----

----

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

| Large Accelerated Filer |                                                |   | Accelerated Filer         |                 |
|-------------------------|-----------------------------------------------------|--------|---------------------------|----------------------|
| Non-accelerated filer   |  (do not check if a smaller reporting company) |   | Smaller reporting company |     X |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Page      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
| PART I - FINANCIAL INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | 3         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
| Item 1.  Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 3         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
|              Consolidated Balance Sheets at                      March 31, 2011 (unaudited) and June 30, 2010                                                                                                                                                                                                                               |  3   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
|              Unaudited Consolidated Statements of  Operations for the                      three months ended March 31, 2011 and 2010, and                      nine months ended March 31, 2011 and 2010           | 4         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
|              Unaudited Consolidated Statements of  Comprehensive Income for the                      three months ended March 31, 2011 and 2010, and                      nine months ended March 31, 2011 and 2010 | 5         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
|               Unaudited Consolidated Statements of Cash Flows                      for the nine months ended March 31, 2011 and 2010                                                                                                                                                                                                   |  6   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
|               Unaudited notes to Consolidated Financial Statements                                                                                                                                                                                                                                                                                                                                                                                   |   7  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
| Item 2.  Management’s Discussion and Analysis or Plan of Operation                                                                                                                                                                                                                                                                                                                                                                                                                                         |   16 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
| Item 3. Quantitative and Qualitative Disclosure About Market Risk                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   21 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
| Item 4.  Controls and Procedures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   21 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
| PART II – OTHER INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   22 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
| Item 1.  Legal Proceedings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   22 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
| Item 2.  Unregistered Sales of Equity Securities And Use Of Proceeds                                                                                                                                                                                                                                                                                                                                                                                                                                             |   22 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
| Item 3.  Defaults Upon Senior Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 22        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
| Item 4.  (Removed and Reserved)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   22 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
| Item 5. Other Information                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   22 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |
| Item 6.  Exhibits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 22        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      |

----

|                                                                                 |   | March 31,   |       |   | June 30, |   |
|--------------------------------------------------------------------------------------|--------|-------------|------------|--------|----------|--------|
|                                                                                 |   | 2011        |       |   | 2010     |   |
| Assets                                                                               |   | (Unaudited) |       |   |     |   |
| Current assets:                                                                      |   |        |       |   |     |   |
| Cash and cash equivalents                                                            |   | $           | 31,066,927 |   |     | $      | 27,009,066 |   |
| Accounts receivable, net of allowance for doubtful accounts of $436,515              |   |        | 9,742,186  |   |     |   | 8,185,240 |   |
|    and $421,079 at March 31, 2011 and June 30, 2010, respectively     |   |        |       |   |     |   |   |   |
| Inventory                                                                            |   |        | 5,431,746  |   |     |   | 3,588,824 |   |
| Advance payments                                                                     |   |        | 397,020    |   |     |   | 382,980 |   |
| Loans receivable                                                                     |   |        | -          |   |     |   | 294,600 |   |
| Other current assets                                                                 |   |        | 31,831     |   |     |   | 77,283 |   |
| Total current assets                                                                 |   |        | 46,669,710 |   |     |   | 39,537,993 |   |
|                                                                                 |   |        |       |   |     |   |   |   |
| Property and equipment, net                                                          |   |        | 25,596,835 |   |     |   | 14,968,822 |   |
|                                                                                 |   |        |       |   |     |   |   |   |
| Intangibles, net                                                                     |   |        | 15,295,417 |   |     |   | 15,232,286 |   |
|                                                                                 |   |        |       |   |     |   |   |   |
| Total assets                                                                         |   | $           | 87,561,962 |   |     | $      | 69,739,101 |   |
|                                                                                 |   |        |       |   |     |   |   |   |
| Liabilities                                                                          |   |        |       |   |     |   |   |   |
| Current liabilities:                                                                 |   |        |       |   |     |   |   |   |
| Accounts payable and accrued expenses                                                |   | $           | 1,556,489  |   |     | $      | 1,715,781 |   |
| Accounts payable – construction related                                        |   |        | 2,389,461  |   |     |   | 2,248,849 |   |
| Short-term bank loans                                                                |   |        | 2,748,600  |   |     |   | 1,473,000 |   |
| VAT taxes payable                                                                    |   |        | 746,997    |   |     |   | 658,312 |   |
| Income taxes payable                                                                 |   |        | 1,333,674  |   |     |   | 861,614 |   |
| Other taxes payable                                                                  |   |        | 159,356    |   |     |   | 19,564 |   |
| Dividends payable                                                                    |   |        | 34,661     |   |     |   | 72,995 |   |
| Other current liabilities                                                            |   |        | 537,834    |   |     |   | 429,135 |   |
| Total current liabilities                                                            |   |        | 9,507,072  |   |     |   | 7,479,250 |   |
|                                                                                 |   |        |       |   |     |   |   |   |
| Total liabilities                                                                    |   |        | 9,507,072  |   |     |   | 7,479,250 |   |
|                                                                                 |   |        |       |   |     |   |   |   |
| Equity                                                                               |   |        |       |   |     |   |   |   |
| Stockholders’ equity:                                                          |   |        |       |   |     |   |   |   |
| Common stock, $0.001 par value, 50,000,000 shares authorized,                        |   |        | 29,396     |   |     |   | 27,326 |   |
|     29,396,276 and 27,371,526 shares issued and outstanding at   |   |        |       |   |     |   |   |   |
|   March 31, 2011 and June 30, 2010, respectively                           |   |        |       |   |     |   |   |   |
| Series A convertible preferred stock, $0.001 par value -0- and 1,360,250             |   |        | -          |   |     |   | 1,360 |   |
|    shares issued and outstanding at March 31, 2011 and June 30, 2010, |   |        |       |   |     |   |   |   |
|    Respectively                                                       |   |        |       |   |     |   |   |   |
| Additional paid-in capital                                                           |   |        | 31,536,139 |   |     |   | 29,623,396 |   |
| Statutory reserve                                                                    |   |        | 3,732,883  |   |     |   | 3,732,883 |   |
| Treasury stock                                                                       |   |        | (111,587   | )      |     |   | (111,587 | ) |
| Retained earnings                                                                    |   |        | 37,339,441 |   |     |   | 25,687,770 |   |
| Accumulated other comprehensive income                                               |   |        | 5,096,149  |   |     |   | 2,845,076 |   |
| Total stockholders’ equity                                                     |   |        | 77,622,421 |   |     |   | 61,806,224 |   |
|                                                                                 |   |        |       |   |     |   |   |   |
| Noncontrolling interest                                                              |   |        | 432,469    |   |     |   | 453,627 |   |
|                                                                                 |   |        |       |   |     |   |   |   |
| Total equity                                                                         |   |        | 78,054,890 |   |     |   | 62,259,851 |   |
|                                                                                 |   |        |       |   |     |   |   |   |
| Total liabilities and equity                                                         |   | $           | 87,561,962 |   |     | $      | 69,739,101 |   |
|                                                                                 |   |        |       |   |     |   |   |   |

----

|                                     |   | For the Three Months Ended |       |   | For the Nine Months Ended |   |
|------------------------------------------|--------|----------------------------|------------|--------|---------------------------|--------|
|                                     |   | March 31,                  |       |   | March 31,                 |   |
|                                     |   | 2011                       |       |   | 2010                      |   |   | 2011 |   |   | 2010 |   |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |
| Sales                                    |   | $                          | 24,880,980 |   |                      | $      | 15,917,771 |   |   | $ | 72,165,647 |   |   | $ | 44,259,352 |   |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                            |   |                       | 14,044,670 |   |                      |   | 7,493,230 |   |   |   | 39,183,982 |   |   |   | 21,019,960 |   |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                             |   |                       | 10,836,310 |   |                      |   | 8,424,541 |   |   |   | 32,981,665 |   |   |   | 23,239,392 |   |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating expenses:                      |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative      |   |                       | 5,517,647  |   |                      |   | 4,607,897 |   |   |   | 17,252,309 |   |   |   | 13,135,398 |   |
| Research and development                 |   |                       | 286,020    |   |                      |   | 218,515 |   |   |   | 802,696 |   |   |   | 608,385 |   |
| Total operating expenses                 |   |                       | 5,803,667  |   |                      |   | 4,826,412 |   |   |   | 18,055,005 |   |   |   | 13,743,783 |   |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income from operations                   |   |                       | 5,032,643  |   |                      |   | 3,598,129 |   |   |   | 14,926,660 |   |   |   | 9,495,609 |   |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expenses):                 |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                          |   |                       | 33,083     |   |                      |   | 15,068 |   |   |   | 90,681 |   |   |   | 34,436 |   |
| Interest expense                         |   |                       | (29,791    | )      |                      |   | (18,913 | ) |   |   | (72,599 | ) |   |   | (58,276 | ) |
| Other income (expenses)                  |   |                       | -          |   |                      |   | - |   |   |   | - |   |   |   | (39,510 | ) |
| Total other Income (Expenses)            |   |                       | 3,292      |   |                      |   | (3,845 | ) |   |   | 18,082 |   |   |   | (63,350 | ) |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income before provision for income tax   |   |                       | 5,035,935  |   |                      |   | 3,594,284 |   |   |   | 14,944,742 |   |   |   | 9,432,259 |   |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income tax                 |   |                       | 1,323,665  |   |                      |   | 686,161 |   |   |   | 3,171,172 |   |   |   | 1,767,852 |   |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income                               |   |                       | 3,712,270  |   |                      |   | 2,908,123 |   |   |   | 11,773,570 |   |   |   | 7,664,407 |   |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Less: Net income (loss) attributable to  |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| noncontrolling interest                  |   |                       | (4,492     | )      |                      |   | (1,357 | ) |   |   | (21,121 | ) |   |   | (2,397 | ) |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to Tianyin       |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|  Pharmaceutical Co., Inc.           |   |                       | 3,716,762  |   |                      |   | 2,909,480 |   |   |   | 11,794,691 |   |   |   | 7,666,804 |   |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic earnings per share                 |   | $                          | 0.13       |   |                      | $      | 0.11 |   |   | $ | 0.42 |   |   | $ | 0.31 |   |
| Diluted earnings per share               |   | $                          | 0.12       |   |                      | $      | 0.09 |   |   | $ | 0.39 |   |   | $ | 0.26 |   |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|    outstanding            |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                    |   |                       | 28,218,732 |   |                      |   | 26,363,749 |   |   |   | 28,031,064 |   |   |   | 23,650,332 |   |
| Diluted                                  |   |                       | 29,822,596 |   |                      |   | 31,631,330 |   |   |   | 30,062,270 |   |   |   | 29,931,923 |   |
|                                     |   |                       |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |

----

|                                         |   |   | For the Three Months EndedMarch 31, |   |   |   | For the Nine Months EndedMarch 31, |   |
|----------------------------------------------|--------|--------|-------------------------------------|--------|--------|--------|------------------------------------|--------|
|                                         |   |   | 2011                                |   |   |   | 2010                               |   |   |   | 2011 |   |   |   | 2010 |   |
| Net income                                   |   | $      | 3,712,270                           |   |   | $      | 2,908,123                          |   |   | $ | 11,773,570 |   |   | $ | 7,664,407 |   |
|                                         |   |   |                                |   |   |   |                               |   |   |   |   |   |   |   |   |   |
| Other comprehensive income                   |   |   |                                |   |   |   |                               |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment      |   |   | 484,258                             |   |   |   | (155                               | )      |   |   | 2,251,109 |   |   |   | 46,808 |   |
|                                         |   |   |                                |   |   |   |                               |   |   |   |   |   |   |   |   |   |
| Total other comprehensive income             |   |   | 484,258                             |   |   |   | (155                               | )      |   |   | 2,251,109 |   |   |   | 46,808 |   |
|                                         |   |   |                                |   |   |   |                               |   |   |   |   |   |   |   |   |   |
| Comprehensive income                         |   |   | 4,196,528                           |   |   |   | 2,907,968                          |   |   |   | 14,024,679 |   |   |   | 7,711,215 |   |
|                                         |   |   |                                |   |   |   |                               |   |   |   |   |   |   |   |   |   |
| Comprehensive income attributable to the     |   |   |                                |   |   |   |                               |   |   |   |   |   |   |   |   |   |
|   noncontrolling interest          |   |   | (103                                | )      |   |   | -                                  |   |   |   | (37 | ) |   |   | (179 | ) |
|                                         |   |   |                                |   |   |   |                               |   |   |   |   |   |   |   |   |   |
| Comprehensive income attributable to         |   |   |                                |   |   |   |                               |   |   |   |   |   |   |   |   |   |
|   Tianyin Pharmaceutical Co., Inc. |   | $      | 4,196,425                           |   |   | $      | 2,907,968                          |   |   | $ | 14,024,642 |   |   | $ | 7,711,036 |   |

----

|                                                          |   | For the Nine Months EndedMarch 31, |        |
|---------------------------------------------------------------|--------|------------------------------------|-------------|
|                                                          |   | 2011                               |        |   | 2010 |   |
| Cash flows from operating activities:                         |   |                               |        |   |   |   |
| Net Income                                                    |   | $                                  | 11,773,570  |   |   | $ | 7,664,407 |   |
| Adjustments to reconcile net income to net cash               |   |                               |        |   |   |   |   |   |
|   provided by (used in) operating activities:       |   |                               |        |   |   |   |   |   |
| Depreciation and amortization                                 |   |                               | 893,896     |   |   |   | 678,372 |   |
| Bad debt expense                                              |   |                               | -           |   |   |   | 96,734 |   |
| Share-based payments                                          |   |                               | 1,913,453   |   |   |   | 1,274,516 |   |
| Loss on disposal of fixed assets                              |   |                               | -           |   |   |   | 39,510 |   |
| Changes in assets and liabilities:                            |   |                               |        |   |   |   |   |   |
| Accounts receivable                                           |   |                               | (1,235,887  | ) |   |   | (2,725,110 | ) |
| Inventory                                                     |   |                               | (1,682,777  | ) |   |   | 190,744 |   |
| Other current assets                                          |   |                               | 46,400      |   |   |   | 457,487 |   |
| Accounts payable and accrued expenses                         |   |                               | (267,848    | ) |   |   | 437,483 |   |
| Accounts payable – construction related                 |   |                               | 280,295     |   |   |   | 2,887,122 |   |
| VAT taxes payable                                             |   |                               | 36,038      |   |   |   | 87,300 |   |
| Income taxes payable                                          |   |                               | 433,118     |   |   |   | 195,177 |   |
| Other taxes payable                                           |   |                               | 164,187     |   |   |   | 5,175 |   |
| Dividends payable                                             |   |                               | (18,138     | ) |   |   | - |   |
| Other current liabilities                                     |   |                               | (131,682    | ) |   |   | 195,931 |   |
| Total adjustments                                             |   |                               | 431,055     |   |   |   | 3,820,441 |   |
|                                                          |   |                               |        |   |   |   |   |   |
| Net cash provided by operating activities                     |   |                               | 12,204,625  |   |   |   | 11,484,848 |   |
|                                                          |   |                               |        |   |   |   |   |   |
| Cash flows from investing activities:                         |   |                               |        |   |   |   |   |   |
| Additions to property and equipment                           |   |                               | (10,317,824 | ) |   |   | (5,338,740 | ) |
| Additions to intangible assets – approved drugs         |   |                               | -           |   |   |   | (2,742,168 | ) |
| Loans receivable                                              |   |                               | 300,300     |   |   |   | (293,280 | ) |
|                                                          |   |                               |        |   |   |   |   |   |
| Net cash used in investing activities                         |   |                               | (10,017,524 | ) |   |   | (8,374,188 | ) |
|                                                          |   |                               |        |   |   |   |   |   |
| Cash flows from financing activities:                         |   |                               |        |   |   |   |   |   |
| Proceeds from bank loans                                      |   |                               | 1,201,200   |   |   |   | 65,988 |   |
| Additional paid-in capital                                    |   |                               | -           |   |   |   | 8,864,825 |   |
| Contribution from minority shareholders                       |   |                               | -           |   |   |   | 439,920 |   |
| Dividends paid                                                |   |                               | (54,857     | ) |   |   | (1,577,068 | ) |
|                                                          |   |                               |        |   |   |   |   |   |
| Net cash provided by financing activities                     |   |                               | 1,146,343   |   |   |   | 7,793,665 |   |
|                                                          |   |                               |        |   |   |   |   |   |
| Effect of foreign currency translation on cash                |   |                               | 724,417     |   |   |   | 2,852 |   |
|                                                          |   |                               |        |   |   |   |   |   |
| Net increase in cash and cash equivalents                     |   |                               | 4,057,861   |   |   |   | 10,907,177 |   |
|                                                          |   |                               |        |   |   |   |   |   |
| Cash and cash equivalents – beginning                   |   |                               | 27,009,066  |   |   |   | 12,352,223 |   |
|                                                          |   |                               |        |   |   |   |   |   |
| Cash and cash equivalents – ending                      |   | $                                  | 31,066,927  |   |   | $ | 23,259,400 |   |
|                                                          |   |                               |        |   |   |   |   |   |
| Supplemental schedule of non cash activities                  |   |                               |        |   |   |   |   |   |
| Advance payments exchanged for intangible assets – drug |   | $                                  | -           |   |   | $ | 807,986 |   |
|                                                          |   |                               |        |   |   |   |   |   |

----

----

----

|                          |   |  March 31, 2011 |      |   |  June 30, 2011 |   |
|-------------------------------|--------|----------------------|-----------|--------|---------------------|--------|
| Raw materials                 |   | $                    | 735,833   |   |                | $      | 268,443 |   |
| Packaging supplies            |   |                 | 813,441   |   |                |   | 1,798,555 |   |
| Work in process               |   |                 | 2,844,373 |   |                |   | 1,326,441 |   |
| Finished goods                |   |                 | 1,038,099 |   |                |   | 334,399 |   |
| Subtotal                      |   |                 | 5,431,746 |   |                |   | 3,727,838 |   |
| Less: Inventory reserve       |   |                 | -         |   |                |   | 139,014 |   |
|     Total |   | $                    | 5,431,746 |   |                | $      | 3,588,824 |   |

|                             |   | March 31, 2011 |             |   | June 30, 2010 |   |
|----------------------------------|--------|----------------|------------------|--------|---------------|--------|
|                             |   |           |             |   |          |   |
| Buildings                        |   | $              | 9,106,079        |   |          | $      | 8,784,057 |   |
| Machinery and equipment          |   |           | 2,736,982        |   |          |   | 2,640,194 |   |
| Office equipment and furniture   |   |           | 58,328           |   |          |   | 56,145 |   |
| Vehicles                         |   |           | 65,358           |   |          |   | 63,045 |   |
|     Subtotal |   |           | 11,966,747       |   |          |   | 11,543,441 |   |
| Less: Accumulated depreciation   |   |           | 2,848,436        |   |          |   | 2,348,544 |   |
|                             |   |           | 9,118,311        |   |          |   | 9,194,897 |   |
| Add: Construction in progress    |   |           |  16,478,524 |   |          |   |  5,773,925 |   |
|     Total    |   | $              | 25,596,835       |   |          | $      | 14,968,822 |   |

|                                                                 |   | March 31, 2011 |       |   | June 30, 2010 |   |
|----------------------------------------------------------------------|--------|----------------|------------|--------|---------------|--------|
|                                                                 |   |           |       |   |          |   |
| Land use rights                                                      |   | $              | 1,511,730  |   |          | $      | 1,458,270 |   |
| Approved drugs:                                                      |   |           |       |   |          |   |   |   |
|    Traditional Chinese Medicine subject to impairment |   |           | 9,414,455  |   |          |   | 9,081,528 |   |
| Non-traditional Chinese Medicine                                     |   |           | 5,878,950  |   |          |   | 5,671,050 |   |
| Total approved drugs                                                 |   |           | 15,293,405 |   |          |   | 14,752,578 |   |
| Total Intangible assets                                              |   |           | 16,805,135 |   |          |   | 16,210,848 |   |
| Less: accumulated amortization                                       |   |           | 1,509,718  |   |          |   | 978,562 |   |
|                                                                 |   |           |       |   |          |   |   |   |
|     Total                                        |   | $              | 15,295,417 |   |          | $      | 15,232,286 |   |

----

|                          |   | March 31, 2011 |      |   | June 30, 2010 |   |
|-------------------------------|--------|----------------|-----------|--------|---------------|--------|
|                          |   |           |      |   |          |   |
| Accounts payable              |   | $              | 1,517,489 |   |          | $      | 1,535,781 |   |
| Accrued expenses              |   |           | 39,000    |   |          |   | 180,000 |   |
|                          |   |           |      |   |          |   |   |   |
|     Total |   | $              | 1,556,489 |   |          | $      | 1,715,781 |   |

|                                                                                                                                                                                                                                                                                                 |   | March 31, |                  |   | June 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|-----------------------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                 |   | 2011      |                  |   | 2010     |   |
|                                                                                                                                                                                                                                                                                                 |   |      |                  |   |     |   |
|                                                                                                                                                                                                                                                                                                 |   |      |                  |   |     |   |
| On January 29, 2010, the Company obtained a loan from China CITIC Bank. The principal is to be paid in full by January 28, 2011.The interest is to be calculated using an annual fixed interest rate of 5.5755% and paid monthly. The loan is secured by the Company’s property and equipment. |   | $         |      - |   |     | $      |     1,473,000 |   |
|                                                                                                                                                                                                                                                                                                 |   |      |                  |   |     |   |   |   |
| On January 1, 2011, the Company obtained a loan from China CITIC                                                                                                                                                                                                                                     |   |      |                  |   |     |   |   |   |
| Bank. The principal is to be paid in full in July 29, 2011. The interest is                                                                                                                                                                                                                          |   |      |                  |   |     |   |   |   |
| calculated using an annual fixed interest rate of 6.1005% and paid                                                                                                                                                                                                                                   |   |      |                  |   |     |   |   |   |
| monthly. The loan is secured by the Company’s property and equipment.                                                                                                                                                                                                                          |   | $         | 1,221,600             |   |     | $      | - |   |
|                                                                                                                                                                                                                                                                                                 |   |      |                  |   |     |   |   |   |
| In March 2, 2011, the Company obtained a loan from China CITIC                                                                                                                                                                                                                                       |   |      |                  |   |     |   |   |   |
| Bank. The principal is to be paid in full in March 2, 2012. The interest is                                                                                                                                                                                                                          |   |      |                  |   |     |   |   |   |
| calculated using an annual fixed interest rate of 6.666% and paid                                                                                                                                                                                                                                    |   |      |                  |   |     |   |   |   |
| monthly. The loan is secured by the Company’s property and equipment.                                                                                                                                                                                                                          |   | $         | 1,527,000             |   |     | $      | - |   |
|                                                                                                                                                                                                                                                                                                 |   |      |                  |   |     |   |   |   |
| Total short-term bank loans                                                                                                                                                                                                                                                                          |   | $         | 2,748,600             |   |     | $      | 1,473,000 |   |

----

----

----

|                       |   | For the Nine Months Ended March 31 |      |
|----------------------------|--------|------------------------------------|-----------|
|                       |   | 2011                               |      |   | 2010 |   |
|                       |   |                               |      |   |   |   |
| Cash paid for interest     |   | $                                  | 72,599    |   |   | $ | 58,276 |   |
| Cash paid for income taxes |   | $                                  | 3,171,172 |   |   | $ | 1,572,675 |   |

----

|                                                        |   | Three Months Ended March 31, |       |
|-------------------------------------------------------------|--------|------------------------------|------------|
|                                                        |   |                         | 2011  |   |   |   | 2010 |   |
| Net income attributable to Tianyin Pharmaceutical Co., Inc. |   | $                            | 3,716,762  |   |   | $ | 2,909,480 |   |
|   (numerator for diluted income per share)        |   |                         |       |   |   |   |   |   |
| Less: Dividend attributable to preferred stockholders       |   |                         | 34,661     |   |   |   | 82,541 |   |
|                                                        |   |                         |       |   |   |   |   |   |
| Net income attributable to common stockholders              |   |                         | 3,682,101  |   |   |   | 2,826,939 |   |
|   (numerator for basic income per share)          |   |                         |       |   |   |   |   |   |
|                                                        |   |                         |       |   |   |   |   |   |
| Weighted average common shares                              |   |                         |       |   |   |   |   |   |
|   (denominator for basic income per share)        |   |                         | 28,218,732 |   |   |   | 26,363,749 |   |
|                                                        |   |                         |       |   |   |   |   |   |
| Effect of diluted securities:                               |   |                         |       |   |   |   |   |   |
|   Convertible preferred stock                     |   |                         | 1,148,656  |   |   |   | 2,125,528 |   |
|    Warrants                                  |   |                         | 455,208    |   |   |   | 3,142,053 |   |
|                                                        |   |                         |       |   |   |   |   |   |
| Weighted average common shares                              |   |                         |       |   |   |   |   |   |

|   (denominator for diluted income per share) |   |   | 29,822,596 |   |   |   | 31,631,330 |   |
|--------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                   |   |   |       |   |   |   |       |   |
| Basic net income per share                             |   | $      | 0.13       |   |   | $      | 0.11       |   |
| Diluted net income per share                           |   | $      | 0.12       |   |   | $      | 0.09       |   |

|                                                        |   | Nine Months Ended March 31, |       |
|-------------------------------------------------------------|--------|-----------------------------|------------|
|                                                        |   | 2011                        |       |   | 2010 |   |
|                                                        |   |                        |       |   |   |   |
| Net income attributable to Tianyin Pharmaceutical Co., Inc. |   | $                           | 11,794,691 |   |   | $ | 7,666,804 |   |
|   (numerator for diluted income per share)        |   |                        |       |   |   |   |   |   |
| Less: Dividend attributable to preferred stockholders       |   |                        | 143,019    |   |   |   | 414,762 |   |
|                                                        |   |                        |       |   |   |   |   |   |
| Net income attributable to common stockholders              |   |                        | 11,651,672 |   |   |   | 7,252,042 |   |
|   (numerator for basic income per share)          |   |                        |       |   |   |   |   |   |
|                                                        |   |                        |       |   |   |   |   |   |
| Weighted average common shares                              |   |                        |       |   |   |   |   |   |
|   (denominator for basic income per share)        |   |                        | 28,031,064 |   |   |   | 23,650,332 |   |
|                                                        |   |                        |       |   |   |   |   |   |
| Effect of diluted securities:                               |   |                        |       |   |   |   |   |   |
|   Convertible preferred stock                     |   |                        | 1,290,748  |   |   |   | 3,354,810 |   |
|    Warrants                                  |   |                        | 740,458    |   |   |   | 2,926,781 |   |
|                                                        |   |                        |       |   |   |   |   |   |
| Weighted average common shares                              |   |                        |       |   |   |   |   |   |
|   (denominator for diluted income per share)      |   |                        | 30,062,270 |   |   |   | 29,931,923 |   |
|                                                        |   |                        |       |   |   |   |   |   |
| Basic net income per share                                  |   | $                           | 0.42       |   |   | $ | 0.31 |   |
| Diluted net income per share                                |   | $                           | 0.39       |   |   | $ | 0.26 |   |

----

----

----

----

|                        |   |   | Three Months Ended March 31, |   |
|-----------------------------|--------|--------|------------------------------|--------|
|                        |   |   | 2011                         |   |   |   | 2010 |   |
|                        |   |   |                         |   |   |   |   |   |
| Sales                       |   | $      | 24.9                         |   |   | $ | 15.9 |   |
| Cost of sales               |   | $      | 14.0                         |   |   | $ | 7.5 |   |
| Gross profit                |   | $      | 10.8                         |   |   | $ | 8.4 |   |
| Operating expenses          |   | $      | 5.8                          |   |   | $ | 4.8 |   |
| Operating income            |   | $      | 5.0                          |   |   | $ | 3.6 |   |
| Provision for income taxes  |   | $      | 1.3                          |   |   | $ | 0.7 |   |
| Net income                  |   | $      | 3.7                          |   |   | $ | 2.9 |   |
| Foreign exchange adjustment |   | $      | 0.5                          |   |   | $ | (0.0) |   |
| Comprehensive income        |   | $      | 4.2                          |   |   | $ | 2.9 |   |

|   | · | GMOL: $5.6 million, prescription patented proprietary medicine for stroke treatment, nationally reimbursed; |
|--------|--------|-------------------------------------------------------------------------------------------------------------|

|   | · | APU: $1.8 million, OTC product with proprietary granular formulation for inflammation and rheumatism; |
|--------|--------|-------------------------------------------------------------------------------------------------------|

|   | · | AZI: $0.98 million, branded Essential Drug Listed (EDL) highly effective broad spectrum antibiotics; |
|--------|--------|------------------------------------------------------------------------------------------------------|

|   | · | XLCC: $1.1 million, formulated proprietary TCM oral liquid for immunity and sexual function enhancement; |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | QR: $0.77 million, modernized TCM legacy product for viral infections such as H1N1 influenza. |
|--------|--------|-----------------------------------------------------------------------------------------------|

----

|                                                      |   | For the nine months ended March 31, |                     |
|-----------------------------------------------------------|--------|-------------------------------------|--------------------------|
|                                                      |   | 2011                                |                     |   | 2010 |   |
| Cash provided by operating activities           |   | $                                   | 12.3                     |   |   | $ | 11.5 |   |
| Cash used in investing activities               |   |                                |    (10.0) |   |   |   | (8.4 | ) |
| Cash provided by (used in) financing activities |   |                                | 1.1                      |   |   |   | 7.8 |   |

----

|                                                                                      |   | Common Stock |       |
|------------------------------------------------------------------------------------------------|--------|--------------|------------|
| Outstanding, June 30, 2010                                                                     |   |         | 27,371,526 |   |
|    Newly issued, July 15, 2010 total of 614,500 shares at a fair value of $2.80 |   |         | 614,500    |   |
|    Newly converted, December 21, 2010 from 206,250 preferred shares             |   |         | 206,250    |   |
|    Newly converted, 1,154,000 preferred shares by March 18, 2011                |   |         | 1,154,000  |   |
|    Newly issued, 50,000 restricted shares, February 22, 2011                    |   |         | 50,000     |   |
| Outstanding, March 31, 2011                                                                    |   |         | 29,396,276 |   |

----

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

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

----

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

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

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

----

| Exhibit No. |                                                                                                                                                                       |  Document |
|-------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|
|        |                                                                                                                                                                       |
| 3.1         | Articles of Incorporation, as amended (Incorporated by reference to Exhibit 3.1 to our Annual Report on Form 10-K filed on September 29, 2010).                            |
|        |                                                                                                                                                                       |
| 3.2         | Bylaws (Incorporated by reference to Exhibit 3.2 to our Annual Report on Form 10-K filed on September 29, 2010).                                                           |
|        |                                                                                                                                                                       |
| 31.1        | Certification  of  Chief  Executive  Officer  required  by Rule 13a-14/15d-14(a) under the Exchange Act        |
|        |                                                                                                                                                                       |
| 31.2        | Certification of  Chief Accounting Officer required by Rule 13a-14/15d-14(a) under the Exchange Act                                                              |
|        |                                                                                                                                                                       |
| 32.1        | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                    |
|        |                                                                                                                                                                       |
| 32.2        | Certification of Acting Chief Accounting Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  |

----

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

----