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<SEC-DOCUMENT>0001297077-07-000038.txt : 20070913
<SEC-HEADER>0001297077-07-000038.hdr.sgml : 20070913
<ACCEPTANCE-DATETIME>20070913151803
ACCESSION NUMBER:		0001297077-07-000038
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070731
FILED AS OF DATE:		20070913
DATE AS OF CHANGE:		20070913

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:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17263
		FILM NUMBER:		071115442

	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>10QSB
<SEQUENCE>1
<FILENAME>cbi10q-07312007final091307.htm
<TEXT>
<html>
<head><meta content="text/html; charset=">
<title>SECURITIES AND EXCHANGE COMMISSION</title>
</head>

<body >
<ul>
</ul>

<p>
<p align="center">
<b>SECURITIES AND EXCHANGE
COMMISSION</b><font size="2"><b></b></font><br><font size="2"><b>Washington,
D.C.  20549</b></font><p align="center">
<b>FORM 10-QSB</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="1" rowspan="1" >
<p>
<font size="2">Mark One</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="29.333326" colspan="1" rowspan="1" >
<p>
<font size="2">[X]</font></p>
</td>
<td width="485.333212" colspan="1" rowspan="1" >
<p>
<font size="2">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF</font></p>
</td>
</tr>
<tr valign="top">
<td width="29.333326" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" 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"><u>For the quarterly period ended   July 31,
2007</u></font><p align="center">
<font size="2">OR</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="31.999992" colspan="1" rowspan="1" >
<p>
<font size="2">[&nbsp;&nbsp;&nbsp;]</font></p>
</td>
<td width="487.999878" 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="31.999992" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="487.999878" 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&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;&nbsp;&nbsp;to&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;</font><p align="center">
<font size="2">Commission file number
<u>&nbsp;0-17263</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="245.333272" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>Delaware</u></font></p align="center">
</td>
<td width="250.666604" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>52-1401755</u></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="245.333272" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(State or other jurisdiction of</font></p align="center">
</td>
<td width="250.666604" 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="245.333272" colspan="1" rowspan="1" >
<p align="center">
<font size="2">organization)</font></p align="center">
</td>
<td width="250.666604" 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)</font><br><font size="2">(Zip code)</font><p align="center">
<font size="2"><u>(703) 526-0400</u></font><br><font size="2">(Registrant's
telephone number, including area code)</font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indicate by check mark
whether the issuer (1) has filed all reports required to be filed by Section 13
or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days.  Yes  <u>&nbsp;x    </u>&nbsp;&nbsp;No  <u>&nbsp;
</u>&nbsp;&nbsp;</font><p>
<font size="2">Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act.) Yes __   No  <u>&nbsp;&nbsp;x
</u>&nbsp;&nbsp;</font><p>
<font size="2">As of September 10, 2007 the Registrant had a total of 31,624,658
shares of common stock outstanding.</font><p>
<font size="2">Transitional Small Business Disclosure Format (check one):
&nbsp;&nbsp;Yes <u>&nbsp;x  &nbsp;</u> No
<u>&nbsp;&nbsp;&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>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY,
INC.</b></font><br><font size="2"><b>FORM 10-QSB</b></font><p align="center">
<font size="2"><u>INDEX</u></font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><u>Page</u></font></p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
<p>
<font size="2">Part I. </font></p>
</td>
<td width="499.999875" colspan="1" rowspan="1" >
<p>
<font size="2">Financial Information</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="619.999845" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" >
<p>
<font size="2">Item 1.&nbsp;&nbsp;&nbsp;Financial Statements</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="619.999845" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Condensed Consolidated
Balance Sheet as of July 31, 2007 (Unaudited)</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p>
<font size="2">5</font></p>
</td>
</tr>
<tr valign="top">
<td width="619.999845" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Condensed Consolidated
Statements of Operations</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for the three months
ended July 31, 2007 and  2006 (Unaudited)</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">6</font></p>
</td>
</tr>
<tr valign="top">
<td width="619.999845" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Condensed Consolidated
Statements of Cash Flows for the</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;three months ended July
31, 2007 and  2006 (Unaudited)</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">7</font></p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes to Condensed
Consolidated Financial Statements (Unaudited)</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">8-16</font></p>
</td>
</tr>
<tr valign="top">
<td width="619.999845" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Item 2.&nbsp;&nbsp;&nbsp;Management's Discussion and Analysis or
Plan of Operation</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">17-19</font></p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="619.999845" colspan="3" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" >
<p>
<font size="2">Item 3.&nbsp;&nbsp;&nbsp;Controls and Procedures</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p>
<font size="2">19-20</font></p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
<p>
<font size="2">Part II.</font></p>
</td>
<td width="499.999875" colspan="1" rowspan="1" >
<p>
<font size="2">Other Information and Signatures</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Item 1.   Legal Proceedings</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">20</font></p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" >
<p>
<font size="2">Item 2.   Unregistered Sales of Equity Securities and Use of
Proceeds </font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p>
<font size="2">20</font></p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Item 3.   Defaults Upon Senior Securities</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">20</font></p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" >
<p>
<font size="2">Item 4.&nbsp;&nbsp;&nbsp;Submission of Matters to a Vote of
Security Holders</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p>
<font size="2">20</font></p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Item 5.   Other Information</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">20</font></p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" >
<p>
<font size="2">Item 6.&nbsp;&nbsp;&nbsp;Exhibits </font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p>
<font size="2">20</font></p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Signatures</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">21</font></p>
</td>
</tr>
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="554.666528" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">22</font></p>
</td>
</tr>
<tr valign="top">
<td width="554.666528" colspan="2" rowspan="1" >
<p>
<font size="2">Certification Pursuant to Section 302 of the Sarbanes-Oxley Act
of 2002</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" >
<p>
<font size="2">23</font></p>
</td>
</tr>
<tr valign="top">
<td width="554.666528" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Certification Pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">24</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>&nbsp;	<p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES </b><br><b>(FORMERLY CHAMPIONS
SPORTS, INC. AND SUBSIDIARIES)</b><br><b>CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS</b><br><b>JULY 31, 2007 AND 2006 (UNAUDITED)</b></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>3</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p align="center">
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b><br><b>(FORMERLY CHAMPIONS
SPORTS, INC. AND SUBSIDIARIES)</b><br><b>INDEX TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</b><br><b>JULY 31, 2007 AND 2006 (UNAUDITED)</b></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="545.333197" colspan="3" rowspan="1" >
<p>
<font size="2">CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:</font></p>
</td>
</tr>
<tr valign="top">
<td width="545.333197" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="545.333197" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="509.333206" colspan="2" rowspan="1" >
<p>
<font size="2">Condensed Consolidated Balance Sheet as of July 31, 2007
(Unaudited) </font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">5</font></p>
</td>
</tr>
<tr valign="top">
<td width="545.333197" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="545.333197" colspan="3" rowspan="1" >
<p>
<font size="2">Condensed Consolidated Statements of Operations for the Three
months </font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="485.333212" colspan="1" rowspan="1" >
<p>
<font size="2">ended July 31, 2007 and 2006 (Unaudited)    </font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">6</font></p>
</td>
</tr>
<tr valign="top">
<td width="545.333197" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="545.333197" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="545.333197" colspan="3" rowspan="1" >
<p>
<font size="2">Condensed Consolidated Statements of Cash Flows for the Three
months ended</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
<p>
<font size="2"> </font></p>
</td>
<td width="485.333212" colspan="1" rowspan="1" >
<p>
<font size="2">July 31, 2007 and 2006 (Unaudited)       </font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">7</font></p>
</td>
</tr>
<tr valign="top">
<td width="545.333197" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="545.333197" colspan="3" rowspan="1" >
<p>
<font size="2">  </font></p>
</td>
</tr>
<tr valign="top">
<td width="545.333197" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="509.333206" colspan="2" rowspan="1" >
<p>
<font size="2">Notes to Condensed Consolidated Financial Statements (Unaudited)
</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">8-16</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>4</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES </b><br><b>(FORMERLY CHAMPIONS
SPORTS, INC. AND SUBSIDIARIES)</b><br><b>CONDENSED CONSOLIDATED BALANCE
SHEET</b><br><b>AS OF JULY 31, 2007 (UNAUDITED)</b></p align="center">
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="493.333210" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>ASSETS</b></font></p align="center">
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="439.999890" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="493.333210" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>CURRENT ASSETS</b></font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="467.999883" colspan="2" rowspan="1" >
<p>
<font size="2">Cash and cash equivalents</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">$</font></p>
</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">507,025&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="439.999890" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="439.999890" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Total Current Assets</b></font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right">
<font size="2">507,025&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="439.999890" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="467.999883" colspan="2" rowspan="1" >
<p>
<font size="2">Intangibles assets</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right">
<font size="2">180,000&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="467.999883" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Goodwill</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">661,909&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="439.999890" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="493.333210" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>TOTAL ASSETS</b></font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">1,348,934&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="439.999890" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="493.333210" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>LIABILITIES AND STOCKHOLDERS'
EQUITY</b></font></p align="center">
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="439.999890" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="493.333210" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>CURRENT LIABILITIES</b></font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="467.999883" colspan="2" rowspan="1" >
<p>
<font size="2">Accounts payable</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">$</font></p>
</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right">
<font size="2">63,199&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="467.999883" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Other accrued expenses</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">351,394&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="439.999890" colspan="1" rowspan="1" >
<p>
<font size="2"><b>Total current liabilities</b></font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">414,593&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="439.999890" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="493.333210" colspan="3" rowspan="1" >
<p>
<font size="2"><b>COMMITMENTS AND CONTINGENCIES</b></font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="439.999890" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="493.333210" colspan="3" rowspan="1" >
<p>
<font size="2"><b>STOCKHOLDERS' EQUITY</b></font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="467.999883" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Common stock, $.001 par value; 50,000,000 shares
authorized;</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="467.999883" colspan="2" rowspan="1" >
<p>
<font size="2">31,624,658 shares issued and outstanding</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right">
<font size="2">31,625&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="467.999883" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Additional paid-in capital</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">8,125,091&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="467.999883" colspan="2" rowspan="1" >
<p>
<font size="2">Accumulated deficit</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (7,095,677)</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="439.999890" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,061,039&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="467.999883" colspan="2" rowspan="1" >
<p>
<font size="2">Less: prepaid consulting</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (126,698)</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="467.999883" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Total stockholders' equity</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;</font></p>
</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">934,341&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="26.666660" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="439.999890" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="105.333307" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="493.333210" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</b></font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">1,348,934&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">The accompanying notes are an integral part of these condensed
consolidated financial statements</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>5</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>
<p>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC.
AND SUBSIDIARIES)</b></font><br><font size="2"><b>CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS</b></font><br><font size="2"><b>FOR THE THREE MONTHS
ENDED JULY 31, 2007 AND 2006 (UNAUDITED)</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b><u>2007</u></b></font></p align="center">
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b><u>2006</u></b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="203.999949" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>OPERATING REVENUE</b></font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="135.999966" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Services</font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">$</font></p>
</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">250,000</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:solid windowtext .5pt">
<font size="2">$</font></p>
</td>
<td width="74.666648" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="203.999949" colspan="3" rowspan="1" >
<p>
<font size="2"><b>Total operating revenue</b></font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">250,000</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="341.333248" colspan="5" rowspan="1" >
<p>
<font size="2"><b>COSTS AND OPERATING EXPENSES </b></font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="341.333248" colspan="5" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Supplies</font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
<font size="2">75,000</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</font></p>
</td>
</tr>
<tr valign="top">
<td width="203.999949" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and
administrative</font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">171,791</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">17,320&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="271.999932" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>Total costs and operating expenses</b></font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">246,791</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">17,320&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="341.333248" colspan="5" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>INCOME (LOSS) BEFORE OTHER INCOME</b></font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">3,209</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (17,320)</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="135.999966" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income</font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="135.999966" colspan="2" rowspan="1" >
<p>
<font size="2">Interest income</font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">5,359</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="135.999966" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>Total other income</b></font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">5,359</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" 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="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="505.333207" colspan="7" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b> INCOME (LOSS) BEFORE PROVISION FOR INCOME
TAXES</b></font></p>
</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">8,568</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (17,320)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="203.999949" colspan="3" rowspan="1" >
<p>
<font size="2">    Provision for income taxes</font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="505.333207" colspan="7" rowspan="1" >
<p>
<font size="2"><b>NET INCOME (LOSS) APPLICABLE TO COMMON
STOCKHOLDERS</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">8,568</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="74.666648" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (17,320)</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="74.666648" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="505.333207" colspan="7" rowspan="1" >
<p>
<font size="2"><b>BASIC AND DILUTED INCOME (LOSS) PER COMMON
SHARE</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">0.00</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="74.666648" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">(0.00)</font></p>
</td>
</tr>
<tr valign="top">
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="67.999983" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="409.333231" colspan="6" rowspan="1" >
<p>
<font size="2"><b>WEIGHTED AVERAGE SHARES OUTSTANDING (BASIC) </b></font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">30,842,049</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">16,824,658&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="409.333231" colspan="6" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="409.333231" colspan="6" rowspan="1" >
<p>
<font size="2"><b>WEIGHTED AVERAGE SHARES OUTSTANDING (DILUTED)</b></font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">31,080,085</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="91.999977" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">The accompanying notes are an integral part of these condensed
consolidated financial statements</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b><p></p>6</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND
SUBSIDIARIES</b></font><br><font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC.
AND SUBSIDIARIES)</b></font><br><font size="2"><b>CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS</b></font><br><font size="2"><b>FOR THE THREE MONTHS
ENDED JULY 31, 2007 AND 2006 (UNAUDITED)</b></font></p>
<div align="center" style="position:relative; left: -1"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>2007</b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<font size="2"><b>2006</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>CASH FLOWS FROM OPERATING ACTIVITIES</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">   Net income (loss)</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">$</font></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">8,568&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">$</font></p>
</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (17,320)</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>   Adjustments to reconcile net income (loss) to net
cash</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>   provided (used) by operating activities:</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in
accounts payable</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">12,689&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> (1,497)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other
accrued expenses</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
<p align="right">
<font size="2">27,488&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of prepaid
consulting services</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">26,838&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" 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="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
adjustments</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">67,015&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (1,497)</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided
(used) by operating activities</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">75,583&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (18,817)</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH FLOWS FROM FINANCING ACTIVITIES</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2">    (Payment of) proceeds from officers loan</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
<p align="right">
<font size="2"> (43,693)</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right">
<font size="2">18,900&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">    &nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:solid windowtext .5pt">
<font size="2">    &nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used)
provided by financing activities</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (43,693)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">18,900&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>NET INCREASE IN CASH AND</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>    CASH EQUIVALENTS</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">31,890&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">83&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>CASH AND CASH EQUIVALENTS -</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>    BEGINNING OF PERIOD</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">475,135&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">540&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH AND CASH EQUIVALENTS - END OF PERIOD</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">507,025&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">623&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2"><b>SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:</b></font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the
year for:</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
paid</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">-&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="77.333314" 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="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="607.999848" colspan="4" 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="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">In May 2007, the Company issued 525,000 stock-options for
prepaid</font><br><font size="2">consulting services valued at $120,398.
</font></p>
</td>
<td width="191.999952" colspan="4" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="71.999982" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="505.333207" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">In May 2007, the Company issued 4,000,000 shares for 100% of the
shares of Biomerk, Inc.</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
<td width="95.999976" colspan="2" rowspan="1" bgcolor=#FFF3CE>
&nbsp;</td>
</tr>
</table></div>
<p>
<p align="center">
<font size="2">The accompanying notes are an integral part of these condensed
consolidated financial statements</font></p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>7</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b><br><b>(FORMERLY CHAMPIONS
SPORTS, INC. AND SUBSIDIARIES)</b><br><b>NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</b><br><b>JULY 31, 2007 AND 2006 (UNAUDITED)</b><p>
<font size="2"><b>NOTE
1-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>ORGANIZATION
AND BASIS OF PRESENTATION</u></b></font></p>
<p style="margin-left:80">Champions Biotechnology, Inc., (the "Company") is a
biotechnology company engaged in the 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. 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. In May 2007, the
Company acquired Biomerk, Inc., a privately owned company focused on generating
a novel preclinical platform of human cancer tumor immune-deficient mice
xenografts (Biomerk Tumorgrafts&#8482;).</p><p>
</p>
<p style="margin-left:80">The condensed consolidated unaudited interim financial
statements included herein have been prepared, without audit, pursuant to the
rules and regulations of the Securities and Exchange Commission. The condensed
consolidated financial statements and notes are presented as permitted on Form
10-QSB and do not contain information included in the Company's annual
consolidated statements and notes. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with accounting
principles generally accepted in the United States of America have been
condensed or omitted pursuant to such rules and regulations, although the
Company believes that the disclosures are adequate to make the information
presented not misleading. The results for the three months ended July 31, 2007
may not be indicative of the results for the entire year.</p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>8</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b><br><b>(FORMERLY CHAMPIONS
SPORTS, INC. AND SUBSIDIARIES)</b><br><b>NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</b><br><b>JULY 31, 2007 AND 2006 (UNAUDITED)</b><p>
<font size="2"><b>NOTE
2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES</u></b></font><p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Principles
of Consolidation</u></b></font></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. </p><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Goodwill
and Other Intangible Assets</u></b></font></p>
<p style="margin-left:80">In June 2001, the Financial Accounting Standards Board
("FASB") issued Statement No. 142 "Goodwill and Other Intangible Assets". This
statement addresses financial accounting and reporting for acquired goodwill and
other intangible assets and supersedes APB Opinion No. 17, "Intangible Assets".
It addresses how intangible assets that are acquired individually or with a
group of other assets (but not those acquired in a business combination) should
be accounted for in financial statements upon their acquisition.  This Statement
also addresses how goodwill and other intangible assets should be accounted for
after they have been initially recognized in the financial statements. </p><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Intangible
Assets</u></b></font></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>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Accounting
for Acquisition</u></b></font></p>
<p style="margin-left:80">The Company has accounted for its acquisition under
the purchase method of accounting for business combinations. Under the purchase
method of accounting, the cost, including transaction costs, are allocated to
the underlying net assets, based on their respective estimated fair values. The
excess of the purchase price over the estimated fair values of the net assets
acquired is recorded as goodwill.</p><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Impairment
of Goodwill and Other Intangible Assets</u></b></font></p>
<p style="margin-left:80">Goodwill and other intangible assets are tested
annually for impairment and are tested for impairment more frequently if events
and circumstances indicate that the asset might be impaired.  An impairment loss
is recognized to the extent that the carrying amount exceeds the asset's fair
value. The Company assesses the recoverability of its goodwill and other
intangible assets by comparing the projected undiscounted net cash flows
associated with the related asset, over the remaining lives, in comparison to
their respective carrying amounts. Impairment, if any, is based on the excess of
the carrying amount over the fair value of those assets. </p><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></font></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><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 align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b><br><b>(FORMERLY CHAMPIONS
SPORTS, INC. AND SUBSIDIARIES)</b><br><b>NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</b><br><b>JULY 31, 2007 AND 2006
(UNAUDITED)</b></p align="center">
<p align="center">
</p>
<p>
<p>
<font size="2"><b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</u></b>  <b>(CONTINUED)</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Net
Loss Per Share</u></b></font></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 for the three months ended July 31, 2006 when the Company reported a loss
because to do so would have been antidilutive.  </p><p>
</p>
<p style="margin-left:80">The following is a reconciliation of the computation
for basic and diluted EPS:</p><p>
</p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<font size="2"><b>July 31,</b></font></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<font size="2"><b>&nbsp;</b></font></p align="center">
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<font size="2"><b>July 31,</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>2007</b></font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="center">
<font size="2"><b>&nbsp;</b></font></p align="center">
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>2006</b></font></p>
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">Net income (loss)</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="87.999978" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:double">
<font size="2">8,568&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:double">
<font size="2"> (17,320)</font></p>
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">Weighted-average common shares</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">outstanding (basic)</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">30,842,049&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">16,824,658&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">Weighted-average common stock</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">Equivalents</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock
options</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">238,636&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p align="right">
<font size="2">-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrants</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<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=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="3" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">Weighted-average common shares</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">outstanding (diluted)</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">31,080,685&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" BGCOLOR=#ffffff>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="101.333308" colspan="2" rowspan="1" BGCOLOR=#ffffff>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">16,824,658&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>10</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b><br><b>(FORMERLY CHAMPIONS
SPORTS, INC. AND SUBSIDIARIES)</b><br><b>NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</b><br><b>JULY 31, 2007 AND 2006 (UNAUDITED)</b><p>
<font size="2"><b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</u></b>  <b>(CONTINUED)</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Cash
and Cash Equivalents</u></b></font></p>
<p style="margin-left:80">For purposes of the condensed consolidated statements
of cash flow, the Company considers all highly liquid debt instruments purchased
with a maturity of three 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>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Income
Taxes</u></b></font></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's assets and liabilities at enacted
tax rates expected to be in effect when such amounts are realized or
settled.</p><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Fair
Value of Financial Instruments</u></b></font></p>
<p style="margin-left:80">The carrying amounts of the Company'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>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock-Based
Compensation</u></b></font></p>
<p style="margin-left:80">Employee stock awards under the Company's compensation
plans are accounted for in accordance with 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&nbsp;15,
2005.  Accordingly, the Company implemented the revised standard in the first
quarter of fiscal year 2007. </p><p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>11</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b><br><b>(FORMERLY CHAMPIONS
SPORTS, INC. AND SUBSIDIARIES)</b><br><b>NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</b><br><b>JULY 31, 2007 AND 2006 (UNAUDITED)</b></p>
<p>
</p>
<p>
<font size="2"><b>NOTE 2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES</u></b>  <b>(CONTINUED)</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock-Based
Compensation</u> (Continued)</b></font></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's common stock on the date that the commitment for performance by
the counterparty has been reached or the counterparty'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>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent
Accounting Pronouncements</u></b></font></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' 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'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 did not have a material impact on the Company'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>12</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b><br><b>(FORMERLY CHAMPIONS
SPORTS, INC. AND SUBSIDIARIES)</b><br><b>NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</b><br><b>JULY 31, 2007 AND 2006 (UNAUDITED)</b><p>
<font size="2"><b>NOTE
2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES </u>(CONTINUED)</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent
Accounting Pronouncements</u></b> <b>(Continued)</b></font></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's
financial assets that meets the requirements for sale accounting, a transfer of
the servicer'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. </p><p>
</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 did not have a material impact
on the Company'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'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 January 31, 2008.</p><p>
</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 align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b><br><b>(FORMERLY CHAMPIONS
SPORTS, INC. AND SUBSIDIARIES)</b><br><b>NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</b><br><b>JULY 31, 2007 AND 2006 (UNAUDITED)</b><p>
<font size="2"><b>NOTE
2-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES </u>(CONTINUED)</b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Recent
Accounting Pronouncements</u></b> <b>(Continued)</b></font></p>
<p style="margin-left:80">In September 2006, the FASB issued SFAS No. 158,
"Employers' 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's overfunded status or a liability for a plan's
underfunded status; (b) measure a plan's assets and its obligations that
determine its funded status as of the end of the employer'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'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>
<font size="2"><b>NOTE
3-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>OTHER ACCRUED
EXPENSES</u></b></font></p>
<p style="margin-left:80">This account represents accrued officer's payroll and
related payroll taxes. </p><p>
<p>
<font size="2"><b>NOTE
4-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>OFFICER LOANS
PAYABLE</u></b></font></p>
<p style="margin-left:80">For the three months ended July 31, 2006, the Company
received working capital advances from an officer of the Company which were
repaid during the three months ended July 31, 2007 without interest.  </p><p>
</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 align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b><br><b>(FORMERLY CHAMPIONS
SPORTS, INC. AND SUBSIDIARIES)</b><br><b>NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</b><br><b>JULY 31, 2007 AND 2006 (UNAUDITED)</b><p>
<font size="2"><b>NOTE
5-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>STOCKHOLDERS'
EQUITY</u> </b></font><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Common
Stock</u> </b></font></p>
<p style="margin-left:80">The Company has 50,000,000 shares authorized and
31,624,658 shares issued and outstanding at July 31, 2007.</p><p>
</p>
<p style="margin-left:80">On May 18, 2007, the Company entered into an Agreement
and Plan of Merger with Biomerk, Inc., a privately owned company, whereby the
Company issued 4,000,000 restricted shares of its common stock to acquire 100%
of the outstanding stock of Biomerk, Inc.</p><p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Stock
Options</u></b></font></p>
<p style="margin-left:80">On May 15, 2007, the Company entered into a consulting
agreement to issue five hundred thousand options, exercisable over a five-year
period based on a fair value exercise price on the date of issuance ($0.30)
exercisable expiring through May 15, 2012 for services to be rendered over three
years.  The options vest as follows:  166,665 upon the first anniversary of the
grant date, 166,665 upon the second anniversary of the grant date and 166,670
upon the third anniversary of the grant date and have been valued at $114,665
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
$14,598 for the three months ended July 31, 2007. On May 15, 2007, the Company
entered into a consulting agreement to issue twenty- five thousand options,
exercisable over a five-year period based on a fair value exercise price on the
date of issuance ($0.30) exercisable expiring through May 15, 2012 for services
to be rendered over one year.  The options vest on May 15, 2008 and have been
valued at $5,733 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 $1,194 for the three months ended July 31, 2007. </p><p>
</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 align="center">
<b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b><br><b>(FORMERLY CHAMPIONS
SPORTS, INC. AND SUBSIDIARIES)</b><br><b>NOTES TO CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS</b><br><b>JULY 31, 2007 AND 2006 (UNAUDITED)</b><p>
<font size="2"><b>NOTE
6-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>GOING
CONCERN</u></b></font></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'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 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>
<font size="2"><b>NOTE 7- &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>PROVISION FOR INCOME
TAXES</u></b></font></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'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'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 July 31, 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="257.333269" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="2" rowspan="1" >
<p align="center">
<font size="2"><u>2007</u></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="2" rowspan="1" >
<p align="center">
<font size="2"><u>2006</u></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Deferred tax asset </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">$</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,483,487&nbsp;</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">$</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,433,027&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Less:  valuation allowance           </font></p>
</td>
<td width="89.333311" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(2, 483,487)</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="89.333311" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(2, 433,027)</font></p>
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Net deferred tax asset</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-0-&nbsp;</font></p>
</td>
<td width="11.999997" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-0-&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="449.333221" colspan="6" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
</p>
<p style="margin-left:80">At July 31, 2007 and 2006, the Company had federal net
operating loss carryforwards in the approximate amounts of $7,095,677 and
$6,951,507 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 align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>16</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
</p>
&nbsp;Item 2.&nbsp;&nbsp;&nbsp;Management's Discussion and Analysis or Plan of Operation	<p>
<p align="center">
<b>SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>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'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 identified under "RISK FACTORS" of the Company's most
recent Form 10-KSB. 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'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's expectations, except as required by law. </b><p>
<b>Overview</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Champions Biotechnology, Inc.
(referred in this 10-QSB by terms "Company", "we" or "our") is a biotechnology
company that is 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's Directors and shareholders, Drs. David Sidransky
and Manuel Hidalgo, who have wide-ranging contacts in the pharmaceutical and
biotechnology industry, academia and government. Dr. Manuel Hidalgo is the
Company's Scientific Advisor.</p>
&nbsp;&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'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.	<p>
</p>
&nbsp;&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 (Journal of Medicinal Chemistry, 2006, Vol. 49, No.7, 2357-2360 and American Association for Cancer Research Journal of Molecular Cancer Therapeutics, Vol. 6, Issue 5, May 2007, 1509-16.). 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.  	<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>17</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>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. </p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, we 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.	<p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company was incorporated under the
laws of the State of Delaware in June 1985 as a small 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&nbsp;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. Since then the Company commenced the process
of building a biotechnology company from the "ground up" as its new business
approach.<p>
<b>Results of Operation</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended July 31,
2007, the Company's net income was $8,568 and the net loss for the three months
ended July 31, 2006 was $17,320. In the quarter ended July 31, 2007, the Company
began its operations as a biotechnology company while in the prior quarter ended
July 31, 2006, it had no operations. The Company acquired Biomerk, Inc. in May
2007. The Company's total assets at July 31, 2007 were $1,348,934. The Company's
total assets at July 31, 2006 were $623.  <p>
<b>Revenues</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's total operating revenues
were $250,000 for the three months ended July 31, 2007 and $0.00 for the three
months ended July 31, 2006. The Company generated revenues for the three months
ended July 31, 2007 for providing administrative services in the field of
oncology.<p>
<b>Expenses</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended July 31,
2007, expenses were $246,791 compared to $17,320 for the three months ended July
31, 2006. The increased expenses represented the Company moving forward in
executing its new business plan of building a biotechnology company. Supplies of
$75,000 represented tumorgraft expenses and the rest of expenses were general
and administrative expenses which were  due to significant increase in the
Company's operating activities for the administration and servicing of the
expert medical information panels, increase in professional legal and accounting
fees relating to the acquisition of Biomerk, Inc., fees associated with
maintaining the Company's patent position and stock option based amortized
compensation. For the three months ended July 31, 2006 the expenses of $17,320
were associated with the maintenance of the Company as it was seeking a new
business direction.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>18</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
<b>Liquidity and Capital Resources</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's cash position as of July
31, 2007 was $507,025, compared to $3,758 on April 30, 2007. For the three month
period ended July 31, 2007, the Company's continuing operations provided
$75,583.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company had working capital of
$92,432 at July 31, 2007 and a deficit of $441,065 at April 30, 2007.  This
increase in working capital was due to the acquisition, on May 18, 2007, of
Biomerk, Inc., a private company and operations during the three months ended
July 31, 2007.  The Company's working capital is very unfavorable when compared
to other public companies.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company anticipates that the
revenues generated for the three months ended July 31, 2007 and the Biomerk
acquisition, which provided the Company with approximately $475,000 cash, will
cover operating costs until longer term capital is obtained to finance the
Company's future development. There is no assurance that this can be done on
terms satisfactory to the Company.<p>
<b>Item 3.&nbsp;&nbsp;&nbsp;Controls and Procedures</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's president currently acts
both as its chief executive officer and chief financial officer and is
responsible for establishing and maintaining 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's rules and
forms. Disclosure controls are also designed with the objective of ensuring that
this information is accumulated and communicated to the Company's management,
including the Company's chief executive officer and chief financial officer, as
appropriate, to allow timely decisions regarding required disclosure.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A control system, no matter how well
conceived and operated, can provide only reasonable, not absolute, assurance
that the objectives of the internal control system are met. Because of the
inherent limitations of any internal control system, no evaluation of controls
can provide absolute assurance that all control issues, if any, within a company
have been detected.<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management did not use a framework to
conduct the required evaluation of the effectiveness of the Company's  internal
control over financial reporting since, in the view of management, comparison
with a framework was unwarranted because the size of the Company's current
operations are such that management is aware of all current transactions and
also that the size of the Company prevents it from being able to employ
sufficient staffing resources to enable the Company to have adequate segregation
of duties within its internal control system.  <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An evaluation was conducted by the
Company's president as to the effectiveness of the design and operation of the
Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Exchange Act) as of the quarterly period ending July 31,
2007 covered by this Quarterly Report on Form 10-QSB. Based upon such
evaluation, the Company's president concluded that, as of the end of such
period, the Company's disclosure controls and procedures were not effective as
required under Rules 13a-15(e) and 15d-15(e) under the Exchange Act. <p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This deficiency consists 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
prevents 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. When the Company is able to
obtain sufficient funding and develop its management and staffing, it will apply
the necessary corrective action to remedy the weakness.</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>19</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There was no change in the Company's
internal control over financial reporting that occurred during the period
covered by this Quarterly Report on Form 10-QSB that has materially affected, or
is reasonably likely to materially affect, the Company's internal control over
financial reporting. <p>
<b>Critical Accounting Policies</b></p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the notes to the consolidated financial statements for the quarter ended July 31, 2007 included in the Company's Form 10-QSB, the Company discussed those accounting policies that are considered to be significant in determining the results of operations and our financial position. We believe that the accounting principles utilized by us conform to accounting principles generally accepted in the United States of America.	<p>
<p align="center">
<b>Part II.&nbsp;&nbsp;&nbsp;Other Information</b><p>
<b>Item 1.&nbsp;&nbsp;&nbsp;Legal Proceedings</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>None<p>
<b>Item 2.&nbsp;&nbsp;&nbsp;Unregistered Sales of Equity Securities and Use of
Proceeds</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May 18, 2007, The Company issued an aggregate
of 4,000,000 restricted shares of common stock to two accredited individuals to
acquire Biomerk, Inc. pursuant to an Agreement and Plan of Merger. The Company
issued the shares in reliance upon the exemption from registration provided by
Section 4(2) of the Securities Act.<p>
<b>Item 3.&nbsp;&nbsp;&nbsp;Defaults Upon Senior Securities</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>None<p>
<b>Item 4.&nbsp;&nbsp;&nbsp;Submission of Matters to a Vote of Security
Holders</b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None<p>
<b>Item 5.&nbsp;&nbsp;&nbsp;Other Information</b><p>
<b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>None<p>
<b>Item 6.&nbsp;&nbsp;&nbsp;Exhibits </b><p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certification
of the Chief Executive and Financial Officer required by Rule 13a-14(a) or Rule
15d-14(a).<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Certification
of the Chief Executive and Financial Officer required by Rule 13a-14(b) or Rule
15d-14(b) and 18 U.S.C. 1350.</p>
<p>
</p>
<p>
</p>
<div align="center" color="#000080" style="position:relative; left: -5"><b><p></p>20</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>SIGNATURES</b><p>
Pursuant to the requirements of Securities Exchange Act of 1934, the registrant
has duly caused this report to be signed on its behalf by the undersigned
hereunto duly authorized.</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="347.999913" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="305.333257" colspan="1" rowspan="1" >
<p>
<b>CHAMPIONS BIOTECHNOLOGY, INC.</b></p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="659.999835" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="659.999835" colspan="3" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="347.999913" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="305.333257" colspan="1" rowspan="1" >
<p>
<u>/s/ James Martell</u></p>
</td>
<td width="5.333332" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="347.999913" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="310.666589" colspan="2" rowspan="1" >
<p>
James Martell</p>
</td>
</tr>
<tr valign="top">
<td width="347.999913" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="310.666589" colspan="2" rowspan="1" >
<p>
Chairman, CEO, President and CFO</p>
</td>
</tr>
<tr valign="top">
<td width="659.999835" colspan="3" rowspan="1" >
<p>
Date: September 13, 2007</p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>21</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CERTIFICATION OF CHIEF EXECUTIVE OFFICER</b><br><b>Section 302
Certification</b><p>
I, JAMES MARTELL, certify that:<p>
(1) I have reviewed this quarterly report on Form 10Q-SB of CHAMPIONS
BIOTECHNOLOGY, INC., a Delaware corporation (the "registrant");<p>
(2) Based on my  knowledge,  this  quarterly  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 quarterly
report;<p>
(3) Based on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  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 quarterly report;<p>
(4) The  registrant'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:<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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 quarterly report is
being   prepared;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evaluated the
effectiveness of the registrant's disclosure controls and  procedures  as of a
date  within 90 days prior to the  filing  date of this  quarterly report (the
"Evaluation Date"); and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Presented  in  this  quarterly   report  our  conclusions   about  the
effectiveness  of the  disclosure  controls  and  procedures  based  on our
evaluation as of the Evaluation Date;<p>
(5) The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of the registrant's board of directors (or persons performing the equivalent
functions):<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all  significant  deficiencies  in
the design or  operation of internal controls which could adversely affect the
registrant's ability to record,  process,  summarize and report  financial data
and have  identified for the registrant's auditors any material weaknesses in
internal controls; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
fraud,  whether or not material,  that involves management or other employees
who have a significant  role  in  the  registrant's  internal controls; and<p>
(6) The registrant's  other  certifying  officers and I have  indicated in this
quarterly 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.<p>
Date:  September 13, 2007</p>
<div style="position:relative; left: 35"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="443.999889" colspan="1" rowspan="1" >
<p>
By:&nbsp;</p>
</td>
<td width="143.999964" colspan="1" rowspan="1" >
<p>
<u>/s/ James Martell</u></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="443.999889" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="2" rowspan="1" >
<p>
James Martell</p>
</td>
</tr>
<tr valign="top">
<td width="443.999889" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="2" rowspan="1" >
<p>
Chief Executive Officer</p>
</td>
</tr>
</table></div>
<p>
</p>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>22</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p align="center">
<b>CERTIFICATION OF CHIEF FINANCIAL OFFICER</b><br><b>Section 302
Certification</b><p>
I, James Martell, certify that:<p>
(1) I have reviewed this quarterly report on Form 10Q-SB of CHAMPIONS
BIOTECHNOLOGY, INC., a Delaware corporation (the "registrant");<p>
(2) Based on my knowledge, this  quarterly  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 quarterly
report.<p>
(3) Based on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  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 quarterly report; <p>
(4) The  registrant'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:<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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
quarterly  report is being
prepared;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evaluated the
effectiveness of the registrant's disclosure controls and procedures  as of a
date  within 90 days prior to the  filing  date of this quarterly report (the
"Evaluation Date"); and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Presented  in  this  quarterly   report  our  conclusions   about  the
effectiveness  of the  disclosure  controls  and  procedures  based  on our
evaluation as of the Evaluation Date;<p>
(5) The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of the registrant's board of directors (or persons performing the equivalent
functions):<p>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all  significant  deficiencies  in
the design or  operation of internal controls which could adversely affect the
registrant's  ability to record, process,  summarize and report  financial data
and have  identified for the registrant's auditors any material weaknesses in
internal controls; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any
fraud,  whether or not material,  that involves management or other employees
who have a significant  role  in  the  registrant's  internal controls; and<p>
(6) The registrant's other certifying officers and I have indicated in this
quarterly 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.<p>
Date: September 13, 2007</p>
<div style="position:relative; left: 35"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
<p>
By:&nbsp;</p>
</td>
<td width="167.999958" colspan="1" rowspan="1" >
<p>
<u>/s/ James Martell</u></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="203.999949" colspan="2" rowspan="1" >
<p>
James Martell</p>
</td>
</tr>
<tr valign="top">
<td width="431.999892" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="203.999949" colspan="2" rowspan="1" >
<p>
Chief Financial Officer</p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b>23</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
<p align="center">
<b>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT
TO</b><br><b>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</b><p>
In connection with the quarterly report of Champions Biotechnology, Inc. (the
"Company") on Form 10-QSB for the nine months ended January 31, 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:<p>
1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Report fully complies with the requirements
of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
<br>2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained in the Report
fairly presents, in all material respects, the financial condition and results
of operation of the Company. </p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="341.333248" colspan="1" rowspan="1" >
<p>
Dated: September 13, 2007</p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p>
By:&nbsp;</p>
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<p>
<u>/s/ James Martell</u></p>
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&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="287.999928" colspan="1" rowspan="1" >
<p>
James M. Martell, Chief Executive Officer and</p>
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&nbsp;</td>
<td width="77.333314" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="287.999928" colspan="1" rowspan="1" >
<p>
Chief Financial Officer</p>
</td>
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</p align="center">
<div align="center" color="#000080" style="position:relative; left: -5"><b><p></p>24</b><hr size="3" color="#999999" STYLE="page-break-after: always"> &nbsp; </div><p>
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