UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

¨	QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended

SEPTEMBER 30, 2010

¨	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 000-23873

IMAGIN MOLECULAR CORPORATION

(Exact Name of Registrant as specified in its charter)

Delaware	13-4099008
(State or Other Jurisdiction of Incorporation or Organization)	(IRS Employer Identification No.)

1324 36th Avenue North East Calgary, Alberta Canada	T2E 8S1
(Address of Principal Executive Offices)	(Zip Code)

(416) 817-5803

(Issuer’s Telephone Number, Including Area Code)

3 Grant Square, #315, Hinsdale, Illinois 60521, (630) 230-8734

(Former address and phone number since last report)

Indicate by check mark whether the issuer (1) 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 ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨ No ¨

Indicate by check mark whether the registrant is a larger accelerated filer, an accelerated filer, a non-accelerated or a smaller reporting company. See the definition of "large accelerated filer, accelerated filer and smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	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

The numbers of shares outstanding of each of the issuer's classes of common equity, as of November 22, 2010, are as follows:

Class of Securities		Shares Outstanding
Common Stock, $0.001 par value		95,000,000

IMAGIN MOLECULAR CORPORATION

FOR THE QUARTER ENDED SEPTEMBER 30, 2010

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INDEX	Page

PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS	3

Consolidated Balance Sheet at September 30, 2010 (unaudited) and December 31, 2009	3

Consolidated Statements of Operations for the three months ended September 30, 2010 and 2009 and nine months ended September 30, 2010 and 2009 (unaudited)	4

Consolidated Statements of Cash Flows for the nine months ended September 30, 2010 and 2009 (unaudited)	5

Notes to Consolidated Financial Statements (unaudited)	6

ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	9

ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	10

ITEM 4 - CONTROLS AND PROCEDURES	11

PART II-OTHER INFORMATION

ITEM 1 - LEGAL PROCEEDINGS	13

ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	13

ITEM 3 - DEFAULTS UPON SENIOR SECURITIES	13

ITEM 4 – (REMOVED AND RESERVED)	13

ITEM 5 - OTHER INFORMATION	13

ITEM 6 – EXHIBITS	13

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PART 1 – FINANCIAL INFORMATION

ITEM 1. Financial Statements

IMAGIN MOLECULAR CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	September 30, 2010 (unaudited)			December 31, 2009
ASSETS
Current assets:
Cash	$	--		$	140

Total current assets		--			140


Other assets:
Investment in securities of Positron Corporation		212,374			286,773

Total assets	$	212,374		$	286,913

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable	$	48,238		$	48,238
Accrued expenses		586,499			562,836
Due to affiliate		29,224			29,224

Total current liabilities		663,961			640,298

Majority interest in consolidated subsidiary		230,058			230,058

Total liabilities		894,019			870,356

Stockholders’ deficit:
Preferred Stock, $0.001 par value; 5,000,000 shares authorized 2,135,000 shares issued in 2010		2,135			--
Common stock, $0.001 par value; 95,000,000 shares authorized, 95,000,000 shares issued, and 95,000,000 shares outstanding in 2010 and 74,443,284 in 2009.		95,000			74,443
Additional paid-in capital		4,542,052			4,112,274
Accumulated deficit		(5,320,832	)		(4,770,160	)

Total stockholders’ deficit		(681,645	)		(583,443	)

Total liabilities and stockholders’ deficit	$	212,374		$	286,913

See accompanying notes to the financial statements.

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IMAGIN MOLECULAR CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended						Nine Months Ended
	Sept 30, 2010			Sept 30, 2009			Sept 30, 2010			Sept 30, 2009


Revenues:	$	--		$	--		$	--		$	--

Costs of revenues:		--			--			--			90,315

Gross loss		--			--			--			(90,315	)

Operating expenses:
Marketing, general and administrative		223,500			746,281			476,273			1,052,548

Total operating expenses		223,500			746,281			476,273			1,052,548

Loss from operations		(223,500	)		(746,281	)		(476,273	)		(1,142,863	)

Miscellaneous or other income		--			14,399			--			11,474
Interest expense		--			(1,621	)		--			(15,142	)
Equity in income (losses) of Positron Corporation		1,556			(20,931	)		(74,399	)		(58,450	)

Total other income (expense)		1,556			(8,153	)		(74,399	)		(62,118	)

Loss before income taxes		(221,944	)		(754,434	)		(550,672	)		(1,204,981	)

Income taxes		--			--			--			--

Net loss	$	(221,944	)	$	(754,434	)	$	(550,672	)	$	(1,204,981	)

Loss Per Share:	$	(0.0023	)	$	(0.0101	)	$	( 0.0058	)	$	( 0.0163	)

Weighted average common shares:		95,000,000			74,443,284			95,000,000			74,017,570

See accompanying notes to the financial statement

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IMAGIN MOLECULAR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDING SEPTEMBER 30, 2010 AND 2009

(Unaudited)

	2010			2009

Cash flows from operating activities:
Net loss	$	(550,672	)	$	(1,204,981	)
Adjustment to reconcile net loss to net cash used in operating activities
Depreciation expense		--			245
Loss on disposal of assets		--			2,925
Common stock issued for services		238,970			839,000
Equity in losses of Positron Corporation		74,399			58,450
Changes in operating assets and liabilities:
Accounts payable and accrued liabilities		23,663			278,192

Net cash used in operating activities		(213,640	)		(26,169	)


Cash flows from financing activities:
Preferred Share Subscriptions		213,500			-
Advance from affiliate		-			25,364

Net cash provided by financing activities		213,500			25,364

Net decrease in cash		(140	)		(805	)

Cash at beginning of period		140			942

Cash at end of period	$	--		$	137

Supplemental cash flow information:
Interest paid	$	--		$	--
Income taxes paid		--			--

See accompanying notes to the financial statements.

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IMAGIN MOLECULAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1. BUSINESS ORGANIZATION

Imagin Molecular Corporation (“Imagin” or the “Company”) was originally incorporated under the laws of the State of Delaware. Imagin commenced operations upon incorporation and was in the development stage through the first quarter of 2006 and through that period had very little revenue. Imagin’s subsidiary Cipher Multimedia, Inc (“Cipher”) operated Imagin’s original business, a digital distribution solution and marketing company which secures and allows access to digital content through proprietary encoding, encryption and authorization technology.

In 2005 Imagin’s Board of Director’s resolved to change the Company’s principal operations from multimedia encryption technology to positron emission tomography and medical imaging. Operations began in the second quarter of 2006 and the Company no longer operated in the development stage. On March 20, 2007, the Company’s Board of Directors authorized the spin-off of Cipher to the Company’s Shareholders of record on March 26, 2007. Solely from an accounting perspective, the results of Cipher are presented as discontinued operations in the Company’s consolidated statements of operations and cash flows.

On April 1, 2010, the Company entered into an agreement with Imaging Diagnostic Centres, Inc., a Canadian corporation (“IDC”), which agreed to sell 3,100,000 shares of Positron Corporation’s Series B Convertible Preferred Stock held by IDC to the Company in exchange for 310,000,000 newly-issued shares of the Company’s Common Stock. The value of the Imagin Molecular Corporation stock and note as well as the Positron Corporation Series B Preferred Stock on the date of the agreement was $4,100,000. Consideration for the exchange was 310,000,000 newly-issued shares of the Company’s Common Stock and an interest-free note in the principal amount of $1,000,000, payable in 3 years after the closing date with the right to prepay without penalty from excess cash generated by the Company. Additionally, the Company agreed to transfer a viable positron emission tomography concept to develop “Positron Cardiac Care Clinics” and IDC would deliver a viable concept to develop and operate a biodegradable plastic bottle subsidiary. The consummation of this transaction is contingent upon the effectiveness of the amendment of the Company’s Certificate of Incorporation to increase its authorized number of shares of Common Stock to 950,000,000 shares.

Resignation and Election of New Directors and Officers

On June 3, 2010, Joseph G. Oliverio resigned as Director and Chief Executive Officer of the Registrant, Corey Conn resigned as Director and Chief Financial Officer of the Registrant and Neil Sy resigned as Director of the Registrant.

On June 3, 2010, Patrick J. Rooney, Ghassan Barazi and Nicholas Anthony Havercroft were elected and appointed to the Board of Directors of the Registrant. Also on that date, Mr. Rooney was appointed Chief Executive Officer and Director of Corporate Development and Mr. Barazi was appointed the Registrant’s President.

Amendments to Certificate of Incorporation and Refocus of Operations

On June 8, 2010, our Board of Directors and a majority of shareholders authorized an amendment to the Company’s Certificate of Incorporation to change the name of the Registrant to “The Planet Bottle Corporation”, effect a reverse split of the Registrant’s Common Stock per share on a 1:10 basis and authorize the issuance of blank check preferred stock, par value $0.001 per share. In addition, the Company intends to adopt a new business plan in the oxo-biodegradable and/or “Green” sector. Oxo-biodegradable technology is based on proven science wherein the molecular structure of plastic is reduced then fragmented by the introduction of a masterbatch additive, changing the very nature of the plastic thus making it more susceptible to digestion by microbes or bacteria as found commonly in landfills and/or the environment.

The Company currently holds 722,358 shares of Positron Corporation Series B Preferred Stock and 4,000,000 shares of the Positron Common Stock.

On July 21, 2010, the Company filed a Definitive Information Statement with the Securities and Exchange Commission to amend the Company’s Certificate of Incorporation to increase its authorized capitalization to 1,000,000,000 shares, of which 950,000,000 will be Common Stock and 50,000,000 will be preferred stock, and to change the name of the Company to The Planet Bottle Corporation. As of November 22, 2010, these amendments have not yet been filed with the Secretary of State of Delaware.

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NOTE 2. BASIS OF PRESENTATION

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities and Exchange Commission for Interim Reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

In the opinion of Management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation for the interim periods have been included. Operating results for the nine month period ended September 30, 2010, are not necessarily indicative of the results that may be expected for the year ending December 31, 2010. The accompanying financial statements and the information included under the heading “Management’s Discussion and Analysis of Financial Position and Results of Operations” should be read in conjunction with our company’s audited financial statements and related notes included in our company’s Form 10-K for the year ended December 31, 2009.

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

For a summary of significant accounting policies (which have not changed from December 31, 2009), see the Company’s Annual Report on Form 10-K for the year ended December 31, 2009.

Principles of Consolidation and Nature of Operations

For the periods ended September 30, 2010 and 2009, the financial statements include the accounts and transactions of Imagin Molecular Corporation and its subsidiaries Cipher Multimedia, Inc. (a discontinued operation), Positron Acquisition Corp. and Imagin Nuclear Partners Corporation. All Intercompany transactions and balances have been eliminated.

Recently Issued Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

NOTE 4. GOING CONCERN

These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company has sustained losses since inception and has accumulated losses of $5,236,329 and total stockholders’ deficit of $681,645 as of September 30, 2010. The Company will need to raise additional capital to continue operations.

The Company has made a significant investment into the securities of Positron Corporation, a publicly owned Texas Corporation and affiliate of the Company (“Positron”). As of September 30, 2010, the Company held 4,000,000 shares of Positron’s common stock and 722,358 shares of Positron’s Series B Convertible Preferred stock.

While the Company is expending its best efforts to achieve its operating goals, there is no assurance that such activity will generate sufficient funds to accomplish its business purpose, or that the Company’s business plan will be successful. Furthermore, there can be no assurance that amounts invested in and advanced to Positron Corporation will ever be realized.

NOTE 5. INVESTMENT IN SECURITIES OF POSITRON CORPORATION

At September 30, 2010, the Company owned 4,000,000 shares of Positron Corporation’s common stock, representing .52% of the outstanding common stock, and 722,358 of Positron’s Series B Preferred Shares or approximately 12% of the class. The Company accounts for its investment in the securities of Positron Corporation under the equity method of accounting. Based on its percentage ownership of Positron common stock, for the nine months ended September 30, 2010 and 2009, the Company recorded equity in the losses of Positron of $74,399 and $37,519, respectively, reducing the carrying value of the Positron securities to $212,374 at September 30, 2010.

Summarized financial information for Positron for the nine months ended September 30, 2010 and 2009 follows:

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	Nine Months Ended Sept 30, 2010			Nine Months Ended Sept 30, 2009
Revenues	$	2,414,000		$	889,000
Loss from operations		(12,880,000	)		(2,568,000	)
Net loss		(9,364,000	)		(2,864,000	)
Loss per share	$	(0.016	)	$	(0.014	)
Weighted average shares outstanding		582,766,000			198,935,000

	Sept 30, 2010
Current assets	$	3,782,000
Total assets		4,151,000
Current liabilities		3,040,000
Total liabilities		5,056,000
Stockholders’ deficit		(100,693,000	)
Common shares outstanding		778,852,547

The underlying common shares related to anti-dilutive securities not included in Positron’s net loss per share calculation as of September 30, 2010 were as follows:

Convertible Series A Preferred Stock			457,000
Convertible Series B Preferred Stock			608,859,000
Convertible Series G Preferred Stock			2,920,000
Convertible Series S Preferred Stock			1,000,000,000
Stock Warrants			238,563,000
Stock Options			276,450,000
			2,127,249,000

NOTE 6. STOCKHOLDERS’ DEFICIT

On January 25, 2010, the Company issued 556,716 shares of common stock to it Chief Financial Officer as compensation. On the date the shares were issued the common stock had a fair market value of $0.07 per share. For the nine months ended September 30, 2010, the Company recorded compensation expense of $38,970 to the shares issued.

On April 1, 2010, the Company granted 20,000,000 shares of common stock to company management and consultants for services rendered. On the date the shares were issued the common stock had a fair market value of $0.01 per share. For the nine months ended September 30, 2010, the Company recorded compensation expense of $200,000 to the shares issued.

During July and August 2010, the Company issued an aggregate of 2,135,000 shares of preferred stock for aggregate proceeds of $213,500.

NOTE 7. RELATED PARTY

During the nine months ended September 30, 2010, the Company paid a related party $ 213,500 for consulting serviced.

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ITEM 2. Management's Discussion And Analysis Of Financial Condition And Results Of Operation

The Company is including the following cautionary statement in this Quarterly Report on Form 10-Q to make applicable and utilize the safe harbor provision of the Private Securities Litigation Reform Act of 1995 regarding any forward-looking statements made by, or on behalf of, the Company. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. Certain statements contained herein are forward-looking statements and, accordingly, involve risks and uncertainties, which could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements.

The Company’s expectations, beliefs and projections are expressed in good faith and are believed by the Company to have a reasonable basis, including without limitations, examination of historical operating trends, data contained in records and other data available from third parties, but there can be no assurance that the Company’s expectations, beliefs or projections will result, or be achieved, or be accomplished.

Overview

Imagin Molecular Corporation, through its subsidiaries, has engaged in the business and operations of positron emission tomography (PET). The Company engaged in the ownership of PET imaging center and the diagnosis and treatment of cancer, heart, and neurological diseases. It provides myocardial perfusion imaging technology, and related technical and educational services to diagnose and treat patients with coronary artery disease, and patients who are at risk of developing coronary heart disease. The Company also offers cardiovascular PET and noninvasive coronary artery disease reversal programs to general/family/internal medicine physicians in the United States.

The Company is no longer engaged in any PET imaging business. The Company is adopting a new business plan in the oxo-biodegradable and/or “Green” sector. Oxo-biodegradable technology is based on proven science wherein the molecular structure of plastic is reduced then fragmented by the introduction of a masterbatch additive, changing the very nature of the plastic thus making it more susceptible to digestion by microbes or bacteria as found commonly in landfills and/or the environment.

Comparison of the Results of Operations for the Three Months ended September 30, 2010 and 2009

During the three months ended September 30, 2010 the Company had a net loss of $221,944 compared to a net loss of $754,434 for the three months ended September 30, 2009.

The Company did not record any revenues during the three months ended September 30, 2010 or the three months ended September 30, 2009.

Operating expenses were $223,500 and $746,281 for the three months ended September 30, 2010 and 2009, respectively.

For the three months ended September 30, 2009, interest expense on notes payable was $ 1,621. In October 2009, the Company satisfied its obligation with respect to the notes.

For the three months ended September 30, 2010 and 2009, the Company recorded equity in the profit(loss) of Positron of $1,556 and ($20,931), respectively.

Comparison of the Results of Operations for the Nine Months ended September 30, 2010 and 2009

During the nine months ended September 30, 2010 the Company had a net loss of $550,672 compared to a net loss of $1,204,981 for the nine months ended September 30, 2009.

The Company did not record any revenues during the nine months ended September 30, 2010 or the nine months ended September 30, 2009.

In March 2009, the Company terminated its agreement with the supplier of rubidium, the pharmaceutical agent used in the PET scanning process. However, under the terms of its agreement with the supplier, the Company was required to give a 90 day notice prior to terminating the agreement. Consequently, the Company recorded an additional $90,315 of costs despite not recording any lease revenue.

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Operating expenses were $476,273 and $1,052,548 for the nine months ended September 30, 2010 and 2009, respectively. For the nine months ended September 30, 2010, the Company recorded consulting expense of $200,000 for shares of common stock issued to various individuals and compensation expense of $38,970 for shares of common stock issued to its Chief Financial Officer.

For the nine months ended September 30, 2010 and 2009, the Company recorded equity in the losses of Positron of $74,339 and $58,450, respectively.

Liquidity and Capital Resources

We do not have sufficient funds to operate. Future operating activities are expected to be funded by loans from our officers and directors or funds raised through the sale of our securities. However, there can be no assurance that we will be able to raise funds through any of these means or if funds are raised that they will be sufficient to support our planned business operations.

At September 30, 2010, the Company had current assets of $0 and current liabilities of $663,961 compared to December 31, 2009 when the Company had current assets and current liabilities of $140 and $640,298, respectively.

Current liabilities at September 30, 2010 include accounts payable and accrued expenses of $634,737 and amounts due affiliated companies totaling $29,224.

Net cash used in operating activities during the nine months ended September 30, 2010 was $213,640 compared to $26,169 during the nine months ended September 30, 2009.

The Company did not have any investing activities during the nine months ended September 30, 2010 or September 30, 2009.

Net cash provided by financing activities was $213,500 for the nine months ended September 30, 2010 which represents sales of 2,135,000 Preferred shares. Net cash provided by financing activities for the nine months ended September 30, 2009 was $25,364 which represents advances from Positron Corporation, an affiliated company.

On September 30, 2010, the Company had an accumulated deficit of $5,236,329 and total stockholders’ deficit of $681,645. The Company is dependent on debt or equity financings to resolve the Company’s liquidity issues and allow it to continue to operate as a going concern.

Effects of Inflation

The Registrant believes that the relatively low rate of inflation over the past few years has not had a significant impact on the Registrant's financial position or operating results.

Forward Looking Statements

This report includes "Forward-Looking Statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be considered "forward looking statements". Such statements are included, among other places in this registration statement, in the sections entitled "Management's Discussion and Analysis or Plan of Operation," "Description of Business" and "Description of Property." Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, the Registrant can give no assurance that such expectations will prove to have been correct.

ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

The Company is not exposed to market risk related to interest rates or foreign currencies.

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ITEM 4. Controls And Procedures

Disclosure Controls and Procedures

Based upon an evaluation of the effectiveness of disclosure controls and procedures, our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") have concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act) were not effective to provide reasonable assurance that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified by the rules and forms of the SEC and is accumulated and communicated to management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure. Disclosure controls and procedures are defined as those controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Act is accumulated and communicated to the issuer’s management, including its principle executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. As reported in our Annual Report on Form 10-K for the year ended December 31, 2009, based upon an evaluation of the effectiveness of disclosure controls and procedures, the Company’s chief executive officer and chief financial officer determined that there are material weaknesses in our disclosure controls and procedures. It should be noted that the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how remote.

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The material weaknesses in our disclosure control procedures are as follows:

1. Lack of formal policies and procedures necessary to adequately review significant accounting transactions. The Company utilizes a third party independent contractor for the preparation of its financial statements. Although the financial statements and footnotes are reviewed by our management, we do not have a formal policy to review significant accounting transactions and the accounting treatment of such transactions. The third party independent contractor is not involved in the day to day operations of the Company and may not be provided information from management on a timely basis to allow for adequate reporting/consideration of certain transactions. In the case of the Company’s recent restatement of the investment in Positron securities, a periodic review (not less than quarterly) and discussion of significant transactions (i.e. increasing advances to a related party) may have led to more timely adoption of the proper method of accounting.

2. Audit Committee and Financial Expert. The Company does not have a formal audit committee with a financial expert, and thus the Company lacks the board oversight role within the financial reporting process.

We intend to initiate measures to remediate the identified material weaknesses including, but not necessarily limited to, the following:

Establishing a formal review process of significant accounting transactions that includes participation of the Chief Executive Officer, the Chief Financial Officer and the Company’s corporate legal counsel.

Form an Audit Committee that will establish policies and procedures that will provide the Board of Directors a formal review process that will among other things, assure that management controls and procedures are in place and being maintained consistently.

Changes in Internal Control over Financial Reporting

As reported in our Annual Report on Form 10-K for the year ended December 31, 2009, prior management was aware that there is a significant deficiency and a material weakness in our internal control over financial reporting and therefore has concluded that the Company’s internal controls over financial reporting were not effective as of December 31, 2009. The significant deficiency relates to a lack of segregation of duties due to the small number of employees involvement with general administrative and financial matters. The material weakness relates to a lack of formal policies and procedures necessary to adequately review significant accounting transactions.

There have not been any changes in the Company's internal control over financial reporting during the quarter ended September 30, 2010 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. In addition, the Company’s new management has concurred with the assessment of its previous chief executive officer and chief financial officer.

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PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings

None.

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

During July and August 2010, the Company issued an aggregate of 2,135,000 shares of preferred stock in exchange for aggregate proceeds of $213,500.

The sales of the securities identified above were made pursuant to privately negotiated transactions that did not involve a public offering of securities and, accordingly, we believe that these transactions were exempt from the registration requirements of the Securities Act pursuant to Section 4(2) of the Securities Act and Rule 506 of Regulation D. The agreements executed in connection with this sale contain representations to support the Company’s reasonable belief that the Investor had access to information concerning the Company’s operations and financial condition, the Investor acquired the securities for their own account and not with a view to the distribution thereof in the absence of an effective registration statement or an applicable exemption from registration, and that the Investor are sophisticated within the meaning of Section 4(2) of the Securities Act and are “accredited investors” (as defined by Rule 501 under the Securities Act). In addition, the issuances did not involve any public offering; the Company made no solicitation in connection with the sale other than communications with the Investor; the Company obtained representations from the Investor regarding their investment intent, experience and sophistication; and the Investor either received or had access to adequate information about the Company in order to make an informed investment decision. All of the foregoing securities are deemed restricted securities for purposes of the Securities Act.

ITEM 3. Defaults Upon Senior Securities

None.

ITEM 4. (Removed And Reserved)

ITEM 5. Other Information

None.

ITEM 6. Exhibits

(a) Exhibit Index

Exhibit		Description of the Exhibit

31.1		Chief Executive Officer Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Chief Financial Officer Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2		Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.

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SIGNATURES

Pursuant to the requirements of the Section 13 or 15(d) 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, in the City of Calgary, Alberta Canada on November 22, 2010.

	IMAGIN MOLECULAR CORPORATION

Date: November 22, 2010	/s/ Patrick J. Rooney
	Patrick J. Rooney, Chief Executive Officer
	(Principal Executive Officer)

Date: November 22, 2010	/s/ Gregory Pappas
	Gregory Pappas, Chief Financial Officer
	(Principal Accounting Officer)

EXHIBIT INDEX

Exhibit

31.1		Chief Executive Officer Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2		Chief Financial Officer Certification of Periodic Financial Report Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

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

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

IMAGIN MOLECULAR CORP 10-Q