SECURITIES AND EXCHANGE COMMISSION

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q/A


[X]    Quarterly Report pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934


For the Quarterly Period Ended June 30, 2009


Commission File No. 000-27237


GENETHERA, INC.

(Exact name of small Business Issuer as specified in its Charter)


Nevada                                   65-0622463


(State or Other Jurisdiction of              (I.R.S. Employer

Incorporation or Organization)            Identification Number)


5255 Marshall Street, Arvada CO              80002

(Address of principal executive offices)          (Zip Code)


Issuer's telephone number, including area code:   (303) 463-6371



Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the issuer 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 is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of large accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer [  ]

Accelerated filer [  ]

Non-accelerated filer [  ]

Smaller reporting company [X]

(Do not check if a smaller reporting company)

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

Yes [  ]

No [X]


State the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 16,968,725 Shares of $.001 par value Common Stock outstanding as of August 21, 2009.


This 10-Q/A is being filed to amend 10-Q filing due to errors noted in the original filing.



1



GENETHERA, INC. AND SUBSIDIARY

FORM 10-Q/A FOR THE QUARTER ENDED JUNE 30, 2009


INDEX



PART 1 - FINANCIAL INFORMATION



Page No.


Item 1. Financial Statements

Consolidated Balance Sheets as of June 30, 2009 and December 31, 2008 (Unaudited)  4


Consolidated Statements of Operations for the three and six months ended June 30, 2009 and June 30, 2008 (Unaudited)  6


Consolidated Statements of Changes in Stockholders’ (Deficit)

for the six months ended June 30, 2009 (Unaudited)

7


Consolidated Statements of Cash Flows for the six months ended June 30, 2009 and June 30, 2008 (Unaudited)   8


Notes to the Consolidated Financial Statements (Unaudited)

10



Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations                 14


Item 3. Quantitative and Qualitative Disclosures about

Market Risk

         21


Item 4. Controls and Procedures

         21


PART II. OTHER INFORMATION


Item 1. Legal Proceedings

         21


Item 2. Recent Sales of Unregistered Securities

   23


Item 3. Defaults Upon Senior Securities

   23


Item 4. Submission of Matters to a Vote of Security Holders    24

               24


Item 5. Other Information

               24


Item 6. Exhibits

   24


Signatures

   24


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PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements


GENETHERA, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

Assets

 

 

 

 

 

 

 

 

 

June 30, 2009

 

December 31, 2008

 

 

 

 

Current Assets

 

 

 

Cash

$        284

 

 $        48                            

Accounts receivable

0

 

821

Prepaid expenses

1,742

 

0

Total Current Assets

2,026

 

                           869

 

 

 

 

Property and equipment

729,078

 

                         727,428

Accumulated Depreciation

(537,889)

 

                        (506,511)

Property and equipment, net

191,189

 

                         220,917

 

 

 

 

Total Assets

$    193,215

 

                        $  221,786

 

 

 

 



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2



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GENETHERA, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Unaudited)


Liabilities and Stockholders' Deficit

 

 

 

 

 

June 30, 2009

 

December 31, 2008

 

 

 

 

Current Liabilities

 

 

 

Accounts payable

323,454

 

$265,651

Accrued expenses

1,619,924

 

1,466,577

Convertible note

4,000

 

0

 

 

 

 

Total Current Liabilities

1,947,378

 

                       1,732,228

 

 

 

 

Notes payable

2,500

 

0

Loan to shareholder

647,979

 

656,979

Total Liabilities

2,597,857

 

                       2,389,207

 

 

 

 

Stockholders' Deficit

 

 

 

Preferred stock, $.001 par value, 20,000,000 shares authorized;

 

 

 

Series A 4,600 shares issued and outstanding as of June 30, 2009 and December 31, 2008

5

 

5

Series B 6,320,000 and 7,320,000 shares issued and outstanding as of June 30, 2009 and December 31, 2008, respectively

6,320

 

7,320

Common stock $.001 par value, 100,000,000 shares authorized;

 

 

 

  16,968,725 and 2,265,816 shares issued and outstanding as of June 30, 2009 and December 31, 2008, respectively

15,170

 

467

Additional paid in capital

16,455,912

 

16,096,984

Accumulated deficit

(18,882,049)

 

(18,272,197)

 

 

 

 

Total Stockholders' Deficit

(2,404,642)

 

                     (2,167,421)

 

 

 

 

 

 

 

 

Total Liabilities &  Stockholders' Deficit

 $193,215                    

 

$221,786



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3



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GENETHERA, INC AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

 (UNAUDITED)

 

3 month ended June 30,

 

6 month ended June 30,

 

2009

 

2008

 

2009

 

2008

 

 

 

 

 

 

 

 

Income:

 

 

 

 

 

 

 

Sales

$     -

 

$    -

 

$    -

 

$  10,822

Research fees

-

 

                          -   

 

-

 

                          -   

Total income

-

 

-

 

-

 

10,822

 

 

 

                               

 

 

 

 

Cost of sales

 -

 

-

 

 -

 

                          -   

 

 

 

 

 

 

 

 

Gross profit

 -

 

-

 

 -

 

10,822

 

 

 

                               

 

 

 

 

Expenses:

 

 

 

 

 

 

 

Consulting

                                     25,093

 

24,525

 

              292,761

 

77,085

   

General and administrative expenses

                                       61,685

 

75,371

 

              119,138

 

146,935

Payroll expenses

                                     62,590

 

58,500

 

            166,090

 

117,000

   Depreciation

                                        15,592

 

17,861

 

               31,378

 

35,801

Lab expenses

                                              300

 

97

 

                    485

 

224

Total expenses

                                      165,260

 

176,354

 

            609,852

 

377,045


Loss from operations

(165,260)

 

(176,354)

 

(609,852)

 

(366,223)

 

 

 

 

 

 

 

 

Net loss

$ (165,260)

 

$ (176,354)

 

$ (609,852)

 

$  (366,223)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share basic & diluted

($0.01)

 

($15.58)

 

($0.08)

 

($30.72)


Weight average common shares outstanding basic and diluted

                                  11,977,687

 

11,316

 

        7,460,305

 

11,923




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4



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GENETHERA, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT

FOR THE SIX MONTHS ENDED JUNE 30, 2009

(UNAUDITED)


 

 

Preferred Stock A

Preferred Stock B

 

Common Stock

 

Paid in

 

Accumulated

 

 

Shares

 

Amount

Shares

 

Amount

Shares

Amount

 

Capital

 

Deficit

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance December 31, 2008

 

4,600

 

$5

7,320,000

 

$7,320

2,265,816

$467

 

$16,096,984

 

$(18,272,197)

$(2,167,421)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued for consulting services

 

 

 

 

 

 

 

                 3,913,103

33

3,913

 

                         293,199

 

 

                           297,112

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares based compensation

 

 

 

 

 

 

 

                    646,948

                       647

 

                            67,729

 

 

                            68,376

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares issued for conversion of note

 

 

 

 

 

 

 

142,858

143

 

7,000

 

 

7,143

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Conversion of preferred stock to common stock

 

 

 

 

(1,000,000)

 

(1,000)

10,000,000

10,000

 

(9,000)

 

 

-

Net Loss June 30, 2009

 

 

 

 

 

 

 

 

 

 

 

 

                      (609,852)

                  (609,852)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance June 30, 2009

 


4,600

 


 $5             


6,320,000

 

$6,320


16,968,725


$15,170       

 


$16,455,912      

 


$(18,882,049)     


 $(2,404,642)      



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5



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GENETHERA, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

 (UNAUDITED)


 

6 month period ended

June 30,

 

 

 

 

 

 

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

Cash flows from operating activities:

 

 

 

 

Net loss

$ (609,852)

 

$  (366,223)

 

 

 

 

 

 

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

Depreciation

31,378

 

35,801

 

Compensation in exchange for

common stock

365,488

 

593,151

 

Changes in operating assets and liabilities:

 

 

 

 

(Increase) Decrease in:

 

 

 

 

Accounts receivable

822

 

67,446

 

Prepaid expenses

(1,742)

 

-

 

Accounts payable and accrued liabilities

215,792

 

(443,951)

 

 

 

 

 

 

Net cash provided by (used in) operating activities

1,886

 

(113,776)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

Purchase of equipment

(1,650)

 

-

 

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

Proceeds from issuance of  stock

-

 

180,000

 

Payments of loans payable

-

 

(66,419)

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by financing activities

-

 

113,581

 

 

 

 

 

 

Net increase (decrease) in cash

236

 

(195)

 

 

 

 

 

 

Cash, beginning of year

48

 

196

 

 

 

 

 

 

Cash, end of year

284

 

$         1

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosures of cash flow information:

 

 

 

 

Cash paid for interest expense

$         -

 

$         -

 

Cash paid for taxes

$         -

 

$         -

 



Noncash Financial and Investing Activities:


Common stock issued for conversion of debt   $    7,143

  $   -

Common stock issued for conversion of

   Preferred stock

 1,000

            -




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6




GENETHERA, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2009

UNAUDITED




NOTE 1  

BASIS OF PRESENTATION


The accompanying unaudited interim consolidated financial statements of GeneThera, Inc. and subsidiary, have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited consolidated financial statements and notes thereto contained in GeneThera 2008 annual report on Form 10-K/A. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements that would substantially duplicate the disclosure contained in the audited financial statements for fiscal year 2008, as reported in the Form 10-K/A, have been omitted.


NOTE 2

GOING CONCERN


As shown in the accompanying consolidated financial statements, GeneThera had an accumulated deficit and a working capital deficit as of June 30, 2009. These conditions raise substantial doubt as to GeneThera ability to continue as a going concern. Management’s plan with regard to these matters includes raising working capital and significant assets and resources to assure GeneThera viability, through private or public equity offering, and/or debt financing, and/or through the acquisition of new business or private ventures. The financial statements do not include any adjustments that might be necessary if GeneThera is unable to continue as a going concern.


NOTE 3

RECENTLY ADOPTED PRONOUNCEMENTS


GeneThera does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the company’s results of operations, financial position or cash flows.


NOTE 4     EQUITY


During the six months ended June 30, 2009, 4,560,051 common shares valued at $365,488 were issued to consultants for services.  


During the six months ended June 30, 2009, 142,858 common shares valued at $7,143 were issued for conversion of debt.  


In May 2009, the CEO of GeneThera converted 1,000,000 Preferred B shares into 10,000,000 common shares.


NOTE 5       OPTIONS


 

Options  Common Share Equivalents

Weighted Average Exercise Price

Options Exercisable  Common Share Equivalents

Weighted Average Exercise Price

Outstanding December 31, 2008

2,730,000

$.034

2,730,000

$.034

Granted

-

-

-

-

Exercised

-

-

-

-

Forfeited

-

-

-

-

Outstanding June 30, 2009

2,730,000

$.034

2,730,000

$.034



 

Options  Common Share Equivalents

Exercise Price

Remaining Contractual Life as of June 30, 2009

 

1,780,000

$.025

2.83

 

950,000

$.050

1.75

Total Options Outstanding and Exercisable

2,730,000

$.034

 
















Item 2. Management's Discussion and Analysis and Results of Operation


The following discussion and analysis should be read in conjunction with the financial statements and notes thereto that appear elsewhere herein.


FORWARD-LOOKING AND CAUTIONARY STATEMENTS


Sections of this Form 10-Q/A, including the Management Discussion and Analysis or Plan of Operation, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the Securities Act), Section 21E of the Securities and Exchange Act of 1934, as amended (the Exchange Act), and the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are subject to risks and uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. You should not unduly rely on these statements. Forward-looking statements involve assumptions and describe our plans, strategies, and expectations. You can generally identify a forward-looking statement by words such as may, will, should, would, could, plan, goal, potential, expect, anticipate, estimate, believe, intend, project, and similar words and variations thereof. This report contains forward-looking statements that address, among other things,


* our financing plans,

* regulatory environments in which we operate or plan to operate, and

* trends affecting our financial condition or results of operations, the impact of competition, the start-up of certain operations and acquisition opportunities.


Factors, risks, and uncertainties that could cause actual results to differ materially from those in the forward-looking statements ("Cautionary Statements") include, among others,


* our ability to raise capital,

* our ability to execute our business strategy in a very competitive environment,

* our degree of financial leverage,

* risks associated with our acquiring and integrating companies into our own,

* risks relating to rapidly developing technology,

* regulatory considerations;

* risks related to international economies,

* risks related to market acceptance and demand for our products and services,

* the impact of competitive services and pricing, and

* other risks referenced from time to time in our SEC filings.


All subsequent written and oral forward-looking statements attributable to us, or anyone acting on our behalf, are expressly qualified in their entirety by the cautionary statements. We do not undertake any obligations to publicly release any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect unanticipated events that may occur.


RESULTS OF OPERATIONS


Six months ended June 30, 2009


Gross profits for the six-month period ended June 30, 2009 were zero compared to $10,822 for the same period last year. Payroll expenses increased from $117,000 for the six month period ending June 30, 2008 to $166,090 for the six month period ending June 30, 2009.  Professional expenses (consulting and professional fees) comparing the six month period ending June 30, 2009, to the six month period ending June 30, 2008, increased from $77,085 to $292,761 with the increased attributable to the consultants throughout the year.


Three months ended June 30, 2009


Gross profits for the three-month period ended June 30, 2009 were zero compared to zero for the same period last year. Payroll expenses increased from $58,500 for the six month period ending June 30, 2008 to $62,590 for the six month period ending June 30, 2009.  Professional expenses (consulting and professional fees) comparing the six month period ending June 30, 2009, to the six month period ending June 30, 2008, increased from $24,525 to $25,093 with the increased attributable to the consultants throughout the year.



LIQUIDITY AND CAPITAL RESOURCES


The Company had a cash balance of $284 as of June 30, 2009. Accounts receivable as of June 30, 2009 was zero. It is estimated that it will require outside capital for the remainder of fiscal year 2009 for the commercialization of GeneThera molecular assays as well as the development of their therapeutic vaccines. The Company intends to raise these funds by means of one or more private offerings of debt or equity securities or both and also generating revenue from Mexico.  Currently the company is in discussions with one group to obtain financing through either debt and/or equity.  No definitive agreements have been signed.  There are no guarantees whether the Company will be able to secure such a financing, and if the financing is secured, there are no guarantees whether the Company can achieve the goals laid out in its business plan fully. We will require significant additional funding in order to achieve our business plan.


Our longer-term working capital and capital requirements will depend upon numerous factors, including revenue and profit generation, pre-clinical studies and clinical trials, the timing and cost of obtaining regulatory approvals, the cost of filing, prosecuting, defending, and enforcing patent claims and other intellectual property rights, competing technological and market developments, collaborative arrangements.  Additional capital will be required in order to attain such goals.  Such additional funds may not become available on acceptable terms and we cannot give any assurance that any additional funding that we do obtain will be sufficient to meet our needs in the long term.


Item 3.  GENETHERA PLAN OF OPERATION


Background


In November 2007, GeneThera, Inc. reincorporated in the State of Nevada due to a third party which purchased the GeneThera Florida Charter and requested the Company to pay $80,000. We had a special meeting with three shareholders where it was unanimously resolved for GeneThera to transfer its Charter to the State of Nevada as soon as possible in order to recognize our new incorporation on our next SEC filing. The reinstatement was completed by January 2008. GeneThera has developed proprietary diagnostic assays for use in the agricultural and veterinary markets. Specific assays for Chronic Wasting Disease (among elk and deer) and Mad Cow Disease (among cattle) have been developed and are available currently on a limited basis.  E.coli (predominantly cattle) and Johnes disease (predominantly dairy cattle and bison) diagnostics are in development.


GeneThera provides genetics-based diagnostic and is currently working on vaccine solutions to meet the growing demands of today's veterinary industry and tomorrow's agriculture and healthcare industries. The company is organized and operated both to continually apply its scientific research to more effective management of diseases and, in so doing, realize the commercial potential of molecular biotechnology.


The Company believes it will require significant additional funding in order to achieve its business plan.  Over the next 12 months, in order to have the capability of achieving its business plan, the Company will require at least $5,000,000.  There are no guarantees whether the Company will be able to secure such a financing, and if the financing is secured, there are no guarantees whether the Company can achieve the goals laid out in its business plan fully.



RESEARCH AND DEVELOPMENT


We anticipate that research and development (R&D) will be the source for both assay development and vaccine design/development.  If we are able to develop assays for different diseases, we intend to formalize the procedure into a commercial application through a series of laboratories to be owned and operated by GeneThera.  To date, we have introduced our diagnostic solution for Chronic Wasting Disease and Mad Cow Disease on a very limited basis.  We anticipate that R&D will be ongoing during the life of the Company, as this is the source for new products to be introduced to the market.  Our plan is to seek new innovations in the biotechnology field. We cannot assure you that we will be successful in developing or validating any new assays or, if we are successful in developing and validating any such assays, that we can successfully commercialize them or earn profits from sales of those assays.  Furthermore, we cannot assure you that we will be able to design, develop, or successfully commercialize any vaccines as a result of our research and development efforts.


COMMERCIAL DIAGNOSTIC TESTING


In the event that we are able to develop assays for the detection of diseases in animals, we intend to establish a series of diagnostic testing laboratories geographically proximate to the primary sources of individual diseases and/or according to specific available operating efficiencies.  The specific number of labs to be built and operated will be based on assay demand (demand facilitated by the number of specific disease assays GeneThera develops), our ability to obtain the capital to build the labs, and our ability to successfully manage them from our principal office.  As of the date of this filing, we are in negotiation to establish one diagnostic testing laboratory outside of our Colorado facility.






LICENSING


Through our third division, Licensing, we intend to manage the marketing and sale of the vaccines developed by GeneThera Research & Development division.  As GeneThera does not intend to be a vaccine manufacturer, we plan to use our Licensing division to license the technology related to any vaccines that may be developed and to manage the revenue potential available from the successful development and validation of specific vaccines.  We cannot provide any assurance that we will develop any vaccines or that, if they are developed, we will be able to license them successfully or that any such license will produce significant revenues.



R&D SERVICES


Molecular, Cellular, Viral Biology Research, and Consulting Services.  We provide independent research services to scientists in academia, the pharmaceutical industry, and the biotechnology industry.  Primarily, GeneThera expertise focuses on technology relevant to animal and human immunotherapy.  These services are backed by the cumulative experiences of greater than 50 years of research and development in both government and industry by GeneThera senior scientists. GeneThera intends to develop a commercial-scale implementation of Adenovector Purification Process to support R&D material production.  Furthermore, GeneThera intends to evaluate and test commercially available expression vectors and incorporate them into its vector repertoire.  These technologies are well established within the repertoire of GeneThera scientific staff.  We cannot provide any assurance, however, that we will be able to successfully offer these services or that, if offered, we can provide them profitably.


Research & Development Services:


Molecular Biology:


Synthetic cDNA Construction

Prokaryotic Expression Vector Construction & Development

E.coli Expression Strain Evaluation

Pilot Scale Fermentation

Mammalian Expression Vector Construction & Development

Baculovirus Expression

Protein Isolation

Protein Engineering: Complement Determining Region Conjugated Proteins

Monoclonal Antibody Production Chimerization & Humanization

Vector design for Prokaryotic Expression of Antibody Fragments (Fab) and Single Chain Antibody (ScFv)


Pilot Scale-up Development


Process Purification & Characterization

Assay Development & Quality Control Pharmaceutical Dosage and Formulation


Gene Therapy Testing Services. GeneThera offers GLP (Good Laboratory Procedure) testing programs for somatic cell, viral and naked DNA-based gene therapies.  Our scientists have over nine years experience in providing fully integrated bio-safety testing programs for the cell and gene therapy fields.  To date, the Company has not generated any revenues with regard to these services, and there is no assurance that we will generate any revenues from such services.


Replication-Competent Viral Vector Testing.  Sensitive in vitro cell culture assays are used to detect replication-competent retroviruses or adenoviruses.  GeneThera can work with clients to provide custom replication-competent virus detection assays for the particular vector construct.


Complete Somatic Cell and Viral Vector Packaging and Producer Cell Line Characterization.  GeneThera offers all of the assays mandated by regulatory authorities worldwide for the bio-safety analysis and characterization of cells and cell lines used in gene therapy products.


Vector Stock Characterization.  Custom purity and potency testing is available for gene therapy viral sector stocks.


Vector Purification Process Validation for Viral Clearance.  Most biopharmaceuticals require viral clearance studies to validate the removal of potential contaminants, such as those from bovine components or from helper viruses (adenovirus in AAV production).  GeneThera can provide custom design and performance of viral studies for various vector purification processes.


Custom Bio-safety Testing Programs for Somatic Cell, Ex Vivo Cell, and Tissue Therapies.  GeneThera can guide our clients through the unique process of designing and implementing a bio-safety testing program that meets the needs of each specific project.


GeneThera is currently seeking contracts for these services and is in the final negotiation stage with a publicly traded company to perform these services on an annual basis.  There is no assurance that any contracts will be signed or that the company will generate significant revenues or profits from any such contracts.


BUSINESS MODEL


Summary.  GeneThera animal disease assay development business is based on its Integrated Technology Platform (ITP) that combines a proprietary diagnostic solution called Gene Expression Assay (GES) with PURIVAXTM, its system for analyzing large-scale DNA sequencing.  The first part of this platform is the ongoing development of molecular diagnostic assays solutions using real time Fluorogenic Polymerase Chain Reaction (F-PCR) technology to detect the presence of infectious disease from the blood of live animals.  The second part of the ITP is the development of therapeutic vaccines using RNA interference technology.  It also allows for the efficient, effective, and continuous testing, management and treatment of animal populations.  These facts distinguish the technology from any alternative testing and management methodology available to agriculture today -- all of which require the destruction of individual animals and even entire herds.  Our testing and data analysis processes also allow us not only to separate infected from clean animals, but also to gain knowledge vital to development of preventative vaccines.


Each individual assay utilizes the proprietary Field Collection System (FCS) for the collection and transportation of blood samples to GeneThera laboratory.  The FCS allows GeneThera to maintain the integrity of each sample by the addition of specific reagents to test tubes contained in the system.  GeneThera FCS is designed to be an easy-to-use method of gathering blood samples from harvested or domesticated animals.  It ensures consistency of samples as well as increased assurance of each sample's integrity.


To date, GeneThera has successfully developed the ability to detect Chronic Wasting Disease, a disease affecting elk and deer in North America.  The release of commercialized Field Collection Systems and laboratory diagnostic testing occurred in October of 2003 as a marketing trial.  GeneThera has also successfully developed an assay for the detection of Mad Cow Disease, a disease recently found in the United States, but which has been in Europe for many years.  The Field Collection Systems are available for purchase from the Company.  Chronic Wasting Disease and Mad Cow Disease are both in the family of diseases called Transmissible Spongiform Encephalopathy (TSE).  Diagnostic assays for E.coli O157:H7 and Johnes disease are in the final stages of development.


The Company, through GeneThera, is also developing vaccines for Chronic Wasting Disease and E.coli O157:H7.  The Company will need the approval of the USDA before the vaccines can be manufactured or sold.  The approval process for animal vaccines is time-consuming and expensive.  We anticipate that such approval, if it is obtained, may require more than $5 million and may require more than two years for each vaccine for which approval is sought.  Currently we do not have the capital necessary to seek approval of any of our candidate vaccines, and we cannot provide any assurance that we will be able to raise the capital necessary for such approval on terms that are acceptable to us, if at all.  In addition, even if we are successful in raising the capital necessary to seek approval of any vaccine, there are no assurances that such an approval will be granted, or if granted, whether we will be able to produce and sell such vaccines following such an approval in commercial quantities or to make a profit from such production and sales.






ITEM 4.

CONTROLS AND PROCEDURES


As required by Rule 13a-15 under the Securities Exchange Act of 1934 (the "Exchange Act"), we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures within the 90 days prior to the filing date of this report. These evaluations was carried out under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer are ineffective in timely alerting management to material information relating to us that is required to be included in our periodic SEC filings.


There have been no significant changes in our internal controls or in other factors that could significantly affect internal controls subsequent to the date we carried out our evaluation.


Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act 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 in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.


ITEM 4T.

CONTROLS AND PROCEDURES


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



PART II - OTHER INFORMATION


Item 1.     Legal Proceedings


On or about July 23, 2004, Sisu Media sued GeneThera in Jefferson County District Court for breach of an alleged contract for website services for which the plaintiff seeks compensatory damages, plus costs, interest, and attorneys fees in amounts to be determined at trial.  Trial was held on August 4, 2005, wherein the court determined that Sisu Media was entitled to compensation based only upon the breach of contract claim. Plaintiffs claims in quantum meruit and for unjust enrichment were dismissed. The court also dismissed defendant GeneThera, Inc.s claim of aiding and abetting a breach of fiduciary duty by third party. Entry of judgment was entered in favor of the plaintiff in the amount of $49,000.00. On February 9, 2006, the Company appealed this judgment and on January 9, 2008, the Appellate Committees decision was in favor of the plaintiff due to lack of adequate legal representation. An additional judgment of $6,237.31 was awarded for their attorneys fees. The Company has not paid the abovementioned judgment(s).


On October 11, 2006, MAG Capital, a California Limited Liability Company (Mercator Momentum III, LP; Mercator Momentum Fund LP; Monarch Pointe Fund, Ltd; a British Virgin Islands Corporation), filed litigation against GeneThera, Inc., GTI Corporate Transfer Agents, LLC, a Colorado limited liability company, Antonio Milici, an individual, Tannya L. Irizarry, and Laura Bryan, individuals in the Superior Court State Complaint for breach of written contract. The Company retained legal counsel from Mark A. Shoemaker. In January 2008, MAG Capital dismissed the claims except the anticipatory breach of contract for which the Companys legal counsel filed an appeal dated February 19, 2008.


On or about May 11, 2009, Goldsmith Group, LLC filed a Complaint of Breach of Contract against GeneThera, Inc. for traveling done by Alvin Goldsmith from Goldsmith Group for trips not authorized by the Company. The amount is confusing since the individual combined three separate entities into one judgment. The Company does not know exactly which part of the $29,775.52 belongs under the Company. Goldsmith even claims a desk on this judgment, which was bizarre. The Company was seeking to retain legal counsel due to the complexity of it since Goldsmith combined personal issues and another company in the Complaint. Goldsmith also filed a claim of Unduly Enrichment against GeneThera. The Company was not unduly enriched by anything Goldsmith claimed he did. There was no breach of contract as Alvin Goldsmith from Goldsmith Group LLC did job abandonment on February 18, 2009 and had no contract agreement with the Company. Alvin Goldsmith is the only individual in Goldsmith Group, LLC. There are no other agents involved in the LLC. Part of this Complaint is pending as Dr. Milici was never served since he was out of the country.




SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT


The following table shows, as of June 30, 2009, the common stock owned beneficially by (i) each person known by us to be the beneficial owner of more than five percent of our Common Stock, (ii) each of our directors, (iii) each of our executive officers and (iv) all of our directors and executive officers as a group. Unless otherwise indicated, the address of each person or entity named below is c/o GeneThera, Inc., 5255 Marshall Street, Arvada, CO 80002.


 

 

COMMON STOCK

BENEFICIALLY OWNED(2)

 

  VOTING PREFERRED STOCK BENEFICIALLY OWNED(2)

 

NAME AND ADDRESS OF BENEFICIAL OWNER (1)

 

NUMBER

 

PERCENT

 

NUMBER

 

 PERCENT

 

Antonio Milici (3)

 

 

 2,083

 

 

16.6

 

 

5,000,000

 

 

77.0

 

Tannya L. Irizarry (4)

 

 

147

 

 

1.2

 

 

1,500,000 

 

 

  23.0 

 

All directors and officers

 

 

 

 

 

 

 

 

 

 

 

 

 

as a group (2 persons)

 

 

2,230

 

 

17.8

 

 

6,500,000

 

 

100.0

 

 


(1)

This table is based upon information supplied by officers, directors and principal shareholders and documents filed with the SEC. Unless otherwise indicated, and subject to community property laws if applicable, the Company believes that each of the shareholders named in this table has sole voting and investment power with respect to the shares indicated as beneficially owned.

 

(2)

Applicable percentages are based on 13,557,264 shares of common stock outstanding and on 6,500,000 shares of Series B Preferred Stock outstanding on June 30, 2009, adjusted as required by rules promulgated by the SEC. Although the Series A Preferred Stock is convertible into approximately 7.2 million shares of our common stock (assuming all shares were converted as of the date of this prospectus), this table does not give effect to the Series A Preferred Stock because these shares have no voting rights and their convertibility by the holder was contested by the Company.

 

(3)

Dr. Milici is our Chief Executive Officer and Chairman of the Board. He owns 194 shares of our common stock and 5,000,000 shares or our Series B preferred stock. Pursuant to our Certificate of Designation establishing the Series B Preferred Stock, each share of our currently issued and outstanding Series B preferred stock may be converted into 10 fully paid and non-assessable shares of our common stock. On all matters submitted to a vote of the holders of the common stock, including, without limitation, the election of directors, a holder of shares of the Series B preferred stock shall be entitled to the number of votes on such matters equal to the number of shares of the Series B preferred stock held by such holder multiplied by twenty (20). Therefore, Dr. Milici will have the power to vote 100,000,000 shares, effectively giving him absolute voting control of the Company.

 

(4)

Ms. Irizarry is married to Antonio Milici. Therefore, she has a beneficial interest in his shares.





Item 2.     Changes in Securities


None.


Item 3.     Defaults upon Senior Securities


No defaults upon senior securities.


Item 4.     Submission of Matters to a Vote of Security Holders


No matters were submitted to a vote of security holders.  


Item 5.     Other Information


None.


Item 6.     Exhibits and Reports on Form 10-Q/A


(A)       Financial Statements


Reference is made to the financial statements listed on the Index to Financial Statements in this Form 10-Q/A.


(B)

Exhibits


31.1  Certification pursuant to section 302 of the Sarbanes-Oxley act of 2002

31.2  Certification pursuant to section 302 of the Sarbanes-Oxley act of 2002

     32.1     Certification of the President and Chief Executive

 Officer

     32.2     Certification of the Chief Financial Officer


Signatures


Pursuant to the requirements of the Securities Act of 1933 the Registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Arvada, Colorado on this 21st day of August, 2009.

GENETHERA, INC.

By:  s/ Antonio Milici

Name:   Antonio Milici
Title:  President and Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1933 this Registration Statement has been signed by the following persons in the capacities indicated on August 21, 2009:

Signature

Title(s)


/s/ Antonio Milici

Antonio Milici


President, Chief Executive Officer Director (principal executive officer)


/s/ Tannya L Irizarry
Tannya L Irizarry


Chief Financial Officer (Interim)

/s/ Thomas J Slaga

Thomas J Slaga

Director








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