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<SEC-DOCUMENT>0001297077-07-000026.txt : 20070802
<SEC-HEADER>0001297077-07-000026.hdr.sgml : 20070802
<ACCEPTANCE-DATETIME>20070802143357
ACCESSION NUMBER:		0001297077-07-000026
CONFORMED SUBMISSION TYPE:	8-K/A
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20070518
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070802
DATE AS OF CHANGE:		20070802

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHAMPIONS BIOTECHNOLOGY, INC.
		CENTRAL INDEX KEY:			0000771856
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-EATING & DRINKING PLACES [5810]
		IRS NUMBER:				521401755
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		8-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17263
		FILM NUMBER:		071019930

	BUSINESS ADDRESS:	
		STREET 1:		2200 WILSON BLVD
		STREET 2:		SUITE 102-316
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22201
		BUSINESS PHONE:		703-526-0400

	MAIL ADDRESS:	
		STREET 1:		2200 WILSON BLVD.
		STREET 2:		SUITE 102-316
		CITY:			ARLINGTON
		STATE:			VA
		ZIP:			22201

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CHAMPIONS SPORTS INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INTERNATIONAL GROUP INC
		DATE OF NAME CHANGE:	19860319
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K/A
<SEQUENCE>1
<FILENAME>cbi8k-a_biomerk.htm
<DESCRIPTION>8K/A - BIOMERK
<TEXT>
<html>
<head><meta content="text/html; charset=iso-8859-1">
<title>UNITED STATES</title>
</head>

<body >
<ul>
</ul>

<p>
<p align="center">
<b>UNITED STATES</b><br><b>SECURITIES AND EXCHANGE
COMMISSION</b><br><b>Washington, D.C. 20549</b><p align="center">
<b>FORM 8-K/A</b><p align="center">
<b>CURRENT REPORT</b><br><b>Pursuant to Section 13 OR 15(d) of the Securities
Exchange Act of 1934</b><p align="center">
Date of Report (Date of earliest event reported)<br>May 18,
2007<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br>(Exact name of registrant as specified
in its charter)</p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="210.666614" colspan="1" rowspan="1" >
<p align="center">
<b>Delaware</b></p align="center">
</td>
<td width="215.999946" colspan="1" rowspan="1" >
<p align="center">
<b>0-17263</b></p align="center">
</td>
<td width="210.666614" colspan="1" rowspan="1" >
<p align="center">
<b>52-1401755</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="210.666614" colspan="1" rowspan="1" >
<p align="center">
(State of other jurisdiction</p align="center">
</td>
<td width="215.999946" colspan="1" rowspan="1" >
<p align="center">
(Commission</p align="center">
</td>
<td width="210.666614" colspan="1" rowspan="1" >
<p align="center">
(IRS Employer</p align="center">
</td>
</tr>
<tr valign="top">
<td width="210.666614" colspan="1" rowspan="1" >
<p align="center">
of incorporation)</p align="center">
</td>
<td width="215.999946" colspan="1" rowspan="1" >
<p align="center">
File Number)</p align="center">
</td>
<td width="210.666614" colspan="1" rowspan="1" >
<p align="center">
Identification No.)</p align="center">
</td>
</tr>
</table></div>
<p>
<p align="center">
<b>2200 Wilson Blvd.</b><br><b>Suite 102-316</b><br><b>Arlington, Virginia
22201</b><br>(Address of principal executive offices, including zip
code)<p align="center">
<b>(703) 526-0400</b><br>(Registrant&#8217;s telephone number, including area
code)<p align="center">
(Former name or former address, if changed since last report.)<p>
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):<p>
[&nbsp;&nbsp;] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)<br>[&nbsp;&nbsp;] Soliciting material pursuant to Rule
14a-12 under the Exchange Act (17 CFR 240.14a-12)<br>[&nbsp;&nbsp;]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))<br>[&nbsp;&nbsp;] Pre-commencement communications pursuant
to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b></b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<!--<a name="_Toc147111976"></a>--><b>Item 2.01. Completion of Acquisition or
Disposition of Assets.</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Current Report on Form 8-K/A
amends the Current Report on Form 8-K filed on May 24, 2007 to include the
financial statements and pro forma information required by Item 9.01 of Form
8-K.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 24, 2007, a current report on
Form 8-K was filed in connection with the Registrant entering into an Agreement
and Plan of Merger under which Biomerk, Inc. merged with the Registrant&#8217;s
wholly-owned subsidiary in a reverse triangular merger and became a wholly-owned
subsidiary of the Registrant.  Biomerk, Inc. is a private company that is
focused on generating a novel preclinical platform of human cancer tumor
immune-deficient mice xenografts (Biomerk Tumorgrafts&#8482;). Biomerk, Inc. has
several patent applications relating to xenograft models used for identifying
potentially active chemotherapeutic agents. The Registrant issued 4,000,000
restricted shares of its common stock to acquire Biomerk, Inc.<p>
<!--<a name="_Toc147111982"></a>--><b>Item 9.01. Financial Statements and
Exhibits</b><p>
<i>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</i><font size="0"><i>
</i></font><i>Financial Statements of Business Acquired</i></p>
<p style="margin-left:45">The audited balance sheet of Biomerk,&nbsp;Inc. as of
December&nbsp;31, 2006, and the related statements of operations,
stockholders&#8217; deficit and cash flows for the period from September 6, 2006
(Inception) to December 31, 2006 together with the report thereon of independent
auditor, Bagell, Josephs, Levine &amp; Company L.L.C.  are attached hereto as
Exhibit&nbsp;99.1. </p><p>
</p>
<p style="margin-left:45">The unaudited balance sheet of Biomerk,&nbsp;Inc. as
of January&nbsp;31, 2007, and the related statements of operations,
stockholders&#8217; deficit and cash flows for the period ended January 31, 2007
and cumulative from September 6, 2006 (Inception) to January 31, 2007 together
with the report thereon of independent auditor, Bagell, Josephs, Levine &amp;
Company L.L.C. are attached as Exhibit 99.2.</p><p>
<p>
<i>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</i><font size="0"><i> </i></font><i>Pro
Forma Financial Information</i></p>
<p style="margin-left:45">The unaudited pro forma financial information included
with this Form 8-K/A has been prepared to illustrate the pro forma effects for
the acquisition of Biomerk, Inc. All pro forma information in this Form 8-K/A
has been prepared for informational purposes only and does not purport to be
indicative of what would have resulted had the acquisition actually occurred on
the dates indicated or what may result in the future. The unaudited pro forma
condensed consolidated balance sheet as of January 31, 2007 and the related
statements of operations for the nine months ended January 31, 2007 and for the
three months ended January 31, 2007 and the notes to the financial statements
are attached hereto as Exhibit&nbsp;99.3.</p><p>
<p>
<i>(c)</i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Exhibits</i></p>
<p style="margin-left:45">99.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The audited balance
sheet of Biomerk,&nbsp;Inc. as of December&nbsp;31, 2006, and the related
statements of operations, stockholders&#8217; deficit and cash flows for the
period from September 6, 2006 (Inception) to December 31,2006 together with the
report thereon of independent auditor, Bagell, Josephs, Levine &amp; Company
L.L.C.  </p><p>
</p>
<p style="margin-left:45">99.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The unaudited
balance sheet of Biomerk,&nbsp;Inc. as of January&nbsp;31, 2007, and the related
statements of operations, stockholders&#8217; deficit and cash flows for the
period ended January 31, 2007 and cumulative from September 6, 2006 (Inception)
to January 31, 2007 together with the report thereon of independent auditor,
Bagell, Josephs, Levine &amp; Company L.L.C.</p><p>
</p>
<p style="margin-left:45">99.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The unaudited pro
forma condensed consolidated balance sheet as of January 31, 2007 and the
related statements of operations for the nine months ended January 31, 2007 and
for the three months ended January 31, 2007 and the notes to the financial
statements.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>2</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>SIGNATURES</b><p>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
Date: July 31, 2007</p>
</td>
<td width="262.666601" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<b>Champions Biotechnology, Inc.</b></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
<td width="262.666601" colspan="2" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
<td width="262.666601" colspan="2" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
By:&nbsp;&nbsp;</p>
</td>
<td width="226.666610" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p style="border-bottom:solid windowtext .5pt">
<font size="3">/s/&nbsp;James Martell</font></p>
</td>
</tr>
<tr valign="top">
<td width="443.999889" colspan="2" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
<td width="226.666610" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
James Martell</p>
</td>
</tr>
<tr valign="top">
<td width="443.999889" colspan="2" rowspan="1" BGCOLOR=#ffffff>
&nbsp;</td>
<td width="226.666610" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
President and Chief Executive Officer</p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>3</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>


</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>cbi8ka_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1 - BIOMERK AUDITED FINANCIAL INFO. 12-31-06
<TEXT>
<html>
<head><meta content="text/html; charset=iso-8859-1">
<title>NOTE 1</title>
</head>

<body >
<ul>
</ul>

<p>
<p align="right">
Exhibit 99.1<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>FINANCIAL
STATEMENTS</b><br><!--<a name="OLE_LINK1"></a>--><b>FOR THE PERIOD SEPTEMBER 6, 2006
(INCEPTION)</b><br><b>TO DECEMBER 31, 2006</b></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b></b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>INDEX TO
FINANCIAL STATEMENTS</b><br><b>FOR THE PERIOD SEPTEMBER 6, 2006
(INCEPTION)</b><br><b>TO DECEMBER 31, 2006</b></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="478.666547" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b><u>Page(s)</u></b></p>
</td>
</tr>
<tr valign="top">
<td width="551.999862" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Report of Independent Registered Public Accounting Firm</p>
</td>
<td width="59.999985" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
1</p>
</td>
</tr>
<tr valign="top">
<td width="551.999862" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="551.999862" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
Financial Statements:</p>
</td>
</tr>
<tr valign="top">
<td width="551.999862" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="478.666547" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
Balance Sheet at December 31, 2006</p>
</td>
<td width="59.999985" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
2</p>
</td>
</tr>
<tr valign="top">
<td width="551.999862" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="539.999865" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Statements of Operations for the period September 6, 2006 </p>
</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="539.999865" colspan="2" rowspan="1" >
<p>
&nbsp;&nbsp;(Inception) through December 31, 2006 with cumulative</p>
</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="478.666547" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;totals since inception.</p>
</td>
<td width="59.999985" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
3</p>
</td>
</tr>
<tr valign="top">
<td width="551.999862" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="539.999865" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Statements of Changes in Stockholders&#8217; Deficit </p>
</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="539.999865" colspan="2" rowspan="1" >
<p>
&nbsp;&nbsp;for the Period September 6, 2006 (Inception) through </p>
</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="478.666547" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;December 31, 2006  </p>
</td>
<td width="59.999985" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
4</p>
</td>
</tr>
<tr valign="top">
<td width="551.999862" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="539.999865" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Statement of Cash Flows for the Period September 6, 2006</p>
</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="539.999865" colspan="2" rowspan="1" >
<p>
&nbsp;&nbsp;(Inception) through December 31, 2006 with cumulative </p>
</td>
</tr>
<tr valign="top">
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="478.666547" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;totals since inception</p>
</td>
<td width="59.999985" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
5</p>
</td>
</tr>
<tr valign="top">
<td width="551.999862" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Notes to the Financial Statements</p>
</td>
<td width="59.999985" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
6-10</p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b></b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b><u>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u></b><p>
To the Board of Directors<br>Biomerk, Inc.<br>Baltimore, MD<p>
We have audited the accompanying balance sheet of Biomerk, Inc. (the
&#8220;Company&#8221;), a development stage enterprise as of December 31, 2006,
and the related statements of operations, stockholders&#8217; deficit, and cash
flows for the period September 6, 2006 (Inception) to December 31, 2006. These
financial statements are the responsibility of the Company&#8217;s management.
Our responsibility is to express an opinion on these financial statements based
on our audit. <p>
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 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&#8217;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.<p>
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Biomerk, Inc. (the
&#8220;Company&#8221;), a development stage enterprise as of December 31, 2006
and the results of its operations and cash flows for the period September 6,
2006 (Inception) to December 31, 2006, in conformity with accounting principles
accepted in the United States of America. <p>
<b>Bagell Josephs Levine &amp; Company, L.L.C.</b><p>
Bagell Josephs Levine &amp; Company, L.L.C.<br>Gibbsboro, New Jersey<p>
July 31, 2007</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>1</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>BALANCE
SHEET</b><br><b>DECEMBER 31, 2006</b></p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b><u>ASSETS</u></b></font></p align="center">
</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Current Assets:</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Cash and cash equivalents </font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">430,233&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest receivable</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3,745&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">249&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current
Assets</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">434,227&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>TOTAL ASSETS</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">434,227&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b><u>LIABILITIES AND STOCKHOLDERS&#8217;
DEFICIT</u></b></font></p align="center">
</td>
<td width="113.333305" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>LIABILITIES</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2">Current Liabilities:</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Accounts payable</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,199&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Liability for stock to be issued</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">450,000&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current
Liabilities</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">451,199&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">451,199&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>STOCKHOLDERS&#8217; DEFICIT</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Common stock, $.01 par value; 10,000,000 shares
authorized; </font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;zero shares issued and outstanding
</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Deficit accumulated during the development
stage</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (16,972)</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders&#8217;
Deficit</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (16,972)</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>TOTAL LIABILITIES AND STOCKHOLDERS&#8217;
DEFICIT</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">434,227&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">The accompanying notes are an integral part of the financial
statements.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>2</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>BIOMERK, INC.</b></font><br><font size="2"><b>(A DEVELOPMENT
STAGE COMPANY)</b></font><br><font size="2"><b>STATEMENT OF
OPERATIONS</b></font><br><font size="2"><b>FOR THE PERIOD SEPTEMBER 6, 2006
(INCEPTION) TO DECEMBER  31, 2006</b></font><br><font size="2"><b>(WITH
CUMULATIVE TOTALS SINCE INCEPTION)</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>September 6, 2006</b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Cumulative Totals</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(Inception) to </b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>September 6, 2006 (Inception)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>December 31, 2006</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>through December 31, 2006</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>REVENUES</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>OPERATING EXPENSES</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Professional fees</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="right">
<font size="2">16,500&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p align="right">
<font size="2">16,500&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;General and administrative expenses</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">4,434&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">4,434&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating
expenses</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">20,934&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">20,934&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>LOSS BEFORE OTHER INCOME</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (20,934)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (20,934)</font></p>
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>OTHER INCOME</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Interest</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">3,962&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">3,962&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Other
Income</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">3,962&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">3,962&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>LOSS BEFORE PROVISION FOR INCOME TAXES</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (16,972)</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (16,972)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;Provision for income taxes</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
<p>
<font size="2"><b>NET LOSS APPLICABLE TO COMMON SHARES</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (16,972)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (16,972)</font></p>
</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
<p>
<font size="2"><b>WEIGHTED AVERAGE COMMON SHARES OUTSTANDING</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="365.333242" colspan="1" rowspan="1" >
<p>
<font size="2"><b>NET LOSS PER COMMON SHARES OUTSTANDING</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">The accompanying notes are an integral part of the financial
statements.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>3</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>BIOMERK, INC.</b></font><br><font size="2"><b>(A DEVELOPMENT
STAGE COMPANY)</b></font><br><font size="2"><b>STATEMENT OF CHANGES IN
STOCKHOLDERS&#8217; DEFICIT</b></font><br><font size="2"><b>FOR THE PERIOD
SEPTEMBER 6, 2006 (INCEPTION) TO DECEMBER 31, 2006</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="310.666589" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Deficit </b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="310.666589" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Accumulated</b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="310.666589" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>During the</b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="310.666589" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="207.999948" colspan="3" rowspan="1" >
<p align="center">
<font size="2"><b>Common Stock</b></font></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Additional </b></font></p align="center">
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Development</b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="310.666589" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>Description</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Shares</b></font></p align="center">
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Amount</b></font></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Paid - In Capital</b></font></p align="center">
</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Stage</b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Total</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="310.666589" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="310.666589" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>Balance, September 6, 2006</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="310.666589" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="310.666589" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Net activity for the period September 6, 2006 </font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="310.666589" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;(Inception) to December 31, 2006</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (16,972)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (16,972)</font></p>
</td>
</tr>
<tr valign="top">
<td width="310.666589" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="121.333303" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="310.666589" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Balance, December 31, 2006</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="121.333303" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (16,972)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (16,972)</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">The accompanying notes are an integral part of the financial
statements.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>4</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>BIOMERK, INC.</b></font><br><font size="2"><b>(A DEVELOPMENT
STAGE COMPANY)</b></font><br><font size="2"><b>STATEMENT OF CASH
FLOW</b></font><br><font size="2"><b>FOR
THE</b></font><br><font size="2"><b>PERIOD SEPTEMBER 6, 2006 (INCEPTION) TO
DECEMBER 31, 2006</b></font><br><font size="2"><b>(WITH CUMULATIVE TOTALS SINCE
INCEPTION)</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Cumulative Totals</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>September 6, 2006</b></font></p align="center">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>September 6, 2006</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>(Inception) to </b></font></p align="center">
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>through</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>December 31, 2006</b></font></p align="center">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>December 31, 2006</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH FLOWS FROM OPERATING ACTIVITIES</b></font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (loss)</font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (16,972)</font></p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (16,972)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Adjustments to reconcile net loss to net
cash</font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;(used in) operating activities</font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Changes in assets and liabilities</font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest receivable</font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(3,745)</font></p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,745)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(249)</font></p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(249)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,199&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,199&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Adjustments</font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(2,795)</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(2,795)</font></p>
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) operating
activities</b></font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(19,767)</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19,767)</font></p>
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>CASH FLOWS FROM FINANCING ACTIVITIES</b></font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Liability for stock to be issued</font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">450,000&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;450,000&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing
activities</b></font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">450,000&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;450,000&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>NET INCREASE IN CASH</b></font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">430,233&nbsp;</font></p align="right">
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">430,233&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>CASH - BEGINNING OF PERIOD</b></font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>CASH - END OF PERIOD</b></font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;430,233&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;430,233&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>SUPPLEMENTAL CASH FLOW INFORMATION:</b></font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;During the year, cash was paid for the
following:</font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="139.999965" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="145.333297" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income Taxes</font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="145.333297" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="367.999908" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest</font></p>
</td>
<td width="39.999990" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="139.999965" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
</td>
<td width="13.333330" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="145.333297" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">The accompanying notes are an integral part of the financial
statements.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>5</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>NOTES TO
FINANCIAL STATEMENTS </b><br><b>FOR THE PERIOD SEPTEMBER 6, 2006 (INCEPTION)
THROUGH</b><br><b>DECEMBER 31, 2006 </b><p>
<b>NOTE 1 -</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>NATURE OF
BUSINESS</u></b></p>
<p style="margin-left:80">Biomerk, Inc. (the &#8220;Company&#8221;), a
development stage company, was incorporated in the State of Maryland on
September 6, 2006. Biomerk, Inc. plans to focus on biotechnology as its business
approach.<br><br>The Company is focused on generating a novel preclinical
platform of human cancer tumor immune-deficient mice xenografts (Biomerk
Tumorgrafts&#8482;). </p><p>
<p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</u></b> <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Development
Stage Company</u></b></p>
<p style="margin-left:80">The Company is considered to be in the development
stage as defined in Statement of Financial Accounting Standards (SFAS) No. 7,
&#8220;Accounting and Reporting by Development Stage Enterprises&#8221;. The
Company has devoted substantially all of its efforts to business planning, and
development. Additionally, the Company has allocated a substantial portion of
their time and investment in bringing their product to the market, and the
raising of capital.</p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Company
Year End</u></b></p>
<p style="margin-left:80">The Company is a December 31st year-end.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash
and Cash Equivalents</u></b></p>
<p style="margin-left:80">For financial statement presentation purposes, the
Company considers short-term, highly liquid investments with original maturities
of three months or less to be cash and cash equivalents. </p><p>
</p>
<p style="margin-left:80">The Company maintains cash and cash equivalent
balances at a financial institution that is insured by the Federal Deposit
Insurance Corporation up to $100,000. </p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Revenue
Recognition</u></b></p>
<p style="margin-left:80">The Company&#8217;s financial statements are prepared
under the accrual method of accounting. Revenues will be recognized in the
period the services are performed and costs are recorded in the period incurred
rather than paid.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>6</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>NOTES TO
FINANCIAL STATEMENTS (CONTINUED) </b><br><b>FOR THE PERIOD SEPTEMBER 6, 2006
(INCEPTION) THROUGH</b><br><b>DECEMBER 31, 2006</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Fair
Value of Financial Instrument</u>s</b></p>
<p style="margin-left:80">The Company&#8217;s financial instruments are all
carried at amounts that approximate their estimated fair value as of December
31, 2006.  </p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Income
Taxes</u></b></p>
<p style="margin-left:80">The provision for income taxes includes the tax
effects of transactions reported in the financial statements. Deferred taxes
would be recognized for differences between the basis for assets and liabilities
for financial statement and income tax purposes. The major difference relates to
the net operating loss carry forwards generated by sustaining deficits during
the development stage.</p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Use
of Estimates</u></b></p>
<p style="margin-left:80">The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Advertising
Costs</u></b></p>
<p style="margin-left:80">Advertising and promotions costs are expensed as
incurred.  The Company incurred no such expenses since inception.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>7</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>NOTES TO
FINANCIAL STATEMENTS (CONTINUED) </b><br><b>FOR THE PERIOD SEPTEMBER 6, 2006
(INCEPTION) THROUGH</b><br><b>DECEMBER 31, 2006</b><p>
<b>NOTE 2-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</u></b> <b><u>(CONTINUED)</u></b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Recent
Accounting Pronouncements</u></b></p>
<p style="margin-left:80">In February&nbsp;2006, the FASB issued SFAS
No.&nbsp;155, &#8220;Accounting for Certain Hybrid Financial Instruments, an
amendment of FASB Statements No.&nbsp;133 and 140.&#8221; SFAS No.&nbsp;155
resolves issues addressed in SFAS No.&nbsp;133 Implementation Issue No.&nbsp;D1,
&#8220;Application of Statement 133 to Beneficial Interests in Securitized
Financial Assets,&#8221; and permits fair value remeasurement for any hybrid
financial instrument that contains an embedded derivative that otherwise would
require bifurcation, clarifies which interest-only strips and principal-only
strips are not subject to the requirements of SFAS No.&nbsp;133, establishes a
requirement to evaluate interests in securitized financial assets to identify
interests that are freestanding derivatives or that are hybrid financial
instruments that contain an embedded derivative requiring bifurcation, clarifies
that concentrations of credit risk in the form of subordination are not embedded
derivatives and amends SFAS No.&nbsp;140 to eliminate the prohibition on a
qualifying special-purpose entity from holding a derivative financial instrument
that pertains to a beneficial interest other than another derivative financial
instrument. SFAS No.&nbsp;155 is effective for all financial instruments
acquired or issued after the beginning of the first fiscal year that begins
after September&nbsp;15, 2006. The Company is currently evaluating the effect
the adoption of SFAS No.&nbsp;155 will have on its financial position or results
of operations. </p><p>
</p>
<p style="margin-left:80">In March&nbsp;2006, the FASB issued SFAS No.&nbsp;156,
&#8220;Accounting for Servicing of Financial Assets, an amendment of FASB
Statement No.&nbsp;140.&#8221; SFAS No.&nbsp;156 requires an entity to recognize
a servicing asset or liability each time it undertakes an obligation to service
a financial asset by entering into a servicing contract under a transfer of the
servicer&#8217;s financial assets that meets the requirements for sale
accounting, a transfer of the servicer&#8217;s financial assets to a qualified
special-purpose entity in a guaranteed mortgage securitization in which the
transferor retains all of the resulting securities and classifies them as either
available-for-sale or trading securities in accordance with SFAS No.&nbsp;115,
&#8220;Accounting for Certain Investments in Debt and Equity Securities&#8221;
and an acquisition or assumption of an obligation to service a financial asset
that does not relate to financial assets of the servicer or its consolidated
affiliates. Additionally, SFAS No.&nbsp;156 requires all separately recognized
servicing assets and servicing liabilities to be initially measured at fair
value, permits an entity to choose either the use of an amortization or fair
value method for subsequent measurements, permits at initial adoption a one-time
reclassification of available-for-sale securities to trading securities by
entities with recognized servicing rights and requires separate presentation of
servicing assets and liabilities subsequently measured at fair value and
additional disclosures for all separately recognized servicing assets and
liabilities. SFAS No.&nbsp;156 is effective for transactions entered into after
the beginning of the first fiscal year that begins after September&nbsp;15,
2006. The Company is currently evaluating the effect the adoption of SFAS
No.&nbsp;156 will have on its financial position or results of operations.
</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>8</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>NOTES TO
FINANCIAL STATEMENTS (CONTINUED) </b><br><b>FOR THE PERIOD SEPTEMBER 6, 2006
(INCEPTION) THROUGH</b><br><b>DECEMBER 31, 2006</b><p>
<b>NOTE 2-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</u></b> <b><u>(CONTINUED)</u></b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Recent
Accounting Pronouncements (Continued)</u></b></p>
<p style="margin-left:80">In September 2006, the FASB issued
SFAS&nbsp;No.&nbsp;157 &#8220;Fair Value Measurements,&#8221; which provides a
definition of fair value, establishes a framework for measuring fair value and
requires expanded disclosures about fair value measurements.
SFAS&nbsp;No.&nbsp;157 is effective for financial statements issued for fiscal
years beginning after November&nbsp;15, 2007 and interim periods within those
fiscal years. The provisions of SFAS&nbsp;No.&nbsp;157 should be applied
prospectively. Management is assessing the potential impact on its financial
condition and results of operations. </p><p>
</p>
<p style="margin-left:80">In September 2006, the FASB issued
SFAS&nbsp;No.&nbsp;158 &#8220;Employers&#8217; Accounting for Defined Benefit
Pension and Other Postretirement Plans&#8221;, which amends
SFAS&nbsp;No.&nbsp;87 &#8220;Employers&#8217; Accounting for Pensions&#8221;
(SFAS&nbsp;No.&nbsp;87), SFAS&nbsp;No.&nbsp;88 &#8220;Employers&#8217;
Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and
for Termination Benefits&#8221; (SFAS&nbsp;No.&nbsp;88), SFAS&nbsp;No.&nbsp;106
&#8220;Employers&#8217; Accounting for Postretirement Benefits Other Than
Pensions&#8221; (SFAS&nbsp;No.&nbsp;106), and SFAS&nbsp;No.&nbsp;132R
&#8220;Employers&#8217; Disclosures about Pensions and Other Postretirement
Benefits (revised 2003)&#8221; (SFAS&nbsp;No.&nbsp;132R). This statement
requires companies to recognize an asset or liability for the overfunded or
underfunded status of their benefit plans in their financial statements.
SFAS&nbsp;No.&nbsp;158 also requires the measurement date for plan assets and
liabilities to coincide with the sponsor&#8217;s year-end. The standard provides
two transition alternatives related to the change in measurement date
provisions. The recognition of an asset and liability related to the funded
status provision is effective for fiscal year ending after December&nbsp;15,
2006 and the change in measurement date provisions is effective for fiscal years
ending after December&nbsp;15, 2008. This pronouncement has no effect on the
Company at this time.</p><p>
<p>
<b>NOTE 3-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>LIABILITY FOR STOCK TO BE
ISSUED</u></b></p>
<p style="margin-left:80">This account represents funds received by the Company
in advance for stock as of yet not issued.  The stock was issued on May 14,
2007.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>9</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>NOTES TO
FINANCIAL STATEMENTS (CONTINUED) </b><br><b>FOR THE PERIOD SEPTEMBER 6, 2006
(INCEPTION) THROUGH</b><br><b>DECEMBER 31, 2006</b><p>
<b>NOTE 4-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCKHOLDERS&#8217;
DEFICIT</u></b></p>
<p style="margin-left:80">On September 6, 2006 the Company was formed with one
class of common stock, par value $.01. The Company is authorized to issue
10,000,000 shares of common stock.  There were no stock options or warrants
issued or outstanding.</p><p>
<p>
<b>NOTE 5-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>PROVISION FOR INCOME
TAXES</u></b></p>
<p style="margin-left:80">Deferred income taxes will be determined using the
liability method for the temporary differences between the financial reporting
basis and income tax basis of the Company&#8217;s assets and liabilities.
Deferred income taxes will be measured based on the tax rates expected to be in
effect when the temporary differences are included in the Company&#8217;s tax
return.  Deferred tax assets and liabilities are recognized based on anticipated
future tax consequences attributable to differences between financial statement
carrying amounts of assets and liabilities and their respective tax
bases.</p><p>
</p>
<p style="margin-left:80">At December 31, 2006, deferred tax assets consist of
the following:</p><p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="233.333275" colspan="1" rowspan="1" >
<p>
Net operating loss carryforwards</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
$</p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right">
6,800&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="233.333275" colspan="1" rowspan="1" >
<p>
Less:  valuation allowance</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">  (6,800)</font></p>
</td>
</tr>
<tr valign="top">
<td width="233.333275" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
$</p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">At December 31, 2006, the Company had accumulated
deficits of $16,972 during the development stage to offset future taxable
income.  The Company will establish valuation allowances equal to the full
amount of the deferred tax assets due to the uncertainty of the utilization of
the operating losses in future periods.</p><p>
<p>
<b>NOTE 5-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUBSEQUENT EVENT </b></p>
<p style="margin-left:80">On May 18, 2007, the Company entered into an Agreement
and Plan of Merger with Champions Biotechnology, Inc., a publicly-traded
company. Champions Biotechnology, Inc. intends to engage in the acquisition and
early stage development of a portfolio of new therapeutic drug candidates and
also the acquisition and development of novel technologies that it hopes will
improve methods of and approaches to disease treatment.  Champions
Biotechnology, Inc. issued 4,000,000 shares of its common stock for all of the
outstanding shares of Biomerk,
Inc.<br></p><div align="center" color="#000080" style="position:relative; left: -5"><b>10</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p style="margin-left:80"></p>

</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>cbi8ka_ex99-2.htm
<DESCRIPTION>EXHIBIT 99.2 - BIOMERK UNAUDITED FINANCIAL INFO. 01-31-07
<TEXT>
<html>
<head><meta content="text/html; charset=iso-8859-1">
<title>NOTE 1</title>
</head>

<body >
<ul>
</ul>

<p align="right">
Exhibit 99.2<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>FINANCIAL
STATEMENTS</b><br><!--<a name="OLE_LINK1"></a>--><b>FOR THE ONE MONTH ENDED JANUARY 31,
2007</b><br><b>(WITH CUMLATIVE TOTALS SINCE
INCEPTION)</b><br><b>(UNAUDITED)</b></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b></b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p align="center">
<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>INDEX TO
FINANCIAL STATEMENTS</b><br><b>FOR THE ONE MONTH ENDED JANUARY 31,
2007</b><br><b>(WITH CUMULATIVE TOTALS SINCE
INCEPTION)</b><br><b>(UNAUDITED)</b></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="521.333203" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b><u>Page(s)</u></b></p>
</td>
</tr>
<tr valign="top">
<td width="599.999850" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="539.999865" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Report of Independent Registered Public Accounting Firm</p>
</td>
<td width="59.999985" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
1</p>
</td>
</tr>
<tr valign="top">
<td width="599.999850" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="599.999850" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
Financial Statements (Unaudited):</p>
</td>
</tr>
<tr valign="top">
<td width="599.999850" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="521.333203" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
Balance Sheet at January 31, 2007 (Unaudited)</p>
</td>
<td width="59.999985" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
2</p>
</td>
</tr>
<tr valign="top">
<td width="599.999850" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Statements of Operations for the One Month ended</p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" >
<p>
&nbsp;&nbsp;January 31, 2007 and for the Period September 6, 2006 </p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;(Inception) through January 31, 2007 with cumulative</p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="521.333203" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;totals since inception. </p>
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p>
3</p>
</td>
</tr>
<tr valign="top">
<td width="599.999850" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" >
<p>
Statements of Changes in Stockholders&#8217; Deficit </p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;for the Period September 6, 2006 (Inception) through </p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="521.333203" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;January 31, 2007.   </p>
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p>
4</p>
</td>
</tr>
<tr valign="top">
<td width="599.999850" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" >
<p>
Statement of Cash Flows for the One Month ended</p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;January 31, 2007 and the Period September 6, 2006</p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="581.333188" colspan="2" rowspan="1" >
<p>
&nbsp;&nbsp;(Inception) through January 31, 2007 with cumulative </p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="521.333203" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;totals since inception. </p>
</td>
<td width="59.999985" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
5</p>
</td>
</tr>
<tr valign="top">
<td width="599.999850" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="539.999865" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
Notes to the Financial Statements</p>
</td>
<td width="59.999985" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
6-11</p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b></b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>BAGELL, JOSEPHS, LEVINE &amp; COMPANY, L.L.C.</b><br>Certified Public
Accountants<br>High Ridge Commons<br>200 Haddonfield Berlin Road<br>Suites
400-403<br>Gibbsboro, New Jersey 08026<br>(856) 346-2828  Fax (856)
346-2882<p align="center">
<b><u>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u></b><p>
To the Board of Directors<br>Biomerk, Inc. <br>Baltimore, MD<p>
We have reviewed the accompanying balance sheets of Biomerk, Inc. (the
&#8220;Company&#8221;) a development stage company as of January 31, 2007 and
the related statements of operations, changes in stockholders&#8217;deficit, and
cash flows for the one month ended January 31, 2007. These interim financial
statements are the responsibility of the Company&#8217;s management. <p>
We conducted our review in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  A review of interim financial
information consists primarily of inquiries of Company personnel and analytical
procedures applied to financial data.  It is substantially less in scope than an
audit in accordance with standards of the Public Company Accounting Oversight
Board, the objective of which is the expression of an opinion regarding the
financial statements taken as a whole.  Accordingly, we do not express such an
opinion.<p>
Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements in order for them to be in
conformity with U.S. generally accepted accounting principles.<p>
<b>BAGELL, JOSEPHS, LEVINE &amp; COMPANY, L.L.C.</b><p>
BAGELL, JOSEPHS, LEVINE &amp; COMPANY, L.L.C.<br>Certified Public
Accountants<br>Gibbsboro, New Jersey</p>
&nbsp;July 31, 2007	<p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="137.333299" colspan="1" rowspan="1" >
<p>
<font size="2">MEMBER OF:</font></p>
</td>
<td width="459.999885" colspan="1" rowspan="1" >
<p>
<font size="2">AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
(AICPA)</font></p>
</td>
</tr>
<tr valign="top">
<td width="137.333299" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="459.999885" colspan="1" rowspan="1" >
<p>
<font size="2">CENTER FOR PUBLIC COMPANY AUDIT FIRMS (CPCAF)</font></p>
</td>
</tr>
<tr valign="top">
<td width="137.333299" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="459.999885" colspan="1" rowspan="1" >
<p>
<font size="2">NEW JERSEY SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS</font></p>
</td>
</tr>
<tr valign="top">
<td width="137.333299" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="459.999885" colspan="1" rowspan="1" >
<p>
<font size="2">PENNSYLVANIA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS</font></p>
</td>
</tr>
<tr valign="top">
<td width="137.333299" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="459.999885" colspan="1" rowspan="1" >
<p>
<font size="2">FLORIDA STATE BOARD OF ACCOUNTANCY</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>1</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>BIOMERK, INC.</b></font><br><font size="2"><b>(A DEVELOPMENT
STAGE COMPANY)</b></font><br><font size="2"><b>BALANCE
SHEET</b></font><br><font size="2"><b>JANUARY 31,
2007</b></font><br><font size="2"><b>(UNAUDITED)</b></font></p align="center">
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b><u>ASSETS</u></b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Current Assets:</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents
</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;399,650&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest receivable</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,529&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25,202&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Total Current Assets</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;429,381&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<font size="2"><b>TOTAL ASSETS</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;429,381&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b><u>LIABILITIES AND STOCKHOLDERS&#8217;
DEFICIT</u></b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<font size="2"><b>LIABILITIES</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Current Liabilities:</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Accounts payable</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,157&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Liability for stock to be issued</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;450,000&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>Total Current Liabilities</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">451,157&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Liabilities</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;451,157&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>STOCKHOLDERS&#8217; (DEFICIT)</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Common stock, $.01 par value; 10,000,000 shares
authorized; </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;zero shares issued and outstanding
</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Deficit accumulated during the development
stage</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21,776)</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Stockholders&#8217;
(Deficit)</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21,776)</font></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="125.333302" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>TOTAL LIABILITIES AND STOCKHOLDERS&#8217;
(DEFICIT)</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;429,381&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
The accompanying notes are an integral part of the financial
statements.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>2</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>BIOMERK, INC.</b></font><br><font size="2"><b>(A DEVELOPMENT
STAGE COMPANY)</b></font><br><font size="2"><b>STATEMENT OF
OPERATIONS</b></font><br><font size="2"><b>FOR THE ONE MONTH ENDED JANUARY  31,
2007</b></font><br><font size="2"><b>(WITH CUMULATIVE TOTALS SINCE
INCEPTION)</b></font><br><font size="2"><b>(UNAUDITED)</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Cumulative Totals</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>September 6, 2006</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>One Month Ended</b></font></p align="center">
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>(Inception) through</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>January 31, 2007</b></font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>January 31, 2007</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>REVENUES</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="123.999969" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$   </font></p align="right">
</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>OPERATING EXPENSES</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Professional fees</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,500&nbsp;</font></p align="right">
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22,000&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;General and administrative expenses</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,614&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,048&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating
expenses</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,114&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28,048&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>LOSS BEFORE OTHER INCOME</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7,114)</font></p align="right">
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28,048)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>OTHER INCOME</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Interest</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,310&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,272&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Other
Income</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,310&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,272&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>LOSS BEFORE PROVISION FOR INCOME TAXES</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,804)</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21,776)</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;Provision for income taxes</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p align="right">
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>NET LOSS APPLICABLE TO COMMON SHARES</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="123.999969" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4,804)</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="131.999967" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21,776)</font></p>
</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>WEIGHTED AVERAGE COMMON SHARES </b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;OUTSTANDING</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>NET (LOSS) PER COMMON SHARES</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="123.999969" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="407.999898" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;OUTSTANDING</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="123.999969" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">The accompanying notes are an integral part of the financial
statements.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>3</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>BIOMERK, INC.</b></font><br><font size="2"><b>(A DEVELOPMENT
STAGE COMPANY)</b></font><br><font size="2"><b>STATEMENT OF CHANGES IN
STOCKHOLDERS&#8217; DEFICIT</b></font><br><font size="2"><b>FOR THE PERIOD
SEPTEMBER 6, 2006 (INCEPTION) TO DECEMBER 31,
2006</b></font><br><font size="2"><b>AND THE ONE MONTH ENDED JANUARY 31,
2007</b></font><br><font size="2"><b>(UNAUDITED)</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Deficit </b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Accumulated</b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>During the</b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="209.333281" colspan="3" rowspan="1" >
<p align="center">
<font size="2"><b>Common Stock</b></font></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Additional</b></font></p align="center">
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Development</b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>Description</b></font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Shares</b></font></p align="center">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Amount</b></font></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Paid - In Capital</b></font></p align="center">
</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Stage</b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Total</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>Balance, September 6, 2006</b></font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="111.999972" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="110.666639" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Net activity for the period September 6, 2006 </font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;(Inception) to December 31, 2006</font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (16,972)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (16,972)</font></p>
</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Balance, December 31, 2006</b></font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (16,972)</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (16,972)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" >
<p>
<font size="2">Net activity for the one month ended January 31, 2007</font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (4,804)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (4,804)</font></p>
</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Balance, January 31, 2007</b></font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="111.999972" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="110.666639" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (21,776)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (21,776)</font></p>
</td>
</tr>
<tr valign="top">
<td width="361.333243" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="111.999972" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="110.666639" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
</table></div>
<p>
<p align="center">
The accompanying notes are an integral part of the financial
statements.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>4</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>BIOMERK, INC.</b></font><br><font size="2"><b>(A DEVELOPMENT
STAGE COMPANY)</b></font><br><font size="2"><b>STATEMENT OF CASH
FLOWS</b></font><br><font size="2"><b>FOR THE ONE MONTH ENDED JANUARY 31,
2007</b></font><br><font size="2"><b>(WITH CUMULATIVE TOTALS SINCE
INCEPTION)</b></font><br><font size="2"><b>(UNAUDITED)</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Cumulative Totals</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>September 6, 2006</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Month Ended</b></font></p align="center">
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>(Inception) through</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>January 31, 2007</b></font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>January 31, 2007</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH FLOWS FROM OPERATING ACTIVITIES</b></font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (4,804)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (21,776)</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Adjustments to reconcile net loss to net
cash</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp; (used in) operaing activities</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
<font size="2">Changes in assets and liabilities</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest receivable</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(784)</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (4,529)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(24,953)</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (25,202)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(42)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,157&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p>
<font size="2"> </font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Adjustments</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(25,779)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"> </font></p>
</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(28,574)</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) operating
activities</b></font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(30,583)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (50,350)</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>CASH FLOW FROM FINANCING ACTIVITIES</b></font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liability for stock to be
issued</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">450,000&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">450,000&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing
activities</b></font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">450,000&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p>
<font size="2"> </font></p>
</td>
<td width="141.333298" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">450,000&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
<font size="2"><b>NET DECREASE IN CASH</b></font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(30,583)</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
<p align="right">
<font size="2">399,650&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH - BEGINNING OF PERIOD</b></font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">430,233&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH - END OF PERIOD</b></font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;399,650&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="141.333298" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;399,650&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
<font size="2"><b>SUPPLEMENTAL CASH FLOW INFORMATION</b></font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">During the year, cash was paid for the following:</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"> </font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Income Taxes</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="141.333298" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="379.999905" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Interest </font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="141.333298" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
The accompanying notes are an integral part of the financial
statements.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>5</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div>&nbsp;	<p>
<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>NOTES TO THE
FINANCIAL STATEMENTS</b><br><b>FOR THE ONE MONTH ENDED JANUARY 31,
2007</b><br><b>(WITH CUMULATIVE TOTALS SINCE
INCEPTION)</b><br><b>(UNAUDITED)</b><p>
<b>NOTE 1-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>NATURE OF BUSINESS</u></b></p>
<p style="margin-left:80">Biomerk, Inc. (the &#8220;Company&#8221;), a
development stage company, was incorporated in the State of Maryland on
September 6, 2006. Biomerk, Inc. plans to focus on biotechnology as its business
approach.<br><br>The Company is focused on generating a novel preclinical
platform of human cancer tumor immune-deficient mice xenografts (Biomerk
Tumorgrafts&#8482;).</p><p>
<p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</u></b> <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Development
Stage Company</u></b></p>
<p style="margin-left:80">The Company is considered to be in the development
stage as defined in Statement of Financial Accounting Standards (SFAS) No. 7,
&#8220;Accounting and Reporting by Development Stage Enterprises&#8221;. The
Company has devoted substantially all of its efforts to business planning, and
development. Additionally, the Company has allocated a substantial portion of
their time and investment in bringing their product to the market, and the
raising of capital.</p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Company
Year End</u></b></p>
<p style="margin-left:80">The Company is a December 31st year-end.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash
and Cash Equivalents</u></b></p>
<p style="margin-left:80">For financial statement presentation purposes, the
Company considers short-term, highly liquid investments with original maturities
of three months or less to be cash and cash equivalents. </p><p>
</p>
<p style="margin-left:80">The Company maintains cash and cash equivalent
balances at a financial institution that is insured by the Federal Deposit
Insurance Corporation up to $100,000.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>6</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div>&nbsp;	<p>
<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>NOTES TO THE
FINANCIAL STATEMENTS (CONTINUED)</b><br><b>FOR THE ONE MONTH ENDED JANUARY 31,
2007</b><br><b>(WITH CUMULATIVE TOTALS SINCE
INCEPTION)</b><br><b>(UNAUDITED)</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)</u></b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Revenue
Recognition</u></b></p>
<p style="margin-left:80">The Company&#8217;s financial statements are prepared
under the accrual method of accounting. Revenues will be recognized in the
period the services are performed and costs are recorded in the period incurred
rather than paid.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Fair
Value of Financial Instruments</u></b></p>
<p style="margin-left:80">The Company&#8217;s financial instruments are all
carried at amounts that approximate their estimated fair value as of January 31,
2007.  </p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Income
Taxes</u></b></p>
<p style="margin-left:80">The provision for income taxes includes the tax
effects of transactions reported in the financial statements. Deferred taxes
would be recognized for differences between the basis for assets and liabilities
for financial statement and income tax purposes. The major difference relates to
the net operating loss carry forwards generated by sustaining deficits during
the development stage.</p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Use
of Estimates</u></b></p>
<p style="margin-left:80">The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.</p><p>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Advertising
Costs</u></b></p>
<p style="margin-left:80">Advertising and promotions costs are expensed as
incurred. The Company incurred no such expenses since inception.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>7</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>NOTES TO THE
FINANCIAL STATEMENTS (CONTINUED)</b><br><b>FOR THE ONE MONTH ENDED JANUARY 31,
2007</b><br><b>(WITH CUMULATIVE TOTALS SINCE
INCEPTION)</b><br><b>(UNAUDITED)</b><p>
<b>NOTE 2-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES</u></b> <b><u>(CONTINUED)</u></b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Recent
Accounting Pronouncements</u></b></p>
<p style="margin-left:80">In February&nbsp;2006, the FASB issued SFAS
No.&nbsp;155, &#8220;Accounting for Certain Hybrid Financial Instruments, an
amendment of FASB Statements No.&nbsp;133 and 140.&#8221; SFAS No.&nbsp;155
resolves issues addressed in SFAS No.&nbsp;133 Implementation Issue No.&nbsp;D1,
&#8220;Application of Statement 133 to Beneficial Interests in Securitized
Financial Assets,&#8221; and permits fair value remeasurement for any hybrid
financial instrument that contains an embedded derivative that otherwise would
require bifurcation, clarifies which interest-only strips and principal-only
strips are not subject to the requirements of SFAS No.&nbsp;133, establishes a
requirement to evaluate interests in securitized financial assets to identify
interests that are freestanding derivatives or that are hybrid financial
instruments that contain an embedded derivative requiring bifurcation, clarifies
that concentrations of credit risk in the form of subordination are not embedded
derivatives and amends SFAS No.&nbsp;140 to eliminate the prohibition on a
qualifying special-purpose entity from holding a derivative financial instrument
that pertains to a beneficial interest other than another derivative financial
instrument. SFAS No.&nbsp;155 is effective for all financial instruments
acquired or issued after the beginning of the first fiscal year that begins
after September&nbsp;15, 2006. The Company is currently evaluating the effect
the adoption of SFAS No.&nbsp;155 will have on its financial position or results
of operations. </p><p>
</p>
<p style="margin-left:80">In March&nbsp;2006, the FASB issued SFAS No.&nbsp;156,
&#8220;Accounting for Servicing of Financial Assets, an amendment of FASB
Statement No.&nbsp;140.&#8221; SFAS No.&nbsp;156 requires an entity to recognize
a servicing asset or liability each time it undertakes an obligation to service
a financial asset by entering into a servicing contract under a transfer of the
servicer&#8217;s financial assets that meets the requirements for sale
accounting, a transfer of the servicer&#8217;s financial assets to a qualified
special-purpose entity in a guaranteed mortgage securitization in which the
transferor retains all of the resulting securities and classifies them as either
available-for-sale or trading securities in accordance with SFAS No.&nbsp;115,
&#8220;Accounting for Certain Investments in Debt and Equity Securities&#8221;
and an acquisition or assumption of an obligation to service a financial asset
that does not relate to financial assets of the servicer or its consolidated
affiliates. Additionally, SFAS No.&nbsp;156 requires all separately recognized
servicing assets and servicing liabilities to be initially measured at fair
value, permits an entity to choose either the use of an amortization or fair
value method for subsequent measurements, permits at initial adoption a one-time
reclassification of available-for-sale securities to trading securities by
entities with recognized servicing rights and requires separate presentation of
servicing assets and liabilities subsequently measured at fair value and
additional disclosures for all separately recognized servicing assets and
liabilities. SFAS No.&nbsp;156 is effective for transactions entered into after
the beginning of the first fiscal year that begins after September&nbsp;15,
2006. The Company is currently evaluating the effect the adoption of SFAS
No.&nbsp;156 will have on its financial position or results of operations.
</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>8</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>NOTES TO THE
FINANCIAL STATEMENTS (CONTINUED)</b><br><b>FOR THE ONE MONTH ENDED JANUARY 31,
2007</b><br><b>(WITH CUMULATIVE TOTALS SINCE
INCEPTION)</b><br><b>(UNAUDITED)</b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (CONTINUED)</u></b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Recent
Accounting Pronouncements (Continued)</u></b></p>
<p style="margin-left:80">In September 2006, the FASB issued
SFAS&nbsp;No.&nbsp;157 &#8220;Fair Value Measurements,&#8221; which provides a
definition of fair value, establishes a framework for measuring fair value and
requires expanded disclosures about fair value measurements.
SFAS&nbsp;No.&nbsp;157 is effective for financial statements issued for fiscal
years beginning after November&nbsp;15, 2007 and interim periods within those
fiscal years. The provisions of SFAS&nbsp;No.&nbsp;157 should be applied
prospectively. Management is assessing the potential impact on its financial
condition and results of operations. </p><p>
</p>
<p style="margin-left:80">In September 2006, the FASB issued
SFAS&nbsp;No.&nbsp;158 &#8220;Employers&#8217; Accounting for Defined Benefit
Pension and Other Postretirement Plans&#8221;, which amends
SFAS&nbsp;No.&nbsp;87 &#8220;Employers&#8217; Accounting for Pensions&#8221;
(SFAS&nbsp;No.&nbsp;87), SFAS&nbsp;No.&nbsp;88 &#8220;Employers&#8217;
Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and
for Termination Benefits&#8221; (SFAS&nbsp;No.&nbsp;88), SFAS&nbsp;No.&nbsp;106
&#8220;Employers&#8217; Accounting for Postretirement Benefits Other Than
Pensions&#8221; (SFAS&nbsp;No.&nbsp;106), and SFAS&nbsp;No.&nbsp;132R
&#8220;Employers&#8217; Disclosures about Pensions and Other Postretirement
Benefits (revised 2003)&#8221; (SFAS&nbsp;No.&nbsp;132R). This statement
requires companies to recognize an asset or liability for the overfunded or
underfunded status of their benefit plans in their financial statements.
SFAS&nbsp;No.&nbsp;158 also requires the measurement date for plan assets and
liabilities to coincide with the sponsor&#8217;s year-end. The standard provides
two transition alternatives related to the change in measurement date
provisions. The recognition of an asset and liability related to the funded
status provision is effective for fiscal year ending after December&nbsp;15,
2006 and the change in measurement date provisions is effective for fiscal years
ending after December&nbsp;15, 2008. This pronouncement has no effect on the
Company at this
time.<br><br><br><br></p><div align="center" color="#000080" style="position:relative; left: -5"><b>9</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p style="margin-left:80"></p><p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>NOTES TO THE
FINANCIAL STATEMENTS (CONTINUED)</b><br><b>FOR THE ONE MONTH ENDED JANUARY 31,
2007</b><br><b>(WITH CUMULATIVE TOTALS SINCE
INCEPTION)</b><br><b>(UNAUDITED)</b><p>
<b>NOTE 3-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>LIABILITY FOR STOCK TO BE
ISSUED</u></b></p>
<p style="margin-left:80">This account represents funds received by the Company
for stock to be issued. The stock was issued May 14, 2007.</p><p>
<p>
<b>NOTE 4-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCKHOLDERS&#8217;
EQUITY</u></b></p>
<p style="margin-left:80">On September 6, 2006 the Company was formed with one
class of common stock, par value $.01. The Company is authorized to issue
10,000,000 shares of common stock. There were no stock options or warrants
issued or outstanding.</p><p>
<p>
<b>NOTE 5-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>PROVISION FOR INCOME
TAXES</u></b></p>
<p style="margin-left:80">Deferred income taxes will be determined using the
liability method for the temporary differences between the financial reporting
basis and income tax basis of the Company&#8217;s assets and liabilities.
Deferred income taxes will be measured based on the tax rates expected to be in
effect when the temporary differences are included in the Company&#8217;s tax
return.  Deferred tax assets and liabilities are recognized based on anticipated
future tax consequences attributable to differences between financial statement
carrying amounts of assets and liabilities and their respective tax
bases.</p><p>
</p>
<p style="margin-left:80">At January 31, 2007, deferred tax assets consist of
the following:</p><p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
Net operating loss carryforwards</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
$</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
8,700&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
Less:  valuation allowance</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (8,700)      </font></p>
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
$</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-0-&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">At January 31, 2007, the Company had accumulated
deficits of $21,776 during the development stage to offset future taxable
income.  The Company will establish valuation allowances equal to the full
amount of the deferred tax assets due to the uncertainty of the utilization of
the operating losses in future periods.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>10</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>BIOMERK, INC.</b><br><b>(A DEVELOPMENT STAGE COMPANY)</b><br><b>NOTES TO THE
FINANCIAL  STATEMENTS (CONTINUED)</b><br><b>FOR THE ONE MONTH ENDED JANUARY 31,
2007</b><br><b>(WITH CUMLATIVE TOTALS SINCE
INCEPTION)</b><br><b>(UNAUDITED)</b><p>
<b>NOTE 6-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUBSEQUENT EVENT</u> </b></p>
<p style="margin-left:80">On May 18, 2007, the Company entered into an Agreement
and Plan of Merger with Champions Biotechnology, Inc. a publicly traded company.
Champions Biotechnology, Inc. intends to engage in the acquisition and early
stage development of a portfolio of new therapeutic drug candidates and also the
acquisition and development of novel technologies that it hopes will improve
methods of and approaches to disease treatment. Champions Biotechnology, Inc.
issued 4,000,000 shares of its common stock to acquire Biomerk, Inc.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>11</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>


</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>cbi8ka_ex99-3.htm
<DESCRIPTION>EXHIBIT 99.3 - UNAUDITED PRO FORMA CONDENSED CONSOLIDATED 01-31-07
<TEXT>
<html>
<head><meta content="text/html; charset=iso-8859-1">
<title>ARIEL WAY, INC</title>
</head>

<body >
<ul>
</ul>

<p align="right">
Exhibit 99.3<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC., AND SUBSIDIARIES</b><br><b>UNUADITED PRO FORMA
CONDENSED CONSOLIDATED</b><br><b>FINANCIAL STATEMENTS</b><br><b>JANUARY 31,
2007</b><p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC., AND SUBSIDIARIES</b><p align="center">
<b>INDEX TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED</b><br><b>FINANCIAL
STATEMENTS</b></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b><u>PAGE(S)</u></b></p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
Introduction to Unaudited Pro Forma Condensed Consolidated </p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="401.333233" colspan="1" rowspan="1" >
<p>
Financial Statements</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p>
1</p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="419.999895" colspan="2" rowspan="1" >
<p>
Balance Sheet - January 31, 2007 (Unaudited)</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p>
2</p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="3" rowspan="1" >
<p>
Statement of Operations for the nine months ended </p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="401.333233" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
January 31, 2007 (Unaudited)</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
3</p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
Statement of Operations for the three months ended</p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="401.333233" colspan="1" rowspan="1" >
<p>
January 31, 2007 (Unaudited)</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p>
4</p>
</td>
</tr>
<tr valign="top">
<td width="491.999877" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="419.999895" colspan="2" rowspan="1" >
<p>
Notes to Financial Statements</p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p>
5</p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b></b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b><br><b>INTRODUCTION TO
UNAUDITIED PRO FORMA CONDENSED</b><br><b>CONSOLIDATED FINANCIAL
STATEMENTS</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 18, 2007, Champions
Biotechnology, Inc. and Subsidiaries (&#8220;The Company&#8221;) entered into an
Agreement and Plan of Merger under which Biomerk, Inc. was acquired by Champions
Biotechnology, Inc. The Company issued 4,000,000 shares of its common stock to
acquire all the assets, liabilities and 100% of the stock of Biomerk, Inc.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The acquisition of Biomerk, Inc. by
the Company will be accounted for under the purchase method of accounting.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The accompanying unaudited pro forma
condensed consolidated balance sheet as of January 31, 2007 has been presented
with consolidated subsidiaries at January 31, 2007. The unaudited pro forma
condensed consolidated statement of operations for the nine months ended January
31, 2007 and the condensed consolidated statement of income for the three months
ended January 31, 2007 have been presented as if the acquisition had occurred
September 6, 2006, the date of inception of Biomerk, Inc.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The unaudited pro forma condensed
consolidated statements do not necessarily represent the actual results that
would have been achieved had the companies been combined at the beginning of the
periods, nor may they be indicative of future operations. These unaudited pro
forma condensed financial statements should be read in conjunction with the
companies&#8217; respective historical financial statements and notes included
thereto.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>1</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED BALANCE SHEET</b></font><br><font size="2"><b>JANUARY 31,
2007</b></font></p align="center">
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="393.333235" colspan="5" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>ASSETS</b></font></p align="center">
</td>
<td width="242.666606" colspan="4" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="173.333290" colspan="4" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>(1)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Champions</b></font></p align="center">
</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Pro</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Biotechnology, Inc</b>.</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Biomerk, Inc.</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Note </b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Adjustments</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Forma</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>Current Assets</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Cash and cash equivalents</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right">
<font size="2">20,779&nbsp;</font></p align="right">
</td>
<td width="22.666661" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right">
<font size="2">399,650&nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">$</font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">420,429&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Interest Receivable</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4,529&nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4,529&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Prepaid expenses</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">25,202&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">25,202&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="198.666617" colspan="2" rowspan="1" >
<p>
<font size="2"><b>Total current assets</b></font></p>
</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right">
<font size="2">20,779&nbsp;</font></p align="right">
</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right">
<font size="2">429,381&nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">450,160&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Goodwill</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="center">
<font size="2">a</font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">731,776&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">731,776&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" >
<p>
<font size="2"><b>TOTAL ASSETS</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">20,779&nbsp;</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">429,381&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">731,776&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">   1,181,936&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="393.333235" colspan="5" rowspan="1" >
<p align="center">
<font size="2"><b>LIABILITIES AND STOCKHOLDERS&#8217; EQUITY
(DEFICIT)</b></font></p align="center">
</td>
<td width="129.333301" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="111.999972" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="173.333290" colspan="4" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" >
<p>
<font size="2"><b>Current Liabilites</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Accounts payable</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">21,662&nbsp;</font></p align="right">
</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">$</font></p>
</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,157&nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">22,819&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Other accrued expenses</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right">
<font size="2">311,563&nbsp;</font></p align="right">
</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">311,563&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Officer loans payable</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">43,693&nbsp;</font></p align="right">
</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">43,693&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="213.333280" colspan="3" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Liability for stock to be issued</font></p>
</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="center">
<font size="2"> b </font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="198.666617" colspan="2" rowspan="1" >
<p>
<font size="2"><b>Total current liabilities</b></font></p>
</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">376,918&nbsp;</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,157&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">378,075&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" >
<p>
<font size="2"><b>TOTAL LIABILITIES</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">376,918&nbsp;</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,157&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">378,075&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="381.333238" colspan="4" rowspan="1" >
<p>
<font size="2"><b>STOCKHOLDERS&#8217; EQUITY (DEFICIT)</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="499.999875" colspan="6" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Common stock, $.001 par value; 50,000,000 shares
authorized;</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="47.999988" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="137.333299" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;27,324,658 issued and
outstanding</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right">
<font size="2">27,325&nbsp;</font></p align="right">
</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right">
<font size="2">100&nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="center">
<font size="2">a &amp; b </font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,900&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">31,325&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Additional paid-in capital</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right">
<font size="2">6,668,993&nbsp;</font></p align="right">
</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right">
<font size="2">449,900&nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="center">
<font size="2">a &amp; b </font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">706,100&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7,824,993&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;Accumulated deficit</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (7,008,273)</font></p align="right">
</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (21,776)</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="center">
<font size="2"> a </font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">21,776&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7,008,273)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="189.333286" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;Less:  prepaid consulting</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (44,184)</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(44,184)</font></p>
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="366.666575" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Total stockholders&#8217; equity (deficit)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (356,139)</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">428,224&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">731,776&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;803,861&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" >
<p>
<font size="2"> </font></p>
</td>
<td width="174.666623" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="381.333238" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>TOTAL LIABILITIES AND STOCKHOLDERS&#8217; EQUITY
(DEFICIT)</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">20,779&nbsp;</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">429,381&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">731,776&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">1,181,936&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="13.333330" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="174.666623" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="22.666661" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="99.999975" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="522.666536" colspan="7" rowspan="1" >
<p>
<font size="2">(1)&nbsp;&nbsp;Represents acquisition agreement of Biomerk, Inc.
on May 18, 2007.</font></p>
</td>
<td width="99.999975" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="137.333299" colspan="3" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p align="center">
See accompanying notes to unaudited pro forma condensed consolidated financial
statements.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>2</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS</b></font><br><font size="2"><b>FOR THE
NINE MONTHS ENDED JANUARY 31, 2007</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="205.333282" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>(1)</b></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="205.333282" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Champions</b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Pro</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="205.333282" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Biotechnology, Inc.</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Biomerk, Inc.</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Note</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Adjustments</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Forma</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="205.333282" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="226.666610" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>REVENUES</b></font></p>
</td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="205.333282" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="290.666594" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>OPERATING EXPENSES</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="287.999928" colspan="3" rowspan="1" >
<p>
<font size="2">General and adminstrative expenses</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">74,086&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">28,048&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">102,134&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="205.333282" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="290.666594" colspan="3" rowspan="1" >
<p>
<font size="2"><b>LOSS BEFORE OTHER INCOME</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (74,086)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (28,048)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (102,134)</font></p>
</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="205.333282" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="226.666610" colspan="2" rowspan="1" >
<p>
<font size="2"><b>OTHER INCOME</b></font></p>
</td>
<td width="63.999984" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="269.333266" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Interest income</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">6,272&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">6,272&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="269.333266" colspan="2" rowspan="1" >
<p>
<font size="2"><b>Total other income</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">6,272&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">6,272&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="205.333282" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="327.999918" colspan="5" rowspan="1" >
<p>
<font size="2"><b>LOSS BEFORE PROVISION FOR INCOME TAXES</b></font></p>
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (74,086)</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (21,776)</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (95,862)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="269.333266" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>Provision for income taxes</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="205.333282" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="307.999923" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>NET LOSS APPLICABLE TO COMMON SHARES</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2"> (74,086)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2"> (21,776)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">    (95,862)</font></p>
</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="205.333282" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="307.999923" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>BASIC AND DILUTED INCOME LOSS PER SHARE</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2"> (0.00)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2"> (2.18)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="205.333282" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="290.666594" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>WEIGHTED AVERAGE NUMBER </b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="226.666610" colspan="2" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;OF COMMON SHARES </b></font></p>
</td>
<td width="63.999984" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">20,489,493&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">10,000&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="center">
<font size="2"> b </font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="205.333282" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="63.999984" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="435.999891" colspan="6" rowspan="1" >
<p>
<font size="2">(1)&nbsp;&nbsp;represents the activity from inception (September
6, 2006) to January 31, 2007</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p align="center">
See accompanying notes to unaudited pro forma condensed consolidated financial
statements.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>3</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS</b></font><br><font size="2"><b>FOR THE
THREE MONTHS ENDED JANUARY 31, 2007</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="238.666607" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Champions</b></font></p align="center">
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Pro</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="238.666607" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Biotechnology, Inc.</b></font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Biomerk, Inc.</b></font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Note</b></font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Adjustments</b></font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Forma</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="238.666607" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="255.999936" colspan="2" rowspan="1" >
<p>
<font size="2"><b>REVENUES</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="238.666607" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="329.333251" colspan="3" rowspan="1" >
<p>
<font size="2"><b>OPERATING EXPENSES</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="329.333251" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">General and adminstrative expenses</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">37,198&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">20,405&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">57,603&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="238.666607" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="329.333251" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>LOSS BEFORE OTHER INCOME</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (37,198)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (20,405)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (57,603)</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="238.666607" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="255.999936" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>OTHER INCOME</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="311.999922" colspan="2" rowspan="1" >
<p>
<font size="2">Interest income</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">5,765&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">5,765&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="311.999922" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>Total other income </b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">5,765&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">5,765&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="238.666607" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="371.999907" colspan="5" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>LOSS BEFORE PROVISION FOR INCOME TAXES</b></font></p>
</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (37,198)</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (14,640)</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (51,838)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="311.999922" colspan="2" rowspan="1" >
<p>
<font size="2"><b>Provision for income taxes</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="238.666607" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="347.999913" colspan="1" rowspan="1" >
<p>
<font size="2"><b>NET LOSS APPLICABLE TO COMMON SHARES</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (37,198)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (14,640)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="98.666642" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (51,838)</font></p>
</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="238.666607" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="347.999913" colspan="4" rowspan="1" >
<p>
<font size="2"><b>BASIC AND DILUTED LOSS PER SHARE</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (0.00)</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (1.46)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="238.666607" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="329.333251" colspan="3" rowspan="1" >
<p>
<font size="2"><b>WEIGHTED AVERAGE NUMBER </b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="255.999936" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;OF COMMON SHARES </b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="107.999973" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">18,091,931&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">10,000&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="38.666657" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"> b </font></p align="center">
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
</table></div>
&nbsp;	<p>
<p align="center">
See accompanying notes to unaudited pro forma condensed consolidated financial
statements.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>4</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC., AND SUBSIDIARIES</b><br><b>NOTES TO THE
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED</b><br><b>FINANCIAL
STATEMENTS</b></p>
&nbsp;	<p>
The following unaudited pro forma adjustments are included in the accompanying
unaudited pro forma condensed consolidated balance sheet as of January 31, 2007
and the unaudited pro forma condensed consolidated statement of operations for
the nine months ended January 31, 2007 and the condensed consolidated statement
of income for the three months ended January 31, 2007, to reflect the proposed
combination of Champions Biotechnology, Inc., and Biomerk, Inc.</p>
<table><tr valign="top"><td>a.</td><td>To record the issuance of the 4,000,000
shares of Champions Biotechnology, Inc. common stock on May 18, 2007 in
consideration for all the assets, liabilities and 100% of the shares of Biomerk,
Inc. </tr></table><p>
</p>
<table><tr valign="top"><td>b.</td><td>To reflect shares issued on September 6,
2006 (date of inception) for Biomerk, Inc. instead of the actual date of
issuance of May 14, 2007.  The shares were issued on May 14, 2007 which
represented a timing difference between when the cash was received and the date
the Company had authorized them to be released for the cash.
</tr></table>&nbsp;	<div align="center" color="#000080" style="position:relative; left: -5"><b>5</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>


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