U. S. Securities and Exchange Commission
                    Washington, D. C. 20549

                          FORM 10-KSB

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                            OF 1934

          For the fiscal year ended December 31, 2005

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                          ACT OF 1934

For the transition period from _________________ to __________________

                 Commission File No. 000-32393

                          eGene, Inc.
                          -----------
         (Name of Small Business Issuer in its Charter)

           NEVADA                                    87-0645507
           ------                                    ----------
(State or Other Jurisdiction of              (I.R.S. Employer I.D. No.)
 incorporation or organization

                          17841 Fitch
                        Irvine, CA 92614
                        ----------------
             (Address of Principal Executive Offices)

           Issuer's Telephone Number: (949) 250-8686

   Securities registered under Section 12(b) of the Act: None

     Securities registered under Section 12(g) of the Act:

                Common Stock, $0.001 par value

Check whether the Registrant (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange
Act") during the past 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.
(1) Yes X (2) Yes X

Check if there is no disclosure of delinquent filers in response to Item 405
of Regulation S-B contained in this form, and no disclosure will be contained,
to the best of the Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [ ]

The Registrant's revenues for its most recent fiscal year (December 31, 2005)
were: $1,293,839.

Indicate by check mark whether the Registrant is a shell company (as defined
in Rule 12b-2 of the Exchange Act). No [X]

The aggregate market value of the voting stock held by non-affiliates
(14,363,211 shares) of the Registrant based on the last sale price ($1.47) of
such stock as reported by the OTCBB of the National Association of Securities
Dealers, Inc. on March 28, 2006, was approximately $21,113,920.

The number of shares outstanding of the Registrant's common stock, as of March
24, 2006, was 17,411,344 (actual); however, assuming all BioCal (as defined
herein) stockholders who did not perfect dissenters' rights under Biocal's
merger with and into our wholly-owned subsidiary submit their BioCal shares
for exchange under the merger, then there will be 18,117,517 outstanding
shares.

Transitional Small Business Disclosure Format: Yes [X]

                Documents Incorporated by Reference

A description of "Documents Incorporated by Reference" is contained in the
Exhibit Index, Part III, Item 13, of this Annual Report.

                           eGene, Inc.
                           FORM 10-KSB
           For the Fiscal Year Ended December 31, 2005

                           TABLE OF CONTENTS

                                                                     Page

                            PART I
Item 1.        Business
Item 2.        Properties
Item 3.        Legal Proceedings
Item 4.        Submission of Matters to a Vote of Security Holders

                           PART II
Item 5.        Market for Registrant's Common Stock, Related
               Stockholder Matters and Issuer Purchases of Equity
               Securities
Item 6.        Management's Discussion and Analysis of Financial
               Condition and Results of Operations
Item 7.        Financial Statements and Supplementary Data
Item 8.        Changes in and Disagreements with Accountants on
               Accounting and Financial Disclosure
Item 8a.       Controls and Procedures
Item 8b.       Other Information

                           PART III
Item 9.        Directors and Executive Officers of the Registrant
Item 10.       Executive Compensation
Item 11.       Security Ownership of Certain Beneficial Owners and
               Management and Related Stockholder Matters
Item 12.       Certain Relationships and Related Transactions
Item 13.       Exhibits and Reports on Form 8-K
Item 14.       Principal Accountant Fees and Services.
Item 15.       Exhibits, Financial Statement Schedules and Reports on
               Form 8-K
Signatures
Ex- .. Consent of Mantyla McReynolds, CPA's
Ex- .. Certification of CEO
Ex- .. Certification of CFO
Ex- .. Certification pursuant to Section 906 CEO
Ex- .. Certification pursuant to Section 906 CFO

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-KSB contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, and Section 21E of
the Securities Exchange Act of 1934. Statements are forward-looking statements
with respect to our goals, plan objectives, intentions, expectations,
financial condition, results of operations, future performance and business,
including, without limitation, (I) our ability to raise capital, and (ii)
statements preceded by, followed by or that include the words "may", "would",
"could", "should", "expects", "projects", "anticipates", "believes",
"estimates", "plans", "intends", "targets" or similar expressions. Forward-
looking statements involve inherent risks and uncertainties, and important
factors (many of which are beyond our Company's control) that could cause
actual results to differ materially from those set forth in the forward-
looking statements, including the following, general economic or industry
conditions, nationally and/or in the communities in which we conduct business,
changes in the interest rate environment, legislation or regulatory
requirements, conditions of the securities markets, our ability to raise
capital, changes in accounting principles, policies or guidelines, financial
or political instability, acts of war or terrorism, other economic,
competitive, governmental, regulatory and technical factors affecting our
operations, products, services and prices. These statements are only
predictions and involve known and unknown risks, uncertainties and other
factors, including the risks outlined under "Factors Affecting Operating
Results" contained in Part II, Item 7, "Management's Discussion and Analysis
of Financial Condition and Results of Operations," that may cause our actual
results, levels of activity, performance or achievements to be materially
different from any future results, levels or activity, performance or
achievements expressed or implied by these forward-looking statements.

Accordingly, results actually achieved may differ materially from expected
results in these statements. Forward-looking statements speak only as of the
date they are made. We do not undertake, and specifically disclaims, any
obligation to update any forward-looking statements to reflect events or
circumstances occurring after the date of such statements.

PART I

Item 1. Business.

Overview.

We are an emerging biotechnology company that utilizes the core technologies
of capillary electrophoresis, microfluidics, advanced reagents liquid handling
and automation to create a novel DNA/RNA analysis system for biological
materials and life sciences testing. Our current operations resulted from a
merger of BioCal Technology, Inc., a private California biotechnology
operating company ("BioCal"), with and into our wholly-owned subsidiary in
July of 2004. Our objective and strategy is to provide new, effective and
superior biological testing tools for improved decision making and deliver
applications to these industries that we believe will have immediate
commercial relevance.

Our Company's first product, the HDA-GT12 genetic analyzer, is a revolutionary
tool for the multi-billion dollar genetic analysis market. The HDA-GT12, which
is short for "high performance DNA analyzer for genotyping on 12 channels,"
replaces time-consuming slab gel electrophoresis methods used to separate
segments of DNA. Slab gel electrophoresis, a technology that was developed
more than 20 years ago and has not undergone a major facelift since its
inception, requires extensive manual manipulation and hours or days of tedious
procedures that are prone to human errors. The slab gel electrophoresis method
also lacks high throughput capabilities, detection sensitivity, and
resolution. In contrast, the HDA-GT12 genetic analyzer using capillary
electrophoresis-based technology produces highly accurate results in minutes.
DNA analysis is the key to understanding and combating certain genetic
ailments found in humans, animals and agriculture. The immediate impact of
certain genetic modifications (mutations) is now visible in everyday life.
Outbreaks of diseases such as the avian flu and GMO food products have lead to
a heightened public awareness of genetic modification/mutations affecting
global health and commerce. The introduction of eGene's cost-effective and
automated genetic analyzer allows government regulators, agricultural and
livestock food safety managers, and Point of Care clinicians/doctors to
effectively monitor genetic-level mutations, potentially saving lives, goods
and money in a timely and responsible manner.

Technology and Products.

eGene's HDA-GT12 genetic analyzer is a cost-effective system for high
efficiency DNA/RNA separation. The eGene system uses patented fluorescence
multiplexed detection made possible by the Company's proprietary multi-channel
capillary gel-cartridge with an integrated unique gel-matrix chemistry
formulation to identify the different base-pairs within the analyzed sample.
The multi-channel capillary cartridge allows the automated system to analyze
multiple samples of DNA concurrently.

The following are key features and benefits of the HDA-GT12 genetic analyzer:

     *    It includes testing systems, consumable gel cartridges and
          software as a turn key solution for genetic analysis.

     *    It can hold up to 96 samples in a single sample plate for
          automated analysis.

     *    It uses the capillary electrophoresis approach as a reliable
          method of analyzing multiple DNA samples in an efficient manner.

     *    It was developed for rapid DNA/RNA separation and detection as a
          timely alternative for the genetic analysis market.

     *    It integrates multiple labor intensive manual operations into a
          single automated process to reduce human errors.

     *    It generates high quality digital data.

     *    It provides high resolution and high sensitivity detection for
          more accurate and consistent data.

     *    It is a small sized portable desktop system, which is durable and
          transportable.

     *    It is an affordable system and has low testing costs compared to
          conventional capillary electrophoresis instruments.

We believe our HDA systems can accelerate experiments and expand individual
researcher capability, as compared to molecular separations such as
electrophoresis which may take hours using conventional equipment. An example
of Down syndrome genetic analysis (Scientific Publication in Analytical
Biochemistry Vol. 304, May 2005) demonstrates that eGene's system can analyze
12 DNA samples in less than 3 minutes, much faster than the current 3 to 4
hours of total processing time required for conventional lab gel
electrophoresis methods. Management also intends to continue vigorously
developing new, lower cost versions of genotyping systems with enhanced
features that address existing or emerging customer needs for different
applications.

Sales Channels.

We sell our products through three channels: directly to customers, indirectly
through our international network of distributors; and through our (at this
stage, early and developing) original equipment manufacturer ("OEM") channels.
Through these channels, we sell complete systems solutions, developed by us,
to end customers. By using direct and indirect distribution as well as OEM
channels to maximize penetration of our products and technologies into the
marketplace, we seek to position eGene, Inc. as a leader in the low-cost
genomics testing tools market. We expect to derive a significant portion of
revenue from aftermarket products, including consumable and accessory
products.

Partnerships.

An important element of our growth strategy will be the formation of strategic
collaborations with other life science technology providers and our customers.
We believe these relationships will allow us to enhance our future market
position by increasing our research and development capabilities. Under these
arrangements, we expect our collaborators to typically fund a portion of our
development costs for a particular product and work with our research and
development team to develop new products that meet the needs of our customer
base.

Backlog.

We define backlog as the total value of open orders for products and services
that management has concluded have a reasonable probability of being delivered
over the subsequent 12 month period. For a portion of our sales, we
manufacture products based upon our forecast of customer demand and maintain
inventories in advance of receipt of orders from our customers. Our products
are generally shipped within 30 days of purchase order receipt. As a result,
we do not believe that the amount of backlog at any particular date is
indicative of our future level of sales in any succeeding quarter.
Consequently, we are dependent on obtaining orders for products to be shipped
in the same quarter that the order is received. Accordingly, we have limited
visibility of future product shipments, and our results of operations are
subject to variability from quarter to quarter.

Research and Development.

We are prioritizing our current research and development projects that we
believe have the greatest potential commercial value. We are also pursuing a
shared investment risk approach to R&D in which we have our customers or
potential customers share in the expense of an R&D project. Our product
development efforts are currently principally focused on new applications and
capabilities for our existing instruments and the development of new
instrument platforms.

We expect our research and development spending to increase at a slower rate
than increases in revenue in the future as we focus on those opportunities
with maximum commercial viability and share the funding of R&D programs with
other partners if possible and our own commercial growth.

Manufacturing.

We manufacture some subassemblies ourselves and other components are made to
our specifications by outside vendors. Our top suppliers are tracked using
procedures to insure the quality and on-time delivery of parts and
subassemblies. The subassemblies are inspected and tested before being placed
into final product assemblies. Our final products are then put through an
extensive testing cycle before being released for shipment.

We manufacture all of our products in Irvine, California. We intend to
continue to invest in our infrastructure for the manufacture and distribution
of our products and to continue to work with third parties for outsourcing
opportunities for our products.

Employees.

As of December 31, 2005, we had a total of 10 full time employees and one
contractor. We have been outsourcing certain accounting, legal and
distribution functions. Research and development, final product assembly
personnel and marketing and administration compose the personnel pool.
Increase in personnel is expected to be commensurate with expected growth in
revenue and associated operations.

Suppliers.

Currently we do not experience delays or shortages caused by suppliers. Our
management believes that alternative sources can be obtained at the same
prices and on substantially the same terms and conditions, if necessary, for
most sole and limited source parts. We maintain only a limited number of long-
term supply agreements with our suppliers. However, our reliance on a limited
group of suppliers involves several risks, including that:

     *    we may be unable to obtain an adequate supply of required
          components;
     *    we may have reduced control over pricing and the timely delivery
          of components and subassemblies; and
     *    suppliers may be unable to develop technologically advanced
          products to support our growth and development of new systems.

If we are forced to seek alternative sources of supply or to manufacture such
components or subassemblies internally, we may be forced to delay our
productions or redesign company systems, which may prevent us from shipping
our systems to customers on a timely basis.

Competitive Business Conditions.

While there are several other vendors that produce DNA analyzers for
commercial use, we believe that the HDA-GT12 has a unique market position with
efficiency, timeliness and decreased costs.

However, we may encounter some competition from a number of life science tools
companies in the areas of high-throughput screening, liquid handling and bio-
separations analysis. In order to compete against vendors of conventional
products, we will need to demonstrate the advantages of our core technologies
of capillary electrophoresis, reagents, microfluidics, liquid handling and
automation products over alternative established technologies and products. We
will also need to demonstrate the potential economic value of Company products
relative to these conventional technologies and products. Our future success
will depend in large part on our ability to establish and maintain a
competitive position in these and future technologies. Rapid technological
development may result in our products or technologies becoming obsolete.
Products offered by us may be made obsolete either by less expensive or more
effective products based on similar or other technologies.

Some of the companies that provide products which may be optimized for
genotyping applications include Applied Biosystems, Agilent, Amersham
Biosciences, Beckman Coulter, Bio-Rad Laboratories, PerkinElmer and Tecan. In
many instances, our competitors have or will have substantially greater
financial, technical, research and other resources and larger, more
established marketing, sales, distribution and service organizations than we
do. Moreover, competitors may have greater name recognition than we do, and
may offer discounts as a competitive tactic. We cannot assure that our
competitors will not succeed in developing or marketing technologies or
products that are more effective or commercially more attractive than our
products, or that would render our technologies and products obsolete. Also,
we may not have the financial resources, technical expertise or marketing,
distribution or support capabilities to compete successfully in the future.
Our success will depend in large part on our ability to maintain a competitive
position with our technologies.

Intellectual Property.

Key to our business strategy is the development of an intellectual property
portfolio. Consistent with this strategy, we are endeavoring to protect our
patent portfolio as appropriate. In addition to patents, we rely on a
combination of trade secrets, copyright and trademark laws, non-disclosure
agreements and other contractual provisions and technical measures to protect
our intellectual property rights. We seek patent protection on our system
technologies. These patents and applications are directed to various areas
which we believe are valuable to our business, including among others:

     *    6 issued patents in USA
          o    US patent 6,529,275 (March 2003) Optical detection in bio-
               separation device using a widened detection zone
          o    US patent 6,645,718 (November 2003) DNA sample collection
               for identification
          o    US patent 6,828,567 (December 2004) Optical detection in a
               multi-channel bio-separation system
          o    US patent 6,870,165 (May 2005) Multi-color multiplexed
               analysis in a bio-separation system
          o    US patent 6,929,779 (August 2005) Optical detection in bio-
               separation device using axial radiation output
          o    US patent 6,932,940 (August 2005) Optical detection in bio-
               separation device using axial radiation input
     *    1 international patent issued in Taiwan
          o    Taiwan patent I243242 (November 2005) Optical detection in a
               multi-channel bio-separation system
     *    6 patents pending

Our Company has received confirmation from the China Patent Office of its
decision to grant a patent for "Optical detection in a multi-channel bio-
separation system."

We also rely upon copyright protection, trade secrets, know-how, continuing
technological innovation and licensing opportunities to develop and maintain
our competitive position. Our success will depend in part on our ability to
obtain patent protection for our products and processes, to preserve our
copyrights and trade secrets and to operate without infringing the
proprietary rights of third parties. A failure to maintain some or all of the
rights to these technologies could seriously harm our business.

Access to Certain Public Information.

We file or furnish electronically with the Securities and Exchange Commission
(or the "SEC") our annual reports on Form 10-KSB, quarterly reports on Form
10-QSB, current reports on Form 8-K and amendments to those reports pursuant
to Section 13(a) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). The public may read or copy any materials we file with the
SEC at the SEC's Public Reference Room at 100 F Street, N.E., Washington, DC
20549. The public may obtain information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an
Internet site that contains reports, proxy and information statements and
other filings that contain information regarding companies that file
electronically with the SEC, including our Company. The address of that
website is http://www.sec.gov.

Environmental Matters.

We believe that we are currently in compliance with all applicable
environmental permits and applicable environmental laws. Any expenditure
necessitated by changes in law and permitting requirements cannot be predicted
at this time.

Reporting Obligations.

Section 14(a) of the Exchange Act requires all companies with securities
registered pursuant to Section 12(g) of the Exchange Act to comply with the
rules and regulations of the Securities and Exchange Commission regarding
proxy solicitations, as outlined in Regulation 14A. Matters submitted to
stockholders of our Company at a special or annual meeting thereof or pursuant
to a written consent will require our Company to provide our stockholders with
the information outlined in Schedules 14A or 14C of Regulation 14; preliminary
copies of this information must be submitted to the Securities and Exchange
Commission at least 10 days prior to the date that definitive copies of this
information are forwarded to our stockholders.

We are also required to file annual reports on Form 10-KSB and quarterly
reports on Form 10-QSB with the Securities Exchange Commission on a regular
basis, and will be required to timely disclose certain material events (e.g.,
changes in corporate control; acquisitions or dispositions of a significant
amount of assets other than in the ordinary course of business; and
bankruptcy) in a current report on Form 8-K.

Effect of Existing or Probable Governmental Regulations on Business.

The following are applicable to us:

Sarbanes-Oxley Act.

On July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act of
2002 (the "Sarbanes-Oxley Act"). The Sarbanes-Oxley Act imposes a wide variety
of new regulatory requirements on publicly-held companies and their insiders.
Many of these requirements will affect us. For example:

* Our chief executive officer and chief financial officer must now certify the
accuracy of all of our periodic reports that contain financial statements;

* Our periodic reports must disclose our conclusions about the effectiveness
of our disclosure controls and procedures; and

* We may not make any loan to any director or executive officer and we may not
materially modify any existing loans.

The Sarbanes-Oxley Act has required us to review our current procedures and
policies to determine whether they comply with the Sarbanes-Oxley Act and the
new regulations promulgated thereunder. We will continue to monitor our
compliance with all future regulations that are adopted under the Sarbanes-
Oxley Act and will take whatever actions are necessary to ensure that we are
in compliance.

Penny Stock.

Our common stock is "penny stock" as defined in Rule 3a51-1 of the Securities
and Exchange Commission. Penny stocks are stocks:

* with a price of less than five dollars per share;

* that are not traded on a "recognized" national exchange;

* whose prices are not quoted on the NASDAQ automated quotation system; or

* in issuers with net tangible assets less than $2,000,000, if the issuer has
been in continuous operation for at least three years, or $5,000,000, if in
continuous operation for less than three years, or with average revenues of
less than $6,000,000 for the last three years.

Section 15(g) of the Exchange Act and Rule 15g-2 of the Securities and
Exchange Commission require broker/dealers dealing in penny stocks to provide
potential investors with a document disclosing the risks of penny stocks and
to obtain a manually signed and dated written receipt of the document before
making any transaction in a penny stock for the investor's account. You are
urged to obtain and read this disclosure carefully before purchasing any of
our shares.

Rule 15g-9 of the Securities and Exchange Commission requires broker/dealers
in penny stocks to approve the account of any investor for transactions in
these stocks before selling any penny stock to that investor.
This procedure requires the broker/dealer to:

* get information about the investor's financial situation, investment
experience and investment goals;

* reasonably determine, based on that information, that transactions in penny
stocks are suitable for the investor and that the investor can evaluate the
risks of penny stock transactions;

* provide the investor with a written statement setting forth the basis on
which the broker/dealer made his or her determination; and

* receive a signed and dated copy of the statement from the investor,
confirming that it accurately reflects the investors' financial situation,
investment experience and investment goals.

Compliance with these requirements may make it harder for our stockholders to
resell their shares.

Small Business Issuer.

The integrated disclosure system for small business issuers adopted by the
Securities and Exchange Commission in Release No. 34-30968 and effective as of
August 13, 1992, substantially modified the information and financial
requirements of a "Small Business Issuer," defined to be an issuer that has
revenues of less than $25,000,000; is a U.S. or Canadian issuer; is not an
investment company; and if a majority-owned subsidiary, the parent is also a
small business issuer. We are deemed to be a "small business issuer."

The Securities and Exchange Commission, state securities commissions and the
North American Securities Administrators Association, Inc. ("NASAA") have
expressed an interest in adopting policies that will streamline the
registration process and make it easier for a small business issuer to have
access to the public capital markets.

Other Business Risks.

In addition to the risks to our business associated with suppliers,
competition and intellectual property discussed above, our business is subject
to a number of other significant risks, including the risks that our products
may not achieve wide market acceptance. These and other risks that may cause
our actual results, financial performance or achievements to be materially
different from our present expectations are discussed in more detail below
under "Risk Factors Affecting Operating Results" contained in Part II, Item 6,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations."

Item 2. Properties.

Our headquarters are located in Irvine, California, where we occupy one leased
facility totaling approximately 8,000 square feet which houses research and
development, marketing, final assembly of product, warehousing and
administration. The current monthly lease is $ 7,469. The lease will expire in
2009 unless we exercise our option to extend the lease. Estimated space
allocation in our location is approximately as follows: laboratories, 1,500
square feet; Office space, including marketing, sales, engineering and
administration, 2,500 square feet; manufacturing, receiving, shipping and
warehousing, 3,500 square feet.

Item 3. Legal Proceedings.

There are no material legal proceedings pending against or involving us; and
none of our directors, executive officers or 10% stockholders is party to any
action adverse to us.

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

No matter was submitted to a vote of our security holders during the fourth
quarter of 2005, or otherwise during 2005.

PART II

Item 5. Market for Common Equity, Related Stockholder Matters and Small
Business Purchases of Equity Securities

Our shares of common stock have been traded on the OTC Bulletin Board (the
"OTCBB") since quarter ended December 31, 2004, under the symbol "EGEI". The
following are the high and low bid and asked quotations on our common stock on
the OTCBB during the periods indicated:

Market Prices and Bid Information for Common Stock.
                                               Bid
                                               ---
Quarter Ended                     High                   Low
-------------                     ----                   ---
January 1, 2004
through
March 31, 2004                    $.02                   $.02

April 1, 2004
through
June 30, 2004                     $.02                   $.02

July 1, 2004
Through
September 30, 2004               $1.05                   $.02

October 1, 2004
through
December 31, 2004                $1.10                   $.30

January 1, 2005
through
March 31, 2005                   $1.15                   $.51

April 1, 2005
through
June 30, 2005                    $1.15                   $.25

July 1, 2005
Through
September 30, 2005                $.30                   $.13

October 1, 2005
through
December 31, 2005                 $.41                   $.17

This information was obtained from the National Association of Securities
Dealers, Inc. or other qualified interdealer quotation medium.  The foregoing
quotations represent prices between dealers and do not include retail markup,
markdown or commission.  They do not represent actual transactions and have
not been adjusted for stock dividends or splits.

Holders.

As of March 24, 2006, there were approximately 1,430 holders of record of our
common stock.

Dividends.

We have not declared or paid any dividends with respect to our common stock
during the past two years. We currently expect to retain future earnings, if
any, for use in the operation and expansion of our business. Although we have
no restrictions on payment of dividends, we do not anticipate paying any cash
dividends in the foreseeable future.

Equity Compensation Plan Information.

We adopted a Stock Option Plan in 2004 for 2,000,000 shares maximum, in order
to attract and retain key employees and to provide staff with equity
incentives in order to promote our financial success. In the event our
outstanding shares are changed by a stock dividend, split or other
recapitalization or similar event, such options shall be proportionately
adjusted.


                                     Options
                                     -------

                                              Weighted
                                              Average
                                              Exercise
             2004              Shares         Price

Granted                        200,000        $  0.05
Exercised                      211,667           0.05
Forfeited/expires               25,000           0.05
Outstanding at December 31   1,578,475           0.05
Exercisable                  1,094,675           0.05

                                     Options
                                     -------

                                              Weighted
                                              Average
                                              Exercise
             2004              Shares         Price

Granted                      1,000,696        $  0.05
Exercised                    1,641,942           0.05
Forfeited/expires               40,000           0.05
Outstanding at December 31   1,622,642           0.05
Exercisable                    902,293           0.05


Recent Sales of Unregistered Securities; Use of Proceeds from Registered
Securities.

Sales of Restricted Securities.

1. 10,136,852 shares of our common stock that comprised "restricted
securities" and 821,975 options to purchase common stock under our merger with
BioCal effective on July 14, 2004 were issued as of that date.

2. Effective July 14, 2004, pursuant to the offer and sale of Units at a price
of $1.00 per share, with each Unit consisting of one share of our common stock
that constituted "restricted securities" and one warrant to acquire one-half
of one additional share that also constituted "restricted securities" of our
common stock at an exercise price of $0.05 per share, 1,657,500 Units were
sold consisting of 1,657,500 shares of common stock and 828,750 warrants.  All
of these warrants have been exercised.

3. We issued to principals, consultants and employees of MBC Global LLC, an
Illinois limited liability company and a financial advisor to us, warrants to
purchase 2,075,000 shares of our common stock at an exercise price of $0.05
per share.  These warrants were also exercised as of July 14, 2004.

4. We issued an aggregate of 103,333 shares of common stock on the exercise of
options that were granted to one member of management on January 31, 2005.

5. We issued an aggregate of 11,667 shares of common stock on the exercise of
options that were granted to one employee on March 17, 2005.

6. We issued an aggregate of 96,667 shares of common stock on the exercise of
options that were granted to one member of management on March 21, 2005.

7. Effective November 30, 2005, pursuant to the offer and sale of Units at a
price of $0.30 per share, with each Unit consisting of one share of our common
stock that constituted "restricted securities" and one warrant to acquire one
additional share that also constituted "restricted securities" of our common
stock at an exercise price of $0.45 per share, 2,333,332 Units were sold
consisting of 2,333,332 shares of common stock and 2,333,332 warrants. All of
these warrants have not been exercised.

8. Effective December 23, 2005, pursuant to the offer and sale of Units at a
price of $0.30 per share, with each Unit consisting of one share of our common
stock that constituted "restricted securities" and one warrant to acquire one
additional share that also constituted "restricted securities" of our common
stock at an exercise price of $0.45 per share, 160,000 Units were sold
consisting of 160,000 shares of common stock and 160,000 warrants. All of
these warrants have not been exercised.

We issued all of these securities to persons who were either "accredited
investors," or "sophisticated investors" who, by reason of education, business
acumen, experience or other factors, were fully capable of evaluating the
risks and merits of an investment in our Company; and each had prior access to
all material information about us. We believe that the offer and sale of these
securities were exempt from the registration requirements of the Securities
Act, pursuant to Sections 4(2) and 4(6) thereof, and Rule 506 of Regulation D
of the Securities and Exchange Commission and from various similar state
exemptions.

Use of Proceeds of Registered Securities.

There were no proceeds received during the calendar year ended December 31,
2005, from the sale of registered securities.

Purchases of Equity Securities by Us and Affiliated Purchasers.

There were no purchases of our equity securities by us or any affiliated
purchasers during the calendar year ended December 31, 2005.

Item 6. Management's Discussion and Analysis of Financial Condition and
Results of Operations.

The following discussion and analysis should be read with "Selected Financial
Data" and our financial statements and notes included elsewhere in this Annual
Report. The discussion in this Annual Report contains forward-looking
statements that involve risks and uncertainties, such as statements of our
plans, objectives, expectations and intentions. The cautionary statements made
in this Annual Report should be read as applying to all related forward-
looking statements wherever they appear in this Annual Report. Our actual
results could differ materially from those discussed here. Factors that could
cause or contribute to these differences include those discussed in "Factors
Affecting Operating Results" below as well as those discussed elsewhere.

Statements made in this Annual Report which are not purely historical are
forward-looking statements with respect to our goals, plan objectives,
intentions, expectations, financial condition, results of operations, future
performance and business, including, without limitation, (I) our ability to
raise capital, and (ii) statements preceded by, followed by or that include
the words "may", "would", "could", "should", "expects", "projects",
"anticipates", "believes", "estimates", "plans", "intends", "targets" or
similar expressions. Forward-looking statements involve inherent risks and
uncertainties, and important factors (many of which are beyond our Company's
control) that could cause actual results to differ materially from those set
forth in the forward-looking statements, including the following, general
economic or industry conditions, nationally and/or in the communities in which
we conduct business, changes in the interest rate environment, legislation or
regulatory requirements, conditions of the securities markets, our ability to
raise capital, changes in accounting principles, policies or guidelines,
financial or political instability, acts of war or terrorism, other economic,
competitive, governmental, regulatory and technical factors affecting our
operations, products, services and prices.

Accordingly, results actually achieved may differ materially from expected
results in these statements. Forward-looking statements speak only as of the
date they are made. We do not undertake, and specifically disclaims, any
obligation to update any forward-looking statements to reflect events or
circumstances occurring after the date of such statements.

The following discussion and analysis is based upon our financial statements,
which have been prepared in accordance with accounting principles generally
accepted in the United States.

Overview.

We are an emerging biotechnology company that utilizes the core technologies
of capillary electrophoresis, microfluidics, advanced reagents liquid handling
and automation to create a novel DNA/RNA analysis system for biological
materials and life sciences testing. Our current operations resulted from a
merger of BioCal Technology, Inc., a private California biotechnology
operating company ("BioCal"), with and into our wholly-owned subsidiary in
July of 2004. Our objective and strategy is to provide new, effective and
superior biological testing tools for improved decision making and deliver
applications to these industries that we believe will have immediate
commercial relevance.

Our Company's main product, the HDA-GT12 genetic analyzer, is a revolutionary
tool for the multi-billion dollar genetic analysis market. The HDA-GT12
genetic analyzer replaces the time-consuming slab gel electrophoresis method
used to separate segments of DNA. Slab gel electrophoresis, a technology that
was developed more than 20 years ago and has not undergone a major facelift
since its inception, requires extensive manual manipulation and hours or days
of tedious procedures that are prone to human error. The slab gel
electrophoresis method also lacks high throughput capabilities, detection
sensitivity, and resolution. In contrast, the HDA-GT12 genetic analyzer using
capillary electrophoresis-based technology produces highly accurate results in
minutes.

DNA analysis is the key to understanding and combating certain genetic
ailments found in humans, animals, and agriculture. The immediate impact of
certain genetic modifications (mutations) is now visible in everyday life.
Outbreaks of diseases such as the avian flu and GMO food products have lead to
a heightened public awareness of genetic modification/mutations that affect
global health and commerce. The introduction of eGene's cost-effective and
automated genetic analyzer allows government regulators, agricultural and
livestock food safety managers, and Point of Care clinicians/doctors to
effectively monitor genetic-level mutations, potentially saving lives, goods,
and money in a timely and responsible manner.

The HDA-GT12 system is designed to detect, quantify, identify and characterize
biological organisms. It automates the routine and non-routine laboratory and
industrial procedures that are reactions to the introduction of new production
and product developments such as: quality control; genetic identity;
paternity; bioterrorism; pathogen detection; and drug monitoring. Our
management believes that our products have a strong potential to be used
commercially. The HDA-GT12 system has shown that with a broad customer and
market base we are not dependent for our success or long-term survival on any
single customer or market niche.

We sell our products through three channels: directly to customers, indirectly
through our international network of distributors; and through our (at this
stage, early and developing) original equipment manufacturer ("OEM") channels.
Through these channels, we sell complete systems solutions, developed by us,
to end customers. By using direct and indirect distribution as well as OEM
channels to maximize penetration of our products and technologies into the
marketplace, we seek to position eGene, Inc. as a leader in the low-cost
genomics testing tools market. We expect to derive a significant portion of
revenue from aftermarket products, including consumable and accessory
products. While there are several other vendors that produce DNA analyzers for
commercial use, we believe that the HDA-GT12 has a unique market position with
its efficiency, timeliness, and decreased costs.

Full Year 2005 Overview.

During 2005, we achieved several significant financial milestones. As
reflected more extensively in our Audited Consolidated Statements of
Operations contained in our Consolidated Financials Statements in Part II,
Item 7, of this Annual Report, our sales increased $435,729 or 51% to
$1,293,839 for the year ended December 31, 2005, compared to $858,110 for the
year ended December 31, 2004. For the fourth quarter ended December 31, 2005,
Compared to the previous year loss of $1,206,290, the net loss for the year
ended December 31, 2005, was reduced to $857,052, after taking a one-time
charge of $171,098 accrued expenses associated with the settlement with Udo
Henseler.

Our continuing goal is to attain sustainable revenue growth through increased
sales of our products to a global customer base and by increasing the
percentage of our total sales that arises from recurring sales sources such as
consumable.

In addition to our goal of attaining more sustainable sales growth, we are
continuing to focus on improving our gross margins and controlling product
costs by seeking out the benefits of cost effective global sourcing in order
to achieve operating cash flow break-even at lower overall sales.

Critical Accounting Policies.

The critical accounting policies used in the preparation of our financial
statements that we believe affect our more significant judgments and estimates
used in the preparation of our Consolidated Financial Statements presented in
this Annual Report are described more extensively in Item 7 "Financial
Statements and Supplementary Data." There have been no material changes to the
critical accounting policies.

Results of Operations.

Net Sales.

Net sales increased $435,729 or 51% for the year ended December 31, 2005, to
$1,293,839 compared to $858,110 for the year ended December 31, 2004. This
increase in our sales reflects the continuous product sales ramp up that
resulted from our new product introductions following our acquisition of the
BioCal in July of 2004. We believe that the increases in sales boost our
confidence to achieve more appreciable growth in the future.

Cost of Sales.

In addition to our goal of attaining sustainable revenue growth, we are
continuing to focus on improving our gross profit margins and controlling
product costs by seeking out the benefits of cost effective global sourcing
opportunities in order to achieve operating cash flow break-even at lower
overall revenues. As a result, cost of sales as a percentage of sales
decreased and improved to 45% for the year ended December 31, 2005, from 53%
for the year ended December 31, 2004, and gross profit margin increased to 55%
for the year ended December 31, 2005, from 47% for the year ended December 31,
2004.

Expenses.

Total expenses for the year ended December 31, 2005, were $1,566,262 including
a one-time charge of $171,098 accrued expenses associated with the settlement
with Udo Henseler.  It was $47,978 lower as compared to the year ended
December 31, 2004.

The major expenses levels and decreases were in the areas of research and
development materials. The level of ongoing research and development expense
is highly dependent upon the number and significance of ongoing projects at
any particular time. We currently expect research and development expenses to
increase in future periods as we develop new product solutions and
enhancements. We expect research and development spending to increase, but
only expanding in subsequent years based upon customer demand, market
conditions and our commercial growth. Management expects to devote additional
expenses resources to continue our research and development efforts to expand
support and product development activities and for other general corporate
activities.

Selling, general and administrative expenses are expected to increase
primarily due to planned increased sales calling for increases in employment
costs related to our building of marketing, sales and service functions, and
general increases in other marketing and general and administrative expenses
as a result of expected increased commercial activities. We expect selling,
product support, service, marketing and product promotion expenses to grow
over the next several years to support the more global commercialization of
our products.

Interest Income (Expense).

Interest income in both 2005 and 2004 are lower primarily due to lower cash,
cash equivalents and marketable securities balances.

Liquidity and Capital Resources.

Our cash and cash equivalents were $126,495 at December 31, 2005, compared to
$396,780 as of December 31, 2004.

We have financed our operations from inception primarily through equity sales,
and initial product sales and services. The inclusion of BioCal's results of
operations after July 14, 2004, had a significant impact on the business and
the comparability of cash flows on a period-over-period basis.

              Cash Flows          Year Ended December 31,

                                                           Increase/
Cash provided by (used in)         2005          2004      (decrease)
                               ------------ ------------ ------------
Operating activities               (942,676)  (1,597,992)     655,316
Investing activities                (86,192)    (140,619)      54,427
Financing activities                758,583    1,860,199   (1,101,616)

Net (decrease) increase in cash    (270,285)     121,588

Operating Activities.

During the year ended December 31, 2005, we used $942,676 of cash for
operating activities as compared to $1,597,992 used in the same period of
2004. Current assets - receivables and other current assets nominally offset
by increases in current liabilities - used cash of approximately $85,624, and
operations used $857,052 during the year ended December 31, 2005. The
increased use of cash for accounts receivable was due to increases of our
product sales base.  The year end outstanding accounts receivable balance
increased from $201,764 to $594,095 from 2004 to 2005.  Subsequent to year
end, $520,523 of the $594,095 account receivable balance was paid by
customers.

We expect to devote additional resources to expand support and product
development activities and for other general corporate activities. Selling,
General and Administrative expenses are expected to increase primarily due to
planned increases in employment costs related to marketing, sales and service
functions. We expect selling, marketing and product promotion expenses to
increase over the next several years to support the more global
commercialization of our products.

Investing Activities.

Investing Activities during the year ended December 31, 2005, used $86,192.

Financing Activities.

During the year ended December 31, 2005, we generated $758,583 in cash from
financing activities, reflecting the sale of our common stock in various
private placements and stock option exercises.

We believe that our current cash balances, together with the revenue to be
derived from sales of our genotyping products, will be sufficient to fund our
operations at least through the third quarter of year 2006.

Our future capital requirements will depend on many additional factors,
including, among others:

* continued market acceptance of our genotyping products;

* continued progress in future product development programs;

*our ability to maintain and establish additional, partnerships and licensing
arrangements;

* the time and costs involved in expanding and maintaining our manufacturing
and product development operations;

* the costs involved in potential preparing, filing, prosecuting, maintaining,
defending and enforcing patent claims;

* the potential need to develop, acquire or license new technologies and
products; and

*other factors not within our control.

During 2006, if cash generated by operations is insufficient to satisfy our
liquidity and future capital requirements, we may need to sell additional
equity or debt securities or obtain credit arrangements. The sale of
additional equity or convertible debt securities may result in additional
dilution to our stockholders.

Additional financing may not be available on terms acceptable to us or at all.
The inability to obtain additional financing may force delays in research and
product development, manufacturing and selling activities.

Commitments.

We lease space at 17841 Fitch, Irvine, California. As of December 31, 2005, we
had commitments under facility leases obligations as follows:

                                                        Operating
                                                         Leases
        12 Month Period ended December 31,             Liabilities

        2006                                           $    76,937
        2007                                                79,246
        2008                                                81,623
        2009                                                55,493
        Thereafter                                               -
                                                       -----------
        Total minimum lease and principle payments     $   293,299
                                                       ===========

As of December 31, 2005, we did not have any non-cancelable material purchase
commitments with any of our suppliers.

Impact of Inflation.

The effect of inflation and changing prices on our operations was not
significant during the periods presented.

Recent Accounting Pronouncements.

In May 2003, the FASB issued SFAS No. 150 ("SFAS 150"), "Accounting for
Certain Financial Instruments with Characteristics of Both Liabilities and
Equity Status." SFAS 150 establishes standards for how an issuer classifies
and measures certain financial instruments with characteristics of both
liabilities and equity. It requires that an issuer classify a financial
instrument that is within its scope as a liability (or an asset in some
circumstances). Many of those instruments were previously classified as
equity. SFAS 150 is effective for financial instruments entered into or
modified after May 31, 2003; otherwise it is effective at the beginning of the
first interim period beginning after June 15, 2003. The adoption of this
statement did not have a material effect on our Company's financial position
or results of operations.

In January 2003, the FASB issued FASB Interpretation No. 46, "Consolidation of
Variable Interest Entities" ("FIN 46") which requires the consolidation of
variable interest entities by the primary beneficiary of the entity if the
equity investors in the entity do not have the characteristics of a
controlling financial interest or do not have sufficient equity at risk for
the entity to finance its activities without additional subordinated financial
support from other parties.

In December 2003, the FASB issued FASB Interpretation No. 46R, "Consolidation
of Variable Interest Entities" ("FIN 46R"). FIN 46R superseded FIN 46 and
defers the effective date for small business filers until the first reporting
period that ends after December 15, 2004 (fourth quarter of 2004). The
adoption of FIN 46R is not anticipated to have a material impact on our
Company's financial position or results of operation.

Risk Factors Affecting Operating Results.

In addition to the risks to our business associated with suppliers,
competition and intellectual property discussed above, our business is subject
to a number of other significant risks, including the risks that our capillary
electrophoresis products may not achieve wide market acceptance. These and
other risks that may cause our actual results, financial performance or
achievements to be materially different from our present expectations are
discussed in more detail below.

The following risk factors should be considered, among others, in evaluating
our business, products and prospects. This list is not inclusive.

Our Genotyping Products May Not Achieve Wide Market Acceptance, Which Could
Cause Revenue to Grow Slowly or Decline.

Our genotyping products, which we developed, have only begun to be used
commercially since 2004. If these systems do not gain wide market acceptance,
our revenue may grow slowly than expected or decline. The commercial success
of our genotyping products will depend upon capital spending by our potential
customers, and market acceptance of the merits of our genotyping capillary
electrophoresis systems by biotechnology companies, academic research centers,
government agencies, and other companies that rely upon genotyping analyses.
Market acceptance will depend on many factors, including :

* ability to demonstrate the advantages and potential economic value of our
genotyping systems over alternative established technologies;

* capital spending by our customers and potential customers, which has been
sluggish as a result of economic conditions and other industry- specific
factors; and

* ability to market our genotyping systems.

The genotyping productivity tools equipment market is competitive and is
characterized by technological change and frequent new product introductions.
The commercial success of our genotyping systems depends upon continued and
expanding market acceptance of our systems and products by biotechnology
companies and genomics research organizations, government agencies, and upon
availability to address quickly any performance problems that our customers
encounter.

We intend to continue developing new, lower cost versions of our genotyping
systems with enhanced features that address existing or emerging customer
needs. If we are unable to do so, our systems may not become more widely used
and we may experience slow revenue growth or a decline in revenue and may not
achieve or maintain profitability.

eGene's Business May Be Adversely Affected by Downturns in the Economy.

We are subject to the capital spending patterns of this industry. If our
customers and potential customers do not increase their capital spending
budgets, eGene could face weak demand for our products.

eGene's Industry Is Very Competitive.

Our business is highly competitive and our growth is dependent upon market
growth and our ability to enhance our existing products and introduce new
products on a timely basis. One of the ways we may address the need to develop
new products is through acquisitions of complementary businesses and
technologies. Acquisitions involve numerous risks.

eGene Has Not Recorded Annual Profitable Operations since its Inception.

We have experienced operating losses each year since our inception.  Even
though our sales increased $435,729 or 51% to $1,293,839 and the net loss was
further reduced to $857,052, for the year ended December 31, 2005 compared to
the year ended December 31, 2004, we may still incur additional future
operating losses.

Our operating results may fluctuate significantly and any failure to meet
financial expectations may disappoint securities analysts or investors and
result in a decline in its stock price.

eGene Has Limited Experience in Manufacturing of Its Products in Large
Quantities.

We have limited experience in manufacturing of our products in large
quantities and may encounter manufacturing problems or delays, which could
result in lost revenue.

eGene Depends on its Key Personnel, the Loss of Whom Would Impair its Ability
to Compete.

We are highly dependent on the principal members of its management (Dr. Ming
Liu, Varouj Amirkhanian and Peter Sheu). The loss of services of any of these
persons could seriously harm product manufacturing and sales efforts. In
addition, research, product development and commercialization will require
additional skilled personnel in areas such as chemistry and biology, software
engineering and electronic engineering. Competition for and retention of
personnel, particularly for employees with technical expertise, is intense and
the turnover rate for these people is high. If we are unable to hire, train
and retain a sufficient number of qualified employees, our ability to conduct
and expand our business could be reduced. The inability to retain and hire
qualified personnel could also hinder the planned expansion of our business.

eGene's Intellectual Property Rights May Not Protect it and its Products.

Our products could infringe on the intellectual property rights of others,
which may cause us to engage in costly litigation and, if we are not
successful, could also cause us to pay substantial damages and prohibit us
from selling our products. Third parties may assert infringement or other
intellectual property claims against us. Even if these claims are without
merit, defending a lawsuit takes significant time, may be expensive and may
divert management attention from other business concerns. We are not aware of
any third-party patents claims against us.

We may need to initiate lawsuits to protect or enforce our patents, which
would be expensive and, if we lose, may cause us to lose some of our
intellectual property rights, which would reduce our ability to compete in the
market. We rely on patents to protect our intellectual property and our
competitive position, especially in our capillary electrophoresis
microfluidics business. The rights eGene relies upon to protect our
intellectual property underlying company products may not be adequate, which
could enable third parties to use this technology and would reduce our ability
to compete in the market.

In addition to patents, we rely on a combination of trade secrets, copyright
and trademark laws, nondisclosure agreements and other contractual provisions
and technical measures to protect our intellectual property rights.
Nevertheless, these measures may not be adequate to safeguard the technology
underlying company products.

Notwithstanding our efforts to protect our intellectual property, our
competitors may independently develop similar or alternative technologies or
products that are equal or superior to company technology and products without
infringing on any of our intellectual property rights or design around company
proprietary technologies.

The Loss of One or More Suppliers of eGene May Have an Adverse Effect on its
Operations.

We obtain some of the components and subassemblies included in our systems
from a single source or a limited group of suppliers, and the partial or
complete loss of one of these suppliers could cause production delays and a
substantial loss of revenue.

We maintain only a limited number of long-term supply agreements with its
suppliers.

Our reliance on a limited group of suppliers involves several risks, including
the following:

* we may be unable to obtain an adequate supply of required components;

* we have reduced control over pricing and the timely delivery of components
and subassemblies; and

* Company suppliers may be unable to develop technologically advanced products
to support our growth and development of new systems.

Because the manufacturing of certain of these components and subassemblies
involves complex processes and requires long lead times, we may experience
delays or shortages caused by suppliers. We believe that alternative sources
could be obtained at the same prices and on substantially the same terms and
conditions, if necessary, for most sole and limited source parts. However, if
we were forced to seek alternative sources of supply or to manufacture such
components or subassemblies internally, we might be forced to redesign company
systems, which could prevent us from shipping our systems to customers on a
timely basis.

eGene May Need Additional Capital.

Failure to raise additional capital or generate the significant capital
necessary to expand our operations and invest in new products could reduce our
ability to compete and result in lower revenue. We anticipate that our
existing capital resources will enable us to maintain currently planned
operations at least through the third quarter of 2006. However, we premises
this expectation on our current operating plans which may change as a result
of many factors. Consequently, we may need additional funding sooner than
anticipated. Our inability to raise needed capital would harm our business. In
addition, we may choose to raise additional capital due to market conditions
or strategic considerations even if we believe we have sufficient funds for
our current operating plans. To the extent that additional capital is raised
through the sale of equity or convertible debt securities, the issuance of
these securities could result in dilution to our stockholders.

We currently have no credit facility or committed sources of capital. To the
extent operating and capital resources are insufficient to meet future
requirements, we will have to raise additional funds to continue the
manufacturing and commercialization of our products. These funds may not be
available on favorable terms, or at all. If adequate funds are not available
on attractive terms, we may be required to curtail operations significantly or
to obtain funds by entering into financing, supply or collaboration agreements
on unattractive terms

Risks Related to Owning Our Common Stock

Our shares of common stock are traded on the OTC Bulletin Board under the
symbol "EGEI"; however, our stock price has very little history, and you could
lose a substantial portion of your investment.

Our stock has been trading on the OTCBB only since October 2004. We initially
offered our common stock to the public at $1.00 per share in a private
placement to "accredited investors" only. We expect that our stock price will
remain volatile as a result of a number of factors, including:

* announcements by our competitors of complementary or competing products and
technologies;

* announcements of our financial results, particularly if they differ from
investors' expectations; and

* general market volatility for technology stocks.

These factors and fluctuations, as well as general economic, political and
market conditions, may materially adversely affect the market price of our
common stock.

We are at risk of future securities class action litigation. Given the newness
of our stock, we are at risk of having securities class action lawsuits filed
against us and our officers and directors. Such securities litigation could
result in potential liability, cause us to incur litigation costs and divert
management's attention and resources, any of which could harm our business. In
addition, announcements of lawsuits of this or some other nature, and
announcements of events occurring during the course of the lawsuits, could
cause our stock fall.

Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Sensitivity May Affect Us.

Our primary investment objective is to preserve principal while at the same
time maximizing yields without significantly increasing risk.

Item 7. Financial Statements and Supplementary Data

eGene Inc.

TABLE OF CONTENTS
                                                                  Page

Report of Independent Registered Public Accounting Firm             1

Consolidated Balance Sheet - December 31, 2005                      2

Consolidated Statements of Operations for the Years Ended
December 31, 2005 and 2004                                          3

Consolidated Statement of Stockholders' Equity for the Years
ended December 31, 2005 and 2004                                    4

Consolidated Statements of Cash Flows for the Years Ended
December 31, 2005 and 2004                                          5

Notes to Consolidated Financial Statements                       6-16

<PAGE>
     REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


The Board of Directors and Shareholders
eGene, Inc.

We have audited the accompanying consolidated balance sheet of eGene, Inc. as
of December 31, 2005, and the related consolidated statements of operations,
stockholders' equity, and cash flows for the years ended December 31, 2005 and
2004.  These financial statements are the responsibility of the Company's
management.  Our responsibility is to express an opinion on these financial
statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.  The Company has
determined that it is not required to have, nor were we engaged to perform, an
audit of its internal control over financial reporting.  Our audit included
consideration of internal control over financial reporting as a basis for
designing audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the Company's
internal control over financial reporting. Accordingly, we express no such
opinion.  An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation.  We
believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of eGene, Inc. as of December
31, 2005, and the results of operations and cash flows for the years ended
December 31, 2005 and 2004, in conformity with accounting principles generally
accepted in the United States of America.

The accompanying financial statements have been prepared assuming the Company
will continue as a going concern.  As discussed in Note 2 to the financial
statements, the Company has accumulated losses and recurring negative cash
flows from operations.  These factors raise substantial doubt about its
ability to continue as a going concern.  Management's plans in regard to these
matters are also described in Note 2.  The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.

/s/Mantyla McReynolds LLC

Mantyla McReynolds LLC
Salt Lake City, Utah
March 1, 2006
<PAGE>

                           eGene Inc.
                    Consolidated Balance Sheet
                        December 31, 2005


                            ASSETS
Current Assets
Cash                                                  $  126,495
Accounts Receivable, net of allowance                    585,563
Inventory - Notes 1 and 11                               310,524
                                                      ----------
Total Current Assets                                   1,022,582
Fixed Assets
Computer Equipment                                        43,494
Equipment and Machinery                                   42,858
Furniture and Fixtures                                    18,413
Injection Molds                                          262,847
Less Accumulated Depreciation                            (81,731)
                                                      ----------
Total Fixed Assets                                       285,881
Other Assets                                                   -
Deferred Patent Costs, Net of Amortization - Note 1      307,678
Other Deferred Costs, Net of Amortization - Note 1           760
Deposits                                                  30,682
                                                      ----------
Total Other Assets                                       339,120
                                                      ----------
TOTAL ASSETS                                         $ 1,647,583
                                                      ==========

               LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities
Current Liabilities
Accounts Payable                                     $   124,531
Warranty Accrual - Note 1                                 48,233
Accrued Payroll and Related Payroll Taxes                188,128
Accrued Vacation Payable                                  27,085
Sales Taxes Payable                                        4,378
Current Portion of Settlement Payable                     99,246
                                                     -----------
Total Current Liabilities                                491,601
Settlement Payable-Long-Term                             183,642
                                                     -----------
Total Liabilities                                        675,243
Stockholders' Equity - Notes 1, 5 and 6
Preferred Stock - 10,000,000 shares authorized;
having a par value of $.001; -0- shares issued and
outstanding                                                    -
Common Stock - 50,000,000 shares authorized;
having a par value of $.001; 18,117,517 shares
issued and outstanding                                    18,117
Paid in Capital                                        5,546,963
Accumulated Deficit                                   (4,525,240)
Prepaid services via warrant issuance                    (67,500)
                                                     -----------
Total Stockholders' Equity                               972,340
                                                     -----------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY            $  1,647,583
                                                     ===========

   See accompanying notes to consolidated financial statements
                               F-2
<PAGE>
                           eGene Inc.
              Consolidated Statements of Operations
          for the Years Ended December 31, 2005 and 2004

                                                 2005            2004
                                           --------------  -------------
Revenues
Sales                                      $    1,288,419  $     855,835
Services                                            5,420          2,275
                                           --------------  -------------
Total Revenues                                  1,293,839        858,110
                                           --------------  -------------
Cost of Goods Sold                                586,251        455,906
                                           --------------  -------------
Gross Profit                                      707,588        402,204
                                           --------------  -------------
Expenses
Accounting & Audit                                 34,254         16,656
Amortization & Depreciation                        14,993         23,810
Dues and Subscriptions                              1,696          6,365
General Office Expenses                            12,316         20,737
Insurance                                          68,746         65,101
Legal Expenses                                     52,446         83,998
Marketing Sales Expenses                           94,943         85,573
Office Supplies & Equipment                        16,023         21,026
Postage and Delivery                                5,297          8,865
Professional Fees                                 245,146        129,942
Rent - Building                                    88,280         51,932
R & D Operating Materials & Supplies               79,658        395,568
Salaries, Wages & Taxes                           827,766        642,310
Telephone & Utilities                              20,110         18,712
Warranty Expense                                    4,588         43,645
                                           --------------  -------------
Total Expenses                                  1,566,262      1,614,240
                                           --------------  -------------
Net Loss from Operations                         (858,674)    (1,212,036)

Interest and Other Income                           1,622          5,746
                                           --------------  -------------
Loss Before Income Taxes                         (857,052)    (1,206,290)
Current Year Provision for Income Taxes                 -              -
                                           --------------  -------------
Net Loss                                   $     (857,052) $  (1,206,290)
                                           ==============  =============
Basic and Diluted Loss Per Share           $        (0.05) $       (0.10)
                                           ==============  =============
Weighted-Average Shares Outstanding            15,795,736     11,748,468
                                           ==============  =============

   See accompanying notes to consolidated financial statements
                               F-3
<PAGE>
                           eGene Inc.
          Consolidated Statement of Stockholders' Equity
          for the Years Ended December 31, 2005 and 2004

                                      Preferred Stock          Common Stock
                                      Shares      Par     Shares          Par
                                      Issued   Amount     Issued       Amount

Balance, December 31, 2003                   - $     -     8,963,601 $  8,963
                                      ======== =======   =========== ========
3/1/04-Issued post-split shares for
cash, at $.90 per share                                      335,173      335
5/10/04-Stock options exercised, at
$.05 per share                                             1,641,942    1,642
7/14/04-Issued post-split shares for
cash, at $.86 per share                                    1,600,750    1,601
7/14/04-Issued post-split shares for
fair value of services, at $1 per share                       56,750       57
7/28/04-Dissenter shares purchased, at
$.06 per share                                              (803,733)    (804)
8/13/04-Warrants exercised, at $.05 per
share                                                      2,903,750    2,904
Net loss for the period ended December
31, 2004
                                      -------- -------   ----------- --------
Balance, December 31, 2004                   - $     -    14,698,233 $ 14,698
                                      ======== =======   =========== ========
Shares retained during reverse merge of
Centroid Consolidated Mines Co.              -       -       714,285      714

2/16/05-Stock options exercised, at
$.05 per share                                               103,333      103

3/17/05-Stock options exercised, at
$.05 per share                                                11,667       12

3/21/05-Stock options exercised, at
$.05 per share                                                96,667       97

11/30/05-Issued post-split shares for
cash, at $.30 per share                                    1,500,000    1,500

11/30/05-Issued post-split shares for
cash, at $.30 per share                                      666,666      667

12/1/05-Issued post-split shares for
cash, at $.30 per share                                       83,333       83

12/2/05-Issued post-split shares for
cash, at $.30 per share                                       83,333       83

12/23/05-Issued post-split shares for
cash, at $.30 per share                                      160,000      160

Net loss for the period ended
December 31, 2005                                                  -        -
                                      -------- -------   ----------- --------
Balance, December 31, 2005                   - $     -    18,117,517 $ 18,117
                                     ========= =======   =========== ========
[CONTINUED]
                            eGene Inc.
                  [A Development Stage Company]
           Consolidated Statement of Stockholders' Equity
           for the Years Ended December 31, 2005 and 2004

                                   Additional                       Total
                                     Paid in   Retained  Prepaid Stockholders'
                                     Capital   Earnings  Services    Equity

Balance, December 31, 2003         $2,790,585$(2,461,898) $     0 $   337,650
                                   ========== ==========  ======= ===========
3/1/04-Issued post-split shares for
cash, at $.90 per share              301,301                          301,636
5/10/04-Stock options exercised, at
$.05 per share                        80,455                           82,097
7/14/04-Issued post-split shares
for cash, at $.86 per share        1,377,901                        1,379,502
7/14/04-Issued post-split shares
for fair value of services, at
$1 per share                          56,693                           56,750
7/28/04-Dissenter shares purchased,
at $.06 per share                    (47,420)                         (48,224)
8/13/04-Warrants exercised, at $.05
per share                            142,284                          145,188
Net loss for the period ended
December 31,                                 (1,206,290)           (1,206,290)
                                   --------- ----------  -------- -----------
Balance, December 31, 2004        $4,701,799$(3,668,188) $      0 $ 1,048,309
                                   ========= ==========  ======== ===========
Shares owned by shareholders of
Centroid Consolidated Mines Co.         (714)                               -

2/16/05-Stock options exercised, at
$.05 per share                         5,064                            5,167

3/17/05-Stock options exercised, at
$.05 per share                           571                              583

3/21/05-Stock options exercised, at
$.05 per share                         4,736                            4,833

11/30/05-Issued post-split shares
for cash, at $.30 per share          448,500                          450,000

11/30/05-Issued post-split shares
for cash, at $.30 per share          199,333                          200,000

12/1/05-Issued post-split shares
for cash, at $.30 per share           24,917                           25,000

12/2/05-Issued post-split shares
for cash, at $.30 per share           24,917                           25,000

12/23/05-Issued post-split shares
for cash, at $.30 per share           47,840                           48,000

Prepaid services via issuance of
warrants                              90,000               (90,000)

Amortization of prepaid services                            22,500     22,500

Net loss for the period ended
December 31, 2005                               (857,052)            (857,052)
                                 ----------- -----------  -------- ----------
Balance, December 31, 2005       $ 5,456,963 $(4,525,240) $(67,500)$  972,340
                                 =========== ===========  ======== ==========

   See accompanying notes to consolidated financial statements
                               F-4
<PAGE>
                           eGene Inc.

              Consolidated Statements of Cash Flows
          for the Years Ended December 31, 2005 and 2004

                                                     2005             2004
                                               ------------    -------------
Cash Flows From Operating Activities
Net Loss                                       $   (857,052)   $  (1,206,290)
Adjustments to reconcile net loss
to net cash used in operating activities:
Amortization                                          5,439            2,484
Depreciation                                          9,554           21,326
Securities issued for services                       22,500           56,750
Increase in current assets                         (385,430)        (488,227)
Increase in current liabilities                      78,671           15,965
Increase in long-term liabilities                   183,642                -
                                               ------------    -------------
Net cash used in operating activities              (942,676)      (1,597,992)
                                               ------------    -------------
Cash Flows from Investing Activities
Purchases of fixed assets                           (39,118)         (54,374)
Purchases of other assets                           (47,074)         (86,245)
                                               ------------    -------------
Net cash used by Investing activities               (86,192)        (140,619)
                                               ------------    -------------
Cash Flows from Financing
Proceeds from sale of equity securities             758,583        1,860,199
                                               ------------    -------------
Net (decrease) increase in cash                    (270,285)         121,588

Cash at beginning of period                         396,780          275,192
                                               ------------    -------------
Cash at end of period                          $    126,495    $     396,780
                                               ============    =============

Supplemental Information
Cash paid for interest                         $          -    $           -
Cash paid for income taxes                     $          -    $           -

   See accompanying notes to consolidated financial statements
                               F-5
<PAGE>
                           eGene, Inc.
Notes to the Consolidated Financial Statements December 31, 2005

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

Effective July 14, 2004, eGene, Inc., formerly known as Centroid Consolidated
Mines Co., (Centroid) completed a merger with BioCal Technology, Inc.,
(BioCal) a California corporation in the business of developing,
manufacturing, and marketing analytical systems and reagents for the global
genotyping market.

The merger caused BioCal to become a wholly-owned subsidiary of Centroid, a
dormant, publicly held Nevada corporation. The terms of the merger provide
that Centroid exchange one of its shares of common stock for every three
outstanding shares of common stock of BioCal and one of its options to acquire
shares of common stock of Centroid for every three outstanding options to
acquire common stock of BioCal, with the option exercise price of the BioCal
options to be adjusted times three as a result of the exchange. The
combination is a "reverse merge" which essentially results in the owners of
BioCal controlling the post-merger entity. They became owners of approximately
73% of the reorganized company. The transaction is accounted for as a
recapitalization of BioCal wherein the net assets are brought forward at their
net book value with no goodwill recognized, and the pre-merger financial
statements of BioCal are now the historical financial statements of the
combined company.

The directors and executive officers of BioCal became the directors and
officers of the reorganized entity which also has changed its name to eGene,
Inc.

The consolidated financial statements of the Company have been prepared in
accordance with accounting principles generally accepted in the United States
of America. The following is a summary of the more significant of such
policies.

Principles of Consolidation

eGene's financial statements include the accounts of its wholly owned
subsidiary BioCal Technology, Inc, All significant inter-company balances and
transactions have been eliminated in consolidation.

Use of Estimates

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


                               F-6
<PAGE>
                           eGene, Inc.
Notes to the Consolidated Financial Statements December 31, 2005

Revenue Recognition

General Policy

eGene recognizes revenue when persuasive evidence of an arrangement exists,
delivery has occurred, the fee is fixed or determinable, and collectability is
probable. Revenue is recognized on product sales when goods are shipped under
eGene's standard terms of "FOB origin". Revenues on shipments subject to
customer acceptance provisions are recognized only upon customer acceptance
provided all other revenue recognition criteria are met. Revenue recognized is
not subject to repayment. Cash received that is related to future performance
under such contracts is deferred and recognized as revenue when earned. No
sales made by eGene include return rights or privileges. Based upon eGene's
prior experience, sales returns are not significant, and therefore, eGene has
made no provision for sales returns or other allowances. Provision is made at
the time of sale for estimated costs related to eGene's warranty obligations
to customers.

Product Revenue

Product revenue is recognized upon the shipment and transfer of title to
customers and is recorded net of discounts and allowances. Revenues on
shipments subject to customer acceptance provisions are recognized only upon
customer acceptance, provided all other revenue recognition criteria are met.
Customer product purchases are delivered under standardized terms of "FOB
origin" with the customer assuming the risks and rewards of product ownership
at the time of shipping from eGene's warehouse with no return rights or
privileges.

Service

Optional service offerings are not included in the price eGene charges
customers for the initial product purchase. Under eGene's standard warranty,
the customer is entitled to repair or replacement of defective goods. No
upgrades are included in the standard warranty.

Software

eGene has developed software that is marketed with its solutions as a
component to operate and run its instruments and systems. eGene does not
provide post-sale software support, except for functional defects in the
software as contemplated in eGene's warranty on its instruments.

Warranty Expense

At the time product revenue is recognized, eGene establishes an accrual for
estimated warranty expenses associated with sales, recorded as a component of
cost of revenue. eGene offers a one-year limited warranty on instrumentation
products, which is included in the sales price of many of its products.
eGene's standard limited warranty covers repair or replacement of defective
goods, a preventative maintenance visit on certain products as required, and
telephone based technical support. No upgrades are included in the standard
warranty. In accordance with SFAS No. 5, "Accounting for Contingencies,"
provision is made for estimated future warranty costs at the time of sale.
Factors that affect eGene's warranty liability include the number of installed
units, historical and anticipated rates of warranty claims, and cost per
claim. The warranty accrual increased from $43,645 to $48,233 from 2004 to
2005.
                               F-7
<PAGE>
                           eGene, Inc.
Notes to the Consolidated Financial Statements December 31, 2005

Property, Plant and Equipment

The Company states property, plant and equipment ("PP&E") at costs, except for
PP&E that has been impaired, for which we write down the carrying amount to
estimated fair market value, which then becomes the new cost basis. See Note
9.

Amortization

The Company amortizes deferred patent legal fees over the life of the patents,
which is generally seventeen years. Accumulated amortization is $12,079 and
$6,640 as of December 31, 2005 and 2004, respectively. Total additions of
deferred patent legal fees for the year ended December 31, 2005 and 2004 were
$41,239 and $62,175, respectively.

Depreciation

Property and equipment are carried at cost for financial statement purposes.
On the accompanying financial statements, depreciation is recorded on
equipment over the useful lives using accelerated methods and straight line
methods. See Note 9.

Income Taxes

eGene has incurred net operating losses since inception. Such losses may be
carried forward to offset future taxable income. No deferred tax benefit has
been recorded. See Note 7.

Net Loss Per Share

Basic net income (loss) per share is calculated based on the weighted-average
number of common shares outstanding during the period, which reflects the
reverse stock split effect as described under Organization. Diluted net income
(loss) per share would give effect to the dilutive effect of common stock
equivalents consisting of stock options and warrants (calculated using the
treasury stock method). Potentially dilutive securities have been excluded
from the diluted earnings per share computations where they have an anti-
dilutive effect due to eGene's net loss. Potentially dilutive common stock
equivalents excluded from the calculation of diluted net loss are
approximately 4,571,808 and 1,622,642 shares for the years ended December 31,
2005 and 2004 respectively.

Stock-Based Compensation

eGene accounts for its stock options and equity awards under the intrinsic
value method in accordance with the provisions of Accounting Principles Board
Opinion No. 25, "Accounting for Stock Issued to Employees", and related
interpretations, and has elected to follow the "disclosure only" alternative
prescribed by Financial Accounting Standards Board's SFAS No. 123, "Accounting
for Stock-Based Compensation". Accordingly, no compensation expense is
recognized in eGene's financial statements for stock options granted to
employees, which had an exercise price equal to the fair value of the
underlying common stock on date of grant. eGene accounts for stock options
issued to non-employees in accordance with the provisions of SFAS No. 123 and
EITF No. 96-18, "Accounting for Equity Instruments that are issued to other
than Employees for Acquiring or in Conjunction with selling Goods or
Services".

                               F-8
<PAGE>
                           eGene, Inc.
Notes to the Consolidated Financial Statements December 31, 2005

The following table illustrates the effect on net loss and net loss per share
if eGene had applied the fair value recognition provisions of SFAS No. 123, as
amended by SFAS No. 148, "Accounting for Stock-Based Compensation - Transition
and Disclosure and amendment of FASB Statement No. 123." For purposes of pro
forma disclosures, the estimated fair value of the options is amortized to
expense over the vesting period of the options using the straight-line
allocation method. eGene's pro forma information is as follows:

                                                   2005          2004
                                              --------------  -----------
Net loss, as reported                         $     (857,052) $(1,206,290)
Compensation cost under fair value-
based accounting method, net of tax                  221,341       18,178
                                              --------------  -----------
Net loss, pro forma                           $   (1,078,393) $(1,224,468)

Net loss per common share
Basic and Diluted
As reported                                   $        (0.05) $     (0.10)
Pro forma                                              (0.07)       (0.10)
                                              --------------  -----------
Weighted average shares                           15,795,736   11,748,468
                                              ==============  ===========

The fair value under FAS 123 for options and equity awards granted were
estimated at the date of grant using a Black-Scholes option pricing model with
the following weighted average assumption:

                Expected life (years)                  0-10
                Interest rate                            3%
                Volatility                             244%
                Dividend Yield                           0%


Cash Equivalents

Per the provisions of the Financial Accounting Standards Board ( FASB)
Statement No. 95, Statement of Cash Flows, cash equivalents consist primarily
of certificates of deposits and other securities with original maturities of
90 days or less. Certificates of deposits and other securities with original
maturities over 90 days are classified as short-term investments

Accounts Receivable

Accounts receivable are stated at amounts owed to eGene from customers. eGene
grants credit to customers based on their financial conditions, generally
without requiring collateral. Accounts which are determined to be
uncollectible are immediately written off.  The Company provides an allowance
for doubtfull accounts based on historical experience with its customers and
an evaluation of the aging of the accounts receivable.  Allowance for doubtful
accounts is $8,532 as of December 31, 2005.

                               F-9
<PAGE>
                           eGene, Inc.
Notes to the Consolidated Financial Statements December 31, 2005

The year end outstanding net accounts receivable balance increased from
$201,764 to $585,563 from 2004 to 2005 due to revenue increases in December
2005.

Inventories

Inventories for use in the manufacture of eGene's instruments include
electronic components, devices, and accessories either produced or purchased
from original equipment manufacturers. Inventories are stated at the lower of
standard cost (which approximates actual cost on a first-in, first-out basis)
or market, reflect appropriate reserves for potential obsolete, slow moving or
otherwise impaired material, and include appropriate elements of material,
labor, and indirect costs.

eGene reserves or writes off 100% of the cost of inventory that it
specifically identifies and considers obsolete or excessive to fulfill future
sales estimates. eGene defines obsolete inventory as inventory that will no
longer be used in the manufacturing process. Excess inventory is generally
defined as inventory in excess of projected usage, and is determined using
management's best estimate of future demand at the time, based upon
information then available to eGene.

Research and Development Expenses

eGene's expenses research and development (R&D) costs in accordance with FASB
Statement No. 2, Accounting for Research and Development Costs. eGene has
incurred substantial R&D costs for consulting, payroll, and materials.

Stockholders' Equity

eGene has 50,000,000 authorized common shares and 10,000,000 authorized
preferred shares, with the preferred stock having such rights and preferences
as the Board of Directors shall determine. A total of 18,117,517 common shares
have been issued through December 31, 2005, at various stated values, totaling
$5,475,080. Included in the issued shares are 722,842 subsidiary shares which
were not yet submitted and replaced by the Company's stock as of December 31,
2005. There have been no issuances of preferred shares.

Recently Issued Financial Accounting Standards

In December 2004, the FASB issued SFAS No. 123R, Share-based Payment. This
standard is a revision of SFAS No. 123, Accounting for Stock-Based
Compensation, and supersedes Accounting Principles Board Opinion No. 25,
Accounting for Stock Issued to Employees, and its related implementation
guidance. SFAS No. 123R requires the measurement of the cost of employees
services received in exchange for an award of the entity's equity instruments
based on the grant-date fair value of the award. The cost will be recognized
over the period during which an employee is required to provide service in
exchange for the award. No compensation cost is recognized for equity
instruments for which employees do not render service. The Company will adopt
SFAS No. 123R on January 1, 2006, which will require stock-based compensation
expense to be recognized against earnings for the portion of outstanding
unvested awards, based on the grant date fair value of those awards calculated
using a Black-Scholes pricing model under SFAS 123 for pro forma disclosure.

                               F-10
<PAGE>
                           eGene, Inc.
Notes to the Consolidated Financial Statements December 31, 2005

2. GOING CONCERN

The Company's financial statements are prepared using generally accepted
accounting principles applicable to a going concern that contemplates the
realization of assets and liquidation of liabilities in the normal course of
business. The Company has limited financial resources and its operations from
inception (3/1/99) through December 31, 2005 have been unprofitable.  These
factors raise substantial doubt about its ability to continue as a going
concern.  If the Company is unsuccessful in their efforts and cannot attain
sufficient profitable operations or if it cannot obtain additional sources of
funding or investment, it may substantially curtail or terminate its
operations.

3. SIGNIFICANT CONCENTRATIONS

For the twelve months ended December 31, 2005,  five customers represented
approximately 75% of total revenues. For the twelve months ended December 31,
2004, one customer represented approximately 70% of total revenues.  If these
customers decreased or terminated their purchases from the Company, the impact
may have adverse effects on the Company's operations and financial condition.

The Company primarily sells one product, along with certain peripherals.  If
this product becomes un-saleable in future periods for any reason, the impact
may have adverse effects on the Company's financial condition.

eGene maintained checking and savings deposits at one bank institution as of
December 31, 2005, for a total of $ 126,176, which exceeded the Federal
Depository Insurance Corporation insured limit of $100,000 per financial
institution by $ 26,176. eGene's management does not believe that this
involves any significant risk.

4. COMMITMENTS

Operating Leases Liabilities

eGene leases space at 17841 Fitch, Irvine, California. The following are
contractual commitments as of December 31, 2005, associated with lease
obligations:
                                                       Operating
                                                        Leases
          12 Month Period ended December 31,          Liabilities

          2006                                        $    76,937
          2007                                             79,246
          2008                                             81,623
          2009                                             55,493
          Thereafter                                            -
                                                      -----------
          Total minimum lease and principle payments  $   293,299
                                                      ===========

Inventory Purchases

As of December 31, 2005, eGene did not have any material non-cancelable
purchase commitments with any of its suppliers.

                               F-11
<PAGE>
                           eGene, Inc.
Notes to the Consolidated Financial Statements December 31, 2005

5. ACQUISITION OF BIOCAL TECHNOLOGY INC.

Effective July 14, 2004, the Company, formerly known as Centroid Consolidated
Mines Co., (Centroid) completed a merger with BioCal Technology, Inc.,
(BioCal) a California corporation in the business of developing,
manufacturing, and marketing analytical systems and reagents for the global
genotyping market.

The merger caused BioCal to become a wholly-owned subsidiary of Centroid, a
dormant, publicly held Nevada corporation. The terms of the merger provide
that Centroid exchange one of its shares of common stock for every three
outstanding shares of common stock of BioCal, and one of its options to
acquire shares of common stock of Centroid for every three outstanding options
to acquire common stock of BioCal, with the option exercise price of the
BioCal options to be adjusted times three as a result of the exchange. The
combination is a "reverse merge" which essentially results in the owners of
BioCal controlling the post-merger entity. They became owners of approximately
73% of the reorganized company.  The transaction is accounted for as a
recapitalization of BioCal wherein the net assets are brought forward at their
net book value with no goodwill recognized, and the pre-merger financial
statements of BioCal are now the historical financial statements of the
combined company.

The directors and executive officers of BioCal became the directors and
officers of the reorganized entity which also has changed its name to eGene,
Inc.

6. STOCK OPTIONS AND WARRANTS

eGene adopted a Stock Option Plan in 2004 for 2,000,000 shares maximum, in
order to attract and retain key employees and to provide staff with equity
incentives in order to promote the financial success of eGene. Stock options
plans were also adopted in 1999 and 2002, for 2,366,667 and 666,667 shares
maximum, respectively. In the event the number of outstanding shares of eGene
changed by a stock dividend, split, etc., such options shall be
proportionately adjusted.


                                     Options               Warrants
                                     -------               --------

                                              Weighted              Weighted
                                              Average               Average
                                              Exercise              Exercise
             2005              Shares         Price       Shares    Price

Granted                        200,000        $  0.05   2,993,333   $ 0.45
Exercised                      211,667           0.05          0         -
Forfeited/expires               32,500           0.05          0         -
Outstanding at December 31   1,578,475           0.05   2,993,333     0.45
Exercisable                  1,094,675           0.05   2,993,333     0.45

                                     Options               Warrants
                                     -------               --------

                                              Weighted              Weighted
                                              Average               Average
                                              Exercise              Exercise
             2004              Shares         Price       Shares    Price

Granted                      1,000,696        $  0.05  2,903,750    $0.05
Exercised                    1,641,942           0.05  2,903,750     0.05
Forfeited/expires               40,000           0.05          -        -
Outstanding at December 31   1,622,642           0.05          -        -
Exercisable                    902,293           0.05          -        -

                               F-12
<PAGE>
                           eGene, Inc.
Notes to the Consolidated Financial Statements December 31, 2005

Summarized information about stock options and warrants outstanding December
31, 2005:

                       Options Outstanding            Options Exercisable
                                             Weighted                Weighted
Range of                 Weighted Average    Average                  Average
Exercise      Number   Remaining Contractual Exercise      Number    Exercise
Prices     Outstanding    Life (in years)      Price    Exercisable    Price
$   0.05   1,578,475           5. 7          $  0.05    1,094,675    $  0.05

                       Warrants Outstanding           Warrants Exercisable
                                             Weighted                Weighted
Range of                 Weighted Average    Average                  Average
Exercise      Number   Remaining Contractual Exercise      Number    Exercise
Prices     Outstanding    Life (in years)      Price    Exercisable    Price
$   0.45   2,993,333           5             $  0.45    2,993,333    $  0.45


7. INCOME TAXES

No provision has been made in the financial statements for income taxes
because the Company has accumulated losses from operations since inception.
Any deferred tax benefit arising from the operating loss carried forward is
offset entirely by a valuation allowance since it is not currently estimable
when and if the Company will have taxable income to take advantage of the
losses.

         Deferred Taxes                           Balance   Rate       Tax
Federal loss carry forward (expires through 2025)$4,525,240   34%  $1,538,582
State loss carry forward (expires through 2015)  $4,507,055 8.84%     398,424
Valuation allowance                                                (1,937,006)
                                                                   ----------
      Deferred tax asset                                           $        -

The valuation allowance has increased $383,155 from $1,553,851 in the prior
year.

Income tax expense differs from amounts computed by applying the statutory
Federal rate to pretax income as follows:

                                              Years ended December 31,
                                                 2005           2004
Federal statutory rate                          34.0%          34.0%
Effect of:
  State income taxes                             8.84%          8.84%
  Change in valuation allowance, Federal and
  State; and other                             -42.84%        -42.84%
                                               --------       --------
Effective tax rate                                0.0%           0.0%
                                               ========       ========

                               F-13
<PAGE>
                           eGene, Inc.
 Notes to the Consolidated Financial Statements December 31, 2005

8. RELATED PARTY TRANSACTIONS

During the current year, the Company purchased parts from two companies whose
ownership includes one of the Company's Directors and shareholders.  The total
purchases for 2005 and 2004 were $84,104 and $31,713, respectively.  The total
balance owed to these parties as of December 31, 2005 and 2004 is $18,244 and
$4,043, respectively.

During 2005 and 2004, the Company received $266,866 and $602,935 respectively
in product sales from shareholders. The parties' accounts receivable balances
for 2005 and 2004 are $17,425 and $96,141 respectively.

During the current year, the Company paid $25,000 for financial advisory
services to a shareholder. $80,000 was paid to a shareholder for financial
advisory services during the prior year. No amounts are owed to the parties as
of December 31, 2005 and 2004.

9. PROPERTY, PLANT AND EQUIPMENT

The following table summarizes the fixed asset balances as of December 31,
2005. The injection mold balance represents tooling that was not yet placed
into service as of the year end, as such, no depreciation was calculated on
this balance.

                                 12/31/2005

            Property, Plant & Equipment
            Computer Equipment                   $  43,494
            Equipment & Machinery                   33,048
            Other Equipment                          9,810
            Furniture & Fixtures                    18,413
            Injection Molds                        262,847
                                                  --------
            Total Property, Plant & Equipment      367,612

            Accumulated Depreciation               (81,731)
                                                  --------
            Net Property, Plant & Equipment       $ 285,881

                               F-14
<PAGE>
                           eGene, Inc.
Notes to the Consolidated Financial Statements December 31, 2005

10. SUBSEQUENT EVENTS

On February 23, 2006, the Company entered into a Settlement Agreement and
Mutual Release (the "Settlement Agreement") by and among the Company and Udo
Henseler, former Chairman, CEO, and director
of the Company ("Henseler").

The following are the principal terms of the Settlement Agreement: For and in
consideration of the payment of the sum of $282,888.00 together with interest
at the rate of four percent per annum, to be paid to Henseler by the Company
in monthly installments until paid in full, Henseler released eGene from and
against any and all claims which Henseler ever had, now has or hereafter may
have against the Company. The Company released Henseler from and against any
and all claims which the Company ever had, now has or hereafter may have
against Henseler. Henseler agreed to resign as a member of the Board of
Directors of the Company subsequent to his resignation from his eGene CEO
position in July 2005. Henseler will retain approximately 143,334 unexercised,
vested stock options in eGene and shall be permitted by eGene to exercise such
options at an exercise price of $0.05 each for a total exercise price of
$7,166.70 within thirty months of the date of the execution of the Settlement
Agreement.  The full settlement has been accrued as of December 31, 2005.

11. INVENTORY

The following table sets forth the inventory balances in the various
categories as of December 31, 2005 and 2004:
                                        2005          2004
                                    -----------    ----------
           Raw Material             $   272,024    $  254,846
           Work in Process                    -             -
           Finished Goods                38,500        36,763
                                    -----------    ----------
           Total                    $   310,524    $  291,609
                                    ===========    ==========

12. UNIT ISSUANCE

In September, 2005, our Board of Directors adopted, ratified and approved the
offer and sale of units at a price of $0.30 per unit, such units to be
comprised of one (1) share of eGene $0.001 par value common stock (the "Common
Stock"); and one warrant to purchase one (1) additional share of eGene Common
Stock at an exercise price of $0.45 in cash per share for a term of five (5)
years from the closing of the offering; and further resolved that excluding
the Warrant exercise price, the Company raise $1,000,000 to $4,000,000 or such
other amount as a majority of the members of the Board of Directors may agree,
from the sale of the Units.  We may amend our offering to increase the number
of shares being offered in the event of an over subscription at the time of
closing.  There were no registration rights afforded to the investors in the
offering; provided, however, that if the Common Stock and/or the shares to be
issued pursuant to the exercise of the Warrants are hereafter granted any
registration rights to the holders thereof, that such registration rights
shall include a "call" provision at $0.01 per share on thirty (30) days
written notice once the Common Stock trades at two and one-half (2-1/2) times
the Warrant exercise price for ten (10) consecutive trading days on a
nationally recognized medium of no less significance than the OTC Electronic
Bulletin Board of the National Association of Securities Dealers, Inc., the
NASDAQ Small Cap or a recognized national stock exchange, and provided,
further, that there is a registration statement that is effective and that
covers the shares underlying the Warrants.
                              F-15
<PAGE>
eGene, Inc.
Notes to the Consolidated Financial Statements December 31, 2005

13. DEVELOPMENT STAGE

The Company has determined that it is no longer in the development stage and
has removed the related captions and presentation from its financial
statements.  Considerations for removing the development stage status included
the significance of revenues over multiple years, and the decrease in research
and development activities.

14. WARRANT ISSUANCE FOR FUTURE SERVICES

On September 22, 2005, the Company entered into a one-year consulting
agreement with another company ("Consultant").  As part of the terms of the
agreement, the Company has issued common stock purchase warrants to purchase
500,000 shares of the Company's common stock, exercisable over five years at
$0.45 per warrant.  The Company also agreed to pay the Consultant $3,000 per
month during the one-year term of the agreement.  The Company has valued the
compensation cost associated with the warrants at the estimated fair value of
$90,000, with $22,500 being expensed during 2005 and $67,500 being recognized
as a separate component of stockholders' equity as of December 31, 2005.  The
agreement also provides a finder's fee of ten percent (10%) for any funds
raised in an offering from introductions by the Consultant.
                               F-16
<PAGE>
Item 8. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure

None.

Item 8(a). Controls and Procedures

As of the end of the period covered by this Annual Report, we carried out
an evaluation, under the supervision and with the participation of our
President and Secretary/Treasurer, of the effectiveness of the design and
operation of our disclosure controls and procedures.  Based on this
evaluation, our President and Chief Financial Officer concluded that our
disclosure controls and procedures are effectively designed to ensure that
information required to be disclosed or filed by us is recorded, processed or
summarized, within the time periods specified in the rules and regulations of
the Securities and Exchange Commission.  It should be noted that the design of
any system of controls is based in part upon certain assumptions about the
likelihood of future events, and there can be no assurance that any design
will succeed in achieving its stated goals under all potential future
conditions, regardless of how remote.  In addition, we reviewed our internal
controls, and there have been no significant changes in our internal controls
or in other factors that could significantly affect those controls subsequent
to the date of their last evaluation.

Item 8(b). Other Information.

None.

PART III

Item 9. Directors, Executive Officers, Promoters and Control Persons;
Compliance with Section 16(a) of the Exchange Act.

Directors and Executive Officers of the Company

The following table sets forth certain information concerning our directors
and executive officers:

                                   Positions with            Designation/
         Name            Age        Our Company              Resignation*
         ----            ---        -----------              ------------

    Ming-Sun Liu          47       CEO, Chairman,            July 19, 2005
                                   Executive Vice President
                                   and Director

    Udo Henseler          66       Former CEO, Chairman      July 19, 2005*
                                   and Director

    Peter Sheu            44       CFO                       Nov. 29, 2005

    Jeffrey Williams      43       Former CFO                July 20, 2005*

    Varoujan Amirkhanian  48       Executive Vice            July 14, 2004
                                   President and
                                   Director

    Shing-Ching Lu        52       Director                  July 14, 2004

Directors are elected by our stockholders to serve until the next annual
meeting of our stockholders or until their successors have been elected and
have been duly qualified. Officers are appointed to serve until the annual
meeting of our Board of Directors following the next annual meeting of our
stockholders and until their successors have been elected and have qualified.

Family Relationships.

No family relationship exists among any of the directors or officers. All
directors hold office until the next annual meeting of shareholders and until
their successors are duly elected and qualified. Officers serve at the
pleasure of the Board of Directors.

Audit Committee Financial Expert.

The Company does not have an audit committee or an audit committee financial
expert. Thus, our Company's stock may not be listed on any national securities
exchange or by any national securities association. This will limit the
ability of our shareholders to sell their shares in these markets.

Resumes of Directors and Executive Officers.

The following is a summary of the business experience of each of our current
directors and executive officers and key employees:

Ming S. Liu, Ph.D., is our CEO, Chairman, Executive Vice President and a
Director. Dr. Liu has served in various capacities including Founder
President, Chief Application Scientist and Corporate R&D of BioCal Technology,
Inc. since July, 2000. He is directly concentrating on the entire space of our
applied biological, chemistry and related customer solutions. He was a
Principal Scientist at Beckman Coulter, Inc., from November, 1993, to July,
2000. He obtained his M.S. degree from Nation Taiwan University, Taiwan, in
1983; and his Ph.D. degree from University of British Columbia, Canada, in
1991.

Varouj D. Amirkhanian, B.S., is our Executive Vice President and Director. Mr.
Amirkhanian has served in various capacities, including Founder and VP/R&D of
BioCal Technology, Inc. since October, 2000. He is responsible for invention,
design and development of high-throughput DNA analysis instruments/detection
devices. He was with Beckman Coulter Inc. as Senior R&D Systems
Engineer/Scientist for nine years (1992-2000), in charge of invention, design
and development of optical detection devices for CE base instruments. Mr.
Amirkhanian has over 20 years of experience in product development and
commercialization of biotechnology instruments and biomedical laser devices.
He held various Project and Systems level engineering positions at Beckman
Coulter, Pfizer and Baxter Healthcare. Mr. Amirkhanian holds a B.A. degree in
Physics and a B.S. degree in Engineering. He has published several technical
papers and holds 15 patents (eight issued and seven pending).

Peter Sheu, M.S., M.Arch. is our Chief Financial Officer. Mr. Sheu has 16
years of experience in capital markets, corporate finance and technology
sector. Most recently, he was Chief Financial Officer of Simax Technologies
Inc., a private material technology company based in Irvine, California. Mr.
Sheu has received degrees in M.S. in Finance and Master of Architecture from
the University of Illinois at Urbana-Champaign.

Shing-Ching Lu, M.S., is one of our Directors. Mr. Lu is Chairman, Wanmeitec
Electronic Co., Ltd., Taiwan. Subsequent to graduating from National Taiwan
University with an M.S. degree in civil engineering, Mr. Lu started his own
company and was actively involved in major projects where he contributed his
extensive knowledge of environmental impact, circulating water systems and raw
water supply to the betterment of Taiwan's infrastructure. Mr. Lu was one of
the founders of Wanmeitec Electronic Co., Ltd. in China. Mr. Lu specializes in
creating and implementing high-performance strategies that directly impact
growth and profitability of large companies. Mr. Lu has extensive project
marketing and company management experience as well as a strong background in
site planning, feasibility study and civil engineering designs.

Key Personnel.

Ms. Monisha Singh, B.Sc., M.S., MBA, Global Marketing Manager. Over 10 years
of domestic and international sales and marketing experience in the
biotechnology and pharmaceutical industry. Prior to joining eGene, Ms. Singh
served at Applied Biosystems and was responsible for product management and
strategic planning for the development and worldwide marketing of Applied
Biosystems DNA fragment analysis product line, software and Molecular
Microbiology product line including TaqMan Pathogen, and GMOs and Microbial
identification products. Further, Ms. Singh was the marketing lead and liaison
between R&D and manufacturing for developing new reagent products on Applied
Biosystems capillary electrophoresis and gel electrophoresis instrument
platform. Prior to working at Applied Biosystems, Ms. Singh held various
positions in senior product management at Aventis Pasteur (South Asia),
establishing and expanding pediatric vaccine market in Asia and at Roche
Products Ltd. (India), establishing and expanding market for its anti-cancer
product line. She has several paper publications in the field of microbiology,
infectious diseases, vaccines and pharmaceutical market trends. Ms. Singh is
an international business management graduate and earned a post-graduate
degree in Microbiology.

Bee Na Lee, Ph.D. (eGene Application Scientist) Dr. Lee is a molecular
microbiologist and has been working in related fields including pathogenicity
in academic laboratories and biotechnology industry for over 10 years. Dr.
Lee earned her Ph.D. degree in Microbiology in 1995 at Texas A&M University
and finished her postdoctoral training in 1999 at Harvard Medical School. In
the past four years, she has been a scientist in biotechnology industry; her
research has been involved in identification pathogenicity factors from
microorganisms. Her major contributions in science include identification a
genetic pathway for early stage asexual development in Aspergillus nidulans.
Discovery a novel role for the Se11 MAPKK kinase cascade in Saccharomyces
cerevisiae and identification all peptide synthetases in Cochliobolus
heterostrophus. Fungal Peptide synthetases USA patent 2002. Leukemia Society
of America, Postdoctoral Fellowship Award 1996-2000.

Please refer to our web-site www.egeneinc.com for information of our
Scientific Advisory board memberships

Code of Conduct.

We are in the process of developing a Code of Business Conduct and Ethics (the
"Code") that applies to our principal executive officer, principal financial
officer and principal accounting officer or controller. The Code will set
forth written standards that are reasonably designed to deter wrongdoing and
to promote (1) honest and ethical conduct, (2) full, fair, accurate, timely
and understandable disclosure in reports and documents that our Company files
with the Securities and Exchange Commission and in other public communications
made by our Company, (3) compliance with applicable governmental laws, rules
and regulations, (4) the prompt internal reporting of violations of the Code
to an appropriate person or persons identified in the Code and (5)
accountability for adherence to the Code.

Compensation Committee.

We have not established a Compensation Committee because we believe that our
three member Board of Directors is able to effectively manage the issues
normally considered by a Compensation Committee.

Nominating and Corporate Governance Committee.

We have not established a Nominating and Corporate Governance Committee
because we believe that our three member Board of Directors is able to
effectively manage the issues normally considered by a Nominating and
Corporate Governance Committee.

Involvement in Certain Legal Proceedings.

To the knowledge of our management and during the past five years, no present
or former director, person nominated to become a director, executive officer,
promoter or control person of our Company:

(1) Was a general partner or executive officer of any business by or against
which any bankruptcy petition was filed, whether at the time of such filing or
two years prior thereto;

(2) Was convicted in a criminal proceeding or named the subject of a pending
criminal proceeding (excluding traffic violations and other minor offenses);

(3) Was the subject of any order, judgment or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining him from or otherwise limiting, the
following activities:

(I) Acting as a futures commission merchant, introducing broker, commodity
trading advisor, commodity pool operator, floor broker, leverage transaction
merchant, associated person of any of the foregoing, or as an investment
adviser, underwriter, broker or dealer in securities, or as an affiliated
person, director or employee of any investment company, bank, savings and loan
association or insurance company, or engaging in or continuing any conduct or
practice in connection with such activity;

(ii) Engaging in any type of business practice; or

(iii)Engaging in any activity in connection with the purchase or sale of any
security or commodity or in connection with any violation of federal or state
securities laws or federal commodities laws;

(4) Was the subject of any order, judgment or decree, not subsequently
reversed, suspended or vacated, of any federal or state authority barring,
suspending or otherwise limiting for more than 60 days the right of such
person to engage in any activity described above under this Item, or to be
associated with persons engaged in any such activity;

(5) Was found by a court of competent jurisdiction in a civil action or by the
Securities and Exchange Commission to have violated any federal or state
securities law, and the judgment in such civil action or finding by the
Securities and Exchange Commission has not been subsequently reversed,
suspended, or vacated; or

(6) Was found by a court of competent jurisdiction in a civil action or by the
Commodity Futures Trading Commission to have violated any federal commodities
law, and the judgment in such civil action or finding by the Commodity Futures
Trading Commission has not been subsequently reversed, suspended or vacated.

Item 10. Executive Compensation.

Compensation of Executive Officers.

The following table sets forth information concerning all cash compensation
paid by our Company for services in all capacities to our Principal Executive
Officer during the three-year period ended December 31, 2005. We have no other
officers whose total cash compensation exceeded $100,000 for the year. We have
no plans that will require us to contribute to or to provide pension,
retirement or similar benefits to directors or officers of our Company.

                           Summary Compensation Table

                           Long Term Compensation

                    Annual Compensation   Awards  Payouts

(a)             (b)   (c)   (d)   (e)   (f)   (g)   (h)    (I)

                                              Secur-
                                              ities        All
Name and        Year or               Other  Rest- Under- LTIP  Other
Principal       Period   Salary Bonus Annual rictedlying  Pay- Comp-
Position        Ended      ($)   ($)  Compen-Stock Optionsouts ensat'n
----------------------------------------------------------------------
Ming-Sun Liu   12/31/05 $ 65,250  0     0     0     0      0     0
Chairman, CEO  12/31/04 $145,000  0     0     0   200,000  0     0
and Exec. VP   12/31/03 $ 79,200  0     0     0   133,333  0     0
and Director

Udo Henseler   12/31/05 $ 14,500  0     0     0     0      0     0
former Chairman12/31/04 $145,000  0     0     0   200,000  0     0
CEO and        12/31/03 $ 90,417  0     0     0   416,666  0     0
Director

Peter Sheu     12/31/05 $ 10,000  0     0     0   200,000  0     0
CFO

Jeffrey        12/31/05 $ 20,370  0     0     0     0      0     0
Williams       12/31/04 $  9,963  0     0     0    12,000  0     0
Former CFO

Varoujan       12/31/05 $ 74,995  0     0     0     0      0     0
Armikhanian    12/31/04 $125,000  0     0     0   200,000  0     0
Exec. VP       12/31/03 $ 81,900  0     0     0    50,000  0     0
and Director

Shing-Ching Lu 12/31/05 $      0  0     0     0     0      0     0
Director       12/31/04 $      0  0     0     0    40,000  0     0
               12/31/03 $      0  0     0     0     0      0     0

Stock Option Plans.
-------------------

              Option/SAR Grants in Last Fiscal Year
                        Individual Grants

(a)                        (b)          (c)             (d)          (e)
                        Number of    Percent of total
                        Securities   Options/SARs
                        Underlying   Granted to     Exercise or
                        Options/SARs Employees in   Base price     Expiration
Name                    Granted (#)  Fiscal year    ($/Share)      Date
--------------------- -------------- --------------- -----------  -----------
Ming S. Liu                        0          0%
Udo Henseler                       0          0%
Peter Sheu                   200,000        100%     $      0.05   12/31/2015
Jeffrey Williams                   0          0%
Varoujan Amirkhanian               0          0%
Shing-Ching Lu                     0          0%


        Aggregated Option/SAR Exercise in Last Fiscal Year
                   and FY-End Option/SAR Value

(a)                       (b)             (c)          (d)           (e)
                                                     Number of    Value of
                                                    Securities   Unexercised
                                                    Underlying   In-the-money
                                                    Unexercised  Options/SARs
                         Shares                     Options/SARs at FY-End ($)
                         Acquired      Value       at FY-End (#) Exerciseable/
                        on Exercise   Realized      Excercisable Unexercisable
Name                       (#)          ($)       Unexerciseable    (1)
-------------------   -------------  ----------  --------------- -------------
Ming S. Liu              96,667         106,334   45,000/105,000 21,000/31,500
Udo Henseler            103,333         113,666      143,334/0     50,167/0
Peter Sheu                    0               0      0/200,000     0/70,000
Jeffrey Williams              0               0       4,500/0      1,575/0
Varoujan Amirkhanian          0               0 545,000/105,000 196,000/31,500
Shing-Ching Lu                0               0   31,000/21,000  11,900/6,300

(1) Based on the closing price of the eGene Common Stock on December 30, 2005
of $0.40. For the purposes of this calculation, value is based upon the
difference between the exercise price of the options and the per share price
at December 30, 2005

Compensation of Directors.

There are no standard arrangements pursuant to which our Company's directors
are compensated for any services provided as director. No additional amounts
are payable to our Company's directors for committee participation or special
assignments, with the exception of Shing-Ching Lu, who received stock options
for service as an outside director.

Except as noted above, there are no arrangements pursuant to which any of our
Company's directors was compensated during our Company's last completed fiscal
year or the previous two fiscal years for any service provided as director.
See the Summary Compensation Table of this Item.

Termination of Employment and Change of Control Arrangement.

There are compensatory plans or arrangements, including payments to be
received from our Company, with respect to the CEO and Executive VP named in
the Summary Compensation Table set out above which would result in payments to
any such person because of his or her resignation, retirement or other
termination of such person's employment with our Company or its subsidiaries,
or any change in control of our Company, or a change in the person's
responsibilities following a change in control of our Company.

Termination or Discharge of CEO or Executive Vice Presidents. Under their
respective Employment Agreements that are attached hereto and incorporated
herein by reference, either party to the Employment Agreement may terminate
employment at any time. (A) Employee acknowledges and understands that the
Employer may terminate Employee's employment if any of the following events
occur (I) the Employer is sold; (ii) the Employer becomes a subsidiary of a
non-related party; (iii) the Employer experiences a 25% or more change in
ownership (but not as a result of an IPO); (iv) the Employer elects to have a
new CEO or Executive Vice President. If any of the foregoing events occur and
the Employer elects to terminate Employee's employment, Employee will be
entitled to (a) his then current salary for 12 months; (b) incentive
compensation, pro-rated on a calendar year basis; (c) continuation of all of
his insurances at the Company's expense for 12 months; (d) the immediate
vesting of any unvested stock options along with the five years exercise right
of all options. (B) The Employer acknowledges und understands that the
Employee may resign his employment with the Employer if any one of the
following events occur: (I) the Employer is sold; (ii) the Employer becomes a
subsidiary of a non-related party; (iii) the Employer experiences a 25%
percent or more change in ownership (but not as a result of an IPO); (iv) the
Employer commits any act of fraud, misrepresentation or bad faith against the
Employee; (v) his duties, reporting relationships or responsibilities are
materially reduced; (vi) the Employer elects to have a new CEO or Executive
Vice President. If any of the events described in clauses (I), (ii), (iii)
occur and Employee elects to resign, Employee shall be entitled to only (a)
his then current salary for six months; (b) any unpaid incentive compensation
pro-rated on a six month basis; (c) continuation of all of his insurances at
the Employer's expense for six months. Furthermore, any unvested Stock Options
shall be vested immediately along with a five years exercise rights of all his
options. If the events described in clauses (iv) or (v) or (vi) occur and
Employee elects to resign, he shall be entitled to the separation benefits in
Section (A)

For a detail explanation of the payments to be made upon termination, see the
Employment Agreements, attached hereto and incorporated herein by reference.
See Part III, Item 13, of this Annual Report.

Item 11. Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters

Security Ownership of Certain Beneficial Owners.

The following table sets forth the shareholdings of those persons who own more
than five percent of our Company's common stock as of the date hereof:

                                         Number and Percentage of
Name and Address                         Shares Beneficially Owned
----------------                         ----------------------------
Mark Bright Investments Ltd                   1,500,000      8.28%
51 LANE 31 SEC 2 CHANG-PING RD
Taichung, Taiwan

Ming S. Liu                                   1,308,212*     7.22%
2588 Chelsea Ct.
Brea, California 92821

Udo Henseler                                    932,094      5.14%
2901 SW 117th Ave.
Davie, Florida 33330

*Ming S. Liu owns 1,090,345 shares directly and 40,400 shares each in the
names of Emily Liu, Jennifer Liu and Justin Liu at the same address.

Security Ownership of Management.

The following table sets forth the share holdings of our Company's directors
and executive officers as of the date hereof:

                                         Number and Percentage of
Name and Address                         Shares Beneficially Owned
----------------                         ----------------------------
Ming S. Liu                                1,308,212*     7.22%
2588 Chelsea Ct.
Brea, California 92821

Peter Sheu                                       -0-         0%
6789 Quail Hill Parkway, #419
Irvine, California 92618

Varoujan Amirkhanian                         885,779      4.89%
3831 El Caminito St.
La Crescenta, California 91214

Sing-Ching Lu                                854,142      4.71%
8F-B, 277, Sec. 3 Roosevelt Rd.
Taipei, Taiwan
                                           ---------   --------
TOTALS                                     3,048,133     16.82%
                                           =========   ========

* Ming S. Liu owns 1,090,345 shares directly and 40,400 shares each in the
names of Emily Liu, Jennifer Liu and Justin Liu at the same address.

Changes in Control.

To the knowledge of our management, there are no present arrangements or
pledges of our Company's securities which may result in a change in control.

Item 12. Certain Relationships and Related Transactions.

Transactions with Management and Others.

During the current year, the Company purchased parts from two companies whose
ownership includes one of our Directors and shareholders. The total purchases
for 2005 and 2004 were $84,104,348 and $31,713, respectively. The total
balance owed to these parties as of December 31, 2005, and 2004, is $18,244
and $4,043, respectively.

During 2005 and 2004, we received $266,866 and $602,935 respectively in
product sales from shareholders. The parties' accounts receivable balances
for 2005 and 2004 are $17,425 and $96,141, respectively.

During the current year, we paid $25,000 for financial advisory services to a
shareholder. $80,000 was paid to a shareholder for financial advisory services
during the prior year. No amounts are owed to the parties as of December 31,
2005, and 2004.

Except as noted above, there were no material transactions, or series of
similar transactions, during our Company's last three calendar years, or any
currently proposed transactions, or series of similar transactions, to which
our Company or any of our subsidiaries was or is to be a party, in which the
amount involved exceeded $60,000 and in which any director, executive officer
or any security holder who is known to us to own of record or beneficially
more than five percent of any class of our common stock, or any member of the
immediate family of any of the foregoing persons, had an interest.

Certain Business Relationships.

Except as noted above, there were no material transactions, or series of
similar transactions, during our Company's last three calendar years, or any
currently proposed transactions, or series of similar transactions, to which
we or any of our subsidiaries was or is to be a party, in which the amount
involved exceeded $60,000 and in which any director, executive officer or any
security holder who is known to us to own of record or beneficially more than
five percent of any class of our common stock, or any member of the immediate
family of any of the foregoing persons, had an interest.

Indebtedness of Management.

Except as noted above, there were no material transactions, or series of
similar transactions, during our Company's last three calendar years, or any
currently proposed transactions, or series of similar transactions, to which
we or any of our subsidiaries was or is to be a party, in which the amount
involved exceeded $60,000 and in which any director, executive officer or any
security holder who is known to us to own of record or beneficially more than
five percent of any class of our common stock, or any member of the immediate
family of any of the foregoing persons, had an interest.

Transactions with Promoters.

Except as noted above, there were no material transactions, or series of
similar transactions, during our Company's last three calendar years, or any
currently proposed transactions, or series of similar transactions, to which
we or any of our subsidiaries was or is to be a party, in which the amount
involved exceeded $60,000 and in which any promoter or founder of ours or any
member of the immediate family of any of the foregoing persons, had an
interest.

Item 13. Exhibits and Reports on Form 8-K.

Reports on Form 8-K.

8-K Current Report dated February 23, 2006 and filed with the Securities and
Exchange Commission on February 27, 2006.

8-K Current Report dated November 30, 2005 and filed with the Securities and
Exchange Commission on December 19, 2005.

8-K Current Report dated November 29, 2005 and filed with the Securities and
Exchange Commission on December 7, 2005.

8-K Current Report dated July 19, 2005 and filed with the Securities and
Exchange Commission on July 25, 2005.

8-K Current Report dated January 31, 2005 and filed with the Securities and
Exchange Commission on February 3, 2005.

Exhibits

Exhibits
Number
-----------
     (I)
10.1     Employment Agreement of Dr. Ming S. Liu

10.2     Employment Agreement of Varouj Amirkhanian

10.3     Employment Agreement of Peter Sheu

31.1     Certification of Dr. Ming S. Liu

31.2     Certification of Peter Sheu

32       906 Certification

     (ii)

     Definitive Information Statement filed with the Securities and Exchange
Commission on April 2, 2004, regarding an increase in the authorized capital
to include preferred shares and to authorized the Board of Directors to change
the name without shareholder approval - Part I*

     10-KSB Annual Report for the fiscal year ended December 31, 2004 - Part
I*

     10-SB Registration Statement filed with the SEC on February 26, 2001*

          3.1 Articles of Incorporation of CCM-Arizona, dated April 15, 1936

          3.3 (I) Articles of Amendment to Articles of Incorporation dated
          April 12, 1951, change of authorized allowed and indebtness

          3.3 (ii) Articles of Amendment to Articles of Incorporation dated
          April 21, 1991, change of authorized allowed and inbebtness

          3.1 (I) Articles of Incorporation of the Company, dated June 14,
          1999

          3.2 By-laws, adopted June 8, 1999 99 Articles of Merger of CCM-
          Arizona with and into the Company

          3.3 (iv) Articles of Amendment to Articles of Incorporation dated
          September 29, 1999, regarding 15 to 1 reverse split

               * Previously filed and incorporated herein by reference.

Item 14. Principal Accountant Fees and Services.

The following is a summary of the fees billed to us by our principal
accountants during the fiscal years ended December 31, 2005 and 2004:

     Fee category               2005           2004
     ------------               ----           ----

     Audit fees                 $29,116       $ 8,738

     Audit-related fees         $ 2,838       $     0

     Tax fees                   $ 2,300       $   313

     All other fees             $     0       $ 7,605
                                -------       -------
     Total fees                 $34,254       $16,656
                                =======       =======

Audit fees. Consists of fees for professional services rendered by our
principal accountants for the audit of our annual financial statements and the
review of financial statements included in our Forms 10-QSB Quarterly Reports
or services that are normally provided by our principal accountants in
connection with statutory and regulatory filings or engagements.

Audit-related fees. Consists of fees for assurance and related services by our
principal accountants that are reasonably related to the performance of the
audit or review of eGene's financial statements and are not reported under
"Audit fees."

Tax fees. Consists of fees for professional services rendered by our principal
accountants for tax compliance, tax advice and tax planning.

All other fees. Consists of fees for products and services provided by our
principal accountants, other than the services reported under "Audit fees,"
"Audit-related fees" and "Tax fees" above.

                           SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the Registrant has duly caused this Annual Report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                    eGene, Inc.

Date: 03/31/06                     Ming S. Liu
                                    Chairman, Director, CEO, and Executive VP

Date: 03/31/06                      Peter Sheu
                                    Chief Financial Officer

Date: 03/31/06                      Varoujan Amirkhanian
                                    Director and Executive Vice President

Date: 03/31/06                      Sing-Ching Lu
                                    Director

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