~~United~~UNITED ~~States~~STATES

~~Securities~~SECURITIES ~~and~~AND ~~Exchange~~EXCHANGE ~~Commission~~COMMISSION

Washington, DCD.C. 20549

FORM ~~10Q~~ 10-Q

~~[X]~~ QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

~~SECURITIES~~For ~~AND~~the ~~EXCHANGE~~quarterly ~~ACT~~period OFended September ~~1934~~30, 2010

~~For~~ TRANSITION ~~the~~REPORT ~~quarterly~~UNDER ~~period~~SECTION ~~ended~~13 ~~March~~OR ~~31,~~15(d) ~~2010~~OF THE EXCHANGE ACT

[For ]the ~~TRANSITION~~transition ~~REPORT~~period ~~UNDER~~from ~~SECTION 13~~______ ORto ~~15 (d) OF THE~~ _______

~~EXCHANGE~~Commission ~~ACT~~File Number 000-53337

Commission file Number 333-146859

FERO INDUSTRIES INC.

~~Exact~~(Name ~~name~~ of small business issuer ~~as specified~~ in its charter)

Colorado 01-0884561


Colorado		01-0884561
(State of incorporation)		(I.R.S. Employer Identification No.)

~~(State~~254-16 orMidlake ~~other~~Boulevard ~~jurisdiction~~SE of

~~I.R.S.~~Calgary ~~Employer~~Alberta, Canada T2X 2X7

~~incorporation~~(Address orof ~~organization~~principal executive offices)

Identification Number

16125 Shawbrooke RD SW T2Y 3B3 Calgary, AB Canada

(Address of principal executive office)

(403) 827-7936

~~Issuer'~~(Registrant’s telephone number)

~~APPLICABLE~~with ~~ONLY~~a TOcopy ~~ISSUERS INVOLVED IN BANKRUPTCY~~to:

~~PROCEEDINGS~~Carrillo ~~DURING~~Huettel, ~~THE PAST FIVE YEARS~~LLP

~~Check~~3033 ~~whether~~Fifth ~~the~~Ave. ~~registrant~~Suite ~~filed all documents and reports required~~201

ToSan ~~be filed by Section 12~~Diego, 13CA ~~or 15 (d) of the Exchange Act after the distribution of~~92103

~~Securities~~Telephone ~~under~~(619) ~~a plan confirmed by a court. Yes ____ No ____~~399-3090

~~APPLICABLE~~Facsimile ~~ONLY~~(619) ~~TO CORPORATE ISSUERS~~399-0120

~~State~~Indicate by check mark whether the ~~number~~registrant of(1) ~~shares~~has ~~outstanding~~filed all reports required to be filed by Section 13 or 15(d) of ~~each~~the Securities Exchange Act of 1934 during the ~~Issuer's~~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.

~~Common equity as of the last practicable date:25,500,000 shares~~Yes No

~~Transitional~~Indicate ~~Small~~by ~~Business~~check ~~Disclosure~~mark ~~Format~~whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (~~check~~§232.405 ~~one~~of this chapter) ~~Yes~~ ~~___~~during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No X (Not required)

Indicate by check mark whether the registrant is a ~~shell~~large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. ~~(as~~See ~~defined~~the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act). ~~Yes [ X ] No [__]~~

AsLarge ofAccelerated ~~the~~Filer ~~date~~Accelerated ofFiler ~~this~~Non-Accelerated ~~report~~Filer ~~the~~Smaller ~~Registrant~~Reporting ~~had 25,500,000 shares issued and outstanding~~Company

~~FERO~~Indicate ~~INDUSTRIES~~by ~~INC~~check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No

(AAs ~~Development~~of ~~Stage~~December ~~Company)~~10, 2010, there were 133,350,000 shares of the registrant’s $.001 par value common stock issued and outstanding.

~~INTERIM~~FERO ~~FINANCIAL~~INDUSTRIES, ~~STATEMENTS~~INC.

~~March~~TABLE ~~31,~~OF ~~2010~~CONTENTS

(Unaudited)



		Page

PART I. FINANCIAL INFORMATION

ITEM 1.	FINANCIAL STATEMENTS
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ITEM 3.	QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 4.	CONTROLS AND PROCEDURES

PART II. OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS
ITEM 1A.	RISK FACTORS
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES
ITEM 4.	[REMOVED AND RESERVED]
ITEM 5.	OTHER INFORMATION
ITEM 6.	EXHIBITS

~~FERO~~Special ~~INDUSTRIES~~Note ~~INC.~~Regarding Forward-Looking Statements

Information included in this Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (A“Securities ~~DEVELOPMENT~~Act”), ~~STAGE~~and ~~COMPANY~~Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). This information may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Fero Industries, Inc. (the “Company”), to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future.

~~BALANCE~~*Please ~~SHEETS~~note that throughout this Quarterly Report, and unless otherwise noted, the words "we," "our," "us," the "Company," or "FROI" refers to Fero Industries, Inc.

~~(Unaudited)~~PART I: FINANCIAL INFORMATION

	(Unaudited)
	March 31,	June 30,
	2010	2009
ASSETS
Current Assets:
Cash	$ -	$ -
Total Assets	$ -	$ -
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$ 25,405	$ 10,250
Advances from shareholder	12,500	12,500
Total Current Liabilities	37,905	22,750
Stockholders' Equity (Deficit):
Preferred stock, $.001 par value; authorized 10,000,000, none issued	-	-
Common stock, $.001 par value; 100,000,000 shares authorized
25,500,000 shares issued and outstanding at March 31, 2010 and
June 30, 2009	25,500	25,500
Additional paid in capital	11,100	11,100
Deficit accumulated during development stage	(74,505)	(59,350)
Total Stockholders' Equity (Deficit)	(37,905)	(22,750)
Total Liabilities and Stockholders' Equity (Deficit)	$ -	$ -

ITEM 1.

~~see~~FINANCIAL ~~accompanying notes to the financial statements~~STATEMENTS

FERO INDUSTRIES, INC.

(A ~~DEVELOPMENT~~Development ~~STAGE~~Stage ~~COMPANY~~Company)

~~STATEMENTS~~FINANCIAL ~~OF OPERATIONS~~STATEMENTS

					From
					December 11,
	For the	For the	For the	For the	2000
	three	three	nine	nine	(Date of
	months	months	months	months	inception)
	ended	ended	ended	ended	to
	March 31,	March 31,	March 31,	March 31,	March 31,
	2010	2009	2010	2009	2010
Revenue:	$ -	$ -	$ -	$ -	$ -
Total Revenue	-	-	-	-	-
Operating Expenses:
General & administrative	1,000	(80)	15,155	10,250	74,505
Total Operating Expenses	1,000	(80)	15,155	10,250	74,505
NET (LOSS) INCOME	$ (1,000)	$ 80	$ (15,155)	$ (10,250)	$ (74,505)
Weighted Average Shares
Common Stock Outstanding
(Basic and Diluted)	25,500,000	25,500,000	25,500,000	25,500,000
(Loss) Earnings Per Share
(Basic and Diluted)	$ (0.00)	$ 0.00	$ (0.00)	$ (0.00)

FOR THE PERIOD ENDED SEPTEMBER 30, 2010

~~(Unaudited)~~F-1. ~~see~~Balance ~~accompanying~~Sheets ~~notes to the financial statements~~(unaudited)

~~FERO~~F-2. ~~INDUSTRIES~~Statements ~~INC.~~of Operations (unaudited)

(AF-3. ~~DEVELOPMENT~~Statements ~~STAGE~~of ~~COMPANY~~Cash Flows (unaudited)

~~STATEMENTS~~F-4. OFNotes ~~CASH~~to ~~FLOWS~~the Financial Statements (unaudited)

			From
			December 11,
	For the	For the	2000
	nine	nine	(Date of
	months	months	inception)
	ended	ended	to
	March 31,	March 31,	March 31,
	2010	2009	2010
Cash Flows from Operating Activities:
Net Loss	$ (15,155)	$ (10,250)	$ (74,505)
Adjustments to reconcile net (loss) to net cash
provided by operating activites:
Issuance of stock for services rendered	-	-	1,600
Changes in operating assets and liabilities:
Increase in accounts payable	15,155	7,350	25,405
	-	-	-
Net Cash (Used in) Operating Activities	-	(2,900)	(47,500)
Cash Flows from Investing Activities:	-	-	-
Cash Flows from Financing Activities:
Issuance of common stock for cash	-	-	35,000
Advances from shareholder	-	2,500	12,500
Net Cash Provided by Financing Activities	-	2,500	47,500
Net Increase (Decrease) in Cash	-	(400)	-
Cash at Beginning of Period	-	400	-
Cash at End of Period	$ -	$ -	$ -
Non-Cash Investing & Financing Activities
Issuance of stock for management services rendered	$ -	$ -	$ 1,600

FERO INDUSTRIES, INC.

(~~Unaudited)~~A ~~see~~Development ~~accompanying~~Stage ~~notes to the financial statements~~Company)

~~FERO~~FINANCIAL ~~INDUSTRIES INC.~~STATEMENTS

(AFOR ~~DEVELOPMENT~~THE ~~STAGE~~PERIOD ~~COMPANY)~~ENDED SEPTEMBER 30, 2010

~~NOTES~~ Balance TOSheets ~~FINANCIAL STATEMENTS~~(unaudited)

(Unaudited)


	(UNAUDITED)
	September 30,	June 30,
	2010	2010
ASSETS

Current Assets:
Cash	$ -	$ -
Prepaid expenses	28,000
Total Current Assets	-	$ -

Total Assets	$ 28,000	$ -


LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities:
Accounts payable	$ 19,265	$ 6,150
Advances from shareholder	64,312	36,255
Promissory note payable	250,000	250,000
Total liabilties	333,577	292,405

Stockholders' Equity (Deficit):
Preferred stock, $.001 par value; authorized 10,000,000, none issued	-	-
Common stock, $.001 par value; 500,000,000 shares authorized
132,750,000 shares issued and outstanding at September 30, 2010;
127,500,000 shares issued and oustanding at June 30, 2010	132,750	127,500
Additional paid in capital	113,850	(90,900)
Deficit accumulated in development stage	(552,177)	(329,005)

Total Stockholders' Equity (Deficit)	(305,577)	(292,405)

Total Liabilities and Stockholders' Equity (Deficit)	$ 28,000	$ -

~~NOTE~~ F-1 ~~– ORGANIZATION AND BASIS OF PRESENTATION~~

~~NATURE~~FERO OFINDUSTRIES, ~~OPERATIONS~~INC.

~~Fero Industries, Inc.~~ (~~the~~A ~~“Company”)~~Development ~~was~~Stage ~~incorporated under the laws of the State of Colorado on December 11, 2000. The~~ Company’s activities to date have been limited to organization and capital formation. The Company is a “development stage company” and has acquired seventeen different domain names with sites all linking with the main website, oil-n-gasbrokerage.net. Fero Industries, Inc. will act as a brokerage/clearing house for oil and gas leases and royalty interests and a variety of drilling and production equipment (both new and used) ~~employed by oil and gas exploration companies. The Company will also act as a referring agent and broker for those drilling programs seeking outside participation.~~

OnFINANCIAL October 13, 2009, the Company entered into a Share Exchange Agreement with Pyro Pharmaceuticals, Inc. (a Development Stage Company) (Pyro). Under the terms of the agreement, the Company will issue 38,250,000 shares of common stock in exchange for all of the issued and outstanding common shares of Pyro. As of February 16, 2010, this transaction has not been completed, pending due diligence requirements being met. STATEMENTS

~~BASIS~~FOR OFTHE ~~PRESENTATION~~PERIOD ENDED SEPTEMBER 30, 2010

~~These~~Statements ~~financial~~of ~~statements~~Operations ~~and related notes are presented in accordance with accounting principles generally accepted in the United States.~~(unaudited)

The accompanying unaudited financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation of the results for the interim periods have been made and are of a normal, recurring nature. Operating results for the three and nine months ended March 31, 2010 are not necessarily indicative of the results that may be expected for any interim period or the entire year. For further information, these financial statements and the related notes should be read in conjunction with the Company’s audited financial statements for the year ended June 30, 2009 included in the Company’s report on Form 10-K.


			From
			December 11,
			2000
	For the	For the	(Date of
	three months	three months	inception)
	ended	ended	to
	September 30,	September 30,	September 30,
	2010	2009	2010

Revenue:	$ -	$ -	$ -
Total Revenue	-	-	-

Operating Expenses:
General & administrative	13,172	12,405	92,177
Professional fees	210,000	-	210,000
Impairment of bioceutical assets	-	-	250,000
Total Operating Expenses	223,172	12,405	552,177

NET LOSS	$ (223,172)	$ (12,405)	$ (552,177)

Weighted Average Shares
Common Stock Outstanding	127,966,667	127,500,000

Net Loss Per Share
(Basic and Fully Diluted)	$ -	$ -

~~NOTE~~ F-2 ~~– NATURE OF SIGNIFICANT ACCOUNTING POLICIES~~

~~CASH~~FERO ~~AND~~INDUSTRIES, ~~CASH EQUIVALENTS~~INC.

~~The~~(A ~~Company~~Development ~~considers~~Stage ~~all highly liquid debt instruments purchased with maturity of three months or less to be cash equivalents.~~Company)

~~REVENUE~~FINANCIAL ~~RECOGNITION~~STATEMENTS

~~The~~FOR ~~Company~~THE ~~recognizes~~PERIOD ~~revenue~~ENDED atSEPTEMBER ~~the~~30, ~~time services are performed.~~2010

~~USE~~Statements OFof ~~ESTIMATES~~Cash Flows (unaudited)

The preparation of the Company’s financial statements requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.


			From
			December 11,
			2000
	For the	For the	(Date of
	three months	three months	inception)
	ended	ended	to
	September 30,	September 30,	September 30,
	2010	2009	2010
Cash Flows Used in Operating Activities:
Net Loss	$ (223,172)	$ (12,405)	$ (552,177)
Adjustments to reconcile net (loss) to net cash
provided by operating activites:
Impairment of bioceutical assets			250,000
Issuance of stock for services rendered	210,000	-	211,600
Increase in accounts payable	13,172	12,405	19,322
Increase in prepaid expenses	(28,000)	-	(28,000)

Net Cash Used in Operating Activities	(28,000)	-	(99,255)

Cash Flows from Investing Activities:	-	-	-

Cash Flows from Financing Activities:
Issuance of common stock for cash	-	-	35,000
Advances from shareholder	28,000	-	64,255

Net Cash Provided by Financing Activities	28,000	-	99,255

Net Increase (Decrease) in Cash	-	-	-

Cash at Beginning of Year	-	-	-

Cash at End of Year	$ -	$ -	$ -

Non-Cash Investing & Financing Activities
Issuance of stock for management services rendered	$ -	$ -	$ 1,600
Acquisition of bioceutical assets for promisorry note			250,000

~~FAIR~~F-3 ~~VALUE OF FINANCIAL INSTRUMENTS~~

~~The~~FERO ~~Company’s~~INDUSTRIES ~~short-term financial instruments consist of accounts payable~~INC. The carrying amounts of these financial instruments approximate fair value because of their short-term maturities. The Company does not hold or issue financial instruments for trading purposes nor does it hold or issue interest rate or leveraged derivative financial instruments.

~~EARNINGS~~(A ~~PER~~Development ~~SHARE~~Stage Company)

~~Basic~~NOTES ~~Earnings~~TO ~~per~~THE ~~Share~~CONSOLIDATED ~~(“EPS”)~~FINANCIAL isSTATEMENTS computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year. Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants. Basic and diluted EPS are the same for the Company, as of March 31, 2010, as the Company does not have any common share equivalents outstanding.

~~INCOME~~NOTE ~~TAXES:~~1 – ORGANIZATION AND BASIS OF PRESENTATION

~~The~~NATURE ~~Company~~OF uses the asset and liability method of accounting for income. This method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of certain assets and liabilities. Deferred income tax assets and liabilities are computed annually for the difference between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period, plus or minus the change during the period in deferred tax assets and liabilities.OPERATIONS

~~Deferred~~Fero ~~income~~Industries, ~~taxes may arise from temporary differences resulting from income and expanse items reported for financial accounting and tax purposes in different periods~~Inc. ~~Deferred~~ ~~taxes~~(the ~~are~~“Company”) ~~classified~~was asincorporated ~~current~~under ~~or non-current, depending on~~ the ~~classification~~laws of the ~~assets~~State ~~and~~of ~~liabilities~~Colorado toon ~~which~~December ~~they~~11, ~~relate~~2000. ~~Deferred~~The ~~taxes~~Company’s ~~arising~~activities ~~from~~to ~~temporary~~date ~~differences~~have ~~that~~been ~~are~~limited ~~not related~~ to anorganization ~~asset~~and orcapital ~~liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse~~formation. AsThe ~~of March 31, 2010, the~~ Company ~~has~~is ~~recorded~~ a ~~valuation~~“development ~~allowance~~stage ~~to fully offset the deferred tax asset of approximately $26,000 related to its cumulative net operating losses of $74,505~~company”.

~~CONCENTRATION~~BASIS OF ~~CREDIT RISK:~~PRESENTATION

~~Financial~~These ~~instruments~~financial ~~that~~statements ~~potentially~~and ~~subject~~related ~~the~~notes ~~Company~~are topresented ain ~~concentration~~accordance ofwith ~~credit~~accounting ~~risk~~principles ~~consist~~generally ~~principally~~accepted ofin ~~cash. During~~ the ~~year~~United ~~the~~States, ~~Company~~and ~~did~~are ~~not~~expressed ~~maintain cash deposits at financial institution~~ in ~~excess~~US ~~of the $100,000 limit covered by the Federal Deposit Insurance Corporation~~dollars.

~~RECENT~~The ~~ACCOUNTING~~accompanying ~~PRONOUNCEMENTS:~~unaudited financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments considered necessary for a fair presentation of the results for the interim periods have been made and are of a normal, recurring nature. Operating results for the three months ended September 30, 2010 are not necessarily indicative of the results that may be expected for any interim period or the entire year. For further information, these financial statements and the related notes should be read in conjunction with the Company’s audited financial statements for the year ended June 30, 2010 included in the Company’s report on Form 10-K.

~~The~~ NOTE ~~Company~~2 ~~does~~– ~~not~~NATURE ~~expect~~OF ~~that~~SIGNIFICANT ~~the~~ACCOUNTING ~~adoption of any recent accounting pronouncements will have a material impact on its financial statements.~~POLICIES

~~NOTE~~CASH 3AND –CASH ~~ADVANCES FROM SHAREHOLDER~~EQUIVALENTS

The Company ~~has~~considers ~~received~~all ~~advances~~highly ~~from~~liquid ~~one~~debt ofinstruments ~~its~~purchased ~~shareholders~~with inmaturity ~~the amount~~ of ~~$12,500.~~three ~~These~~months ~~advances~~or ~~have~~less ~~been used~~ to ~~pay~~be ~~for~~cash ~~operating expenses~~equivalents. ~~Additionally, the advances are non-interest bearing as they are short term in nature.~~

~~NOTE~~REVENUE ~~4 – COMMON STOCK~~RECOGNITION

OnThe ~~December 11, 2000 the~~ Company ~~issued~~recognizes ~~600,000~~revenue ~~shares of its common stock to its President and Chief Executive Officer, Kyle Schlosser~~ at athe ~~deemed price of $0.001 per share or $600 in return for his~~ time ~~effort~~services ~~and~~are ~~expense of forming the company and keeping it in good standing~~performed.

OnUSE ~~December~~OF 28, 2006 the Company issued 500,000 shares of our common stock to our Secretary/Treasurer and Chief Financial Officer, Leigh-Ann Squire at a deemed price of $0.001 per share or $500 in return for her agreement to join our Board of Directors, become an officer of the registrant and his agreement to provide the computer and internet expertise in constructing our websites and providing the server for operation of the sites, at no charge. ESTIMATES

OnThe ~~April~~preparation ~~20,~~of ~~2007~~ the Company’s ~~issued~~financial ~~500,000~~statements ~~shares~~requires ofmanagement ~~our~~to ~~common~~make ~~stock~~estimates toand ~~Mr.~~assumptions ~~Jerry~~that ~~Capehart~~affect ofthe ~~Grand~~amounts ~~Prairie,~~reported ~~Texas~~in atthe afinancial ~~deemed~~statements ~~price~~and ofaccompanying $0notes.~~001~~ Actual ~~per~~results ~~share,~~could ordiffer ~~$500,~~from asthese ~~a good faith deposit for seventeen domain names relating to the oil and gas industry~~estimates.

OnFAIR ~~April~~VALUE ~~30,~~OF ~~2007~~FINANCIAL ~~the Company issued 3,100,000 shares of our common stock to thirty-one non US persons at a price of $0.01 per share.~~INSTRUMENTS

OnThe ~~May~~Company’s ~~10,~~short-term ~~2007~~financial ~~the~~instruments ~~Company~~consist ~~issued~~of ~~400,000~~cash ~~shares~~and ofcash ~~our~~equivalents ~~common~~and ~~stock~~accounts topayable. The ~~three~~carrying USamounts ~~individuals~~of ~~(one~~these ~~representing~~financial ainstruments ~~Grandchildren’s~~approximate ~~Trust),~~fair atvalue abecause ~~price~~ of $0their short-term maturities.01 The ~~per~~Company ~~share~~does not hold or issue financial instruments for trading purposes nor does it hold or issue interest rate or leveraged derivative financial instruments.

On November 18, 2008 the Board of Directors of the registrant unanimously passed a resolution authorizing a forward split of the issued and outstanding common shares on a five to one (5 – 1) basis bringing the total common shares issued and outstanding to 25,500,000. The financial statements have been retroactively adjusted back to inception (December 11, 2000) to show the effect of this forward split. F-4

~~NOTE~~FERO 5INDUSTRIES ~~– GOING CONCERN~~INC.

~~The~~(A ~~accompanying~~Development ~~financial~~Stage ~~statements have been prepared assuming the~~ Company will continue as a going concern. As shown in the accompanying financial statements, the Company has no sales and has incurred a net loss of $74,505 since inception. The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its mineral properties. Management has plans to seek additional capital through a private placement and public offering of its common stock. The financial statements do not include any adjustments relating to the recoverability and classifications of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. )

~~NOTE~~NOTES 6TO –THE ~~SUBSEQUENT~~CONSOLIDATED ~~EVENTS~~FINANCIAL STATEMENTS

~~The~~EARNINGS ~~Company~~PER ~~has evaluated subsequent events through May 17, 2010, which is the date the financial statements were issued.~~SHARE

~~Item~~Basic 2Earnings per Share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year. Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants. Basic and diluted EPS are the same for the Company, as of September 30, 2010, as the Company does not have any common share equivalents outstanding.

~~Managements~~FAIR ~~discussion~~VALUE ~~and~~OF ~~Plan~~FINANCIAL ~~of Operations~~INSTRUMENTS

WeThe ~~were~~Company’s ~~incorporated~~short-term infinancial ~~the~~instruments ~~State~~consist of ~~Colorado~~cash onand ~~December~~cash ~~11,~~equivalents ~~2000 under the name Fero Industries, Inc.~~ and ~~were~~accounts ~~dormant until December 2006~~payable. WeThe ~~are~~carrying aamounts ~~development stage company and have not commenced any operations other than initial corporate formation and capitalization, the building~~ of athese ~~central~~financial ~~website,~~instruments ~~and~~approximate ~~the~~fair ~~acquisition~~value ofbecause ~~our domain names and the development~~ of ~~our~~their ~~business~~short-term ~~plan~~maturities. ItThe isCompany ~~our~~does ~~intention~~not tohold ~~create~~or aissue ~~web~~financial ~~portal~~instruments ~~whereby we plan to serve as an all inclusive information provider~~ for ~~anyone~~trading ~~worldwide~~purposes ~~who~~nor isdoes ~~looking~~it tohold ~~buy, sell~~ or ~~lease~~issue ~~anything~~interest torate ~~do with the exploration and/~~or ~~production~~leveraged ofderivative ~~oil~~financial ~~and gas~~instruments.

~~Management~~EARNINGS ~~believes~~PER that the focus of our web portal should be on delivering ease of use and convenience combined with capabilities designed to personalize business transacted over the Internet in the oil and gas industries. We have established a web portal at www.oil-n-gasbrokerage.net Upon obtaining adequate financing, we plan to refine this portal, include additional content, and begin marketing our services.SHARE

~~Thus~~Basic ~~far,~~Earnings ~~our~~per ~~focus~~Share ~~has~~(“EPS”) ~~been~~is oncomputed ~~than~~by ~~initial~~dividing ~~corporate~~net ~~formation~~income ~~and~~available ~~capitalization,~~to common stockholders by the ~~building~~weighted average number of acommon ~~central~~stock ~~website,~~shares ~~www.oil-n-gasbrokerage.net~~outstanding during the ~~acquisition~~year. Diluted ofEPS ~~our~~is ~~domain~~computed ~~names~~by ~~and~~dividing net income available to common stockholders by the ~~development~~weighted-average number of ~~our~~common ~~business~~stock ~~plan.~~shares Weoutstanding ~~plan~~during the ~~operations~~year ~~for~~plus ~~remainder~~potential ofdilutive ~~2009~~instruments tosuch beas ~~focused~~stock onoptions ~~the~~and ~~development~~warrants. Basic ofand ~~our~~diluted ~~website.~~EPS ~~The~~are ~~completion~~the ofsame ~~this~~for ~~task~~the ~~will~~Company, ~~require~~as ~~additional~~of ~~capital~~September ~~beyond~~30, ~~what~~2010, weas ~~currently~~the Company does not have onany ~~hand~~common share equivalents outstanding.

WeINCOME plan on generating revenues based on two main sources: a) classified advertisements; and b) display ads. In addition, we will charge a listing fee for any item listed for sale or lease. No fees will be charged for those individuals or concerns responding to these. Display advertisements listing services from geophysical companies, geologists, engineers and oilfield drilling and servicing products on a continual basis will be charged a flat monthly fee plus production costs if we supply the ads. TAXES

WeThe ~~expect~~Company touses ~~pursue~~the asset and liability method of accounting, which requires the ~~implementation~~recognition of ~~our~~deferred ~~business~~tax ~~plan~~assets and liabilities for the ~~development~~expected ~~and~~future ~~marketing~~tax consequences of ~~our~~temporary ~~website.~~differences ~~Our~~between ~~current~~the ~~cash~~carrying ~~position~~amounts isand ~~not~~the ~~sufficient~~tax tobasis ~~fund~~of ~~our~~certain ~~cash~~assets ~~requirements~~and ~~during~~liabilities. Deferred income tax assets and liabilities are computed annually for the ~~next~~difference ~~twelve~~between ~~months,~~the ~~including~~financial ~~operations~~statement and ~~capital~~tax ~~expenditures.~~bases Weof ~~intend~~assets toand ~~seek~~liabilities ~~joint~~that ~~ventures~~will result in taxable or ~~obtain~~deductible ~~equity~~amounts in the future, based on enacted tax laws and~~/or~~ ~~debt~~rates ~~financing~~applicable to ~~support~~the ~~our~~periods ~~current~~in ~~and~~which ~~proposed~~the ~~oil~~differences ~~and~~are ~~gas~~expected ~~operations~~to ~~and~~affect ~~capital~~taxable ~~expenditures~~income. Valuation Weallowances ~~cannot~~are ~~assure~~established ~~that~~when ~~continued~~necessary ~~funding~~to ~~will~~reduce deferred tax assets to the amount expected to be ~~available~~realized. Income Attax ~~the~~expense ~~same~~is ~~time~~the wetax ~~intend~~payable toor ~~pursue~~refundable ~~other~~for ~~opportunities~~the period, ~~hopefully~~plus toor ~~make~~minus ~~financing~~the ~~easier.~~change during the period in deferred tax assets and liabilities.

~~Our~~Deferred ~~future~~income ~~financial~~taxes ~~results~~may ~~will~~arise ~~depend~~from ~~primarily~~temporary ondifferences ~~(1)~~resulting ~~our~~from ~~ability~~income toand ~~fully~~expanse ~~implement~~items ~~our~~reported ~~business~~for ~~plan,~~financial ~~(2)~~accounting ~~our~~and ~~ability~~tax topurposes ~~develop~~in ~~our~~different ~~website~~periods. Deferred ~~(3)~~taxes ~~generate~~are ~~revenue~~classified ~~from~~as ~~classified~~current ~~advertisements~~or ~~and~~non-current, ~~display~~depending ~~ads~~on the classification of the assets and ~~(4)~~liabilities ~~develop~~to ~~our~~which ~~brand~~they ~~awareness~~relate. Deferred Wetaxes ~~cannot~~arising ~~assure~~from temporary differences that weare ~~will~~not berelated ~~successful~~to inan ~~any~~asset ofor ~~these~~liability ~~activities~~are classified as current or ~~that~~non-current depending on the ~~prices~~periods in which the temporary differences are expected to reverse. As of ~~oil~~September ~~and~~30, ~~gas~~2010, ~~prevailing~~the atCompany has recorded a valuation allowance to fully offset the ~~time~~deferred tax asset of ~~production~~approximately ~~will~~$116,000 berelated atto aits ~~level~~cumulative ~~allowing~~net ~~for~~operating ~~profitable~~losses ~~production~~of $342,177.

We have not entered into commodity swap arrangements or hedging transactions. Although we have no current plans to do so, we may enter into commodity swap and/or hedging transactions in the future in conjunction with oil and gas production. We have no off F-~~balance sheet arrangements.~~ 5

OnFERO ~~December~~INDUSTRIES ~~8, 2008 we entered into an Interim Agreement with Pyro Pharmaceuticals, Inc~~INC. of Los Angeles California. Pyro Pharmaceuticals, Inc. is engaged in the business of developing therapeutics against multi-drug resistant infectious microorganisms. A definitive agreement be entered into as soon as possible but no later than January 15, 2009, with Closing to occur on or before February 27, 2009 and will be subject to certain terms and conditions. The Definitive Agreement will provide for the exchange of each of the Company’s common stock, with Fero remaining as the parent entity and Pyro a wholly owned subsidiary.

~~Liquidity~~(A ~~and~~Development ~~Capital~~Stage ~~Resources~~ Company)

AsNOTES ofTO ~~March~~THE ~~31,~~CONSOLIDATED ~~2010~~FINANCIAL weSTATEMENTS ~~had no available cash. We plan to continue to provide for our capital needs by issuing debt or equity securities.~~

WeCONCENTRATION ~~will~~OF ~~require~~CREDIT additional financing in order to complete our stated plan of operations for the next twelve months. We believe that we will require additional financing to carry out our intended objectives during the next twelve months. There can be no assurance, however, that such financing will be available or, if it is available, that we will be able to structure such financing on terms acceptable to us and that it will be sufficient to fund our cash requirements until we can reach a level of profitable operations and positive cash flows. If we are unable to obtain the financing necessary to support our operations, we may be unable to continue as a going concern. We currently have no firm commitments for any additional capital. RISK

~~The~~Financial ~~downturn~~instruments inthat ~~the~~potentially ~~United~~subject ~~States~~the ~~stock~~Company ~~and debt markets could make it more difficult~~ to ~~obtain~~a ~~financing~~concentration ~~through the issuance~~ of ~~equity~~credit orrisk ~~debt~~consist ~~securities.~~principally ~~Even~~of ~~if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses, fail to collect significant amounts owed to us, or experience unexpected~~ cash ~~requirements that would force us to seek alternative financing~~. During ~~Further,~~the ifyear ~~we issue additional equity or debt securities, stockholders may experience additional dilution or~~ the ~~new~~Company ~~equity~~did ~~securities~~not ~~may~~maintain ~~have~~cash ~~rights,~~deposits ~~preferences~~at orfinancial ~~privileges~~institution ~~senior~~in toexcess ~~those~~ of ~~existing~~the ~~holders of our shares of common stock. If additional financing is not available or is not available on acceptable terms~~$100,000 welimit ~~will~~covered ~~have~~by tothe ~~curtail~~Federal ~~our~~Deposit ~~operations.~~Insurance Corporation.

WeRECENT ~~presently~~ACCOUNTING do not have any available credit, bank financing or other external sources of liquidity. Due to our brief history and historical operating losses, our operations have not been a source of liquidity. We will need to obtain additional capital in order to expand operations and become profitable. In order to obtain capital, we may need to sell additional shares of our common stock or borrow funds from private lenders. There can be no assurance that we will be successful in obtaining additional funding.PRONOUNCEMENTS

ToThe ~~date,~~Company wedoes ~~have~~not ~~generated~~expect ~~minimal~~that ~~revenues~~the ~~and~~adoption ~~have~~of ~~incurred~~recent ~~operating~~accounting ~~losses~~pronouncements inwill ~~every~~have ~~quarter.~~a ~~These~~material ~~factors~~impact ~~among~~on ~~others~~its ~~may~~financial ~~raise substantial doubt about our ability to continue as a going concern~~statements.

~~OTHER~~Principles ~~INFORMATION~~of Consolidation

~~Item~~The 1consolidated financial statements include the accounts of the Company and its wholly-owned and majority owned subsidiaries, including businesses acquired since their respective dates of acquisition. All ~~Legal~~intercompany ~~Proceedings~~transactions and balances have been eliminated.

~~None~~NOTE 3 – ACQUISITION OF DOMAIN NAMES AND DEPOSITS

~~Item~~On 2April 20, 2007, the Company entered into an asset purchase and sale agreement with Mr. ~~Changes~~ Jerry Capehart of Grand Prairie, Texas whereby he sold to us a 100% undivided right title and interest in ~~Securities~~seventeen internet domain names for a total purchase price of $180,000. Terms of the purchase are as follows: $5,000 to Mr. Capehart and 12,500,000 shares of our common stock as a non-refundable deposit (recorded as Deposits on the Balance Sheet) and an additional $75,000 on or before June 30, 2008. All domain names are fully valid and registered and ready for construction. The Company did not execute this contract by the closing date of June 30, 2010. As such, the Company has not recorded the liability or corresponding asset related to this sale agreement in its financial statements.

~~Item~~NOTE 3.4– ~~Defaults~~ACQUISITION ~~Upon~~OF ~~Senior Securities~~SUCANON

~~Not~~On ~~Applicable~~May 23, 2010, Fero Industries, Inc., a Colorado corporation, (the "Company") entered that certain Asset Acquisition Agreement (the "Agreement") with Gvest, Inc., (“Gvest”) an Ontario, Canada corporation. Pursuant to the terms and conditions of the Agreement, the Company acquired certain assets directly related to the manufacturing, sale and distribution of that certain product known as Sucanon, which is an herbal remedy for Type II Diabetes. The acquired assets include all of the intellectual property rights, training, and “know how” to manufacture and produce Sucanon, including sources and suppliers of Sucanon ingredients and mixing equipment; certain associated trademarks and patents ("Acquired Assets"). The Acquired Assets include the exclusive world-wide rights to manufacture, sell and distribute Sucanon. The Company purchased the Acquired Assets for an aggregate purchase price of $250,000. The Agreement contained customary representations and warranties and pre- and post-closing covenants of each party and customary closing conditions. Breaches of the representations and warranties were subject to customary indemnification provisions, subject to specified aggregate limits of liability. This transaction closed on July 7, 2010.

~~Item 5. Other Events~~ F-6

~~None~~FERO INDUSTRIES INC.

~~Item~~(A ~~6. Exhibits~~Development ~~and~~Stage ~~Reports on Form 8K~~Company)

~~Exhibit 31.1 Certification~~NOTES ~~pursuant~~TO toTHE 18CONSOLIDATED ~~U.S.C.~~FINANCIAL ~~Section 1350 as adopted pursuant to Section 302 and 906 of the Sarbanes-Oxley Act of 2003.~~STATEMENTS

~~Exhibit~~NOTE ~~31.2~~5 ~~Certification~~– ~~pursuant~~COMMON ~~to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 and 906 of the Sarbanes-Oxley Act of 2003.~~STOCK

~~Exhibit~~On ~~32.2~~December ~~Certifications~~11, 2000 the Company issued 15,00,000 shares of ~~CEO~~its ~~And~~common ~~CFO~~stock ~~Pursuant~~to Toits ~~Section~~President ~~906~~and OfChief ~~The~~Executive ~~Sarbanes-Oxley~~Officer, ~~Act~~Kyle Schlosser at a deemed price of $0.001 per share or $600 in return for his time effort and expense of forming the company and keeping it in good standing.

~~SIGNATURES~~On December 28, 2006 the Company issued 12,500,000 shares of our common stock to our Secretary/Treasurer and Chief Financial Officer, Leigh-Ann Squire at a deemed price of $0.001 per share or $500 in return for her agreement to join our Board of Directors, become an officer of the registrant and his agreement to provide the computer and internet expertise in constructing our websites and providing the server for operation of the sites, at no charge.

InAs ~~accordance~~referred ~~with~~to ~~the~~in ~~requirements~~Note of4 ~~the~~above, ~~Exchange~~on ~~Act~~April 20, 2007 the ~~registrant~~Company ~~caused~~issued ~~this~~12,500,000 ~~report~~shares of our common stock to beMr. ~~signed~~Jerry onCapehart ~~its~~of ~~behalf~~Grand byPrairie, ~~the~~Texas ~~undersigned~~at a deemed price of $0.001 per share, ~~hereunto~~or ~~duly~~$500, ~~authorized~~as a good faith deposit for seventeen domain names relating to the oil and gas industry.

~~FERO~~On ~~INDUSTRIES~~April ~~INC~~30, 2007 the Company issued 77,500,000 shares of our common stock to thirty-one non US persons at a price of $0.01 per share.

~~Dated~~On May 1410, ~~2010~~2007 the Company issued 10,000,000 shares of our common stock to three US individuals (one representing a Grandchildren’s Trust), at a price of $0.01 per share.

~~/s/~~On ~~Kyle~~November ~~Schlosser~~18, 2008 the Board of Directors of the registrant passed unanimously a resolution authorizing a forward split of the authorized and issued and outstanding common shares on a three to one (5 – 1) basis bringing the total common shares issued and outstanding to 25,500,000. The forward split has been retroactively recorded in the financial statements of the Company as if the forward split had occurred at the inception of the Company and the authorized common shares have increased to 500,000,000.

~~Kyle~~On ~~Schlosser~~April 15, ~~President~~2010 the Board of Directors of Fero Industries (the Registrant) passed a resolution declaring a stock dividend of four (4) shares of common stock for each share held, ~~Director~~of record as of April 20, 2010. The common shares of the Registrant will be considered Ex Dividend on April 21, 2010. This brings the total issued and ~~Chief~~outstanding ~~Executive~~common ~~Officer~~shares to 127,500,000. All share references in these financial statements have been retroactively adjusted for this stock dividend.

~~/s/~~On ~~Leigh~~September ~~Ann~~22, ~~Squire~~2010, the Company issued 5,250,000 shares of stock for legal and consulting services, valued at $.04 per share, which was the closing price of the stock on that date.

~~Leigh~~NOTE ~~Ann~~6- ~~Squire, Secretary/Treasurer, Director and Principal Accounting Officer~~ ADVANCES

As of September 30, 2010 and June 30, 2010, the Company has received advances from a shareholder in the amount of $64,312 and $36,255, respectively. These advances are non-interest bearing, unsecured, and have no fixed terms of repayment.

F-7

FERO INDUSTRIES INC.

(A Development Stage Company)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7- PROMISSORY NOTE

On June 24, 2010, we issued a Two Hundred Fifty Thousand Dollars ($250,000) Promissory Note (the “Note”) in favor of Mr. Peter Hogendoorn (the “Lender”). The Note contains standard representations, and warranties and affirmative and negative covenants, and is described in greater detail below. The Note

memorializes a loan made by the Lender to the Company, in order for the Company to close that certain Asset Acquisition Agreement with Gvest. The Note accrues simple interest at a rate equal to 1% over the average Canadian Prime Rate and is due 30 days from the date executed, or thereafter by mutual agreement of the parties hereto, the principal and all accrued interest thereon shall be due and payable within ten (10) days of written demand by Holder. Additionally, the Note may be repaid in whole or in part by the Company without penalty or premium at any time and from time to time prior to the Maturity Date.

NOTE 8– GOING CONCERN

The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has no sales and has incurred a net loss of $552,177 since inception. The future of the Company is dependent upon its ability to obtain financing and upon future profitable operations from the development of its mineral properties. Management has plans to seek additional capital through a private placement and public offering of its common stock. The financial statements do not include any adjustments relating to the recoverability and classifications of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

NOTE 9-SUBSEQUENT EVENTS

On October 1, 2010, the Company issued 600,000 shares for consulting services, valued at $.04 per share.

On October 4, 2010 the Company received advances from shareholders totalling $9,980.

The advances are non interest bearing, unsecured, and there are no fixed terms of repayment.

The Company has evaluated subsequent events through December 13, 2010.

F-8

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION

FORWARD-LOOKING STATEMENTS

This Management's Discussion and Analysis or Plan of Operation (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, or implied, by those forward-looking statements. You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms. These statements are only predictions. In evaluating these statements, you should specifically consider various factors, including the risk factors outlined below. These factors may cause our actual results to differ materially from any forward-looking statements. Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

On May 23, 2010, Fero Industries, Inc., a Colorado corporation, (the "Company") entered that certain Asset Acquisition Agreement (the "Agreement") with Gvest, Inc., (“Gvest”) an Ontario, Canada corporation. Pursuant to the terms and conditions of the Agreement, the Company acquired certain assets directly related to the manufacturing, sale and distribution of that certain product known as Sucanon, which is an herbal remedy for Type II Diabetes.

The acquired assets include all of the intellectual property rights, training, and “know how” to manufacture and produce Sucanon, including sources and suppliers of Sucanon ingredients and mixing equipment; certain associated trademarks and patents ("Acquired Assets"). The Acquired Assets include the exclusive world-wide rights to manufacture, sell and distribute Sucanon. The Company purchased the Acquired Assets for an aggregate purchase price of $250,000. The Agreement contained customary representations and warranties and pre- and post-closing covenants of each party and customary closing conditions. Breaches of the representations and warranties were subject to customary indemnification provisions, subject to specified aggregate limits of liability.

On June 29, 2010, the Company and Gvest determined that all closing conditions had been met and that the transaction should therefore close based on the terms and conditions thereof. On July 1, 2010, the Company received such documents necessary to conduct complete and full due diligence relating to the Acquired Assets.

On July 7, 2010, the Company determined, based on a full review and the completion of due diligence related to the Acquired Assets, the Company has determined that the Acquired Assets will allow the Company to move forward with its new business plan to make, manufacture and distribute Sucanon world-wide.

Overview

Fero’s mission is to acquire healthcare related companies, products, and technologies that have large market potential, improve the quality of care, or have unmet needs. Fero is focused on the medical device, biotechnology, pharmaceutical, nutraceutical, and healthcare IT industries. Fero's mission is to create and enhance shareholder value via a growth-by-acquisition strategy by acquiring synergistic companies, products, and technologies that have large market potential, improve the quality of care, or have unmet needs.

Fero’s initial focus is on diabetes. The Company has acquired the intellectual property and other exclusive world-wide rights related to the production, marketing, and distribution of Sucanon also known as Diab II, a treatment for Type II diabetes.

Sucanon is approved and is sold as an Over-The-Counter ("OTC") herbal remedy for Type II diabetes in Mexico and as a prescription pharmaceutical in Peru. Sucanon has also undergone clinical trials in China and Brazil. Application for United States Food and Drug Administration (“FDA”) approval of Sucanon has not been made. As such, it is not offered for sale nor approved for sale in the United States at this time. The Company will consider applying for FDA approval in the near future.

Current Product

Sucanon is one of only several drugs in the world, belonging to a class of diabetic medications called insulin sensitizers. Insulin sensitizers lower blood sugar by increasing the muscle, fat and liver’s sensitivity to insulin. Insulin sensitizers are blood sugar normalizing or euglycemic drugs that help return the blood sugar to the normal range without the risk of low blood sugars.



	1. Insulin binding to receptors and entering the cell, (which is impeded in NIDDM patients), is essential for the uptake of glucose; 2. Sucanon increases the binding of insulin to its receptors;
	3. Sucanon increases the internalization of insulin; and, 4. As a result, Sucanon increases the intracellular level of insulin, which then increases the uptake of glucose.

Sucanon is a medication that helps the body make better use of its own insulin, the hormone that controls blood sugar levels. Type II Diabetics produce insulin, but their cells gradually lose the ability to absorb and use insulin to get sugar out of the blood stream. Sucanon transports sugar out of the blood stream and into cells where it can be burned. Sucanon particularly helps muscle cells use insulin and thus draws sugar out of the blood stream.

Sucanon increases sensitivity to insulin which leads to decreased blood sugar levels and a reduction of a wide range of Type II Diabetes symptoms, including: weight gain, fatigue, excess thirst and excess urination. The reduction in blood sugar levels also reduces the possibility of peripheral nerve damage; this damage caused to peripheral nerves by chronic high blood sugar can ultimately lead to impotence in men and amputation of limbs in both men and women.

Sucanon is an herbal medication. It is derived from the combination of the dried root of tricosanthis and molybdenum, a light metal. Sucanon’s chemical name is manitolatodimolybdate.

Clinical Trial Summary:

Clinical trials on Sucanon were performed in China. After submission of a New Drug Application ("NDA") Sucanon was approved by the State Food and Drug Administration (SFDA) of China. Subsequent clinical trials were also performed on Sucanon in Brazil, yet the trials have not yet been completed.

Sucanon clinical trials (see Clinical Results for more detailed information on trial results) were shown to reduce the problems and symptoms of Type II Diabetes:

High blood sugar: Clinical studies have shown that Sucanon reduces blood sugar readings by about 25% - 30% and brings high blood sugar back into the normal range (non-fasting blood sugar is above 200 mg/dL (milligrams per deciliter) or fasting blood sugar is above 126 mg/dL).

Fatigue: Clinical studies have shown that Sucanon reduces fatigue. Fatigue is a frequent symptom of Type II Diabetes or a pre-diabetic condition called Impaired Glucose Tolerance.

Weight gain: Clinical studies have shown that people who have taken Sucanon report weight loss along with increased energy. Very often, people who are diabetic or pre-diabetic gain weight because their insulin-resistance leads to sugar being converted into fat instead of being burned to produce energy.

Excess thirst and urination: Clinical studies have shown that Sucanon reduces excess thirst and excess urination. Higher-than-normal levels of blood sugar instigate thirst, which in turn leads to increased frequency of urination.

High cholesterol and triglyceride levels: Clinical studies have shown that Sucanon reduces the levels of cholesterol and triglycerides. People who are diabetic or pre-diabetic often have elevated cholesterol and triglyceride levels. Elevated cholesterol and triglycerides significantly increase the risk of heart disease.

Side effects: Clinical studies have shown that Sucanon showed no side effects. This sets Sucanon apart from many other anti-diabetic products, which can have effects on digestion, the liver, or the heart.

Toxicity: Clinical studies have shown that Sucanon toxicity was undistinguishable from the placebo. In addition, Sucanon showed no carcinogenicity, mutagenicity, and teratogenicity in mice.

Clinical Results

Clinical Experience

The clinical benefits of Sucanon were convincingly demonstrated in a double-blind, randomized, placebo- & Glibenclamide-controlled, multi-center, efficacy and safety study in 370 adult patients with Type II diabetes. Sucanon was administered as tablets, one in the morning and one in the evening. The duration of the study was 6 months: four months treatment, preceded by one month screening evaluation, and followed by one month post-treatment follow-up. Glibenclamide is a commonly prescribed sulfonylurea; its benefits and limitations have been well known to diabetologists for over a decade. The parameters of response to therapy included an evaluation of the changes in clinical signs and symptoms of diabetes, an alteration in the blood and urine measurements of glucose metabolism, and an alteration in blood lipid levels.

The results indicated that the parameters of disease activity in patients receiving either Glibenclamide or Sucanon responded in a highly relevant clinical manner and that the differences from baseline measurements were statistically highly significant (p values <0.01). The lack of response in the group of patients who were randomized to receive placebo was also unequivocal, where the effect of administration was clinically small or non-existent, and the baseline to treatment difference was statistically insignificant (p value >0.05). An extract of the data is summarized in the following graphs and tables.

Table 1

Changes in glucose abnormalities in 370 Type II diabetic patients in 3 treatment groups of the randomized, double-blind, controlled study (before treatment and at the end of treatment analyses)

[fero930201010qx003.gif]

Table 2

Results from table 1 expressed as “Percent Improvement” (baseline to end of treatment)

[fero930201010qx005.gif]

Response to therapy was documented not only by a loss of, or a reduction in, disease related symptoms which included polyuria, polvdipsia, polyphagia, and fatigue, but also by the improvement in objective parameters of disease, namely, a reduction to normal or near normal levels in the elevated fasting blood glucose, and urinary sugar, and a normalization of the 100 g - oral glucose tolerance test. The objective results are given in table 1 above where the mean and standard deviations for these Values are listed, as well as the calculated "t" and “p" values. Given that the coefficient of variance of baseline values for the three treatment groups is small, and the patient number per group relatively large (n = 123), a between treatment group comparison is not unreasonable.

These calculations (not shown) reveal that the improvements associated with therapy for both the Glibenclamide group of patients and the Sucanon group of patients were both better than placebo for all objective parameters measured to a level that was statistically significant (p Values <0.05 to <0.01 respectively. This was not surprising from the t values listed in table 1. The difference in reduction of fasting blood glucose between the latter treatment groups was not statistically significant (p value >.0.05).

Table 3

Sucanon associated improvements in blood lipid levels

[fero930201010qx007.gif]

Pre-clinical pharmacology

Pre-clinical in vivo and in vitro studies have identified that intravenous and oral Sucanon is pharmacodynamically active in diabetic rats, and out-performed all biguanides and sulfonylureas tested in those models. When added to rat muscle cells, its critical influence commences in seconds as it up-regulates insulin receptors, in a manner not yet understood, with the resultant increase in insulin endocytosis, uptake of glucose, and L-leucine effects, all of which last more than an hour.

In single-dose rat studies, peak response in lowering blood glucose takes 2 to 4 hours to occur, and the effect is lost by about 10 hours. Multiple oral dosing in rats (48 days) and up to 4 months in man, shows no loss of activity. Clear-cut pharmacological dose-response features were documented. Sucanon is also superior to other hypoglycemic agents in these models.

Toxicity

The therapeutic index is so large (10,000 in mice) that its margin of safety must be unique in the armamentarium of drugs for the treatment of diabetes. Carcinogenicity, mutagenicity, and teratogenicity toxicities were not found in mice. Chronic dosing in dogs and rats at 2000 times the therapeutic dose was free of any toxicity.

Sucanon Regulatory Approvals:

Sucanon has been approved for prescription sale in Peru and has been approved as an over-the-counter (non-prescription) product in Mexico. Application for United States FDA regulatory approval has not yet been made. Thus, doctors cannot prescribe nor purchase Sucanon in the United States. However, Type II diabetics can buy Sucanon for their own use and have it delivered to them from Mexico under the U.S. FDA’s “personal importation” guidelines. A similar program exists for Type II diabetics in Canada who wish to buy Sucanon for their own use.

Results of Operations

We are an development stage company and have no revenues to date.

We incurred operating expenses of $223,172 and $12,405 for the three month periods ended September 30, 2010 and 2009, respectively. The increase of $210,767 is a result of the acquisition of the Sucanon type II diabetes treatment and increase in professional fees and general and administrative expenses over the prior period. The increase in our operating expenses for the three months ended September 30, 2010 was a result of increased administrative expenses and the acquisition of the Sucanon type II diabetes treatment

During the three months ended September 30, 2010, we recognized a net loss of $223,172 compared to a net loss of $12,405 for the three months ended September 30, 2010. The increase was a result of the increase in operational expenses as discussed above.

Liquidity and Capital Resources

At September 30, 2010, we had total assets of $28,000 consisting of cash. At September 30, 2010, we had total current liabilities of $333,577, consisting of accounts payable of $19,265, advances from shareholder of $64,312, and a promissory note for $250,000.

During the three months ended September 30, 2010, we used cash of $28,000 in operations. During the three months ended September 30, 2010, net losses of $223,172 were adjusted for any non-cash items. During the three months ended September 30, 2009, net losses of $12,405 were not adjusted for any non-cash items.

During the three months ended September 30, 2010 and 2009, we did not have any cash flows from investment activities.

During the three months ended September 30, 2010, we received $28,000 from our financing activities. During the three months ended September, 2009, we received $0 from our financing activities

Quarterly Developments

On August 31, 2010, the Company’s Board of Directors appointed Luis Manuel Ornelas Lopez as a member of the Board of Directors by unanimous written consent.

On September 20, 2010, the Company registered on Form S-8, the 2010 Share Incentive Plan, under which the Company is authorized to issue up to twenty million (20,000,000) shares of the Company’s common stock to the Company’s employees, executives and consultants.

Going Concern

We have not attained profitable operations and is dependent upon obtaining financing to pursue any extensive acquisitions and exploration activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.

Future Financings

We will continue to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund planned acquisitions and activities.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Recent Accounting Pronouncements

The Company does not expect that the adoption of any recent accounting pronouncements will have a material impact on its financial statements.

Critical Accounting Policies

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid debt instruments purchased with maturity of three months or less to be cash equivalents.

REVENUE RECOGNITION

The Company recognizes revenue at the time services are performed.

USE OF ESTIMATES

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company’s short-term financial instruments consist of accounts payable. The carrying amounts of these financial instruments approximate fair value because of their short-term maturities. The Company does not hold or issue financial instruments for trading purposes nor does it hold or issue interest rate or leveraged derivative financial instruments.

EARNINGS PER SHARE

Basic Earnings per Share (“EPS”) is computed by dividing net income available to common stockholders by the weighted average number of common stock shares outstanding during the year. Diluted EPS is computed by dividing net income available to common stockholders by the weighted-average number of common stock shares outstanding during the year plus potential dilutive instruments such as stock options and warrants. Basic and diluted EPS are the same for the Company, as of September 30, 2010, as the Company does not have any common share equivalents outstanding.

INCOME TAXES

The Company uses the asset and liability method of accounting for income. This method requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of certain assets and liabilities. Deferred income tax assets and liabilities are computed annually for the difference between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period, plus or minus the change during the period in deferred tax assets and liabilities.

Deferred income taxes may arise from temporary differences resulting from income and expanse items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. As of September 30, 2010, the Company has recorded a valuation allowance to fully offset the deferred tax asset of approximately $116,000 related to its cumulative net operating losses of $342,177.

CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash. During the year the Company did not maintain cash deposits at financial institution in excess of the $100,000 limit covered by the Federal Deposit Insurance Corporation.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4.

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Under the supervision and with the participation of our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Exchange Act, as of September 30, 2010. Based on this evaluation, our principal executive officer and principal financial officer concluded as of September 30, 2010, that our disclosure controls and procedures were effective such that the information relating to the Company, including our consolidated subsidiaries, required to be disclosed in our SEC reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and (ii) is accumulated and communicated to management, including our principal executive officer/principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Our management, including our chief executive officer and chief financial officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

Management's Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate control over financial reporting (as defined in Rule 13a-15(f) promulgated under the Exchange Act. Our management assessed the effectiveness of our internal control over financial reporting as of September 30, 2010. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control-Integrated Framework. Our management has concluded that, as of September 30, 2010, our internal control over financial reporting is effective based on these criteria.

Changes in Internal Control over Financial Reporting

Our management has also evaluated our internal control over financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of our last evaluation.

The Company is not required by current SEC rules to include, and does not include, an auditor's attestation report. The Company's registered public accounting firm has not attested to Management's reports on the Company's internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which our director, officer or any affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

ITEM 1A.

RISK FACTORS.

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

1. Quarterly Issuances:

During the quarter, we did not issue any unregistered securities other than as previously disclosed.

2. Subsequent Issuances:

Subsequent to the quarter, we did not issue any unregistered securities other than as previously disclosed.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.

[REMOVED AND RESERVED]

ITEM 5.

OTHER INFORMATION.

ITEM 6.

EXHIBITS


Exhibit Number	Description of Exhibit	Filing
3.01	Articles of Incorporation	Incorporated by reference to our Registration Statement Form SB-2 filed with the SEC on October 23, 2007.
3.01a	Amended Articles of Incorporation	Filed with the SEC on July 9, 2010 as part of our Current Report on Form 8-K.
3.01b	Amended Articles of Incorporation	Filed with the SEC on July 9, 2010 as part of our Current Report on Form 8-K.
3.02	Bylaws	Incorporated by reference to our Registration Statement Form SB-2 filed with the SEC on October 23, 2007.
4.01	2010 Share Incentive Plan	Filed with the SEC on September 20, 2010 as part of our Form S-8.
4.02	Sample Qualified Stock Option Grant Agreement	Filed with the SEC on September 20, 2010 as part of our Form S-8.
4.03	Sample Non-Qualified Stock Option Grant Agreement	Filed with the SEC on September 20, 2010 as part of our Form S-8.
4.04	Sample Performance-Based Award Agreement	Filed with the SEC on September 20, 2010 as part of our Form S-8.
10.01	Asset Option and Purchase Agreement between Fero Industries, Inc. and Jerry Capehart dated April 22, 2007	Incorporated by reference to our Registration Statement Form SB-2 filed with the SEC on October 23, 2007.
10.02	Interim Agreement Between Fero and Pyro	Filed with the SEC on December 8, 2008 as part of our Current Report on Form 8-K.
10.03	Amending Agreement Between Fero and Pyro	Filed with the SEC on May 19, 2009 as part of our Current Report on Form 8-K.
10.04	Definitive Share Exchange Agreement Between Fero Industries, Inc. and Pyro Pharmaceuticals, Inc.	Filed with the SEC on October 14, 2009 as part of our Amended Current Report on Form 8-K/A.
10.05	Definitive Asset Purchase Agreement Between Fero Industries, Inc. and Pyro Pharmaceuticals, Inc.	Filed with the SEC on December 10, 2009 as part of our Current Report on Form 8-K.
10.06	Termination of Share Exchange Agreement Between Fero Industries, Inc. and Pyro Pharmaceuticals, Inc.	Filed with the SEC on December 10, 2009 as part of our Current Report on Form 8-K.
10.07	Asset Acquisition Agreement between Fero Industries, Inc and Gvest, Inc.	Filed with the SEC on May 28, 2010 as part of our Current Report on Form 8-K.
10.08	Promissory Note with Peter Hogendoorn executed on June 24, 2010	Filed with the SEC on July 1, 2010 as part of our Current Report on Form 8-K.
31.01	Certification of Principal Executive Officer Pursuant to Rule 13a-14	Filed herewith.
31.02	Certification of Principal Financial Officer Pursuant to Rule 13a-14	Filed herewith.
32.01	Certification of Principal Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act	Filed herewith.
32.02	Certification of Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act	Filed herewith.

SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



	FERO INDUSTRIES, INC.

Dated: December 13, 2010	By: /s/ Kyle Schlosser
	KYLE SCHLOSSER
	Chief Executive Officer and President


Dated: December 130, 2010	By: /s/ Leigh-Ann Squire
	LEIGH-ANN SQUIRE
	Chief Financial Officer, Secretary and Treasurer

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