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<SEC-DOCUMENT>0001297077-07-000070.txt : 20071217
<SEC-HEADER>0001297077-07-000070.hdr.sgml : 20071217
<ACCEPTANCE-DATETIME>20071217155851
ACCESSION NUMBER:		0001297077-07-000070
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20071031
FILED AS OF DATE:		20071217
DATE AS OF CHANGE:		20071217

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CHAMPIONS BIOTECHNOLOGY, INC.
		CENTRAL INDEX KEY:			0000771856
		STANDARD INDUSTRIAL CLASSIFICATION:	BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836]
		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:		071310146

	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>champs10qsbfinal2.htm
<DESCRIPTION>CHAMPIONS BIOTECHNOLOGY 10/31/07 10-QSB
<TEXT>
<html>
<head><meta content="text/html; charset=">
<title>SECURITIES AND EXCHANGE COMMISSION</title>
</head>

<body >
<ul>
</ul>

<p>
<br><br><br><br></p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>SECURITIES AND EXCHANGE COMMISSION</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>Washington, D.C.  20549</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>FORM 10-QSB</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 36"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="541.333198" colspan="1" rowspan="1" >
<p>
<font size="2">Mark One</font></p>
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 67"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
<p>
<font size="2">[X]</font></p>
</td>
<td width="419.999895" 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="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="1" rowspan="1" >
<p>
<font size="2">THE SECURITIES EXCHANGE ACT OF 1934</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>For the quarterly period ended   October 31, 2007</u></font></p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2">OR</font></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 67"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="41.333323" colspan="1" rowspan="1" >
<p>
<font size="2">[&nbsp;&nbsp;&nbsp;]</font></p>
</td>
<td width="419.999895" 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="41.333323" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="419.999895" colspan="1" rowspan="1" >
<p>
<font size="2">THE SECURITIES EXCHANGE ACT OF 1934</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2">For the transition period from    <u>                </u>&nbsp;&nbsp;to</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Commission file number            <u>&nbsp;0-17263</u></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br></p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<b><u>CHAMPIONS BIOTECHNOLOGY, INC.</u></b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Exact name of registrant as specified in its charter)</font></p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="323.999919" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>Delaware</u></font></p align="center">
</td>
<td width="329.333251" 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="323.999919" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(State or other jurisdiction of</font></p align="center">
</td>
<td width="329.333251" 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="323.999919" colspan="1" rowspan="1" >
<p align="center">
<font size="2">organization)</font></p align="center">
</td>
<td width="329.333251" colspan="1" rowspan="1" >
<p align="center">
<font size="2">Identification No.)</font></p align="center">
</td>
</tr>
</table></div>
<p>
</p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>2200 Wilson Blvd., Suite 102-316, Arlington VA 22201</u></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Address of principal executive offices)</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Zip code)</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>(703) 526-0400</u></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2">(Registrant's telephone number, including area code)</font></p align="center">
</td>
</tr>
</table></div>
<p>
<br><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 </font><br><font size="2">Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), </font><br><font size="2">and (2) has been subject to such filing requirements for the past 90 days.  Yes  <u>&nbsp;x    </u>&nbsp;&nbsp;No    <u>    </u>&nbsp;</font><br><br><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>x    </u>&nbsp;&nbsp;</font><br><br><font size="2">As of December 14, 2007 the Registrant had a total of 31,686,290 shares of common stock outstanding.</font><br><br><font size="2">Transitional Small Business Disclosure Format (check one): &nbsp;&nbsp;Yes <u>&nbsp;x    </u>No    <u>&nbsp;</u></font><br><br><br><br></p align="right">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="4" color="#000080"><b><i>&nbsp;</i></b></font></p>
</td>
</tr>
</table></div>
<p>
<br></p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC.</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>FORM 10-QSB</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><u>INDEX</u></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br></p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<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=#CCFFFF>
&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=#CCFFFF>
&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 October 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=#CCFFFF>
&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=#CCFFFF>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for the Six months and Three months ended October 31, 2007 and  2006 (Unaudited)</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">6</font></p>
</td>
</tr>
<tr valign="top">
<td width="619.999845" colspan="3" rowspan="1" bgcolor=#CCFFFF>
&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=#CCFFFF>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Six months ended October 31, 2007 and  2006 (Unaudited)</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<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=#CCFFFF>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<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=#CCFFFF>
<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=#CCFFFF>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<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=#CCFFFF>
<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=#CCFFFF>
&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=#CCFFFF>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&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=#CCFFFF>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Item 1.   Legal Proceedings</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<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=#CCFFFF>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Item 3.   Defaults Upon Senior Securities</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<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=#CCFFFF>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Item 5.   Other Information</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<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=#CCFFFF>
&nbsp;</td>
<td width="499.999875" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Signatures</font></p>
</td>
<td width="65.333317" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<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=#CCFFFF>
<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=#CCFFFF>
<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=#CCFFFF>
<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=#CCFFFF>
<p>
<font size="2">24</font></p>
</td>
</tr>
</table></div>
<p>
<br><br><br><br><br><br><br><br><br><br><br><br><br></p align="right">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">2</font></p>
</td>
</tr>
</table></div>
<p>
<br><br><br><br><br><br><br><br><br></p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br></p align="right">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="666.666500" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">3</font></p>
</td>
</tr>
</table></div>
<p>
<br></p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="563.999859" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>INDEX TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="563.999859" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br><br><br></p>
<div 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 October 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 Six months and 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 October 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 Six 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">October 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>
<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br></p align="right">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">4</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="582.666521" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="582.666521" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="582.666521" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="582.666521" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CONDENSED CONSOLIDATED BALANCE SHEET</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="582.666521" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>AS OF OCTOBER 31, 2007 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
</p>
<div style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="417.333229" colspan="4" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>ASSETS</b></font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="3" rowspan="1" >
<p>
<font size="2"><b>CURRENT ASSETS</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="386.666570" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Cash and cash equivalents</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$&nbsp;&nbsp;&nbsp;365,916 </font></p>
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>Total Current Assets</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">365,916 </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="386.666570" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Intangibles assets</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">191,745 </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="386.666570" colspan="2" rowspan="1" >
<p>
<font size="2">Goodwill</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">661,909 </font></p>
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="3" rowspan="1" >
<p>
<font size="2"><b>TOTAL ASSETS</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;&nbsp;1,219,570 </font></p>
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="417.333229" colspan="4" rowspan="1" >
<p>
<font size="2"><b>LIABILITIES AND STOCKHOLDERS' EQUITY</b></font></p>
</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="3" rowspan="1" >
<p>
<font size="2"><b>CURRENT LIABILITIES</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="386.666570" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Accounts payable</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">$&nbsp;&nbsp;&nbsp;42,949 </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="386.666570" colspan="2" rowspan="1" >
<p>
<font size="2">Other accrued expenses</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">351,394 </font></p>
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>Total current liabilities</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">394,343 </font></p>
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>COMMITMENTS AND CONTINGENCIES</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>STOCKHOLDERS' EQUITY</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="386.666570" colspan="2" rowspan="1" >
<p>
<font size="2">Common stock, $.001 par value; 50,000,000 shares authorized;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="386.666570" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">31,624,658 shares issued and outstanding</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">31,625 </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="386.666570" colspan="2" rowspan="1" >
<p>
<font size="2">Additional paid-in capital</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8,461,378 </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="386.666570" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Accumulated deficit</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (7,241,240)</font></p>
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,251,763 </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="386.666570" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Less: prepaid consulting</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="3"> (426,536)</font></p>
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="386.666570" colspan="2" rowspan="1" >
<p>
<font size="2">Total stockholders' equity</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right">
<font size="2">825,227 </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="401.333233" colspan="3" rowspan="1" >
<p>
<font size="2"><b>TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;&nbsp;1,219,570 </font></p>
</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="370.666574" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="55.999986" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<br><br><br><font size="2">The accompanying notes are an integral part of these condensed consolidated financial statements</font><br><br><br></p align="right">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="685.333162" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">5</font></p>
</td>
</tr>
</table></div>
<p>
<br></p>
<p>
</p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="755.999811" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="755.999811" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="755.999811" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="755.999811" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>FOR THE SIX MONTHS AND THREE MONTHS ENDED OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br></p>
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="167.999958" colspan="3" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="167.999958" colspan="3" rowspan="1" >
<p>
<font size="2"><b>Six Months Ended October 31</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="186.666620" colspan="3" rowspan="1" >
<p>
<font size="2"><b> Three Months Ended October 31 </b></font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="center">
<font size="2"><b><u>2007</u></b></font></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="center">
<font size="2"><b><u>2006</u></b></font></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="center">
<font size="2"><b><u>2007</u></b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="center">
<font size="2"><b><u>2006</u></b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2"><b> </b></font></p align="right">
</td>
<td width="117.333304" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="270.666599" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>OPERATING REVENUE</b></font></p>
</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
<p>
<font size="2">    &nbsp;Services</font></p>
</td>
<td width="117.333304" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$&nbsp;&nbsp;&nbsp;250,000 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$&nbsp;&nbsp;&nbsp;-   </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$&nbsp;&nbsp;&nbsp;-   </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$&nbsp;&nbsp;&nbsp;-   </font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="249.333271" colspan="3" rowspan="1" >
<p>
<font size="2"><b>Total operating revenue</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">250,000 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-   </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-   </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-   </font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="4" rowspan="1" >
<p>
<font size="2"><b>COSTS AND OPERATING EXPENSES </b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="190.666619" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>Supplies</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">75,000 </font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">-   </font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">-   </font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">-   </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="270.666599" colspan="3" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative</font></p>
</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">321,989 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">36,888 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">150,198 </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">19,568 </font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="117.333304" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="249.333271" colspan="3" rowspan="1" >
<p>
<font size="2"><b>Total costs and operating expenses</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">396,989 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">36,888 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">150,198 </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">19,568 </font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="323.999919" colspan="4" rowspan="1" >
<p>
<font size="2"><b>(LOSS) BEFORE OTHER INCOME</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (146,989)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (36,888)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (150,198)</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (19,568)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="190.666619" colspan="2" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other income</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="195.999951" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Interest income</font></p>
</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">9,994 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-   </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">4,635 </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$&nbsp;&nbsp;&nbsp;-   </font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="195.999951" colspan="2" rowspan="1" >
<p>
<font size="2"><b>Total other income</b></font></p>
</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p align="right">
<font size="2">9,994 </font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-   </font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4,635 </font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-   </font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="339.999915" colspan="5" rowspan="1" >
<p>
<font size="2"><b>(LOSS) BEFORE PROVISION FOR INCOME TAXES</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (136,995)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (36,888)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (145,563)</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (19,568)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="270.666599" colspan="3" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for income taxes</font></p>
</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-   </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-   </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-   </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-   </font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="355.999911" colspan="6" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>NET (LOSS) APPLICABLE TO COMMON STOCKHOLDERS</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">$    (136,995)</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">$    (36,888)</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">$    (145,563)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">$    (19,568)</font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="339.999915" colspan="5" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>BASIC AND DILUTED (LOSS) PER COMMON SHARE</b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">$    (0.00)</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">$    (0.00)</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">$    (0.00)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">$    (0.00)</font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="355.999911" colspan="6" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>WEIGHTED AVERAGE SHARES OUTSTANDING (BASIC) </b></font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">31,233,353 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">16,906,180 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">31,624,658 </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">16,987,701 </font></p>
</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="117.333304" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="53.333320" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="78.666647" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="87.999978" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="81.333313" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<br><br><font size="2">The accompanying notes are an integral part of these condensed consolidated financial statements</font><br><br><br><br><br><br></p align="right">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="762.666476" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">6</font></p>
</td>
</tr>
</table></div>
<p>
<br></p>
<p>
</p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>FOR THE SIX MONTHS ENDED OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br></p>
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2007</b></font></p align="center">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>2006</b></font></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH FLOWS FROM OPERATING ACTIVITIES</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (loss)</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$    (136,995)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$    (36,888)</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net (loss) to net cash</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(used) by operating activities:</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Decrease) in accounts payable</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (7,561)</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (300)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in other accrued expenses</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">15,743 </font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">-   </font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of prepaid consulting services</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">63,287 </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-   </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total adjustments</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">71,469</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (300)</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in)  operating activities</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (65,526)</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (37,188)</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>CASH FLOWS FROM FINANCING ACTIVITIES</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Payment of) proceeds from officers loan</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2"> (43,693)</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">37,000 </font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<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" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">37,000 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>NET (DECREASE) IN CASH AND</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CASH EQUIVALENTS</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (109,219)</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (188)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<font size="2"><b>CASH AND CASH EQUIVALENTS -</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BEGINNING OF PERIOD</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">475,135 </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">540 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>CASH AND CASH EQUIVALENTS - END OF PERIOD</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;&nbsp;365,916 </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;&nbsp;352 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2"><b>SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:</b></font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash paid during the year for:</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;&nbsp;-   </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;&nbsp;-   </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;&nbsp;-   </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;&nbsp;-   </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<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" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<font size="2">Common stock issued for exchange of preferred stock and dividend payable on preferred stock</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">-   </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;&nbsp;674,790 </font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<p>
<font size="2">In May 2007, the Company issued 525,000 stock-options for prepaid consulting services valued at $120,398. </font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" >
<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="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="503.999874" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="83.999979" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="522.666536" colspan="2" rowspan="1" >
<p>
<font size="2">In October 2007, the Company issued 500,000 stock options for prepaid consulting services valued at $336,287.</font></p>
</td>
<td width="83.999979" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="17.333329" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="73.333315" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
<tr valign="top">
<td width="698.666492" colspan="5" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
<tr valign="top">
<td width="698.666492" colspan="5" rowspan="1" >
&nbsp;</td>
<td width="14.666663" colspan="1" rowspan="1" >
&nbsp;</td>
</tr>
</table></div>
<p>
<br><font size="2">The accompanying notes are an integral part of these condensed consolidated financial statements\</font><br></p align="right">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">7</font></p>
</td>
</tr>
</table></div>
<p>
<br></p>
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br><br><font size="2"><b>NOTE 1 - <u>ORGANIZATION AND BASIS OF PRESENTATION</u></b></font><br><br><font size="2">Champions Biotechnology, Inc., (the "Company") is a biotechnology company that is presently engaged in the acquisition and early stage </font><br><font size="2">development of a portfolio of new therapeutic drug candidates, in providing preclinical services to pharmaceutical and biotechnology companies </font><br><font size="2">and in providing administrative services in the field of oncology that the Company hopes will improve methods and approaches to disease </font><br><font size="2">treatment. The Company was incorporated under the laws of the State of Delaware in June 1985 as a merger and acquisition company under the </font><br><font size="2">name "International Group, Inc." In September 1985, the Company completed a public offering, and in January 1986, acquired the world-wide </font><br><font size="2">rights to the Champions sports theme restaurant concept and subsequently changed its nam
e to "Champions Sports, Inc." In 1997, the Company </font><br><font size="2">sold its Champions service mark and concept for sports themed restaurants to Marriott International, Inc. and since then until January 2007, had </font><br><font size="2">been seeking a new business direction. In January 2007, the Company changed its name to Champions Biotechnology, Inc. to reflect the decision </font><br><font size="2">of the Company to focus on biotechnology. In May 2007, the Company acquired Biomerk, Inc., a privately owned company focused on </font><br><font size="2">generating a novel preclinical platform of human cancer tumor immune-deficient mice xenografts (Biomerk Tumorgrafts&#8482;).</font><br></p>
<p>
The condensed unaudited interim consolidated financial statements included
herein have been prepared, without audit, pursuant to <p>
the rules and regulations of the Securities and Exchange Commission. The
condensed consolidated financial statements and notes <p>
are presented as permitted on Form 10-QSB and do not contain information
included in the Company's annual statements and <p>
notes. Certain information and footnote disclosures normally included in
financial statements prepared in accordance with <p>
accounting principles generally accepted in the United States of America have
been condensed or omitted pursuant to such rules <p>
and regulations, although the Company believes that the disclosures are adequate
to make the information presented not <p>
misleading. It is suggested that these condensed consolidated financial
statements be read in conjunction with the April 30, 2007 <p>
audited consolidated financial statements and the accompanying notes thereto.
While management believes the procedures <p>
followed in preparing these condensed consolidated financial statements are
reasonable, the accuracy of the amounts are in some <p>
respects dependent upon the facts that will exist, and procedures that will be
accomplished by the Company later in the year.<p>
These condensed unaudited consolidated financial statements reflect all
adjustments, including normal recurring adjustments, <p>
which, in the opinion of management, are necessary to present fairly the
operations and cash flows for the period presented.</p>
<p>
<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br></p align="right">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">8</font></p>
</td>
</tr>
</table></div>
<p>
<br></p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br><br><br><font size="2"><b>NOTE 2 -&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u></b></font><br><br><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Principles of Consolidation</u></b></font><br><br><font size="2">The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All material intercompany </font><br><font size="2">transactions have been eliminated in consolidation. </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Goodwill and Other Intangible Assets</u></b></font><br><br><font size="2">In June 2001, the Financial Accounting Standards Board ("FASB") issued Statement No. 142 "Goodwill and Other Intangible Assets". This </font><br><font size="2">statement addresses financial accounting and reporting for acquired goodwill and other intangible assets and supersedes APB Opinion No. 17, </font><br><font size="2">"Intangible Assets". It addresses how intangible assets that are acquired individually or with 
a group of other assets (but not those acquired in a </font><br><font size="2">business combination) should be accounted for in financial statements upon their acquisition.  This Statement also addresses how goodwill and </font><br><font size="2">other intangible assets should be accounted for after they have been initially recognized in the financial statements. </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Intangible Assets</u></b></font><br><br><font size="2">Intangible assets represent costs incurred for patent applications. The costs incurred were valued at the fair value of the stock at the time of </font><br><font size="2">issuance.  The Company will establish its estimated useful life upon approval of the application, which will begin the period of amortization of its </font><br><font size="2">cost.  The Company will estimate the fair value of this asset annually. </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Accounting for Acquisition</
u></b></font><br><br><font size="2">The Company has accounted for its acquisition under the purchase method of accounting for business combinations. Under the purchase method </font><br><font size="2">of accounting, the cost, including transaction costs, are allocated to the underlying net assets, based on their respective estimated fair values. The </font><br><font size="2">excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill.</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Impairment of Goodwill and Other Intangible Assets</u></b></font><br><br><font size="2">Goodwill and other intangible assets are tested annually for impairment and are tested for impairment more frequently if events and </font><br><font size="2">circumstances indicate that the asset might be impaired.  An impairment loss is recognized to the extent that the carrying amount exceeds the </font><br><font size="2">asset's fair value. The Company assesses t
he recoverability of its goodwill and other intangible assets by comparing the projected undiscounted </font><br><font size="2">net cash flows associated with the related asset, over the remaining lives, in comparison to their respective carrying amounts. Impairment, if any, </font><br><font size="2">is based on the excess of the carrying amount over the fair value of those assets. </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Use of Estimates</u></b></font><br><br><font size="2">The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States </font><br><font size="2">of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of </font><br><font size="2">contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the </font><br><font si
ze="2">reporting period.  Actual results could differ from those estimates.    </font><br></p align="right">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">9</font></p>
</td>
</tr>
</table></div>
<p>
</p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br><br><br><font size="2"><b>NOTE 2 -&nbsp;<u>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u></b>  <b>(CONTINUED)</b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Net Loss Per Share</u></b></font><br><br><font size="2">Historical net loss per common share is computed using the weighted average number of common shares outstanding. Diluted earnings per share </font><br><font size="2">(EPS) include additional dilution from common stock equivalents, such as stock issuable pursuant to the exercise of stock options and warrants. </font><br><font size="2">Common stock equivalents were not included in the computation of diluted earnings per share for the six months ended October 31, 2006 when </font><br><font size="2">the Company reported a loss because to do so would have been antidilutive.  </font><br><br><font size="2">The following is a reconciliation of the computation for basic and diluted EPS:</font><br></p>
<div style="position:relative; left: 18"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p align="center">
<font size="2"><b>October 31,</b></font></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p align="center">
<font size="2"><b>October 31,</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="center">
<font size="2"><b>2007</b></font></p align="center">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
&nbsp;</td>
<td width="101.333308" colspan="2" rowspan="1" >
<p align="center">
<font size="2"><b>2006</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="143.999964" colspan="2" rowspan="1" >
<p>
<font size="2">Net (loss)</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="87.999978" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(136,995)&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="15.999996" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="83.999979" colspan="1" rowspan="1" >
<p align="right">
<font size="2"> (36,888)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="215.999946" colspan="3" rowspan="1" >
<p>
<font size="2">Weighted-average common shares</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="2" rowspan="1" >
<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=#CCFFFF>
<p>
<font size="2">outstanding (basic)</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">31,233,353&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">16,906,180&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="71.999982" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="35.999991" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="43.999989" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
<td width="101.333308" colspan="2" rowspan="1" >
<p align="right">
<font size="2">&nbsp;</font></p align="right">
</td>
</tr>
</table></div>
<p>
<br><br>The Company had stock options totaling 711,765 that were not included in the calculation of the diluted weighted average number <br>of shares outstanding at October 31, 2007, as inclusion of these options would have been anti-dilutive.  There were no options <br>outstanding at October 31, 2006.<br><br><br><br><br><br><br><br><br><br><br><br></p align="right">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">10</font></p>
</td>
</tr>
</table></div>
<p>
<br></p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br><br><br><font size="2"><b>NOTE 2 - <u>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u></b>  <b>(CONTINUED)</b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Cash and Cash Equivalents</u></b></font><br><br><font size="2">For purposes of the condensed consolidated statements of cash flow, the Company considers all highly liquid debt instruments purchased with a </font><br><font size="2">maturity of three months or less, unless restricted as to use, to be cash equivalents. At various times throughout the years the Company had </font><br><font size="2">amounts on deposit at financial institutions in excess of federally insured limits.</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Income Taxes</u></b></font><br><br><font size="2">The Company has adopted the provisions of Statement of Financial Accounting Standards No. 109 (the Statement), Accounting for Income </font><br><font size="2">Taxes. The Statement requires an asset and liability approach for
 financial accounting and reporting for income taxes, and the recognition of </font><br><font size="2">deferred tax assets and liabilities for the temporary differences between the financial reporting bases and tax bases of the Company's assets and </font><br><font size="2">liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled.</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Fair Value of Financial Instruments</u></b></font><br><br><font size="2">The carrying amounts of the Company's financial instruments, including cash and cash equivalents, accounts payable, and accrued expenses, </font><br><font size="2">officer loans payable approximate fair values because of the short maturities of these instruments.</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Stock-Based Compensation</u></b></font><br><br><font size="2">Employee stock awards under the Company's compensation plans are accounted for in accordance w
ith Statement of Financial Accounting </font><br><font size="2">Standards No. 123 (Revised 2004), "<i>Share-Based Payment</i>" ("SFAS 123R").  SFAS 123R requires that compensation cost related to share-based </font><br><font size="2">payment transactions be recognized in the financial statements. Share-based payment transactions within the scope of SFAS 123R include stock </font><br><font size="2">options, restricted stock plans, performance-based awards, stock appreciation rights, and employee share purchase plans.  The provisions of </font><br><font size="2">SFAS 123R, as amended, are effective for small business issuers beginning as of the next fiscal year after December&nbsp;15, 2005.  Accordingly, the </font><br><font size="2">Company implemented the revised standard in the first quarter of fiscal year 2007. </font><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br></p align="right">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">11</font></p>
</td>
</tr>
</table></div>
<p>
<br></p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br><br><br><font size="2"><b>NOTE 2 - <u>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u></b>  <b>(CONTINUED)</b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Stock-Based Compensation</u> (Continued)</b></font><br><br><font size="2">The Company measures compensation expense for its non-employee stock-based compensation under the Financial Accounting Standards Board </font><br><font size="2">(FASB) Emerging Issues Task Force (EITF) Issue No. 96-18, "<i>Accounting for Equity Instruments that are Issued to Other Than Employees for </i></font><br><font size="2"><i>Acquiring, or in Conjunction with Selling, Goods or Services</i>". The fair value of the option issued is used to measure the transaction, as this is </font><br><font size="2">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 </font><br><font size="2">the commitment for performance by the counterparty has been reached or the c
ounterparty's performance is complete. The fair value of the equity </font><br><font size="2">instrument is charged directly to compensation expense and additional paid-in capital.</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Recent Accounting Pronouncements</u></b></font><br><br><font size="2">In May&nbsp;2005, the FASB issued SFAS No.&nbsp;154, "Accounting Changes and Error Corrections." SFAS No.&nbsp;154 replaces Accounting Principles </font><br><font size="2">Board ("APB") Opinion No.&nbsp;20, "Accounting Changes" and SFAS No.&nbsp;3, "Reporting Accounting Changes in Interim Financial Statements." </font><br><font size="2">SFAS No.&nbsp;154 requires retrospective application to prior periods' financial statements of a voluntary change in accounting principle unless it is </font><br><font size="2">impracticable. APB No.&nbsp;20 previously required that most voluntary changes in accounting principle be recognized by including the cumulative </font><br><font size="2">effect o
f changing to the new accounting principle in net income in the period of the change. SFAS No.&nbsp;154 is effective for accounting changes </font><br><font size="2">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 </font><br><font size="2">on the Company's financial position, results of operations, or cash flows.</font><br><br><font size="2">In February&nbsp;2006, the FASB issued SFAS No.&nbsp;155, "Accounting for Certain Hybrid Financial Instruments, an amendment of FASB Statements </font><br><font size="2">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 </font><br><font size="2">Beneficial Interests in Securitized Financial Assets," and permits fair value remeasurement for any hybrid financial instrument that contains an </font><br><font size="2">embedded derivative that otherwise would require bifu
rcation, clarifies which interest-only strips and principal-only strips are not subject to the </font><br><font size="2">requirements of SFAS No.&nbsp;133, establishes a requirement to evaluate interests in securitized financial assets to identify interests that are </font><br><font size="2">freestanding derivatives or that are hybrid financial instruments that contain an embedded derivative requiring bifurcation, clarifies that </font><br><font size="2">concentrations of credit risk in the form of subordination are not embedded derivatives and amends SFAS No.&nbsp;140 to eliminate the prohibition on </font><br><font size="2">a qualifying special-purpose entity from holding a derivative financial instrument that pertains to a beneficial interest other than another </font><br><font size="2">derivative financial instrument. SFAS No.&nbsp;155 is effective for all financial instruments acquired or issued after the beginning of the first fiscal </font><br><font size="2">year that begins after September&nbsp;15, 2
006. The adoption of FAS 155 did not have a material impact on the Company's financial position, results </font><br><font size="2">of operations, or cash flows.</font><br><br><br></p align="right">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">12</font></p>
</td>
</tr>
</table></div>
<p>
<br></p align="center">
<div style="position:relative; left: -5"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br><br><br><font size="2"><b>NOTE 2 - <u>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </u>(CONTINUED)</b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Recent Accounting Pronouncements</u></b> <b>(Continued)</b></font><br><br><font size="2">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." </font><br><font size="2">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 </font><br><font size="2">entering into a servicing contract under a transfer of the servicer's financial assets that meets the requirements for sale accounting, a transfer of </font><br><font size="2">the servicer's financial assets to a qualified special-purpose entity in a  guaranteed mortgage securitization in which the transferor retains all of </font><br><font size="2">the resulting securities and classifies them as e
ither available-for-sale or trading securities in accordance with SFAS No.&nbsp;115, "Accounting for </font><br><font size="2">Certain Investments in Debt and Equity Securities" and an acquisition or assumption of an obligation to service a financial asset that does not </font><br><font size="2">relate to financial assets of the servicer or its consolidated affiliates.<b> </b></font><br><br><font size="2">Additionally, SFAS No.&nbsp;156 requires all separately recognized servicing assets and servicing liabilities to be initially measured at fair value, </font><br><font size="2">permits an entity to choose either the use of an amortization or fair value method for subsequent measurements, permits at initial adoption a one-</font><br><font size="2">time reclassification of available-for-sale securities to trading securities by entities with recognized servicing rights and requires separate </font><br><font size="2">presentation of servicing assets and liabilities subsequently measured at fair value and additio
nal disclosures for all separately recognized </font><br><font size="2">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 </font><br><font size="2">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.</font><br><br><font size="2">In September 2006, The Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards ("SFAS") No. </font><br><font size="2">157, "Fair Value Measurement" ("SFAS No. 157"). This standard provides guidance for using fair value to measure assets and liabilities. SFAS </font><br><font size="2">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 </font><br><font size="2">value in any new circumstances. Prior to SFAS No. 157, the methods for measuring fair value were
 diverse and inconsistent, especially for items </font><br><font size="2">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 </font><br><font size="2">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 </font><br><font size="2">No. 157 also requires expanded disclosure of the effect on earnings for items measured using unobservable data. SFAS No. 157 is effective for </font><br><font size="2">financial statements issued for fiscal years beginning after November 15, 2007, and interim periods within those fiscal years. The Company is </font><br><font size="2">currently evaluating the impact of this statement on its financial statements and expects to adopt SFAS No.157 January 31, 2008.</font><br><br><br><br></p align="right">
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<td width="714.666488" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">13</font></p>
</td>
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</table></div>
<p>
</p align="center">
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<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br><br><br><font size="2"><b>NOTE 2 - <u>SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </u>(CONTINUED)</b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Recent Accounting Pronouncements</u></b> <b>(Continued)</b></font><br><br><font size="2">In September 2006, the FASB issued SFAS No. 158, "Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans -- An </font><br><font size="2">Amendment of FASB Statements No. 87, 88, 106, and 132R."  This standard requires an employer to: (a) recognize in its statement of financial </font><br><font size="2">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 </font><br><font size="2">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 </font><br><font size="2">a defined benefit postretirement plan in the year in which the changes 
occur. Those changes will be reported in comprehensive income. The </font><br><font size="2">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 </font><br><font size="2">after December 15, 2006. The requirement to measure plan assets and benefit obligations as of the date of the employer's fiscal year-end </font><br><font size="2">statement of financial position is effective for fiscal years ending after December 15, 2008. The Company is evaluating the impact of this </font><br><font size="2">statement on its financial statements and believes that such impact may be material.</font><br><br><br><font size="2"><b>NOTE 3 <u>OTHER ACCRUED EXPENSES</u></b></font><br><br><font size="2">This account represents accrued officer's payroll and related payroll taxes. </font><br><br><br><font size="2"><b>NOTE 4 - <u>OFFICER LOANS PAYABLE</u></b></font><br><br><font size="2">For the six months ended October 31, 2006, the Compan
y received working capital advances from an officer of the Company which were repaid </font><br><font size="2">during the six months ended October 31, 2007 without interest.  </font><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br></p align="right">
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<td width="714.666488" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">14</font></p>
</td>
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</table></div>
<p>
</p align="center">
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<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br><br><font size="2"><b>NOTE 5 - <u>STOCKHOLDERS' EQUITY</u> </b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Common Stock</u> </b></font><br><br><font size="2">The Company has 50,000,000 shares authorized and 31,624,658 shares issued and outstanding at October 31, 2007.</font><br><br><font size="2">On May 18, 2007, the Company entered into an Agreement and Plan of Merger with Biomerk, Inc., a privately owned company, whereby the </font><br><font size="2">Company issued 4,000,000 restricted shares of its common stock to acquire 100% of the outstanding stock of Biomerk, Inc.</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><u>Stock Options</u></b></font><br><br><font size="2">On May 15, 2007, the Company entered into a consulting agreement to issue five hundred thousand options, exercisable over a five-year period </font><br><font size="2">based on a fair value exercise price on the date of issuance ($0.30) exercisable expiring through May 15, 2012 f
or services to be rendered over </font><br><font size="2">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 </font><br><font size="2">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 </font><br><font size="2">annualized volatility rate of 100% and a bond interest rate of 4.43%.  Amortization expense for services rendered was $32,118 for the six months </font><br><font size="2">ended October 31, 2007. On May 15, 2007, the Company entered into a consulting agreement to issue twenty- five thousand options, exercisable </font><br><font size="2">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 </font><br><font size="2">to be rendered over one year.  The options vest on May 15, 2008 and have been valued at $5,733 using the Black-Scholes Mo
del with an </font><br><font size="2">annualized volatility rate of 100% and a bond interest rate of 4.43%.  Amortization expense for services rendered was $2,628 for the six months </font><br><font size="2">ended October 31, 2007.   On October 10, 2007, the Company entered into a consulting agreement to issue five hundred thousand options, </font><br><font size="2">exercisable over a five-year period based on a fair value exercise price on the date of issuance ($0.75) exercisable expiring through October 10, </font><br><font size="2">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 </font><br><font size="2">upon the second anniversary of the grant date and 166,670 upon the third anniversary of the grant date and have been valued at $336,287 using </font><br><font size="2">the Black-Scholes Model with an annualized volatility rate of 141% and a bond interest rate of 4.38%.  Amortization expense for services </font>
<br><font size="2">rendered was $6,449 for the six months ended October 31, 2007.</font><br><br><br><br><br><br><br><br><br><br></p align="right">
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<font size="3" color="#000080">15</font></p>
</td>
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</table></div>
<p>
</p align="center">
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<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC. AND SUBSIDIARIES</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>(FORMERLY CHAMPIONS SPORTS, INC. AND SUBSIDIARIES)</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="center">
<font size="2"><b>OCTOBER 31, 2007 AND 2006 (UNAUDITED)</b></font></p align="center">
</td>
</tr>
</table></div>
<p>
<br><br><br><font size="2"><b>NOTE 6 - <u>GOING CONCERN</u></b></font><br><br><font size="2">As shown in the accompanying condensed consolidated financial statements, the Company has sustained net operating losses for the years ended </font><br><font size="2">April 30, 2007 and 2006 and has sustained large accumulated deficits that raise substantial doubt about its ability to continue as a going concern.</font><br><br><font size="2">The Company's future success is dependent upon its ability to achieve profitable operations and generate cash from operating activities, and upon </font><br><font size="2">additional financing. There is no guarantee that the Company will be able to raise enough capital or generate revenues to sustain its operations. </font><br><font size="2">The Company's operations are generating revenues through its administrative services and plans to develop service revenues from pharmaceutical </font><br><font size="2">and biotechnology companies through its preclinical services. The Company
 is additionally attempting to secure financing for future </font><br><font size="2">development. </font><br><br><br><font size="2">The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.</font><br><br><br><font size="2"><b>NOTE 7 - <u>PROVISION FOR INCOME TAXES</u></b></font><br><br><font size="2">Deferred income taxes will be determined using the liability method for the temporary differences between the financial reporting basis and </font><br><font size="2">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 </font><br><font size="2">when the temporary differences are included in the Company's consolidated tax return. Deferred tax assets and liabilities are recognized based on </font><br><font size="2">anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities 
and their </font><br><font size="2">respective tax bases.</font><br><br><font size="2">At October 31, 2007 and 2006, deferred tax assets consist of the following: </font><br></p>
<div style="position:relative; left: 27"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p align="center">
<font size="2"><u>2007</u></font></p align="center">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<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">2,534,700&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 align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,439,876&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" bgcolor=#CCFFFF>
<p>
<font size="2">Less:  valuation allowance           </font></p>
</td>
<td width="89.333311" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">(2,534,700)</font></p align="right">
</td>
<td width="11.999997" colspan="1" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
<td width="89.333311" colspan="2" rowspan="1" bgcolor=#CCFFFF>
<p align="right">
<font size="2">(2, 439,876)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="257.333269" colspan="1" rowspan="1" >
<p>
<font size="2">Net deferred tax asset</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p>
<font size="2">$</font></p>
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-0-&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 align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-0-&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="449.333221" colspan="6" rowspan="1" bgcolor=#CCFFFF>
&nbsp;</td>
</tr>
</table></div>
<p>
<br><font size="2">At October 31, 2007 and 2006, the Company had federal net operating loss carryforwards in the approximate amounts of $7,241,240 and </font><br><font size="2">$6,971,075 available to offset future taxable income. The Company established valuation allowances equal to the full amount of the deferred tax </font><br><font size="2">assets due to the uncertainty of the utilization of the operating losses in future periods. </font><br><br><br><br><br><br><br><br><br><br></p align="right">
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<tr valign="top">
<td width="714.666488" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="3" color="#000080">16</font></p>
</td>
</tr>
</table></div>
<p>
<br><br><font size="2">Item 2.&nbsp;&nbsp;&nbsp;Management's Discussion and Analysis or Plan of Operation</font><br><br><font size="2"><b>SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS</b></font><br><br><font size="2">&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 </b></font><br><font size="2"><b>the Securities Exchange Act that inherently involve risk and uncertainties.  The Company generally uses words such as "believe," </b></font><br><font size="2"><b>"may," "could," "will," "intend," "estimate," "expect," "anticipate," "plan," "likely," "promise" and similar expressions to identify </b></font><br><font size="2"><b>forward-looking statements.  One should not place undue reliance on these forward-looking statements.  The Company's actual results </b></font><br><font size="2"><b>could differ materially from those anticipated in the forward-looking statements for many unforeseen fa
ctors, which may include, but </b></font><br><font size="2"><b>are not limited to, changes in general economic conditions, the ongoing threat of terrorism, ability to have access to financing sources on </b></font><br><font size="2"><b>reasonable terms and other risks that are identified under "RISK FACTORS" of the Company's most recent Form 10-KSB. Although </b></font><br><font size="2"><b>the Company believes the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the </b></font><br><font size="2"><b>date on which the statements are made, and the Company's future results, levels of activity, performance or achievements may not meet </b></font><br><font size="2"><b>these expectations.  The Company does not intend to update any of the forward-looking statements after the date of this document to </b></font><br><font size="2"><b>conform these statements to actual results or to changes in the Company's expectations, except as required by law. </b></font><br
><br><font size="2"><b>Overview</b></font><br><br><font size="2">&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 </font><br><font size="2">engaged in the acquisition and early stage development of a portfolio of new therapeutic drug candidates, in providing preclinical services to </font><br><font size="2">pharmaceutical and biotechnology companies and in providing administrative services in the field of oncology that the Company hopes will </font><br><font size="2">improve methods and approaches to disease treatment. Our current plan calls for the development of a management team, selection and </font><br><font size="2">appointment of new members to our Board of Directors, formation of a Scientific Advisory Board and securing additional longer term funding to </font><br><font size="2">continue the development of the Company's preclinical platform and the development and acquisitio
n of our drug portfolio and other novel </font><br><font size="2">technologies. This is being accomplished by drawing upon the established expertise, knowledge and insight of experts, including two of the </font><br><font size="2">Company's Directors and significant shareholders, Dr. David Sidransky and Dr. Manuel Hidalgo, who have wide-ranging contacts in the </font><br><font size="2">pharmaceutical and biotechnology industry, academia and government. Dr. Sidransky is the Chairman of the Board of Directors and Dr. Hidalgo </font><br><font size="2">is the Company's Scientific Advisor.</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We plan to evaluate new drug candidates and develop a portfolio of new therapeutic drug candidates through pre-clinical trials and possibly </font><br><font size="2">early phase ("first in man") clinical trials.  If therapeutic drug candidates reach this early stage of development, the Company intends to partner </font><br><font size="2">with, sell or licens
e them to pharmaceutical and/or biotechnology companies, as appropriate. Management believes this strategy will enable the </font><br><font size="2">Company to leverage the competencies of these partners or licensees to maximize the Company's return on investment in a relatively short time </font><br><font size="2">frame. The Company believes that this model is unlike that of many new biotechnology companies that look to bring the process of drug </font><br><font size="2">development through all phases of discovery, development, regulatory approvals, and marketing, which requires a very large financial </font><br><font size="2">commitment and a long time, typically more than a decade, to realize.</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October, 2007, Dr. David Sidransky was appointed the Chairman of the Board of Directors. Dr. Sidransky is a renowned oncologist </font><br><font size="2">and research scientist named and profiled by TIME magazine in 2001 as one of the top phys
icians and scientists in America, recognized for his </font><br><font size="2">work with early detection of cancer. He is the Director of the Head and Neck Cancer Research Division at Johns Hopkins University School of </font><br><font size="2">Medicine and Professor of Oncology, Otolaryngology, Cellular &amp; Molecular Medicine, Urology, Genetics, and Pathology at John Hopkins </font><br><font size="2">University and Hospital. Dr. Sidransky is one of the five most highly cited researchers in clinical and medical journals in the world, in the field of </font><br><font size="2">oncology during the past decade, with over 300 peer-reviewed publications. He has contributed more than 40 cancer reviews and chapters. Dr. </font><br><font size="2">Sidransky is a founder of a number of biotechnology companies and holds numerous biotechnology patents. He has served as Vice Chairman of </font><br><font size="2">the Board of Directors, and presently is a director of ImClone. He is a Vice Chairman of Alfacell and serves 
on the Board of Directors of </font><br><font size="2">Xenomics. He is serving and has served on scientific advisory boards of MedImmune, Roche, Amgen and Veridex, LLC (a Johnson &amp; Johnson </font><br><font size="2">diagnostic company), among many others. Dr. Sidransky serves as Director (2005-2008) of American Association for Cancer Research (AACR).  </font><br><font size="2">He was the chairperson of AACR International Conferences (2006 and 2007) on Molecular Diagnostics in Cancer Therapeutic Development: </font><br><font size="2">Maximizing Opportunities for Individualized Treatment.  Dr. Sidransky is the recipient of a number of awards and honors, including the 1997 </font><br><font size="2">Sarstedt International Prize from the German Society of Clinical Chemistry, the 1998 Alton Ochsner Award Relating Smoking and Health by the </font><br><font size="2">American College of Chest Physicians and the 2004 Hinda and Richard Rosenthal Award from the American Association of Cancer Research.</font><br><br><
font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In May 2007, we acquired Biomerk, Inc., a company focused on generating a novel preclinical platform of human cancer tumor immune-</font><br><font size="2">deficient mice xenografts (Biomerk Tumorgrafts&#8482;).  Biomerk Tumorgrafts&#8482;, unlike standard cell line derived xenografts, are implanted directly </font><br><font size="2">from primary human cancer tumors and never passaged in cell tissue culture. The Company believes that these xenografts more closely reflect </font><br><font size="2">human cancer biology and are more predictive of clinical outcome. The Company has several patent applications relating to xenograft models </font><br><font size="2">used for identifying potentially active chemotherapeutic agents. The Company believes that it as well as biotechnology and  pharmaceutical </font><br><font size="2">companies, as part of their drug discovery and post marketing efforts, may benefit from utilizing the Company's preclinical services th
at are </font><br><font size="2">more predictive and that might provide for a faster and less expensive path for drug approval. These services will utilize Biomerk Tumorgrafts&#8482; </font><br><font size="2">to evaluate tumor sensitivity/resistance to various single and combination standard and novel chemotherapy agents. </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In February 2007, we acquired the patent rights to two Benzoylphenylurea (BPU) sulfur analog compounds that have shown promising </font><br><font size="2">potent activity against in vitro and in vivo models of prostate and pancreatic cancer (Journal of Medicinal Chemistry, 2006, Vol. 49, No.7, 2357-</font><br><font size="2">2360 and American Association for Cancer Research Journal of Molecular Cancer Therapeutics, Vol. 6, Issue 5, May 2007, 1509-16.). The </font><br><font size="2">acquired rights include pending U.S. Patent Application and the corresponding international patent application filed under the Patent Coopera
tion </font><br><font size="2">Treaty (PCT), both entitled Design and Synthesis of Novel Tubulin Polymerization Inhibitors:  Benzoylphenylurea (BPU) Sulfur Analogs.  </font><br></p align="right">
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<font size="3" color="#000080">17</font></p>
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<font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additionally, we provide administrative services in the field of oncology by working with patient's physicians to establish and administer </font><br><font size="2">expert medical information panels for individuals to analyze medical records and test results, to assist in understanding conventional and research </font><br><font size="2">options and to identify and arrange third parties for testing, analysis and study of cancer tissues, as appropriate.</font><br><br><font size="2">&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 </font><br><font size="2">name "International Group, Inc.". In September 1985, the Company completed a public offering, and in January 1986, acquired the world-wide </font><br><font size="2">rights to the Champions sports them
e restaurant concept and subsequently changed its name to "Champions Sports, Inc." In 1997, the Company </font><br><font size="2">sold its Champions service mark and concept for sports themed restaurants&nbsp;to Marriott International, Inc. and since then until January 2007, had </font><br><font size="2">been seeking a new business direction.  In January 2007, the Company changed its name to Champions Biotechnology, Inc. to reflect the decision </font><br><font size="2">of the Company to focus on biotechnology. Since then the Company commenced the process of building a biotechnology company from the </font><br><font size="2">"ground up" as its new business approach.</font><br><br><font size="2"><b>Results of Operation</b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the six months ended October 31, 2007, the Company's net loss was $136,995 and the net loss for the three months ended October 31, </font><br><font size="2">2007 was $145,563. For the six months ended October 31, 200
6, the Company's net loss was $36,888 and the net loss for the three months ended </font><br><font size="2">October 31, 2006 was $19,568.  In the six months ended October 31, 2007, the Company began its operations as a biotechnology company while </font><br><font size="2">in the six months ended October 31, 2006, it had no operations. The Company acquired Biomerk, Inc. in May 2007. The Company's total assets </font><br><font size="2">at October 31, 2007 were $1,219,570. The Company's total assets at October 31, 2006 were $352.  </font><br><br><font size="2"><b>Revenues</b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's total operating revenues were $250,000 for the six months ended October 31, 2007 and $0.00 for the three months ended </font><br><font size="2">October 31, 2007. The Company generated revenues for the six months ended October 31, 2007 for providing administrative services in the field </font><br><font size="2">of oncology.</font><br><br><font size="2"><b>E
xpenses</b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the six months ended October 31, 2007, expenses were $396,989 and $150,198 for the three months ended October 31, 2007 compared </font><br><font size="2">to $36,888 for the six months ended October 31, 2006 and $19,568 for the three months ended October 31, 2006. The increased expenses </font><br><font size="2">represented the Company moving forward in executing its new business plan of building a biotechnology company. Supplies of $75,000 </font><br><font size="2">represented tumorgraft expenses and the rest of expenses were general and administrative expenses which were due to significant increase in the </font><br><font size="2">Company's operating activities for the administration and servicing of the expert medical information panels, increase in professional legal and </font><br><font size="2">accounting fees relating to the acquisition of Biomerk, Inc., fees associated with maintaining the Company's patent position 
and stock option </font><br><font size="2">based amortized compensation. For the six months ended October 31, 2006 the expenses of $36,888 were associated with the maintenance of the </font><br><font size="2">Company as it was seeking a new business direction</font><br></p align="right">
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<font size="3" color="#000080">.                             18</font></p>
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<br><font size="2"><b>Liquidity and Capital Resources</b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's cash position as of October 31, 2007 was $365,916, compared to $3,758 on April 30, 2007. For the six month period ended </font><br><font size="2">October 31, 2007, the Company's operations used $65,526.</font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company's working capital was a negative $28,427 at October 31, 2007 and a deficit of $441,065 at April 30, 2007.  This decrease in </font><br><font size="2">the working capital deficit was due to the operations of the Company during the six months ended October 31, 2007 after the acquisition, on May </font><br><font size="2">18, 2007, of Biomerk, Inc., a private company.  </font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company anticipates that the revenues generated for the six months ended October 31, 2007 and the Biomerk acquisition, which </font><br><font size="2"
>provided the Company with approximately $475,000 cash, may cover operating costs until longer term capital is obtained to finance the </font><br><font size="2">Company's future development. There is no assurance that this can be done on terms satisfactory to the Company.</font><br><br><font size="2"><b>Item 3.&nbsp;&nbsp;&nbsp;Controls and Procedures</b></font><br><br><font size="2">&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 </font><br><font size="2">maintaining disclosure controls and procedures designed to ensure that information required to be disclosed by the Company in the reports filed </font><br><font size="2">under the Securities Exchange Act, is recorded, processed, summarized and reported within the time periods specified by the SEC's rules and </font><br><font size="2">forms. Disclosure controls are also designed with the objective of ensuring that this inf
ormation is accumulated and communicated to the </font><br><font size="2">Company's management, including the Company's chief executive officer and chief financial officer, as appropriate, to allow timely decisions </font><br><font size="2">regarding required disclosure.</font><br><br><font size="2">&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 </font><br><font size="2">internal control system are met. Because of the inherent limitations of any internal control system, no evaluation of controls can provide absolute </font><br><font size="2">assurance that all control issues, if any, within a company have been detected.</font><br><br><font size="2">&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 </font><br><font size="2">financial reporting since, in t
he view of management, comparison with a framework was unwarranted because the size of the Company's current </font><br><font size="2">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 </font><br><font size="2">employ sufficient staffing resources to enable the Company to have adequate segregation of duties within its internal control system.  </font><br><br><font size="2">&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 </font><br><font size="2">controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the quarterly period ending October 31, </font><br><font size="2">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 </font><br><font size="2">such period, the Compa
ny's disclosure controls and procedures were not effective as required under Rules 13a-15(e) and 15d-15(e) under the </font><br><font size="2">Exchange Act. </font><br><br><font size="2">&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 </font><br><font size="2">accounting and disclosure matters and failure to perform timely and effective reviews. However, the size of the Company prevents it from being </font><br><font size="2">able to employ sufficient resources to enable the Company to have adequate segregation of duties within its internal control system. Management </font><br><font size="2">is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. When the Company is able to </font><br><font size="2">obtain sufficient funding and develop its management and staffing, it will apply the necessary corrective action to remed
y the weakness.</font><br><br></p align="right">
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<font size="3" color="#000080">19</font></p>
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<br><font size="2">&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 </font><br><font size="2">Report on Form 10-QSB that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial </font><br><font size="2">reporting. </font><br><br><font size="2"><b>Critical Accounting Policies</b></font><br><br><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the notes to the consolidated financial statements for the quarter ended October 31, 2007 included in the Company's Form 10-</b></font><br><font size="2"><b>QSB, the Company discussed those accounting policies that are considered to be significant in determining the results of operations and </b></font><br><font size="2"><b>our financial position. We believe that the accounting principles utilized by us conform to accounting principles generally accepted in the </b></fon
t><br><font size="2"><b>United States of America.</b></font><br><br><br><font size="2"><b>Part II.&nbsp;&nbsp;&nbsp;Other Information</b></font><br><br><font size="2"><b>Item 1.&nbsp;&nbsp;&nbsp;Legal Proceedings</b></font><br><br><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>None</font><br><br><font size="2"><b>Item 2.&nbsp;&nbsp;&nbsp;Unregistered Sales of Equity Securities and Use of Proceeds</b></font><br><br><font size="2"> 	None</font><br><br><font size="2"><b>Item 3.&nbsp;&nbsp;&nbsp;Defaults Upon Senior Securities</b></font><br><br><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>None</font><br><br><font size="2"><b>Item 4.&nbsp;&nbsp;&nbsp;Submission of Matters to a Vote of Security Holders</b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None</font><br><br><font size="2"><b>Item 5.&nbsp;&nbsp;&nbsp;Other Information</b></font><br><br><font size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>None</font><br><br><font size="2"><b>Item 6.
&nbsp;&nbsp;&nbsp;Exhibits </b></font><br><br><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.1	Certification of the Chief Executive and Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a).</font><br><br><font size="2">32.1	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.</font><br></p align="right">
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<font size="3" color="#000080">20</font></p>
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<font size="2"><b>SIGNATURES</b></font></p align="center">
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<br><br><font size="2">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 </font><br><font size="2">undersigned hereunto duly authorized.</font><br></p>
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<p>
<font size="2"><b>CHAMPIONS BIOTECHNOLOGY, INC.</b></font></p>
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<p>
<font size="2"><u>/s/ James Martell</u></font></p>
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<p>
<font size="2">James Martell</font></p>
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<p>
<font size="2">CEO, President and CFO</font></p>
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<font size="2">Date: December 17, 2007</font></p>
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<br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br><br></p align="right">
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<font size="3" color="#000080">21</font></p>
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<font size="2"><b>CERTIFICATION OF CHIEF EXECUTIVE OFFICER</b></font></p align="center">
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<font size="2"><b>Section 302 Certification</b></font></p align="center">
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<br><font size="2">I, JAMES MARTELL, certify that:</font><br><br><font size="2">(1) I have reviewed this quarterly report on Form 10-QSB of CHAMPIONS BIOTECHNOLOGY, INC., a Delaware corporation (the </font><br><font size="2">"registrant");</font><br><br><font size="2">(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  </font><br><font size="2">necessary to make the statements made, in light of the  circumstances  under which such statements were made, not  misleading  with respect to </font><br><font size="2">the period covered by this quarterly report;</font><br><br><font size="2">(3) Based on my  knowledge,  the  financial  statements,  and  other  financial information  included in this quarterly  report,  fairly present in all </font><br><font size="2">material respects the financial  condition,  results of operations  and cash flows of the registrant as of, and for, the periods presented in this </font><br><font
 size="2">quarterly report;</font><br><br><font size="2">(4) The  registrant's  other  certifying  officers  and I are  responsible  for establishing and maintaining  disclosure  controls and procedures (as </font><br><font size="2">defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:</font><br><br><font size="2">&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  </font><br><font size="2">subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being   prepared;</font><br><font size="2">&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 </font><br><font size="2">this  quarterly report (the "Evaluation Date"); and</font><br><font size="2">&
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 </font><br><font size="2">our evaluation as of the Evaluation Date;</font><br><br><font size="2">(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 </font><br><font size="2">committee of the registrant's board of directors (or persons performing the equivalent functions):</font><br><br><font size="2">&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,  </font><br><font size="2">process,  summarize and report  financial data and have  identified for the registrant's auditors any material weaknesses in internal controls; and</font><br><font size="2">&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  </font><br><font size="2">internal controls; and</font><br><br><font size="2">(6) The registrant's  other  certifying  officers and I have  indicated in this quarterly report whether there were significant  changes in internal </font><br><font size="2">controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent  evaluation,  including any </font><br><font size="2">corrective  actions with regard to significant deficiencies and material weaknesses.</font><br><br><font size="2">Date:  December 17, 2007</font><br></p>
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<font size="2">By:&nbsp;</font></p>
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<p>
<font size="2"><u>/s/ James Martell</u></font></p>
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&nbsp;</td>
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<p>
<font size="2">James Martell</font></p>
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<p>
<font size="2">Chief Executive Officer</font></p>
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<br><br><br><br><br><br><br><br></p align="right">
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<font size="3" color="#000080">22</font></p>
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<font size="2"><b>CERTIFICATION OF CHIEF FINANCIAL OFFICER</b></font></p align="center">
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<font size="2"><b>Section 302 Certification</b></font></p align="center">
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<br><br><font size="2">I, James Martell, certify that:</font><br><br><font size="2">(1) I have reviewed this quarterly report on Form 10-QSB of CHAMPIONS BIOTECHNOLOGY, INC., a Delaware corporation (the </font><br><font size="2">"registrant");</font><br><br><font size="2">(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  </font><br><font size="2">necessary to make the statements made, in light of the  circumstances  under which such statements were made, not  misleading  with respect to </font><br><font size="2">the period covered by this quarterly report.</font><br><br><font size="2">(3) Based on my  knowledge,  the  financial  statements,  and  other  financial information  included in this quarterly  report,  fairly present in all </font><br><font size="2">material respects the financial  condition,  results of operations  and cash flows of the registrant as of, and for, the periods presented in this </font><br><fo
nt size="2">quarterly report; </font><br><br><font size="2">(4) The  registrant's  other  certifying  officers  and I are  responsible  for establishing and maintaining  disclosure  controls and procedures (as </font><br><font size="2">defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:</font><br><br><font size="2">&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 </font><br><font size="2">consolidated subsidiaries, is  made  known  to  us by  others  within  those  entities, particularly  during  the period in which  this  quarterly  </font><br><font size="2">report is being  prepared;</font><br><br><font size="2">&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 </font><br><font size="2">this quarterly report (the "
Evaluation Date"); and</font><br><br><font size="2">&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 </font><br><font size="2">our evaluation as of the Evaluation Date;</font><br><br><font size="2">(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 </font><br><font size="2">committee of the registrant's board of directors (or persons performing the equivalent functions):</font><br><br><font size="2">&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 </font><br><font size="2">record, process,  summarize and report  financial data and have  identified for the registrant's auditors any material weaknesses in internal </font><br><font size="2">c
ontrols; and</font><br><br><font size="2">&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  </font><br><font size="2">internal controls; and</font><br><br><font size="2">(6) The registrant's other certifying officers and I have indicated in this quarterly report whether there were significant changes in internal </font><br><font size="2">controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any </font><br><font size="2">corrective actions with regard to significant deficiencies and material weaknesses.</font><br><br><font size="2">Date: December 17, 2007</font><br></p>
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<font size="2">By:&nbsp;</font></p>
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<p>
<font size="2"><u>/s/ James Martell</u></font></p>
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<td width="35.999991" colspan="1" rowspan="1" >
&nbsp;</td>
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<td width="203.999949" colspan="2" rowspan="1" >
<p>
<font size="2">James Martell</font></p>
</td>
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&nbsp;</td>
<td width="203.999949" colspan="2" rowspan="1" >
<p>
<font size="2">Chief Financial Officer</font></p>
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<br><br><br><br><br><br><br><br><br></p align="right">
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<font size="3" color="#000080">23</font></p>
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<font size="2"><b>CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO</b></font></p align="center">
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<font size="2"><b>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</b></font></p align="center">
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<br><br><font size="2">In connection with the quarterly report of Champions Biotechnology, Inc. (the "Company") on Form 10-QSB for the six months ended October </font><br><font size="2">31, 2007 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned, in the capacities and </font><br><font size="2">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 </font><br><font size="2">of 2002, that to their knowledge:</font><br><br><font size="2">1.	The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and </font><br><br><font size="2">2.	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the </font><br><font size="2">Company. </font><br><br></p>
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<font size="2">Dated: December 17, 2007</font></p>
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<font size="2">By:&nbsp;</font></p>
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<font size="2"><u>/s/ James Martell</u></font></p>
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<font size="2">James M. Martell, Chief Executive Officer and</font></p>
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<font size="2">Chief Financial Officer</font></p>
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<font size="3" color="#000080">24</font></p>
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