10-Q 1 form_10q_12312013.htm MLPH FORM 10Q 12-31-2013

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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, 2013

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number 000-50156

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)

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

For the quarterly period ended December 31, 2013

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number 000-50156

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)

Yes x

No o

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 o

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 October 31, 2013.

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.

MOLECULAR PHARMACOLOGY (USA) LIMITED Form 10-Q ~~September~~December 3031, 2013

Table of Contents

PART I – FINANCIAL INFORMATION

Item 1.	Interim Consolidated Financial Statements	1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29

PART II – OTHER INFORMATION

Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3.	Defaults Upon Senior Securities	31
Item 4.	Mine Safety Disclosures	31
Item 5.	Other Information	31
Item 6.	Exhibits	32

SIGNATURES		32

iii

PART 1 - FINANCIAL INFORMATION

Item 1. Interim Consolidated Financial Statements.

The information in this report for the ~~three~~six months ended ~~September~~December 3031, 2013, is unaudited but includes all adjustments (consisting only of normal recurring accruals, unless otherwise indicated) which Molecular Pharmacology (USA) Limited ("Molecular USA" or the "Company") considers necessary for a fair ~~presentation~~ 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, in the Form ~~10K~~10-K filed with the Securities and Exchange Commission ("SEC") on August 13, 2013.

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

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

Molecular Pharmacology (USA) Limited
(A Development Stage Company)

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

~~Interim Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited)30 September 2013~~2

Molecular Pharmacology (USA) 2Limited(A Development Stage Company)

Interim Consolidated Balance Sheets
(Expressed in U.S. Dollars)
(Unaudited)

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

	As at 31 December 2013	As at 30 June 2013 (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

	As at30 September2013	As at30 June2013(Audited)
	$	$
Assets
Current
Cash and cash equivalents	7,150	7,046
Amounts receivable	5,423	5,070
	12,573	12,116
Equipment (Note 5)	129	140
	12,702	12,256
Liabilities
Current
Accounts payable and accrued liabilities (Note 6)	34,400	21,628
Due to related parties (Note 7)	2,112,229	2,044,501
	2,146,629	2,066,129
Stockholders’ deficiency
Capital stock (Note 8)
Authorized
300,000,000 common shares, par value $0.001
Issued and outstanding
30 September 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	(249,467)	(210,186)
Deficit, accumulated during the development stage	(2,102,721)	(2,061,948)
	(2,133,927)	(2,053,873)
	12,702	12,256

Nature and Continuance of Operations (Note 1)

~~Nature~~On ~~and~~behalf ~~Continuance~~ of ~~Operations~~the ~~(Note 1)~~ Board:

On /s/ ~~behalf~~Jeffrey ofEdwards DirectorJeffrey ~~the Board:~~Edwards

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

~~The accompanying notes are an integral part of these interim consolidated financial statements~~3

3Molecular Pharmacology (USA) Limited(A Development Stage Company)Interim Consolidated Statements of Operations(Expressed in U.S. Dollars)(Unaudited)

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

	For the period from the date of inception on 14 July 2004 to 31 December 2013	For the three month period ended 31 December 2013	For the three month period ended 31 December 2012	For the six month period ended 31 December 2013	For the six month period ended 31 December 2012
	$	$	$	$	$

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)

	For theperiod fromthe date ofinception on14 July 2004to 30 September2013	For thethree monthperiod ended30 September2013	For thethree monthperiod ended30 September2012
	$	$	$
Expenses
Advertising and promotion	23,739	-	-
Amortization (Note 5)	6,898	11	86
Analysis	33,947	-	-
Consulting (Note 7)	1,439,649	15,285	33,480
Office and miscellaneous (Note 7)	256,981	10,120	8,994
Professional fees	419,234	13,697	9,177
Public relations	3,656	-	-
Rent (Note 7)	27,759	-	-
Salaries and benefits	44,464	-	-
Transfer agent and filing fees	18,832	1,660	-
Travel	111,710	-	359
Net loss before other items	(2,386,869)	(40,773)	(52,096)
Other items
Export market development grants	69,629	-	-
Write-off of equipment	(823)	-	-
Interest income	2,322	-	-
Research and development tax refund	213,020	-	-
Net loss for the period	(2,102,721)	(40,773)	(52,096)
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 loss
Net loss for the period	(2,102,721)	(40,773)	(52,096)
Foreign currency translation adjustment	(249,467)	(39,281)	(30,934)
Total comprehensive loss for the period	(2,352,188)	(80,054)	(83,030)
Basic and diluted comprehensive loss per common share		(0.001)	(0.001)

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

~~The accompanying notes are an integral part of these interim consolidated financial statements.~~4

4Molecular Pharmacology (USA) Limited(A Development Stage Company)Interim Consolidated Statements of Cash Flows(Expressed in U.S. Dollars)(Unaudited)

Molecular Pharmacology (USA) Limited(A Development Stage Company)Interim Consolidated Statements of Cash Flows(Expressed in U.S. Dollars)(Unaudited)

	For the period from the date of inception on 14 July 2004 to 31 December 2013	For the three month period ended 31 December 2013	For the three month period ended 31 December 2012	For the six month period ended 31 December 2013	For the six month period ended 31 December 2012
	$	$	$	$	$

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

	For theperiod fromthe date of inception on14 July 2004to 30 September2013	For thethree monthperiod ended30 September2013	For thethree monthperiod ended30 September2012
	$	$	$
Cash flows used in operating activities
Net loss for the period	(2,102,721)	(40,773)	(52,096)
Adjustments to reconcile net loss to cash used by operating activities
Amortization	6,898	11	86
Write-down of intangible assets	1,278	-	-
Write-off of equipment	823	-	-
Changes in operating assets and liabilities
Increase in amounts receivable	(3,197)	(353)	(1,738)
Increase (decrease) in accounts payable and accrued liabilities	(13,017)	12,772	(952)
	(2,109,936)	(28,343)	(54,700)
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 financing activities
Common shares issued for cash	234,497	-	-
Increase in due to related parties	2,104,021	67,728	94,505
	2,338,518	67,728	94,505
Effect of exchange rate changes on cash	(249,467)	(39,281)	(30,934)
Increase in cash and cash equivalents	7,150	104	8,871
Cash and cash equivalents, beginning of period	-	7,046	2,572
Cash and cash equivalents, end of period	7,150	7,150	11,443

Supplemental Disclosures with Respect to Cash Flows (Note 12)

~~Supplemental Disclosures~~The ~~with~~accompanying ~~Respect~~notes toare ~~Cash~~an ~~Flows~~integral ~~(Note~~part of these ~~12)~~interim consolidated financial statements.

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

5Molecular Pharmacology (USA) Limited(A Development Stage Company)Interim Consolidated Statements of Changes in Stockholders’ Deficiency(Expressed in U.S. Dollars)(Unaudited)

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

	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)

	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		-		-		-		(40,773)		-		(40,773)
Cumulative translation adjustment		-		-		-		-		(39,281)		(39,281)
Balance at 30 September 2013		111,553,740		111,554		106,707		(2,102,721)		(249,467)		(2,133,927)

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

~~The accompanying notes are an integral part of these interim consolidated financial statements.~~6

6Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Interim Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited)31 December 2013

~~Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Interim Consolidated Financial Statements(Expressed in U~~1.S. Nature ~~Dollars)(Unaudited) 30~~and ~~September~~Continuance ~~2013~~of Operations

Molecular Pharmacology (USA) Limited (the "Company") was incorporated in the state of Nevada on 1 May 2002 under the name Blue Hawk Ventures, Inc. ~~Nature~~ 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 ~~Continuance~~outstanding share capital and altered its authorized share capital to 300,000,000 shares of ~~Operations~~common stock with a par value of $0.001 per share.

~~Molecular~~The ~~Pharmacology (USA) Limited (the "~~Company") ~~was~~is ~~incorporated~~a indevelopment stage ~~the~~enterprise, ~~state~~as ofdefined ~~Nevada~~in ~~on 1~~Accounting ~~May~~Standards ~~2002~~Codification ~~under~~ (the ~~name~~"Codification" ~~Blue Hawk Ventures, Inc. The Company changed its name to~~or ~~Molecular Pharmacology (USA~~"ASC") ~~Limited~~915-10, on"Development 29Stage ~~August 2005~~Entities". At The ~~the same time, the~~ Company ~~completed a~~is ~~four~~devoting ~~for~~all ~~one~~of ~~forward~~its ~~split~~present ofefforts ~~its~~to ~~issued~~securing and ~~outstanding~~establishing a ~~share~~new ~~capital~~business and ~~altered~~ its ~~authorized~~current ~~share~~planned ~~capital~~principle tooperations ~~300~~have not commenced. Accordingly,~~000,000~~ ~~shares~~no ~~of common stock with~~revenue ahas ~~par~~been ~~value~~derived ofduring ~~$0.001~~the ~~per~~organization ~~share~~period.

~~The~~Up ~~Company~~until isthe afall ~~development stage~~of ~~enterprise~~2005, the asCompany ~~defined~~was in ~~Accounting~~the ~~Standards~~business ~~Codification~~of ~~(the~~mineral ~~"Codification"~~exploration ~~or "ASC")~~and ~~915-10,~~development ~~"Development~~of ~~Stage~~a mineral ~~Entities"~~property. The Company allowed isthe ~~devoting~~option ~~all~~on of its ~~present~~mineral ~~efforts~~claim to ~~securing~~lapse ~~and~~in ~~establishing a~~the ~~new~~fall ~~business~~of ~~and its current planned principle operations have not commenced~~2005. ~~Accordingly, no revenue has been derived during the organization period.~~

UpOn ~~until~~13 October 2005, the Company ~~fall~~acquired ofthe ~~2005~~exclusive distribution rights to distribute, market, ~~the~~promote, ~~Company~~detail, advertise and sell certain "Licensed Products" through Molecular Pharmacology Pty. Ltd. (formerly Molecular Pharmacology Limited) ("MPLA") (Note 10). MPLA was inincorporated under the ~~business~~laws of ~~mineral~~Australia ~~exploration~~ and ~~development~~converted ofto a ~~mineral~~proprietary ~~property. The~~company ~~Company~~on 29 October 2009. ~~allowed~~MPLA ~~the~~is ~~option~~a onwholly ~~its~~owned ~~mineral~~subsidiary ~~claim~~company toof ~~lapse~~PharmaNet inGroup Limited ("PharmaNet"), an Australian company listed on the ~~fall~~Australian ofStock ~~2005~~Exchange.

OnSince ~~13 October 2005~~then, the Company ~~acquired~~has engaged ~~the~~in ~~exclusive~~organizational ~~distribution~~and ~~rights~~start toup ~~distribute~~activities, ~~market,~~including developing a new ~~promote,~~business ~~detail~~plan, ~~advertise~~recruiting ~~and~~new ~~sell~~directors, ~~certain~~scientific ~~"Licensed~~advisors ~~Products"~~and key ~~through~~scientists, ~~Molecular~~making ~~Pharmacology~~arrangements ~~Pty.~~for ~~Ltd.~~laboratory ~~(formerly~~facilities ~~Molecular~~and ~~Pharmacology Limited)~~office ~~("MPLA")~~space ~~(Note~~and raising ~~10)~~additional capital. The ~~MPLA~~Company ~~was~~has ~~incorporated~~generated ~~under~~no ~~the~~revenue ~~laws~~from ofproduct ~~Australia~~sales. The ~~and~~Company ~~converted~~does tonot ahave any ~~proprietary~~pharmaceutical ~~company~~products oncurrently 29available ~~October~~for ~~2009. MPLA~~sale, isand anone ~~wholly~~are ~~owned~~expected ~~subsidiary~~to be ~~company~~commercially ofavailable ~~PharmaNet~~for ~~Group~~some ~~Limited ("PharmaNet")~~time, anif ~~Australian~~at all. The Licensed Products must first undergo ~~company~~pre-clinical ~~listed~~and onhuman clinical testing in the ~~Australian~~United ~~Stock~~States ~~Exchange~~before they may be sold commercially.

~~Since~~The ~~then, the~~ Company ~~has~~completed a ~~engaged~~share inpurchase ~~organizational~~agreement ~~and~~on ~~start~~8 upMay ~~activities,~~2006 ~~including~~with ~~developing~~PharmaNet a(the ~~new~~"Purchase ~~business~~Agreement"). Under ~~plan,~~the ~~recruiting~~terms of ~~new~~the ~~directors,~~Purchase ~~scientific~~Agreement ~~advisors~~the ~~and~~Company ~~key scientists,~~acquired ~~making~~100% ~~arrangements~~of ~~for~~the ~~laboratory~~issued ~~facilities~~ and ~~office space and~~ ~~raising~~outstanding ~~additional~~shares ~~capital~~of MPLA. The Company, ~~has~~in ~~generated~~exchange nofor ~~revenue~~100% ~~from~~of ~~product~~the ~~sales. The~~issued ~~Company~~and ~~does~~outstanding ~~not~~shares ~~have~~of ~~any~~MPLA, ~~pharmaceutical~~issued ~~products~~PharmaNet ~~currently~~an ~~available~~aggregate ~~for~~total ~~sale~~of 88,000,000 ~~and~~common ~~none~~shares ~~are~~of ~~expected~~the toCompany beon ~~commercially~~the ~~available~~closing ~~for~~of ~~some~~the ~~time,~~transaction. The ifissuance atof ~~all. The~~88,000,000 ~~Licensed~~common ~~Products~~shares ~~must~~of ~~first~~the ~~undergo pre-clinical~~Company ~~and~~constituted ~~human~~an acquisition ~~clinical~~of ~~testing~~control inof the ~~United~~Company ~~States~~by ~~before~~PharmaNet. The ~~they~~transaction ~~may~~has bebeen accounted for ~~sold~~as ~~commercially~~a recapitalization of the Company (Note 2).

~~The~~MPLA ~~Company~~was ~~completed~~incorporated ~~a share purchase agreement~~ on ~~8 May 2006 with PharmaNet (the "Purchase~~14 ~~Agreement"). Under~~July ~~the~~2004 ~~terms of~~under the ~~Purchase~~laws ~~Agreement the Company acquired 100%~~ of ~~the issued and outstanding shares of MPLA~~Australia. ~~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~~accompanying ofinterim ~~88,000,000~~consolidated ~~common~~financial ~~shares~~statements ofare the ~~Company constituted an~~ ~~acquisition~~historical offinancial ~~control~~statements of ~~the Company by PharmaNet~~MPLA. ~~The transaction has been accounted for as a recapitalization of the Company (Note 2).~~

~~MPLA~~On ~~was~~15 ~~incorporated~~March on2007, 14the Board ~~July~~of ~~2004~~Directors ~~under~~approved a change in the ~~laws~~Company’s offinancial ~~Australia.~~ year end from 31 October to 30 June. The ~~accompanying~~decision ~~interim~~to ~~consolidated~~change the fiscal year end was intended to assist the financial ~~statements~~community ~~are~~in its analysis of the business and in ~~historical~~comparing the Company’s financial ~~statements~~results ofto others in the industry, and to synchronize the Company’s fiscal reporting with MPLA.

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.7

7Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Interim Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited)31 December 2013

~~Molecular~~The ~~Pharmacology~~Company’s ~~(USA)~~interim ~~Limited(A~~consolidated ~~Development~~financial ~~Stage~~statements ~~Company)Notes~~as at 31 December to2013 ~~Interim~~and ~~Consolidated~~for ~~Financial~~the ~~Statements(Expressed~~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 Uthe normal course of business.S. The ~~Dollars)~~Company has a net loss of $63,327 for the six month period ended 31 December 2013 (~~Unaudited~~31 December 2012 – $100,993; cumulative - $2,125,275) and has working capital deficit of $11,020 at 31 December 2013 (30 ~~September~~June 2013 – $9,512).

~~The~~ 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 ~~interim~~capital ~~consolidated~~resources ~~financial~~should ~~statements~~be asadequate atto ~~30 September~~continue ~~2013~~operating and maintaining its business strategy for the ~~three~~next twelve month period ~~then~~from ~~ended~~the date ~~have~~of ~~been~~these ~~prepared~~interim onconsolidated financial statements. However, if the Company is unable to araise ~~going~~additional ~~concern~~capital ~~basis~~in the near future, ~~which~~due ~~contemplates~~to the ~~realization~~Company’s liquidity ofproblems, ~~assets~~management ~~and~~expects ~~settlement~~that the Company will need to curtail ofoperations, ~~liabilities~~liquidate ~~and~~assets, ~~commitments~~seek inadditional ~~the~~capital ~~normal~~on ~~course~~less offavorable ~~business~~terms and/or pursue other remedial measures. ~~The~~ ~~Company~~Management ~~has~~is aware, ain ~~net~~making ~~loss~~its assessment, of ~~$40,773~~material uncertainties related to events or ~~for~~conditions that may cast significant doubt upon the ~~three~~Company’s ~~month~~ability ~~period~~to continue ~~ended~~as 30a ~~September~~going ~~2013~~concern. ~~(30~~These ~~September~~interim ~~2012~~consolidated –financial ~~$52,096;~~statements ~~cumulative~~do -not ~~$2,102,721)~~include any adjustments related to the recoverability and classification ~~has~~of ~~working~~assets ~~capital~~or ~~deficit~~the amounts and classification of ~~$21,827~~liabilities atthat 30might ~~September~~be ~~2013~~necessary ~~(30~~should ~~June~~the ~~2013~~Company –be ~~$9,512)~~unable to continue as a going concern.

~~Management~~At ~~cannot~~31 ~~provide assurance~~December ~~that~~2013, the Company ~~will~~has ~~ultimately~~suffered ~~achieve~~losses ~~profitable~~from ~~operations~~development ~~or become~~stage ~~cash~~activities ~~flow~~to ~~positive, or raise additional debt and/or equity capital~~date. ~~Management~~Although ~~believes~~management ~~that~~is ~~the~~currently ~~Company’s~~attempting ~~capital resources should be adequate~~ to ~~continue~~implement ~~operating and maintaining~~ its business ~~strategy~~plan, ~~for~~and ~~the~~is ~~next~~seeking ~~twelve~~additional ~~month~~sources ~~period from the~~of ~~date~~equity ofor ~~these~~debt ~~interim consolidated financial statements. However~~financing, ifthere ~~the Company~~ is ~~unable~~no ~~to raise~~assurance ~~additional~~these ~~capital~~activities inwill ~~the~~be successful. These ~~near~~factors ~~future,~~raise substantial ~~due~~doubt toabout the ~~Company’s liquidity~~ability ~~problems,~~of ~~management expects that~~ the Company ~~will need~~ to ~~curtail operations,~~continue ~~liquidate~~as ~~assets,~~a ~~seek additional capital on less favorable terms~~going ~~and/or pursue other remedial measures~~concern. ~~These~~ The 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 beresult ~~necessary~~from ~~should~~ the ~~Company~~outcome beof ~~unable~~this ~~to continue as a going concern~~uncertainty.

~~At 30 September 2013, the Company has suffered losses from development stage activities to date~~2. ~~Although management is currently~~ ~~attempting~~Significant toAccounting 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.Policies

The ~~2. Significant~~following ~~Accounting~~is ~~Policies~~a summary of significant accounting policies used in the preparation of these interim consolidated financial statements.

~~The~~ ~~following~~Basis ~~is a summary~~ of ~~significant accounting policies used in the~~ ~~preparation of these interim consolidated financial statements.~~presentation

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

~~These~~Principles ~~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.~~ consolidation

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

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

Cash and cash equivalents include highly liquid investments with original maturities of three months or less.

~~Cash and cash equivalents include highly liquid investments with original maturities of three months or less.~~8

8Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Interim Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited)31 December 2013

~~Molecular Pharmacology (USA) Limited(A Development Stage Company)~~ Equipment

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

~~Equipment~~Segments of isan ~~recorded~~enterprise ~~at cost~~ and ~~amortization~~related ~~is provided over its estimated economic life at the rate of 15% declining balance.~~ information

~~Segments~~ASC 280, "Segment Reporting" establishes guidance for the way that public companies report information about operating segments in annual financial statements and requires reporting of selected information about operating ansegments ~~enterprise~~in interim financial statements issued to the public. It also establishes standards for disclosures regarding products and ~~related~~services, geographic areas and major customers. ASC 280 defines operating segments as components of 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.

~~ASC~~Foreign ~~280, "Segment Reporting" establishes guidance for the way~~currency that public companies report information about operating segments in annual financial statements and requires reporting of selected information about operating segments in interim financial statements issued to the public. It also establishes standards for disclosures regarding products and services, geographic areas and major customers. ASC 280 defines operating segments as components of 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. translation

~~Foreign~~The Company’s functional and reporting currency is U.S. ~~translation~~dollars. The interim consolidated financial statements of the Company are 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 prevailing at the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the period. Translation adjustments resulting from this process are charged or credited to other comprehensive income. The Company has not, to the date of these interim consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

~~The~~Income Company’s functional and reporting currency is U.S. dollars. The interim consolidated financial statements of the Company are 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 prevailing at the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the period. Translation adjustments resulting from this process are charged or credited to other comprehensive income. The Company has not, to the date of these interim consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.taxes

Deferred income taxes are reported for timing differences between items of income or expense reported in the interim consolidated financial statements and those reported for income tax purposes in accordance with ASC 740, "Income Taxes", which requires the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and for tax losses and credit carry-forwards. 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.

9Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Interim Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited)31 December 2013

Basic and diluted net income (loss) per share

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~~ gives effect to all potentially dilutive common shares outstanding during the ~~period~~ period using the treasury stock method and convertible preferred stock using ~~the~~ the if-converted method. In ~~computing~~ 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~~31 December 2013, the Company had no outstanding stock options or warrants.

Comprehensive income (loss)

ASC 220, "Comprehensive Income", establishes standards for the reporting and disclosure of comprehensive income (loss) and its components in the financial statements. As at 3031 ~~September~~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 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~~ 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 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".

Comparative figures

Certain comparative figures have been adjusted to conform to the current period’s presentation.

Molecular Pharmacology (USA) Limited(A Development Stage Company) Notes to Interim Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited) 3031 ~~September~~December 2013

3. Changes in Accounting Policies

Effective 1 July 2013, the Company adopted ASU 2013-05, "Foreign Currency Matters (Topic 830) – Parent’s Accounting for the ~~Cumulative~~ 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.

Effective 1 July 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 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 1 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~~ 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~~ interim consolidated financial statements.

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

~~Certain~~ ~~new standards, interpretations, amendments and improvements to existing standards were issued by FASB~~4. Recent ~~The~~Accounting 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 30 September 2013 are as follows:Pronouncements

InCertain ~~July~~new ~~2013~~standards, ~~the FASB issued ASU 2013-11~~interpretations, ~~"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~~and ~~that~~improvements ~~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~~existing ~~similar~~standards ~~tax~~were ~~loss,~~issued orby ~~a tax credit carryforward except as follows~~FASB. ToThe ~~the~~new ~~extent a net operating loss carryforward~~standards, aamendments ~~similar~~to ~~tax~~standards ~~loss, or a tax credit~~and ~~carryforward~~interpretations isthat ~~not~~have ~~available~~been atissued ~~the~~and ~~reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes~~ that ~~would~~are ~~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~~Company tobut ~~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~~during ~~fiscal years,~~the ~~and~~six ~~interim~~month ~~periods~~period ~~within~~ended ~~those~~31 ~~years, beginning after 15~~ December 2013. ~~The~~are ~~amendments should be applied prospectively to all unrecognized tax~~as 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.follows:

5In July 2013, 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". ~~Equipment~~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.

			Net Book Value
	Cost	Accumulated amortization	As at30 September2013	As at30 June2013(Audited)
	$	$	$	$
Office equipment	864	735	129	140

5. Equipment

During the three month period ended 30 September 2013, the total additions to equipment were $Nil (30 June 2013 – $Nil).

			Net Book Value
	Cost	Accumulated amortization	As at 31 December 2013	As at 30 June 2013 (Audited)
	$	$	$	$

Office equipment	864	746	118	140

6. During the six month period ~~Accounts~~ended ~~Payable~~31 ~~and~~December ~~Accrued~~2013, ~~Liabilities~~the total additions to equipment were $Nil (31 December 2012 – $Nil).

6. Accounts ~~payable~~Payable and ~~accrued~~Accrued ~~liabilities are non-interest bearing, unsecured and have settlement dates within one year.~~Liabilities

~~7. Due~~Accounts topayable ~~Related~~and ~~Parties~~accrued liabilities are non-interest bearing, unsecured and ~~Related~~have ~~Party~~settlement ~~Transactions~~dates within one year.

As7. Due ~~at 30 September 2013, the amount due~~ to ~~related~~Related ~~parties includes~~Parties ~~$1,000 payable to a director of the Company (30 June 2013 – $1,000). This balance is non-interest bearing, unsecured~~ and ~~has~~Related noParty ~~fixed terms of repayment.~~Transactions

12 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.

~~Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Interim Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited) 30 September 2013~~12

Molecular Pharmacology As(USA) atLimited(A 30Development ~~September 2013, the amount due to related parties~~Stage ~~includes~~Company)Notes ~~$27,119 payable~~ to aInterim ~~company~~Consolidated ~~owned~~Financial ~~by a director of the Company or an officer of PharmaNet~~ Statements(30Expressed ~~June~~in ~~2013~~U.S. ~~– $18,009~~Dollars)~~. This~~(Unaudited)31 ~~balance~~December ~~is non-interest bearing, unsecured and has no fixed terms of repayment.~~2013

As at 3031 ~~September~~December 2013, the amount due to related parties ~~includes~~ includes $534,~~777~~533 payable to a company owned by a director of the Company or an ~~officer~~ officer of PharmaNet (30 June 2013 – $218,~~772~~009). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

As at 3031 ~~September~~December 2013, the amount due to related parties ~~includes~~ includes $74,~~771~~885 payable to a company owned by a director of the Company or an officer of PharmaNet (30 June 2013 -– $152,~~252~~772). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

As at 3031 ~~September~~December 2013, the amount due to related parties ~~includes~~ includes $27,~~070,562~~427 payable to a company owned by a director of the Company or an officer of PharmaNet (30 June 2013 –- $215,~~007,468~~252). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

~~During~~As ~~the~~at ~~three months~~31 ~~period~~December ~~ended 30 September~~ 2013, athe ~~director~~amount ofdue ~~the~~to ~~Company~~related orparties ~~an officer~~includes ~~of PharmaNet~~$2,004,134 ~~and~~payable ~~their~~to ~~controlled~~PharmaNet ~~entities were paid or accrued consulting fees of $8,356~~ (30 ~~September~~June ~~2012~~2013 – $102,~~226~~007,468). This ~~cumulative~~balance is non-interest ~~$904~~bearing,~~534)~~ unsecured and has no fixed terms of repayment.

During the ~~three~~ six months period ended 3031 ~~September~~December 2013, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued ~~administrative~~ consulting fees of $916,~~489~~494 (~~30 September~~31 December 2012 – $718,~~540~~015, cumulative - $77912,~~783~~673) ~~by the Company, which have been recorded in office and miscellaneous expense~~.

During the ~~three~~six months period ended 3031 ~~September~~December 2013, a director of of the Company or an officer of PharmaNet, and their controlled entities were ~~paid~~ paid or accrued ~~consulting~~administrative fees of $614,~~929~~249 (3031 December ~~September~~ 2012 -– $2113,~~435~~558, cumulative - $~~118~~82,~~590~~543) by the Company, which have been recorded in office and miscellaneous expense.

During the ~~three~~six months period ended 3031 ~~September~~December 2013, a director of of the Company or an officer of PharmaNet, and their controlled entities were ~~paid~~ paid or accrued consulting fees of $~~Nil~~6,973 (3031 ~~September~~December 2012 –- $~~Nil~~44, 285, cumulative – - $41118,~~928~~634) by the Company.

During the ~~three~~six months period ended 3031 ~~September~~December 2013, a director of of the Company or an officer of PharmaNet, and their controlled entities were ~~paid~~ paid or accrued ~~office~~consulting ~~and~~fees ~~miscellaneous expenses~~ of $Nil (~~30 September~~31 December 2012 – $Nil, cumulative – $8041,~~468~~928) by the Company.

During the ~~three~~six months period ended 3031 ~~September~~December 2013, a director of of the Company or an officer of PharmaNet, and their controlled entities were ~~paid~~ paid or accrued ~~rental~~office ~~fees~~and miscellaneous expenses of $Nil (3031 ~~September~~December 2012 – $Nil, cumulative – $1280,~~987~~468) by the Company.

During the ~~three~~six months period ended 3031 ~~September~~December 2013, a director of of the Company or an officer of PharmaNet, and their controlled entities were ~~paid~~ paid or accrued ~~office~~rental ~~and~~fees ~~miscellaneous expenses~~ of $Nil (3031 ~~September~~December 2012 - – $Nil, cumulative – $412,~~481~~987) by the Company.

During the ~~three~~six months period ended 3031 ~~September~~December 2013, a director of of the Company or an officer of PharmaNet, and their controlled entities were ~~paid~~ paid or accrued ~~consulting~~office ~~fees~~and miscellaneous expenses of $Nil (3031 ~~September~~December 2012 - $Nil, cumulative - – $84,~~473~~481) by the Company.

13 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 (31 December 2012 - $Nil, cumulative - $8,473) by the Company.

~~Transactions comprising the amount due to PharmaNet are as follows:~~13

	For thethree monthperiodended30 September2013	For theyearended30 June2013(Audited)
	$	$
Opening balance, beginning of period	2,007,468	2,036,760
Funds transferred to the Company by PharmaNet	24,754	204,583
Expenses paid by PharmaNet on behalf of the Company	236	1,004
Foreign currency translation adjustment	38,104	(234,879)
Balance, end of period	2,070,562	2,007,468

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

~~The~~Transactions ~~weighted~~comprising ~~average~~the amount due to PharmaNet ~~for~~are ~~the three month~~as ~~period ended 30 September 2013 was $2,012,834 (30 June 2013 - $2,160,632).~~follows:

8. Capital Stock

	For the six month period ended 31 December 2013	For the year ended 30 June 2013 (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

~~Authorized~~The weighted average amount due to PharmaNet for the six month period ended 31 December 2013 was $2,033,690 (30 June 2013 - $2,160,632).

~~The total authorized capital is 300,000,000 common shares with a par value of $0~~8.~~001~~ Capital ~~per common share.~~Stock

~~Issued and outstanding~~Authorized

The total ~~issued~~authorized ~~and outstanding~~ capital ~~stock~~ is ~~111~~ 300,~~553~~000,~~740~~000 common shares with a par value of $0.001 per common share.

~~9. Segmented~~ ~~Information~~Issued and outstanding

~~Details~~The ontotal aissued ~~geographic~~and ~~basis~~outstanding ascapital atstock ~~and~~is ~~for the~~111,553,740 ~~three~~common ~~month~~shares ~~period~~with ~~ended~~a 30par ~~September~~value ~~2013~~of ~~are~~$0.001 asper ~~follows:~~common share.

	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)

9. Segmented Information

14 Details on a geographic basis as at and for the six month period ended 31 December 2013 are as follows:

Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Interim Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited) 30 September 2013

	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)

~~Details on a geographic basis as at and for the year ended 30 June 2013 are as follows:~~14

	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)

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

Details on a geographic basis as at and for the ~~three~~ ~~month period~~ year ended 30 ~~September~~June ~~2012~~2013 are as follows:

	Australia	U.S.A.	Total
	$	$	$
Current assets	1812,~~291~~116	-	1812,~~291~~116
Long-term assets	~~1,073~~140	-	~~1,073~~140
Loss for the period	(42,028)	(10,068)	(52,096)
Loss for the year	(162,485)	(47,415)	(209,900)

~~10. Distribution~~ Details ~~Agreement~~on a geographic basis as at and for the six month period ended 31 December 2012 are as follows:

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.

	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)

1510. Distribution Agreement

~~Molecular~~ The Company ~~Pharmacology~~has ~~(USA)~~the ~~Limited(A~~exclusive ~~Development~~distribution ~~Stage~~rights, ~~Company)Notes~~ through MPLA, to ~~Interim~~distribute, market, ~~Consolidated~~promote, ~~Financial~~detail, ~~Statements(Expressed~~advertise and sell certain Licensed Products, with metallo-polypeptide analgesic as an active ingredient, in ~~U.S.~~the ~~Dollars~~United States (excluding its territories and possessions) (~~Unaudited~~Note 1). If, and when necessary, the Company will 30obtain ~~September~~all ~~2013~~necessary regulatory approvals for the Licensed Products and incorporate the Licensed Products in the United States.

~~11. Income Taxes~~15

~~Income~~Molecular ~~tax expense differs~~Pharmacology ~~from~~(USA) ~~the~~Limited(A ~~amount~~Development ~~that would result from applying the federal income tax rate to~~Stage ~~earnings before income taxes. The differences result from the following items:~~Company)
Notes to Interim Consolidated Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
31 December 2013

	For the three month period ended30 September2013	For the three month period ended30 September 2012
	$	$
Loss before income taxes	(40,773)	(52,096)
Federal income tax rates	35.0%	34.0%
Income tax recovery based on the above rates	(14,271)	(17,713)
Increase (decrease) due to:
Difference between U.S. and foreign tax rates	1,271	1,681
Change in valuation allowance	20,671	22,018
Foreign exchange and other	(7,671)	(5,986)
Income tax expense	-	-

11. Income Taxes

~~The~~Income ~~composition~~tax ofexpense differs from the ~~Company’s~~amount ~~deferred~~that ~~tax~~would ~~assets~~result asfrom applying atthe 30federal ~~September 2013~~income ~~and~~tax 30rate ~~June~~to ~~2013~~earnings ~~are~~before asincome ~~follows~~taxes. The differences result from the following items:

	As at30 September2013	As at30 June2013(Audited)
	For the six month period ended 31 December 2013	For the six month period ended 31 December 2012
	$	$
Net income tax operating loss carry-forward	2,191,620	2,125,274
Loss before income taxes	(63,327)	(100,993)
Deferred tax assets	698,460	677,789
Federal income tax rates	35.0%	34.0%
Less: Valuation allowance	(698,460)	(677,789)
Income tax recovery based on the above rates	(22,164)	(34,338)
Net deferred tax asset	-	-
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	-	-

16 The composition of the Company’s deferred tax assets as at 31 December 2013 and 30 June 2013 are as follows:

Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Interim Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited) 30 September 2013

	As at 31 December 2013	As at 30 June 2013 (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	-	-

The Company has non-capital loss carry-forwards of approximately $2,191,620 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:16

	$
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	15,357
No expiry	1,372,133
	2,191,620

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

AThe ~~full~~Company ~~valuation allowance~~ has ~~been~~non-capital ~~recorded~~loss ~~against~~carry-forwards ~~the~~of ~~potential~~approximately ~~deferred~~$2,152,933 that ~~tax~~may ~~assets~~be ~~associated~~available ~~with~~for ~~all~~tax purposes. ~~the~~The loss carry-forwards asare ~~their~~all ~~utilization~~in isrespect ~~not~~to ~~considered~~U.S. ~~more~~and ~~likely than~~Australian ~~not~~operations atand ~~this~~expire ~~time.~~as follows:

12. Supplemental Disclosures with Respect to Cash Flows

	$

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

	For theperiod fromthe date ofinception on14 July 2004to 30 September2013	For the threemonth periodended30 September2013	For the threemonth periodended30 September2012
	$	$	$
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	-	-

A full valuation allowance has been recorded against the potential deferred tax assets associated with all the loss carry-forwards as their utilization is not considered more likely than not at this time.

1712. Supplemental Disclosures with Respect to Cash Flows

Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Interim Consolidated Financial Statements(Expressed in U.S. Dollars)(Unaudited) 30 September 2013

	For the period from the date of inception on 14 July 2004 to 31 December 2013	For the three month period ended 31 December 2013	For the three month period ended 31 December 2012	For the six month period ended 31 December 2013	For the six month period ended 31 December 2012
	$	$	$	$	$

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	-	-	-	-

~~13. Financial Instruments~~17

AMolecular ~~fair value hierarchy was established that prioritizes the inputs used~~Pharmacology to(USA) ~~measure~~Limited(A ~~fair~~Development ~~value. The~~Stage ~~hierarchy~~Company)Notes ~~gives the highest priority~~ to ~~unadjusted~~Interim ~~quoted~~Consolidated ~~prices~~Financial Statements(Expressed in ~~active markets~~U.S. ~~for identical assets or liabilities~~ Dollars)(~~Level 1 measurement~~Unaudited)31 ~~and~~December ~~the lowest priority to unobservable inputs (Level 3 measurements).~~2013

~~The~~13. Financial ~~fair values of the financial instruments were determined using the following input levels and valuation techniques:~~ Instruments

~~Level~~A ~~1: classification~~fair isvalue hierarchy was ~~applied~~established tothat ~~any~~prioritizes ~~asset~~the orinputs ~~liability~~used ~~that~~to ~~has~~measure afair ~~readily~~value. The ~~available~~hierarchy ~~quoted~~gives ~~market~~the highest priority ~~price~~to ~~from~~unadjusted anquoted prices in active ~~market~~markets ~~where~~for ~~there~~identical isassets ~~significant~~or liabilities ~~transparency~~(Level in1 measurement) and the lowest priority to unobservable ~~executed/quoted~~inputs ~~price.~~(Level 3 measurements).

~~Level~~The ~~2: classification~~fair ~~is applied~~values toof ~~assets and liabilities that have evaluated prices where~~ the ~~data~~ ~~inputs~~financial toinstruments ~~these~~were ~~valuations~~determined ~~are~~using ~~observable~~the ~~either~~following ~~directly~~input orlevels ~~indirectly, but do~~and ~~not~~valuation ~~represent~~techniques: ~~quoted market prices from an active market.~~

Level 31: classification is applied to ~~assets~~any ~~and~~asset or ~~liabilities~~liability ~~when~~that ~~prices~~has ~~are~~a ~~not~~readily ~~derived~~available ~~from~~quoted ~~existing~~ market ~~data~~price ~~and~~from ~~requires~~an usactive market towhere ~~develop~~there ~~our~~is ~~own~~significant ~~assumptions~~transparency ~~about~~in ~~how market participants would price~~ the ~~asset~~executed/quoted ~~or liability~~price.

~~The carrying~~Level ~~values~~2: classification ofis ~~cash~~applied ~~and~~to ~~cash~~assets ~~equivalents,~~and liabilities ~~amounts~~that ~~receivable~~have ~~and~~evaluated ~~accounts payable~~prices ~~approximate~~where ~~fair~~the ~~value~~data ~~due~~inputs to ~~the~~these valuations ~~short~~are ~~term~~observable ~~maturity~~either ofdirectly ~~these~~or indirectly, but do not represent ~~financial~~quoted ~~instruments~~market prices from an active market.

~~Credit~~Level ~~Risk~~3: classification is applied to assets and liabilities when prices are not derived from existing market data and requires us to develop our own assumptions about how market participants would price the asset or liability.

~~Financial instruments~~The ~~that~~carrying ~~potentially~~values ~~subject the Company to credit risk consists~~ of ~~cash~~ cash and cash equivalents., ~~The~~amounts ~~Company~~receivable ~~deposits cash~~ and ~~cash~~accounts ~~equivalents~~payable ~~with~~approximate fair ~~high~~value ~~credit~~due ~~quality~~to ~~financial~~the ~~institutions~~short asterm ~~determined~~maturity byof ~~rating~~these ~~agencies. As~~financial ~~a result, credit risk is considered insignificant~~instruments.

~~Currency~~Credit Risk

~~The~~Financial instruments that ~~Company’s~~potentially ~~subsidiary~~subject isthe ~~located~~Company into ~~Australia.~~credit Asrisk aconsists ~~result,~~of acash ~~significant~~and cash ~~portion~~equivalents. ofThe ~~the~~ Company’s ~~assets,~~deposits ~~liabilities~~cash and ~~expenses~~cash ~~were~~equivalents with high credit ~~denominated~~quality infinancial ~~the~~institutions ~~Australian~~as ~~dollar~~determined ~~and~~by ~~were~~rating ~~therefore~~agencies. As ~~subject~~a toresult, ~~fluctuation in~~credit ~~exchange~~risk ~~rates~~is considered insignificant.

~~The~~Currency Company’s objective in managing its foreign currency risk is to minimize its net exposures to foreign currency cash flows by holding most of its cash and cash equivalents in Australian dollars. The Company monitors and forecasts the values of net foreign currency cash flow and balance sheet exposures and from time to time could authorize the use of derivative financial instruments such as forward foreign exchange contracts to economically hedge a portion of foreign currency fluctuations.Risk

IfThe Company’s ~~the~~subsidiary ~~Australian~~is ~~dollar~~located ~~had~~in ~~weakened~~Australia. ~~(strengthened)~~As ~~against~~a ~~the U.S. dollar~~result, ~~with all~~a ~~other~~significant ~~variables~~portion ~~held~~of ~~constant~~the Company’s assets, byliabilities ~~100~~and ~~basis~~expenses ~~points~~were ~~(1%)~~denominated atin ~~period end,~~ the ~~impact~~Australian ondollar ~~net loss~~ and ~~other~~were ~~comprehensive~~therefore ~~loss~~subject ~~would~~to ~~have~~fluctuation ~~been~~in ~~$20,987 lower~~exchange ~~($20,987 higher)~~rates.

The Company’s objective ~~has~~in ~~not,~~managing its foreign currency risk is to ~~the~~minimize its net ~~date~~exposures to foreign currency cash flows by holding most of ~~these~~its ~~interim~~cash ~~consolidated~~and ~~financial~~cash equivalents ~~statements,~~in ~~entered~~Australian ~~into~~dollars. The Company monitors and forecasts the values of net foreign currency cash flow and balance sheet exposures and from time to time could authorize the use of derivative financial instruments such as forward foreign exchange contracts to ~~offset~~economically ~~the~~hedge ~~impact~~a portion of foreign currency fluctuations.

18 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).

~~Molecular~~The ~~Pharmacology (USA)~~Company ~~Limited(A~~has ~~Development~~not, ~~Stage~~to ~~Company)Notes~~the todate ~~Interim~~of ~~Consolidated~~these ~~Financial~~interim ~~Statements(Expressed in~~consolidated ~~U.S.~~financial ~~Dollars)(Unaudited)~~statements, entered into 30derivative ~~September~~instruments ~~2013~~to offset the impact of foreign currency fluctuations.

~~Interest Rate Risk~~18

~~The Company~~Molecular ~~has non-interest paying cash balances and no interest-bearing~~Pharmacology ~~debt. It~~(USA) isLimited(A ~~management’s~~Development ~~opinion that the~~ Stage Company)Notes isto ~~not~~Interim ~~exposed~~Consolidated ~~to significant~~Financial ~~interest~~Statements(Expressed ~~risk~~in ~~arising~~U.S. ~~from~~Dollars)(Unaudited)31 ~~these~~December ~~financial instruments.~~ 2013

~~Liquidity~~ Interest Rate Risk

~~Liquidity risk~~The isCompany ~~the~~has ~~risk that an entity will encounter difficulty in meeting~~non-interest ~~obligations~~paying ~~associated~~cash ~~with~~balances ~~its~~and ~~financial~~no ~~liabilities~~interest-bearing debt. ~~The~~It ~~Company~~ is ~~reliant upon PharmaNet as~~ ~~its~~management’s ~~sole~~opinion ~~source~~that ofthe ~~cash. The~~ Company ~~has~~is ~~received~~not ~~financing~~exposed ~~from~~to ~~PharmaNet in the past; however, there is no~~significant ~~assurance~~interest ~~that~~risk itarising ~~will~~from bethese ~~able~~financial ~~to do so in the future~~instruments.

~~14. Commitment~~ Liquidity Risk

OnLiquidity 21risk ~~June~~is ~~2013,~~ the ~~Company~~risk that ~~executed~~ an ~~agreement~~entity ~~with~~will aencounter ~~New~~difficulty in meeting obligations associated with ~~York-based~~its ~~company,~~financial ~~Dermatology~~liabilities. The Company ~~Development~~is ~~Corporation,~~reliant toupon ~~develop~~PharmaNet ~~and~~as ~~market a~~its ~~range~~sole source of ~~therapeutic,~~cash. The ~~cosmetic~~Company ~~and~~has ~~cosmecutical~~received ~~products~~financing ~~based~~from PharmaNet onin the ~~ThermaLIFE®~~ ~~product~~past; ~~range~~however, ~~and~~there ~~its~~is ~~active~~no ~~ingredient~~assurance that it will be able to do so in the ~~United States~~future.

~~15.~~ ~~Subsequent Event~~14. Commitment

~~There~~On ~~are~~21 noJune ~~reportable events~~2013, ~~for~~ the ~~period~~Company executed ~~from~~an ~~the~~agreement ~~three~~with ~~month~~a ~~period~~New ~~ended~~York-based 30company, ~~September~~Dermatology ~~2013~~Development Corporation, to develop and market a range of therapeutic, cosmetic and cosmecutical ~~the~~products ~~date~~based ~~that~~on the ~~interim~~ThermaLIFE® ~~consolidated~~product ~~financial~~range ~~statements~~and ~~were~~its ~~available~~active toingredient bein ~~issued~~the United States.

1915. Subsequent Event

~~THE~~There ~~FOLLOWING~~are ~~ANALYSIS~~no ~~OF THE RESULTS OF~~reportable ~~OPERATIONS~~events ~~AND~~for ~~FINANCIAL~~the ~~CONDITION~~period OFfrom ~~MOLECULAR~~the ~~USA~~six ~~FOR~~month ~~THE~~period ~~FIRST~~ended ~~QUARTER~~31 ~~PERIOD ENDED~~December ~~SEPTEMBER 30,~~ 2013 ~~AND~~to ~~SHOULD BE READ IN CONJUNCTION WITH MOLECULAR~~the ~~USA’S~~date ~~INTERIM~~that ~~CONSOLIDATED~~the ~~FINANCIAL~~interim ~~STATEMENTS,~~consolidated ~~INCLUDING~~financial ~~THE~~statements ~~NOTES THERETO~~were ~~CONTAINED~~available ~~ELSEWHERE~~to ~~IN THE FORM 10-Q~~be issued.

~~Our interim consolidated financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.~~19

OverviewItem 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

WeTHE ~~were~~FOLLOWING ~~incorporated~~ANALYSIS inOF ~~the~~THE ~~state~~RESULTS ofOF OPERATIONS ~~Nevada~~AND onFINANCIAL CONDITION OF MOLECULAR USA FOR THE SECOND QUARTER PERIOD ~~May~~ENDED 1DECEMBER 31, ~~2002.~~2013 UpAND ~~until~~SHOULD ~~the~~BE ~~fall~~READ ofIN ~~2005,~~CONJUNCTION ~~Molecular~~WITH MOLECULAR USA’S ~~was~~INTERIM inCONSOLIDATED ~~the~~FINANCIAL ~~business~~STATEMENTS, ~~of mineral~~INCLUDING ~~exploration~~THE ~~and~~NOTES THERETO ~~development~~CONTAINED ofELSEWHERE aIN ~~mineral~~THE ~~property.~~FORM 10-Q.

~~On October~~Our ~~13,~~interim ~~2005,~~consolidated ~~Molecular~~financial ~~USA~~statements ~~entered into a distribution and supply~~are ~~agreement~~stated ~~with~~in ~~Molecular~~United ~~Pharmacology~~States ~~Pty.~~Dollars ~~Ltd.~~and ~~(formerly~~are ~~Molecular Pharmacology~~prepared ~~Limited)~~in ~~("MPLA"). MPLA~~accordance iswith ~~incorporated under the laws of~~United ~~Australia~~States ~~and~~Generally atAccepted ~~the~~Accounting ~~time~~Principles ~~was a wholly owned subsidiary company of PharmaNet Group Limited~~ ("~~PharmaNet"), an Australian company listed on the Australian Stock Exchange~~U. ~~Under~~S. ~~the terms of the distribution and supply agreement, Molecular USA received the exclusive distribution rights to distribute, market, promote, detail, advertise and sell certain~~ GAAP"~~Licensed Products", as defined in the agreement, with metallo-polypeptide analgesic as an active ingredient, in the United States (excluding its territories and possessions~~).

OnOverview May 9, 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.

OnWe ~~July~~were ~~19,~~incorporated ~~2013,~~in ~~Molecular~~the ~~USA~~state ~~announced~~of ~~its~~Nevada on ~~wholly-owned~~May ~~subsidiary~~1, ~~MPLA,~~2002. ~~executed~~Up anuntil ~~agreement~~the ~~with~~fall aof ~~New York-based company~~2005, ~~Dermatology~~Molecular ~~Development~~USA ~~Corporation~~was ~~("DDC")~~in tothe ~~develop~~business ~~and market a range~~ of ~~therapeutic,~~ ~~cosmetic~~mineral ~~and~~exploration ~~cosmecutical products based on the ThermaLIFE® product range~~ and ~~its~~development ~~active~~of ~~ingredient~~a inmineral ~~the United States~~property.

~~Under~~On October ~~the~~13, ~~terms~~2005, ofMolecular ~~the~~USA ~~agreement,~~entered ~~DDC~~into ~~is contracted~~a todistribution ~~drive~~and ~~business~~supply agreement ~~relationships~~ with aMolecular ~~number~~Pharmacology ofPty. ~~third~~Ltd. ~~party~~(formerly Molecular ~~entities~~Pharmacology toLimited) ~~sell~~("MPLA"). ~~products~~MPLA is ~~predominantly~~incorporated inunder the ~~dermatology~~laws of Australia and ~~cosmetic~~at ~~fields~~the time was a wholly owned insubsidiary ~~the~~company ~~United~~of ~~States~~PharmaNet inGroup ~~return~~Limited ~~for~~("PharmaNet"), an ~~establishment~~Australian ~~fee~~company ~~and~~listed ~~royalties~~ on the ~~agreements~~ ~~executed~~Australian asStock aExchange. ~~result~~Under the terms of ~~DDC’s~~the ~~services,~~distribution ~~paid~~and ~~for~~supply aagreement, ~~fixed period~~Molecular ~~net~~USA ofreceived ~~MPLA’s~~the exclusive ~~costs~~distribution ofrights ~~sales.~~to ~~The~~distribute, ~~engagement~~market, ofpromote, ~~DDC~~detail, ~~is limited to~~advertise ~~the~~and ~~provision~~sell ofcertain ~~the~~"Licensed ~~services~~Products", as defined in the ~~United States~~agreement, ~~and~~with ismetallo-polypeptide ~~for~~analgesic as an ~~initial one~~active ~~year~~ingredient, ~~period~~in ~~which~~the ~~may~~United beStates ~~extended~~(excluding byits ~~mutual~~territories ~~agreement between MPLA~~ and ~~DDC~~ possessions).

~~Our~~On ~~Current~~May ~~Business~~9, 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.

On July 19, 2013, Molecular USA ~~through~~announced its wholly -owned subsidiary , MPLA, isexecuted inan ~~the~~agreement ~~business~~with ~~of developing and commercializing~~ a ~~new~~New ~~analgesic and anti~~York-~~inflammatory~~based company, ~~molecule~~Dermatology ~~known~~Development asCorporation ~~Tripeptofen.~~("DDC") ~~Tripeptofen~~to isdevelop ~~likely~~and tomarket ~~appear in~~ a ~~new~~range ~~group~~ of ~~products suitable for the treatment of common every-day pain.~~therapeutic, Ascosmetic ~~an analgesic~~ and ~~anti-inflammatory~~cosmecutical ~~drug,~~products ~~Tripeptofen~~based ison ~~unusual~~the ~~due~~ThermaLIFE® toproduct ~~its~~range ~~rapid speed of action~~ and its ~~topical~~active oringredient ~~rub-on~~in ~~application~~the United States.

~~The~~Under ~~majority~~the terms of ~~over-~~the~~-counter~~ ~~anti-pain~~agreement, ~~and~~DDC is ~~anti-inflammatory~~contracted to drive business relationships with a number of third party entities to sell products ~~sold~~predominantly in the dermatology and cosmetic fields in the United States in return for an establishment fee and royalties on the agreements ~~treatment~~executed as a result of ~~acute~~DDC’s ~~localized~~services, ~~pain~~paid ~~are~~for a fixed ~~based~~period onnet ~~non-steroidal~~of ~~anti-inflammatory~~MPLA’s ~~drugs~~costs orof ~~NSAIDs~~sales. The ~~majority~~engagement of ~~such~~DDC is limited to ~~products~~the ~~are~~provision ~~slow~~of ~~acting~~the services in the United States, and ~~provide~~is ~~only~~for ~~mild~~an ~~pain~~initial ~~relief~~one year period which may be extended by mutual agreement between MPLA and DDC.

~~The~~Our ~~NSAID~~Current 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.Business

20 Molecular USA, through its wholly owned subsidiary 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.

~~MPLA's~~The ~~business~~majority ~~strategy~~of ~~is to exploit~~ over-the-counter ~~fast~~ anti-pain and anti-inflammatory ~~locally~~products ~~acting,~~sold ~~low~~for ~~side~~the ~~effects,~~treatment ~~and~~of ~~recovery-enhancing~~acute ~~properties~~localized ofpain ~~its~~are ~~new~~based ~~drug~~on ~~group~~non-steroidal ~~and~~anti-inflammatory todrugs ~~market~~or ~~this~~NSAIDs. asThe amajority ~~new~~of ~~ingredient, enabling pharmaceutical~~such ~~companies~~products toare ~~develop~~slow ~~and~~acting ~~market effective~~ and ~~safer~~provide ~~products~~only ~~suited~~mild ~~to a broad range of common everyday~~ pain relief.

~~Licensed Products~~20

~~Molecular~~The ~~USA~~NSAID group has ~~exclusive~~come ~~distribution~~under ~~rights~~additional topressure ~~distribute,~~and ~~market,~~increasing ~~promote~~medical alarm, ~~advertise~~as ~~and~~many ~~sell~~drugs ~~certain~~in ~~Licensed~~this ~~Products,~~class have been ~~with~~found ~~metallo~~to set-~~polypeptide~~back ~~analgesic~~the ~~and~~recovery ~~anti-inflammatory~~of ~~activity~~certain asconditions anand ~~active~~treatments for which ~~ingredient~~they were marketed. Moreover, inNSAIDs ~~the~~are ~~United~~associated ~~States~~with ~~(excluding~~severe gastro-intestinal ~~its~~side-effects. ~~territories~~This ~~and~~has ~~possessions) from~~left ~~its~~a ~~wholly~~niche ~~owned~~in ~~subsidiary~~an ~~company~~industry under-served ~~MPLA.~~by new products and ingredients.

~~The~~MPLA's ~~Licensed~~business ~~Products~~strategy ~~include~~is ~~all~~to ~~products~~exploit inthe ~~all~~fast ~~dosage~~and ~~forms,~~locally ~~formulations~~acting, ~~line~~low ~~extensions~~side ~~and~~effects, ~~package configurations using or otherwise incorporating any aspect or production method of metallo-polypeptide analgesic~~ and ~~anti~~recovery-~~inflammatory~~enhancing ~~activity~~properties asof ~~an active ingredient marketed by MPLA or~~ its ~~affiliates under the trade name Tripeptofen or any other trade~~ ~~names~~new ordrug ~~trademarks~~group ~~used by MPLA relating to the product~~ and ~~any improvements~~ to ~~such~~market ~~formulations~~this ~~or dosages~~ as ~~may~~a ~~hereafter~~new beingredient, ~~distributed~~enabling ~~by MPLA or its~~pharmaceutical ~~affiliates~~companies into ~~the~~develop ~~territory during the term of the distribution~~ and ~~supply agreement~~market ~~between~~effective ~~Molecular USA~~ and ~~MPLA~~safer ~~for~~products ~~the~~suited ~~topical~~to ~~application~~a ~~for human~~broad ~~use~~range ~~only,~~of ~~and~~common ~~specifically~~everyday ~~excludes:~~pain.

~~· dermatological~~Licensed ~~or cosmetic use, or tissue repair or tissue regeneration effect;~~ Products

· Molecular USA has exclusive distribution rights ~~any~~to ~~use~~distribute, ormarket, ~~application~~promote, ofadvertise ~~the~~and sell certain Licensed ~~Product~~Products, with inmetallo-polypeptide ~~non~~analgesic and anti-~~human~~inflammatory ~~groups~~activity oras an active ~~species;~~ingredient, in the United States (excluding its territories and possessions) from its wholly owned subsidiary company MPLA.

· The Licensed Products include all products in all ~~Thermalife~~dosage ~~cream~~forms, ~~presently~~formulations, ~~owned~~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 ~~PharmaNet,~~or its affiliates under the ~~holding~~trade ~~corporation~~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:

~~All~~· ~~Licensed~~dermatological ~~Products~~or ~~must~~cosmetic ~~first~~use, ~~obtain regulatory~~or ~~clearance~~tissue inrepair ~~the~~or ~~United~~tissue ~~States~~regeneration ~~before~~effect; ~~they~~· ~~may~~any beuse ~~marketed~~or ~~and~~application ~~sold by~~of ~~Molecular~~the ~~USA~~Licensed Product in ~~that~~non-human ~~territory.~~groups ~~Clinical~~or ~~programs~~species; ~~are~~and ~~currently~~· ~~planned~~Thermalife ~~by MPLA for Europe~~cream, ~~USA~~presently ~~and~~owned ~~Australia.~~by ~~The clinical trial program is expected to be expanded with follow-up trials. Regulatory approval~~PharmaNet, ~~commencement of~~ the ~~Master~~ ~~Drug~~holding ~~File~~corporation ~~("MDF") and market approval are the focus~~ of ~~an ongoing program expected to continue over the next 18 to 24 months~~MPLA.

~~MPLA~~All ~~has~~Licensed anProducts ~~exclusive~~must ~~license~~first ~~from~~obtain regulatory ~~Cambridge~~clearance ~~Scientific Pty~~in ~~Ltd.~~the ~~("Cambridge~~United ~~Scientific")~~States before they may be marketed and sold ofby ~~Australia.~~Molecular ~~This~~USA ~~license~~in isthat ~~restricted~~territory. toClinical aprograms ~~"field~~are ofcurrently ~~use"~~planned ~~defined~~by inMPLA ~~the~~for ~~license~~Europe, ~~documentation~~USA and Australia. ~~Cambridge~~The ~~Scientific~~clinical ~~may~~trial ~~grant~~program ~~other~~is ~~licenses~~expected to ~~third~~be ~~parties~~expanded ~~outside~~with ~~the~~follow-up ~~"field~~trials. Regulatory approval, commencement of ~~use~~the Master Drug File ("MDF") and market approval are the ~~subject~~focus of ~~the~~an ~~licenses~~ongoing program expected to continue over ~~granted~~the next 18 to ~~MPLA~~24 months.

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

~~Molecular~~Patents ~~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. To protect 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.Trademarks

To Molecular ~~protect~~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. To protect their intellectual property rights, ~~MPLA~~Molecular USA relies on a combination of ~~license~~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, ~~applications~~trademark, ~~held~~copyright byand trade secret protection may ~~Cambridge~~not ~~Scientific~~be available in every country in which ~~includes "Analgesic~~the ~~and~~combined ~~Anti-Inflammatory~~company intends to ~~Composition"~~offer ~~comprising~~its products. The steps taken by Molecular USA ~~patent~~and ~~application~~MPLA into ~~completion~~protect ~~plus~~their intellectual ~~PCT~~property rights may not be adequate. Third parties may infringe or ~~Provisional~~misappropriate ~~Specification~~the ~~having~~combined company's intellectual property rights or the combined ~~same~~company ~~name~~may ~~designated~~not asbe ~~Serial~~able Noto detect unauthorized use and take appropriate steps to enforce its rights. In addition, other parties may assert ~~11/059580~~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.

~~These~~ 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~~ and copyright law, trade secret protection, confidentiality agreements and ~~other~~ other contractual arrangements as it may execute from time to time.

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

Marketing

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.

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 products already distributed through various international markets.

Molecular USA expects that these activities may even help fund the development costs of the Licensed Products in the United States.

Manufacturing & Supply

Molecular USA and MPLA have no manufacturing facilities. 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. It is likely MPLA will enter into arrangements with various Good ~~Manufacturing~~ Manufacturing Practice ("GMP") certified ~~formulation~~ formulation and manufacturers of the Licensed Products for clinical trial and ~~sales~~ sales purposes. These formulations and the manufacturing facilities must comply ~~with~~ with regulations and ~~current~~Current ~~good~~Good ~~laboratory~~Laboratory ~~practices~~Practices ("CGLP"), 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~~ clinical trials and potential commercialization after the acquisition of MPLA by by Molecular USA.

Molecular USA has not entered into any supply agreements.

Competition

Molecular USA and MPLA compete in the segment of the pharmaceutical market that treats pain and inflammation, which is highly 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, manufacturing, marketing and product development resources than we do. Large pharmaceutical companies in particular ~~have~~ have extensive experience in clinical testing and in obtaining regulatory ~~approvals~~ approvals for drugs. These companies also have significantly greater research capabilities than we do. In addition, many universities and private and public research institutes are active in neurological research, some in direct competition with us. These companies, as well as academic institutions, governmental agencies and other public and private organizations conducting research, also compete with Molecular USA and MPLA in recruiting and retaining ~~highly~~ highly qualified scientific personnel and consultants and may establish ~~collaborative~~ collaborative arrangements with competitors of Molecular USA.

Molecular USA's competition will be determined in ~~part~~ part by the potential indications for which the MPLA's products are developed ~~and~~ and ultimately approved by regulatory authorities.

Molecular USA 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.22

22 Molecular USA 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.

Governmental Regulation

FDA Regulation. 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.~~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").

The activities required before a pharmaceutical agent may be marketed in the United States begin with pre-clinical testing. 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. 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.

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~~ 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.

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.

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.23

~~Facilities~~Once ~~used~~approved, tothe ~~manufacture~~FDA ~~drugs~~may ~~are~~withdraw ~~subject~~the product toapproval ~~periodic~~if ~~inspection~~compliance bywith ~~the~~pre- ~~FDA,~~and ~~Drug~~post-marketing ~~Enforcement~~regulatory ~~Agency~~standards ~~and~~is ~~other~~not ~~authorities~~maintained ~~where~~or ~~applicable,~~if ~~and~~problems ~~must~~occur ~~comply~~after ~~with~~ the ~~FDA’s~~product ~~Current~~reaches ~~Good Manufacturing~~the ~~regulations~~marketplace. ~~Failure~~In addition, ~~to comply with~~ the ~~statutory~~FDA ~~and~~may ~~regulatory requirements~~require ~~subjects~~post-marketing ~~the~~studies, ~~manufacturer~~referred to ~~possible~~as ~~legal~~Phase ~~or regulatory action~~4 studies, ~~such~~to asmonitor ~~suspension~~the effect of ~~manufacturing,~~an ~~seizure~~approved of product, orand ~~voluntary~~may ~~recall~~limit further marketing of athe product. ~~Adverse~~based ~~experiences~~on ~~with~~ the ~~product must~~results beof ~~reported~~these topost-market ~~the~~studies. The FDA ~~and~~has ~~could~~broad ~~result in the imposition of~~ post-market ~~restriction~~ ~~through~~regulatory ~~labeling~~and ~~changes~~enforcement orpowers, inincluding ~~product removal. Product approvals~~the ~~may~~ability beto ~~withdrawn~~levy iffines ~~compliance~~and ~~with~~civil ~~regulatory~~penalties, ~~requirements~~suspend ~~is not maintained~~ or ifdelay ~~problems~~issuance ~~concerning~~of approvals, ~~safety~~seize or ~~efficacy~~recall ofproducts, ~~the~~or ~~product~~withdraw ~~occur following approval~~approvals.

23 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~~ 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~~ comparable regulatory authorities of foreign countries before it can commence ~~clinical~~ clinical trials or marketing of the product in those countries. The approval ~~process~~ 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~~ clinical trials, product licensing, pricing and reimbursement vary greatly from ~~country~~ 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~~ wide variety of new requirements on both ~~U.S.~~United States and non-~~U.S.~~United States companies, that file or are required to file periodic reports with the ~~Securities and Exchange Commission (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:

· 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 chief executive officer and chief financial officer are required to certify its financial statements;~~24

· 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 ~~disclose~~procedures ~~any~~and ~~off-balance~~policies ~~sheet~~to ~~transactions~~determine aswhether ~~required~~they bycomply 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.

~~· prohibit~~Environmental ~~all personal loans to directors and officers;~~Compliance

~~· ensure~~The ~~directors,~~nature ~~officers~~of Molecular USA's and ~~10%~~MPLA's ~~holders~~business ~~file~~does ~~their~~not ~~Forms~~require ~~4's~~special ~~within~~environmental or local ~~two~~government ~~days~~approval. Molecular USA and MPLA are compliant with all environmental laws. The cost of asuch ~~transaction;~~compliance is minimal for the company.

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

~~· ensure~~In the period ended December 31, 2013, Molecular USA’s ~~auditor~~did not ishave ~~independent~~any asemployees ~~defined~~and bydoes not intend to hire any employees in the upcoming ~~SOA~~year. We rely heavily on outside contractors to conduct our business.

24Immediate Business Plans

The ~~SOA~~Company, ~~has~~through ~~required~~its ussubsidiary MPLA, plans to ~~review~~continue ~~our~~to ~~current~~pursue the various levels of the international regulatory ~~procedures~~approval processes. Applications and ~~policies~~product opportunities for Tripeptofen are believed to ~~determine~~be ~~whether~~broad ~~they~~and ~~comply~~cover ~~with~~a ~~the~~range ~~SOA~~of ~~and~~commercial ~~the new~~fields, ~~regulations~~each ~~promulgated~~with ~~thereunder~~distinct pre-market requirements. WeThe ~~will~~international ~~continue~~drug todevelopment ~~monitor~~team, ~~our~~global ~~compliance~~resources ~~with~~and ~~all~~local ~~future~~know-how ~~regulations~~will ~~that~~allow ~~are~~MPLA ~~adopted~~to ~~under~~seek the ~~SOA~~most time and ~~will~~cost ~~take~~effective ~~whatever~~regulatory ~~actions~~pathways ~~are~~for ~~necessary~~each toproduct ~~ensure~~and ~~that~~market ~~we are in compliance~~sector.

~~Environmental~~On ~~Compliance~~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.

~~The~~Reports ~~nature~~to ofSecurity 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. Holders

We are required to file annual reports on Form ~~Employees~~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 Innot contain our reports, you may read and copy any materials we file with the ~~period~~SEC at ~~ended~~their ~~September~~Public 30Reference Room at 450 Fifth Street, ~~2013~~N.W., ~~Molecular~~Washington, D.C. ~~USA~~20549. ~~did~~You ~~not~~may ~~have~~obtain ~~any~~information ~~employees~~on ~~and~~the ~~does~~operation ~~not~~of ~~intend~~the toPublic ~~hire~~Reference ~~any~~Room by ~~employees~~calling inthe SEC at 1-800-SEC-0330. Additionally, the SEC maintains an ~~upcoming~~Internet ~~year~~site (http://www.sec.gov) Wethat ~~rely~~contains ~~heavily~~reports, onproxy ~~outside~~and ~~contractors~~information statements toand ~~conduct~~other ~~our~~information ~~business~~regarding issuers that file electronically with the SEC.

~~Immediate~~Results ~~Business~~of ~~Plans~~Operation

~~The~~For ~~Company, through its subsidiary MPLA, plans to continue to pursue~~ the ~~various levels of the international regulatory~~quarter ~~approval~~ended ~~processes.~~December ~~Applications and product opportunities for Tripeptofen are believed to be broad and cover a range of commercial fields~~31, ~~each with distinct pre-market requirements~~2013. ~~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.25

~~Reports~~Revenues ~~to Security Holders~~

WeREVENUE ~~are~~– ~~required~~Molecular toUSA ~~file~~has ~~annual~~not ~~reports~~generated ~~on Form~~any ~~10-K~~revenues ~~and~~for ~~quarterly reports on Form 10-Q with~~ the ~~SEC~~quarter onended aDecember ~~regular basis~~31, ~~and will be required to timely disclose certain material events (e.g.~~2013, ~~changes in corporate control; acquisitions~~ or ~~dispositions~~since ~~of a significant amount of assets other than in the ordinary course of business; and bankruptcy) in a current report on Form 8-K~~inception.

~~Although~~ COMMON STOCK ~~our~~– ~~Internet~~Molecular ~~site~~USA ~~www.mpl-usa.com~~has ~~does~~ not issued ~~contain our reports, you may read and copy~~ any ~~materials~~shares weduring ~~file with~~ the ~~SEC at~~most ~~their~~recent ~~Public Reference Room at 450 Fifth Street, N~~quarter.~~W.,~~ ~~Washington,~~As ~~D.C. 20549.~~of ~~You may obtain information on~~ the ~~operation~~date of ~~the~~February ~~Public Reference Room by calling the SEC at 1-800-SEC-0330. Additionally~~11, ~~the SEC maintains an~~2014, ~~Internet~~Molecular ~~site~~USA ~~(http://www.sec.gov)~~has ~~that contains reports~~111,553,740 ~~proxy~~common ~~and~~shares ~~information statements~~issued and ~~other information regarding issuers that file electronically with the SEC~~outstanding.

~~Results~~Expenses ~~of Operation~~

~~For~~SUMMARY – Total expenses were $63,327 for the ~~quarter~~six month period ended ~~September~~December 3031, 2013. Expenses had decreased during 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 Molecular USA since 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. The costs can be subdivided into the following categories:

~~Revenues~~ Office Expenses and Rent: $15,170 in office expenses (for administrative costs) were incurred for the six month period ended December 31, 2013, as compared to $15,780 for the six month period ended December 31, 2012, while a total of $262,031 was incurred in the period from inception on July 14, 2004 to December 31, 2013. All contributed expenses are reported as contributed costs with a corresponding credit to additional paid-in capital.
~~REVENUE –~~ Consulting and Analysis Costs: Molecular USA ~~has~~relies on consultants and other third parties to ~~not~~ conduct ~~generated~~the ~~any~~majority ~~revenues~~of ~~for~~its research. For the ~~quarter~~six ~~ended~~month ~~September~~period 30ended December 31, 2013, or$23,467 ~~since~~in consulting and analysis expenses were incurred as compared to $64,118 during the six month period ended December 31, 2012. We have incurred a total of $1,447,831 in consulting and analyst fees since our inception on July 14, 2004 to December 31, 2013.
~~COMMON~~ ~~STOCK~~ –Advertising and Promotion Fees: Molecular USA has ~~not issued~~spent ~~any~~no ~~shares~~money ~~during~~in ~~the~~this ~~most~~area ~~recent~~this ~~quarter~~year. ~~As of~~ During the ~~date~~six ofmonth ~~October~~period ended December 31, 2013, ~~Molecular~~we ~~USA~~spent ~~has~~$Nil ~~111~~on advertising and public relations and $Nil for six month period ended December 31,~~553~~ 2012. A total of $23,~~740~~739 ~~common~~has ~~shares~~been ~~issued~~incurred ~~and~~in this ~~outstanding~~area during the period from inception on July 14, 2004 to December 31, 2013.
25 Professional Fees: Molecular USA incurred $21,044 in professional fees for the six month period ended on December 31, 2013, as compared to $19,743 for the six month period ended December 31, 2012. From inception to December 31, 2013, we have incurred a total of $426,581 professional fees mainly spent on legal and accounting matters.
~~Expenses~~ Travel Costs: Molecular USA incurred $Nil in travel costs for the six month period ended December 31, 2013, as compared to $359 for the six month period ended December 31, 2012 and $111,710 has been incurred in the period from inception on July 14, 2004 to December 31, 2013.
~~SUMMARY~~ –Salaries and Benefit ~~Total~~ Costs: ~~expenses~~Molecular ~~were~~USA ~~$40,773~~and ~~for~~its ~~the~~subsidiary ~~three~~rely ~~month~~primarily ~~period~~on ~~ended~~outside consultants ~~September~~and ~~30,~~not ~~2013~~salaried employees. ~~Expenses~~ ~~had~~As ~~increased~~a ~~during~~result, ~~this~~Molecular ~~past three~~USA ~~month~~ incurred ~~period~~$Nil asin ~~compared~~salaries toand benefits for the ~~three~~six month period ended ~~September 30, 2012~~December ~~– $52~~ 31,~~096.~~ A2013 ~~total~~and of $~~2,386,869~~Nil in ~~expenses~~salaries ~~has~~and ~~been~~benefits ~~incurred~~during bythe six month period ~~Molecular~~ ended ~~USA~~December ~~since~~31, ~~inception~~2012. onFor the period July 14, 2004 (inception) through toDecember ~~September 30~~31, 2013~~. The~~, ~~increase~~Molecular ~~in costs over this three~~USA ~~month period~~ has ~~occurred~~spent asa ~~the~~total ~~result~~ of ~~Molecular~~$44,464 ~~USA’s~~on ~~wholly~~salaries ~~owned subsidiary~~and ~~increasing its consulting fees~~benefits. ~~The costs can be subdivided into the following categories.~~

Molecular ~~Office~~USA continues ~~Expenses~~to ~~and~~carefully ~~Rent:~~control ~~$10,120~~its ~~in office~~ expenses ~~(for~~and ~~administrative~~overall costs) ~~were incurred for the three month period ended September 30, 2013,~~ as ~~compared~~it ~~to $8,994~~moves ~~for~~forward with the ~~three~~development ~~month period ended September 30, 2012, while a total~~ of ~~$256,981 was~~its ~~incurred~~new inbusiness ~~the~~plan. ~~period~~Molecular ~~from~~USA ~~inception~~does ~~on July~~not ~~14,~~have ~~2004~~any toemployees ~~September~~and ~~30,~~engages ~~2013.~~personnel ~~All~~through ~~contributed~~outside ~~expenses~~consulting ~~are~~contracts ~~reported~~or ~~as contributed~~agreements ~~costs~~or ~~with~~other asuch ~~corresponding credit to additional paid-in capital~~arrangements.

Income ~~Consulting~~Tax ~~and Analysis Costs~~Provision: ~~Molecular~~We ~~USA~~have ~~relies~~losses oncarried-forward ~~consultants~~for ~~and~~income ~~other~~tax ~~third~~purpose ~~parties~~ to December 31, ~~conduct~~2013. ~~the~~There ~~majority~~are ofno ~~its~~current ~~research.~~or ~~For~~deferred tax expenses for the ~~three~~six month period ended ~~September 30~~December 31, 2013, ~~$15,285~~due into ~~consulting~~our ~~and analysis expenses were incurred as~~loss ~~compared~~position. toWe ~~$33,480~~have ~~during~~fully ~~the~~reserved ~~three~~for ~~month~~any ~~period~~benefits ~~ended~~of ~~September 30,~~these ~~2012~~losses. We ~~have~~The ~~incurred~~deferred tax aconsequences ~~total~~ of ~~$1,439,649 in~~temporary ~~consulting~~differences ~~and~~in ~~analyst~~reporting ~~fees~~items ~~since~~for ~~our~~financial statement ~~inception~~and onincome ~~July~~tax ~~14,~~purposes ~~2004~~are torecognized ~~September 30,~~as ~~2013~~appropriate.

Advertising and Promotion Fees: Molecular USA has spent no money in this area this year. During the three month period ended September 30, 2013, we spent $Nil on advertising and public relations and $Nil for three month period ended September 30, 2012. A total of $23,739 has been incurred in this area during the period from inception on July 14, 2004 to September 30, 2013.26

Liquidity Professional Fees: Molecular USA incurred $13,697 in professional fees for the three month period ended on September 30, 2013, as compared to $9,177 for the three month period ended September 30, 2012. From inception on July 14, 2004 to September 30, 2013, we have incurred a total of $419,234 professional fees mainly spent on legal and ~~accounting matters.~~Capital Resources

During ~~Travel~~the ~~Costs:~~six month period ended December 31, 2013, Molecular USA satisfied ~~incurred~~its ~~$Nil~~working incapital ~~travel~~needs ~~costs~~by ~~for~~borrowing cash from its parent company PharmaNet. As December 31, 2013, the ~~three~~Company ~~month~~had ~~period~~cash ~~ended~~and ~~September~~cash equivalents on hand in the amount of $4,997 (June 30, 2013 - $7,046) asand ~~compared~~current topayable and accrued liabilities of $~~359~~20,482 ~~for~~(June ~~the~~30, ~~three~~2013 ~~month~~- ~~period~~$21,628). ~~ended~~As ~~September~~December 31, 2013, Molecular 30USA currently owes its parent company PharmaNet, ~~2012~~$2,004,134, an additional $47,845 to other related parties, and $~~111~~20,~~710~~482 ~~has~~to ~~been~~non-related parties. Given the ~~incurred~~proposed inbusiness activities of Molecular USA and its subsidiary, Management does not expect that the ~~period~~current ~~from~~level ~~inception~~of cash on ~~July 14,~~hand ~~2004~~will be sufficient to fund ~~September~~its ~~30,~~operation ~~2013~~for the next twelve month period.

To ~~Salaries~~achieve ~~and~~our ~~Benefit Costs:~~goals ~~Molecular USA~~ and ~~its~~objectives ~~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~~next ~~30,~~12 ~~2013 and $Nil in salaries and benefits during the three month period ended September 30~~months, ~~2012.~~we ~~For~~plan ~~the~~to ~~period~~raise ~~July~~additional ~~14,~~capital ~~2004 (inception)~~ through ~~September~~private ~~30,~~placements ~~2013, Molecular USA~~of ~~has~~our ~~spent~~equity asecurities ~~total~~and offuture ~~$44,464~~financing onfrom ~~salaries~~our ~~and~~majority ~~benefits~~shareholder PharmaNet.

~~Molecular~~We ~~USA~~plan ~~continues~~ to ~~carefully~~use ~~control its~~any ~~expenses~~additional ~~and~~funds ~~overall~~that ~~costs~~we asmight be itsuccessful ~~moves~~in ~~forward~~raising ~~with~~for ~~the~~ development, ofas ~~its new~~well ~~business~~as ~~plan.~~for ~~Molecular~~strategic ~~USA does not have any employees and engages~~acquisition ~~personnel~~of ~~through~~existing ~~outside~~businesses ~~consulting~~that ~~contracts~~complement orour ~~agreements~~market orniche, ~~other~~and ~~such~~general ~~arrangements~~working capital purposes.

~~Income~~ If ~~Tax~~we ~~Provision:~~are Weunsuccessful ~~have~~in ~~losses~~obtaining ~~carried~~new ~~forward for income tax purpose to September 30~~capital, ~~2013. There~~our ~~are~~ability noto ~~current~~seek ~~or deferred~~and ~~tax~~consummate ~~expenses~~strategic ~~for~~acquisitions ~~the three month period ended September 30, 2013, due~~ to build our ~~loss~~company ~~position. We have fully~~internationally ~~reserved~~and ~~for~~to ~~any~~expand ~~benefits~~ of ~~these~~our ~~losses. The~~business ~~deferred~~development ~~tax consequences of temporary differences in reporting items for financial statement~~ and ~~income~~marketing ~~tax~~programs ~~purposes~~could ~~are recognized as~~be ~~appropriate~~adversely affected.

~~Liquidity~~Off-Balance ~~and Capital Resources~~Sheet Arrangement

~~During the three month period ended September 30, 2013, Molecular USA satisfied its working capital needs by borrowing cash from its parent company PharmaNet.~~ As of ~~September 30, 2013, the Company~~December ~~had cash and cash equivalents on hand in the amount of $7~~31,~~150~~ ~~($7,046 – June 30,~~ 2013~~) and current payable and accrued liabilities of $34~~,~~400~~ ~~($21,628 – June 30, 2013). As of September 30, 2013,~~ Molecular USA ~~currently~~did ~~owes~~not ~~its~~have ~~parent~~any ~~company PharmaNet, $2,070,562, an additional $41,667 to other related parties, and $34,400 to non~~off-~~related parties. Given~~balance ~~the~~sheet 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 periodarrangements.

ToResearch ~~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.~~Development

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

We· ~~plan~~Refine toand ~~use~~prove-up ~~any~~its ~~additional~~proprietary ~~funds~~active ingredients and to commence the processes that wewill ~~might be~~lead ~~successful~~to inthe ~~raising~~issue ~~for~~of ~~development,~~a asMaster ~~well~~Drug asFile ~~for~~registration ~~strategic~~of ~~acquisition~~ its products; · Define the mode of ~~existing~~action ~~businesses~~and ~~that~~potential ~~complement~~of ~~our~~Tripeptofen ~~market~~in ~~niche~~both in vitro, animal and ~~general~~human ~~working capital~~studies; ~~purposes~~· Gain Australian regulatory and marketing approval; · Gain European regulatory approval; and · Commence application for American regulatory approval.

IfMPLA weis ~~are~~in ~~unsuccessful~~the inbusiness ~~obtaining~~of ~~new~~developing ~~capital,~~and ~~our~~commercializing ~~ability~~a tonew ~~seek~~analgesic and ~~consummate~~anti-inflammatory ~~strategic~~molecule ~~acquisitions~~known as Tripeptofen. Tripeptofen is likely to ~~build~~appear ~~our~~in ~~company~~a ~~internationally~~new group of products ~~and~~suitable tofor ~~expand~~the treatment of ~~our~~common ~~business~~every-day ~~development~~pain. As an analgesic and anti-inflammatory ~~marketing~~drug, ~~programs~~Tripeptofen ~~could~~is beunusual due to its rapid speed of action ~~adversely~~and ~~affected~~its topical or rub-on application.

~~Off~~ 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-~~Balance~~SIMs") that ~~Sheet~~should ~~Arrangement~~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.

AsThe first conditions targeted by MPLA will be the musculoskeletal injuries. The use of ~~September~~a B-SIM in these markets represents a new 30approach to one of the world’s largest over the counter drug markets and includes indications such as joint inflammation, ~~2013~~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 ~~did~~holds ~~not~~the ~~have~~worldwide ~~any~~exclusive ~~off~~license to manufacture, commercialize, market and distribute topical anti-~~balance~~inflammatory and ~~sheet~~analgesic ~~arrangements~~products based on the proprietary MPL-TL compound.

~~Research and Development~~27

~~Since~~ Molecular USA is still working on the ~~acquisition~~projections regarding ofthe ~~MPLA,~~necessary ~~Molecular~~expenditure ~~USA~~and ~~has~~time ~~maintained MPLA’s~~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.

~~Refine~~Capital ~~and prove-up its proprietary active~~Expenditure ~~ingredients and to commence the processes that will lead to the issue of a Master Drug File registration of its products;~~Commitments

~~Define~~ Capital expenditures for the ~~mode~~six ofmonth ~~action~~period ended ~~and~~December ~~potential~~31, of2013, amounted to $Nil. Molecular USA does not anticipate ~~Tripeptofen~~any insignificant ~~both~~purchase inor ~~vitro,~~sale ~~animal~~of ~~and~~equipment ~~human~~over ~~studies;~~the next 12 months.

~~Gain~~Recent ~~Australian regulatory and marketing~~Accounting ~~approval;~~Pronouncements

~~Gain~~ Certain ~~European~~new standards, ~~regulatory~~interpretations, ~~approval;~~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:

~~Commence~~ In ~~application~~July 2013, 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 a deferred tax asset for ~~American~~a ~~regulatory~~net operating loss carryforward, a ~~approval~~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 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.

~~MPLA is in the business of developing and~~ ~~commercializing~~Changes ~~a new analgesic and anti-inflammatory molecule known as Tripeptofen. Tripeptofen is likely to appear~~ in aAccounting 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. Policies

OnEffective July ~~April 19~~1, ~~2006~~2013, ~~Molecular USA announced~~ the ~~filing~~Company ofadopted aASU ~~new patent~~2013-05, ~~Tissue~~"Foreign Currency ~~Disruption~~Matters ~~Treatment~~(Topic ~~and~~830) ~~Composition~~– Parent’s Accounting for ~~Use~~the ~~(US~~Cumulative ~~Patent~~Translation ~~number~~Adjustment ~~11218382).~~upon ~~The~~Derecognition ~~patent~~of ~~describes~~Certain Subsidiaries or Group of Assets within a ~~proprietary~~Foreign ~~process~~Entity ~~for~~or ~~the~~of an Investment in a Foreign Entity". ~~manufacture~~These ofamendments ~~topical~~provide ~~biological~~guidance ~~secondary~~on ~~injury~~releasing ~~mediators~~cumulative translation adjustments when a reporting entity (~~B-SIMs~~parent) ~~that should~~ceases to have ~~local,~~a ~~rather~~controlling financial ~~than~~interest ~~systemic,~~in ~~effects~~a ~~and~~subsidiary ~~may~~or bea ~~significantly~~group ~~less expensive~~of toassets ~~manufacture~~that ~~than~~is ~~conventional~~a Bnon-~~SIMs~~profit activity or a business within a foreign entity. ~~MPLA~~In isaddition, ~~developing~~these ~~its~~amendments ~~B-SIMs~~provide toguidance ~~stop~~on the ~~tissue~~release ~~disruption~~of ~~that~~cumulative ~~occurs~~translation ~~after~~adjustments ~~injury by suppressing~~in ~~the~~partial ~~body’s~~sales ~~reactions,~~of ~~such~~equity asmethod ~~inflammation~~investments and ~~damage/death~~in ofstep ~~otherwise~~acquisitions. The ~~uninjured~~adoption ~~cells~~of ~~that~~these ~~are~~amendments ~~triggered~~did innot ~~response~~have toan ~~primary~~impact ~~injury~~on the Company’s interim consolidated financial statements.

~~The~~Effective July ~~first~~1, ~~conditions~~2013, ~~targeted~~the byCompany ~~MPLA~~adopted ~~will~~ASU be2013-04, ~~the~~"Liabilities ~~musculoskeletal~~(Topic ~~injuries. The~~405) ~~use of~~– aObligations ~~B-SIM~~Resulting infrom ~~these~~Joint ~~markets~~and ~~represents~~Several aLiability Arrangements ~~new~~for ~~approach~~Which tothe ~~one~~Total Amount of the ~~world’s~~ ~~largest~~Obligation ~~over~~is ~~the~~Fixed ~~counter~~at ~~drug~~the Reporting ~~markets~~Date". ~~and~~These ~~includes~~amendments ~~indications such~~provide asguidance ~~joint~~for ~~inflammation~~the recognition, ~~musculoskeletal pain~~measurement, ~~overuse~~ and ~~strain~~disclosure ~~injuries, burns~~of ~~and~~obligations ~~even~~resulting ~~surgical~~from joint and ~~cosmetic~~several ~~procedures. MPLA’s~~liability ~~proprietary,~~arrangements ~~industrially scalable~~for ~~peptide-ligand~~which ~~bond~~the ~~exchange~~total ~~("PLBE") B-SIM~~amount ~~manufacturing~~of ~~process involves~~ the ~~disassociation of proteins, rather~~obligation ~~than~~within the ~~far~~scope ~~more costly process~~ of ~~assembling~~this ~~B-SIMs~~guidance ~~one~~is ~~sequence~~fixed at ~~a time. The patent was lodged in~~ the ~~name~~reporting ofdate, ~~Cambridge~~except ~~Scientific~~for obligations ~~Pty~~addressed ~~Ltd;~~within ~~however, Molecular~~existing ~~USA~~guidance ~~holds~~in ~~the~~U.S. ~~worldwide~~GAAP. ~~exclusive~~The ~~license~~adoption ~~to manufacture,~~of ~~commercialize,~~these ~~market~~amendments ~~and~~did ~~distribute~~not ~~topical~~have ~~anti-inflammatory~~an ~~and~~impact ~~analgesic products based~~ on the ~~proprietary~~Company’s ~~MPL-TL~~interim consolidated ~~compound.~~financial statements.

Effective ~~Molecular~~July ~~USA~~1, 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 ~~still~~required ~~working~~to present, either on the ~~projections regarding~~face of the statement ~~necessary~~where ~~expenditure~~net ~~and~~income ~~time~~is ~~frame~~presented ~~involved~~or in ~~pursuing~~the ~~this~~notes, significant amounts ~~research~~reclassified ~~and~~out ~~development~~of ~~program.~~ accumulated other comprehensive income by the respective ~~Any~~line ~~such~~items ~~program~~of ~~will~~net ~~also~~income but only if the amount reclassified is required under U.S. GAAP to be ~~subject~~reclassified to ~~Molecular~~net ~~USA~~income ~~raising~~in its entirety in the same reporting ~~necessary~~period. ~~funds~~For other amounts that are not required under U.S. GAAP to ~~advance~~be reclassified ~~such~~in atheir ~~program~~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.

~~Capital Expenditure Commitments~~28

~~Capital~~Critical ~~expenditures~~Accounting ~~for~~Policies ~~the~~and ~~three month period ended September 30, 2013, amounted to $Nil. Molecular USA does not anticipate any significant purchase or sale of equipment over the next 12 months.~~Estimates

~~Recent~~ Our ~~Accounting~~quarterly ~~Pronouncements~~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.

~~Certain~~ Stock-Based ~~new~~Compensation Effective January ~~standards~~1, ~~interpretations~~2006, ~~amendments~~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 ~~improvements~~is recognized toas ~~existing~~an ~~standards~~expense ~~were~~over ~~issued~~the byemployees’ ~~FASB~~requisite service period (generally the vesting period of the equity grant). The Company adopted ASC 718 ~~new~~using ~~standards~~the modified prospective method, ~~amendments~~which torequires ~~standards~~the ~~and~~Company to record ~~interpretations~~compensation ~~that~~expense ~~have~~over ~~been~~the ~~issued~~vesting period for all awards granted after the date of adoption, and for the unvested portion of previously granted awards that ~~are~~remain ~~applicable~~outstanding toat the ~~Company~~date of adoption. Accordingly, the financial ~~but~~statements for the periods prior to January 1, 2006 have not ~~effective~~been ~~during~~restated to reflect the ~~three~~fair ~~month~~value ~~period~~method ~~ended~~of 30expensing ~~September~~share-based ~~2013~~compensation. ~~are~~The adoption asof ASC 718 does not change the way the Company accounts for ~~follows:~~share-based payments to non-employees, with guidance provided by ASC 505-50, "Equity-Based Payments to Non-Employees".

27Item 3. Quantitative and Qualitative Disclosures about Market Risk.

InInterest ~~July~~Rate ~~2013,~~Risk 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 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.

~~Changes~~Due into ~~Accounting~~the ~~Policies~~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.

~~Effective 1 July 2013, the Company adopted ASU 2013-05, "~~Foreign Currency ~~Matters~~Risk (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.

~~Effective~~ Our 1head ~~July~~office ~~2013,~~and ~~the~~lab ~~Company~~operations ~~adopted~~are ~~ASU~~based ~~2013-04~~in Australia. Accordingly, ~~"Liabilities~~we ~~(Topic~~have ~~405)~~been –subject ~~Obligations~~to ~~Resulting~~exposure from ~~Joint~~adverse ~~and~~movements ~~Several~~in ~~Liability~~foreign ~~Arrangements~~currency ~~for~~exchange ~~Which~~rates. ~~the~~To ~~Total~~date, ~~Amount of~~ the ~~Obligation~~effect ~~is Fixed~~of atchanges ~~the~~in ~~Reporting Date". These amendments provide~~foreign ~~guidance~~currency ~~for~~exchange ~~the~~rates ~~recognition,~~on ~~measurement,~~revenue and ~~disclosure~~operating ofexpenses ~~obligations resulting~~has ~~from~~not ~~joint~~been ~~and several liability arrangements for which the total~~material ~~amount~~as ofwe ~~the~~have ~~obligation~~had ~~within~~no ~~the~~revenue ~~scope~~and oflimited ~~this~~operations. ~~guidance~~Operating isexpenses ~~fixed~~incurred ~~at the~~by ~~reporting~~our ~~date,~~foreign ~~except~~subsidiaries ~~for~~were ~~obligations~~denominated ~~addressed~~in ~~within~~local ~~existing guidance in U~~currencies.S. ~~GAAP.~~We ~~The~~have ~~adoption of these amendments did~~ not ~~have~~used financial aninstruments ~~impact~~to onhedge ~~the Company’s~~these ~~interim~~operating ~~consolidated financial statements~~expenses.

~~Effective~~Item ~~1 July 2013, the Company adopted ASU 2013-02, "Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income"~~4. ~~The~~ ~~amendments~~Controls ~~require~~and ~~an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component~~Procedures. 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.

~~Critical~~(a) ~~Accounting~~Evaluation ~~Policies~~of ~~and~~disclosure ~~Estimates~~controls and procedures

~~Our~~Disclosure ~~quarterly~~controls ~~interim~~are ~~consolidated~~controls ~~financial statements~~ and ~~accompanying~~procedures ~~notes~~that are ~~prepared~~designed into ensure ~~accordance~~that ~~with~~information ~~generally~~required ~~accepted accounting~~to ~~principles~~be ~~used~~disclosed in ~~the~~our ~~United~~reports ~~States. Preparing~~filed ~~financial~~under ~~statements~~the Exchange ~~requires~~Act ~~Management to~~is ~~make~~recorded, ~~estimates~~processed, summarized and ~~assumptions~~reported, ~~that~~within ~~affect~~the time periods specified in the ~~reported~~SEC's ~~amounts~~rules ofand ~~assets~~forms. Disclosure controls and procedures include, ~~liabilities,~~without ~~revenue~~limitation, controls and ~~expenses.~~procedures ~~These~~designed ~~estimates~~to ~~and~~ensure ~~assumptions~~that ~~are~~information ~~affected~~required byto ~~Management's~~be ~~application~~disclosed ofby ~~accounting~~a ~~policies. We~~company ~~believe~~in the reports that ~~understanding~~it ~~the~~files ~~basis~~or submits ~~and~~under ~~nature~~the ofExchange ~~the~~Act ~~estimates~~is accumulated and ~~assumptions~~communicated ~~involved~~to ~~with~~ the ~~following~~company's ~~aspects~~Management, ofincluding ~~our~~its ~~interim~~principal ~~consolidated~~executive and principal financial ~~statements~~officers, isor ~~critical~~persons performing similar functions, as appropriate to ~~an understanding~~allow oftimely ~~our~~decisions regarding ~~financials~~required disclosure.

2829

~~Stock~~ 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-~~based~~15(e) and 15d-15(e) under the Securities ~~compensation~~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.

Effective January 1, 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~~b). ~~The~~Internal ~~Company adopted ASC 718 using the modified prospective~~control ~~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~~reporting 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~~ Management's 3.annual ~~Quantitative~~report ~~and~~on internal ~~Qualitative~~control ~~Disclosures~~over ~~About~~financial ~~Market Risk.~~reporting

~~Interest~~ Management ~~Rate~~is ~~Risk~~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:

~~Due~~· pertain to the ~~short-term~~maintenance ~~nature~~of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our ~~interest~~assets; ~~bearing~~· ~~assets~~provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with applicable U.S. GAAP, ~~which~~and ~~consist~~that ~~primarily~~ receipts and expenditures are being made only in accordance with authorizations of ~~cash~~Management and ~~cash~~the ~~equivalents~~Board of Directors; and no· ~~restricted~~provide ~~cash~~reasonable assurance regarding prevention or timely detection of unauthorized acquisition, weuse ~~believe~~or ~~that~~disposition of our ~~exposure~~ toassets ~~interest~~that ~~rate~~could ~~market~~have ~~risk~~a ~~will~~material ~~not~~effect ~~significantly~~on ~~affect~~the ~~our operations.~~financial statements.

~~Foreign~~Because ~~Currency~~of ~~Risk~~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.

~~Our~~ ~~head~~As ~~office~~required ~~and~~by ~~lab~~Rule ~~operations~~13a-15(c) ~~are~~promulgated ~~based~~under inthe ~~Australia.~~Exchange ~~Accordingly~~Act, ~~we have~~Management, ~~been~~with ~~subject~~the toparticipation ~~exposure~~of ~~from~~our ~~adverse~~CEO ~~movements~~and inCFO, ~~foreign~~evaluated ~~currency~~the ~~exchange~~effectiveness of our ~~rates.~~internal Tocontrol ~~date,~~over ~~the~~financial ~~effect~~reporting as of ~~changes~~December in31, ~~foreign~~2013. ~~currency~~Management's assessment ~~exchange~~took ~~rates~~into ~~on revenue~~consideration the size and ~~operating~~complexity ~~expenses~~of ~~has~~the ~~not~~company ~~been~~and was ~~material~~based ason wecriteria ~~have~~set ~~had~~forth noby ~~revenue~~the Committee of Sponsoring Organizations of ~~and~~the ~~limited~~Treadway ~~operations.~~Commission ~~Operating~~in ~~expenses~~Internal ~~incurred~~Control byover ~~our~~Financial ~~foreign~~Reporting ~~subsidiaries~~- Guidance ~~were~~for ~~denominated~~Smaller inPublic ~~local currencies~~Companies. WeIn ~~have~~performing ~~not~~the ~~used~~assessment, Management has concluded that our internal control over financial ~~instruments~~reporting towas effective as ~~hedge~~of ~~these~~December ~~operating~~31, ~~expenses~~2013.

~~Item~~Attestation 4.report ~~Controls~~of ~~and~~the ~~Procedures.~~registered public accounting firm

~~(a)~~ ~~Evaluation~~This quarterly report does not include an attestation report of ~~disclosure~~the ~~controls~~Company's registered ~~and~~public ~~procedures~~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.

~~Disclosure controls~~Changes ~~are controls and procedures that are designed to ensure that information required to be disclosed~~ in ~~our~~internal ~~reports~~control ~~filed~~over 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.~~reporting

~~Management~~Based ~~carried~~on ~~out~~the an evaluation ~~(with~~as ~~the~~of ~~participation~~December of31, ~~our~~2013, ~~Chief~~Jeffrey ~~Executive~~Edwards, ~~Officer~~our President, ("CEO") , and ~~Chief~~CFO ~~Financial~~has ~~Officer~~concluded ~~("CFO")~~that ),there ofwere ~~the~~no ~~effectiveness~~significant ofchanges ~~the design~~in ~~and~~our ~~operation~~internal ofcontrols ~~our~~over ~~disclosure~~financial ~~controls~~reporting ~~and~~or ~~procedures~~in ~~pursuant~~any toother ~~Rules 13a-15(e)~~areas ~~and~~that ~~15d-15(e)~~could ~~under~~significantly ~~the~~affect ~~Securities~~our ~~Exchange~~internal ~~Act~~controls ofsubsequent ~~1934~~to ~~("Exchange~~the ~~Act").~~date ~~Based~~of ~~upon~~his ~~that~~most recent evaluation, ~~the~~including ~~Company’s~~corrective ~~CEO~~actions ~~and~~with ~~CFO~~regard ~~have concluded that~~to ~~the~~significant ~~Company's~~deficiencies ~~disclosure controls~~ and ~~procedures~~material ~~were effective as of September 30, 2013~~weaknesses.

~~(b) Internal control over financial reporting~~ 30

~~Management's~~ ~~annual~~PART ~~report~~II on- ~~internal~~OTHER ~~control over financial reporting~~INFORMATION

~~Management is~~Item ~~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~~1. ~~Our~~Legal 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 UProceedings.~~S. GAAP. Our internal control over financial reporting should include those policies and procedures that:~~

29 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.

~~· pertain~~Item to1A. ~~the~~Risk ~~maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;~~Factors.

~~· provide~~As ~~reasonable~~a ~~assurance~~"smaller ~~that transactions~~reporting ~~are~~company" ~~recorded~~ as defined ~~necessary~~by toItem ~~permit~~10(f) ~~preparation~~ of ~~financial~~Regulation ~~statements in accordance with applicable U.~~S~~. GAAP~~-K, ~~and~~the ~~that~~Company ~~receipts~~is ~~and~~not ~~expenditures~~required ~~are~~to ~~being made only in accordance with~~provide ~~authorizations~~information ofrequired ~~Management~~by ~~and~~this ~~the~~Item. ~~Board of Directors; and~~

~~· provide~~Item ~~reasonable~~2. ~~assurance regarding~~Unregistered ~~prevention~~Sales ~~or timely detection~~ of ~~unauthorized~~Equity ~~acquisition,~~Securities ~~use~~and ~~or disposition~~Use of ~~our assets that could have a material effect on the financial statements~~Proceeds.

~~Because of its inherent limitations, internal~~ ~~control~~Recent ~~over~~Sale ~~financial reporting may not prevent or detect misstatements. Also, projections~~ of ~~any~~Unregistered 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.Securities

~~As required by Rule 13a-15(c) promulgated~~ ~~under~~Not ~~the Exchange Act, Management, with the participation of our CEO and CFO, evaluated the effectiveness of our internal control over financial reporting as of September 30, 2013~~Applicable. 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 30, 2013.

~~Attestation~~Use ~~report~~ of ~~the registered~~Proceeds ~~public~~from ~~accounting~~Unregistered ~~firm~~Securities

~~This quarterly report does not include an~~ ~~attestation~~Not ~~report of the Company's registered public accounting firm regarding internal control over financial reporting~~Applicable. 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~~Item in3. ~~internal~~Defaults ~~control~~Upon ~~over financial~~Senior ~~reporting~~Securities.

~~Based on the evaluation as of September 30,~~ ~~2013,~~Not Jeffrey Edwards, our President, CEO and CFO 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 deficiencies and material weaknessesApplicable.

30Item 4. Mine Safety Disclosures.

~~PART~~Not ~~II - OTHER INFORMATION~~Applicable.

Item 15. ~~Legal~~Other ~~Proceedings~~Information.

WeNo ~~know~~items 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~~disclose.

~~Item 1A. Risk Factors.~~31

~~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~~6. Exhibits.

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

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.

~~Recent Sale of Unregistered Securities~~SIGNATURES

~~Not~~ Pursuant ~~Applicable~~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.

~~Use~~February of11, ~~Proceeds from Unregistered Securities~~2014.

~~Not~~ ~~Applicable.~~ ~~Item~~ MOLECULAR 3.PHARMACOLOGY ~~Defaults~~(USA) ~~Upon~~LIMITED ~~Senior~~ ~~Securities.~~ BY: /s/ Jeffrey Edwards Jeffrey Edwards, President, Chief Executive Officer, Chief Financial Officer and a Member of the Board of Directors

~~Not Applicable. Item 4. Mine Safety Disclosures.~~32

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.

October 31, 2013.

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.