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<SEC-DOCUMENT>0001297077-07-000030.txt : 20070814
<SEC-HEADER>0001297077-07-000030.hdr.sgml : 20070814
<ACCEPTANCE-DATETIME>20070814155643
ACCESSION NUMBER:		0001297077-07-000030
CONFORMED SUBMISSION TYPE:	10KSB
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070430
FILED AS OF DATE:		20070814
DATE AS OF CHANGE:		20070814

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:		10KSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17263
		FILM NUMBER:		071055000

	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>10KSB
<SEQUENCE>1
<FILENAME>cbi10ksb2007-081207.htm
<DESCRIPTION>10KSB 04302007
<TEXT>
<html>
<head><meta content="text/html; charset=iso-8859-1">
<title>SECURITIES AND EXCHANGE COMMISSION</title>
</head>

<body >
<ul>
</ul>

<p align="center">
<font size="2"><b>SECURITIES AND EXCHANGE
COMMISSION</b></font><br><font size="2"><b>Washington, D.C.
20549</b></font><p align="center">
<font size="2"><b>FORM 10-KSB</b></font></p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Mark One</font></p align="center">
</td>
<td width="377.333239" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="377.333239" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<font size="2">[X]</font></p align="center">
</td>
<td width="377.333239" colspan="1" rowspan="1" >
<p>
<font size="2">ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF</font></p>
</td>
</tr>
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="377.333239" colspan="1" rowspan="1" >
<p>
<font size="2">THE SECURITIES EXCHANGE ACT OF 1934</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">For the fiscal year ended April 30, 2007</font><p align="center">
<font size="2">OR</font></p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center">
<font size="2">[&nbsp;&nbsp;&nbsp;]&nbsp;&nbsp;</font></p align="center">
</td>
<td width="377.333239" colspan="1" rowspan="1" >
<p>
<font size="2">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF</font></p>
</td>
</tr>
<tr valign="top">
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="377.333239" colspan="1" rowspan="1" >
<p>
<font size="2">THE SECURITIES EXCHANGE ACT OF 1934</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">For the transition period from ______ to
________</font><p align="center">
<font size="2">Commission file number
<u>&nbsp;0-17263&nbsp;&nbsp;</u></font><p align="center">
<font size="2"><b><u>CHAMPIONS BIOTECHNOLOGY,
INC.</u></b></font><br><font size="2">(Exact name of registrant as specified in
its charter)</font></p align="center">
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="235.999941" colspan="1" rowspan="1" >
<p align="center">
<u>Delaware</u></p align="center">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="209.333281" colspan="1" rowspan="1" >
<p align="center">
<u>52-1401755</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="235.999941" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(State or other jurisdiction of</font></p align="center">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="209.333281" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(I.R.S. Employer</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="235.999941" colspan="1" rowspan="1" >
<p align="center">
<font size="2">organization)</font></p align="center">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="209.333281" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Identification No.)</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2"><u>2200 Wilson Blvd., Suite 102-316, Arlington, VA
22201</u></font><br><font size="2">(Address of principal executive
offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Zip code)</font><p align="center">
<font size="2"><u>(703)
526-0400</u></font><br><font size="2">(Registrant&#8217;s telephone number,
including area code)</font><p align="center">
<font size="2">Securities registered under Section 12(g) of the Exchange
Act:</font><p align="center">
<font size="2"><u>Common Stock, par value $.001 per
share</u></font><br><font size="2">(Title of Class)</font><p>
<font size="2">Check whether the issuer is not required to file reports pursuant
to Section 13 or 15(d) of the Exchange Act </font>&#9633;<p>
<font size="2">Check whether the issuer (1) filed all reports required  to be
filed by Section 13 or 15(d) of the Securities Exchange Act during the past 12
months (or for such shorter period that the Registrant was  required  to file
such  reports),  and (2) has been  subject to such filing requirements for the
past 90 days.&nbsp;&nbsp;&nbsp;Yes <u>&nbsp;X&nbsp;</u> No
<u>&nbsp;&nbsp;&nbsp;&nbsp;</u></font><p>
<font size="2">Check if there is no disclosure of delinquent filers in response
to Item 405 of Regulation S-B is not contained in this form, and no disclosure
will be contained, to the best of the registrant&#8217;s knowledge, in a
definitive proxy or information statements incorporated by reference in Part III
of this Form 10-KSB.&nbsp;&nbsp;&nbsp;[X]</font><p>
<font size="2">Indicate by check mark whether the registration is a shell
company (as defined in Rule 12b-2 of the Exchange Act). &nbsp;&nbsp;Yes
<u>&nbsp;&nbsp;&nbsp;&nbsp;</u> No  <u>X</u> </font><p>
<font size="2">For the year ended April 30, 2007, the revenues of the registrant
were $0.00.</font><p>
<font size="2">The Company&#8217;s common stock is listed on the
Over-The-Counter Bulletin Board under the stock ticker symbol "CSBR." The
aggregate market value of the Common Stock of the Registrant held by
non-affiliates of the Registrant based on the average bid and asked price on
August 10, 2007, was approximately $5,000,000.</font><p>
<font size="2">As of August 10, 2007, the Registrant had a total of 31,624,658
shares of common stock outstanding.</font><p align="center">
<font size="2">DOCUMENTS INCORPORATED BY REFERENCE</font><p align="center">
<font size="2">None</font><p>
<font size="2">Transitional Small Business Disclosure Format (check one):
&nbsp;&nbsp;Yes <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
No&nbsp;&nbsp;<u>&nbsp;&nbsp;X&nbsp;&nbsp;</u></font></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">
<font size="2">TABLE OF CONTENTS</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="718.666487" colspan="2" rowspan="1" >
<p>
<font size="2">PART I</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Special Note Regarding Forward-Looking Statements</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">3</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 1.&nbsp;&nbsp;Description of Business and Risk
Factors</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">3</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 2.&nbsp;&nbsp;Description of Property</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">8</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 3.&nbsp;&nbsp;Legal Proceedings</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">8</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 4.&nbsp;&nbsp;Submission of Matters to a Vote of Security
Holders</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">8</font></p>
</td>
</tr>
<tr valign="top">
<td width="718.666487" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="718.666487" colspan="2" rowspan="1" >
<p>
<font size="2">PART II</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 5.&nbsp;&nbsp;Market for Common Equity, Related Stockholder
Matters and Small Business Issuer Purchases of Equity Securities</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">9</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 6.&nbsp;&nbsp;Management&#8217;s Discussion and Analysis or
Plan of Operation</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">9</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 7.&nbsp;&nbsp;Financial Statements</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">11</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 8.&nbsp;&nbsp;Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">11</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 8A.&nbsp;&nbsp;Controls and Procedures</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">11</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 8B.  Other Information</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="46.666655" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="718.666487" colspan="2" rowspan="1" >
<p>
<font size="2">PART III</font></p>
</td>
</tr>
<tr valign="top">
<td width="718.666487" colspan="2" rowspan="1" >
<p>
<font size="2">Item 9.&nbsp;&nbsp;Directors, Executive Officers, Promoters and
Control </font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Persons;
Compliance with Section 16(a) of the Exchange Act</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">12</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 10.&nbsp;&nbsp;Executive Compensation</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">13</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 11.&nbsp;&nbsp;Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder Matters</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">14</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 12.&nbsp;&nbsp;Certain Relationships and Related
Transactions, and Director Independence</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">15</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 13.&nbsp;&nbsp;Exhibits</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">15</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Item 14.&nbsp;&nbsp;Principal Accountant Fees and
Services</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">15</font></p>
</td>
</tr>
<tr valign="top">
<td width="718.666487" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Report of Independent Accountants and Financial
Statements</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">F1-F19</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Signatures</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">38</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">39</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">40</font></p>
</td>
</tr>
<tr valign="top">
<td width="670.666499" colspan="1" rowspan="1" >
<p>
<font size="2">Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002</font></p>
</td>
<td width="46.666655" colspan="1" rowspan="1" >
<p>
<font size="2">41</font></p>
</td>
</tr>
</table></div>
<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">
<font size="2">PART I</font><p align="center">
<font size="2">SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This document contains
"forward-looking statements" within the meaning of Section 27A of the Securities
Act and Section 21E of the Securities Exchange Act that inherently involve risk
and uncertainties.  The Company generally uses words such as "believe," "may,"
"could," "will," "intend," "estimate," "expect," "anticipate," "plan," "likely,"
"promise" and similar expressions to identify forward-looking statements.  One
should not place undue reliance on these forward-looking statements.  The
Company&#8217;s actual results could differ materially from those anticipated in
the forward-looking statements for many unforeseen factors, which may include,
but are not limited to, changes in general economic conditions, the ongoing
threat of terrorism, ability to have access to financing sources on reasonable
terms and other risks that are described in this document. Although the Company
believes the expectations reflected in the forward-looking statements are
reasonable, they relate only to events as of the date on which the statements
are made, and the Company&#8217;s future results, levels of activity,
performance or achievements may not meet these expectations.  The Company does
not intend to update any of the forward-looking statements after the date of
this document to conform these statements to actual results or to changes in the
Company&#8217;s expectations, except as required by law.</font><p>
<font size="2"><b>Item 1.&nbsp;&nbsp; Description of Business and Risk
Factors.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development
of Business</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Champions
Biotechnology, Inc. (referred in this 10-KSB by terms "Company", "we" or "our")
was incorporated as a merger and acquisition company under the laws of the State
of Delaware on June 4, 1985 under the name "International Group, Inc." In
September 1985 the Company completed a $400,000 public offering and in January
1986 acquired the world-wide rights to the Champions sports theme restaurant
concept and subsequently changed its name to "Champions Sports, Inc." Between
1987 and 1988, warrants issued in the public offering in September 1985 were
exercised by stockholders and consequently the Company received additional
capital of about $2,400,000.  In November 1991, the Company effected a reverse
split of its outstanding shares on a 1 for 100 basis.  In November 1992, the
Company completed a $3,500,000 preferred stock public offering. Subsequently,
all preferred shares were converted to common stock.  In 1997, the Company sold
its Champions service mark and concept for sports themed restaurants to Marriott
International, Inc. and until 2005, the Company was a consultant and exclusive
supplier of sports memorabilia to Marriott International, Inc. and a licensee
(royalty free) of one Champions Sports Bar Restaurant, which ceased operations
when its sixteen year lease ended. Until January 2007, the Company was
continually seeking a new business direction as a vehicle to effect a business
combination with a private company that desired to be public.  In January 2007,
the Company changed its business direction to focus on biotechnology and
subsequently changed its name to Champions Biotechnology, Inc. Since then the
Company commenced the process of building a biotechnology company. </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current
Business Plan</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are presently
engaged in the evaluation, acquisition and early stage development of a
portfolio of new therapeutic drug candidates, in the acquisition and development
of novel technologies and in providing administrative services in the field of
oncology that the Company hopes will improve methods and approaches to disease
treatment. Our current plan calls for the development of a management team,
selection and appointment of new members to our Board of Directors, formation of
a Scientific Advisory Board and securing additional longer term funding to
continue the development and acquisition of our drug portfolio and other novel
technologies. This is being accomplished by drawing upon the established
expertise, knowledge and insight of experts, including two of the
Company&#8217;s shareholders and directors, Drs. David Sidransky and Manuel
Hidalgo, who have wide-ranging contacts in the pharmaceutical and biotechnology
industry, academia and government. Subsequent to April 30, 2007, Dr. David
Sidransky was appointed to the Company&#8217;s Board of Directors and Dr. Manuel
Hidalgo was appointed to the Company&#8217;s Board of Directors and as its
Scientific Advisor.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We plan to evaluate new
drug candidates and develop a portfolio of new therapeutic drug candidates
through pre-clinical trials and possibly early phase ("first in man") clinical
trials.  If therapeutic drug candidates reach this early stage of development,
the Company intends to partner with, sell or license them to pharmaceutical
and/or biotechnology companies, as appropriate. Management believes this
strategy will enable the Company to leverage the competencies of these partners
or licensees to maximize the Company&#8217;s return on investment in a
relatively short time frame. The Company believes that this model is unlike that
of many new biotechnology companies that look to bring the process of drug
development through all phases of discovery, development, regulatory approvals,
and marketing, which requires a very large financial commitment and a long time,
typically more than a decade, to realize.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February 2007, we
acquired the patent rights to two Benzoylphenylurea (BPU) sulfur analog
compounds that have shown promising potent activity against in vitro and in vivo
models of prostate and pancreatic cancer (<i>Journal of Medicinal Chemistry,
2006, Vol. 49, No.7, 2357-2360</i> and</font><i> </i><font size="2"><i>American
Association for Cancer Research Journal of Molecular Cancer Therapeutics, Vol.
6, Issue 5, May 2007, 1509-16.</i>).  The acquired rights include pending U.S.
Patent Application and the corresponding international patent application filed
under the Patent Cooperation Treaty (PCT), both entitled Design and Synthesis of
Novel Tubulin Polymerization Inhibitors:  Benzoylphenylurea (BPU) Sulfur
Analogs.  </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>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to April 30,
2007, in May 2007, we acquired Biomerk, Inc., a company focused on generating a
novel preclinical platform of human cancer tumor immune-deficient mice
xenografts (Biomerk Tumorgrafts&#8482;).  Biomerk Tumorgrafts&#8482;, unlike
standard cell line derived xenografts, are implanted directly from primary human
cancer tumors and never passaged in cell tissue culture. The Company believes
that these xenografts more closely reflect human cancer biology and are more
predictive of clinical outcome. The Company has several patent applications
relating to xenograft models used for identifying potentially active
chemotherapeutic agents. The Company believes that it as well as biotechnology
and  pharmaceutical companies, as part of their drug discovery and post
marketing efforts, may benefit from utilizing services that are more predictive
and that might provide for a faster and less expensive path for drug approval.
These services will utilize Biomerk Tumorgrafts&#8482; to evaluate tumor
sensitivity/resistance to various single and combination standard and novel
chemotherapy agents. </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, we plan
to provide administrative services in the field of oncology by establishing and
administering expert medical information panels for individuals to analyze
medical records and test results, to assist in understanding conventional and
research options and to identify and arrange third parties for testing, analysis
and study of cancer tissues, as appropriate.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operations</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of April 30, 2007,
the Company did not generate revenues from its operations. </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company will
encounter significant competition from firms currently engaged in the
biotechnology industries. The majority of these companies are and will be will
be substantially larger than the Company, and have substantially greater
resources and operating histories. There can be no assurance that developments
by other companies will not render our products or technologies obsolete or
noncompetitive or that we will be able to keep pace with the technological or
product developments of our competitors.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Patent
Applications</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is the
Company&#8217;s intention to protect its proprietary property through the filing
of U.S. and international patent applications, both broad and specific, where
necessary and reasonable. In February 2007, the Company acquired the patent
rights to two Benzoylphenylurea (BPU) sulfur analog compounds that have shown
promising potent activity against in vitro and in vivo models of prostate and
pancreatic cancer.  The acquired rights include pending U.S. Patent Application
no. 11/673,519 and corresponding international patent application
(PCT/US2006/014449) filed under the Patent Cooperation Treaty (PCT), both
entitled Design and Synthesis of Novel Tubulin Polymerization Inhibitors:
Benzoylphenylurea (BPU) Sulfur Analogs. </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government
Regulation</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The research,
development, manufacture, and marketing of the Company&#8217;s potential
products are subject to federal, state, local, or foreign legislation or
regulation, including the interpretation of and compliance with existing,
proposed, and future regulatory requirements imposed by the U.S. Food and Drug
Administration ("FDA") in the United States and by comparable authorities in
other countries. The Company does not plan to unilaterally pursue the FDA
approval necessary to commercially market its products.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of April 30, 2007,
the Company had one employee. </font><p align="center">
<font size="2"><b>RISK FACTORS</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You should carefully
consider the risks described below together with all of the other information
included in this report. The risks and uncertainties described below are not the
only ones we face.  Additional risks not presently known or that we currently
consider insignificant may also impair our business operations in the future. An
investment in our common stock is very risky. If any of the following risks
materialize, our business, financial condition or results of operations could be
adversely affected. In such an event, the trading price of our common stock
could decline, and you may lose part or all of your investment. </font><p>
<font size="2"><b>We historically have lost money, expect losses to continue for
the foreseeable future and may never achieve profitability.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We historically have
lost money. In the year ended April 30, 2007, we sustained net losses of
$170,058 and in the year ended April 30, 2006, we sustained a net loss of
$303,718. At April 30, 2007, we had an accumulated deficit of
$7,104,245.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount of these
losses may vary significantly from year-to-year and quarter-to-quarter and will
depend on, among other factors:</font><p>
<font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the timing and cost of
product and technology
development;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
progress and cost of preclinical and possibly early phase clinical development
programs;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the cost
of securing and defending intellectual
property;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
timing and cost of obtaining necessary regulatory approvals;
and</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the costs of
pending and any future litigation of which we may be
subject.</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>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Through April 30, 2007
we had limited operations and do not have any commercially marketable products
or technologies. We intend to engage in product research and development, a
process that requires significant capital expenditures, and we do not have any
other sources of revenue to off-set such expenditures. Accordingly, we expect to
generate additional operating losses at least until such time as we are able to
generate significant revenues.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To become profitable,
we will need to generate revenues to off-set our operating costs, including our
general and administrative expenses. We may not achieve or, if achieved, sustain
our revenue or profit objectives, and our losses may increase in the future,
and, ultimately, we may have to cease operations.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In order to generate
new and significant revenues, we must raise capital to successfully develop our
products and then partner with, sell or license to pharmaceutical and/or
biotechnology companies, as appropriate, who can successfully commercialize
them. Even if our proposed products are commercially introduced, they may never
achieve market acceptance and we may never generate significant revenues or
achieve profitability. If we must devote a substantial amount of time to raising
capital, it will delay our ability to achieve our business goals within the time
frames that we now expect, which could increase the amount of capital we need.
In addition, the amount of time expended by our management on fund raising
distracts them from concentrating on our business affairs.</font><p>
<font size="2"><b>Our lack of operating history in the biotechnology industry
makes it difficult to evaluate or predict our future business
prospects.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have no operating
history in the biotechnology industry, and our operating results are not
possible to predict at this time. We are in the development stage, and our
proposed operations are subject to all of the risks inherent in establishing a
new business enterprise, including:</font><p>
<font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the absence of an operating
history;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the lack
of commercialized
products;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;insufficient
capital;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;expected
substantial and continual losses for the foreseeable
future;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;limited
experience in dealing with regulatory
issues;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;limited
marketing
experience;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an
expected reliance on third parties for the commercialization of our proposed
products;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
competitive environment characterized by numerous, well-established and
well-capitalized
competitors;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;uncertain
market acceptance of our proposed products;
and</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reliance on
key personnel.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The likelihood of our
success must be considered in light of the problems, expenses, difficulties,
complications, and delays frequently encountered in connection with the
formation of a new business, the development of new technology, and the
competitive and regulatory environment in which we will operate. </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Because we are subject
to these risks, you may have a difficult time evaluating our business and your
investment in our company.</font><p>
<font size="2"><b>Our initial proposed products are in the early development
stages and will likely not be commercially introduced for many years, if at
all.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our proposed initial
products still are in the early development stage and will require further
development, preclinical and early phase clinical testing and investment prior
to our effort to partner with, sell or license them to pharmaceutical and/or
biotechnology companies, as appropriate.  Such partnership, divestiture or
license agreement may have contingencies for their possible commercialization in
the United States and abroad. We cannot be sure that these products in
development will:</font><p>
<font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;be successfully
developed;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;prove
to be safe and efficacious in clinical
trials;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;meet
applicable regulatory standards or obtain required regulatory
approvals;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;demonstrate
substantial protective or therapeutic benefits in the prevention or treatment of
any disease;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;be
capable of being produced in commercial quantities at reasonable
costs;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;obtain
coverage and favorable reimbursement rates from insurers and other third-party
payors; or</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;be
successfully marketed or achieve market acceptance by physicians and
patients.</font><p>
<font size="2"><b>We have very limited staffing and will continue to be
dependent upon key employees.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our success, currently,
is dependent upon the efforts of our only employee, James Martell, our Chairman,
President and CEO.  The loss of Mr. Martell&#8217;s services would have a
material adverse affect on our business and financial condition. We will need to
develop a management team and attract and retain qualified personnel in all
functional areas to expand and grow our business. This will be difficult in the
biotechnology industry, where competition for skilled personnel is intense.
</font><p>
<font size="2"><b>Because our industry is very competitive and many of our
competitors have substantially greater capital resources and more experience in
research and development than us, we may not succeed in developing our proposed
products and technologies and having them brought to
market.</b></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>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition in the
pharmaceutical industry is intense. Potential competitors in the United States
and abroad are numerous and include pharmaceutical and biotechnology companies,
most of which have substantially greater capital resources and more experience
in research and development than us. Academic institutions, hospitals,
governmental agencies and other public and private research organizations are
also conducting research and seeking patent protection and may develop and
commercially introduce competing products or technologies on their own or
through joint ventures. We cannot assure you that our competitors will not
succeed in developing similar technologies and products more rapidly than we do,
commercially introducing such technologies and products to the marketplace prior
to introduction of our products, or that these competing technologies and
products will not be more effective or successful than any of those that we
currently are developing or will develop.</font><p>
<font size="2"><b>If we are unable to protect our intellectual property, we may
not be able to compete as effectively.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The biotechnology
industry places considerable importance on obtaining patent and trade secret
protection for new technologies, products and processes. Our success will
depend, in part, upon our ability to obtain, enjoy and enforce protection for
any products we develop or acquire under United States and foreign patent laws
and other intellectual property laws, preserve the confidentiality of our trade
secrets and operate without infringing the proprietary rights of third
parties.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where appropriate, we
will seek patent protection for certain aspects of our technology. However, our
owned and licensed patents and patent applications may not ensure the protection
of our intellectual property for a number of other reasons:</font><p>
<font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competitors may interfere
with our patents and patent process in a variety of ways. Competitors may claim
that they invented the claimed invention before us or may claim that we are
infringing on their patents and therefore we cannot use our technology as
claimed under our patent. Competitors may also have our patents reexamined by
showing the patent examiner that the invention was not original or novel or was
obvious.</font><p>
<font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are in the development
stage and will be in the process of developing proposed products and
technologies. The mere receipt of a patent does not necessarily provide much
practical protection. If we receive a patent with a narrow scope, then it will
be easier for competitors to design products that do not infringe on our patent.
Even if the development of our proposed products is successful and approval for
sale is obtained, there can be no assurance that applicable patent coverage, if
any, will not have expired or will not expire shortly after this approval.  Any
expiration of the applicable patent could have a material adverse effect on the
sales and profitability of our proposed product.</font><p>
<font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enforcing patents is
expensive and may require significant time by our management. In litigation, a
competitor could claim that our issued patents are not valid for a number of
reasons. If the court agrees, we would lose protection on products covered by
those patents.</font><p>
<font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We also may support and
collaborate in research conducted by government organizations or universities.
We cannot guarantee that we will be able to acquire any exclusive rights to
technology or products derived from these collaborations. If we do not obtain
required licenses or rights, we could encounter delays in product development
while we attempt to design around other patents or we may be prohibited from
developing, manufacturing or selling products requiring these licenses. There is
also a risk that disputes may arise as to the rights to technology or products
developed in collaboration with other parties.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It also is unclear
whether efforts to secure our trade secrets will provide useful protection.
While we will use reasonable efforts to protect our trade secrets, our employees
or consultants may unintentionally or willfully disclose our proprietary
information to competitors resulting in a loss of protection. Enforcing a claim
that someone else illegally obtained and is using our trade secrets, like patent
litigation, is expensive and time consuming, and the outcome is unpredictable.
In addition, courts outside the United States are sometimes less willing to
protect trade secrets.  Finally, our competitors may independently develop
equivalent knowledge, methods and know-how.</font><p>
<font size="2"><b>Claims by others that our products infringe their patents or
other intellectual property rights could adversely affect our financial
condition.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The biotechnology
industry has been characterized by frequent litigation regarding patent and
other intellectual property rights. Patent applications are maintained in
secrecy in the United States and also are maintained in secrecy outside the
United States until the application is published. Accordingly, we can conduct
only limited searches to determine whether our technology infringes the patents
or patent applications of others. Any claims of patent infringement asserted by
third parties would be time-consuming and could likely:</font><p>
<font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;result in costly
litigation;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;divert
the time and attention of our technical personnel and
management;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cause
product development
delays;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;require us
to develop non-infringing technology;
or</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;require us to
enter into royalty or licensing agreements.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although patent and
intellectual property disputes in the biotechnology industry have often been
settled through licensing or similar arrangements, costs associated with these
arrangements may be substantial and often require the payment of ongoing
royalties, which could hurt our gross margins. In addition, we cannot be sure
that the necessary licenses would be available to us on satisfactory terms, or
that we could redesign our products or processes to avoid infringement, if
necessary. Accordingly, an adverse determination in a judicial or administrative
proceeding, or the failure to obtain necessary licenses, could prevent us from
developing, manufacturing and selling some of our products, which could harm our
business, financial condition and operating results.</font></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>
<font size="2"><b>If any of our products that we license or partner with
pharmaceutical and/or biotechnology companies  fail to obtain regulatory
approval or if approval is delayed or withdrawn, we may be unable to generate
revenue from the sale or license of our products.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our products are
subject to federal, state, local, or foreign legislation or regulation,
including the interpretation of and compliance with existing, proposed, and
future regulatory requirements imposed by the FDA in the United States and by
comparable authorities in other countries. In the United States, approval of the
FDA has to be obtained for each product or drug to be commercialized. The FDA
approval process is typically lengthy and expensive, and approval is never
certain. Products to be commercialized abroad are subject to similar foreign
government regulation.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Generally, only a very
small percentage of newly discovered pharmaceutical products that enter
preclinical development are approved for sale. Because of the risks and
uncertainties in biopharmaceutical development, our proposed products could take
a significantly longer time to gain regulatory approval than we expect or may
never gain approval. If regulatory approval is delayed or never obtained, our
management&#8217;s credibility, the value of our company and our operating
results and liquidity might be adversely affected. Furthermore, even if a
product gains regulatory approval, the product and the manufacturer of the
product may be subject to continuing regulatory review. Even after obtaining
regulatory approval, such approval may entail limitations on the indicated uses
for which the product may be marketed. Moreover, a marketed product, its
manufacturer, its manufacturing facilities, and its suppliers are subject to
continual review and periodic inspections. Discovery of previously unknown
problems, or the exacerbation of problems previously deemed acceptable, with the
product, manufacturer, or facility may result in restrictions on such product or
manufacturer, potentially including withdrawal of the product from the
market.</font><p>
<font size="2"><b>Even if our proposed products receive FDA approval, they may
not achieve expected levels of market acceptance, which could have a material
adverse effect on our business, financial position and operating results and
could cause the market value of our common stock to decline.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Even if our proposed
products obtain required regulatory approvals, the success of those products is
dependent upon market acceptance by physicians and patients. Levels of market
acceptance for our new products could be impacted by several factors,
including:</font><p>
<font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the availability of
alternative products from
competitors;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
price of our products relative to that of our
competitors;</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
timing of our market entry;
and</font><br><font size="2">&#8226;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the ability to
market our products effectively.</font><p>
<font size="2">Some of these factors are not within our control. Our proposed
products may not achieve expected levels of market acceptance. Additionally,
continuing studies of the proper utilization, safety and efficacy of
pharmaceutical products are being conducted by the industry, government agencies
and others. Such studies, which increasingly employ sophisticated methods and
techniques, can call into question the utilization, safety and efficacy of
previously marketed products. In some cases, these studies have resulted, and
may in the future result, in the discontinuance of product marketing. These
situations, should they occur, could have a material adverse effect on our
business, financial position and results of operations, and the market value of
our common stock could decline.</font><p>
<font size="2"><b>Because the biotechnology industry is heavily regulated, we
face significant costs and uncertainties associated with our efforts to comply
with applicable regulations. Should we fail to comply, we could experience
material adverse effects on our business, financial position and results of
operations, and the market value of our common stock could
decline.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The biotechnology
industry is subject to regulation by various federal and state governmental
authorities. For example, we must comply with FDA requirements with respect to
the development of our proposed products and our early clinical trials, and if
any of our proposed products are approved, the manufacture, labeling, sale,
distribution, marketing, advertising and promotion of our products. Failure to
comply with FDA and other governmental regulations can result in fines,
disgorgement, unanticipated compliance expenditures, recall or seizure of
products, total or partial suspension of production and/or distribution,
suspension of the FDA&#8217;s review of New Drug Applications ("NDA&#8217;s"),
enforcement actions, injunctions and criminal prosecution. Under certain
circumstances, the FDA also has the authority to revoke previously granted drug
approvals. Despite our efforts at compliance, there is no guarantee that we may
not be deemed to be deficient in some manner in the future. If we were deemed to
be deficient in any significant way, our business, financial position and
results of operations could be materially affected and the market value of our
common stock could decline.</font><p>
<font size="2"><b>Your investment in our common stock may be diluted if we issue
additional shares in the future.</b></font><p>
<font size="2">We may issue additional shares of common stock, which would
reduce your percentage ownership and may dilute your share value. Our
Certificate of Incorporation authorize the issuance of 50,000,000 shares of
common stock. As of July 15, 2007, we had 31,624,658 shares of common stock
issued and outstanding.  The future issuance of all or part of the remaining
authorized common stock would result in substantial dilution in the percentage
of the common stock held by existing shareholders.  We may value any common
stock issued in the future on an arbitrary basis. The issuance of common stock
for future services or acquisitions or other corporate actions may have the
effect of diluting the value of the shares held by existing shareholders, and
might have an adverse effect on any trading market for our common
stock.</font><p>
<font size="2"><b>There is a limited trading market for our common stock, which
may make it difficult for you to sell your shares.</b></font></p>
&nbsp;	<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>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock is
quoted on the OTC Bulletin Board. Like many stocks quoted on the OTC Bulletin
Board, trading in our common stock is thin and characterized by wide
fluctuations in trading prices, due to many factors that may have little to do
with our operations or business prospects. This volatility could depress the
market price of our common stock for reasons unrelated to operating performance.
Moreover, trading on the OTC Bulletin Board is often more sporadic and volatile
than the trading on security exchanges like NASDAQ, American Stock Exchange or
New York Stock Exchange. Accordingly, you may have difficulty reselling your
shares of our common stock in short time periods.</font><p>
<font size="2"><b>Our common stock may be deemed a "penny stock," which would
make it more difficult for you to sell your shares.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our common stock may be
subject to the "penny stock" rules adopted under Section 15(g) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"). The penny stock rules
apply to companies whose common stock is not listed on the NASDAQ Stock Market
or another national securities exchange and trades at less than $5.00 per share
or that have tangible net worth of less than $5,000,000 ($2,000,000 if the
company has been operating for three or more years). These rules require, among
other things, that brokers who trade penny stock to persons other than
"established customers" complete certain documentation, make suitability
inquiries of investors and provide investors with certain information concerning
trading in the security, including a risk disclosure document and quote
information under certain circumstances. Many brokers have decided not to trade
penny stocks because of the requirements of the penny stock rules and, as a
result, the number of broker-dealers willing to act as market makers in such
securities is limited. If we remain subject to the penny stock rules for any
significant period, it could have an adverse effect on the market, if any, for
our common stock. If our common stock is subject to the penny stock rules, you
will find it more difficult to dispose of the shares of our common stock that
you have purchased.</font><p>
<font size="2"><b>Item 2.&nbsp;&nbsp; Description of Property.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has an
office address at 2200 Wilson Boulevard, Suite 102-316, Arlington, VA 22201.
The Company&#8217;s rental payments are $40 per month.</font><p>
<font size="2"><b>Item 3.&nbsp;&nbsp;Legal Proceedings.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company is not the
subject of any pending legal proceeding and to the knowledge of management, no
proceedings are presently contemplated against the Company by any federal, state
or local governmental agency. Further, to the knowledge of management, no
director or executive officer is party to any action in which such director or
executive officer has an interest adverse to the Company.</font><p>
<font size="2"><b>Item 4.&nbsp;&nbsp;Submission of Matters to a Vote of Security
Holders.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no
submissions of matters to a vote of security holders. The Company did not hold
its annual meeting of stockholders for FY 2007 for financial
reasons.</font></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">
<font size="2">PART II</font><p>
<font size="2"><b>Item 5.&nbsp;&nbsp;Markets for Common Equity &amp; Related
Stockholder Matters.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;Principal
Market or Markets</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following
information sets forth the high and low bid price for the Company&#8217;s common
stock for each quarter within the last two fiscal years. The Company&#8217;s
common stock (symbol CSBR) is traded over-the-counter (OTC) and quoted on the
electronic Bulletin Board maintained by the National Association of Securities
Dealers. The Company&#8217;s securities are presently classified as "Penny
Stocks" as defined by existing securities laws. This classification places
significant restrictions upon broker-dealers desiring to make a market in such
securities.</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="131.999967" colspan="2" rowspan="1" >
<p align="center">
<font size="2">Common Stock</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">High</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Low</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
<p>
<font size="2">Fiscal 2007</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">First Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.04</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.02</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Second Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.02</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.01</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Third Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.80</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.01</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Fourth Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.60</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.27</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">High</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Low</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
<p>
<font size="2">Fiscal 2006</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="313.333255" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="59.999985" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">First Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.07</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.04</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Second Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.06</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.02</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Third Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.08</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.02</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="271.999932" colspan="1" rowspan="1" >
<p>
<font size="2">Fourth Quarter</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.10</font></p align="center">
</td>
<td width="59.999985" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.01</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;Approximate
Number of Holders of Common Stock</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of holders
of record of the Company&#8217;s common stock as of July 15, 2007 was 2,160 and
the Company estimates that there are approximately 3,000 additional beneficial
shareholders.  </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;Dividends</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Holders of common stock
are entitled to receive such dividends as may be declared by the Company&#8217;s
Board of Directors.  No dividends have been paid with respect to the
Company&#8217;s common stock and no dividends are anticipated to be paid in the
foreseeable future.  Any future decisions as to the payment of dividends will be
at the discretion of the Company&#8217;s Board of Directors, subject to
applicable law. On October 16, 2006, the Company agreed to issue 1,000,000
shares of common stock, a five-year warrant to purchase up to 500,000 shares of
common stock at an exercise price of $0.15 per share, and a five-year warrant to
purchase up to 500,000 shares of common stock at an exercise price of $0.25 per
share to the holder of 32,450 shares of the Company&#8217;s preferred stock,
representing all of the outstanding shares of preferred stock, in exchange for
the cancellation of such shares and the waiver of all accrued and unpaid
dividends on such shares, which totaled $350,460. </font><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">The Company has no
stock option plan. </font><p>
<font size="2"><b>Item 6.&nbsp;&nbsp;Management&#8217;s Discussion and Analysis
of Financial Condition and Results of Operations.</b></font><p align="center">
<font size="2">SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This document contains
"forward-looking statements" within the meaning of Section 27A of the Securities
Act and Section 21E of the Securities Exchange Act that inherently involve risk
and uncertainties.  The Company generally uses words such as "believe," "may,"
"could," "will," "intend," "estimate," "expect," "anticipate," "plan," "likely,"
"promise" and similar expressions to identify forward-looking statements.  One
should not place undue reliance on these forward-looking statements.  The
Company&#8217;s actual results could differ materially from those anticipated in
the forward-looking statements for many unforeseen factors, which may include,
but are not limited to, changes in general economic conditions, the ongoing
threat of terrorism, ability to have access to financing sources on reasonable
terms and other risks that are described in this document. Although the Company
believes the expectations reflected in the forward-looking statements are
reasonable, they relate only to events as of the date on which the statements
are made, and the Company&#8217;s future results, levels of activity,
performance or achievements may not meet these expectations.  The Company does
not intend to update any of the forward-looking statements after the date of
this document to conform these statements to actual results or to changes in the
Company&#8217;s expectations, except as required by
law.</font></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>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following
discussion and analysis summarizes the financial condition of the Company for FY
2007 and compares that to its financial condition for FY 2006. This discussion
and analysis should be read in conjunction with our financial statements and
notes appearing elsewhere in this report. The discussion should also be read
with the cautionary statements and risk factors appearing at the end of this
section.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company beginning
in January 2007 changed its business direction to focus on biotechnology and has
since commenced the process of building a biotechnology company from the ground
up. The Company is engaged in the evaluation, acquisition and early stage
development of a portfolio of new therapeutic drug candidates, in the
acquisition and development of novel technologies and in providing
administrative services in the field of oncology that the Company hopes will
improve methods of and approaches to disease treatment.  </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Results of
Operations for Fiscal Years 2007 and 2006.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;Operating
Revenues</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the fiscal year ended April 30, 2007, the Company&#8217;s operating revenue was
$0.00. For fiscal year ended April 30, 2006, the operating revenue was $0.00 as
reclassified. The Company&#8217;s consolidated financial statements have been
reclassified to reflect the cessation of business in June 2005 of its San
Antonio Champions location as discontinued operations during FY 2006.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Operating
Expenses</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
FY 2007, the operating expenses for the Company were the general and
administrative expenses which were $170,058 compared to $144,117 in FY 2006. The
increase of $25,941 was due to the additional expenses associated with changing
the business direction of the Company to biotechnology. </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Profits
/ Losses</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
FY 2007, the Company&#8217;s net loss applicable to common stockholders was
$170,058.  For FY 2006 it was $303,718. For FY 2007 the loss was $0.01 per
common share and FY 2006 the loss was $0.02 per common share. In FY 2006, the
loss from discontinued operations was $159,601, which reflected the cessation of
business in June 2005 of the Company&#8217;s San Antonio Champions
location</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Liquidity and
Capital Resources for Fiscal Years 2007 and 2006.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s
cash position on April 30, 2007, was $3,758 compared to $540 on April 30, 2006.
In FY 2007, the net cash used in operating activities of continuing and
discontinued operations was $78,475. In FY 2006, the net cash used in operating
activities of continuing and discontinued operations was $93,973. The
Company&#8217;s working capital as of April 30, 2007 was a negative $441,065
contrasted to a negative $670,513 on April 30, 2006. In FY 2007 the Company
converted $350,460 of dividends payable on preferred stock by issuing shares of
common stock in exchange for cancellation of outstanding preferred shares and
waiver of all accrued and unpaid dividends on such shares. In FY 2007, the
Company received advances totaling $43,693 from its executive officer, James
Martell, to meet the Company&#8217;s working capital needs. The Company also
issued 2,500,000 restricted shares of common stock
to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dr. Manuel Hidalgo for an aggregate purchase
price of $10,000 and 7,000,000 restricted shares of common stock to Dr. David
Sidransky for an aggregate purchase price of $28,000 with all proceeds used for
working capital. </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In FY 2007 the Company
acquired the patent rights to cancer drug candidates Benzoylphenylurea (BPU)
Sulfur Analogs. The purchase price for the patent rights consisted of an
aggregate of up to 550,000 restricted shares of the Company&#8217;s common
stock, of which 300,000 restricted shares were issued upon execution of the
acquisition agreement and 250,000 restricted shares are issuable upon the
issuance of one of the patents based on U.S. Patent Application no.
11/673,519.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Miscellaneous
for Fiscal Years 2007 and 2006.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders&#8217;
equity on April 30, 2007 was a negative $441,065 compared to a negative $670,513
on April 30, 2006. In FY 2007 and FY 2006, the Board of Directors voted to defer
the annual meeting of shareholders in order to preserve the Company&#8217;s cash
reserves.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impact of
inflation.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inflationary factors
have had no significant effect on the Company&#8217;s
operations.</font></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>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Subsequent
events.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to April 30,
2007, in May 2007, the Company acquired Biomerk Inc. a company focused on
generating a novel preclinical platform of human cancer tumor immune-deficient
mice xenografts (Biomerk Tumorgrafts&#8482;).  Biomerk Tumorgrafts&#8482;,
unlike standard cell line derived xenografts, are implanted directly from
primary human cancer tumors and never passaged in cell tissue culture. The
Company believes that these xenografts more closely reflect human cancer biology
and are more predictive of clinical outcome. The Company has several patent
applications relating to xenograft models used for identifying potentially
active chemotherapeutic agents. The Company believes that it as well as
biotechnology and pharmaceutical companies, as part of their drug discovery and
post marketing efforts,  may benefit from utilizing services that are more
predictive and that might provide for a faster and less expensive path for drug
approval. These services will utilize Biomerk Tumorgrafts&#8482; to evaluate
tumor sensitivity/resistance to various single and combination standard and
novel chemotherapy agents. The Biomerk acquisition provided the Company with
approximately $475,000 cash. The Company anticipates that this will cover
operating costs until longer term capital is obtained</font> <font size="2">to
finance Company&#8217;s future development. There is no assurance that this can
be done on terms satisfactory to the Company.</font><p>
<font size="2"><b>Item 7.&nbsp;&nbsp;Financial Statements and Supplementary
Data.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Report  of
Independent  Accountants  appears  at  page  F-1  and  the Consolidated
Financial  Statements  and  Notes  to the  Consolidated  Financial Statements
appear at pages F2 through F19 hereof.</font><p>
<font size="2"><b>Item 8.&nbsp;&nbsp;Changes In and Disagreements with
Accountants on Accounting &amp; Financial Disclosure.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In FY 2007, the Company
did not change its independent auditor, Bagell, Josephs, Levine &amp; Company
L.L.C. There have been no disagreements between the Company and its independent
accountant on any matter of accounting principles or practices or financial
statement disclosure during the last two fiscal years.</font><p>
<font size="2"><b>Item 8A(T).&nbsp;&nbsp;Controls and Procedures.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company maintains a
set of disclosure controls and procedures designed to ensure that information
required to be disclosed by the Company in the reports filed under the
Securities Exchange Act, is recorded, processed, summarized and reported within
the time periods specified by the SEC&#8217;s rules and forms. Disclosure
controls are also designed with the objective of ensuring that this information
is accumulated and communicated to the Company&#8217;s management, including the
Company&#8217;s chief executive officer and chief financial officer, as
appropriate, to allow timely decisions regarding required disclosure.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based upon their
evaluation as of the end of the period covered by this report, the
Company&#8217;s chief executive officer and also its chief financial officer
concluded that, the Company&#8217;s disclosure controls and procedures are not
effective to ensure that information required to be included in the
Company&#8217;s periodic SEC filings is recorded, processed, summarized, and
reported within the time periods specified in the SEC rules and forms.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company&#8217;s
Board of Directors was advised by Bagell, Josephs, Levine &amp; Company, L.L.C.,
the Company&#8217;s independent registered public accounting firm that during
their performance of audit procedures for FY 2007, Bagell, Josephs &amp;
Company, L.L.C. identified a material weakness as defined in Public Company
Accounting Oversight Board Standard No. 2 in the Company&#8217;s internal
control over financial reporting.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This deficiency
consisted primarily of inadequate staffing and supervision that could lead to
the untimely identification and resolution of accounting and disclosure matters
and failure to perform timely and effective reviews. However, the size of the
Company prevented it from being able to employ sufficient resources to enable
the Company to have adequate segregation of duties within its internal control
system. Management is required to apply its judgment in evaluating the
cost-benefit relationship of possible controls and procedures.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certifications  of the
Chief Executive  Officer and Chief Financial Officer regarding,  among other
items, disclosure  controls and procedures are included immediately after the
signature section of this Form 10-KSB.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This annual report does
not include an attestation report of the Company&#8217;s registered public
accounting firm regarding internal control over financial reporting.
Management&#8217;s report was not subject to attestation by the Company&#8217;s
registered public accounting firm pursuant to temporary rules of the Securities
and Exchange Commission that permit the Company to provide only
management&#8217;s report in this annual report.</font><p>
<font size="2"><b>Item 8B.&nbsp;&nbsp;Other Information.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None.</font></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 align="center">
<font size="2">PART III</font><p>
<font size="2"><b>Item 9.&nbsp;&nbsp;Directors, Executive Officers, Promoters,
Control Persons and Corporate Governance; Compliance with Section 16(a) of the
Exchange Act.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Executive Officers
and Directors of the Company as of August 13, 2007 are as follows:</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="113.333305" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">NAME</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="365.333242" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">POSITION(S) PRESENTLY HELD</font></p>
</td>
<td width="149.333296" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="659.999835" colspan="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
<font size="2">James M. Martell </font></p>
</td>
<td width="515.999871" colspan="2" rowspan="1" >
<p>
<font size="2">Chairman, Chief Executive Officer, President and Chief Financial
Officer </font></p>
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
<font size="2">Dr. David Sidransky</font></p>
</td>
<td width="515.999871" colspan="2" rowspan="1" >
<p>
<font size="2">Director<sup>1</sup></font></p>
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
<font size="2">Dr. Manuel Hidalgo</font></p>
</td>
<td width="515.999871" colspan="2" rowspan="1" >
<p>
<font size="2">Director and Scientific Advisor<sup>2</sup></font></p>
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
<font size="2">Durwood C. Settles</font></p>
</td>
<td width="515.999871" colspan="2" rowspan="1" >
<p>
<font size="2">Treasurer, Director</font></p>
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
<font size="2">Michael M. Tomic</font></p>
</td>
<td width="515.999871" colspan="2" rowspan="1" >
<p>
<font size="2">Director</font></p>
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="515.999871" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="659.999835" colspan="4" rowspan="1" >
<p>
<sup><font size="2">1</font></sup> <font size="2">Dr. Sidransky was appointed to
serve as Director in August 2007</font></p>
</td>
</tr>
<tr valign="top">
<td width="659.999835" colspan="4" rowspan="1" >
<p>
<sup><font size="2">2 </font></sup><font size="2">Dr. Manuel Hidalgo was
appointed to serve as Director and as Scientific Advisor in June
2007.</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;James M.
Martell</b>, age 60, has served as President from May 1990 to June 1992 and from
January 1993 to September 1993 and from March 1994 to the present and as Chief
Executive Officer from May 1990 to June 1992 and from January 1993 to September
1993 and from March 1994 to August 2000 and from June 2001 to the present and as
Chairman from November 1991 to August, 2000 and from June 2001 to the present.
Mr. Martell served as Chief Financial Officer since May 2006 to the present and
as Director of the Company since its inception on June 4, 1985.  Additionally,
he served the Company as Vice President from October 1988 to May 1990, as
Treasurer from June 1985 to January 1989, and as Secretary from June 1985 to
January 1986. From 1983 to 1987, Mr. Martell was a partner along with Mr. Tomic
in Tomar Associates, a consulting company specializing in European-American
joint ventures, venture capital financing, technology transfer, and corporate
finance.  From 1981 to 1983, Mr. Martell was a partner in International Group, a
partnership   involved in promoting   national and   international   business
development. From 1973 to 1981, he served in various administrative positions at
the U.S. Department of Energy. Mr. Martell received a Bachelor of Science degree
in Chemistry in 1968 and a Master of Science degree in Geochemistry in 1973,
from George Washington University.</font><p>
<font size="2"><b>David Sidransky, M.D.</b>  age 47, has served as a Director of
the Company since August 2007. Dr.&nbsp;Sidransky is the Director of the Head
and Neck Cancer Research Division at Johns Hopkins University School of Medicine
and is a Professor of Oncology, Otolaryngology-Head and Neck Surgery, Cellular
&amp; Molecular Medicine, Urology, Genetics, and Pathology at Johns Hopkins
University and Hospital. Dr. Sidransky is one of the five most highly cited
researchers in clinical and medical journals in the world, in the field of
oncology during the past decade, with over 300 peer-reviewed publications. He
has contributed more than 40 cancer reviews and chapters. Dr. Sidransky is a
founder of a number of biotechnology companies and holds numerous biotechnology
patents. He has served as Vice Chairman of the Board of Directors of ImClone and
presently is a director of ImClone, Vice Chairman of Alfacell and serves on the
Board of Directors of Xenomics. Dr. Sidransky is serving and has served on
scientific advisory boards of MedImmune, Roche, Amgen and Veridex, LLC. (a
Johnson &amp; Johnson diagnostic company), among others. Dr. Sidransky serves as
Director (2005-2008) of American Association for Cancer Research (AACR).  He was
the chairperson of the first (September 2006) and is the chairperson of the
second (September 2007) AACR International Conference on Molecular Diagnostics
in Cancer Therapeutic Development: Maximizing Opportunities for Individualized
Treatment.  Dr. Sidransky is the recipient of many awards and honors, including
the 1997 Sarstedt International Prize from the German Society of Clinical
Chemistry, the 1998 Alton Ochsner Award Relating Smoking and Health by the
American College of Chest Physicians and the 2004 Hinda and Richard Rosenthal
Award from the American Association of Cancer Research. Dr. Sidransky is
certified in Internal Medicine and Medical Oncology by the American Board of
Medicine. Dr. Sidransky received his B.A. from Brandeis University and his M.D.
from the Baylor College of Medicine.</font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Manuel Hidalgo</b>,
M.D., Ph.D., age 39, has served as Director and as Scientific Advisor since June
2007. Dr. Hidalgo, for the past five years has been an Associate Professor of
Oncology at the Sidney Kimmel Comprehensive Cancer Center, Johns Hopkins
University School of Medicine. He is also currently the Director of the Centro
Integral Oncologia "Clara Campal" in Madrid, Spain. Dr. Hidalgo is serving on
the Scientific Advisory Boards of private and public companies, including
Systems Medicine, Tau Therapeutics, Targeted Molecular Diagnostics and Monogram
Biosciences. Dr. Hidalgo is considered a leading researcher in the field of
targeted therapies for the treatment of cancer in patients with solid tumors.
Dr. Hidalgo has published over 140 papers in prestigious cancer journals as well
as numerous chapters in important text books. He has received numerous awards
including an AACR Young Investigator Award, an NCI-EORTC fellowship and an ASCO
Career Development Award. He has served on the editorial board of the Journal of
Clinical Oncology and Clinical Cancer Research and is a Senior Editor for
Molecular Cancer Therapeutics. Dr. Hidalgo has chaired the AACR and ASCO Program
Committee in developmental therapeutics on numerous occasions and is frequently
invited to speak at major national and international meetings. He chairs the
Pancreatic Cancer Research Team, a nonprofit organization focused on clinical,
trials in pancreatic cancer, and is also a member of the NCI Developmental
Therapeutics Study. Dr. Hidalgo&#8217;s laboratory has been involved in the
development of the Champions Biotechnology&#8217;s BPU sulfur analog compounds.
He is one of the inventor&#8217;s of the BPU sulfur analog compounds that the
Company acquired in February 2007. </font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>12</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Durwood C.
Settles</b>, age 64, has served as Treasurer since June 2007 and Director of the
Company since March 2001. Mr. Settles is a former Certified Public Accountant in
individual practice since 1983. From 1973 to 1982, Mr.  Settles was with Coopers
&amp; Lybrand in Washington, DC as a member of the audit staff and as
Manager-Special Projects. During the period 1974 to 1986, Mr. Settles served as
Controller or Treasurer of the various political campaign organizations of
Congressman Richard A. Gephardt of Missouri, Governor Charles S. Robb of
Virginia, and Congressman Joseph L. Fisher of Virginia. From 1970 to 1973, Mr.
Settles was an owner and executive of a company that manufactured and sold
Plexiglas furniture located in Kensington, Maryland.  From 1966 to 1969, Mr.
Settles was a promoter of popular music concerts in various cities in the
Eastern and Southern United States.  From 1964 to 1966, Mr. Settles was a Group
Pension Management Assistant and Computer Files Service Supervisor with the
Mutual of New York Life Insurance Company (MONY) in New York, New York. Mr.
Settles received a Bachelor of Arts degree in 1964 from Davidson College,
Davidson, North Carolina and completed accounting studies in 1973 at George
Washington University, Washington, D.C.</font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Michael M.
Tomic</b>, age 61, has served as a Director of the Company since its inception
on June 4, 1985.  From June 1985 to January 1986, he also served as Vice
President of the Company.  For the past five years Mr. Tomic has been a business
consultant. From 1983 to 1987, Mr. Tomic was a partner along with Mr.  Martell
in Tomar  Associates,  a consulting  company  specializing  in European-American
joint  ventures,   venture  capital  financing,   technology transfer,  and
corporate  finance.  He received a Bachelor of Science degree in International
Marketing and Economics in 1969 from the University of Maryland.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The term of office of
each Director is until the next annual election of Directors and until a
successor is elected and qualified or until the Director&#8217;s earlier death,
resignation or removal.</font><p>
<font size="2">Board Committees</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As the Board of
Directors only has four directors and the Company has only one officer, no audit
or nominating committee has been established.  Currently, all members of the
Company&#8217;s Board of Directors participate in discussions concerning
executive officer compensation.</font><p>
<font size="2">Code of Ethics </font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has not
adopted a formal code of ethics applicable to the Company&#8217;s principal
executive, financial, and accounting officers and persons performing similar
functions, since the Company has only one individual in the applicable role and
the Company believes that its financial operations are not sufficiently complex
to warrant adoption of a formal code of ethics. </font><p>
<font size="2"><b>Item 10.&nbsp;&nbsp;Executive Compensation.</b></font></p>
&nbsp;The following sets forth information for the most recently completed fiscal year concerning the compensation of (i) the Chief Executive Officer and (ii) all other executive officers who earned in excess of $100,000 in salary and bonus in the fiscal year ended April 30, 2007.	<p align="center">
<b>SUMMARY COMPENSATION TABLE</b></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="42.666656" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Nonqualified</b></font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="42.666656" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Non-Equity</b></font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Deferred</b></font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Stock</b></font></p align="center">
</td>
<td width="42.666656" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Option</b></font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Incentive Plan</b></font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Compensation</b></font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>All Other</b></font></p align="center">
</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Award</b></font></p align="center">
</td>
<td width="42.666656" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Awards</b></font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Compensation</b></font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Earnings</b></font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Compensation</b></font></p align="center">
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Total</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Name and Principal Position</b></font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Year</b></font></p align="center">
</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Salary&nbsp;($)</b></font></p align="center">
</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Bonus&nbsp;($)</b></font></p align="center">
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>($)</b></font></p align="center">
</td>
<td width="42.666656" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>($)</b></font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>($)</b></font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>($)</b></font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>($)</b></font></p align="center">
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>($)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(1)</font></p align="center">
</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="42.666656" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
<p>
<font size="2">James M. Martell</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2007</font></p align="center">
</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$64,052</font></p align="center">
</td>
<td width="50.666654" colspan="1" rowspan="1" >
<p align="center">
<font size="2">-</font></p align="center">
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="center">
<font size="2">-</font></p align="center">
</td>
<td width="42.666656" colspan="1" rowspan="1" >
<p align="center">
<font size="2">-</font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2">-</font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<font size="2">-</font></p align="center">
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="center">
<sup><font size="2">(1)</font></sup></p align="center">
</td>
<td width="47.999988" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$64,052</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
<p>
<font size="2">Chairman, President. and Chief Executive</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="42.666656" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
<p>
<font size="2">Officer, Chief Financial Officer</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="42.666656" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="234.666608" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="33.333325" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="50.666654" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="42.666656" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="47.999988" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="719.999820" colspan="10" rowspan="1" >
<p>
<font size="2">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All of the salary was accrued.
The Company, on January 12, 2005, was advised by the Securities and Exchange
Commission, upon its review of the Company&#8217;s filing of the Form 10-KSB for
the year ended April 30, 2004, that when an executive officer, who is also a
significant shareholder of the company, contributes his services to the company,
the fair value of those services should be reflected as expense on the books of
the Company. Consequently, 10-KSB filings were revised and reflect the action
taken by the Company to accrue the salary of its executive officer, Mr. Martell,
pursuant to the salary rate in his employment agreement in FY 2004 and pursuant
to a reduced salary in FY 2006 and FY 2007.  For FY 2004, $98,667 was accrued,
for FY 2005, $148,000 was accrued, for FY 2006, $73,933 was accrued and for FY
2007, $64,052was accrued. No cash compensation has been paid to Mr. Martell
since 2003.</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In FY 2007, all
executive officers of the Company as a group (one in number) received no cash
compensation.  Effective January 2004,  payments of salaries to all executive
officers  were  suspended  in order to preserve  the  Company&#8217;s  cash
position to be resumed when the cash  position of the Company  improves.  The
Board of Directors has the right to change and increase the compensation of
executive officers at any time. The Company has no arrangement by which any of
its directors are compensated for services solely as directors, and these
individuals do not receive any additional remuneration for their services as
directors.  The Company may from time to time pay consulting fees to its
officers and directors.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>13</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has no
compensatory plan or arrangement which would result in executive officers
receiving compensation as a result of their resignation, retirement or any other
termination of employment with the Company or its affiliates, or from a change
in control of the Company or a change in responsibilities following a change in
control of the Company.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 15, 2007,
the Company issued fifty thousand shares of restricted stock to Durwood Settles,
Director of the Company, exercisable over a five year period, based on a fair
value exercise price on the date of issuance ($0.17), exercisable through
January 15, 2012, and vesting one year from the date of issuance. </font><p>
<font size="2">There were no options granted to officers or directors in FY
2006.</font><p>
<font size="2"><b>Item 11.&nbsp;&nbsp;Security Ownership of Certain Beneficial
Owners and Management and Related Stockholder Matters.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of August 13, 2007,
the following were persons known to the Company to own beneficially more than 5%
of the Company&#8217;s outstanding Common Stock:</font><p>
<font size="2"> </font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Name and Address of</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Common Stock</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Percentage of</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">Beneficial Owner</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">Beneficially Owned (1)</font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">Common Stock</font></p>
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Dr. David Sidransky</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p align="center">
<font size="2">10,800,000</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">34.2</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">1550 Orleans Street</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Baltimore, MD 21231</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">James M. Martell</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p align="center">
<font size="2">9,548,000</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">30.2</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">2200 Wilson Blvd., Suite 102-316</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Arlington, VA 22201</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Dr. Manuel Hidalgo</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2,562,500</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">8.1</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">1550 Orleans Street</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Baltimore, MD 21231</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<sup><font size="2">(1))</font></sup><font size="2">&nbsp;Beneficial Ownership
includes shares for which an individual,  directly or indirectly,  has or
shares, or has the right within 60 days to have or share, voting or  investment
power or both.  Beneficial ownership as reported in the above table has been
determined in accordance with Rule 13d-3 of the Exchange Act.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of August 13, 2007,
the stock ownership by officers and directors of the Company and all officers
and directors as a group are as follows:</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="137.333299" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Common Stock</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="137.333299" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Beneficially Owned</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">Name</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">Title</font></p>
</td>
<td width="137.333299" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">as of July 15, 2007 (1)</font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">Percentage</font></p>
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">James M. Martell</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p>
<font size="2">Chairman, CEO, President  </font></p>
</td>
<td width="137.333299" colspan="1" rowspan="1" >
<p align="center">
<font size="2">9,548,000</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">30.2</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Dr. David Sidransky</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p>
<font size="2">Director </font></p>
</td>
<td width="137.333299" colspan="1" rowspan="1" >
<p align="center">
<font size="2">10,800,00</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">34.2</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Dr. Manuel Hidalgo</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p>
<font size="2">Director , Scientific Advisor</font></p>
</td>
<td width="137.333299" colspan="1" rowspan="1" >
<p align="center">
<font size="2">2,562,500</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">8.1</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Michael M. Tomic</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p>
<font size="2">Director</font></p>
</td>
<td width="137.333299" colspan="1" rowspan="1" >
<p align="center">
<font size="2">225,000</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.7</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Durwood Settles</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
<p>
<font size="2">Director</font></p>
</td>
<td width="137.333299" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">0.0</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="137.333299" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">All Officers &amp; Directors as a group</font></p>
</td>
<td width="161.333293" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="137.333299" colspan="1" rowspan="1" >
<p align="center">
<font size="2">23,135,500</font></p align="center">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
<font size="2">73.2</font></p align="center">
</td>
</tr>
</table></div>
<p>
<sup><font size="2">(1)</font></sup><font size="2">&nbsp;Beneficial Ownership
includes shares for which an individual, directly or indirectly, has or shares,
or has the right within 60 days to have or  share,  voting  or  investment
power or both.  Beneficial ownership as reported in the above table has been
determined in accordance with Rule 13d-3 of the Exchange Act.</font><p>
<font size="2">Compliance with Section 16(a).</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 16(a) of the
Exchange Act, as amended, requires the Company&#8217;s executive officers,
directors and persons who beneficially own more than 10% of the Company&#8217;s
common stock to file reports of their beneficial ownership and changes in
ownership (Forms 3, 4 and 5, and any amendment thereto) with the SEC. Executive
officers, directors, and greater-than-ten percent holders are required to
furnish the Company with copies of all Section 16(a) forms they file.  Based on
the Company&#8217;s review of the activity of the officers and directors for the
fiscal year ended April 30, 2007, the Company believes that reports pursuant to
Section 16(a) were filed.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>14</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<font size="2"><b>Item 12.&nbsp;&nbsp;Certain Relationships and Related
Transactions.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During FY 2007, the
Company received, for working capital needs, advances, totaling $43,693,</font>
<font size="2">due on demand and without interest, from James Martell, President
and CEO of the Company.  </font><p>
<font size="2"><b>Item 13.&nbsp;&nbsp;Exhibits and Reports on Form
8-K.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Index to Financial
Statements
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PAGE</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent
Auditors&#8217; Reports  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F-1 - 18</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Reports on Form 8-K
</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February 16, 2007, the Company filed an 8-K stating that the Company acquired
all of the patent rights underlying pending U.S. Patent Application no.
11/673,519 and corresponding international patent application
(PCT/US2006/014449) filed under the Patent Cooperation Treaty (PCT), both
entitled "Design and Synthesis of Novel Tubulin Polymerization Inhibitors:
Benzoylphenylurea (BPU) Sulfur Analogs." The acquisition represented the
commencement of the Company&#8217;s strategy to develop a biotechnology business
based on therapeutic drug candidates, among other possible ventures. The
purchase price for the patent rights consisted of an aggregate of up to 550,000
restricted shares of common stock, of which 300,000 restricted shares were
issued upon execution of the acquisition agreement and 250,000 restricted shares
are issuable upon the issuance of one of patents based on U.S. Patent
Application no. 11/673,519.</font><p>
<font size="2"><b>Item 14.&nbsp;&nbsp;Principal Accountant Fees and
Services.</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following is a
summary of the fees billed to the Company by its principal accountants during
the fiscal years ended April 30, 2007, and April 30, 2006:</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="115.999971" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">Fee Category</font></p>
</td>
<td width="70.666649" colspan="1" rowspan="1" >
<p>
<font size="2">    </font></p>
</td>
<td width="63.999984" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">FY 2007</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">FY 2006</font></p>
</td>
</tr>
<tr valign="top">
<td width="115.999971" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="70.666649" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="63.999984" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="187.999953" colspan="2" rowspan="1" >
<p>
<font size="2">Audit fees</font></p>
</td>
<td width="61.333318" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$8,000</font></p align="center">
</td>
<td width="25.333327" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$8,000</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="187.999953" colspan="2" rowspan="1" >
<p>
<font size="2">Audit-related fees</font></p>
</td>
<td width="61.333318" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$4,500</font></p align="center">
</td>
<td width="25.333327" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$4,500</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="187.999953" colspan="2" rowspan="1" >
<p>
<font size="2">Tax fees</font></p>
</td>
<td width="61.333318" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$0</font></p align="center">
</td>
<td width="25.333327" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$0</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="187.999953" colspan="2" rowspan="1" >
<p>
<font size="2">All other fees</font></p>
</td>
<td width="61.333318" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$0</font></p align="center">
</td>
<td width="25.333327" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$0</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="115.999971" colspan="1" rowspan="1" >
<p>
<font size="2">  </font></p>
</td>
<td width="159.999960" colspan="4" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="187.999953" colspan="2" rowspan="1" >
<p>
<font size="2">Total fees</font></p>
</td>
<td width="61.333318" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$12,500</font></p align="center">
</td>
<td width="25.333327" colspan="2" rowspan="1" >
<p>
<font size="2"> </font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p align="center">
<font size="2">$12,500</font></p align="center">
</td>
</tr>
</table></div>
<p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit fees.  Consists
of fees for professional services rendered by our principal accountants for the
audit of the annual financial statements.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit-related fees.
Consists of fees for assurance and related services by our principal accountants
that are reasonably related to the performance of the audit or review of
financial statements and are not reported under "Audit fees."</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax  fees.  Consists of
fees for professional services rendered by our principal accountants for tax
compliance, tax advice and tax planning.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All other fees.
Consists of fees for products and services provided by our principal
accountants, other than the services reported under "Audit fees," "Audit-related
fees" and "Tax fees" above.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit Committee
Policies and Procedures.</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company does not
have an audit committee at this time.</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>15</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>CONSOLIDATED FINANCIAL STATEMENTS</b><br><b>APRIL 30,
2007 AND 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>
<p>
</p align="center">
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>INDEX TO CONSOLIDATED FINANCIAL
STATEMENTS</b><br><b>APRIL 30, 2007 AND 2006 </b></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
<p>
<b>CONSOLIDATED FINANCIAL STATEMENTS:</b></p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="510.666539" colspan="2" rowspan="1" >
<p>
Report of Independent Registered Public Accounting Firm</p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p>
F1</p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="510.666539" colspan="2" rowspan="1" >
<p>
Consolidated Balance Sheet as of April 30, 2007 and 2006 </p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p>
F2</p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
<p>
Consolidated Statements of Operations for the Years </p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="486.666545" colspan="1" rowspan="1" >
<p>
Ended April 30, 2007 and 2006</p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p>
F3</p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
<p>
Consolidated Statement of Stockholders&#8217; Deficit for the </p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="486.666545" colspan="1" rowspan="1" >
<p>
Years ended April 30, 2007 and 2006 </p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p>
F4</p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
<p>
Consolidated Statements of Cash Flows for the Years Ended</p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="486.666545" colspan="1" rowspan="1" >
<p>
April 30, 2007 and 2006</p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p>
F5</p>
</td>
</tr>
<tr valign="top">
<td width="589.333186" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="510.666539" colspan="2" rowspan="1" >
<p>
Notes to Consolidated Financial Statements</p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p>
F6- F19</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>
Board of Directors and Stockholders<br>Champions Biotechnology, Inc. and
Subsidiaries<br>Arlington, Virginia 22201<p>
We have audited the accompanying consolidated balance sheets of Champions
Biotechnology, Inc. and Subsidiaries as of April 30, 2007 and 2006 and the
related consolidated statements of operations, changes in stockholders&#8217;
deficit, and cash flow for the years then ended. These consolidated financial
statements are the responsibility of the Company&#8217;s management. Our
responsibility is to express an opinion on these consolidated financial
statements based on our audits.<p>
We conducted our audits 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
consolidated 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 audits provide a
reasonable basis for our opinion.<p>
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Champions
Biotechnology, Inc. and Subsidiaries as of April 30, 2007 and 2006 and the
results of its operations, changes in stockholders&#8217; deficit, and their
cash flow for the years then ended in conformity with accounting principles
generally accepted in the United States of America.<p>
The accompanying consolidated financial statements for the years ended April 30,
2007 and 2006 have been prepared assuming that the Company will continue as a
going concern. As discussed in Note 8 to the consolidated financial statements,
the Company has sustained operating losses and capital deficits that raise
substantial doubt about its ability to continue as a going concern.
Management&#8217;s operating and financing plans in regard to these matters are
also discussed in Note 8. The consolidated financial statements do not include
any adjustments that might result from the outcome of these uncertainties.<p>
/s/ BAGELL, JOSEPHS, LEVINE &amp; COMPANY, L.L.C.<br>Bagell, Josephs, Levine
&amp; Company, L.L.C.<br>Gibbsboro, New Jersey<p>
August 10, 2007</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="123.999969" colspan="1" rowspan="1" >
<p>
<font size="2">MEMBER OF:</font></p>
</td>
<td width="470.666549" colspan="1" rowspan="1" >
<p>
<font size="2">AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS</font></p>
</td>
</tr>
<tr valign="top">
<td width="123.999969" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="470.666549" colspan="1" rowspan="1" >
<p>
<font size="2">NEW JERSEY SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS</font></p>
</td>
</tr>
<tr valign="top">
<td width="123.999969" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="470.666549" colspan="1" rowspan="1" >
<p>
<font size="2">PENNSYLVANIA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-1</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. </b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES </b><br><b>CONSOLIDATED BALANCE SHEETS </b><br><b>FOR THE YEARS
ENDED APRIL 30, 2007 AND 2006</b></p align="center">
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b>ASSETS</b></p align="center">
</td>
<td width="119.999970" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2007</b></font></p>
</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2006</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="702.666491" colspan="5" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>CURRENT ASSETS</b></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
3,758&nbsp;</p align="right">
</td>
<td width="25.333327" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
540&nbsp;</p align="right">
</td>
</tr>
</table></div>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;&nbsp;&nbsp;</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="463.999884" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Current Assets</b></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
3,758&nbsp;</p align="right">
</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
540&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangibles assets</p>
</td>
<td width="17.333329" 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="3">180,000&nbsp;</font></p>
</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<b>TOTAL ASSETS</b></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">183,758&nbsp;</font></p>
</td>
<td width="25.333327" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">540&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" 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="463.999884" colspan="1" rowspan="1" >
<p align="center">
<b>LIABILITIES AND STOCKHOLDERS&#8217; DEFICIT</b></p align="center">
</td>
<td width="237.333274" colspan="1" rowspan="1" >
&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="702.666491" colspan="5" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="702.666491" colspan="5" rowspan="1" >
<p>
<b>CURRENT LIABILITIES</b></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
$</p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
49,736&nbsp;</p align="right">
</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
$</p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
33,251&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend payable on preferred stock</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
350,460&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accrued expenses</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
351,394&nbsp;</p align="right">
</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
287,342&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term notes payable and advances</p>
</td>
<td width="17.333329" 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="3">43,693&nbsp;</font></p>
</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</b></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">444,823&nbsp;</font></p>
</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">671,053&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="702.666491" colspan="5" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>COMMITMENTS AND CONTINGENCIES</b></p>
</td>
</tr>
<tr valign="top">
<td width="702.666491" colspan="5" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="702.666491" colspan="5" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>STOCKHOLDERS&#8217; DEFICIT</b></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $10 par value; 56,075 shares
authorized;</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0 and 32,450 shares issued and outstanding</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
324,500&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.001 par value; 50,000,000 shares
authorized;</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27,624,658 and 16,824,658 shares issued and
outstanding</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
27,625&nbsp;</p align="right">
</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
16,825&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital</p>
</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
6,848,693&nbsp;</p align="right">
</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
5,922,349&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(7,104,245)</font></p>
</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (6,934,187)</font></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" >
<p align="right">
(227,927)</p align="right">
</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right">
(670,513)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: prepaid consulting</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(33,138)</font></p>
</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders&#8217; deficit</p>
</td>
<td width="17.333329" 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="3">(261,065)</font></p>
</td>
<td width="25.333327" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (670,513)</font></p>
</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="119.999970" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="463.999884" colspan="1" rowspan="1" >
<p>
<b>TOTAL LIABILITIES AND STOCKHOLDERS&#8217; DEFICIT</b></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">183,758&nbsp;</font></p>
</td>
<td width="25.333327" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="91.999977" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">540&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
The accompanying notes are an integral part of these consolidated financial
statements.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-2</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>CONSOLIDATED STATEMENTS OF OPERATIONS</b><br><b>FOR THE
YEARS ENDED APRIL 30, 2007 AND 2006</b></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="477.333214" 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">
<b><u>2007</u></b></p align="center">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<b><u>2006</u></b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="138.666632" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>OPERATING REVENUE</b></p>
</td>
<td width="138.666632" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="138.666632" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" 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="477.333214" colspan="1" rowspan="1" >
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating
revenue</b></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="3">-&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</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="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="138.666632" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<b>COSTS AND OPERATING EXPENSES </b></p>
</td>
<td width="138.666632" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative</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="3">170,058&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">144,117&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="138.666632" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and
operating expenses</b></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="3">170,058&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">144,117&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="138.666632" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>LOSS BEFORE DISCONTINUED OPERATIONS</b></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="3">(170,058)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (144,117)</font></p>
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="138.666632" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>DISCONTINUED OPERATIONS</b></p>
</td>
<td width="138.666632" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued operations (net of
taxes)</p>
</td>
<td width="138.666632" colspan="2" rowspan="1" >
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right">
(17,081)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of assets</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="3">-&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (142,520)</font></p>
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="138.666632" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
discontinued operations</b></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="3">-&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (159,601)</font></p>
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="138.666632" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<b>LOSS BEFORE PROVISION FOR INCOME TAXES</b></p>
</td>
<td width="138.666632" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(170,058)</p align="right">
</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
(303,718)</p align="right">
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes</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="3">-&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-   </font></p>
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="138.666632" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<b>NET LOSS APPLICABLE TO COMMON STOCKHOLDERS</b></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">(170,058)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (303,718)</font></p>
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="138.666632" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<b>BASIC AND DILUTED LOSS PER COMMON SHARE</b></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="119.999970" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.01)</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.02)</font></p>
</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="138.666632" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="477.333214" colspan="1" rowspan="1" >
<p>
<b>WEIGHTED AVERAGE SHARES OUTSTANDING </b></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="3">20,459,726&nbsp;</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">16,824,658&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
The accompanying notes are an integral part of these consolidated financial
statements.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-3</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>CONSOLIDATED STATEMENTS OF STOCKHOLDERS&#8217;
DEFICIT</b><br><b>FOR THE YEARS ENDED APRIL 30, 2007 AND 2006</b></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Series A, 12%</b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="3" rowspan="1" >
<p align="center">
<font size="2"><b>Convertible Cumulative</b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="167.999958" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Preferred Stock</b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="185.333287" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Common Stock</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Paid-in</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>Accumulated</b></font></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Shares</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Amount</b></font></p>
</td>
<td width="17.333329" 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>Shares</b></font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Amount</b></font></p>
</td>
<td width="23.999994" 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>Capital</b></font></p>
</td>
<td width="23.999994" 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>Deficits</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>Total</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" 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="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" 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="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Balance, April 30, 2005</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">32,450&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">324,500&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">16,824,658&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">16,825&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5,922,349&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (6,630,469)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (366,795)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" 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="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Net loss</font></p>
</td>
<td width="71.999982" 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="71.999982" 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>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" 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="83.999979" 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="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (303,718)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(303,718)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Balance, April 30, 2006</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">32,450&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">324,500&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">16,824,658&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">16,825&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">5,922,349&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2"> (6,934,187)</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="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2"> (670,513)</font></p>
</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" 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="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Issued 1,000,000 common shares  and 1,000,000 </font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" 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="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" 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="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;warrants in exchange for 32,450
preferred shares</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (32,450)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (324,500)</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,000,000&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,000&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">673,960&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" 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="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2">350,460&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" 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="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
<p>
<font size="2">Issued common stock for cash</font></p>
</td>
<td width="71.999982" 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="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7,000,000&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7,000&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">21,000&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" 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="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2">28,000&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" 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="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
<p>
<font size="2">Issued common stock for cash</font></p>
</td>
<td width="71.999982" 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="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,500,000&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,500&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7,500&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" 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="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2">10,000&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" 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="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
<p>
<font size="2">Issued Common stock for patents rights</font></p>
</td>
<td width="71.999982" 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="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">300,000&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">300&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">179,700&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" 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="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2">180,000&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" 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="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
<p>
<font size="2">Stock issued for consulting services (prepaid
consulting)</font></p>
</td>
<td width="71.999982" 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="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" 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="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">44,184&nbsp;</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" 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="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2">44,184&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" 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="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
<p>
<font size="2">Net loss </font></p>
</td>
<td width="71.999982" 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="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" 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="83.999979" 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="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (170,058)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(170,058)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="311.999922" colspan="1" rowspan="1" >
<p>
<font size="2">Balance, April 30, 2007</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&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="71.999982" 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="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">27,624,658&nbsp;</font></p>
</td>
<td width="29.333326" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">27,625&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">6,848,693&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (7,104,245)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (227,927)</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
The accompanying notes are an integral part of these consolidated financial
statements.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-4</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC</b></font><br><font size="2"><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>CONSOLIDATED STATEMENTS OF CASH
FLOWS</b></font><br><font size="2"><b>FOR THE YEARS ENDED APRL 30, 2007 AND
2006</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" 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>2006</b></font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>2005</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>CASH FLOWS FROM OPERATING ACTIVITIES</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Continuing Operations:</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (170,058)</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (144,117)</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net
loss to net cash </b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;used in operating
activities:</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in accounts
payable</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">16,485&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (36,219)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other accrued
expenses</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">64,052&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">73,933&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of prepaid consulting
services</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">11,046&nbsp;</font></p>
</td>
<td width="21.333328" 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">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">91,583&nbsp;</font></p>
</td>
<td width="21.333328" 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">37,714&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) operating
activities - operations</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (78,475)</font></p>
</td>
<td width="21.333328" 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"> (106,403)</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Discontinued Operations:</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued
operations</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="21.333328" 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"> (159,601)</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net
loss to net cash </b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by
operating activities:</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss
on disposal of assets</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">142,520&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Changes in assets and liabilities</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in inventories</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">18,459&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease in deposits</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="21.333328" 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">11,052&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
adjustments</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="21.333328" 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">172,031&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
cash provided by operating activities - discontinued operations</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
<td width="21.333328" 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">12,430&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" 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="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;continuing and
discontinued operations</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (78,475)</font></p>
</td>
<td width="21.333328" 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"> (93,973)</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH FLOWS FROM FINANCING ACTIVITIES</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>Continuing Operations:</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from officers loan
payable</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">43,693&nbsp;</font></p align="right">
</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of common
stock</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">38,000&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>Discontinued Operations:</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of
assets</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right">
<font size="2">10,000&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="21.333328" 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">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
cash provided by investing activities</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">81,693&nbsp;</font></p>
</td>
<td width="21.333328" 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">10,000&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>NET INCREASE (DECREASE) IN</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CASH AND CASH
EQUIVALENTS</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3,218&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (83,973)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>CASH AND CASH EQUIVALENTS -</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BEGINNING OF YEAR</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">540&nbsp;</font></p>
</td>
<td width="21.333328" 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">84,513&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH AND CASH EQUIVALENTS - END OF YEAR</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">3,758&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">540&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2"><b>SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the year
for:</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
paid</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">3,287&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
Tax Paid</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="603.999849" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>SUPPLEMENTAL SCHEDULE OF NON-CASH FLOW INVESTING AND FINANCING
ACTIVITIES:</b></font></p>
</td>
<td width="21.333328" 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="495.999876" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="603.999849" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">In January 2007, the company issued 340,000 stock-options for
prepaid consulting services valued at $44,184. </font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="89.333311" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
</table></div>
<p>
<p align="center">
The accompanying notes are an integral part of these consolidated financial
statements.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-5</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 1-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ORGANIZATION AND BASIS OF
PRESENTATION</u></b></p>
<p style="margin-left:80">Champions Biotechnology, Inc., (the "Company") is a
biotechnology company that 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 the Company hopes will
improve methods of and approaches to disease treatment.<br>The Company was
incorporated under the laws of the State of Delaware in June 1985 as a merger
and acquisition company under the name "International Group, Inc." In September
1985, the Company completed a public offering, and in January 1986, acquired the
world-wide rights to the Champions sports theme restaurant concept and
subsequently changed its name to "Champions Sports, Inc." In 1997, the Company
sold its Champions service mark and concept for sports themed restaurants to
Marriott International, Inc. and since then until January 2007, had been seeking
a new business direction. In January 2007, the Company changed its name to
Champions Biotechnology, Inc. to reflect the decision of the Company to focus on
biotechnology as its new business approach.</p><p>
</p>
<p style="margin-left:80">These statements reflect all adjustments, consisting
of normal recurring adjustments, which in the opinion of management, are
necessary for fair presentation of the information contained herein.</p><p>
</p>
<p style="margin-left:80">The Company has reclassified its financial statements
to take effect for the disposal of its only operating business.</p><p>
<p>
<b>NOTE 2-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><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>Principles
of Consolidation</u></b></p>
<p style="margin-left:80">The condensed consolidated financial statements
include the accounts of the Company and its subsidiaries. All material
intercompany transactions have been eliminated in consolidation.
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-6</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</u> (CONTINUED)</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Property
and Equipment</u></b></p>
<p style="margin-left:80">Property and equipment are stated at cost.
Depreciation is computed from the date property is placed in service using the
straight-line method over estimated useful lives as follows:</p><p>
</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">Life</font></p>
</td>
</tr>
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
<p>
Furniture and equipment</p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
<p align="center">
5-15 years</p align="center">
</td>
</tr>
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="195.999951" colspan="1" rowspan="1" >
<p>
Leasehold improvements</p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="190.666619" colspan="1" rowspan="1" >
<p align="center">
Remaining term of the lease</p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">Depreciation expense was $0 for the years ended April
30, 2007 and 2006, respectively.</p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Intangible
Assets</u></b></p>
<p style="margin-left:80">Intangible assets represent costs incurred for patent
applications. The costs incurred were valued at the fair value of the stock at
the time of issuance.  The Company will establish its estimated useful life upon
approval of the application, which will begin the period of amortization of its
cost.  The Company will estimate the fair value of this asset annually. </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 consolidated 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 consolidated financial statements and the
reported amounts of revenues and expenses during the reporting period.  Actual
results could differ from those estimates. </p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Net
Loss Per Share</u></b></p>
<p style="margin-left:80">Historical net loss per common share is computed using
the weighted average number of common shares outstanding. Diluted earnings per
share (EPS) include additional dilution from common stock equivalents, such as
stock issuable pursuant to the exercise of stock options and warrants. Common
stock equivalents were not included in the computation of diluted earnings per
share when the Company reported a loss because to do so would be antidilutive
for periods presented.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-7</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 2-  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
The following is a reconciliation of the computation for basic and diluted
EPS:</p>
<div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<b>April 30,</b></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<b>&nbsp;</b></p align="center">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<b>April 30,</b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2007</b></font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<b>&nbsp;</b></p align="center">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3"><b>2006</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
Net loss</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
&nbsp;$</p align="right">
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:double">
<font size="3"> (170,058)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
&nbsp;$</p align="right">
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:double">
<font size="3"> (303,718)</font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="238.666607" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p>
Weighted-average common shares</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
outstanding (basic)</p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
20,459,726&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
16,824,658&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="238.666607" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p>
Weighted-average common stock</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
Equivalents</p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options</p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
- -&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
- -&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants</p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="73.333315" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="238.666607" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p>
Weighted-average common shares</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
outstanding (diluted)</p>
</td>
<td width="90.666644" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="29.333326" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="107.999973" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">20,459,726&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="101.333308" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">16,824,658&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">Options and warrants outstanding to purchase stock
were not included in the computation of diluted EPS for April 30, 2007 and 2006
because inclusion would have been antidilutive.  </p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Cash
and Cash Equivalents</u></b></p>
<p style="margin-left:80">For purposes of the consolidated statements of cash
flow, the Company considers all highly liquid debt instruments purchased with a
maturity of six months or less, unless restricted as to use, to be cash
equivalents. At various times throughout the years the Company had amounts on
deposit at financial institutions in excess of federally insured limits.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-8</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Income
Taxes</u></b></p>
<p style="margin-left:80">The Company has adopted the provisions of Statement of
Financial Accounting Standards No. 109 (the Statement), Accounting for Income
Taxes. The Statement requires an asset and liability approach for financial
accounting and reporting for income taxes, and the recognition of deferred tax
assets and liabilities for the temporary differences between the financial
reporting bases and tax bases of the Company&#8217;s assets and liabilities at
enacted tax rates expected to be in effect when such amounts are realized or
settled.</p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Fair
Value of Financial Instruments</u></b></p>
<p style="margin-left:80">The carrying amounts of the Company&#8217;s financial
instruments, including cash and cash equivalents, accounts payable, and accrued
expenses, officer loans payable approximate fair values because of the short
maturities of these instruments.</p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Stock-Based
Compensation</u></b></p>
<p style="margin-left:80">Employee stock awards under the Company&#8217;s
compensation plans are accounted for  in accordance  with Accounting  Principles
Board  Opinion No. 25 ("APB 25"), "Accounting for Stock Issued to Employees",
and related interpretations. The Company provides the disclosure requirements of
Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation" ("FAS 123"), and related interpretations. Stock-based awards to
non-employees are accounted for under the provisions of FAS 123 and has adopted
the enhanced disclosure provisions of FAS No. 148 "Accounting for Stock-Based
Compensation- Transition and Disclosure, an amendment of FAS No. 123".</p><p>
</p>
<p style="margin-left:80">The Company measures compensation expense for its
employee stock-based compensation using the intrinsic-value method. Under the
intrinsic-value method of accounting for stock-based compensation, when the
exercise price of options granted to employees is less than the estimated fair
value of the underlying stock on the date of grant, deferred compensation is
recognized and is amortized to compensation expense over the applicable vesting
period. In each of the periods presented, the vesting period was the period in
which the options were granted. </p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-9</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Stock-Based
Compensation</u> (Continued)</b></p>
<p style="margin-left:80">The Company measures compensation expense for its
non-employee stock-based compensation under the Financial Accounting Standards
Board (FASB) Emerging Issues Task Force (EITF) Issue No. 96-18, "Accounting for
Equity Instruments that are Issued to Other Than Employees for Acquiring, or in
Conjunction with Selling, Goods or Services". The fair value of the option
issued is used to measure the transaction, as this is more reliable than the
fair value of the services received. The fair value is measured at the value of
the Company&#8217;s common stock on the date that the commitment for performance
by the counterparty has been reached or the counterparty&#8217;s performance is
complete. The fair value of the equity instrument is charged directly to
compensation expense and additional paid-in 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>Recent
Accounting Pronouncements</u></b></p>
<p style="margin-left:80">Statement of Financial Accounting Standards No. 123
(Revised 2004), "Share-Based Payment" ("SFAS 123R").  SFAS 123R requires that
compensation cost related to share-based payment transactions be recognized in
the financial statements. Share-based payment transactions within the scope of
SFAS 123R include stock options, restricted stock plans, performance-based
awards, stock appreciation rights, and employee share purchase plans.  The
provisions of SFAS 123R, as amended, are effective for small business issuers
beginning as of the next fiscal year after December 15, 2005.  Accordingly, the
Company has implemented the revised standard in the first quarter of fiscal year
2007.  </p><p>
</p>
<p style="margin-left:80">In May&nbsp;2005, the FASB issued SFAS No.&nbsp;154,
"Accounting Changes and Error Corrections." SFAS No.&nbsp;154 replaces
Accounting Principles Board ("APB") Opinion No.&nbsp;20, "Accounting Changes"
and SFAS No.&nbsp;3, "Reporting Accounting Changes in Interim Financial
Statements." SFAS No.&nbsp;154 requires retrospective application to prior
periods&#8217; financial statements of a voluntary change in accounting
principle unless it is impracticable. APB No.&nbsp;20 previously required that
most voluntary changes in accounting principle be recognized by including the
cumulative effect of changing to the new accounting principle in net income in
the period of the change. SFAS No.&nbsp;154 is effective for accounting changes
and corrections of errors made in fiscal years beginning after December&nbsp;15,
2005. The adoption of SFAS No.&nbsp;154 did not have a material impact on the
Company&#8217;s financial position, results of operations, or cash flows.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-10</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 2-  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</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> <b>(Continued)</b></p>
<p style="margin-left:80">In May&nbsp;2005, the FASB issued SFAS No.&nbsp;154,
"Accounting Changes and Error Corrections." SFAS No.&nbsp;154 replaces
Accounting Principles Board ("APB") Opinion No.&nbsp;20, "Accounting Changes"
and SFAS No.&nbsp;3, "Reporting Accounting Changes in Interim Financial
Statements." SFAS No.&nbsp;154 requires retrospective application to prior
periods&#8217; financial statements of a voluntary change in accounting
principle unless it is impracticable. APB No.&nbsp;20 previously required that
most voluntary changes in accounting principle be recognized by including the
cumulative effect of changing to the new accounting principle in net income in
the period of the change. SFAS No.&nbsp;154 is effective for accounting changes
and corrections of errors made in fiscal years beginning after December&nbsp;15,
2005. The adoption of SFAS No.&nbsp;154 did not have a material impact on the
Company&#8217;s financial position, results of operations, or cash flows.</p><p>
</p>
<p style="margin-left:80">In February&nbsp;2006, the FASB issued SFAS
No.&nbsp;155, "Accounting for Certain Hybrid Financial Instruments, an amendment
of FASB Statements No.&nbsp;133 and 140." SFAS No.&nbsp;155 resolves issues
addressed in SFAS No.&nbsp;133 Implementation Issue No.&nbsp;D1, "Application of
Statement 133 to Beneficial Interests in Securitized Financial Assets," 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 adoption of FAS 155 is not anticipated to have a material impact on
the Company&#8217;s financial position, results of operations, or cash
flows.<br><br><br><br><br><br></p><div align="center" color="#000080" style="position:relative; left: -5"><b>F-11</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p style="margin-left:80"></p><p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 2-  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</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> <b>(Continued)</b></p>
<p style="margin-left:80">In February&nbsp;2006, the FASB issued SFAS
No.&nbsp;155, "Accounting for Certain Hybrid Financial Instruments, an amendment
of FASB Statements No.&nbsp;133 and 140." SFAS No.&nbsp;155 resolves issues
addressed in SFAS No.&nbsp;133 Implementation Issue No.&nbsp;D1, "Application of
Statement 133 to Beneficial Interests in Securitized Financial Assets," 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 adoption of FAS 155 is not anticipated to have a material impact on
the Company&#8217;s financial position, results of operations, or cash
flows.</p><p>
</p>
<p style="margin-left:80">In March&nbsp;2006, the FASB issued SFAS No.&nbsp;156,
"Accounting for Servicing of Financial Assets, an amendment of FASB Statement
No.&nbsp;140." 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,
"Accounting for Certain Investments in Debt and Equity Securities" 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.<br><br><br><br><br><br><br></p><div align="center" color="#000080" style="position:relative; left: -5"><b>F-12</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p style="margin-left:80"></p><p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 2-  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent
Accounting Pronouncements</u> (Continued)</b></p>
<p style="margin-left:80">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 adoption of FAS 156 is not anticipated to have a
material impact on the Company&#8217;s financial position or results of
operations.</p><p>
</p>
<p style="margin-left:80">In September 2006, The Financial Accounting Standards
Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No.
157, "Fair Value Measurement" ("SFAS No. 157"). This standard provides guidance
for using fair value to measure assets and liabilities. SFAS No. 157 applies
whenever other standards require (or permit) assets or liabilities to be
measured at fair value but does not expand the use of fair value in any new
circumstances. Prior to SFAS No. 157, the methods for measuring fair value were
diverse and inconsistent, especially for items that are not actively traded. The
standard clarifies that for items that are not actively traded, such as certain
kinds of derivatives, fair value should reflect the price in a transaction with
a market participant, including an adjustment for risk, not just the
company&#8217;s mark-to-model value. SFAS No. 157 also requires expanded
disclosure of the effect on earnings for items measured using unobservable data.
SFAS No. 157 is effective for financial statements issued for fiscal years
beginning after November 15, 2007, and interim periods within those fiscal
years. The Company is currently evaluating the impact of this statement on its
financial statements and expects to adopt SFAS No.157 on December 31,
2007.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-13</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 2-  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES </u>(CONTINUED)</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent
Accounting Pronouncements</u> (Continued)</b></p>
<p style="margin-left:80">In September 2006, the FASB issued SFAS No. 158,
"Employers&#8217; Accounting for Defined Benefit Pension and Other
Postretirement Plans -- An Amendment of FASB Statements No. 87, 88, 106, and
132R."  This standard requires an employer to: (a) recognize in its statement of
financial position an asset for a plan&#8217;s overfunded status or a liability
for a plan&#8217;s underfunded status; (b) measure a plan&#8217;s assets and its
obligations that determine its funded status as of the end of the
employer&#8217;s fiscal year (with limited exceptions); and (c) recognize
changes in the funded status of a defined benefit postretirement plan in the
year in which the changes occur. Those changes will be reported in comprehensive
income. The requirement to recognize the funded status of a benefit plan and the
disclosure requirements are effective as of the end of the fiscal year ending
after December 15, 2006. The requirement to measure plan assets and benefit
obligations as of the date of the employer&#8217;s fiscal year-end statement of
financial position is effective for fiscal years ending after December  15,
2008. The Company is evaluating the impact of this statement on its financial
statements and believes that such impact may be material.</p><p>
<p>
<b>NOTE 3-</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>COMMITMENTS AND
CONTINGENCIES</u></b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Operating
leases</u></b></p>
<p style="margin-left:80">The Company lease, as tenant, restaurant space under
an operating lease, which expired June 30, 2005 and was not renewed. The lease
escalated for increases in the landlord&#8217;s expenses for increases in the
Consumer Price Index, and required additional rentals based on a percentage of
restaurant sales over a defined amount. The lease granted the Company certain
concessions, which were amortized to lease expense over the term of the
lease.</p><p>
</p>
<p style="margin-left:80">Rental expense during the year ended April 30, 2007
and 2006 was $420 and $43,132, respectively.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-14</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 4-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>MARRIOTT LICENSE</u></b></p>
<p style="margin-left:80">The Company was an exclusive supplier of sports
memorabilia and a consultant to all new Champions Sports Bars located in
Marriott and Renaissance Hotels worldwide. This agreement was terminated by
Marriott effective May 28, 2005. </p><p>
<p>
<b>NOTE 5-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>OTHER ACCRUED EXPENSES</u></b></p>
<p style="margin-left:80">This account represents accrued officer&#8217;s
payroll and related payroll taxes. </p><p>
<p>
<b>NOTE 6- &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>OFFICER LOANS PAYABLE</u></b></p>
<p style="margin-left:80">For the year ended April 30, 2007, the Company
received working capital advances from an officer of the Company which are due
on demand without interest.  </p><p>
<p>
<b>NOTE 7-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCKHOLDERS&#8217; DEFICIT</u>
</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Common
Stock</u> </b></p>
<p style="margin-left:80">The Company has 50,000,000 shares authorized and
27,624,658 shares issued and outstanding at April 30, 2007.</p><p>
</p>
<p style="margin-left:80">There were 10,800,000 shares of common stock issued
during the year ended April 30, 2007 and 0 in 2006.</p><p>
</p>
<p style="margin-left:80">During the year ended April 30, 2007, the Company
issued 9,500,000 shares of restricted stock for cash of $38,000.</p><p>
</p>
<p style="margin-left:80">In October 2006, the Company issued 1,000,000 shares
of common stock, a five-year warrant to purchase up to 500,000 shares of common
stock at an exercise price of $0.15 per share, and a five-year warrant to
purchase up to 500,000 shares of common stock at an exercise price of $0.25 per
share in exchange for the cancellation of all the $32,450 shares of preferred
stock outstanding and the waiver of all accrued and unpaid dividends on such
shares which totaled $350,460. </p><p>
</p>
<p style="margin-left:80">On February 14, 2007 the Company acquired all of the
patent rights underlying a pending U.S. Patent Application. The purchase price
for the patent rights consisted of an aggregate of up 550,000 restricted shares
of common stock, of which 300,000 were issued to four individuals upon execution
of the acquisition agreement and 250,000 restricted shares are </p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-15</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 7-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STOCKHOLDERS&#8217; DEFICIT
(CONTINUED)</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Common
Stock</u> (Continued) </b></p>
<p style="margin-left:80">issuable upon the issuance of the patent based on the
U.S. Patent Application.</p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Preferred
Stock </u></b></p>
<p style="margin-left:80">The Company has 56,075 shares of preferred stock
authorized and 0 shares issued and outstanding at April 30, 2007. </p><p>
</p>
<p style="margin-left:80">There were no issuances of preferred stock during the
year ended April 30, 2007.  The 32,450 shares as of July&nbsp;31, 2006 were
cancelled in October 2006.</p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Stock
Options</u></b></p>
<p style="margin-left:80">On January 15, 2007, the Company entered into various
agreements with consultants to issue three hundred and forty thousand options,
exercisable over a five year period based on a fair value exercise price on the
date of issuance ($0.17) exercisable expiring through January 15, 2012 for
services to be rendered in one year. The options vest on January 15, 2008 and
have been valued at $44,184 using the Black-Scholes Model with an annualized
volatility rate of 100% and a bond interest rate of 4.43%. Amortization expense
for services rendered was $11,046 for the year ended April 30, 2007.</p><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Warrants</u></b></p>
<p style="margin-left:80">As noted above, in October 2006, the Company issued
1,000,000 shares of common stock, a five-year warrant to purchase up to 500,000
shares of common stock at an exercise price of $0.15 per share, and a five-year
warrant to purchase up to 500,000 shares of common stock at an exercise price of
$0.25 per share in exchange for the cancellation of all the 32,450 shares of
preferred stock outstanding and the waiver of all accrued and unpaid dividends
on such shares which totaled $350,460.  The warrants were valued using the
Black-Scholes pricing model  using the following assumptions: interest rate
4.43%, dividend yield 0%, volatility 100% and expected life of five years.
</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-16</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 7-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STOCKHOLDERS&#8217; DEFICIT
(CONTINUED)</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Warrants</u>
(Continued)</b></p>
<p style="margin-left:80">The Company has the following warrants outstanding for
the purchase of its common
stock:<br><br></p><div align="center" style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="135.999966" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
Year Ended April 30,</p align="center">
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
Exercise Price</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
Expiration Date</p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">2007</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
&nbsp;</p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
&nbsp;</p align="center">
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
$0.15</p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
January 15, 2012</p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
500,000</p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
$0.25</p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
January 15, 2012</p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
500,000</p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p style="border-bottom:solid windowtext .5pt">
<font size="3">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">  1,000,000</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="173.333290" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="42.666656" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
<tr valign="top">
<td width="114.666638" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
<td width="234.666608" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p>
Weighted Average exercise price</p>
</td>
<td width="99.999975" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:double">
<font size="3">$0.20</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
&nbsp;</p>
</td>
</tr>
</table></div>
<p style="margin-left:80"><br>As of April 30, 2007, none of the warrants are
exercisable.</p><p>
</p>
<p style="margin-left:80">There were no warrants outstanding for the year ended
April 30, 2006.</p><p>
<b>NOTE 8-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>GOING CONCERN</u></b></p>
<p style="margin-left:80">As shown in the accompanying condensed consolidated
financial statements, the Company has sustained net operating losses for the
years ended April 30, 2007 and 2006 and has sustained large accumulated deficits
that raise substantial doubt about its ability to continue as a going
concern.</p><p>
</p>
<p style="margin-left:80">The Company&#8217;s future success is dependent upon
its ability to achieve profitable operations and generate cash from operating
activities, and upon additional financing. There is no guarantee that the
Company will &nbsp;&nbsp;be able to raise enough capital or generate revenues to
sustain its operations. </p><p>
</p>
<p style="margin-left:80">The consolidated financial statements do not include
any adjustments that might result from the outcome of this uncertainty.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-17</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)</b><br><b>APRIL 30, 2007 AND 2006 </b><p>
<b>NOTE 9-&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
consolidated 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 April 30, 2007 and 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="202.666616" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="53.333320" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="75.999981" colspan="1" rowspan="1" >
<p align="center">
<u>2007</u></p align="center">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
&nbsp;</p>
</td>
<td width="85.333312" colspan="1" rowspan="1" >
<p align="center">
<u>2006</u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="202.666616" colspan="1" rowspan="1" >
<p>
Deferred tax asset </p>
</td>
<td width="53.333320" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="75.999981" colspan="1" rowspan="1" >
<p align="right">
2,467,155&nbsp;</p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="85.333312" colspan="1" rowspan="1" >
<p align="right">
2,426,965&nbsp;</p align="right">
</td>
</tr>
<tr valign="top">
<td width="202.666616" colspan="1" rowspan="1" >
<p>
Less:  valuation allowance</p>
</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="75.999981" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3">(2,467,155)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
&nbsp;&nbsp;</p>
</td>
<td width="85.333312" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (2,426,965)</font></p>
</td>
</tr>
<tr valign="top">
<td width="202.666616" colspan="1" rowspan="1" >
<p>
Net deferred tax asset</p>
</td>
<td width="53.333320" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="75.999981" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-0-&nbsp;</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="85.333312" 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 April 30, 2007 and 2006, the Company had federal
net operating loss carryforwards in the approximate amounts of $7,049,015 and
$6,934,187 available to offset future taxable income. The Company established
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 10- &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>DISPOSAL OF BUSINESS</u></b></p>
<p style="margin-left:80">On June 23, 2005, the Company ceased operations for
its only sports bar located in San Antonio, Texas.  Fixed assets with a net book
value of $152,520 were sold for $10,000 and inventory consisting of primarily
restaurant food and beverage was sold for $3,200.  The Company&#8217;s
consolidated financial statements have been reclassified to reflect this sale as
discontinued operations, for all periods presented. Summarized operating results
of discontinued operations are as follows:</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>F-18</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b><br><b>FORMERLY CHAMPIONS SPORTS, INC. AND
SUBSIDIARIES</b><br><b>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(CONTINUED)</b><br><b>APRIL 30, 2007 AND 2006</b><p>
<b>NOTE 10- &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>DISPOSAL OF BUSINESS</u>
(CONTINUED)</b></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center">
April 30,</p align="center">
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="center">
April 30,</p align="center">
</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">2007</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="3">2006</font></p>
</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="97.333309" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
<p>
Revenues</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">274,626&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
<p>
Net loss before income taxes</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">(159,601)</font></p>
</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
<p>
Provision for taxes</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
<p>
Net loss</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (159,601)</font></p>
</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
<p>
Net loss per share</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.01)</font></p>
</td>
</tr>
<tr valign="top">
<td width="239.999940" colspan="1" rowspan="1" >
<p>
Diluted loss per share</p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3">-&nbsp;</font></p>
</td>
<td width="41.333323" colspan="1" rowspan="1" >
<p align="right">
$</p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3"> (0.01)</font></p>
</td>
</tr>
</table></div>
<p>
<p>
<b>NOTE 11-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUBSEQUENT EVENT</u> </b></p>
<p style="margin-left:80">On May 18, 2007, the Registrant entered into an
Agreement and Plan of Merger with Biomerk, Inc., a privately owned company.
Biomerk, Inc. 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 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>F-19</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>SIGNATURES</b></font><p>
<font size="2">In accordance with Section 13 or 15(d) of the Exchange Act, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="281.333263" colspan="2" rowspan="1" >
<p>
<font size="2">CHAMPIONS BIOTECHNOLOGY, INC.</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="733.333150" colspan="4" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">/s/ James M. Martell</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">James M. Martell</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Chairman, President, CEO and CFO</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Date: August 13, 2007</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<p>
<font size="2">In accordance with the Exchange Act, this report has been signed
below by the following persons on behalf of the registrant and in the capacities
and on the dates indicated.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">/s/Durwood C. Settles</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">Durwood C. Settles</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">Treasurer, Director</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">Date: August 13, 2007</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">/s/ Manuel Hidalgo</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Manuel Hidalgo</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Director</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Date: August 13, 2007</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">/s/ David Sidransky</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">David Sidransky </font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Director</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Date: August 13, 2007</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">Michael M. Tomic</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Michael M. Tomic </font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Director </font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Date: August 13, 2007</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>38</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>CERTIFICATION OF CHIEF EXECUTIVE
OFFICER</b></font><p align="center">
<font size="2"><b>Section 302 Certification</b></font><p>
<font size="2">I, JAMES M. MARTELL, certify that:</font><p>
<font size="2">(1) I have reviewed this annual report on Form 10-KSB of
CHAMPIONS BIOTECHNOLOGY, INC., a Delaware corporation (the
"registrant");</font><p>
<font size="2">(2) Based on my  knowledge,  this annual  report does not contain
any untrue  statement  of a material  fact or omit to state a material fact
necessary  to  make  the  statements   made,  in  light  of  the circumstances
under which such  statements  were made, not misleading with respect to the
period covered by this annual report;</font><p>
<font size="2">(3) Based on my knowledge,  the financial  statements,  and other
financial  information included in this annual report,  fairly present in  all
material  respects  the  financial   condition,   results  of operations  and
cash  flows of the  registrant  as of,  and for,  the periods presented in this
annual report;</font><p>
<font size="2">(4) The  registrant&#8217;s  other  certifying   officers  and  I
are responsible for establishing and maintaining  disclosure  controls and
procedures  (as defined in Exchange  Act Rules  13a-14 and 15d-14) for the
registrant and have:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designed
such  disclosure  controls and  procedures  to ensure that  material
information  relating  to the  registrant, including its consolidated
subsidiaries,  is made known to us by others within those entities,
particularly  during the period in which this annual report is being
prepared;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Evaluated
the   effectiveness   of  the   registrant&#8217;s disclosure  controls and
procedures  as of a date within 90 days prior to the filing date of this annual
report (the  "Evaluation Date");  and (c) Presented in this annual report our
conclusions about the effectiveness of the disclosure controls and procedures
based  on our  evaluation  as of the  Evaluation  Date;</font><p>
<font size="2">(5) The registrant&#8217;s  other certifying  officers and I have
disclosed, based on our most recent evaluation,  to the registrant&#8217;s
auditors and the registrant&#8217;s  board of  directors  (or persons
performing  the  equivalent functions):</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
significant  deficiencies in the design or operation of   internal   controls
which  could   adversely   affect  the registrant&#8217;s  ability to record,
process,  summarize  and report financial data and have identified for the
registrant&#8217;s  auditors any material weaknesses in internal controls;
and</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
fraud,  whether  or not  material,  that  involves management or other employees
who have a significant  role in the registrant&#8217;s internal controls;
and</font><p>
<font size="2">(6) The registrant&#8217;s other certifying officers and I have
indicated in this annual  10-KSB  report  whether  there were  significant
changes in internal controls  or in other  factors  that could  significantly
affect  internal controls  subsequent to the date of our most recent
evaluation,  including any corrective actions with regard to significant
deficiencies and material weaknesses.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
<font size="2">Date:&nbsp;&nbsp;August 13, 2007</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="155.999961" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="155.999961" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="155.999961" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">/s/ James M. Martell</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="155.999961" colspan="1" rowspan="1" >
<p>
<font size="2">James M. Martell</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="155.999961" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Executive Officer</font></p>
</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>39</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>CERTIFICATION OF CHIEF FINANCIAL
OFFICER</b></font><p align="center">
<font size="2"><b>Section 302 Certification</b></font><p>
<font size="2">I, JAMES M. MARTELL, certify that:</font><p>
<font size="2">(1)&nbsp;I have reviewed this annual report on Form 10-KSB of
CHAMPIONS BIOTECHNOLOGY, INC., a Delaware corporation (the
"registrant");</font><p>
<font size="2">(2)&nbsp;Based on my  knowledge,  this  annual  report does not
contain any untrue  statement  of a  material  fact or omit to  state a
material  fact necessary to make the statements made, in light of the
circumstances  under which such  statements were made, not misleading with
respect to the period covered by this annual report;</font><p>
<font size="2">(3)&nbsp;Based  on my  knowledge,  the  financial  statements,
and  other financial information included in this annual report, fairly present
in all material respects the financial  condition,  results of operations and
cash flows of the  registrant  as of, and for,  the  periods  presented  in this
annual report;</font><p>
<font size="2">(4)&nbsp;The registrant&#8217;s  other certifying  officers and I
are responsible for  establishing  and maintaining  disclosure  controls and
procedures (as defined in Exchange  Act Rules  13a-14 and 15d-14) for the
registrant  and have:</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designed
such  disclosure  controls and  procedures  to ensure that  material
information  relating  to the  registrant, including its consolidated
subsidiaries,  is made known to us by others within those entities,
particularly  during the period in which this annual report is being
prepared;</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Evaluated
the   effectiveness   of  the   registrant&#8217;s disclosure  controls and
procedures  as of a date within 90 days prior to the filing date of this annual
report (the  "Evaluation Date"); and</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Presented
in this annual report our conclusions about the effectiveness of the disclosure
controls and procedures based on our evaluation as of the Evaluation
Date;</font><p>
<font size="2">(5)&nbsp;The registrant&#8217;s  other certifying  officers and I
have disclosed, based on our most recent evaluation,  to the registrant&#8217;s
auditors and the registrant&#8217;s  board of  directors  (or persons
performing  the  equivalent function):  (a) all significant  deficiencies in the
design or operation of internal controls which could adversely affect the
registrant&#8217;s  ability to record,  process,  summarize and report
financial data and have identified for the registrant&#8217;s auditors any
material weaknesses in internal controls; and (b) any fraud,  whether or not
material,  that  involves  management or other employees who have a significant
role in the  registrant&#8217;s  internal controls; and</font><p>
<font size="2">(6)&nbsp;The registrant&#8217;s other certifying officers and I
have indicated in this  annual  10-KSB report  whether  there were  significant
changes in internal controls  or in other  factors  that could  significantly
affect  internal controls  subsequent to the date of our most recent
evaluation,  including any corrective actions with regard to significant
deficiencies and material weaknesses.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
<font size="2">Date:&nbsp;&nbsp;August 13, 2007</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="173.333290" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="54.666653" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="173.333290" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="54.666653" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="173.333290" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">/s/ James M. Martell</font></p>
</td>
<td width="54.666653" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="173.333290" colspan="1" rowspan="1" >
<p>
<font size="2">James M. Martell</font></p>
</td>
<td width="54.666653" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="173.333290" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Financial Officer</font></p>
</td>
<td width="54.666653" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="173.333290" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="54.666653" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>40</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>CERTIFICATION PURSUANT TO 18 U.S.C.  SECTION 1350 AS ADOPTED
PURSUANT TO</b></font><br><font size="2"><b>SECTION 906 OF THE SARBANES-OXLEY
ACT OF 2002.</b></font><p>
<font size="2">In connection with the annual report of Champions Biotechnology,
Inc. (the "Company") on Form 10-KSB for the year ended April 30, 2007 as filed
with the Securities and Exchange  Commission on the date hereof (the  "Report"),
each of the  undersigned,  in the  capacities  and on the  dates  indicated
below,  hereby  certifies  pursuant to 18 U.S.C.  Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to their
knowledge:</font><p>
<font size="2">1. The Report fully complies with the requirements of Section
13(a) or 15(d) of the Securities Exchange Act of 1934; and</font><p>
<font size="2">2. The information contained in the Report fairly presents, in
all material respects,   the financial condition and results of operation of the
Company.</font></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
<p>
<font size="2">Date: August 13, 2007</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="173.333290" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="54.666653" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="173.333290" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="54.666653" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">By:</font></p>
</td>
<td width="173.333290" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">/s/ James M. Martell</font></p>
</td>
<td width="54.666653" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="173.333290" colspan="1" rowspan="1" >
<p>
<font size="2">James M. Martell</font></p>
</td>
<td width="54.666653" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="173.333290" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Executive Officer and</font></p>
</td>
<td width="54.666653" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="467.999883" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="173.333290" colspan="1" rowspan="1" >
<p>
<font size="2">Chief Financial Officer</font></p>
</td>
<td width="54.666653" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>41</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>


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