UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended ~~September~~March 3031, ~~2012~~2013

[ ] 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: 000-53449

ANTIVIRAL TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)


Nevada		26-1188469
(State or other jurisdiction of incorporation)		(IRS Employer Identification Number)

Suite 1211, Tower II, Silvercord, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong
(Address of principal executive offices)
(852) 2317 1291
(Registrant’s telephone number, including area code)

Indicate by check 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 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

Indicate by check mark 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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [ ~~Not~~X ~~Applicable.~~] Yes [ ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and smaller reporting company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer [ ] (Do not check if a smaller reporting company)	Smaller reporting company [ X ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[ ] Yes [ X ] No

As of ~~September~~March 3031, ~~2012~~2013 the Issuer had 150,000,000 shares of common stock issued and outstanding.

INDEX

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Consolidated Balance Sheets as of ~~September~~March 3031, ~~2012~~2013 and December 31, ~~2011~~2012 (unaudited)	1
	Consolidated Statements of Operations and Comprehensive Loss for the Three Months and Nine Months ended September 30, 2012 and 2011 and from September 13, 2007 (Inception) to September 30, 2012 (unaudited)	2
	Consolidated Statements of Operations and Comprehensive Loss for the Three Months ended March 31, 2013 and 2012 and from September 13, 2007 (Inception) to March 31, 2013 (unaudited)	2
	Consolidated Statements of Stockholders' Deficit and Accumulated Other Comprehensive Deficit for the period September 13, 2007 (Inception) to September 30, 2012 (unaudited)	3
	Consolidated Statements of Stockholders' Deficit and Accumulated Other Comprehensive Deficit for the period September 13, 2007 (Inception) to March 31, 2013 (unaudited)	3
	Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2012 and 2011 and from September 13, 2007 (Inception) to September 30, 2012 (unaudited)	4
	Consolidated Statements of Cash Flows for the Three Months ended March 31, 2013 and 2012 and from September 13, 2007 (Inception) to March 31, 2013 (unaudited)	4
	Notes to Consolidated Financial Statements	5
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	13
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	15
Item 4.	Controls and Procedures	15
PART II. OTHER INFORMATION
Item 1	Legal Proceedings	16
Item 1A	Risk Factors	16
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	16
Item 3	Defaults Upon Senior Securities	16
Item 4	Mine Safety Disclosures	16
Item 5	Other Information	16
Item 6.	Exhibits	16
SIGNATURES		17

PART I FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

ANTIVIRAL TECHNOLOGIES, INC.
(A Development Stage Company, Formerly Table Mesa Acquisitions, Inc.)
(A Development Stage Company)
CONSOLIDATED BALANCE SHEETS
AS OF SEPTEMBER 30, 2012 AND DECEMBER 31, 2011
AS OF MARCH 31, 2013 AND DECEMBER 31, 2012
Currency stated in United States Dollars
		September 30, 2012		December 31, 2011
		March 31, 2013		December 31, 2012
	Notes	(Unaudited)		(Audited)
ASSETS
Current Assets:
Cash and cash equivalents		$	~~382~~553	$	~~3,935~~699
Prepayments, deposit and other receivables			2		~~946~~2
Total current assets			~~384~~555		~~4,881~~701
Non-Current Assets
Property, plant and equipment, net	6		1,~~925~~283		21,~~890~~603
Patents, net	7		~~483~~490,~~476~~381		~~397~~482,~~785~~892
Total non-current assets			~~485~~491,~~401~~664		~~400~~484,~~675~~495
Total Assets		$	~~485~~492,~~785~~219	$	~~405~~485,~~556~~196
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accruals and other payables		$	163,~~763~~740	$	~~167~~147,~~712~~320
Amounts due to directors and officers	8		~~967~~1,~~340~~079,921		~~789~~1,~~993~~024,051
Amount due to the shareholder	9		1,~~539~~633,~~992~~457		1,~~381~~616,~~646~~341
Total Liabilities		$	2,~~671~~877,~~095~~118	$	2,~~339~~787,~~351~~712
Stockholders' deficit:
Preferred stock, par value $0.001, 20,000,000 shares authorized, no share issued as of September 30, 2012 and December 31, 2011			-		-
Preferred stock, par value $0.001, 20,000,000 shares authorized, no share issued as of March 31, 2013 and December 31, 2012			-		-
Common stock, $0.001 par value; 150,000,000 shares authorized; 150,000,000 shares issued and outstanding as of September 30, 2012 and December 31, 2011.		$	150,000	$	150,000
Common stock, $0.001 par value; 150,000,000 shares authorized; 150,000,000 shares issued and outstanding as of March 31, 2013 and December 31, 2012.		$	150,000	$	150,000
Additional paid-in-capital			(144,858)		(144,858)
Accumulated other comprehensive income			(65,~~982~~787)		(28,~~881~~320)
Deficit accumulated during the development stage			(2,~~183~~384,~~470~~254)		(12,~~936~~299,~~056~~338)
Total stockholders' equity/(deficit)			(2,~~185~~384,~~310~~899)		(12,~~933~~302,~~795~~516)
Total Liabilities and Shareholders' equity		$	~~485~~492,~~785~~219	$	~~405~~485,~~556~~196

The accompanying notes are an integral part of these consolidated financial statements

ANTIVIRAL TECHNOLOGIES, INC.

(A Development Stage Company, Formerly Table Mesa Acquisitions, Inc.)

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011

FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012

AND FROM SEPTEMBER 13, 2007 (INCEPTION) TO SEPTEMBER 30, 2012

AND FROM SEPTEMBER 13, 2007 (INCEPTION) TO MARCH 31, 2013

Unaudited, currency stated in United States Dollars

For the period

~~For the period~~

Three Months ended

~~Nine Months ended~~

September 13, 2007

~~September 13, 2007~~

September 30,

(Inception to)

March 31,

(Inception to)

2012

2011

2012

2011

September 30, 2012

2013

2012

March 31, 2013

Revenue

Operating Expenses:

Selling and distribution costs

~~259~~85

25,322

653,~~845~~209

~~1,686~~

~~53,123~~

General and administrative expenses

7684,~~792~~831

9084,~~354~~822

~~240~~2,~~572~~213,223

~~272,133~~

~~2,012,525~~

Loss from operations before other expense

(7784,~~051~~916)

(90,~~356~~144)

(~~247~~2,~~417~~266,432)

~~(273,819)~~

~~(2,065,648)~~

Other expenses

-(95,224)

~~(95,224)~~

Write off of bad debt

-(3,585)

~~(3,585)~~

Preliminary expenses

-(1,393)

~~(1,393)~~

Interest income

314,342

~~14,342~~

Interest expense

-(31,962)

~~(31,962)~~

Net loss

(7784,~~050~~916)

(90,~~355~~142)

(~~247~~2,~~414~~384,254)

~~(273,810)~~

~~(2,183,470)~~

Other comprehensive income

Foreign currency translation gain / (loss)

~~(410)~~2,533

~~712~~(1,895)

(45,~~101~~787)

~~(1,104)~~

~~(6,982)~~

Comprehensive loss

(7782,~~460~~383)

(8992,~~643~~037)

(~~251~~2,~~515~~390,041)

~~(274,914)~~

~~(2,190,452)~~

Basic and diluted loss per common share

(0.00)

(0~~.00~~,02)

~~(0.00)~~

~~(0.01)~~

Basic and diluted weighted average number of common shares

150,000,000

~~150~~148,~~000~~871,~~000~~668

~~150,000,000~~

~~148,760,304~~

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

ANTIVIRAL TECHNOLOGIES, INC.
(A Development Stage Company, Formerly Table Mesa Acquisitions, Inc.)
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT AND ACCUMULATED OTHER COMPREHENSIVE DEFICIT
FOR THE PERIOD FROM SEPTEMBER 13, 2007 (INCEPTION) TO SEPTEMBER 30, 2012
FOR THE PERIOD FROM SEPTEMBER 13, 2007 (INCEPTION) TO MARCH 31, 2013
Unaudited, currency stated in United States Dollars, except for number of shares
					Additional	Accumulated other				Total
	Common stock				paid-in	comprehensive			Accumulated	stockholders'
	Shares		Amount		capital	deficit			deficit	equity (deficit)
Balance at September 13, 2007 (inception)	-	$	-	$	-	$	-	$	-	$	-
Issuance of founder shares	147,000,000		147,000		(146,999)		-		-		1
Foreign currency translation adjustment	-		-		-		1,042		-		1,042
Net loss	-		-		-		-		(319,416)		(319,416)
Balance at December 31, 2007	147,000,000		147,000		(146,999)		1,042		(319,416)		(318,373)
Foreign currency translation adjustment	-		-		-		10		-		10
Net loss	-		-		-		-		(310,453)		(310,453)
Balance at December 31, 2008	147,000,000		147,000		(146,999)		1,052		(629,869)		(628,816)
Reverse acquisition	3,000,000		3,000		2,141		-		-		5,141
Foreign currency translation adjustment	-		-		-		492		-		492
Net loss	-		-		-		-		(462,012)		(462,012)
Balance at December 31, 2009	150,000,000		150,000		(144,858)		1,544		(1,091,881)		(1,085,195)
Foreign currency translation adjustment	-		-		-		2,600		-		2,600
Net loss	-		-		-		-		(441,291)		(441,291)
Balance at December 31, 2010	150,000,000		150,000		(144,858)		4,144		(1,533,172)		(1,523,886)
Foreign currency translation adjustment	-		-		-		(7,025)		-		(7,025)
Net loss	-		-		-		-		(402,884)		(402,884)
Balance at December 31, 2011	150,000,000		150,000		(144,858)		(2,881)		(1,936,056)		(1,933,795)
Foreign currency translation adjustment	-		-		-		(45,~~101~~439)		-		(45,~~101~~439)
Net loss	-		-		-		-		(~~247~~363,~~414~~282)		(~~247~~363,~~414~~282)
Balance at September 30, 2012	150,000,000	$	150,000	$	(144,858)	$	(6,982)	$	(2,183,470)	$	(2,185,310)
Balance at December 31, 2012	150,000,000	$	150,000	$	(144,858)	$	(8,320)	$	(2,299,338)	$	(2,302,516)
Foreign currency translation adjustment	-		-		-		2,533		-		2,533
Net loss	-		-		-		-		(84,916)		(84,916)
Balance at March 31, 2013	150,000,000	$	150,000	$	(144,858)	$	(5,787)	$	(2,384,254)	$	(2,384,899)

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

ANTIVIRAL TECHNOLOGIES, INC.
(A Development Stage Company, Formerly Table Mesa Acquisitions, Inc.)
(A Development Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
FOR THE THREE MONTHS ENDED MARCH 31, 2013 AND 2012
AND FROM SEPTEMBER 13, 2007 (INCEPTION) TO SEPTEMBER 30, 2012
AND FROM SEPTEMBER 13, 2007 (INCEPTION) TO MARCH 31, 2013
Unaudited, currency stated in United States Dollars
					For the period
		Nine Months ended			September 30, 2007
		Three Months ended			September 30, 2007
		September 30			(Inception) to
		March 31			(Inception) to
	2012		2011		September 30, 2012
	2013		2012		March 31, 2013
Cash flows from operating activities:
Net Loss	$	(~~247~~84,~~414~~916)	$	(~~273~~90,~~810~~142)	$	(2,~~183~~384,~~470~~254)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		~~978~~327		~~959~~326		89,~~806~~460
Amortization		53,~~036~~305		31,~~524~~293		2632,~~165~~918
Written off on patents		-(618)		-		2332,~~834~~630
Change in assets and liabilities:
Prepaid expenses, deposits		~~944~~-		~~6,958~~945		(2)
Other receivables		-		-		-
Accruals		(316,~~949)~~420		4(12,~~954~~377)		163,~~273~~250
Related party payables		-		-		490
Amounts due to directors and officers		~~168~~54,~~306~~271		~~167~~56,~~119~~013		~~816~~926,~~137~~452
Compensatory option issuances		-		-		560
Net cash generated/(used) in operating activities		(7611,~~099~~211)		(9043,~~296~~942)		(1,~~144~~218,~~207~~496)
Cash flows from investing activities:
Purchase of plant and equipment		(3616)		(~~134~~33)		(10,~~871~~902)
Patents filing costs		(9010,~~769~~126)		(2513,~~801~~192)		(~~533~~555,~~536~~951)
Net cash used in investing activities		(9010,~~805~~142)		(2513,~~935~~225)		(~~544~~566,~~407~~853)
Cash flows from financing activities:
Amount due to the stockholder		~~158~~17,~~346~~116		7549,~~355~~769		1,~~539~~633,~~992~~457
Director’s advancement		91,~~041~~599		397,~~935~~150		~~151~~153,~~203~~469
Sales of common stock		-		-		21,000
Net cash (used in) provided by financing activities		~~167~~18,~~387~~715		~~115~~56,~~290~~919		1,~~712~~807,~~195~~926
Net increase/(decrease) in cash and cash equivalents		~~483~~(2,638)		(~~941~~248)		2322,~~581~~577
Effect of exchange rate changes on cash and cash equivalents		(42,~~036)~~492		(1,~~079~~866)		(2322,~~199~~024)
Cash and cash equivalents – beginning of period		~~3,935~~699		3,~~134~~935		-
Cash and cash equivalents – end of period	$	~~382~~553	$	1,~~114~~821	$	~~382~~553
Supplemental disclosure of cash flow information:
Interest paid	$	-	$	-	$	31,962
Income taxes paid	$	-	$	-	$	-

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

ANTIVIRAL TECHNOLOGIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE ~~NINE~~THREE MONTHS ENDED ~~SEPTEMBER~~MARCH 3031, ~~2012~~2013 (UNAUDITED)

(Stated in US Dollars)

NOTE 1. BASIS OF PRESENTATION

The accompanying unaudited financial statements of Antiviral Technologies, Inc. at ~~September~~March 3031, ~~2012~~2013 and ~~2011~~2012 have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial statements, instructions to Form 10-Q and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, ~~2011~~2012. In management's opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation to make our financial statements not misleading have been included. The results of operations for the periods ended ~~September~~March 3031, ~~2012~~2013 and ~~2011~~2012 presented are not necessarily indicative of the results to be expected for the full year. The December 31, ~~2011~~2012 balance sheet has been derived from the Company’s audited financial statements included in its annual report on Form 10-K for the year ended December 31, ~~2011~~2012.

NOTE 2. ORGANIZATION AND PRINCIPAL ACTIVITY

Antiviral Technologies, Inc. (“the Company”) was incorporated in the state of Nevada on September 13, 2007, as Table Mesa Acquisitions, Inc., and on October 13, 2009, changed its name to Antiviral Technologies, Inc. On October 14, 2009, the Company acquired Obio Pharmaceutical (H.K.) Ltd (“Obio HK”), and its wholly-owned subsidiary, Beijing Obio Pharmaceutical Co., Ltd (“Beijing Obio”) in a share exchange transaction (the “Share Exchange”). This transaction was accounted for as a “reverse merger” with Obio HK deemed to be the accounting acquirer and the Company as the legal acquirer. Consequently, the assets and liabilities and the historical operations that are reflected in the financial statements for periods prior to the Share Exchange are those of Obio HK, recorded at its historical cost basis. After completion of the Share Exchange, the Company’s consolidated financial statements include the assets and liabilities of the Company and Obio HK, the historical operations of Obio HK and the operations of the Company and its subsidiaries from the closing date of the Share Exchange.

Obio HK is a Hong Kong corporation which was formed on June 28, 1999 as Pacific Cosmos Investment Limited. After formation, it had several name changes including a change to J & P Capital (Hong Kong) Limited, on August 27, 1999, a change to Omega-Pharma (Hong Kong) Limited, on May 21, 2003, a change to Omega-BioPharma (HK) Limited, on December 10, 2003, and finally, a change to its current name, Obio Pharmaceutical (H.K.) Limited, on March 2, 2009.

Beijing Obio was incorporated under the laws of the PRC as a limited company on January 2, 2008.

The Company and its subsidiaries (hereinafter, collectively referred to as the “Group”) are engaged in human pharmaceutical research and development.

NOTE 3 CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS

Financial instruments which potentially expose the Company to concentrations of credit risk, consists of cash and other receivables as of ~~September~~March 3031, ~~2012~~2013 and ~~2011~~2012. The Company performs ongoing evaluations of its cash position and credit evaluations to ensure collections and minimize losses.

As of ~~September~~March 3031, ~~2012~~2013 and ~~2011~~2012, the Company’s bank deposits were all placed with banks in Hong Kong and the PRC where there is currently no rule or regulation in place for obligatory insurance of bank accounts.

The maximum amount of loss due to credit risk that the Company would incur if the counter parties to the financial instruments failed to perform is represented the carrying amount of each financial asset in the balance sheet.

NOTE 4 UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN

The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not ~~generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate significant earnings~~

generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations.

As of ~~September~~March 3031, ~~2012~~2013, the Company has not generated any revenue and has incurred an accumulated deficit since inception totaling $2,~~183~~384,~~470~~254 at ~~September~~March 3031, ~~2012~~2013 and its current liabilities exceed its current assets by $2,~~670~~876,~~711~~563. These financial statements do not include any adjustments relating to the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors noted above raise substantial doubts regarding the Company's ability to continue as a going concern.

NOTE 5 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)

Principles of consolidation

The consolidated financial statements are presented in US Dollars and include the accounts of the Company and its subsidiary. All significant inter-company balances and transactions are eliminated in consolidation.

The Company owned its subsidiary soon after its inception and continued to own the equity’s interests through ~~September~~March 3031, ~~2012~~2013. The following table depicts the identity of the subsidiary:


		*Attributable equity*	*Registered*
*Name of subsidiary*	*Place of Incorporation*	*interest %*	*capital*

Obio Pharmaceutical (H.K.) Ltd	Hong Kong	100	$1

Beijing Obio Pharmaceutical Co., Ltd	PRC	100	$200,000

(b)

Use of estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates.

(c)

Economic and political risks

The Company’s operation is conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy.

The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.

(d)

Property, plant and equipment

Plant and equipment are carried at cost less accumulated depreciation. Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows:

Office equipment

5 years

Testing equipment

5 years

The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of operation.

(e)

Patents

Patents that are acquired by the Company and/or self-invented are stated as cost less accumulated amortization. Amortization is provided over the respective useful lives, using the straight-line method. Estimated useful lives of the patents are 20 years from the date the patent is filed.

(f)

Accounting for the impairment of long-lived assets

The Company periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in ASC No. 360. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for the cost to dispose.

During the reporting years, there was no impairment loss.

(g)

Cash and cash equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains bank accounts in the Hong Kong. The subsidiaries of the Company maintain bank accounts in Hong Kong and the PRC.

(h)

Income taxes

The Company accounts for income taxes in interim periods in accordance with ASC Topic 740, Income Taxes (“ASC 740”). We have determined an estimated annual effective tax rate. The rate will be revised, if necessary, as of the end of each successive interim period during our fiscal year to our best current estimate. As of ~~September~~March 3031, ~~2012~~2013, the estimated effective tax rate for the year will be zero.

ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This pronouncement also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.

(i)

Foreign currency translation

The accompanying consolidated financial statements are presented in United States dollars. The functional currency of the Company is the Hong Kong Dollar (HKD) and Renminbi (RMB). The consolidated financial statements are translated into United States dollars from RMB at period-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

The exchange rates used to translate amounts in HKD and RMB into USD for the purposes of preparing the consolidated financial statements were as follows:

	September 30, 2012	December 31, 2011	September 30, 2011
	March 31, 2013	December 31, 2012	March 31, 2012
Twelve months ended HKD : USD exchange rate		7.~~7691~~7519
Nine months ended HKD : USD exchange rate	7.7549		7.7934
Three months ended HKD : USD exchange rate	7.7641		7.7646
Average nine months ended HKD : USD exchange rate	7.75965		7.78673
Average three months ended HKD : USD exchange rate	7.75613		7.76075

	September 30, 2012	December 31, 2011	September 30, 2011
	March 31, 2013	December 31, 2012	March 31, 2012
Twelve months ended RMB : USD exchange rate		6.~~3647~~3161
Nine months ended RMB : USD exchange rate	6.3340		6.4018
Three months ended RMB : USD exchange rate	6.2816		6.3247
Average nine months ended RMB : USD exchange rate	6.32745		6.50601
Average three months ended RMB : USD exchange rate	6.28582		6.32012

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions. No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. In addition, the current foreign exchange control policies applicable in PRC also restrict the transfer of assets or dividends outside the PRC.

(j)

Per Share Information

Earnings per share are based on the weighted average number of shares outstanding during the period after consideration of the dilutive effect, if any, for common stock equivalents, including stock options, restricted stock, and other stock-based compensation. Earnings per common share are computed in accordance with ASC Topic 260, Earnings Per Share, which requires companies to present basic earnings per share and diluted earnings per share. Basic earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share are computed by dividing net income by the weighted average number of shares of common stock outstanding and dilutive securities outstanding during the year. We had a net loss for the ~~nine~~three-month periods ended ~~September~~March 3031, ~~2012~~2013 and ~~2011~~2012, and accordingly, any outstanding equivalents would be anti-dilutive.

(k)

Recently Accounting Pronouncements

In April 2011, the FASB issued ASU 2011-03, Consideration of Effective Control on Repurchase Agreements, which deals with the accounting for repurchase agreements and other agreements that both entitle and obligate a transferor to repurchase or redeem financial assets before their maturity. ASU 2011-03 changes the rules for determining when these transactions should be accounted for as financings, as opposed to sales. The guidance in ASU 2011-03 is effective for the first interim or annual period beginning on or after December 15, 2011. The guidance should be applied prospectively to transactions or modifications of existing transactions that occur on or after the effective date. Early adoption is not permitted. The adoption of ASU 2011-03 is not expected to have a material impact on the Company’s financial condition or results of operation.

In May 2011, the FASB issued ASU 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and International Financial Reporting Standards (“IFRS”). ASU 2011-04 clarifies some existing concepts, eliminates wording differences between U.S. GAAP and IFRS, and in some limited cases, changes some principles to achieve convergence between U.S. GAAP and IFRS. ASU 2011-04 results in a consistent definition of fair value and common requirements for measurement of and disclosure about fair value between U.S. GAAP and IFRS. ASU 2011-04 also expands the disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. ASU 2011-04 will be effective for the Company beginning after December 15, 2011. The Company does not expect the adoption of ASU 2011-04 to have a material effect on its operating results or financial position.

In June 2011, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) 2011-05, Presentation of Comprehensive Income, which requires an entity to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income, or in two separate but consecutive statements. ASU 2011-05 eliminates the option to present components of other comprehensive income as part of the statement of equity. ASU 2011-05 will be effective for the Company beginning after December 15, 2011. The Company does not expect the adoption of ASU 2011-05 to have a material effect on its operating results or financial position. However, it will impact the presentation of comprehensive income.

In September 2011, the FASB has issued Accounting Standards Update (ASU) No. 2011-08, Intangibles—Goodwill and Other (Topic 350): Testing Goodwill for Impairment. ASU 2011-08 is intended to simplify how entities, both public and nonpublic, test goodwill for impairment. ASU 2011-08 permits an entity to first assess qualitative factors to determine whether it is "more likely than not" that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350, Intangibles-Goodwill and Other. The more-likely-than-not threshold is defined as having a likelihood of more than 50%. ASU 2011-08 is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted, including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011, if an entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance.

In December 2011, the FASB has issued Accounting Standards Update (ASU) No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. ASU No. 2011-11 is intended to provide enhanced disclosures that will enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on an entity’s financial position. This includes the effect or potential effect of rights of setoff associated with an entity’s recognized assets and recognized liabilities within the scope of this Update. The amendments require enhanced disclosures by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either Section 210-20-45 or Section 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either Section 210-20-45 or Section 815-10-45. An entity is required to apply the amendments for annual reporting periods beginning on or after

January 1, 2013, and interim periods within those annual periods. An entity should provide the disclosures required by those amendments retrospectively for all comparative periods presented.

In December 2011, the FASB has issued Accounting Standards Update (ASU) No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-11 is intended to supersede certain pending paragraphs in Accounting Standards Update No. 2011-05,Comprehensive Income (Topic 220): Presentation of Comprehensive Income, to effectively defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the Board time to redeliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private, and non-profit entities. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. Nonpublic entities should begin applying these requirements for fiscal years ending after December 15, 2012, and interim and annual periods thereafter.

In July 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-01, Health Care Entities (Topic 954): Continuing Care Retirement Communities -- Refundable Advance Fees. This ASU clarifies that an entity should classify an advance fee as deferred revenue when a continuing care retirement community has a resident contract that provides for payment of the refundable advance fee upon re-occupancy by a subsequent resident, which is limited to the proceeds of re-occupancy. Refundable advance fees that are contingent upon re-occupancy by a subsequent resident but are not limited to the proceeds of re-occupancy should be accounted for and reported as a liability. For public entities (including conduit bond obligors), the amendments in ASU No. 2012-01 are effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments to the codification in the ASU are effective for fiscal periods beginning after December 15, 2013. Early adoption is permitted. The amendments in ASU No. 2012-01 should be applied retrospectively by recording a cumulative-effect adjustment to opening retained earnings (or unrestricted net assets) as of the beginning of the earliest period presented.

In July 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-02, Intangibles--Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This ASU states that an entity has the option first to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events and circumstances, an entity concludes that it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. However, if an entity concludes otherwise, then it is required to determine the fair value of the indefinite-lived intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying amount in accordance with Codification Subtopic 350-30, Intangibles--Goodwill and Other, General Intangibles Other than Goodwill. Under the guidance in this ASU, an entity also has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test. An entity will be able to resume performing the qualitative assessment in any subsequent period. The amendments in this ASU are effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. Early adoption is permitted, including for annual and interim impairment tests performed as of a date before July 27, 2012, if a public entity’s financial statements for the most recent annual or interim period have not yet been issued or, for nonpublic entities, have not yet been made available for issuance.

In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-03, Technical Amendments and Corrections to SEC Sections. This ASU amends various SEC paragraphs pursuant to SAB 114, SEC Release No. 33-9250, and ASU 2010-22, which amend or rescind portions of certain SAB Topics.

In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-04, Technical Corrections and Improvements. This ASU make technical corrections, clarifications, and limited-scope improvements to various Topics throughout the Codification. The amendments in this ASU that will not have transition guidance will be effective upon issuance for both public entities and nonpublic entities. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2013.

In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-05, Statement of Cash Flows (Topic 230). This ASU addresses how cash receipts arising from the sale of certain donated financial assets, such as securities, should be classified in the statement of cash flows of not-for-profit entities (NFPs). Some NFPs classify those cash receipts as investing cash inflows, while other entities classify them as either operating cash inflows or financing cash inflows, consistent with their treatment of inflows arising from cash contributions. The objective of this Update is for an NFP to classify cash receipts from the sale of donated financial assets consistently with cash donations received in the statement of cash flows if those cash receipts were from the sale of donated financial assets that upon receipt were directed without the NFP imposing any limitations for sale and were converted nearly immediately into cash. The amendments in the ASU are effective prospectively for fiscal years, and interim fiscal periods within those years, beginning after June 15, 2013. Retrospective application to all periods presented upon the date of adoption is permitted. Early adoption from the beginning of the fiscal year of adoption is permitted.

years, beginning after June 15, 2013. Retrospective application to all periods presented upon the date of adoption is permitted. Early adoption from the beginning of the fiscal year of adoption is permitted.

In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-06, Business Combinations (Topic 805): Subsequent Accounting for an Indemnification Asset Recognized at the Acquisition Date as a Result of a Government-Assisted Acquisition of a Financial Institution. This ASU addresses the diversity in practice about how to interpret the terms on the same basis and contractual limitations when subsequently measuring an indemnification asset recognized in a government-assisted (Federal Deposit Insurance Corporation or National Credit Union Administration) acquisition of a financial institution that includes a loss-sharing agreement (indemnification agreement). For public and nonpublic entities, the amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2012. Early adoption is permitted. The amendments should be applied prospectively to any new indemnification assets acquired after the date of adoption and to indemnification assets existing as of the date of adoption arising from a government-assisted acquisition of a financial institution.

In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-07, Entertainment--Films (Topic 926): Accounting for Fair Value Information That Arises after the Measurement Date and Its Inclusion in the Impairment Analysis of Unamortized Film Costs. This ASU eliminates the rebuttable presumption that the conditions leading to the write-off of unamortized film costs after the balance sheet date existed as of the balance sheet date. The amendments also eliminate the requirement that an entity incorporate into fair value measurements used in the impairment tests the effects of any changes in estimates resulting from the consideration of subsequent evidence if the information would not have been considered by market participants at the measurement date. or SEC filers, the amendments are effective for impairment assessments performed on or after December 15, 2012. For all other entities, the amendments are effective for impairment assessments performed on or after December 15, 2013. The amendments resulting from this ASU should be applied prospectively. Earlier application is permitted, including for impairment assessments performed as of a date before October 24, 2012, if, for SEC filers, the entity’s financial statements for the most recent annual or interim period have not yet been issued or, for all other entities, have not yet been made available for issuance.

In January 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities. This ASU clarifies that ordinary trade receivables and receivables are not in the scope of ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities. Specifically, ASU 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification™ (Codification) or subject to a master netting arrangement or similar agreement. The FASB undertook this clarification project in response to concerns expressed by U.S. stakeholders about the standard’s broad definition of financial instruments. After the standard was finalized, companies realized that many contracts have standard commercial provisions that would equate to a master netting arrangement, significantly increasing the cost of compliance at minimal value to financial statement users. An entity is required to apply the amendments in ASU 2013-01 for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. An entity should provide the required disclosures retrospectively for all comparative periods presented. The effective date is the same as the effective date of ASU 2011-11.

In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU improves the transparency of reporting these reclassifications. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period. Those gains and losses are later reclassified out of accumulated other comprehensive income into net income. The amendments in this ASU do not change the current requirements for reporting net income or other comprehensive income in financial statements. All of the information that this ASU requires already is required to be disclosed elsewhere in the financial statements under U.S. GAAP.

The new amendments will require an organization to:

Present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income - but only if the item reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period.

Cross-reference to other disclosures currently required under U.S. GAAP for other reclassification items (that are not required under U.S. GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account (e.g., inventory for pension-related amounts) instead of directly to income or expense.

The amendments apply to all public and private companies that report items of other comprehensive income. Public companies are required to comply with these amendments for all reporting periods (interim and annual). A private company is required to meet the reporting requirements of the amended paragraphs about the roll forward of accumulated other comprehensive income for both interim and annual reporting periods. However, private companies are only required to provide the information about the effect of reclassifications on line items of net income for annual reporting periods, not for interim reporting periods. The amendments are effective for reporting periods beginning after December 15, 2012, for public companies and are effective for reporting periods beginning after December 15, 2013, for private companies. Early adoption is permitted.

In February 2013, FASB issued Accounting Standards Update (ASU) No. 2013-03, Financial Instruments (Topic 825). This ASU clarifies the scope and applicability of a disclosure exemption that resulted from the issuance of Accounting Standards Update No. 2011-04, Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure

Requirements in U.S. GAAP and IFRSs. The amendment clarifies that the requirement to disclose "the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety (Level 1, 2, or 3)" does not apply to nonpublic entities for items that are not measured at fair value in the statement of financial position, but for which fair value is disclosed. This ASU is the final version of Proposed Accounting Standards Update 2013-200—Financial Instruments (Topic 825) which has been deleted. The amendments are effective upon issuance.

In February 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-04, Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date. This ASU provides guidance for the recognition, measurement, and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this ASU is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors. The guidance in this ASU also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. For nonpublic entities, the amendments are effective for fiscal years ending after December 15, 2014, and interim periods and annual periods thereafter. The amendments in this ASU should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the ASU’s scope that exist at the beginning of an entity’s fiscal year of adoption. An entity may elect to use hindsight for the comparative periods (if it changed its accounting as a result of adopting the amendments in this ASU) and should disclose that fact. Early adoption is permitted.

In March 2013, FASB has issued Accounting Standards Update (ASU) No. 2013-05, Foreign Currency Matters (Topic 830). This ASU resolve the diversity in practice about whether Subtopic 810-10, Consolidation—Overall, or Subtopic 830-30, Foreign Currency Matters—Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights)within a foreign entity. In addition, the amendments in this Update resolve the diversity in practice for the treatment of business combinations achieved in stages (sometimes also referred to as step acquisitions) involving a foreign entity. This ASU is the final version of Proposed Accounting Standards Update EITF11Ar—Foreign Currency Matters (Topic 830), which has been deleted. The amendments in this Update are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. For nonpublic entities the amendments in this Update are effective prospectively for the first annual period beginning after December 15, 2014, and interim and annual periods thereafter. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity’s fiscal year of adoption.

Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s financial statements upon adoption.

NOTE 6 PROPERTY, PLANT AND EQUIPMENT, NET

Property and equipment is summarized as follows:

		As of September 30, 2012		As of December 31, 2011
		As of March 31, 2013		As of December 31, 2012
		-------------------------------		-------------------------------
Cost
Plant and Machinery	$	3~~,893~~.888	$	3,~~886~~894
Furniture, fixture and equipment		1,~~765~~780		1,~~756~~770
Office equipment		5,~~213~~234		5,~~194~~222
		-----------------------		-----------------------
		10,871		10,836
		10,902		10,886
Accumulated depreciation		(89,~~946~~619)		(79,~~946~~283)
		-----------------------		-----------------------
	$	1,~~925~~283	$	21,~~890~~603
		==============		==============

Depreciation expenses included in the general and administrative expenses for the ~~nine~~three months ended ~~September~~March 3031, ~~2012~~2013 and for the year ended December 31, ~~2011~~2012 were $~~978~~327 and $1,~~284~~305.

NOTE 7 PATENTS, NET

Patents are summarized as follows:

		As of September 30, 2012		As of December 31, 2011
		As of March 31, 2013		As of December 31, 2012
		-------------------------------		-------------------------------
Cost
Patents	$	~~442~~456,~~648~~346	$	~~352~~445,~~000~~497
License		6766,~~054~~975		6667,~~933~~080
		-----------------------		-----------------------
		509,702		418,933
		523,321		512,577
Accumulated amortization		(2632,~~226~~940)		(2129,~~148~~685)
		-----------------------		-----------------------
	$	~~483~~490,~~476~~381	$	~~397~~482,~~785~~892
		==============		==============

Amortization included in the general and administrative expenses for the ~~nine~~three months ended ~~September~~March 3031, ~~2012~~2013 and for the year ended December 31, ~~2011~~2012 were $53,~~036~~305 and $48,~~766~~484.

Written off on patents included in the general and administrative expenses for the period September 13, 2007 (Inception) to ~~September~~March 3031, ~~2012~~2013 was $2332,~~834~~630.

NOTE 8 AMOUNTS DUE TO DIRECTORS AND OFFICERS

Amounts due to directors and officers were the amount due to Mr. Francis Chi, Director, Dr. Bill Piu Chan, Director and Chief Executive Officer, Mr. Kin Chung Cheng, Director and Chief Financial Officer and Dr. Jess Gilbert Thoene, Director and Chief Technical Officer and was unsecured, interest free and repayable upon completion of any fund raising exercise of Obio HK or ATI. The balances due to directors and officers are $~~967~~1,~~340~~079,921 and $~~789~~1,~~993~~024,051 as of ~~September~~March 3031, ~~2012~~2013 and December 31, ~~2011~~2012 respectively.

NOTE 9 AMOUNT DUE TO THE STOCKHOLDER

Amount due to the stockholder was unsecured, interest free and does not have a fixed repayment date.

NOTE 10 COMMON STOCK

As a result of the share exchange transaction on October 14, 2009, which is being accounted for as a “reverse merger,” the Group’s capital structure has changed. Following completion of the share exchange transaction, the Company has a total of 150,000,000 shares of $0.001 par value common stock issued and outstanding. Common stock recorded was $150,000 with additional paid-in capital of ($144,858).

NOTE 11 RELATED PARTY TRANSACTIONS

In the normal course of its business, the group carried out the following related party transactions during the ~~nine~~three months ended ~~September~~March 3031, ~~2012~~2013 and ~~2011~~2012.

		For the nine months ended
		For the three months ended
		September 30, 2012		September 30, 2011
		March 31, 2013		March 31, 2012
Company secretarial fee paid to related parties (a)	$	~~502~~503	$	~~498~~502

(a)

The company secretarial fee was paid to related companies controlled by Chan Kin Man, Eddie, a director of the stockholder.

NOTE 12 FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC Topic 820, “Fair Value Measurements and Disclosures” ("ASC 820"), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows:

Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange.

Level 2 - Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs.

Level 3 - Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights.

The Company’s financial instruments consist of cash and cash equivalents, payables, and amounts due to officers, directors and stockholder. The carrying values of cash and cash equivalents, payables, and amounts due to officers, directors and stockholder approximate their fair value due to their short maturities.

NOTE 13 SEGMENT INFORMATION

The Company is principally engaged in business of human pharmaceutical research and development. No significant revenues are derived during the reporting periods. Accordingly, no analysis of the Company’s sales and assets by geographical market is presented.

NOTE 14 SUBSEQUENT EVENTS

In preparing these financial statements, the Company evaluated the events and transactions that occurred from ~~October~~April 1, ~~2012~~2013, through ~~November~~May 79, ~~2012~~2013, the date these financial statements were issued. The Company has made the required additional disclosures in reporting periods in which subsequent events occur.

ITEM 2. MANAGEMENT’S DISCUSSIONS AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS

CERTAIN STATEMENTS IN THIS REPORT, INCLUDING STATEMENTS IN THE FOLLOWING DISCUSSION, ARE WHAT ARE KNOWN AS "FORWARD LOOKING STATEMENTS", WHICH ARE BASICALLY STATEMENTS ABOUT THE FUTURE. FOR THAT REASON, THESE STATEMENTS INVOLVE RISK AND UNCERTAINTY SINCE NO ONE CAN ACCURATELY PREDICT THE FUTURE. WORDS SUCH AS "PLANS," "INTENDS," "WILL," "HOPES," "SEEKS," "ANTICIPATES," "EXPECTS "AND THE LIKE OFTEN IDENTIFY SUCH FORWARD LOOKING STATEMENTS, BUT ARE NOT THE ONLY INDICATION THAT A STATEMENT IS A FORWARD LOOKING STATEMENT. SUCH FORWARD LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING OUR PLANS AND OBJECTIVES WITH RESPECT TO THE PRESENT AND FUTURE OPERATIONS OF THE COMPANY, AND STATEMENTS WHICH EXPRESS OR IMPLY THAT SUCH PRESENT AND FUTURE OPERATIONS WILL OR MAY PRODUCE REVENUES, INCOME OR PROFITS. NUMEROUS FACTORS AND FUTURE EVENTS COULD CAUSE THE COMPANY TO CHANGE SUCH PLANS AND OBJECTIVES OR FAIL TO SUCCESSFULLY IMPLEMENT SUCH PLANS OR ACHIEVE SUCH OBJECTIVES, OR CAUSE SUCH PRESENT AND FUTURE OPERATIONS TO FAIL TO PRODUCE REVENUES, INCOME OR PROFITS. THEREFORE, THE READER IS ADVISED THAT THE FOLLOWING DISCUSSION SHOULD BE CONSIDERED IN LIGHT OF THE DISCUSSION OF RISKS AND OTHER FACTORS CONTAINED IN THIS REPORT ON FORM 10-Q AND IN THE COMPANY'S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. NO STATEMENTS CONTAINED IN THE FOLLOWING DISCUSSION SHOULD BE CONSTRUED AS A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE OR FUTURE RESULTS.

Overview

History

The Registrant was incorporated in the state of Nevada on September 13, 2007, as Table Mesa Acquisitions, Inc., and on October 13, 2009, changed its name to Antiviral Technologies, Inc.. On October 14, 2009, the Registrant acquired Obio Pharmaceutical (H.K.) Limited, and its wholly-owned subsidiary, Beijing Obio Pharmaceutical Co., Ltd. in a share exchange transaction. This transaction was accounted for as a “reverse merger” with Obio HK deemed to be the accounting acquirer and the Registrant as the legal acquirer. Consequently, the assets and liabilities and the historical operations that are reflected in the financial statements for periods prior to the share exchange transaction are those of Obio HK, recorded at its historical cost basis. Following completion of the share exchange transaction, the Registrant’s consolidated financial statements include the assets and liabilities of both the Registrant and Obio HK, the historical operations of Obio HK and the operations of the Registrant and its subsidiaries from October 14, 2009, the closing date of the share exchange transaction.

Corporate Background

We are a development stage biotechnology company utilizing Cysteamine compositions in the development of antiviral drugs for human application. We have been assigned rights in certain patents and have obtained licenses to use certain technology owned by Walcom Group Limited. The rights assigned or licensed to us by Walcom include its proprietary micro-encapsulation technology for cysteamine. We intend to use the rights assigned or licensed to us by Walcom Group, which were developed by Walcom Group for use in develop of products for animals, in conjunction with efforts to develop products for human application.

Because we are in the development stage of operations the relationships between revenue, cost of revenue, and operating expenses reflected in our financial statements are not necessarily indicative of the relationship between and among such items as we expand and as we progress towards operations. Accordingly, there is currently no basis upon which we are able to provide a meaningful comparison of our results of operation for one period as compared to another period.

Liquidity and Capital Resources

As of ~~September~~March 3031, ~~2012~~2013, we had current assets of $~~384~~555 consisting of cash and cash equivalents of $~~382~~553 as well as deposits and prepayments of $2. As of ~~September~~March 3031, ~~2012~~2013, our total assets were $~~485~~492,~~785~~219, consisting primarily of the net value of patents of $~~483~~490,~~476~~381.

As of ~~September~~March 3031, ~~2012~~2013, our current liabilities were $2,~~671~~877,~~095~~118, consisting ~~primarily~~ of amounts due to our holding company and directors/officers in the ~~amount~~amounts of $1,~~539~~633,~~992~~457 and $1,079,921 respectively, which are unsecured, interest free and repayable upon demand.

As described more fully below under Plan of Operations, our plan of operations calls for significant expenditures in connection with conducting additional research and development activities and conducting clinical trials TG 21.

Plan of Operations

Our plan of operations for the fiscal year ending December 31, ~~2012~~2013, is to continue to seek for additional funding to conduct additional research and development activities regarding TG 21 and other potential antiviral solutions for various viruses. ~~Our~~ initial consideration will be to begin pre-clinical and clinical trials in China in cooperation with the South China Center for Innovative Pharmaceuticals (SCCIP), to undertake efforts in the United Kingdom directed toward international recognition of TG 21, to conduct additional research and development in India and to prepare for filing of additional patent applications in various countries.

We currently estimate that we will require approximately US$7 million to conduct initial clinical trials and the additional research and development activities described above, and approximately US$3 million for working capital purposes. We do not currently have any arrangements in place to obtain the necessary financing for these activities and may not be able to find such financing on terms which are acceptable to us. We believe the most likely source of additional financing presently available to us is through sale of equity capital after, or in conjunction with, the process of establishing a public trading market for our shares. There can be no assurance that a trading market will be established, or we will be able to raise additional capital on terms we consider satisfactory, either after, or in conjunction with, the establishment of a trading market for our shares.

We have no current sources of liquidity other than cash on hand. To date, our limited operations have been funded primarily through advances received from our majority shareholder. However, our shareholder is not obligated to continue to make such advances, and there is no assurance it will continue to do so. We do not have in place any line of credit or other credit facility, and our lack of revenue and our assets with which to be collateralized of a loan would make borrowings from conventional financial institutions or funds a difficulty. For this reason, we believe that the most feasible source of funds currently available to us is from the offer and sale of equity securities, or debt securities convertible into equity securities either after, or in conjunction with, the establishment of a public trading market for our shares.

Going Concern Consideration

The Company is a development stage company. The Company incurred a net loss of $~~247~~84,~~414~~916 for the ~~nine~~three months ended ~~September~~March 3031, ~~2012~~2013 and has an accumulated net loss of $2,~~183~~384,~~470~~254 as at ~~September~~March 3031, ~~2012~~2013. The Company's ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered in emerging markets and the competitive environment in which the Company operates. The Company is pursuing financing for its operations. Failure to secure such financing and to raise additional equity capital may result in the Company depleting its available funds and not being able to pay its obligations. These financial statements do not include any adjustment to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable

ITEM 4. CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean a company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange 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 Securities Exchange Act of 1934 is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported with the time periods specified. Our chief executive officer and chief financial officer also concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievement of these objectives.

Changes in Internal Control over Financial Reporting

There was no change in the Company's internal control over financial reporting during the period ended ~~September~~March 3031, ~~2012~~2013, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is not a party to any pending legal proceedings, and no such proceedings are known to be contemplated. No director, officer or affiliate of the Company, and no owner of record or beneficial owner of more than 5.0% of the securities of the Company, or any associate of any such director, officer or security holder is a party adverse to the Company or has a material interest adverse to the Company in reference to pending litigation.

ITEM 1A. RISK FACTORS

Smaller reporting companies are not required to provide the information required by this item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES.

N/A

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

3.1	Original Articles of Incorporation filed with the State of Nevada on September 13, 2007, incorporated by reference from exhibit to Form 10 filed with the Securities and Exchange Commission on October 8, 2008 (incorporated by reference from exhibit to Form 8-K filed with the Securities and Exchange Commission on October 22, 2009).
3.2	Bylaws incorporated by reference from exhibit to Form 10 filed with the Securities and Exchange Commission on October 8, 2008 (incorporated by reference from exhibit to Form 8-K filed with the Securities and Exchange Commission on October 22, 2009).
31.1	Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101	SCH XBRL Schema Document.*
101	INS XBRL Instance Document*
101	CAL XBRL Taxonomy Extension Calculation Linkbase Document.*
101	LAB XBRL Taxonomy Extension Label Linkbase Document*
101	PRE XBRL Taxonomy Extension Presentation Linkbase Document*
101	DEF XBRL Taxonomy Extension Definition Linkbase Document*

* filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

ANTIVIRAL TECHNOLOGIES, INC.

By:

/s/ Bill Piu ~~Chan~~CHAN

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

Bill Piu CHAN, Chief Executive Officer

Date: ~~November~~ May 139, ~~2012~~2013.

By:

/s/ Kin Chung ~~Cheng~~CHENG

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

Kin Chung CHENG, Chief Financial Officer

Date: ~~November~~ May 139, ~~2012.~~2013

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