |   |   |   |   |
| Net cash used in investing activities                         |   |                     | (7,102,397 | ) |   |   | (4,323,682 | ) |
|                                                          |   |                     |       |   |   |   |   |   |
| Cash flows from financing activities:                         |   |                     |       |   |   |   |   |   |
| Additional paid-in capital                                    |   |                     | -          |   |   |   | 7,590,962 |   |
| Contribution from minority shareholders                       |   |                     | -          |   |   |   | 439,920 |   |
| Dividends paid                                                |   |                     | (54,857    | ) |   |   | (1,077,335 | ) |
|                                                          |   |                     |       |   |   |   |   |   |
| Net cash provided by (used in) financing activities           |   |                     | (54,857    | ) |   |   | 6,953,547 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Effect of foreign currency translation on cash                |   |                     | 550,470    |   |   |   | 5,093 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Net increase in cash and cash equivalents                     |   |                     | 4,159,595  |   |   |   | 7,514,350 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Cash and cash equivalents – beginning                   |   |                     | 27,009,066 |   |   |   | 12,352,223 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Cash and cash equivalents – ending                      |   | $                        | 31,168,661 |   |   | $ | 19,866,573 |   |
|                                                          |   |                     |       |   |   |   |   |   |
| Supplemental schedule of non cash activities                  |   |                     |       |   |   |   |   |   |
| Advance payments exchanged for intangible assets – drug |   | $                        | -          |   |   | $ | 807,986 |   |
|                                                          |   |                     |       |   |   |   |   |   |

----

----

|                                                        |   | Three Months Ended December 31, |       |
|-------------------------------------------------------------|--------|---------------------------------|------------|
|                                                        |   | 2010 (Restated)            |       |   | 2009(Restated) |   |
| Net income attributable to Tianyin Pharmaceutical Co., Inc. |   | $                               | 5,955,815  |   |   | $ | 927,349 |   |
|   (numerator for diluted income per share)        |   |                            |       |   |   |   |   |   |
| Less: Dividend attributable to preferred stockholders       |   |                            | 53,501     |   |   |   | 98,538 |   |
|                                                        |   |                            |       |   |   |   |   |   |
| Net income attributable to common stockholders              |   |                            | 5,902,314  |   |   |   | 828,811 |   |
|   (numerator for basic income per share)          |   |                            |       |   |   |   |   |   |
|                                                        |   |                            |       |   |   |   |   |   |
| Weighted average common shares                              |   |                            |       |   |   |   |   |   |
|   (denominator for basic income per share)        |   |                            | 27,986,026 |   |   |   | 24,906,965 |   |
|                                                        |   |                            |       |   |   |   |   |   |
| Effect of diluted securities:                               |   |                            |       |   |   |   |   |   |
|   Convertible preferred stock                     |   |                            | 1,276,464  |   |   |   | 2,443,375 |   |
|    Warrants                                  |   |                            | 1,261,989  |   |   |   | 3,089,572 |   |
|                                                        |   |                            |       |   |   |   |   |   |
| Weighted average common shares                              |   |                            |       |   |   |   |   |   |
|   (denominator for diluted income per share)      |   |                            | 30,524,479 |   |   |   | 30,439,912 |   |
|                                                        |   |                            |       |   |   |   |   |   |
| Basic net income per share                                  |   | $                               | 0.21       |   |   | $ | 0.03 |   |
| Diluted net income per share                                |   | $                               | 0.20       |   |   | $ | 0.03 |   |

|                                                        |   | Six Months Ended December 31, |       |
|-------------------------------------------------------------|--------|-------------------------------|------------|
|                                                        |   | 2010                          |       |   | 2009 |   |
|                                                        |   | (Restated)                    |       |   | (Restated) |   |
| Net income attributable to Tianyin Pharmaceutical Co., Inc. |   | $                             | 9,360,333  |   |   | $ | (2,060,049 | ) |
|   (numerator for diluted income per share)        |   |                          |       |   |   |   |   |   |
| Less: Dividend attributable to preferred stockholders       |   |                          | 108,358    |   |   |   | 332,221 |   |
|                                                        |   |                          |       |   |   |   |   |   |
| Net income attributable to common stockholders              |   |                          | 9,251,975  |   |   |   | (2,392,270 | ) |
|   (numerator for basic income per share)          |   |                          |       |   |   |   |   |   |
|                                                        |   |                          |       |   |   |   |   |   |
| Weighted average common shares                              |   |                          |       |   |   |   |   |   |
|   (denominator for basic income per share)        |   |                          | 27,939,271 |   |   |   | 22,323,116 |   |
|                                                        |   |                          |       |   |   |   |   |   |
| Effect of diluted securities:                               |   |                          |       |   |   |   |   |   |
|   Convertible preferred stock                     |   |                          | 1,276,464  |   |   |   | 3,972,394 |   |
|    Warrants                                  |   |                          | 1,261,988  |   |   |   | 2,225,617 |   |
|                                                        |   |                          |       |   |   |   |   |   |
| Weighted average common shares                              |   |                          |       |   |   |   |   |   |
|   (denominator for diluted income per share)      |   |                          | 30,477,723 |   |   |   | 28,521,127 |   |
|                                                        |   |                          |       |   |   |   |   |   |
| Basic net income per share                                  |   | $                             | 0.33       |   |   | $ | (0.11 | ) |
| Diluted net income per share                                |   | $                             | 0.31       |   |   | $ | (0.07 | ) |

----

|                                                               |   | December 31,            |       |   | December 31,             |   |       |             |   |
|--------------------------------------------------------------------|--------|-------------------------|------------|--------|--------------------------|--------|------------|------------------|--------|
|                                                               |   | 2010                    |       |   | 2010                     |   |       |             |   |
|                                                               |   | (As reported currently) |       |   | (As reported originally) |   |       | Effect of change |   |
| Liabilities                                                        |   |                    |       |   |                     |   |       |             |   |
|                                                               |   |                    |       |   |                     |   |       |             |   |
|         Warrants liability |   | $                       | 3,451,468  |   |                     | $      | -          |             |   | $ | 3,451,468 |   |
|                                                               |   |                    |       |   |                     |   |       |             |   |   |   |   |
| Total liabilities                                                  |   |                    | 14,187,094 |   |                     |   | 10,735,626 |             |   | $ | 3,451,468 |   |
|                                                               |   |                    |       |   |                     |   |       |             |   |   |   |   |
| Equity                                                             |   |                    |       |   |                     |   |       |             |   |   |   |   |
|                                                               |   |                    |       |   |                     |   |       |             |   |   |   |   |
| Additional paid-in capital                                         |   |                    | 26,758,300 |   |                     |   | 31,335,308 |             |   | $ | (4,577,008 | ) |
|        Retained earnings        |   |                    | 34,782,880 |   |                     |   | 33,657,340 |             |   | $ | 1,125,540 |   |
| Total stockholders’ equity                                   |   |                    | 69,853,815 |   |                     |   | 73,305,283 |             |   | $ | (3,451,468 | ) |
|                                                               |   |                    |       |   |                     |   |       |             |   |   |   |   |
| Total equity                                                       |   |                    | 70,290,673 |   |                     |   | 73,742,141 |             |   | $ | (3,451,468 | ) |

|                                                                                       |   | For the Three Months EndedDecember 31, |      |   | For the Three Months EndedDecember 31, |   |      |             |   |
|--------------------------------------------------------------------------------------------|--------|---------------------------------------------|-----------|--------|----------------------------------------|--------|-----------|------------------|--------|
|                                                                                       |   | 2010                                        |      |   | 2010                                   |   |      |             |   |
|                                                                                       |   | (As reported currently)                     |      |   | (As reported originally)               |   |      | Effect of change |   |
| Other income (expenses):                                                                   |   |                                        |      |   |                                   |   |      |             |   |
|         Change in Fair Value of warrants liability |   | $                                           | 1,555,421 |   |                                   | $      | -         |             |   |   | 1,555,421 |   |
| Total other income (expenses)                                                              |   |                                        | 1,561,005 |   |                                   |   | 5,584     |             |   |   | 1,555,421 |   |
|                                                                                       |   |                                        |      |   |                                   |   |      |             |   |   |   |   |
| Income before provision for income taxes                                                   |   |                                        | 6,889,098 |   |                                   |   | 5,333,677 |             |   |   | 1,555,421 |   |
|                                                                                       |   |                                        |      |   |                                   |   |      |             |   |   |   |   |
| Net income                                                                                 |   |                                        | 5,947,030 |   |                                   |   | 4,391,609 |             |   |   | 1,555,421 |   |
|                                                                                       |   |                                        |      |   |                                   |   |      |             |   |   |   |   |
| Net income attributable to Tianyin Pharmaceutical Co., Inc.                                |   |                                        | 5,955,815 |   |                                   |   | 4,400,394 |             |   |   | 1,555,421 |   |
|                                                                                       |   |                                        |      |   |                                   |   |      |             |   |   |   |   |
| Basic earnings per share                                                                   |   | $                                           | 0.21      |   |                                   | $      | 0.16      |             |   |   | 0.05 |   |
| Diluted earnings per share                                                                 |   | $                                           | 0.20      |   |                                   | $      | 0.14      |             |   |   | 0.06 |   |

----

|                                                                                       |   | For the Three Months EndedDecember 31, |       |   | For the Three Months EndedDecember 31, |   |      |             |   |
|--------------------------------------------------------------------------------------------|--------|----------------------------------------|------------|--------|----------------------------------------|--------|-----------|------------------|--------|
|                                                                                       |   | 2009                                   |       |   | 2009                                   |   |      |             |   |
|                                                                                       |   | (As reported currently)                |       |   | (As reported originally)               |   |      | Effect of change |   |
| Other income (expenses):                                                                   |   |                                   |       |   |                                   |   |      |             |   |
|         Change in Fair Value of warrants liability |   | $                                      | (1,640,727 | )      |                                   | $      | -         |             |   | $ | (1,640,727 | ) |
| Total other income (expenses)                                                              |   |                                   | (1,651,170 | )      |                                   |   | (10,443   | )                |   | $ | (1,640,727 | ) |
|                                                                                       |   |                                   |       |   |                                   |   |      |             |   |   |   |   |
| Income before provision for income taxes                                                   |   |                                   | 1,500,590  |   |                                   |   | 3,141,317 |             |   | $ | (1,640,727 | ) |
|                                                                                       |   |                                   |       |   |                                   |   |      |             |   |   |   |   |
| Net income                                                                                 |   |                                   | 928,835    |   |                                   |   | 2,569,561 |             |   | $ | (1,640,727 | ) |
|                                                                                       |   |                                   |       |   |                                   |   |      |             |   |   |   |   |
| Net income attributable to Tianyin Pharmaceutical Co., Inc.                                |   |                                   | 927,349    |   |                                   |   | 2,568,076 |             |   | $ | (1,640,727 | ) |
|                                                                                       |   |                                   |       |   |                                   |   |      |             |   |   |   |   |
| Basic earnings per share                                                                   |   | $                                      | 0.03       |   |                                   | $      | 0.10      |             |   |   | (0.07 | ) |
| Diluted earnings per share                                                                 |   | $                                      | 0.03       |   |                                   | $      | 0.08      |             |   |   | (0.05 | ) |

|                                                                                       |   | For the Six Months EndedDecember 31, |       |   | For the Six Months EndedDecember 31, |   |      |             |   |
|--------------------------------------------------------------------------------------------|--------|--------------------------------------|------------|--------|--------------------------------------|--------|-----------|------------------|--------|
|                                                                                       |   | 2010                                 |       |   | 2010                                 |   |      |             |   |
|                                                                                       |   | (As reported currently)              |       |   | (As reported originally)             |   |      | Effect of change |   |
| Other income (expenses):                                                                   |   |                                 |       |   |                                 |   |      |             |   |
|         Change in Fair Value of warrants liability |   | $                                    | 1,282,404  |   |                                 | $      | -         |             |   |   | 1,282,404 |   |
| Total other income (expenses)                                                              |   |                                 | 1,297,194  |   |                                 |   | 14,790    |             |   |   | 1,282,404 |   |
|                                                                                       |   |                                 |       |   |                                 |   |      |             |   |   |   |   |
| Income before provision for income taxes                                                   |   |                                 | 11,191,211 |   |                                 |   | 9,908,807 |             |   |   | 1,282,404 |   |
|                                                                                       |   |                                 |       |   |                                 |   |      |             |   |   |   |   |
| Net income                                                                                 |   |                                 | 9,343,704  |   |                                 |   | 8,061,300 |             |   |   | 1,282,404 |   |
|                                                                                       |   |                                 |       |   |                                 |   |      |             |   |   |   |   |
| Net income attributable to Tianyin Pharmaceutical Co., Inc.                                |   |                                 | 9,360,333  |   |                                 |   | 8,077,929 |             |   |   | 1,282,404 |   |
|                                                                                       |   |                                 |       |   |                                 |   |      |             |   |   |   |   |
| Basic earnings per share                                                                   |   | $                                    | 0.33       |   |                                 | $      | 0.29      |             |   |   | 0.04 |   |
| Diluted earnings per share                                                                 |   | $                                    | 0.31       |   |                                 | $      | 0.27      |             |   |   | 0.04 |   |

|                                                                                       |   | For the Six Months EndedDecember 31, |       |   | For the Six Months EndedDecember 31, |   |      |             |   |
|--------------------------------------------------------------------------------------------|--------|--------------------------------------|------------|--------|--------------------------------------|--------|-----------|------------------|--------|
|                                                                                       |   | 2009                                 |       |   | 2009                                 |   |      |             |   |
|                                                                                       |   | (As reported currently)              |       |   | (As reported originally)             |   |      | Effect of change |   |
|                                                                                       |   |                                 |       |   |                                 |   |      |             |   |
| Other income (expenses):                                                                   |   |                                 |       |   |                                 |   |      |             |   |
|         Change in Fair Value of warrants liability |   | $                                    | (6,817,373 | )      |                                 | $      | -         |             |   | $ | (6,817,373 | ) |
| Total other income (expenses)                                                              |   |                                 | (6,876,878 | )      |                                 |   | (59,505   | )                |   | $ | (6,817,373 | ) |
|                                                                                       |   |                                 |       |   |                                 |   |      |             |   |   |   |   |
| Income before provision for income taxes                                                   |   |                                 | (979,398   | )      |                                 |   | 5,837,975 |             |   | $ | (6,817,373 | ) |
|                                                                                       |   |                                 |       |   |                                 |   |      |             |   |   |   |   |
| Net income                                                                                 |   |                                 | (2,061,089 | )      |                                 |   | 4,756,284 |             |   | $ | (6,817,373 | ) |
|                                                                                       |   |                                 |       |   |                                 |   |      |             |   |   |   |   |
| Net income attributable to Tianyin Pharmaceutical Co., Inc.                                |   |                                 | (2,060,049 | )      |                                 |   | 4,757,324 |             |   | $ | (6,817,373 | ) |
|                                                                                       |   |                                 |       |   |                                 |   |      |             |   |   |   |   |
| Basic earnings per share                                                                   |   | $                                    | (0.11      | )      |                                 | $      | 0.20      |             |   |   | (0.31 | ) |
| Diluted earnings per share                                                                 |   | $                                    | (0.07      | )      |                                 | $      | 0.16      |             |   |   | (0.23 | ) |

----

|                                                    |   | For the Six Months EndedDecember 31, |       |   | For the Six Months EndedDecember 31, |   |      |                  |   |
|---------------------------------------------------------|--------|--------------------------------------|------------|--------|--------------------------------------|--------|-----------|-----------------------|--------|
|                                                    |   | 2010                                 |       |   | 2010                                 |   |      |                  |   |
|                                                    |   | (As reported currently)              |       |   | (As reported originally)             |   |      | Effect of change |   |
| Cash flows from operating activities:                   |   |                                 |       |   |                                 |   |      |                  |   |
| Net Income                                              |   | $                                    | 9,343,704  |   |                                 | $      | 8,061,300 |                  |   |   | 1,282,404 |   |
| Adjustments to reconcile net income to net cash         |   |                                 |       |   |                                 |   |      |                  |   |   |   |   |
|   provided by (used in) operating activities: |   |                                 |       |   |                                 |   |      |                  |   |   |   |   |
|                                                    |   |                                 |       |   |                                 |   |      |                  |   |   |   |   |
| Change in Fair Value of warrants                        |   |                                 | (1,282,404 | )      |                                 |   | -         |                  |   |   | (1,282,404 | ) |
|                                                    |   |                                 |       |   |                                 |   |      |                  |   |   |   |   |
| Total adjustments                                       |   |                                 | 1,422,675  |   |                                 |   | 2,705,079 |                  |   |   | (1,282,404 | ) |

|                                                    |   | For the Six Months EndedDecember 31, |       |   | For the Six Months EndedDecember 31, |   |      |             |   |
|---------------------------------------------------------|--------|--------------------------------------|------------|--------|--------------------------------------|--------|-----------|------------------|--------|
|                                                    |   | 2009                                 |       |   | 2009                                 |   |      |             |   |
|                                                    |   | (As reported currently)              |       |   | (As reported originally)             |   |      | Effect of change |   |
| Cash flows from operating activities:                   |   |                                 |       |   |                                 |   |      |             |   |
| Net Income                                              |   | $                                    | (2,061,089 | )      |                                 | $      | 4,756,284 |             |   | $ | (6,817,373 | ) |
| Adjustments to reconcile net income to net cash         |   |                                 |       |   |                                 |   |      |             |   |   |   |   |
|   provided by (used in) operating activities: |   |                                 |       |   |                                 |   |      |             |   |   |   |   |
|                                                    |   |                                 |       |   |                                 |   |      |             |   |   |   |   |
| Change in Fair Value of warrants                        |   |                                 | 6,817,373  |   |                                 |   | -         |             |   | $ | 6,817,373 |   |
|                                                    |   |                                 |       |   |                                 |   |      |             |   |   |   |   |
| Total adjustments                                       |   |                                 | 6,940,481  |   |                                 |   | 123,108   |             |   | $ | 6,817,373 |   |

----

|                        |   | Three Months Ended December 31, |   |
|-----------------------------|--------|---------------------------------|--------|
|                        |   | 2010                            |   |   | 2009 |   |
|                        |   | (Restated)                      |   |   | (Restated) |   |
| Sales                       |   | $                               | 25.3   |   |   | $ | 14.9 |   |
| Cost of sales               |   | $                               | 14.0   |   |   | $ | 7.2 |   |
| Gross profit                |   | $                               | 11.3   |   |   | $ | 7.8 |   |
| Operating expenses          |   | $                               | 6.0    |   |   | $ | 4.6 |   |
| Provision for income taxes  |   | $                               | 0.9    |   |   | $ | 0.6 |   |
| Net income                  |   | $                               | 5.9    |   |   | $ | 0.9 |   |
| Foreign exchange adjustment |   | $                               | 0.8    |   |   | $ | 0.0 |   |
| Comprehensive income        |   | $                               | 6.8    |   |   | $ | 0.9 |   |

----

| (a) | Evaluation of disclosure controls and procedures |
|-----|--------------------------------------------------|

|  (b) | Changes in internal control over financial reporting |
|-----------|------------------------------------------------------|

| ●                    |  Lack of sufficient knowledge regarding U.S. GAAP reporting by our existing accounting staff.                                                                     |
|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|     ● |         Lack of sufficient accounting staff which results in a lack of segregation of duties necessary for a good system of internal control; |
| ●                    |         Lack of sufficient documentation with our existing financial processes, risk assessment and internal controls.                        |

|   | 1. | Recruit experienced professionals to augment and upgrade our financial staff for sufficient US GAAP financial reporting.  We believe that additional accounting staff trained in U.S. GAAP would improve our controls and procedures, specifically with regard to the preparation of our financial statements; and |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | The Company has made efforts to improve our current accounting staff’s knowledge of U.S. accounting standards.  |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

----

| Exhibit No. |  Document                                                                                                                                                             |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |                                                                                                                                                                       |
| 3.1         | Articles of Incorporation, as amended (Incorporated by reference to Exhibit 3.1 to our Annual Report on Form 10-K filed on September 29, 2010).                            |
|        |                                                                                                                                                                       |
| 3.2         | Bylaws (Incorporated by reference to Exhibit 3.2 to our Annual Report on Form 10-K filed on September 29, 2010).                                                           |
|        |                                                                                                                                                                       |
| 31.1        | Certification  of  Chief  Executive  Officer  required  by Rule 13a-14/15d-14(a) under the Exchange Act        |
|        |                                                                                                                                                                       |
| 31.2        | Certification of  Chief Accounting Officer required by Rule 13a-14/15d-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 the Sarbanes-Oxley Act of 2002.                    |
|        |                                                                                                                                                                       |
| 32.2        | Certification of Acting Chief Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  |

----

|  /s/  Dr. Guoqing Jiang      |                                                                                                                      |
|----------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                                   | Name:  Dr. Guoqing Jiang                                                                                             |   |
|                                   | Title:    Chairman, Chief Executive Officer                                                                |   |
|                                   |                                                                                                                      |
|                                   |                                                                                                                      |
|                                   |                                                                                                                      |
|  /s/  Dr. James Jiayuan Tong |                                                                                                                      |
|                                   | Name:  Dr. James Jiayuan Tong                                                                                        |   |
|                                   | Title:    Chief Financial Officer, Chief Accounting Officer,                                          |   |
|                                   |              Chief Business and Development Officer, Director |   |
|                                   |                                                                                                                      |

----