10-Q

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

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2011

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from _____ to _____

Commission File Number: 000-52238

CELLCYTE GENETICS CORPORATION

(Exact name of registrant as specified in its charter)

Nevada	86-1127046
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
14205 SE 36th Street, Suite 100 Bellevue, Washington	98006
(Address of principal executive offices)	(Zip Code)
(425) 519-3755
(Registrant’s telephone number, including are code)

Indicate by checkmark 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     No    

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  [  ]   No [x]  (Not Required by smaller reporting companies.)

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer
Non-accelerated filer  (Do not check if a smaller reporting company)

Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes     No  

Indicate the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date.   74,556,405 shares of common stock outstanding as of May 13, 2011.

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CELLCYTE GENETICS CORPORATION

Quarterly Report On Form 10-Q

For The Quarterly Period Ended March 31, 2011

FORWARD-LOOKING STATEMENTS

This Form 10-Q for the quarterly period ended March 31, 2011 contains forward-looking statements that involve risks and uncertainties.  Forward-looking statements in this document include, among others, statements regarding our capital needs, business plans and expectations.  Such forward-looking statements involve assumptions, risks and uncertainties regarding, among others, the success of our business plan, availability of funds, government regulations, operating costs, our ability to achieve significant revenues, our business model and other factors.  Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements.  In some cases, you can identify forward-looking statements by terminology such as “may”, “will”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or other comparable terminology.  In evaluating these statements, you should consider various factors, including the assumptions, risks and uncertainties set forth in our Annual Report on Form 10-K for the year ended December 31, 2010 and other reports and documents we have filed with or furnished to the Securities and Exchange Commission.  These factors may cause our actual results to differ materially from any forward-looking statement made in this document.  While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding future events, our actual results will likely vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein.  The forward-looking statements in this document are made as of the date of this document and we do not intend or undertake to update any of the forward-looking statements to conform these statements to actual results, except as required by applicable law, including the securities laws of the United States.

__________

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PART I – FINANCIAL INFORMATION

Item 1.

Financial Statements

The following unaudited interim consolidated financial statements of CellCyte Genetics Corporation are included in this Quarterly Report on Form 10-Q:

Description	Page
Interim Consolidated Balance Sheets as of March 31, 2011 and December 31, 2010:	3
Interim Consolidated Statements of Operations for the Three Months ended March 31, 2011 and 2010 and for the period from January 4, 2005 (Date of Inception) to March 31, 2011:	4
Interim Consolidated Statements of Cash Flows for the Three Months ended March 31, 2011 and 2010 and for the period from January 4, 2005 (Date of Inception) to March 31, 2011:	5
Condensed Notes to Interim Consolidated Financial Statements:	6

__________

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CELLCYTE GENETICS CORPORATION
(a Development Stage Company)
CONSOLIDATED BALANCE SHEETS
			March 31,		December 31,
			2011		2010
			(unaudited)
ASSETS
CURRENT ASSETS
	Cash and cash equivalents		$	-	$	-
	Prepaid expenses and deposits			2,600		10,050
		Total Current Assets		2,600		10,050
OTHER ASSETS
	Furniture and equipment, net of depreciation			13,145		15,190
	Intellectual property, net of amortization			29,350		31,226
		Total Other Assets		42,495		46,416
TOTAL ASSETS			$	45,095	$	56,466
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
	Accounts payable		$	648,699	$	662,820
	Accrued expenses			85,802		80,268
	Due to related parties			140,704		140,704
	Note payable - current portion			74,865		32,955
		Total Current Liabilities		950,070		916,747
LONG TERM LIABILITIES
	Convertible notes - related party			22,750		22,600
	Note payable - long term portion			250,943		250,943
		Total Long Term Liabilities		273,693		273,543
COMMITMENTS AND CONTINGENCIES				-		-
STOCKHOLDERS' DEFICIT
	Common stock, $0.001 par value; 525,000,000 shares authorized,
		74,556,405 shares issued and outstanding, respectively		74,556		74,556
	Additional paid in capital			11,490,159		11,490,159
	Common stock purchase warrants			49,154		49,154
	Deficit accumulated during development the stage			(12,792,537)		(12,747,693)
		Total Stockholders' Deficit		(1,178,668)		(1,133,824)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT			$	45,095	$	56,466
See accompanying condensed notes to the interim consolidated financial statements

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CELLCYTE GENETICS CORPORATION
(a Development Stage Company)
CONSOLIDATED STATEMENTS OF OPERATIONS  (unaudited)
							From Inception
			For the Three Months Ended				(January 4, 2005)
			March 31,				to March 31,
			2011		2010		2011
REVENUES			$	-	$	-	$	-
OPERATING EXPENSES:
	Consulting			-		-		1,678,107
	General and administrative			16,449		34,204		2,476,547
	Professional fees			17,467		34,545		1,764,447
	Research, development and laboratory			-		-		1,296,619
	Salaries and benefits			-		-		1,457,524
	Stock-based compensation			-		184,000		2,861,976
		Total Operating Expenses		33,916		252,749		11,535,220
LOSS FROM OPERATIONS				(33,916)		(252,749)		(11,535,220)
OTHER INCOME (EXPENSE)
	Interest income			-		-		32,512
	Interest and finance charges			(10,928)		(8,601)		(255,540)
	Impairment of intellectual property			-		-		(568,913)
	Impairment of tenant improvements			-		-		(383,535)
	Gain on extinguishment of debt			-		-		53,547
	Loss on disposal of furniture and equipment			-		(1,592)		(135,388)
		Total Other Income (Expense)		(10,928)		(10,193)		(1,257,317)
LOSS BEFORE TAXES				(44,844)		(262,942)		(12,792,537)
INCOME TAXES				-		-		-
NET LOSS			$	(44,844)	$	(262,942)	$	(12,792,537)
BASIC AND DILUTED NET LOSS
	PER COMMON SHARE		$	(0.00)	$	(0.00)
WEIGHTED AVERAGE NUMBER OF
	SHARES OUTSTANDING FOR BASIC
	AND DILUTED CALCULATION			74,556,405		72,156,260
See accompanying condensed notes to the interim consolidated financial statements

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CELLCYTE GENETICS CORPORATION
(a Development Stage Company)
CONSOLIDATED STATEMENTS OF CASH FLOWS  (unaudited)
									From Inception
					For the Three Months Ended				(January 4, 2005)
					March 31,				to March 31,
					2011		2010		2011
CASH FLOWS FROM OPERATING ACTIVITIES:
	Net loss				$	(44,844)	$	(262,942)	$	(12,792,537)
	Adjustments to reconcile net loss to net cash used by
		operating activities
			Amortization of intellectual property			1,876		1,876		117,265
			Depreciation of furniture and equipment			2,045		16,479		541,111
			Stock-based compensation			-		184,000		2,861,976
			Non-cash services			-		6,376		957,890
			Amortization of discount on note			150		150		750
			Warrant issued for legal services			-		-		46,154
			Accounts payable paid with common stock			-		33,704		103,459
			Non-cash beneficial conversion right			-		-		36,400
			Non-cash impairment of tenant improvements			-		-		383,535
			Non-cash impairment of intellectual property			-		-		568,913
			Expenses paid by stockholder			-		-		32,755
			Accounts payable reduced in lease settlement			-		-		520,788
			Gain on extinguishment of debt			-		-		(53,547)
			Loss on disposal of furniture and equipment			-		1,592		135,388
	Decrease (increase) in assets
			Other receivables			-		4,000		-
			Prepaid expenses and deposits			7,450		6,215		(2,600)
	Increase (decrease) in liabilities
			Accounts payable			(14,121)		(5,798)		559,268
			Accrued interest			-		-		82,088
			Accrued expenses			5,534		(8,144)		85,802
				Net cash used by operating activities		(41,910)		(22,492)		(5,815,142)
CASH FLOWS FROM INVESTING ACTIVITIES:
			Intellectual property acquisition			-		-		(715,528)
			Cash from sales of equipment			-		12,500		107,465
			Furniture and equipment acquisition, net			-		-		(1,327,070)
			Cash acquired on reverse acquisition			-		-		1,429
				Net cash provided (used) by investing activities		-		12,500		(1,933,704)
CASH FLOWS FROM FINANCING ACTIVITIES:
			Proceeds from issuance of convertible notes			41,910		5,030		1,044,638
			Proceeds from convertible note allocated to warrant			-		-		3,000
			Advances from related party			-		-		112,625
			Payments on note payable			-		(2,339)		(67,306)
			Proceeds from sale of common stock			-				6,655,889
				Net cash provided by financing activities		41,910		2,691		7,748,846
	Net increase in cash and cash equivalents					-		(7,301)		-
	Cash and cash equivalents, beginning of period					-		7,301		-
	Cash and cash equivalents, end of period				$	-	$	-	$	-
SUPPLEMENTAL CASH FLOW DISCLOSURES:
	Income taxes paid				$	-	$	-	$	-
	Interest paid				$	3,614	$	3,614	$	22,563
NON CASH INVESTING AND FINANCING ACTIVITES
	Note payable to related party converted to common stock				$	-	$	-	$	36,400
	Issuance of note for insurance				$	-	$	-	$	46,875
	Issuance of note in exchange for accounts payable				$	-	$	-	$	275,000
See accompanying condensed notes to the interim consolidated financial statements

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CELLCYTE GENETICS CORPORATION

(A DEVELOPMENT STAGE COMPANY)

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2011

(unaudited)

NOTE 1 – DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

CellCyte Genetics Corporation (the “Company”) is in the development stage, as defined by Financial Accounting Standards Board (“FASB”) ASC 915, “Development Stage Entities” and its efforts have been principally devoted to the commercialization of its cell expansion technology since it previously discontinued the discovery and development of stem cell therapeutic products in 2008. To date, the Company has not generated any sales revenues, has incurred ongoing operating expenses and has sustained losses.  Consequently, its operations are subject to all the risks inherent in the establishment of a new business enterprise. 

As shown in the accompanying financial statements, the Company has incurred significant losses since inception and has not generated any revenues to date. In addition, effective July 1, 2008, the Company suspended significantly all of its operations.  The future of the Company is dependent upon its ability to obtain sufficient financing and upon achieving future profitable operations.  These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern.  The accompanying interim consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

The Company follows the accounting guidance outlined in the Financial Accounting Standards Board Codification guidelines. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted principles for interim financial information and with the instructions to Form 10-Q of Regulation S-K.  They may not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements.  However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2010 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 15, 2011.  The interim unaudited financial statements should be read in conjunction with those financial statements included in the Form 10-K.  In the opinion of Management, all adjustments considered necessary for a fair presentation, which unless otherwise disclosed herein, consisting primarily of normal recurring adjustments, have been made. Operating results for the three months ended March 31, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.

The Company’s financial statements include certain estimates and assumptions which affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.  Accordingly, actual results may differ from those estimates.

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NOTE 2 – INTELLECTUAL PROPERTY

As of December 31, 2010, the Company had $70,002 of capitalized patents. Through March 31, 2011, the Company did not incur any additional costs for its intellectual property. The Company amortizes patents over the remaining life of the patents, which ranges from 7 to 17 years.

Intellectual property at March 31, 2011 and December 31, 2010 is as follows:

	March 31,		December 31,
	2011		2010
Patents	$	70,002	$	70,002
Accumulated amortization		(40,652)		(38,776)
Patents, net	$	29,350	$	31,226

NOTE 3 – PROPERTY AND EQUIPMENT

As of December 31, 2010, the Company had a remaining cost basis of $120,745 in laboratory, computer and office equipment. During the three months ended March 31, 2011, the Company did not sell or otherwise dispose of any of its property and equipment.

Property and equipment as of March 31, 2011 and December 31, 2010 are as follows:

	March 31,		December 31,
	2011		2010
Laboratory equipment	$	40,935	$	40,935
Computer and office equipment		79,810		79,810
Accumulated depreciation		(107,600)		(105,555)
Property and equipment, net	$	13,145	$	15,190

NOTE 4 – COMMITMENTS AND CONTINGENCIES

Promissory Note

Effective August 14, 2009, the Company finalized a lease termination agreement with its landlord whereby the Company executed a promissory note in the amount of $275,000 and agreed to vacate the facility and leave certain of its furniture behind in full settlement of all amounts owing. The promissory note bears interest at the annual rate of 12%, required an initial payment of $25,000 on or before December 1, 2009, and has monthly payments of $5,000 commencing January 1, 2010. The initial payment of $25,000 was paid on December 1, 2009.

On August 25, 2010, the Company entered into a forbearance agreement with its previous landlord whereby the landlord would forbear enforcement of its claims and causes of actions upon the following terms:

1.

A payment of $25,000 on or before December 21, 2010, and

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2.

Commencing July 1, 2011 and on the first day of each month thereafter, for a total of six months ending December 1, 2011, a payment of $5,000.

These payments will be first applied to all accrued but unpaid interest, with the remainder to be applied against principal of the previously executed promissory note. In addition, each of these payments is personally guaranteed by a stockholder of the Company.

Principal payments under the promissory note are as follows:

Year		Principal Payments
2011	$	3,627
2012		31,513
2013		35,600
2014		40,115
2015		45,202
Thereafter		98,513
Total	$	254,570

NOTE 5 – CAPITAL STOCK

Common Stock

The Company has authorized 525,000,000 shares of its common stock, $0.001 par value. The Company had issued and outstanding 74,556,405 shares of its common stock at March 31, 2011 and December 31, 2010, respectively.

During the three month period ended March 31, 2011, the Company did not issue any shares of its common stock for services.

Common Stock Warrants

The Company did not issue any common stock purchase warrants during the three month period ended March 31, 2011. Warrants outstanding are as follows:

	Warrants Outstanding		Weighted Average Exercise Price	Weighted Average Remaining Life
Balance, December 31, 2009	919,230	$	0.06	4.62 years
Warrants issued	-		-
Warrants exercised	-		-
Warrants expired	-		-
Balance, December 31, 2010	919,230		0.06	3.62 years

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Warrants issued	-		-
Warrants exercised	-		-
Warrants expired	-		-
Balance,  March 31, 2011	919,230	$	0.06	3.37 years

Common Stock Options

The Company did not grant any stock options for shares of its common stock during the three months ended March 31, 2011.

The Company’s stock option activity for the three month period ended March 31, 2011 is as follows:

	Options Outstanding		Weighted Average Exercise Price	Weighted Average Remaining Life
Balance, December 31, 2009	17,545,000	$	0.190	3.81 years
Options granted	19,700,000		0.026
Options exercised	-		-
Options cancelled and expired	(2,800,000)		0.049
Balance, December 31, 2010	34,445,000		0.109	3.95 years
Options granted	-		-
Options exercised	-		-
Options cancelled and expired	-		-
Balance, March 31, 2011	34,445,000	$	0.109	3.70 years

NOTE 6 – BASIC AND DILUTED NET LOSS PER SHARE

The Company computes net income (loss) per common share in accordance with FASB ASC 260, “Earnings Per Share”.   Net income (loss) per share is based upon the weighted average number of outstanding common shares and the dilutive effect of common share equivalents, such as options and warrants to purchase common stock, convertible preferred stock and convertible notes, if applicable, that are outstanding each year.  Basic and diluted earnings per share were the same at the reporting dates of the accompanying financial statements, as including common stock equivalents in the calculation of diluted earnings per share would have been anti-dilutive.  

Common stock equivalents that were not included in diluted earnings per share at March 31, 2011 and 2010 are as follows:

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	2011		2010
Stock options		34,445,000		25,545,000
Warrants		919,230		919,230
Convertible promissory notes		4,377,290		938,573
Common stock equivalents		39,741,520		27,802,813

NOTE 7 – RELATED PARTY TRANSACTIONS

During the year ended December 31, 2008, two former officers, Gary Reys and Dr. Ronald Berninger, who were also members of the Company’s board of directors, advanced funds in the amount of $26,290 for their defense of certain legal matters. During 2009, Dr. Berninger advanced an additional $6,465 for his defense. Under the Company’s Bylaws, the Company is required to provide for the legal defense of its officers and directors. These advances are included in due to related parties.

Convertible Promissory Notes

On December 23, 2009, an officer of the Company loaned $25,000 to the Company in exchange for a convertible promissory note and a warrant to purchase 150,000 shares of common stock. The promissory note bears interest at the annual rate of eight percent and all interest and principal is due on December 22, 2014. The promissory note and accrued interest can be converted into common stock at any time, at the option of the holder, at the exchange rate of $0.035 per share. The fair market value of the warrants of $3,000 was recorded as a discount on the promissory note and is being amortized over five years.

During the year ended December 31, 2010, a stockholder of the Company advanced a total of $25,858 to help pay for certain operating costs. These advances were converted into a convertible promissory note. The promissory note bears interest at the annual rate of eight percent and all interest and principal is due on January 24, 2015. The promissory note and accrued interest can be converted into common stock at any time, at the option of the holder, at the exchange rate of $0.024 per share. During the three months ended March 31, 2011, this stockholder advanced an additional $35,000 to cover operating and debt service costs.

During the year ended December 31, 2010, a second stockholder of the Company advanced a total of $3,470 to help pay for certain operating costs.  Effective August 18, 2010, these advances were converted into a convertible promissory note. The promissory note bears interest at the annual rate of eight percent and all interest and principal is due on August 17, 2015. The promissory note and accrued interest can be converted into common stock at any time, at the option of the holder, at the exchange rate of $0.02 per share. During the three months ended March 31, 2011, this stockholder advanced an additional $6,910 to cover operating and debt service costs.

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Stockholder Advances

During the year ended December 31, 2007 a stockholder of the Company paid various outstanding payables on behalf of the Company. As of March 31, 2011 the Company owed this stockholder $107,949.  These advances are unsecured, non-interest bearing with no set terms of repayment.

NOTE 8 – RECENT ACCOUNTING PRONOUNCEMENTS

In January 2010, the FASB issued ASU No. 2010-06, “Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”) (codified within ASC 820 “Fair Value Measurements and Disclosures”). ASU 2010-06 improves disclosures originally required under SFAS No. 157. ASU 2010-16 is effective for interim and annual periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those years. The adoption of this Accounting Standard Update on January 1, 2011 had no effect on the Company’s results of operations or disclosures.

NOTE 9 – SUBSEQUENT EVENTS

On May 11, 2011, the Company filed a registration statement on Form S-8 with the Securities and Exchange Commission to register an additional 20,000,000 shares of its common stock for issuance under its 2009 Stock Incentive Plan for Employees and Consultants.

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Item 2.

Management’s Discussion and Analysis

As used in this Quarterly Report: (i) the terms the “Company”, “our company”, “we”, “us” and “our” refer to CellCyte Genetics Corporation, a Nevada corporation, and its subsidiary, unless the context requires otherwise; (ii) references to “CellCyte” mean CellCyte Genetics Corporation, a Washington corporation; and (iii) all dollar amounts refer to United States dollars unless otherwise indicated.

The following discussion of our plan of operations, results of operations and financial condition as of and for the three months ended March 31, 2011 should be read in conjunction with (i) our unaudited interim consolidated financial statements and related notes for the three months ended March 31, 2011 included in this Quarterly Report, and (ii) our Annual Report on Form 10-K for the year ended December 31, 2010, including our annual audited financial statements set forth therein.

Overview

We are a biotechnology company involved in research and development of medical devices for cell expansion and maintenance.

We intend to focus our efforts over the next twelve months within the device segment. These efforts will consist of entering into collaborative research agreements with well-known, established research organizations to utilize our patented CCG-E45 Culture Chamber product to enhance their cell production efforts. In conjunction with these research activities, our engineers will be developing alternative culture chamber configurations to optimize specific cell categories. Under these collaborative agreements, we will provide our CCG-E45 Incubators and Culture Chambers, and onsite training and oversight. Our collaboration partners will provide staffing, space and the cells types being tested.

On September 9, 2010, we finalized a collaborative research agreement with the Fred Hutchison Cancer Research Center in Seattle, Washington. We started our joint research activities under this agreement in April 2011.

Plan of Operations

Our operations over the next 12 months will be limited by the amount of resources we are able to raise, and the willingness of our contractors and consultants to work for stock and stock option compensation. Accordingly, we have developed an Interim Operating Plan that may allow us to complete certain limited research and development activities while we attempt to raise adequate funding to restart our business.

Our plan of operations under our Interim Operating Plan for the next 12 months is to:

(a)

perform the work specified by out Interim Operating Plan under recently executed contracts with our scientists and manufacturing consultants.

(b)

apply for State and Federal research grants to develop specific configurations and applications of the bioreactor device.

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 (c)

support the beta testing of our bioreactor product as specified in our agreements with independent research laboratories to maximize the possibility that such labs will adopt our bioreactor technology to satisfy their cell expansion needs.

(d)

continue small scale manufacturing of our cell expansion culture chambers, as needed, to maintain an adequate supply of bioreactors for the academic and institutional research organizations with which we have beta testing collaboration agreements.

(e)

locate and occupy new office, lab and manufacturing space if required to execute our Interim Operating Plan.

Over the next 12 months we anticipate that we will require an aggregate of $700,000 in cash and stock-based compensation to cover expenses and debt service, including certain accounts payable, as follows:

(a)

$50,000 for facility and equipment related expenses;

(b)

$60,000 for debt service;

(c)

$120,000 for pre-clinical work, quality assurance, manufacturing of biologic material, academic collaborations and further research collaborations;

(d)

$80,000 for design and device manufacturing;

(e)

$150,000 for legal expenses related to general corporate matters, and accounting expenses related to quarterly reviews and annual audits;

(f)

$125,000 for salaries and consulting; and

(g)

$115,000 for general and administrative, travel, conferences and public relations.

During the next 12 months we anticipate that we will generate minimal non-recurring engineering (NRE) service revenue and revenue from the sale and licensing of our incubator and bioreactor device technology.   We presently do not have sufficient cash to fund our operations, and have curtailed substantially all activities, other than those called for by the execution of our Interim Operating Plan.  

During the period covered by our Interim Operating Plan, we expect to fund our operations through a combination of the sale of excess laboratory equipment, issuances of stock, including issuances of stock and stock options registered pursuant to an S-8 registration statement, as payment in-kind to our independent contractors, consultants and other service providers, and the issuance of convertible loans from current stockholders and other investors. However, there is no certainty that we will be able to obtain these loans on commercially reasonable terms or when needed, or that they will be sufficient to meet our cash requirements. Accordingly, we anticipate that we will require additional financing to enable us to pay our planned expenses and debt service for the next 12 months and pursue our plan of operations.

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At this time, we cannot accurately estimate a date of transition from operating under our Interim Operating Plan to a state in which our operations will be funded by a combination of equity funding and cash provided from bioreactor and incubator sales. Further, there is no assurance that our research, product and device demonstration program will result in significant revenues, or that we will obtain the cash necessary to fund the Interim Operating Plan.

Subsequent to the 12 month period following the date of our Annual Report for the year ended December 31, 2010, we will be required to obtain additional financing in order to continue to pursue our business plan.  We cannot accurately predict the amount of additional capital that will be required, nor the extent to which this will consist of equity or debt financing.

We cannot provide investors with any assurance that we will be able to raise sufficient funding from the issuance of promissory notes or the sale of our common stock to fund our business plan going forward.  In the absence of such financing, our business plan will fail.

Results of Operations

Three Months Ended March 31, 2011 Compared to three Months Ended March 31, 2010.

The following table sets out our consolidated loss for the periods indicated:

	Three Months Ended March 31, 2011	Three Months Ended March 31, 2010
	(Unaudited)	(Unaudited)
Revenues	$ —	$ —
Operating Expenses
General and administrative	16,449	34,204
Professional fees	17,467	34,545
Stock-based compensation	-	184,000
Other Income (Expense)	(10,928)	(10,193)
Net Loss	(44,844)	(262,942)

Revenues

We have had no operating revenues since our inception on January 4, 2005 to March 31, 2011.  We anticipate that we will not generate any revenues for so long as we are a development stage company.

General and Administrative Expenses

Our general and administrative expenses in the three months ended March 31, 2011 decreased to $16,449 from $34,204 for the same period of 2010, primarily as a result of a reduction in depreciation and rent expense.

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Professional Fees

In the three months ended March 31, 2011, we incurred professional fees of $17,467, compared to $34,545 for the same period of 2010. The decrease is primarily related to a reduction in the activities of the contract accountants providing general operating support and a reduction in general legal services.

Stock-Based Compensation

In the three months ended March 31, 2011, we incurred no stock-based compensation expense, compared to $184,000 of stock-based compensation expense for the same period in 2010. Stock-based compensation was related to stock options provided to our directors and consultants that vested during each period.

Other Income (Expense)

In the three months ended March 31, 2011, other income (expense) was $(10,928), compared to $(10,193) for the same period in 2010. Other income (expense) consisted primarily of interest expense for both periods.

Net Loss

As a result of the above, our net loss for the three months ended March 31, 2011 was $44,844, compared to $262,942 for the same period of 2010.

Liquidity and Capital Resources

As of March 31, 2011, we had no cash and a working capital deficit of $947,470.  Our planned expenditures over the next 12 months are expected to amount to approximately $700,000 and will exceed our cash reserves and working capital.  We presently do not have sufficient cash to fund our operations and have curtailed significantly all activities.  

During the period covered by our Interim Operating Plan, we expect to fund our operations through a combination of issuances of stock, including issuances of stock and stock options registered pursuant to an S-8 registration statement, as payment in-kind to our independent contractors, consultants and other service providers, and the issuance of convertible loans from current stockholders and other investors. We anticipate that we will not require additional financing beyond the results of actions described above in order to pursue our operations under the Interim Operating Plan. Our business activities and plan of operations beyond the next 12 months will depend on the extent to which our bioreactor product is found to be a superior way for clinical research laboratories, with which we establish collaborative research agreements, to satisfy their cell expansion needs.

In the event that the testing under our collaborative research agreements is successful, our goal is to convert each of our collaboration partners into a paying customer. With each collaborating laboratory, there exists the potential for our bioreactor to become a component of some diagnostic or therapeutic procedure that could be licensed to a biopharmaceutical manufacturer. At this time, we do not have any definitive information from any of our collaboration partners as

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to the effectiveness of our bioreactor, so there is a risk that the tests will not be successful and that our Interim Operating Plan will fail.

However, there is no certainty that we will be able to obtain these loans on commercially reasonable terms or when needed, or that they will be sufficient to meet our cash requirements. Accordingly, we anticipate that we will require additional financing in order to pursue our plan of operations for the next 12 months.  If we are unable to obtain additional financing, we may have to abandon our business activities and plan of operations. We believe that traditional debt financing will not be an alternative for funding as we do not have tangible assets to secure any debt financing.  We anticipate that additional funding will come from the sale of our excess furniture and equipment, and may be in the form of convertible debt and equity financing from the sale of our common stock.  However, we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of equipment or our common stock to fund our plan of operations going forward.  In the absence of such financing, our business plan will fail.  Even if we are successful in obtaining short-term financing, there is no assurance that we will obtain the funding necessary to pursue our business plan.  If we do not continue to obtain additional financing going forward, we will be forced to abandon our plan of operations.

Cash Used in Operating Activities

Cash used in operating activities in the three months ended March 31, 2011 was $41,910, compared to $22,492 for the same period of 2010.  In 2011 and 2010, operating activities used cash primarily for insurance, storage of our equipment, and payment to our outside auditors. We anticipate that cash used in operating activities will be limited over the balance of 2011 as we move forward with limited operations.  We have funded our operations primarily from the sale of excess laboratory equipment and from the issuance of our common stock, and expect to continue efforts to raise additional capital through the sale equipment and stock.

Cash Provided by Investing Activities

In the three months ended March 31, 2011, there was no cash generated from investing activities, compared to $12,500 in cash from operating activities in the same period of 2010 from the sale of excess equipment.

Cash Provided By Financing Activities

We have funded our business to date primarily from sales of our common stock and issuance of convertible promissory notes.  In the three months ended March 31, 2011, we had net proceeds of $41,910 related to advances under convertible promissory notes, compared to net proceeds of $2,691 for the same period of 2010 from the proceeds of a convertible promissory note.

Going Concern

As shown in the accompanying financial statements and more fully detailed in our 2010 Annual Report on Form 10-K, we have incurred significant losses since inception and have not generated any revenues to date.  The future of our company is dependent upon our ability to obtain sufficient financing and upon achieving future profitable operations.  These factors, among others, raise substantial doubt about our company’s ability to continue as a going concern.  The

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accompanying interim consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Future Financings

We anticipate continuing to rely on equity sales of our common stock and the issuance of convertible debt in order to continue to fund our business operations.  Issuances of additional shares will result in dilution to our existing stockholders.  There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our business plan.

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Critical Accounting Policies

Our financial statements are impacted by the accounting policies used and the estimates and assumptions made by management during their preparation.  A complete summary of these policies is included in Note 2 of the notes to our historical financial statements.  We have identified below the accounting policies that are of particular importance in the presentation of our financial position, results of operations and cash flows and which require the application of significant judgment by management.

Use of Estimates

Our financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and include certain estimates and assumptions which affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.  Accordingly, actual results may differ from those estimates.

Income Taxes

We follow the provisions of FASB ASC 740, “Income Taxes”, under which deferred tax assets and liabilities are determined based on differences between financial reporting and tax basis of assets and liabilities. Deferred tax assets and liabilities are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse.  The provisions of ASC 740 also require the recognition of future tax benefits such as net operating loss carry-forwards, to the extent that the realization of such benefits is more likely than not.  To the extent that it is more likely than not that such benefits will not be received, we record a valuation allowance against the related deferred tax asset.

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Intangible Assets

Our intangible assets primarily consist of patents and intellectual property, which are carried at the purchase price and/or the legal cost to obtain them less accumulated amortization.  Patents and licenses are being amortized over their estimated useful lives, which range from seven to seventeen years. Annually these assets are reviewed for recoverability to determine if the carrying amount on the balance sheet is appropriate.

Research and Development Costs

Research and development costs are expensed as incurred. The cost of intellectual property purchased from others that is immediately marketable or that has an alternative future use is capitalized and amortized as intangible assets. Capitalized costs are amortized using the straight-line method over the estimated economic life of the related asset. We periodically review our capitalized intangible assets to assess recoverability based on the projected undiscounted cash flows from operations, and impairments are recognized in operating results when a permanent diminution in value occurs.

Stock-Based Compensation

We account for our stock option plan primarily under the recognition and measurement principles of FASB ASC 718, “Compensation – Stock Compensation”. Accordingly, compensation cost has been recognized using the fair value method and expected term accrual requirements as prescribed in ASC 718. We recorded no stock-based compensation expense during the three months ended March 31, 2011 as none of the outstanding options vested during the period.

Recent Accounting Pronouncements

In January 2010, the FASB issued ASU No. 2010-06, “Improving Disclosures about Fair Value Measurements” (“ASU 2010-06”) (codified within ASC 820 “Fair Value Measurements and Disclosures”). ASU 2010-06 improves disclosures originally required under SFAS No. 157. ASU 2010-16 is effective for interim and annual periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those years. The adoption of this Accounting Standard Update on January 1, 2011 had no effect on the results of our operations or financial statement disclosures.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

Not Applicable.

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Item 4.

Controls And Procedures

Evaluation of Disclosure Controls and Procedures

In connection with the preparation of this Quarterly Report on Form 10-Q, an evaluation was carried out by our management, with the participation of the Principal Executive Officer and Principal Accounting Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”)) as of March 31, 2011.  Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC rules and forms and that such information is accumulated and communicated to management, including the Principal Executive Officer and the Principal Accounting Officer, to allow timely decisions regarding required disclosures. Based on its evaluation, our management concluded, as of the end of the period covered by this report, that our disclosure controls and procedures were not effective.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended March 31, 2011 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.  The Company has not begun remediation efforts to correct the previously disclosed material weakness (as defined in Rule 13a-15(d) under the Exchange Act) reported on the Company’s Form 10-K filed for the period ended December 31, 2010.

__________

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PART II – OTHER INFORMATION

Item 1.

Legal Proceedings

We are not currently a party to any legal proceedings.

Item 1A.

Risk Factors

Not Applicable.

Item 2.

Unregistered Sales of Equity Securities

We did not issue any shares of our common stock during the three month period ended March 31, 2011.

Item 3.

Defaults Upon Senior Securities

None.

Item 4.

[Removed and Reserved]

Item 5.

Other Information

None.

Item 6.

Exhibits

The following exhibits are included with this Quarterly Report on Form 10-Q:

Exhibit Number	Description of Exhibit
3.1	Articles of Incorporation, as amended.  Incorporated by reference to our Registration Statement on Form SB-2 filed on May 4, 2005.
3.2	Bylaws.  Incorporated by reference to our Current Report on Form 8-K filed May 14, 2004.
31.1	Rule 13a-14(a)/15(d)-14(a) Certification of Principal Executive Officer.
31.2	Rule 13a-14(a)/15(d)-14(a) Certification of Principal Accounting Officer.
32.1	18 U.S.C. Section 1350 Certification of Principal Executive Officer.
32.2	18 U.S.C. Section 1350 Certification of Principal Accounting Officer.

__________

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CELLCYTE GENETICS CORPORATION
Dated:  May 16, 2011. Per:	/s/ “John M. Fluke, Jr.” John M. Fluke, Jr. Interim Principal Executive Officer

__________

EX-31

Exhibit 31.1

CERTIFICATION

I, John M. Fluke, Jr., certify that:

(1)

I have reviewed this report on Form 10-Q for the quarterly period ended March 31, 2011 of CellCyte Genetics Corporation (the “Company”);

(2)

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3)

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

(4)

The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

(a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

designated such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

(5)

The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):

(a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

(b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

Date:

May 16, 2011.

/s/ John M. Fluke, Jr.

By:

John M. Fluke, Jr.

Title:

Interim Principal Executive Officer

Exhibit 31.2

CERTIFICATION

I, Randy A. Lieber, certify that:

(1)

I have reviewed this report on Form 10-Q for the quarterly period ended March 31, 2011 of CellCyte Genetics Corporation (the “Company”);

(2)

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

(3)

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

(4)

The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

(a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

designated such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)

evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)

disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

(5)

The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):

(a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

(b)

any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.

Date:

May 16, 2011.

/s/ Randy A. Lieber

By:

Randy A. Lieber

Title:

Principal Accounting Officer

EX-32

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

The undersigned, John M. Fluke, Jr., the Interim Principal Executive Officer of CellCyte Genetics Corporation, hereby certifies, pursuant to 18 U.S.C.  Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge, the Quarterly Report on Form 10-Q of CellCyte Genetics Corporation, for the quarterly period ended March 31, 2011, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and that the information contained in the Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of CellCyte Genetics Corporation.

Date:

May 16, 2011.

/s/ “John M. Fluke, Jr.”___

John M. Fluke, Jr.
Interim Principal Executive Officer

__________

Exhibit 32.2

CERTIFICATION OF PRINCIPAL ACCOUNTING OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350

The undersigned, Randy A. Lieber, the Principal Accounting Officer of CellCyte Genetics Corporation, hereby certifies, pursuant to 18 U.S.C.  Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge, the Quarterly Report on Form 10-Q of CellCyte Genetics Corporation, for the quarterly period ended March 31, 2011, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and that the information contained in the Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of CellCyte Genetics Corporation.

Date:

May 16, 2011.

/s/ “Randy A. Lieber”___

Randy A. Lieber
Principal Accounting Officer

__________