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UNITED STATES ~~SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549~~

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2013 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission file number 000-50156 MOLECULAR PHARMACOLOGY (USA) LIMITED (Exact name of registrant as specified in its charter) NEVADA 71-0900799 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Drug Discovery Centre 284 Oxford Street, Leederville 6007 Perth, Western Australia (Address of principal executive offices) (Zip Code) 011-61-8-9443-3011 (Registrant's telephone number, including area code) Not Applicable (Former name, former address and formal fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o 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 (s232.405 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 applicable - Issuer does not have a Web site Yes o No o

(Mark One)
	X		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended September 30, 2014
		or

			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the transition period from __________ to __________
Commission file number 000-50156

MOLECULAR PHARMACOLOGY (USA) LIMITED
(Exact name of registrant as specified in its charter)
NEVADA				71-0900799
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)
Drug Discovery Centre 284 Oxford Street, Leederville 6007 Perth, Western Australia
(Address of principal executive offices)					(Zip Code)
011-61-8-9443-3011
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and formal fiscal year, if changed since last report)

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 such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
						Yes x	No o

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 (s232.405 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 applicable - Issuer does not have a Web site						Yes o	No o

Indicate by check mark whether the registrant is large accelerated filer, an accelerated filer, a non accelerated filer, or a small 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 o Accelerated Filer o Non-Accelerated Filer o 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 o No x APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 and 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes o No x APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date. 111,553,740 common shares issued and outstanding as of February 11, 2014.

Indicate by check mark whether the registrant is 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 o

Accelerated Filer o

Non-Accelerated Filer o (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 o

No x

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY

PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 and 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes o

No x

APPLICABLE ONLY TO CORPORATE ISSUERS:

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date.

111,553,740 common shares issued and outstanding as of November 13, 2014.

iii

~~MOLECULAR~~ MOLECULAR PHARMACOLOGY (USA) LIMITED Form 10-Q ~~December~~September 3130, ~~2013~~2014

Table of Contents

PART I –- FINANCIAL INFORMATION Item 1. Interim Consolidated Financial Statements 1 1 Item 2. Management’'s Discussion and Analysis of Financial Condition and Results of Operations 20 20 Item 3. Quantitative and Qualitative Disclosures About Market Risk 28 29 Item 4. Controls and Procedures 29 PART II –- OTHER INFORMATION Item 1. Legal Proceedings 31 31 Item 1A. Risk Factors 31 31 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 31 31 Item 3. Defaults Upon Senior Securities 31 31 Item 4. Mine Safety Disclosures 31 31 Item 5. Other Information 31 Item 6. Exhibits 32 SIGNATURES 32

~~iii~~i

PART 1 - FINANCIAL INFORMATION

Item 1. Interim Consolidated Financial Statements.

The information in this report for the ~~six~~three months ended ~~December~~September 3130, ~~2013~~2014, is unaudited but includes all adjustments (consisting only of normal recurring accruals, unless otherwise indicated) which Molecular Pharmacology (USA) ~~Limited~~ Limited ("Molecular USA" or the "Company") considers necessary for a fair presentation of the financial position, results of operations, changes in stockholders' deficiency and cash flows for those periods.

The interim consolidated financial statements should be read in conjunction with Molecular USA's consolidated financial statements and the notes thereto contained in Molecular USA's Audited Financial Statements for the year ended June 30, ~~2013~~2014, in the Form 10-K filed with the Securities and Exchange Commission (the "SEC") on ~~August~~September 138, ~~2013~~2014.

Interim results are not necessarily indicative of results for the full fiscal year.

The unaudited interim consolidated financial statements start on the next page.

~~Interim Consolidated~~ ~~Financial~~Molecular ~~Statements(Expressed in~~Pharmacology ~~U.S. Dollars)~~(~~Unaudited~~USA)31 ~~December 2013~~Limited

2 (A Development Stage Company)

~~Molecular Pharmacology (USA)~~ ~~Limited(A~~Interim ~~Development~~Consolidated ~~Stage Company)~~Financial Statements

	As at31 December2013	As at30 June2013(Audited)
	$	$
Assets
Current
Cash and cash equivalents	4,997	7,046
Amounts receivable	4,465	5,070
	9,462	12,116
Equipment (Note 5)	118	140
	9,580	12,256
Liabilities
Current
Accounts payable and accrued liabilities (Note 6)	20,482	21,628
Due to related parties (Note 7)	2,051,979	2,044,501
	2,072,461	2,066,129
Stockholders’ deficiency
Capital stock (Note 8)
Authorized
300,000,000 common shares, par value $0.001
Issued and outstanding
31 December 2013 – 111,553,740 common shares, par value $0.001
30 June 2013 – 111,553,740 common shares, par value $0.001	111,554	111,554
Additional paid-in capital	106,707	106,707
Cumulative translation adjustment	(155,867)	(210,186)
Deficit, accumulated during the development stage	(2,125,275)	(2,061,948)
	(2,062,881)	(2,053,873)
	9,580	12,256

(Expressed in U.S. Dollars)

~~Nature and Continuance of Operations~~ (~~Note 1~~Unaudited)

On 30 ~~behalf~~September ~~of the Board:~~2014

~~/s/ Jeffrey Edwards DirectorJeffrey Edwards~~ 2

~~The accompanying notes are an integral part of these~~ ~~interim~~Molecular Pharmacology ~~consolidated~~(USA) ~~financial statements.~~Limited

3 (A Development Stage Company)

~~Molecular Pharmacology (USA)~~ ~~Limited(A Development Stage Company)~~Interim Consolidated ~~Statements~~Balance ~~of Operations(Expressed in U.S. Dollars)(Unaudited)~~Sheets

	For theperiod from the date ofinception on14 July 2004to31 December2013	For thethree monthperiod ended 31 December2013	For thethree monthperiod ended 31 December2012	For thesix monthperiod ended31 December2013	For thesix monthperiod ended31 December2012
	$	$	$	$	$
Expenses
Advertising and promotion	23,739	-	-	-	-
Amortization (Note 5)	6,909	11	84	22	170
Analysis	33,947	-	-	-	-
Consulting (Note 7)	1,447,831	8,182	30,638	23,467	64,118
Office and miscellaneous (Note 7)	262,031	5,050	6,786	15,170	15,780
Professional fees	426,581	7,347	10,566	21,044	19,743
Public relations	3,656	-	-	-	-
Rent (Note 7)	27,759	-	-	-	-
Salaries and benefits	44,464	-	-	-	-
Transfer agent and filing fees	20,796	1,964	-	3,624	-
Travel	111,710	-	-	-	359
Net loss before other items	(2,409,423)	(22,554)	(48,074)	(63,327)	(100,170)
Other items
Export market development grants	69,629	-	-	-	-
Write-off of equipment	(823)	-	(823)	-	(823)
Interest income	2,322	-	-	-	-
Research and development tax refund	213,020	-	-	-	-
Net loss for the period	(2,125,275)	(22,554)	(48,897)	(63,327)	(100,993)
Basic and diluted loss per common share		(0.001)	(0.001)	(0.001)	(0.001)
Weighted average number of common shares used in per share calculations		111,553,740	111,553,740	111,553,740	111,553,740
Comprehensive income (loss)
Net loss for the period	(2,125,275)	(22,554)	(48,897)	(63,327)	(100,993)
Foreign currency translation adjustment	(155,867)	93,600	(1,829)	54,319	(32,763)
Total comprehensive income (loss) for the period	(2,281,142)	71,046	(50,726)	(9,008)	(133,756)
Basic and diluted comprehensive income (loss) per common share		0.001	(0.001)	(0.001)	(0.001)

(Expressed in U.S. Dollars)

~~The accompanying notes are an integral part of these~~ ~~interim consolidated financial statements.~~(Unaudited)

	As at 30 September 2014	As at 30 June 2014 (Audited)
	$	$
Assets

Current
Cash and cash equivalents	1,517	2,378
Amounts receivable	7,327	6,493

	8,844	8,871

Equipment (Note 4)	-	97

	8,844	8,968

Liabilities

Current
Accounts payable and accrued liabilities (Note 5)	32,008	34,526

Due to related parties (Note 6)	2,075,710	2,207,296

	2,107,718	2,241,822

Stockholders' deficiency
Capital stock (Note 7)
Authorized
300,000,000 common shares, par value $0.001
Issued and outstanding
30 September 2014 - 111,553,740 common shares, par value $0.001
30 June 2014 - 111,553,740 common shares, par value $0.001	111,554	111,554
Additional paid-in capital	106,707	106,707
Cumulative translation adjustment	(109,233)	(272,239)
Deficit, accumulated during the development stage	(2,207,902)	(2,178,876)

	(2,098,874)	(2,232,854)

	8,844	8,968

~~Molecular~~ Nature ~~Pharmacology~~and Continuance of Operations (~~USA~~Note 1), Commitment ~~Limited~~(ANote ~~Development Stage Company~~13)~~Interim Consolidated~~ ~~Statements~~and ofSubsequent ~~Cash~~Event ~~Flows~~(~~Expressed~~Note ~~in U.S. Dollars~~14)~~(Unaudited)~~

	For theperiod fromthe date of inception on14 July 2004to31 December2013	For thethree monthperiod ended31 December2013	For thethree monthperiod ended31 December2012	For thesix monthperiod ended31 December2013	For thesix monthperiod ended31 December2012
	$	$	$	$	$
Cash flows used in operating activities
Net loss for the period	(2,125,275)	(22,554)	(48,897)	(63,327)	(100,993)
Adjustments to reconcile net loss to cash used by operating activities
Amortization	6,909	11	84	22	170
Write-down of intangible assets	1,278	-	-	-	-
Write-off of equipment	823	-	823	-	823
Changes in operating assets and liabilities
Decrease (increase) in amounts receivable	(2,239)	958	(673)	605	(2,411)
Decrease in accounts payable and accrued liabilities	(26,935)	(13,918)	(11,116)	(1,146)	(12,068)
	(2,145,439)	(35,503)	(59,779)	(63,846)	(114,479)
Cash flows from investing activities
Purchase of equipment	(7,850)	-	-	-	-
Purchase of intangible assets	(1,278)	-	-	-	-
Cash acquired on the purchase of Molecular Pharmacology (USA) Limited	37,163	-	-	-	-
	28,035	-	-	-	-
Cash flows from (used in) financing activities
Common shares issued for cash	234,497	-	-	-	-
Increase (decrease) in due to related parties	2,043,771	(60,250)	56,159	7,478	150,664
	2,278,268	(60,250)	56,159	7,478	150,664
Effect of exchange rate changes on cash	(155,867)	93,600	(1,829)	54,319	(32,763)
Increase (decrease) in cash and cash equivalents	4,997	(2,153)	(5,449)	(2,049)	3,422
Cash and cash equivalents, beginning of period	-	7,150	11,443	7,046	2,572
Cash and cash equivalents, end of period	4,997	4,997	5,994	4,997	5,994

On behalf of the Board:

~~Supplemental~~/s/ ~~Disclosures~~Jeffrey ~~with~~Edwards ~~Respect to Cash Flows (Note 12)~~Director

~~The accompanying notes are an integral part of these~~ ~~interim~~Jeffrey ~~consolidated financial statements.~~Edwards

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

~~Molecular Pharmacology (USA)~~ ~~Limited(A Development Stage Company)Interim Consolidated Statements of Changes in Stockholders’ Deficiency(Expressed in U.S. Dollars)(Unaudited)~~3

	Number of common shares issued		Capital stock		Additional paid-in capital		Deficit, accumulated during the development stage		Cumulative translation adjustment		Stockholders' deficiency
				$		$		$		$		$
Balance at 14 July 2004 (inception)		294		-		1		-		-		1
Net loss for the period		-		-		-		(128,488)		-		(128,488)
Cumulative translation adjustment		-		-		-		-		(6,536)		(6,536)
Balance at 31 October 2004		294		-		1		(128,488)		(6,536)		(135,023)
Common shares issued for cash - January 2005		87,999,706		88,000		146,496		-		-		234,496
Net loss for the year		-		-		-		(387,667)		-		(387,667)
Cumulative translation adjustment		-		-		-		-		(161)		(161)
Balance at 31 October 2005		88,000,000		88,000		146,497		(516,155)		(6,697)		(288,355)
Acquisition of Molecular Pharmacology (USA) Limited - Recapitalization May 2006		43,553,740		43,554		(59,790)		-		-		(16,236)
Cancellation of common shares - July 2006		(20,000,000)		(20,000)		20,000		-		-		-
Net loss for the year		-		-		-		(508,260)		-		(508,260)
Cumulative translation adjustment		-		-		-		-		(16,222)		(16,222)
Balance at 31 October 2006		111,553,740		111,554		106,707		(1,024,415)		(22,919)		(829,073)
Net loss for the period		-		-		-		(377,131)		-		(377,131)
Cumulative translation adjustment		-		-		-		-		(105,436)		(105,436)
Balance at 30 June 2007		111,553,740		111,554		106,707		(1,401,546)		(128,355)		(1,311,640)
Net income for the year		-		-		-		62,296		-		62,296
Cumulative translation adjustment		-		-		-		-		(166,483)		(166,483)
Balance at 30 June 2008		111,553,740		111,554		106,707		(1,339,250)		(294,838)		(1,415,827)
Net loss for the year		-		-		-		(94,336)		-		(94,336)
Cumulative translation adjustment		-		-		-		-		219,034		219,034
Balance at 30 June 2009		111,553,740		111,554		106,707		(1,433,586)		(75,804)		(1,291,129)
Net loss for the year		-		-		-		(117,220)		-		(117,220)
Cumulative translation adjustment		-		-		-		-		(78,521)		(78,521)
Balance at 30 June 2010		111,553,740		111,554		106,707		(1,550,806)		(154,325)		(1,486,870)
Net loss for the year		-		-		-		(121,860)		-		(121,860)
Cumulative translation adjustment		-		-		-		-		(357,962)		(357,962)
Balance at 30 June 2011		111,553,740		111,554		106,707		(1,672,666)		(512,287)		(1,966,692)
Net loss for the year		-		-		-		(179,382)		-		(179,382)
Cumulative translation adjustment		-		-		-		-		66,215		66,215
Balance at 30 June 2012		111,553,740		111,554		106,707		(1,852,048)		(446,072)		(2,079,859)
Net loss for the year		-		-		-		(209,900)		-		(209,900)
Cumulative translation adjustment		-		-		-		-		(235,886)		(235,886)
Balance at 30 June 2013		111,553,740		111,554		106,707		(2,061,948)		(210,186)		(2,053,873)
Net loss for the period		-		-		-		(63,327)		-		(63,327)
Cumulative translation adjustment		-		-		-		-		54,319		54,319
Balance at 31 December 2013		111,553,740		111,554		106,707		(2,125,275)		(155,867)		(2,062,881)

Molecular Pharmacology (USA) Limited

~~The accompanying notes are an integral part of these~~ ~~interim~~(A ~~consolidated~~Development ~~financial~~Stage ~~statements.~~Company)

6 Interim Consolidated Statements of Operations

~~Molecular Pharmacology~~ (~~USA) Limited(A Development Stage Company)Notes to Interim Consolidated Financial Statements(~~Expressed in U.S. Dollars)~~(Unaudited)31 December 2013~~

~~1. Nature and Continuance of Operations~~ (Unaudited)

Molecular Pharmacology (USA) Limited (the "Company") was incorporated in the state of Nevada on 1 May 2002 under the name Blue Hawk Ventures, Inc. The Company changed its name to Molecular Pharmacology (USA) Limited on 29 August 2005. At the same time, the Company completed a four for one forward split of its issued and outstanding share capital and altered its authorized share capital to 300,000,000 shares of common stock with a par value of $0.001 per share.

	For the period from the date of inception on 14 July 2004 to 30 September 2014	For the three month period ended 30 September 2014	For the Three month period ended 30 September 2013
	$	$	$

Expenses
Advertising and promotion	23,739	-	-
Amortization (Note 4)	6,930	-	11
Analysis	33,947	-	-
Consulting (Note 6)	1,468,453	6,933	15,285
Office and miscellaneous (Note 6)	290,045	12,717	10,120
Professional fees	455,482	7,515	13,697
Public relations	3,656	-	-
Rent (Note 6)	27,759	-	-
Salaries and benefits	44,464	-	-
Transfer agent and filing fees	25,768	1,764	1,660
Travel	111,710	-	-

Net loss before other items	(2,491,953)	(28,929)	(40,773)

Other items
Export market development grants	69,629	-	-
Write-off of equipment (Note 4)	(920)	(97)	-
Interest income	2,322	-	-
Research and development tax refund	213,020	-	-

Net loss for the period	(2,207,902)	(29,026)	(40,773)

Basic and diluted loss per common share		(0.000)	(0.000)

Weighted average number of common shares used in per share calculations		111,553,740	111,553,740

Comprehensive income (loss)
Net loss for the period	(2,207,902)	(29,026)	(40,773)
Foreign currency translation adjustment	(109,233)	163,006	(39,281)

Total comprehensive income (loss) for the period	(2,317,135)	133,980	(80,054)

Basic and diluted comprehensive income (loss) per common share		0.001	(0.001)

The ~~Company~~accompanying isnotes aare ~~development stage~~an ~~enterprise,~~integral aspart ~~defined in Accounting Standards Codification (the "Codification" or "ASC") 915-10, "Development Stage Entities". The Company is devoting all~~ of ~~its~~these ~~present~~interim ~~efforts to securing and establishing~~consolidated afinancial ~~new business and its current planned principle operations have not commenced~~statements. ~~Accordingly, no revenue has been derived during the organization period.~~

Up until the fall of 2005, the Company was in the business of mineral exploration and development of a mineral property. The Company allowed the option on its mineral claim to lapse in the fall of 2005.4

~~On 13 October 2005, the Company acquired the exclusive distribution rights to distribute, market, promote, detail, advertise and sell certain "Licensed Products" through~~ Molecular Pharmacology ~~Pty. Ltd.~~ (~~formerly Molecular Pharmacology Limited~~USA) ~~("MPLA") (Note 10). MPLA was incorporated under the laws of Australia and converted to a proprietary company on 29 October 2009. MPLA is a wholly owned subsidiary company of PharmaNet Group~~ Limited ~~("PharmaNet"), an Australian company listed on the Australian Stock Exchange.~~

~~Since~~(A ~~then,~~Development ~~the~~Stage Company has engaged in organizational and start up activities, including developing a new business plan, recruiting new directors, scientific advisors and key scientists, making arrangements for laboratory facilities and office space and raising additional capital. The Company has generated no revenue from product sales. The Company does not have any pharmaceutical products currently available for sale, and none are expected to be commercially available for some time, if at all. The Licensed Products must first undergo pre-clinical and human clinical testing in the United States before they may be sold commercially.)

~~The~~Interim ~~Company~~Consolidated ~~completed~~Statements ~~a share purchase agreement on 8 May 2006 with PharmaNet (the "Purchase Agreement"). Under the terms~~ of ~~the~~Cash Purchase Agreement the Company acquired 100% of the issued and outstanding shares of MPLA. The Company, in exchange for 100% of the issued and outstanding shares of MPLA, issued PharmaNet an aggregate total of 88,000,000 common shares of the Company on the closing of the transaction. The issuance of 88,000,000 common shares of the Company constituted an acquisition of control of the Company by PharmaNet. The transaction has been accounted for as a recapitalization of the Company (Note 2).Flows

~~MPLA~~(Expressed ~~was~~in ~~incorporated on 14 July 2004 under the laws of Australia~~U. ~~The accompanying interim consolidated financial statements are the historical financial statements of MPLA~~S. Dollars)

On 15 March 2007, the Board of Directors approved a change in the Company’s financial year end from 31 October to 30 June. The decision to change the fiscal year end was intended to assist the financial community in its analysis of the business and in comparing the Company’s financial results to others in the industry, and to synchronize the Company’s fiscal reporting with MPLA.(Unaudited)

	For the period from the date of inception on 14 July 2004 to 30 September 2014	For the three month period ended 30 September 2014	For the Three month period ended 30 September 2013
	$	$	$

Cash flows used in operating activities
Net loss for the period	(2,207,902)	(29,026)	(40,773)
Adjustments to reconcile net loss to cash used by operating activities
Amortization	6,930	-	11
Write-down of intangible assets	1,278	-	-
Write-off of equipment	920	97	-
Changes in operating assets and liabilities
Increase in amounts receivable	(5,101)	(834)	(353)
Increase (decrease) in accounts payable and accrued liabilities	(15,409)	(2,518)	12,772

	(2,219,284)	(32,281)	(28,343)

Cash flows from investing activities
Purchase of equipment	(7,850)	-	-
Purchase of intangible assets	(1,278)	-	-
Cash acquired on the purchase of Molecular Pharmacology (USA) Limited	37,163	-	-

	28,035	-	-

Cash flows from (used in) financing activities
Common shares issued for cash	234,497	-	-
Increase (decrease) in due to related parties	2,067,502	(131,586)	67,728

	2,301,999	(131,586)	67,728

Effect of exchange rate changes on cash	(109,233)	163,006	(39,281)

Increase (decrease) in cash and cash equivalents	1,517	(861)	104

Cash and cash equivalents, beginning of period	-	2,378	7,046

Cash and cash equivalents, end of period	1,517	1,517	7,150

~~Molecular Pharmacology~~ ~~(USA)~~Supplemental Disclosures ~~Limited(A~~with ~~Development~~Respect ~~Stage Company)Notes~~ to ~~Interim~~Cash ~~Consolidated~~Flows ~~Financial Statements~~(~~Expressed~~Note ~~in U.S. Dollars~~11)~~(Unaudited)31 December 2013~~

~~The Company’s interim consolidated financial statements as at 31 December~~ 2013 and for the six month period then ended have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business. The ~~Company~~accompanying ~~has~~notes aare ~~net~~an ~~loss~~integral ofpart ~~$63,327 for the six month period ended 31 December 2013 (31 December 2012 – $100,993; cumulative - $2,125,275) and has working capital deficit~~ of ~~$11,020~~these atinterim ~~31 December~~consolidated ~~2013~~financial ~~(30 June 2013 – $9,512)~~statements.

Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital. Management believes that the Company’s capital resources should be adequate to continue operating and maintaining its business strategy for the next twelve month period from the date of these interim consolidated financial statements. However, if the Company is unable to raise additional capital in the near future, due to the Company’s liquidity problems, management expects that the Company will need to curtail operations, liquidate assets, seek additional capital on less favorable terms and/or pursue other remedial measures. Management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the Company’s ability to continue as a going concern. These interim consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.5

AtMolecular 31Pharmacology ~~December~~(USA) 2013, the Company has suffered losses from development stage activities to date. Although management is currently attempting to implement its business plan, and is seeking additional sources of equity or debt financing, there is no assurance these activities will be successful. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The interim consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.Limited

~~2. Significant~~(A ~~Accounting~~Development ~~Policies~~Stage Company)

~~The~~ ~~following~~Interim isConsolidated aStatements ~~summary~~ of ~~significant~~Changes ~~accounting policies used~~ in ~~the preparation~~Stockholders' ~~of these interim consolidated financial statements.~~Deficiency

~~Basis~~(Expressed ~~of presentation~~in U.S. Dollars)

~~These interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America~~ (~~"U.S. GAAP"~~Unaudited) ~~applicable for a development stage company for financial information and are expressed in U.S. dollars.~~

Principles of consolidation

	Number of common shares issued		Capital stock		Additional paid-in capital		Deficit, accumulated during the development stage		Cumulative translation adjustment		Stockholders' deficiency
				$		$		$		$		$
Balance at 14 July 2004 (inception)		294		-		1		-		-		1
Net loss for the period		-		-		-		(128,488)		-		(128,488)
Cumulative translation adjustment		-		-		-		-		(6,536)		(6,536)

Balance at 31 October 2004 (unaudited)		294		-		1		(128,488)		(6,536)		(135,023)
Common shares issued for cash - January 2005		87,999,706		88,000		146,496		-		-		234,496
Net loss for the year		-		-		-		(387,667)		-		(387,667)
Cumulative translation adjustment		-		-		-		-		(161)		(161)

Balance at 31 October 2005 (unaudited)		88,000,000		88,000		146,497		(516,155)		(6,697)		(288,355)
Acquisition of Molecular Pharmacology (USA) Limited - Recapitalization May 2006		43,553,740		43,554		(59,790)		-		-		(16,236)
Cancellation of common shares - July 2006		(20,000,000)		(20,000)		20,000		-		-		-
Net loss for the year		-		-		-		(508,260)		-		(508,260)
Cumulative translation adjustment		-		-		-		-		(16,222)		(16,222)

Balance at 31 October 2006 (unaudited)		111,553,740		111,554		106,707		(1,024,415)		(22,919)		(829,073)
Net loss for the period		-		-		-		(377,131)		-		(377,131)
Cumulative translation adjustment		-		-		-		-		(105,436)		(105,436)

Balance at 30 June 2007 (unaudited)		111,553,740		111,554		106,707		(1,401,546)		(128,355)		(1,311,640)
Net income for the year		-		-		-		62,296		-		62,296
Cumulative translation adjustment		-		-		-		-		(166,483)		(166,483)

Balance at 30 June 2008 (unaudited)		111,553,740		111,554		106,707		(1,339,250)		(294,838)		(1,415,827)
Net loss for the year		-		-		-		(94,336)		-		(94,336)
Cumulative translation adjustment		-		-		-		-		219,034		219,034

Balance at 30 June 2009 (unaudited)		111,553,740		111,554		106,707		(1,433,586)		(75,804)		(1,291,129)
Net loss for the year		-		-		-		(117,220)		-		(117,220)
Cumulative translation adjustment		-		-		-		-		(78,521)		(78,521)

Balance at 30 June 2010 (unaudited)		111,553,740		111,554		106,707		(1,550,806)		(154,325)		(1,486,870)
Net loss for the year		-		-		-		(121,860)		-		(121,860)
Cumulative translation adjustment		-		-		-		-		(357,962)		(357,962)

Balance at 30 June 2011		111,553,740		111,554		106,707		(1,672,666)		(512,287)		(1,966,692)
Net loss for the year		-		-		-		(179,382)		-		(179,382)
Cumulative translation adjustment		-		-		-		-		66,215		66,215

Balance at 30 June 2012		111,553,740		111,554		106,707		(1,852,048)		(446,072)		(2,079,859)
Net loss for the year		-		-		-		(209,900)		-		(209,900)
Cumulative translation adjustment		-		-		-		-		235,886		235,886

Balance at 30 June 2013		111,553,740		111,554		106,707		(2,061,948)		(210,186)		(2,053,873)
Net loss for the year		-		-		-		(116,928)		-		(116,928)
Cumulative translation adjustment		-		-		-		-		(62,053)		(62,053)

Balance at 30 June 2014		111,553,740		111,554		106,707		(2,178,876)		(272,239)		(2,232,854)
Net loss for the period		-		-		-		(29,026)		-		(29,026)
Cumulative translation adjustment		-		-		-		-		163,006		163,006

Balance at 30 September 2014		111,553,740		111,554		106,707		(2,207,902)		(109,233)		(2,098,874)

~~These~~The ~~interim~~accompanying ~~consolidated financial~~notes ~~statements~~are ~~include~~an ~~the~~integral ~~accounts~~part of ~~MPLA~~these ~~since~~interim ~~its incorporation on 14~~consolidated ~~July~~financial ~~2004 and the Company since the reverse acquisition on 8 May 2006 (Note 1)~~statements. ~~All intercompany balances and transactions have been eliminated.~~

~~Cash and cash equivalents~~6

~~Cash and~~Molecular ~~cash~~Pharmacology ~~equivalents~~(USA) ~~include highly liquid investments with original maturities of three months or less.~~Limited

8 (A Development Stage Company)

~~Molecular Pharmacology~~ ~~(USA) Limited(A Development Stage Company)~~Notes to Interim Consolidated Financial Statements~~(Expressed in U.S. Dollars)(Unaudited)31 December 2013~~

~~Equipment~~ (Expressed in U.S. Dollars)

~~Equipment~~(Unaudited) is30 ~~recorded~~September ~~at cost and amortization is provided over its estimated economic life at the rate of 15% declining balance.~~ 2014

~~Segments~~1. ~~of an~~Nature ~~enterprise~~ and ~~related~~Continuance ~~information~~of Operations

~~ASC~~Molecular ~~280,~~Pharmacology ~~"Segment~~(USA) ~~Reporting"~~Limited ~~establishes guidance for~~ (the ~~way that~~"Company") ~~public~~was ~~companies~~incorporated ~~report information about operating segments~~ in ~~annual~~the ~~financial~~state ~~statements and requires reporting~~ of ~~selected~~Nevada ~~information~~on ~~about~~1 ~~operating segments~~May in2002 ~~interim~~under ~~financial~~the ~~statements~~name ~~issued~~Blue toHawk ~~the~~Ventures, ~~public~~Inc. It ~~also~~The Company ~~establishes~~changed ~~standards~~its ~~for disclosures~~name ~~regarding~~to ~~products~~Molecular ~~and~~Pharmacology ~~services,~~(USA) ~~geographic~~Limited ~~areas~~on ~~and~~29 ~~major~~August ~~customers~~2005. ~~ASC~~ ~~280~~At ~~defines operating~~the ~~segments~~same astime, ~~components~~the ofCompany completed a ~~company~~four ~~about~~for ~~which~~one ~~separate~~forward ~~financial~~split of ~~information~~its isissued ~~available~~and ~~that~~outstanding isshare ~~evaluated~~capital ~~regularly~~and byaltered ~~the~~its ~~chief~~authorized ~~operating~~share ~~decision~~capital ~~maker~~to in300,000,000 ~~deciding~~shares ~~how~~of tocommon ~~allocate~~stock ~~resources~~with ~~and~~a inpar ~~assessing performance~~value of $0.001 per share.

~~Foreign~~The ~~currency~~Company is a development stage enterprise, as defined in ~~translation~~Accounting Standards Codification (the "Codification" or "ASC") 915-10, "Development Stage Entities". The Company is devoting all of its present efforts to securing and establishing a new business and its current planned principle operations have not commenced. Accordingly, no revenue has been derived during the organization period.

~~The~~Up ~~Company’s~~until ~~functional~~the ~~and~~fall ~~reporting currency is U.S. dollars. The interim consolidated financial statements~~ of 2005, the Company ~~are~~was ~~translated to U.S. dollars~~ in ~~accordance with ASC 830, "Foreign Currency Matters". Assets and liabilities denominated in foreign currencies are translated using~~ the ~~exchange rate~~business ~~prevailing~~of ~~at the balance sheet date.~~ mineral ~~Revenue~~exploration and ~~expenses~~development ~~are translated at average rates~~ of ~~exchange prevailing~~a ~~during~~mineral ~~the period~~property. ~~Translation adjustments resulting from this process are charged or credited to other comprehensive income.~~ The Company ~~has~~allowed ~~not, to~~ the ~~date of these interim consolidated financial~~ ~~statements,~~option ~~entered~~on ~~into~~its ~~derivative~~mineral ~~instruments~~claim to ~~offset~~lapse in the ~~impact~~fall of ~~foreign currency fluctuations~~2005.

~~Income~~On ~~taxes~~13 October 2005, the Company acquired the exclusive distribution rights to distribute, market, promote, detail, advertise and sell certain "Licensed Products" through Molecular Pharmacology Pty. Ltd. (formerly Molecular Pharmacology Limited) ("MPLA") (Note 10). MPLA was incorporated under the laws of Australia and converted to a proprietary company on 29 October 2009. MPLA is a wholly owned subsidiary company of PharmaNet Group Limited ("PharmaNet"), an Australian company listed on the Australian Stock Exchange.

~~Deferred income taxes are reported for timing~~ ~~differences~~Since ~~between~~then, ~~items~~the ofCompany ~~income~~has orengaged ~~expense reported~~ in ~~the~~organizational ~~interim consolidated financial statements~~ and ~~those~~start ~~reported~~up ~~for~~activities, including ~~income~~developing ~~tax~~a ~~purposes~~new inbusiness ~~accordance with ASC 740~~plan, ~~"Income~~recruiting ~~Taxes"~~new directors, ~~which~~scientific ~~requires~~advisors ~~the~~and ~~use~~key ofscientists, ~~the~~making ~~asset/liability~~arrangements ~~method of accounting~~ for ~~income taxes. Deferred~~laboratory ~~income~~facilities ~~taxes~~ and ~~tax~~office ~~benefits~~space ~~are~~and ~~recognized~~raising ~~for~~additional ~~the~~capital. ~~future~~The ~~tax~~Company ~~consequences~~has ~~attributable~~generated tono ~~differences~~revenue ~~between~~from ~~the~~product ~~financial~~sales. ~~statement~~The ~~carrying~~Company ~~amounts~~does ofnot ~~existing~~have ~~assets~~any pharmaceutical ~~and~~products ~~liabilities~~currently ~~and~~available ~~their~~for ~~respective tax bases~~sale, and ~~for~~none ~~tax losses and credit carry-forwards. Deferred tax assets and liabilities~~ are ~~measured using enacted tax rates~~ expected to ~~apply~~be tocommercially ~~taxable~~available ~~income~~for insome ~~the~~time, ~~years~~if inat ~~which~~all. ~~those~~The ~~temporary~~Licensed ~~differences~~Products ~~are~~must ~~expected to~~first ~~be recovered or settled. The~~undergo ~~Company~~pre-clinical ~~provides~~and ~~for~~human ~~deferred~~clinical ~~taxes~~testing ~~for~~in the ~~estimated~~United ~~future~~States ~~tax~~before ~~effects attributable~~they tomay ~~temporary differences and carry-forwards when realization is~~be ~~more~~sold ~~likely than not~~commercially.

9 The Company completed a share purchase agreement on 8 May 2006 with PharmaNet (the "Purchase Agreement"). Under the terms of the Purchase Agreement the Company acquired 100% of the issued and outstanding shares of MPLA. The Company, in exchange for 100% of the issued and outstanding shares of MPLA, issued PharmaNet an aggregate total of 88,000,000 common shares of the Company on the closing of the transaction. The issuance of 88,000,000 common shares of the Company constituted an acquisition of control of the Company by PharmaNet. The transaction has been accounted for as a recapitalization of the Company (Note 2).

~~Molecular Pharmacology~~ ~~(USA)~~MPLA ~~Limited(A~~was ~~Development~~incorporated ~~Stage Company)Notes~~on to14 ~~Interim~~July ~~Consolidated~~2004 ~~Financial~~under ~~Statements(Expressed~~the inlaws Uof Australia.S. ~~Dollars)(Unaudited)31~~The accompanying ~~December~~interim ~~2013~~consolidated financial statements are the historical financial statements of MPLA.

~~Basic~~On 15 March 2007, the Board of Directors approved a change in the Company's financial year end from 31 October to 30 June. The decision to change the fiscal year end was intended to assist the financial community in its analysis of the business and ~~diluted~~in ~~net~~comparing the Company's financial results to others in the ~~income~~industry, ~~(loss)~~and ~~per~~to ~~share~~synchronize the Company's fiscal reporting with MPLA.

The Company computes net income (loss) per share in accordance with ASC 260, "Earnings per Share". ASC 260 requires presentation of both basic and diluted earnings per share ("EPS") on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive. As at 31 December 2013, the Company had no outstanding stock options or warrants.7

~~Comprehensive~~Molecular ~~income~~Pharmacology (~~loss~~USA) Limited

~~ASC 220, "Comprehensive Income", establishes standards for the reporting and disclosure of comprehensive income~~ (~~loss)~~A ~~and its~~Development ~~components~~Stage ~~in the financial statements. As at 31 December 2013, the~~ Company ~~has items that represent a comprehensive loss and, therefore, has included a schedule of comprehensive loss in the interim consolidated financial statements.~~)

~~Stock-based~~Notes ~~compensation~~to Interim Consolidated Financial Statements

~~Effective 1 January 2006,~~ the Company adopted the provisions of ASC 718, "Compensation – Stock Compensation", which establishes accounting for equity instruments exchanged for employee services. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employees’ requisite service period (~~generally~~Expressed ~~the~~in ~~vesting period of the equity grant)~~U. The Company adopted ASC 718 using the modified prospective method, which requires the Company to record compensation expense over the vesting period for all awards granted after the date of adoption, and for the unvested portion of previously granted awards that remain outstanding at the date of adoptionS. ~~Accordingly,~~ the financial statements for the periods prior to 1 January 2006 have not been restated to reflect the fair value method of expensing share-based compensation. The adoption of ASC 718 does not change the way the Company accounts for share-based payments to non-employees, with guidance provided by ASC 505-50, "Equity-Based Payments to Non-Employees".Dollars)

~~Comparative figures~~(Unaudited)

~~Certain~~30 ~~comparative~~September ~~figures have been adjusted to conform to the current period’s presentation.~~ 2014

10 The Company's interim consolidated financial statements as at 30 September 2014 and for the three month period then ended have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business. The Company has a net loss of $29,026 for the three month period ended 30 September 2014 (30 September 2013 - $40,773; cumulative - $2,207,902) and has working capital deficit of $23,164 at 30 September 2014 (30 June 2014 - $25,655).

~~Molecular~~ Management ~~Pharmacology~~cannot provide assurance that the Company will ultimately achieve ~~(USA)~~profitable ~~Limited(A~~operations ~~Development~~or ~~Stage~~become cash flow positive, or raise additional debt and/or equity capital. Management believes that the Company~~)Notes~~'s capital resources should be adequate to ~~Interim~~continue ~~Consolidated~~operating ~~Financial~~and ~~Statements(Expressed~~maintaining its business strategy for the next twelve month period from the date of these interim consolidated financial statements. However, if the Company is unable to raise additional capital in Uthe near future, due to the Company's liquidity problems, management expects that the Company will need to curtail operations, liquidate assets, seek additional capital on less favorable terms and/or pursue other remedial measures.S Management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast significant doubt upon the Company's ability to continue as a going concern. ~~Dollars)(Unaudited)31~~These ~~December~~interim consolidated ~~2013~~financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

3 At 30 September 2014, the Company has suffered losses from development stage activities to date. Although management is currently attempting to implement its ~~Changes~~business inplan, ~~Accounting~~and ~~Policies~~is seeking additional sources of equity or debt financing, there is no assurance these activities will be successful. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The interim consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

~~Effective 1~~2. ~~July~~Significant ~~2013, the Company adopted ASU 2013-05, "Foreign Currency Matters (Topic 830) – Parent’s~~ Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Group of Assets within a Foreign Entity or of an Investment in a Foreign Entity". These amendments provide guidance on releasing cumulative translation adjustments when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or a group of assets that is a non-profit activity or a business within a foreign entity. In addition, these amendments provide guidance on the release of cumulative translation adjustments in partial sales of equity method investments and in step acquisitions. The adoption of these amendments did not have an impact on the Company’s interim consolidated financial statements.Policies

~~Effective~~ 1The ~~July~~following ~~2013, the Company adopted ASU 2013-04, "Liabilities (Topic 405) – Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation~~ is ~~Fixed~~a atsummary ~~the Reporting Date". These amendments provide guidance for the recognition, measurement, and disclosure~~ of ~~obligations~~significant ~~resulting~~accounting ~~from~~policies ~~joint and~~used ~~several~~in ~~liability arrangements for which~~ the ~~total amount of the obligation~~ ~~within~~preparation ~~the scope~~ of ~~this guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The adoption of~~ these ~~amendments did not have an impact on the Company’s~~ interim consolidated financial statements.

~~Effective~~ 1Basis ~~July 2013, the Company adopted ASU 2013-02, "Comprehensive Income (Topic 220) – Reporting~~ of Amounts Reclassified out of Accumulated Other Comprehensive Income". The amendments require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross reference to other disclosures required under U.S. GAAP that provide additional details about those amounts. The adoption of these amendments did not have an impact on the Company’s interim consolidated financial statements.presentation

11 These interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") applicable for a development stage company for financial information and are expressed in U.S. dollars.

~~Molecular Pharmacology~~ ~~(USA)~~Principles ~~Limited(A~~of ~~Development Stage Company)Notes to Interim Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited)31 December 2013~~consolidation

4These interim consolidated financial statements include the accounts of MPLA since its incorporation on 14 July 2004 and the Company since the reverse acquisition on 8 May 2006 (Note 1). ~~Recent~~ ~~Accounting~~All ~~Pronouncements~~intercompany balances and transactions have been eliminated.

~~Certain~~ new standards, interpretations, amendments and improvements to existing standards were issued by FASB. The new standards, amendments to standards and interpretations that have been issued and that are applicable to the Company but not effective during the six month period ended 31 December 2013 are as follows:8

In ~~July~~Molecular ~~2013,~~Pharmacology ~~the FASB issued ASU 2013-11, "Income Taxes~~ (~~Topic 740~~USA): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exist". These amendments require that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from a disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. These amendments are effective for fiscal years, and interim periods within those years, beginning after 15 December 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application and early adoption is permitted. The adoption is not expected to have a material impact on the Company’s consolidated financial statements.Limited

~~5. Equipment~~ (A Development Stage Company)

			Net Book Value
	Cost	Accumulated amortization	As at31 December2013	As at30 June2013(Audited)
	$	$	$	$
Office equipment	864	746	118	140

Notes to Interim Consolidated Financial Statements

~~During the six month period~~ ~~ended 31 December 2013, the total additions to equipment were $Nil~~ (31Expressed ~~December 2012~~in –U.S. ~~$Nil~~Dollars).

~~6. Accounts~~ (Unaudited) 30 ~~Payable~~September ~~and Accrued Liabilities~~2014

~~Accounts~~Cash ~~payable~~ and ~~accrued~~cash ~~liabilities are non-interest bearing, unsecured and have settlement dates within one year.~~equivalents

~~7. Due~~ Cash toand ~~Related~~cash ~~Parties~~equivalents ~~and~~include ~~Related~~highly ~~Party~~liquid ~~Transactions~~investments with original maturities of three months or less.

As at 31 December 2013, the amount due to related parties includes $1,000 payable to a director of the Company (30 June 2013 – $1,000). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.Equipment

12 Equipment is recorded at cost and amortization is provided over its estimated economic life at the rate of 15% declining balance.

~~Molecular Pharmacology~~ ~~(USA)~~Segments ~~Limited(A~~of ~~Development~~an ~~Stage Company)Notes~~enterprise toand ~~Interim~~related ~~Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited)31 December 2013~~information

AsASC at280, 31"Segment ~~December~~Reporting" ~~2013,~~establishes guidance for the ~~amount~~way ~~due~~that topublic companies ~~related~~report ~~parties~~information ~~includes $34,533~~about ~~payable~~operating tosegments ain ~~company~~annual ~~owned~~financial statements byand arequires ~~director~~reporting of ~~the~~selected ~~Company~~information orabout ~~an officer~~operating ofsegments ~~PharmaNet~~in ~~(30~~interim ~~June~~financial ~~2013~~statements –issued ~~$18,009)~~to the public. ~~This~~ It also ~~balance~~establishes isstandards ~~non-interest~~for ~~bearing~~disclosures regarding products and services, geographic ~~unsecured~~areas and ~~has~~major nocustomers. ~~fixed~~ASC ~~terms~~280 defines operating segments as components of ~~repayment~~a company about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

AsForeign atcurrency 31 December 2013, the amount due to related parties includes $4,885 payable to a company owned by a director of the Company or an officer of PharmaNet (30 June 2013 – $2,772). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.translation

As The atCompany's 31functional ~~December~~and ~~2013,~~reporting currency is U.S. dollars. The interim consolidated financial statements of the ~~amount~~Company ~~due~~are translated to ~~related~~U.S. dollars ~~parties~~in ~~includes $7~~accordance with ASC 830,~~427~~ ~~payable~~"Foreign toCurrency aMatters". ~~company~~Assets and ~~owned~~liabilities bydenominated ain ~~director~~foreign ofcurrencies are translated using the exchange ~~Company~~rate orprevailing anat ~~officer~~the ofbalance sheet date. Revenue and expenses are ~~PharmaNet~~translated ~~(30~~at ~~June~~average ~~2013~~rates -of ~~$15,252)~~exchange prevailing during the period. ~~This~~Translation ~~balance~~adjustments isresulting ~~non-interest~~from ~~bearing,~~this ~~unsecured~~process ~~and~~are charged or credited to other comprehensive income. The Company has nonot, ~~fixed~~to ~~terms~~the date of these interim consolidated financial statements, entered into derivative instruments to offset the impact of ~~repayment~~foreign currency fluctuations.

AsIncome at 31 December 2013, the amount due to related parties includes $2,004,134 payable to PharmaNet (30 June 2013 – $2,007,468). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.taxes

~~During~~Deferred income taxes are reported for timing differences between items of income or expense reported in the ~~six~~interim consolidated financial statements and ~~months~~those ~~period~~reported ~~ended~~for 31income ~~December~~tax ~~2013~~purposes in accordance with ASC 740, a"Income Taxes", ~~director~~which requires the use of the ~~Company~~asset/liability ormethod anof ~~officer~~accounting offor ~~PharmaNet,~~income taxes. Deferred income taxes and ~~their~~tax ~~controlled~~benefits ~~entities~~are ~~were~~recognized ~~paid~~for orthe future ~~accrued~~tax ~~consulting~~consequences attributable to differences between the financial ~~fees~~statement carrying amounts of ~~$16,494~~existing ~~(31~~assets ~~December~~and ~~2012~~liabilities –and ~~$18~~their respective tax bases,~~015,~~ ~~cumulative~~and for tax losses and credit carry-forwards. ~~$912,673)~~Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization is more likely than not.

During the six months period ended 31 December 2013, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued administrative fees of $14,249 (31 December 2012 – $13,558, cumulative - $82,543) by the Company, which have been recorded in office and miscellaneous expense.9

~~During~~Molecular ~~the~~Pharmacology ~~six months period ended 31 December 2013, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $6,973~~ (~~31 December 2012 - $44,285, cumulative - $118,634~~USA) ~~by the Company.~~Limited

~~During the six months period ended 31 December 2013, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $Nil~~ (31A ~~December~~Development ~~2012~~Stage ~~– $Nil, cumulative – $41,928) by the~~ Company. )

~~During~~Notes ~~the~~to ~~six~~Interim ~~months~~Consolidated ~~period~~Financial ended 31 December 2013, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued office and miscellaneous expenses of $Nil (31 December 2012 – $Nil, cumulative – $80,468) by the Company. Statements

~~During the six months period ended 31 December 2013, a director of~~ ~~the Company or an officer of PharmaNet, and their controlled entities were paid or accrued rental fees of $Nil~~ (31Expressed ~~December~~in ~~2012 – $Nil, cumulative – $12,987) by the Company~~U.S. Dollars)

~~During the six months period ended 31 December 2013, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued office and miscellaneous expenses of $Nil~~ (~~31 December 2012 - $Nil,~~Unaudited) ~~cumulative~~30 –September ~~$4,481) by the Company.~~2014

~~During~~Basic ~~the six months period ended 31 December 2013, a director of the Company or an officer of PharmaNet,~~ and ~~their~~diluted ~~controlled~~net ~~entities~~income ~~were paid or accrued consulting fees of $Nil~~ (~~31 December 2012 - $Nil, cumulative - $8,473~~loss) byper ~~the Company.~~share

13 The Company computes net income (loss) per share in accordance with ASC 260, "Earnings per Share". ASC 260 requires presentation of both basic and diluted earnings per share ("EPS") on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive. As at 30 September 2014, the Company had no outstanding stock options or warrants.

~~Molecular Pharmacology~~ ~~(USA)~~Comprehensive ~~Limited(A~~income ~~Development Stage Company)Notes to Interim Consolidated Financial Statements~~(~~Expressed in U.S. Dollars~~loss)~~(Unaudited)31 December 2013~~

~~Transactions~~ASC ~~comprising~~220, "Comprehensive Income", establishes standards for the ~~amount~~reporting and ~~due~~disclosure toof ~~PharmaNet~~comprehensive ~~are~~income as(loss) and its components in the ~~follows:~~financial statements. As at 30 September 2014, the Company has items that represent a comprehensive loss and, therefore, has included a schedule of comprehensive loss in the interim consolidated financial statements.

	For thesix monthperiodended31 December2013	For theyearended30 June2013(Audited)
	$	$
Opening balance, beginning of period	2,007,468	2,036,760
Funds transferred to the Company by PharmaNet	49,752	204,583
Expenses paid by PharmaNet on behalf of the Company	357	1,004
Foreign currency translation adjustment	(53,443)	(234,879)
Balance, end of period	2,004,134	2,007,468

Stock-based compensation

~~The~~Effective ~~weighted~~1 ~~average~~January ~~amount~~2006, ~~due~~the toCompany ~~PharmaNet~~adopted the provisions of ASC 718, "Compensation - Stock Compensation", which establishes accounting for equity instruments exchanged for employee services. Under the ~~six~~provisions ~~month~~of ASC 718, stock-based ~~period~~compensation ~~ended~~cost 31is ~~December~~measured ~~2013~~at ~~was~~the $2grant date,~~033~~ based on the calculated fair value of the award,~~690~~ and is recognized as an expense over the employees' requisite service period (30generally ~~June~~the ~~2013~~vesting period of the equity grant). The Company adopted ASC 718 using the modified prospective method, which requires the Company to record compensation expense over the vesting period for all awards granted after the date of adoption, and for the unvested portion of previously granted awards that remain outstanding at the date of adoption. Accordingly, the financial statements for the periods prior to 1 January 2006 have not been restated to reflect the fair value method of expensing share-based compensation. The $2adoption of ASC 718 does not change the way the Company accounts for share-based payments to non-employees,~~160~~ with guidance provided by ASC 505-50,~~632)~~ "Equity-Based Payments to Non-Employees".

~~8. Capital~~ Comparative ~~Stock~~figures

~~Authorized~~Certain comparative figures have been adjusted to conform to the current period's presentation.

~~The total authorized capital is 300,000,000 common shares with a par value of $0.001 per common share.~~10

~~Issued~~Molecular ~~and~~Pharmacology ~~outstanding~~(USA) Limited

~~The~~(A ~~total~~Development ~~issued~~Stage ~~and outstanding capital stock is 111,553,740 common shares with a par value of $0.001 per common share.~~Company)

~~9. Segmented~~ Notes ~~Information~~to Interim Consolidated Financial Statements

~~Details on a geographic basis as at and for the six~~ ~~month~~(Expressed ~~period~~in ~~ended~~U.S. ~~31 December 2013 are as follows:~~Dollars)

	Australia	U.S.A.	Total
	$	$	$
Current assets	9,462	-	9,462
Long-term assets	118	-	118
Loss for the period	(38,659)	(24,668)	(63,327)

(Unaudited)
30 September 2014

143. Recent Accounting Pronouncements

~~Molecular~~ Certain ~~Pharmacology~~new standards, interpretations, amendments and improvements to existing standards were issued by Financial Accounting Standards Board (~~USA~~"FASB"). ~~Limited(A~~The ~~Development~~new standards, ~~Stage~~amendments to standards and interpretations that have been issued and ~~Company)Notes~~that are applicable to ~~Interim~~the ~~Consolidated~~Company ~~Financial~~but ~~Statements(Expressed~~not ineffective ~~U.S.~~during ~~Dollars)(Unaudited)31~~the ~~December~~three ~~2013~~month period ended 30 September 2014 are as follows:

~~Details~~In onJuly 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a ~~geographic~~Net ~~basis~~Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exist". These amendments require that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward except as follows. To the extent a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from a disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the ~~year~~unrecognized tax benefit ~~ended~~should 30be ~~June~~presented ~~2013~~in ~~are~~the financial statements as ~~follows:~~a liability and should not be combined with deferred tax assets. These amendments are effective for fiscal years, and interim periods within those years, beginning after 1 July 2014. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application and early adoption is permitted. The adoption is not expected to have a material impact on the Company's interim consolidated financial statements.

	Australia	U.S.A.	Total
	$	$	$
Current assets	12,116	-	12,116
Long-term assets	140	-	140
Loss for the year	(162,485)	(47,415)	(209,900)

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers". The update is intended to improve the financial reporting requirements for revenue from contracts with customers by providing a principle based approach. The core principal of the standard is that revenue should be recognized when the transfer of promised goods or services is made in an amount that the entity expects to be entitled to in exchange for the transfer of goods and services. ASU 2014-09 also requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This standard will be effective for financial statements issued by public companies for annual reporting periods beginning after 15 December 2016. Early adoption is not permitted. The adoption is not expected to have a material impact on the Company's interim consolidated financial statements.

~~Details on a geographic basis as at and for the six month period ended 31 December 2012 are as follows:~~11

	Australia	U.S.A.	Total
	$	$	$
Current assets	13,515	-	13,515
Long-term assets	166	-	166
Loss for the period	(80,353)	(20,640)	(100,993)

Molecular Pharmacology (USA) Limited

~~10. Distribution~~ (A ~~Agreement~~Development Stage Company)

~~The Company~~Notes ~~has the exclusive distribution rights, through MPLA,~~ to ~~distribute, market,~~Interim ~~promote,~~Consolidated ~~detail,~~Financial advertise and sell certain Licensed Products, with metallo-polypeptide analgesic as an active ingredient, in the United States (excluding its territories and possessions) (Note 1). If, and when necessary, the Company will obtain all necessary regulatory approvals for the Licensed Products and incorporate the Licensed Products in the United States.Statements

15 (Expressed in U.S. Dollars)

~~Molecular Pharmacology~~ (~~USA~~Unaudited) 30 ~~Limited(A~~September ~~Development Stage Company)~~2014

114. ~~Income~~ ~~Taxes~~Equipment

Income tax expense differs from the amount that would result from applying the federal income tax rate to earnings before income taxes. The differences result from the following items:

			Net Book Value
	Cost	Accumulated amortization and impairment	As at 30 September 2014	As at 30 June 2014 (Audited)
	$	$	$	$

Office equipment	864	864	-	97

	For the six month period ended 31 December 2013	For the six month period ended 31 December 2012
	$	$
Loss before income taxes	(63,327)	(100,993)
Federal income tax rates	35.0%	34.0%
Income tax recovery based on the above rates	(22,164)	(34,338)
Increase (decrease) due to:
Difference between U.S. and foreign tax rates	1,933	3,214
Change in valuation allowance	9,531	37,579
Foreign exchange and other	10,700	(6,455)
Income tax expense	-	-

During the three month period ended 30 September 2014, the total additions to equipment were $Nil (30 June 2014 - $Nil) and equipment with a carrying value of $97 was written off (30 June 2014 - $Nil)

~~The~~5. ~~composition~~Accounts ofPayable ~~the Company’s deferred tax assets as at 31 December 2013~~ and 30Accrued ~~June 2013 are as follows:~~Liabilities

	As at 31 December2013	As at30 June2013(Audited)
	$	$
Net income tax operating loss carry-forward	2,152,933	2,125,274
Deferred tax assets	687,320	677,789
Less: Valuation allowance	(687,320)	(677,789)
Net deferred tax asset	-	-

Accounts payable and accrued liabilities are non-interest bearing, unsecured and have settlement dates within one year.

166. Due to Related Parties and Related Party Transactions

~~Molecular Pharmacology~~ ~~(USA)~~ As ~~Limited(A~~at ~~Development~~30 ~~Stage~~September 2014, the amount due to related parties includes $1,000 ~~Company)Notes~~payable to ~~Interim~~a ~~Consolidated~~director ~~Financial~~of ~~Statements~~the Company (~~Expressed~~30 inJune ~~U.S.~~2014 ~~Dollars~~- $1,000)~~(Unaudited)31~~. ~~December~~This ~~2013~~balance is non-interest bearing, unsecured and has no fixed terms of repayment.

~~The~~ As ~~Company~~at ~~has~~30 ~~non-capital~~September ~~loss~~2014, ~~carry-forwards~~the ofamount ~~approximately~~due to related parties includes $261,~~152,933~~291 ~~that~~payable ~~may~~to bea ~~available~~company ~~for~~owned ~~tax~~by ~~purposes.~~ a director of the Company or an officer of ~~The~~PharmaNet ~~loss~~(30 ~~carry~~June 2014 -~~forwards~~ ~~are~~$55,756). ~~all~~This balance inis ~~respect~~non-interest tobearing, ~~U.S.~~unsecured and ~~Australian operations~~has ~~and~~no ~~expire~~fixed asterms ~~follows:~~of repayment.

	$
2022	20,402
2023	46,992
2024	27,717
2025	14,187
2026	261,311
2027	111,155
2028	75,463
2029	57,882
2030	48,765
2031	43,836
2032	49,005
2033	47,415
2034	24,668
No expiry	1,324,135
	2,152,933

As at 30 September 2014, the amount due to related parties includes $21,899 payable to a company owned by a director of the Company or an officer of PharmaNet (30 June 2014 - $14,779). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

AAs ~~full~~at ~~valuation~~30 ~~allowance~~September ~~has~~2014, ~~been~~the ~~recorded~~amount ~~against~~due ~~the~~to ~~potential~~related parties includes $7,266 ~~deferred~~payable ~~tax~~to ~~assets~~a ~~associated~~company ~~with~~owned ~~all~~by a director of the ~~loss~~Company ~~carry-forwards~~or asan ~~their~~officer of ~~utilization~~PharmaNet (30 June 2014 - $7,844). This balance is ~~not~~non-interest ~~considered~~bearing, unsecured ~~more~~and ~~likely~~has ~~than~~no ~~not~~fixed atterms ~~this~~of ~~time~~repayment.

~~12. Supplemental~~ As ~~Disclosures~~at ~~with~~30 ~~Respect~~September 2014, the amount due to ~~Cash~~related ~~Flows~~parties includes $3,494 payable to a company owned by a director of the Company or an officer of PharmaNet (30 June 2014 - $Nil). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

	For theperiod fromthe date of inception on14 July 2004to31 December2013	For the threemonth periodended31 December2013	For the three month periodended31 December2012	For the sixmonth periodended31 December2013	For the sixmonth periodended31 December2012
	$	$	$	$	$
Cash paid during the period for interest	-	-	-	-	-
Cash paid during the period for income taxes	-	-	-	-	-
Common shares issued on acquisition of MPLA	16,236	-	-	-	-
Amounts receivable acquired on recapitalization of the Company	2,226	-	-	-	-
Accounts payable assumed on recapitalization of the Company	54,624	-	-	-	-
Due to related party assumed on recapitalization of the Company	1,000	-	-	-	-

As at 30 September 2014, the amount due to related parties includes $1,980,760 payable to PharmaNet (30 June 2014 - $2,127,917). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

17 12

Molecular Pharmacology (USA) Limited~~(A Development Stage Company)Notes to Interim Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited)31 December 2013~~

~~13. Financial~~ (A ~~Instruments~~Development Stage Company)

ANotes ~~fair value hierarchy was established that prioritizes the inputs used~~ to ~~measure~~Interim ~~fair~~Consolidated ~~value. The~~Financial hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurements).Statements

~~The fair values of the~~ ~~financial~~(Expressed ~~instruments~~in ~~were~~U.S. ~~determined using the following input levels and valuation techniques:~~ Dollars)

~~Level 1: classification is applied to any asset~~(Unaudited) or30 ~~liability~~September ~~that has a readily available quoted market price from an active market where there is significant transparency in the executed/quoted price.~~ 2014

~~Level~~ During ~~2: classification~~the isthree ~~applied~~month toperiod ~~assets~~ended ~~and liabilities~~30 ~~that~~September ~~have~~2014, ~~evaluated~~a ~~prices~~director ~~where~~of the ~~data~~Company or ~~inputs~~an toofficer ~~these valuations~~of ~~are~~PharmaNet, ~~observable~~and ~~either~~their ~~directly~~controlled entities were paid or ~~indirectly,~~accrued consulting ~~but~~fees doof ~~not~~$6,933 ~~represent quoted~~(30 ~~market~~September ~~prices~~2013 ~~from~~- $8,356, ancumulative ~~active~~- ~~market~~$936,952).

~~Level~~ During ~~3: classification~~the isthree ~~applied~~month toperiod ~~assets~~ended ~~and liabilities~~30 ~~when~~September ~~prices~~2014, ~~are~~a ~~not~~director ~~derived~~of ~~from~~the ~~existing~~Company or ~~market~~an ~~data~~officer of PharmaNet, and ~~requires~~their controlled entities were paid or accrued usadministrative tofees ~~develop~~of ~~our~~$8,651 ~~own~~(30 ~~assumptions~~September ~~about~~2013 - ~~how~~$9,489, ~~market~~cumulative ~~participants~~- ~~would~~$99,623) ~~price~~by the ~~asset~~Company, orwhich ~~liability.~~have been recorded in office and miscellaneous expense.

~~The~~During ~~carrying~~the ~~values~~three month period ended 30 September 2014, a director of ~~cash~~the Company ~~and~~or ~~cash~~an ~~equivalents,~~officer ~~amounts~~of ~~receivable~~PharmaNet, and ~~accounts~~their ~~payable~~controlled ~~approximate~~entities ~~fair~~were paid or accrued ~~value~~consulting ~~due~~fees toof ~~the~~$Nil ~~short~~(30 ~~term~~September ~~maturity~~2013 of- ~~these~~$6,929, ~~financial~~cumulative ~~instruments.~~- $118,607) by the Company.

~~Credit~~During ~~Risk~~the three month period ended 30 September 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $Nil (30 September 2013 - $Nil, cumulative - $41,928) by the Company.

~~Financial~~ During ~~instruments~~the ~~that potentially~~three ~~subject~~month ~~the~~period ~~Company~~ended to30 ~~credit~~September ~~risk~~2014, ~~consists~~a director of ~~cash~~the ~~and cash~~Company ~~equivalents.~~or ~~The~~an ~~Company~~officer ~~deposits~~of ~~cash~~PharmaNet, and ~~cash~~their ~~equivalents~~controlled ~~with~~entities ~~high~~were ~~credit~~paid or accrued ~~quality~~office ~~financial~~and ~~institutions~~miscellaneous asexpenses ~~determined~~of by$Nil ~~rating~~(30 ~~agencies. As~~September a2013 - ~~result~~$Nil, ~~credit~~cumulative ~~risk~~- $80,468) isby ~~considered insignificant~~the Company.

~~Currency~~ During ~~Risk~~the three month period ended 30 September 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued rental fees of $Nil (30 September 2013 - $Nil, cumulative - $12,987) by the Company.

~~The~~During ~~Company’s subsidiary~~the isthree ~~located~~month inperiod ~~Australia.~~ended As30 aSeptember ~~result~~2014, a ~~significant~~director ~~portion~~ of the Company’s or ~~assets,~~an ~~liabilities~~officer of PharmaNet, and ~~expenses~~their controlled entities were ~~denominated~~paid inor ~~the~~accrued ~~Australian~~office ~~dollar~~ and ~~were~~miscellaneous ~~therefore~~expenses ~~subject~~of to$Nil ~~fluctuation~~(30 inSeptember ~~exchange~~2013 - $Nil, cumulative ~~rates~~- $4,481) by the Company.

~~The~~During ~~Company’s objective~~the inthree ~~managing~~month ~~its~~period ~~foreign~~ended ~~currency~~30 ~~risk~~September is2014, toa ~~minimize~~director ~~its net exposures to foreign currency cash flows by holding most~~ of ~~its~~the ~~cash and cash~~Company ~~equivalents~~or inan ~~Australian~~officer ~~dollars. The~~of ~~Company~~PharmaNet, ~~monitors~~ and ~~forecasts~~their ~~the~~controlled ~~values~~entities ofwere ~~net~~paid ~~foreign~~or ~~currency~~accrued ~~cash~~consulting ~~flow~~fees ~~and~~of ~~balance~~$Nil ~~sheet~~(30 ~~exposures~~September ~~and~~2013 ~~from~~- ~~time~~$Nil, tocumulative ~~time~~- ~~could~~$8,473) ~~authorize~~by the ~~use of derivative financial instruments such as forward foreign exchange contracts to economically hedge a portion of foreign currency fluctuations~~Company.

If the Australian dollar had weakened (strengthened) against the U.S. dollar, with all other variables held constant, by 100 basis points (1%) at period end, the impact on net loss and other comprehensive loss would have been $20,415 lower ($20,415 higher). 13

~~The~~Molecular ~~Company~~Pharmacology ~~has~~(USA) ~~not, to the date of these interim consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.~~Limited

18 (A Development Stage Company)

~~Molecular Pharmacology~~ ~~(USA) Limited(A Development Stage Company)~~Notes to Interim Consolidated Financial Statements~~(Expressed in U.S. Dollars)(Unaudited)31 December 2013~~

~~Interest~~ (Expressed ~~Rate~~in ~~Risk~~U.S. Dollars)

~~The Company has non-interest~~(Unaudited) ~~paying~~30 ~~cash~~September ~~balances and no interest-bearing debt. It is management’s opinion that the Company is not exposed to significant interest risk arising from these financial instruments.~~ 2014

~~Liquidity~~Transactions ~~Risk~~comprising the amount due to PharmaNet are as follows:

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with its financial liabilities. The Company is reliant upon PharmaNet as its sole source of cash. The Company has received financing from PharmaNet in the past; however, there is no assurance that it will be able to do so in the future.

	For the three month period ended 30 September 2014	For the year ended 30 June 2014 (Audited)
	$	$

Opening balance, beginning of period	2,127,917	2,007,468
Funds transferred to the Company by PharmaNet	9,172	60,054
Expenses paid by PharmaNet on behalf of the Company	291	1,304
Foreign currency translation adjustment	(156,620)	59,091

Balance, end of period	1,980,760	2,127,917

14The weighted average amount due to PharmaNet for the three month period ended 30 September 2014 was $2,134,208 (30 June 2014 - $2,047,991). ~~Commitment~~

On7. 21Capital June 2013, the Company executed an agreement with a New York-based company, Dermatology Development Corporation, to develop and market a range of therapeutic, cosmetic and cosmecutical products based on the ThermaLIFE® product range and its active ingredient in the United States.Stock

~~15. Subsequent Event~~ Authorized

~~There~~The ~~are~~total noauthorized ~~reportable events~~capital ~~for~~is ~~the~~300,000,000 ~~period~~common ~~from~~shares ~~the~~with ~~six~~a ~~month~~par ~~period~~value ~~ended 31 December 2013 to the~~of ~~date~~$0.001 ~~that~~per ~~the~~common ~~interim consolidated financial statements were available to be issued~~share.

19 Issued and outstanding

~~Item~~ The 2.total ~~Management’s~~issued ~~Discussion~~ and ~~Analysis~~outstanding ofcapital ~~Financial~~stock ~~Condition~~is ~~and~~111,553,740 ~~Results~~common shares with a par value of ~~Operations~~$0.001 per common share.

~~THE~~8. ~~FOLLOWING~~Segmented ANALYSIS OF THE RESULTS OF OPERATIONS AND FINANCIAL CONDITION OF MOLECULAR USA FOR THE SECOND QUARTER PERIOD ENDED DECEMBER 31, 2013 AND SHOULD BE READ IN CONJUNCTION WITH MOLECULAR USA’S INTERIM CONSOLIDATED FINANCIAL STATEMENTS, INCLUDING THE NOTES THERETO CONTAINED ELSEWHERE IN THE FORM 10-Q.Information

~~Our~~Details ~~interim~~on ~~consolidated~~a ~~financial~~geographic ~~statements~~basis ~~are stated~~as inat ~~United States Dollars~~ and ~~are~~for ~~prepared~~the inthree ~~accordance~~month ~~with~~period ~~United~~ended 30 ~~States~~September ~~Generally~~2014 ~~Accepted~~are ~~Accounting~~as ~~Principles ("U.S. GAAP").~~follows:

Overview

	Australia	U.S.A.	Total
	$	$	$

Current assets	8,844	-	8,844
Long-term assets	-	-	-
Loss for the period	(19,215)	(9,811)	(29,026)

~~We were incorporated in the state of Nevada on May 1, 2002. Up until the fall of 2005, Molecular USA was in the business of mineral exploration and development of a mineral property.~~ 14

~~On October 13, 2005,~~ Molecular ~~USA entered into a distribution and supply agreement with Molecular~~ Pharmacology ~~Pty. Ltd.~~ (~~formerly Molecular Pharmacology Limited~~USA) ~~("MPLA"). MPLA is incorporated under the laws of Australia and at the time was a wholly owned subsidiary company of PharmaNet Group~~ Limited ("PharmaNet"), an Australian company listed on the Australian Stock Exchange. Under the terms of the distribution and supply agreement, Molecular USA received the exclusive distribution rights to distribute, market, promote, detail, advertise and sell certain "Licensed Products", as defined in the agreement, with metallo-polypeptide analgesic as an active ingredient, in the United States (excluding its territories and possessions).

On(A ~~May~~Development 9,Stage 2006, Molecular USA announced that it has acquired 100% of the issued and outstanding share capital of MPLA. The transaction was originally announced by Molecular USA in a press release dated November 29, 2005 and was subsequently approved by a majority of the stockholders of the Company at a stockholders meeting held on April 21, 2006. As a result of the transaction, PharmaNet, the former parent company of MPLA, now controls approximately 79% of Molecular USA's issued and outstanding share capital. The transaction between the parties closed in escrow with an effective closing date of May 8, 2006. The business of MPLA is now the business of Molecular USA.)

OnNotes ~~July 19, 2013, Molecular USA announced its wholly-owned subsidiary, MPLA, executed an agreement with a New York-based company, Dermatology Development Corporation ("DDC")~~ to ~~develop~~Interim ~~and~~Consolidated ~~market~~Financial ~~a range of therapeutic, cosmetic and cosmecutical products based on the ThermaLIFE® product range and its active ingredient in the United States.~~Statements

~~Under the terms of the agreement, DDC is~~ ~~contracted~~(Expressed ~~to drive business relationships with a number of third party entities to sell products predominantly~~ in the dermatology and cosmetic fields in the United States in return for an establishment fee and royalties on the agreements executed as a result of DDC’s services, paid for a fixed period net of MPLA’s costs of salesU. ~~The engagement of DDC is limited to the provision of the services in the United States, and is for an initial one year period which may be extended by mutual agreement between MPLA and DDC~~S. Dollars)

~~Our~~ (Unaudited) 30 ~~Current~~September ~~Business~~2014

~~Molecular~~Details ~~USA,~~on ~~through its wholly owned subsidiary MPLA, is in the business of developing and commercializing~~ a ~~new analgesic~~geographic ~~and~~basis ~~anti-inflammatory molecule known~~ as ~~Tripeptofen.~~at ~~Tripeptofen~~and ~~is likely to appear in a new group of products suitable~~ for the ~~treatment~~year ~~of common~~ended ~~every-day~~30 ~~pain.~~June As2014 anare ~~analgesic and anti-inflammatory drug, Tripeptofen~~as ~~is unusual due to its rapid speed of action and its topical or rub-on application.~~ follows:

The majority of over-the-counter anti-pain and anti-inflammatory products sold for the treatment of acute localized pain are based on non-steroidal anti-inflammatory drugs or NSAIDs. The majority of such products are slow acting and provide only mild pain relief.

	Australia	U.S.A.	Total
	$	$	$

Current assets	8,871	-	8,871
Long-term assets	97	-	97
Loss for the year	(65,012)	(51,916)	(116,928)

20 Details on a geographic basis as at and for the three month period ended 30 September 2013 are as follows:

The NSAID group has come under additional pressure and increasing medical alarm, as many drugs in this class have been found to set-back the recovery of certain conditions and treatments for which they were marketed. Moreover, NSAIDs are associated with severe gastro-intestinal side-effects. This has left a niche in an industry under-served by new products and ingredients.

	Australia	U.S.A.	Total
	$	$	$

Current assets	12,573	-	12,573
Long-term assets	129	-	129
Loss for the period	(25,416)	(15,357)	(40,773)

~~MPLA's~~9. ~~business~~Distribution strategy is to exploit the fast and locally acting, low side effects, and recovery-enhancing properties of its new drug group and to market this as a new ingredient, enabling pharmaceutical companies to develop and market effective and safer products suited to a broad range of common everyday pain.Agreement

The Company has the exclusive distribution rights, through MPLA, to distribute, market, promote, detail, advertise and sell certain Licensed Products, with metallo-polypeptide analgesic as an active ingredient, in the United States (excluding its territories and possessions) (Note 1). If, and when necessary, the Company will obtain all necessary regulatory approvals for the Licensed Products and incorporate the Licensed Products in the United States.

Molecular USA has exclusive distribution rights to distribute, market, promote, advertise and sell certain Licensed Products, with metallo-polypeptide analgesic and anti-inflammatory activity as an active ingredient, in the United States (excluding its territories and possessions) from its wholly owned subsidiary company MPLA. 15

The Licensed Products include all products in all dosage forms, formulations, line extensions and package configurations using or otherwise incorporating any aspect or production method of metallo-polypeptide analgesic and anti-inflammatory activity as an active ingredient marketed by MPLA or its affiliates under the trade name Tripeptofen or any other trade names or trademarks used by MPLA relating to the product and any improvements to such formulations or dosages as may hereafter be distributed by MPLA or its affiliates in the territory during the term of the distribution and supply agreement between Molecular Pharmacology (USA) ~~and MPLA for the topical application for human use only, and specifically excludes:~~Limited

· (A ~~dermatological~~Development orStage cosmetic use, or tissue repair or tissue regeneration effect; · any use or application of the Licensed Product in non-human groups or species; and · Thermalife cream, presently owned by PharmaNet, the holding corporation of MPLA.Company)

~~All~~Notes Licensed Products must first obtain regulatory clearance in the United States before they may be marketed and sold by Molecular USA in that territory. Clinical programs are currently planned by MPLA for Europe, USA and Australia. The clinical trial program is expected to be ~~expanded~~Interim ~~with~~Consolidated ~~follow-up~~Financial ~~trials. Regulatory approval, commencement of the Master Drug File ("MDF") and market approval are the focus of an ongoing program expected to continue over the next 18 to 24 months.~~Statements

~~MPLA has an exclusive license from Cambridge~~ ~~Scientific Pty Ltd.~~ (~~"Cambridge~~Expressed ~~Scientific") of Australia. This license is restricted to a "field of use" defined~~ in ~~the license documentation~~U. ~~Cambridge Scientific may grant other licenses to third parties outside the "field of use" the subject of the licenses granted to MPLA~~S. Dollars)

~~Patents &~~ ~~Trademarks~~(Unaudited) 30 September 2014

~~Molecular USA and its subsidiary MPLA, regard their intellectual property rights, such as copyrights, trademarks, trade secrets, practices and tools, as important to the success of their company~~10. ~~To protect~~Income their intellectual property rights, Molecular USA relies on a combination of patent, trademark and copyright law, trade secret protection, confidentiality agreements and other contractual arrangements with their employees, affiliates, clients, strategic partners, acquisition targets and others. Effective patent, trademark, copyright and trade secret protection may not be available in every country in which the combined company intends to offer its products. The steps taken by Molecular USA and MPLA to protect their intellectual property rights may not be adequate. Third parties may infringe or misappropriate the combined company's intellectual property rights or the combined company may not be able to detect unauthorized use and take appropriate steps to enforce its rights. In addition, other parties may assert infringement claims against the combined company. Such claims, regardless of merit, could result in the expenditure of significant financial and managerial resources. Further, an increasing number of patents are being issued to third parties regarding these processes. Future patents may limit the combined company's ability to use processes covered by such patents or expose the combined company to claims of patent infringement or otherwise require the combined company to seek to obtain related licenses. Such licenses may not be available on acceptable terms. The failure to obtain such licenses on acceptable terms could have a negative effect on the combined company's business.Taxes

21 Income tax expense differs from the amount that would result from applying the federal income tax rate to earnings before income taxes. The differences result from the following items:

To protect their intellectual property rights, MPLA relies on a combination of license and patent applications held by Cambridge Scientific which includes "Analgesic and Anti-Inflammatory Composition" comprising USA patent application in completion plus PCT Provisional Specification having the same name designated as Serial No. 11/059580. These patent applications embody all the current Analgesic and Anti-inflammatory assets. MPLA will also rely on the exclusive nature of its license, trademark and copyright law, trade secret protection, confidentiality agreements and other contractual arrangements as it may execute from time to time.

	For the three month period ended 30 September 2014	For the three month period ended 30 September 2013
	$	$

Loss before income taxes	(29,026)	(40,773)

Federal income tax rates	35.0%	35.0%

Income tax recovery based on the above rates	(10,159)	(14,271)

Increase (decrease) due to:
Difference between U.S. and foreign tax rates	961	1,271
Change in valuation allowance	(21,198)	20,671
Foreign exchange and other	30,396	(7,671)

Income tax expense	-	-

~~Management~~The composition of ~~Molecular~~the ~~USA and MPLA believes that MPLA~~Company's ~~products, trademarks,~~deferred ~~and~~tax ~~other~~assets ~~proprietary~~as ~~rights~~at do30 ~~not~~September ~~infringe~~2014 onand 30 ~~the~~June ~~proprietary rights~~2014 ofare ~~third~~as ~~parties.~~follows:

Marketing

	As at 30 September 2014	As at 30 June 2014 (Audited)
	$	$

Net income tax operating loss carry-forward	2,208,726	2,281,689

Deferred tax assets	706,111	727,309
Less: Valuation allowance	(706,111)	(727,309)

Net deferred tax asset	-	-

Molecular USA plans to market its Licensed Products, when approved, through existing pharmaceutical distributors and by collaborative dealings with major companies active in the United States and Europe. 16

~~In addition,~~ Molecular Pharmacology (USA) plans to explore opportunities for direct sales, out-licensing and the integration of the company’s proprietary anti-inflammatory and analgesic components in products already distributed through various international markets. Limited

~~Molecular~~(A ~~USA~~Development ~~expects~~Stage ~~that these activities may even help fund the development costs of the Licensed Products in the United States.~~Company)

~~Manufacturing &~~ ~~Supply~~Notes to Interim Consolidated Financial Statements

~~Molecular USA and MPLA have no manufacturing~~ ~~facilities.~~(Expressed ~~MPLA is required to supply Molecular USA with all Licensed Products under the distribution and supply agreement entered into by the parties~~ in ~~October~~ ~~2005~~U. ~~It is likely MPLA will enter into arrangements with various Good Manufacturing Practice ("GMP") certified formulation and manufacturers of the Licensed Products for clinical trial and sales purposes~~S. ~~These formulations and the manufacturing facilities must comply with regulations and Current Good Laboratory Practices ("CGLP"~~Dollars), and current GMPs, enforced by the Food and Drug Administration ("FDA"). Molecular USA plans to continue MPLA's practice to outsource formulation and manufacturing for its clinical trials and potential commercialization after the acquisition of MPLA by Molecular USA.

~~Molecular~~(Unaudited) 30 ~~USA~~September ~~has not entered into any supply agreements.~~2014

~~Competition~~ The Company has non-capital loss carry-forwards of approximately $2,208,726 that may be available for tax purposes. The loss carry-forwards are all in respect to U.S. and Australian operations and expire as follows:

~~Molecular USA and MPLA compete in the segment of~~ ~~the pharmaceutical market that treats pain and inflammation~~ $ 2022 20, ~~which is highly~~402 ~~competitive. We face significant competition from most pharmaceutical companies~~ ~~as well as biotechnology companies that are also researching and selling~~ ~~products designed to treat pain and inflammation. Many of our competitors have~~ ~~significantly greater financial~~ 2023 46, ~~manufacturing~~992 2024 27, ~~marketing and product~~717 ~~development resources than we do. Large pharmaceutical companies in particular have~~ ~~extensive experience in clinical testing and in obtaining regulatory approvals~~ ~~for drugs. These companies also have significantly greater research~~ ~~capabilities than we do. In addition~~ 2025 14, ~~many universities and private and public~~187 ~~research institutes are active in neurological research~~ 2026 261, ~~some in direct~~311 ~~competition with us. These companies~~ 2027 111, ~~as well as academic institutions~~155 2028 75,463 ~~governmental agencies and other public and private organizations conducting~~ ~~research~~ 2029 57, ~~also compete with Molecular USA and MPLA in recruiting and retaining~~882 ~~highly qualified scientific personnel and consultants and may establish~~ ~~collaborative~~ 2030 48,765 2031 43,836 2032 49,005 2033 47,415 2034 55,916 2035 9,811 No ~~arrangements with competitors of Molecular USA.~~ expiry 1,338,869 2,208,726

~~Molecular~~A ~~USA's~~full ~~competition~~valuation ~~will~~allowance behas ~~determined~~been ~~in part~~recorded byagainst the potential ~~indications~~deferred ~~for~~tax assets ~~which~~associated with all the ~~MPLA's~~loss ~~products~~carry-forwards ~~are~~as ~~developed~~their utilization is not ~~and~~considered ~~ultimately~~more ~~approved~~likely bythan ~~regulatory~~not ~~authorities~~at this time.

22 17

Molecular ~~USA~~Pharmacology ~~knows of other companies and institutions dedicated to the development of anti-pain and anti-inflammatory pharmaceuticals similar to those being developed by MPLA and licensed to Molecular~~ (USA.) Many of Molecular USA's competitors, existing or potential, have substantially greater financial and technical resources and therefore may be in a better position to develop, manufacture and market pharmaceutical products. Many of these competitors are also more experienced with regard to preclinical testing, human clinical trials and obtaining regulatory approvals. The current or future existence of competitive products may also adversely affect the marketability of Molecular USA's products.Limited

~~Governmental~~(A ~~Regulation~~Development Stage Company)

~~FDA~~Notes ~~Regulation. Pharmaceutical products are subject~~ to ~~extensive~~ ~~pre-~~Interim ~~and~~Consolidated ~~post-marketing~~Financial regulation by the FDA, including regulations that govern the testing, manufacturing, safety, efficacy, labeling, storage, record-keeping, advertising and promotion of the products under the Federal Food, Drug and Cosmetic Act and the Public Health Services Act, and by comparable agencies in most foreign countries. The process required by the FDA before a new drug may be marketed in the United States generally involves the following: completion of pre-clinical laboratory and animal testing; submission of an investigational new drug application ("IND"), which must become effective before clinical trials may begin; performance of adequate and well controlled human clinical trials to establish the safety and efficacy of the proposed drug’s intended use; and approval by the FDA of a New Drug Application ("NDA").Statements

~~The activities required before a pharmaceutical~~ ~~agent~~(Expressed ~~may be marketed~~ in ~~the United States begin with pre-clinical testing~~U. ~~Pre-clinical tests include laboratory evaluation of potential products and animal studies to assess the potential safety and efficacy of the product and its formulations~~S. ~~The~~ results of these studies and other information must be submitted to the FDA as part of an IND application, which must be reviewed and approved by the FDA before proposed clinical testing can begin. Clinical trials involve the administration of the investigational new drug to healthy volunteers or to patients under the supervision of a qualified principal investigator. Clinical trials are conducted in accordance with Good Clinical Practices under protocols that detail the objectives of the study, the parameters to be used to monitor safety and the efficacy criteria to be evaluated. Each protocol must be submitted to the FDA as part of the IND application. Further, each clinical study must be conducted under the auspices of an independent institutional review board. The institutional review board will consider, among other things, ethical factors and the safety of human subjects.Dollars)

~~Typically, human clinical trials are conducted in~~(Unaudited) ~~three~~30 ~~phases~~September that may overlap. In Phase 1, clinical trials are conducted with a small number of subjects to determine the early safety profile and pharmacology of the new therapy. In Phase 2, clinical trials are conducted with groups of patients afflicted with a specific disease in order to determine preliminary efficacy, optimal dosages and expanded evidence of safety. In Phase 3, large scale, multicenter, comparative clinical trials are conducted with patients afflicted with a target disease in order to provide enough data for the statistical proof of efficacy and safety required by the FDA and others. 2014

The results of the pre-clinical and clinical testing, together with chemistry and manufacturing information, are submitted to the FDA in the form of an NDA for a pharmaceutical product in order to obtain approval to commence commercial sales11. InSupplemental ~~responding~~Disclosures to an NDA, the FDA may grant marketing approvals, request additional information or further research, or deny the application if it determines that the application does not satisfy its regulatory approval criteria. Patient-specific therapies may be subject to additional risk with ~~respect~~Respect to ~~the~~Cash regulatory review process. FDA approval for a pharmaceutical product may not be granted on a timely basis, if at all, or if granted may not cover all the clinical indications for which approval is sought or may contain significant limitations in the form of warnings, precautions or contraindications with respect to conditions of use.Flows

Satisfaction of FDA premarket approval requirements for new drugs typically takes several years, and the actual time required may vary substantially based upon the type, complexity and novelty of the product or targeted disease. Government regulation may delay or prevent marketing of potential products for a considerable period of time and impose costly procedures upon our activities. Success in early stage clinical trials or with prior versions of products does not assure success in later stage clinical trials. Data obtained from clinical activities are not always conclusive and may be susceptible to varying interpretations that could delay, limit or prevent regulatory approval.

	For the period from the date of inception on 14 July 2004 to 30 September 2014	For the three month ended 30 September 2014	For the three month ended 30 September 2013
	$	$	$

Cash paid during the period for interest	-	-	-
Cash paid during the period for income taxes	-	-	-
Common shares issued on acquisition of MPLA	16,236	-	-
Amounts receivable acquired on recapitalization of the Company	2,226	-	-
Accounts payable assumed on recapitalization of the Company	54,624	-	-
Due to related party assumed on recapitalization of the Company	1,000	-	-

2312. Financial Instruments

~~Once~~A ~~approved,~~fair ~~the~~value ~~FDA~~hierarchy ~~may~~was ~~withdraw~~established ~~the~~that ~~product approval~~prioritizes ifthe ~~compliance~~inputs ~~with~~used ~~pre- and post-marketing regulatory standards is not~~to ~~maintained~~measure orfair ifvalue. ~~problems~~The ~~occur~~hierarchy ~~after~~gives the ~~product~~highest ~~reaches~~priority ~~the~~to ~~marketplace. In~~unadjusted ~~addition,~~quoted ~~the~~prices ~~FDA~~in ~~may~~active ~~require~~markets ~~post-marketing~~for ~~studies,~~identical ~~referred~~assets toor asliabilities ~~Phase~~(Level 41 ~~studies,~~measurement) ~~to monitor the effect of an approved product,~~ and ~~may limit further marketing of~~ the ~~product~~lowest ~~based~~priority ~~on the results of these post-market studies. The FDA has broad post-market regulatory and enforcement powers, including the ability~~ to ~~levy~~unobservable ~~fines~~inputs ~~and~~(Level ~~civil penalties, suspend or delay issuance of~~3 ~~approvals, seize or recall products, or withdraw approvals~~measurements).

~~Facilities~~The ~~used~~fair tovalues ~~manufacture~~of ~~drugs are subject to periodic inspection by~~ the ~~FDA,~~financial ~~Drug~~instruments ~~Enforcement~~were ~~Agency~~determined ~~and~~using ~~other authorities where applicable, and must comply with~~ the ~~FDA’s Current Good~~following ~~Manufacturing~~input ~~regulations.~~levels ~~Failure to comply with the statutory~~ and ~~regulatory requirements~~valuation subjects the manufacturer to possible legal or regulatory action, such as suspension of manufacturing, seizure of product or voluntary recall of a product. Adverse experiences with the product must be reported to the FDA and could result in the imposition of market restriction through labeling changes or in product removal. Product approvals may be withdrawn if compliance with regulatory requirements is not maintained or if problems concerning safety or efficacy of the product occur following approval.techniques:

~~With~~Level ~~respect~~1: toclassification ~~post-market~~is ~~product~~applied ~~advertising and~~to ~~promotion,~~any ~~the~~asset ~~FDA~~or ~~imposes~~liability ~~a number of complex regulations on entities~~ that ~~advertise~~ and promote pharmaceuticals, which include, among other things, standards and regulations relating to direct-to-consumer advertising, off-label promotion, industry sponsored scientific and educational activities, and promotional activities involving the Internet. The FDA has ~~very~~a ~~broad enforcement authority~~readily ~~under~~available ~~the~~quoted ~~Federal~~market ~~Food,~~price ~~Drug~~from ~~and~~an ~~Cosmetic~~active ~~Act,~~market ~~and~~where ~~failure~~there tois ~~abide by these~~significant ~~regulations~~transparency ~~can result~~ in ~~penalties including~~ the ~~issuance~~executed/quoted of a warning letter directing the entity to correct deviations from FDA standards, a requirement that future advertising and promotional materials be pre-cleared by the FDA, and state and federal civil and criminal investigations and prosecutionsprice.

~~Research~~Level ~~facilities~~2: ~~are~~classification ~~subject~~is applied to ~~various~~assets ~~laws~~ and ~~regulations~~liabilities ~~regarding~~that ~~laboratory~~have ~~practices, the experimental use of~~evaluated ~~animals,~~prices ~~and~~where the ~~use~~data ~~and~~inputs ~~disposal~~to ~~of hazardous or potentially hazardous substances in connection with the research in question. In each of~~ these ~~areas,~~valuations asare ~~above,~~observable ~~the government~~either ~~has broad regulatory and enforcement powers, including the ability~~directly ~~to levy fines and civil penalties, suspend~~ or ~~delay issuance of approvals~~indirectly, ~~seize~~ orbut ~~recall~~do ~~products,~~not ~~and~~represent ~~withdraw~~quoted ~~approvals,~~market ~~any~~prices ~~one~~from oran ~~more~~active ~~of which could have a material adverse effect upon us~~market.

~~Other~~ Level ~~Government~~3: ~~Regulations. In~~classification ~~addition~~is applied to ~~laws~~assets and ~~regulations enforced~~liabilities bywhen ~~the~~prices ~~FDA, research of Molecular USA’s products in the United States~~ are ~~subject to regulation under National Institutes of Health~~not ~~guidelines,~~derived asfrom ~~well~~existing asmarket ~~under~~data ~~the Controlled Substances Act, the Occupational Safety~~ and ~~Health~~requires ~~Act,~~us ~~the~~to ~~Environmental~~develop ~~Protection~~our ~~Act,~~own ~~the Toxic Substances~~assumptions ~~Control~~about ~~Act,~~how ~~the~~market ~~Resource~~participants ~~Conservation~~would ~~and~~price ~~Recovery~~the ~~Act~~asset ~~and other present and potential future federal, state~~ or ~~local laws and regulations, as research and development of its products involves the controlled use of hazardous materials, chemicals, viruses and various radioactive compounds~~liability.

InThe ~~addition~~carrying tovalues ~~regulations in the United States, Molecular USA’s products are subject to a variety~~ of ~~foreign~~cash ~~regulations governing clinical trials~~ and ~~commercial~~cash ~~sales and distribution of its Licensed Products. Whether or not Molecular USA obtains FDA approval for a product~~equivalents, ~~Molecular~~ ~~USA~~amounts orreceivable ~~its subsidiaries must obtain approval of a product by the comparable~~and ~~regulatory~~accounts ~~authorities~~payable ofapproximate ~~foreign~~fair ~~countries~~value ~~before~~due ~~it can commence clinical trials or marketing of the product in those countries. The approval process varies from country~~ to ~~country, and~~ the ~~time~~short ~~may~~term bematurity ~~longer or shorter than that required for FDA approval. The requirements governing the conduct~~ of ~~clinical~~these ~~trials,~~financial ~~product licensing, pricing and reimbursement vary greatly from country to country~~instruments.

~~Sarbanes-Oxley Act of 2002. On July 30, 2002, President Bush signed~~ into law the Sarbanes-Oxley Act of 2002 ("SOA"). The SOA imposes a wide variety of new requirements on both United States and non-United States companies, that file or are required to file periodic reports with the SEC under the Securities Exchange Act of 1934. Many of these new requirements will affect Molecular USA and its board of directors. For instance, under the SOA Molecular USA is required to: 18

~~· form an audit committee in compliance with the SOA; · ensure~~ Molecular Pharmacology (USA's) ~~chief executive officer and chief financial officer are required to certify its financial statements;~~Limited

24 (A Development Stage Company)

· Notes ~~ensure Molecular USA’s directors and senior officers are required~~ to ~~forfeit~~Interim ~~all~~Consolidated ~~bonuses~~Financial or other incentive-based compensation and profits received from the sale of Molecular USA’s securities in the twelve month period following initial publication of any of Molecular USA’s financial statements that later require restatement; · disclose any off-balance sheet transactions as required by the SOA; · prohibit all personal loans to directors and officers; · ensure directors, officers and 10% holders file their Forms 4's within two days of a transaction; · adopt a code of ethics and file a Form 8-K whenever there is a change or waiver of this code; and · ensure Molecular USA's auditor is independent as defined by the SOA.Statements

~~The SOA has required us to review our current~~ ~~procedures~~(Expressed and policies to determine whether they comply with the SOA and the new regulations promulgated thereunder. We will continue to monitor our compliance with all future regulations that are adopted under the SOA and will take whatever actions are necessary to ensure that we are in ~~compliance~~U.S. Dollars)

~~Environmental~~(Unaudited) 30 ~~Compliance~~September 2014

~~The~~Credit nature of Molecular USA's and MPLA's business does not require special environmental or local government approval. Molecular USA and MPLA are compliant with all environmental laws. The cost of such compliance is minimal for the company. Risk

~~Employees~~Financial instruments that potentially subject the Company to credit risk consists of cash and cash equivalents. The Company deposits cash and cash equivalents with high credit quality financial institutions as determined by rating agencies. As a result, credit risk is considered insignificant.

~~In the period ended December 31, 2013, Molecular USA did~~ ~~not have any employees and does not intend to hire any employees in the~~ ~~upcoming~~Currency ~~year. We rely heavily on outside contractors to conduct our business.~~Risk

~~Immediate~~ The ~~Business~~Company's subsidiary is located in Australia. As a result, a significant ~~Plans~~portion of the Company's assets, liabilities and expenses were denominated in the Australian dollar and were therefore subject to fluctuation in exchange rates.

The Company,'s ~~through~~objective in managing its ~~subsidiary~~foreign ~~MPLA,~~currency ~~plans to~~risk ~~continue~~is to ~~pursue~~minimize ~~the~~its net ~~various~~exposures ~~levels~~to offoreign ~~the~~currency ~~international~~cash ~~regulatory approval~~flows ~~processes.~~by ~~Applications~~holding ~~and~~most ~~product~~of ~~opportunities~~its ~~for~~cash ~~Tripeptofen are~~and ~~believed~~cash toequivalents bein ~~broad~~Australian ~~and~~dollars. ~~cover~~The aCompany ~~range~~monitors ofand ~~commercial~~forecasts ~~fields,~~the values ~~each~~of ~~with~~net ~~distinct pre-market~~foreign ~~requirements.~~currency ~~The~~cash ~~international~~flow ~~drug~~and ~~development~~balance ~~team,~~sheet ~~global resources~~exposures and ~~local~~from time ~~know-how~~to ~~will~~time ~~allow~~could ~~MPLA~~authorize tothe ~~seek~~use ~~the~~of ~~most~~derivative ~~time~~financial ~~and~~instruments ~~cost~~such as ~~effective~~forward ~~regulatory~~foreign ~~pathways~~exchange ~~for~~contracts ~~each~~to ~~product~~economically ~~and~~hedge ~~market~~a ~~sector~~portion of foreign currency fluctuations.

OnIf ~~commercial~~the ~~development,~~Australian ~~MPLA~~dollar ~~will~~had ~~focus~~weakened ~~on consolidating~~(strengthened) against the ~~regulatory~~U.S. ~~pathway~~dollar, with ~~work~~all inother ~~order~~variables toheld ~~prioritize~~constant, ~~the~~by ~~path~~100 ~~to market.~~basis ~~Jeffrey~~points ~~Edwards~~(1%) ~~will~~at ~~work~~period toend, the ~~set-out~~impact ~~the~~on ~~strategies~~net ~~designed~~loss ~~to maximize~~and ~~the~~other ~~multi-jurisdictional~~comprehensive ~~capabilities~~loss ofwould ~~MPLA's~~have ~~development~~been ~~teams~~$20,624 lower ($20,624 higher).

~~Reports~~The Company has not, to ~~Security~~the ~~Holders~~date of these interim consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

~~We are required to file annual reports on Form~~ ~~10-K~~Interest ~~and~~Rate quarterly reports on Form 10-Q with the SEC on a regular basis, and will be required to timely disclose certain material events (e.g., changes in corporate control; acquisitions or dispositions of a significant amount of assets other than in the ordinary course of business; and bankruptcy) in a current report on Form 8-K.Risk

~~Although~~ The ~~our~~Company ~~Internet~~has ~~site www.mpl~~non-~~usa.com~~interest ~~does not~~paying ~~contain~~cash ~~our~~balances ~~reports, you may read~~ and ~~copy~~no ~~any~~interest-bearing ~~materials we file with the SEC at their Public Reference Room at 450 Fifth Street, N~~debt.~~W., Washington, D.C.~~ ~~20549.~~It ~~You~~is ~~may~~management's ~~obtain~~opinion ~~information~~that on the ~~operation~~Company ofis ~~the~~not ~~Public~~exposed ~~Reference~~to ~~Room~~significant byinterest ~~calling~~risk ~~the~~arising ~~SEC~~from atthese ~~1-800-SEC-0330.~~financial ~~Additionally, the SEC maintains an Internet site (http://www~~instruments.~~sec.gov) that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC.~~

~~Results~~ Liquidity ~~of Operation~~Risk

~~For~~Liquidity risk is the ~~quarter~~risk that an entity will encounter difficulty in meeting ~~ended~~obligations ~~December~~associated 31with its financial liabilities. The Company is reliant upon PharmaNet as its sole source of cash. The Company has received financing from PharmaNet in the past; however, ~~2013~~there is no assurance that it will be able to do so in the future.

2513. Commitment

~~Revenues~~ On 21 June 2013, the Company executed an agreement with a New York based company, Dermatology Development Corporation, to develop and market a range of therapeutic, cosmetic and cosmecutical products based on the ThermaLIFE product range and its active ingredient in the United States.

~~REVENUE~~14. –Subsequent ~~Molecular USA has not generated any revenues for the quarter ended December 31, 2013, or since inception.~~Event

~~COMMON STOCK~~There –are ~~Molecular~~no ~~USA~~reportable ~~has~~events ~~not issued~~for ~~any~~the ~~shares~~period ~~during~~from ~~the~~three ~~most~~month ~~recent~~period ~~quarter.~~ended As30 September of2014 to the date ofthat ~~February~~the ~~11,~~interim ~~2014, Molecular~~consolidated ~~USA~~financial ~~has~~statements were ~~111,553,740~~available ~~common~~to ~~shares~~be issued ~~and outstanding~~.

~~Expenses~~ 19

~~SUMMARY~~ –Item ~~Total expenses were $63,327 for the six month period ended December 31, 2013~~2. ~~Expenses~~Management's ~~had~~Discussion ~~decreased~~and ~~during~~Analysis ~~this past six month period as compared to the six month period ended December 31, 2012 – $100,170. A total~~ of ~~$2,409,423 in expenses has been incurred by~~Financial ~~Molecular~~Condition ~~USA~~and ~~since~~Results ~~inception on July 14, 2004 through to December 31, 2013. The decrease in costs over this six month period has occurred as the result~~ of ~~Molecular USA’s wholly owned subsidiary decreasing in its consulting fees~~Operations. ~~The costs can be subdivided into the following categories:~~

THE ~~Office~~FOLLOWING ~~Expenses~~ANALYSIS ~~and~~OF ~~Rent:~~THE ~~$15,170~~RESULTS ~~in office~~OF ~~expenses~~OPERATIONS ~~(for~~AND ~~administrative~~FINANCIAL ~~costs)~~CONDITION ~~were~~OF MOLECULAR ~~incurred~~USA ~~for~~FOR ~~the~~THE ~~six~~FIRST ~~month period~~QUARTER ~~ended~~PERIOD ~~December~~ENDED ~~31,~~SEPTEMBER ~~2013~~30, as2014 ~~compared~~AND ~~to $15,780~~SHOULD ~~for~~BE ~~the~~READ ~~six~~IN ~~month~~CONJUNCTION ~~period~~WITH ~~ended~~MOLECULAR ~~December~~USA'S ~~31,~~INTERIM ~~2012,~~CONSOLIDATED ~~while a total of $262,031~~FINANCIAL ~~was incurred in the period from inception on July 14~~STATEMENTS, ~~2004~~INCLUDING toTHE ~~December~~NOTES ~~31,~~THERETO ~~2013.~~CONTAINED ~~All~~ELSEWHERE ~~contributed~~IN ~~expenses~~THE ~~are~~FORM ~~reported as contributed costs with a corresponding credit to additional paid~~10-~~in capital~~Q.

Our ~~Consulting~~interim ~~and~~consolidated ~~Analysis Costs:~~financial ~~Molecular~~statements ~~USA~~are ~~relies~~stated onin ~~consultants~~United ~~and other third parties to~~States ~~conduct~~Dollars ~~the majority of its research. For the six month period ended December 31, 2013, $23,467 in consulting~~ and ~~analysis~~are ~~expenses~~prepared ~~were incurred as compared to $64,118 during the six month period ended December 31, 2012. We have incurred a total of $1,447,831~~ in ~~consulting~~accordance ~~and~~with ~~analyst~~United ~~fees~~States ~~since~~Generally ~~our inception~~Accepted onAccounting ~~July~~Principles ~~14, 2004 to December 31, 2013~~("U.S. GAAP").

~~Advertising and Promotion~~ ~~Fees:~~Overview Molecular USA has spent no money in this area this year. During the six month period ended December 31, 2013, we spent $Nil on advertising and public relations and $Nil for six month period ended December 31, 2012. A total of $23,739 has been incurred in this area during the period from inception on July 14, 2004 to December 31, 2013.

We ~~Professional~~were ~~Fees:~~incorporated ~~Molecular USA incurred $21,044~~ in ~~professional fees for~~ the ~~six~~state ~~month~~of ~~period~~Nevada ~~ended~~ on ~~December 31,~~May ~~2013~~1, as2002. ~~compared~~Up tountil ~~$19,743 for~~ the ~~six~~fall ~~month period ended December 31~~of 2005, ~~2012.~~Molecular ~~From~~USA ~~inception~~was toin ~~December~~the ~~31,~~business ~~2013,~~of wemineral ~~have~~exploration ~~incurred a~~and ~~total~~ development of ~~$426,581~~a ~~professional~~mineral ~~fees mainly spent on legal and accounting matters~~property.

On ~~Travel~~October ~~Costs:~~13, 2005, Molecular USA entered into a distribution and supply ~~incurred~~agreement ~~$Nil~~with inMolecular ~~travel~~Pharmacology ~~costs~~Pty. ~~for~~Ltd. (formerly Molecular Pharmacology Limited) ("MPLA"). MPLA is incorporated under the ~~six~~laws ~~month~~of ~~period~~Australia ~~ended~~and at ~~December~~the ~~31,~~time was a wholly owned subsidiary company of PharmaNet Group Limited ~~2013~~("PharmaNet"), asan ~~compared~~Australian tocompany ~~$359~~listed ~~for~~on the ~~six~~Australian Stock ~~month~~Exchange. ~~period~~Under ~~ended~~the ~~December~~terms ~~31,~~of ~~2012~~the distribution and ~~$111~~supply agreement,~~710~~ Molecular ~~has~~USA ~~been~~received ~~incurred~~the inexclusive ~~the~~distribution ~~period~~rights to distribute, market, ~~from~~promote, ~~inception~~detail, onadvertise ~~July~~and 14sell certain "Licensed Products", ~~2004~~as defined toin ~~December~~the agreement, with metallo-polypeptide analgesic as an active 31ingredient, ~~2013~~in the United States (excluding its territories and possessions).

On ~~Salaries~~May ~~and~~9, ~~Benefit Costs:~~2006, Molecular USA ~~and~~announced ~~its~~that ~~subsidiary~~it ~~rely~~has ~~primarily~~acquired on100% ~~outside consultants~~of the issued and ~~not~~outstanding ~~salaried~~share ~~employees~~capital of MPLA. AsThe atransaction ~~result,~~was ~~Molecular~~originally ~~USA~~announced ~~incurred~~by ~~$Nil~~Molecular USA in ~~salaries~~a ~~and~~press ~~benefits~~release ~~for~~dated ~~the~~November ~~six~~29, ~~month~~2005 ~~period~~and ~~ended~~was ~~December~~subsequently ~~31,~~approved ~~2013~~by ~~and~~a ~~$Nil~~majority inof ~~salaries~~the ~~and~~stockholders ~~benefits~~of ~~during~~ the ~~six~~Company ~~month~~at ~~period~~a stockholders ~~ended~~meeting ~~December~~held 31on April 21, ~~2012~~2006. ~~For~~As ~~the~~a ~~period~~result ~~July~~of 14the transaction, ~~2004~~PharmaNet, ~~(inception)~~the former ~~through~~parent ~~December~~company ~~31,~~of ~~2013~~MPLA, now controls approximately 79% of Molecular USA's ~~has~~issued ~~spent~~and aoutstanding ~~total~~share capital. The transaction between the parties closed in escrow with an effective closing date of ~~$44~~May 8,~~464~~ on2006. ~~salaries~~The ~~and~~business ~~benefits.~~of MPLA is now the business of Molecular USA.

On July 19, 2013, Molecular USA ~~continues~~ toannounced ~~carefully~~its ~~control~~wholly-owned ~~its~~subsidiary, ~~expenses~~MPLA, executed ~~and~~an ~~overall~~agreement ~~costs~~with asa itNew ~~moves forward~~York-based ~~with~~company, ~~the~~Dermatology ~~development~~Development Corporation of("DDC") ~~its~~to ~~new~~develop ~~business~~and ~~plan.~~market ~~Molecular~~a ~~USA~~range ~~does~~of ~~not~~therapeutic, ~~have~~cosmetic ~~any~~and ~~employees~~cosmecutical ~~and~~products ~~engages~~based ~~personnel~~on ~~through~~the ~~outside~~ThermaLIFE ~~consulting~~product ~~contracts~~range orand its ~~agreements~~active oringredient ~~other~~in ~~such~~the ~~arrangements~~United States.

~~Income~~ Under ~~Tax~~the ~~Provision:~~terms Weof ~~have~~the ~~losses~~agreement, ~~carried-forward~~DDC ~~for~~is ~~income~~contracted ~~tax~~to ~~purpose~~drive business relationships with a number of third party entities to ~~December~~sell ~~31,~~products ~~2013.~~predominantly ~~There~~in ~~are~~the nodermatology ~~current~~and orcosmetic ~~deferred~~fields ~~tax~~in the United States in ~~expenses~~return for ~~the~~an ~~six~~establishment ~~month~~fee ~~period~~and ~~ended~~royalties ~~December~~on ~~31,~~the ~~2013,~~agreements ~~due~~executed toas ~~our loss~~a ~~position.~~result Weof ~~have~~DDC's ~~fully~~services, ~~reserved~~paid for ~~any~~a ~~benefits~~fixed period net of ~~these~~MPLA's ~~losses.~~costs ~~The~~of ~~deferred~~sales. ~~tax~~The ~~consequences~~engagement of ~~temporary~~DDC ~~differences~~is inlimited ~~reporting~~to ~~items~~the ~~for~~provision ~~financial~~of the services in the United ~~statement~~States, and ~~income~~is ~~tax~~for ~~purposes~~an ~~are~~initial ~~recognized~~one asyear ~~appropriate~~period which may be extended by mutual agreement between MPLA and DDC.

26 Our Current Business

~~Liquidity~~ Molecular USA through its wholly owned subsidiary MPLA is in the business of developing and ~~Capital~~commercializing ~~Resources~~a new analgesic and anti-inflammatory molecule known as Tripeptofen. Tripeptofen is likely to appear in a new group of products suitable for the treatment of common every-day pain. As an analgesic and anti-inflammatory drug, Tripeptofen is unusual due to its rapid speed of action and its topical or rub-on application.

~~During~~The ~~the~~majority ~~six~~of ~~month period ended December 31, 2013, Molecular USA satisfied its working capital needs by borrowing cash from its parent company PharmaNet. As December 31, 2013,~~ over-the-counter ~~Company had cash and cash equivalents on hand in the amount of $4,997 (June 30, 2013~~ anti-pain ~~$7,046)~~ and ~~current payable and accrued liabilities of $20,482 (June 30, 2013~~ anti-inflammatory ~~$21,628).~~products ~~As December 31, 2013, Molecular~~sold ~~USA~~for ~~currently~~the ~~owes~~treatment ~~its~~of ~~parent~~acute ~~company~~localized ~~PharmaNet,~~pain ~~$2,004,134,~~are anbased ~~additional~~on ~~$47,845 to other related parties, and $20,482 to~~ non-~~related parties. Given the~~steroidal ~~proposed~~anti-inflammatory ~~business~~drugs ~~activities~~or ofNSAIDs. ~~Molecular~~The ~~USA~~majority ~~and its subsidiary, Management does not expect that the current level~~ of ~~cash~~such onproducts ~~hand~~are ~~will~~slow ~~be sufficient to~~acting ~~fund~~and ~~its~~provide ~~operation~~only ~~for~~mild ~~the~~pain ~~next twelve month period~~relief.

ToThe ~~achieve~~NSAID ~~our~~group ~~goals~~has ~~and~~come ~~objectives~~under ~~for~~additional ~~the~~pressure ~~next 12~~and ~~months~~increasing medical alarm, as wemany ~~plan~~drugs toin ~~raise~~this ~~additional~~class ~~capital~~have ~~through~~been ~~private~~found ~~placements~~to set-back the recovery of certain ~~our~~conditions ~~equity~~and ~~securities~~treatments ~~and~~for ~~future~~which ~~financing~~they ~~from~~were ~~our~~marketed. ~~majority~~Moreover, ~~shareholder~~NSAIDs ~~PharmaNet~~are associated with severe gastro-intestinal side-effects. This has left a niche in an industry under-served by new products and ingredients.

We plan to use any additional funds that we might be successful in raising for development, as well as for strategic acquisition of existing businesses that complement our market niche, and general working capital purposes.20

IfMPLA's webusiness ~~are~~strategy ~~unsuccessful~~is into ~~obtaining~~exploit ~~new~~the ~~capital, our~~fast ~~ability~~and tolocally ~~seek~~acting, low side effects, and ~~consummate~~recovery-enhancing ~~strategic~~properties ~~acquisitions~~of toits ~~build~~new ~~our~~drug ~~company~~group ~~internationally~~ and to ~~expand~~market this ofas ~~our~~a ~~business~~new ~~development~~ingredient, ~~and~~enabling ~~marketing~~pharmaceutical ~~programs~~companies ~~could~~to bedevelop and ~~adversely~~market ~~affected~~effective and safer products suited to a broad range of common everyday pain.

~~Off-Balance Sheet~~ ~~Arrangement~~Licensed Products

AsMolecular ofUSA ~~December 31~~has exclusive distribution rights to distribute, ~~2013~~market, ~~Molecular~~promote, advertise ~~USA~~and ~~did~~sell ~~not~~certain ~~have~~Licensed ~~any~~Products, ~~off~~with metallo-~~balance~~polypeptide ~~sheet~~analgesic and ~~arrangements~~anti-inflammatory activity as an active ingredient, in the United States (excluding its territories and possessions) from its wholly owned subsidiary company MPLA.

~~Research~~ The Licensed Products include all products in all dosage forms, formulations, line extensions and ~~Development~~package configurations using or otherwise incorporating any aspect or production method of metallo-polypeptide analgesic and anti-inflammatory activity as an active ingredient marketed by MPLA or its affiliates under the trade name Tripeptofen or any other trade names or trademarks used by MPLA relating to the product and any improvements to such formulations or dosages as may hereafter be distributed by MPLA or its affiliates in the territory during the term of the distribution and supply agreement between Molecular USA and MPLA for the topical application for human use only, and specifically excludes:

~~Since~~dermatological ~~the~~or ~~acquisition~~cosmetic ~~of MPLA~~use, ~~Molecular~~or ~~USA~~tissue ~~has~~repair ~~maintained MPLA’s~~or ~~research~~tissue ~~and~~regeneration ~~development program to:~~effect;

·any ~~Refine~~use ~~and~~or ~~prove-up~~application ~~its proprietary active ingredients and to commence the processes that will lead to the issue~~ of ~~a Master Drug File registration of its products; · Define~~ the ~~mode~~Licensed ofProduct ~~action and potential of Tripeptofen~~ in ~~both in vitro, animal and~~ non-human ~~studies;~~groups ·or ~~Gain Australian regulatory and marketing approval~~species; ~~· Gain European regulatory approval;~~ and ~~· Commence application for American regulatory approval.~~

~~MPLA~~Thermalife iscream, inpresently ~~the~~owned ~~business~~by ofPharmaNet, ~~developing and commercializing a new analgesic and anti-inflammatory molecule known as Tripeptofen. Tripeptofen is likely to appear in a new group of products suitable for~~ the ~~treatment~~holding ofcorporation ~~common every-day pain. As an analgesic and anti-inflammatory drug, Tripeptofen is unusual due to its rapid speed~~ of ~~action and its topical or rub-on application~~MPLA.

OnAll ~~April~~Licensed ~~19,~~Products ~~2006,~~must ~~Molecular~~first ~~USA~~obtain ~~announced~~regulatory ~~the~~clearance ~~filing~~in ofthe ~~a new patent,~~United ~~Tissue~~States ~~Disruption~~before ~~Treatment~~they ~~and~~may ~~Composition~~be ~~for~~marketed ~~Use~~and ~~(US~~sold ~~Patent~~by ~~number 11218382).~~Molecular ~~The~~USA ~~patent~~in ~~describes~~that ~~a proprietary process for the manufacture of~~territory. ~~topical~~Clinical ~~biological~~programs ~~secondary~~are ~~injury~~currently ~~mediators~~planned ~~("B-SIMs") that~~by ~~should~~MPLA ~~have~~for ~~local~~Europe, ~~rather~~USA ~~than~~and ~~systemic,~~Australia. The ~~effects~~clinical ~~and~~trial ~~may~~program beis ~~significantly less~~expected ~~expensive~~ to ~~manufacture~~be ~~than~~expanded ~~conventional~~with Bfollow-~~SIMs.~~up ~~MPLA is developing its~~trials. ~~B-SIMs~~Regulatory toapproval, ~~stop~~commencement of the ~~tissue~~Master ~~disruption~~Drug ~~that~~File ~~occurs~~("MDF") ~~after~~and market ~~injury~~approval byare ~~suppressing~~ the ~~body's~~focus ~~reactions,~~of ~~such~~an asongoing ~~inflammation~~program ~~and~~expected ~~damage/death~~to ofcontinue ~~otherwise~~over ~~uninjured~~the ~~cells~~next ~~that~~18 ~~are triggered in response~~ to ~~primary~~24 ~~injury~~months.

~~The~~MPLA ~~first~~has ~~conditions~~an ~~targeted~~exclusive bylicense ~~MPLA~~from ~~will~~Cambridge beScientific ~~the musculoskeletal~~Pty ~~injuries~~Ltd. ~~The~~("Cambridge Scientific") ~~use~~ of aAustralia. ~~B-SIM~~This inlicense ~~these~~is ~~markets~~restricted ~~represents~~to a ~~new approach~~"field ~~to one~~ of ~~the~~use" defined ~~world’s~~in ~~largest over~~ the ~~counter~~license ~~drug~~documentation. ~~markets~~Cambridge ~~and includes~~Scientific ~~indications~~may ~~such~~grant ~~as joint inflammation, musculoskeletal pain, overuse~~other ~~and~~licenses ~~strain~~to ~~injuries,~~third ~~burns~~parties ~~and~~outside ~~even~~the ~~surgical and cosmetic procedures. MPLA’s proprietary, industrially scalable peptide-ligand bond exchange (~~"~~PLBE")~~field ~~B-SIM manufacturing process involves the disassociation~~ of ~~proteins,~~use" ~~rather than~~ the ~~far~~subject ~~more costly process~~ of ~~assembling~~ ~~B-SIMs one sequence at a time. The patent was lodged in~~ the ~~name of~~licenses ~~Cambridge~~granted ~~Scientific; however, Molecular USA holds the worldwide exclusive license~~ to ~~manufacture,~~ ~~commercialize, market and distribute topical anti-inflammatory and analgesic products based on the proprietary MPL-TL compound~~MPLA.

27 Patents & Trademarks

Molecular USA isand ~~still~~its ~~working~~subsidiary onMPLA, ~~the~~regard ~~projections~~their intellectual property ~~regarding~~rights, such as copyrights, trademarks, trade secrets, practices and tools, as important to the ~~necessary~~success ~~expenditure~~of their company. To protect their intellectual property rights, Molecular USA relies on a combination of patent, trademark and copyright ~~time~~law, ~~frame~~trade ~~involved~~secret protection, confidentiality agreements and other contractual arrangements with their employees, affiliates, clients, strategic partners, acquisition targets and others. Effective patent, trademark, copyright and trade secret protection may not be available in ~~pursuing~~every ~~this~~country in which the ~~research~~combined company intends to offer its products. The steps taken by Molecular USA and ~~development~~MPLA ~~program~~to protect their intellectual property rights may not be adequate. Third ~~Any~~parties ~~such~~may ~~program~~infringe ~~will~~or ~~also~~misappropriate the combined company's intellectual property rights or the combined company may not be ~~subject~~able to detect unauthorized ~~Molecular~~use ~~USA~~and ~~raising~~take appropriate steps to enforce its rights. In addition, other parties may assert infringement claims against the ~~necessary~~combined ~~funds~~company. Such claims, regardless of merit, could result in the expenditure of significant financial and managerial resources. Further, an increasing number of patents are being issued to ~~advance~~third parties regarding these processes. Future patents may limit the combined company's ability to use processes covered by such patents or expose the combined company to claims of patent infringement or otherwise require the combined company to seek to obtain related licenses. Such licenses may not be available on acceptable terms. The failure to obtain such licenses on acceptable terms could have a ~~program~~negative effect on the combined company's business.

~~Capital~~ To ~~Expenditure~~protect their intellectual property rights, MPLA relies on a combination of ~~Commitments~~license and patent applications held by Cambridge Scientific which includes "Analgesic and Anti-Inflammatory Composition" comprising USA patent application in completion plus PCT Provisional Specification having the same name designated as Serial No. 11/059580. These patent applications embody all the current Analgesic and Anti-inflammatory assets. MPLA will also rely on the exclusive nature of its license, trademark and copyright law, trade secret protection, confidentiality agreements and other contractual arrangements as it may execute from time to time.

~~Capital expenditures for the six month period ended December 31, 2013, amounted to $Nil. Molecular USA does not anticipate any significant purchase or sale of equipment over the next 12 months.~~21

~~Recent~~ Management ~~Accounting~~of Molecular USA and MPLA believes that MPLA's products, trademarks, ~~Pronouncements~~and other proprietary rights do not infringe on the proprietary rights of third parties.

Certain new standards, interpretations, amendments and improvements to existing standards were issued by FASB. The new standards, amendments to standards and interpretations that have been issued and that are applicable to the Company but not effective during the six month period ended December 31, 2013 are as follows:Marketing

InMolecular ~~July~~USA ~~2013,~~plans the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exist". These amendments require that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to amarket ~~deferred~~its ~~tax~~Licensed ~~asset for a net operating loss carryforward~~Products, ~~a similar~~when ~~tax loss~~approved, ~~or a tax credit carryforward except as follows. To the extent~~through aexisting ~~net~~pharmaceutical ~~operating~~distributors loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from a disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and ~~the~~by ~~entity~~collaborative ~~does~~dealings ~~not~~with ~~intend~~major tocompanies ~~use,~~active ~~the deferred tax asset for such purpose, the unrecognized tax benefit should be presented~~ in the ~~financial~~United ~~statements~~States ~~as a liability~~ and ~~should not be combined with deferred tax assets~~Europe. These amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application and early adoption is permitted. The adoption is not expected to have a material impact on the Company’s consolidated financial statements.

~~Changes~~In addition, Molecular USA plans to explore opportunities for direct sales, out-licensing and the integration of the company's proprietary anti-inflammatory and analgesic components in ~~Accounting~~products ~~Policies~~already distributed through various international markets.

~~Effective~~ ~~July~~Molecular 1,USA ~~2013,~~expects ~~the~~that ~~Company~~these ~~adopted~~activities ~~ASU~~may ~~2013-05,~~even ~~"Foreign Currency~~help ~~Matters~~fund ~~(Topic 830) – Parent’s Accounting for~~ the ~~Cumulative~~ ~~Translation Adjustment upon Derecognition of Certain Subsidiaries or~~development ~~Group~~costs of Assets within a Foreign Entity or of an Investment in a Foreign Entity". These amendments provide guidance on releasing cumulative translation adjustments when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or a group of assets that is a non-profit activity or a business within a foreign entity. In addition, these amendments provide guidance on the ~~release~~Licensed ofProducts ~~cumulative translation adjustments~~ in ~~partial~~ ~~sales of equity method investments and in step acquisitions. The adoption of these amendments did not have an impact on~~ the ~~Company’s interim~~United ~~consolidated financial statements~~States.

~~Effective~~ ~~July 1, 2013, the Company adopted ASU 2013-04, "Liabilities~~ ~~(Topic~~Manufacturing ~~405)~~& –Supply Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date". These amendments provide 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 guidance is fixed at the reporting date, except for obligations addressed within existing guidance in U.S. GAAP. The adoption of these amendments did not have an impact on the Company’s interim consolidated financial statements.

~~Effective~~ ~~July 1, 2013, the Company adopted ASU 2013-02, "Comprehensive~~ ~~Income~~Molecular ~~(Topic~~USA ~~220)~~and –MPLA ~~Reporting~~have ofno ~~Amounts~~manufacturing ~~Reclassified out of Accumulated Other Comprehensive Income"~~facilities. ~~The~~MPLA ~~amendments~~is ~~require~~required ~~an entity~~ to supply ~~provide~~Molecular ~~information~~USA ~~about~~with ~~the~~all ~~amounts~~Licensed ~~reclassified~~Products ~~out~~under ofthe ~~accumulated~~distribution ~~other~~and ~~comprehensive~~supply ~~income~~agreement byentered ~~component. In~~into ~~addition,~~by ~~an entity is required to present, either on~~ the ~~face~~parties ofin ~~the statement~~October ~~where~~2005. ~~net~~It ~~income~~ is ~~presented~~likely ~~or in the notes, significant amounts~~MPLA ~~reclassified~~will ~~out~~enter ofinto ~~accumulated~~arrangements ~~other~~with ~~comprehensive~~various ~~income~~Good byManufacturing ~~the~~Practice ~~respective~~("GMP") ~~line~~certified ~~items~~formulation ofand ~~net~~manufacturers ~~income~~of ~~but only if~~ the ~~amount~~Licensed ~~reclassified~~Products isfor ~~required under~~clinical ~~U.S.~~trial ~~GAAP~~and tosales bepurposes. ~~reclassified~~These toformulations ~~net~~and ~~income in its entirety in~~ the ~~same~~manufacturing ~~reporting~~facilities ~~period.~~must ~~For~~comply ~~other~~with ~~amounts~~regulations ~~that~~and ~~are~~Current ~~not~~Good ~~required~~Laboratory ~~under~~Practices ~~U.S. GAAP to be~~("CGLP"), ~~reclassified~~and incurrent ~~their~~GMPs, ~~entirety~~enforced toby ~~net~~the ~~income,~~Food anand ~~entity~~Drug isAdministration ~~required~~("FDA"). Molecular toUSA ~~cross reference~~plans to ~~other~~continue ~~disclosures~~MPLA's ~~required~~practice ~~under~~to ~~U.S.~~outsource ~~GAAP~~formulation ~~that provide additional~~and ~~details~~manufacturing ~~about~~for ~~those~~its ~~amounts.~~clinical ~~The~~trials ~~adoption~~and ofpotential ~~these~~commercialization ~~amendments~~after ~~did not have an~~the ~~impact~~acquisition onof ~~the~~MPLA ~~Company’s~~by ~~interim~~Molecular ~~consolidated financial statements~~USA.

28 Molecular USA has not entered into any supply agreements.

~~Critical Accounting Policies and Estimates~~Competition

~~Our~~Molecular ~~quarterly~~USA ~~interim~~and ~~consolidated~~MPLA ~~financial statements~~compete ~~and~~in ~~accompanying~~the ~~notes~~segment ~~are~~of ~~prepared~~the inpharmaceutical ~~accordance~~market ~~with~~that treats ~~U.S.~~pain ~~GAAP used~~and ininflammation, ~~the~~which ~~United~~is ~~States~~highly competitive. ~~Preparing~~We ~~financial~~face ~~statements~~significant competition ~~requires~~from ~~Management~~most pharmaceutical companies as well as biotechnology tocompanies ~~make~~that ~~estimates~~are also researching and ~~assumptions~~selling ~~that~~products ~~affect~~designed ~~the~~to ~~reported~~treat ~~amounts~~pain and inflammation. Many of ~~assets~~our competitors have significantly greater financial, ~~liabilities~~manufacturing, ~~revenue,~~marketing and ~~expenses~~product development resources than we do. ~~These~~Large pharmaceutical ~~estimates~~companies in particular have extensive experience in clinical testing and ~~assumptions~~in ~~are~~obtaining ~~affected~~regulatory approvals for drugs. These companies also byhave ~~Management's~~significantly ~~application~~greater ofresearch ~~accounting~~capabilities ~~policies~~than we do. WeIn ~~believe~~addition, ~~that~~many ~~understanding~~universities ~~the~~and ~~basis~~private and ~~nature~~public ofresearch ~~the~~institutes ~~estimates~~are active in neurological research, some in direct competition with us. These companies, as well as academic institutions, governmental agencies and ~~assumptions~~other ~~involved~~public and private organizations conducting research, also compete with ~~the~~Molecular ~~following~~USA ~~aspects~~and MPLA ofin ~~our~~recruiting ~~interim~~and ~~consolidated~~retaining ~~financial~~highly ~~statements~~qualified isscientific personnel and ~~critical~~consultants toand anmay ~~understanding~~establish ofcollaborative ~~our~~arrangements ~~financials~~with competitors of Molecular USA.

~~Stock-Based~~Molecular ~~Compensation Effective January~~USA's 1,competition ~~2006,~~will ~~the~~be ~~Company~~determined ~~adopted~~in ~~the~~part ~~provisions~~by ofthe ~~ASC 718, "Compensation – Stock Compensation", which~~potential ~~establishes~~indications ~~accounting~~ for equity instruments exchanged for employee services. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employees’ requisite service period (generally the vesting period of the equity grant). The Company adopted ASC 718 using the modified prospective method, which ~~requires~~ the ~~Company~~MPLA's toproducts ~~record compensation~~are ~~expense~~developed ~~over the vesting period for all awards granted after the date of adoption,~~ and ~~for~~ultimately ~~the unvested portion of previously granted awards~~approved that remain outstanding at the date of adoption. Accordingly, the financial statements for the periods prior to January 1, 2006 have not been restated to reflect the fair value method of expensing share-based compensation. The adoption of ASC 718 does not change the way the Company accounts for share-based payments to non-employees, with guidance provided by ~~ASC~~regulatory ~~505-50, "Equity-Based Payments to Non-Employees"~~authorities.

~~Item~~ Molecular 3USA knows of other companies and institutions dedicated to the development of anti-pain and anti-inflammatory pharmaceuticals similar to those being developed by MPLA and licensed to Molecular USA. ~~Quantitative~~Many of Molecular USA's competitors, existing or potential, have substantially greater financial and technical ~~Qualitative~~resources ~~Disclosures~~and ~~about~~therefore ~~Market~~may ~~Risk~~be in a better position to develop, manufacture and market pharmaceutical products. Many of these competitors are also more experienced with regard to preclinical testing, human clinical trials and obtaining regulatory approvals. The current or future existence of competitive products may also adversely affect the marketability of Molecular USA's products.

~~Interest Rate Risk~~ 22

~~Due~~Governmental to the short-term nature of our interest bearing assets, which consist primarily of cash and cash equivalents and no restricted cash, we believe that our exposure to interest rate market risk will not significantly affect our operations. Regulation

~~Foreign~~ FDA ~~Currency~~Regulation. ~~Risk~~Pharmaceutical products are subject to extensive pre- and post-marketing regulation by the FDA, including regulations that govern the testing, manufacturing, safety, efficacy, labeling, storage, record-keeping, advertising and promotion of the products under the Federal Food, Drug and Cosmetic Act and the Public Health Services Act, and by comparable agencies in most foreign countries. The process required by the FDA before a new drug may be marketed in the U.S. generally involves the following: completion of pre-clinical laboratory and animal testing; submission of an investigational new drug application ("IND"), which must become effective before clinical trials may begin; performance of adequate and well controlled human clinical trials to establish the safety and efficacy of the proposed drug's intended use; and approval by the FDA of a New Drug Application ("NDA").

~~Our~~The ~~head~~activities ~~office~~required ~~and~~before ~~lab~~a ~~operations~~pharmaceutical ~~are~~agent ~~based~~may be marketed in the ~~Australia~~United States begin with pre-clinical testing. ~~Accordingly,~~Pre-clinical wetests ~~have~~include laboratory ~~been~~evaluation ~~subject~~of topotential ~~exposure~~products ~~from~~and ~~adverse~~animal ~~movements~~studies to assess the inpotential ~~foreign~~safety ~~currency~~and ~~exchange~~efficacy ~~rates~~of the product and its formulations. ToThe ~~date~~results of these studies and other information must be submitted to the FDA as part of an IND application, which must be reviewed and approved by the ~~effect~~FDA before proposed clinical testing can begin. Clinical trials involve the administration of ~~changes~~the ininvestigational ~~foreign~~new drug to healthy volunteers or to patients under the ~~currency~~supervision ~~exchange~~of ~~rates~~a onqualified ~~revenue~~principal ~~and~~investigator. ~~operating~~Clinical ~~expenses~~trials ~~has~~are ~~not~~conducted in ~~been~~accordance ~~material~~with Good Clinical Practices under protocols that detail the asobjectives weof ~~have~~the ~~had~~study, nothe ~~revenue~~parameters to be used to monitor safety and ~~limited~~the efficacy ~~operations~~criteria to be evaluated. ~~Operating~~Each ~~expenses~~protocol ~~incurred~~must ~~by our~~be ~~foreign~~submitted ~~subsidiaries~~to ~~were~~the ~~denominated~~FDA inas part ~~local~~of ~~currencies~~the IND application. WeFurther, ~~have~~each ~~not~~clinical ~~used~~study must be conducted ~~financial~~under ~~instruments~~the toauspices ~~hedge~~of ~~these~~an ~~operating~~independent ~~expenses~~institutional review board. The institutional review board will consider, among other things, ethical factors and the safety of human subjects.

Typically, human clinical trials are conducted in three phases that may overlap. In Phase 1, clinical trials are conducted with a small number of subjects to determine the early safety profile and pharmacology of the new therapy. In Phase 2, clinical trials are conducted with groups of patients afflicted with a specific disease in order to determine preliminary efficacy, optimal dosages and expanded evidence of safety. In Phase 3, large scale, multicenter, comparative clinical trials are conducted with patients afflicted with a target disease in order to provide enough data for the statistical proof of efficacy and safety required by the FDA and others.

The results of the pre-clinical and clinical testing, together with chemistry and manufacturing information, are submitted to the FDA in the form of an NDA for a pharmaceutical product in order to obtain approval to commence commercial sales. In responding to an NDA, the FDA may grant marketing approvals, request additional information or further research, or deny the application if it determines that the application does not satisfy its regulatory approval criteria. Patient-specific therapies may be subject to additional risk with respect to the regulatory review process. FDA approval for a pharmaceutical product may not be granted on a timely basis, if at all, or if granted may not cover all the clinical indications for which approval is sought or may contain significant limitations in the form of warnings, precautions or contraindications with respect to conditions of use.

Once approved, the FDA may withdraw the product approval if compliance with pre- and post-marketing regulatory standards is not maintained or if problems occur after the product reaches the marketplace. In addition, the FDA may require post-marketing studies, referred to as Phase 4 studies, to monitor the effect of an approved product, and may limit further marketing of the product based on the results of these post-market studies. The FDA has broad post-market regulatory and enforcement powers, including the ability to levy fines and civil penalties, suspend or delay issuance of approvals, seize or recall products, or withdraw approvals.

Facilities used to manufacture drugs are subject to periodic inspection by the FDA, Drug Enforcement Agency and other authorities where applicable, and must comply with the FDA's Current Good Manufacturing regulations. Failure to comply with the statutory and regulatory requirements subjects the manufacturer to possible legal or regulatory action, such as suspension of manufacturing, seizure of product or voluntary recall of a product. Adverse experiences with the product must be reported to the FDA and could result in the imposition of market restriction through labeling changes or in product removal. Product approvals may be withdrawn if compliance with regulatory requirements is not maintained or if problems concerning safety or efficacy of the product occur following approval.

With respect to post-market product advertising and promotion, the FDA imposes a number of complex regulations on entities that advertise and promote pharmaceuticals, which include, among other things, standards and regulations relating to direct-to-consumer advertising, off-label promotion, industry-sponsored scientific and educational activities, and promotional activities involving the Internet. The FDA has very broad enforcement authority under the Federal Food, Drug and Cosmetic Act, and failure to abide by these regulations can result in penalties including the issuance of a warning letter directing the entity to correct deviations from FDA standards, a requirement that future advertising and promotional materials be pre-cleared by the FDA, and state and federal civil and criminal investigations and prosecutions.

Research facilities are subject to various laws and regulations regarding laboratory practices, the experimental use of animals, and the use and disposal of hazardous or potentially hazardous substances in connection with the research in question. In each of these areas, as above, the government has broad regulatory and enforcement powers, including the ability to levy fines and civil penalties, suspend or delay issuance of approvals, seize or recall products, and withdraw approvals, any one or more of which could have a material adverse effect upon us.

Other Government Regulations. In addition to laws and regulations enforced by the FDA, research of Molecular USA's products in the United States are subject to regulation under National Institutes of Health guidelines, as well as under the Controlled Substances Act, the Occupational Safety and Health Act, the Environmental Protection Act, the Toxic Substances Control Act, the Resource Conservation and Recovery Act and other present and potential future federal, state or local laws and regulations, as research and development of its products involves the controlled use of hazardous materials, chemicals, viruses and various radioactive compounds.

In addition to regulations in the United States, Molecular USA's products are subject to a variety of foreign regulations governing clinical trials and commercial sales and distribution of its Licensed Products. Whether or not Molecular USA obtains FDA approval for a product, Molecular USA or its subsidiaries must obtain approval of a product by the comparable regulatory authorities of foreign countries before it can commence clinical trials or marketing of the product in those countries. The approval process varies from country to country, and the time may be longer or shorter than that required for FDA approval. The requirements governing the conduct of clinical trials, product licensing, pricing and reimbursement vary greatly from country to country.

Sarbanes-Oxley Act of 2002. On July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act of 2002 ("SOA"). The SOA imposes a wide variety of new requirements on both U.S. and non-U.S. companies, that file or are required to file periodic reports with the SEC under the Securities Exchange Act of 1934 ("Exchange Act"). Many of these new requirements will affect Molecular USA and its board of directors. For instance, under the SOA, Molecular USA is required to:

form an audit committee in compliance with the SOA;

ensure Molecular USA's chief executive officer and chief financial officer are required to certify its financial statements;

ensure Molecular USA's directors and senior officers are required to forfeit all bonuses or other incentive-based compensation and profits received from the sale of Molecular USA's securities in the twelve month period following initial publication of any of Molecular USA's financial statements that later require restatement;

disclose any off-balance sheet transactions as required by the SOA;

prohibit all personal loans to directors and officers;

ensure directors, officers and 10% holders file their Forms 4's within two days of a transaction;

adopt a code of ethics and file a Form 8-K whenever there is a change or waiver of this code; and

ensure Molecular USA's auditor is independent as defined by the SOA.

The SOA has required us to review our current procedures and policies to determine whether they comply with the SOA and the new regulations promulgated thereunder. We will continue to monitor our compliance with all future regulations that are adopted under the SOA and will take whatever actions are necessary to ensure that we are in compliance.

Environmental Compliance

The nature of Molecular USA's and MPLA's business does not require special environmental or local government approval. Molecular USA and MPLA are compliant with all environmental laws. The cost of such compliance is minimal for the company.

Employees

In the period ended September 30, 2014, Molecular USA did not have any employees and does not intend to hire any employees in the upcoming year. We rely heavily on outside contractors to conduct our business.

Immediate Business Plans

The Company, through its subsidiary MPLA, plans to continue to pursue the various levels of the international regulatory approval processes. Applications and product opportunities for Tripeptofen are believed to be broad and cover a range of commercial fields, each with distinct pre-market requirements. The international drug development team, global resources and local know-how will allow MPLA to seek the most time and cost effective regulatory pathways for each product and market sector.

On commercial development, MPLA will focus on consolidating the regulatory pathway work in order to prioritize the path to market. Jeffrey Edwards will work to set-out the strategies designed to maximize the multi-jurisdictional capabilities of MPLA's development teams.

Reports to Security Holders

We are required to file annual reports on Form 10-K and quarterly reports on Form 10-Q with the SEC on a regular basis, and will be required to timely disclose certain material events (e.g., changes in corporate control; acquisitions or dispositions of a significant amount of assets other than in the ordinary course of business; and bankruptcy) in a current report on Form 8-K.

Although our Internet site www.mpl-usa.com does not contain our reports, you may read and copy any materials we file with the SEC at their Public Reference Room at 450 Fifth Street, N.W., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Additionally, the SEC maintains an Internet site (http://www.sec.gov) that contains reports, proxy and information statements and other information regarding issuers that file electronically with the SEC.

Results of Operation

For the quarter ended September 30, 2014.

Revenues

REVENUE - Molecular USA has not generated any revenues for the quarter ended September 30, 2014, or since inception.

COMMON STOCK - Molecular USA has not issued any shares during the most recent quarter. As of the date of November 13, 2014, Molecular USA has 111,553,740 common shares issued and outstanding.

Expenses

SUMMARY - Total expenses were $29,026 for the three month period ended September 30, 2014. Expenses had decreased during this past three month period as compared to the three month period ended September 30, 2013 - $40,773. A total of $2,207,902 in expenses has been incurred by Molecular USA since inception on July 14, 2004 through to September 30, 2014. The decrease in costs over this three month period has occurred as the result of Molecular USA's wholly owned subsidiary decreasing its consulting fees. The costs can be subdivided into the following categories.

Office Expenses and Rent: $12,717 in office expenses (for administrative costs) were incurred for the three month period ended September 30, 2014, as compared to $10,120 for the three month period ended September 30, 2013, while a total of $290,045 was incurred in the period from inception on July 14, 2004 to September 30, 2014. All contributed expenses are reported as contributed costs with a corresponding credit to additional paid-in capital.

	2.	Consulting and Analysis Costs: Molecular USA relies on consultants and other third parties to conduct the majority of its research. For the three month period ended September 30, 2014, $6,933 in consulting and analysis expenses were incurred as compared to $15,285 during the three month period ended September 30, 2013. We have incurred a total of $1,468,453 in consulting and analyst fees since our inception on July 14, 2004 to September 30, 2014.
	3.	Advertising and Promotion Fees: Molecular USA has spent no money in this area this year. During the three month period ended September 30, 2014, we spent $Nil on advertising and public relations and $Nil for three month period ended September 30, 2013. A total of $23,739 has been incurred in this area during the period from inception on July 14, 2004 to September 30, 2014.
	4.	Professional Fees: Molecular USA incurred $7,515 in professional fees for the three month period ended on September 30, 2014, as compared to $13,697 for the three month period ended September 30, 2013. From inception on July 14, 2004 to September 30, 2014, we have incurred a total of $455,482 professional fees mainly spent on legal and accounting matters.
	5.	Travel Costs: Molecular USA incurred $Nil in travel costs for the three month period ended September 30, 2014, as compared to $Nil for the three month period ended September 30, 2013 and $111,710 has been incurred in the period from inception on July 14, 2004 to September 30, 2014.

Salaries and Benefit Costs: Molecular USA and its subsidiary rely primarily on outside consultants and not salaried employees. As a result, Molecular USA incurred $Nil in salaries and benefits for the three month period ended September 30, 2014 and $Nil in salaries and benefits during the three month period ended September 30, 2013. For the period July 14, 2004 (inception) through September 30, 2014, Molecular USA has spent a total of $44,464 on salaries and benefits.

Molecular USA continues to carefully control its expenses and overall costs as it moves forward with the development of its new business plan. Molecular USA does not have any employees and engages personnel through outside consulting contracts or agreements or other such arrangements.

Income Tax Provision: We have losses carried forward for income tax purpose to September 30, 2014. There are no current or deferred tax expenses for the three month period ended September 30, 2014, due to our loss position. We have fully reserved for any benefits of these losses. The deferred tax consequences of temporary differences in reporting items for financial statement and income tax purposes are recognized as appropriate.

Liquidity and Capital Resources

During the three month period ended September 30, 2014, Molecular USA satisfied its working capital needs by borrowing cash from its parent company PharmaNet. As of September 30, 2014, the Company had cash and cash equivalents on hand in the amount of $1,517 (June 30, 2014 - $2,378) and current payable and accrued liabilities of $32,008 (June 30, 2014 - $34,526). As of September 30, 2014, Molecular USA currently owes its parent company PharmaNet, $1,980,760, an additional $94,950 to other related parties, and $32,008 to non-related parties. Given the proposed business activities of Molecular USA and its subsidiary, management does not expect that the current level of cash on hand will be sufficient to fund its operation for the next twelve month period.

To achieve our goals and objectives for the next 12 months, we plan to raise additional capital through private placements of our equity securities and future financing from our majority shareholder PharmaNet.

If we are unsuccessful in obtaining new capital, our ability to seek and consummate strategic acquisitions to build our company internationally and to expand of our business development and marketing programs could be adversely affected.

Off-Balance Sheet Arrangement

As of September 30, 2014, Molecular USA did not have any off-balance sheet arrangements.

Research and Development

Since the acquisition of MPLA, Molecular USA has maintained MPLA's research and development program to:

		Refine and prove-up its proprietary active ingredients and to commence the processes that will lead to the issue of a Master Drug File registration of its products;
		Define the mode of action and potential of Tripeptofen in both in vitro, animal and human studies;
		Gain Australian regulatory and marketing approval;
		Gain European regulatory approval; and
		Commence application for American regulatory approval.

MPLA is in the business of developing and commercializing a new analgesic and anti-inflammatory molecule known as Tripeptofen. Tripeptofen is likely to appear in a new group of products suitable for the treatment of common every-day pain. As an analgesic and anti-inflammatory drug, Tripeptofen is unusual due to its rapid speed of action and its topical or rub-on application.

On April 19, 2006, Molecular USA announced the filing of a new patent, Tissue Disruption Treatment and Composition for Use (US Patent number 11218382). The patent describes a proprietary process for the manufacture of topical biological secondary injury mediators ("B-SIMs") that should have local, rather than systemic, effects and may be significantly less expensive to manufacture than conventional B-SIMs. MPLA is developing its B-SIMs to stop the tissue disruption that occurs after injury by suppressing the body's reactions, such as inflammation and damage/death of otherwise uninjured cells that are triggered in response to primary injury.

The first conditions targeted by MPLA will be the musculoskeletal injuries. The use of a B-SIM in these markets represents a new approach to one of the world's largest over the counter drug markets and includes indications such as joint inflammation, musculoskeletal pain, overuse and strain injuries, burns and even surgical and cosmetic procedures. MPLA's proprietary, industrially scalable peptide-ligand bond exchange ("PLBE") B-SIM manufacturing process involves the disassociation of proteins, rather than the far more costly process of assembling B-SIMs one sequence at a time. The patent was lodged in the name of Cambridge Scientific; however, Molecular USA holds the worldwide exclusive license to manufacture, commercialize, market and distribute topical anti-inflammatory and analgesic products based on the proprietary MPL-TL compound.

Molecular USA is still working on the projections regarding the necessary expenditure and time frame involved in pursuing this research and development program. Any such program will also be subject to Molecular USA raising the necessary funds to advance such a program.

Capital Expenditure Commitments

Capital expenditures for the three month period ended September 30, 2014, amounted to $Nil. Molecular USA does not anticipate any significant purchase or sale of equipment over the next 12 months.

Recent Accounting Pronouncements

Certain new standards, interpretations, amendments and improvements to existing standards were issued by Financial Accounting Standards Board ("FASB"). The new standards, amendments to standards and interpretations that have been issued and that are applicable to the Company but not effective during the three month period ended September 30, 2014 are as follows:

In July 2013, the FASB issued ASU 2013-11, "Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exist". These amendments require that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward except as follows. To the extent a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from a disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. These amendments are effective for fiscal years, and interim periods within those years, beginning after July 1, 2014. The amendments should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application and early adoption is permitted. The adoption is not expected to have a material impact on the Company's interim consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers". The update is intended to improve the financial reporting requirements for revenue from contracts with customers by providing a principle based approach. The core principal of the standard is that revenue should be recognized when the transfer of promised goods or services is made in an amount that the entity expects to be entitled to in exchange for the transfer of goods and services. ASU 2014-09 also requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This standard will be effective for financial statements issued by public companies for annual reporting periods beginning after December 15, 2016. Early adoption is not permitted. The adoption is not expected to have a material impact on the Company's interim consolidated financial statements.

Critical Accounting Policies and Estimates

Our quarterly interim consolidated financial statements and accompanying notes are prepared in accordance with U.S. GAAP used in the United States. Preparing financial statements requires Management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by Management's application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our interim consolidated financial statements is critical to an understanding of our financials.

Stock-based compensation

Effective 1 January 2006, the Company adopted the provisions of ASC 718, "Compensation - Stock Compensation", which establishes accounting for equity instruments exchanged for employee services. Under the provisions of ASC 718, stock-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employees' requisite service period (generally the vesting period of the equity grant). The Company adopted ASC 718 using the modified prospective method, which requires the Company to record compensation expense over the vesting period for all awards granted after the date of adoption, and for the unvested portion of previously granted awards that remain outstanding at the date of adoption. Accordingly, the financial statements for the periods prior to January 1, 2006 have not been restated to reflect the fair value method of expensing share-based compensation. The adoption of ASC 718 does not change the way the Company accounts for share-based payments to non-employees, with guidance provided by ASC 505-50, "Equity-Based Payments to Non-Employees".

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Interest Rate Risk

Due to the short-term nature of our interest bearing assets, which consist primarily of cash and cash equivalents and no restricted cash, we believe that our exposure to interest rate market risk will not significantly affect our operations.

Foreign Currency Risk

Our head office and lab operations are based in Australia. Accordingly, we have been subject to exposure from adverse movements in foreign currency exchange rates. To date, the effect of changes in foreign currency exchange rates on revenue and operating expenses has not been material as we have had no revenue and limited operations. Operating expenses incurred by our foreign subsidiaries were denominated in local currencies. We have not used financial instruments to hedge these operating expenses.

Item 4. Controls and Procedures.

(a) Evaluation of disclosure controls and procedures

Disclosure controls are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's Management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

29 Management carried out an evaluation (with the participation of our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") ), of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under Exchange Act. Based upon that evaluation, the Company's CEO and CFO have concluded that the Company's disclosure controls and procedures were effective as of September 30, 2014.

Management carried out an evaluation (with the participation of our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") ), of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 ("Exchange Act"). Based upon that evaluation, the Company's CEO and CFO have concluded that the Company's disclosure controls and procedures were effective as of December 31, 2013.

(b) Internal control over financial reporting

Management's annual report on internal control over financial reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is intended to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP. Our internal control over financial reporting should include those policies and procedures that:

· pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; · provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with applicable U.S. GAAP, and that receipts and expenditures are being made only in accordance with authorizations of Management and the Board of Directors; and · provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with applicable U.S. GAAP, and that receipts and expenditures are being made only in accordance with authorizations of Management and the Board of Directors; and

provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

As required by Rule 13a-15(c) promulgated under the Exchange Act, Management, with the participation of our CEO and CFO, evaluated the effectiveness of our internal control over financial reporting as of ~~December~~September 3130, ~~2013~~2014. Management's assessment took into consideration the size and complexity of the company and was based on criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission in Internal Control over Financial Reporting - Guidance for Smaller Public Companies. In performing the assessment, Management has concluded that our internal control over financial reporting was effective as of September ~~December 31~~30, ~~2013~~2014.

Attestation report of the registered public accounting firm

This quarterly report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's registered public accounting firm pursuant to temporary rules of the SEC that permit the Company to provide only Management's report in this quarterly report.

Changes in internal control over financial reporting

Based on the evaluation as of ~~December~~September 3130, ~~2013~~2014, Jeffrey Edwards, our President, CEO, and CFO ~~has~~have concluded that there were no significant changes in our internal controls over financial reporting or in any other areas that could significantly affect our internal controls subsequent to the date of his most recent evaluation, including corrective actions with regard to ~~significant~~ significant deficiencies and material weaknesses.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

We know of no material, active 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 any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

Item 1A. Risk Factors.

As a "smaller reporting company" as defined by Item 10(f) of Regulation S-K, the Company is not required to provide information required by this Item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

Recent Sale of Unregistered Securities

Not Applicable.

Use of Proceeds from Unregistered Securities

Not Applicable.

Item 3. Defaults Upon Senior Securities.

Not Applicable.

Item 4. Mine Safety Disclosures.

Not Applicable.

Item 5. Other Information.

No items to disclose.

Item 6. Exhibits.

Exhibit Number	Exhibit Title
3.1	Articles of Incorporation as Amended (incorporated by reference to exhibit 3.1 to our Form 10-SB Registration Statement filed on January 23, 2003).
3.2	Article of Amendment dated August 29, 2005.
3.3	Bylaws as Amended (incorporated by reference to exhibit 3.2 to our Form 10-SB Registration Statement filed on January 23, 2003).
31.1	Certificate of CEO as Required by Rule 13a-14(a)/15d-14.
31.2	Certificate of CFO as Required by Rule 13a-14(a)/15d-14.
32.1	Certificate of CEO and CFO as Required by Rule 13a-14(b) and Rule 15d-14(b) (17 CFR 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code.

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.

~~February~~ November 1113, 2014.

MOLECULAR PHARMACOLOGY (USA) LIMITED BY: /s/ Jeffrey Edwards Jeffrey Edwards, President, Chief Executive Officer, Chief Financial Officer and a Member of the Board of Directors

Filing Compare · Molecular Pharmacology (USA) Ltd.