                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                  FORM 10-QSB/A

                                   (Mark One)

|X| Amendment to Quarterly Report pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the period ended June 30, 2006.

                                       OR

|_| Transition report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 for the transition period from ____________ to ______________

                         Commission file number 0-26323

                            ADVANCED BIOTHERAPY, INC.
             (Exact name or registrant as specified in its charter)

Delaware                                                     51-0402415
(State of jurisdiction of                                    (IRS Employer
incorporation or organization)                               Identification No.)

                          6355 Topanga Canyon Boulevard
                                    Suite 510
                        Woodland Hills, California 91367
          (Address of principal executive offices, including zip code)

                                 (818) 883-6716
              (Registrant's telephone number, including area code)

Indicate by mark whether the Registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. |X| YES |_| NO

As of August 1, 2006, the Registrant had 54,348,346 shares of common stock,
$0.001 par value, outstanding.

      --------------------------------------------------------------------

<PAGE>

                          Introduction to Form 10-QSB/A

Advanced Biotherapy, Inc., filed its Form 10-QSB on August 21, 2006 ("Form
10-QSB"). The Form 10-QSB contains certain arithmetical errors in Part I.
Financial Statements, Statements of Cash Flow, column captioned "From Inception
(December 2, 1985) through June 30, 2006," which the Company hereby corrects by
reason of the filing of this Form 10-QSB/A. The specific items of this Form
10-QSB/A which contain corrections to the Form 10-QSB are set forth below as
corrected:

STATEMENTS OF CASH FLOW
-----------------------
                                                             From Inception
                                                           (December 2, 1985)
                                                                through
                                                             June 30, 2006
CASH FLOWS FROM OPERATING ACTIVITIES:
     Accrued interest paid by convertible debt:            $      2,878,020
     Increase (decrease) in liabilities:
         Accrued Interest                                  $          8,962
                  Net cash used in operating activities    $     (8,245,163)
CASH FLOWS FROM INVESTING ACTIVITIES:
     Acquisition of patents                                $     (1,263,706)
         Net cash used in investing activities             $     (1,649,045)
CASH FLOWS FROM FINANCING ACTIVITIES:
     Payments on notes payable                             $       (175,127)
         Net cash provided by financing activities         $      9,915,655


<PAGE>

                                TABLE OF CONTENTS

ITEM                                                                        PAGE

                                     PART I.

1. Financial Statements

   a.    Balance Sheets - June 30, 2006 (unaudited) and December 31,
         2005..................................................................1

   b.    Statements of Operations -- Three months ended June 30, 2006
         (unaudited), June 30, 2005 (unaudited); Six months ended June 30,
         2006 (unaudited), June 30, 2005 (unaudited); and from Inception
         through June 30, 2006
         (unaudited)...........................................................2

   c.    Corrected Statements of Cash Flows - Six months ended June 30, 2006
         (unaudited), June 30, 2005 (unaudited) and from Inception through
         June 30, 2006 (unaudited).............................................3

   d.    Notes to Financial Statements.........................................4

2. Management's Discussion and Analysis of Financial Condition and Results
   of Operations..............................................................10

3. Controls and Procedures....................................................13


                                 PART II.


2. Changes in Securities......................................................14


6. Exhibits and Reports on Form 8-K...........................................14

<PAGE>


PART I

ITEM 1.  FINANCIAL STATEMENTS

<TABLE>
<CAPTION>
ADVANCED BIOTHERAPY, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
BALANCE SHEETS
---------------------------------------------------------------------------------------------------------

                                                                               June 30,
                                                                                 2006        December 31,
                                                                              (Unaudited)        2005
                                                                             ------------    ------------
<S>                                                                          <C>             <C>
ASSETS

      CURRENT ASSETS
          Cash                                                               $     21,447    $     22,068
          Notes receivable - related party                                         46,619          46,619
          Interest receivable - related party                                      19,605          18,090
          Deposits and prepaid expenses                                                --              --
                                                                             ------------    ------------
               Total Current Assets                                                87,671          86,777
                                                                             ------------    ------------

      PROPERTY, PLANT AND EQUIPMENT, net                                          284,920         294,428
                                                                             ------------    ------------

      OTHER ASSETS
          Deferred loan origination fees, net of accumulated amortization              --           7,283
          Patents and patents pending, net of accumulated amortization            816,222         883,002
                                                                             ------------    ------------
               Total Other Assets                                                 816,222         890,285
                                                                             ------------    ------------

TOTAL ASSETS                                                                 $  1,188,813    $  1,271,490
                                                                             ============    ============


LIABILITIES AND STOCKHOLDERS' DEFICIT

      CURRENT LIABILITIES
          Accounts payable and accrued expenses                              $    189,823    $    246,776
          Accounts payable and accrued expenses - related party                   219,837         182,200
          Loan payable - related party                                            361,500              --
          Accrued interest on term and convertible debt                             8,962              --
          Current portion of term and convertible notes payable                 4,740,466       4,490,485
          Other Current Liabilities                                                    --              --
                                                                             ------------    ------------
               Total Current Liabilities                                        5,520,588       4,919,461
                                                                             ------------    ------------

      LONG-TERM DEBT
          Convertible notes payable, net of current portion                     1,362,624       1,286,134
          Note payable to related parties                                         127,631         127,631
                                                                             ------------    ------------
               Total Long-Term Debt                                             1,490,255       1,413,765
                                                                             ------------    ------------

      TOTAL LIABILITIES                                                         7,010,843       6,333,226
                                                                             ------------    ------------

      COMMITMENTS AND CONTINGENCIES                                                    --              --
                                                                             ------------    ------------

      STOCKHOLDERS' DEFICIT
          Preferred stock, par value $0.001; 20,000,000 shares authorized,
              no shares issued and outstanding                                         --              --
          Common stock, par value $0.001; 200,000,000 shares authorized,
              54,348,346 shares issued and outstanding                             54,347          54,347
          Additional paid-in capital                                            6,990,223       6,948,814
          Stock options and warrants                                            1,348,051       1,235,551
          Deficit accumulated during development stage                        (14,214,651)    (13,300,448)
                                                                             ------------    ------------
               Total Stockholders' Deficit                                     (5,822,030)     (5,061,736)
                                                                             ------------    ------------

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                  $  1,188,813    $  1,271,490
                                                                             ============    ============
</TABLE>

         The accompanying condensed notes are an integral part of these
                         interim financial statements.

                                       1
<PAGE>

<TABLE>
<CAPTION>
ADVANCED BIOTHERAPY, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF OPERATIONS
----------------------------------------------------------------------------------------------------------------------------------

                                                                                                                  From Inception
                                                Three Months Ended June 30,      Six Months Ended June 30,      (December 2, 1985)
                                               ----------------------------    ----------------------------          through
                                                   2006            2005            2006           2005            June 30, 2006
                                               (Unaudited)      (Unaudited)     (unaudited)     (unaudited)        (Unaudited)
                                               ------------    ------------    ------------    ------------    -------------------
<S>                                            <C>             <C>                 <C>         <C>             <C>
REVENUES                                       $         --    $         --              --    $         --    $            89,947
                                               ------------    ------------    ------------    ------------    -------------------

OPERATING EXPENSES
     Research and development                         2,303          72,746           4,900         166,431              3,920,434
     Promotional fees                                    --             212              --             212                 62,570
     Professional fees                               59,573          38,793         101,991         109,456              3,063,065
     Business development                                --                          39,500                                121,000
     Vesting of stock options and warrants               --         418,000         151,700         590,200              1,383,309
     Warrants - scientific advisory board                --           1,900              --           1,900                  1,900
     Directors' fees                                     --                              --                                299,053
     Depreciation and amortization                   24,067          25,354          50,172          50,061                930,578
     Administrative salaries and benefits            11,575          71,184         103,771         140,361              1,481,769
     Insurance                                           --          18,256              --          36,513                324,452
     Shareholder relations and transfer fees          3,000           3,000           6,000          11,690                317,398
     Rent                                             5,100           5,100          10,200          10,200                361,578
     Travel and entertainment                         1,349           5,313           1,384          18,881                332,183
     Telephone and communications                     1,460           1,157           2,303           2,948                 64,720
     Office                                             371           1,409           1,742           3,182                 83,610
     General and administrative                       8,190           9,116          12,252          15,100                764,008
                                               ------------    ------------    ------------    ------------    -------------------
        Total Operating Expenses                    116,988         671,540         485,915       1,157,135             13,511,627
                                               ------------    ------------    ------------    ------------    -------------------

LOSS FROM OPERATIONS                               (116,988)       (671,540)       (485,915)     (1,157,135)           (13,421,680)

OTHER INCOME (EXPENSES)
     Miscellaneous income                                --                              --                                 27,682
     Interest and dividend income                       916           2,432           1,854           2,682                173,293
     Internal gain on sale of securities                 --           1,237              --           3,087                157,520
     Forgiveness of debt                                 --                              --                              2,192,837
     Forgiveness of payables                             --                              --                                 45,396
     Loss on disposal of office equipment                --                              --                                 (2,224)
     Loss on impairment or
       abandonment of patents                       (92,500)                        (92,500)                              (136,175)
     Interest expense                              (171,218)       (143,091)       (337,642)       (282,662)            (3,251,300)
                                               ------------    ------------    ------------    ------------    -------------------
        Total Other Income (Expenses)              (262,802)       (139,422)       (428,288)       (276,893)              (792,971)
                                               ------------    ------------    ------------    ------------    -------------------

LOSS BEFORE INCOME TAXES                           (379,790)       (810,962)       (914,203)     (1,434,028)           (14,214,651)

INCOME TAXES                                             --              --              --              --                     --
                                               ------------    ------------    ------------    ------------    -------------------

NET LOSS                                       $   (379,790)   $   (810,962)       (914,203)   $ (1,434,028)   $       (14,214,651)
                                               ============    ============    ============    ============    ===================

     BASIC AND DILUTED NET LOSS
     PER COMMON SHARE                          $      (0.01)   $      (0.02)          (0.02)   $      (0.03)
                                               ============    ============    ============    ============

     WEIGHTED AVERAGE NUMBER OF
     BASIC AND DILUTED COMMON STOCK
     SHARES OUTSTANDING                          54,348,346      54,032,557      54,348,346      54,032,557
                                               ============    ============    ============    ============
</TABLE>

         The accompanying condensed notes are an integral part of these
                         interim financial statements.

                                       2
<PAGE>

<TABLE>
<CAPTION>
ADVANCED BIOTHERAPY, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
STATEMENTS OF CASH FLOWS
------------------------------------------------------------------------------------------------------------------------------

                                                                                                             From Inception
                                                                                Period Ended June 30,       (December 2, 1985)
                                                                            ----------------------------          through
                                                                                2006            2005          June 30, 2006
                                                                            ------------    ------------    -----------------
<S>                                                                         <C>             <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net (loss)                                                             $   (914,203)   $ (1,434,028)   $     (14,214,651)
     Adjustments to reconcile net loss to cash
     used in operating activities:
         Depreciation and amortization                                            50,172          50,061              872,690
         Loss on disposal of equipment                                                                --                2,224
         Loss on impairment of patents                                            92,500              --              136,175
         Investment income                                                                            --             (157,520)
         Expenses paid through issuance of common stock                                               --              291,339
         Expenses paid through issuance                                                                                    --
           of common stock warrants and options                                  151,700         632,600            1,551,162
         Accrued interest paid by convertible debt                               326,471         280,325            2,878,020
         Expenses paid through contribution                                                                                --
           of additional paid-in capital                                           2,209           2,209               66,955
         Organization costs                                                                           --               (9,220)
         Decrease (increase) in assets:                                                                                    --
             Marketable securities                                                                    --                   --
             Deposits and prepaid expenses                                        13,076              --
             Interest receivable                                                  (1,515)         (1,515)             (60,173)
             Deferred loan origination cost                                                           --             (157,295)
         Increase (decrease) in liabilities:                                                                               --
             Accounts payable and accrued expenses                               (56,953)         79,875              267,364
             Accounts payable and accrued expenses - related parties              37,637          14,350              278,805
             Accrued Interest                                                      8,962              --                8,962
                                                                            ------------    ------------    -----------------
                Net cash used in operating activities                           (303,020)       (363,047)          (8,245,163)
                                                                            ------------    ------------    -----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchase of fixed assets                                                                       (858)            (385,339)
     Acquisition of patents                                                      (59,101)        (66,786)          (1,263,706)
                                                                            ------------    ------------    -----------------
                Net cash used in investing activities                            (59,101)        (67,644)          (1,649,045)
                                                                            ------------    ------------    -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from issuance of common stock                                           --              --            2,457,254
     Internal gain on sale of securities                                              --              --              157,520
     Proceeds from convertible notes                                                  --         100,000            6,754,000
     Proceeds from notes payable                                                 361,500              --              750,008
     Payments on notes payable                                                        --              --             (175,127)
                                                                            ------------    ------------    -----------------
                Net cash provided by financing activities                        361,500         100,000            9,915,655
                                                                            ------------    ------------    -----------------

     Net increase (decrease) in cash                                                (621)       (330,691)              21,447

     Cash beginning                                                               22,068         367,337                   --
                                                                            ------------    ------------    -----------------
     Cash, ending                                                           $     21,447    $     36,646    $          21,447
                                                                            ============    ============    =================

SUPPLEMENTAL CASH FLOW DISCLOSURES:

     Interest expense paid                                                  $         --    $         --    $         341,166
                                                                            ============    ============    =================
     Income taxes paid                                                      $         --    $         --    $              --
                                                                            ============    ============    =================
NON-CASH FINANCING AND INVESTING ACTIVITIES:
     Common stock issued for a loan payable                                 $         --    $         --    $         213,381
     Common stock issued for notes receivable                               $         --    $         --    $         246,619
     Common stock returned in payment of
         notes and interest receivable                                      $         --    $         --    $         240,568
     Common stock issued on cashless exercise of warrants                   $         --    $         --    $          15,011
     Accrued interest paid by convertible debt                              $    354,471    $    280,325    $       2,878,020
     Common stock issued for convertible debt                               $         --    $         --    $         707,156
     Forgiveness of debt                                                    $         --    $         --    $         145,400
</TABLE>

         The accompanying condensed notes are an integral part of these
                         interim financial statements.

                                       3
<PAGE>

ADVANCED BIOTHERAPY, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED NOTES TO FINANCIAL STATEMENTS
June 30, 2006

NOTE 1 - BUSINESS ORGANIZATION AND BASIS OF PRESENTATION

Advanced Biotherapy, Inc. was originally incorporated December 2, 1985 under the
laws of the State of Nevada as Advanced Biotherapy Concepts, Inc. On July 14,
2000, the Company incorporated a wholly owned subsidiary, Advanced Biotherapy,
Inc. in the State of Delaware. On September 1, 2000, the Company merged with its
wholly owned subsidiary, effectively changing its name to Advanced Biotherapy,
Inc. (hereinafter "the Company" or "ABI") and its domicile to Delaware.

The Company is involved in the research and development for the treatment of
autoimmune diseases in humans, most notably, multiple sclerosis, rheumatoid
arthritis, and certain autoimmune skin diseases and AIDS. The Company conducts
its research in Maryland. The Company's fiscal year-end is December 31. The
Company is a development stage enterprise.

The Company has been in the development stage since its formation in 1985 and
has not realized any significant revenues from its planned operations. It is
primarily engaged in the research and development of the treatment of autoimmune
diseases in humans, most notably, multiple sclerosis and rheumatoid arthritis.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern.

For the six months ended June 30, 2006, the Company incurred a net loss of
$914,203 and had an accumulated deficit during the development stage of
$14,214,651. The Company has limited funds for research and development costs
and operations and it does not have a source of revenues to continue its
operations, research and development costs or to service its debt at maturity.
For the twelve-month period subsequent to June 30, 2006, the Company anticipates
that its minimum cash requirements will be approximately $4,930,000 to repay the
current portion of convertible and term debt, before consideration of its going
concern cash requirements.. The Company is currently in default on convertible
debt in the amount of $4,740,466 and term debt in the amount of approximately
$190,000. The future of the Company is dependent upon securing additional debt
or equity funding and future profitable operations from the commercial success
of its medical research and development of products to combat diseases of the
human immune system. One of management's goals is to forge a collaborative
relationship with either a pharmaceutical or biotechnology company. If
successful, future cash requirements may be met through licensing fees and
royalties. The financial statements do not include any adjustments relating to
the recoverability and classification of recorded assets, or the amounts and
classification of liabilities that might be necessary in the event the Company
cannot continue in existence.

The foregoing unaudited interim financial statements have been prepared in
accordance with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-QSB and Regulation S-B as
promulgated by the Securities and Exchange Commission ("SEC"). Accordingly,
these financial statements do not include all of the disclosures required by
generally accepted accounting principles in the United States of America for
complete financial statements. These unaudited financial statements should be
read in conjunction with the audited financial statements for the year ended
December 31, 2005. In the opinion of management, the unaudited interim financial
statements furnished herein include all adjustments, all of which are of a
normal recurring nature, necessary for a fair statement of the results for the
interim period presented. Operating results for the six month period ended June
30, 2006 are not necessarily indicative of the results that may be expected for
the year ending December 31, 2006.

                                       4
<PAGE>

ADVANCED BIOTHERAPY, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED NOTES TO FINANCIAL STATEMENTS
June 30, 2006

NOTE 2 - LIMITED SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

This summary of significant accounting policies of the Company is presented to
assist in understanding the Company's financial statements. The financial
statements and notes are representations of the Company's management, which is
responsible for their integrity and objectivity. These accounting policies
conform to accounting principles generally accepted in the United States of
America, and have been consistently applied in the preparation of the financial
statements.

Accounting Method

The Company's financial statements are prepared using the accrual method of
accounting.

Use of Estimates

The process of preparing financial statements in conformity with accounting
principles generally accepted in the United States of America requires the use
of estimates and assumptions regarding certain types of assets, liabilities,
revenues, and expenses. Such estimates primarily relate to unsettled
transactions and events as of the date of the financial statements. Accordingly,
upon settlement, actual results may differ from estimated amounts.

Accounting for Stock Options and Warrants Granted to Employees and Nonemployees

Statement of Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation", defines a fair value-based method of accounting for stock options
and other equity instruments. The Company has adopted this method, which
measures compensation costs based on the estimated fair value of the award and
recognizes that cost over the service period.

Development Stage Activities

The Company has been in the development stage since its formation in 1985 and
has not realized any significant revenues from its planned operations. It is
primarily engaged in the research and development of the treatment of autoimmune
diseases in humans, most notably, multiple sclerosis and rheumatoid arthritis.

Research and Development

Costs of research and development are expensed as incurred.

                                       5

<PAGE>
ADVANCED BIOTHERAPY, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED NOTES TO FINANCIAL STATEMENTS
June 30, 2006

NOTE 3 - PROPERTY AND EQUIPMENT

Property and equipment are stated at cost. Depreciation is provided using the
straight-line method over the estimated useful lives of the assets of three to
thirty-nine years.

The following is a summary of property, equipment and accumulated depreciation
at June 30, 2006 and December 31, 2005:

                                March 31,   December 31,
                                  2006          2005
                                ---------   ------------
                                   Cost         Cost
                                ---------   ------------
Lab equipment                   $ 31,891      $ 31,891
Office equipment                  13,777        13,777
Furniture and fixtures            22,539        22,539
Clean room                       271,786       271,786
                                --------      --------
  Total assets                   339,993       339,993
Less accumulated depreciation    (55,073)      (45,565)
                                --------      --------
  Net fixed assets              $284,920      $294,428
                                ========      ========

Depreciation expense for the six months ended June 30, 2006 and 2005 were $9,509
and $10,705, respectively.

NOTE 4 - CAPITAL STOCK

Preferred Stock

The Company is authorized to issue 20,000,000 shares of non-assessable $0.001
par value preferred stock. As of June 30, 2006, the Company has not issued any
preferred stock.

Common Stock

The Company is authorized to issue 200,000,000 shares of non-assessable $0.001
par value common stock. Each share of stock is entitled to one vote at the
annual shareholders' meeting. No common stock shares were issued during the six
months ended June 30, 2006.

NOTE 5 - COMMON STOCK OPTIONS AND WARRANTS

Omnibus Equity Incentive Plan

In 2000, the board of directors approved an Omnibus Equity Incentive Plan, which
was later approved by the stockholders in December 2001. The purpose of the plan
is to promote the long-term success of the Company and the creation of
stockholder value by encouraging employees, outside directors and consultants to
focus on the achievement of critical long-range objectives. The plan endeavors
to attract and maintain such individuals with exceptional qualifications and to
link them directly to stockholder interests through increased stock ownership.
The plan seeks to achieve this purpose by providing for awards in the form of
restricted shares, stock units, options (which may constitute incentive stock
options or non-statutory stock options) and stock appreciation rights ("SAR's").
The aggregate number of options, SARs, stock units and restricted shares awarded
under the plan was initially 4,000,000 common shares plus an annual increase of
the lesser of two and one-half percent of the total number of common shares then
outstanding or 250,000 common shares. No options were issued under this plan
during the six months ended June 30, 2006. However, 1,200,000 options vested
during the first quarter of 2006, and the resulting expense of $147,600 was
recorded in the accompanying statement of operations.


                                       6
<PAGE>

ADVANCED BIOTHERAPY, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED NOTES TO FINANCIAL STATEMENTS
June 30, 2006

The following is a summary of the Company's equity compensation plans:

                             Number of
                            securities      Weighted-
                           to be issued     average      Number of securities
                           upon exercise    exercise         remaining
                                of          price of     available for future
                           outstanding     outstanding   issuance under equity
          Plan                options        options      compensation plans
------------------------   -------------   -----------   ---------------------
Equity compensation plan
  approved by security
  holders (1)                 4,990,000        $0.18             260,000

(1) Omnibus Equity Incentive Plan

Following is a summary of the status of the options during the year ended
December 31, 2005 and the period ended June 30, 2006:

                                                                    Weighted
                                                                     Average
                                                       Number of    Exercise
                                                        Shares       Price
                                                       ---------    --------
Outstanding at January 1, 2005                          6,357,953    $ 0.17
Granted                                                 5,178,453      0.15
Exercised                                                      --        --
Forfeited                                              (2,637,953)    (0.14)
                                                       ----------    ------
Options outstanding at December 31, 2005                8,898,453      0.16
Granted                                                        --        --
Exercised                                                      --        --
Forfeited/Expired                                              --        --
                                                       ----------    ------
Options outstanding and exercisable at June 30, 2006    8,898,453    $ 0.16
                                                       ==========    ======


                                       7
<PAGE>

ADVANCED BIOTHERAPY, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED NOTES TO FINANCIAL STATEMENTS
June 30, 2006

Summarized information about stock options outstanding and exercisable at June
30, 2006 is as follows:

                             Outstanding and Exercisable Options
                       -----------------------------------------------
                       Number of   Weighted Average   Weighted Average
Exercise Price Range    Shares       Remaining Life     Exercise Price
--------------------   ---------   ----------------   ----------------
   $0.10 - $0.42       8,898,453         5.91               $0.16

NOTE 6 - NON-CASH COMMITMENT AND WARRANTS

During February 2003, the Company issued warrants to purchase a total of 100,000
shares of common stock to two outside consultants. These warrants have an
exercise price of $0.16 per share, expire in seven years, and vest over a period
of three years, with the first one-third of such warrants vesting in 2005, the
next one-third in 2005 and the remaining one-third vesting in 2006. In
accordance with Statement of Financial Accounting Standard No. 123, the fair
value of the warrants was estimated using the Black Scholes Option Price
Calculation. The following assumptions were made to value the stock warrants:
strike price at $0.16, risk free interest rate of 5%, expected life of seven
years, and expected volatility of 82% with no dividends expected to be paid. The
Company records an expense for the value of these warrants based upon these
Black Scholes assumptions of $12,300 ($0.123 per option) over the three years as
the warrants vest. During the three months ended March 31, 2006, the final
$4,100 was recorded under these warrants.

During the year ended December 31, 2004, a warrant to purchase 100,000 shares of
common stock was exercised using the cashless conversion feature, resulting in
the issuance of 47,917 shares of common stock.

Summarized information about stock warrants outstanding and exercisable at June
30, 2006, is as follows:

              Number of   Weighted Average   Average exercise
               warrants    Remaining Life         price
              ---------   ----------------   ----------------
Outstanding   5,504,227         3.61               $0.16
Exercisable   5,384,227         3.70               $0.16

During 2005, the Company granted warrants to purchase up to 380,000 shares of
common stock at an exercise price of $0.10 - $0.20 per share for services.
Subject to the terms of such warrants, 260,000 warrants are presently
exercisable, and expire February 24, 2015 through August 24, 2015. The remaining
120,000 warrants vest 1/3 each year commencing December 31, 2006.

NOTE 7- CONCENTRATIONS

Bank Accounts and investments

The Company maintains cash in a money market account at a bank in California.
The funds on deposit are not insured by the FDIC and, therefore, a total of
$21,447 is at risk on June 30, 2006.


                                       8
<PAGE>

ADVANCED BIOTHERAPY, INC.
(A DEVELOPMENT STAGE ENTERPRISE)
CONDENSED NOTES TO FINANCIAL STATEMENTS
June 30, 2006

NOTE 8- COMMITMENTS AND CONTINGENCIES

The Company was not able to repay its convertible debt payable as of June 1,
2006, and therefore is in default in the amount of approximately $4,740,000.
Additionally, the Company had term notes due June 30, 2006 in the amount of
approximately $190,000, which are unpaid, and therefore also in default. The
Company through a special committee of the Board of Directors is exploring
discussions with the lead holder of such convertible notes (a director of the
Company) regarding terms and conditions relating to raising additional capital
for the Company and modifying the convertible notes to reduce the conversion
price of such outstanding convertible notes and other notes payable. No
assurances can be given that any satisfactory arrangements will be made with the
convertible note holders, or, if the convertible note holders propose a debt
restructuring, that the Board of Directors will approve any such arrangements.
No assurances can be given that the holders of the convertible notes would agree
to defer payment beyond June 1, 2006. Absent any other arrangements with the
convertible note holders, it is expected that after expiration of the applicable
cure period, the Company will be in payment default.

NOTE 9 - SUBSEQUENT EVENTS

Subsequent to June 30, 2006, the Company raised an additional $26,000 from
demand loans.


                                       9
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

      This Quarterly Report and other documents we file with the Securities and
Exchange Commission ("SEC") contain forward-looking statements that are based on
current expectations, estimates, forecasts and projections about us, our future
performance, our business, our beliefs and our management's assumptions. All
statements other than statements of historical facts are forward-looking
statements, including any statements of the plans and objectives of management
for future operations, any statements concerning proposed new product candidates
and prospects for regulatory approval, any projections of revenue earnings or
other financial items, any statements regarding future economic conditions or
performance, and any statement of assumptions underlying any of the foregoing.
Some of these forward-looking statements may be identified by the use of words
in the statements such as "anticipate," "estimate," "could" "expect," "project,"
"intend," "plan," "believe," "seek," "should," "may," "assume," "continue,"
variations of such words and similar expressions. These statements are not
guarantees of future performance and involve certain risks, uncertainties, and
assumptions that are difficult to predict. We caution you that our performance
and results could differ materially from what is expressed, implied, or forecast
by our forward-looking statements due to general financial, economic, regulatory
and political conditions affecting the biotechnology and pharmaceutical
industries as well as more specific risks and uncertainties. The Company
operates in a rapidly changing environment that involves a number of risks, some
of which are beyond the Company's control. Future operating results and the
Company's stock price may be affected by a number of factors, including, without
limitation: (i) availability of capital for research and development; (ii)
availability of capital for clinical trials; (iii) opportunities for joint
ventures and corporate partnering; (iv) opportunities for mergers and
acquisitions to expand the Company's biotechnology base or acquire revenue
generating products; (v) regulatory approvals of preclinical and clinical
trials; (vi) the results of preclinical and clinical trials, if any; (vii)
regulatory approvals of product candidates, new indications and manufacturing
facilities; (viii) health care guidelines and policies relating to prospective
Company products; (ix) intellectual property matters (patents); and (x)
competition. Factors that could cause or contribute to such differences include,
but are not limited to, those discussed in the section entitled "Item 1.
Business," and all subsections therein, including, without limitation, the
subsections entitled, Technical Background, Government Regulation, Federal Drug
Administration Regulation, Competition and Factors That May Affect the Company,
and the section entitled "Market for Registrant's Common Stock and Related
Stockholder Matters," all contained in the Company's Annual Report on Form
10-KSB for the fiscal year ended December 31, 2005. Given these risks and
uncertainties, any or all of these forward-looking statements may prove to be
incorrect. Therefore, you should not rely on any such forward-looking
statements. Furthermore, we do not intend (and we are not obligated) to update
publicly any forward-looking statements. You are advised, however, to consult
any further disclosures we make on related subjects in our reports to the
Securities and Exchange Commission.


                                       10
<PAGE>

OVERVIEW

      The Company had $21,447 in cash and investments as of June 30, 2006.
Management anticipates that current funds will enable the Company to continue
severely restricted operations through September 2006. This amount of cash is
inadequate to meet the Company's projected minimum cash requirements for full
operations for the next 12 months.

      The Company has failed to pay the holders of its convertible notes due
June 1, 2006 in the principal amount of approximately $4,740,000 as of June 30,
2006 and other Company term notes that matured June 30, 2006, in the principal
amount of $190,000. Additionally, the Company has demand notes of approximately
$170,000.

      The Company is not able to repay its convertible notes and other term
notes that matured on or before June 30, 2006, or recent loans subsequent to
June 30, 2006, which are payable on demand. The Company through a special
committee of the Board of Directors continues to negotiate with the lead holder
of its convertible notes, who is Richard Kiphart, a director of the Company,
regarding terms and conditions relating to raising additional capital for the
Company, restructuring the Company's convertible notes to reduce the conversion
price thereof, and cancel the Company's indebtedness to noteholders and other
creditors (non-professionals) through conversion or exchange of Company debt
into Company common stock. No assurances can be given that any satisfactory
arrangements will be made with Mr. Kiphart or other debtholders, or, that the
Board of Directors will approve the terms and conditions proposed by the
convertible noteholders. No assurances can be given that the holders of the
convertible notes and other Company indebtedness will not seek to enforce their
remedies against the Company.

      The Company does not have a source of revenues to continue its operations,
or pay for research and development costs beyond the current available funds. In
order to meet projected operational and research and development costs, the
Company will have to raise funds through the issuance, for cash, of common or
preferred stock, convertible debt or other loans. There is no assurance,
however, that the Company will be able to raise sufficient capital to meet its
cash requirements for the next three months or longer.

      During the second quarter of 2006, the Company has basically curtailed its
operations and deferred its research and development projects. In order to
conserve resources, management may consider delaying or discontinuing the filing
of the Company's periodic reports to the Securities and Exchange Commission.

      As of June 30, 2006, with respect to the Company's original long-term
convertible notes, the approximate principal balance of $4,740,000, matured on
June 1. 2006, and $1,096,000 and $268,000 mature on September 30, 2007 and
September 30, 2009, respectively. Additionally, the Company owes $7,400 to one
noteholder whose convertible pay-in-kind note matured on September 30, 2004. The
Company has attempted unsuccessfully to locate this noteholder.

                                       11
<PAGE>

      During the second quarter of 2006, the Company also borrowed $173,500,
payable upon demand, which loans have matured on June 30, 2006. Subsequent to
June 30, 2006, the Company raised an additional $26,000 in demand loans.

      The Company's business development plan for 2006 is now under
reconsideration, subject to satisfying its obligations to holders of its
convertible notes and other indebtedness, and raising additional capital.
Subject to the foregoing, it is anticipated that the Company's business
development plan for 2006 will focus on the following, among other steps:

      1.    Evaluation of possible merger, acquisition or sale candidates;

      2.    Evaluation of financing alternatives and opportunities;

      3.    Research and development as well as licensing agreements with
            selected pharmaceutical companies seeking opportunities related to
            our patented scientific approaches;

      4.    Continuation of our FDA approved Phase I clinical trial at
            Georgetown University Medical Center; and

      5.    Initiation of US clinical trials in a selected autoimmune skin
            disease.

      We believe that the Company is a leader in conducting investigational
clinical trials allowing us to secure intellectual property for anti-cytokine
based treatments of certain autoimmune diseases by the use of antibodies
directed at certain cytokines, most notably interferon-gamma and tumor necrosis
factor-alpha. We have no revenues or FDA-approved products, and cannot predict
when we might anticipate having proprietary marketed products. As of the date
hereof, the Company has not entered into any agreement with a pharmaceutical or
biotechnological company, or any out-licensing arrangements.

      In general, we have a history of operating losses and have not generated
any revenue. As of June 30, 2006, we had an accumulated deficit of $14,214,651.

      The Company has no expected purchases or sales of significant equipment

RESULTS OF OPERATIONS - Six months ended June 30, 2006 and 2005.

      The Company is considered to be in the development stage as defined in
Statement of Financial Accounting Standards No. 7. There have been no operations
since incorporation.

LIQUIDITY AND CAPITAL RESOURCES.

      To date, we have financed our operations through private placements of
equity and convertible debt securities. The Company had approximately $21,447 in
cash and cash equivalents as of June 30, 2006, and had issued and outstanding
54,348,346 shares of its Common Stock.

                                       12
<PAGE>

THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO 2005.

      For the three months ended June 30, 2006, the Company realized a net loss
of $379,790 compared to a net loss of $810,692 for the three months ended June
30, 2005. The Company had decreases in expenses over the three months ended June
30, 2006, consisting primarily of the following: decreased research and
development expenses of $70,443, decreased stock option and warranty vesting of
$418,000, decreased salaries and benefits of $59,609, decreased insurance of
$18,256, decreased travel and entertainment of $3,964 and decreased interest and
dividend income of $1,516, net of increased professional fees of $20,780, and
net of loss on impairment or abandonment of patents of $92,500, and net of
increased interest expense of $38,127.

SIX MONTHS ENDED JUNE 30, 2006 COMPARED TO 2005.

      For the six months ended June 30, 2006, the Company realized a net loss of
$914,203 compared to a net loss of $1,434,028 for the six months ended June 30,
2005. The Company had decreases in expenses over the six months ended June 30,
2006, consisting primarily of the following: decreased research and development
expenses in the amount of $161,531, decreased professional fees of $7,465,
decreased stock option and warrant vesting of $438,500, decreased administrative
salaries and benefits of $36,590, decreased insurance of $36,513, deceased
shareholder and transfer fees of $5,690, decreased travel and entertainment of
$17,497, decreased interest and dividend income of $828, net of increased
business development expenses of $39,500, net of loss on impairment or
abandonment of patents of $92,500 and net of increased interest expense of
$54,980.

ITEM 3. CONTROLS AND PROCEDURES.

      In accordance with Item 307 of Regulation S-B promulgated under the
Securities Act of 1933, as amended, and within 90 days of the date of this
Quarterly Report on Form 10-QSB, the Chief Executive Officer and Chief Financial
Officer of the Company (the "Certifying Officers") have conducted evaluations of
the Company's disclosure controls and procedures. As defined under Sections
13a-14(c) and 15d-14(c) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), the term "disclosure controls and procedures" means controls
and other procedures of an issuer that are designed to ensure that information
required to be disclosed by the issuer in the reports that it files or submits
under the Exchange Act is recorded, processed, summarized and reported, within
the time periods specified in the Commission's rules and forms. Disclosure
controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed by an issuer in the
reports that it files or submits under the Exchange Act is accumulated and
communicated to the issuer's management, including its principal executive
officer or officers and principal financial officer or officers, or persons
performing similar functions, as appropriate to allow timely decisions regarding
required disclosure. The Certifying Officers have reviewed the Company's
disclosure controls and procedures and have concluded that those disclosure
controls and procedures are effective in causing information to be recorded,
processed, summarized and reported within the time periods specified in the
Commission's rules and forms and communicated to management of the Company to
allow timely decisions regarding the Company's public disclosures. In compliance
with Section 302 of the Sarbanes-Oxley Act of 2002, (18 U.S.C. 1350), each of
the Certifying Officers executed an Officer's Certification included in this
Quarterly Report on Form 10-QSB.

                                       13
<PAGE>

      As of the date of this Quarterly Report on Form 10-QSB, there have not
been any significant changes in the Company's internal controls or in other
factors that could significantly affect these internal controls subsequent to
the date of the Certifying Officers' evaluation.

PART II

ITEM 2. (a) CHANGES IN SECURITIES.

      During the quarter ended June 30, 2006, the Board of Directors approved
the issuance of additional convertible debt and convertible notes, respectively,
in payment of accrued and unpaid interest (in lieu of cash payments) as of June
30, 2006, for the Company's 2002 Subordinated Convertible Pay-In-Kind Notes due
June 1, 2006, the 2003 Subordinated Convertible Pay-In-Kind Notes due September
30, 2007, and the 2005 Subordinated Convertible Pay-In-Kind Notes due September
30, 2009.

      During the quarter ended June 30, 2006, the Company sold in a private
placement (i) $38,000 principal amount of the Company's term promissory notes
due June 30, 2006 that are convertible into the Company's 2005 Subordinated
Convertible Pay-In-Kind Notes due September 30, 2009 or shares of Company Common
Stock at a conversion price equal to $0.07 per share ("2006 Convertible Notes")
and (ii) $173,500 principal amount of the Company's term promissory notes due
June 30, 2006 ("2006 Term Notes"), which 2006 Term Notes were placed with
Richard P. Kiphart, a director of the Company. The 2006 Convertible Term Notes
and 2006 Term Notes bear interest at the rate of 12% per annum payable in cash.
The Company offered the 2006 Convertible Notes and 2006 Term Notes pursuant to
Section 4(2) of the Securities Act of 1933, as amended. The proceeds from the
placement of such Notes have been used for Company working capital purposes.

      Subsequent to the quarter ended June 30, 2006, the Company raised an
additional $26,000 from demand loans made by Richard P. Kiphart, a director of
the Company.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

      (a)   Exhibit
            Number      Description

            31.1        Certification of Chief Executive Officer Pursuant to
                        Rule 13a-14(a).

            31.2        Certification of Chief Financial Officer Pursuant to
                        Rule 13a-14(a).

            32.1        Certification of Chief Executive Officer Pursuant to 18
                        U.S.C. Section 1350, as adopted pursuant to Section 906
                        of the Sarbanes-Oxley Act of 2002.

            32.2        Certification of Chief Financial Officer Pursuant to 18
                        U.S.C. Section 1350, as adopted pursuant to Section 906
                        of the Sarbanes-Oxley Act of 2002.

      (b)   Reports on Form 8-K

      The Registrant filed no reports on Form 8-K during the quarter ended June
30, 2006.

                                       14
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report on Form 10-QSB/A to be signed on its
behalf by the undersigned thereunto duly authorized as of August 23, 2006.

                                        Advanced Biotherapy, Inc.
                                        (Registrant)


By: /s/Edmond F. Buccellato             By: /s/William M. Finkelstein
    ---------------------------             -----------------------------------
    Edmond F. Buccellato                    William M. Finkelstein
    President and CEO                       Chief Financial Officer


                                       15
<PAGE>

                                  EXHIBIT INDEX

           Exhibit      Description
           -------      -----------

            31.1        Certification of Chief Executive Officer Pursuant to
                        Rule 13a-14(a).

            31.2        Certification of Chief Financial Officer Pursuant to
                        Rule 13a-14(a).

            32.1        Certification of Chief Executive Officer Pursuant to 18
                        U.S.C. Section 1350, as adopted pursuant to Section 906
                        of the Sarbanes-Oxley Act of 2002.

            32.2        Certification of Chief Financial Officer Pursuant to 18
                        U.S.C. Section 1350, as adopted pursuant to Section 906
                        of the Sarbanes-Oxley Act of 2002.

                                       16

