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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
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 quarterly period ended November 30,
2010
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:
000-52218

PEDIATRX INC.(Exact name
of registrant as specified in its charter)

|Nevada                                                               | 20-2590810                          
|-------------------------------------------------------------------- | ------------------------------------
|(State or other jurisdiction of incorporation or
      organization) | (I.R.S. Employer Identification No.)

405 Trimmer Road, Suite 200, Califon, New Jersey 07830(Address of principal executive offices) (Zip Code)

(908) 975-0753(Registrant's telephone number,
including area code)

N/A(Former name, former address and former
fiscal year, if changed since last report)

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 has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).
Yes [ ] 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.

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

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- ii -

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or 15(d) of the
Securities Exchange Act of 1934 subsequent to the distribution of securities
under a plan confirmed by a court. Yes [ ] No [ ]

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable date
20,836,000 shares of common stock are issued and outstanding as of January
13, 2011.

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- iii -

TABLE OF CONTENTS

|PART IFINANCIAL
      INFORMATION                                                                   | 1 
|---------------------------------------------------------------------------------------------------- | --
|Item 1. Consolidated Financial
      Statements (Unaudited).                                         | 1 
|Consolidated Balance
      Sheets                                                                    | 2 
|Consolidated Statements of
      Operations                                                          | 3 
|Consolidated Statements
      of Cash Flows                                                          | 4 
|Consolidated Statements of Changes in
      Stockholders' Equity (Deficit)                           | 5 
|Notes to the Consolidated
      Financial Statements                                                 | 6 
|Item 2. Management's Discussion and
      Analysis of Financial Condition and Results of Operations. | 16
|Item 3. Quantitative
      and Qualitative Disclosures about Market Risk.                            | 21
|Item 4T. Controls and Procedures.                                                                    | 21
|PART IIOTHER
      INFORMATION                                                                      | 22
|Item 1. Legal Proceedings.                                                                           | 22
|Item 1A. Risk
      Factors.                                                                         | 22
|Item 2. Unregistered Sales of Equity
      Securities and Use of Proceeds.                           | 27
|Item 3. Defaults Upon
      Senior Securities.                                                       | 27
|Item 4. [REMOVED AND RESERVED].                                                                      | 27
|Item 5. Other
      Information.                                                                     | 27
|Item 6. Exhibits.                                                                                    | 27
|SIGNATURES                                                                                           | 29

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PART IFINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED).

****

****

PediatRx Inc. (formerly Striker Energy Corp.)(A Development Stage Company)

Consolidated Financial Statements November 30, 2010

1

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PediatRx Inc. (formerly Striker Energy Corp.)(A Development Stage Company)
  Consolidated Balance Sheets

|                                                                                                                                                 |   | As of        |   |   | As of        |  
|------------------------------------------------------------------------------------------------------------------------------------------------ | - | ------------ | - | - | ------------ | -
|                                                                                                                                                 |   | November 30, |   |   | February 28, |  
|                                                                                                                                                 |   | 2010         |   |   | 2010         |  
|                                                                                                                                                 |   | (Unaudited)  |   |   | (Note 1      | )
|                                                                                                                                                 |   |              |   |   |              |  
|Assets                                                                                                                                           |   |              |   |   |              |  
|                                                                                                                                                 |   |              |   |   |              |  
|Current assets                                                                                                                                   |   |              |   |   |              |  
|Cash and cash equivalents                                                                                                                        | $ | 786,928      |   | $ | 6,760        |  
|Accounts receivable, net of reserves                                                                                                             |   | 141,034      |   |   | -            |  
|Inventory                                                                                                                                        |   | 111,386      |   |   | -            |  
|Prepaid expenses                                                                                                                                 |   | 4,000        |   |   | -            |  
|                                                                                                                                                 |   |              |   |   |              |  
|Total current assets                                                                                                                             |   | 1,043,348    |   |   | 6,760        |  
|Product rights and know-how, net of
      accumulated amortization                                                                               |   | 853,393      |   |   | -            |  
|Security deposits                                                                                                                                |   | 991          |   |   | -            |  
|                                                                                                                                                 |   |              |   |   |              |  
|Total assets                                                                                                                                     | $ | 1,897,732    |   | $ | 6,760        |  
|                                                                                                                                                 |   |              |   |   |              |  
|Liabilities                                                                                                                                      |   |              |   |   |              |  
|Current liabilities                                                                                                                              |   |              |   |   |              |  
|Accounts payable and accrued liabilities                                                                                                         | $ | 257,380      |   | $ | 5,500        |  
|Promissory notes                                                                                                                                 |   | 250,000      |   |   | -            |  
|Total current liabilities                                                                                                                        |   | 507,380      |   |   | 5,500        |  
|Promissory notes                                                                                                                                 |   | -            |   |   | 50,000       |  
|Accrued interest                                                                                                                                 |   | -            |   |   | 1,777        |  
|Total liabilities                                                                                                                                |   | 507,380      |   |   | 57,277       |  
|Stockholders equity (deficit)                                                                                                                   |   |              |   |   |              |  
|Capital stock                                                                                                                                    |   |              |   |   |              |  
|Authorized 
         150,000,000 common shares, par
      value $0.0001                                                                          |   |              |   |   |              |  
|Issued and outstanding 
        
      November 30, 2010  20,836,000 common shares 
         February 28,
      2010  20,506,000 common shares |   | 2,089        |   |   | 2,056        |  
|Additional paid-in capital                                                                                                                       |   | 2,299,290    |   |   | 197,123      |  
|Retained deficit                                                                                                                                 |   | (911,027     | ) |   | (249,696     | )
|Total stockholders' equity (deficit)                                                                                                             |   | 1,390,352    |   |   | (50,517      | )
|Total liabilities and
      stockholders' equity (deficit)                                                                                       | $ | 1,897,732    |   | $ | 6,760        |  

The accompanying notes are an integral part of these financial
  statements.

2

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PediatRx Inc. (formerly Striker Energy Corp.)(A Development Stage Company)
  Consolidated Statements of Operations

|                                                                       |   | For the period  |   |   |                    |   |   |                    |   |   |                    |   |   |                    |  
|---------------------------------------------------------------------- | - | --------------- | - | - | ------------------ | - | - | ------------------ | - | - | ------------------ | - | - | ------------------ | -
|                                                                       |   | from the date   |   |   |                    |   |   |                    |   |   |                    |   |   |                    |  
|                                                                       |   | of inception on |   |   | For the three      |   |   | For the three      |   |   | For the nine       |   |   | For the nine       |  
|                                                                       |   | March 18, 2005  |   |   | month period       |   |   | month period       |   |   | month period       |   |   | month period       |  
|                                                                       |   | to **November** |   |   | ended **November** |   |   | ended **November** |   |   | ended **November** |   |   | ended **November** |  
|                                                                       |   | **30, 2010**    |   |   | 30, 2010           |   |   | 30, 2009           |   |   | 30, 2010           |   |   | 30, 2009           |  
|                                                                       |   |                 |   |   |                    |   |   |                    |   |   |                    |   |   |                    |  
|Net revenues                                                           | $ | 148,820         |   | $ | 145,709            |   | $ | -                  |   | $ | 148,820            |   | $ | -                  |  
|                                                                       |   |                 |   |   |                    |   |   |                    |   |   |                    |   |   |                    |  
|Cost of Goods Sold                                                     |   | 49,628          |   |   | 48,598             |   |   | -                  |   |   | 49,628             |   |   | -                  |  
|                                                                       |   |                 |   |   |                    |   |   |                    |   |   |                    |   |   |                    |  
|Gross Margin                                                           |   | 99,192          |   |   | 97,111             |   |   | -                  |   |   | 99,192             |   |   | -                  |  
|                                                                       |   |                 |   |   |                    |   |   |                    |   |   |                    |   |   |                    |  
|Expenses                                                               |   |                 |   |   |                    |   |   |                    |   |   |                    |   |   |                    |  
|Bank charges and interest                                              |   | 2,490           |   |   | 699                |   |   | 62                 |   |   | 1,162              |   |   | 234                |  
|Employee expenses                                                      |   | 62,929          |   |   | 62,929             |   |   | -                  |   |   | 62,929             |   |   | -                  |  
|Consulting fees                                                        |   | 293,073         |   |   | 89,167             |   |   | -                  |   |   | 282,897            |   |   | -                  |  
|Stock based compensation                                               |   | 18,600          |   |   | 18,600             |   |   | -                  |   |   | 18,600             |   |   | -                  |  
|Marketing expense                                                      |   | 98,567          |   |   | 77,865             |   |   | -                  |   |   | 98,567             |   |   | -                  |  
|Travel expense                                                         |   | 10,121          |   |   | 5,171              |   |   | -                  |   |   | 10,121             |   |   | -                  |  
|Filing fees                                                            |   | 17,040          |   |   | 3,661              |   |   | 525                |   |   | 8,270              |   |   | 1,916              |  
|Interest expense                                                       |   | 16,110          |   |   | 7,670              |   |   | 625                |   |   | 14,333             |   |   | 1,152              |  
|Investor relations                                                     |   | 3,649           |   |   | 2,919              |   |   | -                  |   |   | 2,919              |   |   | -                  |  
|Legal and accounting fees                                              |   | 229,329         |   |   | 28,200             |   |   | 7,106              |   |   | 101,298            |   |   | 24,934             |  
|Licenses and permits                                                   |   | 42,876          |   |   | 31,615             |   |   | -                  |   |   | 34,808             |   |   | -                  |  
|Management fees                                                        |   | 48,000          |   |   | -                  |   |   | 3,000              |   |   | 3,000              |   |   | 9,000              |  
|Mineral property expenditures                                          |   | 15,124          |   |   | -                  |   |   | -                  |   |   | -                  |   |   | -                  |  
|Office expenses                                                        |   | 1,359           |   |   | 741                |   |   | 5                  |   |   | 741                |   |   | 48                 |  
|Insurance expense                                                      |   | 44,055          |   |   | 19,488             |   |   | -                  |   |   | 44,055             |   |   | -                  |  
|Regulatory expense                                                     |   | 33,302          |   |   | 19,521             |   |   | -                  |   |   | 33,302             |   |   | -                  |  
|Recovery from mineral property acquisition costs                       |   | (5,000          | ) |   | -                  |   |   | -                  |   |   | -                  |   |   | -                  |  
|Rent                                                                   |   | 11,791          |   |   | 991                |   |   | 600                |   |   | 1,591              |   |   | 1,800              |  
|Transfer agent fees                                                    |   | 18,374          |   |   | 1,706              |   |   | 825                |   |   | 5,339              |   |   | 2,550              |  
|Website development                                                    |   | 9,002           |   |   | 5,338              |   |   | -                  |   |   | 7,163              |   |   | -                  |  
|Amortization expense                                                   |   | 29,428          |   |   | 22,071             |   |   | -                  |   |   | 29,428             |   |   | -                  |  
|Write down of mineral property acquisition
      costs                 |   | 10,000          |   |   | -                  |   |   | -                  |   |   | -                  |   |   | -                  |  
|                                                                       |   |                 |   |   |                    |   |   |                    |   |   |                    |   |   |                    |  
|Total Expenses                                                         |   | 1,010,219       |   |   | 398,352            |   |   | 12,748             |   |   | 760,523            |   |   | 41,634             |  
|                                                                       |   |                 |   |   |                    |   |   |                    |   |   |                    |   |   |                    |  
|Net loss for the period                                                | $ | (911,027        | ) | $ | (301,241           | ) | $ | (12,748            | ) | $ | (661,331           | ) | $ | (41,634            | )
|                                                                       |   |                 |   |   |                    |   |   |                    |   |   |                    |   |   |                    |  
|Basic and diluted loss per common share                                |   |                 |   | $ | (0.013             | ) | $ | (0.001             | ) | $ | (0.030             | ) | $ | (0.002             | )
|                                                                       |   |                 |   |   |                    |   |   |                    |   |   |                    |   |   |                    |  
|Weighted average number of common sharesused in per share calculations |   |                 |   |   | 22,508,500         |   |   | 20,506,000         |   |   | 21,934,370         |   |   | 20,506,000         |  

The accompanying notes are an integral part of these financial
  statements.

3

---

PediatRx Inc. (formerly Striker Energy Corp.)(A Development Stage Company)
  Consolidated Statements of Cash Flows

|                                                                                        |   | For the period  |   |   |                    |   |   |                    |  
|--------------------------------------------------------------------------------------- | - | --------------- | - | - | ------------------ | - | - | ------------------ | -
|                                                                                        |   | from the date   |   |   |                    |   |   |                    |  
|                                                                                        |   | of inception on |   |   | For the nine       |   |   | For the nine       |  
|                                                                                        |   | March 18, 2005  |   |   | month period       |   |   | month period       |  
|                                                                                        |   | to **November** |   |   | ended **November** |   |   | ended **November** |  
|                                                                                        |   | 30, 2010        |   |   | 30, 2010           |   |   | 30, 2009           |  
|                                                                                        |   |                 |   |   |                    |   |   |                    |  
|Cash flows from operating activities                                                    |   |                 |   |   |                    |   |   |                    |  
|Net loss for the period                                                                 | $ | (911,027        | ) | $ | (661,331           | ) | $ | (41,634            | )
|Adjustments to reconcile loss to net cash used by 
       operating activities          |   |                 |   |   |                    |   |   |                    |  
|Amortization expense                                                                    |   | 29,428          |   |   | 29,428             |   |   | -                  |  
|Contributions to capital by
      related parties  expenses                            |   | 58,800          |   |   | 3,600              |   |   | 10,800             |  
|Contributions
      to capital by related party  forgiveness 
           of
      debt |   | 38,949          |   |   | -                  |   |   | -                  |  
|Common shares issued for services                                                       |   | 30              |   |   | -                  |   |   | -                  |  
|Recovery from
      mineral property acquisition cost                                   |   | (5,000          | ) |   | -                  |   |   | -                  |  
|Write down of mineral
      property acquisition costs                                  |   | 10,000          |   |   | -                  |   |   | -                  |  
|Stock based
      compensation                                                          |   | 18,600          |   |   | 18,600             |   |   | -                  |  
|Changes in operating assets and liabilities                                             |   |                 |   |   |                    |   |   |                    |  
|Increase in accounts receivable                                                         |   | (23,855         | ) |   | (23,855            | ) |   | -                  |  
|Increase in inventory                                                                   |   | (111,386        | ) |   | (111,386           | ) |   | -                  |  
|Increase in prepaids and deposits                                                       |   | (4,991          | ) |   | (4,991             | ) |   | -                  |  
|Increase (decrease) in accounts payable and accrued 
       liabilities                 |   | 262,380         |   |   | 250,103            |   |   | (4,681             | )
|Cash used in
      operating activities                                                 |   | (638,072        | ) |   | (499,832           | ) |   | (35,515            | )
|                                                                                        |   |                 |   |   |                    |   |   |                    |  
|Cash flows from financing activities                                                    |   |                 |   |   |                    |   |   |                    |  
|Increase in due to related party                                                        |   | -               |   |   | -                  |   |   | (1,128             | )
|Promissory note                                                                         |   | 250,000         |   |   | 200,000            |   |   | 50,000             |  
|Common shares returned to treasury                                                      |   | (5,000          | ) |   | -                  |   |   | -                  |  
|Common shares issued for cash                                                           |   | 2,190,000       |   |   | 2,080,000          |   |   | -                  |  
|                                                                                        |   |                 |   |   |                    |   |   |                    |  
|Cash provided by
      financing activities                                             |   | 2,435,000       |   |   | 2,280,000          |   |   | 48,872             |  
|                                                                                        |   |                 |   |   |                    |   |   |                    |  
|Cash flows from investing activities                                                    |   |                 |   |   |                    |   |   |                    |  
|Acquisition of mineral property interest                                                |   | (10,000         | ) |   | -                  |   |   | -                  |  
|Acquisition of Granisol product line                                                    |   | (1,000,000      | ) |   | (1,000,000         | ) |   | -                  |  
|                                                                                        |   |                 |   |   |                    |   |   |                    |  
|Cash used in
      investing activities                                                 |   | (1,010,000      | ) |   | (1,000,000         | ) |   | -                  |  
|                                                                                        |   |                 |   |   |                    |   |   |                    |  
|Increase in cash and
      cash equivalents                                             |   | 786,928         |   |   | 780,168            |   |   | 13,357             |  
|                                                                                        |   |                 |   |   |                    |   |   |                    |  
|**Cash
      and cash equivalents, beginning of period**                                |   | -               |   |   | 6,760              |   |   | 2,448              |  
|                                                                                        |   |                 |   |   |                    |   |   |                    |  
|**Cash
      and cash equivalents, end of period**                                      | $ | 786,928         |   | $ | 786,928            |   | $ | 15,805             |  

Supplemental Disclosures with Respect to Cash Flows (Note
  9)

The accompanying notes are an integral part of these financial
  statements.

4

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PediatRx Inc. (formerly Striker Energy Corp.)(A Development Stage Company)
  Consolidated Statements of Changes in Stockholders' Equity (Deficit)

|                                                                                                                                      |  |               |   |   |         |   |   |            |   |   | Deficit,    |   |   |               |  
|------------------------------------------------------------------------------------------------------------------------------------- |  | ------------- | - | - | ------- | - | - | ---------- | - | - | ----------- | - | - | ------------- | -
|                                                                                                                                      |  |               |   |   |         |   |   |            |   |   | accumulated |   |   | Total         |  
|                                                                                                                                      |  |               |   |   |         |   |   | Additional |   |   | during the  |   |   | stockholders |  
|                                                                                                                                      |  | Number of     |   |   | Capital |   |   | paid-in    |   |   | development |   |   | equity        |  
|                                                                                                                                      |  | shares issued |   |   | stock   |   |   | capital    |   |   | stage       |   |   | (deficit)     |  
|Balance as of March 18, 2005 (inception)                                                                                              |  | -             |   | $ | -       |   | $ | -          |   | $ | -           |   | $ | -             |  
|Restricted common shares issued for cash ($0.0005 per share)
       September 2005                                                   |  | 10,000,000    |   |   | 1,000   |   |   | 4,000      |   |   | -           |   |   | 5,000         |  
|Contributions to capital by related parties
       expenses                                                                          |  | -             |   |   | -       |   |   | 600        |   |   | -           |   |   | 600           |  
|Net loss for the period                                                                                                               |  | -             |   |   | -       |   |   | -          |   |   | (21,237     | ) |   | (21,237       | )
|                                                                                                                                      |  |               |   |   |         |   |   |            |   |   |             |   |   |               |  
|Balance as of February 28, 2006                                                                                                       |  | 10,000,000    |   |   | 1,000   |   |   | 4,600      |   |   | (21,237     | ) |   | (15,637       | )
|Common shares issued for cash ($0.005 per
      share)  May 2006                                                                     |  | 10,000,000    |   |   | 1,000   |   |   | 49,000     |   |   | -           |   |   | 50,000        |  
|Common shares issued for services ($0.005 per share) 
      August 2006 and February 2007                                            |  | 6,000         |   |   | 6       |   |   | 24         |   |   | -           |   |   | 30            |  
|Contributions to capital by related parties
       expenses                                                                          |  | -             |   |   | -       |   |   | 11,400     |   |   | -           |   |   | 11,400        |  
|Net loss for the year                                                                                                                 |  | -             |   |   | -       |   |   | -          |   |   | (50,890     | ) |   | (50,890       | )
|                                                                                                                                      |  |               |   |   |         |   |   |            |   |   |             |   |   |               |  
|Balance as of February 28, 2007                                                                                                       |  | 20,006,000    |   |   | 2,006   |   |   | 65,024     |   |   | (72,127     | ) |   | (5,097        | )
|Contributions to capital by related parties
       expenses                                                                          |  | -             |   |   | -       |   |   | 14,400     |   |   | -           |   |   | 14,400        |  
|Common shares returned to treasury and cancelled for cash
      ($0.005 per share)  April 2007                                       |  | (1,000,000    | ) |   | (100    | ) |   | (4,900     | ) |   | -           |   |   | (5,000        | )
|Common shares issued for cash ($0.01 per share)
       May 2007                                                                      |  | 1,000,000     |   |   | 100     |   |   | 4,900      |   |   | -           |   |   | 5,000         |  
|Net loss for the year                                                                                                                 |  | -             |   |   | -       |   |   | -          |   |   | (65,411     | ) |   | (65,411       | )
|                                                                                                                                      |  |               |   |   |         |   |   |            |   |   |             |   |   |               |  
|Balance as of February 28, 2008                                                                                                       |  | 20,006,000    |   |   | 2,006   |   |   | 79,424     |   |   | (137,538    | ) |   | (56,108       | )
|Contributions to capital by related parties
       expenses                                                                          |  | -             |   |   | -       |   |   | 14,400     |   |   | -           |   |   | 14,400        |  
|Contributions to capital by related parties  loan forgiveness                                                                        |  | -             |   |   | -       |   |   | 38,950     |   |   | -           |   |   | 38,950        |  
|Common shares issued for cash ($0.10 per share)
       November 2008                                                                 |  | 500,000       |   |   | 50      |   |   | 49,950     |   |   | -           |   |   | 50,000        |  
|Net loss for the year                                                                                                                 |  | -             |   |   | -       |   |   | -          |   |   | (53,957     | ) |   | (53,957       | )
|                                                                                                                                      |  |               |   |   |         |   |   |            |   |   |             |   |   |               |  
|Balance as of February 28, 2009                                                                                                       |  | 20,506,000    |   |   | 2,056   |   |   | 182,724    |   |   | (191,495    | ) |   | (6,715        | )
|Contributions to capital by related parties
       expenses                                                                          |  | -             |   |   | -       |   |   | 14,399     |   |   | -           |   |   | 14,399        |  
|Net loss for the year                                                                                                                 |  | -             |   |   | -       |   |   | -          |   |   | (58,201     | ) |   | (58,201       | )
|                                                                                                                                      |  |               |   |   |         |   |   |            |   |   |             |   |   |               |  
|Balance as of February 28, 2010                                                                                                       |  | 20,506,000    |   |   | 2,056   |   |   | 197,123    |   |   | (249,696    | ) |   | (50,517       | )
|Contributions to capital by related parties
       expenses                                                                          |  | -             |   |   | -       |   |   | 3,600      |   |   | -           |   |   | 3,600         |  
|Common shares issued for cash ($0.20 per share)  June
      2010                                                                     |  | 1,500,000     |   |   | 150     |   |   | 299,850    |   |   | -           |   |   | 300,000       |  
|Common shares issued for cash ($0.50 per share)
       July 2010                                                                     |  | 1,500,000     |   |   | 150     |   |   | 749,850    |   |   | -           |   |   | 750,000       |  
|Common shares issued for cash ($1.00 per share)  November
      2010                                                                 |  | 825,000       |   |   | 83      |   |   | 824,917    |   |   | -           |   |   | 825,000       |  
|Common shares returned to treasury and cancelled  November
      2010 Common shares issued for debt cancellation ($1.00 per share)  |  | (3,700,000    | ) |   | (370    | ) |   | 370        |   |   | -           |   |   | -             |  
|November 2010                                                                                                                         |  | 205,000       |   |   | 20      |   |   | 204,980    |   |   | -           |   |   | 205,000       |  
|Stock based compensation                                                                                                              |  | -             |   |   | -       |   |   | 18,600     |   |   | -           |   |   | 18,600        |  
|Net loss for the period                                                                                                               |  | -             |   |   | -       |   |   | -          |   |   | (661,331    | ) |   | (661,331      | )
|                                                                                                                                      |  |               |   |   |         |   |   |            |   |   |             |   |   |               |  
|Balance as of November 30, 2010                                                                                                       |  | 20,836,000    |   | $ | 2,089   |   | $ | 2,299,290  |   | $ | (911,027    | ) | $ | 1,390,352     |  

The accompanying notes are an integral part of these financial
  statements.

5

---

|1. | Basis of Presentation and Nature and
      Continuance of Operations
|-- | --------------------------------------------------------------------

The accompanying unaudited condensed
financial statements of PediatRx Inc. (the "Company" or PediatRx) have been
prepared in accordance with the rules and regulations of the Securities and
Exchange Commission, or the SEC, including the instructions to Form 10-Q and
Regulation S-X. Effective December 28, 2010, the Company changed its name from
Striker Energy Corp. to PediatRx Inc. to better reflect its new business.
This name change was effected by a merger with the Companys wholly-owned
subsidiary, PediatRx Inc., a Nevada corporation.

In the opinion of the management of the
Company, all adjustments, which are of a normal recurring nature, necessary for
a fair statement of the results for the three and nine month periods and for the
period from the date of inception have been made. Results for the interim
periods presented are not necessarily indicative of the results that might be
expected for the entire fiscal year. When used in these notes, the terms
"Company", "we", "us" or "our" mean PediatRx Inc..

Certain information and note
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles in the United States of America
have been condensed or omitted from these statements pursuant to such rules and
regulations and, accordingly, they do not include all the information and notes
necessary for comprehensive financial statements and should be read in
conjunction with our audited financial statements for the year ended February
28, 2010.

The Company was incorporated under the
laws of the State of Nevada on March 18, 2005 and the Company intended to engage
in the acquisition and exploration of mineral properties. On September 28, 2005,
the Company entered into a mineral property option agreement with an unrelated
third party (the "Seller"), wherein the Company would acquire 50% of the rights,
title and interests in and to the Bald Mountain Claims in Nevada. Early in the
summer of 2008, the Company abandoned its efforts to acquire the Bald Mountain
Claims with a notice to the Seller. The Company transitioned its business from
mineral property exploration to oil and natural gas exploration.

Effective September 12, 2008, the
Company completed a stock split by the issuance of two new common shares for
each one outstanding common share of the Company. Unless otherwise noted, all
references herein to number of shares, price per share or weighted average
number of shares outstanding have been adjusted to reflect this stock split on
retroactive basis.

On June 17, 2010, we entered into a
letter of intent with Cypress Pharmaceutical, Inc. ("Cypress") to acquire all of
the assets associated with Granisol (granisetron HC1) oral solution
("Granisol"). First approved in 2008, Granisol is an oral, liquid granisetron
solution, formerly distributed by Hawthorn Pharmaceuticals, a subsidiary of
Cypress. The Food and Drug Administration has approved Granisol's use in cancer
care to treat nausea and vomiting associated with cancer therapy. On June 18,
2010, we caused PediatRx, Inc. ("PediatRx") to be incorporated as a wholly-owned
subsidiary of Striker Energy Corp. under the laws of the state of Nevada. On
July 23, 2010, PediatRx concluded a definitive agreement to acquire Granisol
from Cypress and we turned our focus to the pharmaceutical industry and
terminated our interest in oil and natural gas exploration.

The Company is a development stage
enterprise, as defined in Financial Accounting Standards Board (FASB)
Accounting Standards Codification (ASC) Topic 915, Development Stage
Entities. The Company is devoting all of its present efforts to the
preparation for marketing Granisol and seeking to secure rights to other
pharmaceutical products through acquisition and reformulation activities.

The Company has a loss of $661,331 for
the nine month period ended November 30, 2010 (November 30, 2009  $41,634,
cumulative  $911,027) and has a working capital surplus at November 30, 2010 of
$535,968 (February 28, 2010  working capital surplus of $1,260). The Company's
financial statements as of November 30, 2010 and for the nine month period ended
November 30, 2010 have been prepared on a going concern basis, which
contemplates the realization of assets and the settlement of liabilities and
commitments in the normal course of business.

6

---

|   | Management cannot provide assurance that the Company will
      ultimately achieve profitable operations or become cash flow positive, or
      raise additional debt and/or equity capital. As of November 30, 2010, the
      Company's assets consisted of cash and cash equivalents of $786,928 and
      accounts receivable from product sales, net of reserves for discounts and
      allowances of $141,034. Management believes that the Company's capital
      resources are not currently adequate to continue operating and maintaining
      its business strategy for the fiscal year ending February 28, 2011. The
      Company believes however, that it will be able to raise capital through
      additional debt and/or equity financings and that such financings,
      combined with increasing product sales, will allow the Company to fund its
      operations in the future. Although the Company has historically raised
      capital from sales of equity and from the issuance of promissory notes,
      there is no assurance that it will be able to continue to do so. If the
      Company is unable to raise additional capital or secure additional lending
      in the near future, management expects that the Company will need to
      curtail or cease operations. These financial statements do not include any
      adjustments related to the recoverability and classification of assets or
      the amounts and classification of liabilities that might be necessary
      should the Company be unable to continue as a going concern.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | As of November 30, 2010, the Company was in the process
      of transitioning to its new operating business and expects to incur
      operating losses for the next twelve months as it builds out its
      infrastructure and begins its full distribution activities for
      Granisol.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|2. | Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | The following is a summary of significant accounting
      policies used in the preparation of these financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Cash and cash equivalents include highly liquid
      investments with original maturities of three months or less when
      purchased.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Accounts Receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|   | Trade receivables are reported at net realizable value.
      In the normal course of business, credit is extended to customers on a
      short-term basis and generally collateral is not required. Management
      determines the allowance for doubtful accounts based on historical losses
      and current economic conditions. On a continuing basis, management
      analyzes delinquent receivables and once these receivables are determined
      to be uncollectible, they are written off through a charge against an
      existing allowance account or against earnings. Additionally, management
      includes the reserves for allowances such as cash discounts and returns in
      the accounts receivable balance. As of November 30, 2010, a reserve of
      $34,916 has been netted against accounts receivable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | Inventory is stated at the lower-of-cost or market on an
      average cost basis. Reserves for excess, slow moving or obsolete inventory
      are established when management becomes aware of an impairment in a
      product's marketability due to changes in formulation, market demand and
      conditions or other factors. Such reserves are established based upon the
      difference between the product's cost and management's estimate of its net
      realizable value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Intangible Assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   | Intangible assets consist of product rights and know-how,
      the Granisol trademark, and a manufacturing and supply agreement. As of
      November 30, 2010, intangible assets include costs of $882,820 less
      related accumulated amortization of $29,427 which amortization began in
      August 2010. The Company is amortizing the product rights and know-how
      over a ten year period on a straight line basis. As of November 30, 2010,
      annual amortization expense for each of the succeeding five years is
      expected to be $88,282.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   | Intangible assets of the Company are reviewed for
      impairment whenever events or circumstances indicate that the carrying
      amount of assets may not be recoverable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

7

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Management considers assets to be
impaired if the carrying value exceeds the future projected cash flows from
related operations (undiscounted and without interest charges). If impairment is
deemed to exist, the assets will be written down to fair value.

Income taxesDeferred income
taxes are reported for timing differences between items of income or expense
reported in the financial statements and those reported for income tax purposes
in accordance with ASC 740, "Income Taxes", which requires the use of the
asset/liability method of accounting for income taxes. Deferred income taxes are
recognized for the future tax consequences attributable to differences between
the financial statement carrying amounts of existing assets and liabilities and
their respective tax bases, and for tax losses and credit carry-forwards.
Deferred tax assets and liabilities are measured using enacted tax rates
expected to apply to taxable income in the years in which those temporary
differences are expected to be recovered or settled. The Company provides a
valuation allowance for deferred tax asset carry-forwards. Management is unable
to conclude that it is more likely than not that the asset will be realized.

Sales and Sales DeductionsRevenue is recognized from product sales when the merchandise is
shipped. Accordingly, revenue is recognized when all of the following occur: a
purchase order is received from a customer; title and risk of loss pass to the
customer upon shipment of the merchandise under the terms of FOB shipping point;
prices and estimated sales provisions for product returns, sales rebates,
chargebacks, payment discounts and other promotional allowances are reasonably
determinable; and the customer's payment ability has been reasonably assured.

Concurrently with the recognition of
revenue, the estimated sales provisions for product returns, sales rebates,
chargebacks, payment discounts and other sales allowances are recorded. Sales
provisions are established based upon consideration of a variety of factors,
including but not limited to, historical relationship to revenues, historical
payment and return experience, customer rebate arrangements and current contract
sales terms with wholesale and indirect customers. The following briefly
describes the nature of each provision and how such provisions are estimated.

- Payment discounts are reductions to invoiced
  amounts offered to customers for payment within a specified period and are
  estimated upon shipment utilizing historical customer payment experience.
- Sales rebates are offered to certain customers to
  promote customer loyalty and encourage greater product sales. These rebate
  programs provide that, upon the attainment of pre-established volumes or the
  attainment of revenue milestones for a specified period, the customer receives
  either credit against purchases or cash payment. Other promotional programs
  are incentive programs periodically offered to customers. Due to the nature of
  these programs, management is able to estimate provisions for rebates and
  other promotional programs based on specific terms in each agreement at the
  time of shipment along with an estimate of the customer's purchases over the
  specified period.
- Consistent with common industry practices, there
  are certain terms with customers to allow them to return a product that is
  within a certain period of the product's expiration date. Upon shipment of
  product to customers, an estimate for such returns is recorded. This estimate
  is determined by applying a historical relationship of products returned to
  products sold and market conditions including but not limited to the
  reformulation of products.
- Generally, credits may be issued to customers for
  decreases that are made to selling prices for the value of inventory that is
  owned by customers at the date of the price reduction. These credits are not
  contractually agreed to; instead, management issues price adjustment credits
  at its discretion. Price adjustment credits are estimated at the time the
  price reduction occurs. The amount is calculated based on an estimate of
  customer inventory levels.

8

---

- There are arrangements with certain parties
  establishing prices for products for which the parties independently select a
  wholesaler from which to purchase. Such parties are referred to as indirect
  customers. A chargeback represents the difference between the sales invoice
  price to the wholesaler and the indirect customer's contract price, which is
  lower. Provisions for estimating chargebacks are calculated primarily using
  historical chargeback experience, contract pricing and sales information
  provided by wholesalers and chains, among other factors.

Actual product returns, chargebacks and
other sales allowances incurred are, however, dependent upon future events and
may be different than management's estimates. These sales deductions are
continually monitored and management makes adjustments to these provisions when
it becomes evident that actual product returns, chargebacks and other sales
allowances may differ from established allowances.

Basic and diluted net loss per shareThe Company computes net income (loss) per share in accordance with ASC
260, "Earnings per Share". ASC 260 requires presentation of both basic
and diluted earnings per share ("EPS") on the face of the income statement.
Basic EPS is computed by dividing net loss available to common shareholders
(numerator) by the weighted average number of shares outstanding (denominator)
during the period. Diluted EPS gives effect to all dilutive potential common
shares outstanding during the period using the treasury stock method and
convertible preferred stock using the if-converted method. In computing diluted
EPS, the average stock price for the period is used in determining the number of
shares assumed to be purchased from the exercise of stock options or warrants.
Diluted EPS excludes all dilutive potential shares if their effect is
anti-dilutive.

Start-up expensesThe
Company has adopted ASC 720, "Start-Up Costs", which requires that costs
associated with start-up activities be expensed as incurred. Accordingly,
start-up costs associated with the Company's formation have been included in the
Company's expenses for the period from the date of inception from March 18, 2005
to November 30, 2010.

Use of estimates The
preparation of financial statements in conformity with U.S. GAAP requires
management to make estimates and assumptions that affect the amounts of assets
and liabilities and disclosures of contingent assets and liabilities at the date
of the financial statements and the reported amounts of revenues and
expenditures during the reporting period. Actual results could differ from these
estimates.

Recent accounting pronouncementsIn January 2010, FASB issued ASU 2010-6, "Improving Disclosures about
Fair Measurements". ASU 2010-6 provides amendments to subtopic 820-10 that
require separate disclosure of significant transfers in and out of Level 1 and
Level 2 fair value measurements and the presentation of separate information
regarding purchases, sales, issuances and settlements for Level 3 fair value
measurements. Additionally, ASU 2010-6 provides amendments to subtopic 820-10
that clarify existing disclosures about the level of disaggregation and inputs
and valuation techniques. ASU 2010-6 is effective for financial statements
issued for interim and annual periods ending after December 15, 2010. The
Company does not expect the adoption of ASU 2010-9 to have a material impact on
the financial statements.

In October 2009, the FASB issued ASU
2009-13, "Multiple-Deliverable Revenue Arrangements". ASU 2009-13 amends
existing revenue recognition accounting pronouncements that are currently within
the scope of ASC 605-25 (previously included within EITF 00-21, "Revenue
Arrangements with Multiple Deliverables"). The consensus to ASU
2009-13 provides accounting principles and application guidance on whether
multiple deliverables exist, how the arrangement should be separated, and the
consideration allocated. This guidance eliminates the requirement to establish
the fair value of undelivered products and services and instead provides for
separate revenue recognition based upon management's estimate of the selling
price for an undelivered item when there is no other means to determine the fair
value of that undelivered item. ASU 2009-13 is effective prospectively for
revenue arrangements entered into or materially modified beginning in fiscal
2012 and allows for retrospective application. The Company does not expect the
adoption of ASU 2009-13 to have a material impact on the financial statements.

9

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|3. | The Granisol Acquisition
|-- | ------------------------

On July 23, 2010 (the Closing Date),
the Granisol product line was acquired by the Company for cash consideration
totaling $1 million. All inventories and intangibles associated with the
Granisol product line are included in the purchase. PediatRx is a US-based
specialty pharmaceutical company dedicated to marketing and formulating
effective therapies and supportive care products for children undergoing
treatment for cancer and other serious conditions requiring hospitalization.

PediatRx intends to acquire or license
the rights to produce and/or market FDA approved name-brand prescription drugs
and expects to add value by more effectively marketing these products to
healthcare professionals and other key constituents. In addition, PediatRx
expects to reformulate existing pharmaceutical products into more
pediatric-friendly offerings using an approach that leverages existing safety
data to 'fast track' regulatory approval. PediatRx also plans to expand the
application of its core products to additional therapeutic areas and seek
partnerships outside of the United States.

As part of the closing and transfer of
assets to PediatRx on July 23, 2010, PediatRx assumed a single product
manufacturing and supply agreement with Therapex, a division of E-Z-EM Canada,
Inc. to enable the manufacturing of the Granisol product line. Under the terms
of the agreement, Therapex will manufacture the product in compliance with
current Good Manufacturing Practice (cGMP) and oversee all quality control and
packaging through to finished product to meet PediatRx' requirements.

Prior to the closing date, a purchase
order was placed with Therapex for one lot of product to be delivered subsequent
to the closing date. Such inventory to be delivered is an integral part of the
acquisition and the seller has been paid by PediatRx as part of the $1 million
cash consideration. The Company assigned $117,180 to inventory receivable on the
balance sheet as of the Closing Cate, with the remaining purchase price
allocated to the product rights and know-how associated with the ANDA, the
Granisol trademark, and the manufacturing and supply agreement with Therapex.
The related inventory was received in October 2010 and the inventory receivable
was reclassified to inventory in the accompanying the balance sheet as of
November 30, 2010.

The Company is amortizing the product
rights and know-how over a ten year period on a straight line basis, beginning
with August, 2010.

The purchase price for the Granisol
product line was allocated in accordance with the acquisition method of
accounting. The acquisition method of accounting is based on ASC 805,
Business Combinations, and uses the fair value concepts defined in ASC
820, Fair Value Measurements and Disclosures, which the Company has
adopted as required. For the nine months ended November 30, 2010, the Company
incurred approximately $18,975 in costs related to the acquisition of the
Granisol product line. These costs are reflected in other expenses in the
Consolidated Statements of Operations.

The following unaudited pro forma
information was prepared assuming that the acquisitions of Granisol had taken
place at the beginning of fiscal 2009. In preparing the pro forma financial
information, various assumptions were made; therefore, the Company does not
imply that the future results will be indicative of the following pro forma
information:

| |                                        |   | Nine months ended |   |   | Nine months ended |  
| | -------------------------------------- | - | ----------------- | - | - | ----------------- | -
| |                                        |   | November 30, 2010 |   |   | November 30, 2009 |  
| | Net sales                              | $ | 222,660           |   | $ | 143,739           |  
| | Net loss                               |   | (685,160          | ) |   | (100,793          | )
| | Net loss per share - basic and diluted |   | (0.0329           | ) |   | (0.0043           | )

10

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|4. | Mineral Properties                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | On September 28, 2005, the Company entered into a mineral
      property option agreement with an unrelated third party, wherein the
      Company could acquire 50% of the rights, title and interests in and to the
      Bald Mountain Claims in Nye County, Nevada (the "Bald Mountain Claims") by
      paying $5,000 in cash on signing (paid), $5,000 on the second anniversary
      of the agreement (accrued), $10,000 on the third anniversary of the
      agreement and completing exploration expenditures totalling $500,000 by
      September 28, 2010. During the year ended February 28, 2006, the Company
      recorded a write down of mineral property acquisition costs of $5,000
      related to the Bald Mountain Claims.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | During the year ended February 29, 2008, the Company
      incurred mineral property acquisition costs of $5,000 related to Bald
      Mountain Claims. This amount was initially capitalized as an intangible
      asset. During the year ended February 29, 2008, the Company recorded a
      write down of mineral property acquisition costs of $5,000 related to the
      Bald Mountain Claims.                                                                                                                                                                                                                                                                                                                                             
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | During the year ended February 28, 2009, the Company
      abandoned its interest in the Bald Mountain Claims and recorded a recovery
      of mineral property acquisition costs of $5,000. This amount was
      previously recorded as payable on September 28, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|5. | Promissory Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | November 30, |  | February 28,
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ |  | ------------
| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |  | 2010         |  | 2010        
| | Issued on June 15, 2009, the promissory note,
      bearing interest at five percent (5%) per annum on the principal balance
      of $50,000, is due on June 15, 2011 and is secured by a general charge on
      the assets of the Company. The principal amount or such portion thereof as
      shall remain outstanding from time to time shall accrue simple interest,
      calculated monthly in arrears, at a rate of 5% per annum commencing on the
      date of this promissory note and payable at maturity. When not in default
      the promissory note and any accrued interest can be repaid in whole or in
      part without notice or bonus.                                                                                               |  | $ 50,000     |  | $ 50,000    
| | Issued on July 26, 2010, the promissory note, bearing interest
      at five percent (5%) per annum on the principal balance of $200,000, is
      due on July 26, 2011 and is secured by a general charge on the assets of
      the Company. The principal amount or such portion thereof as shall remain
      outstanding from time to time shall accrue simple interest, calculated
      monthly in arrears, at a rate of 5% per annum commencing on the date of
      this promissory note and payable at maturity. When not in default the
      promissory note and any accrued interest can be repaid in whole or in part
      without notice or bonus with a minimum of six months interest due if
      repaid prior to the six month anniversary. |  | 200,000      |  | -           
| | Total Promissory Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  | $ 250,000    |  | $ 50,000    

|6. | Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Effective May 28, 2010, the Company entered into a
      consulting agreement with Dr. Cameron Durrant, a shareholder of the
      Company, to assist management in the identification of opportunities
      available to the Company in the healthcare industry and to recommend terms
      of potential acquisitions. Under the agreement, the Company will
      compensate Dr. Durrant on a time-spent basis at the rate of $1,000 per
      day, plus reimbursement of reasonable associated
  expenses.

11

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|   | On September 24, 2010, with retroactive effect to July 1,
      2010, the Company entered into a second consulting agreement with Dr.
      Cameron Durrant. Pursuant to the consulting agreement, Dr. Durrant agreed
      to perform such duties as are regularly and customarily performed by the
      Chief Executive Officer of a corporation in consideration for, among other
      things, $250,000 per annum. The term of the consulting agreement is one
      year from July 1, 2010, unless both parties agree to extend.                                                                                                                                                                                                                                                                                                                                                                                            
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | Dr. Durrant's agreement with the Company dated May 28,
      2010 was terminated in lieu of the September 24, 2010 agreement with
      PediatRx.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | In addition, 4,250,000 shares of the Company's common stock owned by Dr. Durrant have been placed into escrow.  The shares will be released to him upon achievement of certain milestones or returned to us for cancellation as provided therein.  Management has determined that the substance of the escrow agreement constitutes a performance based award and has recorded stock compensation expense of $17,000 with the first release of shares.  The fair value of the remaining escrow shares has been determined to be  $34,000 using the Company stock price from transactions on or around the date the terms of the escrow agreement were agreed upon by all parties.  As of November 30, 2010, management  cannot determine that it is probable the achievement of the remaining two milestones will be met.  Consequently, no compensation expense associated with the two remaining milestones has been recognized.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | During the nine month period ended November 30, 2010, the
      Company paid $31,250 and accrued an additional $84,917 (November 30, 2009
       $Nil, cumulative  $116,167) in connection with Dr. Durrant's consulting
      agreements and also accrued an additional $86,705 in expenses paid by him
      related to the establishment of PediatRx. Interest associated with such
      expenses is accrued at 5% per annum.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | On September 14, 2010, with retroactive effect to July 1,
      2010, the Company entered into an employment agreement with Mr. David
      Tousley, Chief Financial Officer, Treasurer and Secretary of PediatRx.
      Pursuant to the employment agreement, Mr. Tousley agreed to perform such
      duties as are regularly and customarily performed by the Chief Financial
      Officer of a corporation in consideration for, among other things,
      $200,000 per annum. Mr. Tousley is also eligible to receive an annual
      bonus and an annual stock option award at the end of each year at the
      discretion of the board of directors of PediatRx. The term of the
      employment agreement is two years from July 1, 2010, unless both parties
      agree to extend.                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | In addition, 400,000 shares of the Company's common stock owned by Mr. Tousley have been placed into escrow.  The shares will be released to him upon achievement of certain milestones or returned to us for cancellation as provided therein.  Management has determined that the substance of the escrow agreement constitutes a performance based award and has recorded stock compensation expense of $1,600 with the first release of shares.  The fair value of the remaining escrow shares has been determined to be $3,200  using the Company stock price from transactions on or around the  date the terms of the escrow agreement were agreed upon by all parties..  As of November 30, 2010, management has cannot determine that achievement of the remaining two milestones will be met.  Consequently, no compensation expense associated with the two remaining milestones has been recognized.                  
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | On September 14, 2010, with retroactive effect to July 1,
      2010, our wholly owned subsidiary, PediatRx, entered into an employment
      agreement with Mr. Jorge Rodriguez, Chief Commercial Officer of PediatRx.
      Pursuant to the employment agreement, Mr. Rodriguez agreed to perform such
      duties as are regularly and customarily performed by the Chief Commercial
      Officer of a corporation in consideration for, among other things,
      $150,000 per annum. Mr. Rodriguez is also eligible to receive an annual
      bonus and an annual stock option award at the end of each year at the
      discretion of the board of directors of PediatRx. The term of the
      employment agreement is two years from July 1, 2010, unless both parties
      agree to extend.                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|7. | Capital Stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | Authorized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | The total authorized capital is 150,000,000 common shares
      with a par value of $0.0001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | Issued and outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | The total issued and outstanding capital stock at
      November 30, 2010 is 20,836,000 common shares with a par value of $0.0001
      per common share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | On September 1, 2005, 10,000,000 common shares of the
      Company were issued to an officer and director of the Company for cash
      proceeds of $5,000.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

12

---

On May 2, 2006, the Company completed a
public offering of securities pursuant to an exemption provided by Rule 504 of
Regulation D, registered in the State of Nevada, and issued 10,000,000 common
shares for total cash proceeds of $50,000.

On August 29, 2006, 4,000 common shares
valued at $0.005 per share of the Company were issued to an officer and director
of the Company for services rendered.

On February 1, 2007, 2,000 common
shares valued at $0.005 per share of the Company were issued to a director of
the Company for services rendered.

On April 30, 2007, 1,000,000 common
shares of the Company were returned to treasury and cancelled; $5,000 was
returned to the investors.

On May 14, 2007, 1,000,000 common
shares valued at $0.005 per share of the Company were issued for total cash
proceeds of $5,000.

Effective September 12, 2008, the
Company completed a 2 to 1 forward stock split and increased the authorized
share capital from 75,000,000 common shares to 150,000,000 common shares with
the same par value of $0.0001. Unless otherwise noted, all references herein to
number of shares, price per share or weighted average number of shares
outstanding have been adjusted to reflect this stock split on retroactive basis.

On November 6, 2008, 500,000 common
shares valued at $0.10 per share of the Company were issued for total cash
proceeds of $50,000.

During the three month period ended May
31, 2010, an officer and director of the Company made contributions to capital
for management fees in the amount of $3,000 (May 31, 2009  $3,000, cumulative 
$48,000) and for rent in the amount of $600 (May 31, 2009  $600, cumulative 
$10,800).

On June 14, 2010, 1,500,000 common
shares valued at $0.20 per share of the Company were issued for total cash
proceeds of $300,000.

On July 2, 2010, 1,500,000 common
shares valued at $0.50 per share of the Company were issued for total cash
proceeds of $750,000.

On November 3, 2010, 400,000 units were
issued at a purchase price of $1.00 per unit for total cash proceeds of
$400,000. Each unit consisted of one share of common stock of the Company and
one-half of one share non-detachable purchase warrant. Each whole warrant
entitles the holder to purchase one share of common stock at a purchase price of
$1.75 per share until November 3, 2012.

On November 3, 2010, 3,700,000 shares
of the Company were returned to the Company for no cash or other consideration.
These shares were cancelled.

On November 30, 2010, 425,000 units
were issued at a purchase price of $1.00 per unit for total cash proceeds of
$425,000. Each unit consisted of one share of common stock of the Company and
one-half of one share non-detachable purchase warrant. Each whole warrant
entitles the holder to purchase one share of common stock at a purchase price of
$1.75 per share until November 30, 2012.

On November 30, 2010, 205,000 units
were issued at a purchase price of $1.00 per unit for cancellation of a
promissory note in the principal amount of $200,000 plus accrued interest of
$5,000. Each unit consisted of one share of common stock of the Company and
one-half of one share non-detachable purchase warrant. Each whole warrant
entitles the holder to purchase one share of common stock at a purchase price of
$1.75 per share until November 30, 2012.

13

---

A summary of the Companys share
purchase warrants outstanding as of November 30, 2010 is presented below:

Number 
      of Shares
    
    Exercise 
      PriceBalance, February 28,2010
    
    -
    
    -Issued
    
    515,000
    
    $1.75Balance, November 30, 2010
    
    515,000
    
    $1.75


|8. | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | The Company has losses to carry forward for income tax
      purposes as of November 30, 2010. There are no current or deferred tax
      expenses for the period ended November 30, 2010 due to the Company's loss
      position. The Company has fully reserved for any benefits of these losses.
      The deferred tax consequences of temporary differences in reporting items
      for financial statement and income tax purposes are recognized, as
      appropriate. Realization of the future tax benefits related to the
      deferred tax assets is dependent on many factors, including the Company's
      ability to generate taxable income within the net operating loss carry-
      forward period. Management has considered these factors in reaching its
      conclusion as to the valuation allowance for financial reporting
      purposes.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   | The composition of the Company's deferred tax assets as
      at November 30, 2010 and February 28, 2010 is as
follows:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

| |                                  |   | As of       |   |   | As of        |  
| | -------------------------------- | - | ----------- | - | - | ------------ | -
| |                                  |   | November    |   |   | February 28, |  
| |                                  |   | 30, 2010    |   |   | 2010         |  
| |                                  |   | (Unaudited) |   |   | (Audited)    |  
| |                                  |   |             |   |   |              |  
| |                                  |   |             |   |   |              |  
| |                                  |   |             |   |   |              |  
| | Net operating loss carry-forward | $ | 276,000     |   | $ | 53,000       |  
| | Less: Valuation allowance        |   | (276,000    | ) |   | (53,000      | )
| |                                  |   |             |   |   |              |  
| | Net deferred tax asset           | $ | -           |   | $ | -            |  

|   | As of November 30, 2010, the Company has an unused net
      operating loss carry forward balance of approximately $813,000 that is
      available to offset future taxable income. The potential income tax
      benefit of these losses has been offset by a full valuation allowance.
      This unused net operating loss carry-forward balance expires at various
      dates from 2026 to 2031.                                                                                                                      
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | The Company had no significant unrecognized tax benefits
      at February 28, 2010 or at November 30, 2010. Accordingly, there are no
      interest or penalties related to uncertain tax positions. However, if
      interest or penalties were to be incurred related to uncertain tax
      positions, such amounts would be recognized in income tax expense. Tax
      periods for all years after fiscal 2006 remain open to examination by the
      federal and state taxing jurisdictions to which we are subject
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|9. | Supplemental Disclosures with Respect to Cash
      Flows                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   | On April 30, 2007, 1,000,000 common shares of the Company
      were returned to treasury and cancelled; $5,000 was returned to the
      investors.                                                                                                                                                                                                                                                                                                                                                                         

14

---

During the year ended February 28,
2009, two former officers and directors of the Company forgave loans to the
Company totaling $38,949. This loan forgiveness has been recorded as
contributions to capital.

During the nine month period ended
November 30, 2010, an officer and director of the Company made contributions to
capital for management fees in the amount of $3,000 (November 30, 2009  $9,000,
cumulative  $48,000) and for rent in the amount of $600 (November 30, 2009 
$1,800, cumulative  $10,800).

15

---

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

Forward-Looking Statements

This report contains forward-looking statements. All statements
other than statements of historical facts contained in this quarterly report,
including statements regarding our future financial position, business strategy
and plans and objectives of management for future operations, are forward
looking statements. These statements relate to future events or our future
financial performance. In some cases, you can identify forward-looking
statements by terminology such as "may", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", "potential" or "continue" or the
negative of these terms or other comparable terminology. Such forward-looking
statements include, without limitation, statements regarding the anticipated
designs of our future products, statements regarding our anticipated future
regulatory submissions and statements regarding our anticipated future cash
position.

We have based these forward-looking statements largely on our
current expectations and projections about future events that we believe may
affect our financial condition, results of operations, business strategy, and
financial needs. These statements are only predictions and involve known and
unknown risks, uncertainties and other factors, including the risks in the
section entitled "Risk Factors" that may cause our company's or our industry's
actual results, levels of activity, performance or achievements to be materially
different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.

Moreover, we are new to the pharmaceutical business and our
management cannot predict all of the risks we will face in establishing our
company in this industry, nor can we assess the impact that these risk factors
might have on our business or the extent to which any risk factor, or any
combination of risk factors, may cause actual results to differ materially from
those contained in any forward-looking statements. You should not rely upon
forward-looking statements as predictions of future events. Although we believe
that the expectations reflected in the forward-looking statements are
reasonable, we cannot guarantee future results, levels of activity, performance
or achievements. Except as required by applicable law, including the securities
laws of the United States, we do not intend to update any of the forward-looking
statements to conform these statements to actual results.

As used in this report and unless otherwise indicated, the
terms "we", "us" and "our" refer to PediatRx Inc., a Nevada corporation. Unless
otherwise specified, all dollar amounts are expressed in United States dollars
and all references to "common shares" refer to the common shares in PediatRx's
capital stock.

Corporate Overview

We are a development stage enterprise, as defined in ASC Topic
915, "Development Stage Entities". We are currently only involved in the sales
and marketing and seeking rights of pharmaceutical products.

Our company was incorporated under the laws of Nevada on March
18, 2005 under the name Striker Energy Corp.. From inception until the summer
of 2008, we were engaged in the mineral exploration business. During the summer
of 2008, we abandoned our mineral exploration properties and made the transition
to oil and gas. On July 28, 2010, our wholly owned subsidiary PediatRx Inc.
completed the acquisition of Granisol (granisetron HC1) oral solution
("Granisol") from Cypress Pharmaceutical, Inc. ("Cypress") and we abandoned our
interest in the oil and gas business in favor of pursuing opportunities in the
pharmaceutical industry. Effective December 28, 2010, we changed our name from
Striker Energy Corp. to PediatRx Inc. to better reflect our new business. We
effected this name change by a merger with our wholly-owned subsidiary, PediatRx
Inc., a Nevada corporation.

Our Business

On June 17, 2010, we entered into a letter of intent with
Cypress to acquire all of the assets associated with Granisol. First approved in
2008, Granisol is an oral, liquid granisetron solution, formerly distributed by
Hawthorn Pharmaceuticals, a wholly-owned subsidiary of Cypress. The Food and
Drug Administration has approved Granisol's use in cancer care to prevent nausea
and vomiting associated with cancer therapy. On June 18, 2010 we caused PediatRx
Inc. to be incorporated as a wholly-owned subsidiary of Striker Energy Corp.
under the laws of the state of Nevada. On July 23, 2010 we, through our wholly-owned
subsidiary PediatRx Inc., acquired Granisol from Cypress and we turned our focus
to the pharmaceutical industry and terminated our interest in oil and natural
gas exploration. Effective December 28, 2010, we changed our name from Striker
Energy Corp. to PediatRx Inc. to better reflect our new business. We effected
this name change by a merger with our wholly-owned subsidiary, PediatRx Inc.

16

---

Granisol is our first acquisition. We intend to be the sole
distributor of Granisol and to focus our marketing efforts on specialists in the
field of pediatric oncology and supportive care. We do not now, nor do we intend
to manufacture our products. We contracted manufacturing to Therapex, a division
of E-Z-EM Canada Inc., a subsidiary of E-Z-EM, Inc., the entity that
manufactured Granisol for Cypress.

We intend to develop our business by acquiring rights to,
and/or substantially all of the assets associated with drugs already approved
for use by the United States Food and Drug Administration in pediatric oncology,
supportive care and other relevant medical specialties and to become the sole
distributor of such products in the United States.

We intend to accelerate our recovery of acquisition costs and
to add value to our acquisition of Granisol, and to future acquisitions through
four principal means:

Marketing

We intend to promote the relative
merits of Granisol, and future products, to healthcare professionals, payers,
end-users and their caregivers.

Reformulation

We intend to alter non-pharmacological
elements of our products to offer greater choice to consumers by reformulating
our products into multiple appealing, easy-to-take presentations.

Extension

We intend to seek applications for our
products in fields outside of pediatric oncology and supportive care.

Expanded distribution

We intend to expand distribution of our
products in foreign markets, likely through partnerships and licensing
agreements.

Granisol, and many other 'standard of care' drugs used in
pediatric oncology in the United States are prescribed by pediatric oncologists
and pediatric hematologists. We believe that there are approximately 1,700
specialists in the United States who may prescribe our products. We intend to
focus our promotional efforts on approximately 400 key prescribers in 30 centers
in the United States who we believe are the most influential. Regarding
Granisol, we intend to promote its merits including convenient use, precise and
accurate dosing, and improved likelihood of patient compliance.

Approximately 13,500 children are diagnosed with cancer each
year in the United States. We are sensitive to the needs of families enduring
cancer therapy and we believe more palatable treatments for the side effects
associated with cancer therapy could lead to an improvement in care and quality
of life.

Competition

Granisol is the only oral, liquid granisetron HCl solution
currently on the market and approved by the United States Food and Drug
Administration.

17

---

We believe that our singular focus on the acquisition,
development, and commercialization of pharmaceutical drugs approved by the
United States Food and Drug Administration for use in pediatric oncology,
supportive care and other relevant medical specialties is a competitive
advantage over otherwise similar pharmaceutical companies. We are aware of no
other company focused exclusively on pediatric oncology and supportive care. The
specialty pharmaceutical industry is, by definition, fragmented and it is a
competitive market. We compete with many pharmaceutical companies, both large
and small, for staff, and for product acquisitions and licensing.

We differ from many early-stage pharmaceutical companies in
that we intend to devote a large portion of our capital to acquisition, and to
sales and marketing, and we hope to recognize revenue from product sales in the
foreseeable future. Many early stage pharmaceutical companies devote a greater
portion of their capital to research and development with no expectation of
revenue from product sales in the foreseeable future.

We are a development stage enterprise, as defined in Accounting
Standards Codification (the "Codification" or "ASC") 915-10, "Development
Stage Entities". We are now devoting all of our present efforts to the
preparation for marketing Granisol and to securing rights to other
pharmaceutical products through acquisition and reformulation activities. We
were previously an exploration stage company in the business of oil and natural
gas exploration.

Liquidity and Capital Resources

Our financial condition for the nine month periods ended
November 30, 2010 and 2009 and as of November 30, 2010 and February 28, 2010 for
the respective items are summarized below.

We have incurred recurring losses from inception. Our ability
to meet our financial liabilities and commitments is primarily dependent upon
the continued financial support of our directors and shareholders, the continued
issuance of equity to new or existing shareholders or the securing additional
debt financing, and our ability to achieve and maintain profitable
operations.

|Working Capital           |   |              |  |   |              | 
|------------------------- | - | ------------ |  | - | ------------ | 
|                          |   | November 30, |  |   | February 28, | 
|                          |   | 2010         |  |   | 2010         | 
|Current Assets            | $ | 1,043,348    |  | $ | 6,760        | 
|Current
      Liabilities |   | 507,380      |  |   | 5,500        | 
|Working Capital           | $ | 535,968      |  | $ | 1,260        | 

As of November 30, 2010 our working capital increased by
$534,708 due largely to our taking on additional debt in the form of a 5%
promissory note in the amount of $200,000 due on July 26, 2011 which has been
utilized to fund the establishment of infrastructure and to prepare for the
launch of Granisol. We also completed equity placements totaling $2,080,000 with
the issuance of a total of 3,825,000 shares of common stock, which funding has
been utilized to complete the acquisition of Granisol, establish the marketing
and administrative infrastructure and to launch the product.

Cash Flows

|                                      |   | Nine Months Ended |  
|------------------------------------- | - | ----------------- | -
|                                      |   | November 30,      |  
|                                      |   | 2010              |  
|Cash used in operating activities     | $ | (499,832          | )
|Cash provided by financing activities |   | 2,280,000         |  
|Cash used in investing activities     |   | (1,000,000        | )
|Net increase in cash                  | $ | 780,168           |  

18

---

Cash Used in Operating Activities

Our cash used in operating activities for the nine months ended
November 30, 2010 compared to our cash used in operating activities for the nine
months ended November 30, 2009 increased by $464,317, primarily due to the
expenses associated with establishing infrastructure in preparation for the
launch of Granisol and in launching the product.

Cash Provided by Financing Activities

Our cash provided by financing activities for the nine months
ended November 30, 2010 compared to our cash provided by financing activities
for the nine months ended November 30, 2009 increased by $2,231,128 due to the
issuance of a $200,000, 5% promissory note due on September 19, 2011 and the
completion of equity placements totaling $2,080,000 with the issuance of a total
of 3,825,000 shares of common stock, while only $50,000 was secured during the
same period in 2009 from the issuance of a $50,000 5% promissory note due on
June 15, 2011.

Cash Used in Investing Activities

Our cash used in investing activities for the nine months ended
November 30, 2010 compared to our cash used in investing activities for the nine
months ended November 30, 2009 increased by $1,000,000. During the nine month
period ended November 30, 2010, $1,000,000 was used to complete the acquisition
of Granisol from Cypress while no cash was utilized in investing activities
during the same period in 2009.

Results of Operation

The following summary of our results of operations should be
read in conjunction with our unaudited financial statements for the three and
nine month periods ended November 30, 2010.

RevenuesWe have recognized $145,709 in net product
revenue during the three month period ended November 30, 2010 and $148,820
during the nine month period ended November 30, 2010 as a result of the Granisol
acquisition and product launch. We recognized no revenue prior to 2010.

ExpensesThe table below shows our expenses for the
three month and nine month periods ended November 30, 2010 and 2009.

|                           |   | Three Months Ended |  |   | Nine Months Ended | 
|-------------------------- | - | ------------------ |  | - | ----------------- | 
|                           |   | November 30,       |  |   | November 30,      | 
|Expense                    |   | 2010               |  |   | 2009              | 
|Bank charges and interest  | $ | 699                |  | $ | 62                | 
|Employee expenses          |   | 62,929             |  |   | -                 | 
|Consulting fees            |   | 89,167             |  |   | -                 | 
|Stock based compensation   |   | 18,600             |  |   | -                 | 
|Marketing expense          |   | 77,865             |  |   | -                 | 
|Travel expense             |   | 5,171              |  |   | -                 | 
|Filing fees                |   | 3,661              |  |   | 525               | 
|Interest expense           |   | 7,670              |  |   | 625               | 
|Investor relations         |   | 2,919              |  |   | -                 | 
|Legal and accounting fees  |   | 28,200             |  |   | 7,106             | 
|Licenses and permits       |   | 31,615             |  |   | -                 | 
|Management fees            |   | -                  |  |   | 3,000             | 
|Office expense             |   | 741                |  |   | 5                 | 
|Insurance expense          |   | 19,488             |  |   | -                 | 
|Regulatory expense         |   | 19,521             |  |   | -                 | 
|Rent                       |   | 991                |  |   | 600               | 
|Transfer agent fees        |   | 1,706              |  |   | 825               | 
|Website development        |   | 5,338              |  |   | -                 | 
|Amortization
      expense |   | 22,071             |  |   | -                 | 
|Total Expenses             | $ | 398,352            |  | $ | 12,748            | 

19

---

In the three month period ended November 30, 2010, our expenses increased by approximately $386,000 over  the three month period ended November 30, 2009, due primarily to employee, consulting, share based compensation, marketing, travel, licenses and permits, insurance, regulatory, and website development expenses of approximately $329,000 associated with the acquisition of Granisol and preparing for and initiating product launch, increased legal and accounting, investor relations, interest, transfer agent, and filing fees and expenses of approximately $35,000 incurred in connection with the equity placements and issuances of promissory notes, as well as expenses associated with the Granisol acquisition, and amortization expense of approximately $22,000 on the product rights and know-how related to the Granisol acquisition.

In the nine month period ended November 30, 2010, our expenses increased by approximately $719,000 over the nine month period ended November 30, 2009, due to employee, consulting, share based compensation, marketing, travel, licenses and permits, insurance, regulatory, and website development expenses of approximately $592,000 associated with preparing for and initiating our product launch, increased legal and accounting, investor relations, interest, transfer agent, and filing fees and expenses of approximately $102,000 incurred in connection with the equity placements and issuances of promissory notes, as well as expenses associated with the Granisol acquisition, amortization expense of approximately $29,000 on the product rights and know-how related to the Granisol acquisition and other administrative expenses associated with repositioning our company.  These increased expenses were offset by a decrease in management fees and other expenses of approximately $4,000.

Cash Requirements

Our primary objectives for the next twelve month period are to
complete the systems, processes and infrastructure within our company required
to commercialize Granisol and to continue to look at opportunities within the
pharmaceutical markets to acquire and/or reformulate other pharmaceutical
products.

Specifically, we estimate our operating expenses and working
capital requirements for the next 12 months to be as follows:

|Expense                                |   | Amount    | 
|-------------------------------------- | - | --------- | 
|Bank charges and interest              | $ | 3,000     | 
|Filing fees                            |   | 10,000    | 
|Investor relations                     |   | 100,000   | 
|Legal and accounting fees              |   | 120,000   | 
|Licenses and permits                   |   | 50,000    | 
|Marketing expense                      |   | 1,100,000 | 
|Insurance expense                      |   | 100,000   | 
|Personnel and consulting expense       |   | 1,200,000 | 
|Regulatory & pharmacovigilance expense |   | 400,000   | 
|Product development expense            |   | 1,000,000 | 
|Transfer agent fees                    |   | 10,000    | 
|Other general & administrative expense |   | 100,000   | 
|Total:                                 | $ | 4,193,000 | 

These expenses and working capital requirements will be offset
to some degree by revenue generation from sales of Granisol. There can be no
assurance that we will generate revenues significant enough to offset these
expenses to some or any degree and that we will not have significant needs for
other financing to support the activities of our company. Additionally, there
can be no assurance that we will be able to identify additional opportunities
that we consider attractive enough to acquire or develop or that we will be able
to raise funds when needed or, if funds are available to us, that they can be
obtained on commercially reasonable terms. If we are not able to obtain the
additional financing on a timely basis, if and when it is needed, and if sales
of Granisol are insufficient to ultimately fund the operating costs of the
business, we may be forced to cease the operation of our business.

20

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Future Financing

We will require additional financing to fund our planned
operations, including acquiring and/or developing any potential products. We
currently do not have committed sources of additional financing and may not be
able to obtain additional financing, particularly, if the volatile conditions in
the stock and financial markets, and more particularly the market for early
development stage biotechnology research and development company stocks
persist.

There can be no assurance that additional financing will be
available to us when needed or, if available, that it can be obtained on
commercially reasonable terms. If we are not able to obtain the additional
financing on a timely basis, if and when it is needed, we will be forced to
delay or scale down some or all of our marketing, business development and
product development activities or perhaps even cease the operation of our
business.

Since inception we have funded our operations primarily through
equity and debt financings and we expect that we will continue to fund our
operations through the equity and debt financing. If we are able to raise
additional financing by issuing equity securities, our existing stockholders'
ownership will be diluted. Obtaining commercial or other loans, assuming those
loans would be available, will increase our liabilities and future cash
commitments.

There is no assurance that we will be able to maintain
operations at a level sufficient for an investor to obtain a return on his, her,
or its investment in our common stock. Further, we may continue to be
unprofitable.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have or are
reasonably likely to have a current or future effect on our financial condition,
changes in financial condition, revenues or expenses, results of operations,
liquidity, capital expenditures or capital resources that is material to
stockholders.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK.

Not Applicable

ITEM 4T. CONTROLS AND PROCEDURES.

Disclosure controls and procedures

We maintain "disclosure controls and procedures", as that term
is defined in Rule 13a-15(e), promulgated by the Securities and Exchange
Commission pursuant to the Securities Exchange Act of 1934, as amended.
Disclosure controls and procedures include controls and procedures designed to
ensure that information required to be disclosed in our company's reports filed
under the Securities Exchange Act of 1934 is recorded, processed, summarized and
reported within the time periods specified in the Securities and Exchange
Commission's rules and forms, and that such information is accumulated and
communicated to our management, including our principal executive officer and
our principal accounting officer to allow timely decisions regarding required
disclosure.

As required by paragraph (b) of Rules 13a-15 under the
Securities Exchange Act of 1934, as amended, our management, with the
participation of our principal executive officer and our principal financial
officer, evaluated our company's disclosure controls and procedures as of the
end of the period covered by this quarterly report on Form 10-Q. Based on this
evaluation, our management concluded that as of the end of the period covered by
this quarterly report on Form 10-Q, our disclosure controls and procedures were
effective.

Internal control over financial reporting

There were no changes in our internal control over financial
reporting during the third quarter of our fiscal year ended February 28, 2011
that have materially affected, or are reasonably likely to materially affect our
internal control over financial reporting.

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PART IIOTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

We know of no material, existing or pending legal proceedings
against our company, nor are we involved as a plaintiff in any material
proceeding or pending litigation. There are no proceedings in which any of our
directors, officers or affiliates, or any registered or beneficial shareholder,
is an adverse party or has a material interest adverse to our interest.

ITEM 1A. RISK FACTORS.

An investment in our common stock involves a number of very
significant risks. You should carefully consider the following risks and
uncertainties in addition to other information in this report in evaluating our
company and its business before purchasing shares of our company's common stock.
Our business, operating results and financial condition could be seriously
harmed due to any of the following risks. You could lose all or part of your
investment due to any of these risks.

Risks Related to Our Company

Our independent auditors have expressed substantial doubt
about our ability to continue as a going concern.

We have generated minimal revenue from operations since our incorporation. During the nine month period ended November 30, 2010, we incurred a net loss of $661,331. From inception through November 30, 2010, we incurred an aggregate loss of $911,027. We anticipate that we will continue to incur operating expenses which will be offset to some degree by revenues from the sales of Granisol.  Unless we are able to grow the revenues from Granisol significantly, we may never reach a point where we have positive net income.  If we cannot substantially increase our revenues from sales of Granisol, we will continue to generate losses and will require additional funding to remain in business.  We estimate our average monthly expenses over the next 12 months to be approximately $350,000, including product development and general and administrative expenses, but excluding any additional product acquisition costs. On November 30, 2010, we had cash and cash equivalents of approximately $786,928. In order to fund our anticipated budget for the next 12 months, excluding additional product acquisition costs, we believe that we will need to raise approximately $2 million. This amount could increase if we encounter difficulties that we cannot anticipate at this time. We have traditionally raised our operating capital from the sale of equity securities but there can be no assurance that we will continue to be able to do so. If we cannot raise the money that we need in order to continue to operate our business, we will be forced to delay, scale back or eliminate some or all of our proposed operations. If any of these were to occur, there is a substantial risk that our business would fail.

These circumstances raise substantial doubt about our ability
to continue as a going concern, as described in the explanatory paragraph to our
independent auditors' report on our financial statements for the year ended
February 28, 2010, which are included in our annual report on Form 10-K filed on
May 5, 2010. Although our financial statements raise substantial doubt about our
ability to continue as a going concern, they do not reflect any adjustments that
might result if we are unable to continue our business. Our financial statements
contain additional note disclosure describing the circumstances that lead to
this disclosure by our independent auditors.

Our substantial debt and other financial obligations could
impair our financial condition and our ability to fulfill our debt obligations.
Any refinancing of this substantial debt could be at significantly higher
interest rates.

As of November 30, 2010, we had total debt of approximately
$258,600 (including accrued interest of approximately $8,600). Our substantial
indebtedness and other current financial obligations and any that we may become
a party to in the future could:

- impair our ability to obtain financing in the future for working capital,
  capital expenditures, acquisitions or general corporate purposes;

22

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- have a material adverse effect on us if we fail to comply with financial
  and affirmative and restrictive covenants in debt agreements and an event of
  default occurs as a result of a failure that is not cured or waived;
- require us to dedicate a substantial portion of our cash flow for interest
  payments on our indebtedness and other financial obligations, thereby reducing
  the availability of our cash flow to fund working capital and capital
  expenditures;
- limit our flexibility in planning for, or reacting to, changes in our
  business and the industry in which we operate; and
- place us at a competitive disadvantage compared to our competitors that
  have proportionally less debt.

If we are unable to meet our debt service obligations and other
financial obligations, we could be forced to restructure or refinance our
indebtedness and other financial transactions, seek additional equity capital or
sell our assets. We might then be unable to obtain such financing or capital or
sell our assets on satisfactory terms, if at all. Any refinancing of our
indebtedness could be at significantly higher interest rates, and/or incur
significant transaction fees.

We are an early-stage company with a limited operating
history, which may hinder our ability to successfully meet our objectives.

We are an early-stage company with only a limited operating
history upon which to base an evaluation of our current business and future
prospects. While we have recently acquired Granisol, our sales have been minimal
and, there can be no assurance that we will be successful in our efforts to
increase sales. As a result, the revenue and income potential of our business is
unproved. In addition, because of our limited operating history, we have limited
insight into trends that may emerge and affect our business. Errors may be made
in predicting and reacting to relevant business trends and we will be subject to
the risks, uncertainties and difficulties frequently encountered by early-stage
companies in evolving markets. We may not be able to successfully address any or
all of these risks and uncertainties. Failure to adequately do so could cause
our business, results of operations and financial condition to suffer.

Our CEO and CFO are employed elsewhere and their time and
effort will not be devoted to our company full-time.

Our CEO and CFO are each employed in other positions with other
companies. As a result, our company is and will continue to be managed on a
part-time basis. Our business could be adversely impacted by the lack of full
time management.

If we are unable to successfully recruit qualified
managerial and field personnel, we may not be able to continue our operations.

In order to successfully implement and manage our business
plan, we will depend upon, among other things, successfully recruiting qualified
managerial and field personnel having experience in the pharmaceutical industry.
Competition for qualified individuals is intense. We may not be able to find,
attract and retain qualified personnel on acceptable terms. If we are unable to
find, attract and retain qualified personnel with technical expertise, our
business operations could suffer.

Future growth could strain our resources, and if we are
unable to manage our growth, we may not be able to successfully implement our
business plan.

We hope to experience rapid growth in our operations, which
will place a significant strain on our management, administrative, operational
and financial infrastructure. Our future success will depend in part upon the
ability of our executive officers to manage growth effectively. This will
require that we hire and train additional personnel to manage our expanding
operations. In addition, we must continue to improve our operational, financial
and management controls and our reporting systems and procedures. If we fail to
successfully manage our growth, we may be unable to execute upon our business
plan.

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Risks Relating to the Pharmaceutical Business

If we are unable to successfully acquire, develop or
commercialize new products, our operating results will suffer.

Our future results of operations will depend to a significant
extent upon our ability to successfully acquire, develop and commercialize new
products in a timely manner. There are numerous difficulties in acquiring,
developing and commercializing new products, including:

- acquiring, developing, testing and manufacturing products in compliance
  with regulatory standards in a timely manner;
- failure to receive requisite regulatory approvals for such products in a
  timely manner or at all;
- acquiring, developing and commercializing a new product is time consuming,
  costly and subject to numerous factors, including legal actions brought by our
  competitors, that may delay or prevent the development and commercialization
  of new products;
- experiencing delays or unanticipated costs;
- experiencing delays as a result of limited resources at FDA or other
  regulatory agencies; and
- changing review and approval policies and standards at FDA and other
  regulatory agencies.

As a result of these and other difficulties, products in
development by us may or may not receive timely regulatory approvals, or
approvals at all, necessary for marketing by us or other third-party partners.
If any of our products are not timely approved or, when acquired or developed
and approved, cannot be successfully manufactured or timely commercialized, our
operating results could be adversely affected. We cannot guarantee that any
investment we make in developing products will be recouped, even if we are
successful in commercializing those products.

Our pharmaceutical expenditures may not result in
commercially successful products.

We cannot be sure our business expenditures will result in the
successful acquisition, development or launch of products that will prove to be
commercially successful or will improve the long-term profitability of our
business. If such business expenditures do not result in successful acquisition,
development or launch of commercially successful brand products our results of
operations and financial condition could be materially adversely affected.

Third parties may claim that we infringe their proprietary
rights and may prevent us from manufacturing and selling some of our products.

The manufacture, use and sale of new products that are the
subject of conflicting patent rights have been the subject of substantial
litigation in the pharmaceutical industry. These lawsuits relate to the validity
and infringement of patents or proprietary rights of third parties. Litigation
may be costly and time-consuming, and could divert the attention of our
management and technical personnel. In addition, if we infringe on the rights of
others, we could lose our right to develop, manufacture or market products or
could be required to pay monetary damages or royalties to license proprietary
rights from third parties. Although the parties to patent and intellectual
property disputes in the pharmaceutical industry have often settled their
disputes through licensing or similar arrangements, the costs associated with
these arrangements may be substantial and could include ongoing royalties.
Furthermore, we cannot be certain that the necessary licenses would be available
to us on commercially reasonable terms, or at all. As a result, an adverse
determination in a judicial or administrative proceeding or failure to obtain
necessary licenses could prevent us from manufacturing and selling a number of
our products, and could have a material adverse effect on our business, results
of operations, financial condition and cash flows.

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The loss of or inability to attract key personnel could
cause our business to suffer.

The success of our present and future operations will depend,
to a significant extent, upon the experience, abilities and continued services
of key personnel. We cannot assure you that we will be able to attract and
retain key personnel. Employment agreements with our senior executive do not
guarantee that our senior executive officers will remain employed by us for a
significant period of time, or at all. We do not carry key-employee life
insurance on any of our officers.

We may need to raise additional funds in the future which
may not be available on acceptable terms or at all.

We may consider issuing additional debt or equity securities in
the future to fund potential acquisitions or investments, to refinance existing
debt, or for general corporate purposes. If we issue equity or convertible debt
securities to raise additional funds, our existing stockholders may experience
dilution, and the new equity or debt securities may have rights, preferences and
privileges senior to those of our existing stockholders. If we incur additional
debt, it may increase our leverage relative to our earnings or to our equity
capitalization, requiring us to pay additional interest expenses. We may not be
able to market such issuances on favorable terms, or at all, in which case, we
may not be able to develop or enhance our products, execute our business plan,
take advantage of future opportunities, or respond to competitive pressures or
unanticipated customer requirements.

Extensive industry regulation has had, and will continue to
have, a significant impact on our business, especially our product development,
manufacturing and distribution capabilities.

All pharmaceutical companies are subject to extensive, complex,
costly and evolving government regulation. For the U.S., this is principally
administered by the FDA and to a lesser extent by the DEA and state government
agencies, as well as by varying regulatory agencies in foreign countries where
products or product candidates are being manufactured and/or marketed. The
Federal Food, Drug and Cosmetic Act, the Controlled Substances Act and other
federal statutes and regulations, and similar foreign statutes and regulations,
govern or influence the testing, manufacturing, packing, labeling, storing,
record keeping, safety, approval, advertising, promotion, sale and distribution
of our products.

Under these regulations, we may become subject to periodic
inspection of our facilities, procedures and operations and/or the testing of
our products by the FDA, the DEA and other authorities, which conduct periodic
inspections to confirm that we are in compliance with all applicable
regulations. In addition, the FDA and foreign regulatory agencies conduct
pre-approval and post-approval reviews and plant inspections to determine
whether our systems and processes are in compliance with cGMP and other
regulations. Following such inspections, the FDA or other agency may issue
observations, notices, citations and/or Warning Letters that could cause us to
modify certain activities identified during the inspection. FDA guidelines
specify that a Warning Letter is issued only for violations of "regulatory
significance" for which the failure to adequately and promptly achieve
correction may be expected to result in an enforcement action. We are required
to report adverse events associated with our products to FDA and other
regulatory authorities. Unexpected or serious health or safety concerns would
result in labeling changes, recalls, market withdrawals or other regulatory
actions.

The range of possible sanctions includes, among others, FDA
issuance of adverse publicity, product recalls or seizures, fines, total or
partial suspension of production and/or distribution, suspension of the FDA's
review of product applications, enforcement actions, injunctions, and civil or
criminal prosecution. Any such sanctions, if imposed, could have a material
adverse effect on our business, operating results, financial condition and cash
flows. Under certain circumstances, the FDA also has the authority to revoke
previously granted drug approvals. Similar sanctions as detailed above may be
available to the FDA under a consent decree, depending upon the actual terms of
such decree. If internal compliance programs do not meet regulatory agency
standards or if compliance is deemed deficient in any significant way, it could
materially harm our business.

The pharmaceutical industry is highly competitive.

The pharmaceutical industry has an intensely competitive
environment that will require an ongoing, extensive search for technological
innovations and the ability to market products effectively, including the
ability to communicate the effectiveness, safety and value of products to
healthcare professionals in private practice, group practices and MCOs. We are smaller than all of our competitors. Most of our
competitors have been in business for a longer period of time than us, have a
greater number of products on the market and have greater financial and other
resources than we do. Furthermore, recent trends in this industry are toward
further market consolidation of large drug companies into a smaller number of
very large entities, further concentrating financial, technical and market
strength and increasing competitive pressure in the industry. If we directly
compete with them for the same markets and/or products, their financial strength
could prevent us from capturing a profitable share of those markets. It is
possible that developments by our competitors will make any products or
technologies that we acquire noncompetitive or obsolete.

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Risks Relating to Our Common Stock

If we issue additional shares in the future, it will result
in the dilution of our existing shareholders.

Our articles of incorporation authorize the issuance of up to
150,000,000 shares of common stock with a par value of $0.0001 per share. Our
board of directors may choose to issue some or all of such shares to acquire one
or more products and to fund our overhead and general operating requirements.
The issuance of any such shares will reduce the book value per share and may
contribute to a reduction in the market price of the outstanding shares of our
common stock. If we issue any such additional shares, such issuance will reduce
the proportionate ownership and voting power of all current shareholders.
Further, such issuance may result in a change of control of our corporation.

Trading of our stock is restricted by the Securities
Exchange Commission's penny stock regulations, which may limit a stockholder's
ability to buy and sell our common stock.

The Securities and Exchange Commission has adopted regulations
which generally define "penny stock" to be any equity security that has a market
price (as defined) less than $5.00 per share or an exercise price of less than
$5.00 per share, subject to certain exceptions. Our securities are covered by
the penny stock rules, which impose additional sales practice requirements on
broker-dealers who sell to persons other than established customers and
"accredited investors". The term "accredited investor" refers generally to
institutions with assets in excess of $5,000,000 or individuals with a net worth
in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly
with their spouse. The penny stock rules require a broker-dealer, prior to a
transaction in a penny stock not otherwise exempt from the rules, to deliver a
standardized risk disclosure document in a form prepared by the Securities and
Exchange Commission, which provides information about penny stocks and the
nature and level of risks in the penny stock market. The broker-dealer also must
provide the customer with current bid and offer quotations for the penny stock,
the compensation of the broker-dealer and its salesperson in the transaction and
monthly account statements showing the market value of each penny stock held in
the customer's account. The bid and offer quotations, and the broker-dealer and
salesperson compensation information, must be given to the customer orally or in
writing prior to effecting the transaction and must be given to the customer in
writing before or with the customer's confirmation. In addition, the penny stock
rules require that prior to a transaction in a penny stock not otherwise exempt
from these rules, the broker-dealer must make a special written determination
that the penny stock is a suitable investment for the purchaser and receive the
purchaser's written agreement to the transaction. These disclosure requirements
may have the effect of reducing the level of trading activity in the secondary
market for the stock that is subject to these penny stock rules. Consequently,
these penny stock rules may affect the ability of broker-dealers to trade our
securities. We believe that the penny stock rules discourage investor interest
in and limit the marketability of our common stock.

FINRA sales practice requirements may also limit a
stockholder's ability to buy and sell our stock.

In addition to the "penny stock" rules described above, the
Financial Industry Regulatory Authority (known as "FINRA") has adopted rules
that require that in recommending an investment to a customer, a broker-dealer
must have reasonable grounds for believing that the investment is suitable for
that customer. Prior to recommending speculative low priced securities to their
non-institutional customers, broker-dealers must make reasonable efforts to
obtain information about the customer's financial status, tax status, investment
objectives and other information. Under interpretations of these rules, FINRA
believes that there is a high probability that speculative low priced securities
will not be suitable for at least some customers. FINRA requirements make it
more difficult for broker-dealers to recommend that their customers buy our
common stock, which may limit your ability to buy and sell our stock and have an
adverse effect on the market for our shares.

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Our common stock is illiquid and the price of our common
stock may be negatively impacted by factors which are unrelated to our
operations.

Although our common stock is currently listed for quotation on
the OTC Bulletin Board, trading through the OTC Bulletin Board is frequently
thin and highly volatile. There is no assurance that a sufficient market will
develop in our stock, in which case it could be difficult for shareholders to
sell their stock. The market price of our common stock could fluctuate
substantially due to a variety of factors, including market perception of our
ability to achieve our planned growth, quarterly operating results of our
competitors, trading volume in our common stock, changes in general conditions
in the economy and the financial markets or other developments affecting our
competitors or us. In addition, the stock market is subject to extreme price and
volume fluctuations. This volatility has had a significant effect on the market
price of securities issued by many companies for reasons unrelated to their
operating performance and could have the same effect on our common stock.

We do not intend to pay dividends on any investment in the
shares of stock of our company.

We have never paid any cash dividends and currently do not
intend to pay any dividends for the foreseeable future. Because we do not intend
to declare dividends, any gain on an investment in our company will need to come
through an increase in the stock's price. This may never happen and investors
may lose all of their investment in our company.

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

None

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None

ITEM 4. [REMOVED AND RESERVED].

ITEM 5. OTHER INFORMATION.

None

ITEM 6. EXHIBITS.

Exhibits required by Item 601 of Regulation S-K:

|No.  | Description                                                                                                                                                          
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3.1  | Articles of Incorporation (attached as an exhibit to our
      registration statement on Form 10-SB filed on September 8, 2006)                                      
|3.2  | Certificate of Change (attached as an exhibit to our
      current report on Form 8-K filed on September 15, 2008)                                                   
|3.3  | Articles of Merger (attached as an exhibit to our current
      report on Form 8-K filed on December 28, 2010)                                                       
|3.4  | Amended and Restated Bylaws (attached as an exhibit to
      our registration statement on Form 8-K filed on November 3, 2010)                                       
|10.1 | Form of Private Placement Subscription Agreement
      (attached as an exhibit to our current report on Form 8-K filed on
      November 6, 2008)                    
|10.2 | Form of Private Placement Subscription Agreement dated
      June 15, 2009 (attached as an exhibit to our quarterly report on Form 10-Q
      filed on June 16, 2009)
|10.3 | Form of promissory note dated June 15, 2009 (attached as
      an exhibit to our quarterly report on Form 10-Q filed on June 16, 2009)                               
|10.4 | Consulting Agreement with Cameron Durrant dated May 28,
      2010 (attached as an exhibit to our quarterly report on Form 10-Q filed on
      June 28, 2010)        
|10.5 | Letter of Intent with Cypress Pharmaceuticals Inc.
      (attached as an exhibit to our quarterly report on Form 10-Q filed on June
28, 2010)                        

27

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|No.   | Description                                                                                                                                                                                                                                                                                                                                      
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10.6  | Form of Private Placement Subscription Agreement
      (attached as an exhibit to our current report on Form 8-K filed on June
      17, 2010)                                                                                                                                                                                                   
|10.7  | Form of Private Placement Subscription Agreement
      (attached as an exhibit to our current report on Form 8-K filed on July 9,
      2010)                                                                                                                                                                                                    
|10.8  | Asset Purchase Agreement dated July 22, 2010 with Cypress
      Pharmaceuticals, Inc. (attached as an exhibit to our current report on
      Form 8-K filed on July 28, 2010) (portions of the exhibit have been
    omitted pursuant to a request for confidential treatment)                                                                   
|10.9  | Assignment and Assumption of Contract dated July 22, 2010
      with Cypress Pharmaceuticals, Inc. (attached as an exhibit to our current
      report on Form 8-K filed on July 28, 2010)                                                                                                                                                       
|10.10 | Consent to Assignment by Therapex and E-Z-EM Canada Inc.
      (attached as an exhibit to our current report on Form 8-K filed on July
      28, 2010)                                                                                                                                                                                           
|10.11 | Manufacturing and Supply Agreement dated July 22 2010
      between Cypress Pharmaceuticals, Inc. and Therapex, a division of E-Z-EM
      Canada Inc. (attached as an exhibit to our current report on Form 8-K
      filed on July 28, 2010) (portions of the exhibit have been omitted
      pursuant to a request for confidential treatment)
|10.12 | Form of Private Placement Subscription Agreement
      (attached as an exhibit to our current report on Form 8-K filed on July
      29, 2010)                                                                                                                                                                                                   
|10.13 | Form of Promissory Note dated July 26, 2010 (attached as
    an exhibit to our current report on Form 8-K filed on July 29, 2010)                                                                                                                                                                                                                
|10.14 | Employment Agreement effective July 1, 2010 with David L.
      Tousley (attached as an exhibit to our current report on Form 8-K filed on
      September 16, 2010)                                                                                                                                                                             
|10.15 | Employment Agreement effective July 1, 2010 with Jorge
      Rodriguez (attached as an exhibit to our current report on Form 8-K filed
      on September 16, 2010)                                                                                                                                                                              
|10.16 | Consulting Agreement effective July 1, 2010 with Cameron
      Durrant (attached as an exhibit to our current report on Form 8-K filed on
      September 28, 2010)                                                                                                                                                                              
|10.17 | Form of Private Placement Subscription Agreement
      (attached as an exhibit to our current report on Form 8-K filed on
      September 28, 2010)                                                                                                                                                                                              
|10.18 | Form of Promissory Note dated September 16, 2010
      (attached as an exhibit to our current report on Form 8-K filed on
      September 28, 2010)                                                                                                                                                                                              
|10.19 | Termination Agreement effective July 1, 2010 with Cameron
      Durrant (attached as an exhibit to our current report on Form 8-K filed on
      September 28, 2010)                                                                                                                                                                             
|10.20 | Management Stock Agreement made effective July 1, 2010
      with Cameron Durrant (attached as an exhibit to our current report on Form
      8-K filed on November 3, 2010)                                                                                                                                                                     
|10.21 | Management Stock Agreement made effective July 1, 2010
      with David Tousley (attached as an exhibit to our current report on Form
      8-K filed on November 3, 2010)                                                                                                                                                                       
|10.22 | Form of Private Placement Subscription Agreement
      (attached as an exhibit to our current report on Form 8-K filed on
      November 3, 2010)                                                                                                                                                                                                
|10.23 | Form of Private Placement Subscription Agreement
      (attached as an exhibit to our current report on Form 8-K filed on
      December 2, 2010)                                                                                                                                                                                                
|10.24 | Form of Shares for Debt Subscription Agreement (attached
      as an exhibit to our current report on Form 8-K filed on December 2, 2010)                                                                                                                                                                                                        
|31.1* | Certification of Cameron Durrant Pursuant to Section 302
    of the Sarbanes-Oxley Act Of 2002                                                                                                                                                                                                                                                   
|31.2* | Certification of David L. Tousley Pursuant to Section 302
      of the Sarbanes-Oxley Act Of 2002                                                                                                                                                                                                                                                
|32.1* | Certification of Cameron Durrant Pursuant to Section 906
      of the Sarbanes-Oxley Act Of 2002                                                                                                                                                                                                                                                 
|32.2* | Certification of David L. Tousley Pursuant to Section 906
of the Sarbanes-Oxley Act Of 2002                                                                                                                                                                                                                                                      

* Filed herewith.

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SIGNATURES

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

PEDIATRX INC.

/s/ Cameron DurrantCameron Durrant
President, Chief Executive Officer and Director (Principal Executive
Officer)

Date: January 13, 2011



/s/ David L. TousleyDavid L. Tousley
Secretary, Treasurer, Chief Financial Officer and Director (Principal
Financial Officer and Principal Accounting Officer)

Date: January 13, 2011

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