Intellect Neurosciences CORRESP Correspondence with SEC

United States Securities and Exchange Commission

100 F Street, N.E.

Washington, D.C. 20549

Attention:	Mary Mast, Staff Accountant
	Division of Corporate Finance
	Telephone Number: (202)551-3613
	Fax Number: (202)772-9217

Re:	Intellect Neurosciences, Inc.
	Form 10-KSB for the Year Ended June 30, 2008
	File No. 333-128226

VIA EDGAR AND FACSIMILE

May 22, 2009

Dear Ms. Mast:

On behalf of Intellect Neurosciences, Inc. (the “Company”), we are providing the following responses to the comments  from the Staff (the “Staff”) of the Securities and Exchange Commission provided by telephone on April 29, 2009 to Mr. Elliot Maza, President and Chief Financial Officer of the Company.

Form 10-KSB for the year ended June 30, 2008

STAFF COMMENT: We have received your response to Comment 1 contained in the Comment Letter dated March 17, 2009 from the Staff to the Company. Please provide a detailed calculation and analysis of the $33 million change in value of the derivatives, which appears to relate to the embedded derivatives in the Convertible Preferred Stock discussed in Note 9 and the Warrants discussed in Note 10.

COMPANY RESPONSE: In response to the Staff’s request regarding the calculation of the gain on derivative instruments, the Company provides the following supplemental information:

The Company calculates the gain or loss on derivative instruments by using a Black Scholes option pricing model. The Company performs a separate calculation for each derivative instrument. These calculations take into account, among other things, each instrument’s specific issue date and remaining term. Our calculations and analysis, including a calculation of the total net loss from changes in fair value of the derivatives for the quarter ended June 30, 2008, are attached hereto as Exhibit A and supporting Schedules S-1 through S-16 and are hereby submitted to the Staff as supplemental materials.

The Company performs these calculations each quarter in preparation of its required financial filings. The Company’s calculation models are complex but readily understood by Company management and the Company’s independent auditors because these persons have obtained a familiarity with the models and calculations through frequent reviews. Revisions of these models and calculations to the format contained in Exhibit A and supporting Schedules S-1 through S-16 attached hereto is a laborious process. Preparation of these materials for each quarter of fiscal 2008 would strain the resources of the Company’s small accounting department. Accordingly, we respectfully request that the Staff accept our detailed calculations underlying the loss on derivatives for the fourth quarter of fiscal 2008 as a sufficient response to the Staff’s comment above. We will provide similar support for the remaining quarters of fiscal 2008 if the Staff determines that it requires such additional information.

The Company acknowledges that the Company is responsible for the adequacy and accuracy of the disclosure in the filing, that Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filing, and that the Company may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States.

Please do not hesitate to call Elliot Maza at 212-448-9300 with any questions or further comments you may have regarding this filing or if you wish to discuss the responses above.

Sincerely,

INTELLECT NEUROSCIENCES, INC.

/s/ Elliot Maza

Elliot Maza

President and Chief Financial Officer

EXHIBIT A

Gain on Derivative Instruments FYE 6-30-08

	Derivative Liability Balance June 30, 2007		(Gain)/Loss recorded for quarter ending Sept 30, 2007			(Gain)/Loss recorded for quarter ending Dec 31, 2007			(Gain)/Loss recorded for quarter ending Mar 31, 2008			(Gain)/Loss recorded for quarter ending June 30, 2008			Supporting Schedule		Initial Valuation of New Warrants Issued During the Year		Total Derivative Liability Balance June 30, 2008			Warrant Liability June 30, 2008		Pref Stock Liability June 30, 2008
Note Warrant Liability		14,423,756		(14,001,445	)		(826,193	)		(148,648	)		572,764			S-1		1,383,529		1,403,763
Preferred Stock Warrant Liability		7,349,311		(6,525,555	)		(402,800	)		(71,545	)		248,383			S-2		-		597,794			2,001,557
Preferred Stock liability		14,927,546		(12,309,439	)		(872,688	)		(91,861	)		780,825			S-3		-		2,434,383					2,434,383
Total Derivative Liability (Gain) / Loss		36,700,613		(32,836,439	)		(2,101,681	)		(312,054	)		1,601,972			S-1		1,383,529		4,435,940			2,001,557		2,434,383
Quarterly Change in Derivative Liabilities				(32,836,439	)		(2,101,681	)		(312,054	)		1,601,972							(33,648,202	)
																			Change for the Year
Cumualtive Change in Derivative Liability		23,242,752		(9,593,687	)		(11,695,368	)		(12,007,422	)		(10,405,450	)
Stock price for Black Scholes calculation		3.25		0.57			0.38			0.36			0.53

Summary Reconciliation
Deivative Liability Balance - June 30, 2007	$	36,700,613
Valuation of new Warrants issued during the year		1,383,529
Changes in derivative liability during the year		(33,648,202	)
Deivative Liability Balance - June 30, 2008	$	4,435,940

Schedule S-1

Breakdown of Total Derivative (Gain)/Loss for the Quarter ended June 30, 2008

Preferred Stock Warrant Liability	248,383		From S-2
Preferred Stock Liability	780,825		From S-3
Note Warrant Liability
Sandgrain	50,372		From S-4
Tiegman	2,021		From S-5
Extension	11,169		From S-6
Duff	3,149		From S-7
EGAN	14,540		From S-8
Barros	945		From S-9
Turk	1,613		From S-10
Moore	1,937		From S-11
Strategic Biotech # 1	2,112		From S-12
Strategic Biotech # 2	2,934		From S-13
Strategic Biotech # 3	(1,487	)	From S-14
Q4 07 Notes	225,193		From S-15
Original Bridge notes	258,266		From S-16
Total Note Warrant Liability	572,764		To Exhibit A
Total Derivative (Gain) / Loss for the Quarter	1,601,972		To Exhibit A

Schedule S-2

Preferred Stock Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry

Account Name	dr		cr
Warrant Liability		-		248,385
Unrealized Loss		248,385		-

Black-Scholes Option Pricing Model

	6/30/2008
	Longview Pref 2.5 – Feb 2006			Longview Pref 1.75 – May 2006			All April '06 Pref Issues			All May '06 Pref Issues			All July '06 Pref Issues			All Oct. '06 Pref Issues			Total
Closing Stock price 6/30/08	$	0.5300		$	0.5300		$	0.5300		$	0.5300		$	0.5300		$	0.5300
Warrant Exercise price	$	1.75		$	1.75		$	1.75		$	1.75		$	1.75		$	1.75
Remianing term to expiration (yrs)		2.61			2.87			2.80			2.87			3.03			3.28
Risk-free rate		3.65	%		3.65	%		3.65	%		3.65	%		3.65	%		3.65	%
Volatility		1.00			1.00			1.00			1.00			1.00			1.00
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Option value	$	0.18		$	0.20		$	0.20		$	0.20		$	0.21		$	0.23
Black-Scholes Option value	$	0.18		$	0.20		$	0.20		$	0.20		$	0.21		$	0.23
Warrants Outstanding		750,000			725,080			592,790			792,191			136,693			50,000			3,046,754
Value of Warrants Outstanding		137,536			145,199			116,260			158,638			28,833			11,291			597,757
Calculation date	6/30/2008			6/30/2008			6/30/2008			6/30/2008			6/30/2008			6/30/2008
Warrant expiration date	2/9/2011			5/12/2011			4/19/2011			5/12/2011			7/12/2011			10/9/2011
													Balance per G/L			9/30/2007				823,756
													Balance per G/L			12/31/2007				420,956
													Balance per G/L			3/31/2008				349,372
													6/30/2008			Adjustment				248,385	To Schedule S-1
	Do not make any changes below this line but copy all rows (4-31) to add extra columns.
		0.128506253			0.202606206			0.184677553			0.202606206			0.248429751			0.311275941
		0.395661804			0.390837592			0.392196836			0.390837592			0.386819461			0.38007568
		0.959002476			0.936855028			0.942119316			0.936855028			0.923663698			0.906164683
		0.551136059			0.580284635			0.573266385			0.580284635			0.598101372			0.622201753
		0.292102111			0.307550856			0.303831184			0.307550856			0.316993727			0.329766929
		-1.488187481			-1.49024743			-1.489460949			-1.490247428			-1.493085886			-1.498893202
		0.131823744			0.131419967			0.131574047			0.131419967			0.130864707			0.129732719
		0.668862619			0.668556179			0.668673143			0.668556179			0.668134388			0.667273084
		0.068345073			0.068073999			0.068177395			0.068073999			0.067701841			0.066945329
		0.108721031			0.107298119			0.107708538			0.107298119			0.106062565			0.103948137

				Term to Maturity at
Issue Date	Calendar days		Maturity Date	6/30/2008
2/9/2006		1825	2/8/2011		2.6110
4/19/2006		1825	4/18/2011		2.8000
05/12/06		1825	5/11/2011		2.8630
7/12/2006		1825	7/11/2011		3.0301
10/9/2006		1825	10/8/2011		3.2740

Schedule S-3

Preferred Stock Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry

Account Name	dr		cr
Pref Stock Liability			$	780,825.47
Unrealized Loss	$	780,825.47

Revaluation of the Series B Preferred Stock Liability
June 30, 2007 Balance		14,927,545.75
4,593,091 shares		4,593,091.00
Stock price at 9/30/2007	$	0.57
Fair value at 9/30/2007	$	2,618,061.87
Adjustment for Q1 FY2008				$	12,309,483.88
4,593,091 shares		4,593,091.00
Stock price at 12/31/2007	$	0.38
Fair value at 12/30/2007	$	1,745,374.58
Adjustment - fair value per G/L on 9/30/2007 was 2,618,106.87 not 2,618,061.87 per above	$	(45.00	)
Balance per G/L 12/31/2007	$	(1,745,419.58	)
Adjustment for Q2 2008				$	(872,687.29	)	$	13,182,171	6 months
4,593,091 shares	$	4,593,091.00
Stock price at 3/31/08	$	0.36
Fair value at 3/31/2008	$	1,653,512.76
Adjustment for Q3 2008				$	(91,861.82	)		13,274,033	9 months
4,593,091 shares	$	4,593,091.00
Stock price at 6/30/08	$	0.53
Fair value at 6/30/2008	$	2,434,338.23
Adjustment for Q4 2008				$	780,825.47			12,493,208	12 months
				To Schedule S-1

Schedule S-4

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note Warrant Liability			$	50,372.00
Unrealized Loss	$	50,372.00

Sandgrain Notes

Black-Scholes Option Pricing Model

	July 5, 2007 (Issue Date				June 30, 2008
Stock price	$	2.80			$	0.53
Warrant Exercise price	$	1.75			$	1.75
Term		5.00				4.02
Risk-free rate		4.88	%			3.34	%
Volatility		1.00				1.00
Dividend yield		0.0	%			0.0	%
Option value	$	2.30			$	0.27
Sandgrain warrants outstanding		485,714.00				485,714.00
FMV		1,116,251				128,807			-
						160,379		Sept. 30 amount
						90,308		Dec. 31 amount
						78,435		March 08 amount
						128,807		June 08 amount
				Adjustment		50,372		To Schedule S-1
Do not make any changes below this line but copy all rows (4-31) to add extra columns.
		1.437346119				0.472966227
		0.142001101				0.356726085
		0.676515866				0.864049072
		0.924697229				0.681870358
		2.589152242				0.36139129
		-0.798721859				-1.531139148
		0.289987681				0.123547191
		0.790069895				0.662530682
		0.212228296				0.062863144
		0.29098693				0.096199753

Time remaining at	Expiration	Years
6/30/2008	7/5/2012		4.02

Schedule S-5

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note warrant Liability			$	2,020.56
Unrealized Loss	$	2,020.56

Teigman Notes

Black-Scholes Option Pricing Model

	July 9th, 2007			Dec-07			Mar-08			Jun-08
Stock price	$	2.58		$	0.38		$	0.36		$	0.53
Warrant Exercise price	$	1.75		$	1.75		$	1.75		$	1.75
remaining Term		5.00			4.53			4.28			4.28
Risk-free rate		4.88	%		3.44	%		2.48	%		3.34	%
Volatility		1.00			1.00			1.00			1.00
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%
Option value	$	2.10		$	0.19		$	0.16		$	0.28
Outstanding warrants - Tiegman (and Schwalbe)		17,400.00			17,400.00			17,400.00			17,400.00
FMV		36,458			3,241			2,818			4,839
Do not make any changes below this line but copy all rows (4-31) to add extra columns.
		1.400750622			0.419865027			0.321380411			0.526126004
		0.149570162			0.365283376			0.378862772			0.34737763
		0.682133959			0.877441977			0.90341286			0.851044754		Sept. 30 amount	5,817
		0.919363634			0.66269858			0.62603535			0.700588143		Dec. 31 amount	3,241
													March 08 amount	2,818
													June 08 amount	4,839
		2.371958177			0.251825461			0.225372726			0.371311716		Adjustment	2,020.56	To Schedule S-1
		-0.835317355			-1.708514638			-1.747435675			-1.542690083
		0.281445607			0.092694173			0.086665079			0.121373237
		0.782543015			0.637604011			0.632383302			0.660848246
		0.201770125			0.043771801			0.040283459			0.061448996
		0.276647696			0.065547402			0.063396758			0.093211517

Time remaining at	Expiration	Years
6/30/2008	7/9/2012		4.03

Schedule S-6

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note warrant Liability			$	11,168.55
Unrealized Loss	$	11,168.55

Extension Warrants

Black-Scholes Option Pricing Model

	July 21, 2007			Dec. 31 2007			March 31, 2008			Jun-08
Stock price	$	2.29		$	0.38		$	0.36		$	0.53
Warrant exercise price	$	1.75		$	1.75		$	1.75		$	1.75
remaining Term		5.00			4.56			4.31			4.06
Risk-free rate		4.88	%		3.44	%		2.48	%		3.34	%
Volatility		1.00			1.00			1.00			1.00
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%
Option value	$	1.83		$	0.19		$	0.16		$	0.27
Extension warrants outstanding		107,003.00			107,003.00			107,003.00			107,003.00
FMV		195,801			20,044			17,442			28,611
Do not make any changes below this line but copy all rows (4-31) to add extra columns.
		1.347425955			0.425989285			0.327843583			0.482010034
		0.160941089			0.364338474			0.378068743			0.355188953
		0.690489382			0.875876206			0.901661444			0.86180873		Sept. 30 amount	35,916
		0.911087513			0.664932539			0.62848097			0.685089421		Dec. 31 amount	20,444
													March 08 amount	17,442
		2.086390405			0.252674365			0.226253149			0.363097393		June 08 amount	28,611
													Adjustment	11,168.55	To Schedule S-1
		-0.888642023			-1.709426366			-1.748210367			-1.533002118
		0.268801832			0.092549857			0.086547812			0.123195066
		0.771828541			0.63748073			0.632280256			0.662258754
		0.187095752			0.043687383			0.040216389			0.062633365
		0.256527614			0.065353509			0.063244135			0.095707892

Time remaining at	Expiration	Years
6/30/2008	7/21/2012		4.06

Schedule S-7

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note warrant Liability			$	3,148.67
Unrealized Loss	$	3,148.67

Charles Duff

Black-Scholes Option Pricing Model

	12/27/2007			03/31/08			06/30/08
Stock price	$	0.42		$	0.36		$	0.53
Warrant Exercise price	$	1.75		$	1.75		$	1.75
Remaining Term		5.00			4.70			4.45
Risk-free rate		3.44	%		2.48	%		3.34	%
Volatility		1.00			1.00			1.00
Dividend yield		0.0	%		0.0	%		0.0	%
Option value	$	0.2301		$	0.1759		$	0.2861
Warrants outstanding		28,571.00			28,571.00			28,571.00
FMV		6,574			5,027			8,175		Adjustment	3,148.67	To Schedule S-1
Do not make any changes below this line but copy all rows (4-31) to add extra columns.
		0.556728891			0.408355194			0.559354483
		0.341669268			0.367028596			0.341169024
		0.84373447			0.88039986			0.843113125
		0.711132299			0.658484644			0.712028755
		0.298675565			0.237054472			0.37737524
		-1.67933909			-1.759593145			-1.550634805
		0.097390324			0.084837081			0.119890952
		0.641574379			0.630770027			0.659696019
		0.046543412			0.039241336			0.060490866
		0.068580021			0.061116781			0.091232348

Time remaining at	Expiration	Years
6/30/2008	7/21/2012		4.45

Schedule S-8

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note warrant Liability			$	6,195.54
Unrealized Loss	$	6,195.54

EGAN TNI

Black-Scholes Option Pricing Model

	10/25/2007			12/30/2007			3/31/08			06/30/08
Stock price	$	0.50		$	0.38		$	0.36		$	0.53
Warrant Exercise price	$	1.75		$	1.75		$	1.75		$	1.75
remaining Term		5.00			4.82			4.57			4.32
Risk-free rate		4.17	%		3.44	%		2.48	%		3.34	%
Volatility		1.00			1.00			1.00			1.00
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%
													Q4 FMV Adjustment	6,195.54
Option value	$	0.2910		$	0.20		$	0.17		$	0.28		Prior quarter adj from error in warrant count	8,344.46
Warrants Outstanding		57,143.00			57,143.00			57,143.00			57,143.00		Adjustment	14,540.00	To Schedule S-1
FMV		16,629			11,207			9,813			16,009
Do not make any changes below this line but copy all rows (4-31) to add extra columns.
		0.651003031			0.477627941			0.382208741			0.534590198
		0.322761698			0.355936563			0.370841588			0.345821728
		0.821983672			0.862892815			0.88719385			0.849010221
		0.742468614			0.683531386			0.648839155			0.703521856
		0.371234307			0.259741927			0.233582096			0.372866583
		-1.585064946			-1.717821899			-1.755547092			-1.544661511
		0.113590662			0.091227894			0.085442527			0.12100443
		0.654748688			0.636347746			0.631306017			0.660561953
		0.056473146			0.0429162			0.039585694			0.061210143
		0.080232689			0.063628225			0.061852194			0.092715058

Time remaining at	Expiration	Years
6/30/2008	10/25/2012		4.32

Schedule S-9

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note warrant Liability			$	944.57
Unrealized Loss	$	944.57

Arnaldo Barros

Black-Scholes Option Pricing Model

	12/11/2007			12/30/2007			Mar-08			Jun-08
Stock price	$	0.31		$	0.38		$	0.36		$	0.53
Warrant Exercise price	$	1.75		$	1.75		$	1.75		$	1.75
remianing Term		5.00			4.95			4.70			4.45
Risk-free rate		3.44	%		3.44	%		2.48	%		3.34	%
Volatility		1.00			1.00			1.00			1.00
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%
Option value	$	0.1543		$	0.20		$	0.18		$	0.29
Warrants outstanding		8,571.00			8,571.00			8,571.00			8,571.00
FMV		1,323			1,717			1,508			2,453		Adjustment	944.57	To Schedule S-1
Do not make any changes below this line but copy all rows (4-31) to add extra columns.
		0.420917986			0.502539672			0.408355194			0.559354483
		0.365121717			0.351617411			0.367028596			0.341169024
		0.877172372			0.856765974			0.88039986			0.843113125
		0.663083081			0.692344598			0.658484644			0.712028755
		0.205555755			0.263090947			0.237054472			0.37737524
		-1.815149991			-1.722319874			-1.759593145			-1.550634805
		0.076817463			0.090524802			0.084837081			0.119890952
		0.623501279			0.635742396			0.630770027			0.659696019
		0.034754962			0.042507582			0.039241336			0.060490866
		0.05121017			0.062741196			0.061116781			0.091232348

Time remaining at	Expiration	Years
6/30/2008	12/11/2012		4.45

Schedule S-10

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note warrant Liability			$	1,612.85
Unrealized Loss	$	1,612.85

Diane Turk

Black-Scholes Option Pricing Model

	2/27/08			03/31/08			06/30/08
Stock price	$	0.65		$	0.36		$	0.53
Warrant Exercise price	$	1.75		$	1.75		$	1.75
Remaining Term		5.00			4.92			4.67
Risk-free rate		2.78	%		2.48	%		3.34	%
Volatility		1.00			1.00			1.00
Dividend yield		0.0	%		0.0	%		0.0	%
Option value	$	0.3982		$	0.18		$	0.30
Warrants outstanding		14,286.00			14,286.00			14,286.00
FMV		5,689			2,612			4,225		Adjustment	1,612.85	To Schedule S-1
Do not make any changes below this line but copy all rows (4-31) to add extra columns.
		0.737276913			0.451172477			0.599165526
		0.304000128			0.360336546			0.333391369
		0.803038756			0.869496			0.833802767
		0.769517542			0.6740569			0.725458098
		0.500186402			0.242660484			0.384492792
		-1.498791064			-1.766934825			-1.560869988
		0.129752582			0.083745916			0.117996998
		0.667288213			0.62979978			0.658217515
		0.066958578			0.03862272			0.059273793
		0.101971155			0.059826009			0.088760958

Time remaining at	Expiration	Years
6/30/2008	2/27/2013	4.67

Schedule S-11

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note warrant Liability			$	1,937.46
Unrealized Loss	$	1,937.46

Elizabeth Moore

Black-Scholes Option Pricing Model

	2/29/08			03/31/08			06/30/08
Stock price	$	0.67		$	0.36		$	0.53
warrant Exercise price	$	1.75		$	1.75		$	1.75
Remaining Term		5.00			4.92			4.67
Risk-free rate		2.78	%		2.48	%		3.34	%
Volatility		1.00			1.00			1.00
Dividend yield		0.0	%		0.0	%		0.0	%
Option value	$	0.4136		$	0.18		$	0.30
Warrants outstanding		17,143.00			17,143.00			17,143.00
FMV		7,091			3,134			5,072		Adjustment	1,937.46	To Schedule S-1
Do not make any changes below this line but copy all rows (4-31) to add extra columns.
		0.750829877			0.451172477			0.59966604
		0.300949956			0.360336546			0.333291361
		0.800141737			0.869496			0.833687024
		0.773617655			0.6740569			0.725624951
		0.518323829			0.242660484			0.384581224
		-1.4852381			-1.766934825			-1.561003567
		0.132403045			0.083745916			0.117972397
		0.66930186			0.62979978			0.658198263
		0.068734639			0.03862272			0.059258037
		0.104675916			0.059826009			0.088729244

Time remaining at	Expiration	Years
6/30/2008	2/28/2013	4.67

Schedule S-12

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note warrant Liability			$	2,006.63
Unrealized Loss	$	2,006.63

Strategic Biotech #1

Black-Scholes Option Pricing Model

	3/17/2008			3/31/2008			6/30/08
Stock price	$	0.41		$	0.36		$	0.53
Warrant Exercise price	$	1.75		$	1.75		$	1.75
Remaining Term		5.00			4.96			4.79
Risk-free rate		2.78	%		2.48	%		3.34	%
Volatility		1.00			1.00			1.00
Dividend yield		0.0	%		0.0	%		0.0	%
Option value	$	0.2208		$	0.18		$	0.30
Warrants Outstanding		17,143.00			17,143.00			17,143.00
FMV		3,785			3,155			5,162		Q4 FMV Adjustment	2,006.63
										Prior quarter adj from error in warrant count	105.00
Do not make any changes below this line but copy all rows (4-31) to add extra columns.										Adjustment	2,111.63	To Schedule S-1
		0.531194089			0.458775236			0.621624634
		0.346448149			0.359092274			0.328852116
		0.849825372			0.867588054			0.828640558
		0.702346335			0.676791527			0.732895576
		0.287961997			0.24364495			0.388434655
		-1.704873888			-1.768330509			-1.566982229
		0.093271935			0.083539565			0.116874428
		0.638096778			0.629615669			0.657337739
		0.044110213			0.038506023			0.058556196
		0.067175401			0.059586107			0.087323246

Time remaining at	Expiration		Years
6/30/2008		3/17/2013		4.79

Schedule S-13

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note warrant Liability			$	2,934.50
Unrealized Loss	$	2,934.50

Strategic Biotech #2

Black-Scholes Option Pricing Model

	3/26/08			03/31/08			6/30/08
Stock price	$	0.37		$	0.36		$	0.53
Warrant Exercise price	$	1.75		$	1.75		$	1.75
Remaining Term		5.00			5.00			4.75
Risk-free rate		2.78	%		2.48	%		3.34	%
Volatility		1.00			1.00			1.00
Dividend yield		0.0	%		0.0	%		0.0	%
Option value	$	0.1930		$	0.19		$	0.30
Warrants Outstanding		25,714.00			25,714.00			25,714.00
FMV		4,963			4,764			7,699		Adjustment	2,934.50	To Schedule S-1
Do not make any changes below this line but copy all rows (4-31) to add extra columns.
		0.485285756			0.466324358			0.614446885
		0.354626674			0.357840567			0.330314179
		0.861000129			0.865701835			0.830283394
		0.68625195			0.679497463			0.730529704
		0.253913221			0.244619087			0.387180743
		-1.750782222			-1.769743619			-1.565002586
		0.086159269			0.08333099			0.117237313
		0.631938399			0.629429369			0.657622425
		0.039994379			0.038388161			0.058787862
		0.060907401			0.059344824			0.087785926

Time remaining at	Expiration		Years
6/30/2008		3/29/2013		4.75

Schedule S-14

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note warrant Liability	$	1,487.38
Unrealized Gain			$	1,487.38

Strategic Biotech #3

Black-Scholes Option Pricing Model

	May 1, 2008			Jun-08
Stock price	$	0.64		$	0.53
Warrant Exercise price	$	1.75		$	1.75
remaining Term		5.00			4.84
Risk-free rate		3.10	%		3.34	%
Volatility		1.00			1.00
Dividend yield		0.0	%		0.0	%
Option value	$	0.39		$	0.30
Warrants Outstanding		17,143.00			17,143.00
FMV		6,686			5,198		Adjustment	(1,487.38	)	To Schedule S-1
Do not make any changes below this line but copy all rows (4-31) to add extra columns.
		0.737498648			0.630528154
		0.303950427			0.3270241
		0.80299119			0.826611739
		0.769584954			0.735815657
		0.49253437			0.389982298
		-1.49856933			-1.569471846
		0.129795707			0.116419007
		0.66732106			0.656980065
		0.066987347			0.058265871
		0.100395716			0.086745306

Time remaining at	Expiration	Years
6/30/2008	5/1/2013		4.84

Schedule S-15

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note warrant Liability			$	225,193.29
Unrealized Loss	$	225,193.29

Revaluation of Note warrants issued in April, May and June 2007

Black-Scholes Option Pricing Model

	Warrants Issued In/On
	Apr-07			May-07			June (prior to stock listing)			June 15, 2007			June 19, 2007			June 26, 2007			June 29, 2007			Total
Stock price on 6/30/08	$	0.5300		$	0.5300		$	0.5300		$	0.5300		$	0.5300		$	0.5300		$	0.5300
Warrant Exercise price	$	1.7500		$	1.7500		$	1.7500		$	1.7500		$	1.7500		$	1.7500		$	1.7500
Remaining Term		3.80			3.92			3.94			3.96			3.97			3.99			4.00
Risk-free rate		3.34	%		3.34	%		3.34	%		3.34	%		3.34	%		3.34	%		3.34	%
Volatility		1.00			1.00			1.00			1.00			1.00			1.00			1.00
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Warrant value	$	0.254		$	0.2600		$	0.2614		$	0.2624		$	0.2630		$	0.2639		$	0.2644
Warrants issued with Promissory Notes		154,286			1,574,286			305,714			71,429			28,571			57,143			14,286			2,205,715
Value of Warrants issued	$	39,215.38		$	409,359.10		$	79,924.35		$	18,744.02		$	7,513.39		$	15,082.67		$	3,776.67			573,615.59		Value at 6/30/08
Time remaining at	6/30/2008			6/30/2008			6/30/2008			6/30/2008			6/30/2008			6/30/2008			6/30/2008
Expiration	4/18/2012			5/29/2012			6/8/2012			6/15/2012			6/19/2012			6/26/2012			6/29/2012
Years		3.80			3.92			3.94			3.96			3.97			3.99			4.00
																			Prior amt booked				434,242.08
																			Prior amt booked				5,306,330.86
																							5,740,572.94
																			Q1 2008 adjustment				(5,013,765.76	)
																			Q1 Balance				726,807.18
																			Q2 Balance				402,416.59
																			Q3 Balance				348,422.30
																			Adjustment				225,193.29		To Schedule S-1

Do not make any changes below this line but copy all rows (4-31) to add extra columns.
0.427621038	0.451723158	0.457510821	0.461541582	0.463837334	0.467841822	0.46955297
0.364084823	0.360246976	0.359300351	0.358635456	0.358254708	0.357587026	0.357300352
0.875459963	0.869357522	0.867904784	0.866895903	0.866322335	0.865323673	0.864897638
0.66552678	0.67425529	0.676337386	0.6777842	0.678607046	0.680040247	0.680651849
0.352729194	0.357355304	0.358458815	0.359225626	0.359661735	0.360421331	0.36074548
-1.522440429	-1.526930043	-1.52805352	-1.528846279	-1.529301582	-1.530102327	-1.53044703
0.125198981	0.124344889	0.124131683	0.123981365	0.12389508	0.123743414	0.123678158
0.663803348	0.663145885	0.662981566	0.662865666	0.66279912	0.662682118	0.662631763
0.063944752	0.063384714	0.06324517	0.063146848	0.063090432	0.06299131	0.062948677
0.098555885	0.097326882	0.097023789	0.096810922	0.096689034	0.096475306	0.096383549

Schedule S-16

Note Warrant Liability (Gain) / Loss

Quarter Ended June 30, 2008

Entry
Account Name	dr		cr
Note warrant Liability			$	258,266.19
Unrealized Loss	$	258,266.19

Valuation of Warrants Issued  with 2006 Promissory Notes

Black-Scholes Option Pricing Model

	Longview			Alpha - Aug 2005			Oct HCP			Alpha Nov 2005			Sep-05			Jan-06			Dec-06			Dec-06				Q1 2007		Total			Movement
																												V=Sum Q:U			W=V-P
Stock price	$	0.5300		$	0.5300		$	0.5300		$	0.5300		$	0.5300		$	0.5300		$	0.5300		$	0.5300		$	0.5300
Warrant Exercise price	$	0.8750		$	0.8750		$	0.8750		$	0.8750		$	0.8750		$	0.8750		$	1.7500		$	1.7500		$	1.7500
Remaining Term		1.83			2.17			2.25			2.34			2.17			2.51			3.45			3.48			3.75
Risk-free rate		3.34	%		3.34	%		3.34	%		3.34	%		3.34	%		3.34	%		3.34	%		3.34	%		3.34	%
Volatility		1.00			1.00			1.00			1.00			1.00			1.00			1.00			1.00			1.00
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Warrant value	$	0.208		$	0.2324		$	0.2382		$	0.2438		$	0.2326		$	0.2545		$	0.2349		$	0.2365		$	0.2514
Outstanding warrants		571,429			228,571			285,714			342,857			457,143			285,714			111,150			428,571			593,144			3,304,293
Value of Warrants issued @ 6/30/08	$	118,689.36		$	53,120.59		$	68,054.70		$	83,595.81		$	106,327.94		$	72,703.08		$	26,114.16		$	101,357.49		$	149,123.04		$	629,963.13
Time remaining at	6/30/2008			6/30/2008			6/30/2008			6/30/2008			6/30/2008			6/30/2008			6/30/2008			6/30/2008			6/30/2008
Expiration	4/30/2010			8/31/2010			10/1/2010			11/1/2010			9/1/2010			1/1/2011			12/12/2011			12/22/2011			3/30/2012
Years		1.83			2.17			2.25			2.34			2.17			2.51			3.45			3.48			3.75
													Note : 8,571 of warrants cancelled in July for noteholders with an															$	840,130.36		Sept. 30 amount
													an aggregrate face value of $30,000. ( Tiegmans and Schwalbe)															$	441,000.99		Dec. 31 amount
																												$	371,696.94		March 08 amount
																									Adjustment			$	(258,266.19	)	To Schedule S-1