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The following is an excerpt from a 10KSB SEC Filing, filed by IMMUNOSYN CORP on 3/30/2007.
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IMMUNOSYN CORP - 10KSB - 20070330 - FINANCIAL_STATEMENTS
The Company believes that significant funding will be required to provide adequate sources of working capital during that period. There can be no assurance that the Company will be able to raise any or all the capital required for its operations. Failure to obtain future financing will require the Company to delay or substantially curtail its operations or close its business, resulting in a material adverse effect on the Company.
Off Balance Sheet Arrangements
     None.
Item 7. Financial Statements

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors
Immunosyn Corporation
(a Development Stage Company)
La Jolla, California
We have audited the accompanying balance sheet of Immunosyn Corporation (a Development Stage Company) as of December 31, 2006 and the related statements of operations, cash flows and changes in stockholders’ equity for the period from August 3, 2006 (inception) through December 31, 2006. These financial statements are the responsibility of Immunosyn’s management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Immunosyn Corporation as of December 31, 2006, and the results of its operations and its cash flows for the period described in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that Immunosyn will continue as a going concern. As discussed in Note 2 to the financial statements, Immunosyn suffered losses from operations which raises substantial doubt about its ability to continue as a going concern. Management’s plans regarding those matters also are described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Malone & Bailey, PC
www.malone-bailey.com
Houston, Texas
March 23, 2007

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Immunosyn Corporation
(A Development Stage Company)
BALANCE SHEET
December 31, 2006
         
ASSETS
       
Cash
  $ 9,232  
 
     
Total current assets
    9,232  
 
     
 
       
Other assets
    2,142  
License rights
    400,000  
 
     
 
       
Total assets
  $ 411,374  
 
     
 
       
LIABILITIES & SHAREHOLDERS’ EQUITY
       
 
       
Accrued liabilities
  $ 14,046  
Advances from affiliates
    140,591  
 
     
Total current liabilities
    154,637  
 
     
 
       
Commitments and contingencies
     
 
       
SHAREHOLDERS’ EQUITY
       
Common stock, $.0001 par value, 425,000,000 shares authorized, 272,000,000 issued and outstanding
    27,200  
Additional paid-in capital
    385,300  
 
       
Deficit accumulated in the development stage
    (155,763 )
 
     
 
       
Total shareholders’ equity
    256,737  
 
     
 
       
Total liabilities & shareholders’ equity
  $ 411,374  
 
     
See accompanying summary of accounting policies
and notes to financial statements.

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Immunosyn Corporation
(A Development Stage Company)
STATEMENT OF OPERATIONS
Period from August 3, 2006 (Inception) Through December 31, 2006
         
Selling, general and administrative expenses
  $ 155,763  
 
     
 
       
Total expenses
    155,763  
 
     
 
       
Net loss
  $ (155,763 )
 
     
 
       
Basic and diluted net loss per common share
  $ (0.00 )
 
     
 
       
Weighted average common shares outstanding
    216,140,000  
See accompanying summary of accounting policies
and notes to financial statements.

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Immunosyn Corporation
(A Development Stage Company)
STATEMENT OF CASH FLOWS
Period from August 3, 2006 (Inception) Through December 31, 2006
         
CASH FLOWS FROM OPERATING ACTIVITIES
       
Net loss
  $ (155,763 )
Adjustments to reconcile net loss to cash used in operating activities:
       
Changes in:
       
Accrued liabilities
    14,046  
Other assets
    (2,142 )
 
     
 
       
NET CASH USED IN OPERATING ACTIVITIES
    (143,859 )
 
       
CASH FLOWS FROM FINANCING ACTIVITIES
       
Advances from affiliates
    140,591  
Sale of common stock
    12,500  
 
     
 
       
NET CASH PROVIDED BY FINANCING ACTIVITIES
    153,091  
 
     
 
       
NET CHANGE IN CASH
    9,232  
Cash balance, beginning of period
     
 
     
 
       
Cash balance, end of period
  $ 9,232  
 
     
 
       
SUPPLEMENTAL DISCLOSURES:
       
Cash paid for interest
  $  
Cash paid for income taxes
  $  
 
       
NON-CASH INVESTING AND FINANCING ACTIVITIES:
       
Stock issued for license rights
  $ 400,000  
See accompanying summary of accounting policies
and notes to financial statements.

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Immunosyn Corporation
(A Development Stage Company)
STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Period from August 3, 2006 (Inception) Through December 31, 2006
                                         
                            Deficit        
                            Accumulated        
                    Additional     During        
    Common     Paid-in     Development        
    Shares     Stock     Capital     Stage     Totals  
Balances at August 3, 2006
        $     $     $     $  
 
                                       
Proceeds from issuance of common stock
    125,000,000       12,500                   12,500  
 
                                       
Stock issued for license agreement
    147,000,000       14,700       385,300             400,000  
 
                                       
Net loss
                      (155,763 )     (155,763 )
 
                                       
 
                             
Balances at December 31, 2006
    272,000,000     $ 27,200     $ 385,300     $ (155,763 )   $ 256,737  
 
                             
See accompanying summary of accounting policies
and notes to financial statements.

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Immunosyn Corporation
(A Development Stage Company)
Notes To Financial Statements
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Background
Immunosyn Corporation is a Delaware corporation formed August 3, 2006 and headquartered in La Jolla, California that granted an exclusive worldwide license to market, distribute and sell a biopharmaceutical drug product, currently referred to as SF-1019, for treatment of Chronic Inflammatory Demyelinating Polyneuropathy (“CIDP”), diabetic neuropathy and diabetic ulcers from an affiliated company, Argyll Biotechnologies, LLC (“Argyll Biotech”).
Cash and Cash Equivalents
For purposes of the statement of cash flows, Immunosyn considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
Long-Lived Assets
Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If the carrying amount is not recoverable, an impairment loss is recognized for the amount by which the carrying amount of the asset exceeds its fair value.
Income Taxes
Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amount of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Stock Options
Immunosyn accounts for stock options using the fair value method. Fair value is determined at the date of grant for employee options and at the date at which the grantee’s performance is complete for non-employee options. Compensation cost is recognized over the vesting period based on the fair value of the options. The fair value of the options is calculated using the Black-Scholes option pricing model.
Basic and Diluted Net Loss per Share
Basic and diluted net loss per share calculations are presented in accordance with Financial Accounting Standards Statement 128, and are calculated on the basis of the weighted average number of common shares outstanding during the year. They include the dilutive effect of common stock equivalents in years with net income. Basic and diluted loss per share are the same due to the absence of common stock equivalents.
Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the

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reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Recent Accounting Pronouncements
Immunosyn does not expect any recent accounting pronouncements to have a material effect on its financial position or results of operations.
Note 2. GOING CONCERN UNCERTAINTY
The accompanying financial statements have been prepared assuming that Immunosyn will continue as a going concern. Immunosyn was formed in August 2006 with an initial source of financing from issuance of common stock and an advance from an affiliate. As shown in the financial statements, Immunosyn had an accumulated deficit of $155,763 and a working capital deficit of $145,405 as of December 31, 2006 which is considered insufficient to fund operations over the next 12 months. Management is trying to raise additional capital through sales of common stock as well as seeking financing from third parties. These conditions raise substantial doubt about Immunosyn’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Note 3. LICENSE RIGHTS
Grant of Rights
Under the terms of the license agreement executed on September 28, 2006, Immunosyn was granted the exclusive worldwide right to market, distribute, sell and promote SF-1019 for treatment of CIPD, diabetic neuropathy and diabetic ulcers by Argyll Biotech, in exchange for 147,000,000 shares of the common stock of the Company. Argyll Biotech also licensed its trademarks and granted Immunosyn a right of first offer to enter into additional license agreements for other uses of SF-1019 and its variants and cognates. Argyll Biotech purchased a group of patents for $5,000,000 and licensed one of those patents to Immunosyn. Also, during the first five years of the term of the license agreement, Immunosyn has the right to enter into partnering arrangements with Argyll Biotech for development of other novel drug treatment products.
Development and Regulatory Matters
Argyll Biotech anticipates that it will commence clinical trials and studies of SF-1019 and prepare and submit all filings required for regulatory approval of that product for treatment of CIPD, diabetic neuropathy and diabetic ulcers, both in the United States and in other countries that are targeted for distribution and sale of the product. Argyll Biotech is required to submit periodic written reports to Immunosyn to document its efforts toward procuring such regulatory approval, as well as clinical budgets and plans for each year during which development efforts are conducted. Argyll Biotech retains full responsibility for preparation and implementation of all trial protocols and regulatory activities and for all costs associated with those activities.
Distribution and Promotion
Immunosyn assumes full responsibility to promote and sell SF-1019 for its approved uses. To accomplish this, Immunosyn plans to develop a sales force, and an order processing and distribution network for each country in which regulatory approval of SF-1019 is granted. Immunosyn plans to develop full marketing plans for each such country, although Argyll Biotech will retain a right to participate in all marketing and promotion activities. Each party is responsible for its own costs associated with these activities.

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License Fees
As consideration to Argyll Biotech for the rights granted to Immunosyn under the agreement, Immunosyn issued 147,000,000 shares of common stock to Argyll Biotech. If and to the extent the proceeds received by Argyll Biotech from the disposition of such shares of Immunosyn’s common stock issued are insufficient to fund Argyll Biotech’s budget for obtaining regulatory approval for sale of SF-1019 in the U.S and U.K, Immunosyn will be required to pay a royalty to Argyll Biotech equal to three and one-half per cent (3-1/2%) of Immunosyn’s gross receipts from sales of SF-1019 until Argyll Biotech’s development costs have been reimbursed in full.
Payments and Reports
Argyll Biotech is not obligated to provide any accounting for its use of proceeds, nor does Immunosyn have any audit rights to inspect Argyll Biotech’s use of the license proceeds. Immunosyn is required to submit periodic sales reports to Argyll Biotech, which will be utilized to determine the amount of royalties that are payable, if any, to complete payment of the license fee.
Manufacture and Supply
Argyll Biotech retains responsibility for manufacturing and supplying all of Immunosyn’s requirements of SF-1019. Argyll Biotech plans to sell quantities of the product to Immunosyn at a price per dose that is below the anticipated market or reimbursement price per dose of the product. The exact product price is not specified in the license agreement, and will be the subject of future negotiations once Argyll Biotech’s cost of production is determined. Argyll Biotech shall also confirm through testing and other programs that the commercial quantities of SF-1019 that it manufactures are fully compliant with all manufacturing and laboratory standards applicable to drug products which are intended for use in humans.
Ownership; Patents and Trademarks
Argyll Biotech retains full ownership of its intellectual property, including intellectual property that is jointly-developed by the parties. Argyll Biotech must take reasonable steps to protect its intellectual property from third-party infringement, and to defend Immunosyn against charges of infringement that refer, relate or pertain to Immunosyn’s marketing, sale and distribution of SF-1019.
Publication and Confidentiality
Argyll Biotech and Immunosyn must collaborate on all publications of scientific or medical reports relating to either company’s business, operations, research and development or clinical trial results.
Recall and Indemnification
Argyll Biotech retains full responsibility for costs and activities relating to any recall of SF-1019, and is required to defend, indemnify and hold Immunosyn harmless for, from and against damages associated with those recalls.
Term and Termination
The license agreement is in full force and effect for as long as any patent coverage remains in place for SF-1019 in any country. Either party may terminate the agreement only on account of an uncured material breach by the other party. Immunosyn may terminate the agreement if a non-rebuttable regulatory or patient safety issue is raised, in which event all remaining license fee obligations will immediately be cancelled. Any fees paid prior to termination are non-refundable.
Valuation
The license rights are being recorded at Argyll Biotech’s cost basis of the underlying patents licensed to Immunosyn due to Argyll Biotech being a related party.

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Note 4. ADVANCES FROM AFFILIATES
Immunosyn was advan ced $140,591 from Argyll Equities, LLC who together with an affiliated company, Argyll Biotech, owns 60% of Immunosyn’s common stock. These advances are unsecured and will be repaid on demand. No interest expense was accrued.
Note 5. STOCKHOLDERS’ EQUITY
Stock Options
Immunosyn has adopted a stock option plan for employees, outside consultants, and directors. There are 5,000,000 common shares available for grant under the plan. The plan allows for incentive options with exercise prices of at least 100% of the fair market value of Immunosyn’s common stock and nonqualified options with exercise prices of at least 85% of the fair market value of Immunosyn’s common stock.
Immunosyn accounts for stock options using the fair value method. Fair value is determined at the date of grant for employee options and at the date at which the grantee’s performance is complete for non-employee options. Compensation cost is recognized over the vesting period based on the fair value of the options. The fair value of the options is calculated using the Black-Scholes option pricing model.
No options have been granted as of March 9, 2007.
Note 6. COMMITMENTS AND CONTINGENT LIABILITIES
Pursuant to a subpoena dated January 20, 2006 issued by the Securities and Exchange Commission to an affiliate of Argyll Biotech in proceedings captioned In the Matter of Directors Financial Group, Ltd. and In The Matter of Prime Bank Securities , and pursuant to subpoenas issued by the SEC to affiliates of Argyll Biotech on March 30, 2006 and to Immunosyn on December 15, 2006 in a proceeding captioned In The Matter of The Argyll Group, LLC , Immunosyn and its affiliates have been asked to produce all documents concerning a wide variety of topics including many related directly to Immunosyn. Immunosyn and Argyll Biotech’s affiliates are actively cooperating with the SEC and producing documents responsive to these subpoenas.
On or about July 27, 2006, Daval International Limited filed suit in the United Kingdom, in the High Court of Justice, Chancery Division, against Argyll Biotech and five of Argyll Biotech’s research scientists seeking an injunction and damages based on allegations of breach by the scientists of confidentiality agreements with Daval and conspiracy by Argyll Biotech to wrongfully disclose and use Daval’s trade secrets. Argyll Biotech is investigating the merits of the suit and evaluating its defenses on the basis that, among other grounds, Argyll Biotech’s product and method of producing SF-1019 is fundamentally different than that used by Daval.
Immunosyn has been provided with rent-free office space for two executive offices under a monthly oral agreement with no specific term from its affiliate and shareholder, Argyll Equities LLC. It is uncertain how long Argyll Equities will continue providing office space or on what terms space will continue to be provided to Immunosyn in the future. At present, Immunosyn does not require dedicated office space.

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