10-K 1 form10k_06302014.htm MLPH FORM 10-K - 06-30-2014

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)
	X	ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
		For the year ended June 30, 2013
		For the year ended June 30, 2014
		TRANSITION REPORT UNDER 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)
Registrant's telephone number, including area code			011-61-8-9443-3011
Securities registered pursuant to Section 12(b) of the Act:
Title of each class					Name of each exchange on which registered
Not Applicable					Not Applicable
Securities registered pursuant to Section 12(g) of the Act:
Common Stock with a par value of $0.001 per share
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined by Rule 405 of the Securities Act							Yes o	No x
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act							Yes x	No o
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90 days.							Yes x	No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12
months (or for such shorter period that the registrant was required to submit and post such files). Not Applicable.							Yes o	No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. Not Applicable.							Yes o	No o

Indicate by check mark whether the registrant is large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer", "non-accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act (Check one):
	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 Act)			Yes o	No x
State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant's most recently completed second fiscal quarter.
23,553,740 common shares @ $0.011(1) = $259,091.14
(1) Last close price on June 28, 2013
(1) Last close price on August 14, 2014
APPLICABLE ONLY TO REGISTRANTS 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 or 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
Not Applicable.
(APPLICABLE ONLY TO CORPORATE REGISTRANTS)
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.
111,553,740 common shares issued and outstanding as of August 13, 2013.
111,553,740 common shares issued and outstanding as of September 8, 2014.
DOCUMENTS INCORPORATED BY REFERENCE
None.

Table of Contents

FORWARD LOOKING INFORMATION 1 PART I 1 Item 1. Business 1 Business Development - Formation and Reorganization 1 Our Current Business 2 Licensed Products 2 Patents & Trademarks 3 Marketing 3 Manufacturing & Supply 3 Competition 43 Governmental Regulation 4 Environmental Compliance 6 Research & Development 6 Employees 6 Immediate Business Plans 6 Reports to Securities Holders 6 Item 1A. Risk Factors 7 Item 1B. Unresolved Staff Comments 7 Item 2. Properties 7 Item 3. Legal Proceedings 7 Item 4. Mine Safety Disclosures 7 PART II 7 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 7 Holders of Common Stock 8 Dividends 8 Equity Compensation Plan 8 Recent Sales of Unregistered Securities 8 Item 6. Selected Financial Data 8 Item 7. Management Discussion and Analysis of Financial Condition and Results of Operations 8 ~~2013~~2014 Activities and Developments 8 Results of Operation 9 Liquidity and Capital Resources 10 Off-Balance Sheet Arrangement 10 Research and Development 10 Capital Expenditure Commitments 11 Strategic Acquisitions 11 Recent Accounting Pronouncements 11 Critical Accounting Policies and Estimates 1211 Stock-based Compensation 1211 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 12 Item 8. Financial Statements and Supplementary Data 12 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 32 Item 9A. Controls and Procedures 32 ~~(a) Evaluation of Disclosure Controls and Procedures 32 (b) Internal control over financial reporting 32~~ Item 9A(T). Controls and Procedures 33 Item 9B. Other Information 33 PART III 33 Item 10. Directors and Executive Officers and Corporate Governance 33 Identification of Directors and Executive Officers 33 Family relationships 33 Significant Employees 33 Involvement in Certain Legal Proceedings 34 Audit Committee Financial Expert 34

iii

		Audit Committee	34
		Disclosure Committee and Charter	34
		Compliance with Section 16(a) of the Securities Exchange Act of 1934	34
		Code of Ethics	35
	Item 11. Executive Compensation		35
		Summary of Compensation of Executive Officers	35
		Board of Directors Report on Executive Compensation	36
		Stock Options/SAR Grants	36
		Long-Term Incentive Plans/Equity Compensation Plan	36
		Compensation of Directors	36
		Stock Option Plans	36
	Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		36
		Security Ownership of Certain Beneficial Owners and Management	36
		Changes in Control	37
	Item 13. Certain Relationships and Related Transactions, and Directors Independence		37
		Certain Relationships and Related Transactions	37
		Director Independence	38
	Item 14. Principal Accounting Fees and Services		38
		Fees and Services	38
		Pre-Approval Policies and Procedures	39
PART IV			39
	Item 15. Exhibits, Financial Statement Schedules		39
		Exhibit Number and Exhibit Title	39
SIGNATURES			40

FORWARD LOOKING INFORMATION

This annual report contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors", that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles ("U.S. GAAP"). In this annual report, unless otherwise specified, all dollar amounts are expressed in United States Dollars. All references to CDN$ refer to Canadian Dollars.

As used in this annual report, the terms "we", "us", "our", "Corporation" and "Molecular USA" mean Molecular Pharmacology (USA) Limited unless otherwise indicated.

PART I

Item 1. Business

Business Development - Formation and Reorganization

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

Molecular USA has not been involved in any bankruptcy, receivership or similar proceeding nor has there been any material reclassification or merger, consolidation or purchase or sale of a significant amount of assets not in the ordinary course of business other than as disclosed herein.

Up until the fall of 2005, Molecular USA was in the business of mineral exploration and development of a mineral property.

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

On 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 Corporation at a stockholders meeting held on April 21, 2005. As a result of the transaction, PharmaNet, the former parent corporation 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 announced its wholly-owned subsidiary, MPLA, executed an agreement with a New York-based company, Dermatology Development Corporation ("DDC") to develop and market a range of therapeutic, cosmetic and cosmecutical products based on the ThermaLIFE® product range and its active ingredient in the United States.

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

Our Current Business

~~royalties~~The onacquisition ~~the~~of ~~agreements~~MPLA ~~executed~~provided asMolecular aUSA ~~result~~an ofimmediate ~~DDC’s~~and ~~services,~~solid ~~paid~~international ~~for~~foundation awhich management ~~fixed~~believes ~~period~~will ~~net~~allow ofit ~~MPLA’s~~to ~~costs~~grow ofits ~~sales.~~business ~~The~~into ~~engagement~~all ofmajor ~~DDC is~~geographical ~~limited~~markets. toThe ~~the~~assets ~~provision~~and resources of the ~~services~~Australian incorporation ~~the~~and ~~United~~its existing ~~States,~~teams and isdevelopment ~~for~~programs ~~an initial~~has ~~one~~augmented ~~year~~Molecular ~~period~~USA’s ~~which~~plan ~~may~~to bedevelop ~~extended~~safe byand ~~mutual~~effective pain ~~agreement~~and ~~between~~inflammation ~~MPLA and~~management ~~DDC~~products.

~~Our~~Molecular USA, ~~Current~~through ~~Business~~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.

The ~~acquisition~~ majority of ~~MPLA~~over-the-counter ~~provided~~anti-pain and ~~Molecular~~anti-inflammatory ~~USA~~products ansold ~~immediate~~for ~~and~~the ~~solid~~treatment ~~international~~of ~~foundation~~acute ~~which~~localized ~~management believes~~pain ~~will~~are ~~allow~~based iton tonon-steroidal ~~grow~~anti-inflammatory ~~its~~drugs ~~business~~or ~~into all major geographical markets~~NSAIDs. The ~~assets~~ ~~and~~majority ~~resources~~ of such ~~the~~products ~~Australian~~are ~~corporation~~slow ~~and~~acting ~~its existing teams~~ and ~~development~~ ~~programs~~provide ~~has~~only ~~augmented~~mild ~~Molecular USA’s plan to develop safe and effective~~ pain ~~and inflammation management products~~relief.

~~Molecular USA~~The ~~through~~NSAID ~~its~~group ~~wholly~~has ~~owned~~come ~~subsidiary~~under ~~MPLA~~additional pressure isand inincreasing ~~the~~medical ~~business~~alarm, ofas ~~developing and~~many ~~commercializing~~drugs ain ~~new~~this ~~analgesic~~class ~~and~~have ~~anti-inflammatory molecule known as~~been ~~Tripeptofen.~~found ~~Tripeptofen is likely~~ to ~~appear~~set-back inthe arecovery ~~new group~~ of ~~products suitable~~certain ~~for~~conditions ~~the~~and ~~treatment~~treatments offor ~~common~~which they ~~every-day~~were ~~pain~~marketed. AsMoreover, anNSAIDs ~~analgesic~~are ~~and~~associated with severe ~~anti~~gastro-~~inflammatory~~intestinal ~~drug,~~side-effects. ~~Tripeptofen~~This ishas ~~unusual~~left ~~due~~a toniche ~~its~~in ~~rapid~~an ~~speed of action~~industry ~~and~~under-served ~~its~~by ~~topical~~new orproducts ~~rub-on~~and ~~application~~ingredients.

~~The~~MPLA's ~~majority~~business ofstrategy ~~over-the-counter~~is ~~anti-pain~~to exploit the fast and ~~anti-inflammatory~~locally ~~products~~acting, ~~sold~~low ~~for~~side ~~the~~effects, ~~treatment~~and ofrecovery-enhancing ~~acute~~properties ~~localized pain~~of ~~are~~its ~~based~~new ondrug ~~non-steroidal~~group ~~anti-inflammatory~~and ~~drugs~~to ormarket ~~NSAIDs.~~this ~~The~~as ~~majority~~a ofnew ingredient, enabling ~~such~~pharmaceutical ~~products~~companies ~~are~~to ~~slow~~develop ~~acting~~and market effective and ~~provide~~safer ~~only~~products suited ~~mild~~to ~~pain~~a ~~relief~~broad range of common everyday pain.

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

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

Licensed Products

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

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

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

· any use or application of the Licensed Product in non-human groups or species; and

· Thermalife cream, presently owned by PharmaNet, the holding corporation of MPLA.

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

MPLA has 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.

Patents & Trademarks

Molecular USA and its subsidiary MPLA, regard their intellectual property rights, such as copyrights, trademarks, trade secrets, practices and tools, as important to the success of their corporation. 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 corporation 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 corporation's intellectual property rights or the combined corporations 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 corporations. 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 corporation's ability to use processes covered by such patents or expose the combined corporation to claims of patent infringement or otherwise require the combined corporation 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 corporation’s business.

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

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.

~~Molecular~~In addition, Molecular USA plans to ~~market~~explore ~~its~~opportunities ~~Licensed~~for ~~Products,~~direct ~~when approved~~sales, ~~through existing~~ ~~pharmaceutical~~out-licensing ~~distributors~~ and bythe ~~collaborative~~integration ~~dealings~~of ~~with~~the ~~major~~Corporation’s proprietary ~~companies~~anti-inflammatory ~~active~~and analgesic components in ~~the~~products ~~United~~already ~~States~~distributed through ~~and~~various ~~Europe~~international markets.

~~In addition,~~ Molecular USA ~~plans~~expects tothat ~~explore~~these ~~opportunities~~activities ~~for~~may ~~direct~~even ~~sales, out-licensing~~help ~~and~~fund the ~~integration~~development ofcosts of the ~~Corporation’s~~Licensed ~~proprietary anti-inflammatory~~Products ~~and analgesic components~~ in ~~products~~the ~~already~~United ~~distributed through various international markets~~States.

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

On July 19, 2013, Molecular USA announced its wholly-owned subsidiary, MPLA, executed an agreement with a New York-based company, Dermatology Development Corporation ("DDC") to develop and market a range of therapeutic, cosmetic and cosmecutical products based on the ThermaLIFE® product range and its active ingredient 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 Practice ("GMP") certified formulation and manufacturers of the Licensed Products for clinical trial and sales purposes. These formulations and the manufacturing facilities must comply 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 trials and potential commercialization after the acquisition of MPLA by Molecular USA.

3Molecular 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 extensive experience in clinical testing and in obtaining regulatory approvals for drugs. These companies also have significantly greater research capabilities than we do. In addition, 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 qualified scientific personnel and consultants and may establish collaborative arrangements with competitors of Molecular USA.

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 qualified scientific personnel and consultants and may establish collaborative arrangements with competitors of Molecular USA.

Molecular USA's competition will be determined in part by the potential indications for which the MPLA's products are developed 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.

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. 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 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.

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.

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

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

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

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

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

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

· form an audit ~~committees~~committee in compliance with the SOA; · ensure Molecular USA's chief executive officer and chief financial officer are required to certify its financial statements; · ensure Molecular USA’s directors and senior officers are required to forfeit all bonuses or other incentive-based compensation and profits received from the sale of Molecular USA’s securities in the twelve month period following initial publication of any of Molecular USA’s financial statements that later require restatement; · disclose any off-balance sheet transactions as required by the SOA; · prohibit all personal loans to directors and officers; · ensure directors, officers and 10% holders file their Forms 4's within two days of a transaction; · adopt a code of ethics and file a Form 8-K whenever there is a change or waiver of this code; and · ensure Molecular USA'

s auditor is independent as defined by the SOA.

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

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

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

· prohibit all personal loans to directors and officers;

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

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

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

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

Environmental Compliance

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

Research & Development

In the year ended ~~2013~~2014, Molecular USA spent approximately $~~134~~37,~~223~~156 on research and development and $~~100~~134,~~624~~ 223 for the year ended ~~2012~~2013 through consultants.

Employees

In the year ended ~~2013~~2014, Molecular USA did not have any employees and does not intend to hire any employees in the upcoming year. We rely heavily on outside contractors to conduct our business.

Immediate Business Plans

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

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

Reports to Securities Holders

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

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

Item 1A. Risk Factors

No disclosure is required hereunder as the Corporation is a "smaller reporting company," as defined in Item 10(f) of Regulation S-K.

Item 1B. Unresolved Staff Comments

Not applicable.

Item 2. Properties

Molecular USA’s office space is located at Drug Discovery Centre, 28 Oxford Street, Leederville 6007 Perth, Western Australia. This office space was provided free of charge during the year ended June 30, ~~2013~~2014, from a corporation controlled by an officer of PharmaNet.

Item 3. Legal Proceedings

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

Item 4. Mine Safety Disclosures

Not Applicable.

PART II

Our common shares are quoted on the PinkSheets under the symbol "MLPH". The following quotations reflect the high and low bids for our common stock based on inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. The high and low bid prices for our common shares (obtained from www.quotemedia.com) for each full financial quarter for the two most recent full fiscal years were as follows:

Quarter Ended(1) (2) High Low June 30, 2013 $0.02 $0.01 March 31, 2013 $0.014 $0.01 December 31, 2012 $0.015 $0.01 September 30, 2012 $0.0198 $0.0081 June 30, 2012 $0.043 $0.008 March 31, 2012 $0.017 $0.0011 December 31, 2011 $0.0013 $0.001 September 30, 2011 $0.01 $0.003 June 30, 2011 $0.006 $0.004 March 31, 2011 $0.013 $0.0138 Notes: (1) The quotations above reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions. (2) Molecular USA was originally first quoted on the OTCBB on May 13, 2005 under the symbol "BHWV". Its symbol was changed to "MLPH" on August 29, 2005. On November 26, 2007, the stock was moved to the PinkSheet quotation system for failure to comply with NASD 6530. The shares of Molecular USA were eligible to be quoted once again on the OTCBB on November 26, 2008 on application request by a market maker of the common stock of Molecular USA.

Quarter Ended^{(1) (2)}			High	Low
June 30, 2014			$0.0163	$0.008
March 31, 2014			$0.0231	$0.01
December 31, 2013			$0.03	$0.011
September 30, 2013			$0.025	$0.011
June 30, 2013			$0.02	$0.01
March 31, 2013			$0.014	$0.01
December 31, 2012			$0.015	$0.01
September 30, 2012			$0.0198	$0.0081
June 30, 2012			$0.043	$0.008
March 31, 2012			$0.017	$0.0011
Notes:
	(1)	The quotations above reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.
	(2)	Molecular USA was originally first quoted on the OTCBB on May 13, 2005 under the symbol "BHWV". Its symbol was changed to "MLPH" on August 29, 2005. On November 26, 2007, the stock was moved to the PinkSheet quotation system for failure to comply with NASD 6530. The shares of Molecular USA were eligible to be quoted once again on the OTCBB on November 26, 2008 on application request by a market maker of the common stock of Molecular USA.

Holders of Common Stock

As of ~~July~~September 318, ~~2013~~2014, there were 19 registered shareholders of Molecular USA’s common stock.

Dividends

Molecular USA has never declared nor paid any cash dividends on its capital stock and does not anticipate paying cash dividends in the foreseeable future. Molecular USA’s current policy is to retain any earnings in order to finance the expansion of its operations. Molecular USA’s board of directors will determine future declaration and payment of dividends, if any, in light of the then-current conditions they deem relevant and in accordance with the Nevada Revised Statutes.

Equity Compensation Plan

We do not have any securities authorized for issuance under any equity compensation plans.

Recent Sales of Unregistered Securities

None.

Item 6. Selected Financial Data

No disclosure is required hereunder as Molecular USA is a "smaller reporting company," as defined in Item 10(f) of Regulation S-K.

Item 7. Management Discussion and Analysis of Financial Condition and Results of Operations

THE FOLLOWING ANALYSIS OF THE RESULTS OF OPERATIONS AND FINANCIAL CONDITION OF THE CORPORATION FOR YEAR ENDING JUNE 30, ~~2013~~2014, SHOULD BE READ IN CONJUNCTION WITH THE CORPORATION’S CONSOLIDATED FINANCIAL STATEMENTS, INCLUDING THE NOTES THERETO CONTAINED ELSEWHERE IN THE FORM 10-K.

Our consolidated financial statements are stated in United States Dollars and are prepared in accordance with ~~United States Generally Accepted Accounting Principles ("~~U.S. GAAP").

20132014 Activities and Developments

For the year ended June 30, ~~2013~~2014, our net loss was $~~209~~116,~~900~~928 ($0.~~002~~001 per share). The loss per share was based on an average of 111,553,740 common shares outstanding. For the year ended June 30, ~~2012~~2013, our net loss was $~~179~~209,~~382~~900 ($0.002 per share). The loss per share was based on an average of 111,553,740 common shares outstanding. For the year ended June 30, ~~2011~~2012, our net loss was $~~121~~179,~~860~~382 ($0.~~001~~002 per share). The loss per share was based on a weighted average of 111,553,740 common shares outstanding. For the period from inception on July 14, 2004 to June 30, ~~2013~~2014, Molecular USA has an accumulated net loss of $2,~~061~~178,~~948~~876. Molecular has working capital deficit of $925,~~512~~655 at June 30, ~~2013~~2014 (June 30, ~~2012~~2013 – $119,~~570~~512). As a result, our auditors have substantial doubt about our ability to continue as a going concern unless we are able to generate sufficient cash flows to meet our obligations and sustain our operations.

To achieve our goals and objectives for the next 12 months, we plan to raise ~~additional~~ additional capital through future private placements of our equity securities and/or future financing from our majority shareholder PharmaNet and, if available on satisfactory terms, or debt financing.

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

Results of Operation

For the years ended June 30, ~~2013~~2014, June 30, ~~2012~~2013 and June 30, ~~2011~~2012 and for the period from July 14, 2004 (inception) through to June 30, ~~2013~~2014.

REVENUES

REVENUE – Molecular has net loss of $~~209~~116,~~900~~928 for the year ended June 30, ~~2013~~2014 (June 30, ~~2012~~2013 – $~~179~~209,~~382~~900; June 30, ~~2011~~2012 – $~~121~~179,~~860; cumulative - $2,061,948~~382) and $2,~~061~~178,~~948~~876 for the period from inception to June 30, ~~2013~~2014. To date, we have generated no revenue from our business operations.

LOANS – As of June 30, ~~2013~~2014, PharmaNet has loaned Molecular USA a total of $2,~~007~~127,~~468~~917 for working capital (June 30, ~~2012~~2013 - $2,~~036~~007,~~760~~468). The advance does not carry an interest rate, is unsecured and has no fixed terms of repayment.

COMMON STOCK – Net cash provided by financing activities during the year ended June 30, ~~2013~~2014 was $Nil (June 30, ~~2012~~2013 - $Nil).

EXPENSES

SUMMARY – Total expenses were $~~209~~116,~~077~~928 for the year ended June 30, ~~2013~~2014. Total expenses were $~~179~~209,~~382~~900 for the year ended June 30, ~~2012~~2013 and total expenses were $~~121~~179,~~860~~382 for the year ended June 30, ~~2011~~2012. Expenses have ~~increased~~decreased in the year ended June 30, ~~2013~~2014, by $2992,~~695~~972. A total of $2,~~346~~178,~~096~~876 in expenses has been incurred by Molecular USA since inception on July 14, 2004, through to June 30, ~~2013~~2014. The ~~increase~~decrease in costs over the past year has occurred as the result of ana ~~increase~~decrease in consulting fees over the year. The costs can be subdivided into the following categories.

Rent Expenses: Molecular USA incurred $Nil in rent expenses for the years ended June 30, ~~2013~~2014, June 30, ~~2012~~2013 and June 30, ~~2011~~2012, while a total of $27,759 was incurred in the period from inception on July 14, 2004 to June 30, 202014.
Consulting Expenses: Molecular USA relies on consultants and other third parties to conduct the majority of its research. For the year ended June 30, ~~2013~~2014, a total of $~~134~~37,~~223~~156 in consulting expenses was incurred as compared to $~~100~~134,~~624~~ 223 for the year ended June 30, ~~2012~~2013 and $52100,~~690~~624 for the year ended June 30, ~~2011~~2012. We have incurred a total of $1,~~424~~461,~~364~~520 in the period from inception on July 14, 2004 to June 30, ~~2013~~2014.
Analysis Costs: Molecular USA incurred $Nil in analysis costs for the years ended June 30, ~~2013~~2014, June 30, ~~2012~~2013 and June 30, ~~2011~~2012 while a total of $33,947 was incurred in the period from inception on July 14, 2004 to June 30, ~~2013~~2014.
Advertising and Promotion Fees: Molecular USA has spent a nominal amount in this area. During the years ended June 30, ~~2013~~2014, June 30, ~~2012~~2013 and June 30, ~~2011~~2012, we spent $Nil on advertising and promotional fees. We have incurred a total of $23,739 in the period from inception on July 14, 2004 to June 30, ~~2013~~2014.
Professional Fees: Molecular USA incurred $4542,~~954~~430 in professional fees for the year ended June 30, ~~2013~~2014, as compared to $4845,~~607~~954 for the year ended June 30, ~~2012~~2013 and $4248,~~142~~607 for the year ended June 30, ~~2011~~2012. From inception to June 30, ~~2013~~2014, we have incurred a total of $~~405~~447,~~537~~967 in professional fees mainly spent on legal and accounting matters.
Public Relations: Molecular USA incurred $Nil for the years ended June 30, ~~2013~~2014, June 30, ~~2012~~2013 and June 30, ~~2011~~2012, while a total of $3,656 was incurred in the period from inception on July 14, 2004 to June 30, ~~2013~~2014.
Travel Costs: Molecular USA incurred $~~376~~Nil in travel costs for the year ended on June 30, ~~2013~~2014 as compared to $~~7,085~~376 in travel costs for the year ended June 30, ~~2012~~2013 and $~~Nil~~7,085 for the ~~year~~ year ended June 30, ~~2011~~2012. We have incurred a total of $111,710 in the period from inception on July 14, 2004 to June 30, ~~2013~~2014.
Salaries and Benefit Costs: Molecular USA and its subsidiary rely primarily on outside consultants and not salaried employees. As a result, Molecular USA incurred $Nil in salaries and benefits for the years ended June 30, ~~2013~~2014, June 30, ~~2012~~2013 and June 30, ~~2011~~2012. For the period July 14, 2004 (inception) through June 30, ~~2013~~2014, Molecular USA has spent a total of $44,464 on salaries and benefits.

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

INCOME TAX PROVISION: We have losses carried forward for income tax purpose to June 30, ~~2013~~2014. There are no current or deferred tax expenses for the year ended June 30, ~~2013~~2014, due to our loss position. We have fully reserved for any benefits of these losses. The deferred tax consequences of temporary differences in reporting items for financial statement and income tax purposes are recognized as appropriate.

Liquidity and Capital Resources

During the year ended June 30, ~~2013~~2014, Molecular USA satisfied its working capital needs by borrowing cash from its parent company PharmaNet. As of June 30, ~~2013~~2014, the Company had cash and cash equivalents on hand in the amount of $72,~~046~~378 (June 30, ~~2012~~2013 - $27,~~572~~046) and current payable and accrued liabilities of $2134,~~628~~526 (June 30, 2013 ~~2012~~ - $1921,~~252~~628). As of June 30, ~~2013~~2014, Molecular USA currently owes its parent company PharmaNet, $2,~~007~~127,~~468~~917 and an additional $3779,~~033~~379 to other related parties. Given the proposed business activities of Molecular USA and its subsidiary, management does not expect that the current level of cash on hand will be sufficient to fund its operation for the next twelve month period.

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

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

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

Off-Balance Sheet Arrangement

As of June 30, ~~2013~~2014, we have had no off-balance sheet arrangements.

Research and Development

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

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

Define the mode of action and potential of Tripeptofen in both in vitro, animal and human studies;

Gain Australian regulatory and marketing approval;

Gain European regulatory approval; and

Commence application for American regulatory approval.

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

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

The first conditions targeted by MPLA will be the musculoskeletal injuries. The use of a B-SIM in these markets represents a new approach to one of the world’s largest over the counter drug markets and includes indications such as joint inflammation, musculoskeletal pain, overuse and strain injuries, burns and even surgical and cosmetic procedures. MPLA’s proprietary, industrially scalable peptide-ligand bond exchange ("PLBE") B-SIMs 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 ~~Pty. Ltd.~~; however, ~~Molecular~~ Molecular USA holds the worldwide exclusive license to manufacture, commercialize, market and distribute topical anti-inflammatory and analgesic products based on the proprietary MPL-TL compound.

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

Capital Expenditure Commitments

Capital expenditures during the year ended June 30, ~~2013~~2014, amounted to $Nil ($Nil for the years ended June 30, ~~2012~~2013 and June 30, ~~2011~~2012). Molecular USA does not anticipate any significant purchase or sale of equipment over the next 12 months.

Strategic Acquisitions

On November 25, 2005, Molecular USA entered into a share purchase agreement dated November 25, 2005 with PharmaNet to acquire 100% of the issued and outstanding shares of MPLA. Molecular USA issued a total of 88,000,000 shares of its common stock to PharmaNet the parent corporation of MPLA. Accordingly, PharmaNet controls approximately 79% of Molecular USA’s issued and outstanding shares of common stock.

Recent Accounting Pronouncements

Certain new standards, interpretations, amendments and improvements to existing standards were issued by the Financial Accounting Standards Board ("FASB"). The new standards, amendments to standards and interpretations that have been issued and that are applicable to the ~~Company~~Corporation but not effective during the year ended June 30, ~~2013~~2014 are as follows:

In ~~April~~July 2013, the FASB issued ASU 2013-0711, "Income Taxes (Topic 740): Presentation of ~~Financial~~an Unrecognized Tax Benefit When a Net Operating Loss ~~Statements~~Carry-forward, ~~(Topic~~a ~~205)~~Similar –Tax ~~Liquidation~~Loss, ~~Basis~~or ofa ~~Accounting~~Tax Credit Carry-forward Exist". These amendments require that an ~~entity~~unrecognized totax ~~prepare~~benefit, ~~its~~or ~~financial~~a ~~statements~~portion ~~using the liquidity basis~~ of ~~accounting~~an unrecognized ~~("LBA")~~tax ~~when~~benefit, ~~liquidation~~should ~~is imminent.~~be ~~Among~~presented in the ~~requirements of LBA~~ financial statements isas ~~that~~a reduction ~~they~~to (a~~) present~~ ~~relevant~~deferred ~~information~~tax ~~about~~asset anfor ~~entity’s~~a ~~expected~~net ~~resources~~operating inloss carry-forward, a ~~liquidation~~similar bytax ~~measuring~~loss, ~~and~~or ~~presenting~~a ~~assets~~tax atcredit ~~the~~carry-forward ~~amount~~except ofas ~~the~~follows. ~~expected~~To the ~~cash~~extent ~~proceeds~~a ~~from~~net ~~liquidation;~~operating ~~(b)~~loss ~~include~~carry-forward, ina ~~its~~similar ~~presentation~~tax ofloss, ~~assets~~or ~~any~~a tax credit ~~items~~carry-forward is not ~~previously~~available ~~recognized~~at the reporting date under ~~U.S.~~the ~~GAAP~~tax ~~but~~law ~~that~~of isthe applicable ~~expected~~jurisdiction to ~~sell~~settle ~~in liquidation~~any oradditional ~~use~~income intaxes ~~settling~~that ~~liabilities;~~would ~~(c)~~result from ~~recognize~~a ~~and~~disallowance ~~measure~~of ~~an entity’s~~a ~~liabilities~~tax inposition ~~accordance~~or ~~with~~the ~~U.S.~~tax ~~GAAP~~law ~~that~~of ~~otherwise~~the ~~applies~~applicable tojurisdiction ~~those~~does ~~liabilities;~~not ~~and~~require ~~(d)~~the ~~disclose~~entity to use, and the entity’s ~~plan~~does ~~for~~not ~~liquidation,~~intend to use, the ~~methods~~deferred ~~and~~tax ~~significant~~asset ~~assumptions~~for ~~used~~such topurpose, ~~measure~~the ~~assets~~unrecognized ~~and~~tax ~~liabilities,~~benefit ~~the~~should ~~type~~be ~~and~~presented ~~amount~~in ofthe ~~costs~~financial ~~and~~statements ~~income~~as ~~accrued,~~a liability and ~~the~~should ~~expected~~not be ~~duration~~combined ~~of the~~with ~~liquidation~~deferred ~~process~~tax assets. These amendments are effective for ~~entities that~~fiscal ~~determine~~years, ~~liquidation~~and isinterim ~~imminent~~periods ~~during~~within ~~annual~~those ~~reporting~~years, ~~periods~~ beginning after December 15, 2013,. The ~~and~~amendments ~~interim~~should ~~reporting~~be ~~periods~~applied ~~therein.~~prospectively ~~Entities~~to ~~should apply~~all ~~the~~unrecognized ~~requirements~~tax ~~prospectively~~benefits that ~~from~~exist at the ~~day~~effective ~~that~~date. ~~liquidation~~Retrospective ~~becomes imminent.~~application ~~Early~~and ~~adoption~~early adoption is permitted. The adoption is not expected to have an a material impact on the ~~Company~~Corporation’s consolidated financial statements ~~in its present condition~~.

In ~~March~~May ~~2013~~2014, the FASB issued ASU ~~2013~~2014-0509, "~~Foreign~~Revenue ~~Currency~~from ~~Matters~~Contracts ~~(Topic~~with ~~830)~~Customers". –The ~~Parent’s~~update ~~Accounting~~is ~~for~~intended ~~the~~to ~~Cumulative Translation~~improve ~~Adjustment~~the ~~upon~~financial ~~Derecognition~~reporting ofrequirements ~~Certain~~for ~~Subsidiaries~~revenue orfrom ~~Group~~contracts ofwith ~~Assets within~~customers aby ~~Foreign~~providing ~~Entity or of an Investment in~~ a ~~Foreign~~principle ~~Entity"~~based approach. ~~These~~ ~~amendments~~The ~~provide~~core ~~guidance~~principal onof ~~releasing~~the ~~cumulative~~standard ~~translation~~is ~~adjustments~~that ~~when~~revenue ashould ~~reporting~~be ~~entity~~recognized ~~(parent)~~when ~~ceases~~the totransfer ~~have~~of apromised ~~controlling~~goods or ~~financial~~services ~~interest~~is made in aan ~~subsidiary~~amount orthat athe ~~group~~entity ofexpects ~~assets~~to ~~that~~be isentitled ato ~~non-profit~~in ~~activity~~exchange orfor athe ~~business~~transfer ~~within~~of agoods ~~foreign~~and ~~entity~~services. InASU ~~addition,~~2014-09 ~~these~~also ~~amendments~~requires ~~provide~~disclosures ~~guidance~~enabling onusers ~~the~~of ~~release~~financial ofstatements ~~cumulative~~to ~~translation~~understand ~~adjustments~~the innature, ~~partial~~amount, ~~sales~~timing ofand ~~equity~~uncertainty ~~method~~of ~~investments~~revenue and incash ~~step~~flows ~~acquisitions.~~arising ~~The~~from contracts ~~amendments~~with ~~are~~customers. ~~effective~~This ~~for~~standard ~~fiscal~~will ~~years~~be ~~and~~effective ~~interim~~for ~~reporting~~financial ~~periods~~statements ~~within~~issued ~~those~~by ~~years,~~public ~~beginning~~companies ~~after~~for ~~December~~annual ~~15,~~reporting ~~2013.~~periods ~~The~~beginning ~~amendments should be applied prospectively to derecognition events occurring~~ after ~~the effective~~December15, ~~date~~2016. ~~Prior periods should not be adjusted.~~ Early adoption is not permitted. ~~If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity’s fiscal year of adoption.~~ The adoption ~~of these amendments~~ is not expected to have a material ~~effect~~impact on the ~~Company~~Corporation’s consolidated financial statements.

In February 2013, the FASB issued 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. Examples of obligations within this guidance are debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The amendments are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. These amendments shall be applied retrospectively to all prior periods presented for those obligations within the scope of this Subtopic that exist at the beginning of an entity’s fiscal year of adoption. Early adoption is permitted. The adoption of these amendments is not expected to have a material effect on the Company’s consolidated financial statements.

In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income". The amendments do not change the current requirements for reporting net income or other comprehensive income in financial statements but require an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross reference to other disclosures required under U.S. GAAP that provide additional details about those amounts. The amendments are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. Early adoption is permitted. The adoption of these amendments is not expected to have a material effect on the Company’s consolidated financial statements.

Critical Accounting Policies and Estimates

Our audited consolidated financial statements and accompanying notes are prepared in accordance with ~~generally~~U.S. ~~accepted~~GAAP ~~accounting principles~~ 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 consolidated financial statements is critical to an understanding of our financials.

Stock-based Compensation

Effective January 1, 2006, the Corporation 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 Corporation adopted ASC 718 using the modified prospective method, which requires the Corporation to record compensation expense over the vesting period for all awards granted after the date of adoption, and for the unvested portion of previously granted awards that remain outstanding at the date of adoption. Accordingly, the financial statements for the periods prior to January 1, 2006 have not been restated to reflect the fair value method of expensing share-based compensation. The adoption of ASC 718 does not change the way the Corporation accounts for share-based payments to non-employees, with guidance provided by ASC 505-50, "Equity-Based Payments to Non-Employees".

recognized as an expense over the employees’ requisite service period (generally the vesting period of the equity grant). The Corporation adopted ASC 718 using the modified prospective method, which requires the Corporation to record compensation expense over the vesting period for all awards granted after the date of adoption, and for the unvested portion of previously granted awards that remain outstanding at the date of adoption. Accordingly, the financial statements for the periods prior to January 1, 2006 have not been restated to reflect the fair value method of expensing share-based compensation. The adoption of ASC 718 does not change the way the Corporation accounts for share-based payments to non-employees, with guidance provided by ASC 505-50, "Equity-Based Payments to Non-Employees".

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

No disclosure is required hereunder as the Corporation is a "smaller reporting company," as defined in Item 10(f) of Regulation S-K.

Item 8. Financial Statements and Supplementary Data

Report of Independent Registered Public Accounting Firm dated August 919, ~~2013~~ 2014.

Consolidated Balance Sheets as at June 30, ~~2013~~2014 and June 30, ~~2012~~2013.

Consolidated Statements of Operations for the years ended June 30, ~~2013~~2014, June 30, ~~2012~~2013 and June 30, ~~2011~~2012 and for the period from the date of inception on July 14, 2004 to June 30, ~~2013~~2014.

Consolidated Statements of Cash Flows for the years ended June 30, ~~2013~~2014, June 30, ~~2012~~2013 and June 30, ~~2011~~2012 and for the period from the date of inception on July 14, 2004 to June 30, ~~2013~~2014.

Consolidated Statements of Changes in Stockholders' Deficiency for the years ended June 30, ~~2013~~2014, June 30, ~~2012~~2013 and June 30, ~~2011~~2012 and for the period from the date of inception on July 14, 2004 to June 30, ~~2013~~2014.

Notes to Consolidated Financial Statements.

James Stafford James Stafford, Inc. Chartered Accountants Suite 350 - 1111 Melville Street Vancouver, British Columbia Canada V6E 3V6 Telephone +1 604 669 0711 Facsimile +1 604 669 0754 www.~~jamesstafford~~JamesStafford.ca

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders' of Molecular Pharmacology (USA) Limited (A Development Stage Company)

We have audited the accompanying consolidated balance sheets of Molecular Pharmacology (USA) Limited (A Development Stage Company) (the "Company") as at 30 June ~~2013~~2014 and ~~2012~~2013 and the related consolidated statements of operations, cash flows and changes in stockholders' deficiency for each of the years in the three-year period ended 30 June ~~2013~~2014. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States of America). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit ~~also~~ includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as, evaluating the overall financial statement presentation. We believe our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as at 30 June ~~2013~~2014 and ~~2012~~2013 and the results of its operations and its cash flows for each of the years in the three-year period ended 30 June ~~2013~~2014 in conformity with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, conditions exist which raise substantial doubt about the Company's ability to continue as a going concern unless it is able to generate sufficient cash flows to meet its obligations and sustain its operations. Management's plans regarding those matters are also described in Note 1. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ James Stafford

Chartered Accountants

Vancouver, Canada

919 August ~~2013~~2014

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

Consolidated Financial Statements(AExpressed ~~Development~~in ~~Stage~~U.S. ~~Company~~Dollars)

~~Consolidated~~30 ~~Financial~~June ~~Statements~~2014

(Expressed in U.S. Dollars)

30 June 2013

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

Molecular Pharmacology (USA) Limited

	As at 30 June 2014	As at 30 June 2013
	$	$
Assets

Current
Cash and cash equivalents	2,378	7,046
Amounts receivable	6,493	5,070

	8,871	12,116

Equipment (Note 5)	97	140

	8,968	12,256

Liabilities

Current
Accounts payable and accrued liabilities (Note 6)	34,526	21,628

Due to related parties (Note 7)	2,207,296	2,044,501

	2,241,822	2,066,129

Stockholders’ deficiency
Capital stock (Note 8)
Authorized
300,000,000 common shares, par value $0.001
Issued and outstanding
30 June 2014 – 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	(272,239)	(210,186)
Deficit, accumulated during the development stage	(2,178,876)	(2,061,948)

	(2,232,854)	(2,053,873)

	8,968	12,256

Nature and Continuance of Operations (ANote ~~Development~~1), ~~Stage~~Commitment ~~Company~~ (Note 14) and Subsequent Event (Note 15)

Consolidated Balance Sheets

(Expressed in U.S. Dollars)

	As at 30 June 2013	As at 30 June 2012
	$	$
Assets
Current
Cash and cash equivalents	7,046	2,572
Amounts receivable	5,070	5,110
	12,116	7,682
Equipment (Note 5)	140	1,159
	12,256	8,841
Liabilities
Current
Accounts payable and accrued liabilities (Note 6)	21,628	19,252
Due to related parties (Note 7)	2,044,501	2,069,448
	2,066,129	2,088,700
Stockholders’ deficiency
Capital stock (Note 8)
Authorized
300,000,000 common shares, par value $0.001
Issued and outstanding
30 June 2013 – 111,553,740 common shares, par value $0.001
30 June 2012 – 111,553,740 common shares, par value $0.001	111,554	111,554
Additional paid-in capital	106,707	106,707
Cumulative translation adjustment	(210,186)	(446,072)
Deficit, accumulated during the development stage	(2,061,948)	(1,852,048)
	(2,053,873)	(2,079,859)
	12,256	8,841

Nature and Continuance of Operations (Note 1) and Subsequent Event (Note 14)

On behalf of the Board:

/s/ Jeffrey Edwards ~~Director~~ DirectorJeffrey Edwards

Jeffrey Edwards

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

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

Molecular Pharmacology (USA) Limited

	For the period from the date of inception on 14 July 2004 to 30 June 2014 (Unaudited)	For the year ended 30 June 2014	For the year ended 30 June 2013	For the year ended 30 June 2012
	$	$	$	$

Expenses
Advertising and promotion	23,739	-	-	-
Amortization (Note 5)	6,930	43	196	449
Analysis	33,947	-	-	-
Consulting (Note 7)	1,461,520	37,156	134,223	100,624
Office and miscellaneous (Note 7)	277,328	30,467	28,328	22,617
Professional fees	447,967	42,430	45,954	48,607
Public relations	3,656	-	-	-
Rent (Note 7)	27,759	-	-	-
Salaries and benefits	44,464	-	-	-
Transfer agent and filing fees	24,004	6,832	-	-
Travel	111,710	-	376	7,085

Net loss before other items	(2,463,024)	(116,928)	(209,077)	(179,382)

Other items
Export market development grants	69,629	-	-	-
Write-off of equipment (Note 5)	(823)	-	(823)	-
Interest income	2,322	-	-	-
Research and development tax refund	213,020	-	-	-

Net loss for the year	(2,178,876)	(116,928)	(209,900)	(179,382)

Basic and diluted loss per common share		(0.001)	(0.002)	(0.002)

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

Comprehensive income (loss)
Net loss for the year	(2,178,876)	(116,928)	(209,900)	(179,382)
Foreign currency translation adjustment	(272,239)	(62,053)	235,886	66,215

Total comprehensive income (loss) for the year	(2,451,115)	(178,981)	25,986	(113,167)

Basic and diluted comprehensive income (loss) per common share		(0.002)	0.000	(0.001)

(A Development Stage Company)

Consolidated Statements of Operations

(Expressed in U.S. Dollars)

	For the period from the date of inception on 14 July 2004 to 30 June 2013 (Unaudited)	For the year ended 30 June 2013	For the year ended 30 June 2012	For the year ended 30 June 2011
	$	$	$	$
Expenses
Advertising and promotion	23,739	-	-	-
Amortization (Note 5)	6,887	196	449	589
Analysis	33,947	-	-	-
Consulting (Note 7)	1,424,364	134,223	100,624	52,690
Office and miscellaneous (Note 7)	246,861	28,328	22,617	24,761
Professional fees	405,537	45,954	48,607	42,142
Public relations	3,656	-	-	-
Rent (Note 7)	27,759	-	-	-
Salaries and benefits	44,464	-	-	-
Transfer agent and filing fees	17,172	-	-	1,678
Travel	111,710	376	7,085	-
Net loss before other items	(2,346,096)	(209,077)	(179,382)	(121,860)
Other items
Export market development grants	69,629	-	-	-
Write-off of equipment (Note 5)	(823)	(823)	-	-
Interest income	2,322	-	-	-
Research and development tax refund	213,020	-	-	-
Net loss for the period	(2,061,948)	(209,900)	(179,382)	(121,860)
Basic and diluted loss per common share		(0.002)	(0.002)	(0.001)
Weighted average number of common shares used in per share calculations		111,553,740	111,553,740	111,553,740
Comprehensive income (loss)
Net loss for the period	(2,061,948)	(209,900)	(179,382)	(121,860)
Foreign currency translation adjustment	(210,186)	235,886	66,215	(357,962)
Total comprehensive income (loss) for the period	(2,272,134)	25,986	(113,167)	(479,822)
Basic and diluted comprehensive income (loss) per common share		0.000	(0.001)	(0.004)

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

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

(A Development Stage Company)

	For the period from the date of inception on 14 July 2004 to 30 June 2014 (Unaudited)	For the year ended 30 June 2014	For the year ended 30 June 2013	For the year ended 30 June 2012
	$	$	$	$

Cash flows used in operating activities
Net loss for the period	(2,178,876)	(116,928)	(209,900)	(179,382)
Adjustments to reconcile net loss to cash used by operating activities
Amortization	6,930	43	196	449
Write-down of intangible assets	1,278	-	-	-
Write-off of equipment	823	-	823	-
Changes in operating assets and liabilities
Decrease (increase) in amounts receivable	(4,267)	(1,423)	40	1,496
Increase (decrease) in accounts payable and accrued liabilities	(12,891)	12,898	2,376	(800)

	(2,187,003)	(105,410)	(206,465)	(178,237)

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	2,199,088	162,795	(24,947)	105,919

	2,433,585	162,795	(24,947)	105,919

Effect of exchange rate changes on cash	(272,239)	(62,053)	235,886	66,215

Increase (decrease) in cash and cash equivalents	2,378	(4,668)	4,474	(6,103)

Cash and cash equivalents, beginning of year	-	7,046	2,572	8,675

Cash and cash equivalents, end of year	2,378	2,378	7,046	2,572

Consolidated Statements of Cash Flows

(Expressed in U.S. Dollars)

	For the period from the date of inception on 14 July 2004 to 30 June 2013 (Unaudited)	For the year ended 30 June 2013	For the year ended 30 June 2012	For the year ended 30 June 2011
	$	$	$	$
Cash flows used in operating activities
Net loss for the period	(2,061,948)	(209,900)	(179,382)	(121,860)
Adjustments to reconcile net loss to cash used by operating activities
Amortization	6,887	196	449	589
Write-down of intangible assets	1,278	-	-	-
Write-off of equipment (Note 5)	823	823	-	-
Changes in operating assets and liabilities
Increase (decrease) in amounts receivable	(2,844)	40	1,496	(5,126)
Decrease (increase) in accounts payable and accrued liabilities	(25,789)	2,376	(800)	(759)
	(2,081,593)	(206,465)	(178,237)	(127,156)
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	2,036,293	(24,947)	105,919	485,818
	2,270,790	(24,947)	105,919	485,818
Effect of exchange rate changes on cash	(210,186)	235,886	66,215	(357,962)
Increase (decrease) in cash and cash equivalents	7,046	4,474	(6,103)	700
Cash and cash equivalents, beginning of period	-	2,572	8,675	7,975
Cash and cash equivalents, end of period	7,046	7,046	2,572	8,675

Supplemental Disclosures with Respect to Cash Flows (Note 12)

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

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

(A Development Stage Company)

	Number of common shares issued		Capital stock		Additional paid-in capital		Deficit, accumulated during the development stage		Cumulative translation adjustment		Stockholders’ deficiency
				$		$		$		$		$

Balance at 14 July 2004 (inception)		294		-		1		-		-		1
Net loss for the period		-		-		-		(128,488)		-		(128,488)
Cumulative translation adjustment		-		-		-		-		(6,536)		(6,536)

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

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

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

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

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

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

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

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

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

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

Balance at 30 June 2014		111,553,740		111,554		106,707
(2,178,876)		(272,239)		(2,232,854)

Consolidated Statements of Changes in Stockholders’ Deficiency

(Expressed in U.S. Dollars)

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

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

Molecular Pharmacology (USA) Limited
(A Development Stage Company)
Notes to Consolidated Financial Statements
(Expressed in U.S. Dollars)
30 June 2014

Molecular Pharmacology (USA) Limited

(A Development Stage Company)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

30 June 2013

1. Nature and Continuance 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. The Company changed its name to Molecular Pharmacology (USA) Limited on 29 August 2005. At the same time, the Company completed a four for one forward split of its issued and outstanding share capital and altered its authorized share capital to 300,000,000 shares of common stock with a par value of $0.001 per share.

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

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

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

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

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

MPLA was incorporated on 14 July 2004 under the laws of Australia. The accompanying consolidated financial statements are the historical financial statements of 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.

Molecular Pharmacology (USA) Limited(A Development Stage Company)
Notes to Consolidated Financial Statements
(Expressed in U.S. Dollars)
30 June 2014

(AThe ~~Development~~Company’s ~~Stage~~consolidated financial statements as at 30 June 2014 and for the year then ended have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business. The Company has a net loss of $116,928 for the year ended 30 June 2014 (30 June 2013 – $209,900; cumulative - $2,178,876) and has working capital deficit of $25,655 at 30 June 2014 (30 June 2013 – $9,512).

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

~~(Expressed~~At in30 UJune 2014, the Company has suffered losses from development stage activities to date.S Although management is currently attempting to implement its business plan, and is seeking additional sources of equity or debt financing, there is no assurance these activities will be successful. These factors raise substantial doubt ~~Dollars)~~about the ability of the Company to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

30 June 2013

The Company’s consolidated financial statements as at 30 June 2013 and for the year then ended have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities and commitments in the normal course of business. The Company has a net loss of $209,900 for the year ended 30 June 2013 (30 June 2012 – $179,382; 30 June 2011 - $121,860; cumulative - $2,061,948) and has working capital deficit of $9,512 at 30 June 2013 (30 June 2012 – $11,570).

Management cannot provide assurance that the Company will ultimately achieve profitable operations or become cash flow positive, or raise additional debt and/or equity capital. Management believes that the Company’s capital resources should be adequate to continue operating and maintaining its business strategy during the fiscal year ended 30 June 2014. However, if the Company is unable to raise additional capital in the near future, due to the Company’s liquidity problems, management expects that the Company will need to curtail operations, liquidate assets, seek additional capital on less favorable terms and/or pursue other remedial measures. These consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

At 30 June 2013, the Company has suffered losses from development stage activities to date. Although management is currently attempting to implement its business plan, and is seeking additional sources of equity or debt financing, there is no assurance these activities will be successful. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

2. Significant Accounting Policies

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

Basis of presentation

These 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.

Principles of consolidation

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

Cash and cash equivalents

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

Molecular Pharmacology (USA) Limited
(A Development Stage Company)
Notes to Consolidated Financial Statements
(Expressed in U.S. Dollars)
30 June 2014

Equipment

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

Molecular Pharmacology (USA) Limited

(A Development Stage Company)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

30 June 2013

Segments of an enterprise and related information

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 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.

Foreign currency translation

The Company’s functional and reporting currency is U.S. dollars. The 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 consolidated financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.

Income taxes

Deferred income taxes are reported for timing differences between items of income or expense reported in the 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.

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 effect to all potentially dilutive common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive. As at 30 June 2013, the Company had no outstanding stock options or warrants.

Molecular Pharmacology (USA) Limited
(A Development Stage Company)
Notes to Consolidated Financial Statements
(Expressed in U.S. Dollars)
30 June 2014

~~Molecular~~Basic ~~Pharmacology~~ and diluted net income (~~USA~~loss) ~~Limited~~per share

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

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

30 June 2013

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 30 June ~~2013~~2014, the Company has items that represent a comprehensive loss and, therefore, has included a schedule of comprehensive loss in the 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 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 year’s presentation.

3. Changes in Accounting Policies

Effective 1 July 2012, the Company retroactively adopted the Financial Accounting Standards Board ("FASB") Accounting Standards Update ("ASU") No. 2011-12, "Comprehensive Income". This ASU effectively defers the changes in ASU No. 2011-05, "Presentation of Comprehensive Income", issued in June 2011, that relates to the presentation of reclassification adjustments out of accumulated other comprehensive income. As ASU No. 2011-12 relates only to the presentation of comprehensive income, the adoption of this update did not have a material effect on the Company’s consolidated financial statements.

Effective 1 July 2012, the Company retroactively adopted ASU No. 2011-05, "Presentation of Comprehensive Income". This ASU presents an entity with the option to present the total of comprehensive income, the components of net income, and the component of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. This update eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ deficiency. The amendments in this update do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. As ASU No. 2011-05 relates only to the presentation of comprehensive income, the adoption of this update did not have a material effect on the Company’s consolidated financial statements.

Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Consolidated Financial Statements(Expressed in U.S. Dollars)30 June 2014

(A3. Changes ~~Development~~in ~~Stage Company)~~Accounting Policies

~~Notes~~Effective 1 July 2013, the Company adopted Accounting Standards Update ("ASU") 2013-05, "Foreign Currency Matters (Topic 830) – Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Group of Assets within a Foreign Entity or of an Investment in a Foreign Entity". These amendments provide guidance on releasing cumulative translation adjustments when a reporting entity (parent) ceases to ~~Consolidated~~have a controlling ~~Financial~~financial ~~Statements~~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 a material impact on the Company’s consolidated financial statements.

Effective 1 July 2013, the Company adopted ASU 2013-04, "Liabilities (~~Expressed~~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 ~~Dollars)~~have a material impact on the Company’s consolidated financial statements.

30Effective ~~June~~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 U.S. GAAP that provide additional details about those amounts. The adoption of these amendments did not have a material impact on the Company’s consolidated financial statements.

Effective 1 July 2012, the Company retroactively adopted ASU No. 2011-04, "Fair Value Measurement" to amend the accounting and disclosure requirements on fair value measurements. This ASU limits the highest-and-best-use measure to nonfinancial assets, permits certain financial assets and liabilities with offsetting positions in market or counterparty credit risks to be measured at a net basis, and provides guidance on the applicability of premiums and discounts. Additionally, this update expands the disclosure on Level 3 inputs by requiring quantitative disclosure of the unobservable inputs and assumptions, as well as description of the valuation processes and the sensitivity of the fair value to changes in unobservable inputs. The adoption of this update did not have a material effect on the Company’s consolidated financial statements.

4. Recent Accounting Pronouncements

Certain new standards, interpretations, amendments and improvements to existing standards were issued by FASB. The new standards, amendments to standards and interpretations that have been issued and that are applicable to the Company but not effective during the year ended 30 June 2013 are as follows:

In April 2013, the FASB issued ASU 2013-07, "Presentation of Financial Statements (Topic 205) – Liquidation Basis of Accounting". These amendments require an entity to prepare its financial statements using the liquidity basis of accounting ("LBA") when liquidation is imminent. Among the requirements of LBA financial statements is that they (a) present relevant information about an entity’s expected resources in liquidation by measuring and presenting assets at the amount of the expected cash proceeds from liquidation; (b) include in its presentation of assets any items not previously recognized under U.S. GAAP but that is expected to sell in liquidation or use in settling liabilities; (c) recognize and measure an entity’s liabilities in accordance with U.S. GAAP that otherwise applies to those liabilities; and (d) disclose and entity’s plan for liquidation, the methods and significant assumptions used to measure assets and liabilities, the type and amount of costs and income accrued, and the expected duration of the liquidation process. These amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after 15 December 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted. The adoption is not expected to have an impact on the Company’s consolidated financial statements in its present condition.

In March 2013, the FASB issued ASU 2013-05, "Foreign Currency Matters (Topic 830) – Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Group of Assets within a Foreign Entity or of an Investment in a Foreign Entity". These amendments provide guidance on releasing cumulative translation adjustments when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or a group of assets that is a non-profit activity or a business within a foreign entity. In addition, these amendments provide guidance on the release of cumulative translation adjustments in partial sales of equity method investments and in step acquisitions. The amendments are effective for fiscal years and interim reporting periods within those years, beginning after 15 December 2013. The amendments should be applied prospectively to derecognition events occurring after the effective date. Prior periods should not be adjusted. Early adoption is permitted. If an entity elects to early adopt the amendments, it should apply them as of the beginning of the entity’s fiscal year of adoption. The adoption of these amendments is not expected to have a material effect on the Company’s consolidated financial statements.

Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Consolidated Financial Statements(Expressed in U.S. Dollars)30 June 2014

(A4. Recent ~~Development~~Accounting ~~Stage Company)~~Pronouncements

~~Notes~~Certain tonew ~~Consolidated~~standards, interpretations, amendments and improvements to existing standards were issued by Financial ~~Statements~~Accounting Standards Board ("FASB"). The new standards, amendments to standards and interpretations that have been issued and that are applicable to the Company but not effective during the year ended 30 June 2014 are as follows:

In July 2013, the FASB issued ASU 2013-11, "Income Taxes (~~Expressed~~Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carry-forward, a Similar Tax Loss, or a Tax Credit Carry-forward Exist". These amendments require that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in Uthe financial statements as a reduction to a deferred tax asset for a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward except as follows.S To the extent a net operating loss carry-forward, a similar tax loss, or a tax credit carry-forward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from a disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. These ~~Dollars)~~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.

30In ~~June~~May ~~2013~~2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers". The update is intended to improve the financial reporting requirements for revenue from contracts with customers by providing a principle based approach. The core principal of the standard is that revenue should be recognized when the transfer of promised goods or services is made in an amount that the entity expects to be entitled to in exchange for the transfer of goods and services. ASU 2014-09 also requires disclosures enabling users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This standard will be effective for financial statements issued by public companies for annual reporting periods beginning after 15 December 2016. Early adoption is not permitted. The adoption is not expected to have a material impact on the Company’s consolidated financial statements.

In February 2013, the FASB issued 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. Examples of obligations within this guidance are debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The amendments are effective for fiscal years, and interim periods within those years, beginning after 15 December 2013. These amendments shall be applied retrospectively to all prior periods presented for those obligations within the scope of this Subtopic that exist at the beginning of an entity’s fiscal year of adoption. Early adoption is permitted. The adoption of these amendments is not expected to have a material effect on the Company’s consolidated financial statements.24

~~In February 2013, the FASB issued ASU 2013-02, "Comprehensive Income (Topic 220) – Reporting of Amounts~~ ~~Reclassified out of Accumulated Other Comprehensive Income". The amendments do not change the current~~ ~~requirements~~Molecular ~~for reporting net income or other comprehensive income in~~Pharmacology ~~financial~~(USA) ~~statements~~Limited(A ~~but~~Development ~~require an entity to provide information about the~~Stage ~~amounts~~Company)Notes ~~reclassified out of accumulated other comprehensive income by component. In addition, an entity is required~~ to ~~present, either on the face of~~Consolidated ~~the~~Financial ~~statement~~Statements(Expressed ~~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~~Dollars)30 ~~same~~June 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 amendments are effective prospectively for fiscal years, and interim periods within those years, beginning after 15 December 2013. Early adoption is permitted. The adoption of these amendments is not expected to have a material effect on the Company’s consolidated financial statements.2014

5. Equipment

Net Book Value Cost Accumulated amortization As at 30 June 2013 As at 30 June 2012 $ $ $ $ Office equipment 864 724 140 1,159

			Net Book Value
	Cost	Accumulated amortization	As at 30 June 2014	As at 30 June 2013
	$	$	$	$

Office equipment	864	767	97	140

During the year ended 30 June ~~2013~~2014, the total additions to equipment were $Nil (30 June ~~2012~~2013 – $Nil) ~~and equipment with a carrying value of $823 was written off (30 June 2012 - $Nil)~~.

During the year ended 30 June 2014, the Company recorded a write-off of equipment of $Nil (30 June 2013 - $823)

6. Accounts Payable and Accrued Liabilities

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

Molecular Pharmacology (USA) Limited

(A Development Stage Company)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

30 June 2013

7. Due to Related Parties and Related Party Transactions

As at 30 June ~~2013~~ 2014, the amount due to related parties includes $1,000 payable to a director of the Company (30 June ~~2012~~ 2013 – $1,000). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

As at 30 June ~~2013~~ 2014, the amount due to related parties includes $1855,~~009~~756 payable to a company owned by a director of the Company or an officer of PharmaNet (30 June ~~2012~~2013 – $2218,~~846~~009). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

As at 30 June ~~2013~~ 2014, the amount due to related parties includes $214,~~772~~779 payable to a company owned by a director of the Company or an officer of PharmaNet (30 June ~~2012~~2013 – $12,~~101~~772). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

As at 30 June ~~2013~~ 2014, the amount due to related parties includes $157,~~252~~844 payable to a company owned by a director of the Company or an officer of PharmaNet (30 June ~~2012~~2013 - $715,~~741~~252). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

As at 30 June ~~2013~~ 2014, the amount due to related parties includes $2,~~007~~127,~~468~~917 payable to PharmaNet (30 June ~~2012~~2013 – $2,~~036~~007,~~760~~468). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

During the year ended 30 June ~~2013~~2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $33,~~582~~841 (30 June ~~2012~~2013 – $4633,~~316~~582, 30 June ~~2011~~2012 - $4346,~~786~~316, cumulative - $~~896~~930,~~178~~019).

During the year ended 30 June 2013, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued administrative fees of $24,948 (30 June 2012 – $20,449, 30 June 2011 - $22,897, cumulative - $68,294) by the Company, which have been recorded in office and miscellaneous expense.

During the year ended 30 June 2013, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $90,376 (30 June 2012 - $21,285, 30 June 2011 - $Nil, cumulative - $111,661) by the Company.

During the year ended 30 June 2013, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $Nil (30 June 2012 – $33,024, 30 June 2011 - $8,904, cumulative – $41,928) by the Company.

During the year ended 30 June 2013, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued office and miscellaneous expenses of $Nil (30 June 2012 – $Nil, 30 June 2011 - $Nil, cumulative – $80,468) by the Company.

During the year ended 30 June 2013, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued rental fees of $Nil (30 June 2012 – $Nil, 30 June 2011 - $Nil, cumulative – $12,987) by the Company.

Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Consolidated Financial Statements(Expressed in U.S. Dollars)30 June 2014

(ADuring ~~Development~~the ~~Stage~~year ended 30 June 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued administrative fees of $22,678 (30 June 2013 – $24,948, 30 June 2012 - $20,449, cumulative - $90,972) by the Company, which have been recorded in office and miscellaneous expense.

~~Notes~~During tothe ~~Consolidated~~year ~~Financial~~ended ~~Statements~~30 June 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $6,946 (30 June 2013 - $90,376, 30 June 2012 - $21,285, cumulative - $118,607) by the Company.

~~(Expressed~~During inthe ~~U.S.~~year ~~Dollars~~ended 30 June 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $Nil (30 June 2013 – $Nil, 30 June 2012 - $33,024, cumulative – $41,928) by the Company.

During the year ended 30 June 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued office and miscellaneous expenses of $Nil (30 June 2013 – $Nil, 30 June 2012 - $Nil, cumulative – $80,468) by the Company.

During the year ended 30 June ~~2013~~2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued ~~office~~ ~~and~~rental ~~miscellaneous~~fees ~~expenses~~ of $Nil (30 June ~~2012~~2013 -– $Nil, 30 June ~~2011 –~~2012 - $Nil, cumulative – $412,~~481~~987) by the Company.

During the year ended 30 June ~~2013~~2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued ~~consulting~~ ~~fees~~office and miscellaneous expenses of $~~8,473~~Nil (30 June ~~2012~~2013 - $Nil, 30 June ~~2011~~2012 - $Nil, ~~Cumulative -~~cumulative – $84,~~473~~481) by the Company.

~~Transactions~~During ~~comprising~~ the ~~amount~~year ended ~~due~~30 toJune ~~PharmaNet~~2014, ~~for~~a director of the ~~years~~Company or an officer of PharmaNet, and ~~ended~~their 30controlled entities were paid or accrued consulting fees of $Nil (30 June 2013 ~~and~~- $8,473, 30 June 2012 ~~are~~- as$Nil, ~~follows:~~cumulative - $8,473) by the Company.

Transactions comprising ~~2013 2012~~ the amount ~~$ $~~ due ~~Opening balance, beginning of year 2,036,760 1,896,625 Funds transferred~~ to ~~the Company by~~ PharmaNet ~~204,583 170,790~~ are ~~Expenses~~as paid by PharmaNet on behalf of the Company 1,004 33,852 Foreign currency translation adjustment (234,879) (64,507) Balances, end of year 2,007,468 2,036,760 follows:

The weighted average amount due to PharmaNet for the year ended 30 June 2013 was $2,160,632 (30 June 2012 - $1,816,134, 30 June 2011 - $1,660,885).

	2014	2013
	$	$

Opening balance, beginning of year	2,007,468	2,036,760
Funds transferred to the Company by PharmaNet	60,054	204,583
Expenses paid by PharmaNet on behalf of the Company	1,304	1,004
Foreign currency translation adjustment	59,091	(234,879)

Balance, end of year	2,127,917	2,007,468

The weighted average amount due to PharmaNet for the year ended 30 June 2014 was $2,047,991 (30 June 2013 - $2,160,632).

Molecular Pharmacology (USA) Limited
(A Development Stage Company)
Notes to Consolidated Financial Statements
(Expressed in U.S. Dollars)
30 June 2014

8. Capital Stock

Authorized

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

Issued and outstanding

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

Molecular Pharmacology (USA) Limited

(A Development Stage Company)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

30 June 2013

9. Segmented Information

Details on a geographic basis as at and for the ~~years~~year ended 30 ~~June~~ ~~2013~~June 2014, ~~2012~~2013 and ~~2011~~2012 are as follows:

Australia U.S.A. Total $ $ $ 2013 Current assets 12,116 - 12,116 Long-term assets 140 - 140 Loss for the year (162,485) (47,415) (209,900) 2012 Current assets 7,682 - 7,682 Long-term assets 1,159 - 1,159 Loss for the year (130,377) (49,005) (179,382) 2011 Current assets 15,281 - 15,281 Long-term assets 1,608 - 1,608 Loss for the year (78,024) (43,836) (121,860)

		Australia	U.S.A.	Total
		$	$	$

2014	Current assets	8,871	-	8,871
	Long-term assets	97	-	97
	Loss for the year	(65,012)	(51,916)	(116,928)

2013	Current assets	12,116	-	12,116
	Long-term assets	140	-	140
	Loss for the year	(162,485)	(47,415)	(209,900)

2012	Current assets	7,682	-	7,682
	Long-term assets	1,159	-	1,159
	Loss for the year	(130,377)	(49,005)	(179,382)

10. Distribution Agreement

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

Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Consolidated Financial Statements(Expressed in U.S. Dollars)30 June 2014

(A Development Stage Company)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

30 June 2013

11. Income Taxes

Income tax expense differs from the amount that would result from applying the federal income tax rate to earnings before income taxes. During the years ended 30 June ~~2013~~2014, ~~2012~~2013 and ~~2011~~2012, these differences result from the following items:

2013 2012 2011 $ $ $ Loss before income taxes (209,900) (179,382) (121,860) Federal income tax rates 35.0% 34.0% 34.0% Income tax recovery based on the above rates (73,465) (60,990) (41,432) Increase (decrease) due to: Difference between U.S. and foreign tax rates 8,124 5,215 3,121 Change in tax rates (7,567) - - Change in valuation allowance 17,041 39,496 99,383 Foreign exchange and other 55,867 16,279 (61,072) Income tax expense - - -

	2014	2013	2012
	$	$	$

Loss before income taxes	(116,928)	(209,900)	(179,382)

Federal income tax rates	35.0%	35.0%	34.0%

Income tax recovery based on the above rates	(40,925)	(73,465)	(60,990)

Increase (decrease) due to:
Difference between U.S. and foreign tax rates	3,251	8,124	5,215
Change in tax rates	-	(7,567)	-
Change in valuation allowance	49,520	17,041	39,496
Foreign exchange and other	(11,846)	55,867	16,279

Income tax expense	-	-	-

The composition of the Company’s deferred tax assets as at 30 June ~~2013~~2014 and ~~2012~~30 June 2013 are as follows:

2013 2012 $ $ Net income tax operating loss carry-forward 2,125,274 2,101,601 Deferred tax assets 677,789 660,748 Less: Valuation allowance (677,789) (660,748) Net deferred tax asset - -

	2014	2013
	$	$

Net income tax operating loss carry-forward	2,281,689	2,125,274

Deferred tax assets	727,309	677,789
Less: Valuation allowance	(727,309)	(677,789)

Net deferred tax asset	-	-

Molecular Pharmacology (USA) Limited
(A Development Stage Company)
Notes to Consolidated Financial Statements
(Expressed in U.S. Dollars)
30 June 2014

~~Molecular~~The ~~Pharmacology~~Company has ~~(USA)~~non-capital ~~Limited~~loss carry-forwards of approximately $2,281,689 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:

(A Development Stage Company)

	$

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	51,916
No expiry	1,425,643

	2,281,689

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

30 June 2013

The Company has non-capital loss carry-forwards of approximately $2,125,274 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:

$ 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 No expiry 1,321,144 2,125,274

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.

12. Supplemental Disclosures with Respect to Cash Flows

For the period from the date of inception on 14 July 2004 to 30 June 2013 (Unaudited) For the year ended 30 June 2013 For the year ended 30 June 2012 For the year ended 30 June 2011 $ $ $ $ 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 - - -

	For the period from the date of inception on 14 July 2004 to 30 June 2014 (Unaudited)	For the year ended 30 June 2014	For the year ended 30 June 2013	For the year ended 30 June 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	-	-	-

Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Consolidated Financial Statements(Expressed in U.S. Dollars)30 June 2014

(A Development Stage Company)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

30 June 2013

13. Financial Instruments

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

The fair values of the financial instruments were determined using the following input levels and valuation techniques:

Level 1: classification is applied to any asset or liability that has a readily available quoted market price from an active market where there is significant transparency in the executed/quoted price.

Level 2: classification is applied to assets and liabilities that have evaluated prices where the data inputs to these valuations are observable either directly or indirectly, but do not represent quoted market prices from an active market.

Level 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.

The carrying values of cash and cash equivalents, amounts receivable and accounts payable approximate fair value due to the short term maturity of these financial instruments.

Credit Risk

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

Currency Risk

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

The Company’s 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.

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 $2021,~~314~~974 lower ($2021,~~314~~ 974 higher).

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

Molecular Pharmacology (USA) Limited(A Development Stage Company)Notes to Consolidated Financial Statements(Expressed in U.S. Dollars)30 June 2014

(A Development Stage Company)

Notes to Consolidated Financial Statements

(Expressed in U.S. Dollars)

30 June 2013

Interest Rate Risk

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

Liquidity Risk

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

14. ~~Subsequent Event~~ Commitment

On ~~19 July~~21 June 2013, the Company executed an agreement with a New York-based company, Dermatology Development Corporation, to develop and market a range of therapeutic, cosmetic and cosmecutical products based on the ThermaLIFE® product range and its active ingredient in the United States.

15. Subsequent Event

There are no reportable events for the period from year ended 30 June 2014 to the date that the consolidated financial statements were available to be issued.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Molecular USA had no disagreements on accounting or financial disclosure matters with its independent accountants to report under this Item 8.

Item 9A. Controls and Procedures (a) Evaluation of Disclosure Controls and Procedures

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

~~Management~~Disclosure ~~carried~~controls ~~out~~are ancontrols ~~evaluation~~and ~~(with~~procedures ~~the~~that are designed to ~~participation~~ensure ofthat information required to be disclosed in our ~~Chief~~reports ~~Executive~~filed ~~Officer~~under ~~("CEO") and~~the Exchange Act ~~Chief~~is recorded, ~~Financial~~processed, ~~Officer~~summarized ~~("CFO")~~and )reported, ofwithin the ~~effectiveness~~time ofperiods specified in the ~~design~~ SEC's rules and ~~operation~~forms. ofDisclosure ~~our~~controls ~~disclosure~~and procedures include, without limitation, controls and procedures ~~pursuant~~designed to ~~Rules 13a-15(e)~~ensure ~~and~~that ~~15d-15(e)~~information required ~~under~~to ~~the~~be ~~Securities~~disclosed ~~Exchange~~by ~~Act~~a ofcorporation ~~1934~~in ~~("Exchange Act"). Based~~the ~~upon~~reports that ~~evaluation,~~it files or submits under the ~~Corporation’s~~Exchange ~~CEO~~Act ~~and~~is ~~CFO~~accumulated ~~have~~and ~~concluded that~~communicated to the ~~Corporation~~corporation's management, ~~disclosure~~including ~~controls~~its principal executive and ~~procedures~~principal ~~were~~financial ~~effective~~officers, or persons performing similar functions, as ofappropriate ~~June~~to allow timely ~~30,~~decisions ~~2013~~regarding required disclosure.

Management' carried out an evaluation (with the participation of our Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") ), of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon that evaluation, the Corporation’s CEO ~~annual~~and ~~report~~CFO onhave ~~internal~~concluded ~~control~~that ~~over~~the Corporation's disclosure controls and ~~financial~~procedures ~~reporting~~were effective as of June 30, 2014.

(b) Internal Control Over Financial Reporting

Management's isannual ~~responsible~~report ~~for~~on ~~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:

· Management is responsible for establishing and maintaining adequate ~~pertain~~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 ~~maintenance~~reliability of ~~records~~financial ~~that,~~reporting and the preparation of financial statements for external purposes in ~~reasonable~~accordance ~~detail,~~with ~~accurately~~U.S. ~~and~~GAAP. ~~fairly~~Our ~~reflect~~internal ~~the~~control over financial ~~transactions~~reporting ~~and~~should ~~dispositions~~include ofthose ~~our~~policies ~~assets;~~and procedures that:

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

~~· provide~~Because ~~reasonable~~of ~~assurance~~its inherent limitations, internal control over financial ~~regarding~~reporting ~~prevention~~may ornot ~~timely~~prevent ~~detection~~or ofdetect ~~unauthorized~~misstatements. ~~acquisition~~Also, ~~use~~projections orof any ~~disposition~~evaluation of ~~our~~effectiveness ~~assets~~to future periods are subject to the risk that controls ~~could~~may ~~have~~become ainadequate ~~material~~because ~~effect~~of onchanges ~~the~~in ~~financial~~conditions, or that the ~~statements~~degree of compliance with the policies or procedures may deteriorate.

~~Because~~As required by Rule 13a-15(c) promulgated under the Exchange Act, Management, with the participation of ~~its~~our ~~inherent~~CEO ~~limitations~~and CFO, evaluated the effectiveness of our internal control over financial reporting ~~may~~as ~~not~~of ~~prevent~~June or30, ~~detect misstatements~~2014. ~~Also,~~Management's assessment ~~projections~~took into consideration the size and complexity of ~~any~~the corporation ~~evaluation~~and ofwas ~~effectiveness~~based toon ~~future~~criteria ~~periods~~set ~~are~~forth ~~subject~~by tothe Committee of Sponsoring Organizations of the ~~risk~~Treadway ~~that~~Commission in Internal Control over Financial ~~controls~~Reporting ~~may~~-Guidance ~~become~~for ~~inadequate~~Smaller ~~because~~Public ofCompanies. ~~changes~~In inperforming ~~conditions~~the assessment, Management orhas concluded that ~~the degree~~our ofinternal ~~compliance~~control ~~with~~over ~~the~~financial ~~policies~~reporting orwas effective ~~procedures~~as ~~may~~of ~~deteriorate~~June 30, 2014.

AsAttestation ~~required~~report ~~by Rule 13a-15(c) promulgated under the Exchange Act, Management, with the participation~~ of ~~our CEO and CFO, evaluated~~ the ~~effectiveness~~registered ~~of our~~public ~~internal~~accounting control over financial reporting as of June 30, 2013. Management's assessment took into consideration the size and complexity of the corporation 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 June 30, 2013.firm

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

This annual report does not include an attestation report of the Corporation's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Corporation's registered public accounting firm pursuant to temporary rules of the SEC that permit the Corporation to provide only Management's report in this annual report.32

32Changes in internal control over financial reporting

~~Changes~~Based on the evaluation as of June 30, 2014, Jeffrey Edwards, our President, CEO and CFO have concluded that there were no significant changes in our internal ~~control~~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 weaknesses.

Based on the evaluation as of June 30, 2013, 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 weaknesses.

Item 9A(T). Controls and Procedures

See Item 9A - Controls and Procedures above.

Item 9B. Other Information

None.

PART III

Item 10. Directors, Executive Officers and Corporate Governance

Identification of Directors and Executive Officers

The following table sets forth the names of all directors and executive officers of the Molecular USA as of September ~~August 13~~8, ~~2013~~ 2014 and June 30, ~~2013~~2014. This ~~These~~person ~~persons~~ will serve until the next annual meeting of the stockholders or until their successors are elected or appointed and qualified, or their prior resignation or termination.

Name Age Position Date Position First Held Jeffrey Edwards 62 President, Chief Executive Officer, Chief Financial Officer and Director October 28, 2005

Name	Age	Position	Date Position First Held
Jeffrey Edwards	63	President, Chief Executive Officer, Chief Financial Officer and Director	October 28, 2005

Mr. Jeffrey Edwards. Mr. Edwards has over twenty years of experience in managing new technological innovations in the medical device and pharmaceutical industry. From 2004 to 2008, Mr. Edwards was a director of Global Energy Medicine Pty Ltd, a private therapeutic device corporation. From 2002 to 2005, Mr. Edwards, as president and a shareholder of International Scientific Pty Ltd., managed a variety of medical and technology projects. In 2002 and 2003, Mr. Edwards was actively involved with Colltech Australia Limited ("Colltech"), a corporation involved in the production and sale of collagen. Colltech is listed on the Australian Stock Exchange ("CAU"). From its inception in 1995 to 2001, Mr. Edwards was the executive director of Genesis Biomedical Limited ("Genesis"), a pharmaceuticals and biotechnology listed on the Australian Stock Exchange ("GBL"). While at Genesis, Mr. Edwards was responsible for all medical and clinical activities of the corporation as well as all day to day management of staff and corporate activities. Mr. Edwards currently serves as a director of OBJ Limited, a drug delivery corporation listed on the Australian Stock Exchange ("OBJ") (2005). He also holds the office of Chief Operations Officer of Molecular Pharmacology Limited, a wholly owned subsidiary of Molecular USA.

Family relationshipsRelationships

Not applicable.

Significant Employees

We have no employees who are not executive officers, but who are expected to make a significant contribution to the Corporation's business.

Involvement in Certain Legal Proceedings

During the past five years, none of our directors, or persons nominated to become a director, or executive officer, promoter or control person:

· was a general partner or executive officer of any business against which any bankruptcy petition was filed, either at the time of the bankruptcy or two years prior to that time; · was convicted in a criminal proceeding or named subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); · was subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; or · as found by a court of competent jurisdiction (in a civil action), the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

· was convicted in a criminal proceeding or named subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

· was subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities; or

· as found by a court of competent jurisdiction (in a civil action), the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

Audit Committee Financial Expert

We do not have a member on our Board of Directors that has been designated as an audit committee "financial expert." We do not believe that the addition of such an expert would add anything meaningful to the Corporation at this time. It is also unlikely we would be able to attract an independent financial expert to serve on our Board of Directors at this stage of our development. In order to entice such a director to join our Board of Directors we would probably need to acquire directors’ errors and omission liability insurance and provide some form of meaningful compensation to such a director; two things we are unable to afford at this time.

Under the applicable SEC standards, an audit committee financial expert means a person who has the following attributes:

· understanding of generally accepted accounting principles and financial statements; · ability to assess the general application of such principles in connection with the accounting for estimates, accruals and reserves; · experience preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant's financial statements, or experience actively supervising one or more persons engaged in such activities; · understanding of internal controls and procedures for financial reporting; and · understanding of audit committee functions.

· ability to assess the general application of such principles in connection with the accounting for estimates, accruals and reserves;

· experience preparing, auditing, analyzing or evaluating financial statements that present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant's financial statements, or experience actively supervising one or more persons engaged in such activities;

· understanding of internal controls and procedures for financial reporting; and

· understanding of audit committee functions.

Audit Committee

Molecular USA has a designated audit committee consisting of solely of Mr. Edwards. Mr. Edwards does not meet the independent requirements for an audit committee member. Molecular USA’s audit committee is responsible for: (1) selection and oversight of our independent accountant; (2) establishing procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls and auditing matters; (3) establishing procedures for the confidential, anonymous submission by our employees of concerns regarding accounting and auditing matters; (4) engaging outside advisors; and, (5) funding for the outside auditory and any outside advisors engagement by the audit committee. Molecular USA has adopted an audit committee charter.

Disclosure Committee and Charter

Molecular USA has a disclosure committee and disclosure committee charter. Molecular USA’s disclosure committee is comprised of all of its officers and directors. The purpose of the committee is to provide assistance to the CEO and CFO in fulfilling their responsibilities regarding the identification and disclosure of material information about Molecular USA and the accuracy, completeness and timeliness of Molecular USA’s financial reports.

Compliance with Section 16(a) of the Securities Exchange Act of 1934

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires that our executive officers and directors and persons who own more than 10% of a registered class of our equity securities file with the SEC initial statements of

beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of our common stock and other equity securities, on Forms 3, 4 and 5 respectively. Executive officers, directors and greater than 10% shareholders are required by the SEC regulations to furnish us with copies of all Section 16(a) reports they file.

To the best of our knowledge, during the fiscal year ended June 30, ~~2013~~2014, all executive officers, directors and greater than 10% shareholders filed the required reports in a timely manner.

Code of Ethics

Molecular USA has adopted a code of ethics that applies to all its executive officers and employees, including its CEO and CFO. A copy of Molecular USA’s adopted code of ethics is attached to this annual report. Molecular USA undertakes to provide any person with a copy of its code of ethics free of charge. Please contact Molecular USA at 011-61-8-9443-3011 to request a copy of Molecular USA’s code of ethics. Management believes Molecular USA’s code of ethics is reasonably designed to deter wrongdoing and promote honest and ethical conduct; provide full, fair, accurate, timely and understandable disclosure in public reports; comply with applicable laws; ensure prompt internal reporting of code violations; and provide accountability for adherence to the code.

Item 11. Executive Compensation

Summary of Compensation of Executive Officers

The following table summarizes the compensation paid to our President and CEO during the last three complete fiscal years. No other officer or director received annual compensation in excess of $100,000 during the last three complete fiscal years.

SUMMARY COMPENSATION TABLE Name and Principal Position Year Salary ($) Bonus ($) Stock Awards ($) Option Awards ($) Non-Equity Incentive Plan Compensation ($) Nonqualified Deferred Compensation ($) All Other Compensation ($) Total ($) John Palermo, Corporate Secretary of PharmaNet(1) 2013 Nil Nil Nil Nil Nil Nil $157,374 $157,374 2012 Nil Nil Nil Nil Nil Nil $121,074 $121,074 2011 Nil Nil Nil Nil Nil Nil $75,587 $75,587 Jeffrey Edwards, President, CEO, CFO and Director(2) 2013 Nil Nil Nil Nil Nil Nil Nil Nil 2012 Nil Nil Nil Nil Nil Nil Nil Nil 2011 Nil Nil Nil Nil Nil Nil Nil Nil Notes: (1) Mr. John Palermo is the Corporate Secretary of PharmaNet. He is not a director nor an officer of Molecular USA. Mr. Palermo or entities controlled by him were paid or accrued consulting fees during the fiscal years ended June 30, 2013, June 30, 2012 and June 30, 2011. Mr. Palermo or entities controlled by him also were paid or accrued consulting fees and administration fees of $157,374 during the fiscal year ended June 30, 2013. (2) Mr. Jeffrey Edwards was appointed to the office of President and Chief Executive Officer of Molecular USA on July 20, 2006.

SUMMARY COMPENSATION TABLE

Name and Principal Position

Year

Salary
($)

Bonus
($)

Stock Awards
($)

Option Awards
($)

Non-Equity Incentive Plan Compensation
($)

Nonqualified Deferred Compensation
($)

All Other
Compensation
($)

Total
($)

John Palermo,
Corporate Secretary
of PharmaNet⁽¹⁾

2014

Nil

63,465

2013

Nil

$157,374

2012

Nil

$121,074

Jeffrey Edwards, President, CEO, CFO and Director⁽²⁾

2014

Nil

2013

Nil

2012

Nil

Notes:
(1)	Mr. John Palermo is the Corporate Secretary of PharmaNet. He is not a director nor an officer of Molecular USA. Mr. Palermo or entities controlled by him were paid or accrued consulting fees during the fiscal years ended June 30, 2014, 2013 and 2012. Mr. Palermo or entities controlled by him also were paid or accrued consulting fees and administration fees of $63,465 during the fiscal year ended June 30, 2014.
(2)	Mr. Jeffrey Edwards was appointed to the office of President and Chief Executive Officer of Molecular USA on July 20, 2006.

As of the date of this annual report, we have no compensatory plan or arrangement with respect to any officer that results or will result in the payment of compensation in any form from the resignation, retirement or any other termination of employment of such officer's employment with our Corporation, from a change in control of our Corporation or a change in such officer's responsibilities following a change in control.

Board of Directors Report on Executive Compensation

The Board of Directors of Molecular USA is responsible for reviewing and determining the annual salary and other compensation of the executive officers and key employees of Molecular USA. The goals of Molecular USA are to align compensation with business objectives and performance and to enable Molecular USA to attract, retain and reward executive officers and other key employees who contribute to the long-term success of Molecular USA. Molecular USA will provide base salaries to its executive officers and key employees sufficient to provide motivation to achieve certain operating goals. Although salaries are not specifically tied to performance, incentive bonuses are available to certain executive officers and key employees. In the future, executive compensation may include without limitation cash bonuses, stock option grants and stock reward grants. In addition, Molecular USA may set up a pension plan or similar retirement plans.

Molecular USA has no pension, health, annuity, insurance, profit sharing or similar benefit plans.

Stock Options/SAR Grants

During the fiscal years ended June 30, ~~2013~~2014 and June 30, ~~2012~~2013, we did not grant any stock options or stock appreciation rights to any of our directors or officers. There were no stock options exercised during the fiscal years ended June 30, ~~2013~~2014 or June 30, ~~2012~~2013, and there were no stock options or stock appreciation rights outstanding on June 30, ~~2013~~2014 or June 30, ~~2012~~2013.

Long-Term Incentive Plans/Equity Compensation Plan

There are no arrangements or plans in which we provide pension, retirement or similar benefits for directors or executive officers, except that our directors and executive officers may receive stock options at the discretion of our Board of Directors. We do not have any material bonus or profit sharing plans pursuant to which cash or non-cash compensation is or may be paid to our directors or executive officers, except that stock options may be granted at the discretion of our Board of Directors.

We have no plans or arrangements in respect of remuneration received or that may be received by our executive officers to compensate such officers in the event of termination of employment (as a result of resignation, retirement, change of control) or a change of responsibilities following a change of control, where the value of such compensation exceeds $60,000 per executive officer.

Compensation of Directors

No cash compensation was paid to any of our directors for the director's services as a director during the year ended June 30, ~~2013~~2014 or since our inception. We have no standard arrangement pursuant to which our directors are compensated for their services in their capacity as directors except for the granting from time to time of incentive stock options. The Board of Directors may award special remuneration to any director undertaking any special services on behalf of our Corporation other than services ordinarily required of a director. Other than indicated below, no director received and/or accrued any compensation for his services as a director, including committee participation and/or special assignments.

Stock Option Plans

Molecular USA has not adopted a stock option plan or long-term incentive plans at this time.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management

The following table sets forth, as at September ~~August~~8, 132014, ~~2013,~~ certain information with respect to the beneficial ownership of our common stock by each shareholder known by us to be the beneficial owner of more than five percent (5%) of our common stock, and by each of our current directors and executive officers.

Each person has sole voting and investment power with respect to the shares of common stock, except as otherwise indicated. Beneficial ownership consists of a direct interest in the shares of common stock, except as otherwise indicated.

Name and Address of Beneficial Owner Amount and Nature of Beneficial Ownership(1) Percentage of Class(1) Pharmanet Group Limited Level 1 284 Oxford Street Leederville, Western Australia 6007 78.89% 78.89% Jeffrey Edwards 10 Koeppe Road, Claremont Perth, Australia 6010 0 0% Directors and Executive Officers as a Group 0 0% Notes: (1) Based on 111,553,740 shares of common stock issued and outstanding as of August 13, 2013. Except as otherwise indicated, we believe that the beneficial owners of the common stock listed above, based on information furnished by such owners, have sole investment and voting power with respect to such shares, subject to community property laws where applicable. Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Shares of common stock subject to options or warrants currently exercisable, or exercisable within 60 days, are deemed outstanding for purposes of computing the percentage ownership of the person holding such option or warrants, but are not deemed outstanding for purposes of computing the percentage ownership of any other person.

Name and Address of Beneficial Owner			Amount and Nature of Beneficial Ownership⁽¹⁾	Percentage of Class⁽¹⁾
Pharmanet Group Limited Level 1 284 Oxford Street Leederville, Western Australia 6007			78.89%	78.89%
Jeffrey Edwards 10 Koeppe Road, Claremont Perth, Australia 6010			0	0%
Directors and Executive Officers as a Group			0	0%
Notes:
	(1)	Based on 111,553,740 shares of common stock issued and outstanding as of September 8, 2014. Except as otherwise indicated, we believe that the beneficial owners of the common stock listed above, based on information furnished by such owners, have sole investment and voting power with respect to such shares, subject to community property laws where applicable. Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Shares of common stock subject to options or warrants currently exercisable, or exercisable within 60 days, are deemed outstanding for purposes of computing the percentage ownership of the person holding such option or warrants, but are not deemed outstanding for purposes of computing the percentage ownership of any other person.

Changes in Control

There are no present arrangements or pledges of the Corporation’s securities which may cause a change in control of the Corporation.

Other than as noted below, none of the following parties has, during the fiscal year ended June 30, ~~2013~~2014, had any material interest, direct or indirect, in any transaction with us or in any presently proposed transaction that has or will materially affect us:

· Any of our directors or officers; · Any person proposed as a nominee for election as a director; · Any person who beneficially owns, directly or indirectly, shares carrying more than 10% of the voting rights attached to our outstanding shares of common stock; · Any of our promoters; or · Any relative or spouse of any of the foregoing persons who has the same house as such person.

· Any person proposed as a nominee for election as a director;

· Any person who beneficially owns, directly or indirectly, shares carrying more than 10% of the voting rights attached to our outstanding shares of common stock;

· Any of our promoters; or

· Any relative or spouse of any of the foregoing persons who has the same house as such person.

As at June 30, 2013, we owe $1,000 to Jeffrey Edwards, a director and officer of Molecular USA, for monies advanced by him to us (June 30, 2012 - $1,000). The advances do not carry an interest rate, are unsecured and are due on demand.

As at June 30, 2013, the amount due to related parties include $18,009 to a corporation owned by a director of Molecular USA or an officer of PharmaNet (June 30, 2012 - $22,846).

As at June 30, 2013, the amount due to related parties includes $2,772 payable to a corporation owned by a director of Molecular USA or an officer of PharmaNet (June 30, 2012 – $1,101). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

As at June 30, 2013, the amount due to related parties includes $15,252 payable to a corporation owned by a director of Molecular USA or an officer of PharmaNet (June 30, 2012 - $7,741). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

As at June 30, 2013, we owed $2,007,468 to PharmaNet for loans advanced to us (June 30, 2012 - $2,036,760). PharmaNet owns approximately 78.89% of the common stock of Molecular USA. This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

During the fiscal year ended June 30, 2013, a director of the Corporation or an officer of PharmaNet and their controlled entities were paid or accrued consulting fees of $33,582 (June 30, 2012 - $46,316; June 30, 2011 - $43,786; cumulative - $896,178) by the Corporation.

During the year ended June 30, 2013, a director of the Corporation or an officer of PharmaNet, and their controlled entities were paid or accrued administration fees of $24,948 (June 30, 2012 - $20,449; June 30, 2011 - $22,897; cumulative - $68,186) by the Corporation.

During the year ended June 30, 2013, a director of the Corporation or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $90,376 (June 30, 2012 - $21,285; June 30, 2011 - $Nil; cumulative - $111,658) by the Corporation.

During the year ended June 30, 2013, a director of the Corporation or an officer of PharmaNet and their controlled entities were paid or accrued consulting fees of $Nil (June 30, 2012 - $33,024; June 30, 2011 - $8,904; cumulative - $41,928) by the Corporation.

During the year ended June 30, 2013, a director of Molecular USA or an officer of PharmaNet, and their controlled entities were paid or accrued office and miscellaneous expenses of $Nil (June 30, 2012 - $Nil; June 30, 2011 – $Nil; cumulative – $80,468) by the Corporation.

During the fiscal year ended June 30, 2013, a director of Molecular USA or an officer of PharmaNet, and their controlled entities were paid or accrued rental fees of $Nil (June 30, 2012 - $Nil; June 30, 2011 - $Nil; cumulative - $12,987).

During the year ended June 30, 2013, a director of Molecular USA or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $8,473 (June 30, 2012 - $Nil, June 30, 2011 - $Nil, Cumulative - $8,473).

As at the date of this annual report, we do not have any policies in place with respect to whether we will enter into agreements with related parties in the future.

Due to Related Parties and Related Party Transactions

As at June 30, 2014, 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.

As at June 30, 2014, the amount due to related parties includes $55,756 payable to a company owned by a director of the Company or an officer of PharmaNet (30 June 2013 - $18,009). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

As at June 30, 2014, the amount due to related parties includes $14,779 payable to a company owned by a director of the Company or an officer of PharmaNet (30 June 2013 - $2,772). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

As at June 30, 2014, the amount due to related parties includes $7,844 payable to a company owned by a director of the Company or an officer of PharmaNet (30 June 2013 - $15,252). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

As at June 30, 2014, the amount due to related parties includes $2,127,917 payable to PharmaNet (30 June 2013 - $2,007,468). This balance is non-interest bearing, unsecured and has no fixed terms of repayment.

During the year ended June 30, 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $33,841 (30 June 2013 - $33,582, 30 June 2012 - $46,316, cumulative - $930,019).

During the year ended June 30, 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued administrative fees of $22,678 (30 June 2013 - $24,948, 30 June 2012 - $20,449, cumulative - $90,972) by the Company, which have been recorded in office and miscellaneous expense.

During the year ended June 30, 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $6,946 (30 June 2013 - $90,376, 30 June 2012 - $21,285, cumulative - $118,607) by the Company.

During the year ended June 30, 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $Nil (30 June 2013 - $Nil, 30 June 2012 - $33,024, cumulative - $41,928) by the Company.

During the year ended June 30, 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued office and miscellaneous expenses of $Nil (30 June 2013 - $Nil, 30 June 2012 - $Nil, cumulative - $80,468) by the Company.

During the year ended June 30, 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued rental fees of $Nil (30 June 2013 - $Nil, 30 June 2012 - $Nil, cumulative - $12,987) by the Company.

During the year ended June 30, 2014, a director of the Company or an officer of PharmaNet, and their controlled entities were paid or accrued consulting fees of $Nil (30 June 2013 - $8,473, 30 June 2012 - $Nil, cumulative - $8,473) by the Company.

Director Independence

We currently do not have any independent directors, as the term "independent" is defined by the rules of the NASDAQ Stock Market (Note: Our shares of common stock are not listed on NASDAQ or any other national securities exchange and this reference is used for definition purposes only).

Item 14. Principal Accounting Fees and Services

Fees and Services

Our principal accountant, James Stafford, Chartered Accountants billed an aggregate of $2019,~~983~~853 for the fiscal year ended June 30, ~~2013~~2014 and for professional services rendered for the audit of the Corporation’s annual consolidated financial statements and review of the consolidated financial statements for the included in its quarterly reports.

The following is an aggregate of fees billed for each of the fiscal years ended June 30, ~~2013~~2014 and June 30, ~~2012~~ 2013 for professional services rendered by our principal accountants:

Fiscal year ended June 30, 2013 Fiscal year ended June 30, 2012 Audit fees* $20,983 $22,753 Audit-related fees - - Tax fees - - All other fees - - Total fees paid or accrued to our principal accountants $20,983 $22,753

	Fiscal year ended June 30, 2014	Fiscal year ended June 30, 2013

Audit fees*	$19,853	$20,983
Audit-related fees	-	-
Tax fees	-	-
All other fees	-	-
Total fees paid or accrued to our principal accountants	$19,853	$20,983

* Audit fees consist of fees related to professional services rendered in connection with the audit of our annual consolidated financial statements, and the review of the consolidated financial statements included in each of our quarterly reports on Form 10-Q.

Pre-Approval Policies and Procedures

Our policy is to pre-approve all audit and permissible non-audit services performed by the independent accountants. These services may include audit services, audit-related services, tax services and other services. Under our audit committee's policy, pre-approval is generally provided for particular services or categories of services, including planned services, project based services and routine consultations. In addition, the audit committee may also pre-approve particular services on a case-by-case basis. We approved all services that our independent accountants provided to us in the past two fiscal years.

PART IV

Item 15. Exhibits, Financial Statement Schedules

Exhibit Number and Exhibit Title

2.1 Share Purchase Agreement dated November 25, 2005 to acquire Molecular Pharmacology Limited (incorporated by reference from our Form 10-KSB Registration Statement, filed January 31, 2006) 3.1 Articles of Incorporation as Amended (incorporated by reference from our Form 10-SB Registration Statement, filed January 23, 2003) 3.2 Certificate of Amendment to Articles of Incorporation, dated July 15, 2002 (incorporated by reference from our Form 10-SB, filed January 23, 2003) 3.3 Certificate of Amendment to Articles of Incorporation, dated August 29, 2005 3.4 Bylaws (incorporated by reference from our Form 10-SB Registration Statement, filed May 2002 14.1 Code of Ethics (incorporated by reference from our Form 10-KSB Registration Statement, filed January 31, 2006) 21 Subsidiaries of Molecular USA (incorporated by reference from our Form 10-KSB Registration Statement, filed January 31, 2006) 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 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 99.1 Disclosure Committee Charter (incorporated by reference from our Form 10-KSB Registration Statement, filed January 31, 2006) 99.2 Audit Committee Charter (incorporated by reference from our Form 10-KSB Registration Statement, filed January 31, 2006)

2.1	Share Purchase Agreement dated November 25, 2005 to acquire Molecular Pharmacology Limited (incorporated by reference from our Form 10-KSB Registration Statement, filed January 31, 2006)
3.1	Articles of Incorporation as Amended (incorporated by reference from our Form 10-SB Registration Statement, filed January 23, 2003)
3.2	Certificate of Amendment to Articles of Incorporation, dated July 15, 2002 (incorporated by reference from our Form 10-SB, filed January 23, 2003)
3.3	Certificate of Amendment to Articles of Incorporation, dated August 29, 2005
3.4	Bylaws (incorporated by reference from our Form 10-SB Registration Statement, filed May 2002
14.1	Code of Ethics (incorporated by reference from our Form 10-KSB Registration Statement, filed January 31, 2006)
21	Subsidiaries of Molecular USA (incorporated by reference from our Form 10-KSB Registration Statement, filed January 31, 2006)
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	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
99.1	Disclosure Committee Charter (incorporated by reference from our Form 10-KSB Registration Statement, filed January 31, 2006)
99.2	Audit Committee Charter (incorporated by reference from our Form 10-KSB Registration Statement, filed January 31, 2006)

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MOLECULAR PHARMACOLOGY (USA) LIMITED BY: /s/ ~~Jeffery~~Jeffrey D. Edwards ~~Jeffery~~Jeffrey D. Edwards, President and Chief Executive Officer, Chief Financial Officer and Member of the Board of Directors Date: ~~August~~September 138, ~~2013~~2014

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

BY: /s/ ~~Jeffery~~Jeffrey D. Edwards ~~Jeffery~~Jeffrey D. Edwards, President and Chief Executive Officer, Chief Financial Officer and Member of the Board of Directors Date: ~~August~~September 138, ~~2013~~2014

FORWARD LOOKING INFORMATION

PART I

Item 1. Business

Business Development - Formation and Reorganization

Licensed Products

Patents & Trademarks

Manufacturing & Supply

Competition

Governmental Regulation

Environmental Compliance

Research & Development

Employees

Immediate Business Plans

Reports to Securities Holders

Item 1A. Risk Factors

Item 1B. Unresolved Staff Comments

Item 2. Properties

Item 3. Legal Proceedings

Item 4. Mine Safety Disclosures

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Dividends

Equity Compensation Plan

Recent Sales of Unregistered Securities

Item 6. Selected Financial Data

Item 7. Management Discussion and Analysis of Financial Condition and Results of Operations

20132014 Activities and Developments

Results of Operation

Liquidity and Capital Resources

Off-Balance Sheet Arrangement

Research and Development

Capital Expenditure Commitments

Strategic Acquisitions

Recent Accounting Pronouncements

Critical Accounting Policies and Estimates

Stock-based Compensation

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Item 8. Financial Statements and Supplementary Data

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9A. Controls and Procedures (a) Evaluation of Disclosure Controls and Procedures

Item 9A(T). Controls and Procedures

Item 9B. Other Information

PART III

Item 10. Directors, Executive Officers and Corporate Governance

Identification of Directors and Executive Officers

Family relationshipsRelationships

Significant Employees

Involvement in Certain Legal Proceedings

Audit Committee Financial Expert

Audit Committee

Disclosure Committee and Charter

Compliance with Section 16(a) of the Securities Exchange Act of 1934

Code of Ethics

Item 11. Executive Compensation

Summary of Compensation of Executive Officers

Board of Directors Report on Executive Compensation

Stock Options/SAR Grants

Long-Term Incentive Plans/Equity Compensation Plan

Compensation of Directors

Stock Option Plans

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management

Changes in Control

Item 13. Certain Relationships and Related Transactions, and Directors Independence

Certain Relationships and Related Transactions

Director Independence

Item 14. Principal Accounting Fees and Services

Fees and Services

Pre-Approval Policies and Procedures

PART IV

Item 15. Exhibits, Financial Statement Schedules

Exhibit Number and Exhibit Title

SIGNATURES

Filing Compare · Molecular Pharmacology (USA) Ltd.