10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended June 30, 2011

or

[   ] 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: 000-53449

ANTIVIRAL TECHNOLOGIES, INC.

 (Exact name of registrant as specified in its charter)

Nevada	26-1188469
(State or other jurisdiction of incorporation)	(IRS Employer Identification Number)
Suite 1211, Tower II, Silvercord, 30 Canton Road, Tsimshatsui, Kowloon, Hong Kong
(Address of principal executive offices)
(852) 2317 1291
(Registrant’s telephone number, including area code)

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 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.  [ X ] 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). Not Applicable.

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 [ X ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     

[   ] Yes   [ X ] No

As of June 30, 2011 the Issuer had 150,000,000 shares of common stock issued and outstanding.

INDEX

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		Page
PART I. FINANCIAL INFORMATION
Item 1.	Consolidated Balance Sheets as of June 30, 2011 and December 31, 2010 (unaudited)	1
	Consolidated Statements of Operations and Comprehensive Loss for the Three Months and Six Months ended June 30, 2011 and 2010 and from September 13, 2007 (Inception) to June 30, 2011 (unaudited)	2
	Consolidated Statements of Stockholders' Equity and Accumulated Other Comprehensive Income for the period September 13, 2007 (Inception) to June 30, 2011 (unaudited)	3
	Consolidated Statements of Cash Flows for the Six Months ended June 30, 2011 and 2010 and from September 13, 2007 (Inception) to June 30, 2011 (unaudited)	4
	Notes to Consolidated Financial Statements	5
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	11
Item 3.	Quantitative and Qualitative Disclosure About Market Risk	13
Item 4.	Controls and Procedures	13
PART II. OTHER INFORMATION
Item 1	Legal Proceedings	14
Item 1A	Risk Factors	14
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	14
Item 3	Defaults Upon Senior Securities	14
Item 4	(Removed and Reserved)	14
Item 5	Other Matters	14
Item 6.	Exhibits	14
SIGNATURES		15

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PART I   FINANCIAL INFORMATION

ITEM 1.   FINANCIAL STATEMENTS.

ANTIVIRAL TECHNOLOGIES, INC.
(A Development Stage Company, Formerly Table Mesa Acquisitions, Inc.)
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2011 AND DECEMBER 31, 2010
Currency stated in United States Dollars
		June 30, 2011		December 31, 2010
	Notes	(Unaudited)		(Audited)
ASSETS
Current Assets:
Cash and cash equivalents		$	7,271	$	3,134
Prepayments, deposit and other receivables			1,535		7,899
Total current assets			8,806		11,033
Non-Current Assets
Property, plant and equipment, net	6		3,492		4,074
Patents, net	7		384,887		369,112
Total non-current assets			388,379		373,186
Total Assets		$	397,185	$	384,219
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accruals and other payables		$	147,441	$	157,676
Amounts due to directors and officers	8		649,771		506,174
Amount due to the shareholder	9		1,309,130		1,244,255
Total Liabilities		$	2,106,342	$	1,908,105
Stockholders' deficit:
Preferred stock, par value $0.001, 20,000,000 shares authorized, no share issued as of June 30, 2011 and December 31, 2010			-		-
Common stock, $0.001 par value; 150,000,000 shares authorized; 150,000,000 shares issued and outstanding as of June 30, 2011 and December 31, 2010.		$	150,000	$	150,000
Additional paid-in-capital			(144,858)		(144,858)
Accumulated other comprehensive income			2,328		4,144
Deficit accumulated during the development stage			(1,716,627)		(1,533,172)
Total stockholders' equity/(deficit)			(1,709,157)		(1,523,886)
Total Liabilities and Shareholders' equity		$	397,185	$	384,219

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

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ANTIVIRAL TECHNOLOGIES, INC.
(A Development Stage Company, Formerly Table Mesa Acquisitions, Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010
AND FROM SEPTEMBER 13, 2007 (INCEPTION) TO JUNE 30, 2011
Unaudited, currency stated in United States Dollars
										For the period
	Three Months ended				Six Months ended					September 13, 2007
	June 30,				June 30,					(Inception to)
	2011		2010		2011		2010			June 30, 2011
Revenue	$	-	$	-	$	-	$	-	$	-
Operating Expenses:
Selling and distribution costs		3		-		1,684		1,048		39,086
General and administrative expenses		87,667		96,910		181,779		204,605		1,551,387
Loss from operations before other expense		(87,670)		(96,910)		(183,463)		(205,653)		(1,590,473)
Other expenses		-		(1)		2		67		(95,224)
Write off of patents		-		-		-		-		(8,328)
Write off of bad debt		-		-		-		-		(3,585)
Preliminary expenses		-		-		-		-		(1,393)
Interest income		3		5		6		11		14,338
Interest expense		-		-		-		-		(31,962)
Net loss		(87,667)		(96,906)		(183,455)		(205,575)		(1,716,627)
Other comprehensive income
Foreign currency translation gain / (loss)		(2,265)		2,864		(1,816)		4,165		2,328
Comprehensive loss	$	(89,932)	$	(94,042)	$	(185,271)	$	(201,410)	$	(1,714,299)
Basic and diluted loss per common share	$	(0.00)	$	(0.00)	$	(0.00)	$	(0.00)	$	(0.01)
Basic and diluted weighted average number of common shares		150,000,000		150,000,000		150,000,000		150,000,000		148,350,649

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

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ANTIVIRAL TECHNOLOGIES, INC.
(A Development Stage Company, Formerly Table Mesa Acquisitions, Inc.)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME
FOR THE PERIOD FROM SEPTEMBER 13, 2007 (INCEPTION) TO JUNE 30, 2011
Unaudited, currency stated  in United States Dollars, except for number of shares
					Additional	Accumulated other				Total
	Common stock				paid-in	comprehensive			Accumulated	stockholders'
	Shares		Amount		capital	income			deficit	equity (deficit)
Balance at September 13, 2007 (inception)	-	$	-	$	-	$	-	$	-	$	-
Issuance of founder shares	147,000,000		147,000		(146,999)		-		-		1
Foreign currency translation adjustment	-		-		-		1,042		-		1,042
Net loss	-		-		-		-		(319,416)		(319,416)
Balance at December 31, 2007	147,000,000		147,000		(146,999)		1,042		(319,416)		(318,373)
Foreign currency translation adjustment	-		-		-		10		-		10
Net loss	-		-		-		-		(310,453)		(310,453)
Balance at December 31, 2008	147,000,000		147,000		(146,999)		1,052		(629,869)		(628,816)
Reverse acquisition	3,000,000		3,000		2,141		-		-		5,141
Foreign currency translation adjustment	-		-		-		492		-		492
Net loss	-		-		-		-		(462,012)		(462,012)
Balance at December 31, 2009	150,000,000		150,000		(144,858)		1,544		(1,091,881)		(1,085,195)
Foreign currency translation adjustment	-		-		-		2,600		-		2,600
Net loss	-		-		-		-		(441,291)		(441,291)
Balance at December 31, 2010	150,000,000		150,000		(144,858)		4,144		(1,533,172)		(1,523,886)
Foreign currency translation adjustment	-		-		-		(1,816)		-		(1,816)
Net loss	-		-		-		-		(183,455)		(183,455)
Balance at June 30, 2011	150,000,000	$	150,000	$	(144,858)	$	2,328	$	(1,716,627)	$	(1,709,157)

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

3

ANTIVIRAL TECHNOLOGIES, INC.
(A Development Stage Company, Formerly Table Mesa Acquisitions, Inc.)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2011 AND 2010
AND FROM SEPTEMBER 13, 2007 (INCEPTION) TO JUNE 30, 2011
Unaudited, currency stated in United States Dollars
					For the period
		Six Months ended			September 30, 2007
		June 30, 2011			(Inception) to
	2011		2010		June 30, 2011
Cash flows from operating activities:
Net Loss	$	(183,455)	$	(205,575)	$	(1,716,627)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		637		620		7,181
Amortization		2,367		1,822		18,730
Written off on patents		-		-		8,328
Change in assets and liabilities:
Prepaid expenses, deposits		6,364		160		(1,535)
Other receivables		-		-		-
Accruals		(10,235)		17,879		146,951
Related party payables		-		-		490
Amounts due to directors and officers		112,365		141,203		582,754
Compensatory option issuances		-		-		560
Net cash generated/(used) in operating activities		(71,957)		(43,891)		(953,168)
Cash flows from investing activities:
Purchase of plant and equipment		(89)		6		(10,745)
Patents filing costs		(18,141)		(14,338)		(411,923)
Net cash used in investing activities		(18,230)		(14,332)		(422,668)
Cash flows from financing activities:
Amount due to the stockholder		64,874		46,110		1,309,130
Director’s advancement		31,232		-		67,017
Sales of common stock		-		-		21,000
Net cash (used in) provided by financing activities		96,106		46,110		1,397,147
Effect of exchange rate changes on cash and cash equivalents		(1,782)		4,102		(14,040)
Net increase/(decrease) in cash and cash equivalents		4,137		(8,011)		7,271
Cash and cash equivalents – beginning of period		3,134		10,599		-
Cash and cash equivalents – end of period	$	7,271	$	2,588	$	7,271
Supplemental disclosure of cash flow information:
Interest paid	$	-	$	-	$	31,962
Income taxes paid	$	-	$	-	$	-

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

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ANTIVIRAL TECHNOLOGIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2011   (UNAUDITED)

(Stated in US Dollars)

NOTE 1.  BASIS OF PRESENTATION

The accompanying unaudited financial statements of Antiviral Technologies, Inc. at June 30, 2011 and 2010 have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial statements, instructions to Form 10-Q and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2010. In management's opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation to make our financial statements not misleading have been included. The results of operations for the periods ended June 30, 2011 and 2010 presented are not necessarily indicative of the results to be expected for the full year. The December 31, 2010 balance sheet has been derived from the Company’s audited financial statements included in its annual report on Form 10-K for the year ended December 31, 2010.

NOTE 2.  ORGANIZATION AND PRINCIPAL ACTIVITY

Antiviral Technologies, Inc. (“the Company”) was incorporated in the state of Nevada on September 13, 2007, as Table Mesa Acquisitions, Inc., and on October 13, 2009, changed its name to Antiviral Technologies, Inc.  On October 14, 2009, the Company acquired Obio Pharmaceutical (H.K.) Ltd (“Obio HK”), and its wholly-owned subsidiary, Beijing Obio Pharmaceutical Co., Ltd (“Beijing Obio”) in a share exchange transaction (the “Share Exchange”). This transaction was accounted for as a “reverse merger” with Obio HK deemed to be the accounting acquirer and the Company as the legal acquirer.  Consequently, the assets and liabilities and the historical operations that are reflected in the financial statements for periods prior to the Share Exchange are those of Obio HK, recorded at its historical cost basis. After completion of the Share Exchange, the Company’s consolidated financial statements include the assets and liabilities of the Company and Obio HK, the historical operations of Obio HK and the operations of the Company and its subsidiaries from the closing date of the Share Exchange.

Obio HK is a Hong Kong corporation which was formed on June 28, 1999 as Pacific Cosmos Investment Limited. After formation, it had several name changes including a change to J & P Capital (Hong Kong) Limited, on August 27, 1999, a change to Omega-Pharma (Hong Kong) Limited, on May 21, 2003, a change to Omega-BioPharma (HK) Limited, on December 10, 2003, and finally, a change to its current name, Obio Pharmaceutical (H.K.) Limited, on March 2, 2009.

Beijing Obio was incorporated under the laws of the PRC as a limited company on January 2, 2008.

The Company and its subsidiaries (hereinafter, collectively referred to as the “Group”) are engaged in human pharmaceutical research and development.

NOTE 3  CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS

Financial instruments which potentially expose the Company to concentrations of credit risk, consists of cash and other receivables as of June 30, 2011 and 2010. The Company performs ongoing evaluations of its cash position and credit evaluations to ensure collections and minimize losses.

As of June 30, 2011 and 2010, the Company’s bank deposits were all placed with banks in Hong Kong and the PRC where there is currently no rule or regulation in place for obligatory insurance of bank accounts.

The maximum amount of loss due to credit risk that the Company would incur if the counter parties to the financial instruments failed to perform is represented the carrying amount of each financial asset in the balance sheet.

NOTE 4  UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN

The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate significant earnings

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in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations.

As of June 30, 2011, the Company has not generated any revenue and has incurred an accumulated deficit since inception totaling $1,716,627 at June 30, 2011 and its current liabilities exceed its current assets by $2,097,536. These financial statements do not include any adjustments relating to the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors noted above raise substantial doubts regarding the Company's ability to continue as a going concern.

NOTE 5  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)

Principles of consolidation

The consolidated financial statements are presented in US Dollars and include the accounts of the Company and its subsidiary.  All significant inter-company balances and transactions are eliminated in consolidation.

The Company owned its subsidiary soon after its inception and continued to own the equity’s interests through June 30, 2011.  The following table depicts the identity of the subsidiary:

		Attributable equity	Registered
Name of subsidiary	Place of Incorporation	interest %	capital
Obio Pharmaceutical (H.K.) Ltd	Hong Kong	100	$1
Beijing Obio Pharmaceutical Co., Ltd	PRC	100	$200,000

(b)

Use of estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods.  Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates.

(c)

Economic and political risks

The Company’s operation is conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy.

The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.

(d)

Property, plant and equipment

Plant and equipment are carried at cost less accumulated depreciation.  Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows:

Office equipment

5 years

Testing equipment

5 years

The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of operation.

(e)

Patents

6

Patents that are acquired by the Company and/or self-invented are stated as cost less accumulated amortization. Amortization is provided over the respective useful lives, using the straight-line method.  Estimated useful lives of the patents are 20 years from the date the patent is filed.

(f)

Accounting for the impairment of long-lived assets

The Company periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in ASC No. 360. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for the cost to dispose.

During the reporting years, there was no impairment loss.

(g)

Cash and cash equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains bank accounts in the Hong Kong. The subsidiaries of the Company maintain bank accounts in Hong Kong and the PRC.

(h)

Income taxes

The Company accounts for income taxes in interim periods in accordance with ASC Topic 740, Income Taxes (“ASC 740”).  We have determined an estimated annual effective tax rate.  The rate will be revised, if necessary, as of the end of each successive interim period during our fiscal year to our best current estimate.  As of June 30, 2011, the estimated effective tax rate for the year will be zero.

ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  This pronouncement also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.

(i)

Foreign currency translation

The accompanying consolidated financial statements are presented in United States dollars. The functional currency of the Company is the Hong Kong Dollar (HK$) and Renminbi (RMB). The consolidated financial statements are translated into United States dollars from RMB at period-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

The exchange rates used to translate amounts in HK$ and RMB into USD for the purposes of preparing the consolidated financial statements were as follows:

	June 30, 2011	December 31, 2010	June 30, 2010
Twelve months ended HKD : USD exchange rate		7.7832
Six months ended HKD : USD exchange rate	7.78350		7.7847
Average six months ended HKD : USD exchange rate	7.78297		7.77168

	June 30, 2011	December 31, 2010	June 30, 2010
Twelve months ended RMB : USD exchange rate		6.5920
Six months ended RMB : USD exchange rate	6.4640		6.8086
Average six months ended RMB : USD exchange rate	6.54818		6.83474

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The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions.  No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. In addition, the current foreign exchange control policies applicable in PRC also restrict the transfer of assets or dividends outside the PRC.

(j)

Per Share Information

Earnings per share are based on the weighted average number of shares outstanding during the period after consideration of the dilutive effect, if any, for common stock equivalents, including stock options, restricted stock, and other stock-based compensation. Earnings per common share are computed in accordance with ASC Topic 260, Earnings Per Share, which requires companies to present basic earnings per share and diluted earnings per share. Basic earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share are computed by dividing net income by the weighted average number of shares of common stock outstanding and dilutive securities outstanding during the year.  We had a net loss for the six-month periods ended June 30, 2011 and 2010, and accordingly, any outstanding equivalents would be anti-dilutive.

(k)

Recently Accounting Pronouncements

We have reviewed all recently issued, but no yet effective, accounting pronouncements and do not believe the future adoptions of any such pronouncements may be expected to cause a material impact on our financial condition or the results of operations.

NOTE 6  PROPERTY, PLANT AND EQUIPMENT, NET

Property and equipment is summarized as follows:

		As of June 30, 2011		As of December 31, 2010
		--------------------------		-------------------------------
Cost
Plant and Machinery	$	3,879	$	3,879
Furniture, fixture and equipment		1,726		1,692
Office equipment		5,141		5,085
		-----------------------		-----------------------
		10,746		10,656
Accumulated depreciation		(7,254)		(6,582)
		-----------------------		-----------------------
	$	3,492	$	4,074
		==============		==============

Depreciation expenses included in the general and administrative expenses for the six months ended June 30, 2011 and for the year ended December 31, 2010 were $637 and $1,247.

NOTE 7  PATENTS, NET

Patents are summarized as follows:

		As of June 30, 2011		As of December 31, 2010
		---------------------------		-------------------------------
Cost
Patents	$	336,787	$	318,644
License		66,808		66,810
		-----------------------		-----------------------
		403,595		385,454
Accumulated amortization		(18,708)		(16,342)
		-----------------------		-----------------------

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$	384,887	$	369,112
	==============		==============

Amortization included in the general and administrative expenses for the six months ended June 30, 2011 and for the year ended December 31, 2010 were $2,367 and $4,020.

NOTE 8  AMOUNTS DUE TO DIRECTORS AND OFFICERS

Amounts due to directors and officers were the amount due to Mr. Francis Chi, Director, Dr. Bill Piu Chan, Director and Chief Executive Officer, Mr. Kin Chung Cheng, Director and Chief Financial Officer and Dr. Jess Gilbert Thoene, Director and Chief Technical Officer and was unsecured, interest free and repayable upon completion of any fund raising exercise of Obio HK or ATI. The balances due to directors and officers are $649,771 and $506,174 as of June 30, 2011 and December 31, 2010 respectively.

NOTE 9  AMOUNT DUE TO THE STOCKHOLDER

Amount due to the stockholder was unsecured, interest free and does not have a fixed repayment date.

NOTE 10  COMMON STOCK

As a result of the share exchange transaction on October 14, 2009, which is being accounted for as a “reverse merger,” the Group’s capital structure has changed. Following completion of the share exchange transaction, the Company has a total of 150,000,000 shares of $0.001 par value common stock issued and outstanding.  Common stock recorded was $150,000 with additional paid-in capital of ($144,858).

NOTE 11  RELATED PARTY TRANSACTIONS

In the normal course of its business, the group carried out the following related party transactions during the six months ended June 30, 2011 and 2010.

		For the six months ended
		June 30, 2011		June 30, 2010
Company secretarial fee paid to related parties (a)	$	498	$	500

(a)

The company secretarial fee was paid to related companies controlled by Chan Kin Man, Eddie, a director of the stockholder.

NOTE 12  FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC Topic 820, “Fair Value Measurements and Disclosures” ("ASC 820"), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows:

Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange.

Level 2 - Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs.

Level 3 - Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights.

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The Company’s financial instruments consist of cash and cash equivalents, payables, and amounts due to officers, directors and stockholder. The carrying values of cash and cash equivalents, payables, and amounts due to officers, directors and stockholder approximate their fair value due to their short maturities.

NOTE 13  SEGMENT INFORMATION

The Company is principally engaged in business of human pharmaceutical research and development.  No significant revenues are derived during the reporting periods. Accordingly, no analysis of the Company’s sales and assets by geographical market is presented.

NOTE 14 SUBSEQUENT EVENTS

In preparing these financial statements, the Company evaluated the events and transactions that occurred from July 1, 2011, throughAugust 15, 2011, the date these financial statements were issued. The Company has made the required additional disclosures in reporting periods in which subsequent events occur.

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ITEM 2.   MANAGEMENT’S DISCUSSIONS AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS

CERTAIN STATEMENTS IN THIS REPORT, INCLUDING STATEMENTS IN THE FOLLOWING DISCUSSION, ARE WHAT ARE KNOWN AS "FORWARD LOOKING STATEMENTS", WHICH ARE BASICALLY STATEMENTS ABOUT THE FUTURE. FOR THAT REASON, THESE STATEMENTS INVOLVE RISK AND UNCERTAINTY SINCE NO ONE CAN ACCURATELY PREDICT THE FUTURE. WORDS SUCH AS "PLANS," "INTENDS," "WILL," "HOPES," "SEEKS," "ANTICIPATES," "EXPECTS "AND THE LIKE OFTEN IDENTIFY SUCH FORWARD LOOKING STATEMENTS, BUT ARE NOT THE ONLY INDICATION THAT A STATEMENT IS A FORWARD LOOKING STATEMENT. SUCH FORWARD LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING OUR PLANS AND OBJECTIVES WITH RESPECT TO THE PRESENT AND FUTURE OPERATIONS OF THE COMPANY, AND STATEMENTS WHICH EXPRESS OR IMPLY THAT SUCH PRESENT AND FUTURE OPERATIONS WILL OR MAY PRODUCE REVENUES, INCOME OR PROFITS. NUMEROUS FACTORS AND FUTURE EVENTS COULD CAUSE THE COMPANY TO CHANGE SUCH PLANS AND OBJECTIVES OR FAIL TO SUCCESSFULLY IMPLEMENT SUCH PLANS OR ACHIEVE SUCH OBJECTIVES, OR CAUSE SUCH PRESENT AND FUTURE OPERATIONS TO FAIL TO PRODUCE REVENUES, INCOME OR PROFITS. THEREFORE, THE READER IS ADVISED THAT THE FOLLOWING DISCUSSION SHOULD BE CONSIDERED IN LIGHT OF THE DISCUSSION OF RISKS AND OTHER FACTORS CONTAINED IN THIS REPORT ON FORM 10-Q AND IN THE COMPANY'S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. NO STATEMENTS CONTAINED IN THE FOLLOWING DISCUSSION SHOULD BE CONSTRUED AS A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE OR FUTURE RESULTS.

Overview

History

The Registrant was incorporated in the state of Nevada on September 13, 2007, as Table Mesa Acquisitions, Inc., and on October 13, 2009, changed its name to Antiviral Technologies, Inc..  On October 14, 2009, the Registrant acquired Obio Pharmaceutical (H.K.) Limited, and its wholly-owned subsidiary, Beijing Obio Pharmaceutical Co., Ltd. in a share exchange transaction.  This transaction was accounted for as a “reverse merger” with Obio HK deemed to be the accounting acquirer and the Registrant as the legal acquirer.  Consequently, the assets and liabilities and the historical operations that are reflected in the financial statements for periods prior to the share exchange transaction are those of Obio HK, recorded at its historical cost basis. Following completion of the share exchange transaction, the Registrant’s consolidated financial statements include the assets and liabilities of both the Registrant and Obio HK, the historical operations of Obio HK and the operations of the Registrant and its subsidiaries from October 14, 2009, the closing date of the share exchange transaction.

Corporate Background

We are a development stage biotechnology company utilizing Cysteamine compositions in the development of antiviral drugs for human application.  We have been assigned rights in certain patents and have obtained licenses to use certain technology owned by Walcom Group Limited.  The rights assigned or licensed to us by Walcom include its proprietary micro-encapsulation technology for cysteamine. We intend to use the rights assigned or licensed to us by Walcom Group, which were developed by Walcom Group for use in develop of products for animals, in conjunction with efforts to develop products for human application.  

Because we are in the development stage of operations the relationships between revenue, cost of revenue, and operating expenses reflected in our financial statements are not necessarily indicative of the relationship between and among such items as we expand and as we progress towards operations. Accordingly, there is currently no basis upon which we are able to provide a meaningful comparison of our results of operation for one period as compared to another period.

Liquidity and Capital Resources

As of June 30, 2011, we had current assets of $8,806 consisting of cash and cash equivalents of $7,271 as well as deposits and prepayments of $1,535.  As of June 30, 2011, our total assets were $397,185, consisting primarily of the net value of patents of $384,887.

11

As of June 30, 2011, our current liabilities were $2,106,342, consisting primarily of amounts due to our holding company in the amount of $1,309,130, which are unsecured, interest free and repayable upon demand.

As described more fully below under Plan of Operations, our plan of operations calls for significant expenditures in connection with conducting additional research and development activities and conducting clinical trials TG 21.

Plan of Operations

Our plan of operations for the fiscal year ending December 31, 2011, is to continue to conduct additional research and development activities regarding TG 21 and other potential antiviral solutions for various viruses.  Our initial consideration will be to begin pre-clinical and clinical trials in China in cooperation with the South China Center for Innovative Pharmaceuticals (SCCIP), to undertake efforts in the United Kingdom directed toward international recognition of TG 21, to conduct additional research and development in India and to prepare for filing of additional patent applications in various countries.

We currently estimate that we will require approximately US$7 million to conduct initial clinical trials and the additional research and development activities described above, and approximately US$3 million for working capital purposes.  We do not currently have any arrangements in place to obtain the necessary financing for these activities and may not be able to find such financing on terms which are acceptable to us. We believe the most likely source of additional financing presently available to us is through sale of equity capital after, or in conjunction with, the process of establishing a public trading market for our shares.  There can be no assurance that a trading market will be established, or we will be able to raise additional capital on terms we consider satisfactory, either after, or in conjunction with, the establishment of a trading market for our shares.

We have no current sources of liquidity other than cash on hand.  We do not have in place any line of credit or other credit facility, and our lack of revenue and our assets with which to be collateralized of a loan would make borrowings from conventional financial institutions or funds a difficulty. For this reason, we believe that the most feasible source of funds currently available to us is from the offer and sale of equity securities, or debt securities convertible into equity securities either after, or in conjunction with, the establishment of a public trading market for our shares.

Going Concern Consideration

The Company is a development stage company. The Company incurred a net loss of $183,455 for the six months ended June 30, 2011 and has accumulated net loss of $1,716,627 as at June 30, 2011. The Company's ability to continue as a going concern must be considered in light of the problems, expenses and complications frequently encountered in emerging markets and the competitive environment in which the Company operates. The Company is pursuing financing for its operations. Failure to secure such financing and to raise additional equity capital may result in the Company depleting its available funds and not being able to pay its obligations. These financial statements do not include any adjustment to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

12

ITEM 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not Applicable

ITEM 4.  CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean a company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.  The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures.  Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported with the time periods specified.  Our chief executive officer and chief financial officer also concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievement of these objectives.  

Changes in Internal Control over Financial Reporting

There was no change in the Company's internal control over financial reporting during the period ended June 30, 2011, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

13

PART II   OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

The Company is not a party to any pending legal proceedings, and no such proceedings are known to be contemplated. No director, officer or affiliate of the Company, and no owner of record or beneficial owner of more than 5.0% of the securities of the Company, or any associate of any such director, officer or security holder is a party adverse to the Company or has a material interest adverse to the Company in reference to pending litigation.

ITEM 1A. RISK FACTORS

Smaller reporting companies are not required to provide the information required by this item.

ITEM 2.   UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.   (REMOVED AND RESERVED).

ITEM 5.   OTHER INFORMATION.

None.

ITEM 6.   EXHIBITS.

3.1	Original Articles of Incorporation filed with the State of Nevada on September 13, 2007, incorporated by reference from exhibit to Form 10 filed with the Securities and Exchange Commission on October 8, 2008 (incorporated by reference from exhibit to Form 8-K filed with the Securities and Exchange Commission on October 22, 2009).
3.2	Bylaws incorporated by reference from exhibit to Form 10 filed with the Securities and Exchange Commission on October 8, 2008 (incorporated by reference from exhibit to Form 8-K filed with the Securities and Exchange Commission on October 22, 2009).
31.1	Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2	Certifications pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
32.2	Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.*
101	101. SCH XBRL Schema Document.*
101	CAL XBRL Taxonomy Extension Calculation Linkbase Document.*
101	LAB XBRL Taxonomy Extension Label Linkbase Document*

14

101	PRE XBRL Taxonomy Extension Presentation Linkbase Document*
101	DEF XBRL Taxonomy Extension Definition Linkbase Document*

* filed herewith

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.

ANTIVIRAL TECHNOLOGIES, INC.

By:

/s/  Bill Piu CHAN

--------------------------------------------------

Bill Piu CHAN, Chief Executive Officer

Date:  August 15, 2011.

By:

/s/  Kin Chung CHENG

-------------------------------------------------------

Kin Chung CHENG, Chief Financial Officer

Date:  August 15, 2011.

15

EX-31

EXHIBIT 31.2

I, Cheng Kin Chung, certify that:

1. I have reviewed this quarterly report on Form 10-Q of ANTIVIRAL TECHNOLOGIES, INC;

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 small business issuer as of, and for, the periods presented in this report;

4. The small business issuer's other certifying officer(s) 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 small business issuer 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 small business issuer, 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) Designed 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 small business issuer'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 small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5. The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer'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 small business issuer'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 small business issuer's internal control over financial reporting.

Date: August 15, 2011

By: /s/ Cheng Kin Chung, Chief Financial Officer

EX-31

EXHIBIT 31.1

I, Bill Piu Chan, certify that:

1. I have reviewed this quarterly report on Form 10-Q of ANTIVIRAL TECHNOLOGIES, INC.;

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 small business issuer as of, and for, the periods presented in this report;

4. The small business issuer's other certifying officer(s) 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 small business issuer 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 small business issuer, 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) Designed 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 small business issuer'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 small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

5. The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer'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 small business issuer'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 small business issuer's internal control over financial reporting.

Date: August 15, 2011

By: /s/ Bill Piu Chan, CEO

EX-32

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of ANTIVIRAL TECHNOLOGIES, INC. (the "Company") on Form 10-Q for the period ended June 30, 2011 (the "Report"), I, Cheng Kin Chung, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirement of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the Company's financial position and results of operations.

By: /s/ Cheng Kin Chung, Chief Financial Officer

Date: August 15, 2011

EX-32

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of ANTIVIRAL TECHNOLOGIES, INC. (the "Company") on Form 10-Q for the period ended June 30, 2011 (the "Report"), I, Bill Piu Chan, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) The Report fully complies with the requirement of Section 13(a) or 15 (d) of the Securities Exchange Act of 1934; and

2) The information contained in the Report fairly presents, in all material respects, the Company's financial position and results of operations.

By: /s/ Bill Piu Chan, CEO

Date: August 15, 2011

XML



CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010 AND FROM SEPTEMBER 13, 2007 (INCEPTION) TO JUNE 30, 2011 (USD $)	3 Months Ended		6 Months Ended		46 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011
Operating expenses:
Selling and distribution costs	$ 3		$ 1,684	$ 1,048	$ 39,086
General and administrative expenses	87,667	96,910	181,779	204,605	1,551,387
Loss from operations before other expenses	(87,670)	(96,910)	(183,463)	(205,653)	(1,590,473)
Other expenses – net exchange gain/ (loss)		(1)	2	67	(95,224)
Written off on patents					8,328
Written off bad debt					(3,585)
Preliminary expenses					(1,393)
Interest income	3	5	6	11	14,338
Interest expense					(31,962)
Net Loss	(87,667)	(96,906)	(183,455)	(205,575)	(1,716,627)
Other comprehensive income:
Foreign currency translation gain/ (loss)	(2,265)	2,864	(1,816)	4,165	2,328
Comprehensive Loss	$ (89,932)	$ (94,042)	$ (185,271)	$ (201,410)	$ (1,714,299)
Net loss per common share basic and diluted	$ 0.00	$ 0.00	$ 0.00	$ 0.00	$ (0.01)
Weighted average number of shares basic and diluted	148,350,649	150,000,000	148,350,649	150,000,000	148,350,649

XML



CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND ACCUMULATED OTHER COMPREHENSIVE INCOME FOR THE PERIOD FROM SEPTEMBER 13, 2007 (INCEPTION) TO JUNE 30, 2011 (USD $)		Total	Common Stock	Additional Paid in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Total Stockholder Equity (Deficit)
Common stock at Sep. 12, 2007
Foreign currency translation adjustment					$ 1,042		$ 1,042
Net Loss						(319,416)	(319,416)
Stockholder Equity at Dec. 31, 2007			147,000	(146,999)	1,042	(319,416)	(318,373)
Common stock at Dec. 31, 2007			147,000	(146,999)			1
Shares issued at Dec. 31, 2007			147,000,000
Common stock issued at Dec. 31, 2007			147,000,000
Foreign currency translation adjustment					10		10
Net Loss						(310,453)	(310,453)
Stockholder Equity at Dec. 31, 2008			147,000	(146,999)	1,052	(629,869)	(628,816)
Shares issued at Dec. 31, 2008			147,000,000
Reverse acquisition			3,000	2,141			5,141
Stock issued pursuant to reverse acquisition			3,000,000
Foreign currency translation adjustment					492		492
Net Loss						(462,012)	(462,012)
Stockholder Equity at Dec. 31, 2009			150,000	(144,858)	1,544	(1,091,881)	(1,085,195)
Shares issued at Dec. 31, 2009			150,000,000
Foreign currency translation adjustment					2,600		2,600
Net Loss						(441,291)	(441,291)
Stockholder Equity at Dec. 31, 2010		(1,523,886)	150,000	(144,858)	4,144	(1,533,172)	(1,523,886)
Shares issued at Dec. 31, 2010			150,000,000
Common stock at Dec. 31, 2010	[1]	150,000
Foreign currency translation adjustment					(1,816)		(1,816)
Net Loss		(183,455)				(183,455)	(183,455)
Stockholder Equity at Jun. 30, 2011		(1,709,157)	150,000	(144,858)	2,328	(1,716,627)	(1,709,157)
Common stock at Jun. 30, 2011	[2]	$ 150,000
Shares issued at Jun. 30, 2011			150,000,000

[1] Common stock, $0.001 par value; 150,000,000 shares authorized; 150,000,000 shares issued and outstanding as of December 31, 2010

[2] Common stock, $0.001 par value; 150,000,000 shares authorized; 150,000,000 shares issued and outstanding as of June 30, 2011.

XML



Document and Entity Information (USD $)	6 Months Ended
	Jun. 30, 2011
Document and Entity Information
Entity Registrant Name	ANTIVIRAL TECHNOLOGIES, INC.
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Entity Central Index Key	0001445226
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	150,000,000
Entity Public Float	$ 0
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	No
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2

XML



Equity

6 Months Ended

Jun. 30, 2011

Equity

Stockholders' Equity Note Disclosure [Text Block]

NOTE 10  COMMON STOCK

As a result of the share exchange transaction on October 14, 2009, which is being accounted for as a “reverse merger,” the Group’s capital structure has changed. Following completion of the share exchange transaction, the Company has a total of 150,000,000 shares of $0.001 par value common stock issued and outstanding.  Common stock recorded was $150,000 with additional paid-in capital of ($144,858).

XML



Statement of Financial Position, Classified (USD $)	Jun. 30, 2011	Dec. 31, 2010
Statement of Financial Position, Classified
Patents, net	$ 384,887	$ 369,112

XML



Accounting Policies

6 Months Ended

Jun. 30, 2011

Accounting Policies

Significant Accounting Policies [Text Block]

NOTE 5  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)          Principles of consolidation

The consolidated financial statements are presented in US Dollars and include the accounts of the Company and its subsidiary.  All significant inter-company balances and transactions are eliminated in consolidation.

The Company owned its subsidiary soon after its inception and continued to own the equity’s interests through June 30, 2011.  The following table depicts the identity of the subsidiary:

		Attributable equity	Registered
Name of subsidiary	Place of Incorporation	interest %	capital
Obio Pharmaceutical (H.K.) Ltd	Hong Kong	100	$1
Beijing Obio Pharmaceutical Co., Ltd	PRC	100	$200,000

(b)          Use of estimates

The preparation of the consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods.  Management makes these estimates using the best information available at the time the estimates are made; however actual results could differ materially from those estimates.

(c)           Economic and political risks

The Company’s operation is conducted in the PRC. Accordingly, the Company’s business, financial condition and results of operations may be influenced by the political, economic and legal environment in the PRC, and by the general state of the PRC economy.

The Company’s operations in the PRC are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political and social conditions in the PRC, and by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, currency conversion, remittances abroad, and rates and methods of taxation, among other things.

(d)          Property, plant and equipment

Plant and equipment are carried at cost less accumulated depreciation.  Depreciation is provided over their estimated useful lives, using the straight-line method. Estimated useful lives of the plant and equipment are as follows:

                       Office equipment5 years

                       Testing equipment5 years

The cost and related accumulated depreciation of assets sold or otherwise retired are eliminated from the accounts and any gain or loss is included in the statement of operation.

(e)           Patents

Patents that are acquired by the Company and/or self-invented are stated as cost less accumulated amortization. Amortization is provided over the respective useful lives, using the straight-line method.  Estimated useful lives of the patents are 20 years from the date the patent is filed.

(f)            Accounting for the impairment of long-lived assets

The Company periodically evaluates the carrying value of long-lived assets to be held and used, including intangible assets subject to amortization, when events and circumstances warrant such a review, pursuant to the guidelines established in ASC No. 360. The carrying value of a long-lived asset is considered impaired when the anticipated undiscounted cash flow from such asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. Losses on long-lived assets to be disposed of are determined in a similar manner, except that fair market values are reduced for the cost to dispose.

During the reporting years, there was no impairment loss.

(g)          Cash and cash equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents. The Company maintains bank accounts in the Hong Kong. The subsidiaries of the Company maintain bank accounts in Hong Kong and the PRC.

(h)          Income taxes                        

The Company accounts for income taxes in interim periods in accordance with ASC Topic 740, Income Taxes (“ASC 740”).  We have determined an estimated annual effective tax rate.  The rate will be revised, if necessary, as of the end of each successive interim period during our fiscal year to our best current estimate.  As of June 30, 2011, the estimated effective tax rate for the year will be zero.

ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.  This pronouncement also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.

(i)           Foreign currency translation

The accompanying consolidated financial statements are presented in United States dollars. The functional currency of the Company is the Hong Kong Dollar (HK$) and Renminbi (RMB). The consolidated financial statements are translated into United States dollars from RMB at period-end exchange rates as to assets and liabilities and average exchange rates as to revenues and expenses. Capital accounts are translated at their historical exchange rates when the capital transactions occurred.

The exchange rates used to translate amounts in HK$ and RMB into USD for the purposes of preparing the consolidated financial statements were as follows:

	June 30, 2011	December 31, 2010	June 30, 2010
Twelve months ended HKD : USD exchange rate		7.7832
Six months ended HKD : USD exchange rate	7.78350		7.7847
Average six months ended HKD : USD exchange rate	7.78297		7.77168

	June 30, 2011	December 31, 2010	June 30, 2010
Twelve months ended RMB : USD exchange rate		6.5920
Six months ended RMB : USD exchange rate	6.4640		6.8086
Average six months ended RMB : USD exchange rate	6.54818		6.83474

The RMB is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions.  No representation is made that the RMB amounts could have been, or could be, converted into USD at the rates used in translation. In addition, the current foreign exchange control policies applicable in PRC also restrict the transfer of assets or dividends outside the PRC.

(j)            Per Share Information

Earnings per share are based on the weighted average number of shares outstanding during the period after consideration of the dilutive effect, if any, for common stock equivalents, including stock options, restricted stock, and other stock-based compensation. Earnings per common share are computed in accordance with ASC Topic 260, Earnings Per Share, which requires companies to present basic earnings per share and diluted earnings per share. Basic earnings per share are computed by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share are computed by dividing net income by the weighted average number of shares of common stock outstanding and dilutive securities outstanding during the year.  We had a net loss for the six-month periods ended June 30, 2011 and 2010, and accordingly, any outstanding equivalents would be anti-dilutive.

(k)          Recently Accounting Pronouncements

We have reviewed all recently issued, but no yet effective, accounting pronouncements and do not believe the future adoptions of any such pronouncements may be expected to cause a material impact on our financial condition or the results of operations.

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Fair Value Measures and Disclosures

6 Months Ended

Jun. 30, 2011

Fair Value Measures and Disclosures

Fair Value Disclosures [Text Block]

NOTE 12  FAIR VALUE OF FINANCIAL INSTRUMENTS

ASC Topic 820, “Fair Value Measurements and Disclosures” ("ASC 820"), provides a comprehensive framework for measuring fair value and expands disclosures which are required about fair value measurements. Specifically, ASC 820 sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. ASC 820 defines the hierarchy as follows:

Level 1 - Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed on the New York Stock Exchange.

Level 2 - Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities in Level 2 are typically either comparable to actively traded securities or contracts or priced with models using highly observable inputs.

Level 3 - Significant inputs to pricing that are unobservable as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation, such as complex and subjective models and forecasts used to determine the fair value of financial transmission rights.

The Company’s financial instruments consist of cash and cash equivalents, payables, and amounts due to officers, directors and stockholder. The carrying values of cash and cash equivalents, payables, and amounts due to officers, directors and stockholder approximate their fair value due to their short maturities.

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Receivables, Loans, Notes Receivable, and Others (USD $)	Jun. 30, 2011	Dec. 31, 2010
Receivables, Loans, Notes Receivable, and Others
Prepayments, deposits and other receivables	$ 1,535	$ 7,899

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Segment Reporting

6 Months Ended

Jun. 30, 2011

Segment Reporting

Segment Reporting Disclosure [Text Block]

NOTE 13  SEGMENT INFORMATION

The Company is principally engaged in business of human pharmaceutical research and development.  No significant revenues are derived during the reporting periods. Accordingly, no analysis of the Company’s sales and assets by geographical market is presented.

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Related Party Disclosures

6 Months Ended

Jun. 30, 2011

Related Party Disclosures

Related Party Transactions Disclosure [Text Block]

NOTE 11  RELATED PARTY TRANSACTIONS

In the normal course of its business, the group carried out the following related party transactions during the six months ended June 30, 2011 and 2010.

		For the six months ended
		June 30, 2011		June 30, 2010
Company secretarial fee paid to related parties (a)	$	498	$	500

(a)           The company secretarial fee was paid to related companies controlled by Chan Kin Man, Eddie, a director of the stockholder.

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Organization, Consolidation and Presentation of Financial Statements

6 Months Ended

Jun. 30, 2011

Organization, Consolidation and Presentation of Financial Statements

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

NOTE 1.  BASIS OF PRESENTATION

The accompanying unaudited financial statements of Antiviral Technologies, Inc. at June 30, 2011 and 2010 have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial statements, instructions to Form 10-Q and Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2010. In management's opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation to make our financial statements not misleading have been included. The results of operations for the periods ended June 30, 2011 and 2010 presented are not necessarily indicative of the results to be expected for the full year. The December 31, 2010 balance sheet has been derived from the Company’s audited financial statements included in its annual report on Form 10-K for the year ended December 31, 2010.

NOTE 2.  ORGANIZATION AND PRINCIPAL ACTIVITY

Antiviral Technologies, Inc. (“the Company”) was incorporated in the state of Nevada on September 13, 2007, as Table Mesa Acquisitions, Inc., and on October 13, 2009, changed its name to Antiviral Technologies, Inc.  On October 14, 2009, the Company acquired Obio Pharmaceutical (H.K.) Ltd (“Obio HK”), and its wholly-owned subsidiary, Beijing Obio Pharmaceutical Co., Ltd (“Beijing Obio”) in a share exchange transaction (the “Share Exchange”). This transaction was accounted for as a “reverse merger” with Obio HK deemed to be the accounting acquirer and the Company as the legal acquirer.  Consequently, the assets and liabilities and the historical operations that are reflected in the financial statements for periods prior to the Share Exchange are those of Obio HK, recorded at its historical cost basis. After completion of the Share Exchange, the Company’s consolidated financial statements include the assets and liabilities of the Company and Obio HK, the historical operations of Obio HK and the operations of the Company and its subsidiaries from the closing date of the Share Exchange.

Obio HK is a Hong Kong corporation which was formed on June 28, 1999 as Pacific Cosmos Investment Limited. After formation, it had several name changes including a change to J & P Capital (Hong Kong) Limited, on August 27, 1999, a change to Omega-Pharma (Hong Kong) Limited, on May 21, 2003, a change to Omega-BioPharma (HK) Limited, on December 10, 2003, and finally, a change to its current name, Obio Pharmaceutical (H.K.) Limited, on March 2, 2009.

Beijing Obio was incorporated under the laws of the PRC as a limited company on January 2, 2008.

The Company and its subsidiaries (hereinafter, collectively referred to as the “Group”) are engaged in human pharmaceutical research and development.

Liquidity Disclosure [Policy Text Block]

NOTE 4  UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN

The Company's financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not generated revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary equity financing to continue operations and the attainment of profitable operations.

As of June 30, 2011, the Company has not generated any revenue and has incurred an accumulated deficit since inception totaling $1,716,627 at June 30, 2011 and its current liabilities exceed its current assets by $2,097,536. These financial statements do not include any adjustments relating to the classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors noted above raise substantial doubts regarding the Company's ability to continue as a going concern.

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Property, Plant, and Equipment

6 Months Ended

Jun. 30, 2011

Property, Plant, and Equipment

Property, Plant and Equipment Disclosure [Text Block]

NOTE 6  PROPERTY, PLANT AND EQUIPMENT, NET

Property and equipment is summarized as follows:

		As of June 30, 2011		As of December 31, 2010
		--------------------------		-------------------------------
Cost
Plant and Machinery	$	3,879	$	3,879
Furniture, fixture and equipment		1,726		1,692
Office equipment		5,141		5,085
		-----------------------		-----------------------
		10,746		10,656
Accumulated depreciation		(7,254)		(6,582)
		-----------------------		-----------------------
	$	3,492	$	4,074
		==============		==============

Depreciation expenses included in the general and administrative expenses for the six months ended June 30, 2011 and for the year ended December 31, 2010 were $637 and $1,247.

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Intangible Assets, Goodwill and Other

6 Months Ended

Jun. 30, 2011

Intangible Assets, Goodwill and Other

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 7  PATENTS, NET

Patents are summarized as follows:

		As of June 30, 2011		As of December 31, 2010
		---------------------------		-------------------------------
Cost
Patents	$	336,787	$	318,644
License		66,808		66,810
		-----------------------		-----------------------
		403,595		385,454
Accumulated amortization		(18,708)		(16,342)
		-----------------------		-----------------------
	$	384,887	$	369,112
		==============		==============

Amortization included in the general and administrative expenses for the six months ended June 30, 2011 and for the year ended December 31, 2010 were $2,367 and $4,020.

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Statement of Financial Position, Unclassified - Deposit Based Operations (USD $)	Jun. 30, 2011	Dec. 31, 2010
Statement of Financial Position, Unclassified - Deposit Based Operations
Accruals and other payables	$ 147,441	$ 157,676

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Payables and Accruals

6 Months Ended

Jun. 30, 2011

Payables and Accruals

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE 8  AMOUNTS DUE TO DIRECTORS AND OFFICERS

Amounts due to directors and officers were the amount due to Mr. Francis Chi, Director, Dr. Bill Piu Chan, Director and Chief Executive Officer, Mr. Kin Chung Cheng, Director and Chief Financial Officer and Dr. Jess Gilbert Thoene, Director and Chief Technical Officer and was unsecured, interest free and repayable upon completion of any fund raising exercise of Obio HK or ATI. The balances due to directors and officers are $649,771 and $506,174 as of June 30, 2011 and December 31, 2010 respectively.

NOTE 9  AMOUNT DUE TO THE STOCKHOLDER

Amount due to the stockholder was unsecured, interest free and does not have a fixed repayment date.

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CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2011 AND 2010 AND FROM SEPTEMBER 13, 2007 (INCEPTION) TO JUNE 30, 2011 (USD $)	6 Months Ended		46 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011
Net Loss	$ (183,455)	$ (205,575)	$ (1,716,627)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	637	620	7,181
Amortization	2,367	1,822	18,730
Written off on patents			8,328
Change in assets and liabilities:
(Increase)decrease in prepaid expenses, deposits	6,364	160	(1,535)
Increase(decrease) in accruals	(10,235)	17,879	146,951
Increase(decrease) in related party payables			490
Increase(decrease) in amounts due to directors and officers	112,365	141,203	582,754
Increase(decrease) in compensatory option issuances			560
Net cash used in operating activities	(71,957)	(43,891)	(953,168)
Cash flows from investing activities:
Purchase of plant and equipment	(89)	6	(10,745)
Patent filing costs	(18,141)	(14,338)	(411,923)
Net cash used in investing activities	(18,230)	(14,332)	(422,668)
Cash flows from financing activities:
Amount due to director, officer and stockholder	1,376,147	46,110	1,376,147
Sales of common stock			21,000
Net cash provided by financing activities	96,106	46,110	1,397,147
Net increase/(decrease) in cash and cash equivalents	5,919	(12,113)	21,311	[1]
Effect of exchange rate changes on cash and cash equivalents	(1,782)	4,102	(14,040)
Cash and cash equivalents	3,134
Cash and cash equivalents	7,271	2,588	7,271
Supplemental disclosure of cash flow information:
Interest paid			$ 31,962

[1] In 2009, the issuance of Common Stock for the acquisition of Obio (H.K.) of $147,000 by issuance of 147 million shares is not included in the Consolidated Cash Flow Statements due to non-cash in nature.

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Risks and Uncertainties

6 Months Ended

Jun. 30, 2011

Risks and Uncertainties

Concentration Risk Disclosure [Text Block]

NOTE 3  CONCENTRATIONS OF CREDIT RISK AND MAJOR CUSTOMERS

Financial instruments which potentially expose the Company to concentrations of credit risk, consists of cash and other receivables as of June 30, 2011 and 2010. The Company performs ongoing evaluations of its cash position and credit evaluations to ensure collections and minimize losses.

As of June 30, 2011 and 2010, the Company’s bank deposits were all placed with banks in Hong Kong and the PRC where there is currently no rule or regulation in place for obligatory insurance of bank accounts.

The maximum amount of loss due to credit risk that the Company would incur if the counter parties to the financial instruments failed to perform is represented the carrying amount of each financial asset in the balance sheet.

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Subsequent Events

6 Months Ended

Jun. 30, 2011

Subsequent Events

Subsequent Events [Text Block]

NOTE 14 SUBSEQUENT EVENTS

In preparing these financial statements, the Company evaluated the events and transactions that occurred from July 1, 2011, throughAugust 15, 2011, the date these financial statements were issued. The Company has made the required additional disclosures in reporting periods in which subsequent events occur.

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CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2011 AND DECEMBER 31, 2010 (USD $)	Jun. 30, 2011		Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 7,271		$ 3,134
Prepayments, deposits and other receivables	1,535		7,899
Total current assets	8,806		11,033
Non-current assets:
Property, plant and equipment, net	3,492		4,074
Patents, net	384,887		369,112
Total non-current assets	388,379		373,186
Total Assets	397,185		384,219
Current liabilities:
Accruals and other payables	147,441		157,676
Amount due to director, officer and stockholder	1,376,147		1,750,429
Total liabilities	2,106,342		1,908,105
Stockholders' equity/(deficit):
Preferred stock		[1]		[2]
Common stock	150,000	[3]	150,000	[4]
Additional paid-in capital	(144,858)		(144,858)
Accumulated other comprehensive income	2,328		4,144
Deficit accumulated during the development stage	(1,716,627)		(1,533,172)
Total stockholders' equity/(deficit)	(1,709,157)		(1,523,886)
Total Liabilities and Shareholders' Equity	$ 397,185		$ 384,219

[1] Preferred stock, par value $0.001, 20,000,000 shares authorized, no share issued as of June 30, 2011

[2] Preferred stock, par value $0.001, 20,000,000 shares authorized, no share issued as of December 31, 2010.

[3] Common stock, $0.001 par value; 150,000,000 shares authorized; 150,000,000 shares issued and outstanding as of June 30, 2011.

[4] Common stock, $0.001 par value; 150,000,000 shares authorized; 150,000,000 shares issued and outstanding as of December 31, 2010