Proteo Inc. - An der Börse wird nicht geklingelt - 500 Beiträge pro Seite

[kaubeuhut]

Irvine, CA – Kiel, 27. Feb. 2006 – Proteo, Inc. (OTCBB: PTEO; WKN: 925981), und ihre 100%-ige Tochter Proteo Biotech AG gaben heute bekannt: Jean-Michael Sallenave am The Queen’s Medical Research Institute der Universität Edinburgh erforscht seit Jahren die Mechanismen der Lungenentzündung. Seine Arbeitsgruppe sucht insbesondere nach Methoden, entzündliche Lungenerkrankungen zu behandeln. In einer aktuellen Studie, die kürzlich vorab veröffentlicht wurde, haben die Forscher mit molekularbiologischen Techniken Mäuse so verändert, dass diese menschliches Elafin in der Lunge bilden. Bei den Mäusen wurde eine erheblich gesteigerte Immunabwehr beobachtet. Es wurden sowohl verstärkt Antikörper als auch eine größere Zahl von Antigen-präsentierenden Zellen des Immunsystems gebildet. Somit konnte diese Gruppe im Tierversuch zeigen, dass Elafin nicht nur durch Entzündung verursachte Gewebeschäden an der Lunge vermindert, sondern möglicherweise auch durch Stärkung der körpereigenen Immunabwehr Einfluss auf Lungeninfektionen nehmen kann. Infektionen der Lunge bei chronisch obstruktiver Lungenerkrankung, insbesondere bei Raucherlunge, sind eine häufige Komplikation und Ursache für eine akute Verschlechterung der Erkrankung.

Quelle: Roghanian A, Williams SE, Sheldrake TA, Brown TI, Oberheim K, Xing Z, Howie SE, Sallenave JM. The Antimicrobial/Elastase Inhibitor Elafin Regulates Lung Dendritic Cells and Adaptive Immunity. Am J Respir Cell Mol Biol. 2006

Birge Bargmann, Vorstand der Proteo Biotech AG: »Diese Ergebnisse lassen uns hoffen, dass Elafin über die bereits bekannten entzündungshemmenden Eigenschaften hinaus positive Wirkungen auf das Immunsystem haben kann. Dies bestärkt uns in unserem Ziel Elafin auch für Lungenkrankheiten weiter zu entwickeln.«

Proteo hält die Herstellungs- und Verwertungsrechte für rekombinantes menschliches Elafin. Das Eiweiß wurde an der Universitäts-Hautklinik in Kiel entdeckt. Es wird in Haut, Lunge und Brustdrüse gebildet und schützt die Zellen, in denen es vorhanden ist, vor Zerstörung durch das Immunsystem. Einige Organe, insbesondere Muskulatur und Gefäße, besitzen kein Elafin, können daher direkt angegriffen und zerstört werden. Die Eigenschaft von Elafin, die an Entzündungsreaktionen beteiligten Enzyme Elastase und Proteinase 3 zu blockieren, macht es zu einem Erfolg versprechenden Wirkstoff für die Behandlung von entzündlichen Lungenerkrankungen oder schweren Reperfusionsschäden – etwa nach Herzinfarkt, Unfallverletzungen oder Organtransplantationen.

Über Proteo

Die Proteo Biotech AG mit Sitz in Kiel erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Der Schwerpunkt liegt dabei auf der Entwicklung und Aufskalierung von Herstellungsverfahren für Wirkstoffe aus dem Bereich der Entzündungsforschung. Das Unternehmen wurde im April 2000 als deutsche Aktiengesellschaft gegründet und im selben Jahr von der US-amerikanischen Muttergesellschaft Proteo, Inc. übernommen. Die Proteo, Inc. beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung.

Zukunftsgerichtete Aussagen

[kaubeuhut]

http://irpages.equitystory.com/cgi-bin/proteo/show.ssp?fn=sh…

[kaubeuhut]

14. Dez 2005
Proteo Biotech AG/Proteo Inc.: Entzündungshemmer 'Elafin' erfolgreich an Probanden im Rahmen einer klinischen Studie der Phase I getestet


Proteo Biotech AG / Research Update

Corporate-Mitteilung übermittelt durch die EquityStory AG.
Für den Inhalt der Mitteilung ist der Emittent verantwortlich.
---------------------------------------------------------------------------

Kiel, 13.12.2005 ­ Die erste Phase einer klinischen Studie mit dem neu
entwickelten Wirkstoff Elafin konnte jetzt erfolgreich abgeschlossen
werden. Dies teilte die Proteo Biotech AG, ein 100-prozentiges
Tochterunternehmen der Proteo Inc./USA (WKN: 925981), mit. Der
humanidentische Wirkstoff ist zur Behandlung entzündlicher Erkrankungen
vorgesehen und wird intravenös verabreicht. Ziel der Studie war es, die
Sicherheit und Verträglichkeit des biotechnologisch hergestellten
Arzneimittels zu prüfen.

Die Untersuchungen wurden in den vergangenen Wochen am Kieler Institut für
Klinische Pharmakologie an 32 gesunden Probanden in mehreren Dosierungen
durchgeführt. Die intravenöse Gabe wurde in allen Dosierungen gut
vertragen. Es kam zu keinen schweren unerwünschten Ereignissen. Birge
Bargmann, Vorstand der Proteo Biotech AG: 'Der erfolgreiche Abschluss der
Studie zur Sicherheit und Verträglichkeit zeigt uns, dass der gewählte Weg,
ein Eiweiß menschlicher Herkunft für diese therapeutischen Zwecke zu
nutzen, zukunftsweisend ist. Für die weitere Entwicklung von Elafin bieten
sich jetzt eine Reihe von Indikationsfeldern im Bereich der entzündlichen
Erkrankungen, insbesondere im Zusammenhang mit Herz-Kreislauf- und
Lungenleiden.'

Proteo hält die Herstellungs- und Verwertungsrechte für rekombinantes
menschliches Elafin. Das Eiweiß wurde an der Universitäts-Hautklinik in
Kiel entdeckt. Es wird in Haut, Lunge und Brustdrüse gebildet und schützt
die Zellen, in denen es vorhanden ist, vor Zerstörung durch das
Immunsystem. Einige Organe, insbesondere Muskulatur und Gefäße, besitzen
kein Elafin, können daher direkt angegriffen und zerstört werden. Die
Eigenschaft von Elafin, die an Entzündungsreaktionen beteiligten Enzyme
Elastase und Proteinase 3 zu blockieren, macht es zu einem
erfolgversprechenden Wirkstoff für die Behandlung von entzündlichen
Lungenerkrankungen oder schweren Reperfusionsschäden - etwa nach
Herzinfarkt, Unfallverletzungen oder Organtransplantationen.

Über Proteo

Die Proteo Biotech AG mit Sitz in Kiel erforscht, entwickelt und vermarktet
Substanzen zur biologischen und medizinischen Forschung sowie für den
Einsatz als Arzneimittel. Der Schwerpunkt liegt dabei auf der Entwicklung
und Aufskalierung von Herstellungsverfahren für Wirkstoffe aus dem Bereich
der Entzündungsforschung. Das Unternehmen wurde im April 2000 als deutsche
Aktiengesellschaft gegründet und im selben Jahr von der US-amerikanischen
Muttergesellschaft Proteo, Inc. übernommen. Die Proteo, Inc. beabsichtigt
die Auslizensierung ausgewählter Indikationen und den Aufbau
internationaler strategischer Allianzen zur Erschließung neuer
Anwendungsgebiete und Vermarktung.

Zukunftsgerichtete Aussagen

Diese Presseinformation enthält bestimmte in die Zukunft gerichtete
Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule
3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch
geschaffenen 'safe harbor“ (Haftungsausschluss). Alle Aussagen in dieser
Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich
möglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunft
gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann
keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend
erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse
können erheblich von den in diesen Aussagen angenommenen abweichen.
Technischen Komplikationen können auftreten, die eine unmittelbare
Umsetzung der oben beschriebenen wesentlichen strategischen Pläne
ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft
gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch
weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in
den Berichten des Unternehmens in Form 10-KSB und in anderen Berichten an
die United States Securities and Exchange Commission enthalten sind. Die
Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten
Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen
anzupassen.


Weitere Informationen: www.proteo.de




Dr. Barbara Kahlke
Proteo Biotech AG
Am Kiel-Kanal 44
D - 24106 Kiel

Email: [e-mail]
Telefon: [phone]
Fax: [phone]


EquityStory AG 14.12.2005
---------------------------------------------------------------------------

Sprache: Deutsch
Emittent: Proteo Biotech AG
Am Kiel-Kanal 44
24106 Kiel Deutschland
Telefon: [phone]
Fax: [phone]
Email: [e-mail]
WWW: www.proteo.de
ISIN: US74369R1005
WKN: 925981
Indizes:
Börsen: Freiverkehr in Frankfurt; Auslandsbörse(n) Nasdaq

Ende der Mitteilung EQS News-Service

[Maettel]

@kaubeuhut

Dann kauf das Teil mal hoch, wir wollen die 10.37 USD, gell!!!

[kaubeuhut]

IRVINE, CA / KIEL, 16.05.2006 - Proteo, Inc. (OTCBB: PTEO; WKN: 925981) und
ihre 100%-ige Tochter, Proteo Biotech AG, gaben heute bekannt:

Die Proteo Biotech AG hat Dr. Jürgen Paal, Manager Strategic Projects bei
der ALTANA Pharma AG in Konstanz, in den Beirat des Unternehmens berufen.
Dr. Paal wird den Beirat um den Bereich Unternehmensentwicklung erweitern.
Präklinische und klinische Kompetenz werden im Beirat durch den Sprecher
des Sonderforschungsbereiches 617 an der Christian-Albrechts-Universität
Kiel, Prof. Dr. Jens-Michael Schröder, und den Direktor der Klinik für
Allgemeine Chirurgie und Thoraxchirurgie der Universität Kiel, Prof. Dr.
med. Fred Fändrich vertreten. Birge Bargmann, CEO der Proteo Biotech AG:
"Aufgrund seiner Erfahrungen in den Bereichen pharmazeutische Forschung und
Entwicklung sowie Corporate Strategy der ALTANA Pharma AG leistet Dr. Paal
einen wertvollen Beitrag für die Bereiche Entwicklung, Auslizensierung und
Partnering."

Über Proteo:

Das Unternehmen ist ein forschendes Biotech-Unternehmen, das eine eigene
Medikamentenentwicklung betreibt. Das Hauptentwicklungsprodukt Elafin wurde
in einer Phase I Studie erfolgreich getestet. Elafin ist ein Eiweiß
menschlicher Herkunft mit entzündungshemmenden Eigenschaften, das zur
Behandlung von Herz-Kreislauf und Lungenerkrankungen entwickelt wird.
Die Proteo, Inc. beabsichtigt die Auslizensierung ausgewählter Indikationen
und den Aufbau internationaler strategischer Allianzen zur Erschließung
neuer Anwendungsgebiete und Vermarktung.

Weitere Informationen: www.proteo.de

[Maettel]

Antwort auf Beitrag Nr.: 21.614.047 von kaubeuhut am 16.05.06 23:08:09

Und jetzt kommt die 10.37 USD??

[agce_wo]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[Stavroula]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[kaubeuhut]

KIEL – ERKRATH, 19.06.2006. – Die PROTEO Biotech AG, ein 100-prozentiges Tochterunternehmen der PROTEO Inc./USA (OTCBB: PTEO; WKN: 925981) hat einen Kooperationsvertrag mit der ARTES Biotechnology GmbH unterzeichnet. Ziel der Vereinbarung ist die Vermarktung von Elafin – lead product der PROTEO Biotech AG – in Indien, Ägypten und Argentinien. PROTEO betraut ARTES mit der Vermarktung von Elafin in diesen Vertragsgebieten.

Vor allem der indische Gesundheitsmarkt bietet riesige Absatzchancen: Bei einem Wirtschaftswachstum von rund acht Prozent hat der Subkontinent das Potenzial, die am schnellsten wachsende Volkswirtschaft der nächsten zehn Jahre zu werden – mit immensem Nachholbedarf auf dem medizinischen Sektor.

Bereits seit 2004 besitzt PROTEO die Exklusiv-Lizenz von ARTES, Elafin mit Hilfe des Hefestammes Hansenula polymorpha rekombinant herzustellen. PROTEO-Vorstand Birge Bargmann: »Von den engen Auslandskontakten der ARTES Biotechnology GmbH versprechen wir uns den Durchbruch für die Nutzung von Elafin – nicht zuletzt dank schnellerer Zulassungsverfahren. Eine erfolgreiche Anwendung in den Vertragsgebieten dürfte zudem die Markteinführung auch in Europa beschleunigen.«

Die beiden Partner verstehen die Intensivierung ihrer Zusammenarbeit als strategische Allianz, bei der ARTES in Zukunft Elafin-Projekte in den avisierten Auslandsmärkten betreut – vom Marketing bis zur konkreten Kommunikation mit Kunden.

»Die Kooperation mit PROTEO ist eine großartige Bestätigung für den Erfolg unserer Technologie und unseres Geschäftsmodells«, sagt ARTES-Geschäftsführer Dr. Michael Piontek. »Die Kieler sind das erste Unternehmen in Deutschland, das nach Genehmigung durch das Bundesinstitut für Arzneimittel und Medizinprodukte (BfArM) einen Wirkstoff, der mit der Hansenula-Technologie hergestellt wurde, erfolgreich in einer klinischen Phase I-Studie am Menschen erprobt hat. Weitere Produkte auf Basis unserer Hansenula-Technologie werden bereits weltweit von anderen Lizenznehmern vermarktet und sind unter anderem von der US-FDA zugelassen worden.«

Über PROTEO
Das Unternehmen ist ein forschendes Biotech-Unternehmen, das eine eigene Medikamentenentwicklung betreibt. Das Hauptentwicklungsprodukt Elafin wurde in einer Phase I-Studie erfolgreich getestet. Elafin ist ein Eiweiß menschlicher Herkunft mit entzündungshemmenden Eigenschaften, das zur Behandlung von Herz-Kreislauf und Lungenerkrankungen entwickelt wird. Das Land Schleswig-Holstein fördert mit Mitteln des Europäischen Fonds für regionale Entwicklung (EFRE) das innovative Entwicklungsvorhaben der PROTEO Biotech AG in Kiel.

Die PROTEO, Inc. beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung.

Weitere Informationen: www.proteo.de.

Über ARTES
Die ARTES Biotechnologie GmbH ist als Dienstleister auf dem Gebiet der Herstellung von Produktionsstämmen, vor allem auf Basis der methylotrophen Hefe Hansenula polymorpha, im internationalen Markt etabliert. Zum Angebot gehört neben der Stammherstellung und -charakterisierung auch die Verfahrensentwicklung (up und downstream), sowie die Herstellung von Proteinen.

Im Rahmen von strategischen Zusammenarbeiten beabsichtigt die ARTES eine zunehmende Markterschließung für die angebotenen Dienstleistungen, sowie für die hergestellten Produkte.

Weitere Informationen: www.artes-biotechnology.com.

[kaubeuhut]

@ RTLOLDY

Dein Kalender geht nicht vor. Aber die Nachricht, die ich für wichtig halte, und durch die der Entwicklungs- und Unternehmensforschritt dokumentiert wird, war in der Masse der unqualifizierten, pöbelhaften, irreführenden und auch albernen Beiträge untergegangen. Die von mir kritisierten Beiträge wurden inzwischen gelöscht, die User gesperrt oder verwarnt.
Ich hoffe, dass jetzt endlich Sachlichkeit einkehrt und sich in angemessener Diktion, informativer, aber auch kritischer Sichweise mit dem Thema, dem Unternehmen, seinen Projekten und seinem Fortschritt befasst und auseinander gesetzt wird.

[kaubeuhut]

http://proteo.de/download/Medien/2006/laborjournal-03_1600.p…

[kaubeuhut]

http://proteo.de/download/Medien/2006/laborjournal-03_1600.p…

[Maettel]

Antwort auf Beitrag Nr.: 23.316.736 von kaubeuhut am 04.08.06 13:58:33

http://www.proteo.de/download/Medien/2006/laborjournal-03_16…

[Maettel]

Nächste Fälligkeit am 30.Sept. 2006:

US $252,000.00

BUBIKON, SWITZERLAND

NOVEMBER 7, 2005

FOR VALUED RECEIVED, the undersigned, a corporation duly organized under the laws of Switzerland, with its principal place of business at Rosengartenstr. 4, CH-8608 Bubikon, Switzerland, (the "Maker"), unconditionally promises to pay to the order of Proteo, Inc., a Nevada corporation, (the "Holder"), at its principal place of business at 2102 Business Center Drive, Suite 130, Irvine, CA 92612 or at such other place as may be designated in writing by the Holder, the principal sum of $252,000.00, with no interest.

Principal shall be payable in four installments of US $63,000.00 each, due on March 31, 2006, on June 30,2006, on September 30, 2006 and on December 31, 2006.

All payments under this Note shall be in lawful money of the United States.

[kaubeuhut]

Antwort auf Beitrag Nr.: 23.357.642 von Maettel am 08.08.06 18:17:26

Sach bloß? Bist ein schlaues Kerlchen!

[wolf4920032000]

!

Dieser Beitrag wurde moderiert. Grund: Provokation

[kaubeuhut]

Antwort auf Beitrag Nr.: 23.433.915 von wolf4920032000 am 14.08.06 00:42:36

Unglaublich, was dieser Wolf auf dem Kasten hat.

[wolf4920032000]

Antwort auf Beitrag Nr.: 23.450.588 von kaubeuhut am 15.08.06 09:32:55

wie schnell Du das gemerkt hast.

[kaubeuhut]

Antwort auf Beitrag Nr.: 23.452.942 von wolf4920032000 am 15.08.06 12:04:41

Ich hab Dir bloß noch nicht verraten, auf welchem Kasten.

[wolf4920032000]

Antwort auf Beitrag Nr.: 23.475.097 von kaubeuhut am 16.08.06 22:15:47

hast aber lange für eine Antwort gebraucht.:Bist halt ein Spätzünder!

[kaubeuhut]

Antwort auf Beitrag Nr.: 23.479.667 von wolf4920032000 am 17.08.06 11:53:09

Und Du bist halt halt.

[Maettel]

Warum wird nicht gehandelt.........

[Onkel_Michael]

!

Dieser Beitrag wurde moderiert. Grund: Großteil des Textes in englischer Sprache.

[Onkel_Michael]

hab ich noch vergessen. hier gibts auch einen thread zum thema proteo

--> Thread: Biotechfirmen 2004

onkel michael

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Radumanz]

Antwort auf Beitrag Nr.: 23.603.173 von Onkel_Michael am 24.08.06 21:34:51

Ich teile Deine Meinung. Die Reaktion von kaubeuhut finde ich äusserst komisch. Ist der da hinein verhängt?

[kaubeuhut]

Antwort auf Beitrag Nr.: 23.728.046 von Radumanz am 01.09.06 23:14:29

Radumanz = Onkel_Michael

[Radumanz]

Antwort auf Beitrag Nr.: 23.728.909 von kaubeuhut am 02.09.06 00:39:05

Was nur ist mit Dir los? Kann man da nicht normal diskutieren? Du hast Dich da ganz schön in etwas verbissen; lieg ich da richtig?

[Radumanz]

Antwort auf Beitrag Nr.: 23.734.081 von Radumanz am 02.09.06 20:29:56

Kleiner Nachtrag: weder bin ich eine doppelte Person, noch habe ich irgendwelche Vorlieben. Im übrigen ist mein Intersse an diesem Disput bereits erschöpft.

[kaubeuhut]

Antwort auf Beitrag Nr.: 23.734.432 von Radumanz am 02.09.06 20:47:34

"Interesse (bereits) erschöpft." Auch gut.

[Radumanz]

Antwort auf Beitrag Nr.: 23.603.173 von Onkel_Michael am 24.08.06 21:34:51

Hi Onkel_Michael

Weisst Du, was das mit dem nervenden 'kaubeuhut' auf sich hat? - Nanu, egal! Mit dem lasse ich mich auf keinen Disput ein!

Mich interessieren die Praktiken der Zocker, nicht weil ich Zocker werden möchte, sondern weil das 'günstiger' Lernstoff ist. Was da in dem Geschäftsbericht steht ist allerhand! Ich kann leider die Aussagen nicht voll interpretieren, da ich kein Börsenfachmann bin.

Trotzdem, wie kann man den Kurs einer Aktie nach oben treiben, wenn doch gar nicht feststeht, dass die Firma mit diesem Produkt, dem einzigen!vorderhand, je Gewinn machen wird?

Und dann soll auch das Geld für die Forschung fehlen, und es ist nicht sicher, ob da such noch Geld hereinkommen wird?

Kannst Du mich erleuchten; ich komme da nicht mit.

Gruss
Radumanz

[Maettel]

15:38:42 0,75 1.020
15:37:10 0,69 500
15:37:01 0,70 3.500
15:30:11 0,460 2.000
15:30:07 0,460 1.500

Und dieser Zock innerhalb von 8 Min...
Ja AK, die Zeit drängt bald ist Ende September, und die Rate wird fällig...

[Radumanz]

Antwort auf Beitrag Nr.: 23.773.529 von Maettel am 05.09.06 16:42:40

Hi Maettel

Weisst Du mehr? Wer ist AK und was für Raten müssen bezahlt werden?

[Maettel]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[Maettel]

Nächste Fälligkeit am 30.Sept. 2006:

US $252,000.00

BUBIKON, SWITZERLAND

NOVEMBER 7, 2005

FOR VALUED RECEIVED, the undersigned, a corporation duly organized under the laws of Switzerland, with its principal place of business at Rosengartenstr. 4, CH-8608 Bubikon, Switzerland, (the "Maker"), unconditionally promises to pay to the order of Proteo, Inc., a Nevada corporation, (the "Holder"), at its principal place of business at 2102 Business Center Drive, Suite 130, Irvine, CA 92612 or at such other place as may be designated in writing by the Holder, the principal sum of $252,000.00, with no interest.

Principal shall be payable in four installments of US $63,000.00 each, due on March 31, 2006, on June 30,2006, on September 30, 2006 and on December 31, 2006.

All payments under this Note shall be in lawful money of the United States.

Nochmals...

[Radumanz]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Radumanz]

Antwort auf Beitrag Nr.: 23.796.643 von Radumanz am 06.09.06 21:04:22

Übrigens scheinen hier viele Leute mitzulesen. Nur schreiben tun sie nicht. Schade. Ich finde, wenn Ungehöriges vorfällt, sollte man nicht schweigen.

[kaubeuhut]

Antwort auf Beitrag Nr.: 23.796.643 von Radumanz am 06.09.06 21:04:22

So? Wo ist der kaubeuhut Dir gegenüber den "ausfällig" geworden. Kann den Beitrag leider nicht finden.

[Maettel]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[kaubeuhut]

Antwort auf Beitrag Nr.: 23.813.051 von Maettel am 07.09.06 19:42:00

1.) Ich bin kein Insider
2.) Mutmaßlich bist Du dir über die Bedeutung dieses Begriffs nicht im Klaren

[kaubeuhut]

http://proteo.de/framesets/investor.php?lang=de

[Radumanz]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[kaubeuhut]

Antwort auf Beitrag Nr.: 23.873.205 von Radumanz am 11.09.06 14:14:31

Tatsächlich? Ich persönlich habe zu AK leider nichts gefunden. Aber vielleicht mache ich ja was falsch. Es wäre also sinnvoll, wenn Du eine entsprechende Anleitung hier reinstellen würdest.

[Maettel]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[kaubeuhut]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[Maettel]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[kaubeuhut]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[Maettel]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[Maettel]

Wurden da doch tatsächlich Beiträge gelöscht, das erste mal seit ich bei WO angemeldet bin..
Jetzt weiss ich aber das Kursziel nicht, und wer der Makler in Frankfurt ist auch nicht, und wer da Spiele in den USA treibt auch nicht...

[Radumanz]

[Maettel]

Der Makler in den USA: 0.52 zu 0.84 ???? (Spread: ca. 30%)

Leider gibts immer noch keine Gründe in dieses Teil zu investieren.

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[kaubeuhut]

Antwort auf Beitrag Nr.: 23.955.665 von Maettel am 15.09.06 18:29:23

Dann kauf doch in Frankfurt. Dort beträgt der Spread nur 12%.

[Maettel]

Antwort auf Beitrag Nr.: 23.955.850 von kaubeuhut am 15.09.06 18:37:26

Nur habe ich seit Anfang an den gleichen Namen und musste nicht 3-4 mal unter neu anmelden..
Klar kaufe ich in Frankfurt ca. so zu 0.25 Euro, wenn Du Sie hergibst..

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Radumanz]

Antwort auf Beitrag Nr.: 23.956.008 von Maettel am 15.09.06 18:44:18

INFO: Keine technische Analyse vorhanden!!! Hinweis auf die Aktie bereits in der Bibel: 'Verkaufe alles, was Du hast, und folge mir nach.'

[kaubeuhut]

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Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Radumanz]

Antwort auf Beitrag Nr.: 24.020.339 von kaubeuhut am 18.09.06 15:43:33

1. Ich habe mich nicht mit Ihnen unterhalten.
2. Persönliche Beleidigungen am Thread sind verboten.

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Radumanz]

Antwort auf Beitrag Nr.: 23.956.008 von Maettel am 15.09.06 18:44:18

Hallo Maettel

Bist Du nicht auch der Meinung, eine solche Anwort würde die Sperrung von kaubeuhut rechtfertigen? Ich unterhalte mich in erster Linie über das Unternehmen und seine Bewertung, mit k habe ich nichts am Hut, ich gehe gar nicht auf seine Provokationen ein. Seine Agressivität erkläre ich mir damit, dass er hoch investiert ist und gemäss Geschäftsbericht gar nichts zu erwarten hat, anders kann ich mir diese bedauerlichen Entgleisungen nicht erklären.

[kaubeuhut]

!

Dieser Beitrag wurde moderiert.

[Radumanz]

@ Maettel

Du siehst: er kommt nicht klar. Er hält mich für einen alten Bekannten. Ich rede trotzdem nicht mit ihm, weil ich keinen Provokationen auf den Leim gehe.

Also Maettel wie siehst Du die längerfristige Entwicklung dieses Papiers?

[Radumanz]

Also heute haben schon 40 Leser in dieses Forum gekuckt. Die werden sich wohl ihre Sache denken. Klingelt ja nicht an der Börse! Ihr geratet sonst gleich unter die Walze!!

Aber Onkel_Michael hat die Sache ja schon auf den Punkt gebracht. Zitat:

'hallo und gruss an die guten. der thread weckt auch bei mir kein vertrauen. mein persönliches fazit: hier stinkt es und zwar gewaltig. der kursverlauf der proteo-aktie sieht für mein verständnis sehr seltsam aus. schaut euch mal die kursschwankungen und das geringe volumen der proteo-aktie 2002 am otcbb an. auch die steilen kursanstiege bei kleinstvolumen mitte 2003 und 2004 am otcbb sind für mich seltsam. hier wird mit kleinstvolumen gezockt. lest euch auch das letzte filing einmal durch (Quelle -> http://www.sec.gov/Archives/edgar/data/1063104/0001019687060…

Noch Fragen? Und um es gleich klar zu stellen: Wer mich für Onkel_Michael hält ist selber schuld.

[kaubeuhut]

Antwort auf Beitrag Nr.: 24.065.035 von Radumanz am 20.09.06 16:57:42

Du nervst! Wirklich. Was nach deinem Verständnis oder nach dem Verständnis deines Onkels Michael "sehr seltsam" aussieht, braucht in der Realität noch lange nicht seltsam zu sein. Wenn anfänglich, wie bei einem start-up üblich, nur kleine Stückzahlen umgehen, so ist dies ebenfalls nicht seltsam, sondern entspricht dem allgemeinen Erscheinungsbild. Ich halte es für ausgeschlossen, dass bei diesem Wert "gezockt" wird, denn dann müssten die Volumina wesentlich größer sein.

[Maettel]

Antwort auf Beitrag Nr.: 24.076.921 von kaubeuhut am 21.09.06 09:23:27

bla bla ...
Am Montag gekauft 175 Stk. diese gestern wieder verkauft.
Am Dienstag gekauft 500 Stk. diese gestern wieder verkauft.

Oder halt umgekehrt, war das der Makler

[kaubeuhut]

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[Radumanz]

Antwort auf Beitrag Nr.: 24.085.092 von kaubeuhut am 21.09.06 16:19:24

Wann war denn übrigens der start-up PTEO, den Sie da erwähnen? Ich meine die Firma stehe seit etwa 1999 und und habe mit Aktientausch nicht gerade eine gute Figur gemacht. Übrigens kann man natürlich den Kursverlauf zurückverfolgen: die Aktie stand einmal bei $ 10.37. Der Start scheint also nicht ganz gelungen. Oder können Sie uns genaueres zum Entwicklungs-Verlauf sagen?

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Radumanz]

Sie operieren ein bisschen viel mit ‚Schwachsinn’ und ‚Blödsinn’, den Sie anderen unterstellen. Danach aber habe ich Sie nicht gefragt, ich habe Sie vielmehr um eine Stellungnahme zur bisherigen Entwicklung der Firma, bzw. der Aktie gebeten. Darüber schreiben Sie nichts.

Übrigens: Es gibt Leute, die ohne weiteres bestätigen, dass seinerzeit ein Aktientausch erfolgte, das beauftrage Rechtsanwaltsbüro ist bekannt. Aber bleiben wir bei Ihren Erklärungen zur Entwicklung von Proteo: wie ging das nun zu? Offenbar wissen Sie darüber genau Bescheid.

[kaubeuhut]

Gut, dann lassen wir die Begriffe "Schwachsinn" und "Blödsinn" zumindest heute mal weg.
1.) bisherige Entwicklung: Die bisherige Entwicklung verläuft im Rahmen der Erwartungen und entspricht durchaus der Entwicklung vergleichbarer Unternehmen.
Allerdings ist immer zu beachten, dass Entwicklungen zyklisch verlaufen. Diese zyklische Entwicklung spiegelt sich auch in der Kursentwicklung und dem Kursverlauf wider.
2.) Aktientausch: Sangui-Aktionären war von der seinerzeitigen Leadinvestorin ein Umtausch ihrer Aktien in Aktien der Proteo, Inc. angeboten worden.
a.) Ein Teil der Aktionäre machte von dem Angebot Gebrauch
b.) Ein weiterer Teil machte hiervon keinen Gebrauch
c.) Ein geringer Teil derjenigen, die von dem Angebot zunächst Gebrauch gemacht hatten, besann sich später eines anderen und machte den Tausch später rückgängig
Wo also ist das Problem?

[Radumanz]

Antwort auf Beitrag Nr.: 24.153.711 von kaubeuhut am 24.09.06 12:32:28

Sie haben die Begriffe "Schwachsinn" und "Blödsinn" mir gegenüber generell zu unterlassen, ansonsten ich bei den MODs den Antrag auf Löschung Ihrer Beiträge stellen werde. Ich habe mich auch nicht bemüht, mit Ihnen ins Gespräch zu kommen, mich interessieren höchstens ihre Meinungen zur "historischen" Entwicklung der Prote und des Proteo-Kurses bis heute. Ich erlaube mir, festzustellen,

1. dass das Gesamtbild wenig Vertrauen erweckend ist
2. dass die Vergangenheit noch weniger Vertrauen zu erwecken vermag

Im übrigen beginnt mich jetzt die Gesamtentwicklung zu interessieren, rein juristisch. Sie beliebten, festzustellen dass an der Börse nicht geklingelt werde. Sehr gut - im privaten und im juristischen Bereich lassen wir die Höflichkeitsregeln in Kraft, conditio sine qua non für weitere Unterhaltungen. Ich hoffe, es werde sich ausser Ihnen (Sie scheinen sehr beschlagen zu sein)noch der eine oder andere zu diesem Thema melden, damit die Diskussion etwas mehr Zug bekommt.

[Radumanz]

Vielleicht noch ein kleines Detail, wenn Sie gestatten: Sie haben den Aktientausch als 'perpetuiertes Märchen' bezeichnet. Nun ist gemäss Ihren Ausführungen das Märchen doch noch wahr geworden. Das soll es geben. Wunderbar.

[kaubeuhut]

Aktientausch? Na und? Ist das was besonders?

[Radumanz]

Antwort auf Beitrag Nr.: 24.184.821 von kaubeuhut am 25.09.06 14:03:35

Das kommt eben auf die Umstände an (was Ihnen selbstverständlich bekannt ist). Und diese Umstände interessieren mich ein bisschen, Sie brauchen sich aber nicht extra zu bemühen.

[Radumanz]

Da doch immerhin einige Leser in diesem Forum zu verzeichnen sind: Was meint Ihr den zur Entwicklung dieses Unternehmens - in der Vergangenheit und in Zukunft?

[kaubeuhut]

Antwort auf Beitrag Nr.: 24.185.048 von Radumanz am 25.09.06 14:19:53

1.) Sie sollten sich mal schleunigst ihr überhebliches Getue abgewöhnen
2.) Auf Diskussionen mit Ihnen lege ich nun wirklich keinen Wert. Das ist mir alles ein bißchen zu flach
3.) Was ich unterlasse und was nicht, sollten Sie mir schon überlassen.
4.) Wenn Sie hier einmal ausfallend werden sollten, irgendwelche Lügengeschichten oder Unterstellungen verbreiten sollten, sich nicht an die Boardregeln halten sollten, werde ich dafür sorgen, dass ihre Beiträge gelöscht werden.
5.) Ausserdem lasse ich dann prüfen, ob und wie juristisch gegen Sie vorgegangen werden muss.
6.) Wenn meinen, Umstände prüfen und bewerten zu müssen, dann tun Sie dies bitte. Es steht Ihnen ja frei.
7.) Lassen Sie uns dann aber bitte an Ihren (bemerkenswerten) Erkenntnissen teilhaben.

[Radumanz]

Antwort auf Beitrag Nr.: 24.185.189 von kaubeuhut am 25.09.06 14:30:16

Also mich interesieren die Erkenntnisse anderer Leute mehr als die eigenen. Diese Feststellung möge Ihnen zeigen, dass ich keineswegs überheblich bin noch eine solche Untugend für erstrebenswert halte. Das bewahrt mich auch davor, andere als 'zu flach' zu qualifizieren.

Ich lege aber ausserordentlich hohen Wert auf Höflichkeit. In diesem Sinne liegt mir auch nicht viel an einer weiteren Unterhaltung mit Ihnen. Also - fragen wir die anderen. Ich kann warten.

Ach ja was die Einhaltung der Bordregeln betrifft: Mir liegt mindestens soviel daran wie Ihnen!

[Maettel]

Antwort auf Beitrag Nr.: 24.185.400 von Radumanz am 25.09.06 14:43:59

Leider weiss der A. K...hut, auch nichts!
Er sitzt auf seinen Aktien wie wir auch.. Ausser das er dem Makler mal 250 Stk. rüberschiebt..
Und nach allem, will diese niemand kaufen..
Proteo sollte mal ein Aktienrückkaufsprogramm zu 10.37USD starten...

[kaubeuhut]

Antwort auf Beitrag Nr.: 24.185.400 von Radumanz am 25.09.06 14:43:59

Na, also! Wie sagt der Volksmund so schön? "Jugend forscht". Komm hier mit hard facts. Unterlasse dieses geheimnisvolle Geraune, diese unterschwelligen Anspielungen und merkwürdigen Mutmassungen.
Wenn du meinst, was evidentes gefunden zu haben, präsentiere es hier. Aber denke dran: Du musst es auch belegen können.

[Radumanz]

Also liebe Kollegen am Forum

Damit ich mich nicht Herrn kaubeuhut anlegen muss, frage ich Euch: was meint Ihr? Wie wird sich Proteo entwickeln? Was geschah da in der Vergangenheit? - Versteht mich recht: Ich möchte das nicht mit kaubeuhut besprechen, weil er sich so masslos ärgert. Ich möchte keine Unterhaltung mit ihm, weil das nirgends hinführt - darum seid recht fleissig und schreibt mir, wie ihr die Entwicklung seht. Ich kann mich irren, und andere können mich belehren. Seid so freundlich!

Euer Radumanz

[Radumanz]

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[kaubeuhut]

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[Radumanz]

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[kaubeuhut]

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[kaubeuhut]

Antwort auf Beitrag Nr.: 24.294.189 von Radumanz am 29.09.06 22:21:47

Auch gut. Dann beschränke ich mich eben auf einen einzigen Satz:
"Der hochgeschätzte Vorredner, der sich neuerdings "Radumanz" nennt, ist nicht in der Lage zwischen einem "Wirkstoff" und einem "Produkt" zu unterscheiden.".

[Radumanz]

Es ist ganz und gar zwecklos. Habe ich nach dem Unterschied zwischen Produkt und Wirkstoff gefragt? Habe ich um Wertschätzung gebeten? - Nein die Frage geht rein um die Einschätzung der Zukunft des Unternehmens Proteo. Und die ist gemäss allgemeiner Einschätzung wie? Glänzend? Lest den Q2-Bericht, Dann wisst ihr Bescheid. Und nicht zuletzt: Lest den ganzen Thread, dann wisst ihr noch besser Bescheid. Und so nebenbei: Ich muss wohl eine andere Taktik wählen.

[kaubeuhut]

Antwort auf Beitrag Nr.: 24.337.494 von Radumanz am 02.10.06 09:46:55

Auch gut. Ich habe allerdings erhebliche Zweifel, dass Du überhaupt in der Lage bist, die "Zukunftsaussichten" (was immer das ist) eines Unternehmens auch nur annähernd realistisch einzuschätzen.

[Radumanz]

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[kaubeuhut]

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[maria6]

Hier gibt es wohl zwei, die können sich nicht vertragen. Aber worum geht es denn wohl, der eine kommt dauernd mit gute und wissenschaftlich vielversprechende News, während der andere offenbar auf einen bestimmten Preis der Papiere besteht. Nun, stellt sich die Frage sind das jeweils zwei Individuen für sich und haben mit der weiteren Entwicklung Proteo kein Einfluss oder was ist hier los?
Wenn einer einen bestimmten Preis haben will, wieviele andere warten da (im stillen) noch drauf? Doch wenn jemand einen Preiseinfluss haben kann, wird er es nicht tun, zumindest solange nicht bis die anderen nur darauf warten zu verkaufen, gell?
Das Ende vom Lied ist wohl nicht absehbar, es sei denn die Herren in Kiel selbst schaffen den Durchbruch, dann kriegen wohl sämtliche Investoren den SUPERPREIS. Aber wie realistisch ist das? Wer kann diese Frage beantworten? Ach ja, wieviele Moneten haben die Herren in Kiel um sich bis zum Durchbruch über Wasser zu halten? Ach wisst Ihr was? Besser ich verkaufe jetzt und vergesse die Story, ist eh wenig Volumen für eine Explosion am Markt wie ich es eigentlich kenne, das Ding sieht eher aus wie eine gut verkaufte Phantasiegeschichte auf die einige Leute reingefallen sind(Private Equity? oder sowas) und einen viel zu hohen Preis bezahlt haben. Na ja was solls, so oft wurden und werden noch Ad Hoc Meldungen zu Preisbildende "Maßnahmen" benutzt, da kommt es auf eine Story mehr oder weniger nicht drauf an. Und Überhaupt, zu was für ein Preis habt Ihr denn gekauft um > 10 Taler zu verlangen, ist da schon Profit drin oder ist das gerade Break Even. Ach ja, bei so wenig Volumen kann man den Preis auch selber machen und dann einfach alles verkaufen, nur dazu braucht man eine Art Netz, und am besten macht man das an einem Tag wo gewisse Geier nicht anwesend sind, wie zB kurz vor Ostern? Wenn ich jetzt gleich 5 Market Orders a 100 Stück abgebe steht der Preis sehr schnell bei > 50 %. Wenn ich dann die ersten 100 wieder verkaufe etc. treibe ich damit weiter den Preis an usw. Wer kann mir das verbieten? Wenn das zehn oder zwanzig Leute gleichzeitig machten, dann müssen sie nur aufpassen dass sie alle gleichzeitig wieder draußen sind. Dann kann der Wissenschaftler hier alleine weiter texten weil dann der andere seine Moneten wieder hat. Vorausgesetzt: einer ist kein Insider, dann funktioniert dieses Game. Bye, bin gespannt was für Kommentare folgen, ach bitte nehmt Rücksicht auf eine in die Jahre gekommene Lady und auf mein Herz. Danke.

[Maettel]

Hallo gibts New's oder woher kommt das Volumen.....
Aber total abgestürzt... Und warum...
Na ich muss es Euch nicht mehr sagen oder.., wer da Schuld tragt..

[kaubeuhut]

Antwort auf Beitrag Nr.: 24.542.968 von Maettel am 10.10.06 19:53:49

Also, bei mir ist nichts "abgestürzt". Keine Ahnung, woher du deine Daten beziehst? Du scheinst verwirrt!

[Maettel]

bald kommt mein Kaufkurs.... 0.25 Euro!

[Radumanz]

Antwort auf Beitrag Nr.: 24.663.502 von Maettel am 16.10.06 18:28:28

Nur nichts kaufen ist billiger, gell Maettel!

[Radumanz]

Ach ja, die Firma macht ja Riesenumsätze mit ihren Produkten, pardon! Wirkstoffen. Ach wie schade, dass wir Trottel nicht zwischen bid and ask unterscheiden können; oder bestehen die Pro..., äh Wirkstoffe aus bid und ask?

[Radumanz]

Gefunden bei Amazon.de:

'Tod auf der Warteliste'. Ein Proteo-Laurentine-Krimi:
Bücher: Veit Heinichen by Veit Heinichen.

Unter Goggle suchen mit 'Proteo'

[maria6]

!

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[kaubeuhut]

20.10.2006

Corporate News übermittelt durch die DGAP - ein Unternehmen der EquityStory AG.Für den Inhalt der Mitteilung ist der Emittent verantwortlich.---------------------------------------------------------------------------

KIEL - 20. Oktober 2006. Der Entzündungshemmer Elafin, dasHauptentwicklungsprodukt der PROTEO Biotech AG, einem Tochterunternehmender PROTEO Inc. (OTCBB: PTEO; WKN: 925981), ist als eine der TOP 10Arzneimittelentwicklungen auf dem Gebiet der Herz-Kreislauf-Erkrankungen,die für Partnering oder Lizensierung zur Verfügung stehen, ausgewähltworden. Die Auswahl erfolgte durch die Windhover Information Inc., einemetablierten Provider von Geschäftsinformationen für Entscheidungsträger inder biotechnologischen und pharmazeutischen Industrie. PROTEO wird dasElafin-Projekt am 16. November 2006 auf der ´Windhover´s TherapeuticAlliances Cardiovascular Conference" in Chicago präsentieren.


Die Auswahl wurde von einem unabhängigen Komitee unter Leitung von MarcWortman, PhD, Autor der Windhover-Publikationen ´In Vivo" und ´Start Up",sowie Ed Saltzman, Präsident von ´Defined Health", einemConsulting-Unternehmen für Business Development-Strategien getroffen. AufBasis umfangreichen Quellenmaterials beider Organisationen wertete die Jurydie Entwicklungs- und Marktpotentiale von mehreren Hundert neuenWirkstoffen aus, die derzeit weltweit zur Behandlung vonHerz-Kreislauferkrankungen entwickelt werden. Als Bewertungskriterienwurden neben dem wissenschaftlichem Potenzial und der Indikationsbreite desWirkstoffs auch die Unternehmensstärke und das zu erwartende Marktpotenzialdes fertigen Produkts sowie die Möglichkeiten für strategischePartnerschaften mit dem Entwicklungsunternehmen geprüft.

´Wir sind nach einem strengen Bewertungsmaßstab vorgegangen. Die soermittelten Top-10 Wirkstoffe repräsentieren nach Ermessen unserer Jury dieinteressantesten Lizenzmöglichkeiten, die die Industrie derzeit im Bereichder Herz-Kreislauf-Therapien zu bieten hat", sagte Roger Longman vonWindhover Information Inc. Birge Bargmann, Vorstand der Proteo Biotech AG: ´Die Auszeichnung eines sorenommierten Expertengremiums ist für uns eine große Ehre. Diese Bewertungbestätigt den bisherigen Erfolg und das zukünftige Potential unseresKernproduktes Elafin."

Über ElafinElafin ist ein Eiweiß, das natürlicherweise in Haut, Lunge und Brustdrüsegebildet wird und die Gewebe, in denen es vorhanden ist, vor Zerstörungdurch das Immunsystem schützt. Die Eigenschaft von Elafin, die anEntzündungsreaktionen beteiligten Enzyme zu blockieren, macht es zu einemsehr Erfolg versprechenden Wirkstoff für die Behandlung von entzündlichenLungenerkrankungen oder schweren Reperfusionsschäden - etwa nachHerzinfarkt, Unfallverletzungen oder Organtransplantationen. In einerklinischen Phase I Studie wurde die sehr gute Verträglichkeit von Elafingezeigt.


Über Proteo Die Proteo Biotech AG mit Sitz in Kiel wurde im April 2000 gegründet und imselben Jahr von der US-amerikanischen Muttergesellschaft Proteo Inc.übernommen. Das Unternehmen erforscht, entwickelt und vermarktet Substanzenzur biologischen und medizinischen Forschung sowie für den Einsatz alsArzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte fürrekombinantes menschliches Elafin. PROTEO beabsichtigt die Auslizensierungausgewählter Indikationen und den Aufbau internationaler strategischerAllianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung. DasLand Schleswig-Holstein fördert das innovative Entwicklungsvorhaben derPROTEO Biotech AG mit Mitteln des Europäischen Fonds für regionaleEntwicklung (EFRE).

Weitere Informationen: www.proteo.de

Zukunftsgerichtete Aussagen Diese Presseinformation enthält bestimmte in die Zukunft gerichteteAussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurchgeschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieserMitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglichmöglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunftgerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kannkeine Sicherheit dafür geben, dass sich diese Aussagen als zutreffenderweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignissekönnen erheblich von den in diesen Aussagen angenommenen abweichen.Technischen Komplikationen können auftreten, die eine unmittelbareUmsetzung der oben beschriebenen wesentlichen strategischen Pläneausschließen. Das Unternehmen weist darauf hin, dass in die Zukunftgerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durchweitere Faktoren näher bestimmt werden, insbesondere von solchen, die inden Berichten des Unternehmens in Form 10-KSB und in anderen Berichten andie United States Securities and Exchange Commission enthalten sind. DieGesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichtetenAussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungenanzupassen.

Kontaktr. Barbara KahlkeProteo Biotech AGAm Kiel-Kanal 44D-24106 KielEmail : [e-mail]: [phone]Fax : [phone]

[Radumanz]

So könnten am Ende die 10.37 erreicht werden. Freut Euch! Zock zock!

[Maettel]

Antwort auf Beitrag Nr.: 24.813.795 von Radumanz am 24.10.06 10:33:00

Ja und in welchem Jahr?
Diese Mitteilung nützt doch wie immer dem Kurs überhaupt nichts..
Der einzige der momentan zockt ist unser Kollege aus Bubikon oder so...

[Radumanz]

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[kaubeuhut]

Antwort auf Beitrag Nr.: 24.829.576 von Radumanz am 24.10.06 20:18:42

100 Stücke kosten gegenwärtig $ 74.00 bzw. € 62,00.

[Maettel]

Antwort auf Beitrag Nr.: 24.831.924 von kaubeuhut am 24.10.06 21:38:39

ja klar und sind nach dem Kauf genau noch 47 USD wert!
Das zum bid und ask.....

[kaubeuhut]

Antwort auf Beitrag Nr.: 24.836.435 von Maettel am 25.10.06 08:05:06

Ach so. Ich wusste gar nicht, dass es bei anderen Aktien kein Bid und kein Ask gibt.

[Radumanz]

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[kaubeuhut]

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[Radumanz]

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[kaubeuhut]

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[Radumanz]

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[kaubeuhut]

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[kaubeuhut]

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[kaubeuhut]

Irvine, CA / Kiel, 11. Dezember 2006 – Proteo, Inc. (OTCBB: PTEO; WKN: 925981) und ihre hundertprozentigeige Tochtergesellschaft Proteo Biotech AG gaben heute bekannt:

Die Arbeitsgruppe von Prof. Noel McElvaney in der Abteilung für Lungenforschung am Royal College of Surgeons in Dublin forscht schwerpunktmäßig auf dem Gebiet der entzündlichen Lungenerkrankungen, insbesondere auf dem Gebiet der Mukoviszidose. Die Autoren haben gezeigt, dass Elafin in der Lage ist, die Lipopolysaccharid-induzierte Produktion von Monocyte Chemotactic Protein 1 in Monozyten durch die Inhibition von AP-1- und NFkappaB-Aktivierung zu unterdrücken. Die Autoren schließen daraus, dass aufgrund seines selektiven Vorkommens in Schleimhäuten, Alveolar-Makrophagen, Monozyten und Neutrophilen die Eigenschaft des Elafin den Lipopolysaccharid-Signalweg zu unterdrücken für Erkrankungen wie Mukoviszidose, Lungenentzündung und akutes Lungenversagen wichtig sein kann. Die Hemmung zweier Schlüsselwege im Entzündungsstoffwechsel bestätigt die Bedeutung von Elafin als Mediator der körpereigenen Abwehr.

Quelle: Butler MW, Robertson I, Greene CM, O'Neill SJ, Taggart CC, McElvaney NG. Elafin prevents lipopolysaccharide-induced AP-1 and NF-kappaB activation via an effect on the ubiquitin-proteasome pathway. J Biol Chem. 2006; 281: 34730-5.

Prof. Oliver Wiedow, Chairman of the Board der Proteo, Inc.: »Diese Ergebnisse stellen einen Durchbruch in unserem Verständnis für die entzündungshemmenden Eigenschaften von Elafin dar. Neben den bekannten Effekten von Elafin, Gewebezerstörung im Rahmen von Entzündungen zu vermindern, kann dieser neue Mechanismus von Elafin zur möglichen Wirksamkeit bei der Behandlung von Lungenerkrankungen beitragen, insbesondere dann, wenn Infektionen eine größere Rolle spielen.«


Über Elafin
Elafin ist ein Eiweiß, das natürlicherweise in Haut, Lunge und Brustdrüse gebildet wird und die Gewebe, in denen es vorhanden ist, vor Zerstörung durch das Immunsystem schützt. Die Eigenschaft von Elafin, die an Entzündungsreaktionen beteiligten Enzyme zu blockieren, macht es zu einem sehr Erfolg versprechenden Wirkstoff für die Behandlung von entzündlichen Lungenerkrankungen oder schweren Reperfusionsschäden – etwa nach Herzinfarkt, Unfallverletzungen oder Organtransplantationen. In einer klinischen Phase I Studie wurde die sehr gute Verträglichkeit von Elafin gezeigt.

Über Proteo
Die Proteo Biotech AG mit Sitz in Kiel wurde im April 2000 gegründet und im selben Jahr von der US-amerikanischen Muttergesellschaft Proteo Inc. übernommen. Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte für rekombinantes menschliches Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung. Das Land Schleswig-Holstein fördert das innovative Entwicklungsvorhaben der Proteo Biotech AG mit Mitteln des Europäischen Fonds für regionale Entwicklung (EFRE).

[Maettel]

Alle NEWS nützen dieser Aktie nichts!
Es wird nur gezockt.....

[kaubeuhut]

Antwort auf Beitrag Nr.: 26.123.578 von Maettel am 12.12.06 13:28:50

Aha! Unser "Börsenexperte" meldet sich mal wieder zu Wort.

[Maettel]

Antwort auf Beitrag Nr.: 26.149.866 von kaubeuhut am 13.12.06 13:25:38

AHA unser Oberzocker!
Wann endlich gibts die 10.37 USD?
Wann kann ich meine Aktien zu 10.37 USD am Markt vorbei verkaufen?

Hoffentlich hast Du Deine Raten auch pünktlich bezahlt?

Bist Du der einzige der hier Handelt oder besser verschiebt?

[kaubeuhut]

Antwort auf Beitrag Nr.: 26.155.040 von Maettel am 13.12.06 17:18:31

Du kannst jederzeit zu dem von Dir gewünschten bzw. erträumten Kurs verkaufen.

[Maettel]

!

Dieser Beitrag wurde vom System automatisch gesperrt. Bei Fragen wenden Sie sich bitte an [e-mail]

[Radumanz]

Es handelt sich hier eben um eine sogenannte Blitzaktie: zickzackzickzack - klar? Maettel! Wie kommst Du nur auf Zock?
Also gehandelt wird die auch von der Familie Duck. Die Kleinen kaufen die dem Onkel Donald vor der Nase weg. Der kann nur feststellen: britzel britzel.

[Radumanz]

Antwort auf Beitrag Nr.: 26.280.327 von Radumanz am 18.12.06 17:08:50

Nächstes Zick und Zack bei 0.36. Das Gewitter verzieht sich.

[kaubeuhut]

Irvine, CA – Kiel, 12. Feb. 2007 – Proteo, Inc. (OTCBB: PTEO; WKN: 925981) und ihre hundertprozentige Tochtergesellschaft Proteo Biotech AG gaben heute bekannt:

Das Committee for Orphan Medical Products (COMP) der Europäischen Arzneimittelzulassungsbehörde (EMEA) hat ein positives Votum abgegeben, Elafin den Orphan Drug Status zur Behandlung des pulmonalen arteriellen Hochdrucks und des chronisch thrombembolischen Hochdrucks zu erteilen. Der Orphan Drug Status wird wirksam, sobald die Europäische Kommission dieses Votum bestätigt. Dies wird noch im ersten Quartal 2007 erwartet.

Birge Bargmann, CEO der Proteo: »Der Orphan Drug Status sichert einem Wirkstoff zur Behandlung der entsprechenden Erkrankung Marktexklusivität innerhalb der Europäischen Gemeinschaft für eine Dauer von bis zu 10 Jahren nach Arzneimittelzulassung zu. Darüber hinaus kann nach Erteilung des Status für Elafin ein vereinfachtes, beschleunigtes und kostengünstigeres Zulassungsverfahren sowie die beratende Begleitung der EMEA bis zur Zulassung als Arzneimittel in Anspruch genommen werden.«

Arterieller pulmonaler Hochdruck (PAH) ist eine Erkrankung mit kontinuierlich hohem Druck in den Lungenarterien. Unbehandelt liegt die mittlere Überlebenszeit bei 2–3 Jahren nach Diagnosestellung. Trotz der Therapiefortschritte der letzten beiden Jahrzehnte, ist die Erkrankung immer noch lebensbedrohlich; es bedarf dringend zusätzlicher neuer Therapien. Es wird erwartet, dass die weltweiten Kosten für spezifische Arzneimittel zur Behandlung des pulmonalen Hochdrucks bis 2014 auf über 2 Milliarden $ pro Jahr steigen werden (Quelle: Datamonitor 2006).

Elafin, ein menschliches Eiweiß, zeigte in einer klinischen Phase I Studie eine sehr gute Verträglichkeit. Elafin blockiert solche Enzyme, die für den pulmonalen Hochdruck mitverantwortlich gemacht werden. Dies macht Elafin zu einem sehr Erfolg versprechenden Wirkstoff für die Behandlung dieser Erkrankung. Prof. Oliver Wiedow, Chairman of the Board der Proteo, Inc.: »Das positive Votum der Orphan Drug Kommission der EMEA ist ein Meilenstein für unsere Entwicklung einer neuen Therapie für diese lebensbedrohliche Erkrankung, mit einem Wirkungs­mechanismus, der unabhängig von dem aller bisherigen Therapien ist. Wir freuen uns darüber, dass Prof. Marius Höper, Abteilung für Pneumologie der Medizinischen Hochschule Hannover und einer der führenden Spezialisten auf dem Gebiet des pulmonalen Hochdrucks, diesen Antrag unterstützt hat.«

Über Proteo

Die Proteo Biotech AG mit Sitz in Kiel wurde im April 2000 gegründet und im selben Jahr von der US-amerikanischen Muttergesellschaft Proteo Inc. übernommen. Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte für rekombinantes menschliches Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung. Das Land Schleswig-Holstein fördert das innovative Entwicklungsvorhaben der Proteo Biotech AG mit Mitteln des Europäischen Fonds für regionale Entwicklung (EFRE).

[kaubeuhut]

DGAP-News: Proteo Inc.

DGAP-News: Proteo, Inc./Proteo Biotech AG:EU-Kommission erteilt Orphan-Drug-Status für Elafin zur Behandlung von PAH

Proteo Biotech AG / Zulassungsantrag

29.03.2007

Mitteilung, übermittelt durch die DGAP - ein Unternehmen der EquityStory AG. Für den Inhalt der Mitteilung ist der Herausgeber verantwortlich. ---------------------------------------------------------------------------

Irvine, CA - Kiel, 29. März 2007 - Proteo, Inc. (OTCBB: PTEO; WKN: 925981) und ihre hundertprozentige Tochtergesellschaft Proteo Biotech AG gaben heute bekannt:

Die Proteo Biotech AG hat auf Empfehlung der europäischen Arzneimittelagentur EMEA von der EU-Kommission den Orphan-Drug-Status für ihren klinischen Wirkstoffkandidaten Elafin für das Anwendungsgebiet »Behandlung der pulmonalen arteriellen Hypertonie (PAH) und der chronisch thromboembolischen pulmonalen Hypertonie« erhalten. Dieser sichert dem Unternehmen das exklusive Vermarktungsrecht innerhalb der Europäischen Union für die Dauer von bis zu zehn Jahren nach Erhalt der Zulassung. Zudem ermöglicht die Einstufung als Orphan-Drug den Zugang zu einem zentralisierten Zulassungsverfahren und begünstigt so eine beschleunigte Zulassung in allen Staaten der EU. »Wir sind zuversichtlich, dass Elafin in einigen Jahren als neue Therapieoption zur Behandlung dieser schweren Erkrankung zur Verfügung stehen wird«, so Birge Bargmann, Vorstand der Proteo Biotech AG. Nach ihrer Einschätzung habe die Ausweisung von Elafin als Orphan Drug diesen Arzneimittelkandidaten nicht nur bekannter gemacht sondern auch das Unternehmen in seiner Expertise in Fragen der Arzneimittelzulassung gestärkt.

Prof. Oliver Wiedow, Aufsichtratsvorsitzender der Proteo Biotech AG: »Nach den Erfolg versprechenden Ergebnissen der Klinischen Phase 1 Studie liegen jetzt die klinischen Multi-Center-Studien vor uns, um den für die Zulassung erforderlichen Wirksamkeitsnachweis zu erbringen.«

Über Proteo Die Proteo Biotech AG mit Sitz in Kiel wurde im April 2000 gegründet und im selben Jahr von der US-amerikanischen Muttergesellschaft Proteo Inc. übernommen. Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte für rekombinantes menschliches Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung. Das Land Schleswig-Holstein fördert das innovative Entwicklungsvorhaben der Proteo Biotech AG mit Mitteln des Europäischen Fonds für regionale Entwicklung (EFRE).

Zukunftsgerichtete Aussagen Diese Presseinformation enthält bestimmte in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieser Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technischen Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen Pläne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-KSB und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen. Weitere Informationen: www.proteo.de

Kontakt: Dr. Barbara Kahlke Proteo Biotech AG Am Kiel-Kanal 44 D-24106 Kiel Email : [e-mail] Telefon: [phone]

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Text ausschließlich in englischer Sprache

[Maettel]

Bitte klingeln falls wieder einmal gehandelt wird, Danke!

[kaubeuhut]

Antwort auf Beitrag Nr.: 29.538.608 von Maettel am 30.05.07 13:05:35

"An der Börse wird nicht geklingelt." Capice?

[kaubeuhut]

Antwort auf Beitrag Nr.: 29.538.608 von Maettel am 30.05.07 13:05:35

Ende der Durchsage!

[kaubeuhut]

Irvine, CA - Kiel, 17. Juli 2007 - Die Proteo, Inc. (OTCBB: PTEO;Frankfurter Freiverkehr: WKN: 925981) und ihre 100-prozentigeTochtergesellschaft Proteo Biotech AG gaben heute die Zusammenarbeit mitder University of Alberta bekannt.

Das Kieler Unternehmen schloss einen Vertrag mit Dr. Bernard Thébaud,Professor für Pädiatrie und Neonatologie der kanadischen Universität, zurgemeinsamen Erforschung von Elafin im Bereich der Behandlung vonLungenkrankheiten bei Neugeborenen. Dr. Thébaud ist ein ausgewiesenerExperte mit tierexperimenteller und klinischer Erfahrung in diesem Bereich.Birge Bargmann, Vorstand der Proteo Biotech AG: »Es ist ein großer Erfolg,dass wir mit Bernard Thébaud einen so erfahrenen Mediziner gewinnenkonnten, um die Eignung von Elafin zur Behandlung von Neugeborenen zuerforschen.« Die internationale Zusammenarbeit mit klinisch tätigenWissenschaftlern sei in diesem Fall besonders wichtig, da bisher keineStudien über die Anwendung des Entzündungshemmers Elafin bei Neugeborenenvorliegen.

Im Rahmen der neu geschlossenen Kooperation wird Proteo zunächst dietierexperimentelle Erprobung seines lead products an neugeborenen Rattenunterstützen. »Wir wollen uns aber frühzeitig darum bemühen, Elafin auchfür die Behandlung von Kindern zu testen. Ein natürlicherweise beimMenschen vorkommendes Eiweiß wie Elafin erscheint uns aufgrund seinesWirkmechanismus besonders geeignet«, erklärt Professor Oliver Wiedow,Aufsichtsratsvorsitzender der Proteo Biotech AG. Eine Zuversicht, die derkanadische Partner teilt. »Falls die geplanten Tierversuche zeigen, dassElafin die Lungendestruktion bei Frühgeborenen verhindert, könnte es dasideale Therapeutikum sein«, so Dr. Bernard Thébaud.

Die Proteo Biotech AG hat bereits im Frühjahr 2007 auf Empfehlung dereuropäischen Arzneimittelagentur EMEA von der EU-Kommission denOrphan-Drug-Status für ihren klinischen Wirkstoffkandidaten Elafin für dasAnwendungsgebiet »Behandlung der pulmonalen arteriellen Hypertonie (PAH)und der chronisch thromboembolischen pulmonalen Hypertonie« erhalten.Dieser sichert dem Unternehmen das exklusive Vermarktungsrecht innerhalbder europäischen Union für die Dauer von bis zu zehn Jahren nach Erhalt derZulassung.

Über Elafin:Elafin ist ein Eiweiß, das natürlicherweise in Haut, Lunge und Brustdrüsegebildet wird und die Gewebe, in denen es vorhanden ist, vor Zerstörungdurch das Immunsystem schützt. Die Eigenschaft von Elafin, die anEntzündungsreaktionen beteiligten Enzyme zu blockieren, macht es zu einemsehr Erfolg versprechenden Wirkstoff für die Behandlung von entzündlichenLungenerkrankungen oder schweren Reperfusionsschäden - etwa nachHerzinfarkt, Unfallverletzungen oder Organtransplantationen. In einerklinischen Phase I Studie wurde die sehr gute Verträglichkeit von Elafingezeigt.

Über Proteo: Die Proteo Biotech AG mit Sitz in Kiel wurde im April 2000 gegründet und imselben Jahr von der US-amerikanischen Muttergesellschaft Proteo Inc.übernommen. Das Unternehmen erforscht, entwickelt und vermarktet Substanzenzur biologischen und medizinischen Forschung sowie für den Einsatz alsArzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte fürrekombinantes menschliches Elafin. Proteo beabsichtigt die Auslizensierungausgewählter Indikationen und den Aufbau internationaler strategischerAllianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung. DasLand Schleswig-Holstein fördert das innovative Entwicklungsvorhaben derProteo Biotech AG mit Mitteln des Europäischen Fonds für regionaleEntwicklung (EFRE).


Zukunftsgerichtete Aussageniese Presseinformation enthält bestimmte in die Zukunft gerichteteAussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurchgeschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieserMitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglichmöglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunftgerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kannkeine Sicherheit dafür geben, dass sich diese Aussagen als zutreffenderweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignissekönnen erheblich von den in diesen Aussagen angenommenen abweichen.Technische Komplikationen können auftreten, die eine unmittelbare Umsetzungder oben beschriebenen wesentlichen strategischen Pläne ausschließen. DasUnternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen undhiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näherbestimmt werden, insbesondere von solchen, die in den Berichten desUnternehmens in Form 10-KSB und in anderen Berichten an die United StatesSecurities and Exchange Commission enthalten sind. Die Gesellschaftübernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagenfortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.

Kontaktr. Barbara KahlkeProteo Biotech AGAm Kiel-Kanal 44D-24106 KielEmail : [e-mail]: [phone]Fax : [phone]

[kaubeuhut]

Irvine, CA - Kiel - Kairo, 9. August 2007 - Die Proteo, Inc. (OTCBB: PTEO;Frankfurt Freiverkehr: WKN: 925981) mit ihrer 100-prozentigenTochtergesellschaft Proteo Biotech AG und Minapharm Pharmaceuticals SAE(Cairo and Alexandria Stock Exchange: MIPH) mit ihrer TochtergesellschaftRhein Minapharm Biogenetics SAE gaben heute gemeinsam bekannt:

Proteo und Rhein Minapharm haben einen Lizenzvertrag für die klinischeEntwicklung, Herstellung und den Vertrieb von Elafin abgeschlossen. RheinMinapharm erhält die exklusiven Vertriebsrechte für Elafin in Ägypten, immittleren Osten und Afrika. Die Proteo Biotech AG erhält eineVorauszahlung, Meilenstein-abhängige Zahlungen sowie eine angemesseneUmsatzbeteiligung. Zusätzlich wird Minapharm die Finanzierung derklinischen Forschung in dieser Region übernehmen. Im Rahmen des Vertragesfindet ein Transfer der biotechnologischen Herstellungstechnologie fürElafin nach Kairo statt. Basis des Herstellungsverfahrens ist dieHerstellung von Elafin in Hansenula polymorpha, eine Hefe-Technologie, dievon der ARTES Biotechnology GmbH, Deutschland lizenziert wurde.

Elafin ist ein Eiweiß, das natürlicherweise in Haut, Lunge und Brustdrüsegebildet wird und die Gewebe, in denen es vorhanden ist, vor Zerstörungdurch das Immunsystem schützt. Die Eigenschaft von Elafin, die anEntzündungsreaktionen beteiligten Enzyme zu blockieren, macht es zu einemsehr Erfolg versprechenden Wirkstoff für die Behandlung von entzündlichenLungenerkrankungen oder schweren Reperfusionsschäden - etwa nachHerzinfarkt, Unfallverletzungen oder Organtransplantationen. In einerklinischen Phase I Studie wurde die sehr gute Verträglichkeit von Elafingezeigt.

Birge Bargmann, Vorstand der Proteo Biotech AG: »Diese Lizenzvereinbarungist ein wichtiger Schritt, um unsere innovative Arzneimittelentwicklung inabsehbarer Zeit für Patienten verfügbar machen zu können. Mit Minapharmhaben wir ein renommiertes Unternehmen für die Vermarktung von Elafin inder MENA Region gewinnen können.«

Dr. Wafik Bardissi, Chairman & CEO der Minapharm: »Die Aufnahme desvielversprechenden neuen Wirkstoffs Elafin in unsere Pipeline stellt eineerhebliche Stärkung unserer klinischen Entwicklung und unseres F&EProgramms dar. Der Erfolg von Minapharms gegenwärtig vermarktetenrekombinanten Proteinen - neuartig und trotzdem bezahlbar - hat sowohl dieMediziner als auch die Geschäftswelt beeindruckt, hauptsächlich, da derscheinbare Gegensatz von wirtschaftlichem Erfolg und moralischerVerantwortung überwunden werden konnte. Wir fühlen uns verpflichtet dieLücke zwischen innovativen Proteinen zur Therapie und den bedürftigenPatienten in unserem Teil der Welt zu schließen.«

Über Proteo Die Proteo Biotech AG mit Sitz in Kiel wurde im April 2000 gegründet und imselben Jahr von der US-amerikanischen Muttergesellschaft Proteo Inc.übernommen. Das Unternehmen erforscht, entwickelt und vermarktet Substanzenzur biologischen und medizinischen Forschung sowie für den Einsatz alsArzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte fürrekombinantes menschliches Elafin. Proteo beabsichtigt die Auslizensierungausgewählter Indikationen und den Aufbau internationaler strategischerAllianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung. DieProteo Biotech AG hat bereits im Frühjahr 2007 auf Empfehlung dereuropäischen Arzneimittelagentur EMEA von der EU-Kommission denOrphan-Drug-Status für ihren klinischen Wirkstoffkandidaten Elafin für dasAnwendungsgebiet »Behandlung der pulmonalen arteriellen Hypertonie (PAH)und der chronisch thromboembolischen pulmonalen Hypertonie« erhalten.Dieser sichert dem Unternehmen das exklusive Vermarktungsrecht innerhalbder europäischen Union für die Dauer von bis zu zehn Jahren nach Erhalt derZulassung. Das Land Schleswig-Holstein fördert das innovativeEntwicklungsvorhaben der Proteo Biotech AG mit Mitteln des EuropäischenFonds für regionale Entwicklung (EFRE).

Über MinapharmMinapharm mit Sitz in Kairo ist eines der führenden Pharmaunternehmen inÄgypten und im Mittleren Osten. Das Unternehmen ist spezialisiert auf dieHerstellung und Vermarktung innovativer Arzneimittel. DieTochtergesellschaft Rhein-Minapharm-Biogenetics ist im Bereich Forschung,Entwicklung und Herstellung biotechnologischer Arzneimittel mit denSchwerpunkten entzündliche Lebererkrankungen, Thrombose und Hämostasetätig. Das Unternehmen verfügt über eigene Herstellungsanlagen und hatbereits drei biotechnologische Arzneimittel auf dem Markt, sowie weitere inder Entwicklung. Minapharm realisiert kurze Produktentwicklungszeiten, ohnedabei ethische Maßstäbe und Sicherheitsstandards zu vernachlässigen.Durch die Verbindung von Fachkompetenz, globalen strategischen Allianzenund Marktführerschaft im Bereich biotechnologischer Arzneimittel trägtMinapharm maßgeblich zur Verbesserung der Lebensqualität in der Region bei.Minapharm beschäftigt über 700 Mitarbeiter und ist an den Börsen in Kairound Alexandria gelistet (www.minapharm.com).

Zukunftsgerichtete Aussagen Diese Presseinformation enthält bestimmte in die Zukunft gerichteteAussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurchgeschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieserMitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglichmöglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunftgerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kannkeine Sicherheit dafür geben, dass sich diese Aussagen als zutreffenderweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignissekönnen erheblich von den in diesen Aussagen angenommenen abweichen.Technischen Komplikationen können auftreten, die eine unmittelbareUmsetzung der oben beschriebenen wesentlichen strategischen Pläneausschließen. Das Unternehmen weist darauf hin, dass in die Zukunftgerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durchweitere Faktoren näher bestimmt werden, insbesondere von solchen, die inden Berichten des Unternehmens in Form 10-KSB und in anderen Berichten andie United States Securities and Exchange Commission enthalten sind. DieGesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichtetenAussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungenanzupassen.


Kontaktr. Nils WichmannProteo Biotech AGAm Kiel-Kanal 44D-24106 KielEmail : [e-mail]: [phone]Fax : [phone]

Frank MüllerR&D ManagerMinapharm Pharmaceuticals

Email : [e-mail]


DGAP 09.08.2007 ---------------------------------------------------------------------------

[derhollaender]

Antwort auf Beitrag Nr.: 31.101.071 von kaubeuhut am 09.08.07 19:18:19

Hallo Kaubeuhut,

Mittlerweile bist Du ja Einzelkämpfer hier geworden. Fand eigentlich Deine Gespräche mit dem Poet Radumanz ganz unterhaltsam.
Habe mal folgende Frage:
Was bedeuten die smilies in deine Beiträge? Ist das Hinweis auf was lustiges oder Freude auf das was sich andeutet?

Schönen Abend und wohlgemeinten Gruss von einem

Holländer

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.101.790 von derhollaender am 09.08.07 19:57:17

Woher die Smilies kommen, ist mir nicht klar. Im kopierten und dann hier eingestellten Originaltext befinden sie sich jedenfalls nicht.

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.101.790 von derhollaender am 09.08.07 19:57:17

Der Poet Radumanz scheint gesperrt zu sein, oder - vielleicht - hat er einfach nur die Lust verloren. Friede seiner Asche.

[derhollaender]

Antwort auf Beitrag Nr.: 31.113.776 von kaubeuhut am 10.08.07 13:50:41

Danke für Deine Antworten, Kaubeuhut, hoffe mal Radumanz Beiträge und plötzlichem Ausscheiden waren nicht der Folge von excessivem Elafin Gebrauch.

Sieht eigentlich immer noch ganz gut oder soger immer besser aus mit Proteo, Elafin ist sicherlich vielversprechend, jedoch der Bekanntheitsgrad ist niedrig, deshalb ist auch so ruhig hier und der Kurs armutig. Ich halte aber meine (Proteo) Stellung

Grüsse

Holländer

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.120.786 von derhollaender am 10.08.07 20:19:22

o.k. Danke!

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.121.362 von kaubeuhut am 10.08.07 21:17:21

Ich finde, dass Proteo sogar auf einem sehr guten Weg ist. Ich bin mal gespannt, wie hoch das Upfront-Payment ausfallen wird.

[derhollaender]

Antwort auf Beitrag Nr.: 31.124.244 von kaubeuhut am 11.08.07 12:50:41

Genau, aber noch interessanter, finde ich persönlich, das hiermit die erste wirklich strategische Allianz initiiert ist.

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.132.175 von derhollaender am 12.08.07 18:36:21

Eben. Das Unternehmen hat eindrucksvoll bewiesen, dass es zu so etwas in der Lage ist. Eine Fähigkeit, die vielen Neugründungen in der Vergangenheit oft gefehlt hat. Forschung und Entwicklung ist schön, letztendlich musss aber die Kasse klingeln.

[Dursum]

gab es bei der aktie nicht mal in einigen foren hinweise, dass da irgendwas nicht ganz so läuft, wie gesetzgeber sich das denken?
böse zungen munkeln auch, dass unbestätigten gerüchten nach anwälte dafür sogrgen sollen, dass kritische forenbeiträge von den forenbetreibern gelöscht werden müssen. ist da wirklich was dran? ich kann mir sowas bei seriösen firmen einfach nicht vorstellen.

[Radumanz]

Antwort auf Beitrag Nr.: 31.135.430 von Dursum am 13.08.07 08:37:19

Das Alte stürzt, es ändert sich die Zeit; und Leben blüht auch keins aus den Ruinen. (Schiller, etwas angepasst)

Da hat offensichtlich wieder einer Lust auf Ohrfeigen! Na wenn sie ihm schmecken, kann er sie gerne haben. Da er, wie man sieht, für mich eine Menge Liebenswürdigkeiten bereithält, möcht ich nicht hintanstehen..

Und strahlend werdet ihr den Reinen mit abgesägten Hosen stehen sehn (Schiller, ebenfalls angepasst).

Ich reibe die Hände, Söhnchen!

[derhollaender]

Hallo Radumanz
Das hoert sich ziemlich militant an...
Ich hab auch mal in diesem Forum von Proteo in Sachen Abzocke bzw. Betrug gelesen, hab es aber nie verstanden wie das funktionieren konnte weil viel Prosa dazwischen war, aber vielleicht klaerst Du uns noch mal auf?
Gruss

[Radumanz]

Antwort auf Beitrag Nr.: 31.143.566 von derhollaender am 13.08.07 17:55:32

Ich habe dem, was ich über "die seltsame Firma" hier an diesem Thread veröffentlicht habe, nichts mehr hinzuzufügen. Ich verfüge über ein Zusammenfassung der Fakten rund um Proteo und die Art und Weise, wie solche Geschäfte zustande kommen. Da ich keine Lust verspüre, die Mods hie am Thread herauszufordern, und weil ich dem Haptakteur auch keine Gelegenheit bieten will sich zu produzieren (er gibt sich alle Mühe, wieder von sich reden zu machen!), gebe ich diese Unterlage nur via Bordmail weiter.

Im übrigen möchte ich betonen, dass ich trotz direkter Androhung gerichtlicher Schritte (kann am Thread nachgelesen werden) durch den Hauptakteur bislang noch keine Einladung zu einem Treffen mit dem Richter erhalten habe.

Dass die deutschen Gerichte den Machenschaften gewisser Börsianer sehr viel Freiraum lassen, mag man bedauern, helfen kann man damit niemandem.

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Radumanz]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.166.278 von Radumanz am 15.08.07 11:21:17

Da ist ja einer ganz schön aus dem Häuschen.

[Radumanz]

Antwort auf Beitrag Nr.: 31.173.671 von kaubeuhut am 15.08.07 19:09:48

Zitat aus einer BM-Zuschrift
------------------------------------------------

In jedem Beruf gibt es ein Dutzend oder mehr wichtige Regeln. Deren Kenntnis unterscheidet den Amateur vom Profi. Sie nicht zu kennen wäre so, wie wenn Du plötzlich am Steuer einer Boing 747 sitzt, während sie auf der Landebahn landet. Wenn Du nicht gerade ein Berufsflieger bist, wärest Du zu Tode erschrocken und würdest Dir in die Hose machen. Behalte das in Erinnerung, während Du diesen Artikel liest, weil ich Dir erklären werde, wie die Manipulation des Marktes funktioniert!

Um erfolgreich zu spekulieren, muß man eins voraussetzen: die Small Cap Märkte bestehen in erster Linie, um dich zu Schröpfen. Ich spreche hier von Märkten wie Vancouver, Alberta, den OTC (Pinksheets, OTC BB u.a.).

Der durchschnittliche Investor wird nicht viel Erfolg haben mit dem Smallcaps-Glücksspiel. Damit diese Märkte sich fortsetzen, müssen neue Verlierer in den Markt kommen. Die Annahme stimmt nicht, dass solche verrückte Aktivität nur kurzlebig sein kann. Ich schlage eine andere Lösung vor. Was die Profis und die Bankenaufsicht wissen und verstehen, aber der Rest von uns nicht, ist dies:

Regel Nr. 1: Alle heftigen Preisbewegungen in diesen Small-Cap-Märkten - ob rauf oder runter - sind das Resultat von einem oder mehreren (gewöhnlich einer Gruppe) von Professionals, die den Preis manipulieren.
Ohne irgendeinen offensichtlichen Grund rast eine Aktie plötzlich nach oben bei niedrigem Volumen. Irgendjemand manipuliert die Aktie, oft mit einem nicht begründeten Gerücht. Damit diese Manipulationen wirken, nehmen die Professionals an, dass
(a) die Leute dumm sind,
(b) die Leute vor allem kaufen, wenn der Preis der Aktie hoch ist und
(c) verkaufen, wenn der Preis niedrig ist.
Daher kann der Marktmanipulator solange erfolgreich sein, wie er die Menge kontrolliert.
Um es klar zu sagen: der Grund, warum Du in diesen Märkten spekulierst, ist, dass Du gierig bist und optimistisch. Du glaubst, dass morgen alles besser ist und Du musst schnell Geld machen Es ist diese Einstellung, die der Marktmanipulator ausnutzt. Er packt Dich bei Deiner Gier und Furcht für eine bestimmte Aktie! Wenn er will, daß Du kaufst, sieht die Zukunft der Aktie aus wie die nächste Microsoft. Sobald der Manipulator will, dass Du das sinkende Schiff verlässt, wird er plötzlich sehr vorsichtig mit seinen Bemerkungen über das Unternehmen. Dies bringt uns zu der nächsten Regel:

Regel Nr. 2: Sobald der Marktmanipulator seine Aktien verkaufen will, wird er eine "Good News" - Kampagne starten.
Hast Du Dich jemals gewundert, warum ein bestimmtes Unternehmen dargestellt wird als sei es das Größte seit der Erfindung der Brotschnitte? Diese Darstellung wird bewusst hergestellt. Newsletterschreiber werden angeheuert - ob heimlich oder nicht -, um einen bestimmten Wert hochzujubeln. Public Relation Firmen werden angeheuert und auf ein nichts ahnendes Publikum losgelassen. Verträge, um in Radiotalkshows zu erscheinen, werden unterschrieben und ausgeführt. Eine Reklame-Kampagne beginnt (Fernsehreklame, Zeitungsanzeigen, Wurfsendungen). Die Banken kriegen billige Aktien ab, damit sie die Firma in ihren Kundenbriefen empfehlen. Die Firma tritt bei Investmentkonferenzen auf, um Dir zu erzählen, wie ganz anders ihre Firma ist. Merkwürdige kleine begeisterte Threads tauchen in den Bords auf, immer von der gleichen Sorte Pusher, je mehr umso besser. Der Hype geht los. Je cleverer ein Stock Promoter ist, um so besser sind seine Kenntnisse der Werbebranche. Kleine Tricks werden benutzt, z.B. lass eine völlig unbekannte Firma interessant aussehen, indem Du sie mit einer kürzlichen Erfolgsstory vergleichst. Der einzige Grund warum Du zu diesem anscheinend unglaublichen Bankett eingeladen wirst, ist der, dass Du das Hauptgericht bist! Nachdem der Marktmanipulator Dich in sein Investment gesaugt hat indem er seine Papiere gegen Dein Geld getauscht hat, schliessen sich die Mauern um Dich. Warum ist das so?

Regel Nr. 3: Sobald der Manipulator seine Aktien verkauft hat, wird er eine Kampagne mit schlechten oder gar keinen Nachrichten starten.
Deine Lieblingsaktie stagniert oder geht etwas runter von ihrer Höhe. Plötzlich ist da ein Vakuum von News, entweder gar keine Nachrichten oder schlimme Gerüchte.......
Die wirklich aalglatten Marktmanipulierer werden sogar die Bords und die Journalisten entsprechend mit negativen Geschichten über die Firma füttern. Oder eine Propagandakampagne mit negativen Gerüchten auf allen Kommunikationsebenen starten, sogar jemanden anstellen, um den Preis zu drücken, und sogar jemanden anheuern, der den Analysten angreift, welcher zuvor begeistert über den Wert geschrieben hatte (Dies ist kein Spiel für Leute mit schwachem Herzen!).
Du siehst die Aktie endlos dahintreiben, Du kannst sogar ein Gefühl der Hilflosigkeit entwickeln, so als ob Du im All schwebst ohne Rettungsleine. Das genau ist es, was der Manipulator will (s. Regel Nr. 5). Veilleicht tut er dies, um die tiefe Enttäuschung über einen missglückten Deal zu vermeiden. Oftmals hörst Du den Refrain "oh, das sind die jungen Unternehmen ...sehr riskant..." oder "9 von 10 Firmen machen jedes Jahr pleite und dies ist eine Venture Capital Börse für junge Unternehmen". Denke nicht, dass das nicht geplant war!

Regel Nr. 4: Jede Aktie, die bei hohem Volumen zu einem hohen Preis gehandelt wird, signalisiert die Verkaufsphase der Professionals.
Als das Volumen geringer war, war auch der Preis niedriger. Die Professionals sammelten ein. Sobald der Preis steigt, erhöht sich das Volumen. Die Professionals kauften niedrig und verkauften hoch. Die Amateure kauften hoch und werden bald genug niedriger verkaufen. Der Marktmanipulator wird alles in seiner Macht stehende tun, um Dich aus der Aktie draußen zu halten, manchmal, indem Du hinausgeschüttelt wirst, solange bis der Preis zwei bis dreimal höher ist und er selbst genug Aktien eingesammelt hat. Wann immer Du ein sehr hohes Volumen siehst, hat die Verkaufsphase begonnen und Du wirst wahrscheinlich zum Höchstpreis kaufen. Erfolgreiche Kurzfristtrader gehen gewöhnlich aus einer Aktie raus, sobald das Volumen hoch ist, Amateure werden gierig und kaufen hier.

Regel Nr. 5: Der Marktmanipulierer wird immer versuchen Dich zum Kaufen zu kriegen, wenn der Preis so hoch wie möglich ist, und zum Verkauf beim niedrigstmöglichen Preis.
So wie der Manipulator jeden nur möglichen Trick benutzt, um Dich zu der Party einzuladen, wird er Dich grausam und brutal von seiner Aktie vertreiben, sobald er Dich geschröpft hat. Die erste falsche Annahme ist die, dass der Stockpromoter Dich reich machen will, indem Du in seine Firma investierst. So beginnt eine Reihe von Lügen, die laufen, solange wie es Dein Magen verträgt.
Du kriegst den ersten Hinweis, dass er Dich getäuscht hat, wenn die Aktie bei höheren Level absackt. Irgendwie hat sie den Dampf verloren und Du weißt nicht warum. Tja, sie hat den Dampf verloren, weil der Stockmanipulator aufgehört hat, sie zu pushen. Sie ist zu stark aufgebläht und er kann niemanden mehr überzeugen, sie zu kaufen. Das Volumen trocknet aus während der Preis durchzusacken scheint.
Wenn der Manipulator Dich aus der Aktie vertreiben will, wird es ein Orchester von Gerüchten geben, die zirkulieren, auf Dich wird geschossen werden aus verschiedenen Richtungen. Du wirst den Beweis in einem sehr scharfen Absturz des Kurses sehen bei riesigem Volumen. Das bist Du und deine Kumpels, die zum Ausgang rennen. Wenn der Deal echt ist, will der Manipulator all deine Aktien oder so viele wie möglich kriegen zum niedrigstmöglichen Preis. Der Marktmanipulator wird Dich hinausschütteln, indem er den Preis so niedrig wie möglich herunter treibt, so kann er so viele Aktien wie möglich wieder einsammeln. Die erste Phase des Einsammelns war tödlich still. Erst sobald die Insider all ihre Aktien eingesammelt hatten, haben sie Dir ihr Geheimnis verraten!

Regel Nr. 6: Du wirst der letzte sein, der informiert wird, wenn das Geschäft Zeichen von Schwäche zeigt.
Zum Beispiel bei australischen Minenaktien: Ein Rückblick wird Dir oft zeigen, dass da ein kleiner Rückgang im Kurs war, gerade als die Bohrproben aufgeschoben wurden oder das Geschäft platzte. Die Manipulatoren begannen ihre Aktien zu verkaufen, um den Kurssturz einzuleiten oder um diesen zu beschleunigen. Der schnelle Absturz macht es Dir unmöglich, mehr für das Papier zu kriegen als Du bezahlt hast - und gibt Dir einen besseren Grund, noch etwas zu warten falls der Kurs zurückkommt. Dann beginnt die Phase der Seitwärtsbewegung und Furcht überkommt Dich. Wenn Du nicht gerade Nerven wie Stahlseile hast und es Dir leisten kannst, den Stockmanipulator auszusitzen, wirst Du sehr wahrscheinlich die Aktien zu einem billigen Preis verkaufen. Denn der Insider, Makler oder die emittierende Bank sind verpflichtet, die Aktien zurückzukaufen, um die Firma am Leben zu erhalten und Kontrolle über sie zu behalten. Je weniger er dafür zahlen muss, umso niedriger werden die Kosten für eine neue Stockpromotion zu einem zukünftigen Zeitpunkt. Auch wenn die Firma gar keine Zukunft mehr hat, wird doch der Mantel noch einen gewissen Wert haben....

Regel Nr. 7: Der Marktmanipulator wird Dich so in seine Aktie zwingen, dass Du den Preis hochtreibst.
Er wird sein eigenes Papier kaufen, so dass Du nach einem höheren Preis verlangst. Er wird Dich zu einem höheren Preis zwingen, indem er die Aktien zum laufenden Preis aufkauft. Man kann die Marktmanipulation vermeiden indem man nicht kauft zu Zeiten des abnormal hohen Volumens, bekannt als "die Aktie hochjagen zu einem höheren Preis".

Regel Nr. 8: Der Marktmanipulator ist sich Deiner Gefühle, die Du während des Anstiegs und des Absturzes erfährst, wohl bewusst und wird damit spielen wie mit einem Klavier.
Während des Anstiegs wirst Du einen Anfall von Gier haben, die Dich zwingt in die Aktie zu investieren. Während des Absturzes wirst Du Angst haben, dass Du alles verlierst, daher wirst Du zum Ausgang rennen. Kannst Du nun sehen wie einfach es ist und wie klar eine Glocke läutet? Denke nicht, dass dies Schema nicht in den Verstand eines jeden Marktmanipulators eintätowiert ist. Der Marktmanipulator wird Dich den ganzen Weg rauf und runter manipulieren. Wenn er es sehr gut macht, kann er es so aussehen lassen als sei jemand anderes daran schuld, dass Du dein Geld verloren hast. Du wirst wieder diese Aktie kaufen, er wird Dich wieder so erschrecken, dass Du denkst, Du wirst jeden Penny verlieren. Du wirst vor Entsetzen davonrennen. Und schwören, dass Du nie wieder in solche Aktien investierst. Aber viele tun es doch. Der Manipulator weiß, wie er Dich zurückbringt zu einem neuen Spiel.

Letzte Regel: Ein neuer Schub von Zockern wird mit jedem neuen Spiel geboren.
Die Finanzhaie sind charakterlose und verbrecherische Gesinnungslumpen, welche die Amateure nach Strich und Faden ausnehmen. Es wird immer einen vertrauenden Dummen geben, den die tollwütigen Hunde in Stücke reißen.

Fazit: Mach Deine sorgfältige Recherche bevor du investierst. Such Dir gute Unternehmen mit denen Du spekulierst und kaufe zu angemessenen Kursen. Alles andere ist kriminell oder dumm!
--------------------------------------------------------------

Freut Euch des Lesens!!!!!!!!!!!

[Radumanz]

Die Firma Proteo ist von mir mit dem nachstehenden Brief über die Machenschaften gewisser Leute informiert worden. Anstelle von XXXXXXX kann jeder den Namen einsetzen, der ihm in diesem Zusammenhang einfällt.
-------------------------------------------------------------------

Sehr geehrte Damen und Herren

Am WO Thread „an der Börse wird nicht geklingelt“ hat mich der oben erwähnte Herr, der sich in seiner Fidesprit in Bubikon (CH) u.a. mit Ihrem Firmenlogo schmückt, auf niederträchtigste Art angegriffen und mich als professionellen Börsenhai, der „Tausende von Anlegern“ hereingelegt habe, dargestellt. Ich hatte mir vorgenommen, den von mir aufgezogenen Thread ruhen zu lassen; es war Herr XXXXXXXX, der unter seinem Pseudonym „kaubeuhut“ die Auseinandersetzung erneut lanciert hat.

Als erstes möchte ich klarstellen, dass mein integrer Ruf von niemandem angezweifelt wird, ausser von XXXXXXXX. Da mich einige Leute am WO kennen, sehe ich mich zu Gegenmassnahmen genötigt; ich werde also wieder publizieren. Da davon auch Ihre Firma betroffen ist halte ich es für richtig, Sie im Voraus zu informieren.

Sie haben sich mit einem Financier liiert, der als konkursiter Unternehmer (EuroAmerican) nicht gerade den Ruf hat, ein besonders seriöser Makler zu sein, was sich auch an verschiedenen Gerichtsverfahren in der Vergangenheit ablesen lässt. XXXXXXXs Firma in Venlo ist Ihnen sicher ebenfalls ein Begriff. Ich brauche mich dazu nicht weiter auszulassen.

Da Sie als Firma von XXXXXXXXs Aktivitäten profitiert haben, werden Sie sicher daran interessiert sein, auf dem Laufenden gehalten zu werden. Als von diesem Manne geschädigter Anleger – ich bin übrigens bestens dokumentiert – werde ich ab sofort wieder aktiv, nicht nur am WO, ich werde auch bei Behörden und anderen mir geeignet erscheinenden Stellen versuchen, mit Informationen und Rückfragen Klarheit in die Aktivitäten des Kutscher-Konglomerates zu bringen.
_________________________________________________________________

[kaubeuhut]

Wenn Du uns jetzt noch verrätst, was dein vorletzter Beitrag mit Proteo zu tun hat, kämen wir an diesem Wochenende alle noch einen Riesenschritt weiter.

[derhollaender]

Meine Herren!

Ungewollt hab ich hier Euren Streit angewackert, bin uebrigens bei Geburt Niederlaender war aber noch nie in Venlo hab damit nichts mit o.g. Diskussion zu tun und das einzige was ich hier will ist mir von den Biotech Aktien Proteo und Hana Biosciences zu informieren in der ich investiert bin.

Macht was Ihr wollt aber haut Euch nicht die Koeppe ein, das Leben ist zu schade es mit Streitereien zu verkuerzen.

Macht euch lieber ein schoenes Wochenende, das ist das was euch wuensche

Gruss

Hollaender

[kaubeuhut]

Sehr geehrter "Herr Radumanz",
sollte ich Sie beleidigt haben, oder Ihnen sonst wie "auf den Schlips" getreten sein, dann bitte ich in aller Form um Entschuldigung. Ich weiss erst jetzt, wer "Radumanz" ist. Ich hatte immer eine ganz andere Vermutung, um welche Person es sich handeln könnte. Meine auf Sie gemünzten Ausführungen nehme ich selbstverständlich vollumfänglich zurück, - sie treffen auf Sie in keiner Weise zu. Vielmehr habe ich Sie als integeren Menschen in Erinnerung.
Im übrigen sollten wir uns wieder um mehr Sachlichkeit bemhen.
Mit freundlichen Grüssen
"kaubeuhut"

[Radumanz]

Ich richte meine Aktivitäten nach den Bedürfnissen. Weitere Nachrichten sind von mir nicht zu erwarten.

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.415.041 von Radumanz am 06.09.07 14:25:29

Auch gut.

[kaubeuhut]

Proteo, Inc./Proteo Biotech AG – Minapharm/Rhein Minapharm Biogenetics SAE:
Proteo Biotech, Deutschland und Minapharm, Ägypten haben einen Entwicklungs- und Lizenzvertrag für Elafin abgeschlossen


Irvine, CA – Kiel – Kairo, 9. August 2007 – Die Proteo, Inc. (OTCBB: PTEO; Frankfurt Freiverkehr: WKN: 925981) mit ihrer 100-prozentigen Tochtergesellschaft Proteo Biotech AG und Minapharm Pharmaceuticals SAE (Cairo and Alexandria Stock Exchange: MIPH) mit ihrer Tochtergesellschaft Rhein Minapharm Biogenetics SAE gaben heute gemeinsam bekannt:

Proteo und Rhein Minapharm haben einen Lizenzvertrag für die klinische Entwicklung, Herstellung und Vertrieb von Elafin abgeschlossen. Rhein Minapharm erhält die exklusiven Vertriebsrechte für Elafin in Ägypten, im mittleren Osten und Afrika. Die Proteo Biotech AG erhält eine Vorauszahlung, Meilenstein-abhängige Zahlungen sowie eine angemessene Umsatzbeteiligung. Zusätzlich wird Minapharm die Finanzierung der klinischen Forschung in dieser Region übernehmen. Im Rahmen des Vertrages findet ein Transfer der biotechnologischen Herstellungstechnologie für Elafin nach Kairo statt. Basis des Herstellungsverfahrens ist die Herstellung von Elafin in Hansenula polymorpha, eine Hefe-Technologie, die von der ARTES Biotechnology GmbH, Deutschland lizenziert wurde.

Elafin ist ein Eiweiß, das natürlicherweise in Haut, Lunge und Brustdrüse gebildet wird und die Gewebe, in denen es vorhanden ist, vor Zerstörung durch das Immunsystem schützt. Die Eigenschaft von Elafin, die an Entzündungsreaktionen beteiligten Enzyme zu blockieren, macht es zu einem sehr Erfolg versprechenden Wirkstoff für die Behandlung von entzündlichen Lungenerkrankungen oder schweren Reperfusionsschäden – etwa nach Herzinfarkt, Unfallverletzungen oder Organtransplantationen. In einer klinischen Phase I Studie wurde die sehr gute Verträglichkeit von Elafin gezeigt.

Birge Bargmann, Vorstand der Proteo Biotech AG: »Diese Lizenzvereinbarung ist ein wichtiger Schritt, um unsere innovative Arzneimittelentwicklung in absehbarer Zeit für Patienten verfügbar machen zu können. Mit Minapharm haben wir ein renommiertes Unternehmen für die Vermarktung von Elafin in der MENA Region gewinnen können.«

Dr. Wafik Bardissi, Chairman & CEO der Minapharm: »Die Aufnahme des vielversprechenden neuen Wirkstoffs Elafin in unsere Pipeline stellt eine erhebliche Stärkung unserer klinischen Entwicklung und unseres F&E Programms dar. Der Erfolg von Minapharms gegenwärtig vermarkteten rekombinanten Proteinen – neuartig und trotzdem bezahlbar – hat sowohl die Mediziner als auch die Geschäftswelt beeindruckt, hauptsächlich, da der scheinbare Gegensatz von wirtschaftlichem Erfolg und moralischer Verantwortung überwunden werden konnte. Wir fühlen uns verpflichtet die Lücke zwischen innovativen Proteinen zur Therapie und den bedürftigen Patienten in unserem Teil der Welt zu schließen.«

Über Proteo

Die Proteo Biotech AG mit Sitz in Kiel wurde im April 2000 gegründet und im selben Jahr von der US-amerikanischen Muttergesellschaft Proteo Inc. übernommen. Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte für rekombinantes menschliches Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung. Die Proteo Biotech AG hat bereits im Frühjahr 2007 auf Empfehlung der europäischen Arzneimittelagentur EMEA von der EU-Kommission den Orphan-Drug-Status für ihren klinischen Wirkstoffkandidaten Elafin für das Anwendungsgebiet »Behandlung der pulmonalen arteriellen Hypertonie (PAH) und der chronisch thromboembolischen pulmonalen Hypertonie« erhalten. Dieser sichert dem Unternehmen das exklusive Vermarktungsrecht innerhalb der europäischen Union für die Dauer von bis zu zehn Jahren nach Erhalt der Zulassung. Das Land Schleswig-Holstein fördert das innovative Entwicklungsvorhaben der Proteo Biotech AG mit Mitteln des Europäischen Fonds für regionale Entwicklung (EFRE).

Über Minapharm

Minapharm mit Sitz in Kairo ist eines der führenden Pharmaunternehmen in Ägypten und im Mittleren Osten. Das Unternehmen ist spezialisiert auf die Herstellung und Vermarktung innovativer Arzneimittel. Die Tochtergesellschaft Rhein-Minapharm-Biogenetics ist im Bereich Forschung, Entwicklung und Herstellung biotechnologischer Arzneimittel mit den Schwerpunkten entzündliche Lebererkrankungen, Thrombose und Hämostase tätig. Das Unternehmen verfügt über eigene Herstellungsanlagen und hat bereits drei biotechnologische Arzneimittel auf dem Markt, sowie weitere in der Entwicklung. Minapharm realisiert kurze Produktentwicklungszeiten, ohne dabei ethische Maßstäbe und Sicherheitsstandards zu vernachlässigen.

Durch die Verbindung von Fachkompetenz, globalen strategischen Allianzen und Marktführerschaft im Bereich biotechnologischer Arzneimittel trägt Minapharm maßgeblich zur Verbesserung der Lebensqualität in der Region bei.

Minapharm beschäftigt über 700 Mitarbeiter und ist an den Börsen in Kairo und Alexandria gelistet (www.minapharm.com).

Zukunftsgerichtete Aussagen

Diese Presseinformation enthält bestimmte in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieser Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technischen Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen Pläne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-KSB und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.

Kontakt

Dr. Nils Wichmann
Proteo Biotech AG
Am Kiel-Kanal 44
D-24106 Kiel
E-Mail: [e-mail]
Telefon: [phone]
Fax: [phone] Frank Müller
R&D Manager
Minapharm Pharmaceuticals
E-Mail: [e-mail]





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Pressemitteilungen Medienecho Branchennews Fachpublikationen Bio-Links

[kaubeuhut]

Hat jemand mal was von der Kanzlei Mattil usw. gehört?

[derhollaender]

Kaubeuhut

Ganz normale Anwaltskanzlei meiner Ansicht. Was ist denn mit der Kanzlei Mattil und was ist die Verbindung zu Proteo?

Gruß

Holländer

[Quarcs]

Antwort auf Beitrag Nr.: 31.595.652 von kaubeuhut am 16.09.07 00:30:32

Guckst Du Hier:
http://www.gomopa.net/Finanzforum/Kapitalanlage-2/Nepper-Sch…

Etwa in der Mitte steht was über Deine Leute. Musst nur "Proteo" suchen.

Wieso willst Du was Negatives über euch lesen?

M.f.G.
Quarcs

[Radumanz]

Antwort auf Beitrag Nr.: 31.673.287 von Quarcs am 20.09.07 12:42:53

Edel sei der Mensch, hilfreich und gut. Die Distel im Maul ist des Esels Markenzeichen. - Wir fahren weiter im löblichen Werke.

[Radumanz]

Antwort auf Beitrag Nr.: 31.666.782 von derhollaender am 19.09.07 20:25:54

Mattil und Partner kümmern sich sehr um Betrugsfälle. Nur zur Orientierung!

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.703.752 von Radumanz am 23.09.07 11:36:29

Hilfe! Jetzt dreht er wieder durch.

[derhollaender]

Antwort auf Beitrag Nr.: 31.718.396 von kaubeuhut am 24.09.07 10:53:06

Meine Herren, es geht schon wieder los mit Euch. Würde mich mal interessieren wer ihr seit und was ihr für Probleme habt. Yielleicht sollten wir uns mal im besagten Venlo treffen aber dann im coffeeshop oder bruin cafe, damit wir zu einer konstruktiven Zusammenarbeit kommen.

[Radumanz]

Und - wen würden wir da treffen? Im Kaffee. Bitte mit Namen, Vornamen und Firma

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.746.455 von Radumanz am 26.09.07 11:17:01

Dir sollte doch wohl klar sein, dass ein "Coffeeshop" in den Niederlanden nicht das ist, was in Wien ein Kaffeehaus ist.

[derhollaender]

Antwort auf Beitrag Nr.: 31.749.928 von kaubeuhut am 26.09.07 15:33:45

Eben, nach dem 2ten Stückchen space cake würd das bestimmt ganz lustig werden mit unseren sehr unterschiedlichen Schwächen und Stärken

[derhollaender]

Antwort auf Beitrag Nr.: 31.753.676 von derhollaender am 26.09.07 19:24:11

Radumanz,

Mein Vornahme ist Willem und ich arbeite für die Firma Philips Electronics die Fernseher, Radios, Röntgengeräte, Halogenlampen usw. produziert und seit mehr als 100 Jahre existiert. Wir kennen uns bestimmt noch nicht und ich war auch noch nie in mein Leben in Venlo und will dir auch bestimmt nichts schlechtes. Hab aber immer noch nicht verstanden wie Du betrogen worden bist mit Proteo und was der Kaubeuhut oder irgend eine andere Person, da für eine Rolle spielt. Letzendlich ist doch jeder selbst verantwortlich für die Entscheidungen die er trifft und die Proteo Gesellschafter sind doch wohl nicht die Schurken oder?

gruß und schönes Wochend

Holländer

[Radumanz]

Antwort auf Beitrag Nr.: 31.782.334 von derhollaender am 28.09.07 20:32:35

Es gibt nichts Dümmeres, als sich selbst zu wiederholen. Ausserdem habe ich nicht die Absicht, andere zu erleuchten, es genügt, dass ich selber Lehren zu ziehen hatte. Lies den ganzen Thread 'Eine seltsame Firma', oder noch gescheiter: lass es, und nütze die Zeit um ein bisschen zu zocken; so zwischen --.30 und --.40 lässt sich immer was Kleines verdienen, mehr liegt nicht drinn.

[derhollaender]

Antwort auf Beitrag Nr.: 31.784.879 von Radumanz am 29.09.07 11:43:40

Du hast wahrscheinlich Recht. Im generellen sind Biotechaktien mir viel zu undurchsichtig, das ist meine Lehre bis jetzt, moderne Alchemie ist vielleicht die beste Zusammenfassung.
Lass Dir von keinem mehr was anquatschen, bild dir deine Meinung nie einseitig!

Gruß und schönes Wochenend

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[derhollaender]

Interessant

Ich hab ein Schuhkarton Größe 45 mit Proteo Aktien ist aber auch nicht so toll.

Das Proteo Produkt Elafin ist aus meiner Sicht hervoragend, scheint aber kein Schwein zu interessieren, heute mit weniger als 1000 Euro Umsatz and den internationalen Börsen steigt der Kurs > 10 %

Wie gesagt Biotech ist gleich Alchemie und sogar wenn da Produkte bei rum kommen die Nobel Preis verdächtig sind gibt es kein Investor den es interessiert, die sind alle im Dax und seine internationale Equivalente oder Emerging Markets

[Radumanz]

Antwort auf Beitrag Nr.: 31.809.884 von derhollaender am 01.10.07 20:34:18

Recht hast Du. Leider lohnt sich Proteo nicht einmal zum Zocken, denn da wurde selbst das Stroh schon gedroschen.

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Radumanz]

Und ich grüsse gar nicht!

[Radumanz]

Antwort auf Beitrag Nr.: 31.828.395 von Radumanz am 03.10.07 11:27:16

... und ausserdem wollten wir ja sachlich bleiben! Darum grüsse ich erst recht nicht!

[kaubeuhut]

Hat jemand mal was von der Kanzlei Mattil & Konsorten gehört? Es soll dort wohl heftig knirschen.

[derhollaender]

Antwort auf Beitrag Nr.: 31.828.984 von kaubeuhut am 03.10.07 12:02:20

Die Kanzlei Mattil arbeitet oder hat gearbeitet an den Betrug mittels
Sangui Aktien pusherei durch die Firma Euro-American Beteiligungsvermittlungsgesellschaft mbH, die im Februar 2001 in Euro-American Wertpapierhandelsgesellschaft mbH umfirmierte.
Aber das ist dir bestimmt nicht neu, oder?

Mittlerweile hab ich auch verstanden das diese dubiöse Wertpapiergesellschaft auch Proteo gegründet haben soll, was mir ein Rätsel ist denn der Wirkstoff von Proteo ist ja auf Effektivität nachgewiesen und Schleswig Holstein wird ja keine Bauernfängerbande subventionieren, vielleicht bin ich aber auch noch zu naiv.
Meinst Du jetzt das es bei Mattil knirscht in Zusammenhang mit Proteo sehr aktuell?

Gruß

Holländer

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[derhollaender]

Kaubeuhut, ich lass mich gerne belehren, also erzähl ruhig ein bischen mehr.

Was passiert denn jetzt auf einmal mit dem Kurs? Ich hat mich schon darauf eingestellt das ich mein Geld für Proteo im Sand gesetzt hatte, aber auch da schein ich naiv zu sein.

Gruß

Holländer

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[derhollaender]

Antwort auf Beitrag Nr.: 31.833.047 von kaubeuhut am 03.10.07 17:58:07

Ich hab das Wort Swackel nich im Wörterbuch gefunden, Kaubeuhut, weder im deutschen, englischen noch französischem.
Auf diese offene Stelle in der Forensik bei Mattil werde ich mich dann vorerst mal nicht bewerben.

Soll ich jetzt auch Sangui kaufen? (ersthafte Frage)

Ich hab das Gefühl das vorerst Du und der Radumanz keine gute Kumpels werden, wie es aus sieht. habe aber gar nicht den Eindruck das der Radumanz ein schlimmer ist, eher laufen eure Kommunikationsebenen planparallel zu einander.

Gruß an Allen

Holländer

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.833.292 von derhollaender am 03.10.07 18:17:07

Sangui würde ich jetzt kaufen. Ist superbillig. War ja in diesem Jahr schon einmal bei 0,54. Es soll sensationelle Ergebnisses aus Mexiko geben, - habe ich jedenfalls läuten gehört. Wolli hat da für ein paar Pesos die Leute buchstäblich zusammengeflickt.

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[derhollaender]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[derhollaender]

Antwort auf Beitrag Nr.: 31.841.335 von derhollaender am 04.10.07 13:36:06

sangui ist billig, da hast Du recht, aber je mehr ich darueber lese umso mehr wird mir klar das die bald noch viel billiger sein wird
Versprech mir doch wieder einiges von Proteo, die komische Zacken nach oben aus heiterem Himmel deuten auf was positives IMHO

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.855.317 von derhollaender am 05.10.07 14:34:18

Das Sangui bald noch "viel billiger" sein wird, galube ich nicht. Es gibt nämlich sensationelle Ergebnisse in Mexiko, wie ich habe läuten hören.

[Radumanz]

Antwort auf Beitrag Nr.: 31.832.423 von derhollaender am 03.10.07 17:07:44

Da war doch noch die Frage nach Mattil und Partner. Vielleicht hast Du ja auch schon selbst nachgeschaut - die nachstehenden Referenzen werden aufgrund realistischer Kriterien vergeben:


Ranking/Referenzen

In den Juve-Handbüchern 2005/2006 und 2006/2007 ist die Kanzlei Mattil & Kollegen als häufig empfohlene Kanzlei für Kapitalanlegerschutz erwähnt und u. a. wie folgt beschrieben:

"Sehr gut qualifiziert"

"besondere Stärken: Betrugssachen mit Auslandsbezug"

"juristisch gut und auch gut in der Recherche"

"sehr engagiert und rechtlich versiert"

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.869.183 von Radumanz am 06.10.07 17:22:58

Das mag ja durchaus mal so gewesen sein. Wie gesagt "gewesen". Damit ist jetzt Schluß. Mit dem Drohnendasein ebenfalls. Der rechtliche Sachverhalt ist längst klar, der Rest ist eigentlich nur noch Routine.
Mal sehen, wie weit deren Haftpflichtversicherung noch reicht.

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.880.043 von kaubeuhut am 07.10.07 10:19:39

Ja, ja. Es geht dem Ende zu. Erst langsam, aber sicher; am Schluss geht dann alles ganz schnell.

[derhollaender]

Meinst Du die positive Tendenzen (Zucken nach Oben) des Proteo Aktienkurses in den letzten Tage, hat ein Zusammenhang damit?

[kaubeuhut]

Antwort auf Beitrag Nr.: 31.905.189 von derhollaender am 09.10.07 02:09:48

Mein Beitrag bzw. meine Aussage bezog sich auf die Kanzlei Mattil & Kollegen, München.

[derhollaender]

Antwort auf Beitrag Nr.: 31.908.811 von kaubeuhut am 09.10.07 12:37:24

Hatte ich auch so verstanden, aber trotzdem gedacht das dies foerderlich fuer Sangui und Proteo Kurs sein koennte, da bestimmte Kreise jetzt wieder sich trauen diese Aktien zu kaufen.

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Zusätzlich: Text in einer Fremdsprache

[Held2006]

Antwort auf Beitrag Nr.: 31.204.043 von Radumanz am 17.08.07 14:36:49

ich Danke Dir für Deine Analyse.

Ein Bekannter meinte, dass ich sofort Proteo kaufen müsse, denn die Aktie werde sich sensationell entwickeln.

Vielleicht hat er Recht, aber Du hast mich vor diesen Small caps gewart. Dank Dir.

Gruss und schöne Festtage

[kaubeuhut]

Antwort auf Beitrag Nr.: 32.811.805 von Held2006 am 19.12.07 10:17:07

Seit wann ist Radumanz dazu in der Lage "Analysen" zu erstellen?

[Maettel]

Antwort auf Beitrag Nr.: 32.816.276 von kaubeuhut am 19.12.07 16:28:49

Es braucht keine Analysen, das auf und ab der Proteo-Aktie reicht doch schon aus, das man hier nicht Investieren kann...

Schöne Festtage

[Held2006]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[kaubeuhut]

Antwort auf Beitrag Nr.: 32.826.350 von Held2006 am 20.12.07 14:34:55

Du gibst ja deine Steuererklärung weder fristgerecht ab, noch zahlst du pünktlich. Wieso solltest du also Rabatt bekommen?

[Held2006]

Antwort auf Beitrag Nr.: 32.830.330 von kaubeuhut am 20.12.07 19:25:25

[derhollaender]

Antwort auf Beitrag Nr.: 32.836.313 von Held2006 am 21.12.07 11:41:59

Held

Erklär uns mal warum Proteo plötzlich Aktien ausgeben kann und was Dir bewegt uns darüber zu informieren.

MfGrüßen

Holländer

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beleidigung

[derhollaender]

Bei dem Volumen ist die Kursschwankung ja nicht verwunderlich. Mysteriös ist immer noch was manche bewegt zu kaufen ohne neue Nachricht.
Kaubeuhut, beobachte jetzt Eure Sangui seit längerem, interessant ist die Varietät und Komplexität der Threaduserpsychologie, muß ich schon sagen.
Wenn der Kurs auf 10 cent ist leg ich mir auch ein paar zu.

[Radumanz]

htztebbfg ddfgge rakfu
blubbbubbbwerzifiaz
hklwopeprtzusdif

gjfkllfl
llalal

Alles klar?

[Radumanz]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Radumanz]

Antwort auf Beitrag Nr.: 32.900.078 von Radumanz am 30.12.07 14:08:45

Helden finden selten Beachtung, ausser wenn sie sterben. Gehen sie an einem Wertpapier zugrunde, kräht kein Hahn danach. Recht hat der Held, wenn er nichts kauft. Meine Devise: kaufe nichts, zahle morgen (auch nichts). ÜBRIGENS: MATTIL UND KOLLEGEN GEHT ES IMMER NOCH BESTENS!

[derhollaender]

Antwort auf Beitrag Nr.: 32.901.009 von Radumanz am 30.12.07 17:33:01

Dichter und Denker Radumanz

Bitte berate uns mal was sollen wir machen mit unser schwerverdientes Geld, bestimmete Aktien, Sparbuch, Immobilien oder alles schnellstmöglich konsumieren?

Mit freundlichen Grüßen

Holländer

[Radumanz]

Antwort auf Beitrag Nr.: 32.901.746 von derhollaender am 30.12.07 20:23:23

Iss Dein Geld. Und wohl bekomms! Oder erfinde eine wunderbare Geldvermehrung. Du bist dafür im richtigen Umfeld. Nur nichts kaufen ist billiger! Und keinesfalls denken - das macht Kopfschmerzen

Auf ein gutes Neues!
Radumanz

[derhollaender]

Antwort auf Beitrag Nr.: 32.904.288 von Radumanz am 31.12.07 13:12:25

Leider ist Geld nicht essbar, schön wär es, das wäre die ultimative Währung, noch besser als der Goldstandard.


Hab gerade doch mal nachgedacht und entschieden das nächstes Jahr auch ein gutes wird.

Auf ein gutes Neues mit Gesundheit und Zufriedenheit!

[Held2006]

Prost Neujahr

Das fämgt gut an, und ich dachte, dass die nicht mehr unter 0,50 geht

heute: 0,480 / 0,440

Ist eben nur ein Zockerpapier.

[Radumanz]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Held2006]

du sprichst in Rätseln

[kaubeuhut]

Antwort auf Beitrag Nr.: 33.104.745 von Held2006 am 19.01.08 14:55:26

Ich meinte den hohen Herrn "Radumanz".

[Held2006]

so, ab heut bin ich auch Aktionär

habe 100 Stück a 0,57 Euro von meinem Freund gekauft.

wiil sie bald wieder für 1 Euro verkaufen, dann hätte ich 43 Euro verdient.

Das würde mich sehr freune.

Kauf alles feste, dass der Kurs anzieht.

Es reichen ein paar Leute mit je 500 Aktien.

Gruss anti held

[kaubeuhut]

DGAP-News: Proteo Inc./Proteo Biotech AG: Präklinische Studien zum Lungenhochdruck - Proteo kooperiert mit der Universität Stanford, USA

Proteo Biotech AG / Kooperation

25.01.2008

Veröffentlichung einer Corporate News, übermittelt durch die DGAP - ein Unternehmen der EquityStory AG. Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich. ---------------------------------------------------------------------------

Irvine, CA - Kiel, 25.01.2008 - Die Proteo, Inc. (OTCBB: PTEO; Frankfurter Freiverkehr: WKN: 925981) und ihre 100-prozentige Tochtergesellschaft Proteo Biotech AG gaben heute eine Zusammenarbeit mit der Universität Stanford bekannt.

Das Kieler Unternehmen schloss einen Vertrag mit Prof. Marlene Rabinovitch, Forschungsdirektorin des Vera Multon Wall Zentrums für Lungengefäßerkrankungen der Universität Stanford. Als Mitglied des wissenschaftlichen Beirats der Primary Pulmonary Hypertension Association und Autorin zahlreicher international publizierter Veröffentlichungen über pulmonalen arteriellen Hochdruck (PAH) gehört sie zu den weltweit wichtigsten Experten für diese Erkrankung.

Es wurde vereinbart, dass in Stanford präklinische Studien zum Lungenhochdruck durchgeführt werden sollen, die wichtige Daten und Erkenntnisse zum Wirkmechanismus von Elafin bei dieser Erkrankung liefern werden. Trotz einiger Fortschritte in der Behandlung des pulmonalen Hochdrucks verläuft diese Erkrankung, die vornehmlich junge Frauen betrifft, immer noch innerhalb weniger Jahre tödlich. Birge Bargmann, Vorstand der Proteo Biotech AG: » Wie freuen uns, dass wir mit Marlene Rabinovitch eine so erfahrene Partnerin gewinnen konnten, um eine solide Grundlage für die weitere Entwicklung von Elafin zur Behandlung von PAH zu erhalten. « Die Zusammenarbeit mit der Universität Stanford sei besonders zu begrüßen, da dort sehr gut etablierte Modelle für PAH vorliegen. Marlene Rabinovitch und ihr Team verfügen darüber hinaus bereits über langjährige Erfahrung mit Elastase-Inhibitoren wie Elafin.

Prof. Marlene Rabinovitch: » Ich habe mich sehr darüber gefreut, dass Elafin den Orphan Drug Status zur Behandlung des pulmonalen Hochdrucks in Europa erhalten hat. Wir werden in unseren Labors zusätzliche präklinische Studien durchführen, um die weitere Arzneimittelentwicklung zu unterstützen. «

» Der Wirkungsmechanismus von Elafin ist völlig anders als der aller bislang existierenden Arzneimittel für PAH. Wir hoffen, dass eine Elafinbehandlung nicht nur zu einer zeitweiligen Verbesserung der Symptome führt sondern auch zu einer Rückbildung der Erkrankung «, erklärt Professor Oliver Wiedow, Chairman Proteo, Inc..

Über Elafin Elafin ist ein Eiweiß, das natürlicherweise in Haut, Lunge und Brustdrüse gebildet wird und die Gewebe, in denen es vorhanden ist, vor Zerstörung durch das Immunsystem schützt. Die Eigenschaft von Elafin, die an Entzündungsreaktionen beteiligten Enzyme zu blockieren, macht es zu einem sehr Erfolg versprechenden Wirkstoff für die Behandlung von entzündlichen Lungenerkrankungen oder schweren Reperfusionsschäden - etwa nach Herzinfarkt, Unfallverletzungen oder Organtransplantationen. In einer klinischen Phase I Studie konnte die sehr gute Verträglichkeit von Elafin bereits gezeigt werden. Die Proteo Biotech AG hat im Frühjahr 2007 auf Empfehlung der europäischen Arzneimittelagentur EMEA von der EU-Kommission den Orphan-Drug-Status für ihren klinischen Wirkstoffkandidaten Elafin für das Anwendungsgebiet »Behandlung der pulmonalen arteriellen Hypertonie (PAH) und der chronisch thromboembolischen pulmonalen Hypertonie« erhalten. Dieser sichert dem Unternehmen das exklusive Vermarktungsrecht innerhalb der europäischen Union für die Dauer von bis zu zehn Jahren nach Erhalt der Zulassung.

Über Proteo Die Proteo Biotech AG mit Sitz in Kiel wurde im April 2000 gegründet und im selben Jahr von der US-amerikanischen Muttergesellschaft Proteo Inc. übernommen. Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte für rekombinantes menschliches Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung (www.proteo.de).

Zukunftsgerichtete Aussagen Diese Presseinformation enthält bestimmte in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieser Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technischen Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen Pläne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-KSB und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.

Kontakt: Dr. Barbara Kahlke Proteo Biotech AG Am Kiel-Kanal 44 D-24106 Kiel Email : [e-mail] Telefon: [phone] Fax : [phone]

[Maettel]

Antwort auf Beitrag Nr.: 33.169.220 von Held2006 am 25.01.08 15:09:15

Bitte sage mir welche Bank keine Spesen verlangt?

Di grefst ja richtig in die Tasche... Mann 57 Euro investiert...

[Held2006]

heute würde ich noch 49 Euro bezahlen.

Buchverlust schon 8 euro,

und wenn ich sie an der börse verkaufe nur noch 41 Euro.

So schnell sind 16 Euro futsch, da sind ja über 28 prozent Verlust in 3 tagen.

Ich glaub Börse ist wie Casino.

[Vale46]

Bin ja mal auf das nächste News-Update im Februar 08 gespannt!
Sollte etwas Vernünftiges über die Ticker laufen, dann fliegt der Deckel weg!!!

[Vale46]

Antwort auf Beitrag Nr.: 33.192.899 von Vale46 am 28.01.08 18:08:15

Ich kann nur jedem Anleger empfehlen, sich intensiv mit dem Unternehmen und den Produkten zu beschäftigen. Wenn die Zulassung kommt, dann gibt es für den Kurs kein halten mehr!!

[derhollaender]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Vale46]

Antwort auf Beitrag Nr.: 33.246.628 von derhollaender am 02.02.08 10:01:47

Meine Damen und Herren,

ich denke, dass endlich Leben in die Bude kommt!!!!
Wie weit wird es wohl gehen....?

[Maettel]

10.36 USD wäre das versprochene Ziel...

[Vale46]

Antwort auf Beitrag Nr.: 33.555.584 von Maettel am 05.03.08 12:52:48

Haben wir einen Clown gefrühstückt...???

[Held2006]

Klingelingeling

Bitte jetzt kaufen, Proteo noch unter + Euro.
Aber nicht mehr lange.

An der Börse wird normalerweise nicht geklingelt, aber Proteo wird Euch Freude machen auf Sicht 24 -36 Monate

[Maettel]

Sehe 1.95 USD..
Na was kommt den da... vieleicht 10.34 USD.. ??
Oder ordentliche New's?

[SFJL]

Antwort auf Beitrag Nr.: 33.757.369 von Maettel am 29.03.08 12:06:34

http://66.201.236.134/export/level2.jsp?symbol=pteo

[derhollaender]

Antwort auf Beitrag Nr.: 33.758.995 von SFJL am 29.03.08 20:28:00

Und die 2 aktien bei 10,3 USD, das sind die zwei vom Radumanz

Hoffe das sich das dream team Radumanz und Kaubeuhut bald wieder meldet hier, damit wir wissen was Sache ist.

[kaubeuhut]

Antwort auf Beitrag Nr.: 33.759.016 von derhollaender am 29.03.08 20:43:05

"Radumanz" sitzt in der Ecke und schmollt. Der große Volksaufklärer. Der Oberschlaumeister. Der ewige Besserwisser.

[Vale46]

Antwort auf Beitrag Nr.: 33.759.587 von kaubeuhut am 30.03.08 03:47:13

So ein Verdoppler ist schon sportlich... :-)))

[Maettel]

Haufe schnell 998 Stk. in Frankfurt und verkaufe diese wieder an der Xetra... Gruss an Kaube.....

[kaubeuhut]

Antwort auf Beitrag Nr.: 33.790.032 von Maettel am 02.04.08 16:18:13

Ich hab schon gehauft.

[kaubeuhut]

Antwort auf Beitrag Nr.: 33.790.032 von Maettel am 02.04.08 16:18:13

Wollte gestern haufen. Ging aber nicht.

Grüsse
kaubeuhut

[kaubeuhut]

COMPANY DATA:
COMPANY CONFORMED NAME: PROTEO INC
CENTRAL INDEX KEY: 0001063104
STANDARD INDUSTRIAL CLASSIFICATION: [9995]
IRS NUMBER: 880292249
STATE OF INCORPORATION: NV
FISCAL YEAR END: 1231

FILING VALUES:
FORM TYPE: 10KSB
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-30728
FILM NUMBER: 08754149

BUSINESS ADDRESS:
STREET 1: 2102 BUSINESS CENTER DRIVE
CITY: IRVINE
STATE: CA
ZIP: 92612
BUSINESS PHONE: [phone]

MAIL ADDRESS:
STREET 1: 2102 BUSINESS CENTER DRIVE
CITY: IRVINE
STATE: CA
ZIP: 92612

FORMER COMPANY:
FORMER CONFORMED NAME: TRIVANTAGE GROUP INC
DATE OF NAME CHANGE: 20010727

FORMER COMPANY:
FORMER CONFORMED NAME: PAGE ACTIVE HOLDINGS INC /
DATE OF NAME CHANGE: 19991026

FORMER COMPANY:
FORMER CONFORMED NAME: AMERICAN FLINTLOCK CO
DATE OF NAME CHANGE: 19980602
</SEC-HEADER>
<DOCUMENT>
<TYPE>10KSB
<SEQUENCE>1
<FILENAME>proteo_10ksb-123107.txt
<TEXT>
<PAGE>


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

FORM 10-KSB

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended DECEMBER 31, 2007

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: 000-30728

PROTEO, INC.
(Name of Small Business Issuer in Its Charter)

NEVADA 88-0292249
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

2102 BUSINESS CENTER DRIVE, IRVINE, CA 92612
(Address of principal executive offices) (Zip Code)

[phone]
(Issuer's telephone number, including area code)

NONE
(Former name, former address and former fiscal year, if
changed since last report)

Securities registered under Section 12(b) of the Act:

Title of each class Name of each exchange on which registered
- ------------------------------ --------------------------------------------
None None

Securities registered under Section 12(g) of the Act:
Common Stock, par value $0.001

Check whether the issuer is not required to file reports pursuant to Section 13
or 15(d) of the Exchange Act. [ ]

Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [X]

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 issuer's revenues for its most recent fiscal year. $ -0-

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates computed by reference to the price at which the common equity
was sold, or the average bid and asked price of such common equity as of a
specified date within the past 60 days (based upon 10,949,350 shares held by
non-affiliates and the closing price of $1.07 per share for the common stock on
the over-the counter market as of April 7, 2008): approximately $11,715,804.00.

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 23,879,350 at April 7, 2008.

DOCUMENTS INCORPORATED BY REFERENCE

None.

TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE): YES [ ] NO [X]




<PAGE>

PROTEO, INC.
ANNUAL REPORT ON FORM 10-KSB
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007

TABLE OF CONTENTS

PART I
Item 1. Description of Business
Item 2. Description of Property
Item 3. Legal Proceedings
Item 4. Submission of Matters to a Vote of Security Holders

PART II
Item 5. Market for Common Equity and Related Stockholder Matters and
Purchaser of Equity Securities
Item 6. Management's Discussion and Analysis or Plan of Operation
Item 7 Financial Statements
Item 8. Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure
Item 8A (T) Controls and Procedures
Item 8B Other Information

PART III
Item 9. Directors, Executive Officers, Promoters, Control Persons and
Corporate Governance; Compliance With Section 16(a) of the
Exchange Act
Item 10. Executive Compensation
Item 11. Security Ownership of Certain Beneficial Owners
and Management and Related Stockholder Matters
Item 12. Certain Relationships and Related Transactions, and Director
Independence
Item 13. Exhibits
Item 14. Principal Accountant Fees and Services

Signatures


i



<PAGE>

PART I

This Annual Report includes forward-looking statements within the meaning of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such
statements are based on management's beliefs and assumptions, and on information
currently available to management. Forward-looking statements include the
information concerning possible or assumed future results of operations of the
Company set forth under the heading "Management's Discussion and Analysis or
Plan of Operations." Forward-looking statements also include statements in which
words such as "expect," "anticipate," "intend," "plan," "believe," "estimate,"
"consider" or similar expressions are used.

Forward-looking statements are not guarantees of future performance. They
involve risks, uncertainties and assumptions. The Company's future results and
shareholder values may differ materially from those expressed in these
forward-looking statements. Readers are cautioned not to put undue reliance on
any forward-looking statements.

ITEM 1 - DESCRIPTION OF BUSINESS

COMPANY OVERVIEW- HISTORY

Proteo, Inc. is a Nevada corporation formed on December 18, 1992. Proteo, Inc.
has one wholly owned subsidiary, Proteo Biotech AG ("PBAG"), a German
corporation (Proteo, Inc. and PBAG are hereinafter collectively referred to as
the "Company" and "Proteo"). The Company's common stock is currently quoted on
the Over-The-Counter Bulletin Board ("OTCBB") under the symbol "PTEO.OB".
Effective December 31, 2004, the Company's other wholly owned subsidiary, Proteo
Marketing, Inc. ("PMI") was merged into the Company.

PMI was incorporated in the State of Nevada and began operations on November 22,
2000. In December 2000, PMI entered into a reorganization and stock exchange
agreement with PBAG, and as a result, PBAG became a wholly owned subsidiary of
PMI.

During 2001, PMI entered into a Shell Acquisition Agreement (the "Acquisition
Agreement") with Trivantage Group, Inc. ("Trivantage"), a public "shell"
company, in a transaction accounted for as a reverse merger. In accordance with
the Acquisition Agreement, PMI first acquired 176,660,280 shares (1,313,922
post-reverse split shares, as described below) of Trivantage's common stock
representing 90% of the issued and outstanding common stock of Trivantage, in
exchange for a cash payment of $500,000 to the sole shareholder of Trivantage.
Secondly, Trivantage completed a one for one-hundred-fifty reverse stock split.
Finally, effective April 25, 2002, the shareholders of PMI exchanged their
shares of PMI for an aggregate of 20,286,512 shares of Trivantage to effect a
reverse merger between PMI and Trivantage. Subsequently, Trivantage changed its
name to Proteo, Inc.

DESCRIPTION OF BUSINESS

The Company seeks to identify potential drug candidates in the field of
inflammation. The Company's focus is on natural occurring compounds which have
proven superior biologic activity over almost all known compounds. The focus on
natural occurring compounds is driven by the assumption that these compounds
will have fewer side effects regarding metabolism and excretion. Whenever
possible, human peptides and proteins, which have no allergenic potential, will
be used.

The Company intends to develop, manufacture, promote, and market pharmaceuticals
and other biotech products. However, we do not believe that any of our planned
products will produce sufficient revenues in the next four years to support us
financially. We currently expect to sell only small quantities of these products
in the next few business years. As a result, we intend to identify and develop
other potential products. To achieve profitable operations, the Company,
independently or in collaboration with others, must successfully identify,
develop, manufacture, and market proprietary products. The products and
technologies we intend to develop will require significant commitments of
personnel and financial resources.

Our business strategy is focused on the development of pharmaceuticals based on
the body's own tools and weapons to fight inflammatory diseases. Specifically,
we are focusing our research on the development of drugs based on the human
protein Elafin. We strongly believe that Elafin will be useful in the treatment
of cardiac infarction, serious injuries caused by accidents, post-surgery damage
to tissue, and complications resulting from organ transplantation as well as
other diseases.

1


<PAGE>

Elafin is a human protein that naturally occurs in human skin, lungs and the
mammary gland. Elafin is an elastase inhibitor which inhibits the activity of
two enzymes, elastase and proteinase 3. Both of these enzymes are known to be
involved in the breakdown of tissue in various inflammatory diseases. Elafin has
proven in animal tests, that it protects tissue against destruction by these
enzymes. We intend to utilize Elafin as a drug in the treatment of various
diseases and injuries.

We believe a major indication for Elafin is as a drug in the treatment of
cardiac infarction. Cardiac infarction appears as a result of deficiencies in
the blood supply of heart muscles caused by damage to the supplying coronary
vessels. As an immediate result, the heart weakens and the heart muscles are
destroyed. Damage to tissue caused by cardiac infarction will slowly form scars.
Current methods of treatment are aimed at restoring the blood supply to the
heart, either by replacement with new blood vessels (bypass surgery) or by
removal of blood-clots in the coronary vessels (lyse therapy). Animal
experiments have shown that Elafin may be effective in protecting the heart
muscles against destruction after blood supply was interrupted.

Elafin may also be useful in the treatment of the seriously injured. Similar to
damage of heart muscles as described above, much of the damage caused by serious
injuries appear after the injury causing event (e.g.: traffic accidents). In
emergency treatment following accidents, the blood supply, nerve fibers and the
stability of bones and joints are given priority. Due to blood supply
deficiencies, inflammation will occur in injured muscles and in injured vessels.
Because muscles may be destroyed by the inflammation, limbs may have to be
amputated despite successful surgeries. Elafin may protect muscles against
damage caused by inflammation. In animal experiments, rat legs treated with
Elafin remained almost unaffected, although the blood supply of the leg was cut
off for six hours.

Elafin may also be used in the course of heart transplantation. To transplant
hearts successfully, simultaneous treatment with anti-inflammatory drugs is
necessary. Inflammations of transplanted organs are mainly caused either by
rejection of the organ by the immune system or by blood supply deficiencies
during the transplantation. Although various drugs are used today to avoid the
rejection of the organ, such rejections still occur quite often. Therefore,
additional anti-inflammatory drugs are needed, which may potentially prevent
damage caused by blood supply deficiencies. Tests carried out on rabbits at the
University of Toronto have demonstrated the effectiveness of an infusion with
Elafin after a heart transplant. In cases where Elafin was not administered, a
substantial thickening of the coronary vessel walls occurred due to temporary
circulation reduction. Thus, frequently the heart was not sufficiently supplied
with blood. Inflammation and destruction of the heart musculature, which was
partly replaced by functionless scar tissue, was the result. Treatment with
Elafin has been shown to reduce such damage to a minimal level.

Other preliminary data indicate that Elafin may be useful in a broad range of
other applications whether pharmaceutical or not. Therefore, we will attempt to
encourage other scientists, research centers as well as other companies to do
research and development on Elafin for applications other than those described
above. For example, Elafin may also be effective in the treatment of lung
diseases and defects, dermatological diseases and defects, or as an ingredient
to coat medical devices, such as stents, or in cosmetics.

Proteo owns licenses to exclusively develop products based on patents and
filings relating to Elafin, including fourteen issued patents. Of these issued
patents, three were issued in the U.S.

Further, Proteo intends to engage in the research and development of other drugs
and biotechnical products based on natural proteins. We may also be able to
implement unique technologies and biotechnological production procedures that
may enable the Company to offer related services to other companies. Additional
research and development has already begun in the areas of Leech-derived
Tryptase Inhibitors (LDTI), and Bis-acyl ureas. LDTI has been successfully
expressed in yeast, and is an inhibitor of human mast cell tryptase. LDTI
inhibits tryptase-induced human fibroblast proliferation. LDTI may be a drug
candidate for the treatment of keloid formation, scleroderma and asthma.

2


<PAGE>

Bis-acyl ureas have been identified as a relevant compound in yeasts able to
induce inflammation. It activates human neutrophils in vitro and may be a
potential candidate for immune system stimulation. Methods for isolation of
bis-acyl urea from yeasts as well as synthetic production have been established.
Bis-acyl ureas and LDTIs are in the early pre-clinical stage.

Proteo works closely with the interdisciplinary research unit at the University
of Kiel in the identification of drug targets for the prevention and treatment
of infections.

In 2001 we received a grant from the German State of Schleswig-Holstein in the
approximate amount of 790,000 Euros for the research and pre-clinical
development of our pharmaceuticals based on the human protein Elafin. The grant,
as amended, covered the period from February 1, 2001 to March 31, 2004 if
certain milestones were reached by November 15 of each year, with a possible
extension as defined in the agreement. The grant required that we prove our
economic ability to otherwise finance at least 52% of the projected costs on our
own.

In May 2004 we received another grant from the German State of
Schleswig-Holstein in the approximate amount of 760,000 Euros for further
research and development of our pharmaceutical product Elafin. The 2004 grant
covered the period from April 1, 2004 to March 31, 2007 if certain milestones
were reached by September 30 of each year. The 2004 grant was extended through
December 31, 2007. The 2004 grant covered 49.74% of eligible research and
development costs and was subject to our ability to otherwise finance the
remaining 50.26% of the costs. An additional condition of the grant was that the
product had to be developed and subsequently produced in the German State of
Schleswig-Holstein.

On November 15, 2004, we entered into an exclusive worldwide license and
collaboration agreement with ARTES Biotechnology GmbH ("ARTES"). This license
agreement enables us to economically produce Elafin on a large scale by using
the sublicensed yeast HANSENULA POLYMORPHA as a high performance expression
system. Rhein Biotech GmbH ("Rhein") has licensed the yeast to ARTES, who
in-turn sublicensed it to us. The agreement has a term of 15 years with an
annual license fee of 10,000 Euros or 2.5% royalties on the future sales of
Elafin, if greater. Should the license agreement between Rhein and ARTES
terminate, Rhein will assume the sublicense agreement with the Company under
similar terms.

After developing a production procedure for Elafin, Proteo has initiated
clinical trials to achieve governmental approval for the use of Elafin as a drug
in Europe. For this purpose, Proteo has contracted Eurogentec, an experienced
Contract Manufacturing Organization (CMO) located in Belgium to produce Elafin
in accordance with GMP (good manufacturing practices) standards as required for
clinical trials.

In December 2005, Proteo successfully completed a first Phase I trial for
Elafin. Elafin was tested on 32 healthy male volunteers in a
single-ascending-dose, double blind, randomized, placebo-controlled trial to
evaluate its tolerability and safety at the Institut fur Klinische Pharmakologie
in Kiel, Germany. All intravenously applied doses were well tolerated. No severe
adverse events occurred.

In 2006, the Company gathered and evaluated additional data from the results of
the Phase I study. In addition, during 2006, we established a procedure to
incorporate Elafin as an active ingredient in cream.

In September 2006, Windhover Information, Inc., an established provider of
business information for decision makers in the biotechnology and pharmaceutical
industries, chose the Company's Elafin project as one of the top 10 most
interesting cardiovascular projects. We presented the Elafin project at the
"Windhover's Therapeutic Alliances Cardiovascular Conference" in Chicago on
November 16, 2006.

In September 2006 we filed an application with the EMEA (European Medicines
Agency) to obtain orphan drug status in the European markets for Elafin to be
used in the treatment of pulmonary hypertension. Subsequent to December 31,
2006, the Committee for Orphan Medical Products (COMP) of the EMEA issued a
positive opinion recommending the granting of orphan medicinal product
designation for Elafin for treatment of pulmonary arterial hypertension and
chronic thromboembolic pulmonary hypertension. On March 20, 2007 the orphan drug
designation became effective upon adoption of the recommendation by the European
Commission.

3


<PAGE>

In July 2007, we entered into an agreement with the University of Alberta,
Canada to cooperate in research on Elafin for the treatment of pulmonary
diseases in neonates. Animal experiments on newborn rats will be carried out by
Dr. Bernard Thebaud, associate professor at the Department of Pediatrics and
Neonatology.

In August 2007, the Company's subsidiary entered into a license agreement with
Rhein Minapharm ("Mina"), a well established Egyptian pharmaceutical company
based in Cairo, for clinical development, production and marketing of Elafin. We
have granted Mina the right to exclusively market Elafin in Egypt and certain
Middle Eastern and African countries.

In January 2008, we entered into an agreement with Stanford University,
California to cooperate in preclinical studies related to Elafin's treatment of
pulmonary arterial hypertension.

Our goal is to obtain our first governmental regulatory approval for the first
indication of our initial product in 2012. It should be noted that the first
indication, if successfully developed, would have a market potential
substantially smaller than the overall market of Elafin for more widespread
applications such as for the treatment of cardiac infarction.

OUR SUBSIDIARY

PBAG, our operating subsidiary, was formed in Kiel, Germany on April 6, 2000.
PBAG is in the business of developing pharmaceutical products based on the human
protein called Elafin and possible by-products thereof as well as related
technologies. The President and CEO of PBAG is currently Birge Bargmann. The
directors of PBAG are Oliver Wiedow, MD, Barbara Kahlke, PhD and Florian Wegner.
PBAG has five full-time employees and one part-time employee as of December 31,
2007.

To date, the Company has not had profitable operations. Furthermore, we do not
anticipate that we will have profitable operations in the near future.

COLLABORATION WITH OTHER COMPANIES

In an effort to provide the Company with some revenue which will be utilized in
the implementation of our business plan, our Subsidiary periodically may provide
research and development and manufacturing services as a sub-contractor and/or
consultant to unaffiliated companies which do not compete with the Company. We
plan to explore such opportunities if deemed advantageous to the Company.

Further, the Company actively seeks outlicensing partners, co-development
partnerships and other collaborations with third parties to generate revenues
and/or to expedite the Company's product development. However, there can be no
assurance that the Company's efforts to build such alliances will be successful
at any time or in any way.

COMPETITION

The market for our planned products and technologies is highly competitive, and
we expect competition to increase. We compete with many other health care
research product suppliers, most of which are larger than Proteo. Some of our
anticipated competitors offer a broad range of equipment, supplies, products and
technology, including many of the products and technologies contemplated to be
offered by us. To the extent that customers exhibit loyalty to the supplier that
first supplies them with a particular product or technology, our competitors may
have an advantage over us with respect to such products and technologies.
Additionally, many of our competitors have, and will continue to have, greater
research and development, marketing, financial and other resources than us and,
therefore, represent and will continue to represent significant competition in
our anticipated markets. As a result of their size and the breadth of their
product offering, certain of these companies have been and will be able to
establish managed accounts by which, through a combination of direct computer
links and volume discounts, they seek to gain a disproportionate share of orders
for health care products and technologies from prospective customers. Such
managed accounts present significant competitive barriers for us. It is
anticipated that we will benefit from their participation in selected markets,
which, as they expand, may attract the attention of our competitors. The
business of research and development of pharmaceuticals for the treatment of
cardiac infarction is intensely competitive. Major companies with immense
financial and personal resources are also engaged in this field.

4


<PAGE>

Elastase inhibitors such as Elafin, have been under research and development in
the pharmaceutical industry for more than ten years. Currently, there have been
more than 200 related patents granted. Most of these substances are produced
synthetically, and are not applicable in the treatment of cardiac infarctions.
Three other elastase inhibitors, secretory leukoprotease inhibitor (SLPI),
alpha-1-antitrypsin and recombinant monocyte/neutrophil elastase inhibitor
(rM/NEI), are similar to Elafin in that they are of human descent and may be
applied like Elafin principally. From the human protein inter-alpha-trypsin
inhibitor a highly elastase inhibitor, depelestat, has been engineered. Four
other substances, ZD8321, ZD0892, SSR69071 and ONO-5046, are artificial elastase
inhibitors which may have effectiveness comparable to that of Elafin.

SECRETORY LEUKOPROTEASE INHIBITOR (SLPI)

Amgen, Inc. is the owner of the patent for SLPI. Amgen purchased this patent by
acquiring Synergen, Inc. SLPI is quite similar to Elafin. Nevertheless, SLPI has
some disadvantages in its intended application in the treatment of cardiac
infarctions and in the treatment of serious injuries. It is only effective
against one (leukocyte-elastase) of the two (leukocyte-elastase and proteinase
3) major enzymes which destroy tissue, while Elafin has shown effectiveness
against both. Therefore, Elafin is probably more effective. Furthermore, SLPI is
not as stable as Elafin, which is a disadvantage in its distribution as a drug.
SLPI was discovered much earlier than Elafin; therefore, the remaining term of
the covering patent should be shorter than that related to Elafin. Amgen has not
mentioned any further development of SLPI as a drug candidate since its annual
report for 1998.

ALPHA-1-ANTITRYPSIN

Human blood naturally contains relatively large amounts of alpha-1-antitrypsin.
Research into the use of alpha-1-antitrypsin for the treatment of cardiac
infarctions, shock and other serious inflammations has been ongoing for the last
twenty years. Compared to Elafin, however, there are some substantial problems
related to alpha-1-antitrypsin. For example, alpha-1-antitrypsin is not as
stable as Elafin, and therefore, from the scientific point of view it is
probably not as effective as Elafin. Alpha-1-antitrypsin has received approval
for the use as a drug in genetic deficiency of alpha-1-antitrypsin and is
currently produced from pooled human sera. Recombinant production of
alpha-1-antitrypsin has been established by Arriva Pharmaceuticals Inc., and
clinical trials for the use as an aerosol for the treatment of
alpha-1-antitrypsin deficiency have been conducted by Baxter Bioscience.

RECOMBINANT MONOCYTE/NEUTROPHIL ELASTASE INHIBITOR (RM/NEI)

This compound of human descent is currently under development for the treatment
of cystic fibrosis and to be applied by inhalation devices. IVAX Corporation has
entered into a license option agreement with the Center for Blood Research, Inc.
(CBR), an affiliate of the Harvard Medical School, which holds the rights to
this compound.

ONO-5046 (SIVELESTAT)

Ono Pharmaceutical Co. Ltd., in Japan has developed the synthetic elastase
inhibitor ONO-5046 (Sivelestat). Ono received approval in 2002 to use Sivelestat
as a drug for the indication "Amelioration of acute lung disease accompanying
generalized inflammatory syndrome" in Japan and in Korea (Dong-A, Pharmaceutical
Co., Ltd., Seoul) in 2006.

DEPELESTAT

A further elastase inhibitor has been engineered from the Kunitz domain of human
inter-alpha-trypsin inhibitor. This peptide was found to be a potent inhibitor
of human elastase, however, other than in the case of Elafin, it is reported
that no other proteases, including proteinase 3, were inhibited. Currently
Depelestat is being clinically developed by Debiopharm for use as an aerosol in
the treatment of cystic fibrosis.

GOVERNMENT REGULATION

The Company is, and will continue to be, subject to governmental regulation
under the Occupational Safety and Health Act, the Environmental Protection Act,
the Toxic Substances Control Act, and other similar laws of general application,
as to all of which we believe we are in material compliance. Any future change
in, and the cost of compliance with, these laws and regulations could have a
material adverse effect on the business, financial condition, and results of
operation of the Company.

5


<PAGE>

Because of the nature of our operations, the use of hazardous substances, and
our ongoing research and development and manufacturing activities, we are
subject to stringent federal, state and local and foreign laws, rules,
regulations and policies governing the use, generation, manufacturing, storage,
air emission, effluent discharge, handling and disposal of certain materials and
wastes. Although we believe that we are in material compliance with all
applicable governmental and environmental laws, rules, regulations and policies,
there can be no assurance that the business, financial conditions, and results
of operations of the Company will not be materially adversely affected by
current or future environmental laws, rules, regulations and policies, or by
liability occurring because of any past or future releases or discharges of
materials that could be hazardous.

Additionally, the clinical testing, manufacture, promotion and sale of a
significant majority of the products and technologies of the Company, if those
products and technologies are to be offered and sold in the United States, are
subject to extensive regulation by numerous governmental authorities in the
United States, principally the FDA and corresponding state regulatory agencies.
Additionally, to the extent those products and technologies are to be offered
and sold in markets other than the United States, the clinical testing,
manufacture, promotion and sale of those products and technologies will be
subject to similar regulation by corresponding foreign regulatory agencies. In
general, the regulatory framework for biological health care products is more
rigorous than for non-biological health care products. Generally, biological
health care products must be shown to be safe, pure, potent and effective. There
are numerous state and federal statutes and regulations that govern or influence
the testing, manufacture, safety, effectiveness, labeling, storage, record
keeping, approval, advertising, distribution and promotion of biological health
care products. Non-compliance with applicable governmental requirements can
result in, among other things, fines, injunctions, seizures of products, total
or partial suspension of product marketing, failure of the government to grant
pre-market approval, withdrawal of marketing approvals, product recall and
criminal prosecution.

PATENTS, LICENSES & ROYALTIES

The Company owns licenses to exclusively develop products based on patents and
filings including fourteen patents already issued. The issued patents include
three patents which have been issued in the United States of America. The
Company does not have title to any patents; title to the patents rests with Dr.
Wiedow.

Dr. Wiedow will receive three percent of the gross revenues of the Company from
products based on patents of which he was the principal inventor. Further, Dr.
Wiedow will receive license fees in the amount of 110,000 Euros per year for a
period of six years through December 31, 2006, for an aggregate of 660,000
Euros, and refund all expenses to maintain the patents (patent fees, legal fees,
etc.). Such license fees shall be reduced by any other royalties paid to Dr.
Wiedow. As of the date of this annual report, 30,000 Euros (approx. $43,000)
have been paid to Dr. Wiedow, and 630,000 Euros (approx. $928,000) have been
accrued as a liability.

AstraZeneca Inc. (formerly Zeneca Inc., formerly ICI Pharmaceuticals Inc.) had
held the patents for Elafin for several years and has significantly contributed
to the current knowledge. Therefore, AstraZeneca Inc. will receive two percent
of the net sales of the Company from products based on patents in which Dr.
Wiedow was the principal inventor. Proteo holds an exclusive license for the
following patents:

USA US 5464822
USA US 6245739
USA US 6893843
EU EP 0402068
Japan JP 2989853
Australia AU 636148
Canada CA 2018592
Finland FI 902880
Ireland IE 070520
Israel IL 094602
New Zealand NZ 233974
Norway NO 177716
Portugal PT 094326
South Africa ZA 9004461

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<PAGE>

EMPLOYEES

As of December 31, 2007 Proteo had five full-time employees, all working at our
offices in Germany.

ITEM 2 - DESCRIPTION OF PROPERTY

In October 2001, the Company entered into several leases for office and
laboratory facilities in Germany beginning January 2002 and expiring at dates
through December 2011. One lease for office space at Kiel, Germany was canceled
as of October 31, 2005. In June 2004 and in August 2005, we entered into leases
for lab and office space and additional office space, respectively, expiring
through December 2008. Certain leases have a rental adjustment in 2007 based on
the consumer price index. The aggregate monthly rental under the foregoing
leases is approximately $3,500.

ITEM 3 - LEGAL PROCEEDINGS

The Company may from time to time be involved in various claims, lawsuits, and
disputes with third parties, actions involving allegations of discrimination, or
breach of contract actions incidental to the operation of its business. The
Company is not currently involved in any litigation which it believes could have
a materially adverse effect on its financial condition or results of operations.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

PART II

ITEM 5 - MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND PURCHASER
OF EQUITY SECURITIES

Our common stock is quoted on the OTC Bulletin Board under the symbol PTEO.OB.
The table below gives the range of high and low bid prices of our common stock
for the fiscal years ended December 31, 2007 and 2006 based on information
provided by the OTC Bulletin Board. Such over-the-counter market quotations
reflect inter-dealer prices, without mark-up, mark-down or commissions and may
not necessarily represent actual transactions or a liquid trading market.

COMMON STOCK PRICES

YEAR PERIOD HIGH LOW
------- --------
2007 First Quarter $0.71 $0.36
Second Quarter 0.67 0.46
Third Quarter 0.65 0.28
Fourth Quarter 1.01 0.30


2006 First Quarter $1.55 $0.56
Second Quarter 1.01 0.51
Third Quarter 0.98 0.41
Fourth Quarter 0.75 0.36

On April 7, 2008, the last sales price of our common stock was $1.07 per share.
No cash dividends have been paid on our common stock for the 2007 and 2006
fiscal years and no change of this policy is under consideration by the Board of
Directors. The payment of cash dividends in the future will be determined by the
Board of Directors in light of conditions then existing, including our Company's
earnings (if any), financial requirements, and opportunities for reinvesting
earnings (if any), business conditions, and other factors. There are otherwise
no restrictions on the payment of dividends.

NUMBER OF SHAREHOLDERS

As of March 21, 2008, the number of shareholders of record of the Company's
common stock was 1,808.

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PENNY STOCK

Until we satisfy the initial listing requirements for the Nasdaq Stock Market
and successfully apply to have our shares of common stock listed thereon, the
public trading, if any, of our common stock will be on the OTCBB. As a result,
an investor may find it more difficult to dispose of, or to obtain accurate
quotations as to the price of, our common stock. Our common stock is subject to
provisions of Section 15(g) and Rule 15g-9 of the Exchange Act, commonly
referred to as the "penny stock rule." Section 15(g) sets forth certain
requirements for transactions in penny stocks, and Rule 15g-9(d) incorporates
the definition of "penny stock" that is found in Rule 3a51-1 of the Exchange
Act. The SEC generally defines "penny stock" to be any equity security that has
a market price less than $5.00 per share, subject to certain exceptions. If our
common stock is deemed to be a penny stock, trading in the shares will be
subject to additional sales practice requirements on broker-dealers who sell
penny stocks to persons other than established customers and accredited
investors. "Accredited investors" are persons with a net worth exceeding
$1,000,000 or annual income exceeding $200,000 (or $300,000 together with their
spouse) in each of the two most recent fiscal years and reasonably expect to
reach the same income level in the current year. For transactions covered by
these rules, broker-dealers must make a special suitability determination for
the purchase of such security and must have the purchaser's written consent to
the transaction prior to the purchase. Additionally, for any transaction
involving a penny stock, unless exempt, the rules require the delivery, prior to
the first transaction, of a risk disclosure document, prepared by the SEC,
relating to the penny stock market. A broker-dealer also must disclose the
commissions payable to both the broker-dealer and the registered representative,
and current quotations for the securities. Finally, monthly statements must be
sent disclosing recent price information for the penny stocks held in an account
and information on the limited market in penny stocks. Consequently, these rules
may restrict the ability of a broker-dealer to trade and/or maintain a market in
our common stock and may affect the ability of our shareholders to sell their
shares.

DIVIDEND POLICY

To date, we have declared no cash dividends on our Common Stock, and do not
expect to pay cash dividends in the near term. We intend to retain future
earnings, if any, to provide funds for operation of our business.

EQUITY COMPENSATION PLAN INFORMATION

We have no equity compensation plans as of December 31, 2007.

RECENT SALES OF UNREGISTERED SECURITIES

On December 22, 2006, we entered into a Common Stock Purchase Agreement (the
"Agreement") with FIDEsprit AG, a Swiss corporation (the "Investor"). Pursuant
to the Agreement, we agreed to issue and sell to the Investor 1,500,000 shares
of our common stock at a purchase price of $0.60 per share, for an aggregate
purchase price of $900,000. In payment of the purchase price, the Investor
delivered to us a promissory note in the principal amount of $900,000. The
promissory note does not bear any interest, and is payable in five installments
of $180,000, with the first payment due on the date the shares were issued, on
December 22, 2006, followed by four quarterly payments commencing on March 31,
2007, June 30, 2007, September 30, 2007 and December 31, 2007. The aggregate
purchase price of $900,000 has been paid in full in installments through
December 14, 2007.

In November 2005, the Company entered into a common stock purchase agreement to
sell 300,000 shares of the Company's restricted common stock at a price of $0.84
per share or $256,000 in exchange for a promissory note, bearing no interest.
Payments under the promissory note must be made in four equal installments of
$64,000 each, falling due on March 31, 2006, June 30, 2006, September 30, 2006
and December 31, 2006, respectively. This promissory note has been paid in full.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

CAUTIONARY STATEMENTS:

This Annual Report on Form 10-KSB contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Exchange Act. The Company intends that such forward-looking statements be
subject to the safe harbors created by such statutes. The forward-looking
statements included herein are based on current expectations that involve a
number of risks and uncertainties. Accordingly, to the extent that this Annual


8


<PAGE>

Report contains forward-looking statements regarding the financial condition,
operating results, business prospects or any other aspect of the Company, please
be advised that the Company's actual financial condition, operating results and
business performance may differ materially from that projected or estimated by
management in forward-looking statements. The differences may be caused by a
variety of factors, including but not limited to adverse economic conditions,
intense competition, including intensification of price competition and entry of
new competitors and products, adverse federal, state and local government
regulation, inadequate capital, unexpected costs and operating deficits,
increases in general and administrative expenses, and other specific risks that
may be alluded to in this Annual Report or in other reports issued by the
Company. In addition, the business and operations of the Company are subject to
substantial risks that increase the uncertainty inherent in the forward-looking
statements. The inclusion of forward looking statements in this Annual Report
should not be regarded as a representation by management or any other person
that the objectives or plans of the Company will be achieved.

The Company currently generates minor nonoperating revenue from its
out-licensing activities and does not expect to report any significant operating
revenue until the successful development and marketing of its planned
pharmaceutical and other biotech products. Additionally, after the launch of the
Company's products, there can be no assurance that the Company will generate
positive cash flow and there can be no assurance as to the level of operating
revenues, if any, the Company may actually achieve from its planned principal
operations.

PLAN OF OPERATION

The Company specializes in the research, development and marketing of drugs for
inflammatory diseases with Elafin as its first project. The Company's management
deems Elafin to be one of the most prospective substances in the treatment of
serious tissue and muscle damage. Independently conducted animal experiments
have indicated that Elafin may have benefits in the treatment of tissue and
muscle damage caused by insufficient oxygen supply and therefore may be useful
in the treatment of heart attacks, serious injuries and in the course of organ
transplants. Other applications have yet to be determined.

The Company intends to implement Elafin as a drug in the treatment of
inflammatory diseases, and intends to achieve governmental approval in Europe
first. Currently, management estimates that it will take at least four years to
achieve its first governmental approval for the use of Elafin as a drug for the
first indication.

The Company's success will depend on its ability to prove that Elafin is well
tolerated by humans and its efficacy in the indicated treatment. There can be no
assurance that the Company will be able to develop feasible production
procedures in accordance with Good Manufacturing Practices ("GMP") standards, or
that Elafin will receive any governmental approval for its use as a drug in any
of the intended applications.

A necessary pre-requisite for the commencement of clinical trials was the
production of Elafin according to GMP Standards. In anticipation of commencing
clinical trials, on March 18, 2005 we entered into a contractual agreement with
Eurogentec S.A., located in Liege, Belgium, an experienced Contract
Manufacturing Organization (CMO), for the production of a required amount of
Elafin according to GMP standards. The authorities demand strict standards for
the manufacture of medicines for clinical testing, and the GMP production of
Elafin for clinical trials must comply with a large number of rules and
regulations. Eurogentec completed its required production run of Elafin which
was used in our clinical trial discussed below.

In April 2005, we entered into an agreement with the German Institut fur
klinische Pharmakologie ("IKP"), an experienced Contract Research Organization
(CRO), to assist us with our initial clinical trial involving Elafin, to
evaluate the tolerability, safety, pharmacokinetic and dynamics of Elafin
pursuant to a clinical protocol [e.g. with healthy young men]. In November 2005
we commenced, and in December 2005, we successfully completed, a first Phase I
trial for Elafin. Elafin was tested on 32 healthy male volunteers in a
single-ascending-dose, double blind, randomized, placebo-controlled trial to
evaluate tolerability and safety at the IKP in Kiel, Germany. All intravenously
applied doses were well tolerated. No severe adverse events occurred.

9


<PAGE>

During 2006, the Company gathered and evaluated additional data from the results
of the Phase I study, and we are currently in the process of planning a Phase II
clinical trial. The design of a first Phase II study, which is intended to prove
Elafin's efficacy in a certain indication, is substantially complete. The
realization of such Phase II study will depend widely on the Company's ability
to acquire sufficient funds in its financial activities. In addition, during
2006, we established a procedure to incorporate Elafin as an active ingredient
in cream.

In September 2006 we filed an application with the EMEA (European Medicines
Agency) to obtain orphan drug status in the European markets for Elafin to be
used in the treatment of pulmonary hypertension. Subsequent to December 31,
2006, the Committee for Orphan Medical Products (COMP) of the EMEA adopted a
positive opinion recommending the granting of orphan medicinal product
designation for Elafin for treatment of pulmonary arterial hypertension and
chronic thromboembolic pulmonary hypertension. The orphan drug designation
became effective on March 20, 2007 upon adoption of the recommendation by the
European Commission.

In September 2006, Windhover Information, Inc., an established provider of
business information for decision makers in the biotechnology and pharmaceutical
industries, chose our Elafin project as one of the top 10 unlicensed
cardiovascular compounds. We presented the Elafin project at the "Windhover's
Therapeutic Alliances Cardiovascular Conference" in Chicago, United States on
November 16, 2006.

In July 2007, we entered into an agreement with the University of Alberta,
Canada to cooperate in research on Elafin for the treatment of pulmonary
diseases in neonates. Proteo will initially provide support for animal
experiments with its lead product on newborn rats to be carried out by Dr.
Bernard Thebaud, associate professor at the Department of Pediatrics and
Neonatology and a recognized authority in this area, with profound knowledge of
animal models and substantial clinical experience.

In August 2007, the Company's subsidiary entered into an agreement with Mina for
clinical development, production and marketing of Elafin. We have granted Mina
the right to exclusively market Elafin in Egypt and certain Middle Eastern and
African countries. Proteo received an initial payment of $110,000 upon execution
of the agreement, and may receive milestone-payments upon Mina's attainment of
certain clinical milestones as well as royalties on future net product sales. In
addition, Mina will take over the funding of clinical research activities for
the designated region. The agreement schedules the transfer of the
biotechnological production process of Elafin to Cairo.

In January 2008 we entered into an agreement with Stanford University, in
California, to cooperate in preclinical studies related to Elafin's treatment of
pulmonary arterial hypertension. Proteo will provide support for animal
experiments conducted by Marlene Rabinovitch, Research Director of the Vera
Moulton Wall Center for Pulmonary Vascular Disease at Stanford University who is
a renowned expert in the field, and her group at the university.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception we have raised a total of approximately $4,983,000 from the
sale of 20,065,428 shares of our common stock, of which 6,585,487 shares,
300,000 shares and 1,500,000 shares have been sold at $0.40 per share, $0.84 per
share and $0.60 per share, respectively, under stock subscription agreements in
the amount of approximately $2,035,000, $252,000 and $900,000, respectively.

In May 2004, the German State of Schleswig-Holstein granted Proteo Biotech AG
approximately 760,000 Euros (the "2004 Grant") for further research and
development of the Company's pharmaceutical product Elafin. The 2004 Grant, as
amended, covers the period from April 1, 2004 to December 31, 2007 if certain
milestones have been reached by September 30 of each year, with a possible
extension as defined in the agreement. The 2004 Grant covers 49.74% of eligible
research and development costs and is subject to the Company's ability to
otherwise finance the remaining costs. An additional condition of the grant is
that the product is to be developed and subsequently produced in the German
state of Schleswig-Holstein.

The Company qualified to receive approximately 196,109 Euros and 225,000 Euros
under the 2004 Grant in 2007 and 2006, respectively. In 2007, we received grant
funds approximating 172,000 Euros and qualified for an additional 23,623 Euros
recorded as a receivable as of December 31, 2007. We did not qualify for
approximately 21,000 Euros under the 2004 Grant by December 31, 2007 which
amount was not rolled forward and forfeited. As of December 31, 2007, management
believes that all milestones required by the 2004 Grant have been satisfied.

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<PAGE>

The Company has cash approximating $803,000 as of December 31, 2007. This is a
significant increase over the December 31, 2006 cash balance of approximately
$269,000, due to receipts from the 2004 Grant, the payment received from Mina
and the payments on the promissory note received from the Investor in connection
with our stock sale in December 2006.

Management believes that the Company will not generate any significant revenues
for at least the next four years, nor will it have sufficient cash to fund
operations. As a result, the Company's success will largely depend on its
ability to secure additional funding through the sale of its Common Stock and/or
the sale of debt securities. There can be no assurance, however, that the
Company will be able to consummate debt or equity financing in a timely manner,
or on a basis favourable to the Company, if at all.

CAPITAL EXPENDITURES

None significant.

GOING CONCERN

The Company's independent registered public accounting firm has stated in their
Auditor's Report included in this Form 10-KSB that the Company will require a
significant amount of additional capital to advance the Company's products to
the point where they may become commercially viable and has incurred significant
losses since inception. These conditions, among others, raise substantial doubt
about the Company's ability to continue as a going concern.

The Company intends to fund operations through grant proceeds and increased
equity financing arrangements which management believes may be insufficient to
finance its capital expenditures, working capital and other cash requirements
for the fiscal year ending December 31, 2008. Therefore, the Company will be
required to seek additional funds to finance its long-term operations. The
successful outcome of future activities cannot be determined at this time and
there is no assurance that if achieved, the Company will have sufficient funds
to execute its intended business plan or generate positive operating results.

INFLATION

Management believes that inflation has not had a material effect on the
Company's results of operations.

OFF BALANCE SHEET ARRANGEMENTS

The Company does not currently have any off balance sheet arrangements.

ACCOUNTING MATTERS

CRITICAL ACCOUNTING POLICIES

In December 2001, the SEC requested that all registrants list their three to
five most "critical accounting policies" in Item 6 of this Annual Report. The
SEC indicated that a "critical accounting policy" is one which is both important
to the portrayal of the Company's financial condition and results, and requires
management's most difficult, subjective or complex judgments, often as a result
of the need to make estimates about the effect of matters that are inherently
uncertain. We believe that the following accounting policies fit this
definition:

GRANTS - GENERAL

The Company received grants from the German government which are used to fund
research and development activities and the acquisition of equipment. Grants for
the reimbursement of research and development expenses are offset against
research and development expenses in the accompanying consolidated statements of
operations when the related expenses are incurred. Grants related to the
acquisition of tangible property are recorded as a reduction of the property's
historical cost.

FOREIGN CURRENCY TRANSLATION

Assets and liabilities of the Company's German operations are translated into
U.S. dollars at period-end exchange rates. Grants and expenses are translated at
weighted average exchange rates for the period. Net exchange gains or losses
resulting from such translation are excluded from net loss but are included in
comprehensive income and loss and accumulated in a separate component of
stockholders' equity (deficit). Such amount approximated $370,000 at December
31, 2007.

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The Company records payables related to a licensing agreement in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 52, "Foreign Currency
Translation." Quarterly commitments under such agreement are denominated in
Euros. For each reporting period, the Company translates the quarterly amount to
US dollars at the exchange rate effective on that date. If the exchange rate
changes between when the liability is incurred and the time payment is made, a
foreign exchange gain or loss results. The Company paid approximately $43,000
under this licensing agreement during the year ended December 31, 2007, and did
not realize any significant foreign currency exchanges gains or losses. Prior to
2007 the Company made no payments under such agreement.

Additionally, the Company computes a foreign exchange gain or loss at each
balance sheet date on all recorded transactions denominated in foreign
currencies that have not been settled. The difference between the exchange rate
that could have been used to settle the transaction at the date it occurred, and
the exchange rate at the balance sheet date, is the unrealized gain or loss
recognized in current operations. The Company recorded an unrealized foreign
currency transaction loss of approximately $101,000 for the year ended December
31, 2007. The Company recorded an unrealized foreign currency transaction loss
of approximately $81,000 for the year ended December 31, 2006.

RISKS AND UNCERTAINTIES

The Company maintains its cash in foreign accounts and not in bank depository
accounts insured by the Federal Deposit Insurance Corporation. The Company has
not experienced any losses in these accounts.

The Company's research and development activities and most of its assets are
located in Germany. The Company's operations are subject to various political,
economic, and other risks and uncertainties inherent in Germany and the European
Union ("EU").

INCOME TAXES

We account for income taxes under the asset and liability method, which requires
the recognition of deferred tax assets and liabilities for the expected future
tax consequences of events that have been included in the financial statements.
Under this method, deferred tax assets and liabilities are determined based on
the differences between the financial statements and tax basis of assets and
liabilities using enacted tax rates in effect for the year in which the
differences are expected to reverse. The effect of a change in tax rates on
deferred tax assets and liabilities is recognized in income in the period that
includes the enactment date.

We record net deferred tax assets to the extent we believe these assets will
more likely than not be realized. In making such determination, we consider all
available positive and negative evidence, including scheduled reversals of
deferred tax liabilities, projected future taxable income, tax planning
strategies and recent financial operations. In the event we were to determine
that we would be able to realize our deferred income tax assets in the future in
excess of their net recorded amount, we would make an adjustment to the
valuation allowance which would reduce the provision for income taxes.

In July 2006, the FASB issued Financial Interpretation ("FIN") No. 48,
"Accounting for Uncertainty in Income Taxes," which clarifies the accounting for
uncertainty in income taxes recognized in the financial statements in accordance
with SFAS No. 109, "Accounting for Income Taxes." FIN No. 48 provides that a tax
benefit from an uncertain tax position may be recognized when it is more likely
than not that the position will be sustained upon examination, including
resolutions of any related appeals or litigation processes, based on the
technical merits. Income tax positions must meet a more-likely-than-not
recognition threshold at the effective date to be recognized upon the adoption
of FIN 48 and in subsequent periods. This interpretation also provides guidance
on measurement, derecognition, classification, interest and penalties,
accounting in interim periods, disclosure and transition. FIN 48 is effective
for fiscal years beginning after December 15, 2006.

The Company adopted the provisions of FASB Interpretation No. 48, Accounting for
Uncertainty in Income Taxes, on January 1, 2007. The Company did not recognize
any additional liability for unrecognized tax benefit as a result of the
implementation.

The Company will recognize interest and penalties related to unrecognized tax
benefits within the income tax expense line in the accompanying consolidated
statement of operations. As of December 31, 2007 the Company has not recognized
liabilities for penalty and interest as the Company does not have liability for
unrecognized tax benefits.


12

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COMPREHENSIVE INCOME (LOSS)

The Company adopted SFAS No. 130 "Reporting Comprehensive Income," which
establishes standards for reporting and display of comprehensive income (loss)
and its components in a full set of general-purpose financial statements. Total
comprehensive income (loss) represents the net change in stockholders' equity
(deficit) during a period from sources other than transactions with stockholders
and as such, includes net earnings or loss. For the Company, the components of
other comprehensive income (loss) are the foreign currency translation
adjustments that are recorded as components of stockholders' equity (deficit).

GRANTS

In May 2004 PBAG received a grant from the German State of Schleswig-Holstein in
the approximate amount of 760,000 Euros for further research and development of
our pharmaceutical product Elafin. The grant covered the period from April 1,
2004 to March 31, 2007 if certain milestones had been reached by September 30 of
each year. In November 2006, the grant was extended through December 31, 2007.
PBAG qualified to receive approximately 217,000 Euros (approximately $320,000)
of the New Grant in 2007. New Grant funds approximating 196,000 Euros ($289,000)
have been received (or were due at year end). The remaining amount of
approximately 21,000 Euros was forfeited.

ITEM 7 - FINANCIAL STATEMENTS

The consolidated financial statements and corresponding notes to the
consolidated financial statements called for by this item appear under the
caption Index to Financial Statements (Page F-1 hereof).

ITEM 8 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

None.

ITEM 8A(T) - CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e)
under the Exchange Act) that are designed to ensure that information that would
be required to be disclosed in Exchange Act reports is recorded, processed,
summarized and reported within the time period specified in the SEC's rules and
forms, and that such information is accumulated and communicated to our
management, including to Birge Bargmann our Chief Executive Officer and Chief
Financial Officer, to allow timely decisions regarding required disclosure.

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As required by Rule 13a-15 under the Exchange Act, our management, including
Birge Bargmann our Chief Executive Officer and Chief Financial Officer,
evaluated the effectiveness of the design and operation of our disclosure
controls and procedures as of December 31, 2007. Based on that evaluation, Ms.
Bargmann concluded that as of December 31, 2007, and as of the date that the
evaluation of the effectiveness of our disclosure controls and procedures was
completed our disclosure controls and procedures were not effective to satisfy
the objectives for which they are intended because of the material weakness
described below.

INTERNAL CONTROLS OVER FINANCIAL REPORTING

MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING.

Section 404(a) of the Sarbanes-Oxley Act of 2002 requires that management
document and test the Company's internal control over financial reporting and
include in this Annual Report on Form 10-KSB a report on management's assessment
of the effectiveness of our internal control over financial reporting.

Our management is responsible for establishing and maintaining adequate internal
control over financial reporting, as such term is defined in Rule 13a-15(f) of
the Exchange Act. Under the supervision and with the participation of our
management, including Ms. Bargmann our Chief Executive Officer and Chief
Financial Officer, we conducted an evaluation of the effectiveness of our
internal control over financial reporting based upon the framework in Internal
Control--Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). This evaluation and assessment
led to the identification of a material weakness in our internal control over
financial reporting as indicated below:

We lack the necessary depth of personnel with sufficient technical U.S.
accounting expertise to ensure that our interim and annual financial statements
(including the required footnote disclosures)can be prepared without material
misstatements.

Our plan to remediate the material weakness as of December 31, 2007 is to
utilize an outside consulting resource to prepare and review interim and annual
financial statements.

This annual report does not include an audit report of our registered public
accounting firm regarding internal control over financial reporting. In
addition, Management's report on internal control over financial reporting is
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 annual report.

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTIng.

During the fiscal year ended December 31, 2007, there were no changes in our
internal control over financial reporting identified in connection with the
evaluation performed during the fiscal year covered by this report that has
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.

ITEM 8B - OTHER INFORMATION

None.

PART III

ITEM 9 - DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE
GOVERNANCE; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

The following table sets forth the names and ages of the current and incoming
directors and executive officers of the Company and the principal offices and
positions with the Company held by each person. The Board of Directors elects
the executive officers of the Company annually. The directors serve one-year
terms until their successors are elected. The executive officers serve terms of
one year or until their death, resignation or removal by the Board of Directors.

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NAME AGE POSITIONS
Birge Bargmann 46 President, Chief Executive
Officer, Chief Financial
Officer and Director
Dr. Barbara Kahlke 43 Secretary
Joerg Alte 47 Director
Professor Oliver Wiedow, MD. 50 Director
Holger Pusch 51 Director
Hartmut Weigelt, Ph.D. 62 Director

BIOGRAPHICAL INFORMATION:

Birge Bargmann has served as our President, Chief Executive Officer and Chief
Financial Officer since November 2005 and a Director of the Company since
December 2000. In November 2005, she was appointed CEO and CFO of the Company
and its subsidiary. Ms. Bargmann was a member of the Supervisory Board of Proteo
Biotech AG from 2002 to 2005. Since 1989, Ms. Bargmann has worked as a medical
technique assistant engaged in the Elafin project at the dermatological clinic
of the University of Kiel. She co-developed and carried out procedures to detect
and to purify Elafin.

Dr. Barbara Kahlke has served as our Secretary since August 2004. She has been a
member of the Supervisory Board of Proteo Biotech AG since May 2002, and a
scientific researcher for Proteo Biotech AG since May 2000. Dr. Kahlke is a
biologist, having received her doctorate from Christian-Albrechts-University in
Kiel, Germany. Since 1994, Dr. Kahlke has worked for a medium-sized German
pharmaceutical company with responsibilities in molecular biology and in protein
production in compliance with GMP. She discovered the biological activity of
bis-acyl urea.

Joerg Alte has served as a Director of the Company since December 2000. Mr. Alte
served as our President, Chief Executive Officer and Chief Financial Officer
from 2000 to 2003. Mr. Alte is a German lawyer by training and practice. After
studying law and passing his second state examination, he worked for more than
three years at a German law office predominantly engaged in economic and
corporate laws with both public and private company clients engaged in
international business. Subsequently, Mr. Alte worked as a legal advisor with a
German diagnostic company, where he also practiced German and U.S. securities
laws. From November 1998 to April 2000, Mr. Alte served as President and CEO for
Sangui Biotech International, Inc., a publicly traded company. Since September
2007, Mr. Alte has served as managing director of FIDEsprit AG, a Swiss
investment company.

Prof. Oliver Wiedow, M.D. has served as a Director of the Company since December
2000. Professor Wiedow served as our President, Chief Executive Officer and
Chief Financial Officer from January 2004 to June 2004 and has served as a
member of the Supervisory Board of Proteo Biotech AG since 2000. Since 1985
Professor Wiedow has served as physician and scientist at the University of
Kiel, Germany. Prof. Wiedow discovered Elafin in human skin and has researched
its biological effects.

Holger Pusch has served as a Director of the Company since December 2000. For
the last 23 years, Mr. Pusch worked in different marketing and sales functions
for major German companies. Mr. Pusch is currently the Managing Director of
Lupus Imaging & Media GmbH & Co. KG, a company in the photo business, a position
he has held since October 2006. From March 1, 2006 to October 2006, Mr. Pusch
worked for Connect Consulting GmbH, in Bonn Germany. From October 1989 to March
2006 he worked for Agfa Geveart AG and its successor as a result of a spin-off
in November 2004, AgfaPhoto GmbH.

Hartmut Weigelt, Ph.D. has served as a Director of the Company since December
2000. Dr. Weigelt was a member of the Supervisory Board of Proteo Biotech AG
from 2000 to 2003. Since 1996, Dr. Weigelt has served as the managing director
of Eco Impact GmbH which he co-founded. Dr. Weigelt was a co-founder of the
first German private university, Witten/Herdecke and he is currently a Director
of the Life Technologies Ruhr e.v. Mr. Weigelt studied chemistry and biology and
graduated with a M.Sc., Ph.D., and D.Sc. in biology.

15


<PAGE>

AUDIT COMMITTEE AND FINANCIAL EXPERT:

Proteo, Inc. is not a "listed company" under SEC rules and is therefore not
required to have an audit committee comprised of independent directors. We do
not currently have an audit committee, however, for certain purposes of the
rules and regulations of the SEC and in accordance with the Sarbanes-Oxley Act
of 2002, our board of directors is deemed to be its audit committee and as such
functions as an audit committee and performs some of the same functions as an
audit committee including: (1) selection and oversight of our independent
accountant; (2) establishing procedures for the receipt, retention and treatment
of complaints regarding accounting, internal controls and auditing matters; and
(3) engaging outside advisors. Our board of directors has determined that its
members do not include a person who is an "audit committee financial expert"
within the meaning of the rules and regulations of the SEC.

The board of directors has determined that each of its members is able to read
and understand fundamental financial statements and has substantial business
experience that results in that member's financial sophistication. Accordingly,
the board of directors believes that each of its members has sufficient
knowledge and experience necessary to fulfill the duties and obligations that an
audit committee would have.

FAMILY RELATIONSHIPS

There are no family relationships between or among the directors, executive
officers or persons nominated by the Company to become directors or executive
officers.

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

To the best of the Company's knowledge, during the past five years, none of the
following occurred with respect to a present or former director or executive
officer of the Company: (1) any bankruptcy petition filed by or against any
business of which such person was a general partner or executive officer at the
time of the bankruptcy or within two years prior to that time; (2) any
conviction in a criminal proceeding or being subject to a pending criminal
proceeding (excluding traffic violations and other minor offenses); (3) being
subject to any order, judgment or decree, not subsequently reversed, suspended
or vacated, of any court of competent jurisdiction, permanently or temporarily
enjoining, barring, suspending or otherwise limiting his or her involvement in
any type of business, securities or banking activities; and (4) being found by a
court of competent jurisdiction (in a civil action), the SEC or the Commodities
Futures Trading Commission to have violated a federal or state securities or
commodities law, and the judgment has not been reversed, suspended or vacated.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE.

Section 16(a) of the Exchange Act requires the Company's directors and executive
officers and persons who own more than ten percent of a registered class of the
Company's equity securities to file with the SEC initial reports of ownership
and reports of changes in ownership of common stock and other equity securities
of the Company. Officers, directors and greater than ten percent beneficial
owners of our common stock are required by SEC regulations to furnish the
Company with copies of all Section 16(a) forms they file. To the Company's
knowledge, based solely on the review of copies of such reports furnished to the
Company and written representations that no other reports were required, the
Company has been informed that all Section 16(a) filing requirements applicable
to the Company's officers, directors and greater than ten percent beneficial
owners of our common stock were complied with.

CODE OF ETHICS

The Company maintains a code of ethical conduct applicable to all employees,
officers and directors. The Company will also provide to any person without
charge, and upon request, a copy of the Code of Ethics by making a request in
writing to: [e-mail].

ITEM 10 - EXECUTIVE COMPENSATION

The following table sets forth the overall compensation earned over each of the
past two fiscal years ending December 31, 2007 by each person who served as the
principal executive officer of Proteo during fiscal year 2007. There were no
other executive officers who had compensation of $100,000 or more during fiscal
year 2007.

16


<PAGE>


<TABLE>
<S> <C>
SUMMARY COMPENSATION TABLE

NON-QUALIFIED
NON-EQUITY DEFERRED ALL OTHER TOTAL
STOCK OPTION INCENTIVE PLAN COMPENSATION COMPEN- COMPEN-
NAME AND SALARY BONUS AWARDS AWARDS COMPEN-SATION EARNINGS SATION SATION
PRINCIPAL POSITION YEAR ($) ($) ($) ($) (#) ($) ($) ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Birge Bargmann 2007 $ 64,000 -0- -0- -0- -0- -0- -0- $ 64,000
(Chief Executive
Officer and Chief 2006 $ 6,000 -0- -0- -0- -0- -0- -0- $ 6,000
Financial Officer)
</TABLE>


COMPENSATION OF DIRECTORS

The Directors have not received any compensation for serving in such capacity,
and the Company does not currently contemplate compensating its Directors in the
future for serving in such capacity.

ITEM 11 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS

The following table sets forth, as of December 31, 2007, certain information
with respect to the Company's equity securities owned of record or beneficially
by (i) each director and executive officer; (ii) each person who owns
beneficially more than 5% of each class of the Company's outstanding equity
securities; and (iii) all directors and executive officers as a group. The
address for all of the following individuals is c/o Proteo, Inc., 2102 Business
Center Drive, Irvine, California 92612.

Number of Shares Percent of
Title of Class Name of Beneficial Owner Beneficially Owned (1) Class
- -------------- ------------------------- ---------------------- ----------
Common Stock Prof. Oliver Wiedow, M.D. 10,680,000 44.7%
Common Stock Birge Bargmann 2,000,000 8.4%
Common Stock Joerg Alte 140,000(2) *
Common Stock Dr. Barbara Kahlke 10,000 *
Common Stock Holger Pusch 20,000 *
Common Stock Hartmut Weigelt, Ph.D. 80,000 *
Common Stock All officers and directors 12,930,000 54.2%
as a group
(6 persons)
* less than 1%

(1) Based on 23,879,350 shares outstanding as of March 28, 2008.
(2) Mr. Alte has loaned all 140,000 shares to a broker, which shares must be
returned to Mr. Alte on or before December 31, 2007. Such shares were
not returned as of December 31, 2007.

ITEM 12 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE

Pursuant to a 30-year license agreement we have agreed to pay Dr. Wiedow three
percent of the gross revenues of the Company from products based on patents
where he was the principal inventor. Furthermore, we agreed to pay licensing
fees of 110,000 Euro per year, for a term of six years through the year ending
December 31, 2006, for a total of 660,000 Euros. This equated to annual license
fees of approximately $130,000 for the year ending December 31, 2005 and
$140,000 for the year ending December 31, 2006. We also agreed to refund all
expenses needed to maintain such patents (e.g., patent fees, legal fees, etc).

At December 31, 2007, we have accrued $927,900 of licensing fees payable to Dr.
Wiedow. During 2004, the licensing agreement was amended to require annual
payments of 30,000 Euros, to be paid on July 15 of each year, beginning on July
15, 2004. Such amount can be increased up to 110,000 Euros by June 1 of each
year based on an assessment of the Company's financial ability to make such
payments. The annual payments will continue until the entire obligation of
660,000 Euros has been paid. In December 2007, the Company paid to Dr. Wiedow
30,000 Euros (approx. $43,000). No other payments have been made to Dr. Wiedow
as of December 31, 2007, which is a technical breach of the agreement. Dr.
Wiedow waived such breach and deferred the prior year payments to 2008.

17


<PAGE>

On September 28, 2006, Dr. Wiedow entered into an agreement to contribute 50,000
Euros (approximately $63,000) to PBAG for a 15% non-voting interest in PBAG, in
accordance with certain provisions of the German Commercial Code.

Dr. Wiedow will receive 15% of profits, as determined under the agreement, not
to exceed in any given year 30% of the capital contributed. Additionally, he
will be allocated 15% of losses, as determined under the agreement, not to
exceed the capital contributed. Dr. Wiedow is under no obligation to provide
additional capital contributions to the Company. During the years ended December
31, 2007 and 2006, losses of $3,978 and $59,026, respectively, were allocated
against the contributed capital account, which is presented as minority interest
in the profits and losses of Proteo Biotech on the accompanying statements of
operations and comprehensive loss.

The disclosure requirements of Item 407(a) of Regulation S-B are not applicable
to this filing.

ITEM 13 - EXHIBITS

EXHIBIT NO. DESCRIPTION

2.1* Agreement and Plan of Share Exchange

3.1* Articles of Incorporation, dated December 18, 1992

3.2* Amendment to Articles of Incorporation, dated October 31, 1996

3.3* Amendment to Articles of Incorporation, dated February 12, 1998

3.4* Amendment to Articles of Incorporation, dated May 18, 1999

3.5* Amendment to Articles of Incorporation, dated July 18, 2001

3.6* Amendment to Articles of Incorporation, dated January 11, 2002

3.7* Articles of Share Exchange, dated April 25, 2002

3.8* By-Laws, dated December 18, 1992

10.3* Common Stock Purchase Agreement

10.4* Promissory Note with Guaranty

10.5* Common Stock Purchase Agreement

10.6* Promissory Note

10.7* License Agreement dated August 9, 2007, between Proteo Biotech AG
and Rhein Minapharm Biogenetics SAE

14.1* Code of Ethics

21** Subsidiaries of Small Business Issuer

31.1** Certification of Chief Executive Officer Pursuant to Section 302

31.2** Certification of Chief Financial Officer Pursuant to Section 302

32** Certification of Chief Executive Officer and Chief Financial
Officer Pursuant to 18 U.S.C. Section 1350
________________________

* Previously filed.

** Filed herewith.

18


<PAGE>

ITEM 14 - PRINCIPAL ACCOUNTANT FEES AND SERVICES

AUDIT FEES:

We were billed approximately $84,000 and $70,000 for the fiscal years ended
December 31, 2007 and 2006, respectively, for professional services rendered by
the principal accountant for the audit of the our annual consolidated financial
statements and the review of our quarterly unaudited consolidated financial
statements.

AUDIT RELATED FEES:

None

TAX FEES:

We were billed approximately $6,000 and $6,000 for the fiscal years ended
December 31, 2007 and 2006, respectively, for professional services rendered by
the principal accountant for tax compliance and tax advice.

ALL OTHER FEES:

There were no other professional services rendered by our principal accountant
during the two years ended December 31, 2007 that were not included in the three
categories above.

All of the services provided by our principal accountant were approved by our
Board of Directors. No more than 50% of the hours expended on our audit for the
last fiscal year were attributed to work performed by persons other than
full-time employees of our principal accountant.

19


<PAGE>

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

Dated: April 11, 2008

PROTEO, INC.
(Registrant)



BY: /s/ BIRGE BARGMANN
----------------------------------------------
BIRGE BARGMANN
CHIEF EXECUTIVE OFFICER AND
CHIEF FINANCIAL OFFICER

Pursuant to requirements of the Securities Exchange Act of 1934, this report has
been signed below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated:

Signature Capacity Date
- ------------------------------- ---------------------------- -------------------
/s/ Birge Bargmann Chief Executive Officer and April 11, 2008
Birge Bargmann Chief Financial Officer
- ------------------------------- ---------------------------- -------------------
/s/ Joerg Alte Director April 11, 2008
Joerg Alte
- ------------------------------- ---------------------------- -------------------
/s/ Oliver Wiedow, M.D. Director April 11, 2008
Oliver Wiedow, M.D.
- ------------------------------- ---------------------------- -------------------
/s/ Holger Pusch Director April 11, 2008
Holger Pusch
- ------------------------------- ---------------------------- -------------------
/s/ Hartmut Weigelt, Ph.D. Director April 11, 2008
Hartmut Weigelt, Ph.D.
- ------------------------------- ---------------------------- -------------------


20


<PAGE>

REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders
Proteo, Inc. and Subsidiary

We have audited the accompanying consolidated balance sheet of Proteo, Inc. and
Subsidiary (collectively the "Company"), a Development Stage Company, as of
December 31, 2007, and the related consolidated statements of operations and
comprehensive loss, stockholders' equity (deficit) and cash flows for the years
ended December 31, 2007 and 2006, and for the period from November 22, 2000
(Inception) to December 31, 2007. These consolidated financial statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits.

We conducted our audits 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
consolidated financial statements are free of material misstatement. The Company
was not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company's internal control
over financial reporting. Accordingly, we express no such opinion. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the consolidated 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 audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of Proteo,
Inc. and Subsidiary as of December 31, 2007, and the consolidated results of
their operations and their cash flows for the years ended December 31, 2007 and
2006, and for the period from November 22, 2000 (Inception) to December 31,
2007, in conformity with accounting principles generally accepted in the United
States of America.

The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern. As reported in the
accompanying consolidated financial statements, the Company is a development
stage enterprise which has experienced significant losses since inception with
no operating revenues. As discussed in Note 1 to the consolidated financial
statements, a significant amount of additional capital will be necessary to
advance the development of the Company's products to the point at which they may
become commercially viable. These conditions, among others, raise substantial
doubt about the Company's ability to continue as a going concern. Management's
plans regarding these matters are also described in Note 1. The accompanying
consolidated financial statements do not include any adjustments that might
result from the outcome of this uncertainty.


/s/ Squar, Milner, Peterson, Miranda & Williamson, LLP
- ------------------------------------------------------

April 11, 2008
Newport Beach, California


F-1


<PAGE>

<TABLE>
<S> <C>
PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2007

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

ASSETS

CURRENT ASSETS
Cash and cash equivalents $ 802,745
Research supplies inventory 127,557
Prepaid expenses and other current assets 80,542
-----------
Total Current Assets 1,010,844

Property and Equipment, net 376,542
-----------

TOTAL ASSETS $ 1,387,386
===========

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities
Accounts payable and accrued liabilities $ 123,518
Accrued licensing fees 927,900
-----------
Total Current Liabilities 1,051,418

Commitments and Contingencies (Note 6)


STOCKHOLDERS' DEFICIT
Preferred stock, par value $0.001 per share;
20,000,000 shares authorized; no shares
issued or outstanding --
Common stock, par value $0.001 per share;
300,000,000 shares authorized; 23,879,350.
shares issued and outstanding 23,880
Additional paid-in capital 4,968,234
Accumulated other comprehensive income 370,378
Deficit accumulated during development stage (5,026,524)
-----------
Total Stockholders' Deficit (335,968)
-----------

Total Liabilities and Stockholders' Deficit $ 1,387,386
===========


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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-2


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

November 22,
2000
(Inception)
Through
December 31,
2007 2006 2007
------------ ------------ ------------

REVENUES $ -- $ -- $ --

EXPENSES
General and administrative 347,825 552,115 3,528,303
Research and development, net of grants 133,286 100,490 1,616,264
------------ ------------ ------------
481,111 652,605 5,144,567
OTHER INCOME (EXPENSE)
Interest income 6,334 3,192 40,758
Miscellaneous income, net 126,717 21,519 239,367
Foreign currency transaction loss (101,087) (81,000) (225,087)
------------ ------------ ------------
31,964 (56,289) 55,038
------------ ------------ ------------

NET LOSS BEFORE MINORITY INTEREST (449,147) (708,894) (5,089,529)

MINORITY INTEREST IN NET LOSS OF CONSOLIDATED
SUBSIDIARY, NET OF TAXES 3,978 59,026 63,004
------------ ------------ ------------

NET LOSS AVAILABLE TO COMMON SHAREHOLDERS (445,169) (649,868) (5,026,525)

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS 89,987 61,737 370,378
------------ ------------ ------------

COMPREHENSIVE LOSS $ (355,183) $ (588,131) $ (4,656,147)
============ ============ ============

BASIC AND DILUTED LOSS AVAILABLE TO COMMON
SHAREHOLDERS PER COMMON SHARE $ (0.02) $ (0.03)
============ ============

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING 23,879,000 23,842,000
============ ============


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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

F-3


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

BALANCE - November 22,
2000 (Inception) -- $ -- $ -- $ -- $ -- $ -- $ --
Common stock subscribed at
$0.001 per share 4,800,000 4,800 -- (4,800) -- -- --
Common stock issued for
cash at $3.00 per share 50,000 50 149,950 -- -- -- 150,000
Reorganization with Proteo
Biotech AG 2,500,000 2,500 6,009 -- -- -- 8,509
Net loss -- -- -- -- -- (60,250) (60,250)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2000 7,350,000 7,350 155,959 (4,800) -- (60,250) 98,259
Common stock issued for
cash at $3.00 per share 450,000 450 1,349,550 -- -- -- 1,350,000
Cash received for common
stock subscribed at
$0.001 per share -- -- -- 4,800 -- -- 4,800

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-4


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

(continued)

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

Common stock issued for
cash at $0.40 per share 201,025 $ 201 $ 80,209 $ -- $ -- $ -- $ 80,410
Common stock subscribed at
$0.40 per share 5,085,487 5,086 2,029,109 (2,034,195) -- -- --
Common stock issued for
cash to related
parties at $0.001 per
share 7,200,000 7,200 -- -- -- -- 7,200
Other comprehensive loss -- -- -- -- (20,493) -- (20,493)
Net loss -- -- -- -- -- (374,111) (374,111)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2001 20,286,512 20,287 3,614,827 (2,034,195) (20,493) (434,361) 1,146,065
Common stock issued in
connection with reverse
merger 1,313,922 1,314 (1,314) -- -- -- --
Cash received for common
stock subscribed at
$0.40 per share -- -- -- 406,440 -- -- 406,440

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-5


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

(continued)

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

Other comprehensive income -- $ -- $ -- $ -- $ 116,057 $ -- $ 116,057
Net loss -- -- -- -- -- (1,105,395) (1,105,395)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2002 21,600,434 21,601 3,613,513 (1,627,755) 95,564 (1,539,756) 563,167
Common stock issued for
cash at $0.60 per share 66,667 67 39,933 -- -- -- 40,000
Cash received for common
stock subscribed at
$0.40 per share -- -- -- 387,800 -- -- 387,800
Other comprehensive income -- -- -- -- 164,399 -- 164,399
Net loss -- -- -- -- -- (620,204) (620,204)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2003 21,667,101 21,668 3,653,446 (1,239,955) 259,963 (2,159,960) 535,162
Common stock issued for
cash at $0.40 per share 412,249 412 164,588 -- -- -- 165,000

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-6


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

(continued)

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

Cash received for common
stock subscribed at
$0.40 per share -- $ -- $ -- $ 680,000 $ -- $ -- $ 680,000
Other comprehensive income -- -- -- -- 93,186 -- 93,186
Net loss -- -- -- -- -- (639,746) (639,746)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2004 22,079,350 22,080 3,818,034 (559,955) 353,149 (2,799,706) 833,602
Common stock subscribed at
$0.84 per share 300,000 300 251,700 (252,000) -- -- --
Cash received for common
stock subscribed at
$0.40 per share -- -- -- 435,284 -- -- 435,284
Other comprehensive income -- -- -- -- (134,495) -- (134,495)
Net loss -- -- -- -- -- (1,131,781) (1,131,781)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2005 22,379,350 22,380 4,069,734 (376,671) 218,654 (3,931,487) 2,610

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-7


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

(continued)

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

Common stock subscribed at
$0.60 per share 1,500,000 $ 1,500 $ 898,500 $ (900,000) $ -- $ -- $ --
Cash received for common
stock subscribed at
$0.40 per share -- -- -- 414,590 -- -- 414,590
Other comprehensive income
-- -- -- -- 61,737 -- 61,737
Net loss -- -- -- -- -- (649,868) (649,868)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2006 23,879,350 23,880 4,968,234 (862,081) 280,391 (4,581,355) (170,931)
Cash received for common
stock subscribed -- -- -- 862,081 -- -- 862,081
Other comprehensive income -- -- -- -- 89,987 -- 89,987
Net loss -- -- -- -- -- (445,169) (445,169)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2007 23,879,350 $ 23,880 $ 4,968,234 $ -- $ 370,378 $(5,026,524) $ (335,968)
=========== =========== =========== =========== =========== =========== ===========

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-8


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

November 22,
2000
(Inception)
Through
December 31,
2007 2006 2007
----------- ----------- -----------

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (445,169) $ (649,868) $(5,026,524)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation 54,578 53,104 275,399
Loss on disposal of equipment 4,518 -- 4,518
Foreign currency transaction gain 101,087 81,000 225,087
Changes in operating assets and liabilities:
Research supplies inventory (24,547) 8,083 (138,451)
Prepaid expenses and other current assets (24,518) (18,671) (70,699)
Accounts payable and accrued liabilities 17,851 (4,335) 84,991
Accrued licensing fees (44,187) 139,000 702,813
----------- ----------- -----------
Net cash used in operating activities (360,387) (391,687) (3,942,867)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (6,294) -- (608,022)
Cash of reorganized entity -- -- 27,638
----------- ----------- -----------
Net cash used in investing activities (6,294) -- (580,384)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock -- -- 1,792,610
Proceeds for subscribed stock 862,081 414,590 3,190,995
----------- ----------- -----------
Net cash provided by financing activities 862,081 414,590 4,983,605

EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS 37,863 18,802 342,391
----------- ----------- -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS 533,263 41,705 802,745

CASH AND CASH EQUIVALENTS - beginning of period 269,482 227,777 --
----------- ----------- -----------

CASH AND CASH EQUIVALENTS - end of period $ 802,745 $ 269,482 $ 802,745
=========== =========== ===========

(continued)

- -----------------------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-9


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

November 22,
2000
(Inception)
Through
December 31,
2007 2006 2007
----------- ----------- -----------

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Common stock issued for subscriptions receivable $ -- $ 900,000 $ 1,627,755
=========== =========== ===========

Net assets (excluding cash) of reorganized entity
received in exchange for equity securities $ -- $ -- $ 8,509
=========== =========== ===========


See the accompanying notes to consolidated financial statements for more
information on non-cash investing and financing activities during the years
ended December 31, 2007 and 2006, and for the period from November 22, 2000
(Inception) through December 31, 2007.


- -----------------------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-10
</TABLE>


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION/NATURE OF BUSINESS

Proteo, Inc. (formerly TriVantage Group, Inc.) and Proteo Marketing, Inc.
("PMI"), a Nevada corporation, which began operations in November 2000, entered
into a reorganization and stock exchange agreement in December 2000 with Proteo
Biotech AG ("PBAG"), a German corporation, incorporated in Kiel, Germany.
Pursuant to the terms of the agreement, all of the shareholders of PBAG
exchanged their common stock for 2,500,000 shares of PMI common stock. As a
result, PBAG became a wholly owned subsidiary of PMI. Proteo Inc.'s common stock
is quoted on the Over-the-Counter Bulletin Board under the symbol "PTEO.OB".

During 2001, PMI entered into a Shell Acquisition Agreement (the "Acquisition
Agreement") with Trivantage Group, Inc. ("Trivantage"), a public "shell"
company, in a transaction accounted for as a reverse merger. In accordance with
the Acquisition Agreement, PMI first acquired 176,660,280 shares (1,313,922
post-reverse split shares, as described below) of Trivantage's common stock
representing 90% of the issued and outstanding common stock of Trivantage, in
exchange for a cash payment of $500,000 to the sole shareholder of Trivantage.
Secondly, Trivantage completed a one for one-hundred-fifty reverse stock split.
Finally, effective April 25, 2002, the shareholders of PMI exchanged their
shares of PMI for an aggregate of 20,286,512 shares of Trivantage to effect a
reverse merger between PMI and Trivantage. Subsequently, Trivantage changed its
name to Proteo, Inc. Effective December 31, 2004, PMI merged into Proteo, Inc..
PBAG and Proteo, Inc. are hereinafter collectively referred to as the "Company."

The Company intends to develop, manufacture, promote and market pharmaceuticals
and other biotech products. The Company is focused on the development of
pharmaceuticals based on the human protein Elafin. Elafin is a human protein
that naturally occurs in human skin, lungs, and mammary glands. The Company
believes Elafin may be useful in the treatment of cardiac infarction, serious
injuries caused by accidents, post surgery damage to tissue and complications
resulting from organ transplants.

Since its inception, the Company has primarily been engaged in the research and
development of its proprietary product Elafin. Once the research and development
phase is complete, the Company will begin to manufacture and obtain the various
governmental regulatory approvals for the marketing of Elafin. The Company is in
the development stage and has not generated any revenues from product sales. The
Company believes that none of its planned products will produce sufficient
revenues in the near future. As a result, the Company plans to identify and
develop other potential products. There are no assurances, however, that the
Company will be able to produce such products, or if produced, that they will be
accepted in the marketplace.


F-11


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

DEVELOPMENT STAGE AND GOING CONCERN MATTERS

The Company has been in the development stage since it began operations on
November 22, 2000 and has not generated any revenues from operations. There is
no assurance of any future revenues. Additionally, at December 31, 2007, the
Company has a working capital deficit of approximately $41,000 and a
stockholders' deficit of approximately $1,387,000.

The Company will require substantial additional funding for continuing research
and development, obtaining regulatory approval and for the commercialization of
its products.

Management has taken action to address these matters. They include:

o Retention of experienced management personnel with particular
skills in the commercialization of such products.
o Attainment of technology to develop additional biotech products.
o Raising additional funds through the sale of debt and/or equity
securities.

The Company's products, to the extent they may be deemed drugs or biologics, are
governed by the Federal Food, Drug and Cosmetics Act and the regulations of
state and various foreign government agencies. The Company's proposed
pharmaceutical products to be used with humans are subject to certain clearance
procedures administered by the above regulatory agencies. There can be no
assurance that the Company will receive the regulatory approvals required to
market its proposed products elsewhere or that the regulatory authorities will
review the product within the average period of time.

Management plans to generate revenues from product sales, but there are no
purchase commitments for any of the proposed products. In the absence of
significant sales and profits, the Company may seek to raise additional funds to
meet its working capital requirements through the additional sales of debt
and/or equity securities. There is no assurance that the Company will be able to
obtain sufficient additional funds when needed, or that such funds, if
available, will be obtainable on terms satisfactory to the Company.

These circumstances, among others, raise substantial doubt about the Company's
ability to continue as a going concern. The accompanying consolidated financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.

F-12


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


CONCENTRATIONS

The Company maintains substantially all of its cash in bank accounts in Germany
and not in United States bank depository accounts insured by the Federal Deposit
Insurance Corporation. Under German law, the bank accounts are insured by the
Deposit Protection Fund. Each bank customer is insured for up to seven billion
Euros. The Company has not experienced any losses in these accounts.

The Company's research and development activities and most of its assets are
located in Germany. The Company's operations are subject to various political,
economic, and other risks and uncertainties inherent in Germany and the European
Union.

OTHER RISKS AND UNCERTAINTIES

The Company's line of future pharmaceutical products being developed by its
German subsidiary are considered drugs or biologics, and as such, are governed
by the Federal Food and Drug and Cosmetics Act and by the regulations of state
agencies and various foreign government agencies. There can be no assurance that
the Company will obtain the regulatory approvals required to market its
products. The pharmaceutical products under development in Germany will be
subject to more stringent regulatory requirements because they are in vitro
products for humans. The Company has no experience in obtaining regulatory
clearance on these types of products. Therefore, the Company will be subject to
the risks of delays in obtaining or failing to obtain regulatory clearance and
other uncertainties, including financial, operational, technological, regulatory
and other risks associated with an emerging business, including the potential
risk of business failure.

As substantially all of the Company's operations are in Germany, they are
exposed to risks related to fluctuations in foreign currency exchange rates. The
Company does not utilize derivative instruments to hedge against such exposure.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of America
("GAAP") and include the accounts of Proteo, Inc. and its wholly owned
subsidiary. The operations of PBAG, acquired on December 30, 2000, are included
in the accompanying consolidated statements of operations and comprehensive loss
from such date. All significant intercompany accounts and transactions have been
eliminated in consolidation.

STARTUP ACTIVITIES

Statement of Position No. 98-5, "REPORTING THE COSTS OF STARTUP ACTIVITIES"
requires that all non-governmental entities expense the costs of startup
activities as incurred, including organizational costs. This standard has not
materially impacted the Company's financial position or results of operations.

F-13


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

GRANTS

The Company receives grants from the German government which are used to fund
research and development activities and the acquisition of equipment (see Note
6). Grant receipts for the reimbursement of research and development expenses
are offset against such expenses in the accompanying consolidated statements of
operations and comprehensive loss when the related expenses are incurred. Grants
related to the acquisition of tangible property are recorded as a reduction of
such property's historical cost.

Funds are available at the earliest from January 1 of each budget year with a
funds request submitted on or before December 5 of the preceding year. Funds
reserved for each budget year may not be assigned, and funds not requested by
December 5 of each budget year will expire.

USE OF ESTIMATES

The Company prepares its consolidated financial statements in conformity with
GAAP, which requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of revenues (if any) and expenses during the reporting period.
Significant estimates made by management include, among others, realizability of
long-lived assets and estimates for deferred tax asset valuation allowances.
Actual results could materially differ from such estimates.

FINANCIAL INSTRUMENTS

Statement of Financial Accounting Standards ("SFAS") No. 107 "DISCLOSURES ABOUT
FAIR VALUE OF FINANCIAL INSTRUMENTS" requires disclosure of fair value
information about financial instruments when it is practicable to estimate that
value. Management believes that the carrying amounts of the Company's financial
instruments, consisting primarily of cash and accounts payable and accrued
expenses, approximate their fair value at December 31, 2007 due to their
short-term nature.

F-14


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

FOREIGN CURRENCY TRANSLATION

Assets and liabilities of the Company's German operations are translated from
Euros (the functional currency) into U.S. dollars (the reporting currency) at
period-end exchange rates. Expense and grant receipts are translated at weighted
average exchange rates for the period. Net exchange gains or losses resulting
from such translation are excluded from the consolidated statements of
operations and are included in comprehensive loss and accumulated in a separate
component of stockholders' equity (deficit). Such accumulated amount
approximated $370,000 at December 31, 2007.

The Company records payables related to a licensing agreement (see Note 6) in
accordance with SFAS No. 52, "FOREIGN CURRENCY TRANSLATION." Quarterly
commitments under such agreement are denominated in Euros. For each reporting
period, the Company translates the quarterly amount to US dollars at the
exchange rate effective on that date. If the exchange rate changes between when
the liability is incurred and the time payment is made, a foreign exchange gain
or loss results. The Company paid approximately $43,000 under this licensing
agreement during the year ended December 31, 2007, and did not realize any
significant foreign currency exchanges gains or losses. Prior to 2007 the
Company made no payments under such agreement.

Additionally, the Company computes a foreign exchange gain or loss at each
balance sheet date on all recorded transactions denominated in foreign
currencies that have not been settled. The difference between the exchange rate
that could have been used to settle the transaction on the date it occurred and
the exchange rate at the balance sheet date is the unrealized gain or loss that
is currently recognized. The Company recorded unrealized foreign currency
transaction losses of approximately $101,000 and $81,000 for the years ended
December 31, 2007 and 2006, respectively.

F-15


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid temporary cash investments with original
maturities of three months or less to be cash equivalents. Cash and cash
equivalents consist of deposits with banks and short-term certificates of
deposit.

RESEARCH SUPPLIES INVENTORY

Research supplies inventory is stated at cost, and is entirely comprised of
research supplies and materials that are expensed as consumed.

PROPERTY AND EQUIPMENT

Property and equipment are recorded at cost and are depreciated using the
straight-line method over their expected useful lives, which range from 3 to 14
years. Leasehold improvements are amortized over the expected useful life of the
improvement or the remaining lease term, whichever is shorter. Expenditures for
normal maintenance and repairs are charged to income, and significant
improvements are capitalized. The cost and related accumulated depreciation or
amortization of assets are removed from the accounts upon retirement or other
disposition; any resulting gain or loss is reflected in the consolidated
statements of operations and comprehensive loss.

LONG-LIVED ASSETS

The Financial Accounting Statements Board ("FASB") has issued SFAS No. 144,
"ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS." SFAS No. 144
addresses financial accounting and reporting for the impairment or disposal of
certain long-lived assets, and requires that certain long-lived assets be
reviewed for impairment whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable. If the cost basis of a
long-lived asset is greater than the projected future undiscounted net cash
flows from such asset, an impairment loss is recognized. Impairment losses are
calculated as the difference between the cost basis of an asset and its
estimated fair value. SFAS No. 144 also requires companies to separately report
discontinued operations and extends that reporting to a component of an entity
that either has been disposed of (by sale, abandonment, or in a distribution to
shareholders) or is classified as held for sale. Assets to be disposed are
reported at the lower of the carrying amount or fair value less costs to sell.

F-16


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

LONG-LIVED ASSETS (continued)

Management believes that no indicators of impairment existed as of or for the
years ended December 31, 2007 or 2006. There can be no assurance, however, that
market conditions or demand for the Company's products or services will not
change which could result in long-lived asset impairment charges in the future.

REVENUE RECOGNITION

It is the Company's intent to recognize revenues from future product sales at
the time of product delivery. In December 2003, the Securities and Exchange
Commission released Staff Accounting Bulletin ("SAB") No. 104, "REVENUE
RECOGNITION," which provides guidance on the recognition, presentation and
disclosure of revenue in the financial statements. The Company believes that
once significant operating revenues are generated, the Company's revenue
recognition accounting policies will conform to SAB No. 104.

RESEARCH AND DEVELOPMENT

Research and development costs are charged to operations as incurred. Grant
funds received are reported as a reduction of research and development costs
(see Note 6).

PATENTS AND LICENSES

The Company does not own any patents or patents pending related to the Elafin
technology and instead operates under a technology license agreement with a
related party (see Note 6). Under such license agreement, the Company does not
hold title to any patents but must pay for all costs related to new patents,
patents pending, and patent maintenance associated with the Elafin technology.
The Company expenses such costs as incurred.

INCOME TAXES

The Company accounts for income taxes using the liability method in accordance
with SFAS No. 109, "ACCOUNTING FOR INCOME TAXES." Deferred tax assets and
liabilities are recognized for future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases. A valuation allowance is
provided for significant deferred tax assets when it is more likely than not
that such assets will not be recovered.

Management evaluates the Company's tax positions for measurement and recognition
using the guidance set forth in FASB Interpretation No. 48 ("Accounting for
Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109"),
which is more fully described below.

The Company adopted the provisions of Financial Accounting Standards Board
("FASB") Interpretation No. 48, Accounting for Uncertainty in Income Taxes, on
January 1, 2007. The Company did not recognize any additional liability for
unrecognized tax benefit as a result of the implementation. As of December 31,
2007, the Company did not increase or decrease liability for unrecognized tax
benefit related to uncertain tax positions in prior period nor did the Company
increase its liability for any uncertain tax positions in the current year.
Furthermore, there were no adjustments to the liability or lapse of statute of
limitation or settlements with taxing authorities.

The Company expects resolution of unrecognized tax benefits, if created, would
occur while the full valuation allowance of deferred tax assets is maintained;
therefore, the Company does not expect to have any unrecognized tax benefits
that, if recognized, would affect the effective tax rate.

The Company will recognize interest and penalty related to unrecognized tax
benefits and penalties as income tax expense. As of December 31, 2007, the
Company has not recognized liabilities for penalty and interest as the Company
does not have liability for unrecognized tax benefits.

The Company is subject to taxation in the US and various states. The Company's
tax years for 2004, 2005, and 2006 are subject to examination by the taxing
authorities. With few exceptions, the Company is no longer subject to U.S.
federal, state, local or foreign examinations by taxing authorities for years
before 2004.


F-17


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

ACCOUNTING FOR STOCK-BASED COMPENSATION

From inception to December 31, 2007, the Company has not granted any stock
options, stock warrants, or adopted any stock option plan.

BASIC AND DILUTED LOSS PER COMMON SHARE

The Company computes loss per common share using SFAS No. 128 "EARNINGS PER
SHARE." Basic loss per common share is computed based on the weighted average
number of shares outstanding for the period. Diluted loss per common share is
computed by dividing net loss by the weighted average shares outstanding
assuming all dilutive potential common shares were issued. There were no
dilutive potential common shares at December 31, 2007 or 2006. Additionally, for
purposes of calculating diluted loss per common share, there were no adjustments
to net loss. See Note 7 for additional information.

COMPREHENSIVE INCOME (LOSS)

SFAS No. 130, "REPORTING COMPREHENSIVE INCOME", established standards for
reporting and display of comprehensive income (loss) and its components in a
full set of general-purpose financial statements. Total comprehensive income
(loss) represents the net change in stockholders' equity (deficit) during a
period from sources other than transactions with stockholders and as such,
includes net earnings or loss. For the Company, the components of other
comprehensive income (loss) are the foreign currency translation adjustments,
which are recorded as components of stockholders' equity (deficit).

SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION

SFAS No. 131, "DISCLOSURES ABOUT SEGMENTS OF AN ENTERPRISE AND RELATED
INFORMATION", established standards for how public companies report information
about segments of their business in their annual financial statements and
requires them to report selected segment information in their quarterly reports
issued to shareholders. It also requires entity-wide disclosures about the
products and services an entity provides, the countries in which it holds
material assets and reports material revenues, and its major customers. The
Company considers itself to operate in one segment and has had no operating
revenues from inception. See Note 2 for information on long-lived assets located
in Germany.

F-18


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS

In June 2006, the FASB issued FASB Interpretation ("FIN") No. 48, "ACCOUNTING
FOR UNCERTAINTY IN INCOME TAXES, AN INTERPRETATION OF FASB STATEMENT NO. 109."
This interpretation clarifies the accounting for uncertainty in income taxes
recognized in an enterprise's financial statements in accordance with SFAS No.
109. FIN No. 48 prescribes a more-likely-than-not recognition threshold and a
measurement attribute for the financial statement recognition and measurement of
tax positions taken (or expected to be taken) in an income tax return. It also
provides guidance on de-recognition, classification, interest and penalties,
accounting in interim periods, disclosure and transition. The requirement to
assess the need for a valuation allowance on net deferred tax assets is not
affected by FIN No. 48. This pronouncement was effective for fiscal years
beginning after December 31, 2006.

In September 2006, the FASB issued SFAS No.157, "FAIR VALUE MEASUREMENTS," which
defines fair value, establishes a framework for measuring fair value in GAAP,
and expands disclosures about fair value measurements. SFAS No. 157 simplifies
and codifies related guidance within GAAP, but does not require any new fair
value measurements. The guidance in SFAS No. 157 applies to derivatives and
other financial instruments measured at estimated fair value under SFAS No. 133,
"ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES" and related
pronouncements. SFAS No. 157 is effective for financial statements issued for
fiscal years beginning after November 15, 2007, and interim periods within those
fiscal years. Management does not expect the adoption of SFAS No. 157 to have a
significant effect on the Company's financial position or results of operation.

On February 15, 2007, the FASB issued SFAS No. 159, "THE FAIR VALUE OPTION FOR
FINANCIAL ASSETS AND FINANCIAL LIABILITIES - INCLUDING AN AMENDMENT OF FASB
STATEMENT NO. 115." This standard permits an entity to measure many financial
instruments and certain other items at estimated fair value. Most of the
provisions of SFAS No. 159 are elective; however, the amendment of SFAS No. 115
("Accounting for Certain Investments in Debt and Equity Securities") applies to
all entities that own trading and available-for-sale securities. The fair value
option created by SFAS No. 159 permits an entity to measure eligible items at
fair value as of specified election dates. Among others, eligible items exclude
(1) financial instruments classified (partially or in total) as permanent or
temporary stockholders' equity (such as a convertible debt security with a
non-contingent beneficial conversion feature) and (2) investments in
subsidiaries and interests in variable interest entities that must be
consolidated. A for-profit business entity will be required to report unrealized
gains and losses on items for which the fair value option has been elected in
its statements of operations at each subsequent reporting date.

F-19


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The fair value option (a) may generally be applied instrument by instrument, (b)
is irrevocable unless a new election date occurs, and (c) must be applied to the
entire instrument and not to only a portion of the instrument. SFAS No. 159 is
effective as of the beginning of the first fiscal year that begins after
November 15, 2007. Early adoption is permitted as of the beginning of the
previous fiscal year provided that the entity (i) makes that choice in the first
120 days of that year, (ii) has not yet issued financial statements for any
interim period of such year, and (iii) elects to apply the provisions of SFAS
No. 157. The adoption of SFAS No. 159 is not expected to have a significant
impact on the Company's future financial statements.

In December 2007, the FASB issued SFAS No. 141(R), "BUSINESS COMBINATIONS." This
pronouncement will significantly change the accounting for business
combinations, expand the concept of a business combination (such that a transfer
of consideration is not necessarily required to trigger acquisition-method
accounting), and amend the GAAP definition of a "business" to include
development stage enterprises. SFAS No. 141(R) will also impact accounting for
the initial consolidation of a variable interest entity that is a business, and
accounting for bargain purchases (as defined) and step acquisitions. When a
business combination constitutes a change in control of the acquiree, the
purchasing entity will generally be required to recognize all (and only) the
assets acquired, liabilities assumed, and noncontrolling interests (formerly
known as "minority interests") at their full fair value as of the acquisition
date, even when the controlling interest acquired is less than a 100% interest.

SFAS No. 141(R) includes substantial new disclosure requirements, and applies
prospectively to business combinations for which the acquisition date is on or
after the beginning of the first annual reporting period beginning after
December 14, 2008. Earlier adoption is prohibited. Such pronouncement must be
adopted concurrently with SFAS No. 160 (see discussion in the following two
paragraphs). Management is currently evaluating what effect SFAS No. 141(R) will
have on the Company's future financial statements.

In December 2007, the FASB also issued SFAS No. 160, "NONTROLLING INTERESTS IN
CONSOLIDATED FINANCIAL STATEMENTS - AN AMENDMENT OF ARB No. 51." SFAS No. 160
establishes new accounting and reporting standards for the noncontrolling
interest in a subsidiary and for the deconsolidation of a subsidiary.
Specifically, this pronouncement requires that a noncontrolling interest
(minority interest) be reported in the stockholders' equity section of the
consolidated balance sheet, with separate identification to distinguish such
interest from the parent company's equity. The components of net income or loss
attributable to the noncontrolling interest will be included in the consolidated
results of operations in their "natural" classifications, and must be disclosed
on the face of the income statement; however, earnings-per-share data will
continue to be based exclusively on amounts attributable to the parent company.
SFAS No. 160 clarifies that changes in a parent company's ownership interest in
a subsidiary that do not result in deconsolidation are equity transactions if
the event does not result in a loss of control.

In addition, SFAS No. 160 requires that a parent company recognize gain or loss
when a subsidiary is deconsolidated; such gain or loss will be measured using
the estimated fair value of the noncontrolling equity investment on the
deconsolidation date. A deconsolidation transaction also establishes a new fair
value basis in any retained noncontrolling ownership interest, requiring
gain/loss recognition for the difference between such new basis and the
historical carrying amount of the remaining ownership interest. This
pronouncement includes expanded disclosure requirements regarding the interests
of the parent company and noncontrolling interests in its subsidiaries. SFAS No.
160 is effective for fiscal years, and interim periods within those fiscal
years, beginning after December 14, 2008; earlier adoption is prohibited.
Management is currently evaluating what effect this pronouncement will have on
the Company's future financial statements.

Other recent accounting pronouncements issued by the FASB (including its
Emerging Issues Task Force), the American Institute of Certified Public
Accountants, and the Securities and Exchange Commission did not or are not
believed by management to have a material impact on the Company's present or
future consolidated financial statements.

F-20


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


2. PROPERTY AND EQUIPMENT

Property and equipment, all located in Kiel, Germany, consist of the following
at December 31, 2007:

Technical and laboratory equipment $ 441,813
Plant 217,671
Leasehold improvements 5,476
Office equipment 32,378
---------
697,338
Less accumulated depreciation and amortization (320,796)
---------

$ 376,542
=========


3. STOCKHOLDERS' DEFICIT

COMMON STOCK

The Company is authorized to issue 300,000,000 shares of $0.001 par value common
stock. The holders of the Company's common stock are entitled to one vote for
each share held of record on all matters to be voted on by those stockholders.

In November 2000, the Company sold and issued 4,800,000 shares of restricted
common stock at $0.001 per share for $4,800 in cash, which was received in
fiscal 2001; therefore the issuance was accounted for as a stock subscription
receivable at December 31, 2000. During the year ended December 31, 2001, the
Company sold and issued an additional 7,200,000 shares of restricted common
stock to related parties at $0.001 per share for $7,200 in cash.

In November 2000, the Company sold and issued 50,000 shares of restricted common
stock at $3.00 per share for $150,000 in cash.

In December 2000, the Company issued 2,500,000 shares of restricted common stock
in connection with the reorganization and stock exchange agreement with PBAG
(see "Organization/Nature of Business" in Note 1).

During the year ended December 31, 2001, the Company issued and sold 450,000
shares of restricted common stock at $3.00 per share to Euro-American GmbH for
$1,350,000 in cash.

F-21


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


3. STOCKHOLDERS' DEFICIT (continued)


COMMON STOCK (continued)

During the year ended December 31, 2001, the Company entered into a subscription
agreement and note receivable for 6,000,000 shares of the Company's restricted
common stock with Euro-American GmbH, valued at $2,400,000. During the year
ended December 31, 2001, 5,286,512 shares of Company common stock were issued
under such subscription, of which approximately $435,000, $680,000, and $794,000
was received against this receivable during the years ended December 31, 2005,
2004, and the period from Inception through December 31, 2003, respectively. In
May 2003, FID-Esprit AG ("FID-Esprit") assumed the common stock subscription
agreement with Euro-American GmbH. The Company received the outstanding balance
in installments through March 28, 2006.

During the year ended December 31, 2002, the Company issued 1,313,922 shares of
restricted common stock in conjunction with the reverse merger with PMI (see
"Organization/Nature of Business" in Note 1).

Additionally, the Company entered into a common stock purchase agreement with
FID-Esprit to purchase up to 1,000,000 shares of the Company's restricted common
stock. Under the agreement, the Company agreed to sell its common stock at a
price per share equal to 40% of the average ask price for the 20 trading days
previous to the date of subscription, as quoted on a public market. However, the
price per share will be no less than $0.40. During the years ended December 31,
2004 and 2003, the Company issued 412,249 and 66,667 shares, respectively, at
$0.40 and $0.60 per share, respectively, for cash. Such agreement was not
renewed after it expired on December 31, 2004.

In November 2005, the Company entered into a common stock purchase agreement
with FID-Esprit to sell 300,000 of the Company's restricted common shares at
$0.84 per share, or $252,000. Concurrent with such transaction, FID-Esprit
issued a promissory note to the Company for $252,000 to be paid in four
installments of $63,000 each, due on March 31, 2006, June 30, 2006, September
30, 2006, and December 31, 2006. The promissory note was paid in full during the
year ended December 31, 2006.

In December 2006, the Company entered into a common stock purchase agreement
with FID-Esprit to sell 1,500,000 of the Company's restricted common shares at
$0.60 per share, or $900,000. Concurrent with such transaction, FID-Esprit
issued a promissory note to the Company for $900,000 to be paid in five
installments of $180,000 each through December 31, 2007. FID-Esprit made a
partial payment of $37,894 against the note in December 2006. FID-Esprit paid
the remaining balance in 2007.

F-22


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


3. STOCKHOLDERS' EQUITY (continued)

PREFERRED STOCK

The Company is authorized to issue up to 20,000,000 shares of preferred stock,
$0.001 par value per share. The Board of Directors has not designated any
liquidation value, dividend rates or other rights or preferences with respect to
any such shares of preferred stock. No preferred stock has been issued as of
December 31, 2007.


4. MINORITY INTEREST

On September 28, 2006, a shareholder of the Company entered into an agreement to
contribute 50,000 Euros (approximately $63,000) to PBAG for a 15% non-voting
interest in PBAG, in accordance with certain provisions of the German Commercial
Code. The party will receive 15% of profits, as determined under the agreement,
not to exceed in any given year 30% of the capital contributed. Additionally,
the party will be allocated 15% of losses, as determined under the agreement,
not to exceed the capital contributed. The party is under no obligation to
provide additional capital contributions to the Company. During the years ended
December 31, 2007 and 2006, losses of $3,978 and $59,026, respectively, were
allocated against the minority stockholder's capital account, which has been
reported as minority interest in net loss of Proteo Biotech on the accompanying
statements of operations.


5. INCOME TAX PROVISION

There is no material income tax expense recorded for the years ended December
31, 2007 or 2006, due to the Company's net losses.

Income tax expense for the years ended December 31, 2007 and 2006 differed from
the amounts computed by applying the U.S. federal income tax rate of 34 percent
for the following reasons:

<TABLE>
<S> <C> <C>
2007 2006
--------- ---------

Income tax benefit at U.S. federal statutory rates $(151,000) $(221,000)
Change in valuation allowance 151,000 221,000
State and local income taxes, net of federal income tax effect 800 800
--------- ---------

$ 800 $ 800
========= =========
</TABLE>

F-23


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


5. INCOME TAX PROVISION (continued)

The Company has a deferred tax asset and like amount of valuation allowance of
approximately $1,374,000 at December 31, 2007, relating primarily to tax net
operating loss carryforwards, as discussed below, and timing differences related
to the recognition of accrued licensing fees..

As of December 31, 2007, the Company had tax net operating loss carryforwards
("NOLs") of approximately $632,000 and $3,607,000 (2,449,000 Euros) available to
offset future taxable Federal and foreign income, respectively. The Federal NOL
expires in varying years through 2025. The foreign net operating loss relates to
Germany and does not have an expiration date.

In the event the Company were to experience a greater than 50% change in
ownership, as defined in Section 382 of the Internal Revenue Code, the
utilization of the Company's tax NOLs could be severely restricted.


6. COMMITMENTS AND CONTINGENCIES

GRANTS

In 2001, the German state of Schleswig-Holstein granted Proteo Biotech AG
approximately 760,000 Euros for the research and development of the Company's
pharmaceutical product Elafin. The grant, as amended, covered the period from
February 1, 2001 to March 31, 2004 if certain milestones were reached by
November 15 of each year, with a possible extension as defined in the agreement.
Such amounts have been reported as a reduction of research and development
expenses in the year of receipt. During the term of this Grant, the Company
received 100% of the expected funds.

In May 2004, the German State of Schleswig-Holstein granted Proteo Biotech AG
approximately 760,000 Euros (the "New Grant") for further research and
development of the Company's pharmaceutical product Elafin. The New Grant, as
amended, covers the period from April 1, 2004 to December 31, 2007 if certain
milestones have been reached by September 30 of each year, with a possible
extension as defined in the agreement. The New Grant covers approximately 50% of
eligible research and development costs and is subject to the Company's ability
to otherwise finance the remaining costs. An additional condition of the New
Grant is that the product is to be developed and subsequently produced in the
German state of Schleswig-Holstein.

F-24


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


6. COMMITMENTS AND CONTINGENCIES (continued)

GRANTS (continued)

The Company qualified to receive approximately 217,000 Euros and 225,000 Euros
(approximately $320,000 and $298,000, respectively) of the New Grant in 2007 and
2006, respectively. New Grant funds approximating 196,000 Euros and 225,000
Euros ($289,000 and $298,000, respectively) have been received (or were due at
year end) and reported as a reduction of research and development expenses for
the years ended December 31, 2007 and 2006, respectively. The remaining
approximately 21,000 Euros (approximately $27,000) expired as of December 31,
2007 and were forfeited. As of December 31, 2007, management believes that all
milestones required by the New Grant have been satisfied.

DR. WIEDOW LICENSE AGREEMENT

On December 30, 2000, the Company entered into a thirty-year license agreement,
beginning January 1, 2001, with Dr. Oliver Wiedow, MD, the owner and inventor of
several patents, patent rights and technologies related to Elafin. In exchange
for an exclusive worldwide license for the intellectual property, the Company
agreed to pay Dr. Wiedow a licensing fee of 110,000 Euros per year, for a term
of six years for a total obligation of 660,000 Euros. Such licensing fees shall
be reduced by payments to Dr. Wiedow during such term for any royalties and for
50% of any salary. Royalties are to be paid quarterly for the term of the
agreement to Dr. Wiedow in the amount of three percent of gross revenues earned
from the sale of products based on the licensed technology. Dr. Wiedow has not
been paid any salary since execution of the agreement.

During 2004, the licensing agreement was amended to require annual payments of
30,000 Euros, to be paid on July 15 of each year, beginning on July 15, 2004.
Such amount can be increased to 110,000 Euros by June 1 of each year based on an
assessment of the Company's financial ability to make such payments. The annual
payments will continue until the entire obligation of 660,000 Euros has been
paid. In December 2007, the Company paid to Dr. Wiedow 30,000 Euros
(approximately $43,000). No other payments have been made to Dr. Wiedow as of
December 31, 2007, which is a technical breach of the agreement. Dr. Wiedow
waived such breach and deferred the prior year payments to calendar 2008.
Expense related to such license totaling $0, $139,000, and $747,000 is included
in general and administrative expense in the accompanying consolidated
statements of operations and comprehensive loss for the years ended December 31,
2007 and 2006, and for the period November 22, 2000 (inception) to December 31,
2007, respectively. No royalty expense has been recognized under the agreement
since the Company has yet to generate any related revenues. At December 31,
2007, the Company has accrued $927,900 of licensing fees payable to Dr. Wiedow.

Dr. Wiedow, who is a director of the Company, beneficially owned approximately
45% of the Company's outstanding common stock as of December 31, 2007.

F-25


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


6. COMMITMENTS AND CONTINGENCIES (continued)

DR. WIEDOW LICENSE AGREEMENT

On October 4, 1999, Dr. Wiedow and AstraZeneca PLC (formerly Zeneca Limited)
entered into an agreement to assign all patents and technology related to Elafin
to Dr. Wiedow in exchange for a royalty of 2% of any future net sales from such
patents and technology. The Company, under its December 30, 2000 licensing
agreement with Dr. Wiedow discussed above, assumed such 2% royalty obligation.

ARTES BIOTECHNOLOGY LICENSE AGREEMENT

On November 15, 2004, the Company entered into an exclusive worldwide license
and collaboration agreement with ARTES Biotechnology GmbH ("ARTES"). This
agreement enables the Company to economically produce Elafin on a large scale by
using the sublicensed yeast HANSENULA POLYMORPHA as a high performance
expression system. Rhein Biotech GmbH ("Rhein") has licensed the yeast to ARTES,
who in-turn sublicensed it to the Company. The agreement has a term of 15 years
with an annual license fee equal to the greater of 10,000 Euros (approximately
$15,000 at December 31, 2007) or 2.5% royalties on the future sales of Elafin.
Should the license agreement between Rhein and ARTES terminate, Rhein will
assume the sublicense agreement with the Company under similar terms.

RHEIN MINAPHARM AGREEMENT

In August 2007, the Company's subsidiary entered into an agreement with Rhein
Minapharm ("Mina") for clinical development, production and marketing of Elafin.
The Company has granted Mina the right to exclusively market Elafin in Egypt and
certain Middle Eastern and African countries. Under this agreement, the Company
recognized $110,000 of miscellaneous income and may receive additional
milestone-payments upon Mina's attainment of certain clinical milestones as well
as royalties on any future net product sales.

LEASES

The Company has entered into several leases for office and laboratory facilities
in Germany, expiring at dates through December 2012. Certain leases have a
rental adjustment in 2007 based on the consumer price index.

Future minimum rental payments under non-cancelable operating leases, in Euros
and equivalent U.S. dollars (based on the December 31, 2007 exchange rate),
approximate the following for the years ending December 31:

(euro) $
-------------- --------

2008 (euro) 18,000 $ 27,000
2009 18,000 27,000
2010 18,000 27,000
2011 18,000 27,000
2012 18,000 27,000
-------------- --------

(euro) 90,000 $135,000
============== ========

F-26


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


6. COMMITMENTS AND CONTINGENCIES (continued)

LEASES (continued)

The Company also leases office space in Irvine, California on a month-to-month
basis. Total rental expense for all facilities for the years ended December 31,
2007 and 2006, and for the period November 22, 2000 (inception) to December 31,
2007 approximated $38,000, $40,000 and $290,000, respectively.

LEGAL

The Company may from time to time be involved in various claims, lawsuits,
disputes with third parties, actions involving allegations of discrimination, or
breach of contract actions incidental to the operation of its business. The
Company is not currently involved in any such litigation which it believes could
have a material adverse effect on its financial condition or results of
operations.

7. LOSS PER COMMON SHARE

The following is a reconciliation of the numerators and denominators of the
basic and diluted loss per common share computations for the years ended
December 31, 2007 and 2006:

<TABLE>
<S> <C>
2007 2006
------------ ------------

Numerator for basic and diluted loss per common share:
Net loss charged to common stockholders $ (445,170) $ (649,868)

Denominator for basic and diluted loss per common share:
Weighted average number of common shares outstanding 23,879,000 23,842,000
------------ ------------

Basic and diluted loss per common share $ (0.02) $ (0.03)
============ ============
</TABLE>



F-27


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21
<SEQUENCE>2
<FILENAME>proteo_10ksbex21.txt
<TEXT>
<PAGE>

EXHIBIT 21

SUBSIDIARIES OF SMALL BUSINESS ISSUER

Proteo Biotech AG, a German joint stock corporation


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>3
<FILENAME>proteo_10ksbex31-1.txt
<TEXT>
<PAGE>

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Birge Bargmann, certify that:

1. I have reviewed this annual report on Form 10-KSB of Proteo, Inc.
(hereinafter referred to as "the small business issuer" or "the registrant");

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 registrant as
of, and for, the periods presented in this report.

4. I am 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 my supervision, to ensure that material
information relating to the small business issuer,
including its consolidated subsidiaries, is made known to
me 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 my 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 my 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 that has materially affected, or is
reasonably likely to affect, the small business issuer's
internal control over financial reporting; and;

5. I have disclosed, based on my most recent evaluation of internal
control over financial reporting, to the small business issuer's auditors and
the audit committee of 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 registrant'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 registrant's internal control over financial
reporting.


Date: April 11, 2008

By: /s/ Birge Bargmann
----------------------------------
Birge Bargmann
Chief Executive Officer
(Principal Executive Officer)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>4
<FILENAME>proteo_10ksbex31-2.txt
<TEXT>
<PAGE>

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Birge Bargmann, certify that:

1. I have reviewed this annual report on Form 10-KSB of Proteo, Inc.
(hereinafter referred to as "the small business issuer" or "the registrant");

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 registrant as
of, and for, the periods presented in this report.

4. I am 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 my supervision, to ensure that material
information relating to the small business issuer,
including its consolidated subsidiaries, is made known to
me 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 my 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 my 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 that has materially affected, or is
reasonably likely to affect, the small business issuer's
internal control over financial reporting; and;

5. I have disclosed, based on my most recent evaluation of internal
control over financial reporting, to the small business issuer's auditors and
the audit committee of 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 registrant'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 registrant's internal control over financial
reporting.


Date: April 11, 2008

By: /s/ Birge Bargmann
-------------------------------
Birge Bargmann
Chief Financial Officer
(Principal Accounting Officer)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>proteo_10ksbex32.txt
<TEXT>
<PAGE>

EXHIBIT 32

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


The undersigned hereby certifies, in her capacity as an officer of
Proteo, Inc. (the "Company"), for purposes of 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to her
knowledge:

(1) the Annual Report of the Company on Form 10-KSB for the period ended
December 31, 2007 fully complies with the requirements of Section 13(a) or
Section 15(d), as applicable, of the Securities Exchange Act of 1934, as
amended; and

(2) the information contained in the Annual Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.


Date: April 11, 2008


/s/ Birge Bargmann

[mylastlovestory]

interesting finde ich folgenden Abschnitt und ich empfehle Jedem der etwas Englisch kann es zwei mal zu lesen:

3. STOCKHOLDERS' DEFICIT

COMMON STOCK

The Company is authorized to issue 300,000,000 shares of $0.001 par value common
stock. The holders of the Company's common stock are entitled to one vote for
each share held of record on all matters to be voted on by those stockholders.

In November 2000, the Company sold and issued 4,800,000 shares of restricted
common stock at $0.001 per share for $4,800 in cash, which was received in
fiscal 2001; therefore the issuance was accounted for as a stock subscription
receivable at December 31, 2000. During the year ended December 31, 2001, the
Company sold and issued an additional 7,200,000 shares of restricted common
stock to related parties at $0.001 per share for $7,200 in cash.

In November 2000, the Company sold and issued 50,000 shares of restricted common
stock at $3.00 per share for $150,000 in cash.

In December 2000, the Company issued 2,500,000 shares of restricted common stock
in connection with the reorganization and stock exchange agreement with PBAG
(see "Organization/Nature of Business" in Note 1).

During the year ended December 31, 2001, the Company issued and sold 450,000
shares of restricted common stock at $3.00 per share to Euro-American GmbH for
$1,350,000 in cash.

F-21


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


3. STOCKHOLDERS' DEFICIT (continued)


COMMON STOCK (continued)

During the year ended December 31, 2001, the Company entered into a subscription
agreement and note receivable for 6,000,000 shares of the Company's restricted
common stock with Euro-American GmbH, valued at $2,400,000. During the year
ended December 31, 2001, 5,286,512 shares of Company common stock were issued
under such subscription, of which approximately $435,000, $680,000, and $794,000
was received against this receivable during the years ended December 31, 2005,
2004, and the period from Inception through December 31, 2003, respectively. In
May 2003, FID-Esprit AG ("FID-Esprit") assumed the common stock subscription
agreement with Euro-American GmbH. The Company received the outstanding balance
in installments through March 28, 2006.

During the year ended December 31, 2002, the Company issued 1,313,922 shares of
restricted common stock in conjunction with the reverse merger with PMI (see
"Organization/Nature of Business" in Note 1).

Additionally, the Company entered into a common stock purchase agreement with
FID-Esprit to purchase up to 1,000,000 shares of the Company's restricted common
stock. Under the agreement, the Company agreed to sell its common stock at a
price per share equal to 40% of the average ask price for the 20 trading days
previous to the date of subscription, as quoted on a public market. However, the
price per share will be no less than $0.40. During the years ended December 31,
2004 and 2003, the Company issued 412,249 and 66,667 shares, respectively, at
$0.40 and $0.60 per share, respectively, for cash. Such agreement was not
renewed after it expired on December 31, 2004.

In November 2005, the Company entered into a common stock purchase agreement
with FID-Esprit to sell 300,000 of the Company's restricted common shares at
$0.84 per share, or $252,000. Concurrent with such transaction, FID-Esprit
issued a promissory note to the Company for $252,000 to be paid in four
installments of $63,000 each, due on March 31, 2006, June 30, 2006, September
30, 2006, and December 31, 2006. The promissory note was paid in full during the
year ended December 31, 2006.

In December 2006, the Company entered into a common stock purchase agreement
with FID-Esprit to sell 1,500,000 of the Company's restricted common shares at
$0.60 per share, or $900,000. Concurrent with such transaction, FID-Esprit
issued a promissory note to the Company for $900,000 to be paid in five
installments of $180,000 each through December 31, 2007. FID-Esprit made a
partial payment of $37,894 against the note in December 2006. FID-Esprit paid
the remaining balance in 2007.

F-22


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


3. STOCKHOLDERS' EQUITY (continued)

PREFERRED STOCK

The Company is authorized to issue up to 20,000,000 shares of preferred stock,
$0.001 par value per share. The Board of Directors has not designated any
liquidation value, dividend rates or other rights or preferences with respect to
any such shares of preferred stock. No preferred stock has been issued as of
December 31, 2007.


4. MINORITY INTEREST

On September 28, 2006, a shareholder of the Company entered into an agreement to
contribute 50,000 Euros (approximately $63,000) to PBAG for a 15% non-voting
interest in PBAG, in accordance with certain provisions of the German Commercial
Code. The party will receive 15% of profits, as determined under the agreement,
not to exceed in any given year 30% of the capital contributed. Additionally,
the party will be allocated 15% of losses, as determined under the agreement,
not to exceed the capital contributed. The party is under no obligation to
provide additional capital contributions to the Company. During the years ended
December 31, 2007 and 2006, losses of $3,978 and $59,026, respectively, were
allocated against the minority stockholder's capital account, which has been
reported as minority interest in net loss of Proteo Biotech on the accompanying
statements of operations.


....Also, a) es gibt etwa 1800 Aktionäre und die Firma hat für jede Aktie sage und schreibe 1 US-Cent bezahlt. Verkauft diese Aktien dem BIG- Großinvestor FID Esprit (Alias Benelux- Trustee oder Euro American) für 40 bis 80 US-Cents. Die Fid Esprit verkauft die erworbenen Anteile an Privatinvestoren für das doppelte bis dreifache und verspricht das ein vermeintlich anderer Großinvestor die angebotenen Anteile für nochmals doppelt oder dreifach soviel kauft, und das mit Garantiezusagen. Wow! Das ist echt ein Deal der Superlative, leider sitzen vermutlich alle 1800 Aktionäre und warte n schon seit Jahren auf das garantierte Geld!

b)Wenn Die Herrschaften in Kiel Kontakte über die Machenschaften der Fid Esprit mitgeteilt bekommen, ist die einzige Antwort einfach nur traurig, nach dem Motto: ....Proteo Kiel kann nichts dafür (aber Hauptsache die Kohlen laufen) und hat auch KEINEN VERTRAG mit Fid Esprit! Komisch nur das im besagten Abschnitt Fid Esprit den Laden finanziert. Wissen die nicht von wem die monatliche Gehaltsabrechnung beglichen wird?

c) die SEC oder FINRA in USA liest den Q-Bericht und sagt sich OK, macht weiter so. Warum? Die SEC ist noch nicht dahinter gekommen, weil sie einfach nicht weist was Fid Esprit macht. Wie lange noch?

d) Kommt die SEC nur ein einziges Mal dahinter, ist der Kurs eingefroren, wette ich drauf.
Das wollen selbst die Aktionäre nicht! Also weiter in diesem Zirkus bis die Hoffnung (Kohle, Heu) ganz weg ist.

e) Halt Stop, am Ende kann Proteo ja in eine weitere Aktie XYXY umgetuscht werden, nicht wahr? Dann haben alle Investoren die Hoffnung wieder (Voraussetztung ist allerdings eine weitere Investition, versteht sich von selbst)....gell

f) Last but not least: gut dass ich meine Dinger schon vor längerer Zeit verdonnert habe, ich habe den Rest in 2001 in echte Aktien gestreut, jetzt geht es mir wieder gut... BYE bye .....ach so, dear money stimmt es dass Schleswig Holstein zum Ende 2007 keine Fördergelder mehr überweist? Ich glaube jetzt werde ich doch noch welche kaufen, weil die sich nur noch über den Aktienpreis finanzieren können....baby it`s worth a small portion buy now

[kaubeuhut]

Antwort auf Beitrag Nr.: 33.913.069 von mylastlovestory am 17.04.08 21:53:03

Benutzerprofil Benutzername: mylastlovestory
Registriert seit: 17.04.2008 [ seit 3 Tagen ]
Benutzer ist momentan: Offline seit dem 17.04.2008 um 22:26
Erstellte Themen: -
Erstellte Antworten: 1 [ Durchschnittlich 0,3805 Beiträge/Tag ]

Na immerhin: Bereits seit drei(3) Tagen registriert und schon einen (1) Beitrag abgeliefert. Der nächste Stern am Börsenexpertenhimmel zieht auf.

Pech, daß er oder sie Nennwert nicht von Subskriptionspreis unterscheiden kann, nicht weiß, was ein Börsenkurs ist, geschweige denn, wie dieser zustande kommt.

Aber weiter so, denn hier kann sich ja jeder austoben

[kaubeuhut]

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ACCESSION NUMBER: 0001019687-08-001608
CONFORMED SUBMISSION TYPE: 10KSB
PUBLIC DOCUMENT COUNT: 5
CONFORMED PERIOD OF REPORT: 20071231
FILED AS OF DATE: 20080414
DATE AS OF CHANGE: 20080414

FILER:

COMPANY DATA:
COMPANY CONFORMED NAME: PROTEO INC
CENTRAL INDEX KEY: 0001063104
STANDARD INDUSTRIAL CLASSIFICATION: [9995]
IRS NUMBER: 880292249
STATE OF INCORPORATION: NV
FISCAL YEAR END: 1231

FILING VALUES:
FORM TYPE: 10KSB
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-30728
FILM NUMBER: 08754149

BUSINESS ADDRESS:
STREET 1: 2102 BUSINESS CENTER DRIVE
CITY: IRVINE
STATE: CA
ZIP: 92612
BUSINESS PHONE: [phone]

MAIL ADDRESS:
STREET 1: 2102 BUSINESS CENTER DRIVE
CITY: IRVINE
STATE: CA
ZIP: 92612

FORMER COMPANY:
FORMER CONFORMED NAME: TRIVANTAGE GROUP INC
DATE OF NAME CHANGE: 20010727

FORMER COMPANY:
FORMER CONFORMED NAME: PAGE ACTIVE HOLDINGS INC /
DATE OF NAME CHANGE: 19991026

FORMER COMPANY:
FORMER CONFORMED NAME: AMERICAN FLINTLOCK CO
DATE OF NAME CHANGE: 19980602
</SEC-HEADER>
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<TYPE>10KSB
<SEQUENCE>1
<FILENAME>proteo_10ksb-123107.txt
<TEXT>
<PAGE>


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

FORM 10-KSB

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended DECEMBER 31, 2007

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: 000-30728

PROTEO, INC.
(Name of Small Business Issuer in Its Charter)

NEVADA 88-0292249
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

2102 BUSINESS CENTER DRIVE, IRVINE, CA 92612
(Address of principal executive offices) (Zip Code)

[phone]
(Issuer's telephone number, including area code)

NONE
(Former name, former address and former fiscal year, if
changed since last report)

Securities registered under Section 12(b) of the Act:

Title of each class Name of each exchange on which registered
- ------------------------------ --------------------------------------------
None None

Securities registered under Section 12(g) of the Act:
Common Stock, par value $0.001

Check whether the issuer is not required to file reports pursuant to Section 13
or 15(d) of the Exchange Act. [ ]

Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [X]

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 issuer's revenues for its most recent fiscal year. $ -0-

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates computed by reference to the price at which the common equity
was sold, or the average bid and asked price of such common equity as of a
specified date within the past 60 days (based upon 10,949,350 shares held by
non-affiliates and the closing price of $1.07 per share for the common stock on
the over-the counter market as of April 7, 2008): approximately $11,715,804.00.

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 23,879,350 at April 7, 2008.

DOCUMENTS INCORPORATED BY REFERENCE

None.

TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE): YES [ ] NO [X]




<PAGE>

PROTEO, INC.
ANNUAL REPORT ON FORM 10-KSB
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007

TABLE OF CONTENTS

PART I
Item 1. Description of Business
Item 2. Description of Property
Item 3. Legal Proceedings
Item 4. Submission of Matters to a Vote of Security Holders

PART II
Item 5. Market for Common Equity and Related Stockholder Matters and
Purchaser of Equity Securities
Item 6. Management's Discussion and Analysis or Plan of Operation
Item 7 Financial Statements
Item 8. Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure
Item 8A (T) Controls and Procedures
Item 8B Other Information

PART III
Item 9. Directors, Executive Officers, Promoters, Control Persons and
Corporate Governance; Compliance With Section 16(a) of the
Exchange Act
Item 10. Executive Compensation
Item 11. Security Ownership of Certain Beneficial Owners
and Management and Related Stockholder Matters
Item 12. Certain Relationships and Related Transactions, and Director
Independence
Item 13. Exhibits
Item 14. Principal Accountant Fees and Services

Signatures


i



<PAGE>

PART I

This Annual Report includes forward-looking statements within the meaning of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such
statements are based on management's beliefs and assumptions, and on information
currently available to management. Forward-looking statements include the
information concerning possible or assumed future results of operations of the
Company set forth under the heading "Management's Discussion and Analysis or
Plan of Operations." Forward-looking statements also include statements in which
words such as "expect," "anticipate," "intend," "plan," "believe," "estimate,"
"consider" or similar expressions are used.

Forward-looking statements are not guarantees of future performance. They
involve risks, uncertainties and assumptions. The Company's future results and
shareholder values may differ materially from those expressed in these
forward-looking statements. Readers are cautioned not to put undue reliance on
any forward-looking statements.

ITEM 1 - DESCRIPTION OF BUSINESS

COMPANY OVERVIEW- HISTORY

Proteo, Inc. is a Nevada corporation formed on December 18, 1992. Proteo, Inc.
has one wholly owned subsidiary, Proteo Biotech AG ("PBAG"), a German
corporation (Proteo, Inc. and PBAG are hereinafter collectively referred to as
the "Company" and "Proteo"). The Company's common stock is currently quoted on
the Over-The-Counter Bulletin Board ("OTCBB") under the symbol "PTEO.OB".
Effective December 31, 2004, the Company's other wholly owned subsidiary, Proteo
Marketing, Inc. ("PMI") was merged into the Company.

PMI was incorporated in the State of Nevada and began operations on November 22,
2000. In December 2000, PMI entered into a reorganization and stock exchange
agreement with PBAG, and as a result, PBAG became a wholly owned subsidiary of
PMI.

During 2001, PMI entered into a Shell Acquisition Agreement (the "Acquisition
Agreement") with Trivantage Group, Inc. ("Trivantage"), a public "shell"
company, in a transaction accounted for as a reverse merger. In accordance with
the Acquisition Agreement, PMI first acquired 176,660,280 shares (1,313,922
post-reverse split shares, as described below) of Trivantage's common stock
representing 90% of the issued and outstanding common stock of Trivantage, in
exchange for a cash payment of $500,000 to the sole shareholder of Trivantage.
Secondly, Trivantage completed a one for one-hundred-fifty reverse stock split.
Finally, effective April 25, 2002, the shareholders of PMI exchanged their
shares of PMI for an aggregate of 20,286,512 shares of Trivantage to effect a
reverse merger between PMI and Trivantage. Subsequently, Trivantage changed its
name to Proteo, Inc.

DESCRIPTION OF BUSINESS

The Company seeks to identify potential drug candidates in the field of
inflammation. The Company's focus is on natural occurring compounds which have
proven superior biologic activity over almost all known compounds. The focus on
natural occurring compounds is driven by the assumption that these compounds
will have fewer side effects regarding metabolism and excretion. Whenever
possible, human peptides and proteins, which have no allergenic potential, will
be used.

The Company intends to develop, manufacture, promote, and market pharmaceuticals
and other biotech products. However, we do not believe that any of our planned
products will produce sufficient revenues in the next four years to support us
financially. We currently expect to sell only small quantities of these products
in the next few business years. As a result, we intend to identify and develop
other potential products. To achieve profitable operations, the Company,
independently or in collaboration with others, must successfully identify,
develop, manufacture, and market proprietary products. The products and
technologies we intend to develop will require significant commitments of
personnel and financial resources.

Our business strategy is focused on the development of pharmaceuticals based on
the body's own tools and weapons to fight inflammatory diseases. Specifically,
we are focusing our research on the development of drugs based on the human
protein Elafin. We strongly believe that Elafin will be useful in the treatment
of cardiac infarction, serious injuries caused by accidents, post-surgery damage
to tissue, and complications resulting from organ transplantation as well as
other diseases.

1


<PAGE>

Elafin is a human protein that naturally occurs in human skin, lungs and the
mammary gland. Elafin is an elastase inhibitor which inhibits the activity of
two enzymes, elastase and proteinase 3. Both of these enzymes are known to be
involved in the breakdown of tissue in various inflammatory diseases. Elafin has
proven in animal tests, that it protects tissue against destruction by these
enzymes. We intend to utilize Elafin as a drug in the treatment of various
diseases and injuries.

We believe a major indication for Elafin is as a drug in the treatment of
cardiac infarction. Cardiac infarction appears as a result of deficiencies in
the blood supply of heart muscles caused by damage to the supplying coronary
vessels. As an immediate result, the heart weakens and the heart muscles are
destroyed. Damage to tissue caused by cardiac infarction will slowly form scars.
Current methods of treatment are aimed at restoring the blood supply to the
heart, either by replacement with new blood vessels (bypass surgery) or by
removal of blood-clots in the coronary vessels (lyse therapy). Animal
experiments have shown that Elafin may be effective in protecting the heart
muscles against destruction after blood supply was interrupted.

Elafin may also be useful in the treatment of the seriously injured. Similar to
damage of heart muscles as described above, much of the damage caused by serious
injuries appear after the injury causing event (e.g.: traffic accidents). In
emergency treatment following accidents, the blood supply, nerve fibers and the
stability of bones and joints are given priority. Due to blood supply
deficiencies, inflammation will occur in injured muscles and in injured vessels.
Because muscles may be destroyed by the inflammation, limbs may have to be
amputated despite successful surgeries. Elafin may protect muscles against
damage caused by inflammation. In animal experiments, rat legs treated with
Elafin remained almost unaffected, although the blood supply of the leg was cut
off for six hours.

Elafin may also be used in the course of heart transplantation. To transplant
hearts successfully, simultaneous treatment with anti-inflammatory drugs is
necessary. Inflammations of transplanted organs are mainly caused either by
rejection of the organ by the immune system or by blood supply deficiencies
during the transplantation. Although various drugs are used today to avoid the
rejection of the organ, such rejections still occur quite often. Therefore,
additional anti-inflammatory drugs are needed, which may potentially prevent
damage caused by blood supply deficiencies. Tests carried out on rabbits at the
University of Toronto have demonstrated the effectiveness of an infusion with
Elafin after a heart transplant. In cases where Elafin was not administered, a
substantial thickening of the coronary vessel walls occurred due to temporary
circulation reduction. Thus, frequently the heart was not sufficiently supplied
with blood. Inflammation and destruction of the heart musculature, which was
partly replaced by functionless scar tissue, was the result. Treatment with
Elafin has been shown to reduce such damage to a minimal level.

Other preliminary data indicate that Elafin may be useful in a broad range of
other applications whether pharmaceutical or not. Therefore, we will attempt to
encourage other scientists, research centers as well as other companies to do
research and development on Elafin for applications other than those described
above. For example, Elafin may also be effective in the treatment of lung
diseases and defects, dermatological diseases and defects, or as an ingredient
to coat medical devices, such as stents, or in cosmetics.

Proteo owns licenses to exclusively develop products based on patents and
filings relating to Elafin, including fourteen issued patents. Of these issued
patents, three were issued in the U.S.

Further, Proteo intends to engage in the research and development of other drugs
and biotechnical products based on natural proteins. We may also be able to
implement unique technologies and biotechnological production procedures that
may enable the Company to offer related services to other companies. Additional
research and development has already begun in the areas of Leech-derived
Tryptase Inhibitors (LDTI), and Bis-acyl ureas. LDTI has been successfully
expressed in yeast, and is an inhibitor of human mast cell tryptase. LDTI
inhibits tryptase-induced human fibroblast proliferation. LDTI may be a drug
candidate for the treatment of keloid formation, scleroderma and asthma.

2


<PAGE>

Bis-acyl ureas have been identified as a relevant compound in yeasts able to
induce inflammation. It activates human neutrophils in vitro and may be a
potential candidate for immune system stimulation. Methods for isolation of
bis-acyl urea from yeasts as well as synthetic production have been established.
Bis-acyl ureas and LDTIs are in the early pre-clinical stage.

Proteo works closely with the interdisciplinary research unit at the University
of Kiel in the identification of drug targets for the prevention and treatment
of infections.

In 2001 we received a grant from the German State of Schleswig-Holstein in the
approximate amount of 790,000 Euros for the research and pre-clinical
development of our pharmaceuticals based on the human protein Elafin. The grant,
as amended, covered the period from February 1, 2001 to March 31, 2004 if
certain milestones were reached by November 15 of each year, with a possible
extension as defined in the agreement. The grant required that we prove our
economic ability to otherwise finance at least 52% of the projected costs on our
own.

In May 2004 we received another grant from the German State of
Schleswig-Holstein in the approximate amount of 760,000 Euros for further
research and development of our pharmaceutical product Elafin. The 2004 grant
covered the period from April 1, 2004 to March 31, 2007 if certain milestones
were reached by September 30 of each year. The 2004 grant was extended through
December 31, 2007. The 2004 grant covered 49.74% of eligible research and
development costs and was subject to our ability to otherwise finance the
remaining 50.26% of the costs. An additional condition of the grant was that the
product had to be developed and subsequently produced in the German State of
Schleswig-Holstein.

On November 15, 2004, we entered into an exclusive worldwide license and
collaboration agreement with ARTES Biotechnology GmbH ("ARTES"). This license
agreement enables us to economically produce Elafin on a large scale by using
the sublicensed yeast HANSENULA POLYMORPHA as a high performance expression
system. Rhein Biotech GmbH ("Rhein") has licensed the yeast to ARTES, who
in-turn sublicensed it to us. The agreement has a term of 15 years with an
annual license fee of 10,000 Euros or 2.5% royalties on the future sales of
Elafin, if greater. Should the license agreement between Rhein and ARTES
terminate, Rhein will assume the sublicense agreement with the Company under
similar terms.

After developing a production procedure for Elafin, Proteo has initiated
clinical trials to achieve governmental approval for the use of Elafin as a drug
in Europe. For this purpose, Proteo has contracted Eurogentec, an experienced
Contract Manufacturing Organization (CMO) located in Belgium to produce Elafin
in accordance with GMP (good manufacturing practices) standards as required for
clinical trials.

In December 2005, Proteo successfully completed a first Phase I trial for
Elafin. Elafin was tested on 32 healthy male volunteers in a
single-ascending-dose, double blind, randomized, placebo-controlled trial to
evaluate its tolerability and safety at the Institut fur Klinische Pharmakologie
in Kiel, Germany. All intravenously applied doses were well tolerated. No severe
adverse events occurred.

In 2006, the Company gathered and evaluated additional data from the results of
the Phase I study. In addition, during 2006, we established a procedure to
incorporate Elafin as an active ingredient in cream.

In September 2006, Windhover Information, Inc., an established provider of
business information for decision makers in the biotechnology and pharmaceutical
industries, chose the Company's Elafin project as one of the top 10 most
interesting cardiovascular projects. We presented the Elafin project at the
"Windhover's Therapeutic Alliances Cardiovascular Conference" in Chicago on
November 16, 2006.

In September 2006 we filed an application with the EMEA (European Medicines
Agency) to obtain orphan drug status in the European markets for Elafin to be
used in the treatment of pulmonary hypertension. Subsequent to December 31,
2006, the Committee for Orphan Medical Products (COMP) of the EMEA issued a
positive opinion recommending the granting of orphan medicinal product
designation for Elafin for treatment of pulmonary arterial hypertension and
chronic thromboembolic pulmonary hypertension. On March 20, 2007 the orphan drug
designation became effective upon adoption of the recommendation by the European
Commission.

3


<PAGE>

In July 2007, we entered into an agreement with the University of Alberta,
Canada to cooperate in research on Elafin for the treatment of pulmonary
diseases in neonates. Animal experiments on newborn rats will be carried out by
Dr. Bernard Thebaud, associate professor at the Department of Pediatrics and
Neonatology.

In August 2007, the Company's subsidiary entered into a license agreement with
Rhein Minapharm ("Mina"), a well established Egyptian pharmaceutical company
based in Cairo, for clinical development, production and marketing of Elafin. We
have granted Mina the right to exclusively market Elafin in Egypt and certain
Middle Eastern and African countries.

In January 2008, we entered into an agreement with Stanford University,
California to cooperate in preclinical studies related to Elafin's treatment of
pulmonary arterial hypertension.

Our goal is to obtain our first governmental regulatory approval for the first
indication of our initial product in 2012. It should be noted that the first
indication, if successfully developed, would have a market potential
substantially smaller than the overall market of Elafin for more widespread
applications such as for the treatment of cardiac infarction.

OUR SUBSIDIARY

PBAG, our operating subsidiary, was formed in Kiel, Germany on April 6, 2000.
PBAG is in the business of developing pharmaceutical products based on the human
protein called Elafin and possible by-products thereof as well as related
technologies. The President and CEO of PBAG is currently Birge Bargmann. The
directors of PBAG are Oliver Wiedow, MD, Barbara Kahlke, PhD and Florian Wegner.
PBAG has five full-time employees and one part-time employee as of December 31,
2007.

To date, the Company has not had profitable operations. Furthermore, we do not
anticipate that we will have profitable operations in the near future.

COLLABORATION WITH OTHER COMPANIES

In an effort to provide the Company with some revenue which will be utilized in
the implementation of our business plan, our Subsidiary periodically may provide
research and development and manufacturing services as a sub-contractor and/or
consultant to unaffiliated companies which do not compete with the Company. We
plan to explore such opportunities if deemed advantageous to the Company.

Further, the Company actively seeks outlicensing partners, co-development
partnerships and other collaborations with third parties to generate revenues
and/or to expedite the Company's product development. However, there can be no
assurance that the Company's efforts to build such alliances will be successful
at any time or in any way.

COMPETITION

The market for our planned products and technologies is highly competitive, and
we expect competition to increase. We compete with many other health care
research product suppliers, most of which are larger than Proteo. Some of our
anticipated competitors offer a broad range of equipment, supplies, products and
technology, including many of the products and technologies contemplated to be
offered by us. To the extent that customers exhibit loyalty to the supplier that
first supplies them with a particular product or technology, our competitors may
have an advantage over us with respect to such products and technologies.
Additionally, many of our competitors have, and will continue to have, greater
research and development, marketing, financial and other resources than us and,
therefore, represent and will continue to represent significant competition in
our anticipated markets. As a result of their size and the breadth of their
product offering, certain of these companies have been and will be able to
establish managed accounts by which, through a combination of direct computer
links and volume discounts, they seek to gain a disproportionate share of orders
for health care products and technologies from prospective customers. Such
managed accounts present significant competitive barriers for us. It is
anticipated that we will benefit from their participation in selected markets,
which, as they expand, may attract the attention of our competitors. The
business of research and development of pharmaceuticals for the treatment of
cardiac infarction is intensely competitive. Major companies with immense
financial and personal resources are also engaged in this field.

4


<PAGE>

Elastase inhibitors such as Elafin, have been under research and development in
the pharmaceutical industry for more than ten years. Currently, there have been
more than 200 related patents granted. Most of these substances are produced
synthetically, and are not applicable in the treatment of cardiac infarctions.
Three other elastase inhibitors, secretory leukoprotease inhibitor (SLPI),
alpha-1-antitrypsin and recombinant monocyte/neutrophil elastase inhibitor
(rM/NEI), are similar to Elafin in that they are of human descent and may be
applied like Elafin principally. From the human protein inter-alpha-trypsin
inhibitor a highly elastase inhibitor, depelestat, has been engineered. Four
other substances, ZD8321, ZD0892, SSR69071 and ONO-5046, are artificial elastase
inhibitors which may have effectiveness comparable to that of Elafin.

SECRETORY LEUKOPROTEASE INHIBITOR (SLPI)

Amgen, Inc. is the owner of the patent for SLPI. Amgen purchased this patent by
acquiring Synergen, Inc. SLPI is quite similar to Elafin. Nevertheless, SLPI has
some disadvantages in its intended application in the treatment of cardiac
infarctions and in the treatment of serious injuries. It is only effective
against one (leukocyte-elastase) of the two (leukocyte-elastase and proteinase
3) major enzymes which destroy tissue, while Elafin has shown effectiveness
against both. Therefore, Elafin is probably more effective. Furthermore, SLPI is
not as stable as Elafin, which is a disadvantage in its distribution as a drug.
SLPI was discovered much earlier than Elafin; therefore, the remaining term of
the covering patent should be shorter than that related to Elafin. Amgen has not
mentioned any further development of SLPI as a drug candidate since its annual
report for 1998.

ALPHA-1-ANTITRYPSIN

Human blood naturally contains relatively large amounts of alpha-1-antitrypsin.
Research into the use of alpha-1-antitrypsin for the treatment of cardiac
infarctions, shock and other serious inflammations has been ongoing for the last
twenty years. Compared to Elafin, however, there are some substantial problems
related to alpha-1-antitrypsin. For example, alpha-1-antitrypsin is not as
stable as Elafin, and therefore, from the scientific point of view it is
probably not as effective as Elafin. Alpha-1-antitrypsin has received approval
for the use as a drug in genetic deficiency of alpha-1-antitrypsin and is
currently produced from pooled human sera. Recombinant production of
alpha-1-antitrypsin has been established by Arriva Pharmaceuticals Inc., and
clinical trials for the use as an aerosol for the treatment of
alpha-1-antitrypsin deficiency have been conducted by Baxter Bioscience.

RECOMBINANT MONOCYTE/NEUTROPHIL ELASTASE INHIBITOR (RM/NEI)

This compound of human descent is currently under development for the treatment
of cystic fibrosis and to be applied by inhalation devices. IVAX Corporation has
entered into a license option agreement with the Center for Blood Research, Inc.
(CBR), an affiliate of the Harvard Medical School, which holds the rights to
this compound.

ONO-5046 (SIVELESTAT)

Ono Pharmaceutical Co. Ltd., in Japan has developed the synthetic elastase
inhibitor ONO-5046 (Sivelestat). Ono received approval in 2002 to use Sivelestat
as a drug for the indication "Amelioration of acute lung disease accompanying
generalized inflammatory syndrome" in Japan and in Korea (Dong-A, Pharmaceutical
Co., Ltd., Seoul) in 2006.

DEPELESTAT

A further elastase inhibitor has been engineered from the Kunitz domain of human
inter-alpha-trypsin inhibitor. This peptide was found to be a potent inhibitor
of human elastase, however, other than in the case of Elafin, it is reported
that no other proteases, including proteinase 3, were inhibited. Currently
Depelestat is being clinically developed by Debiopharm for use as an aerosol in
the treatment of cystic fibrosis.

GOVERNMENT REGULATION

The Company is, and will continue to be, subject to governmental regulation
under the Occupational Safety and Health Act, the Environmental Protection Act,
the Toxic Substances Control Act, and other similar laws of general application,
as to all of which we believe we are in material compliance. Any future change
in, and the cost of compliance with, these laws and regulations could have a
material adverse effect on the business, financial condition, and results of
operation of the Company.

5


<PAGE>

Because of the nature of our operations, the use of hazardous substances, and
our ongoing research and development and manufacturing activities, we are
subject to stringent federal, state and local and foreign laws, rules,
regulations and policies governing the use, generation, manufacturing, storage,
air emission, effluent discharge, handling and disposal of certain materials and
wastes. Although we believe that we are in material compliance with all
applicable governmental and environmental laws, rules, regulations and policies,
there can be no assurance that the business, financial conditions, and results
of operations of the Company will not be materially adversely affected by
current or future environmental laws, rules, regulations and policies, or by
liability occurring because of any past or future releases or discharges of
materials that could be hazardous.

Additionally, the clinical testing, manufacture, promotion and sale of a
significant majority of the products and technologies of the Company, if those
products and technologies are to be offered and sold in the United States, are
subject to extensive regulation by numerous governmental authorities in the
United States, principally the FDA and corresponding state regulatory agencies.
Additionally, to the extent those products and technologies are to be offered
and sold in markets other than the United States, the clinical testing,
manufacture, promotion and sale of those products and technologies will be
subject to similar regulation by corresponding foreign regulatory agencies. In
general, the regulatory framework for biological health care products is more
rigorous than for non-biological health care products. Generally, biological
health care products must be shown to be safe, pure, potent and effective. There
are numerous state and federal statutes and regulations that govern or influence
the testing, manufacture, safety, effectiveness, labeling, storage, record
keeping, approval, advertising, distribution and promotion of biological health
care products. Non-compliance with applicable governmental requirements can
result in, among other things, fines, injunctions, seizures of products, total
or partial suspension of product marketing, failure of the government to grant
pre-market approval, withdrawal of marketing approvals, product recall and
criminal prosecution.

PATENTS, LICENSES & ROYALTIES

The Company owns licenses to exclusively develop products based on patents and
filings including fourteen patents already issued. The issued patents include
three patents which have been issued in the United States of America. The
Company does not have title to any patents; title to the patents rests with Dr.
Wiedow.

Dr. Wiedow will receive three percent of the gross revenues of the Company from
products based on patents of which he was the principal inventor. Further, Dr.
Wiedow will receive license fees in the amount of 110,000 Euros per year for a
period of six years through December 31, 2006, for an aggregate of 660,000
Euros, and refund all expenses to maintain the patents (patent fees, legal fees,
etc.). Such license fees shall be reduced by any other royalties paid to Dr.
Wiedow. As of the date of this annual report, 30,000 Euros (approx. $43,000)
have been paid to Dr. Wiedow, and 630,000 Euros (approx. $928,000) have been
accrued as a liability.

AstraZeneca Inc. (formerly Zeneca Inc., formerly ICI Pharmaceuticals Inc.) had
held the patents for Elafin for several years and has significantly contributed
to the current knowledge. Therefore, AstraZeneca Inc. will receive two percent
of the net sales of the Company from products based on patents in which Dr.
Wiedow was the principal inventor. Proteo holds an exclusive license for the
following patents:

USA US 5464822
USA US 6245739
USA US 6893843
EU EP 0402068
Japan JP 2989853
Australia AU 636148
Canada CA 2018592
Finland FI 902880
Ireland IE 070520
Israel IL 094602
New Zealand NZ 233974
Norway NO 177716
Portugal PT 094326
South Africa ZA 9004461

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<PAGE>

EMPLOYEES

As of December 31, 2007 Proteo had five full-time employees, all working at our
offices in Germany.

ITEM 2 - DESCRIPTION OF PROPERTY

In October 2001, the Company entered into several leases for office and
laboratory facilities in Germany beginning January 2002 and expiring at dates
through December 2011. One lease for office space at Kiel, Germany was canceled
as of October 31, 2005. In June 2004 and in August 2005, we entered into leases
for lab and office space and additional office space, respectively, expiring
through December 2008. Certain leases have a rental adjustment in 2007 based on
the consumer price index. The aggregate monthly rental under the foregoing
leases is approximately $3,500.

ITEM 3 - LEGAL PROCEEDINGS

The Company may from time to time be involved in various claims, lawsuits, and
disputes with third parties, actions involving allegations of discrimination, or
breach of contract actions incidental to the operation of its business. The
Company is not currently involved in any litigation which it believes could have
a materially adverse effect on its financial condition or results of operations.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

PART II

ITEM 5 - MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND PURCHASER
OF EQUITY SECURITIES

Our common stock is quoted on the OTC Bulletin Board under the symbol PTEO.OB.
The table below gives the range of high and low bid prices of our common stock
for the fiscal years ended December 31, 2007 and 2006 based on information
provided by the OTC Bulletin Board. Such over-the-counter market quotations
reflect inter-dealer prices, without mark-up, mark-down or commissions and may
not necessarily represent actual transactions or a liquid trading market.

COMMON STOCK PRICES

YEAR PERIOD HIGH LOW
------- --------
2007 First Quarter $0.71 $0.36
Second Quarter 0.67 0.46
Third Quarter 0.65 0.28
Fourth Quarter 1.01 0.30


2006 First Quarter $1.55 $0.56
Second Quarter 1.01 0.51
Third Quarter 0.98 0.41
Fourth Quarter 0.75 0.36

On April 7, 2008, the last sales price of our common stock was $1.07 per share.
No cash dividends have been paid on our common stock for the 2007 and 2006
fiscal years and no change of this policy is under consideration by the Board of
Directors. The payment of cash dividends in the future will be determined by the
Board of Directors in light of conditions then existing, including our Company's
earnings (if any), financial requirements, and opportunities for reinvesting
earnings (if any), business conditions, and other factors. There are otherwise
no restrictions on the payment of dividends.

NUMBER OF SHAREHOLDERS

As of March 21, 2008, the number of shareholders of record of the Company's
common stock was 1,808.

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PENNY STOCK

Until we satisfy the initial listing requirements for the Nasdaq Stock Market
and successfully apply to have our shares of common stock listed thereon, the
public trading, if any, of our common stock will be on the OTCBB. As a result,
an investor may find it more difficult to dispose of, or to obtain accurate
quotations as to the price of, our common stock. Our common stock is subject to
provisions of Section 15(g) and Rule 15g-9 of the Exchange Act, commonly
referred to as the "penny stock rule." Section 15(g) sets forth certain
requirements for transactions in penny stocks, and Rule 15g-9(d) incorporates
the definition of "penny stock" that is found in Rule 3a51-1 of the Exchange
Act. The SEC generally defines "penny stock" to be any equity security that has
a market price less than $5.00 per share, subject to certain exceptions. If our
common stock is deemed to be a penny stock, trading in the shares will be
subject to additional sales practice requirements on broker-dealers who sell
penny stocks to persons other than established customers and accredited
investors. "Accredited investors" are persons with a net worth exceeding
$1,000,000 or annual income exceeding $200,000 (or $300,000 together with their
spouse) in each of the two most recent fiscal years and reasonably expect to
reach the same income level in the current year. For transactions covered by
these rules, broker-dealers must make a special suitability determination for
the purchase of such security and must have the purchaser's written consent to
the transaction prior to the purchase. Additionally, for any transaction
involving a penny stock, unless exempt, the rules require the delivery, prior to
the first transaction, of a risk disclosure document, prepared by the SEC,
relating to the penny stock market. A broker-dealer also must disclose the
commissions payable to both the broker-dealer and the registered representative,
and current quotations for the securities. Finally, monthly statements must be
sent disclosing recent price information for the penny stocks held in an account
and information on the limited market in penny stocks. Consequently, these rules
may restrict the ability of a broker-dealer to trade and/or maintain a market in
our common stock and may affect the ability of our shareholders to sell their
shares.

DIVIDEND POLICY

To date, we have declared no cash dividends on our Common Stock, and do not
expect to pay cash dividends in the near term. We intend to retain future
earnings, if any, to provide funds for operation of our business.

EQUITY COMPENSATION PLAN INFORMATION

We have no equity compensation plans as of December 31, 2007.

RECENT SALES OF UNREGISTERED SECURITIES

On December 22, 2006, we entered into a Common Stock Purchase Agreement (the
"Agreement") with FIDEsprit AG, a Swiss corporation (the "Investor"). Pursuant
to the Agreement, we agreed to issue and sell to the Investor 1,500,000 shares
of our common stock at a purchase price of $0.60 per share, for an aggregate
purchase price of $900,000. In payment of the purchase price, the Investor
delivered to us a promissory note in the principal amount of $900,000. The
promissory note does not bear any interest, and is payable in five installments
of $180,000, with the first payment due on the date the shares were issued, on
December 22, 2006, followed by four quarterly payments commencing on March 31,
2007, June 30, 2007, September 30, 2007 and December 31, 2007. The aggregate
purchase price of $900,000 has been paid in full in installments through
December 14, 2007.

In November 2005, the Company entered into a common stock purchase agreement to
sell 300,000 shares of the Company's restricted common stock at a price of $0.84
per share or $256,000 in exchange for a promissory note, bearing no interest.
Payments under the promissory note must be made in four equal installments of
$64,000 each, falling due on March 31, 2006, June 30, 2006, September 30, 2006
and December 31, 2006, respectively. This promissory note has been paid in full.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

CAUTIONARY STATEMENTS:

This Annual Report on Form 10-KSB contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Exchange Act. The Company intends that such forward-looking statements be
subject to the safe harbors created by such statutes. The forward-looking
statements included herein are based on current expectations that involve a
number of risks and uncertainties. Accordingly, to the extent that this Annual


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Report contains forward-looking statements regarding the financial condition,
operating results, business prospects or any other aspect of the Company, please
be advised that the Company's actual financial condition, operating results and
business performance may differ materially from that projected or estimated by
management in forward-looking statements. The differences may be caused by a
variety of factors, including but not limited to adverse economic conditions,
intense competition, including intensification of price competition and entry of
new competitors and products, adverse federal, state and local government
regulation, inadequate capital, unexpected costs and operating deficits,
increases in general and administrative expenses, and other specific risks that
may be alluded to in this Annual Report or in other reports issued by the
Company. In addition, the business and operations of the Company are subject to
substantial risks that increase the uncertainty inherent in the forward-looking
statements. The inclusion of forward looking statements in this Annual Report
should not be regarded as a representation by management or any other person
that the objectives or plans of the Company will be achieved.

The Company currently generates minor nonoperating revenue from its
out-licensing activities and does not expect to report any significant operating
revenue until the successful development and marketing of its planned
pharmaceutical and other biotech products. Additionally, after the launch of the
Company's products, there can be no assurance that the Company will generate
positive cash flow and there can be no assurance as to the level of operating
revenues, if any, the Company may actually achieve from its planned principal
operations.

PLAN OF OPERATION

The Company specializes in the research, development and marketing of drugs for
inflammatory diseases with Elafin as its first project. The Company's management
deems Elafin to be one of the most prospective substances in the treatment of
serious tissue and muscle damage. Independently conducted animal experiments
have indicated that Elafin may have benefits in the treatment of tissue and
muscle damage caused by insufficient oxygen supply and therefore may be useful
in the treatment of heart attacks, serious injuries and in the course of organ
transplants. Other applications have yet to be determined.

The Company intends to implement Elafin as a drug in the treatment of
inflammatory diseases, and intends to achieve governmental approval in Europe
first. Currently, management estimates that it will take at least four years to
achieve its first governmental approval for the use of Elafin as a drug for the
first indication.

The Company's success will depend on its ability to prove that Elafin is well
tolerated by humans and its efficacy in the indicated treatment. There can be no
assurance that the Company will be able to develop feasible production
procedures in accordance with Good Manufacturing Practices ("GMP") standards, or
that Elafin will receive any governmental approval for its use as a drug in any
of the intended applications.

A necessary pre-requisite for the commencement of clinical trials was the
production of Elafin according to GMP Standards. In anticipation of commencing
clinical trials, on March 18, 2005 we entered into a contractual agreement with
Eurogentec S.A., located in Liege, Belgium, an experienced Contract
Manufacturing Organization (CMO), for the production of a required amount of
Elafin according to GMP standards. The authorities demand strict standards for
the manufacture of medicines for clinical testing, and the GMP production of
Elafin for clinical trials must comply with a large number of rules and
regulations. Eurogentec completed its required production run of Elafin which
was used in our clinical trial discussed below.

In April 2005, we entered into an agreement with the German Institut fur
klinische Pharmakologie ("IKP"), an experienced Contract Research Organization
(CRO), to assist us with our initial clinical trial involving Elafin, to
evaluate the tolerability, safety, pharmacokinetic and dynamics of Elafin
pursuant to a clinical protocol [e.g. with healthy young men]. In November 2005
we commenced, and in December 2005, we successfully completed, a first Phase I
trial for Elafin. Elafin was tested on 32 healthy male volunteers in a
single-ascending-dose, double blind, randomized, placebo-controlled trial to
evaluate tolerability and safety at the IKP in Kiel, Germany. All intravenously
applied doses were well tolerated. No severe adverse events occurred.

9


<PAGE>

During 2006, the Company gathered and evaluated additional data from the results
of the Phase I study, and we are currently in the process of planning a Phase II
clinical trial. The design of a first Phase II study, which is intended to prove
Elafin's efficacy in a certain indication, is substantially complete. The
realization of such Phase II study will depend widely on the Company's ability
to acquire sufficient funds in its financial activities. In addition, during
2006, we established a procedure to incorporate Elafin as an active ingredient
in cream.

In September 2006 we filed an application with the EMEA (European Medicines
Agency) to obtain orphan drug status in the European markets for Elafin to be
used in the treatment of pulmonary hypertension. Subsequent to December 31,
2006, the Committee for Orphan Medical Products (COMP) of the EMEA adopted a
positive opinion recommending the granting of orphan medicinal product
designation for Elafin for treatment of pulmonary arterial hypertension and
chronic thromboembolic pulmonary hypertension. The orphan drug designation
became effective on March 20, 2007 upon adoption of the recommendation by the
European Commission.

In September 2006, Windhover Information, Inc., an established provider of
business information for decision makers in the biotechnology and pharmaceutical
industries, chose our Elafin project as one of the top 10 unlicensed
cardiovascular compounds. We presented the Elafin project at the "Windhover's
Therapeutic Alliances Cardiovascular Conference" in Chicago, United States on
November 16, 2006.

In July 2007, we entered into an agreement with the University of Alberta,
Canada to cooperate in research on Elafin for the treatment of pulmonary
diseases in neonates. Proteo will initially provide support for animal
experiments with its lead product on newborn rats to be carried out by Dr.
Bernard Thebaud, associate professor at the Department of Pediatrics and
Neonatology and a recognized authority in this area, with profound knowledge of
animal models and substantial clinical experience.

In August 2007, the Company's subsidiary entered into an agreement with Mina for
clinical development, production and marketing of Elafin. We have granted Mina
the right to exclusively market Elafin in Egypt and certain Middle Eastern and
African countries. Proteo received an initial payment of $110,000 upon execution
of the agreement, and may receive milestone-payments upon Mina's attainment of
certain clinical milestones as well as royalties on future net product sales. In
addition, Mina will take over the funding of clinical research activities for
the designated region. The agreement schedules the transfer of the
biotechnological production process of Elafin to Cairo.

In January 2008 we entered into an agreement with Stanford University, in
California, to cooperate in preclinical studies related to Elafin's treatment of
pulmonary arterial hypertension. Proteo will provide support for animal
experiments conducted by Marlene Rabinovitch, Research Director of the Vera
Moulton Wall Center for Pulmonary Vascular Disease at Stanford University who is
a renowned expert in the field, and her group at the university.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception we have raised a total of approximately $4,983,000 from the
sale of 20,065,428 shares of our common stock, of which 6,585,487 shares,
300,000 shares and 1,500,000 shares have been sold at $0.40 per share, $0.84 per
share and $0.60 per share, respectively, under stock subscription agreements in
the amount of approximately $2,035,000, $252,000 and $900,000, respectively.

In May 2004, the German State of Schleswig-Holstein granted Proteo Biotech AG
approximately 760,000 Euros (the "2004 Grant") for further research and
development of the Company's pharmaceutical product Elafin. The 2004 Grant, as
amended, covers the period from April 1, 2004 to December 31, 2007 if certain
milestones have been reached by September 30 of each year, with a possible
extension as defined in the agreement. The 2004 Grant covers 49.74% of eligible
research and development costs and is subject to the Company's ability to
otherwise finance the remaining costs. An additional condition of the grant is
that the product is to be developed and subsequently produced in the German
state of Schleswig-Holstein.

The Company qualified to receive approximately 196,109 Euros and 225,000 Euros
under the 2004 Grant in 2007 and 2006, respectively. In 2007, we received grant
funds approximating 172,000 Euros and qualified for an additional 23,623 Euros
recorded as a receivable as of December 31, 2007. We did not qualify for
approximately 21,000 Euros under the 2004 Grant by December 31, 2007 which
amount was not rolled forward and forfeited. As of December 31, 2007, management
believes that all milestones required by the 2004 Grant have been satisfied.

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<PAGE>

The Company has cash approximating $803,000 as of December 31, 2007. This is a
significant increase over the December 31, 2006 cash balance of approximately
$269,000, due to receipts from the 2004 Grant, the payment received from Mina
and the payments on the promissory note received from the Investor in connection
with our stock sale in December 2006.

Management believes that the Company will not generate any significant revenues
for at least the next four years, nor will it have sufficient cash to fund
operations. As a result, the Company's success will largely depend on its
ability to secure additional funding through the sale of its Common Stock and/or
the sale of debt securities. There can be no assurance, however, that the
Company will be able to consummate debt or equity financing in a timely manner,
or on a basis favourable to the Company, if at all.

CAPITAL EXPENDITURES

None significant.

GOING CONCERN

The Company's independent registered public accounting firm has stated in their
Auditor's Report included in this Form 10-KSB that the Company will require a
significant amount of additional capital to advance the Company's products to
the point where they may become commercially viable and has incurred significant
losses since inception. These conditions, among others, raise substantial doubt
about the Company's ability to continue as a going concern.

The Company intends to fund operations through grant proceeds and increased
equity financing arrangements which management believes may be insufficient to
finance its capital expenditures, working capital and other cash requirements
for the fiscal year ending December 31, 2008. Therefore, the Company will be
required to seek additional funds to finance its long-term operations. The
successful outcome of future activities cannot be determined at this time and
there is no assurance that if achieved, the Company will have sufficient funds
to execute its intended business plan or generate positive operating results.

INFLATION

Management believes that inflation has not had a material effect on the
Company's results of operations.

OFF BALANCE SHEET ARRANGEMENTS

The Company does not currently have any off balance sheet arrangements.

ACCOUNTING MATTERS

CRITICAL ACCOUNTING POLICIES

In December 2001, the SEC requested that all registrants list their three to
five most "critical accounting policies" in Item 6 of this Annual Report. The
SEC indicated that a "critical accounting policy" is one which is both important
to the portrayal of the Company's financial condition and results, and requires
management's most difficult, subjective or complex judgments, often as a result
of the need to make estimates about the effect of matters that are inherently
uncertain. We believe that the following accounting policies fit this
definition:

GRANTS - GENERAL

The Company received grants from the German government which are used to fund
research and development activities and the acquisition of equipment. Grants for
the reimbursement of research and development expenses are offset against
research and development expenses in the accompanying consolidated statements of
operations when the related expenses are incurred. Grants related to the
acquisition of tangible property are recorded as a reduction of the property's
historical cost.

FOREIGN CURRENCY TRANSLATION

Assets and liabilities of the Company's German operations are translated into
U.S. dollars at period-end exchange rates. Grants and expenses are translated at
weighted average exchange rates for the period. Net exchange gains or losses
resulting from such translation are excluded from net loss but are included in
comprehensive income and loss and accumulated in a separate component of
stockholders' equity (deficit). Such amount approximated $370,000 at December
31, 2007.

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The Company records payables related to a licensing agreement in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 52, "Foreign Currency
Translation." Quarterly commitments under such agreement are denominated in
Euros. For each reporting period, the Company translates the quarterly amount to
US dollars at the exchange rate effective on that date. If the exchange rate
changes between when the liability is incurred and the time payment is made, a
foreign exchange gain or loss results. The Company paid approximately $43,000
under this licensing agreement during the year ended December 31, 2007, and did
not realize any significant foreign currency exchanges gains or losses. Prior to
2007 the Company made no payments under such agreement.

Additionally, the Company computes a foreign exchange gain or loss at each
balance sheet date on all recorded transactions denominated in foreign
currencies that have not been settled. The difference between the exchange rate
that could have been used to settle the transaction at the date it occurred, and
the exchange rate at the balance sheet date, is the unrealized gain or loss
recognized in current operations. The Company recorded an unrealized foreign
currency transaction loss of approximately $101,000 for the year ended December
31, 2007. The Company recorded an unrealized foreign currency transaction loss
of approximately $81,000 for the year ended December 31, 2006.

RISKS AND UNCERTAINTIES

The Company maintains its cash in foreign accounts and not in bank depository
accounts insured by the Federal Deposit Insurance Corporation. The Company has
not experienced any losses in these accounts.

The Company's research and development activities and most of its assets are
located in Germany. The Company's operations are subject to various political,
economic, and other risks and uncertainties inherent in Germany and the European
Union ("EU").

INCOME TAXES

We account for income taxes under the asset and liability method, which requires
the recognition of deferred tax assets and liabilities for the expected future
tax consequences of events that have been included in the financial statements.
Under this method, deferred tax assets and liabilities are determined based on
the differences between the financial statements and tax basis of assets and
liabilities using enacted tax rates in effect for the year in which the
differences are expected to reverse. The effect of a change in tax rates on
deferred tax assets and liabilities is recognized in income in the period that
includes the enactment date.

We record net deferred tax assets to the extent we believe these assets will
more likely than not be realized. In making such determination, we consider all
available positive and negative evidence, including scheduled reversals of
deferred tax liabilities, projected future taxable income, tax planning
strategies and recent financial operations. In the event we were to determine
that we would be able to realize our deferred income tax assets in the future in
excess of their net recorded amount, we would make an adjustment to the
valuation allowance which would reduce the provision for income taxes.

In July 2006, the FASB issued Financial Interpretation ("FIN") No. 48,
"Accounting for Uncertainty in Income Taxes," which clarifies the accounting for
uncertainty in income taxes recognized in the financial statements in accordance
with SFAS No. 109, "Accounting for Income Taxes." FIN No. 48 provides that a tax
benefit from an uncertain tax position may be recognized when it is more likely
than not that the position will be sustained upon examination, including
resolutions of any related appeals or litigation processes, based on the
technical merits. Income tax positions must meet a more-likely-than-not
recognition threshold at the effective date to be recognized upon the adoption
of FIN 48 and in subsequent periods. This interpretation also provides guidance
on measurement, derecognition, classification, interest and penalties,
accounting in interim periods, disclosure and transition. FIN 48 is effective
for fiscal years beginning after December 15, 2006.

The Company adopted the provisions of FASB Interpretation No. 48, Accounting for
Uncertainty in Income Taxes, on January 1, 2007. The Company did not recognize
any additional liability for unrecognized tax benefit as a result of the
implementation.

The Company will recognize interest and penalties related to unrecognized tax
benefits within the income tax expense line in the accompanying consolidated
statement of operations. As of December 31, 2007 the Company has not recognized
liabilities for penalty and interest as the Company does not have liability for
unrecognized tax benefits.


12

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COMPREHENSIVE INCOME (LOSS)

The Company adopted SFAS No. 130 "Reporting Comprehensive Income," which
establishes standards for reporting and display of comprehensive income (loss)
and its components in a full set of general-purpose financial statements. Total
comprehensive income (loss) represents the net change in stockholders' equity
(deficit) during a period from sources other than transactions with stockholders
and as such, includes net earnings or loss. For the Company, the components of
other comprehensive income (loss) are the foreign currency translation
adjustments that are recorded as components of stockholders' equity (deficit).

GRANTS

In May 2004 PBAG received a grant from the German State of Schleswig-Holstein in
the approximate amount of 760,000 Euros for further research and development of
our pharmaceutical product Elafin. The grant covered the period from April 1,
2004 to March 31, 2007 if certain milestones had been reached by September 30 of
each year. In November 2006, the grant was extended through December 31, 2007.
PBAG qualified to receive approximately 217,000 Euros (approximately $320,000)
of the New Grant in 2007. New Grant funds approximating 196,000 Euros ($289,000)
have been received (or were due at year end). The remaining amount of
approximately 21,000 Euros was forfeited.

ITEM 7 - FINANCIAL STATEMENTS

The consolidated financial statements and corresponding notes to the
consolidated financial statements called for by this item appear under the
caption Index to Financial Statements (Page F-1 hereof).

ITEM 8 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

None.

ITEM 8A(T) - CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e)
under the Exchange Act) that are designed to ensure that information that would
be required to be disclosed in Exchange Act reports is recorded, processed,
summarized and reported within the time period specified in the SEC's rules and
forms, and that such information is accumulated and communicated to our
management, including to Birge Bargmann our Chief Executive Officer and Chief
Financial Officer, to allow timely decisions regarding required disclosure.

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As required by Rule 13a-15 under the Exchange Act, our management, including
Birge Bargmann our Chief Executive Officer and Chief Financial Officer,
evaluated the effectiveness of the design and operation of our disclosure
controls and procedures as of December 31, 2007. Based on that evaluation, Ms.
Bargmann concluded that as of December 31, 2007, and as of the date that the
evaluation of the effectiveness of our disclosure controls and procedures was
completed our disclosure controls and procedures were not effective to satisfy
the objectives for which they are intended because of the material weakness
described below.

INTERNAL CONTROLS OVER FINANCIAL REPORTING

MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING.

Section 404(a) of the Sarbanes-Oxley Act of 2002 requires that management
document and test the Company's internal control over financial reporting and
include in this Annual Report on Form 10-KSB a report on management's assessment
of the effectiveness of our internal control over financial reporting.

Our management is responsible for establishing and maintaining adequate internal
control over financial reporting, as such term is defined in Rule 13a-15(f) of
the Exchange Act. Under the supervision and with the participation of our
management, including Ms. Bargmann our Chief Executive Officer and Chief
Financial Officer, we conducted an evaluation of the effectiveness of our
internal control over financial reporting based upon the framework in Internal
Control--Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). This evaluation and assessment
led to the identification of a material weakness in our internal control over
financial reporting as indicated below:

We lack the necessary depth of personnel with sufficient technical U.S.
accounting expertise to ensure that our interim and annual financial statements
(including the required footnote disclosures)can be prepared without material
misstatements.

Our plan to remediate the material weakness as of December 31, 2007 is to
utilize an outside consulting resource to prepare and review interim and annual
financial statements.

This annual report does not include an audit report of our registered public
accounting firm regarding internal control over financial reporting. In
addition, Management's report on internal control over financial reporting is
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 annual report.

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTIng.

During the fiscal year ended December 31, 2007, there were no changes in our
internal control over financial reporting identified in connection with the
evaluation performed during the fiscal year covered by this report that has
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.

ITEM 8B - OTHER INFORMATION

None.

PART III

ITEM 9 - DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE
GOVERNANCE; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

The following table sets forth the names and ages of the current and incoming
directors and executive officers of the Company and the principal offices and
positions with the Company held by each person. The Board of Directors elects
the executive officers of the Company annually. The directors serve one-year
terms until their successors are elected. The executive officers serve terms of
one year or until their death, resignation or removal by the Board of Directors.

14


<PAGE>

NAME AGE POSITIONS
Birge Bargmann 46 President, Chief Executive
Officer, Chief Financial
Officer and Director
Dr. Barbara Kahlke 43 Secretary
Joerg Alte 47 Director
Professor Oliver Wiedow, MD. 50 Director
Holger Pusch 51 Director
Hartmut Weigelt, Ph.D. 62 Director

BIOGRAPHICAL INFORMATION:

Birge Bargmann has served as our President, Chief Executive Officer and Chief
Financial Officer since November 2005 and a Director of the Company since
December 2000. In November 2005, she was appointed CEO and CFO of the Company
and its subsidiary. Ms. Bargmann was a member of the Supervisory Board of Proteo
Biotech AG from 2002 to 2005. Since 1989, Ms. Bargmann has worked as a medical
technique assistant engaged in the Elafin project at the dermatological clinic
of the University of Kiel. She co-developed and carried out procedures to detect
and to purify Elafin.

Dr. Barbara Kahlke has served as our Secretary since August 2004. She has been a
member of the Supervisory Board of Proteo Biotech AG since May 2002, and a
scientific researcher for Proteo Biotech AG since May 2000. Dr. Kahlke is a
biologist, having received her doctorate from Christian-Albrechts-University in
Kiel, Germany. Since 1994, Dr. Kahlke has worked for a medium-sized German
pharmaceutical company with responsibilities in molecular biology and in protein
production in compliance with GMP. She discovered the biological activity of
bis-acyl urea.

Joerg Alte has served as a Director of the Company since December 2000. Mr. Alte
served as our President, Chief Executive Officer and Chief Financial Officer
from 2000 to 2003. Mr. Alte is a German lawyer by training and practice. After
studying law and passing his second state examination, he worked for more than
three years at a German law office predominantly engaged in economic and
corporate laws with both public and private company clients engaged in
international business. Subsequently, Mr. Alte worked as a legal advisor with a
German diagnostic company, where he also practiced German and U.S. securities
laws. From November 1998 to April 2000, Mr. Alte served as President and CEO for
Sangui Biotech International, Inc., a publicly traded company. Since September
2007, Mr. Alte has served as managing director of FIDEsprit AG, a Swiss
investment company.

Prof. Oliver Wiedow, M.D. has served as a Director of the Company since December
2000. Professor Wiedow served as our President, Chief Executive Officer and
Chief Financial Officer from January 2004 to June 2004 and has served as a
member of the Supervisory Board of Proteo Biotech AG since 2000. Since 1985
Professor Wiedow has served as physician and scientist at the University of
Kiel, Germany. Prof. Wiedow discovered Elafin in human skin and has researched
its biological effects.

Holger Pusch has served as a Director of the Company since December 2000. For
the last 23 years, Mr. Pusch worked in different marketing and sales functions
for major German companies. Mr. Pusch is currently the Managing Director of
Lupus Imaging & Media GmbH & Co. KG, a company in the photo business, a position
he has held since October 2006. From March 1, 2006 to October 2006, Mr. Pusch
worked for Connect Consulting GmbH, in Bonn Germany. From October 1989 to March
2006 he worked for Agfa Geveart AG and its successor as a result of a spin-off
in November 2004, AgfaPhoto GmbH.

Hartmut Weigelt, Ph.D. has served as a Director of the Company since December
2000. Dr. Weigelt was a member of the Supervisory Board of Proteo Biotech AG
from 2000 to 2003. Since 1996, Dr. Weigelt has served as the managing director
of Eco Impact GmbH which he co-founded. Dr. Weigelt was a co-founder of the
first German private university, Witten/Herdecke and he is currently a Director
of the Life Technologies Ruhr e.v. Mr. Weigelt studied chemistry and biology and
graduated with a M.Sc., Ph.D., and D.Sc. in biology.

15


<PAGE>

AUDIT COMMITTEE AND FINANCIAL EXPERT:

Proteo, Inc. is not a "listed company" under SEC rules and is therefore not
required to have an audit committee comprised of independent directors. We do
not currently have an audit committee, however, for certain purposes of the
rules and regulations of the SEC and in accordance with the Sarbanes-Oxley Act
of 2002, our board of directors is deemed to be its audit committee and as such
functions as an audit committee and performs some of the same functions as an
audit committee including: (1) selection and oversight of our independent
accountant; (2) establishing procedures for the receipt, retention and treatment
of complaints regarding accounting, internal controls and auditing matters; and
(3) engaging outside advisors. Our board of directors has determined that its
members do not include a person who is an "audit committee financial expert"
within the meaning of the rules and regulations of the SEC.

The board of directors has determined that each of its members is able to read
and understand fundamental financial statements and has substantial business
experience that results in that member's financial sophistication. Accordingly,
the board of directors believes that each of its members has sufficient
knowledge and experience necessary to fulfill the duties and obligations that an
audit committee would have.

FAMILY RELATIONSHIPS

There are no family relationships between or among the directors, executive
officers or persons nominated by the Company to become directors or executive
officers.

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

To the best of the Company's knowledge, during the past five years, none of the
following occurred with respect to a present or former director or executive
officer of the Company: (1) any bankruptcy petition filed by or against any
business of which such person was a general partner or executive officer at the
time of the bankruptcy or within two years prior to that time; (2) any
conviction in a criminal proceeding or being subject to a pending criminal
proceeding (excluding traffic violations and other minor offenses); (3) being
subject to any order, judgment or decree, not subsequently reversed, suspended
or vacated, of any court of competent jurisdiction, permanently or temporarily
enjoining, barring, suspending or otherwise limiting his or her involvement in
any type of business, securities or banking activities; and (4) being found by a
court of competent jurisdiction (in a civil action), the SEC or the Commodities
Futures Trading Commission to have violated a federal or state securities or
commodities law, and the judgment has not been reversed, suspended or vacated.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE.

Section 16(a) of the Exchange Act requires the Company's directors and executive
officers and persons who own more than ten percent of a registered class of the
Company's equity securities to file with the SEC initial reports of ownership
and reports of changes in ownership of common stock and other equity securities
of the Company. Officers, directors and greater than ten percent beneficial
owners of our common stock are required by SEC regulations to furnish the
Company with copies of all Section 16(a) forms they file. To the Company's
knowledge, based solely on the review of copies of such reports furnished to the
Company and written representations that no other reports were required, the
Company has been informed that all Section 16(a) filing requirements applicable
to the Company's officers, directors and greater than ten percent beneficial
owners of our common stock were complied with.

CODE OF ETHICS

The Company maintains a code of ethical conduct applicable to all employees,
officers and directors. The Company will also provide to any person without
charge, and upon request, a copy of the Code of Ethics by making a request in
writing to: [e-mail].

ITEM 10 - EXECUTIVE COMPENSATION

The following table sets forth the overall compensation earned over each of the
past two fiscal years ending December 31, 2007 by each person who served as the
principal executive officer of Proteo during fiscal year 2007. There were no
other executive officers who had compensation of $100,000 or more during fiscal
year 2007.

16


<PAGE>


<TABLE>
<S> <C>
SUMMARY COMPENSATION TABLE

NON-QUALIFIED
NON-EQUITY DEFERRED ALL OTHER TOTAL
STOCK OPTION INCENTIVE PLAN COMPENSATION COMPEN- COMPEN-
NAME AND SALARY BONUS AWARDS AWARDS COMPEN-SATION EARNINGS SATION SATION
PRINCIPAL POSITION YEAR ($) ($) ($) ($) (#) ($) ($) ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Birge Bargmann 2007 $ 64,000 -0- -0- -0- -0- -0- -0- $ 64,000
(Chief Executive
Officer and Chief 2006 $ 6,000 -0- -0- -0- -0- -0- -0- $ 6,000
Financial Officer)
</TABLE>


COMPENSATION OF DIRECTORS

The Directors have not received any compensation for serving in such capacity,
and the Company does not currently contemplate compensating its Directors in the
future for serving in such capacity.

ITEM 11 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS

The following table sets forth, as of December 31, 2007, certain information
with respect to the Company's equity securities owned of record or beneficially
by (i) each director and executive officer; (ii) each person who owns
beneficially more than 5% of each class of the Company's outstanding equity
securities; and (iii) all directors and executive officers as a group. The
address for all of the following individuals is c/o Proteo, Inc., 2102 Business
Center Drive, Irvine, California 92612.

Number of Shares Percent of
Title of Class Name of Beneficial Owner Beneficially Owned (1) Class
- -------------- ------------------------- ---------------------- ----------
Common Stock Prof. Oliver Wiedow, M.D. 10,680,000 44.7%
Common Stock Birge Bargmann 2,000,000 8.4%
Common Stock Joerg Alte 140,000(2) *
Common Stock Dr. Barbara Kahlke 10,000 *
Common Stock Holger Pusch 20,000 *
Common Stock Hartmut Weigelt, Ph.D. 80,000 *
Common Stock All officers and directors 12,930,000 54.2%
as a group
(6 persons)
* less than 1%

(1) Based on 23,879,350 shares outstanding as of March 28, 2008.
(2) Mr. Alte has loaned all 140,000 shares to a broker, which shares must be
returned to Mr. Alte on or before December 31, 2007. Such shares were
not returned as of December 31, 2007.

ITEM 12 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE

Pursuant to a 30-year license agreement we have agreed to pay Dr. Wiedow three
percent of the gross revenues of the Company from products based on patents
where he was the principal inventor. Furthermore, we agreed to pay licensing
fees of 110,000 Euro per year, for a term of six years through the year ending
December 31, 2006, for a total of 660,000 Euros. This equated to annual license
fees of approximately $130,000 for the year ending December 31, 2005 and
$140,000 for the year ending December 31, 2006. We also agreed to refund all
expenses needed to maintain such patents (e.g., patent fees, legal fees, etc).

At December 31, 2007, we have accrued $927,900 of licensing fees payable to Dr.
Wiedow. During 2004, the licensing agreement was amended to require annual
payments of 30,000 Euros, to be paid on July 15 of each year, beginning on July
15, 2004. Such amount can be increased up to 110,000 Euros by June 1 of each
year based on an assessment of the Company's financial ability to make such
payments. The annual payments will continue until the entire obligation of
660,000 Euros has been paid. In December 2007, the Company paid to Dr. Wiedow
30,000 Euros (approx. $43,000). No other payments have been made to Dr. Wiedow
as of December 31, 2007, which is a technical breach of the agreement. Dr.
Wiedow waived such breach and deferred the prior year payments to 2008.

17


<PAGE>

On September 28, 2006, Dr. Wiedow entered into an agreement to contribute 50,000
Euros (approximately $63,000) to PBAG for a 15% non-voting interest in PBAG, in
accordance with certain provisions of the German Commercial Code.

Dr. Wiedow will receive 15% of profits, as determined under the agreement, not
to exceed in any given year 30% of the capital contributed. Additionally, he
will be allocated 15% of losses, as determined under the agreement, not to
exceed the capital contributed. Dr. Wiedow is under no obligation to provide
additional capital contributions to the Company. During the years ended December
31, 2007 and 2006, losses of $3,978 and $59,026, respectively, were allocated
against the contributed capital account, which is presented as minority interest
in the profits and losses of Proteo Biotech on the accompanying statements of
operations and comprehensive loss.

The disclosure requirements of Item 407(a) of Regulation S-B are not applicable
to this filing.

ITEM 13 - EXHIBITS

EXHIBIT NO. DESCRIPTION

2.1* Agreement and Plan of Share Exchange

3.1* Articles of Incorporation, dated December 18, 1992

3.2* Amendment to Articles of Incorporation, dated October 31, 1996

3.3* Amendment to Articles of Incorporation, dated February 12, 1998

3.4* Amendment to Articles of Incorporation, dated May 18, 1999

3.5* Amendment to Articles of Incorporation, dated July 18, 2001

3.6* Amendment to Articles of Incorporation, dated January 11, 2002

3.7* Articles of Share Exchange, dated April 25, 2002

3.8* By-Laws, dated December 18, 1992

10.3* Common Stock Purchase Agreement

10.4* Promissory Note with Guaranty

10.5* Common Stock Purchase Agreement

10.6* Promissory Note

10.7* License Agreement dated August 9, 2007, between Proteo Biotech AG
and Rhein Minapharm Biogenetics SAE

14.1* Code of Ethics

21** Subsidiaries of Small Business Issuer

31.1** Certification of Chief Executive Officer Pursuant to Section 302

31.2** Certification of Chief Financial Officer Pursuant to Section 302

32** Certification of Chief Executive Officer and Chief Financial
Officer Pursuant to 18 U.S.C. Section 1350
________________________

* Previously filed.

** Filed herewith.

18


<PAGE>

ITEM 14 - PRINCIPAL ACCOUNTANT FEES AND SERVICES

AUDIT FEES:

We were billed approximately $84,000 and $70,000 for the fiscal years ended
December 31, 2007 and 2006, respectively, for professional services rendered by
the principal accountant for the audit of the our annual consolidated financial
statements and the review of our quarterly unaudited consolidated financial
statements.

AUDIT RELATED FEES:

None

TAX FEES:

We were billed approximately $6,000 and $6,000 for the fiscal years ended
December 31, 2007 and 2006, respectively, for professional services rendered by
the principal accountant for tax compliance and tax advice.

ALL OTHER FEES:

There were no other professional services rendered by our principal accountant
during the two years ended December 31, 2007 that were not included in the three
categories above.

All of the services provided by our principal accountant were approved by our
Board of Directors. No more than 50% of the hours expended on our audit for the
last fiscal year were attributed to work performed by persons other than
full-time employees of our principal accountant.

19


<PAGE>

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

Dated: April 11, 2008

PROTEO, INC.
(Registrant)



BY: /s/ BIRGE BARGMANN
----------------------------------------------
BIRGE BARGMANN
CHIEF EXECUTIVE OFFICER AND
CHIEF FINANCIAL OFFICER

Pursuant to requirements of the Securities Exchange Act of 1934, this report has
been signed below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated:

Signature Capacity Date
- ------------------------------- ---------------------------- -------------------
/s/ Birge Bargmann Chief Executive Officer and April 11, 2008
Birge Bargmann Chief Financial Officer
- ------------------------------- ---------------------------- -------------------
/s/ Joerg Alte Director April 11, 2008
Joerg Alte
- ------------------------------- ---------------------------- -------------------
/s/ Oliver Wiedow, M.D. Director April 11, 2008
Oliver Wiedow, M.D.
- ------------------------------- ---------------------------- -------------------
/s/ Holger Pusch Director April 11, 2008
Holger Pusch
- ------------------------------- ---------------------------- -------------------
/s/ Hartmut Weigelt, Ph.D. Director April 11, 2008
Hartmut Weigelt, Ph.D.
- ------------------------------- ---------------------------- -------------------


20


<PAGE>

REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders
Proteo, Inc. and Subsidiary

We have audited the accompanying consolidated balance sheet of Proteo, Inc. and
Subsidiary (collectively the "Company"), a Development Stage Company, as of
December 31, 2007, and the related consolidated statements of operations and
comprehensive loss, stockholders' equity (deficit) and cash flows for the years
ended December 31, 2007 and 2006, and for the period from November 22, 2000
(Inception) to December 31, 2007. These consolidated financial statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits.

We conducted our audits 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
consolidated financial statements are free of material misstatement. The Company
was not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company's internal control
over financial reporting. Accordingly, we express no such opinion. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the consolidated 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 audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of Proteo,
Inc. and Subsidiary as of December 31, 2007, and the consolidated results of
their operations and their cash flows for the years ended December 31, 2007 and
2006, and for the period from November 22, 2000 (Inception) to December 31,
2007, in conformity with accounting principles generally accepted in the United
States of America.

The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern. As reported in the
accompanying consolidated financial statements, the Company is a development
stage enterprise which has experienced significant losses since inception with
no operating revenues. As discussed in Note 1 to the consolidated financial
statements, a significant amount of additional capital will be necessary to
advance the development of the Company's products to the point at which they may
become commercially viable. These conditions, among others, raise substantial
doubt about the Company's ability to continue as a going concern. Management's
plans regarding these matters are also described in Note 1. The accompanying
consolidated financial statements do not include any adjustments that might
result from the outcome of this uncertainty.


/s/ Squar, Milner, Peterson, Miranda & Williamson, LLP
- ------------------------------------------------------

April 11, 2008
Newport Beach, California


F-1


<PAGE>

<TABLE>
<S> <C>
PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2007

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

ASSETS

CURRENT ASSETS
Cash and cash equivalents $ 802,745
Research supplies inventory 127,557
Prepaid expenses and other current assets 80,542
-----------
Total Current Assets 1,010,844

Property and Equipment, net 376,542
-----------

TOTAL ASSETS $ 1,387,386
===========

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities
Accounts payable and accrued liabilities $ 123,518
Accrued licensing fees 927,900
-----------
Total Current Liabilities 1,051,418

Commitments and Contingencies (Note 6)


STOCKHOLDERS' DEFICIT
Preferred stock, par value $0.001 per share;
20,000,000 shares authorized; no shares
issued or outstanding --
Common stock, par value $0.001 per share;
300,000,000 shares authorized; 23,879,350.
shares issued and outstanding 23,880
Additional paid-in capital 4,968,234
Accumulated other comprehensive income 370,378
Deficit accumulated during development stage (5,026,524)
-----------
Total Stockholders' Deficit (335,968)
-----------

Total Liabilities and Stockholders' Deficit $ 1,387,386
===========


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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-2


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

November 22,
2000
(Inception)
Through
December 31,
2007 2006 2007
------------ ------------ ------------

REVENUES $ -- $ -- $ --

EXPENSES
General and administrative 347,825 552,115 3,528,303
Research and development, net of grants 133,286 100,490 1,616,264
------------ ------------ ------------
481,111 652,605 5,144,567
OTHER INCOME (EXPENSE)
Interest income 6,334 3,192 40,758
Miscellaneous income, net 126,717 21,519 239,367
Foreign currency transaction loss (101,087) (81,000) (225,087)
------------ ------------ ------------
31,964 (56,289) 55,038
------------ ------------ ------------

NET LOSS BEFORE MINORITY INTEREST (449,147) (708,894) (5,089,529)

MINORITY INTEREST IN NET LOSS OF CONSOLIDATED
SUBSIDIARY, NET OF TAXES 3,978 59,026 63,004
------------ ------------ ------------

NET LOSS AVAILABLE TO COMMON SHAREHOLDERS (445,169) (649,868) (5,026,525)

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS 89,987 61,737 370,378
------------ ------------ ------------

COMPREHENSIVE LOSS $ (355,183) $ (588,131) $ (4,656,147)
============ ============ ============

BASIC AND DILUTED LOSS AVAILABLE TO COMMON
SHAREHOLDERS PER COMMON SHARE $ (0.02) $ (0.03)
============ ============

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING 23,879,000 23,842,000
============ ============


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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

F-3


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

BALANCE - November 22,
2000 (Inception) -- $ -- $ -- $ -- $ -- $ -- $ --
Common stock subscribed at
$0.001 per share 4,800,000 4,800 -- (4,800) -- -- --
Common stock issued for
cash at $3.00 per share 50,000 50 149,950 -- -- -- 150,000
Reorganization with Proteo
Biotech AG 2,500,000 2,500 6,009 -- -- -- 8,509
Net loss -- -- -- -- -- (60,250) (60,250)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2000 7,350,000 7,350 155,959 (4,800) -- (60,250) 98,259
Common stock issued for
cash at $3.00 per share 450,000 450 1,349,550 -- -- -- 1,350,000
Cash received for common
stock subscribed at
$0.001 per share -- -- -- 4,800 -- -- 4,800

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-4


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

(continued)

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

Common stock issued for
cash at $0.40 per share 201,025 $ 201 $ 80,209 $ -- $ -- $ -- $ 80,410
Common stock subscribed at
$0.40 per share 5,085,487 5,086 2,029,109 (2,034,195) -- -- --
Common stock issued for
cash to related
parties at $0.001 per
share 7,200,000 7,200 -- -- -- -- 7,200
Other comprehensive loss -- -- -- -- (20,493) -- (20,493)
Net loss -- -- -- -- -- (374,111) (374,111)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2001 20,286,512 20,287 3,614,827 (2,034,195) (20,493) (434,361) 1,146,065
Common stock issued in
connection with reverse
merger 1,313,922 1,314 (1,314) -- -- -- --
Cash received for common
stock subscribed at
$0.40 per share -- -- -- 406,440 -- -- 406,440

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-5


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

(continued)

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

Other comprehensive income -- $ -- $ -- $ -- $ 116,057 $ -- $ 116,057
Net loss -- -- -- -- -- (1,105,395) (1,105,395)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2002 21,600,434 21,601 3,613,513 (1,627,755) 95,564 (1,539,756) 563,167
Common stock issued for
cash at $0.60 per share 66,667 67 39,933 -- -- -- 40,000
Cash received for common
stock subscribed at
$0.40 per share -- -- -- 387,800 -- -- 387,800
Other comprehensive income -- -- -- -- 164,399 -- 164,399
Net loss -- -- -- -- -- (620,204) (620,204)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2003 21,667,101 21,668 3,653,446 (1,239,955) 259,963 (2,159,960) 535,162
Common stock issued for
cash at $0.40 per share 412,249 412 164,588 -- -- -- 165,000

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-6


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

(continued)

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

Cash received for common
stock subscribed at
$0.40 per share -- $ -- $ -- $ 680,000 $ -- $ -- $ 680,000
Other comprehensive income -- -- -- -- 93,186 -- 93,186
Net loss -- -- -- -- -- (639,746) (639,746)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2004 22,079,350 22,080 3,818,034 (559,955) 353,149 (2,799,706) 833,602
Common stock subscribed at
$0.84 per share 300,000 300 251,700 (252,000) -- -- --
Cash received for common
stock subscribed at
$0.40 per share -- -- -- 435,284 -- -- 435,284
Other comprehensive income -- -- -- -- (134,495) -- (134,495)
Net loss -- -- -- -- -- (1,131,781) (1,131,781)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2005 22,379,350 22,380 4,069,734 (376,671) 218,654 (3,931,487) 2,610

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-7


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

(continued)

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

Common stock subscribed at
$0.60 per share 1,500,000 $ 1,500 $ 898,500 $ (900,000) $ -- $ -- $ --
Cash received for common
stock subscribed at
$0.40 per share -- -- -- 414,590 -- -- 414,590
Other comprehensive income
-- -- -- -- 61,737 -- 61,737
Net loss -- -- -- -- -- (649,868) (649,868)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2006 23,879,350 23,880 4,968,234 (862,081) 280,391 (4,581,355) (170,931)
Cash received for common
stock subscribed -- -- -- 862,081 -- -- 862,081
Other comprehensive income -- -- -- -- 89,987 -- 89,987
Net loss -- -- -- -- -- (445,169) (445,169)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2007 23,879,350 $ 23,880 $ 4,968,234 $ -- $ 370,378 $(5,026,524) $ (335,968)
=========== =========== =========== =========== =========== =========== ===========

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-8


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

November 22,
2000
(Inception)
Through
December 31,
2007 2006 2007
----------- ----------- -----------

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (445,169) $ (649,868) $(5,026,524)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation 54,578 53,104 275,399
Loss on disposal of equipment 4,518 -- 4,518
Foreign currency transaction gain 101,087 81,000 225,087
Changes in operating assets and liabilities:
Research supplies inventory (24,547) 8,083 (138,451)
Prepaid expenses and other current assets (24,518) (18,671) (70,699)
Accounts payable and accrued liabilities 17,851 (4,335) 84,991
Accrued licensing fees (44,187) 139,000 702,813
----------- ----------- -----------
Net cash used in operating activities (360,387) (391,687) (3,942,867)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (6,294) -- (608,022)
Cash of reorganized entity -- -- 27,638
----------- ----------- -----------
Net cash used in investing activities (6,294) -- (580,384)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock -- -- 1,792,610
Proceeds for subscribed stock 862,081 414,590 3,190,995
----------- ----------- -----------
Net cash provided by financing activities 862,081 414,590 4,983,605

EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS 37,863 18,802 342,391
----------- ----------- -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS 533,263 41,705 802,745

CASH AND CASH EQUIVALENTS - beginning of period 269,482 227,777 --
----------- ----------- -----------

CASH AND CASH EQUIVALENTS - end of period $ 802,745 $ 269,482 $ 802,745
=========== =========== ===========

(continued)

- -----------------------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-9


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

November 22,
2000
(Inception)
Through
December 31,
2007 2006 2007
----------- ----------- -----------

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Common stock issued for subscriptions receivable $ -- $ 900,000 $ 1,627,755
=========== =========== ===========

Net assets (excluding cash) of reorganized entity
received in exchange for equity securities $ -- $ -- $ 8,509
=========== =========== ===========


See the accompanying notes to consolidated financial statements for more
information on non-cash investing and financing activities during the years
ended December 31, 2007 and 2006, and for the period from November 22, 2000
(Inception) through December 31, 2007.


- -----------------------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-10
</TABLE>


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION/NATURE OF BUSINESS

Proteo, Inc. (formerly TriVantage Group, Inc.) and Proteo Marketing, Inc.
("PMI"), a Nevada corporation, which began operations in November 2000, entered
into a reorganization and stock exchange agreement in December 2000 with Proteo
Biotech AG ("PBAG"), a German corporation, incorporated in Kiel, Germany.
Pursuant to the terms of the agreement, all of the shareholders of PBAG
exchanged their common stock for 2,500,000 shares of PMI common stock. As a
result, PBAG became a wholly owned subsidiary of PMI. Proteo Inc.'s common stock
is quoted on the Over-the-Counter Bulletin Board under the symbol "PTEO.OB".

During 2001, PMI entered into a Shell Acquisition Agreement (the "Acquisition
Agreement") with Trivantage Group, Inc. ("Trivantage"), a public "shell"
company, in a transaction accounted for as a reverse merger. In accordance with
the Acquisition Agreement, PMI first acquired 176,660,280 shares (1,313,922
post-reverse split shares, as described below) of Trivantage's common stock
representing 90% of the issued and outstanding common stock of Trivantage, in
exchange for a cash payment of $500,000 to the sole shareholder of Trivantage.
Secondly, Trivantage completed a one for one-hundred-fifty reverse stock split.
Finally, effective April 25, 2002, the shareholders of PMI exchanged their
shares of PMI for an aggregate of 20,286,512 shares of Trivantage to effect a
reverse merger between PMI and Trivantage. Subsequently, Trivantage changed its
name to Proteo, Inc. Effective December 31, 2004, PMI merged into Proteo, Inc..
PBAG and Proteo, Inc. are hereinafter collectively referred to as the "Company."

The Company intends to develop, manufacture, promote and market pharmaceuticals
and other biotech products. The Company is focused on the development of
pharmaceuticals based on the human protein Elafin. Elafin is a human protein
that naturally occurs in human skin, lungs, and mammary glands. The Company
believes Elafin may be useful in the treatment of cardiac infarction, serious
injuries caused by accidents, post surgery damage to tissue and complications
resulting from organ transplants.

Since its inception, the Company has primarily been engaged in the research and
development of its proprietary product Elafin. Once the research and development
phase is complete, the Company will begin to manufacture and obtain the various
governmental regulatory approvals for the marketing of Elafin. The Company is in
the development stage and has not generated any revenues from product sales. The
Company believes that none of its planned products will produce sufficient
revenues in the near future. As a result, the Company plans to identify and
develop other potential products. There are no assurances, however, that the
Company will be able to produce such products, or if produced, that they will be
accepted in the marketplace.


F-11


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

DEVELOPMENT STAGE AND GOING CONCERN MATTERS

The Company has been in the development stage since it began operations on
November 22, 2000 and has not generated any revenues from operations. There is
no assurance of any future revenues. Additionally, at December 31, 2007, the
Company has a working capital deficit of approximately $41,000 and a
stockholders' deficit of approximately $1,387,000.

The Company will require substantial additional funding for continuing research
and development, obtaining regulatory approval and for the commercialization of
its products.

Management has taken action to address these matters. They include:

o Retention of experienced management personnel with particular
skills in the commercialization of such products.
o Attainment of technology to develop additional biotech products.
o Raising additional funds through the sale of debt and/or equity
securities.

The Company's products, to the extent they may be deemed drugs or biologics, are
governed by the Federal Food, Drug and Cosmetics Act and the regulations of
state and various foreign government agencies. The Company's proposed
pharmaceutical products to be used with humans are subject to certain clearance
procedures administered by the above regulatory agencies. There can be no
assurance that the Company will receive the regulatory approvals required to
market its proposed products elsewhere or that the regulatory authorities will
review the product within the average period of time.

Management plans to generate revenues from product sales, but there are no
purchase commitments for any of the proposed products. In the absence of
significant sales and profits, the Company may seek to raise additional funds to
meet its working capital requirements through the additional sales of debt
and/or equity securities. There is no assurance that the Company will be able to
obtain sufficient additional funds when needed, or that such funds, if
available, will be obtainable on terms satisfactory to the Company.

These circumstances, among others, raise substantial doubt about the Company's
ability to continue as a going concern. The accompanying consolidated financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.

F-12


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


CONCENTRATIONS

The Company maintains substantially all of its cash in bank accounts in Germany
and not in United States bank depository accounts insured by the Federal Deposit
Insurance Corporation. Under German law, the bank accounts are insured by the
Deposit Protection Fund. Each bank customer is insured for up to seven billion
Euros. The Company has not experienced any losses in these accounts.

The Company's research and development activities and most of its assets are
located in Germany. The Company's operations are subject to various political,
economic, and other risks and uncertainties inherent in Germany and the European
Union.

OTHER RISKS AND UNCERTAINTIES

The Company's line of future pharmaceutical products being developed by its
German subsidiary are considered drugs or biologics, and as such, are governed
by the Federal Food and Drug and Cosmetics Act and by the regulations of state
agencies and various foreign government agencies. There can be no assurance that
the Company will obtain the regulatory approvals required to market its
products. The pharmaceutical products under development in Germany will be
subject to more stringent regulatory requirements because they are in vitro
products for humans. The Company has no experience in obtaining regulatory
clearance on these types of products. Therefore, the Company will be subject to
the risks of delays in obtaining or failing to obtain regulatory clearance and
other uncertainties, including financial, operational, technological, regulatory
and other risks associated with an emerging business, including the potential
risk of business failure.

As substantially all of the Company's operations are in Germany, they are
exposed to risks related to fluctuations in foreign currency exchange rates. The
Company does not utilize derivative instruments to hedge against such exposure.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of America
("GAAP") and include the accounts of Proteo, Inc. and its wholly owned
subsidiary. The operations of PBAG, acquired on December 30, 2000, are included
in the accompanying consolidated statements of operations and comprehensive loss
from such date. All significant intercompany accounts and transactions have been
eliminated in consolidation.

STARTUP ACTIVITIES

Statement of Position No. 98-5, "REPORTING THE COSTS OF STARTUP ACTIVITIES"
requires that all non-governmental entities expense the costs of startup
activities as incurred, including organizational costs. This standard has not
materially impacted the Company's financial position or results of operations.

F-13


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

GRANTS

The Company receives grants from the German government which are used to fund
research and development activities and the acquisition of equipment (see Note
6). Grant receipts for the reimbursement of research and development expenses
are offset against such expenses in the accompanying consolidated statements of
operations and comprehensive loss when the related expenses are incurred. Grants
related to the acquisition of tangible property are recorded as a reduction of
such property's historical cost.

Funds are available at the earliest from January 1 of each budget year with a
funds request submitted on or before December 5 of the preceding year. Funds
reserved for each budget year may not be assigned, and funds not requested by
December 5 of each budget year will expire.

USE OF ESTIMATES

The Company prepares its consolidated financial statements in conformity with
GAAP, which requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of revenues (if any) and expenses during the reporting period.
Significant estimates made by management include, among others, realizability of
long-lived assets and estimates for deferred tax asset valuation allowances.
Actual results could materially differ from such estimates.

FINANCIAL INSTRUMENTS

Statement of Financial Accounting Standards ("SFAS") No. 107 "DISCLOSURES ABOUT
FAIR VALUE OF FINANCIAL INSTRUMENTS" requires disclosure of fair value
information about financial instruments when it is practicable to estimate that
value. Management believes that the carrying amounts of the Company's financial
instruments, consisting primarily of cash and accounts payable and accrued
expenses, approximate their fair value at December 31, 2007 due to their
short-term nature.

F-14


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

FOREIGN CURRENCY TRANSLATION

Assets and liabilities of the Company's German operations are translated from
Euros (the functional currency) into U.S. dollars (the reporting currency) at
period-end exchange rates. Expense and grant receipts are translated at weighted
average exchange rates for the period. Net exchange gains or losses resulting
from such translation are excluded from the consolidated statements of
operations and are included in comprehensive loss and accumulated in a separate
component of stockholders' equity (deficit). Such accumulated amount
approximated $370,000 at December 31, 2007.

The Company records payables related to a licensing agreement (see Note 6) in
accordance with SFAS No. 52, "FOREIGN CURRENCY TRANSLATION." Quarterly
commitments under such agreement are denominated in Euros. For each reporting
period, the Company translates the quarterly amount to US dollars at the
exchange rate effective on that date. If the exchange rate changes between when
the liability is incurred and the time payment is made, a foreign exchange gain
or loss results. The Company paid approximately $43,000 under this licensing
agreement during the year ended December 31, 2007, and did not realize any
significant foreign currency exchanges gains or losses. Prior to 2007 the
Company made no payments under such agreement.

Additionally, the Company computes a foreign exchange gain or loss at each
balance sheet date on all recorded transactions denominated in foreign
currencies that have not been settled. The difference between the exchange rate
that could have been used to settle the transaction on the date it occurred and
the exchange rate at the balance sheet date is the unrealized gain or loss that
is currently recognized. The Company recorded unrealized foreign currency
transaction losses of approximately $101,000 and $81,000 for the years ended
December 31, 2007 and 2006, respectively.

F-15


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid temporary cash investments with original
maturities of three months or less to be cash equivalents. Cash and cash
equivalents consist of deposits with banks and short-term certificates of
deposit.

RESEARCH SUPPLIES INVENTORY

Research supplies inventory is stated at cost, and is entirely comprised of
research supplies and materials that are expensed as consumed.

PROPERTY AND EQUIPMENT

Property and equipment are recorded at cost and are depreciated using the
straight-line method over their expected useful lives, which range from 3 to 14
years. Leasehold improvements are amortized over the expected useful life of the
improvement or the remaining lease term, whichever is shorter. Expenditures for
normal maintenance and repairs are charged to income, and significant
improvements are capitalized. The cost and related accumulated depreciation or
amortization of assets are removed from the accounts upon retirement or other
disposition; any resulting gain or loss is reflected in the consolidated
statements of operations and comprehensive loss.

LONG-LIVED ASSETS

The Financial Accounting Statements Board ("FASB") has issued SFAS No. 144,
"ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS." SFAS No. 144
addresses financial accounting and reporting for the impairment or disposal of
certain long-lived assets, and requires that certain long-lived assets be
reviewed for impairment whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable. If the cost basis of a
long-lived asset is greater than the projected future undiscounted net cash
flows from such asset, an impairment loss is recognized. Impairment losses are
calculated as the difference between the cost basis of an asset and its
estimated fair value. SFAS No. 144 also requires companies to separately report
discontinued operations and extends that reporting to a component of an entity
that either has been disposed of (by sale, abandonment, or in a distribution to
shareholders) or is classified as held for sale. Assets to be disposed are
reported at the lower of the carrying amount or fair value less costs to sell.

F-16


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

LONG-LIVED ASSETS (continued)

Management believes that no indicators of impairment existed as of or for the
years ended December 31, 2007 or 2006. There can be no assurance, however, that
market conditions or demand for the Company's products or services will not
change which could result in long-lived asset impairment charges in the future.

REVENUE RECOGNITION

It is the Company's intent to recognize revenues from future product sales at
the time of product delivery. In December 2003, the Securities and Exchange
Commission released Staff Accounting Bulletin ("SAB") No. 104, "REVENUE
RECOGNITION," which provides guidance on the recognition, presentation and
disclosure of revenue in the financial statements. The Company believes that
once significant operating revenues are generated, the Company's revenue
recognition accounting policies will conform to SAB No. 104.

RESEARCH AND DEVELOPMENT

Research and development costs are charged to operations as incurred. Grant
funds received are reported as a reduction of research and development costs
(see Note 6).

PATENTS AND LICENSES

The Company does not own any patents or patents pending related to the Elafin
technology and instead operates under a technology license agreement with a
related party (see Note 6). Under such license agreement, the Company does not
hold title to any patents but must pay for all costs related to new patents,
patents pending, and patent maintenance associated with the Elafin technology.
The Company expenses such costs as incurred.

INCOME TAXES

The Company accounts for income taxes using the liability method in accordance
with SFAS No. 109, "ACCOUNTING FOR INCOME TAXES." Deferred tax assets and
liabilities are recognized for future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases. A valuation allowance is
provided for significant deferred tax assets when it is more likely than not
that such assets will not be recovered.

Management evaluates the Company's tax positions for measurement and recognition
using the guidance set forth in FASB Interpretation No. 48 ("Accounting for
Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109"),
which is more fully described below.

The Company adopted the provisions of Financial Accounting Standards Board
("FASB") Interpretation No. 48, Accounting for Uncertainty in Income Taxes, on
January 1, 2007. The Company did not recognize any additional liability for
unrecognized tax benefit as a result of the implementation. As of December 31,
2007, the Company did not increase or decrease liability for unrecognized tax
benefit related to uncertain tax positions in prior period nor did the Company
increase its liability for any uncertain tax positions in the current year.
Furthermore, there were no adjustments to the liability or lapse of statute of
limitation or settlements with taxing authorities.

The Company expects resolution of unrecognized tax benefits, if created, would
occur while the full valuation allowance of deferred tax assets is maintained;
therefore, the Company does not expect to have any unrecognized tax benefits
that, if recognized, would affect the effective tax rate.

The Company will recognize interest and penalty related to unrecognized tax
benefits and penalties as income tax expense. As of December 31, 2007, the
Company has not recognized liabilities for penalty and interest as the Company
does not have liability for unrecognized tax benefits.

The Company is subject to taxation in the US and various states. The Company's
tax years for 2004, 2005, and 2006 are subject to examination by the taxing
authorities. With few exceptions, the Company is no longer subject to U.S.
federal, state, local or foreign examinations by taxing authorities for years
before 2004.


F-17


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

ACCOUNTING FOR STOCK-BASED COMPENSATION

From inception to December 31, 2007, the Company has not granted any stock
options, stock warrants, or adopted any stock option plan.

BASIC AND DILUTED LOSS PER COMMON SHARE

The Company computes loss per common share using SFAS No. 128 "EARNINGS PER
SHARE." Basic loss per common share is computed based on the weighted average
number of shares outstanding for the period. Diluted loss per common share is
computed by dividing net loss by the weighted average shares outstanding
assuming all dilutive potential common shares were issued. There were no
dilutive potential common shares at December 31, 2007 or 2006. Additionally, for
purposes of calculating diluted loss per common share, there were no adjustments
to net loss. See Note 7 for additional information.

COMPREHENSIVE INCOME (LOSS)

SFAS No. 130, "REPORTING COMPREHENSIVE INCOME", established standards for
reporting and display of comprehensive income (loss) and its components in a
full set of general-purpose financial statements. Total comprehensive income
(loss) represents the net change in stockholders' equity (deficit) during a
period from sources other than transactions with stockholders and as such,
includes net earnings or loss. For the Company, the components of other
comprehensive income (loss) are the foreign currency translation adjustments,
which are recorded as components of stockholders' equity (deficit).

SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION

SFAS No. 131, "DISCLOSURES ABOUT SEGMENTS OF AN ENTERPRISE AND RELATED
INFORMATION", established standards for how public companies report information
about segments of their business in their annual financial statements and
requires them to report selected segment information in their quarterly reports
issued to shareholders. It also requires entity-wide disclosures about the
products and services an entity provides, the countries in which it holds
material assets and reports material revenues, and its major customers. The
Company considers itself to operate in one segment and has had no operating
revenues from inception. See Note 2 for information on long-lived assets located
in Germany.

F-18


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS

In June 2006, the FASB issued FASB Interpretation ("FIN") No. 48, "ACCOUNTING
FOR UNCERTAINTY IN INCOME TAXES, AN INTERPRETATION OF FASB STATEMENT NO. 109."
This interpretation clarifies the accounting for uncertainty in income taxes
recognized in an enterprise's financial statements in accordance with SFAS No.
109. FIN No. 48 prescribes a more-likely-than-not recognition threshold and a
measurement attribute for the financial statement recognition and measurement of
tax positions taken (or expected to be taken) in an income tax return. It also
provides guidance on de-recognition, classification, interest and penalties,
accounting in interim periods, disclosure and transition. The requirement to
assess the need for a valuation allowance on net deferred tax assets is not
affected by FIN No. 48. This pronouncement was effective for fiscal years
beginning after December 31, 2006.

In September 2006, the FASB issued SFAS No.157, "FAIR VALUE MEASUREMENTS," which
defines fair value, establishes a framework for measuring fair value in GAAP,
and expands disclosures about fair value measurements. SFAS No. 157 simplifies
and codifies related guidance within GAAP, but does not require any new fair
value measurements. The guidance in SFAS No. 157 applies to derivatives and
other financial instruments measured at estimated fair value under SFAS No. 133,
"ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES" and related
pronouncements. SFAS No. 157 is effective for financial statements issued for
fiscal years beginning after November 15, 2007, and interim periods within those
fiscal years. Management does not expect the adoption of SFAS No. 157 to have a
significant effect on the Company's financial position or results of operation.

On February 15, 2007, the FASB issued SFAS No. 159, "THE FAIR VALUE OPTION FOR
FINANCIAL ASSETS AND FINANCIAL LIABILITIES - INCLUDING AN AMENDMENT OF FASB
STATEMENT NO. 115." This standard permits an entity to measure many financial
instruments and certain other items at estimated fair value. Most of the
provisions of SFAS No. 159 are elective; however, the amendment of SFAS No. 115
("Accounting for Certain Investments in Debt and Equity Securities") applies to
all entities that own trading and available-for-sale securities. The fair value
option created by SFAS No. 159 permits an entity to measure eligible items at
fair value as of specified election dates. Among others, eligible items exclude
(1) financial instruments classified (partially or in total) as permanent or
temporary stockholders' equity (such as a convertible debt security with a
non-contingent beneficial conversion feature) and (2) investments in
subsidiaries and interests in variable interest entities that must be
consolidated. A for-profit business entity will be required to report unrealized
gains and losses on items for which the fair value option has been elected in
its statements of operations at each subsequent reporting date.

F-19


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The fair value option (a) may generally be applied instrument by instrument, (b)
is irrevocable unless a new election date occurs, and (c) must be applied to the
entire instrument and not to only a portion of the instrument. SFAS No. 159 is
effective as of the beginning of the first fiscal year that begins after
November 15, 2007. Early adoption is permitted as of the beginning of the
previous fiscal year provided that the entity (i) makes that choice in the first
120 days of that year, (ii) has not yet issued financial statements for any
interim period of such year, and (iii) elects to apply the provisions of SFAS
No. 157. The adoption of SFAS No. 159 is not expected to have a significant
impact on the Company's future financial statements.

In December 2007, the FASB issued SFAS No. 141(R), "BUSINESS COMBINATIONS." This
pronouncement will significantly change the accounting for business
combinations, expand the concept of a business combination (such that a transfer
of consideration is not necessarily required to trigger acquisition-method
accounting), and amend the GAAP definition of a "business" to include
development stage enterprises. SFAS No. 141(R) will also impact accounting for
the initial consolidation of a variable interest entity that is a business, and
accounting for bargain purchases (as defined) and step acquisitions. When a
business combination constitutes a change in control of the acquiree, the
purchasing entity will generally be required to recognize all (and only) the
assets acquired, liabilities assumed, and noncontrolling interests (formerly
known as "minority interests") at their full fair value as of the acquisition
date, even when the controlling interest acquired is less than a 100% interest.

SFAS No. 141(R) includes substantial new disclosure requirements, and applies
prospectively to business combinations for which the acquisition date is on or
after the beginning of the first annual reporting period beginning after
December 14, 2008. Earlier adoption is prohibited. Such pronouncement must be
adopted concurrently with SFAS No. 160 (see discussion in the following two
paragraphs). Management is currently evaluating what effect SFAS No. 141(R) will
have on the Company's future financial statements.

In December 2007, the FASB also issued SFAS No. 160, "NONTROLLING INTERESTS IN
CONSOLIDATED FINANCIAL STATEMENTS - AN AMENDMENT OF ARB No. 51." SFAS No. 160
establishes new accounting and reporting standards for the noncontrolling
interest in a subsidiary and for the deconsolidation of a subsidiary.
Specifically, this pronouncement requires that a noncontrolling interest
(minority interest) be reported in the stockholders' equity section of the
consolidated balance sheet, with separate identification to distinguish such
interest from the parent company's equity. The components of net income or loss
attributable to the noncontrolling interest will be included in the consolidated
results of operations in their "natural" classifications, and must be disclosed
on the face of the income statement; however, earnings-per-share data will
continue to be based exclusively on amounts attributable to the parent company.
SFAS No. 160 clarifies that changes in a parent company's ownership interest in
a subsidiary that do not result in deconsolidation are equity transactions if
the event does not result in a loss of control.

In addition, SFAS No. 160 requires that a parent company recognize gain or loss
when a subsidiary is deconsolidated; such gain or loss will be measured using
the estimated fair value of the noncontrolling equity investment on the
deconsolidation date. A deconsolidation transaction also establishes a new fair
value basis in any retained noncontrolling ownership interest, requiring
gain/loss recognition for the difference between such new basis and the
historical carrying amount of the remaining ownership interest. This
pronouncement includes expanded disclosure requirements regarding the interests
of the parent company and noncontrolling interests in its subsidiaries. SFAS No.
160 is effective for fiscal years, and interim periods within those fiscal
years, beginning after December 14, 2008; earlier adoption is prohibited.
Management is currently evaluating what effect this pronouncement will have on
the Company's future financial statements.

Other recent accounting pronouncements issued by the FASB (including its
Emerging Issues Task Force), the American Institute of Certified Public
Accountants, and the Securities and Exchange Commission did not or are not
believed by management to have a material impact on the Company's present or
future consolidated financial statements.

F-20


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


2. PROPERTY AND EQUIPMENT

Property and equipment, all located in Kiel, Germany, consist of the following
at December 31, 2007:

Technical and laboratory equipment $ 441,813
Plant 217,671
Leasehold improvements 5,476
Office equipment 32,378
---------
697,338
Less accumulated depreciation and amortization (320,796)
---------

$ 376,542
=========


3. STOCKHOLDERS' DEFICIT

COMMON STOCK

The Company is authorized to issue 300,000,000 shares of $0.001 par value common
stock. The holders of the Company's common stock are entitled to one vote for
each share held of record on all matters to be voted on by those stockholders.

In November 2000, the Company sold and issued 4,800,000 shares of restricted
common stock at $0.001 per share for $4,800 in cash, which was received in
fiscal 2001; therefore the issuance was accounted for as a stock subscription
receivable at December 31, 2000. During the year ended December 31, 2001, the
Company sold and issued an additional 7,200,000 shares of restricted common
stock to related parties at $0.001 per share for $7,200 in cash.

In November 2000, the Company sold and issued 50,000 shares of restricted common
stock at $3.00 per share for $150,000 in cash.

In December 2000, the Company issued 2,500,000 shares of restricted common stock
in connection with the reorganization and stock exchange agreement with PBAG
(see "Organization/Nature of Business" in Note 1).

During the year ended December 31, 2001, the Company issued and sold 450,000
shares of restricted common stock at $3.00 per share to Euro-American GmbH for
$1,350,000 in cash.

F-21


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


3. STOCKHOLDERS' DEFICIT (continued)


COMMON STOCK (continued)

During the year ended December 31, 2001, the Company entered into a subscription
agreement and note receivable for 6,000,000 shares of the Company's restricted
common stock with Euro-American GmbH, valued at $2,400,000. During the year
ended December 31, 2001, 5,286,512 shares of Company common stock were issued
under such subscription, of which approximately $435,000, $680,000, and $794,000
was received against this receivable during the years ended December 31, 2005,
2004, and the period from Inception through December 31, 2003, respectively. In
May 2003, FID-Esprit AG ("FID-Esprit") assumed the common stock subscription
agreement with Euro-American GmbH. The Company received the outstanding balance
in installments through March 28, 2006.

During the year ended December 31, 2002, the Company issued 1,313,922 shares of
restricted common stock in conjunction with the reverse merger with PMI (see
"Organization/Nature of Business" in Note 1).

Additionally, the Company entered into a common stock purchase agreement with
FID-Esprit to purchase up to 1,000,000 shares of the Company's restricted common
stock. Under the agreement, the Company agreed to sell its common stock at a
price per share equal to 40% of the average ask price for the 20 trading days
previous to the date of subscription, as quoted on a public market. However, the
price per share will be no less than $0.40. During the years ended December 31,
2004 and 2003, the Company issued 412,249 and 66,667 shares, respectively, at
$0.40 and $0.60 per share, respectively, for cash. Such agreement was not
renewed after it expired on December 31, 2004.

In November 2005, the Company entered into a common stock purchase agreement
with FID-Esprit to sell 300,000 of the Company's restricted common shares at
$0.84 per share, or $252,000. Concurrent with such transaction, FID-Esprit
issued a promissory note to the Company for $252,000 to be paid in four
installments of $63,000 each, due on March 31, 2006, June 30, 2006, September
30, 2006, and December 31, 2006. The promissory note was paid in full during the
year ended December 31, 2006.

In December 2006, the Company entered into a common stock purchase agreement
with FID-Esprit to sell 1,500,000 of the Company's restricted common shares at
$0.60 per share, or $900,000. Concurrent with such transaction, FID-Esprit
issued a promissory note to the Company for $900,000 to be paid in five
installments of $180,000 each through December 31, 2007. FID-Esprit made a
partial payment of $37,894 against the note in December 2006. FID-Esprit paid
the remaining balance in 2007.

F-22


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


3. STOCKHOLDERS' EQUITY (continued)

PREFERRED STOCK

The Company is authorized to issue up to 20,000,000 shares of preferred stock,
$0.001 par value per share. The Board of Directors has not designated any
liquidation value, dividend rates or other rights or preferences with respect to
any such shares of preferred stock. No preferred stock has been issued as of
December 31, 2007.


4. MINORITY INTEREST

On September 28, 2006, a shareholder of the Company entered into an agreement to
contribute 50,000 Euros (approximately $63,000) to PBAG for a 15% non-voting
interest in PBAG, in accordance with certain provisions of the German Commercial
Code. The party will receive 15% of profits, as determined under the agreement,
not to exceed in any given year 30% of the capital contributed. Additionally,
the party will be allocated 15% of losses, as determined under the agreement,
not to exceed the capital contributed. The party is under no obligation to
provide additional capital contributions to the Company. During the years ended
December 31, 2007 and 2006, losses of $3,978 and $59,026, respectively, were
allocated against the minority stockholder's capital account, which has been
reported as minority interest in net loss of Proteo Biotech on the accompanying
statements of operations.


5. INCOME TAX PROVISION

There is no material income tax expense recorded for the years ended December
31, 2007 or 2006, due to the Company's net losses.

Income tax expense for the years ended December 31, 2007 and 2006 differed from
the amounts computed by applying the U.S. federal income tax rate of 34 percent
for the following reasons:

<TABLE>
<S> <C> <C>
2007 2006
--------- ---------

Income tax benefit at U.S. federal statutory rates $(151,000) $(221,000)
Change in valuation allowance 151,000 221,000
State and local income taxes, net of federal income tax effect 800 800
--------- ---------

$ 800 $ 800
========= =========
</TABLE>

F-23


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


5. INCOME TAX PROVISION (continued)

The Company has a deferred tax asset and like amount of valuation allowance of
approximately $1,374,000 at December 31, 2007, relating primarily to tax net
operating loss carryforwards, as discussed below, and timing differences related
to the recognition of accrued licensing fees..

As of December 31, 2007, the Company had tax net operating loss carryforwards
("NOLs") of approximately $632,000 and $3,607,000 (2,449,000 Euros) available to
offset future taxable Federal and foreign income, respectively. The Federal NOL
expires in varying years through 2025. The foreign net operating loss relates to
Germany and does not have an expiration date.

In the event the Company were to experience a greater than 50% change in
ownership, as defined in Section 382 of the Internal Revenue Code, the
utilization of the Company's tax NOLs could be severely restricted.


6. COMMITMENTS AND CONTINGENCIES

GRANTS

In 2001, the German state of Schleswig-Holstein granted Proteo Biotech AG
approximately 760,000 Euros for the research and development of the Company's
pharmaceutical product Elafin. The grant, as amended, covered the period from
February 1, 2001 to March 31, 2004 if certain milestones were reached by
November 15 of each year, with a possible extension as defined in the agreement.
Such amounts have been reported as a reduction of research and development
expenses in the year of receipt. During the term of this Grant, the Company
received 100% of the expected funds.

In May 2004, the German State of Schleswig-Holstein granted Proteo Biotech AG
approximately 760,000 Euros (the "New Grant") for further research and
development of the Company's pharmaceutical product Elafin. The New Grant, as
amended, covers the period from April 1, 2004 to December 31, 2007 if certain
milestones have been reached by September 30 of each year, with a possible
extension as defined in the agreement. The New Grant covers approximately 50% of
eligible research and development costs and is subject to the Company's ability
to otherwise finance the remaining costs. An additional condition of the New
Grant is that the product is to be developed and subsequently produced in the
German state of Schleswig-Holstein.

F-24


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


6. COMMITMENTS AND CONTINGENCIES (continued)

GRANTS (continued)

The Company qualified to receive approximately 217,000 Euros and 225,000 Euros
(approximately $320,000 and $298,000, respectively) of the New Grant in 2007 and
2006, respectively. New Grant funds approximating 196,000 Euros and 225,000
Euros ($289,000 and $298,000, respectively) have been received (or were due at
year end) and reported as a reduction of research and development expenses for
the years ended December 31, 2007 and 2006, respectively. The remaining
approximately 21,000 Euros (approximately $27,000) expired as of December 31,
2007 and were forfeited. As of December 31, 2007, management believes that all
milestones required by the New Grant have been satisfied.

DR. WIEDOW LICENSE AGREEMENT

On December 30, 2000, the Company entered into a thirty-year license agreement,
beginning January 1, 2001, with Dr. Oliver Wiedow, MD, the owner and inventor of
several patents, patent rights and technologies related to Elafin. In exchange
for an exclusive worldwide license for the intellectual property, the Company
agreed to pay Dr. Wiedow a licensing fee of 110,000 Euros per year, for a term
of six years for a total obligation of 660,000 Euros. Such licensing fees shall
be reduced by payments to Dr. Wiedow during such term for any royalties and for
50% of any salary. Royalties are to be paid quarterly for the term of the
agreement to Dr. Wiedow in the amount of three percent of gross revenues earned
from the sale of products based on the licensed technology. Dr. Wiedow has not
been paid any salary since execution of the agreement.

During 2004, the licensing agreement was amended to require annual payments of
30,000 Euros, to be paid on July 15 of each year, beginning on July 15, 2004.
Such amount can be increased to 110,000 Euros by June 1 of each year based on an
assessment of the Company's financial ability to make such payments. The annual
payments will continue until the entire obligation of 660,000 Euros has been
paid. In December 2007, the Company paid to Dr. Wiedow 30,000 Euros
(approximately $43,000). No other payments have been made to Dr. Wiedow as of
December 31, 2007, which is a technical breach of the agreement. Dr. Wiedow
waived such breach and deferred the prior year payments to calendar 2008.
Expense related to such license totaling $0, $139,000, and $747,000 is included
in general and administrative expense in the accompanying consolidated
statements of operations and comprehensive loss for the years ended December 31,
2007 and 2006, and for the period November 22, 2000 (inception) to December 31,
2007, respectively. No royalty expense has been recognized under the agreement
since the Company has yet to generate any related revenues. At December 31,
2007, the Company has accrued $927,900 of licensing fees payable to Dr. Wiedow.

Dr. Wiedow, who is a director of the Company, beneficially owned approximately
45% of the Company's outstanding common stock as of December 31, 2007.

F-25


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


6. COMMITMENTS AND CONTINGENCIES (continued)

DR. WIEDOW LICENSE AGREEMENT

On October 4, 1999, Dr. Wiedow and AstraZeneca PLC (formerly Zeneca Limited)
entered into an agreement to assign all patents and technology related to Elafin
to Dr. Wiedow in exchange for a royalty of 2% of any future net sales from such
patents and technology. The Company, under its December 30, 2000 licensing
agreement with Dr. Wiedow discussed above, assumed such 2% royalty obligation.

ARTES BIOTECHNOLOGY LICENSE AGREEMENT

On November 15, 2004, the Company entered into an exclusive worldwide license
and collaboration agreement with ARTES Biotechnology GmbH ("ARTES"). This
agreement enables the Company to economically produce Elafin on a large scale by
using the sublicensed yeast HANSENULA POLYMORPHA as a high performance
expression system. Rhein Biotech GmbH ("Rhein") has licensed the yeast to ARTES,
who in-turn sublicensed it to the Company. The agreement has a term of 15 years
with an annual license fee equal to the greater of 10,000 Euros (approximately
$15,000 at December 31, 2007) or 2.5% royalties on the future sales of Elafin.
Should the license agreement between Rhein and ARTES terminate, Rhein will
assume the sublicense agreement with the Company under similar terms.

RHEIN MINAPHARM AGREEMENT

In August 2007, the Company's subsidiary entered into an agreement with Rhein
Minapharm ("Mina") for clinical development, production and marketing of Elafin.
The Company has granted Mina the right to exclusively market Elafin in Egypt and
certain Middle Eastern and African countries. Under this agreement, the Company
recognized $110,000 of miscellaneous income and may receive additional
milestone-payments upon Mina's attainment of certain clinical milestones as well
as royalties on any future net product sales.

LEASES

The Company has entered into several leases for office and laboratory facilities
in Germany, expiring at dates through December 2012. Certain leases have a
rental adjustment in 2007 based on the consumer price index.

Future minimum rental payments under non-cancelable operating leases, in Euros
and equivalent U.S. dollars (based on the December 31, 2007 exchange rate),
approximate the following for the years ending December 31:

(euro) $
-------------- --------

2008 (euro) 18,000 $ 27,000
2009 18,000 27,000
2010 18,000 27,000
2011 18,000 27,000
2012 18,000 27,000
-------------- --------

(euro) 90,000 $135,000
============== ========

F-26


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


6. COMMITMENTS AND CONTINGENCIES (continued)

LEASES (continued)

The Company also leases office space in Irvine, California on a month-to-month
basis. Total rental expense for all facilities for the years ended December 31,
2007 and 2006, and for the period November 22, 2000 (inception) to December 31,
2007 approximated $38,000, $40,000 and $290,000, respectively.

LEGAL

The Company may from time to time be involved in various claims, lawsuits,
disputes with third parties, actions involving allegations of discrimination, or
breach of contract actions incidental to the operation of its business. The
Company is not currently involved in any such litigation which it believes could
have a material adverse effect on its financial condition or results of
operations.

7. LOSS PER COMMON SHARE

The following is a reconciliation of the numerators and denominators of the
basic and diluted loss per common share computations for the years ended
December 31, 2007 and 2006:

<TABLE>
<S> <C>
2007 2006
------------ ------------

Numerator for basic and diluted loss per common share:
Net loss charged to common stockholders $ (445,170) $ (649,868)

Denominator for basic and diluted loss per common share:
Weighted average number of common shares outstanding 23,879,000 23,842,000
------------ ------------

Basic and diluted loss per common share $ (0.02) $ (0.03)
============ ============
</TABLE>



F-27


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21
<SEQUENCE>2
<FILENAME>proteo_10ksbex21.txt
<TEXT>
<PAGE>

EXHIBIT 21

SUBSIDIARIES OF SMALL BUSINESS ISSUER

Proteo Biotech AG, a German joint stock corporation


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>3
<FILENAME>proteo_10ksbex31-1.txt
<TEXT>
<PAGE>

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Birge Bargmann, certify that:

1. I have reviewed this annual report on Form 10-KSB of Proteo, Inc.
(hereinafter referred to as "the small business issuer" or "the registrant");

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 registrant as
of, and for, the periods presented in this report.

4. I am 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 my supervision, to ensure that material
information relating to the small business issuer,
including its consolidated subsidiaries, is made known to
me 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 my 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 my 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 that has materially affected, or is
reasonably likely to affect, the small business issuer's
internal control over financial reporting; and;

5. I have disclosed, based on my most recent evaluation of internal
control over financial reporting, to the small business issuer's auditors and
the audit committee of 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 registrant'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 registrant's internal control over financial
reporting.


Date: April 11, 2008

By: /s/ Birge Bargmann
----------------------------------
Birge Bargmann
Chief Executive Officer
(Principal Executive Officer)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>4
<FILENAME>proteo_10ksbex31-2.txt
<TEXT>
<PAGE>

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Birge Bargmann, certify that:

1. I have reviewed this annual report on Form 10-KSB of Proteo, Inc.
(hereinafter referred to as "the small business issuer" or "the registrant");

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 registrant as
of, and for, the periods presented in this report.

4. I am 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 my supervision, to ensure that material
information relating to the small business issuer,
including its consolidated subsidiaries, is made known to
me 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 my 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 my 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 that has materially affected, or is
reasonably likely to affect, the small business issuer's
internal control over financial reporting; and;

5. I have disclosed, based on my most recent evaluation of internal
control over financial reporting, to the small business issuer's auditors and
the audit committee of 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 registrant'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 registrant's internal control over financial
reporting.


Date: April 11, 2008

By: /s/ Birge Bargmann
-------------------------------
Birge Bargmann
Chief Financial Officer
(Principal Accounting Officer)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>proteo_10ksbex32.txt
<TEXT>
<PAGE>

EXHIBIT 32

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


The undersigned hereby certifies, in her capacity as an officer of
Proteo, Inc. (the "Company"), for purposes of 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to her
knowledge:

(1) the Annual Report of the Company on Form 10-KSB for the period ended
December 31, 2007 fully complies with the requirements of Section 13(a) or
Section 15(d), as applicable, of the Securities Exchange Act of 1934, as
amended; and

(2) the information contained in the Annual Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.


Date: April 11, 2008


/s/ Birge Bargmann
- --------------------------------------------------------------------------------
Birge Bargmann
Chief Executive Officer and
Chief Financial Officer



A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN
PROVIDED TO PROTEO, INC. AND WILL BE RETAINED BY PROTEO, INC. AND FURNISHED TO
THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST.

THIS CERTIFICATION IS BEING FURNISHED PURSUANT TO RULE 15(D) AND SHALL NOT BE
DEEMED "FILED" FOR PURPOSES OF SECTION 18 OF THE EXCHANGE ACT (15 U.S.C. 78R),
OR OTHERWISE SUBJECT TO THE LIABILITY OF THAT SECTION. THIS CERTIFICATION SHALL
NOT BE DEEMED TO BE INCORPORATED BY REFERENCE INTO ANY FILING UNDER THE
SECURITIES ACT OR THE EXCHANGE ACT, EXCEPT TO THE EXTENT THAT THE COMPANY
SPECIFICALLY INCORPORATES IT BY REFERENCE.
</TEXT>
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ACCESSION NUMBER: 0001019687-08-001608
CONFORMED SUBMISSION TYPE: 10KSB
PUBLIC DOCUMENT COUNT: 5
CONFORMED PERIOD OF REPORT: 20071231
FILED AS OF DATE: 20080414
DATE AS OF CHANGE: 20080414

FILER:

COMPANY DATA:
COMPANY CONFORMED NAME: PROTEO INC
CENTRAL INDEX KEY: 0001063104
STANDARD INDUSTRIAL CLASSIFICATION: [9995]
IRS NUMBER: 880292249
STATE OF INCORPORATION: NV
FISCAL YEAR END: 1231

FILING VALUES:
FORM TYPE: 10KSB
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-30728
FILM NUMBER: 08754149

BUSINESS ADDRESS:
STREET 1: 2102 BUSINESS CENTER DRIVE
CITY: IRVINE
STATE: CA
ZIP: 92612
BUSINESS PHONE: [phone]

MAIL ADDRESS:
STREET 1: 2102 BUSINESS CENTER DRIVE
CITY: IRVINE
STATE: CA
ZIP: 92612

FORMER COMPANY:
FORMER CONFORMED NAME: TRIVANTAGE GROUP INC
DATE OF NAME CHANGE: 20010727

FORMER COMPANY:
FORMER CONFORMED NAME: PAGE ACTIVE HOLDINGS INC /
DATE OF NAME CHANGE: 19991026

FORMER COMPANY:
FORMER CONFORMED NAME: AMERICAN FLINTLOCK CO
DATE OF NAME CHANGE: 19980602
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<TEXT>
<PAGE>


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

FORM 10-KSB

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended DECEMBER 31, 2007

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: 000-30728

PROTEO, INC.
(Name of Small Business Issuer in Its Charter)

NEVADA 88-0292249
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)

2102 BUSINESS CENTER DRIVE, IRVINE, CA 92612
(Address of principal executive offices) (Zip Code)

[phone]
(Issuer's telephone number, including area code)

NONE
(Former name, former address and former fiscal year, if
changed since last report)

Securities registered under Section 12(b) of the Act:

Title of each class Name of each exchange on which registered
- ------------------------------ --------------------------------------------
None None

Securities registered under Section 12(g) of the Act:
Common Stock, par value $0.001

Check whether the issuer is not required to file reports pursuant to Section 13
or 15(d) of the Exchange Act. [ ]

Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [X]

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 issuer's revenues for its most recent fiscal year. $ -0-

State the aggregate market value of the voting and non-voting common equity held
by non-affiliates computed by reference to the price at which the common equity
was sold, or the average bid and asked price of such common equity as of a
specified date within the past 60 days (based upon 10,949,350 shares held by
non-affiliates and the closing price of $1.07 per share for the common stock on
the over-the counter market as of April 7, 2008): approximately $11,715,804.00.

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: 23,879,350 at April 7, 2008.

DOCUMENTS INCORPORATED BY REFERENCE

None.

TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT (CHECK ONE): YES [ ] NO [X]




<PAGE>

PROTEO, INC.
ANNUAL REPORT ON FORM 10-KSB
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007

TABLE OF CONTENTS

PART I
Item 1. Description of Business
Item 2. Description of Property
Item 3. Legal Proceedings
Item 4. Submission of Matters to a Vote of Security Holders

PART II
Item 5. Market for Common Equity and Related Stockholder Matters and
Purchaser of Equity Securities
Item 6. Management's Discussion and Analysis or Plan of Operation
Item 7 Financial Statements
Item 8. Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure
Item 8A (T) Controls and Procedures
Item 8B Other Information

PART III
Item 9. Directors, Executive Officers, Promoters, Control Persons and
Corporate Governance; Compliance With Section 16(a) of the
Exchange Act
Item 10. Executive Compensation
Item 11. Security Ownership of Certain Beneficial Owners
and Management and Related Stockholder Matters
Item 12. Certain Relationships and Related Transactions, and Director
Independence
Item 13. Exhibits
Item 14. Principal Accountant Fees and Services

Signatures


i



<PAGE>

PART I

This Annual Report includes forward-looking statements within the meaning of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such
statements are based on management's beliefs and assumptions, and on information
currently available to management. Forward-looking statements include the
information concerning possible or assumed future results of operations of the
Company set forth under the heading "Management's Discussion and Analysis or
Plan of Operations." Forward-looking statements also include statements in which
words such as "expect," "anticipate," "intend," "plan," "believe," "estimate,"
"consider" or similar expressions are used.

Forward-looking statements are not guarantees of future performance. They
involve risks, uncertainties and assumptions. The Company's future results and
shareholder values may differ materially from those expressed in these
forward-looking statements. Readers are cautioned not to put undue reliance on
any forward-looking statements.

ITEM 1 - DESCRIPTION OF BUSINESS

COMPANY OVERVIEW- HISTORY

Proteo, Inc. is a Nevada corporation formed on December 18, 1992. Proteo, Inc.
has one wholly owned subsidiary, Proteo Biotech AG ("PBAG"), a German
corporation (Proteo, Inc. and PBAG are hereinafter collectively referred to as
the "Company" and "Proteo"). The Company's common stock is currently quoted on
the Over-The-Counter Bulletin Board ("OTCBB") under the symbol "PTEO.OB".
Effective December 31, 2004, the Company's other wholly owned subsidiary, Proteo
Marketing, Inc. ("PMI") was merged into the Company.

PMI was incorporated in the State of Nevada and began operations on November 22,
2000. In December 2000, PMI entered into a reorganization and stock exchange
agreement with PBAG, and as a result, PBAG became a wholly owned subsidiary of
PMI.

During 2001, PMI entered into a Shell Acquisition Agreement (the "Acquisition
Agreement") with Trivantage Group, Inc. ("Trivantage"), a public "shell"
company, in a transaction accounted for as a reverse merger. In accordance with
the Acquisition Agreement, PMI first acquired 176,660,280 shares (1,313,922
post-reverse split shares, as described below) of Trivantage's common stock
representing 90% of the issued and outstanding common stock of Trivantage, in
exchange for a cash payment of $500,000 to the sole shareholder of Trivantage.
Secondly, Trivantage completed a one for one-hundred-fifty reverse stock split.
Finally, effective April 25, 2002, the shareholders of PMI exchanged their
shares of PMI for an aggregate of 20,286,512 shares of Trivantage to effect a
reverse merger between PMI and Trivantage. Subsequently, Trivantage changed its
name to Proteo, Inc.

DESCRIPTION OF BUSINESS

The Company seeks to identify potential drug candidates in the field of
inflammation. The Company's focus is on natural occurring compounds which have
proven superior biologic activity over almost all known compounds. The focus on
natural occurring compounds is driven by the assumption that these compounds
will have fewer side effects regarding metabolism and excretion. Whenever
possible, human peptides and proteins, which have no allergenic potential, will
be used.

The Company intends to develop, manufacture, promote, and market pharmaceuticals
and other biotech products. However, we do not believe that any of our planned
products will produce sufficient revenues in the next four years to support us
financially. We currently expect to sell only small quantities of these products
in the next few business years. As a result, we intend to identify and develop
other potential products. To achieve profitable operations, the Company,
independently or in collaboration with others, must successfully identify,
develop, manufacture, and market proprietary products. The products and
technologies we intend to develop will require significant commitments of
personnel and financial resources.

Our business strategy is focused on the development of pharmaceuticals based on
the body's own tools and weapons to fight inflammatory diseases. Specifically,
we are focusing our research on the development of drugs based on the human
protein Elafin. We strongly believe that Elafin will be useful in the treatment
of cardiac infarction, serious injuries caused by accidents, post-surgery damage
to tissue, and complications resulting from organ transplantation as well as
other diseases.

1


<PAGE>

Elafin is a human protein that naturally occurs in human skin, lungs and the
mammary gland. Elafin is an elastase inhibitor which inhibits the activity of
two enzymes, elastase and proteinase 3. Both of these enzymes are known to be
involved in the breakdown of tissue in various inflammatory diseases. Elafin has
proven in animal tests, that it protects tissue against destruction by these
enzymes. We intend to utilize Elafin as a drug in the treatment of various
diseases and injuries.

We believe a major indication for Elafin is as a drug in the treatment of
cardiac infarction. Cardiac infarction appears as a result of deficiencies in
the blood supply of heart muscles caused by damage to the supplying coronary
vessels. As an immediate result, the heart weakens and the heart muscles are
destroyed. Damage to tissue caused by cardiac infarction will slowly form scars.
Current methods of treatment are aimed at restoring the blood supply to the
heart, either by replacement with new blood vessels (bypass surgery) or by
removal of blood-clots in the coronary vessels (lyse therapy). Animal
experiments have shown that Elafin may be effective in protecting the heart
muscles against destruction after blood supply was interrupted.

Elafin may also be useful in the treatment of the seriously injured. Similar to
damage of heart muscles as described above, much of the damage caused by serious
injuries appear after the injury causing event (e.g.: traffic accidents). In
emergency treatment following accidents, the blood supply, nerve fibers and the
stability of bones and joints are given priority. Due to blood supply
deficiencies, inflammation will occur in injured muscles and in injured vessels.
Because muscles may be destroyed by the inflammation, limbs may have to be
amputated despite successful surgeries. Elafin may protect muscles against
damage caused by inflammation. In animal experiments, rat legs treated with
Elafin remained almost unaffected, although the blood supply of the leg was cut
off for six hours.

Elafin may also be used in the course of heart transplantation. To transplant
hearts successfully, simultaneous treatment with anti-inflammatory drugs is
necessary. Inflammations of transplanted organs are mainly caused either by
rejection of the organ by the immune system or by blood supply deficiencies
during the transplantation. Although various drugs are used today to avoid the
rejection of the organ, such rejections still occur quite often. Therefore,
additional anti-inflammatory drugs are needed, which may potentially prevent
damage caused by blood supply deficiencies. Tests carried out on rabbits at the
University of Toronto have demonstrated the effectiveness of an infusion with
Elafin after a heart transplant. In cases where Elafin was not administered, a
substantial thickening of the coronary vessel walls occurred due to temporary
circulation reduction. Thus, frequently the heart was not sufficiently supplied
with blood. Inflammation and destruction of the heart musculature, which was
partly replaced by functionless scar tissue, was the result. Treatment with
Elafin has been shown to reduce such damage to a minimal level.

Other preliminary data indicate that Elafin may be useful in a broad range of
other applications whether pharmaceutical or not. Therefore, we will attempt to
encourage other scientists, research centers as well as other companies to do
research and development on Elafin for applications other than those described
above. For example, Elafin may also be effective in the treatment of lung
diseases and defects, dermatological diseases and defects, or as an ingredient
to coat medical devices, such as stents, or in cosmetics.

Proteo owns licenses to exclusively develop products based on patents and
filings relating to Elafin, including fourteen issued patents. Of these issued
patents, three were issued in the U.S.

Further, Proteo intends to engage in the research and development of other drugs
and biotechnical products based on natural proteins. We may also be able to
implement unique technologies and biotechnological production procedures that
may enable the Company to offer related services to other companies. Additional
research and development has already begun in the areas of Leech-derived
Tryptase Inhibitors (LDTI), and Bis-acyl ureas. LDTI has been successfully
expressed in yeast, and is an inhibitor of human mast cell tryptase. LDTI
inhibits tryptase-induced human fibroblast proliferation. LDTI may be a drug
candidate for the treatment of keloid formation, scleroderma and asthma.

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<PAGE>

Bis-acyl ureas have been identified as a relevant compound in yeasts able to
induce inflammation. It activates human neutrophils in vitro and may be a
potential candidate for immune system stimulation. Methods for isolation of
bis-acyl urea from yeasts as well as synthetic production have been established.
Bis-acyl ureas and LDTIs are in the early pre-clinical stage.

Proteo works closely with the interdisciplinary research unit at the University
of Kiel in the identification of drug targets for the prevention and treatment
of infections.

In 2001 we received a grant from the German State of Schleswig-Holstein in the
approximate amount of 790,000 Euros for the research and pre-clinical
development of our pharmaceuticals based on the human protein Elafin. The grant,
as amended, covered the period from February 1, 2001 to March 31, 2004 if
certain milestones were reached by November 15 of each year, with a possible
extension as defined in the agreement. The grant required that we prove our
economic ability to otherwise finance at least 52% of the projected costs on our
own.

In May 2004 we received another grant from the German State of
Schleswig-Holstein in the approximate amount of 760,000 Euros for further
research and development of our pharmaceutical product Elafin. The 2004 grant
covered the period from April 1, 2004 to March 31, 2007 if certain milestones
were reached by September 30 of each year. The 2004 grant was extended through
December 31, 2007. The 2004 grant covered 49.74% of eligible research and
development costs and was subject to our ability to otherwise finance the
remaining 50.26% of the costs. An additional condition of the grant was that the
product had to be developed and subsequently produced in the German State of
Schleswig-Holstein.

On November 15, 2004, we entered into an exclusive worldwide license and
collaboration agreement with ARTES Biotechnology GmbH ("ARTES"). This license
agreement enables us to economically produce Elafin on a large scale by using
the sublicensed yeast HANSENULA POLYMORPHA as a high performance expression
system. Rhein Biotech GmbH ("Rhein") has licensed the yeast to ARTES, who
in-turn sublicensed it to us. The agreement has a term of 15 years with an
annual license fee of 10,000 Euros or 2.5% royalties on the future sales of
Elafin, if greater. Should the license agreement between Rhein and ARTES
terminate, Rhein will assume the sublicense agreement with the Company under
similar terms.

After developing a production procedure for Elafin, Proteo has initiated
clinical trials to achieve governmental approval for the use of Elafin as a drug
in Europe. For this purpose, Proteo has contracted Eurogentec, an experienced
Contract Manufacturing Organization (CMO) located in Belgium to produce Elafin
in accordance with GMP (good manufacturing practices) standards as required for
clinical trials.

In December 2005, Proteo successfully completed a first Phase I trial for
Elafin. Elafin was tested on 32 healthy male volunteers in a
single-ascending-dose, double blind, randomized, placebo-controlled trial to
evaluate its tolerability and safety at the Institut fur Klinische Pharmakologie
in Kiel, Germany. All intravenously applied doses were well tolerated. No severe
adverse events occurred.

In 2006, the Company gathered and evaluated additional data from the results of
the Phase I study. In addition, during 2006, we established a procedure to
incorporate Elafin as an active ingredient in cream.

In September 2006, Windhover Information, Inc., an established provider of
business information for decision makers in the biotechnology and pharmaceutical
industries, chose the Company's Elafin project as one of the top 10 most
interesting cardiovascular projects. We presented the Elafin project at the
"Windhover's Therapeutic Alliances Cardiovascular Conference" in Chicago on
November 16, 2006.

In September 2006 we filed an application with the EMEA (European Medicines
Agency) to obtain orphan drug status in the European markets for Elafin to be
used in the treatment of pulmonary hypertension. Subsequent to December 31,
2006, the Committee for Orphan Medical Products (COMP) of the EMEA issued a
positive opinion recommending the granting of orphan medicinal product
designation for Elafin for treatment of pulmonary arterial hypertension and
chronic thromboembolic pulmonary hypertension. On March 20, 2007 the orphan drug
designation became effective upon adoption of the recommendation by the European
Commission.

3


<PAGE>

In July 2007, we entered into an agreement with the University of Alberta,
Canada to cooperate in research on Elafin for the treatment of pulmonary
diseases in neonates. Animal experiments on newborn rats will be carried out by
Dr. Bernard Thebaud, associate professor at the Department of Pediatrics and
Neonatology.

In August 2007, the Company's subsidiary entered into a license agreement with
Rhein Minapharm ("Mina"), a well established Egyptian pharmaceutical company
based in Cairo, for clinical development, production and marketing of Elafin. We
have granted Mina the right to exclusively market Elafin in Egypt and certain
Middle Eastern and African countries.

In January 2008, we entered into an agreement with Stanford University,
California to cooperate in preclinical studies related to Elafin's treatment of
pulmonary arterial hypertension.

Our goal is to obtain our first governmental regulatory approval for the first
indication of our initial product in 2012. It should be noted that the first
indication, if successfully developed, would have a market potential
substantially smaller than the overall market of Elafin for more widespread
applications such as for the treatment of cardiac infarction.

OUR SUBSIDIARY

PBAG, our operating subsidiary, was formed in Kiel, Germany on April 6, 2000.
PBAG is in the business of developing pharmaceutical products based on the human
protein called Elafin and possible by-products thereof as well as related
technologies. The President and CEO of PBAG is currently Birge Bargmann. The
directors of PBAG are Oliver Wiedow, MD, Barbara Kahlke, PhD and Florian Wegner.
PBAG has five full-time employees and one part-time employee as of December 31,
2007.

To date, the Company has not had profitable operations. Furthermore, we do not
anticipate that we will have profitable operations in the near future.

COLLABORATION WITH OTHER COMPANIES

In an effort to provide the Company with some revenue which will be utilized in
the implementation of our business plan, our Subsidiary periodically may provide
research and development and manufacturing services as a sub-contractor and/or
consultant to unaffiliated companies which do not compete with the Company. We
plan to explore such opportunities if deemed advantageous to the Company.

Further, the Company actively seeks outlicensing partners, co-development
partnerships and other collaborations with third parties to generate revenues
and/or to expedite the Company's product development. However, there can be no
assurance that the Company's efforts to build such alliances will be successful
at any time or in any way.

COMPETITION

The market for our planned products and technologies is highly competitive, and
we expect competition to increase. We compete with many other health care
research product suppliers, most of which are larger than Proteo. Some of our
anticipated competitors offer a broad range of equipment, supplies, products and
technology, including many of the products and technologies contemplated to be
offered by us. To the extent that customers exhibit loyalty to the supplier that
first supplies them with a particular product or technology, our competitors may
have an advantage over us with respect to such products and technologies.
Additionally, many of our competitors have, and will continue to have, greater
research and development, marketing, financial and other resources than us and,
therefore, represent and will continue to represent significant competition in
our anticipated markets. As a result of their size and the breadth of their
product offering, certain of these companies have been and will be able to
establish managed accounts by which, through a combination of direct computer
links and volume discounts, they seek to gain a disproportionate share of orders
for health care products and technologies from prospective customers. Such
managed accounts present significant competitive barriers for us. It is
anticipated that we will benefit from their participation in selected markets,
which, as they expand, may attract the attention of our competitors. The
business of research and development of pharmaceuticals for the treatment of
cardiac infarction is intensely competitive. Major companies with immense
financial and personal resources are also engaged in this field.

4


<PAGE>

Elastase inhibitors such as Elafin, have been under research and development in
the pharmaceutical industry for more than ten years. Currently, there have been
more than 200 related patents granted. Most of these substances are produced
synthetically, and are not applicable in the treatment of cardiac infarctions.
Three other elastase inhibitors, secretory leukoprotease inhibitor (SLPI),
alpha-1-antitrypsin and recombinant monocyte/neutrophil elastase inhibitor
(rM/NEI), are similar to Elafin in that they are of human descent and may be
applied like Elafin principally. From the human protein inter-alpha-trypsin
inhibitor a highly elastase inhibitor, depelestat, has been engineered. Four
other substances, ZD8321, ZD0892, SSR69071 and ONO-5046, are artificial elastase
inhibitors which may have effectiveness comparable to that of Elafin.

SECRETORY LEUKOPROTEASE INHIBITOR (SLPI)

Amgen, Inc. is the owner of the patent for SLPI. Amgen purchased this patent by
acquiring Synergen, Inc. SLPI is quite similar to Elafin. Nevertheless, SLPI has
some disadvantages in its intended application in the treatment of cardiac
infarctions and in the treatment of serious injuries. It is only effective
against one (leukocyte-elastase) of the two (leukocyte-elastase and proteinase
3) major enzymes which destroy tissue, while Elafin has shown effectiveness
against both. Therefore, Elafin is probably more effective. Furthermore, SLPI is
not as stable as Elafin, which is a disadvantage in its distribution as a drug.
SLPI was discovered much earlier than Elafin; therefore, the remaining term of
the covering patent should be shorter than that related to Elafin. Amgen has not
mentioned any further development of SLPI as a drug candidate since its annual
report for 1998.

ALPHA-1-ANTITRYPSIN

Human blood naturally contains relatively large amounts of alpha-1-antitrypsin.
Research into the use of alpha-1-antitrypsin for the treatment of cardiac
infarctions, shock and other serious inflammations has been ongoing for the last
twenty years. Compared to Elafin, however, there are some substantial problems
related to alpha-1-antitrypsin. For example, alpha-1-antitrypsin is not as
stable as Elafin, and therefore, from the scientific point of view it is
probably not as effective as Elafin. Alpha-1-antitrypsin has received approval
for the use as a drug in genetic deficiency of alpha-1-antitrypsin and is
currently produced from pooled human sera. Recombinant production of
alpha-1-antitrypsin has been established by Arriva Pharmaceuticals Inc., and
clinical trials for the use as an aerosol for the treatment of
alpha-1-antitrypsin deficiency have been conducted by Baxter Bioscience.

RECOMBINANT MONOCYTE/NEUTROPHIL ELASTASE INHIBITOR (RM/NEI)

This compound of human descent is currently under development for the treatment
of cystic fibrosis and to be applied by inhalation devices. IVAX Corporation has
entered into a license option agreement with the Center for Blood Research, Inc.
(CBR), an affiliate of the Harvard Medical School, which holds the rights to
this compound.

ONO-5046 (SIVELESTAT)

Ono Pharmaceutical Co. Ltd., in Japan has developed the synthetic elastase
inhibitor ONO-5046 (Sivelestat). Ono received approval in 2002 to use Sivelestat
as a drug for the indication "Amelioration of acute lung disease accompanying
generalized inflammatory syndrome" in Japan and in Korea (Dong-A, Pharmaceutical
Co., Ltd., Seoul) in 2006.

DEPELESTAT

A further elastase inhibitor has been engineered from the Kunitz domain of human
inter-alpha-trypsin inhibitor. This peptide was found to be a potent inhibitor
of human elastase, however, other than in the case of Elafin, it is reported
that no other proteases, including proteinase 3, were inhibited. Currently
Depelestat is being clinically developed by Debiopharm for use as an aerosol in
the treatment of cystic fibrosis.

GOVERNMENT REGULATION

The Company is, and will continue to be, subject to governmental regulation
under the Occupational Safety and Health Act, the Environmental Protection Act,
the Toxic Substances Control Act, and other similar laws of general application,
as to all of which we believe we are in material compliance. Any future change
in, and the cost of compliance with, these laws and regulations could have a
material adverse effect on the business, financial condition, and results of
operation of the Company.

5


<PAGE>

Because of the nature of our operations, the use of hazardous substances, and
our ongoing research and development and manufacturing activities, we are
subject to stringent federal, state and local and foreign laws, rules,
regulations and policies governing the use, generation, manufacturing, storage,
air emission, effluent discharge, handling and disposal of certain materials and
wastes. Although we believe that we are in material compliance with all
applicable governmental and environmental laws, rules, regulations and policies,
there can be no assurance that the business, financial conditions, and results
of operations of the Company will not be materially adversely affected by
current or future environmental laws, rules, regulations and policies, or by
liability occurring because of any past or future releases or discharges of
materials that could be hazardous.

Additionally, the clinical testing, manufacture, promotion and sale of a
significant majority of the products and technologies of the Company, if those
products and technologies are to be offered and sold in the United States, are
subject to extensive regulation by numerous governmental authorities in the
United States, principally the FDA and corresponding state regulatory agencies.
Additionally, to the extent those products and technologies are to be offered
and sold in markets other than the United States, the clinical testing,
manufacture, promotion and sale of those products and technologies will be
subject to similar regulation by corresponding foreign regulatory agencies. In
general, the regulatory framework for biological health care products is more
rigorous than for non-biological health care products. Generally, biological
health care products must be shown to be safe, pure, potent and effective. There
are numerous state and federal statutes and regulations that govern or influence
the testing, manufacture, safety, effectiveness, labeling, storage, record
keeping, approval, advertising, distribution and promotion of biological health
care products. Non-compliance with applicable governmental requirements can
result in, among other things, fines, injunctions, seizures of products, total
or partial suspension of product marketing, failure of the government to grant
pre-market approval, withdrawal of marketing approvals, product recall and
criminal prosecution.

PATENTS, LICENSES & ROYALTIES

The Company owns licenses to exclusively develop products based on patents and
filings including fourteen patents already issued. The issued patents include
three patents which have been issued in the United States of America. The
Company does not have title to any patents; title to the patents rests with Dr.
Wiedow.

Dr. Wiedow will receive three percent of the gross revenues of the Company from
products based on patents of which he was the principal inventor. Further, Dr.
Wiedow will receive license fees in the amount of 110,000 Euros per year for a
period of six years through December 31, 2006, for an aggregate of 660,000
Euros, and refund all expenses to maintain the patents (patent fees, legal fees,
etc.). Such license fees shall be reduced by any other royalties paid to Dr.
Wiedow. As of the date of this annual report, 30,000 Euros (approx. $43,000)
have been paid to Dr. Wiedow, and 630,000 Euros (approx. $928,000) have been
accrued as a liability.

AstraZeneca Inc. (formerly Zeneca Inc., formerly ICI Pharmaceuticals Inc.) had
held the patents for Elafin for several years and has significantly contributed
to the current knowledge. Therefore, AstraZeneca Inc. will receive two percent
of the net sales of the Company from products based on patents in which Dr.
Wiedow was the principal inventor. Proteo holds an exclusive license for the
following patents:

USA US 5464822
USA US 6245739
USA US 6893843
EU EP 0402068
Japan JP 2989853
Australia AU 636148
Canada CA 2018592
Finland FI 902880
Ireland IE 070520
Israel IL 094602
New Zealand NZ 233974
Norway NO 177716
Portugal PT 094326
South Africa ZA 9004461

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<PAGE>

EMPLOYEES

As of December 31, 2007 Proteo had five full-time employees, all working at our
offices in Germany.

ITEM 2 - DESCRIPTION OF PROPERTY

In October 2001, the Company entered into several leases for office and
laboratory facilities in Germany beginning January 2002 and expiring at dates
through December 2011. One lease for office space at Kiel, Germany was canceled
as of October 31, 2005. In June 2004 and in August 2005, we entered into leases
for lab and office space and additional office space, respectively, expiring
through December 2008. Certain leases have a rental adjustment in 2007 based on
the consumer price index. The aggregate monthly rental under the foregoing
leases is approximately $3,500.

ITEM 3 - LEGAL PROCEEDINGS

The Company may from time to time be involved in various claims, lawsuits, and
disputes with third parties, actions involving allegations of discrimination, or
breach of contract actions incidental to the operation of its business. The
Company is not currently involved in any litigation which it believes could have
a materially adverse effect on its financial condition or results of operations.

ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None

PART II

ITEM 5 - MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS AND PURCHASER
OF EQUITY SECURITIES

Our common stock is quoted on the OTC Bulletin Board under the symbol PTEO.OB.
The table below gives the range of high and low bid prices of our common stock
for the fiscal years ended December 31, 2007 and 2006 based on information
provided by the OTC Bulletin Board. Such over-the-counter market quotations
reflect inter-dealer prices, without mark-up, mark-down or commissions and may
not necessarily represent actual transactions or a liquid trading market.

COMMON STOCK PRICES

YEAR PERIOD HIGH LOW
------- --------
2007 First Quarter $0.71 $0.36
Second Quarter 0.67 0.46
Third Quarter 0.65 0.28
Fourth Quarter 1.01 0.30


2006 First Quarter $1.55 $0.56
Second Quarter 1.01 0.51
Third Quarter 0.98 0.41
Fourth Quarter 0.75 0.36

On April 7, 2008, the last sales price of our common stock was $1.07 per share.
No cash dividends have been paid on our common stock for the 2007 and 2006
fiscal years and no change of this policy is under consideration by the Board of
Directors. The payment of cash dividends in the future will be determined by the
Board of Directors in light of conditions then existing, including our Company's
earnings (if any), financial requirements, and opportunities for reinvesting
earnings (if any), business conditions, and other factors. There are otherwise
no restrictions on the payment of dividends.

NUMBER OF SHAREHOLDERS

As of March 21, 2008, the number of shareholders of record of the Company's
common stock was 1,808.

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<PAGE>

PENNY STOCK

Until we satisfy the initial listing requirements for the Nasdaq Stock Market
and successfully apply to have our shares of common stock listed thereon, the
public trading, if any, of our common stock will be on the OTCBB. As a result,
an investor may find it more difficult to dispose of, or to obtain accurate
quotations as to the price of, our common stock. Our common stock is subject to
provisions of Section 15(g) and Rule 15g-9 of the Exchange Act, commonly
referred to as the "penny stock rule." Section 15(g) sets forth certain
requirements for transactions in penny stocks, and Rule 15g-9(d) incorporates
the definition of "penny stock" that is found in Rule 3a51-1 of the Exchange
Act. The SEC generally defines "penny stock" to be any equity security that has
a market price less than $5.00 per share, subject to certain exceptions. If our
common stock is deemed to be a penny stock, trading in the shares will be
subject to additional sales practice requirements on broker-dealers who sell
penny stocks to persons other than established customers and accredited
investors. "Accredited investors" are persons with a net worth exceeding
$1,000,000 or annual income exceeding $200,000 (or $300,000 together with their
spouse) in each of the two most recent fiscal years and reasonably expect to
reach the same income level in the current year. For transactions covered by
these rules, broker-dealers must make a special suitability determination for
the purchase of such security and must have the purchaser's written consent to
the transaction prior to the purchase. Additionally, for any transaction
involving a penny stock, unless exempt, the rules require the delivery, prior to
the first transaction, of a risk disclosure document, prepared by the SEC,
relating to the penny stock market. A broker-dealer also must disclose the
commissions payable to both the broker-dealer and the registered representative,
and current quotations for the securities. Finally, monthly statements must be
sent disclosing recent price information for the penny stocks held in an account
and information on the limited market in penny stocks. Consequently, these rules
may restrict the ability of a broker-dealer to trade and/or maintain a market in
our common stock and may affect the ability of our shareholders to sell their
shares.

DIVIDEND POLICY

To date, we have declared no cash dividends on our Common Stock, and do not
expect to pay cash dividends in the near term. We intend to retain future
earnings, if any, to provide funds for operation of our business.

EQUITY COMPENSATION PLAN INFORMATION

We have no equity compensation plans as of December 31, 2007.

RECENT SALES OF UNREGISTERED SECURITIES

On December 22, 2006, we entered into a Common Stock Purchase Agreement (the
"Agreement") with FIDEsprit AG, a Swiss corporation (the "Investor"). Pursuant
to the Agreement, we agreed to issue and sell to the Investor 1,500,000 shares
of our common stock at a purchase price of $0.60 per share, for an aggregate
purchase price of $900,000. In payment of the purchase price, the Investor
delivered to us a promissory note in the principal amount of $900,000. The
promissory note does not bear any interest, and is payable in five installments
of $180,000, with the first payment due on the date the shares were issued, on
December 22, 2006, followed by four quarterly payments commencing on March 31,
2007, June 30, 2007, September 30, 2007 and December 31, 2007. The aggregate
purchase price of $900,000 has been paid in full in installments through
December 14, 2007.

In November 2005, the Company entered into a common stock purchase agreement to
sell 300,000 shares of the Company's restricted common stock at a price of $0.84
per share or $256,000 in exchange for a promissory note, bearing no interest.
Payments under the promissory note must be made in four equal installments of
$64,000 each, falling due on March 31, 2006, June 30, 2006, September 30, 2006
and December 31, 2006, respectively. This promissory note has been paid in full.

ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

CAUTIONARY STATEMENTS:

This Annual Report on Form 10-KSB contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Exchange Act. The Company intends that such forward-looking statements be
subject to the safe harbors created by such statutes. The forward-looking
statements included herein are based on current expectations that involve a
number of risks and uncertainties. Accordingly, to the extent that this Annual


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Report contains forward-looking statements regarding the financial condition,
operating results, business prospects or any other aspect of the Company, please
be advised that the Company's actual financial condition, operating results and
business performance may differ materially from that projected or estimated by
management in forward-looking statements. The differences may be caused by a
variety of factors, including but not limited to adverse economic conditions,
intense competition, including intensification of price competition and entry of
new competitors and products, adverse federal, state and local government
regulation, inadequate capital, unexpected costs and operating deficits,
increases in general and administrative expenses, and other specific risks that
may be alluded to in this Annual Report or in other reports issued by the
Company. In addition, the business and operations of the Company are subject to
substantial risks that increase the uncertainty inherent in the forward-looking
statements. The inclusion of forward looking statements in this Annual Report
should not be regarded as a representation by management or any other person
that the objectives or plans of the Company will be achieved.

The Company currently generates minor nonoperating revenue from its
out-licensing activities and does not expect to report any significant operating
revenue until the successful development and marketing of its planned
pharmaceutical and other biotech products. Additionally, after the launch of the
Company's products, there can be no assurance that the Company will generate
positive cash flow and there can be no assurance as to the level of operating
revenues, if any, the Company may actually achieve from its planned principal
operations.

PLAN OF OPERATION

The Company specializes in the research, development and marketing of drugs for
inflammatory diseases with Elafin as its first project. The Company's management
deems Elafin to be one of the most prospective substances in the treatment of
serious tissue and muscle damage. Independently conducted animal experiments
have indicated that Elafin may have benefits in the treatment of tissue and
muscle damage caused by insufficient oxygen supply and therefore may be useful
in the treatment of heart attacks, serious injuries and in the course of organ
transplants. Other applications have yet to be determined.

The Company intends to implement Elafin as a drug in the treatment of
inflammatory diseases, and intends to achieve governmental approval in Europe
first. Currently, management estimates that it will take at least four years to
achieve its first governmental approval for the use of Elafin as a drug for the
first indication.

The Company's success will depend on its ability to prove that Elafin is well
tolerated by humans and its efficacy in the indicated treatment. There can be no
assurance that the Company will be able to develop feasible production
procedures in accordance with Good Manufacturing Practices ("GMP") standards, or
that Elafin will receive any governmental approval for its use as a drug in any
of the intended applications.

A necessary pre-requisite for the commencement of clinical trials was the
production of Elafin according to GMP Standards. In anticipation of commencing
clinical trials, on March 18, 2005 we entered into a contractual agreement with
Eurogentec S.A., located in Liege, Belgium, an experienced Contract
Manufacturing Organization (CMO), for the production of a required amount of
Elafin according to GMP standards. The authorities demand strict standards for
the manufacture of medicines for clinical testing, and the GMP production of
Elafin for clinical trials must comply with a large number of rules and
regulations. Eurogentec completed its required production run of Elafin which
was used in our clinical trial discussed below.

In April 2005, we entered into an agreement with the German Institut fur
klinische Pharmakologie ("IKP"), an experienced Contract Research Organization
(CRO), to assist us with our initial clinical trial involving Elafin, to
evaluate the tolerability, safety, pharmacokinetic and dynamics of Elafin
pursuant to a clinical protocol [e.g. with healthy young men]. In November 2005
we commenced, and in December 2005, we successfully completed, a first Phase I
trial for Elafin. Elafin was tested on 32 healthy male volunteers in a
single-ascending-dose, double blind, randomized, placebo-controlled trial to
evaluate tolerability and safety at the IKP in Kiel, Germany. All intravenously
applied doses were well tolerated. No severe adverse events occurred.

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During 2006, the Company gathered and evaluated additional data from the results
of the Phase I study, and we are currently in the process of planning a Phase II
clinical trial. The design of a first Phase II study, which is intended to prove
Elafin's efficacy in a certain indication, is substantially complete. The
realization of such Phase II study will depend widely on the Company's ability
to acquire sufficient funds in its financial activities. In addition, during
2006, we established a procedure to incorporate Elafin as an active ingredient
in cream.

In September 2006 we filed an application with the EMEA (European Medicines
Agency) to obtain orphan drug status in the European markets for Elafin to be
used in the treatment of pulmonary hypertension. Subsequent to December 31,
2006, the Committee for Orphan Medical Products (COMP) of the EMEA adopted a
positive opinion recommending the granting of orphan medicinal product
designation for Elafin for treatment of pulmonary arterial hypertension and
chronic thromboembolic pulmonary hypertension. The orphan drug designation
became effective on March 20, 2007 upon adoption of the recommendation by the
European Commission.

In September 2006, Windhover Information, Inc., an established provider of
business information for decision makers in the biotechnology and pharmaceutical
industries, chose our Elafin project as one of the top 10 unlicensed
cardiovascular compounds. We presented the Elafin project at the "Windhover's
Therapeutic Alliances Cardiovascular Conference" in Chicago, United States on
November 16, 2006.

In July 2007, we entered into an agreement with the University of Alberta,
Canada to cooperate in research on Elafin for the treatment of pulmonary
diseases in neonates. Proteo will initially provide support for animal
experiments with its lead product on newborn rats to be carried out by Dr.
Bernard Thebaud, associate professor at the Department of Pediatrics and
Neonatology and a recognized authority in this area, with profound knowledge of
animal models and substantial clinical experience.

In August 2007, the Company's subsidiary entered into an agreement with Mina for
clinical development, production and marketing of Elafin. We have granted Mina
the right to exclusively market Elafin in Egypt and certain Middle Eastern and
African countries. Proteo received an initial payment of $110,000 upon execution
of the agreement, and may receive milestone-payments upon Mina's attainment of
certain clinical milestones as well as royalties on future net product sales. In
addition, Mina will take over the funding of clinical research activities for
the designated region. The agreement schedules the transfer of the
biotechnological production process of Elafin to Cairo.

In January 2008 we entered into an agreement with Stanford University, in
California, to cooperate in preclinical studies related to Elafin's treatment of
pulmonary arterial hypertension. Proteo will provide support for animal
experiments conducted by Marlene Rabinovitch, Research Director of the Vera
Moulton Wall Center for Pulmonary Vascular Disease at Stanford University who is
a renowned expert in the field, and her group at the university.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception we have raised a total of approximately $4,983,000 from the
sale of 20,065,428 shares of our common stock, of which 6,585,487 shares,
300,000 shares and 1,500,000 shares have been sold at $0.40 per share, $0.84 per
share and $0.60 per share, respectively, under stock subscription agreements in
the amount of approximately $2,035,000, $252,000 and $900,000, respectively.

In May 2004, the German State of Schleswig-Holstein granted Proteo Biotech AG
approximately 760,000 Euros (the "2004 Grant") for further research and
development of the Company's pharmaceutical product Elafin. The 2004 Grant, as
amended, covers the period from April 1, 2004 to December 31, 2007 if certain
milestones have been reached by September 30 of each year, with a possible
extension as defined in the agreement. The 2004 Grant covers 49.74% of eligible
research and development costs and is subject to the Company's ability to
otherwise finance the remaining costs. An additional condition of the grant is
that the product is to be developed and subsequently produced in the German
state of Schleswig-Holstein.

The Company qualified to receive approximately 196,109 Euros and 225,000 Euros
under the 2004 Grant in 2007 and 2006, respectively. In 2007, we received grant
funds approximating 172,000 Euros and qualified for an additional 23,623 Euros
recorded as a receivable as of December 31, 2007. We did not qualify for
approximately 21,000 Euros under the 2004 Grant by December 31, 2007 which
amount was not rolled forward and forfeited. As of December 31, 2007, management
believes that all milestones required by the 2004 Grant have been satisfied.

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The Company has cash approximating $803,000 as of December 31, 2007. This is a
significant increase over the December 31, 2006 cash balance of approximately
$269,000, due to receipts from the 2004 Grant, the payment received from Mina
and the payments on the promissory note received from the Investor in connection
with our stock sale in December 2006.

Management believes that the Company will not generate any significant revenues
for at least the next four years, nor will it have sufficient cash to fund
operations. As a result, the Company's success will largely depend on its
ability to secure additional funding through the sale of its Common Stock and/or
the sale of debt securities. There can be no assurance, however, that the
Company will be able to consummate debt or equity financing in a timely manner,
or on a basis favourable to the Company, if at all.

CAPITAL EXPENDITURES

None significant.

GOING CONCERN

The Company's independent registered public accounting firm has stated in their
Auditor's Report included in this Form 10-KSB that the Company will require a
significant amount of additional capital to advance the Company's products to
the point where they may become commercially viable and has incurred significant
losses since inception. These conditions, among others, raise substantial doubt
about the Company's ability to continue as a going concern.

The Company intends to fund operations through grant proceeds and increased
equity financing arrangements which management believes may be insufficient to
finance its capital expenditures, working capital and other cash requirements
for the fiscal year ending December 31, 2008. Therefore, the Company will be
required to seek additional funds to finance its long-term operations. The
successful outcome of future activities cannot be determined at this time and
there is no assurance that if achieved, the Company will have sufficient funds
to execute its intended business plan or generate positive operating results.

INFLATION

Management believes that inflation has not had a material effect on the
Company's results of operations.

OFF BALANCE SHEET ARRANGEMENTS

The Company does not currently have any off balance sheet arrangements.

ACCOUNTING MATTERS

CRITICAL ACCOUNTING POLICIES

In December 2001, the SEC requested that all registrants list their three to
five most "critical accounting policies" in Item 6 of this Annual Report. The
SEC indicated that a "critical accounting policy" is one which is both important
to the portrayal of the Company's financial condition and results, and requires
management's most difficult, subjective or complex judgments, often as a result
of the need to make estimates about the effect of matters that are inherently
uncertain. We believe that the following accounting policies fit this
definition:

GRANTS - GENERAL

The Company received grants from the German government which are used to fund
research and development activities and the acquisition of equipment. Grants for
the reimbursement of research and development expenses are offset against
research and development expenses in the accompanying consolidated statements of
operations when the related expenses are incurred. Grants related to the
acquisition of tangible property are recorded as a reduction of the property's
historical cost.

FOREIGN CURRENCY TRANSLATION

Assets and liabilities of the Company's German operations are translated into
U.S. dollars at period-end exchange rates. Grants and expenses are translated at
weighted average exchange rates for the period. Net exchange gains or losses
resulting from such translation are excluded from net loss but are included in
comprehensive income and loss and accumulated in a separate component of
stockholders' equity (deficit). Such amount approximated $370,000 at December
31, 2007.

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The Company records payables related to a licensing agreement in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 52, "Foreign Currency
Translation." Quarterly commitments under such agreement are denominated in
Euros. For each reporting period, the Company translates the quarterly amount to
US dollars at the exchange rate effective on that date. If the exchange rate
changes between when the liability is incurred and the time payment is made, a
foreign exchange gain or loss results. The Company paid approximately $43,000
under this licensing agreement during the year ended December 31, 2007, and did
not realize any significant foreign currency exchanges gains or losses. Prior to
2007 the Company made no payments under such agreement.

Additionally, the Company computes a foreign exchange gain or loss at each
balance sheet date on all recorded transactions denominated in foreign
currencies that have not been settled. The difference between the exchange rate
that could have been used to settle the transaction at the date it occurred, and
the exchange rate at the balance sheet date, is the unrealized gain or loss
recognized in current operations. The Company recorded an unrealized foreign
currency transaction loss of approximately $101,000 for the year ended December
31, 2007. The Company recorded an unrealized foreign currency transaction loss
of approximately $81,000 for the year ended December 31, 2006.

RISKS AND UNCERTAINTIES

The Company maintains its cash in foreign accounts and not in bank depository
accounts insured by the Federal Deposit Insurance Corporation. The Company has
not experienced any losses in these accounts.

The Company's research and development activities and most of its assets are
located in Germany. The Company's operations are subject to various political,
economic, and other risks and uncertainties inherent in Germany and the European
Union ("EU").

INCOME TAXES

We account for income taxes under the asset and liability method, which requires
the recognition of deferred tax assets and liabilities for the expected future
tax consequences of events that have been included in the financial statements.
Under this method, deferred tax assets and liabilities are determined based on
the differences between the financial statements and tax basis of assets and
liabilities using enacted tax rates in effect for the year in which the
differences are expected to reverse. The effect of a change in tax rates on
deferred tax assets and liabilities is recognized in income in the period that
includes the enactment date.

We record net deferred tax assets to the extent we believe these assets will
more likely than not be realized. In making such determination, we consider all
available positive and negative evidence, including scheduled reversals of
deferred tax liabilities, projected future taxable income, tax planning
strategies and recent financial operations. In the event we were to determine
that we would be able to realize our deferred income tax assets in the future in
excess of their net recorded amount, we would make an adjustment to the
valuation allowance which would reduce the provision for income taxes.

In July 2006, the FASB issued Financial Interpretation ("FIN") No. 48,
"Accounting for Uncertainty in Income Taxes," which clarifies the accounting for
uncertainty in income taxes recognized in the financial statements in accordance
with SFAS No. 109, "Accounting for Income Taxes." FIN No. 48 provides that a tax
benefit from an uncertain tax position may be recognized when it is more likely
than not that the position will be sustained upon examination, including
resolutions of any related appeals or litigation processes, based on the
technical merits. Income tax positions must meet a more-likely-than-not
recognition threshold at the effective date to be recognized upon the adoption
of FIN 48 and in subsequent periods. This interpretation also provides guidance
on measurement, derecognition, classification, interest and penalties,
accounting in interim periods, disclosure and transition. FIN 48 is effective
for fiscal years beginning after December 15, 2006.

The Company adopted the provisions of FASB Interpretation No. 48, Accounting for
Uncertainty in Income Taxes, on January 1, 2007. The Company did not recognize
any additional liability for unrecognized tax benefit as a result of the
implementation.

The Company will recognize interest and penalties related to unrecognized tax
benefits within the income tax expense line in the accompanying consolidated
statement of operations. As of December 31, 2007 the Company has not recognized
liabilities for penalty and interest as the Company does not have liability for
unrecognized tax benefits.


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COMPREHENSIVE INCOME (LOSS)

The Company adopted SFAS No. 130 "Reporting Comprehensive Income," which
establishes standards for reporting and display of comprehensive income (loss)
and its components in a full set of general-purpose financial statements. Total
comprehensive income (loss) represents the net change in stockholders' equity
(deficit) during a period from sources other than transactions with stockholders
and as such, includes net earnings or loss. For the Company, the components of
other comprehensive income (loss) are the foreign currency translation
adjustments that are recorded as components of stockholders' equity (deficit).

GRANTS

In May 2004 PBAG received a grant from the German State of Schleswig-Holstein in
the approximate amount of 760,000 Euros for further research and development of
our pharmaceutical product Elafin. The grant covered the period from April 1,
2004 to March 31, 2007 if certain milestones had been reached by September 30 of
each year. In November 2006, the grant was extended through December 31, 2007.
PBAG qualified to receive approximately 217,000 Euros (approximately $320,000)
of the New Grant in 2007. New Grant funds approximating 196,000 Euros ($289,000)
have been received (or were due at year end). The remaining amount of
approximately 21,000 Euros was forfeited.

ITEM 7 - FINANCIAL STATEMENTS

The consolidated financial statements and corresponding notes to the
consolidated financial statements called for by this item appear under the
caption Index to Financial Statements (Page F-1 hereof).

ITEM 8 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE

None.

ITEM 8A(T) - CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e)
under the Exchange Act) that are designed to ensure that information that would
be required to be disclosed in Exchange Act reports is recorded, processed,
summarized and reported within the time period specified in the SEC's rules and
forms, and that such information is accumulated and communicated to our
management, including to Birge Bargmann our Chief Executive Officer and Chief
Financial Officer, to allow timely decisions regarding required disclosure.

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As required by Rule 13a-15 under the Exchange Act, our management, including
Birge Bargmann our Chief Executive Officer and Chief Financial Officer,
evaluated the effectiveness of the design and operation of our disclosure
controls and procedures as of December 31, 2007. Based on that evaluation, Ms.
Bargmann concluded that as of December 31, 2007, and as of the date that the
evaluation of the effectiveness of our disclosure controls and procedures was
completed our disclosure controls and procedures were not effective to satisfy
the objectives for which they are intended because of the material weakness
described below.

INTERNAL CONTROLS OVER FINANCIAL REPORTING

MANAGEMENT'S ANNUAL REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING.

Section 404(a) of the Sarbanes-Oxley Act of 2002 requires that management
document and test the Company's internal control over financial reporting and
include in this Annual Report on Form 10-KSB a report on management's assessment
of the effectiveness of our internal control over financial reporting.

Our management is responsible for establishing and maintaining adequate internal
control over financial reporting, as such term is defined in Rule 13a-15(f) of
the Exchange Act. Under the supervision and with the participation of our
management, including Ms. Bargmann our Chief Executive Officer and Chief
Financial Officer, we conducted an evaluation of the effectiveness of our
internal control over financial reporting based upon the framework in Internal
Control--Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). This evaluation and assessment
led to the identification of a material weakness in our internal control over
financial reporting as indicated below:

We lack the necessary depth of personnel with sufficient technical U.S.
accounting expertise to ensure that our interim and annual financial statements
(including the required footnote disclosures)can be prepared without material
misstatements.

Our plan to remediate the material weakness as of December 31, 2007 is to
utilize an outside consulting resource to prepare and review interim and annual
financial statements.

This annual report does not include an audit report of our registered public
accounting firm regarding internal control over financial reporting. In
addition, Management's report on internal control over financial reporting is
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 annual report.

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTIng.

During the fiscal year ended December 31, 2007, there were no changes in our
internal control over financial reporting identified in connection with the
evaluation performed during the fiscal year covered by this report that has
materially affected, or is reasonably likely to materially affect, our internal
control over financial reporting.

ITEM 8B - OTHER INFORMATION

None.

PART III

ITEM 9 - DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, CONTROL PERSONS AND CORPORATE
GOVERNANCE; COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

The following table sets forth the names and ages of the current and incoming
directors and executive officers of the Company and the principal offices and
positions with the Company held by each person. The Board of Directors elects
the executive officers of the Company annually. The directors serve one-year
terms until their successors are elected. The executive officers serve terms of
one year or until their death, resignation or removal by the Board of Directors.

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NAME AGE POSITIONS
Birge Bargmann 46 President, Chief Executive
Officer, Chief Financial
Officer and Director
Dr. Barbara Kahlke 43 Secretary
Joerg Alte 47 Director
Professor Oliver Wiedow, MD. 50 Director
Holger Pusch 51 Director
Hartmut Weigelt, Ph.D. 62 Director

BIOGRAPHICAL INFORMATION:

Birge Bargmann has served as our President, Chief Executive Officer and Chief
Financial Officer since November 2005 and a Director of the Company since
December 2000. In November 2005, she was appointed CEO and CFO of the Company
and its subsidiary. Ms. Bargmann was a member of the Supervisory Board of Proteo
Biotech AG from 2002 to 2005. Since 1989, Ms. Bargmann has worked as a medical
technique assistant engaged in the Elafin project at the dermatological clinic
of the University of Kiel. She co-developed and carried out procedures to detect
and to purify Elafin.

Dr. Barbara Kahlke has served as our Secretary since August 2004. She has been a
member of the Supervisory Board of Proteo Biotech AG since May 2002, and a
scientific researcher for Proteo Biotech AG since May 2000. Dr. Kahlke is a
biologist, having received her doctorate from Christian-Albrechts-University in
Kiel, Germany. Since 1994, Dr. Kahlke has worked for a medium-sized German
pharmaceutical company with responsibilities in molecular biology and in protein
production in compliance with GMP. She discovered the biological activity of
bis-acyl urea.

Joerg Alte has served as a Director of the Company since December 2000. Mr. Alte
served as our President, Chief Executive Officer and Chief Financial Officer
from 2000 to 2003. Mr. Alte is a German lawyer by training and practice. After
studying law and passing his second state examination, he worked for more than
three years at a German law office predominantly engaged in economic and
corporate laws with both public and private company clients engaged in
international business. Subsequently, Mr. Alte worked as a legal advisor with a
German diagnostic company, where he also practiced German and U.S. securities
laws. From November 1998 to April 2000, Mr. Alte served as President and CEO for
Sangui Biotech International, Inc., a publicly traded company. Since September
2007, Mr. Alte has served as managing director of FIDEsprit AG, a Swiss
investment company.

Prof. Oliver Wiedow, M.D. has served as a Director of the Company since December
2000. Professor Wiedow served as our President, Chief Executive Officer and
Chief Financial Officer from January 2004 to June 2004 and has served as a
member of the Supervisory Board of Proteo Biotech AG since 2000. Since 1985
Professor Wiedow has served as physician and scientist at the University of
Kiel, Germany. Prof. Wiedow discovered Elafin in human skin and has researched
its biological effects.

Holger Pusch has served as a Director of the Company since December 2000. For
the last 23 years, Mr. Pusch worked in different marketing and sales functions
for major German companies. Mr. Pusch is currently the Managing Director of
Lupus Imaging & Media GmbH & Co. KG, a company in the photo business, a position
he has held since October 2006. From March 1, 2006 to October 2006, Mr. Pusch
worked for Connect Consulting GmbH, in Bonn Germany. From October 1989 to March
2006 he worked for Agfa Geveart AG and its successor as a result of a spin-off
in November 2004, AgfaPhoto GmbH.

Hartmut Weigelt, Ph.D. has served as a Director of the Company since December
2000. Dr. Weigelt was a member of the Supervisory Board of Proteo Biotech AG
from 2000 to 2003. Since 1996, Dr. Weigelt has served as the managing director
of Eco Impact GmbH which he co-founded. Dr. Weigelt was a co-founder of the
first German private university, Witten/Herdecke and he is currently a Director
of the Life Technologies Ruhr e.v. Mr. Weigelt studied chemistry and biology and
graduated with a M.Sc., Ph.D., and D.Sc. in biology.

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AUDIT COMMITTEE AND FINANCIAL EXPERT:

Proteo, Inc. is not a "listed company" under SEC rules and is therefore not
required to have an audit committee comprised of independent directors. We do
not currently have an audit committee, however, for certain purposes of the
rules and regulations of the SEC and in accordance with the Sarbanes-Oxley Act
of 2002, our board of directors is deemed to be its audit committee and as such
functions as an audit committee and performs some of the same functions as an
audit committee including: (1) selection and oversight of our independent
accountant; (2) establishing procedures for the receipt, retention and treatment
of complaints regarding accounting, internal controls and auditing matters; and
(3) engaging outside advisors. Our board of directors has determined that its
members do not include a person who is an "audit committee financial expert"
within the meaning of the rules and regulations of the SEC.

The board of directors has determined that each of its members is able to read
and understand fundamental financial statements and has substantial business
experience that results in that member's financial sophistication. Accordingly,
the board of directors believes that each of its members has sufficient
knowledge and experience necessary to fulfill the duties and obligations that an
audit committee would have.

FAMILY RELATIONSHIPS

There are no family relationships between or among the directors, executive
officers or persons nominated by the Company to become directors or executive
officers.

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

To the best of the Company's knowledge, during the past five years, none of the
following occurred with respect to a present or former director or executive
officer of the Company: (1) any bankruptcy petition filed by or against any
business of which such person was a general partner or executive officer at the
time of the bankruptcy or within two years prior to that time; (2) any
conviction in a criminal proceeding or being subject to a pending criminal
proceeding (excluding traffic violations and other minor offenses); (3) being
subject to any order, judgment or decree, not subsequently reversed, suspended
or vacated, of any court of competent jurisdiction, permanently or temporarily
enjoining, barring, suspending or otherwise limiting his or her involvement in
any type of business, securities or banking activities; and (4) being found by a
court of competent jurisdiction (in a civil action), the SEC or the Commodities
Futures Trading Commission to have violated a federal or state securities or
commodities law, and the judgment has not been reversed, suspended or vacated.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE.

Section 16(a) of the Exchange Act requires the Company's directors and executive
officers and persons who own more than ten percent of a registered class of the
Company's equity securities to file with the SEC initial reports of ownership
and reports of changes in ownership of common stock and other equity securities
of the Company. Officers, directors and greater than ten percent beneficial
owners of our common stock are required by SEC regulations to furnish the
Company with copies of all Section 16(a) forms they file. To the Company's
knowledge, based solely on the review of copies of such reports furnished to the
Company and written representations that no other reports were required, the
Company has been informed that all Section 16(a) filing requirements applicable
to the Company's officers, directors and greater than ten percent beneficial
owners of our common stock were complied with.

CODE OF ETHICS

The Company maintains a code of ethical conduct applicable to all employees,
officers and directors. The Company will also provide to any person without
charge, and upon request, a copy of the Code of Ethics by making a request in
writing to: [e-mail].

ITEM 10 - EXECUTIVE COMPENSATION

The following table sets forth the overall compensation earned over each of the
past two fiscal years ending December 31, 2007 by each person who served as the
principal executive officer of Proteo during fiscal year 2007. There were no
other executive officers who had compensation of $100,000 or more during fiscal
year 2007.

16


<PAGE>


<TABLE>
<S> <C>
SUMMARY COMPENSATION TABLE

NON-QUALIFIED
NON-EQUITY DEFERRED ALL OTHER TOTAL
STOCK OPTION INCENTIVE PLAN COMPENSATION COMPEN- COMPEN-
NAME AND SALARY BONUS AWARDS AWARDS COMPEN-SATION EARNINGS SATION SATION
PRINCIPAL POSITION YEAR ($) ($) ($) ($) (#) ($) ($) ($)
- ------------------------------------------------------------------------------------------------------------------------------------
Birge Bargmann 2007 $ 64,000 -0- -0- -0- -0- -0- -0- $ 64,000
(Chief Executive
Officer and Chief 2006 $ 6,000 -0- -0- -0- -0- -0- -0- $ 6,000
Financial Officer)
</TABLE>


COMPENSATION OF DIRECTORS

The Directors have not received any compensation for serving in such capacity,
and the Company does not currently contemplate compensating its Directors in the
future for serving in such capacity.

ITEM 11 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS

The following table sets forth, as of December 31, 2007, certain information
with respect to the Company's equity securities owned of record or beneficially
by (i) each director and executive officer; (ii) each person who owns
beneficially more than 5% of each class of the Company's outstanding equity
securities; and (iii) all directors and executive officers as a group. The
address for all of the following individuals is c/o Proteo, Inc., 2102 Business
Center Drive, Irvine, California 92612.

Number of Shares Percent of
Title of Class Name of Beneficial Owner Beneficially Owned (1) Class
- -------------- ------------------------- ---------------------- ----------
Common Stock Prof. Oliver Wiedow, M.D. 10,680,000 44.7%
Common Stock Birge Bargmann 2,000,000 8.4%
Common Stock Joerg Alte 140,000(2) *
Common Stock Dr. Barbara Kahlke 10,000 *
Common Stock Holger Pusch 20,000 *
Common Stock Hartmut Weigelt, Ph.D. 80,000 *
Common Stock All officers and directors 12,930,000 54.2%
as a group
(6 persons)
* less than 1%

(1) Based on 23,879,350 shares outstanding as of March 28, 2008.
(2) Mr. Alte has loaned all 140,000 shares to a broker, which shares must be
returned to Mr. Alte on or before December 31, 2007. Such shares were
not returned as of December 31, 2007.

ITEM 12 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE

Pursuant to a 30-year license agreement we have agreed to pay Dr. Wiedow three
percent of the gross revenues of the Company from products based on patents
where he was the principal inventor. Furthermore, we agreed to pay licensing
fees of 110,000 Euro per year, for a term of six years through the year ending
December 31, 2006, for a total of 660,000 Euros. This equated to annual license
fees of approximately $130,000 for the year ending December 31, 2005 and
$140,000 for the year ending December 31, 2006. We also agreed to refund all
expenses needed to maintain such patents (e.g., patent fees, legal fees, etc).

At December 31, 2007, we have accrued $927,900 of licensing fees payable to Dr.
Wiedow. During 2004, the licensing agreement was amended to require annual
payments of 30,000 Euros, to be paid on July 15 of each year, beginning on July
15, 2004. Such amount can be increased up to 110,000 Euros by June 1 of each
year based on an assessment of the Company's financial ability to make such
payments. The annual payments will continue until the entire obligation of
660,000 Euros has been paid. In December 2007, the Company paid to Dr. Wiedow
30,000 Euros (approx. $43,000). No other payments have been made to Dr. Wiedow
as of December 31, 2007, which is a technical breach of the agreement. Dr.
Wiedow waived such breach and deferred the prior year payments to 2008.

17


<PAGE>

On September 28, 2006, Dr. Wiedow entered into an agreement to contribute 50,000
Euros (approximately $63,000) to PBAG for a 15% non-voting interest in PBAG, in
accordance with certain provisions of the German Commercial Code.

Dr. Wiedow will receive 15% of profits, as determined under the agreement, not
to exceed in any given year 30% of the capital contributed. Additionally, he
will be allocated 15% of losses, as determined under the agreement, not to
exceed the capital contributed. Dr. Wiedow is under no obligation to provide
additional capital contributions to the Company. During the years ended December
31, 2007 and 2006, losses of $3,978 and $59,026, respectively, were allocated
against the contributed capital account, which is presented as minority interest
in the profits and losses of Proteo Biotech on the accompanying statements of
operations and comprehensive loss.

The disclosure requirements of Item 407(a) of Regulation S-B are not applicable
to this filing.

ITEM 13 - EXHIBITS

EXHIBIT NO. DESCRIPTION

2.1* Agreement and Plan of Share Exchange

3.1* Articles of Incorporation, dated December 18, 1992

3.2* Amendment to Articles of Incorporation, dated October 31, 1996

3.3* Amendment to Articles of Incorporation, dated February 12, 1998

3.4* Amendment to Articles of Incorporation, dated May 18, 1999

3.5* Amendment to Articles of Incorporation, dated July 18, 2001

3.6* Amendment to Articles of Incorporation, dated January 11, 2002

3.7* Articles of Share Exchange, dated April 25, 2002

3.8* By-Laws, dated December 18, 1992

10.3* Common Stock Purchase Agreement

10.4* Promissory Note with Guaranty

10.5* Common Stock Purchase Agreement

10.6* Promissory Note

10.7* License Agreement dated August 9, 2007, between Proteo Biotech AG
and Rhein Minapharm Biogenetics SAE

14.1* Code of Ethics

21** Subsidiaries of Small Business Issuer

31.1** Certification of Chief Executive Officer Pursuant to Section 302

31.2** Certification of Chief Financial Officer Pursuant to Section 302

32** Certification of Chief Executive Officer and Chief Financial
Officer Pursuant to 18 U.S.C. Section 1350
________________________

* Previously filed.

** Filed herewith.

18


<PAGE>

ITEM 14 - PRINCIPAL ACCOUNTANT FEES AND SERVICES

AUDIT FEES:

We were billed approximately $84,000 and $70,000 for the fiscal years ended
December 31, 2007 and 2006, respectively, for professional services rendered by
the principal accountant for the audit of the our annual consolidated financial
statements and the review of our quarterly unaudited consolidated financial
statements.

AUDIT RELATED FEES:

None

TAX FEES:

We were billed approximately $6,000 and $6,000 for the fiscal years ended
December 31, 2007 and 2006, respectively, for professional services rendered by
the principal accountant for tax compliance and tax advice.

ALL OTHER FEES:

There were no other professional services rendered by our principal accountant
during the two years ended December 31, 2007 that were not included in the three
categories above.

All of the services provided by our principal accountant were approved by our
Board of Directors. No more than 50% of the hours expended on our audit for the
last fiscal year were attributed to work performed by persons other than
full-time employees of our principal accountant.

19


<PAGE>

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

Dated: April 11, 2008

PROTEO, INC.
(Registrant)



BY: /s/ BIRGE BARGMANN
----------------------------------------------
BIRGE BARGMANN
CHIEF EXECUTIVE OFFICER AND
CHIEF FINANCIAL OFFICER

Pursuant to requirements of the Securities Exchange Act of 1934, this report has
been signed below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated:

Signature Capacity Date
- ------------------------------- ---------------------------- -------------------
/s/ Birge Bargmann Chief Executive Officer and April 11, 2008
Birge Bargmann Chief Financial Officer
- ------------------------------- ---------------------------- -------------------
/s/ Joerg Alte Director April 11, 2008
Joerg Alte
- ------------------------------- ---------------------------- -------------------
/s/ Oliver Wiedow, M.D. Director April 11, 2008
Oliver Wiedow, M.D.
- ------------------------------- ---------------------------- -------------------
/s/ Holger Pusch Director April 11, 2008
Holger Pusch
- ------------------------------- ---------------------------- -------------------
/s/ Hartmut Weigelt, Ph.D. Director April 11, 2008
Hartmut Weigelt, Ph.D.
- ------------------------------- ---------------------------- -------------------


20


<PAGE>

REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders
Proteo, Inc. and Subsidiary

We have audited the accompanying consolidated balance sheet of Proteo, Inc. and
Subsidiary (collectively the "Company"), a Development Stage Company, as of
December 31, 2007, and the related consolidated statements of operations and
comprehensive loss, stockholders' equity (deficit) and cash flows for the years
ended December 31, 2007 and 2006, and for the period from November 22, 2000
(Inception) to December 31, 2007. These consolidated financial statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits.

We conducted our audits 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
consolidated financial statements are free of material misstatement. The Company
was not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audit included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Company's internal control
over financial reporting. Accordingly, we express no such opinion. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the consolidated 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 audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of Proteo,
Inc. and Subsidiary as of December 31, 2007, and the consolidated results of
their operations and their cash flows for the years ended December 31, 2007 and
2006, and for the period from November 22, 2000 (Inception) to December 31,
2007, in conformity with accounting principles generally accepted in the United
States of America.

The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern. As reported in the
accompanying consolidated financial statements, the Company is a development
stage enterprise which has experienced significant losses since inception with
no operating revenues. As discussed in Note 1 to the consolidated financial
statements, a significant amount of additional capital will be necessary to
advance the development of the Company's products to the point at which they may
become commercially viable. These conditions, among others, raise substantial
doubt about the Company's ability to continue as a going concern. Management's
plans regarding these matters are also described in Note 1. The accompanying
consolidated financial statements do not include any adjustments that might
result from the outcome of this uncertainty.


/s/ Squar, Milner, Peterson, Miranda & Williamson, LLP
- ------------------------------------------------------

April 11, 2008
Newport Beach, California


F-1


<PAGE>

<TABLE>
<S> <C>
PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2007

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

ASSETS

CURRENT ASSETS
Cash and cash equivalents $ 802,745
Research supplies inventory 127,557
Prepaid expenses and other current assets 80,542
-----------
Total Current Assets 1,010,844

Property and Equipment, net 376,542
-----------

TOTAL ASSETS $ 1,387,386
===========

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities
Accounts payable and accrued liabilities $ 123,518
Accrued licensing fees 927,900
-----------
Total Current Liabilities 1,051,418

Commitments and Contingencies (Note 6)


STOCKHOLDERS' DEFICIT
Preferred stock, par value $0.001 per share;
20,000,000 shares authorized; no shares
issued or outstanding --
Common stock, par value $0.001 per share;
300,000,000 shares authorized; 23,879,350.
shares issued and outstanding 23,880
Additional paid-in capital 4,968,234
Accumulated other comprehensive income 370,378
Deficit accumulated during development stage (5,026,524)
-----------
Total Stockholders' Deficit (335,968)
-----------

Total Liabilities and Stockholders' Deficit $ 1,387,386
===========


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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-2


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

November 22,
2000
(Inception)
Through
December 31,
2007 2006 2007
------------ ------------ ------------

REVENUES $ -- $ -- $ --

EXPENSES
General and administrative 347,825 552,115 3,528,303
Research and development, net of grants 133,286 100,490 1,616,264
------------ ------------ ------------
481,111 652,605 5,144,567
OTHER INCOME (EXPENSE)
Interest income 6,334 3,192 40,758
Miscellaneous income, net 126,717 21,519 239,367
Foreign currency transaction loss (101,087) (81,000) (225,087)
------------ ------------ ------------
31,964 (56,289) 55,038
------------ ------------ ------------

NET LOSS BEFORE MINORITY INTEREST (449,147) (708,894) (5,089,529)

MINORITY INTEREST IN NET LOSS OF CONSOLIDATED
SUBSIDIARY, NET OF TAXES 3,978 59,026 63,004
------------ ------------ ------------

NET LOSS AVAILABLE TO COMMON SHAREHOLDERS (445,169) (649,868) (5,026,525)

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS 89,987 61,737 370,378
------------ ------------ ------------

COMPREHENSIVE LOSS $ (355,183) $ (588,131) $ (4,656,147)
============ ============ ============

BASIC AND DILUTED LOSS AVAILABLE TO COMMON
SHAREHOLDERS PER COMMON SHARE $ (0.02) $ (0.03)
============ ============

WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING 23,879,000 23,842,000
============ ============


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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

F-3


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

BALANCE - November 22,
2000 (Inception) -- $ -- $ -- $ -- $ -- $ -- $ --
Common stock subscribed at
$0.001 per share 4,800,000 4,800 -- (4,800) -- -- --
Common stock issued for
cash at $3.00 per share 50,000 50 149,950 -- -- -- 150,000
Reorganization with Proteo
Biotech AG 2,500,000 2,500 6,009 -- -- -- 8,509
Net loss -- -- -- -- -- (60,250) (60,250)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2000 7,350,000 7,350 155,959 (4,800) -- (60,250) 98,259
Common stock issued for
cash at $3.00 per share 450,000 450 1,349,550 -- -- -- 1,350,000
Cash received for common
stock subscribed at
$0.001 per share -- -- -- 4,800 -- -- 4,800

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-4


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

(continued)

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

Common stock issued for
cash at $0.40 per share 201,025 $ 201 $ 80,209 $ -- $ -- $ -- $ 80,410
Common stock subscribed at
$0.40 per share 5,085,487 5,086 2,029,109 (2,034,195) -- -- --
Common stock issued for
cash to related
parties at $0.001 per
share 7,200,000 7,200 -- -- -- -- 7,200
Other comprehensive loss -- -- -- -- (20,493) -- (20,493)
Net loss -- -- -- -- -- (374,111) (374,111)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2001 20,286,512 20,287 3,614,827 (2,034,195) (20,493) (434,361) 1,146,065
Common stock issued in
connection with reverse
merger 1,313,922 1,314 (1,314) -- -- -- --
Cash received for common
stock subscribed at
$0.40 per share -- -- -- 406,440 -- -- 406,440

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-5


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

(continued)

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

Other comprehensive income -- $ -- $ -- $ -- $ 116,057 $ -- $ 116,057
Net loss -- -- -- -- -- (1,105,395) (1,105,395)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2002 21,600,434 21,601 3,613,513 (1,627,755) 95,564 (1,539,756) 563,167
Common stock issued for
cash at $0.60 per share 66,667 67 39,933 -- -- -- 40,000
Cash received for common
stock subscribed at
$0.40 per share -- -- -- 387,800 -- -- 387,800
Other comprehensive income -- -- -- -- 164,399 -- 164,399
Net loss -- -- -- -- -- (620,204) (620,204)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2003 21,667,101 21,668 3,653,446 (1,239,955) 259,963 (2,159,960) 535,162
Common stock issued for
cash at $0.40 per share 412,249 412 164,588 -- -- -- 165,000

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-6


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

(continued)

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

Cash received for common
stock subscribed at
$0.40 per share -- $ -- $ -- $ 680,000 $ -- $ -- $ 680,000
Other comprehensive income -- -- -- -- 93,186 -- 93,186
Net loss -- -- -- -- -- (639,746) (639,746)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2004 22,079,350 22,080 3,818,034 (559,955) 353,149 (2,799,706) 833,602
Common stock subscribed at
$0.84 per share 300,000 300 251,700 (252,000) -- -- --
Cash received for common
stock subscribed at
$0.40 per share -- -- -- 435,284 -- -- 435,284
Other comprehensive income -- -- -- -- (134,495) -- (134,495)
Net loss -- -- -- -- -- (1,131,781) (1,131,781)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2005 22,379,350 22,380 4,069,734 (376,671) 218,654 (3,931,487) 2,610

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-7


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

(continued)

Deficit
Accumulated Accumulated
Common Stock Additional Stock Other During
------------------------- Paid-in Subscriptions Comprehensive Development
Shares Amount Capital Receivable Income (Loss) Stage Total
----------- ----------- ----------- ----------- ----------- ----------- -----------

Common stock subscribed at
$0.60 per share 1,500,000 $ 1,500 $ 898,500 $ (900,000) $ -- $ -- $ --
Cash received for common
stock subscribed at
$0.40 per share -- -- -- 414,590 -- -- 414,590
Other comprehensive income
-- -- -- -- 61,737 -- 61,737
Net loss -- -- -- -- -- (649,868) (649,868)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2006 23,879,350 23,880 4,968,234 (862,081) 280,391 (4,581,355) (170,931)
Cash received for common
stock subscribed -- -- -- 862,081 -- -- 862,081
Other comprehensive income -- -- -- -- 89,987 -- 89,987
Net loss -- -- -- -- -- (445,169) (445,169)
----------- ----------- ----------- ----------- ----------- ----------- -----------
BALANCE - December 31, 2007 23,879,350 $ 23,880 $ 4,968,234 $ -- $ 370,378 $(5,026,524) $ (335,968)
=========== =========== =========== =========== =========== =========== ===========

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-8


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

November 22,
2000
(Inception)
Through
December 31,
2007 2006 2007
----------- ----------- -----------

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (445,169) $ (649,868) $(5,026,524)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation 54,578 53,104 275,399
Loss on disposal of equipment 4,518 -- 4,518
Foreign currency transaction gain 101,087 81,000 225,087
Changes in operating assets and liabilities:
Research supplies inventory (24,547) 8,083 (138,451)
Prepaid expenses and other current assets (24,518) (18,671) (70,699)
Accounts payable and accrued liabilities 17,851 (4,335) 84,991
Accrued licensing fees (44,187) 139,000 702,813
----------- ----------- -----------
Net cash used in operating activities (360,387) (391,687) (3,942,867)

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (6,294) -- (608,022)
Cash of reorganized entity -- -- 27,638
----------- ----------- -----------
Net cash used in investing activities (6,294) -- (580,384)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock -- -- 1,792,610
Proceeds for subscribed stock 862,081 414,590 3,190,995
----------- ----------- -----------
Net cash provided by financing activities 862,081 414,590 4,983,605

EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS 37,863 18,802 342,391
----------- ----------- -----------

NET INCREASE IN CASH AND CASH EQUIVALENTS 533,263 41,705 802,745

CASH AND CASH EQUIVALENTS - beginning of period 269,482 227,777 --
----------- ----------- -----------

CASH AND CASH EQUIVALENTS - end of period $ 802,745 $ 269,482 $ 802,745
=========== =========== ===========

(continued)

- -----------------------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-9


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2007

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

November 22,
2000
(Inception)
Through
December 31,
2007 2006 2007
----------- ----------- -----------

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Common stock issued for subscriptions receivable $ -- $ 900,000 $ 1,627,755
=========== =========== ===========

Net assets (excluding cash) of reorganized entity
received in exchange for equity securities $ -- $ -- $ 8,509
=========== =========== ===========


See the accompanying notes to consolidated financial statements for more
information on non-cash investing and financing activities during the years
ended December 31, 2007 and 2006, and for the period from November 22, 2000
(Inception) through December 31, 2007.


- -----------------------------------------------------------------------------------------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.


F-10
</TABLE>


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

ORGANIZATION/NATURE OF BUSINESS

Proteo, Inc. (formerly TriVantage Group, Inc.) and Proteo Marketing, Inc.
("PMI"), a Nevada corporation, which began operations in November 2000, entered
into a reorganization and stock exchange agreement in December 2000 with Proteo
Biotech AG ("PBAG"), a German corporation, incorporated in Kiel, Germany.
Pursuant to the terms of the agreement, all of the shareholders of PBAG
exchanged their common stock for 2,500,000 shares of PMI common stock. As a
result, PBAG became a wholly owned subsidiary of PMI. Proteo Inc.'s common stock
is quoted on the Over-the-Counter Bulletin Board under the symbol "PTEO.OB".

During 2001, PMI entered into a Shell Acquisition Agreement (the "Acquisition
Agreement") with Trivantage Group, Inc. ("Trivantage"), a public "shell"
company, in a transaction accounted for as a reverse merger. In accordance with
the Acquisition Agreement, PMI first acquired 176,660,280 shares (1,313,922
post-reverse split shares, as described below) of Trivantage's common stock
representing 90% of the issued and outstanding common stock of Trivantage, in
exchange for a cash payment of $500,000 to the sole shareholder of Trivantage.
Secondly, Trivantage completed a one for one-hundred-fifty reverse stock split.
Finally, effective April 25, 2002, the shareholders of PMI exchanged their
shares of PMI for an aggregate of 20,286,512 shares of Trivantage to effect a
reverse merger between PMI and Trivantage. Subsequently, Trivantage changed its
name to Proteo, Inc. Effective December 31, 2004, PMI merged into Proteo, Inc..
PBAG and Proteo, Inc. are hereinafter collectively referred to as the "Company."

The Company intends to develop, manufacture, promote and market pharmaceuticals
and other biotech products. The Company is focused on the development of
pharmaceuticals based on the human protein Elafin. Elafin is a human protein
that naturally occurs in human skin, lungs, and mammary glands. The Company
believes Elafin may be useful in the treatment of cardiac infarction, serious
injuries caused by accidents, post surgery damage to tissue and complications
resulting from organ transplants.

Since its inception, the Company has primarily been engaged in the research and
development of its proprietary product Elafin. Once the research and development
phase is complete, the Company will begin to manufacture and obtain the various
governmental regulatory approvals for the marketing of Elafin. The Company is in
the development stage and has not generated any revenues from product sales. The
Company believes that none of its planned products will produce sufficient
revenues in the near future. As a result, the Company plans to identify and
develop other potential products. There are no assurances, however, that the
Company will be able to produce such products, or if produced, that they will be
accepted in the marketplace.


F-11


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

DEVELOPMENT STAGE AND GOING CONCERN MATTERS

The Company has been in the development stage since it began operations on
November 22, 2000 and has not generated any revenues from operations. There is
no assurance of any future revenues. Additionally, at December 31, 2007, the
Company has a working capital deficit of approximately $41,000 and a
stockholders' deficit of approximately $1,387,000.

The Company will require substantial additional funding for continuing research
and development, obtaining regulatory approval and for the commercialization of
its products.

Management has taken action to address these matters. They include:

o Retention of experienced management personnel with particular
skills in the commercialization of such products.
o Attainment of technology to develop additional biotech products.
o Raising additional funds through the sale of debt and/or equity
securities.

The Company's products, to the extent they may be deemed drugs or biologics, are
governed by the Federal Food, Drug and Cosmetics Act and the regulations of
state and various foreign government agencies. The Company's proposed
pharmaceutical products to be used with humans are subject to certain clearance
procedures administered by the above regulatory agencies. There can be no
assurance that the Company will receive the regulatory approvals required to
market its proposed products elsewhere or that the regulatory authorities will
review the product within the average period of time.

Management plans to generate revenues from product sales, but there are no
purchase commitments for any of the proposed products. In the absence of
significant sales and profits, the Company may seek to raise additional funds to
meet its working capital requirements through the additional sales of debt
and/or equity securities. There is no assurance that the Company will be able to
obtain sufficient additional funds when needed, or that such funds, if
available, will be obtainable on terms satisfactory to the Company.

These circumstances, among others, raise substantial doubt about the Company's
ability to continue as a going concern. The accompanying consolidated financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.

F-12


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


CONCENTRATIONS

The Company maintains substantially all of its cash in bank accounts in Germany
and not in United States bank depository accounts insured by the Federal Deposit
Insurance Corporation. Under German law, the bank accounts are insured by the
Deposit Protection Fund. Each bank customer is insured for up to seven billion
Euros. The Company has not experienced any losses in these accounts.

The Company's research and development activities and most of its assets are
located in Germany. The Company's operations are subject to various political,
economic, and other risks and uncertainties inherent in Germany and the European
Union.

OTHER RISKS AND UNCERTAINTIES

The Company's line of future pharmaceutical products being developed by its
German subsidiary are considered drugs or biologics, and as such, are governed
by the Federal Food and Drug and Cosmetics Act and by the regulations of state
agencies and various foreign government agencies. There can be no assurance that
the Company will obtain the regulatory approvals required to market its
products. The pharmaceutical products under development in Germany will be
subject to more stringent regulatory requirements because they are in vitro
products for humans. The Company has no experience in obtaining regulatory
clearance on these types of products. Therefore, the Company will be subject to
the risks of delays in obtaining or failing to obtain regulatory clearance and
other uncertainties, including financial, operational, technological, regulatory
and other risks associated with an emerging business, including the potential
risk of business failure.

As substantially all of the Company's operations are in Germany, they are
exposed to risks related to fluctuations in foreign currency exchange rates. The
Company does not utilize derivative instruments to hedge against such exposure.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements have been prepared in accordance with
accounting principles generally accepted in the United States of America
("GAAP") and include the accounts of Proteo, Inc. and its wholly owned
subsidiary. The operations of PBAG, acquired on December 30, 2000, are included
in the accompanying consolidated statements of operations and comprehensive loss
from such date. All significant intercompany accounts and transactions have been
eliminated in consolidation.

STARTUP ACTIVITIES

Statement of Position No. 98-5, "REPORTING THE COSTS OF STARTUP ACTIVITIES"
requires that all non-governmental entities expense the costs of startup
activities as incurred, including organizational costs. This standard has not
materially impacted the Company's financial position or results of operations.

F-13


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

GRANTS

The Company receives grants from the German government which are used to fund
research and development activities and the acquisition of equipment (see Note
6). Grant receipts for the reimbursement of research and development expenses
are offset against such expenses in the accompanying consolidated statements of
operations and comprehensive loss when the related expenses are incurred. Grants
related to the acquisition of tangible property are recorded as a reduction of
such property's historical cost.

Funds are available at the earliest from January 1 of each budget year with a
funds request submitted on or before December 5 of the preceding year. Funds
reserved for each budget year may not be assigned, and funds not requested by
December 5 of each budget year will expire.

USE OF ESTIMATES

The Company prepares its consolidated financial statements in conformity with
GAAP, which requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities, disclosure of contingent assets
and liabilities at the date of the financial statements, and the reported
amounts of revenues (if any) and expenses during the reporting period.
Significant estimates made by management include, among others, realizability of
long-lived assets and estimates for deferred tax asset valuation allowances.
Actual results could materially differ from such estimates.

FINANCIAL INSTRUMENTS

Statement of Financial Accounting Standards ("SFAS") No. 107 "DISCLOSURES ABOUT
FAIR VALUE OF FINANCIAL INSTRUMENTS" requires disclosure of fair value
information about financial instruments when it is practicable to estimate that
value. Management believes that the carrying amounts of the Company's financial
instruments, consisting primarily of cash and accounts payable and accrued
expenses, approximate their fair value at December 31, 2007 due to their
short-term nature.

F-14


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

FOREIGN CURRENCY TRANSLATION

Assets and liabilities of the Company's German operations are translated from
Euros (the functional currency) into U.S. dollars (the reporting currency) at
period-end exchange rates. Expense and grant receipts are translated at weighted
average exchange rates for the period. Net exchange gains or losses resulting
from such translation are excluded from the consolidated statements of
operations and are included in comprehensive loss and accumulated in a separate
component of stockholders' equity (deficit). Such accumulated amount
approximated $370,000 at December 31, 2007.

The Company records payables related to a licensing agreement (see Note 6) in
accordance with SFAS No. 52, "FOREIGN CURRENCY TRANSLATION." Quarterly
commitments under such agreement are denominated in Euros. For each reporting
period, the Company translates the quarterly amount to US dollars at the
exchange rate effective on that date. If the exchange rate changes between when
the liability is incurred and the time payment is made, a foreign exchange gain
or loss results. The Company paid approximately $43,000 under this licensing
agreement during the year ended December 31, 2007, and did not realize any
significant foreign currency exchanges gains or losses. Prior to 2007 the
Company made no payments under such agreement.

Additionally, the Company computes a foreign exchange gain or loss at each
balance sheet date on all recorded transactions denominated in foreign
currencies that have not been settled. The difference between the exchange rate
that could have been used to settle the transaction on the date it occurred and
the exchange rate at the balance sheet date is the unrealized gain or loss that
is currently recognized. The Company recorded unrealized foreign currency
transaction losses of approximately $101,000 and $81,000 for the years ended
December 31, 2007 and 2006, respectively.

F-15


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

CASH AND CASH EQUIVALENTS

The Company considers all highly liquid temporary cash investments with original
maturities of three months or less to be cash equivalents. Cash and cash
equivalents consist of deposits with banks and short-term certificates of
deposit.

RESEARCH SUPPLIES INVENTORY

Research supplies inventory is stated at cost, and is entirely comprised of
research supplies and materials that are expensed as consumed.

PROPERTY AND EQUIPMENT

Property and equipment are recorded at cost and are depreciated using the
straight-line method over their expected useful lives, which range from 3 to 14
years. Leasehold improvements are amortized over the expected useful life of the
improvement or the remaining lease term, whichever is shorter. Expenditures for
normal maintenance and repairs are charged to income, and significant
improvements are capitalized. The cost and related accumulated depreciation or
amortization of assets are removed from the accounts upon retirement or other
disposition; any resulting gain or loss is reflected in the consolidated
statements of operations and comprehensive loss.

LONG-LIVED ASSETS

The Financial Accounting Statements Board ("FASB") has issued SFAS No. 144,
"ACCOUNTING FOR THE IMPAIRMENT OR DISPOSAL OF LONG-LIVED ASSETS." SFAS No. 144
addresses financial accounting and reporting for the impairment or disposal of
certain long-lived assets, and requires that certain long-lived assets be
reviewed for impairment whenever events or changes in circumstances indicate
that their carrying amounts may not be recoverable. If the cost basis of a
long-lived asset is greater than the projected future undiscounted net cash
flows from such asset, an impairment loss is recognized. Impairment losses are
calculated as the difference between the cost basis of an asset and its
estimated fair value. SFAS No. 144 also requires companies to separately report
discontinued operations and extends that reporting to a component of an entity
that either has been disposed of (by sale, abandonment, or in a distribution to
shareholders) or is classified as held for sale. Assets to be disposed are
reported at the lower of the carrying amount or fair value less costs to sell.

F-16


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

LONG-LIVED ASSETS (continued)

Management believes that no indicators of impairment existed as of or for the
years ended December 31, 2007 or 2006. There can be no assurance, however, that
market conditions or demand for the Company's products or services will not
change which could result in long-lived asset impairment charges in the future.

REVENUE RECOGNITION

It is the Company's intent to recognize revenues from future product sales at
the time of product delivery. In December 2003, the Securities and Exchange
Commission released Staff Accounting Bulletin ("SAB") No. 104, "REVENUE
RECOGNITION," which provides guidance on the recognition, presentation and
disclosure of revenue in the financial statements. The Company believes that
once significant operating revenues are generated, the Company's revenue
recognition accounting policies will conform to SAB No. 104.

RESEARCH AND DEVELOPMENT

Research and development costs are charged to operations as incurred. Grant
funds received are reported as a reduction of research and development costs
(see Note 6).

PATENTS AND LICENSES

The Company does not own any patents or patents pending related to the Elafin
technology and instead operates under a technology license agreement with a
related party (see Note 6). Under such license agreement, the Company does not
hold title to any patents but must pay for all costs related to new patents,
patents pending, and patent maintenance associated with the Elafin technology.
The Company expenses such costs as incurred.

INCOME TAXES

The Company accounts for income taxes using the liability method in accordance
with SFAS No. 109, "ACCOUNTING FOR INCOME TAXES." Deferred tax assets and
liabilities are recognized for future tax consequences attributable to
differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases. A valuation allowance is
provided for significant deferred tax assets when it is more likely than not
that such assets will not be recovered.

Management evaluates the Company's tax positions for measurement and recognition
using the guidance set forth in FASB Interpretation No. 48 ("Accounting for
Uncertainty in Income Taxes, an Interpretation of FASB Statement No. 109"),
which is more fully described below.

The Company adopted the provisions of Financial Accounting Standards Board
("FASB") Interpretation No. 48, Accounting for Uncertainty in Income Taxes, on
January 1, 2007. The Company did not recognize any additional liability for
unrecognized tax benefit as a result of the implementation. As of December 31,
2007, the Company did not increase or decrease liability for unrecognized tax
benefit related to uncertain tax positions in prior period nor did the Company
increase its liability for any uncertain tax positions in the current year.
Furthermore, there were no adjustments to the liability or lapse of statute of
limitation or settlements with taxing authorities.

The Company expects resolution of unrecognized tax benefits, if created, would
occur while the full valuation allowance of deferred tax assets is maintained;
therefore, the Company does not expect to have any unrecognized tax benefits
that, if recognized, would affect the effective tax rate.

The Company will recognize interest and penalty related to unrecognized tax
benefits and penalties as income tax expense. As of December 31, 2007, the
Company has not recognized liabilities for penalty and interest as the Company
does not have liability for unrecognized tax benefits.

The Company is subject to taxation in the US and various states. The Company's
tax years for 2004, 2005, and 2006 are subject to examination by the taxing
authorities. With few exceptions, the Company is no longer subject to U.S.
federal, state, local or foreign examinations by taxing authorities for years
before 2004.


F-17


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

ACCOUNTING FOR STOCK-BASED COMPENSATION

From inception to December 31, 2007, the Company has not granted any stock
options, stock warrants, or adopted any stock option plan.

BASIC AND DILUTED LOSS PER COMMON SHARE

The Company computes loss per common share using SFAS No. 128 "EARNINGS PER
SHARE." Basic loss per common share is computed based on the weighted average
number of shares outstanding for the period. Diluted loss per common share is
computed by dividing net loss by the weighted average shares outstanding
assuming all dilutive potential common shares were issued. There were no
dilutive potential common shares at December 31, 2007 or 2006. Additionally, for
purposes of calculating diluted loss per common share, there were no adjustments
to net loss. See Note 7 for additional information.

COMPREHENSIVE INCOME (LOSS)

SFAS No. 130, "REPORTING COMPREHENSIVE INCOME", established standards for
reporting and display of comprehensive income (loss) and its components in a
full set of general-purpose financial statements. Total comprehensive income
(loss) represents the net change in stockholders' equity (deficit) during a
period from sources other than transactions with stockholders and as such,
includes net earnings or loss. For the Company, the components of other
comprehensive income (loss) are the foreign currency translation adjustments,
which are recorded as components of stockholders' equity (deficit).

SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION

SFAS No. 131, "DISCLOSURES ABOUT SEGMENTS OF AN ENTERPRISE AND RELATED
INFORMATION", established standards for how public companies report information
about segments of their business in their annual financial statements and
requires them to report selected segment information in their quarterly reports
issued to shareholders. It also requires entity-wide disclosures about the
products and services an entity provides, the countries in which it holds
material assets and reports material revenues, and its major customers. The
Company considers itself to operate in one segment and has had no operating
revenues from inception. See Note 2 for information on long-lived assets located
in Germany.

F-18


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS

In June 2006, the FASB issued FASB Interpretation ("FIN") No. 48, "ACCOUNTING
FOR UNCERTAINTY IN INCOME TAXES, AN INTERPRETATION OF FASB STATEMENT NO. 109."
This interpretation clarifies the accounting for uncertainty in income taxes
recognized in an enterprise's financial statements in accordance with SFAS No.
109. FIN No. 48 prescribes a more-likely-than-not recognition threshold and a
measurement attribute for the financial statement recognition and measurement of
tax positions taken (or expected to be taken) in an income tax return. It also
provides guidance on de-recognition, classification, interest and penalties,
accounting in interim periods, disclosure and transition. The requirement to
assess the need for a valuation allowance on net deferred tax assets is not
affected by FIN No. 48. This pronouncement was effective for fiscal years
beginning after December 31, 2006.

In September 2006, the FASB issued SFAS No.157, "FAIR VALUE MEASUREMENTS," which
defines fair value, establishes a framework for measuring fair value in GAAP,
and expands disclosures about fair value measurements. SFAS No. 157 simplifies
and codifies related guidance within GAAP, but does not require any new fair
value measurements. The guidance in SFAS No. 157 applies to derivatives and
other financial instruments measured at estimated fair value under SFAS No. 133,
"ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES" and related
pronouncements. SFAS No. 157 is effective for financial statements issued for
fiscal years beginning after November 15, 2007, and interim periods within those
fiscal years. Management does not expect the adoption of SFAS No. 157 to have a
significant effect on the Company's financial position or results of operation.

On February 15, 2007, the FASB issued SFAS No. 159, "THE FAIR VALUE OPTION FOR
FINANCIAL ASSETS AND FINANCIAL LIABILITIES - INCLUDING AN AMENDMENT OF FASB
STATEMENT NO. 115." This standard permits an entity to measure many financial
instruments and certain other items at estimated fair value. Most of the
provisions of SFAS No. 159 are elective; however, the amendment of SFAS No. 115
("Accounting for Certain Investments in Debt and Equity Securities") applies to
all entities that own trading and available-for-sale securities. The fair value
option created by SFAS No. 159 permits an entity to measure eligible items at
fair value as of specified election dates. Among others, eligible items exclude
(1) financial instruments classified (partially or in total) as permanent or
temporary stockholders' equity (such as a convertible debt security with a
non-contingent beneficial conversion feature) and (2) investments in
subsidiaries and interests in variable interest entities that must be
consolidated. A for-profit business entity will be required to report unrealized
gains and losses on items for which the fair value option has been elected in
its statements of operations at each subsequent reporting date.

F-19


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The fair value option (a) may generally be applied instrument by instrument, (b)
is irrevocable unless a new election date occurs, and (c) must be applied to the
entire instrument and not to only a portion of the instrument. SFAS No. 159 is
effective as of the beginning of the first fiscal year that begins after
November 15, 2007. Early adoption is permitted as of the beginning of the
previous fiscal year provided that the entity (i) makes that choice in the first
120 days of that year, (ii) has not yet issued financial statements for any
interim period of such year, and (iii) elects to apply the provisions of SFAS
No. 157. The adoption of SFAS No. 159 is not expected to have a significant
impact on the Company's future financial statements.

In December 2007, the FASB issued SFAS No. 141(R), "BUSINESS COMBINATIONS." This
pronouncement will significantly change the accounting for business
combinations, expand the concept of a business combination (such that a transfer
of consideration is not necessarily required to trigger acquisition-method
accounting), and amend the GAAP definition of a "business" to include
development stage enterprises. SFAS No. 141(R) will also impact accounting for
the initial consolidation of a variable interest entity that is a business, and
accounting for bargain purchases (as defined) and step acquisitions. When a
business combination constitutes a change in control of the acquiree, the
purchasing entity will generally be required to recognize all (and only) the
assets acquired, liabilities assumed, and noncontrolling interests (formerly
known as "minority interests") at their full fair value as of the acquisition
date, even when the controlling interest acquired is less than a 100% interest.

SFAS No. 141(R) includes substantial new disclosure requirements, and applies
prospectively to business combinations for which the acquisition date is on or
after the beginning of the first annual reporting period beginning after
December 14, 2008. Earlier adoption is prohibited. Such pronouncement must be
adopted concurrently with SFAS No. 160 (see discussion in the following two
paragraphs). Management is currently evaluating what effect SFAS No. 141(R) will
have on the Company's future financial statements.

In December 2007, the FASB also issued SFAS No. 160, "NONTROLLING INTERESTS IN
CONSOLIDATED FINANCIAL STATEMENTS - AN AMENDMENT OF ARB No. 51." SFAS No. 160
establishes new accounting and reporting standards for the noncontrolling
interest in a subsidiary and for the deconsolidation of a subsidiary.
Specifically, this pronouncement requires that a noncontrolling interest
(minority interest) be reported in the stockholders' equity section of the
consolidated balance sheet, with separate identification to distinguish such
interest from the parent company's equity. The components of net income or loss
attributable to the noncontrolling interest will be included in the consolidated
results of operations in their "natural" classifications, and must be disclosed
on the face of the income statement; however, earnings-per-share data will
continue to be based exclusively on amounts attributable to the parent company.
SFAS No. 160 clarifies that changes in a parent company's ownership interest in
a subsidiary that do not result in deconsolidation are equity transactions if
the event does not result in a loss of control.

In addition, SFAS No. 160 requires that a parent company recognize gain or loss
when a subsidiary is deconsolidated; such gain or loss will be measured using
the estimated fair value of the noncontrolling equity investment on the
deconsolidation date. A deconsolidation transaction also establishes a new fair
value basis in any retained noncontrolling ownership interest, requiring
gain/loss recognition for the difference between such new basis and the
historical carrying amount of the remaining ownership interest. This
pronouncement includes expanded disclosure requirements regarding the interests
of the parent company and noncontrolling interests in its subsidiaries. SFAS No.
160 is effective for fiscal years, and interim periods within those fiscal
years, beginning after December 14, 2008; earlier adoption is prohibited.
Management is currently evaluating what effect this pronouncement will have on
the Company's future financial statements.

Other recent accounting pronouncements issued by the FASB (including its
Emerging Issues Task Force), the American Institute of Certified Public
Accountants, and the Securities and Exchange Commission did not or are not
believed by management to have a material impact on the Company's present or
future consolidated financial statements.

F-20


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


2. PROPERTY AND EQUIPMENT

Property and equipment, all located in Kiel, Germany, consist of the following
at December 31, 2007:

Technical and laboratory equipment $ 441,813
Plant 217,671
Leasehold improvements 5,476
Office equipment 32,378
---------
697,338
Less accumulated depreciation and amortization (320,796)
---------

$ 376,542
=========


3. STOCKHOLDERS' DEFICIT

COMMON STOCK

The Company is authorized to issue 300,000,000 shares of $0.001 par value common
stock. The holders of the Company's common stock are entitled to one vote for
each share held of record on all matters to be voted on by those stockholders.

In November 2000, the Company sold and issued 4,800,000 shares of restricted
common stock at $0.001 per share for $4,800 in cash, which was received in
fiscal 2001; therefore the issuance was accounted for as a stock subscription
receivable at December 31, 2000. During the year ended December 31, 2001, the
Company sold and issued an additional 7,200,000 shares of restricted common
stock to related parties at $0.001 per share for $7,200 in cash.

In November 2000, the Company sold and issued 50,000 shares of restricted common
stock at $3.00 per share for $150,000 in cash.

In December 2000, the Company issued 2,500,000 shares of restricted common stock
in connection with the reorganization and stock exchange agreement with PBAG
(see "Organization/Nature of Business" in Note 1).

During the year ended December 31, 2001, the Company issued and sold 450,000
shares of restricted common stock at $3.00 per share to Euro-American GmbH for
$1,350,000 in cash.

F-21


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


3. STOCKHOLDERS' DEFICIT (continued)


COMMON STOCK (continued)

During the year ended December 31, 2001, the Company entered into a subscription
agreement and note receivable for 6,000,000 shares of the Company's restricted
common stock with Euro-American GmbH, valued at $2,400,000. During the year
ended December 31, 2001, 5,286,512 shares of Company common stock were issued
under such subscription, of which approximately $435,000, $680,000, and $794,000
was received against this receivable during the years ended December 31, 2005,
2004, and the period from Inception through December 31, 2003, respectively. In
May 2003, FID-Esprit AG ("FID-Esprit") assumed the common stock subscription
agreement with Euro-American GmbH. The Company received the outstanding balance
in installments through March 28, 2006.

During the year ended December 31, 2002, the Company issued 1,313,922 shares of
restricted common stock in conjunction with the reverse merger with PMI (see
"Organization/Nature of Business" in Note 1).

Additionally, the Company entered into a common stock purchase agreement with
FID-Esprit to purchase up to 1,000,000 shares of the Company's restricted common
stock. Under the agreement, the Company agreed to sell its common stock at a
price per share equal to 40% of the average ask price for the 20 trading days
previous to the date of subscription, as quoted on a public market. However, the
price per share will be no less than $0.40. During the years ended December 31,
2004 and 2003, the Company issued 412,249 and 66,667 shares, respectively, at
$0.40 and $0.60 per share, respectively, for cash. Such agreement was not
renewed after it expired on December 31, 2004.

In November 2005, the Company entered into a common stock purchase agreement
with FID-Esprit to sell 300,000 of the Company's restricted common shares at
$0.84 per share, or $252,000. Concurrent with such transaction, FID-Esprit
issued a promissory note to the Company for $252,000 to be paid in four
installments of $63,000 each, due on March 31, 2006, June 30, 2006, September
30, 2006, and December 31, 2006. The promissory note was paid in full during the
year ended December 31, 2006.

In December 2006, the Company entered into a common stock purchase agreement
with FID-Esprit to sell 1,500,000 of the Company's restricted common shares at
$0.60 per share, or $900,000. Concurrent with such transaction, FID-Esprit
issued a promissory note to the Company for $900,000 to be paid in five
installments of $180,000 each through December 31, 2007. FID-Esprit made a
partial payment of $37,894 against the note in December 2006. FID-Esprit paid
the remaining balance in 2007.

F-22


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


3. STOCKHOLDERS' EQUITY (continued)

PREFERRED STOCK

The Company is authorized to issue up to 20,000,000 shares of preferred stock,
$0.001 par value per share. The Board of Directors has not designated any
liquidation value, dividend rates or other rights or preferences with respect to
any such shares of preferred stock. No preferred stock has been issued as of
December 31, 2007.


4. MINORITY INTEREST

On September 28, 2006, a shareholder of the Company entered into an agreement to
contribute 50,000 Euros (approximately $63,000) to PBAG for a 15% non-voting
interest in PBAG, in accordance with certain provisions of the German Commercial
Code. The party will receive 15% of profits, as determined under the agreement,
not to exceed in any given year 30% of the capital contributed. Additionally,
the party will be allocated 15% of losses, as determined under the agreement,
not to exceed the capital contributed. The party is under no obligation to
provide additional capital contributions to the Company. During the years ended
December 31, 2007 and 2006, losses of $3,978 and $59,026, respectively, were
allocated against the minority stockholder's capital account, which has been
reported as minority interest in net loss of Proteo Biotech on the accompanying
statements of operations.


5. INCOME TAX PROVISION

There is no material income tax expense recorded for the years ended December
31, 2007 or 2006, due to the Company's net losses.

Income tax expense for the years ended December 31, 2007 and 2006 differed from
the amounts computed by applying the U.S. federal income tax rate of 34 percent
for the following reasons:

<TABLE>
<S> <C> <C>
2007 2006
--------- ---------

Income tax benefit at U.S. federal statutory rates $(151,000) $(221,000)
Change in valuation allowance 151,000 221,000
State and local income taxes, net of federal income tax effect 800 800
--------- ---------

$ 800 $ 800
========= =========
</TABLE>

F-23


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


5. INCOME TAX PROVISION (continued)

The Company has a deferred tax asset and like amount of valuation allowance of
approximately $1,374,000 at December 31, 2007, relating primarily to tax net
operating loss carryforwards, as discussed below, and timing differences related
to the recognition of accrued licensing fees..

As of December 31, 2007, the Company had tax net operating loss carryforwards
("NOLs") of approximately $632,000 and $3,607,000 (2,449,000 Euros) available to
offset future taxable Federal and foreign income, respectively. The Federal NOL
expires in varying years through 2025. The foreign net operating loss relates to
Germany and does not have an expiration date.

In the event the Company were to experience a greater than 50% change in
ownership, as defined in Section 382 of the Internal Revenue Code, the
utilization of the Company's tax NOLs could be severely restricted.


6. COMMITMENTS AND CONTINGENCIES

GRANTS

In 2001, the German state of Schleswig-Holstein granted Proteo Biotech AG
approximately 760,000 Euros for the research and development of the Company's
pharmaceutical product Elafin. The grant, as amended, covered the period from
February 1, 2001 to March 31, 2004 if certain milestones were reached by
November 15 of each year, with a possible extension as defined in the agreement.
Such amounts have been reported as a reduction of research and development
expenses in the year of receipt. During the term of this Grant, the Company
received 100% of the expected funds.

In May 2004, the German State of Schleswig-Holstein granted Proteo Biotech AG
approximately 760,000 Euros (the "New Grant") for further research and
development of the Company's pharmaceutical product Elafin. The New Grant, as
amended, covers the period from April 1, 2004 to December 31, 2007 if certain
milestones have been reached by September 30 of each year, with a possible
extension as defined in the agreement. The New Grant covers approximately 50% of
eligible research and development costs and is subject to the Company's ability
to otherwise finance the remaining costs. An additional condition of the New
Grant is that the product is to be developed and subsequently produced in the
German state of Schleswig-Holstein.

F-24


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


6. COMMITMENTS AND CONTINGENCIES (continued)

GRANTS (continued)

The Company qualified to receive approximately 217,000 Euros and 225,000 Euros
(approximately $320,000 and $298,000, respectively) of the New Grant in 2007 and
2006, respectively. New Grant funds approximating 196,000 Euros and 225,000
Euros ($289,000 and $298,000, respectively) have been received (or were due at
year end) and reported as a reduction of research and development expenses for
the years ended December 31, 2007 and 2006, respectively. The remaining
approximately 21,000 Euros (approximately $27,000) expired as of December 31,
2007 and were forfeited. As of December 31, 2007, management believes that all
milestones required by the New Grant have been satisfied.

DR. WIEDOW LICENSE AGREEMENT

On December 30, 2000, the Company entered into a thirty-year license agreement,
beginning January 1, 2001, with Dr. Oliver Wiedow, MD, the owner and inventor of
several patents, patent rights and technologies related to Elafin. In exchange
for an exclusive worldwide license for the intellectual property, the Company
agreed to pay Dr. Wiedow a licensing fee of 110,000 Euros per year, for a term
of six years for a total obligation of 660,000 Euros. Such licensing fees shall
be reduced by payments to Dr. Wiedow during such term for any royalties and for
50% of any salary. Royalties are to be paid quarterly for the term of the
agreement to Dr. Wiedow in the amount of three percent of gross revenues earned
from the sale of products based on the licensed technology. Dr. Wiedow has not
been paid any salary since execution of the agreement.

During 2004, the licensing agreement was amended to require annual payments of
30,000 Euros, to be paid on July 15 of each year, beginning on July 15, 2004.
Such amount can be increased to 110,000 Euros by June 1 of each year based on an
assessment of the Company's financial ability to make such payments. The annual
payments will continue until the entire obligation of 660,000 Euros has been
paid. In December 2007, the Company paid to Dr. Wiedow 30,000 Euros
(approximately $43,000). No other payments have been made to Dr. Wiedow as of
December 31, 2007, which is a technical breach of the agreement. Dr. Wiedow
waived such breach and deferred the prior year payments to calendar 2008.
Expense related to such license totaling $0, $139,000, and $747,000 is included
in general and administrative expense in the accompanying consolidated
statements of operations and comprehensive loss for the years ended December 31,
2007 and 2006, and for the period November 22, 2000 (inception) to December 31,
2007, respectively. No royalty expense has been recognized under the agreement
since the Company has yet to generate any related revenues. At December 31,
2007, the Company has accrued $927,900 of licensing fees payable to Dr. Wiedow.

Dr. Wiedow, who is a director of the Company, beneficially owned approximately
45% of the Company's outstanding common stock as of December 31, 2007.

F-25


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


6. COMMITMENTS AND CONTINGENCIES (continued)

DR. WIEDOW LICENSE AGREEMENT

On October 4, 1999, Dr. Wiedow and AstraZeneca PLC (formerly Zeneca Limited)
entered into an agreement to assign all patents and technology related to Elafin
to Dr. Wiedow in exchange for a royalty of 2% of any future net sales from such
patents and technology. The Company, under its December 30, 2000 licensing
agreement with Dr. Wiedow discussed above, assumed such 2% royalty obligation.

ARTES BIOTECHNOLOGY LICENSE AGREEMENT

On November 15, 2004, the Company entered into an exclusive worldwide license
and collaboration agreement with ARTES Biotechnology GmbH ("ARTES"). This
agreement enables the Company to economically produce Elafin on a large scale by
using the sublicensed yeast HANSENULA POLYMORPHA as a high performance
expression system. Rhein Biotech GmbH ("Rhein") has licensed the yeast to ARTES,
who in-turn sublicensed it to the Company. The agreement has a term of 15 years
with an annual license fee equal to the greater of 10,000 Euros (approximately
$15,000 at December 31, 2007) or 2.5% royalties on the future sales of Elafin.
Should the license agreement between Rhein and ARTES terminate, Rhein will
assume the sublicense agreement with the Company under similar terms.

RHEIN MINAPHARM AGREEMENT

In August 2007, the Company's subsidiary entered into an agreement with Rhein
Minapharm ("Mina") for clinical development, production and marketing of Elafin.
The Company has granted Mina the right to exclusively market Elafin in Egypt and
certain Middle Eastern and African countries. Under this agreement, the Company
recognized $110,000 of miscellaneous income and may receive additional
milestone-payments upon Mina's attainment of certain clinical milestones as well
as royalties on any future net product sales.

LEASES

The Company has entered into several leases for office and laboratory facilities
in Germany, expiring at dates through December 2012. Certain leases have a
rental adjustment in 2007 based on the consumer price index.

Future minimum rental payments under non-cancelable operating leases, in Euros
and equivalent U.S. dollars (based on the December 31, 2007 exchange rate),
approximate the following for the years ending December 31:

(euro) $
-------------- --------

2008 (euro) 18,000 $ 27,000
2009 18,000 27,000
2010 18,000 27,000
2011 18,000 27,000
2012 18,000 27,000
-------------- --------

(euro) 90,000 $135,000
============== ========

F-26


<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2007

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


6. COMMITMENTS AND CONTINGENCIES (continued)

LEASES (continued)

The Company also leases office space in Irvine, California on a month-to-month
basis. Total rental expense for all facilities for the years ended December 31,
2007 and 2006, and for the period November 22, 2000 (inception) to December 31,
2007 approximated $38,000, $40,000 and $290,000, respectively.

LEGAL

The Company may from time to time be involved in various claims, lawsuits,
disputes with third parties, actions involving allegations of discrimination, or
breach of contract actions incidental to the operation of its business. The
Company is not currently involved in any such litigation which it believes could
have a material adverse effect on its financial condition or results of
operations.

7. LOSS PER COMMON SHARE

The following is a reconciliation of the numerators and denominators of the
basic and diluted loss per common share computations for the years ended
December 31, 2007 and 2006:

<TABLE>
<S> <C>
2007 2006
------------ ------------

Numerator for basic and diluted loss per common share:
Net loss charged to common stockholders $ (445,170) $ (649,868)

Denominator for basic and diluted loss per common share:
Weighted average number of common shares outstanding 23,879,000 23,842,000
------------ ------------

Basic and diluted loss per common share $ (0.02) $ (0.03)
============ ============
</TABLE>



F-27


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-21
<SEQUENCE>2
<FILENAME>proteo_10ksbex21.txt
<TEXT>
<PAGE>

EXHIBIT 21

SUBSIDIARIES OF SMALL BUSINESS ISSUER

Proteo Biotech AG, a German joint stock corporation


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>3
<FILENAME>proteo_10ksbex31-1.txt
<TEXT>
<PAGE>

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Birge Bargmann, certify that:

1. I have reviewed this annual report on Form 10-KSB of Proteo, Inc.
(hereinafter referred to as "the small business issuer" or "the registrant");

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 registrant as
of, and for, the periods presented in this report.

4. I am 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 my supervision, to ensure that material
information relating to the small business issuer,
including its consolidated subsidiaries, is made known to
me 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 my 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 my 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 that has materially affected, or is
reasonably likely to affect, the small business issuer's
internal control over financial reporting; and;

5. I have disclosed, based on my most recent evaluation of internal
control over financial reporting, to the small business issuer's auditors and
the audit committee of 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 registrant'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 registrant's internal control over financial
reporting.


Date: April 11, 2008

By: /s/ Birge Bargmann
----------------------------------
Birge Bargmann
Chief Executive Officer
(Principal Executive Officer)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>4
<FILENAME>proteo_10ksbex31-2.txt
<TEXT>
<PAGE>

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER
PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Birge Bargmann, certify that:

1. I have reviewed this annual report on Form 10-KSB of Proteo, Inc.
(hereinafter referred to as "the small business issuer" or "the registrant");

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 registrant as
of, and for, the periods presented in this report.

4. I am 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 my supervision, to ensure that material
information relating to the small business issuer,
including its consolidated subsidiaries, is made known to
me 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 my 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 my 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 that has materially affected, or is
reasonably likely to affect, the small business issuer's
internal control over financial reporting; and;

5. I have disclosed, based on my most recent evaluation of internal
control over financial reporting, to the small business issuer's auditors and
the audit committee of 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 registrant'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 registrant's internal control over financial
reporting.


Date: April 11, 2008

By: /s/ Birge Bargmann
-------------------------------
Birge Bargmann
Chief Financial Officer
(Principal Accounting Officer)
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>proteo_10ksbex32.txt
<TEXT>
<PAGE>

EXHIBIT 32

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


The undersigned hereby certifies, in her capacity as an officer of
Proteo, Inc. (the "Company"), for purposes of 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to her
knowledge:

(1) the Annual Report of the Company on Form 10-KSB for the period ended
December 31, 2007 fully complies with the requirements of Section 13(a) or
Section 15(d), as applicable, of the Securities Exchange Act of 1934, as
amended; and

(2) the information contained in the Annual Report fairly presents, in all
material respects, the financial condition and results of operations of the
Company.


Date: April 11, 2008


/s/ Birge Bargmann
- --------------------------------------------------------------------------------
Birge Bargmann
Chief Executive Officer and
Chief Financial Officer



A SIGNED ORIGINAL OF THIS WRITTEN STATEMENT REQUIRED BY SECTION 906 HAS BEEN
PROVIDED TO PROTEO, INC. AND WILL BE RETAINED BY PROTEO, INC. AND FURNISHED TO
THE SECURITIES AND EXCHANGE COMMISSION OR ITS STAFF UPON REQUEST.

THIS CERTIFICATION IS BEING FURNISHED PURSUANT TO RULE 15(D) AND SHALL NOT BE
DEEMED "FILED" FOR PURPOSES OF SECTION 18 OF THE EXCHANGE ACT (15 U.S.C. 78R),
OR OTHERWISE SUBJECT TO THE LIABILITY OF THAT SECTION. THIS CERTIFICATION SHALL
NOT BE DEEMED TO BE INCORPORATED BY REFERENCE INTO ANY FILING UNDER THE
SECURITIES ACT OR THE EXCHANGE ACT, EXCEPT TO THE EXTENT THAT THE COMPANY
SPECIFICALLY INCORPORATES IT BY REFERENCE.
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----

[kaubeuhut]

<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>proteo_10q-033108.txt
<TEXT>
<PAGE>
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

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

FORM 10-Q

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

(Mark One)
|X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2008

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 000-32849

PROTEO, INC.
------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

NEVADA 88-0292249
------ ----------
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)

2102 BUSINESS CENTER DRIVE, IRVINE, CALIFORNIA 92612
---------------------------------------------- -----
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)

[phone]
--------------
(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 such shorter period that the
registrant was required to file such reports); and (2) has been subject to
such filing requirements for the past 90 days. Yes |X| No |_|.

Indicate by check mark whether the registrant is a large accelerated filer,
an accelerated filer, or a non-accelerated filer, or a smaller reporting
company. See definition of "an accelerated filer," "large 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|.

Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
CLASS NUMBER OF SHARES OUTSTANDING
------------------------------ ------------------------------------------
Common Stock, $0.001 par value 23,879,350 shares of common stock as
April 29, 2008
================================================================================
<PAGE>

PROTEO, INC.
AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)

TABLE OF CONTENTS


Page
PART I. FINANCIAL INFORMATION

Item 1. Financial Statements:
Condensed Consolidated Balance Sheet as of March 31, 2008
(unaudited) and Condensed Consolidated Balance Sheet as of
December 31, 2007 3

Unaudited Condensed Consolidated Statements of Operations and
Comprehensive Loss for the Three-month Periods Ended March 31,
2008 and 2007, and for the Period From November 22, 2000
(Inception) Through March 31, 2008 4

Unaudited Condensed Consolidated Statements of Cash Flows for
the Three-month Periods Ended March 31, 2008 and 2007, and for
the Period From November 22, 2000 (Inception) Through March
31, 2008 5

Notes to Unaudited Condensed Consolidated Financial Statements 6

Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 10

Item 3 Quantitative and Qualitative Disclosure About Market Risk 13

Item 4T. Controls and Procedures 13

PART II. OTHER INFORMATION 14

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. Submission of Matters to a Vote of Security Holders 14

Item 5. Other Information 14

Item 6. Exhibits 14

SIGNATURES 15


2
<PAGE>
<TABLE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS



ASSETS
March 31, 2008 December 31,
(Unaudited) 2007
------------------------- ------------------------
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 1,198,062 $ 802,745
Research supplies inventory 134,625 127,557
Prepaid expenses and other current assets 23,096 80,542
------------------------- ------------------------
1,355,783 1,010,844

PROPERTY AND EQUIPMENT, NET 343,784 376,542
------------------------- ------------------------
$ 1,699,567 $ 1,387,386
========================= ========================

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 122,093 $ 123,518
Accrued licensing fees 995,400 927,900
Deposit for capital stock subscription from
related party 474,000 -
------------------------- ------------------------
1,591,493 1,051,418

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Preferred stock, par value $0.001 per share; 10,000,000
shares authorized; no shares issued or
outstanding- - -
Common stock, par value $0.001 per share;300,000,000
shares authorized; 23,879,350 shares issued and
outstanding 23,880 23,880
Additional paid-in capital 4,968,234 4,968,234
Accumulated other comprehensive income 454,834 370,378
Deficit accumulated during development stage (5,338,874) (5,026,524)
------------------------- ------------------------
Total Stockholders' Equity 108,074 335,968
------------------------- ------------------------
Total Liabilities and Stockholders' Equity $ 1,699,567 $ 1,387,386
========================= ========================


SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

3
<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2008 AND 2007
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH MARCH 31, 2008

NOVEMBER 22,
2002
THREE MONTHS ENDED (INCEPTION)
MARCH 31, THROUGH
---------------------------------------- MARCH 31,
2008 2007 2008
----------------- ----------------- -----------------

REVENUES $ - $ - $ -
----------------- ----------------- -----------------

EXPENSES
General and Administrative 120,455 94,940 3,648,758
Research and Development, net of grants 129,435 22,652 1,745,699
----------------- ----------------- -----------------
249,890 117,592 5,394,457
----------------- ----------------- -----------------
INTEREST AND OTHER EXPENSE (62,460) (7,069) (7,422)
----------------- ----------------- -----------------
NET LOSS BEFORE MINORITY INTEREST (312,350) (124,661) (5,401,879)
MINORITY INTEREST IN NET LOSS OF CONSOLIDATED
SUBSIDIARY, NET OF TAXES - 3,948 63,005
----------------- ----------------- -----------------
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS (312,350) (120,713) (5,338,874)
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS 84,456 5,915 454,834
----------------- ----------------- -----------------
COMPREHENSIVE LOSS $ (227,894) $ (114,798) $ (4,884,040)
================= ================= =================

BASIC AND DILUTED LOSS PER COMMON SHARE $ (0.01) $ (0.01)
================= =================

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 23,879,000 23,879,000
================= =================


SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

4
<PAGE>

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE-MONTH PERIODS ENDED MARCH 31, 2008 AND 2007
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH MARCH 31, 2008


NOVEMBER 22,
2002
THREE MONTHS ENDED (INCEPTION)
MARCH 31, THROUGH
--------------------------------------- MARCH 31,
2008 2007 2008
------------------ ----------------- ------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (312,350) $ (120,713) $ (5,338,874)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation 13,425 13,238 288,824
Loss on disposal of equipment - - 4,518
Unrealized foreign currency transaction losses 89,220 9,000 314,307
Changes in operating assets and liabilities:
Research supplies inventory 2,092 - (136,359)
Prepaid expenses and other current assets 60,008 24,878 (10,691)
Accounts payable and accrued liabilities (9,864) 42,318 75,127
Accrued licensing fees - - 702,813
------------------ ----------------- ------------------
NET CASH USED IN OPERATING ACTIVITIES (157,469) (31,279) (4,100,335)
------------------ ----------------- ------------------

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment - (1,108) (608,022)
Cash of reorganized entity - - 27,638
------------------ ----------------- ------------------
NET CASH USED IN INVESTING ACTIVITIES - (1,108) (580,384)
------------------ ----------------- ------------------

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock - 119,119 4,983,605
Proceeds from deposit for capital stock subscription
from related party 474,000 - 474,000
------------------ ----------------- ------------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 474,000 119,119 5,457,605
------------------ ----------------- ------------------
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS 78,786 (999) 421,176
------------------ ----------------- ------------------
NET INCREASE IN CASH AND CASH EQUIVALENTS 395,317 85,733 1,198,062
CASH AND CASH EQUIVALENTS--BEGINNING OF PERIOD 802,745 269,482 -
------------------ ----------------- ------------------
CASH AND CASH EQUIVALENTS--END OF PERIOD $ 1,198,062 $ 355,215 $ 1,198,062
================== ================= ==================

SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
</TABLE>
5
<PAGE>
PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2008 (UNAUDITED)

1. NATURE OF BUSINESS AND BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying interim condensed consolidated financial statements as of March
31, 2008, for the three months ended March 31, 2008 and 2007 and for the period
from November 22, 2000 (Inception) through March 31, 2008 have been prepared by
management pursuant to the rules and regulations of the Securities and Exchange
Commission ("SEC") for interim financial reporting. These interim condensed
consolidated financial statements are unaudited and, in the opinion of
management, include all adjustments (consisting only of normal recurring
adjustments and accruals) necessary to present fairly the condensed consolidated
balance sheets, condensed consolidated operating results, and condensed
consolidated cash flows for the periods presented in accordance with accounting
principles generally accepted in the United States of America ("GAAP").
Operating results for the three months ended March 31, 2008 are not necessarily
indicative of the results that may be expected for the year ending December 31,
2008 or for any other interim period during such year. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with GAAP have been omitted in accordance with the rules and
regulations of the SEC. The accompanying financial statements should be read in
conjunction with the audited consolidated financial statements and notes thereto
contained in the Company's Annual Report on Form I0-KSB for the fiscal year
ended December 31, 2007 filed with the SEC on April 14, 2008.

NATURE OF BUSINESS

Proteo, Inc. and its wholly-owned subsidiary (hereinafter collectively referred
to as the "Company") intend to develop, manufacture, promote and market
pharmaceuticals and other biotech products. The Company is focused on the
development of pharmaceuticals based on the human protein Elafin which naturally
occurs in human skin, lungs, and mammary glands. The Company believes Elafin may
be useful in the treatment of cardiac infarction, serious injuries caused by
accidents, post surgery damage to tissue and complications resulting from organ
transplantations.

Proteo, Inc.'s common stock is currently quoted on the OTC Bulletin Board of the
National Association of Securities Dealers under the symbol "PTEO".

Since its inception, the Company has primarily been engaged in the research and
development of its proprietary product Elafin. Once the research and development
phase is complete, the Company intends to manufacture and seek the various
governmental regulatory approvals for the marketing of Elafin. Management
believes that none of its planned products will produce sufficient revenues in
the near future. As a result, the Company plans to identify and develop other
potential products. There are no assurances, however, that the Company will be
able to develop such products, or if produced, that they will be accepted in the
marketplace.

DEVELOPMENT STAGE AND GOING CONCERN CONSIDERATIONS

The Company has been in the development stage since it began operations on
November 22, 2000, and has not generated any significant revenues from
operations. There is no assurance of any future revenues. The Company will
require substantial additional funding for continuing research and development,
obtaining regulatory approvals and for the commercialization of its product.
There can be no assurance that the Company will be able to obtain sufficient
additional funds when needed, or that such funds, if available, will be
obtainable on terms satisfactory to the Company.

Management has taken action to address these matters. They include:

o Retention of experienced management personnel with particular skills
in the commercialization of such products.
o Attainment of technology to develop additional biotech products.
o Raising additional funds through the sale of debt and/or
equity securities.

The products that the Company is developing are considered drugs or biologics,
and hence are governed by the Federal Food, Drug and Cosmetics Act and the
regulations of State and various foreign government agencies. The Company's
proposed pharmaceutical products to be used by humans are subject to certain
clearance procedures administered by the above regulatory agencies.

6
<PAGE>
PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2008 (UNAUDITED)

Management plans to generate revenues from product sales, but there is no
commitment by any persons for purchase of any of the proposed products. In the
absence of significant sales and profits, the Company may seek to raise funds to
meet its future working capital requirements through the additional sales of
debt and/or equity securities. There is no assurance that the Company will be
able to obtain sufficient additional funds when needed, or that such funds, if
available, will be obtainable on terms satisfactory to the Company.

These circumstances, among others, raise concerns about the Company's ability to
continue as a going concern. The accompanying condensed consolidated financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.

CONCENTRATIONS

The Company maintains substantially all of its cash in bank accounts in Germany
and not in United States bank depository accounts insured by the Federal Deposit
Insurance Corporation. Under German law, the bank accounts are insured by the
Deposit Protection Fund. Each bank customer is insured for up to seven billion
Euros. The Company has not experienced any losses in these accounts.

Proteo, Inc.'s research and development activities and most of its assets are
located in Germany. The Company's operations are subject to various political,
economic, and other risks and uncertainties inherent in Germany and the European
Union.

OTHER RISKS AND UNCERTAINTIES

Proteo, Inc.'s line of future pharmaceutical products being developed by its
German subsidiary are considered drugs or biologics, and as such, are governed
by the Federal Food and Drug and Cosmetics Act and by the regulations of state
agencies and various foreign government agencies. There can be no assurance that
the Company will obtain the regulatory approvals required to market its
products. The pharmaceutical products under development in Germany will be
subject to more stringent regulatory requirements because they are in vitro
products for humans. The Company has no experience in obtaining regulatory
clearance on these types of products. Therefore, the Company will be subject to
the risks of delays in obtaining or failing to obtain regulatory clearance and
other uncertainties, including financial, operational, technological, regulatory
and other risks associated with an emerging business, including the potential
risk of business failure.

As substantially all of the Company's operations are in Germany, the Company is
exposed to risks related to fluctuations in foreign currency exchange rates.
Management does not utilize derivative instruments to hedge against such
exposure.

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements have been prepared in accordance
with GAAP and include the accounts of Proteo, Inc. and its wholly owned
subsidiary. All significant intercompany accounts and transactions have been
eliminated in consolidation.

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS

In the opinion of management, neither the Financial Accounting Standards Board,
its Emerging Issues Task Force, the AICPA, nor the SEC have issued any
accounting pronouncements since the Company filed its December 31, 2007 Form
10-KSB that are expected to have a material impact on the Company's future
consolidated financial statements.

The recent accounting pronouncements discussed in the notes to the Company's
December 31, 2007 audited consolidated financial statements, filed previously
with the SEC in Form 10-KSB, that were required to be adopted during the year
ending December 31, 2008 did not have or are not expected to have a significant
impact on the Company's 2008 consolidated financial statements.

2. EQUITY TRANSACTIONS

There have been no issuances of common stock or preferred stock during the
three-month periods ended March 31, 2008 or 2007, nor have any stock options
been granted from inception to-date.


7
<PAGE>
PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2008 (UNAUDITED)

3. LOSS PER COMMON SHARE

The Company computes loss per common share using Statement of Financial
Accounting Standards ("SFAS") No. 128, "EARNINGS PER SHARE." Basic loss per
common share is computed based on the weighted average number of shares
outstanding for the period. Diluted loss per common share is computed by
dividing net loss by the weighted average shares outstanding assuming all
dilutive potential common shares were issued. There were no dilutive potential
common shares outstanding at March 31, 2008 or 2007. Additionally, there were no
adjustments to net loss to determine net loss available to common shareholders.
As such, basic and diluted loss per common share equals net loss, as reported,
divided by the weighted average common shares outstanding for the respective
periods.

4. FOREIGN CURRENCY TRANSLATION

Assets and liabilities of the Company's German operations are translated from
Euros (the functional currency) into U.S. dollars (the reporting currency) at
period-end exchange rates; equity transactions are translated at historical
rates; and grant receipts, income and expenses are translated at weighted
average exchange rates for the period. Net foreign currency exchange gains or
losses resulting from such translations are excluded from the results of
operations but are included in other comprehensive income and accumulated in a
separate component of stockholders' equity. Accumulated comprehensive income
approximated $455,000 at March 31, 2008.

5. FOREIGN CURRENCY TRANSACTIONS

The Company records payables related to a certain licensing agreement in
accordance with SFAS No. 52, "FOREIGN CURRENCY TRANSLATION." Quarterly
commitments under such agreement are denominated in Euros. For each reporting
period, the Company translates the quarterly amount to U.S. dollars at the
exchange rate effective on that date. If the exchange rate changes between when
the liability is incurred and the time payment is made, a foreign exchange gain
or loss results. The Company has made no payments under this licensing agreement
during the three-month periods ended March 31, 2008 and 2007, and, therefore,
has not realized any significant foreign currency exchanges gains or losses
during these periods.

Additionally, the Company computes a foreign exchange gain or loss at each
balance sheet date on all recorded transactions denominated in foreign
currencies that have not been settled. The difference between the exchange rate
that could have been used to settle the transaction on the date it occurred and
the exchange rate at the balance sheet date is the unrealized gain or loss that
is currently recognized. The Company recorded unrealized foreign currency
transaction losses of approximately $89,000 and $9,000 for the three-months
ended March 31, 2008 and 2007, respectively, which are included in interest and
other expense in the accompanying condensed consolidated statements of
operations and comprehensive loss.

6. SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION

SFAS No. 131, "DISCLOSURES ABOUT SEGMENTS OF AN ENTERPRISE AND RELATED
INFORMATION," establishes standards for how public companies report information
about segments of their business in their annual financial statements and
requires them to disclose selected segment information in their quarterly
reports issued to shareholders. It also requires entity-wide disclosures about
the products and services an entity provides, the countries in which it holds
material assets and reports material revenues and its major customers. The
Company considers itself to operate in one segment and has not generated any
significant operating revenues since its inception. All of the Company's
property and equipment is located in Germany.

7. GRANTS

In May 2004, the German state of Schleswig-Holstein granted Proteo Biotech AG (a
wholly-owned subsidiary of Proteo, Inc.) approximately 760,000 Euros (the
"Grant") for further research and development of the Company's pharmaceutical
product Elafin. The Grant, as amended, covers the period from April 1, 2004 to
December 31, 2007 if certain milestones have been reached by September 30 of
each year, with a possible extension as defined in the agreement. The Grant
covers approximately 50% of eligible research and development costs and is
subject to the Company's ability to otherwise finance the remaining costs. An
additional condition of the Grant is that the product is to be developed and
subsequently produced in Schleswig-Holstein.

8
<PAGE>
PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2008 (UNAUDITED)

The Company qualified to receive approximately 217,000 Euros and 225,000 Euros
(approximately $320,000 and $298,000, respectively) of the Grant in 2007 and
2006, respectively. Grant funds approximating 196,000 Euros and 225,000 Euros
(approximately $289,000 and $298,000, respectively) have been received (or were
due at December 31, 2007) and reported as a reduction of research and
development expenses for the years ended December 31, 2007 and 2006,
respectively. The remaining 21,000 Euros (approximately $27,000) expired as of
December 31, 2007 and were forfeited. Grant funds approximating 0 and 31,000
Euros ($0 and $41,000, respectively) were received during the three-month
periods ended March 31, 2008 and 2007, respectively, and have been reported as a
reduction of research and development expenses.

8. DR. WIEDOW LICENSE AGREEMENT

On December 30, 2000, the Company entered into a thirty-year license agreement,
beginning January 1, 2001, with Dr. Oliver Wiedow, MD, the owner and inventor of
several patents, patent rights and technologies related to Elafin. In exchange
for an exclusive worldwide license for the intellectual property, the Company
agreed to pay Dr. Wiedow a licensing fee of 110,000 Euros per year for six years
for a total obligation of 660,000 Euros. Such licensing fees shall be reduced by
payments to Dr. Wiedow during such term for any royalties and for 50% of any
salary. Royalties are to be paid quarterly to Dr. Wiedow for the term of the
agreement in the amount of three percent of gross revenues earned from the sale
of products based on the licensed technology. Dr. Wiedow has not been paid any
salary since execution of the agreement.

During 2004, the licensing agreement was amended to require annual payments of
30,000 Euros on July 15 of each year, beginning on July 15, 2004. Such amount
can be increased in calendar 2005 and thereafter to 110,000 Euros by June 1 of
each year based on an assessment of the Company's financial ability to make such
payments. The annual payments will continue until the entire obligation of
660,000 Euros has been paid. In December 2007, the Company paid to Dr. Wiedow
30,000 Euros (approximately $43,000). No other payments were made to Dr. Wiedow
as of December 31, 2007, which was a technical breach of the license agreement.
Dr. Wiedow waived such breach and deferred all of the other payments that were
contractually due as of March 31, 2008 to December 31, 2008.

At March 31, 2008 and December 31, 2007 the Company has accrued $995,400
(630,000 Euros) and $927,900 (630,000 Euros), respectively, of licensing fees
payable to Dr. Wiedow. No payments were made to Dr. Wiedow during the
three-month period ended March 31, 2008.

Dr. Wiedow, who is a director of the Company, beneficially owned approximately
45% of the Company's outstanding common stock as of March 31, 2008.

9. OTHER MATTERS

In March 2008, the Company received 300,000 Euros ($474,000) from a related
party investor as a deposit for capital stock subscription. As of and subsequent
to March 31, 2008, the Company did not have a written agreement related to the
deposit.

9
<PAGE>

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
-------------------------------------------------------------------------------
OF OPERATIONS
-------------


CAUTIONARY STATEMENTS:

This Quarterly Report on Form 10-Q contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The
Company intends that such forward-looking statements be subject to the safe
harbors created by such statutes. The forward-looking statements included herein
are based on current expectations that involve a number of risks and
uncertainties. Accordingly, to the extent that this Quarterly Report contains
forward-looking statements regarding the financial condition, operating results,
business prospects or any other aspect of the Company, please be advised that
the Company's actual financial condition, operating results and business
performance may differ materially from that projected or estimated by the
Company in forward-looking statements.

The differences may be caused by a variety of factors, including but not limited
to adverse economic conditions, intense competition, including intensification
of price competition and entry of new competitors and products, adverse federal,
state and local government regulation, inadequate capital, unexpected costs and
operating deficits, increases in general and administrative costs, and other
specific risks that may be alluded to in this Quarterly Report or in other
reports issued by the Company. In addition, the business and operations of the
Company are subject to substantial risks that increase the uncertainty inherent
in the forward-looking statements. The inclusion of forward looking statements
in this Quarterly Report should not be regarded as a representation by
management or any other person that the objectives or plans of the Company will
be achieved.

In calendar 2007, the Company generated a relatively minor amount of
non-operating revenue from its licensing activities and does not expect to
report any significant operating revenue until the successful development and
marketing of its planned pharmaceutical and other biotech products.
Additionally, after the launch of the Company's products, there can be no
assurance that the Company will generate positive cash flow and there can be no
assurances as to the level of revenues, if any, the Company may actually achieve
from its planned principal operations.

OVERVIEW

The Company specializes in the research, development and marketing of drugs for
inflammatory diseases with Elafin as its first project. Management deems Elafin
to be one of the most prospective substances in the treatment of serious tissue
and muscle damage. Independently conducted animal experiments have indicated
that Elafin may have benefits in the treatment of tissue and muscle damage
caused by insufficient oxygen supply and therefore may be useful in the
treatment of heart attacks, serious injuries and in the course of organ
transplants. Other applications have yet to be determined.

The Company intends to implement Elafin as a drug in the treatment of
inflammatory diseases, and plans to seek governmental approval in Europe first.
Currently, management estimates that it will take at least four years to achieve
its first governmental approval for the use of Elafin as a drug for the first
indication.

The Company's success will depend on its ability to prove that Elafin is well
tolerated by humans and its efficacy in the indicated treatment. There can be no
assurance that the Company will be able to develop feasible production
procedures in accordance with Good Manufacturing Practices ("GMP") standards, or
that Elafin will receive any governmental approval for its use as a drug in any
of the intended applications.

After developing a production procedure for Elafin, Proteo has initiated
clinical trials to achieve governmental approval for the use of Elafin as a drug
in Europe. For this purpose, Proteo has contracted Eurogentec, an experienced
Contract Manufacturing Organization (CMO) located in Belgium to produce Elafin
in accordance with GMP (good manufacturing practices) standards as required for
clinical trials.

In December 2005, Proteo successfully completed a first Phase I trial for
Elafin. Elafin was tested on 32 healthy male volunteers in a
single-ascending-dose, double blind, randomized, placebo-controlled trial to
evaluate its tolerability and safety at the Institut fur Klinische Pharmakologie
in Kiel, Germany. All intravenously applied doses were well tolerated. No severe
adverse events occurred.

10
<PAGE>

During 2006, the Company gathered and evaluated additional data from the results
of the Phase I study, and we are currently in the process of planning a Phase II
clinical trial. The design of a first Phase II study, which is intended to prove
Elafin's efficacy in a certain indication, is substantially complete. The
realization of such Phase II study will largely depend on the Company's ability
to acquire sufficient funds in its financial activities.In addition, during
2006, we established a procedure to incorporate Elafin as an active ingredient
in cream.

In September 2006, Windhover Information, Inc., an established provider of
business information for decision makers in the biotechnology and pharmaceutical
industries, chose the Company's Elafin project as one of the top 10 most
interesting cardiovascular projects. We presented the Elafin project at the
"Windhover's Therapeutic Alliances Cardiovascular Conference" in Chicago on
November 16, 2006.

In September 2006 we filed an application with the EMEA (European Medicines
Agency) to obtain orphan drug status in the European markets for Elafin to be
used in the treatment of pulmonary hypertension. Subsequent to December 31,
2006, the Committee for Orphan Medical Products (COMP) of the EMEA issued a
positive opinion recommending the granting of orphan medicinal product
designation for Elafin for treatment of pulmonary arterial hypertension and
chronic thromboembolic pulmonary hypertension. On March 20, 2007 the orphan drug
designation became effective upon adoption of the recommendation by the European
Commission.

In July 2007, we entered into an agreement with the University of Alberta,
Canada to cooperate in research on Elafin for the treatment of pulmonary
diseases in neonates. Animal experiments on newborn rats will be carried out by
Dr. Bernard Thebaud, associate professor at the Department of Pediatrics and
Neonatology.

In August 2007, the Company's subsidiary entered into an agreement with Rhein
Minapharm ("Mina"), a well established Egyptian pharmaceutical company based in
Cairo, for clinical development, production and marketing of Elafin. We have
granted Mina the right to exclusively market Elafin in Egypt and certain Middle
Eastern and African countries. Proteo received an initial payment of $110,000
upon execution of the agreement, and may receive additional payments upon Mina's
attainment of certain clinical milestones as well as royalties on future net
product sales. In addition, Mina will finance the clinical research activities
for the designated region. The agreement schedules the transfer of the
biotechnological production process of Elafin to Cairo.

In January 2008, we entered into an agreement with Stanford University in
California to cooperate in preclinical studies related to Elafin's treatment of
pulmonary arterial hypertension. Proteo will provide support for animal
experiments conducted by Marlene Rabinovitch, Research Director of the Vera
Moulton Wall Center for Pulmonary Vascular Disease at Stanford University who is
a renowned expert in the field, and her group at the university.

In April 2008, we submitted an application to the Ethics Committee at the
University of Kiel, Germany for a placebo-controlled randomized trial to
evaluate the effect of Elafin on cytokine profiles after major surgery (clinical
phase II).

In May 2008, the Ethics Committee at the University of Kiel, Germany gave its
positive opinion on our application for approval of a placebo-controlled
randomized trial to evaluate the effect of Elafin on cytokine profiles after
major surgery (clinical phase II), which we submitted to the BUNDESINSTITUT FUR
ARZNEIMITTEL UND MEDIZINPRODUKTE, the German Federal Institute for
pharmaceuticals and medical products.

Our goal is to obtain our first governmental regulatory approval for the first
indication of our initial product in 2012. It should be noted that the first
indication, if successfully developed, would have a market potential
substantially smaller than the overall market of Elafin for more widespread
applications such as for the treatment of cardiac infarction.

RESULTS OF OPERATIONS

OPERATING EXPENSES

The Company's operating expenses for the three month period ended March 31, 2008
were approximately $250,000, an increase of approximately $132,000 over the same
period of the prior year. This increase is due primarily to an increase in
research and development expenses during the current year quarter of
approximately $107,000 which was not offset by the receipt of any grant funds as
was the case in the prior year quarter and an increase in general and
administrative expenses of approximately $25,000.

11
<PAGE>

INTEREST AND OTHER EXPENSE

Interest and other expenses for the three month period ended March 31, 2008 were
approximately $62,000, an increase of approximately $55,000 over the same period
of the prior year. This increase is due primarily to an increase in the
unrealized foreign currency transaction loss described in Note 5 to the
Company's financial statements included elsewhere herein.

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS

We experienced a net gain of approximately $84,000 in foreign currency
translation adjustments during the three month period ended March 31, 2008, an
increase of approximately $78,000 over the same period in the prior year. This
increase is primarily due to a weakening U.S. Dollar (our reporting currency)
compared to the Euro (our functional currency) during the quarter.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception we have raised a total of approximately $4,984,000 from the
sale of 20,065,428 shares of our common stock, of which 6,585,487 shares,
300,000 shares and 1,500,000 shares have been sold at $0.40 per share, $0.84 per
share and $0.60 per share, respectively, under stock subscription agreements in
the amount of approximately $2,035,000, $252,000 and $900,000, respectively.

In May 2004, the German State of Schleswig-Holstein granted Proteo Biotech AG
approximately 760,000 Euros (the "2004 Grant") for further research and
development of the Company's pharmaceutical product Elafin. The 2004 Grant, as
amended, covers the period from April 1, 2004 to December 31, 2007 if certain
milestones have been reached by September 30 of each year, with a possible
extension as defined in the agreement. The 2004 Grant covers approximately 50%
of eligible research and development costs and is subject to the Company's
ability to otherwise finance the remaining costs. An additional condition of the
grant is that the product is to be developed and subsequently produced in the
German state of Schleswig-Holstein.

The Company qualified to receive approximately 217,000 Euros and 225,000 Euros
under the 2004 Grant in 2007 and 2006, respectively. In 2007, we received grant
funds approximating 172,000 Euros and qualified for an additional 23,623 Euros
recorded as a receivable as of December 31, 2007. We did not qualify for
approximately 21,000 Euros under the 2004 Grant by December 31, 2007, and such
amount was forfeited. As of December 31, 2007, management believes that all
other milestones required by the 2004 Grant have been satisfied.

In March 2008, the Company received 300,000 Euros ($474,000) from a potential
investor as a deposit for a capital stock subscription. As of and subsequent to
March 31, 2008, the Company did not have a written agreement related to the
deposit.

The Company has cash approximating $1,198,000 as of March 31, 2008. This is a
significant increase over the December 31, 2007 cash balance of approximately
$803,000, due to receipts from the 2004 Grant, a deposit for capital stock
subscription by a related party investor. The VAT and grant amounts had been
reflected as prepaid expenses and other current assets on our December 31, 2007
consolidated balance sheet. Their receipt accounts for the decrease in such
account at March 31, 2008.

Management believes that the Company will not generate any significant revenues
in the next few years, nor will it have sufficient cash to fund operations. As a
result, the Company's success will largely depend on its ability to secure
additional funding through the sale of its common stock and/or debt securities.
There can be no assurance, however, that the Company will be able to consummate
debt or equity financing in a timely manner, or on a basis favorable to the
Company, if at all.

GOING CONCERN

The Company's independent registered public accounting firm stated in their
Auditor's Report included in our Form 10-KSB for the year ended December 31,
2007 that the Company will require a significant amount of additional capital to
advance the Company's products to the point where they may become commercially
viable and has incurred significant losses since inception. These conditions,
among others, raise substantial doubt about the Company's ability to continue as
a going concern.

12
<PAGE>

The Company intends to fund operations through grant proceeds and increased
equity financing arrangements which management believes may be insufficient to
fund its capital expenditures, working capital and other cash requirements for
the fiscal year ending December 31, 2008. Therefore, the Company will be
required to seek additional funds to finance its long-term operations. The
successful outcome of future activities cannot be determined at this time and
there is no assurance that if achieved, the Company will have sufficient funds
to execute its intended business plan or generate positive operating results.

OFF BALANCE SHEET ARRANGEMENTS

The Company does not currently have any off balance sheet arrangements.

CAPITAL EXPENDITURES

None significant.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
------------------------------------------------------------------

A smaller reporting company ("SRC") is not required to provide any information
in response to Item 305 of Regulation S-K.


ITEM 4T. CONTROLS AND PROCEDURES
--------------------------------

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e)
under the Exchange Act) that are designed to ensure that information required to
be disclosed in Exchange Act reports is recorded, processed, summarized and
reported within the time period specified in the SEC's rules and forms, and that
such information is accumulated and communicated to our management, including to
Birge Bargmann our Chief Executive Officer and Chief Financial Officer, to allow
timely decisions regarding required disclosure.

As required by Rule 13a-15 under the Exchange Act, our management, including
Birge Bargmann our Chief Executive Officer and Chief Financial Officer,
evaluated the effectiveness of the design and operation of our disclosure
controls and procedures as of March 31, 2008. Based on that evaluation, Ms.
Bargmann concluded that as of March 31, 2008, and as of the date that the
evaluation of the effectiveness of our disclosure controls and procedures was
completed, our disclosure controls and procedures were not effective to satisfy
the objectives for which they are intended because of the material weakness
described below.

We lack the necessary in-house personnel with sufficient technical U.S.
accounting expertise to ensure that our interim and annual consolidated
financial statements (including the required footnote disclosures) can be
prepared without material misstatements.

Our plan to remediate the material weakness as of March 31, 2008 is to utilize
an outside consulting resource to prepare and review the Company's interim and
annual consolidated financial statements. Subsequent to March 31, 2008, we have
retained such outside consultant who is now assisting us in preparing and
reviewing the Company's aforementioned financial statements.

13
<PAGE>

PART II OTHER INFORMATION
-------------------------

ITEM 1. LEGAL PROCEEDINGS.
------- ------------------

None.

ITEM 1A RISK FACTORS
------- ------------

Not required for SRCs.

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

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

Exhibits:

31.1 Certification of the Chief Executive Officer pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 Certification of the Chief Financial Officer pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002.

32 Certification of Chief Executive Officer and Chief
Financial Officer pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.


14
<PAGE>

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.


PROTEO, INC.

Dated: May 20, 2008

By: /s/ Birge Bargmann
-----------------------
Birge Bargmann
Principal Executive Officer and
Chief Financial Officer
(signed both as an Officer duly
authorized to sign on behalf of
the Registrant and Principal
Financial Officer and Chief
Accounting Officer)


15
</TEXT>
</DOCUMENT>

[derhollaender]

Antwort auf Beitrag Nr.: 34.148.004 von kaubeuhut am 22.05.08 03:34:48

Kaubeuhut

Kann es sein das du heute einen Moet et Chandon leer machst? Proteo +200 % und Sangui +100 % innerhalb ein paar Wochen?
Was mich wundert ist woher soviele jetzt Proteo kaufen ohne die geringsten Hinweis auf News?

Gruße

Holländer

[agnesw]

na, wurdet ihr auch schön rausgespühlt mit euren stopps

bin hier long zu 1,15

[agnesw]

1,28

die läuft wieder auf die 1,80 - 2,00 euro

[agnesw]

1,48

18k auf der 1,40

[derhollaender]

Antwort auf Beitrag Nr.: 34.252.854 von agnesw am 06.06.08 11:40:34

Hallo Agnes

Nein ich bin nicht ein stop loss opfer, sondern schon Jahre dabei weil ich am Wirkstoff Elafin glaube. Bist du jetzt eingestiegen als Wellenreiter oder was sind deine Beweggründe das du auf die Aktie aufmerksam geworden bist? Soll nicht böse gemeint sein, nur mal der Interesse halber. Das Unternehmen und sein Produkt ist sehr vielversprechend.

Schönes Wochenende

Holländer

[miss_leila]

!

Dieser Beitrag wurde moderiert. Grund: auf eigenen Wunsch des Users

[selino]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[agnesw]

Antwort auf Beitrag Nr.: 34.254.660 von agnesw am 06.06.08 14:47:29

und raus zu 1,60

adieu und somit frage beantwortet

[Maettel]

Antwort auf Beitrag Nr.: 34.265.134 von agnesw am 09.06.08 09:41:05

Na dann viel Glück...
Ich rate oberste Vorsicht...

Proteo, Inc.:
Platzierung von Vorzugsaktien der Serie A - 3,6 Mio US$ zur Finanzierung klinischer Studien



Irvine, CA, 11. Juni 2008 – Proteo, Inc. (OTCBB: PTEO; Frankfurter Freiverkehr: WKN: 925981) gab heute eine Platzierung von Vorzugsaktien bekannt.

Im Rahmen einer Kapitalerhöhung der Proteo, Inc. wurden aus genehmigtem Kapital insgesamt 600.000 Vorzugsaktien der Serie A bei einem institutionellen Investor, der Schweizer FID Esprit AG, platziert. Aus dieser Transaktion fließen dem Unternehmen 3,6 Mio US$ zu, mit denen das deutsche Tochterunternehmen Proteo Biotech AG in Kiel sein klinisches Entwicklungsprogramm vorantreiben wird.

[Maettel]

Authorized Outstanding
Date Shares Source Date Shares Source
11/15/2004 300,000,000 10QSB 04/07/2008 23,879,350 MGFS

Es gibt schon 300 Mio Aktien!

[mylastlovestory]

ich wette bald kommt eine saftige und korrektive Äußerung vom Big Boss. Jemand muss ja schließlich die Mehrheit der stillen Leser bez. der "signifikanten" Bedeutung (oder Unterschied) zwischen Stamm-(Common)und Vorzugsaktie (Preferred) aufklären.

Maettel, eigentlich sollten Sie das wissen, oder? Warum die Firma in Misskredit bringen, der Vertrag ist doch SEC gesegnet und sieht doch ordentlich aus. 11 US$ gibt es trotzdem nicht! Mach dir nichts daraus, Deutsche Telekom steigt auch nicht auf 60 €.(vielleicht sehen die Karten in zehn Jahren für beide anders aus?)

Wer jetzt verkauft glaubt es, wer nicht verkauft glaubt es nicht. Verwirrt? Ja, so ist die Börse, sie verleitet zu Fehlentscheidungen im richtigem Moment.

Außerdem: warum immer auf Proteo schießen? Der Kurs steigt, reicht das nicht? Ach ja, ajk, sorry das ich etwas grob war, wird nicht wieder vorkommen.
Also, mein kleines Lexikon sagt mir shares issued * knapp 24 Mio, aber 300 Mio können insgesamt an den Mann gebracht werden, of course common.
Ich würde hier mit Stops arbeiten!

[kaubeuhut]

Pressemitteilung




Proteo, Inc.:
Platzierung von Vorzugsaktien der Serie A - 3,6 Mio US$ zur Finanzierung klinischer Studien



Irvine, CA, 11. Juni 2008 – Proteo, Inc. (OTCBB: PTEO; Frankfurter Freiverkehr: WKN: 925981) gab heute eine Platzierung von Vorzugsaktien bekannt.

Im Rahmen einer Kapitalerhöhung der Proteo, Inc. wurden aus genehmigtem Kapital insgesamt 600.000 Vorzugsaktien der Serie A bei einem institutionellen Investor, der Schweizer FID Esprit AG, platziert. Aus dieser Transaktion fließen dem Unternehmen 3,6 Mio US$ zu, mit denen das deutsche Tochterunternehmen Proteo Biotech AG in Kiel sein klinisches Entwicklungsprogramm vorantreiben wird.


Über Proteo
Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte für rekombinantes menschliches Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung (www.proteo.us).

[kaubeuhut]

EXHIBIT 10.9

PROMISSORY NOTE

US $3,600,000.00

BUBIKON, SWITZERLAND

JUNE 9, 2008

FOR VALUED RECEIVED, the undersigned, a corporation duly organized
under the laws of Switzerland, with its principal place of business at
Rosengartenstr. 4, CH-8608 Bubikon, Switzerland, (the "Maker"), unconditionally
promises to pay to the order of Proteo, Inc., a Nevada corporation, (the
"Holder"), at its principal place of business at 2102 Business Center Drive,
Suite 130, Irvine, CA 92612 or at such other place as may be designated in
writing by the Holder, the principal sum of $3,600,000.00, with no interest.

Principal shall be payable in four installments as follows:

o First installment of $900,000 falling due upon execution;
o Second installment of $450,000 falling due on or before August
30, 2008;
o Third installment of $900,000 falling due on or before
November 30, 2008;
o Fourth and final installment of $1,350,000 falling due on or
before March 31, 2009

All payments under this Note shall be in lawful money of the United
States.

In no event shall the interest and other charges in the nature of
interest hereunder, if any, exceed the maximum amount of interest permitted by
law. Any amount collected in excess of the maximum legal rate shall be applied
to reduce the principal balance.

All payments under this Note shall be applied first to the late fees
and costs, if any, and second to interest then due, if any, and to balance the
principal.

The Maker agrees to pay to the holder all costs, expenses and
reasonable attorney's fees incurred in the collection of sums due hereunder,
whether through legal proceedings or otherwise, to the extent permitted by law.

This Note may be prepaid at any time, in whole or in part, without
penalty or premium.

If any installment hereunder is not paid within ten (10) days of the
date the same is due, the Maker shall pay to the holder a late charge equal to
three percent (3%) of the overdue payment as liquidated damages, and not as a
penalty.

After the maturity of this Note, or upon any default, this Note shall
bear interest at the rate of ten percent (10%) per annum, at the option of the
Holder.


-1-
<PAGE>

At the option of the Holder, this entire Note shall become immediately
due and payable, without demand and notice, upon the occurrence of any one of
the following events:

(a) failure of the Maker to pay any installment hereunder when
due, which shall continue for ten (10) days;
(b) any misrepresentation or omission of or on behalf of Maker
made to the holder in connection with this loan;
(c) insolvency or failure of the Maker or any guarantor to
generally pay its debts as they become due;
(d) assignment for the benefit of creditors of, or appointment of
a receiver or other officer for, all or any part of Maker's or
any guarantor's property;
(e) adjudication of bankruptcy, or filing of a petition under any
bankruptcy or debtor's relief law by or against Maker or any
guarantor;
(f) death of Maker or any guarantor;
(g) sale or transfer, whether voluntary or involuntary, of all or
any interest in the property which is security for this Note;
or
(h) default under any mortgage, trust deed, security agreement or
other instrument securing this note, if any.

The Maker expressly waives presentment, demand, notice,
protest, and all other demands and notices in connection with this
Note. No renewal or extension of this Note, or release of any
collateral or party liable hereunder, will release the liability of the
Maker.

Failure of the Holder to exercise any right or option shall
not constitute a waiver, nor shall it be a bar to the exercise of any
right or any option at nay future time.

If any provision of this Note shall be invalid or
unenforceable, the remaining provisions shall remain in full force and
effect.

This Note shall be governed by the laws of the state of
California.


IN WHITNESS WHEREOF, this Promissory Note is executed under
seal on the day and year first above written.

Executed: FIDEsprit AG:



/s/ Joerg Alte
-----------------------
Joerg Alte
Managing Director


-2-
<PAGE>

GUARANTY

FOR VALUE RECEIVED, the undersigned Axel J. Kutscher, living at Oetwilerstr. 29,
CH-8634 Hombrechtikon, Switzerland, as primary obligor, hereby unconditionally
guarantees the prompt payment of principal and interest when due and all other
obligations contained in the Promissory Note as of June 9, 2008 given by
FIDESprit AG to Proteo, Inc. The undersigned accepts and agrees to be bound by
all terms, conditions and waivers contained in the Note. The undersigned waives
notice of acceptance of this guarantee and suretyship defenses of all kinds. The
Holder may extend the time of payment, release any collateral or party reliable
on the Note, or grant any indulgence to any party without releasing the
liability of the undersigned. The Holder need not proceed against Maker or any
other party or collateral prior to proceeding against the undersigned. The
undersigned agrees to pay all costs, expenses and attorney's fees incurred by
the Holder in enforcing the Note and this Guaranty.


Dated June 9, 2008.


Executed: Guarantor




/s/ Axel J. Kutscher
------------------------
Axel J. Kutscher

[kaubeuhut]

FILER:

COMPANY DATA:
COMPANY CONFORMED NAME: PROTEO INC
CENTRAL INDEX KEY: 0001063104
STANDARD INDUSTRIAL CLASSIFICATION: [9995]
IRS NUMBER: 880292249
STATE OF INCORPORATION: NV
FISCAL YEAR END: 1231

FILING VALUES:
FORM TYPE: 8-K
SEC ACT: 1934 Act
SEC FILE NUMBER: 000-30728
FILM NUMBER: 08891979

BUSINESS ADDRESS:
STREET 1: 2102 BUSINESS CENTER DRIVE
CITY: IRVINE
STATE: CA
ZIP: 92612
BUSINESS PHONE: [phone]

MAIL ADDRESS:
STREET 1: 2102 BUSINESS CENTER DRIVE
CITY: IRVINE
STATE: CA
ZIP: 92612

FORMER COMPANY:
FORMER CONFORMED NAME: TRIVANTAGE GROUP INC
DATE OF NAME CHANGE: 20010727

FORMER COMPANY:
FORMER CONFORMED NAME: PAGE ACTIVE HOLDINGS INC /
DATE OF NAME CHANGE: 19991026

FORMER COMPANY:
FORMER CONFORMED NAME: AMERICAN FLINTLOCK CO
DATE OF NAME CHANGE: 19980602
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>proteo_8k-060508.txt
<TEXT>
<PAGE>

================================================================================

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

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

FORM 8-K

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

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): June 5, 2008

PROTEO, INC.

(Exact name of registrant as specified in its charter)

Nevada 000-32849 88-0292249
(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)

2102 Business Center Drive, Irvine, California 92612
(Address of Principal Executive Offices)

Registrant's telephone number, including area code: [phone]

Not Applicable
(Former name or former address, if changed since last report)

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

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2 below):

|_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425).
|_| Soliciting material pursuant to Rule 14A-12 under the Exchange Act (17 CFR
240.14a-12)
|_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR.14d-2(b))
|_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))

================================================================================

<PAGE>

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.

On June 9, 2008, the Registrant entered into a Preferred Stock Purchase
Agreement (the "Agreement") with FIDEsprit AG, a Swiss corporation (the
"Investor"). Pursuant to the Agreement, the Registrant issued and sold to the
Investor 600,000 shares of the Registrant's Series A Preferred Stock at a price
of $6.00 per share, for an aggregate purchase price $3,600,000. In payment of
the purchase price, the Investor delivered to the Registrant a promissory note
in the principal amount of $3,600,000. The promissory note does not bear any
interest, and is payable as follows: (i) the first installment, in the amount of
$900,000, was due upon execution of the Agreement, (ii) the second installment,
in the amount of $450,000, is due on or before August 30, 2008, (iii) the third
installment, in the amount of $900,000, is due on or before November 30, 2008,
and (iv) the final installment, in the amount of $1,350,000, is due on or before
March 31, 2009. The promissory note is guaranteed by Axel J. Kutscher. The terms
of the Series A Preferred Stock are described in Item 5.03 below. Joerg Alte, a
director of the Registrant, is the Managing Director of the Investor.

ITEM 3.02 UNREGISTERED SALES OF EQUITY SECURITIES.

On June 9, 2008 the Registrant entered into the Agreement described in
Item 1.01 above. Pursuant to the Agreement the Registrant issued to the Investor
600,000 shares of Series A Preferred Stock in a transaction exempt from the
registration requirements of the Securities Act of 1933, as amended, by virtue
of the exemptions available under Rule 506 of Regulation D and Regulation S and
the rules promulgated thereunder.

ITEM 5.03 AMENDMENTS TO ARTICLES OF INCORPORATION OR BYLAWS; CHANGE IN FISCAL
YEAR.

On June 5, 2008, the Registrant filed a Certificate of Designation with
the Secretary of State of the State of Nevada to designate 750,000 shares of its
authorized preferred stock as Series A Preferred Stock. The Certificate of
Designation, a copy of which is attached as Exhibit 3.9 to this Current Report
on Form 8-K and incorporated herein by reference, describes the rights,
preferences and privileges of the Series A Preferred Stock.

9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(c) Exhibits. The following materials are filed as exhibits to this
Current report on Form 8-K:

Exhibit Number
--------------
3.9 Certificate of Designation of Series A Preferred Stock dated June
5, 2008
10.8 Preferred Stock Purchase Agreement dated June 9, 2008
10.9 Promissory Note dated June 9, 2008

<PAGE>

SIGNATURE

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 hereunto duly authorized.


PROTEO, INC.


Date: June 9, 2008 By: /s/ BIRGE BARGMANN
--------------------------------
Birge Bargmann
Chief Executive Officer
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-3.9
<SEQUENCE>2
<FILENAME>proteo_8k-ex0309.txt
<TEXT>
<PAGE>

EXHIBIT 3.9


ROSS MILLER
Secretary of State
[SEAL] 204 North Carson Street, Ste 1
Carson City, Nevada 89701-4299
[phone]
Website: secretaryofstate.biz

-----------------------------------------------
Filed in the office of Document Number
/s/ Ross Miller 20080386820-67
Ross Miller --------------------
Secretary of State Filing Data and Time
State of Nevada 06/05/2008 4:03 PM
--------------------
Entity Number
C13879-1992
-----------------------------------------------


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

CERTIFICATE OF DESIGNATION
(PURSUANT TO NRS 78.1955)

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


USE BLACK INK ONLY - DO NOT HIGHLIGHT ABOVE SPACE IS FOR OFFICE USE ONLY


CERTIFICATE OF DESIGNATION
--------------------------
FOR NEVADA PROFIT CORPORATION
-----------------------------
(PURSUANT TO NRS 78.1955)


1. Name of corporation:

Proteo, Inc.

2. By resolution of the board of directors pursuant to a provision in the
articles of incorporation, this certificate establishes the following regarding
the voting powers, designations, preferences, limitations, restrictions and
relative rights of the following class or series of stock.

Series A Preferred Stock, authorized number of shares constituting such series
shall be 750,000, with a par value of $0.001 per share.

Please see attached.




3. Effective date of filing (optional):


4. Officer Signature (Required): X /s/ Birge Bargmann
------------------------------------------


Filing fee: $175.00

IMPORTANT: Failure to include any of the above information and submit the
proper fees may cause this filing to be rejected.

<PAGE>

CERTIFICATE OF DESIGNATION OF SERIES A PREFERRED STOCK

OF

PROTEO, INC.
A NEVADA CORPORATION


Proteo, Inc., a Nevada corporation (the "Corporation"), hereby
certifies that the following resolution was adopted by the Board of Directors of
the Corporation:

RESOLVED, that pursuant to the authority vested in the Board of
Directors of this Corporation (the "Board of Directors") in accordance with the
provisions of the Articles of Incorporation of the Corporation, there is hereby
created, a series of Preferred Stock consisting of 750,000 shares, which series
shall have the following powers, designations, preferences and relative,
participating, optional and other special rights, and the following
qualifications, limitations and restrictions as follows:

Section 1. DESIGNATION AND AMOUNT. The shares of Preferred Stock
created hereby shall be designated as "Series A Preferred Stock" and the
authorized number of shares constituting such series shall be 750,000.

Section 2. DIVIDENDS AND DISTRIBUTIONS.

(A) The holders of the then outstanding shares of Series A Preferred
Stock shall be entitled to receive, when, as and if declared by the Board of
Directors, out of funds of the Corporation legally available therefore,
preferential dividends at the per share rate of two (2) times the per share
amount of each and any cash and non-cash dividend distributed to holders of the
Corporation's Common Stock when, as and if declared by the Board of Directors.

(B) No dividend shall be paid or declared on any share of Common Stock,
unless a dividend, payable in the same consideration and manner, is
simultaneously paid or declared, as the case may be, on each share of Series A
Preferred Stock in an amount determined as set forth in paragraph (A) above. For
purposes hereof, the term "dividends" shall include any pro rata distribution by
the Corporation, out of funds of the Corporation legally available therefore, of
cash, property, securities (including, but not limited to, rights, warrants or
options) or other property or assets to the holders of the Common Stock, whether
or not paid out of capital, surplus or earnings.

(C) If no dividend is distributed according to Section 2 (A), the
holders of the then outstanding shares of Series A Preferred Stock shall be
entitled to an annual stock dividend, when, as and if declared by the Board of
Directors, payable at the rate of one (1) share of the Series A Preferred Stock
for each twenty (20) shares of Series A Preferred Stock then held by each holder
of Series A Preferred Stock. Such stock dividend shall be paid on June 30 of
each year, commencing with the first June 30 in the year subsequent to the
calendar year in which the shares of Series A Preferred Stock were issued and no
dividend was distributed according to Section 2 (A). No fractional shares of
Series A Preferred Stock shall be issued in connection with the payment of the
stock dividend. In lieu of fractional shares, the Corporation shall issue such
additional fraction of a share as is necessary to increase the fractional share
to a full share.


-1-
<PAGE>

No stock dividend under this paragraph shall be paid after December 31, 2011.

(D) The Board of Directors may fix a record date for the determination
of holders of shares of Series A Preferred Stock entitled to receive any
dividend or distribution as provided in Paragraph (A) or Paragraph (C) above.

Section 3. VOTING RIGHTS. Except than otherwise provided herein or by
law, the shares of Series A Preferred Stock shall have no voting rights other
than on such matters submitted to a vote to the stockholders of Series A
Preferred Stock and such other stock designated to be the same class of the
Company's stock.

Section 4. REACQUIRED SHARES. Any shares of Series A Preferred Stock
purchased or otherwise acquired by the Company in any manner whatsoever shall be
retired and cancelled promptly after the acquisition thereof. All such shares
shall upon their cancellation become authorized but unissued shares of Preferred
Stock and may be reissued as part of Series A Preferred Stock or of any other
series of Preferred Stock as designated by the Board of Directors from time to
time.

Section 5. LIQUIDATION, DISSOLUTION OR WINDING UP. Upon any
liquidation, voluntary or otherwise, dissolution or winding up of the Company,
holders of Series A Preferred Stock shall be entitled to receive per share
distributions equal to two (2) times the rate of per share distributions to be
made to the holders of Common Stock. No distributions shall be made unless nay
accrued and unpaid dividends and distributions on the Series A Preferred Stock
have been made prior thereto. In the event, the Company shall have (i)
subdivided the outstanding Common Stock, or (ii) combined the outstanding Common
Stock into a smaller number of shares by a reverse stock split or otherwise,
after the issuance of Series A Preferred Stock, distributions payable to Series
A Preferred Stock under this Section 5 shall be adjusted accordingly.

Section 6. CONSOLIDATION; MERGER; ETC. In the event the Company shall
enter into any consolidation, merger combination or other transaction in which
the shares of Common Stock are exchanged into other stock or securities, cash
and /or any other property, then in any such case each share of Series A
Preferred Stock shall automatically be simultaneously exchanged for or converted
into the same stock or securities, cash and/or other property at a rate per
share equal to 1.5 times the rate per share that the Common Stock is being
exchanged or converted.. In the event, the Company shall (i) subdivide the
outstanding Common Stock, or (ii) combine the outstanding Common Stock into a
smaller number of shares by a reverse stock split or otherwise, the amount set
forth in the preceding sentence shall be adjusted at the same rate.

Section 7. REDEMPTION. The shares of Series A Preferred Stock shall not
be redeemable.

Section 8. RANKING. The Series A Preferred Stock may rank junior to any
other series of the Corporation's Preferred Stock as to the payment of dividends
and the distribution of assets as may be determined in the designation of any
such series of Preferred Stock.


-2-
<PAGE>

Section 9. AMENDMENT. At any time when any shares of Series A Preferred
Stock are outstanding, neither the Articles of Incorporation of the Corporation
nor this Certificate of Designation shall be amended or altered in any manner
which would materially alter or change the powers, preferences or special rights
of the Series A Preferred Stock so as to affect them adversely without the
affirmative vote of holders representing a majority of the outstanding shares of
Series A Preferred Stock, voting separately as a class.


IN WITNESS WHEREOF, the undersigned have executed this Certificate and
do affirm the foregoing as true and correct this 05 day of June 2008.



/s/ Birge Bargmann
-----------------------------
Birge Bargmann
President, CEO and CFO



Attest:

/s/ Barbara Kahlke
-------------------------
Barbara Kahlke, Ph.D.
Secretary



-3-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.8
<SEQUENCE>3
<FILENAME>proteo_8k-ex1008.txt
<TEXT>
<PAGE>

EXHIBIT 10.8

PROTEO, INC.

PREFERRED STOCK PURCHASE AGREEMENT
----------------------------------

This Preferred Stock Purchase Agreement ("Agreement") is made this 9th day of
June, 2008 by and between PROTEO, INC., a Nevada corporation with its principal
place of business at 2102 Business Center Drive, Irvine, CA 92612 (the
"Company") and the Purchaser of its stock, FIDEsprit AG, a Swiss corporation
with its principal place of business at Rosengartenstr. 4, CH-8608 Bubikon,
Switzerland ("Purchaser").


RECITALS
--------

A. The Company is engaged in research and development of pharmaceuticals.
The Company now is willing to sell shares of its Series A Preferred
stock, on terms as stated herein.

B. The Company has authorized 300,000,000 shares of common stock and
10,000,000 shares of preferred stock. Currently, 23,879,350 shares of
the Company's common stock are issued and outstanding. As of the date
hereof, no preferred stock has been issued.

C. The Company has created a Series A Preferred Stock of and designated up
to 750,000 shares of the Company's preferred stock which voting powers,
preferences and relative, participating, optional and other special
rights are defined in the Certificate of Designation of Series A
Preferred Stock, a copy of which is attached hereto as Exhibit A.

D. Purchaser and the Company now mutually desire for Purchaser to purchase
600,000 shares of the Company's Series A Preferred Stock at the price
per share determined herein, on the terms and conditions stated herein.

AGREEMENT
---------

In consideration of the mutual promises, representations, warranties and
conditions set forth in this Agreement, the Company and Purchaser agree as
follows.

1. Purchase and Sale of Shares.


-1-
<PAGE>

1.1 SALE OF SHARES. The Company and its Board of Directors has
authorized the issuance and sale of 600,000 shares of Series A
Preferred stock (the "Purchase Shares") pursuant to the terms
of this Agreement, which Purchase Shares in accordance with
the Certificate of Designation, Preferences and Rights of
Series A Preferred Stock (the "Certificate"), a copy of which
is attached hereto as part of this Agreement.

1.2 PRICE PER SHARE. The price per share shall be $6.00 per share,
totaling to $3,600,000 for the Purchase Shares.

In reliance upon Purchaser representations and warranties
contained in Section 4 hereof, and subject to the terms and
conditions set forth herein, the Company hereby agrees to sell
to Purchaser 600,000 shares of the Company's Series A
Preferred Stock.


2. CLOSING: ISSUANCE AND DELIVERY OF SHARES: CONDITIONS.

2.1 CLOSING(S). The closing of the sale under this Agreement (the
"Closing"), shall be held within five (5) working days
following the date of the Agreement ("Closing Date"), at the
offices of the Company or on such earlier date or at such
other place as the Parties may agree.

2.2 PAYMENT OF PURCHASE PRICE. At the Closing, the Purchaser shall
deliver appropriate promissory note for the payment of the
purchase price as determined in paragraph 1.2. payable in four
(4) installments in such amount and at such date as following:
o First installment of $900,000 falling due upon
execution;
o Second installment of $450,000 falling due on or
before August 30, 2008;
o Third installment of $900,000 falling due on or
before November 30, 2008;
o Fourth and final installment of $1,350,000 falling
due on or before March 31, 2009.

Any payment shall be in United States funds by check, cash, by
wire transfer or by other means of payment as shall have been
agreed upon by the Purchaser and the Company prior to payment.


-2-
<PAGE>

2.3 ISSUANCE AND DELIVERY. At the Closing, subject to the terms
and conditions hereof, the Company shall deliver an
irrevocable instruction to the Company's secretary to issue
and deliver to Purchaser appropriate stock certificates,
registered in the name of the Purchaser for the Shares, or his
designee.

3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

The Company hereby represents and warrants to Purchaser as of the date hereof as
follows, and all such representations and warranties shall be true and correct
as of any Closing Date as if then made and shall survive the Closing.

3.1 ORGANIZATION. The Company is a corporation, duly incorporated,
validly existing and in good standing under the laws of
Nevada. The Company has all requisite power and authority to
own or lease its properties and to conduct its business as now
conducted. The Company holds all licenses and permits required
for the conduct of its business as now conducted, which, if
not obtained, would have a material adverse effect on the
business, financial condition or results of operations of the
Company taken as a whole. The Company is qualified as a
foreign corporation and is in good standing in any states
where the conduct of its business or its ownership or leasing
of property requires such qualification, except where the
failure to so qualify would not have a material adverse effect
on the business, financial condition or results of operations
of the Company taken as a whole.

3.2 CAPITALIZATION. The Company is authorized to issue 300,000,000
shares of Common Stock of which 23,879,350 shares are
outstanding at the date of this Agreement. The Company is
authorized to issue 10,000,000 shares of Preferred Stock of
which no shares are outstanding at the date of this Agreement.
All of the issued and outstanding shares of Common Stock on
the Closing Date are or will have been duly authorized,
validly issued and then fully paid and non-assessable. The
Company's right to issue shares of its stock otherwise shall
not be limited by any provision herein.


-3-
<PAGE>

3.3 AUTHORITY. The Company has all requisite power and authority
to enter into this Agreement, and to consummate the
transactions contemplated hereby. The execution and delivery
of this Agreement, and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary
corporate action on the part of the Company, and upon their
execution and delivery by the Company, such document will
constitute a valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms.

3.4 ISSUANCE OF SHARES. The Purchase Shares, when issued pursuant
to the terms of this Agreement, will be duly and validly
authorized and issued, fully paid and non-assessable.

3.5 NO CONFLICT WITH LAW OR DOCUMENTS. The execution, delivery and
consummation of this Agreement, and the transactions
contemplated hereby, will not (a) conflict with any provisions
of the Articles of Incorporation or Bylaws of the Company; (b)
result in any violation of or default or loss of a benefit
under, or permit the acceleration of any obligation under (in
each case, upon the giving of notice, the passage of time, or
both), any mortgage, indenture, lease, agreement or other
instrument, permit, franchise license, judgement, order,
decree, law, ordinance, rule or regulation applicable to the
Company.

3.6 CONSENTS, APPROVALS AND PRIVATE OFFERING. Except for any
filings required under Federal and applicable state securities
laws, all of which shall have been made as of the Closing Date
to the extent required as of such time, no permit, consent,
approval, order or authorization of, or registration,
declaration or filing with, any Federal, state, local or
foreign governmental authority is required to be made or
obtained by the Company in connection with the execution and
delivery of this Agreement, and the consummation of the
transactions contemplated hereby and thereby.

4. REPRESENTATIONS AND WARRANTIES OF PURCHASER.

Purchaser hereby represents, warrants and covenants with the Company as follows:


-4-
<PAGE>

4.1 LEGAL POWER. Purchaser has the requisite power, as
appropriate, and is authorized to enter into this Agreement,
to purchase the Purchase Shares hereunder, and to carry out
and perform his, her or its obligations under the terms of
this Agreement.

4.2 DUE EXECUTION. This Agreement has been duly authorized,
executed and delivered by Purchaser, and, upon due execution
and delivery by the Company, this Agreement will be a valid
and binding agreement of Purchaser.

4.3 INVESTMENT REPRESENTATIONS.

Purchaser represents and agrees that:

4.3.1 Purchaser is acquiring the Purchase Shares for its
own account, not as a nominee or agent, for
investment and not with a view to or for resale in
connection with, any distribution or public offering
thereof within the meaning of the Securities Act of
1933, as amended (the "Act"), except pursuant to an
effective registration statement under the Act;

4.3.2 Purchaser is a professional and an 'accredited
investor,' as that term is defined in Rule 501 (a) of
Regulation D promulgated under the Act. Purchaser has
such knowledge and experience in financial and
business matters that it is fully able to evaluate
the merits and risks of the acquisition of the
Securities, and has conducted their own investigation
into the suitability of its investment, and reviewed
all the information that it considers necessary to
evaluate its acceptance of the Purchase Shares.
Purchaser is able to bear the risks associated with
accepting the Purchase Shares, including the risk of
loss of the entire investment in the Purchase Shares.
Purchaser has received and reviewed any and all
information Purchaser deemed necessary to evaluate
its investment.

4.3.3 Purchaser understands that the Purchase Shares have
not been registered under the Act by reason of a
specific exemption therefrom, and may not be
transferred or resold except pursuant to an effective
registration statement or exemption from registration
and each certificate representing the Purchase Shares
will be endorsed with the following legend:


-5-
<PAGE>

(i) THE SECURITIES REPRESENTED BY THIS CERTIFICATE
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "ACT"). THE SHARES
HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF A CURRENT AND
EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
WITH RESPECT TO SUCH SHARES, OR AN OPINION OF
THE ISSUER'S COUNSEL TO THE EFFECT THAT
REGISTRATION IS NOT REQUIRED UNDER THE ACT; and

(ii) Any legend required to be placed thereon by
applicable federal or state securities laws.

4.3.4 Purchaser has read, and understands and agrees to the
Certificate of Designation for the Series A Preferred
Stock.

5. TERM AND TERMINATION

5.1 TERM. This Agreement shall expire upon total payment of the
Purchase Price and issuance of 600,000 shares of Preferred
Stock Class A to Purchaser.

5.2. The Company may cancel this agreement upon

(i) any misrepresentation or omission of or on behalf of
the Purchaser made to the Company in connection with
this Agreement;
(ii) adjudication of bankruptcy, or filing of a petition
under any bankruptcy or debtor's relief law by or
against the Purchaser, or failure of the Purchaser to
generally pay its debts as they become due;
(iii) failure of the Purchaser to pay any installment
hereunder when due, which shall continue for ten (10)
days;
(iv) termination of the Promissory Note given by the
Purchaser to the Company in accordance with paragraph
2.2;


-6-
<PAGE>

6. MISCELLANEOUS.

6.1 GOVERNING LAW . This Agreement shall be governed by and
construed under the laws of the State of California.

6.2 SUCCESSORS AND ASSIGNS. Except as otherwise expressly provided
herein, the provisions hereof shall inure to the benefit of,
and are binding upon, the successors, assigns, heirs,
executors, and administrators of the parties hereto.

6.3 ENTIRE AGREEMENT. This Agreement and the other documents
delivered pursuant hereto, constitute the full and entire
understanding and agreement among the parties with regard to
the subjects hereof and no party shall be liable or bound to
any other party in any manner by a representations,
warranties, covenants, or agreements except as specifically
set forth herein or therein. Nothing in this Agreement,
express or implied, is intended to confer upon any party,
other than the parties hereto and their respective successors
and assigns, any rights, remedies, obligations, or liabilities
under or by reason of this Agreement, except as expressly
provided herein.

6.4 SEVERABILITY. In case any provision of this Agreement shall be
invalid, illegal, or unenforceable, it shall to the extent
practicable, be modified so as to make it valid, legal and
enforceable and to retain as nearly as practicable the intent
of the parties and the validity, legality, and enforceability
of the remaining provisions shall not in any way be affected
or impaired thereby.

6.5 AMENDMENT AND WAIVER. Except as otherwise provided herein, any
term of this Agreement may be amended, and the observance of
any term of this Agreement may be waived (either generally or
in a particular instance, either retroactively or
prospectively, and either for a specified period of time or
indefinitely), with the written consent of the Company and
Purchaser. Any amendment or waiver effected in accordance with
this Section shall be binding upon each future holder of any
security purchased under this Agreement (including securities
into which such securities have been converted) and the
Company.


-7-
<PAGE>

6.6 NOTICES. All notices and other communications required or
permitted hereunder shall be in writing and shall be effective
when delivered personally, or sent by telex or telecopier
(with receipt confirmed), provided that a copy is mailed by
registered mail, return receipt requested, or when received by
the addressee, if sent by Express Mail, Federal Express or
other express delivery service (receipt request) in each case
to the appropriate address set forth below.

If to the Company: PROTEO, INC.
Birge Bargmann
Proteo Biotech AG
Am Kiel-Kanal 44
D-24106 Kiel


If to Purchaser: FID Esprit AG
Joerg Alte
Rosengartenstr. 4
CH-8608 Bubikon


6.7 TITLES AND SUBTITLES. The titles of paragraphs and
subparagraphs of this Agreement are for convenience of
reference only and are not be not considered in construing
this Agreement.

6.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but
all of which together shall constitute one instrument.


IN WITNESS WHEREOF, the parties have executed this Agreement the date first
above written.


"COMPANY"
PROTEO, INC. a Nevada Corporation


By: /S/ BIRGE BARGMANN
-----------------------------
CEO: Birge Bargmann


"PURCHASER"
FIDEsprit AG


By: /S/ JOERG ALTE
-----------------------------
Managing Director: Joerg Alte


-8-
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.9
<SEQUENCE>4
<FILENAME>proteo_8k-ex1009.txt
<TEXT>
<PAGE>

EXHIBIT 10.9

PROMISSORY NOTE

US $3,600,000.00

BUBIKON, SWITZERLAND

JUNE 9, 2008

FOR VALUED RECEIVED, the undersigned, a corporation duly organized
under the laws of Switzerland, with its principal place of business at
Rosengartenstr. 4, CH-8608 Bubikon, Switzerland, (the "Maker"), unconditionally
promises to pay to the order of Proteo, Inc., a Nevada corporation, (the
"Holder"), at its principal place of business at 2102 Business Center Drive,
Suite 130, Irvine, CA 92612 or at such other place as may be designated in
writing by the Holder, the principal sum of $3,600,000.00, with no interest.

Principal shall be payable in four installments as follows:

o First installment of $900,000 falling due upon execution;
o Second installment of $450,000 falling due on or before August
30, 2008;
o Third installment of $900,000 falling due on or before
November 30, 2008;
o Fourth and final installment of $1,350,000 falling due on or
before March 31, 2009

All payments under this Note shall be in lawful money of the United
States.

In no event shall the interest and other charges in the nature of
interest hereunder, if any, exceed the maximum amount of interest permitted by
law. Any amount collected in excess of the maximum legal rate shall be applied
to reduce the principal balance.

All payments under this Note shall be applied first to the late fees
and costs, if any, and second to interest then due, if any, and to balance the
principal.

The Maker agrees to pay to the holder all costs, expenses and
reasonable attorney's fees incurred in the collection of sums due hereunder,
whether through legal proceedings or otherwise, to the extent permitted by law.

This Note may be prepaid at any time, in whole or in part, without
penalty or premium.

If any installment hereunder is not paid within ten (10) days of the
date the same is due, the Maker shall pay to the holder a late charge equal to
three percent (3%) of the overdue payment as liquidated damages, and not as a
penalty.

After the maturity of this Note, or upon any default, this Note shall
bear interest at the rate of ten percent (10%) per annum, at the option of the
Holder.


-1-
<PAGE>

At the option of the Holder, this entire Note shall become immediately
due and payable, without demand and notice, upon the occurrence of any one of
the following events:

(a) failure of the Maker to pay any installment hereunder when
due, which shall continue for ten (10) days;
(b) any misrepresentation or omission of or on behalf of Maker
made to the holder in connection with this loan;
(c) insolvency or failure of the Maker or any guarantor to
generally pay its debts as they become due;
(d) assignment for the benefit of creditors of, or appointment of
a receiver or other officer for, all or any part of Maker's or
any guarantor's property;
(e) adjudication of bankruptcy, or filing of a petition under any
bankruptcy or debtor's relief law by or against Maker or any
guarantor;
(f) death of Maker or any guarantor;
(g) sale or transfer, whether voluntary or involuntary, of all or
any interest in the property which is security for this Note;
or
(h) default under any mortgage, trust deed, security agreement or
other instrument securing this note, if any.

The Maker expressly waives presentment, demand, notice,
protest, and all other demands and notices in connection with this
Note. No renewal or extension of this Note, or release of any
collateral or party liable hereunder, will release the liability of the
Maker.

Failure of the Holder to exercise any right or option shall
not constitute a waiver, nor shall it be a bar to the exercise of any
right or any option at nay future time.

If any provision of this Note shall be invalid or
unenforceable, the remaining provisions shall remain in full force and
effect.

This Note shall be governed by the laws of the state of
California.


IN WHITNESS WHEREOF, this Promissory Note is executed under
seal on the day and year first above written.

Executed: FIDEsprit AG:



/s/ Joerg Alte
-----------------------
Joerg Alte
Managing Director


-2-
<PAGE>

GUARANTY

FOR VALUE RECEIVED, the undersigned Axel J. Kutscher, living at Oetwilerstr. 29,
CH-8634 Hombrechtikon, Switzerland, as primary obligor, hereby unconditionally
guarantees the prompt payment of principal and interest when due and all other
obligations contained in the Promissory Note as of June 9, 2008 given by
FIDESprit AG to Proteo, Inc. The undersigned accepts and agrees to be bound by
all terms, conditions and waivers contained in the Note. The undersigned waives
notice of acceptance of this guarantee and suretyship defenses of all kinds. The
Holder may extend the time of payment, release any collateral or party reliable
on the Note, or grant any indulgence to any party without releasing the
liability of the undersigned. The Holder need not proceed against Maker or any
other party or collateral prior to proceeding against the undersigned. The
undersigned agrees to pay all costs, expenses and attorney's fees incurred by
the Holder in enforcing the Note and this Guaranty.


Dated June 9, 2008.


Executed: Guarantor




/s/ Axel J. Kutscher
------------------------
Axel J. Kutscher

[kaubeuhut]

Antwort auf Beitrag Nr.: 34.285.101 von mylastlovestory am 11.06.08 20:56:30

Alles tutto completo. Auch bezueglich "ajk".

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beleidigung

[kaubeuhut]

Medizinische Biotechnologie in Deutschland 2008 – Wirtschaftsdaten und Innovationskraft

Die Boston Consulting Group (BCG) hat für VFA Bio den Bericht „Medizinische Biotechnologie in Deutschland 2008 – Wirtschaftsdaten und Innovationskraft“ erstellt. Als einziger erfasst dieser jährlich erscheinende Bericht alle Aktivitäten der medizinischen Biotechnologie in Deutschland – in Startups wie in Großunternehmen.

Die Studie belegt eindrucksvoll, dass die Bedeutung von Biopharmazeutika 2007 in Deutschland weiter zugenommen hat. Dazu haben 97 kleine und mittelständische Biotech-Unternehmen, mittelständische und große Arzneimittelhersteller sowie deutsche Tochtergesellschaften bedeutender internationaler Biotech-Firmen beigetragen, die Produkte auf dem Markt haben und/oder eine eigene, innovative Produktpipeline besitzen.

• Der Umsatz von Biopharmazeutika in Deutschland konnte 2007 im Vergleich zum Vorjahr um 28 % auf € 4 Mrd. gesteigert werden und umfasst jetzt 15 % des Gesamtpharmamarktes.
• Ein Viertel aller im Jahr 2007 für Deutschland zugelassenen Medikamente mit neuen Wirkstoffen sind Biopharmazeutika.
• Derzeit befinden sich über 350 Biopharmazeutika in der klinischen Prüfung; monoklonale Antikörper bilden dabei mit fast 130 Projekten den Schwerpunkt. Gegenüber 2006 ist die Entwicklungspipeline um 10 % gewachsen; bei Biopharmazeutika in Phase III ist sogar ein Anstieg um 46 % zu verzeichnen.
• Die Zahl der Arbeitsplätze in Unternehmen der medizinischen Biotechnologie in Deutschland hat sich im Jahr 2007 um mehr als 4.000 (+14 %) erhöht.

Biopharmazeutika haben bereits große Erfolge bei der Behandlung schwerer Krankheiten erzielt und sind schon jetzt zur Prävention und Therapie einer Reihe von Krankheiten unverzichtbar.

In vielen Bereichen herrscht jedoch immer noch ein hoher "unmet medical need", also ein Bedarf an innovativen Therapien. Hier können zukünftige Biopharmazeutika den betroffenen Patienten neue therapeutische Optionen bieten. Als Beispiele werden in dieser Studie folgende Entwicklungsprojekte vorgestellt, die in den nächsten fünf Jahren eine Marktzulassung erhalten könnten:

• Behandlung von Alzheimer
• Behandlung von Osteoporose
• Knochenregeneration für die dentale Implantologie
• Therapie von Psoriasis und Rheumatoider Arthritis
• Behandlung der seltenen Krankheiten Muckle-Wells-Syndrom, idiopathische thrombozytopenische Purpura (ITP) und chronische lymphatische Leukämie (CLL)
• Entwöhnungstherapie des Rauchens

Bei der Entwicklung und dem Einsatz innovativer Biopharmazeutika gibt es jedoch immer noch Optimierungsbedarf. Um eine bessere Versorgung der Patienten zu gewährleisten, ist eine Anpassung der Rahmenbedingungen erforderlich mit dem Ziel, die Entwicklung von Biopharmazeutika zu beschleunigen und den Patienten den Zugang zu vorhandenen Biopharmazeutika zu erleichtern bzw. zu gewährleisten. Hierzu können Politik, ärztliche Fachgesellschaften, Industrie und Krankenkassen wichtige Beiträge leisten.

Download der Studie unter:
http://www.vfa.de/bcg-report-2008.pdf

[Zwischentoene]

moin

ich kenne diese Aktie nicht,

hab eben eine Telefonspammerin dran gehabt, die mir unbedingt Unterlagen über das Unternehmen schicken will, hab sie nach der WKN gefragt, ihre Antwort:

"Was ist das denn"

Dann hat sie aufgelegt...

Der Chart hats nötig, ohne massive Pusherei wird sie in kurzer Zeit einbrechen.

Falls ich mich hier fundamental irre: viel Glück den Investierten

[kaubeuhut]

Antwort auf Beitrag Nr.: 34.469.432 von Zwischentoene am 09.07.08 12:51:58

Du hast das schon richtig erkannt: Du irrst fundamental. Von der Dame hast Du während deines Mittagsschlafes geträumt. War Sie blond, braun, schwarz oder rot?

[kaubeuhut]

Proteo, Inc.:
Proteo Inc. zusätzlich an der Börse Berlin gehandelt


Irvine, CA, 24. Juni 2008 – Proteo, Inc. (OTCBB: PTEO) gibt bekannt, dass die Aktien des Unternehmens in Deutschland zusätzlich zum Frankfurter Freiverkehr jetzt auch an der Börse Berlin im Freiverkehrssegment unter der Wertpapierkennung (WKN) 925981 gehandelt werden.

Über Proteo

Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte für rekombinantes menschliches Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung (www.proteo.us)

[Maettel]

Antwort auf Beitrag Nr.: 34.469.432 von Zwischentoene am 09.07.08 12:51:58

Ist da die Holländische Firma wieder am Werk
Oder ist es diesmal die Schweizerische
Vieleicht ist Euro-American wieder auferstanden..

[Zwischentoene]

Antwort auf Beitrag Nr.: 34.471.876 von Maettel am 09.07.08 16:45:19

keine Ahnung, war ein Callcenter mit schlecht informierter Telefonistin, aber ohne Schweizer Akzent die Dame.

[Zwischentoene]

so, thread durchgelesen, Spammer identifiziert, bye.

[kaubeuhut]

Antwort auf Beitrag Nr.: 34.473.607 von Zwischentoene am 09.07.08 19:32:03

Alles klar. Schlaf gut.

[mfs260151]

Antwort auf Beitrag Nr.: 34.471.876 von Maettel am 09.07.08 16:45:19

ersetze "oder", schreibe "und"

[kaubeuhut]

Antwort auf Beitrag Nr.: 34.501.553 von mfs260151 am 14.07.08 13:58:22

Ersetze "mfs260151" und rücke vor auf "Los".

[kaubeuhut]

Nach neuesten Erhebungen des vom BMBF geförderten Kompetenznetzwerkes Sepsis
(SepNet) erkranken in Deutschland pro Jahr 75.000 Einwohner (110 von 100.000) an einer
schweren Sepsis bzw. septischem Schock und 79.000 (116 von 100.000) an einer Sepsis. Mit
ca. 60.000 Todesfällen stellen septische Erkrankungen die dritthäufigste Todesursache nach
dem akuten Myokardinfarkt dar. Die direkten anteiligen Kosten, die allein für die
intensivmedizinische Behandlung von Patienten mit schwerer Sepsis anfallen, liegen bei ca.
1,77 Milliarden Euro. Ca. 30% des Budgets für Intensivmedizin werden damit in die
Behandlung der Sepsis investiert. Im Kontrast hierzu, existierten bisher jedoch keine deutsche
Leitlinien zur Diagnose und Therapie der schweren Sepsis. Auf Initiative der Deutschen
Sepsis-Gesellschaft wurden daher in Anlehnung an die internationalen Empfehlungen des
International Sepsis Forum (ISF) und der Surviving Sepsis Campaign (SSC) Leitlinien
erarbeitet, welche die Versorgungsstrukturen im deutschen Gesundheitssystem
berücksichtigen. Folgende Leitlinienthemen wurden als vorrangig eingestuft: a) Diagnose, b)
Prävention, c) kausale Therapie, d) supportive Therapie, e) adjunktive Therapie. Die
Leitlinien sind nach einem sorgfältig geplanten und streng eingehaltenen Prozess nach den
Vorgaben der Arbeitsgemeinschaft der Wissenschaftlichen Medizinischen Fachgesellschaften
(AWMF) entstanden.

[kaubeuhut]

Eine Verbrennung (Combustio, Brandverletzung, Verbrennungstrauma) ist in der Medizin eine Schädigung durch übermäßige Hitzeeinwirkung. Diese können durch heiße Flüssigkeiten (Verbrühung), Dämpfe oder Gase, Flammeneinwirkung und Explosionen, starke Sonneneinstrahlung (Sonnenbrand), elektrischen Strom oder Reibung entstehen. Bei der Verbrennung werden primär Haut und Schleimhaut geschädigt. Davon abzugrenzen ist die Kälteverbrennung, eine Sonderform der Erfrierung die lokal mit der Verbrennung vergleichbare Schäden verursacht.

Eine Verbrennungsverletzung, die ein bestimmtes Maß überschreitet, hat für den betroffenen Organismus nicht nur örtlich begrenzte Konsequenzen. In Abhängigkeit vom Ausmaß der unmittelbaren Schädigung kann es sekundär zum Kreislaufschock und entzündlichen Allgemeinreaktionen des Körpers (SIRS, Sepsis) kommen, die im schlimmsten Fall mit Funktionsverlust anfänglich unbeteiligter Organe (z. B. akutes Nierenversagen) verbunden sind. Die Gesamtheit dieser systemischen Störungen bezeichnet man als Verbrennungskrankheit.

[Held2006]

warum stürzt proteo ab?

bis auf 50 Cent ?

oder noch tiefer???????

[kaubeuhut]

Pressemitteilung





Proteo, Inc. / Proteo Biotech AG:


Proteo erhält Zulassung für klinische Phase-II-Studie



Irvine, CA - Kiel, 02. September 2008 – Proteo, Inc. (OTCBB: PTEO; WKN: 925981) und ihre hundertprozentige Tochtergesellschaft Proteo Biotech AG gaben heute bekannt, dass das Bundesinstitut für Arzneimittel und Medizinprodukte (BfArM) die Genehmigung zur Durchführung einer klinischen Phase II-Studie mit dem Arzneimittelkandidaten Elafin erteilt hat.

Es handelt sich um eine randomisierte, verblindete und Placebo kontrollierte Phase II-Studie zur Untersuchung des Einflusses von Elafin auf das Cytokin-Profil nach schweren operativen Eingriffen. Die Studie wird am Universitätsklinikum Schleswig-Holstein, Campus Kiel, in der Klinik für Allgemeine Chirurgie und Thoraxchirurgie durchgeführt. Der Beginn der Patientenrekrutierung ist für das 4. Quartal 2008 geplant, erste Daten werden voraussichtlich innerhalb des ersten Halbjahres 2009 vorliegen. Ziel der Studie ist es, die therapeutische Wirksamkeit des Arzneimittelkandidaten zu untersuchen.

"Mit dem Start dieser klinischen Studie nehmen wir einen wichtigen Meilenstein auf dem Weg zur Erschließung des Marktpotentials unseres Leadproduktes", kommentierte Birge Bargmann, Vorstand der Proteo Biotech AG.



Über Elafin

Die Prüfsubstanz Elafin ist humanidentisch und hemmt Enzyme, die durch die Bildung bestimmter im Blut messbarer körpereigener Botenstoffe (Cytokine) Entzündungsreaktionen verursachen können. Diese Cytokine werden nach schweren Operationen verstärkt vom Körper gebildet und für Entzündungsreaktionen, die alle wesentlichen Organe betreffen können, verantwortlich gemacht. Von der vorgesehenen klinischen Prüfung wird erwartet, dass Elafin die Bildung dieser Cytokine abschwächt und damit einen positiven Einfluss auf die Entzündungsreaktionen nehmen wird. In einer klinischen Phase I Studie konnte die sehr gute Verträglichkeit von Elafin bereits gezeigt werden. Die Proteo Biotech AG hat auf Empfehlung der europäischen Arzneimittelagentur EMEA von der EU-Kommission den Orphan-Drug-Status für ihren klinischen Wirkstoffkandidaten Elafin für das Anwendungsgebiet "Behandlung der pulmonalen arteriellen Hypertonie (PAH) und der chronisch thromboembolischen pulmonalen Hypertonie" erhalten.

Über Proteo

Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte für rekombinantes menschliches Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung (www.proteo.de)


Zukunftsgerichtete Aussagen

Diese Presseinformation enthält bestimmte in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieser Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technischen Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen Pläne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-KSB und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.



Kontakt


Dr. Barbara Kahlke
Proteo Biotech AG
Am-Kiel-Kanal 44
D - 24106 Kiel

Email: [e-mail]
Telefon [phone]
Fax [phone]

[kaubeuhut]

Antwort auf Beitrag Nr.: 34.924.533 von Held2006 am 31.08.08 08:49:10

Vielleicht solltest Du deinen Monitor mal umd 180° drehen.

[Held2006]

gute idee

[kaubeuhut]

Klinische Entwicklung
Eine Phase I-Studie (»Single-ascending-dose, double-blind, randomized, placebo-controlled trial to evaluate the tolerability, safety, pharmacokinetics and pharmacodynamics of Elafin in healthy male subjects«) mit dem neu entwickelten Wirkstoff Elafin wurde erfolgreich abgeschlossen. Die Studie wurde mit 32 gesunden Probanden in mehreren Dosierungen durchgeführt, um die Verträglicheit, Sicherheit, Pharmakokinetik und Pharmakodynamik von Elafin zu untersuchen. Die intravenöse Gabe wurde in allen Dosierungen sehr gut vertragen.

Die Proteo Biotech AG hat auf Empfehlung der europäischen Arzneimittelagentur EMEA von der EU-Kommission den Orphan-Drug-Status für ihren klinischen Wirkstoffkandidaten Elafin für das »Behandlung der pulmonalen arteriellen Hypertonie (PAH) und der chronisch thromboembolischen pulmonalen Hypertonie« erhalten. Dieser sichert dem Unternehmen das exklusive Vermarktungsrecht für diese Indikation innerhalb der europäischen Union für die Dauer von bis zu zehn Jahren nach Erhalt der Zulassung.

Eine Phase II-Studie (»Placebo-controlled Randomized Trial to evaluate the Effect of Elafin on Cytokine Profiles after Major Surgery – Phase II«) wurde durch das Bundesamt für Arzneimittel und Medizinprodukte (BfArM) genehmigt. Die Studie wird am Universitätsklinikum Schleswig-Holstein, Campus Kiel, in der Klinik für Allgemeine Chirurgie und Thoraxchirurgie durchgeführt.

[derhollaender]

Antwort auf Beitrag Nr.: 35.508.002 von kaubeuhut am 10.10.08 04:36:37

Datum? Quelle?

Was ist neu in die Nachricht, Kaubeuhut?

Schönes Wochenende

Holländer

[kaubeuhut]

Antwort auf Beitrag Nr.: 35.520.600 von derhollaender am 10.10.08 18:11:38

Das ist neu:


Proteo, Inc. / Proteo Biotech AG:


Start der klinischen Phase-II-Studie mit Elafin



Irvine, CA - Kiel, 17. November 2008 – Proteo, Inc. (OTCBB: PTEO; WKN: 925981) und ihre hundertprozentige Tochtergesellschaft Proteo Biotech AG gaben heute den Beginn der Patientenrekrutierung für eine klinische Phase II-Studie bekannt.

In der randomisierten und Placebo-kontrollierten Phase II-Studie wird die Wirkung von Elafin auf Entzündungsparameter bei Patienten untersucht, die sich einer Ösophagektomie bei Ösophaguskarzinom unterziehen. Die Studie wird unter der Leitung von Prof. Fred Fändrich, Universitätsklinik für Allgemeine Chirurgie und Thoraxchirurgie in Kiel durchgeführt: »Die Entfernung der Speiseröhre bei Speiseröhrenkrebs ist eine sehr schwere Operation, die nicht selten längere Intensivstationsaufenthalte erfordert. Es gibt zurzeit kein Arzneimittel, mit dem die hierfür verantwortlichen entzündlichen Reaktionen des Körpers auf die Operation deutlich vermindert werden können. Ich freue mich daher besonders, dass wir die Gelegenheit haben, die weltweit erste Studie zur therapeutischen Wirksamkeit des Arzneimittelkandidaten Elafin in unserer Klinik durchführen zu können«.

»Das Universitätsklinikum Schleswig-Holstein, als zweitgrößtes Universitätsklinikum Deutschlands, bietet eine ideale Infrastruktur zur Durchführung einer solchen Studie. Wir sind überzeugt, dass die Ergebnisse dieser Studie die Bestätigung der Wirkungsweise (Proof-of-concept) liefern und unser vielschichtiges Entwicklungsprogramm für Elafin weiter vorantreiben werden.« erklärt Birge Bargmann, CEO von Proteo.


Prof. Oliver Wiedow, Entdecker des Elafin und Gründer von Proteo zieht ein positives Resümee: »Mit dem Start der Studie setzen wir auch neue Meilensteine in der Biotechnologie am Standort Kiel. Durch die enge Zusammenarbeit vieler engagierter Mitarbeiter des Universitätsklinikums, der Landeswirtschaftsförderung und der Proteo Biotech AG ist es möglich geworden, einen in der Universitätshautklinik Kiel entdeckten Arzneimittelwirkstoff in Schleswig-Holstein weiterzuentwickeln und diesen erstmals Patienten im Rahmen einer Studie zur Verfügung stellen zu können.«





Über Elafin


Die Prüfsubstanz Elafin ist humanidentisch und hemmt Enzyme, die durch die Bildung bestimmter im Blut messbarer körpereigener Botenstoffe (Cytokine) Entzündungsreaktionen verursachen können. Diese Cytokine werden nach schweren Operationen verstärkt vom Körper gebildet und für Entzündungsreaktionen, die alle wesentlichen Organe betreffen können, verantwortlich gemacht. Von der vorgesehenen klinischen Prüfung wird erwartet, dass Elafin die Bildung dieser Cytokine abschwächt und damit einen positiven Einfluss auf die Entzündungsreaktionen nehmen wird. In einer klinischen Phase I Studie konnte die sehr gute Verträglichkeit von Elafin bereits gezeigt werden. Die Proteo Biotech AG hat auf Empfehlung der europäischen Arzneimittelagentur EMEA von der EU-Kommission den Orphan-Drug-Status für ihren klinischen Wirkstoffkandidaten Elafin für das Anwendungsgebiet »Behandlung der pulmonalen arteriellen Hypertonie (PAH) und der chronisch thromboembolischen pulmonalen Hypertonie« erhalten.


Über Proteo


Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte für rekombinantes menschliches Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung (www.proteo.de)

[sacha1978]

Hallo zusammen

...und warum fällt der Kurs so extrem?? wohl kaum wegen der Nachricht
"Start der klinischen Phase-II-Studie mit Elafin"


Greez

[derhollaender]

Antwort auf Beitrag Nr.: 35.981.663 von sacha1978 am 17.11.08 21:11:13

Eine alte Boersenweisheit ist "sell on good news"

Weil einer verkauft hat, ist der Kurs gesunken

Es gibt wahrscheinlich einer der genug Aktien hat und der weiss auch noch frueher als wir das gute Nachrichten kommen.
Nicht desto trotz, mittel- oder langfristig sieht es gut aus.

[Maettel]

Antwort auf Beitrag Nr.: 35.989.459 von derhollaender am 18.11.08 12:56:17

Ja für diesen EINEN siehts gut aus....
Alle andern werden Mühe haben Ihre Aktien zu verkaufen...

[kaubeuhut]

Antwort auf Beitrag Nr.: 35.989.459 von derhollaender am 18.11.08 12:56:17

"Sell on good news" scheint jemand zu wörtlich genommen zu haben. O.K. Es ist sein Problem.

[sacha1978]

1,15 (+0,400) +53,33%

weiss jemand den grund für diesen Anstieg?...hab nix gefunden..

Greez

[kaubeuhut]

Proteo, Inc./Proteo Biotech AG – Minapharm/Rhein Minapharm Biogenetics SAE:
Zulassung für klinische Phase-II-Studie mit Elafin bei Nierentransplantationen


Irvine, CA – Kiel – Kairo, 10. Dezember 2008 – Die Proteo, Inc. (OTCBB: PTEO; Frankfurt Freiverkehr: WKN: 925981) mit ihrer 100-prozentigen Tochtergesellschaft Proteo Biotech AG und Minapharm Pharmaceuticals SAE (Cairo and Alexandria Stock Exchange: MIPH) mit ihrer Tochtergesellschaft Rhein Minapharm Biogenetics SAE gaben heute bekannt, dass die zuständige Behörde in Kairo der Durchführung einer Klinischen Phase II Studie zur Wirksamkeit von Elafin bei nierentransplantierten Patienten zugestimmt hat.

Es handelt sich um eine randomisierte, doppelt verblindete und Placebo-kontrollierte Phase II-Studie zur Verhinderung der akuten und chronischen Allograft-Nephropathie, die an der Universität Kairo durchgeführt wird. Ziel der Studie ist es, die Wirksamkeit von Elafin auf die entzündlichen Prozesse zu untersuchen, die nach einer Transplantation häufig auftreten und sowohl zur Organabstoßung als auch der vorzeitigen Alterung des transplantierten Organs führen können.

Eine weitere klinische Studie der Phase II bei Patienten, die sich einer Ösophagektomie bei Ösophaguskarzinom unterziehen, wurde bereits im November 2008 am Universitätsklinikum Schleswig-Holstein, Campus Kiel, in der Klinik für Allgemeine Chirurgie und Thoraxchirurgie gestartet.

In 2007 schlossen Proteo und Minapharm eine Lizenzvereinbarung zur klinischen Entwicklung, Herstellung und Vermarktung für Elafin in Ägypten, im mittleren Osten und Afrika. Proteo erhält eine Vorauszahlung, Meilenstein-abhängige Zahlungen sowie eine angemessene Umsatzbeteiligung. Weiterhin wird Minapharm die Finanzierung der Klinischen Entwicklung im Lizenzgebiet übernehmen.

Über Elafin

Das Prüfarzneimittel Elafin ist humanidentisch und hemmt Enzyme, die durch die Bildung bestimmter im Blut messbarer körpereigener Botenstoffe (Cytokine) Entzündungsreaktionen verursachen können. Solche Entzündungsreaktionen werden bei Nierentransplantationen für akute Abstoßungsreaktionen und langfristige Schäden am transplantierten Organ verantwortlich gemacht.

Die entzündungshemmenden Eigenschaften von Elafin während und in den ersten Tagen nach der Transplantation sollen sicherstellen, dass die Niere ihre normale Tätigkeit möglichst schnell und problemlos aufnehmen kann, ohne durch die Einwirkungen körpereigener Entzündungsmechanismen chronische Schädigungen zu erleiden.

Über Proteo

Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Proteo hält u.a. die Herstellungs- und Verwertungsrechte für rekombinantes menschliches Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung (www.proteo.de).

Über Minapharm

Minapharm mit Sitz in Kairo ist eines der führenden Pharmaunternehmen in Ägypten und im Mittleren Osten. Das Unternehmen ist spezialisiert auf die Herstellung und Vermarktung innovativer Arzneimittel. Die Tochtergesellschaft Rhein-Minapharm-Biogenetics ist im Bereich Forschung, Entwicklung und Herstellung biotechnologischer Arzneimittel mit den Schwerpunkten entzündliche Lebererkrankungen, Thrombose und Hämostase tätig. Das Unternehmen verfügt über eigene Herstellungsanlagen und hat bereits drei biotechnologische Arzneimittel auf dem Markt sowie weitere in der Entwicklung. Minapharm realisiert kurze Produktentwicklungszeiten, ohne dabei ethische Maßstäbe und Sicherheitsstandards zu vernachlässigen. Durch die Verbindung von Fachkompetenz, globalen strategischen Allianzen und Marktführerschaft im Bereich biotechnologischer Arzneimittel trägt Minapharm maßgeblich zur Verbesserung der Lebensqualität in der Region bei. Minapharm beschäftigt über 700 Mitarbeiter und ist an den Börsen in Kairo und Alexandria gelistet (www.minapharm.com).


Zukunftsgerichtete Aussagen

Diese Presseinformation enthält bestimmte in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieser Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technischen Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen Pläne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-KSB und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.

Kontakt


Barbara Kahlke, PhD
Proteo Biotech AG
Am Kiel-Kanal 44
D-24106 Kiel
E-Mail: [e-mail]
Telefon: [phone]
Fax: [phone]

[selino]

Bei diesen News müßte der Aktienkurs doch längst wieder über einem Euro sein. Anscheinend machen die Auswirkungen der Finanzkrise auch vor der FID Esprit nicht halt. Wie lange können die Schweizer das Schiff (Proteo) noch auf dem Wasser halten?
PS. Bin gespannt, wie lange mein Beitrag diesmal im Thread bleibt. Mein Beitrag im Mai 2008 wurde inklusive des vorherigen Beitrags, auf das sich meine Antwort bezog, gelöscht. Ist schon schlimm, wenn man die Wahrheit nicht vertragen kann. Nicht wahr, liebe Schweizer?
Selino

[mylastlovestory]

Antwort auf Beitrag Nr.: 36.396.422 von selino am 17.01.09 19:52:48

So nun sind fünf Tage vergangen und Ihr Kommentar ist noch zu sehen. Man könnte das als Erfolg titulieren. Was ist mit dem Preis? Ich leite daraus ab, dass Sie nur darauf warten um zu verkaufen. Wir sind doch nicht bei "Media Markt" gell? Probleme mit Geld? Hat die Finanzkrise auch Sie erreicht? Machen Sie doch selber den Kurs und kaufen erst dazu, vielleicht löst das eine positive Kettenreaktion aus, dann steigt dieser Preis. Ich wette eine Menge Beobachter lesen hier nur was geschrieben wird, warum meldet sich sonst keiner? Habt Ihr eine Meinung ja oder nein? wollt Ihr nur verkaufen oder auch kaufen? Um Vertrauen in Proteo zu zeigen sollten auch Käufer sich melden. Schließlich ist Proteo oder die Börse kein Wunschkonzert.

[kaubeuhut]

Antwort auf Beitrag Nr.: 36.416.845 von mylastlovestory am 21.01.09 10:19:01

???

[kaubeuhut]

SCHEDULE 14C
(RULE 14C-101)
INFORMATION REQUIRED IN INFORMATION STATEMENT
SCHEDULE 14C INFORMATION
INFORMATION STATEMENT
PURSUANT TO SECTION 14(C) OF THE SECURITIES EXCHANGE ACT OF 1934

(AMENDMENT NO. )

Check the appropriate box:

[ ] Preliminary Information Statement [ ] Confidential, for Use of the
Commission Only (as permitted
by Rule 14c-5(d)(2))
[X] Definitive Information Statement

PROTEO, INC.
(Name of Registrant As Specified in Charter)

Payment of Filing Fee (Check the appropriate box):

[X] No Fee required.

[ ] Fee computed on table below per Exchange Act Rules 14c-5(g) and 0-11.

(1) Title of each class of securities to which transaction applies:

(2) Aggregate number of securities to which transaction applies:

(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-1 (set forth the amount on which
the filing fee is calculated and state how it was determined):

(4) Proposed maximum aggregate value of transaction:

(5) Total fee paid:

[ ] Fee paid previously with preliminary materials

[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the Form or Schedule and the date of its filing.

(1) Amount Previously Paid:

(2) Form, Schedule or Registration Statement No.:

(3) Filing Party:

(4) Date Filed:

Proteo, Inc.
2102 Business Center Drive
Irvine, California 92612

<PAGE>

INFORMATION STATEMENT

WE ARE NOT ASKING YOU FOR A PROXY AND
YOU ARE REQUESTED NOT TO SEND US A PROXY

GENERAL

This Information Statement is being furnished to the stockholders of
Proteo, Inc. a Nevada corporation (the "Company"), in lieu of an Annual Meeting
in connection with the following proposals (the "Proposals"):

1. To elect four (4) members to the Company' s Board of Directors to
hold office until the Company's annual meeting of stockholders to
be held in 2009 and until their successors are duly elected and
qualified; and

2. To ratify the appointment of Squar, Milner, Peterson, Miranda &
Williamson, LLP. as independent auditors of the Company for the
fiscal year ending December 31, 2008.

This Information Statement is being sent in lieu of an annual meeting.
The Company has adopted the Proposals by the written consent of stockholders
holding a majority of the voting power of the Company.

The Company's Board of Directors approved and recommended, pursuant to
a written consent dated December 18, 2008, that the Proposals be accepted. The
Company's stockholders holding a majority of the voting power of the Company
approved the Proposals, pursuant to a written consent dated December 23, 2008.
If the Proposals were not adopted by written consent, it would have been
required to be considered by the Company's stockholders at a special or annual
stockholders' meeting convened for the specific purpose of approving the
Proposals.

The elimination of the need for a special or annual meeting of
stockholders to ratify or approve the Proposals is authorized by Section
78.320(2) of the Nevada Revised Statutes (the "NRS"), which provides that the
written consent of stockholders holding at least a majority of the voting power
may be substituted for such a special or annual meeting. In order to eliminate
the costs and management time involved in holding a special or annual meeting
and in order to effect or ratify the Proposals as early as possible in order to
accomplish the purposes of the Company as hereafter described, the Board of
Directors of the Company voted to utilize the written consent of stockholders
holding a majority of the voting power of the Company.

Professor Oliver Wiedow, M.D. beneficially owns 10,680,000 shares of
common stock and Ms. Birge Bargmann beneficially owns 2,000,000 shares of common
stock, such that collectively they own 12,680,000 shares of common stock
representing approximately 53.1% of the voting power of the Company. Professor
Wiedow and Mr. Bargmann gave their written consent to the Proposals described in
this Information Statement on December 23, 2008. It is proposed that this
Information Statement will be first sent to the stockholders on or about January
7, 2009. The record date established by the Company for purposes of determining
the number of outstanding shares of common stock of the Company, and thus the
voting power, is December 29, 2008 (the "Record Date").

<PAGE>

The Company is distributing this Information Statement to its
stockholders in full satisfaction of any notice requirements it may have under
the NRS. No additional action will be undertaken by the Company with respect to
the receipt of the written consents, and no dissenters' rights under the NRS are
afforded to the Company's stockholders as a result of the adoption of the
Proposals.

OUTSTANDING VOTING STOCK OF THE COMPANY

As of the Record Date, there were 23,879,350 shares of common stock
outstanding. Each share of common stock entitles the holder thereof to one vote
on all matters submitted to stockholders. Dr. Wiedow and Ms. Bargmann have voted
an aggregate 12,680,000 shares of common stock in favor of the Proposals.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT

The following table sets forth information regarding the beneficial
ownership of our Common Stock as of the Record Date, with respect to (i) each
person known to the Company to be the beneficial owner of more than 5% of the
Company's Common Stock; (ii) each director of the Company; (iii) each person
intending to file a written consent to the adoption of the Proposals described
herein; and (iv) all directors and executive officers of the Company as a group.
This information as to beneficial ownership was furnished to the Company by or
on behalf of the persons named. Unless otherwise indicated, the business address
of each person listed is 2102 Business Center Drive, Irvine, California 92612.

Shares Percent of
NAME BENEFICIALLY OWNED SHARES OUTSTANDING
---- ------------------ ------------------

Prof. Oliver Wiedow, M.D. 10,680,000 44.7%
Birge Bargmann 2,000,000 8.4%
Joerg Alte 140,000 (1) *
Dr. Barbara Kahlke 10,000 *
Holger Pusch 20,000 *
Prof. Hartmut Weigelt 80,000 *

All executive officers and 12,930,000 54.2%
directors as a group
(6 persons)


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

* Represents less than 1%.

(1) Mr. Alte has loaned all 140,000 shares to a broker.



2
<PAGE>


PROPOSAL 1

ELECTION OF DIRECTORS

NOMINEES AND DIRECTORS

Section 2 of Article III of the Company's Bylaws permits the Board of
Directors to fix the number of directors at not less than one nor more than
seven.

Four directors will be elected at the Annual Meeting. The nominees for
directors will serve until the annual meeting of stockholders to be held in 2009
and until his or her successor is duly elected and qualified. Professor Wiedow,
Ms. Bargmann, Mr. Alte, Mr. Pusch and Dr. Weigelt currently serve as directors.
Mr. Alte has informed the Company that he does not wish to stand for reelection
at this Annual Meeting.

All nominees have consented to being named herein and have indicated
their intention to serve as directors of the Company, if elected. In case any of
the nominees become unavailable for election to the Board of Directors, which is
not anticipated, vacancies on the Board may be filled by the remaining director
or directors, even though less than a quorum, for the unexpired term of such
vacant position.

The following persons have been nominated for election to the Board of
Directors:

NAME AGE POSITION
---- --- --------
Birge Bargmann 47 President, Chief Executive
Officer, Chief Financial
Officer and Director
Professor Oliver Wiedow, MD. 51 Director
Holger Pusch 52 Director
Professor Hartmut Weigelt, Ph.D. 63 Director


BUSINESS EXPERIENCE.

Birge Bargmann has served as our President, Chief Executive Officer and
Chief Financial Officer since November 2005 and a Director of the Company since
December 2000. In November 2005, she was appointed CEO and CFO of the Company
and its subsidiary. Ms. Bargmann was a member of the Supervisory Board of Proteo
Biotech AG from 2000 to 2005. Since 1989, Ms. Bargmann has worked as a medical
technique assistant engaged in the Elafin project at the dermatological clinic
of the University of Kiel. She co-developed and carried out procedures to detect
and to purify Elafin.

Prof. Oliver Wiedow, M.D. has served as a Director of the Company since
December 2000. Professor Wiedow served as our President, Chief Executive Officer
and Chief Financial Officer from January 2004 to June 2004 and has served as a
member of the Supervisory Board of Proteo Biotech AG since 2000. Since 1985
Professor Wiedow has served as physician and scientist at the University of
Kiel, Germany. Prof. Wiedow discovered Elafin in human skin and has researched
its biological effects.


2
<PAGE>


Holger Pusch has served as a Director of the Company since December
2000. For the last 23 years, Mr. Pusch worked in different marketing and sales
functions for major German companies. Mr. Pusch is currently the Managing
Director of Lupus Imaging & Media GmbH & Co. KG, a company in the photo
business, a position he has held since October 2006. From March 1, 2006 to
October 2006, Mr. Pusch worked for Connect Consulting GmbH, in Bonn Germany.
From October 1989 to March 2006 he worked for Agfa Geveart AG and its successor
as a result of a spin-off in November 2004, AgfaPhoto GmbH.

Prof. Hartmut Weigelt, Ph.D. has served as a Director of the Company
since December 2000. Prof. Weigelt was a member of the Supervisory Board of
Proteo Biotech AG from 2000 to 2003. Since 1996, Prof. Weigelt has served as the
managing director of Eco Impact GmbH which he co-founded. Prof. Weigelt was a
co-founder of the first German private university, Witten/Herdecke and he is
currently Chief Scientific Officer (CSO) of MedEcon Ruhr GmbH, and head of the
department of Dental Biomedicine at the University of Applied Sciences in Hamm
(Northrhine-Westphalia, Germany) Prof. Weigelt studied chemistry and biology and
graduated with a M.Sc., Ph.D., and D.Sc. in biology.

INFORMATION CONCERNING THE BOARD OF DIRECTORS.

During the year ended December 31, 2007 the Company's Board of
Directors held 2 meetings. Each member of the Board participated in each action
of the Board.

COMMITTEES OF THE BOARD OF DIRECTORS.

Proteo, Inc. is not a "listed company" under SEC rules and is therefore
not required to have an audit committee comprised of independent directors. We
do not currently have an audit committee, however, for certain purposes of the
rules and regulations of the SEC and in accordance with the Sarbanes-Oxley Act
of 2002, our board of directors is deemed to be its audit committee and as such
functions as an audit committee and performs some of the same functions as an
audit committee including: (1) selection and oversight of our independent
accountant; (2) establishing procedures for the receipt, retention and treatment
of complaints regarding accounting, internal controls and auditing matters; and
(3) engaging outside advisors. Our board of directors has determined that its
members do not include a person who is an "audit committee financial expert"
within the meaning of the rules and regulations of the SEC.

The board of directors has determined that each of its members is able
to read and understand fundamental financial statements and has substantial
business experience that results in that member's financial sophistication.
Accordingly, the board of directors believes that each of its members has
sufficient knowledge and experience necessary to fulfill the duties and
obligations that an audit committee would have.

The Company does not have a formal compensation committee. The Board of
Directors, acting as a compensation committee, periodically meets to discuss and
deliberate on issues surrounding the terms and conditions of executive officer
compensation.

3
<PAGE>

The Company does not have a formal nominating committee. The Board of
Directors, acting as a nominating committee, recommends candidates who will be
nominated as management's slate of directors at each annual meeting of
stockholders. The Board of Directors will also consider candidates for directors
nominated by stockholders. A stockholder who wishes to submit a candidate for
consideration at the annual meeting of stockholders to be held in 2009, must
notify the Secretary of the Company, in writing, no later than March 13, 2009.
The written notice must include information about each proposed nominee,
including name, age, business address, principal occupation, shares beneficially
owned and other information required to be included in proxy solicitations. The
nomination notice must also include the nominating stockholder's name and
address, the number of shares beneficially owned and a statement that such
stockholder intends to nominate his candidate. A statement from the candidate
must also be furnished, indicating the candidate's desire and ability to serve
as a director. Adherence to these procedures is a prerequisite to a
stockholder's right to nominate a candidate for director at the annual meeting.

REPORT OF THE BOARD OF DIRECTORS ON EXECUTIVE COMPENSATION.

The following statement made by the Board of Directors, sitting as a
Compensation Committee, shall not be deemed incorporated by reference into any
filing under the Securities Act or the Exchange Act, and shall not otherwise be
deemed filed under either of such Acts.

The Company does not have a formal compensation committee and the
Company's officers receive no compensation from the Company at this time. Ms.
Bargmann, our President, Chief Executive Officer and Chief Financial Officer,
receives compensation from our wholly-owned subsidiary, Proteo Biotech AG. The
Supervisory Board of Proteo Biotech AG entered into an employment contract with
Ms. Bargmann on August 1, 2007. The contract became effective on August 1, 2007
and expires on July 31, 2010. Pursuant to the agreement Ms. Bargmann receives a
salary of 8,000 Euro per month, which amounted to total annual compensation of
$64,000 for the year ended December 31, 2007. The supervisory Board and Ms.
Bargmann are obliged to negotiate the compensation at any time on the request of
either party taking into consideration of the economic performance of the
company. If no understanding can be reached within one month the requesting
party is allowed to terminate the agreement three months after at months end.



Submitted by the Board of Directors,
Sitting as a Compensation Committee:


/s/ Prof. Oliver Wiedow, M.D.
---------------------------------------

/s/ Holger Pusch
---------------------------------------

/s/ Professor Hartmut Weigelt, M.D.
---------------------------------------

/s/ Birge Bargmann
---------------------------------------

<PAGE>

COMPENSATION COMMITTEE AND INSIDER PARTICIPATION.

The current Board of Directors includes Birge Bargmann, who also serves
as an executive officer of the Company. As a result, this director discusses and
participates in deliberations of the Board of Directors on matters relating to
the terms of executive compensation. In this regard, a director whose executive
compensation is voted upon by the Board of Directors must abstain from such
vote.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE.

Section 16(a) of the Exchange Act requires the Company's directors and
executive officers and persons who own more than ten percent of a registered
class of the Company's equity securities to file with the SEC initial reports of
ownership and reports of changes in ownership of common stock and other equity
securities of the Company. Officers, directors and greater than ten percent
beneficial owners of our common stock are required by SEC regulations to furnish
the Company with copies of all Section 16(a) forms they file. To the Company's
knowledge, based solely on the review of copies of such reports furnished to the
Company and written representations that no other reports were required, the
Company has been informed that all Section 16(a) filing requirements applicable
to the Company's officers, directors and greater than ten percent beneficial
owners of our common stock were complied with.

EXECUTIVE COMPENSATION

SUMMARY COMPENSATION TABLE.

The following table sets forth the overall compensation earned over
each of the past two fiscal years ending December 31, 2007 by each person who
served as the principal executive officer of Proteo during fiscal year 2007.
There were no other executive officers who had compensation of $100,000 or more
during fiscal year 2007.
<TABLE>
<CAPTION>
<S> <C>

Non-Equity
Stock Option Incentive Plan All Other
Name and Principal Fiscal Salary Bonus Awards Awards Compensation Compensation
Position Year (US$) (US$) (US$) (US$) (US$) (US$) Total (US$)
-------- ---- ----- ----- ----- ----- ----- ----- -----------

Birge Bargemann,
President and Chief 2007 $ 64,000 (1) -- -- -- -- -- $ 64,000
Executive Officer 2006 $ 6,000 (1) -- -- -- -- -- $ 6,000
and Chief Financial
Officer

(1) Paid by the Company's wholly owned subsidiary, Proteo Biotech AG.
-------------
</TABLE>


<PAGE>


OPTION/SAR GRANTS TABLE.

The Company does not have a stock option or equity compensation plan.

AGGREGATED OPTION EXERCISES AND FISCAL YEAR-END OPTION VALUE TABLE.

Not applicable.

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS .

The Company does not have a stock option or other equity compensation
plan.

DIRECTOR COMPENSATION.

The Directors have not received any compensation for serving in such
capacity, and the Company does not currently contemplate compensating its
Directors in the future for serving in such capacity.

EMPLOYMENT AND CONSULTING AGREEMENTS.

The Company has no employment contracts with any of its officers or
directors and maintains no retirement, fringe benefit or similar plans for the
benefit of its officers or directors, however, Ms. Bargmann does have an
employment contract with the Company's wholly owned subsidiary Proteo Biotech AG
which is described above. The Company may, however, enter into employment
contracts with its officers and key employees, adopt various benefit plans and
begin paying compensation to its officers and directors as it deems appropriate
to attract and retain the services of such persons. The Company does not pay
fees to directors for their attendance at meetings that are not executive
officers of the Board of Directors or of committees; however, the Company may
adopt a policy of making such payments in the future. The Company will reimburse
out-of-pocket expenses incurred by directors in attending Board and committee
meetings.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

Pursuant to a 30-year license agreement we have agreed to pay Dr.
Wiedow three percent of the gross revenues of the Company from products based on
patents where he was the principal inventor. Furthermore, we agreed to pay
licensing fees of 110,000 Euro per year, for a term of six years through the
year ending December 31, 2006, for a total of 660,000 Euros. This equated to
annual license fees of approximately $130,000 for the year ending December 31,
2005 and $140,000 for the year ending December 31, 2006. We also agreed to
refund all expenses needed to maintain such patents (e.g., patent fees, legal
fees, etc).

At December 31, 2007, we have accrued $927,900 of licensing fees
payable to Dr. Wiedow. During 2004, the licensing agreement was amended to
require annual payments of 30,000 Euros, to be paid on July 15 of each year,
beginning on July 15, 2004. Such amount can be increased up to 110,000 Euros by
June 1 of each year based on an assessment of the Company's financial ability to
make such payments. The annual payments will continue until the entire
obligation of 660,000 Euros has been paid. In December 2007, the Company paid to
Dr. Wiedow 30,000 Euros (approx. $43,000). No other payments have been made to


4
<PAGE>

Dr. Wiedow as of December 31, 2007, which is a technical breach of the
agreement. Dr. Wiedow waived such breach and deferred the prior year payments to
2008.

On September 28, 2006, Dr. Wiedow entered into an agreement to
contribute 50,000 Euros (approximately $63,000) to PBAG for a 15% non-voting
interest in PBAG, in accordance with certain provisions of the German Commercial
Code.

Dr. Wiedow will receive 15% of profits, as determined under the
agreement, not to exceed in any given year 30% of the capital contributed.
Additionally, he will be allocated 15% of losses, as determined under the
agreement, not to exceed the capital contributed. Dr. Wiedow is under no
obligation to provide additional capital contributions to the Company. During
the years ended December 31, 2007 and 2006, losses of $3,978 and $59,026,
respectively, were allocated against the contributed capital account, which is
presented as minority interest in the profits and losses of Proteo Biotech on
the accompanying statements of operations and comprehensive loss.

The disclosure requirements of Item 407(a) of Regulation S-B are not
applicable to this filing.

PROPOSAL 2

PROPOSAL TO RATIFY THE APPOINTMENT OF SQUAR, MILNER, PETERSON,
MIRANDA & WILLIAMSON, LLP.
AS INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE COMPANY

Pursuant to a written consent, a majority of the Company's stockholders
ratified the Board of Directors' engagement of Squar, Milner, Peterson, Miranda
& Williamson, LLP. for the fiscal year ending December 31, 2008.

FEES TO AUDITORS.

Audit Fees: We were billed approximately $84,000 and $70,000 for the
fiscal years ended December 31, 2007 and 2006, respectively, for professional
services rendered by the principal accountant for the audit of the our annual
consolidated financial statements and the review of our quarterly unaudited
consolidated financial statements.

Tax Fees: We were billed approximately $6,000 and $6,000 for the fiscal
years ended December 31, 2007 and 2006, respectively, for professional services
rendered by the principal accountant for tax compliance and tax advice.

All Other Fees: There were no other professional services rendered by
our principal accountant during the two years ended December 31, 2007 that were
not included in the two categories above.

All of the services provided by our principal accountant were approved
by our Board of Directors. No more than 50% of the hours expended on our audit
for the last fiscal year were attributed to work performed by persons other than
full-time employees of our principal accountant.


5
<PAGE>

STOCKHOLDER PROPOSALS

Proposals of stockholders of the Company which are intended to be
presented by such stockholders at the annual meeting of stockholders to be held
in 2009 must be received by the Company no later than March 13, 2009, in order
to have them included in the information statement and form of information
statement relating to that meeting.


ACCOMPANYING REPORTS

The Company's Annual Report on Form 10-KSB, as amended, including
audited consolidated financial statements as at and for the years ended December
31, 2007 and 2006 accompany this information statement.



BY ORDER OF THE BOARD OF DIRECTORS

/s/ Birge Bargmann
----------------------------------
Birge Bargmann, President





6
</TEXT>
</DOCUMENT>

[kaubeuhut]

SCHEDULE 14C
(RULE 14C-101)
INFORMATION REQUIRED IN INFORMATION STATEMENT
SCHEDULE 14C INFORMATION
INFORMATION STATEMENT
PURSUANT TO SECTION 14(C) OF THE SECURITIES EXCHANGE ACT OF 1934

(AMENDMENT NO. )

Check the appropriate box:

[ ] Preliminary Information Statement [ ] Confidential, for Use of the
Commission Only (as permitted
by Rule 14c-5(d)(2))
[X] Definitive Information Statement

PROTEO, INC.
(Name of Registrant As Specified in Charter)

Payment of Filing Fee (Check the appropriate box):

[X] No Fee required.

[ ] Fee computed on table below per Exchange Act Rules 14c-5(g) and 0-11.

(1) Title of each class of securities to which transaction applies:

(2) Aggregate number of securities to which transaction applies:

(3) Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-1 (set forth the amount on which
the filing fee is calculated and state how it was determined):

(4) Proposed maximum aggregate value of transaction:

(5) Total fee paid:

[ ] Fee paid previously with preliminary materials

[ ] Check box if any part of the fee is offset as provided by Exchange Act Rule
0-11(a)(2) and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration statement number, or
the Form or Schedule and the date of its filing.

(1) Amount Previously Paid:

(2) Form, Schedule or Registration Statement No.:

(3) Filing Party:

(4) Date Filed:

Proteo, Inc.
2102 Business Center Drive
Irvine, California 92612

<PAGE>

INFORMATION STATEMENT

WE ARE NOT ASKING YOU FOR A PROXY AND
YOU ARE REQUESTED NOT TO SEND US A PROXY

GENERAL

This Information Statement is being furnished to the stockholders of
Proteo, Inc. a Nevada corporation (the "Company"), in lieu of an Annual Meeting
in connection with the following proposals (the "Proposals"):

1. To elect four (4) members to the Company' s Board of Directors to
hold office until the Company's annual meeting of stockholders to
be held in 2009 and until their successors are duly elected and
qualified; and

2. To ratify the appointment of Squar, Milner, Peterson, Miranda &
Williamson, LLP. as independent auditors of the Company for the
fiscal year ending December 31, 2008.

This Information Statement is being sent in lieu of an annual meeting.
The Company has adopted the Proposals by the written consent of stockholders
holding a majority of the voting power of the Company.

The Company's Board of Directors approved and recommended, pursuant to
a written consent dated December 18, 2008, that the Proposals be accepted. The
Company's stockholders holding a majority of the voting power of the Company
approved the Proposals, pursuant to a written consent dated December 23, 2008.
If the Proposals were not adopted by written consent, it would have been
required to be considered by the Company's stockholders at a special or annual
stockholders' meeting convened for the specific purpose of approving the
Proposals.

The elimination of the need for a special or annual meeting of
stockholders to ratify or approve the Proposals is authorized by Section
78.320(2) of the Nevada Revised Statutes (the "NRS"), which provides that the
written consent of stockholders holding at least a majority of the voting power
may be substituted for such a special or annual meeting. In order to eliminate
the costs and management time involved in holding a special or annual meeting
and in order to effect or ratify the Proposals as early as possible in order to
accomplish the purposes of the Company as hereafter described, the Board of
Directors of the Company voted to utilize the written consent of stockholders
holding a majority of the voting power of the Company.

Professor Oliver Wiedow, M.D. beneficially owns 10,680,000 shares of
common stock and Ms. Birge Bargmann beneficially owns 2,000,000 shares of common
stock, such that collectively they own 12,680,000 shares of common stock
representing approximately 53.1% of the voting power of the Company. Professor
Wiedow and Mr. Bargmann gave their written consent to the Proposals described in
this Information Statement on December 23, 2008. It is proposed that this
Information Statement will be first sent to the stockholders on or about January
7, 2009. The record date established by the Company for purposes of determining
the number of outstanding shares of common stock of the Company, and thus the
voting power, is December 29, 2008 (the "Record Date").

<PAGE>

The Company is distributing this Information Statement to its
stockholders in full satisfaction of any notice requirements it may have under
the NRS. No additional action will be undertaken by the Company with respect to
the receipt of the written consents, and no dissenters' rights under the NRS are
afforded to the Company's stockholders as a result of the adoption of the
Proposals.

OUTSTANDING VOTING STOCK OF THE COMPANY

As of the Record Date, there were 23,879,350 shares of common stock
outstanding. Each share of common stock entitles the holder thereof to one vote
on all matters submitted to stockholders. Dr. Wiedow and Ms. Bargmann have voted
an aggregate 12,680,000 shares of common stock in favor of the Proposals.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL
OWNERS AND MANAGEMENT

The following table sets forth information regarding the beneficial
ownership of our Common Stock as of the Record Date, with respect to (i) each
person known to the Company to be the beneficial owner of more than 5% of the
Company's Common Stock; (ii) each director of the Company; (iii) each person
intending to file a written consent to the adoption of the Proposals described
herein; and (iv) all directors and executive officers of the Company as a group.
This information as to beneficial ownership was furnished to the Company by or
on behalf of the persons named. Unless otherwise indicated, the business address
of each person listed is 2102 Business Center Drive, Irvine, California 92612.

Shares Percent of
NAME BENEFICIALLY OWNED SHARES OUTSTANDING
---- ------------------ ------------------

Prof. Oliver Wiedow, M.D. 10,680,000 44.7%
Birge Bargmann 2,000,000 8.4%
Joerg Alte 140,000 (1) *
Dr. Barbara Kahlke 10,000 *
Holger Pusch 20,000 *
Prof. Hartmut Weigelt 80,000 *

All executive officers and 12,930,000 54.2%
directors as a group
(6 persons)


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

* Represents less than 1%.

(1) Mr. Alte has loaned all 140,000 shares to a broker.



2
<PAGE>


PROPOSAL 1

ELECTION OF DIRECTORS

NOMINEES AND DIRECTORS

Section 2 of Article III of the Company's Bylaws permits the Board of
Directors to fix the number of directors at not less than one nor more than
seven.

Four directors will be elected at the Annual Meeting. The nominees for
directors will serve until the annual meeting of stockholders to be held in 2009
and until his or her successor is duly elected and qualified. Professor Wiedow,
Ms. Bargmann, Mr. Alte, Mr. Pusch and Dr. Weigelt currently serve as directors.
Mr. Alte has informed the Company that he does not wish to stand for reelection
at this Annual Meeting.

All nominees have consented to being named herein and have indicated
their intention to serve as directors of the Company, if elected. In case any of
the nominees become unavailable for election to the Board of Directors, which is
not anticipated, vacancies on the Board may be filled by the remaining director
or directors, even though less than a quorum, for the unexpired term of such
vacant position.

The following persons have been nominated for election to the Board of
Directors:

NAME AGE POSITION
---- --- --------
Birge Bargmann 47 President, Chief Executive
Officer, Chief Financial
Officer and Director
Professor Oliver Wiedow, MD. 51 Director
Holger Pusch 52 Director
Professor Hartmut Weigelt, Ph.D. 63 Director


BUSINESS EXPERIENCE.

Birge Bargmann has served as our President, Chief Executive Officer and
Chief Financial Officer since November 2005 and a Director of the Company since
December 2000. In November 2005, she was appointed CEO and CFO of the Company
and its subsidiary. Ms. Bargmann was a member of the Supervisory Board of Proteo
Biotech AG from 2000 to 2005. Since 1989, Ms. Bargmann has worked as a medical
technique assistant engaged in the Elafin project at the dermatological clinic
of the University of Kiel. She co-developed and carried out procedures to detect
and to purify Elafin.

Prof. Oliver Wiedow, M.D. has served as a Director of the Company since
December 2000. Professor Wiedow served as our President, Chief Executive Officer
and Chief Financial Officer from January 2004 to June 2004 and has served as a
member of the Supervisory Board of Proteo Biotech AG since 2000. Since 1985
Professor Wiedow has served as physician and scientist at the University of
Kiel, Germany. Prof. Wiedow discovered Elafin in human skin and has researched
its biological effects.


2
<PAGE>


Holger Pusch has served as a Director of the Company since December
2000. For the last 23 years, Mr. Pusch worked in different marketing and sales
functions for major German companies. Mr. Pusch is currently the Managing
Director of Lupus Imaging & Media GmbH & Co. KG, a company in the photo
business, a position he has held since October 2006. From March 1, 2006 to
October 2006, Mr. Pusch worked for Connect Consulting GmbH, in Bonn Germany.
From October 1989 to March 2006 he worked for Agfa Geveart AG and its successor
as a result of a spin-off in November 2004, AgfaPhoto GmbH.

Prof. Hartmut Weigelt, Ph.D. has served as a Director of the Company
since December 2000. Prof. Weigelt was a member of the Supervisory Board of
Proteo Biotech AG from 2000 to 2003. Since 1996, Prof. Weigelt has served as the
managing director of Eco Impact GmbH which he co-founded. Prof. Weigelt was a
co-founder of the first German private university, Witten/Herdecke and he is
currently Chief Scientific Officer (CSO) of MedEcon Ruhr GmbH, and head of the
department of Dental Biomedicine at the University of Applied Sciences in Hamm
(Northrhine-Westphalia, Germany) Prof. Weigelt studied chemistry and biology and
graduated with a M.Sc., Ph.D., and D.Sc. in biology.

INFORMATION CONCERNING THE BOARD OF DIRECTORS.

During the year ended December 31, 2007 the Company's Board of
Directors held 2 meetings. Each member of the Board participated in each action
of the Board.

COMMITTEES OF THE BOARD OF DIRECTORS.

Proteo, Inc. is not a "listed company" under SEC rules and is therefore
not required to have an audit committee comprised of independent directors. We
do not currently have an audit committee, however, for certain purposes of the
rules and regulations of the SEC and in accordance with the Sarbanes-Oxley Act
of 2002, our board of directors is deemed to be its audit committee and as such
functions as an audit committee and performs some of the same functions as an
audit committee including: (1) selection and oversight of our independent
accountant; (2) establishing procedures for the receipt, retention and treatment
of complaints regarding accounting, internal controls and auditing matters; and
(3) engaging outside advisors. Our board of directors has determined that its
members do not include a person who is an "audit committee financial expert"
within the meaning of the rules and regulations of the SEC.

The board of directors has determined that each of its members is able
to read and understand fundamental financial statements and has substantial
business experience that results in that member's financial sophistication.
Accordingly, the board of directors believes that each of its members has
sufficient knowledge and experience necessary to fulfill the duties and
obligations that an audit committee would have.

The Company does not have a formal compensation committee. The Board of
Directors, acting as a compensation committee, periodically meets to discuss and
deliberate on issues surrounding the terms and conditions of executive officer
compensation.

3
<PAGE>

The Company does not have a formal nominating committee. The Board of
Directors, acting as a nominating committee, recommends candidates who will be
nominated as management's slate of directors at each annual meeting of
stockholders. The Board of Directors will also consider candidates for directors
nominated by stockholders. A stockholder who wishes to submit a candidate for
consideration at the annual meeting of stockholders to be held in 2009, must
notify the Secretary of the Company, in writing, no later than March 13, 2009.
The written notice must include information about each proposed nominee,
including name, age, business address, principal occupation, shares beneficially
owned and other information required to be included in proxy solicitations. The
nomination notice must also include the nominating stockholder's name and
address, the number of shares beneficially owned and a statement that such
stockholder intends to nominate his candidate. A statement from the candidate
must also be furnished, indicating the candidate's desire and ability to serve
as a director. Adherence to these procedures is a prerequisite to a
stockholder's right to nominate a candidate for director at the annual meeting.

REPORT OF THE BOARD OF DIRECTORS ON EXECUTIVE COMPENSATION.

The following statement made by the Board of Directors, sitting as a
Compensation Committee, shall not be deemed incorporated by reference into any
filing under the Securities Act or the Exchange Act, and shall not otherwise be
deemed filed under either of such Acts.

The Company does not have a formal compensation committee and the
Company's officers receive no compensation from the Company at this time. Ms.
Bargmann, our President, Chief Executive Officer and Chief Financial Officer,
receives compensation from our wholly-owned subsidiary, Proteo Biotech AG. The
Supervisory Board of Proteo Biotech AG entered into an employment contract with
Ms. Bargmann on August 1, 2007. The contract became effective on August 1, 2007
and expires on July 31, 2010. Pursuant to the agreement Ms. Bargmann receives a
salary of 8,000 Euro per month, which amounted to total annual compensation of
$64,000 for the year ended December 31, 2007. The supervisory Board and Ms.
Bargmann are obliged to negotiate the compensation at any time on the request of
either party taking into consideration of the economic performance of the
company. If no understanding can be reached within one month the requesting
party is allowed to terminate the agreement three months after at months end.



Submitted by the Board of Directors,
Sitting as a Compensation Committee:


/s/ Prof. Oliver Wiedow, M.D.
---------------------------------------

/s/ Holger Pusch
---------------------------------------

/s/ Professor Hartmut Weigelt, M.D.
---------------------------------------

/s/ Birge Bargmann
---------------------------------------

<PAGE>

COMPENSATION COMMITTEE AND INSIDER PARTICIPATION.

The current Board of Directors includes Birge Bargmann, who also serves
as an executive officer of the Company. As a result, this director discusses and
participates in deliberations of the Board of Directors on matters relating to
the terms of executive compensation. In this regard, a director whose executive
compensation is voted upon by the Board of Directors must abstain from such
vote.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE.

Section 16(a) of the Exchange Act requires the Company's directors and
executive officers and persons who own more than ten percent of a registered
class of the Company's equity securities to file with the SEC initial reports of
ownership and reports of changes in ownership of common stock and other equity
securities of the Company. Officers, directors and greater than ten percent
beneficial owners of our common stock are required by SEC regulations to furnish
the Company with copies of all Section 16(a) forms they file. To the Company's
knowledge, based solely on the review of copies of such reports furnished to the
Company and written representations that no other reports were required, the
Company has been informed that all Section 16(a) filing requirements applicable
to the Company's officers, directors and greater than ten percent beneficial
owners of our common stock were complied with.

EXECUTIVE COMPENSATION

SUMMARY COMPENSATION TABLE.

The following table sets forth the overall compensation earned over
each of the past two fiscal years ending December 31, 2007 by each person who
served as the principal executive officer of Proteo during fiscal year 2007.
There were no other executive officers who had compensation of $100,000 or more
during fiscal year 2007.
<TABLE>
<CAPTION>
<S> <C>

Non-Equity
Stock Option Incentive Plan All Other
Name and Principal Fiscal Salary Bonus Awards Awards Compensation Compensation
Position Year (US$) (US$) (US$) (US$) (US$) (US$) Total (US$)
-------- ---- ----- ----- ----- ----- ----- ----- -----------

Birge Bargemann,
President and Chief 2007 $ 64,000 (1) -- -- -- -- -- $ 64,000
Executive Officer 2006 $ 6,000 (1) -- -- -- -- -- $ 6,000
and Chief Financial
Officer

(1) Paid by the Company's wholly owned subsidiary, Proteo Biotech AG.
-------------
</TABLE>


<PAGE>


OPTION/SAR GRANTS TABLE.

The Company does not have a stock option or equity compensation plan.

AGGREGATED OPTION EXERCISES AND FISCAL YEAR-END OPTION VALUE TABLE.

Not applicable.

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS .

The Company does not have a stock option or other equity compensation
plan.

DIRECTOR COMPENSATION.

The Directors have not received any compensation for serving in such
capacity, and the Company does not currently contemplate compensating its
Directors in the future for serving in such capacity.

EMPLOYMENT AND CONSULTING AGREEMENTS.

The Company has no employment contracts with any of its officers or
directors and maintains no retirement, fringe benefit or similar plans for the
benefit of its officers or directors, however, Ms. Bargmann does have an
employment contract with the Company's wholly owned subsidiary Proteo Biotech AG
which is described above. The Company may, however, enter into employment
contracts with its officers and key employees, adopt various benefit plans and
begin paying compensation to its officers and directors as it deems appropriate
to attract and retain the services of such persons. The Company does not pay
fees to directors for their attendance at meetings that are not executive
officers of the Board of Directors or of committees; however, the Company may
adopt a policy of making such payments in the future. The Company will reimburse
out-of-pocket expenses incurred by directors in attending Board and committee
meetings.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

Pursuant to a 30-year license agreement we have agreed to pay Dr.
Wiedow three percent of the gross revenues of the Company from products based on
patents where he was the principal inventor. Furthermore, we agreed to pay
licensing fees of 110,000 Euro per year, for a term of six years through the
year ending December 31, 2006, for a total of 660,000 Euros. This equated to
annual license fees of approximately $130,000 for the year ending December 31,
2005 and $140,000 for the year ending December 31, 2006. We also agreed to
refund all expenses needed to maintain such patents (e.g., patent fees, legal
fees, etc).

At December 31, 2007, we have accrued $927,900 of licensing fees
payable to Dr. Wiedow. During 2004, the licensing agreement was amended to
require annual payments of 30,000 Euros, to be paid on July 15 of each year,
beginning on July 15, 2004. Such amount can be increased up to 110,000 Euros by
June 1 of each year based on an assessment of the Company's financial ability to
make such payments. The annual payments will continue until the entire
obligation of 660,000 Euros has been paid. In December 2007, the Company paid to
Dr. Wiedow 30,000 Euros (approx. $43,000). No other payments have been made to


4
<PAGE>

Dr. Wiedow as of December 31, 2007, which is a technical breach of the
agreement. Dr. Wiedow waived such breach and deferred the prior year payments to
2008.

On September 28, 2006, Dr. Wiedow entered into an agreement to
contribute 50,000 Euros (approximately $63,000) to PBAG for a 15% non-voting
interest in PBAG, in accordance with certain provisions of the German Commercial
Code.

Dr. Wiedow will receive 15% of profits, as determined under the
agreement, not to exceed in any given year 30% of the capital contributed.
Additionally, he will be allocated 15% of losses, as determined under the
agreement, not to exceed the capital contributed. Dr. Wiedow is under no
obligation to provide additional capital contributions to the Company. During
the years ended December 31, 2007 and 2006, losses of $3,978 and $59,026,
respectively, were allocated against the contributed capital account, which is
presented as minority interest in the profits and losses of Proteo Biotech on
the accompanying statements of operations and comprehensive loss.

The disclosure requirements of Item 407(a) of Regulation S-B are not
applicable to this filing.

PROPOSAL 2

PROPOSAL TO RATIFY THE APPOINTMENT OF SQUAR, MILNER, PETERSON,
MIRANDA & WILLIAMSON, LLP.
AS INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM THE COMPANY

Pursuant to a written consent, a majority of the Company's stockholders
ratified the Board of Directors' engagement of Squar, Milner, Peterson, Miranda
& Williamson, LLP. for the fiscal year ending December 31, 2008.

FEES TO AUDITORS.

Audit Fees: We were billed approximately $84,000 and $70,000 for the
fiscal years ended December 31, 2007 and 2006, respectively, for professional
services rendered by the principal accountant for the audit of the our annual
consolidated financial statements and the review of our quarterly unaudited
consolidated financial statements.

Tax Fees: We were billed approximately $6,000 and $6,000 for the fiscal
years ended December 31, 2007 and 2006, respectively, for professional services
rendered by the principal accountant for tax compliance and tax advice.

All Other Fees: There were no other professional services rendered by
our principal accountant during the two years ended December 31, 2007 that were
not included in the two categories above.

All of the services provided by our principal accountant were approved
by our Board of Directors. No more than 50% of the hours expended on our audit
for the last fiscal year were attributed to work performed by persons other than
full-time employees of our principal accountant.


5
<PAGE>

STOCKHOLDER PROPOSALS

Proposals of stockholders of the Company which are intended to be
presented by such stockholders at the annual meeting of stockholders to be held
in 2009 must be received by the Company no later than March 13, 2009, in order
to have them included in the information statement and form of information
statement relating to that meeting.


ACCOMPANYING REPORTS

The Company's Annual Report on Form 10-KSB, as amended, including
audited consolidated financial statements as at and for the years ended December
31, 2007 and 2006 accompany this information statement.



BY ORDER OF THE BOARD OF DIRECTORS

/s/ Birge Bargmann
----------------------------------
Birge Bargmann, President





6
</TEXT>
</DOCUMENT>

[kaubeuhut]

Proteo, Inc. / Proteo Biotech AG:
Klinische Studie in Harvard zeigt Elafinmangel bei akutem Lungenversagen (ARDS)


Irvine, CA – Kiel, 17. Feb. 2009 – Proteo, Inc. (OTCBB: PTEO; WKN: 925981), und ihre 100%-ige Tochter Proteo Biotech AG gaben heute bekannt: Die Forschergruppe um David Christiani an der Harvard School of Public Health hat im Rahmen der Erforschung der Ursachen von akutem Lungenversagen festgestellt, dass in der Anfangsphase dieser Erkrankung bei vielen Patienten das körpereigene Schutzprotein Elafin in zu geringen Mengen gebildet wird. In ihrer neuesten klinischen Studie mit 148 Patienten, die vom National Institutes of Health der USA (National Heart, Lung and Blood Institute) gefördert wurde, konnten die amerikanischen Forscher zeigen, dass bei diesen Patienten der Elafinspiegel bei Beginn des akuten Lungenversagens um etwa 40% geringer ist. Dr. Christiani: »Diese Ergebnisse unterstützen unsere Annahme, dass die therapeutische Gabe von Elafin eine spezifische Behandlung für akutes Lungenversagen werden kann.«

Akutes Lungenversagen (ARDS) bedeutet eine massive diffuse Schädigung des Lungengewebes als Reaktion der Lunge auf verschiedene schädigende Faktoren und ein erhebliches Problem in der Intensivmedizin. Die Mehrzahl der Patienten muss über längere Zeit künstlich beatmet werden. Die Häufigkeit von ARDS liegt bei bis zu 28 Fällen pro 100.000 Einwohner und Jahr, d.h. allein in Deutschland erkranken bis zu 20.000 Menschen jährlich. Die Sterblichkeit der Patienten ist zwar auf Grund von Fortschritten der unterstützenden Therapie in den letzten Jahrzehnten gesunken, sie beträgt jedoch immer noch etwa 40%.

Über Elafin

Proteos Arzneimittelwirkstoff Elafin ist humanidentisch und natürlicher Gegenspieler von zwei hochpotenten gewebezerstörenden Enzymen, Elastase und Proteinase 3, die beide an Entzündungsmechanismen bei einer Vielzahl von Erkrankungen beteiligt sind. Die Eigenschaft von Elafin, die an Entzündungsreaktionen beteiligten Enzyme zu blockieren, macht es zu einem sehr Erfolg versprechenden Wirkstoff für die Behandlung von entzündlichen Lungenerkrankungen und schweren Reperfusionsschäden. Die sehr gute Verträglichkeit von intravenös appliziertem rekombinantem Elafin konnte in einer klinischen Phase I Studie überzeugend dargestellt werden. Eine klinische Studie der Phase II mit Patienten, die sich einer Ösophagektomie bei Ösophaguskarzinom unterziehen, wurde im November 2008 am Universitätsklinikum Schleswig-Holstein, Campus Kiel, gestartet. Untersucht wird der Einfluss von Elafin auf die postoperativen Entzündungsreaktionen. Eine weitere klinische Studie der Phase II mit Elafin wurde bereits genehmigt: Die Minapharm Pharmaceuticals SAE wird in Kairo eine Klinischen Studie zur Wirksamkeit von Elafin bei nierentransplantierten Patienten initiieren. Es handelt sich um eine Phase II-Studie zur Verhinderung von akuten und chronischen Organabstoßungsreaktionen (Allograft-Nephropathie), die an der Universität Kairo durchgeführt wird.

Über Proteo

Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Der Schwerpunkt liegt hierbei auf entzündungshemmenden Arzneimitteln, insbesondere auf dem menschlichen Elastase-Inhibitor Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung.

Zukunftsgerichtete Aussagen

Diese Presseinformation enthält bestimmte in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieser Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technischen Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen Pläne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-KSB und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.

Kontakt:
Dr. Barbara Kahlke
Proteo Biotech AG
Am Kiel-Kanal 44
D-24106 Kiel
Email: [e-mail]
Telefon: [phone]
Fax: [phone]

[Held2006]

Antwort auf Beitrag Nr.: 36.451.985 von kaubeuhut am 26.01.09 19:16:23

soll ich das alles lesen????

Warum ist proteo sooooooooooooooooooooooooooooooooo langweilig. War das nur ein inszenierter Zock einiger wenigen, die, sobald ich drin bin, wieder rausgehen???

[kaubeuhut]

Antwort auf Beitrag Nr.: 36.648.093 von Held2006 am 25.02.09 10:31:30

Na klar. Lies alles, - und noch viel mehr.

[Maettel]

Antwort auf Beitrag Nr.: 36.648.093 von Held2006 am 25.02.09 10:31:30

Klar wars das... Und wir haben Dich gewarnt!

Der letzte Zock hatt mir zum Ausstieg geholfen, jetzt muss ich nicht mehr auf diesem Dreck hocken... Danke

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beleidigung

[kaubeuhut]

Inovation lässt sich durch Rezession nicht aufhalten!

[selino]

Antwort auf Beitrag Nr.: 36.416.845 von mylastlovestory am 21.01.09 10:19:01

Ich wollte Ihnen schon im Januar antworten. Habe aber erst mal die Kursentwicklung abgewartet. Ausßerdem schaue ich aus Zeitgründen nur alle paar Wochen hier rein. Ich bin schon seit einigen Jahren Aktionär bei Proteo. Habe mit der Aktie bereits Geld verdient und bin bei dem dezeitigen Kurs noch nicht mal im Minus. Ich kann auch noch ein paar weitere Jahre warten. Oder bei dem nächsten Kurszuck wie Anfang Mai auch aussteigen. Darüber, wann und warum ich Aktien kaufe oder verkaufe brauchen Sie sich keine Gedanken zu machen. Das mache ich schon selber, sie selbsternannter Oberschlaumeier. Ich weiß auch nicht warum Sie ihr Geld in Aktien investieren. Ich investiere mein Geld auf jeden Fall um Gewinne zu machen. Wieso soll ich jetzt Proteoktien kaufen? Die sollen erst mal ihre Hausaufgaben machen. Quartalsberichte, HV einberufen und, und, und. Vertrauen schaffen. In die Schweizer habe ich derzeit kein Vertrauen mehr.

Was die stillen Mitlesern und Beobachter angeht, gebe ich Ihnen recht. Ich bin selber ein jahrelanger stiller Mitleser hier im Thread.
Selino

[selino]

Antwort auf Beitrag Nr.: 36.723.394 von kaubeuhut am 08.03.09 04:06:20

Der Aktienkurs bei einigen Aktien aber schon.
Selino

[kaubeuhut]

Antwort auf Beitrag Nr.: 37.291.748 von selino am 31.05.09 20:01:50

Dass z. B. seit 2002 hier kontinuierlich Quartalsberichte und Jahresabschlüsse bei der SEC "gefiled" und veröffentlicht werden, scheint wohl entgangen zu sein.

"Fünf", setzen!

Auf derart primitivem Niveau beginne ich erst überhaupt keine Diskussion.

[RTLOLDY]

Antwort auf Beitrag Nr.: 37.367.813 von kaubeuhut am 10.06.09 21:55:06

10 372 848

[mfs260151]

Antwort auf Beitrag Nr.: 37.701.164 von RTLOLDY am 03.08.09 18:13:56

was bedeutet diuese Zahl, könnt Ihr mir da weiterhelfen?

[RTLOLDY]

Antwort auf Beitrag Nr.: 37.702.670 von mfs260151 am 03.08.09 21:13:31

Jaaaaaaaaaaaaaaaaaaaa, es interessiert einen.

Da kann ich weiter helfen, obwohl ich ja darüber so gut wie unwissend bin.
Habe dies lediglich zufällig im Internet gefunden.

Des Rätzels Lösung:
Valoren Number: [url10 372 848]http://www.regent.vc/funds/fund_details.php?idSegmentNumber=SF0073[/url]

Fund Manager hiervon ist die [urlTERRSOLITH Asset Management AG ]http://www.terrsolith.ch/index.php?option=com_frontpage&Itemid=41[/url]

Schaut man auf deren Seite sich mal um, dann findet man dies:
Gehe doch richtig in der Annahme, dass "PTEO" im Chartbild "Proteo" ist ? ? ? ?
----> [urlERIDANUS]http://www.terrsolith.ch/images/stories/Eridanus_auf_einen_Blick.pdf[/url]

Hoffe ich habe hier nichts durcheinander gebracht
und täusche mich nur.

Gruss
OLDY

[mfs260151]

Antwort auf Beitrag Nr.: 37.702.803 von RTLOLDY am 03.08.09 21:30:01

macht doch einen ganz ordentlichen Eindruck, zuwachsorientiert und doch abgesichert - oder sehe ich das falsch?
Habe aber noch nicht die Aufteilung in die einzelnen Anlagen gefunden, in was ausser PTEO noch investiert wird, oder habe ich etwas übersehen?

[MANBACH]

***********************************************************************************************



Landgericht Düsseldorf, 15 O 408/03
Datum: 24.03.2006
Gericht: Landgericht Düsseldorf
Spruchkörper: 15. Zivilkammer
Entscheidungsart: Urteil
Aktenzeichen: 15 O 408/03

http://www.justiz.nrw.de/ses/nrwesearch.php
+ Aktenzeichen eingeben

oder

http://www.justiz.nrw.de/nrwe/lgs/duesseldorf/lg_duesseldorf…

***********************************************************************************************



Oberlandesgericht Düsseldorf, I-6 U 96/06
Datum: 13.09.2007
Gericht: Oberlandesgericht Düsseldorf
Spruchkörper: 6. Zivilsenat
Entscheidungsart: Urteil
Aktenzeichen: I-6 U 96/06

http://www.justiz.nrw.de/ses/nrwesearch.php
+ Aktenzeichen eingeben

oder

http://www.justiz.nrw.de/nrwe/olgs/duesseldorf/j2007/I_6_U_9…

***********************************************************************************************

[MANBACH]

Handelsregister des Kantons Zürich
Internet-Auszug

FID Esprit AG
Rosengartenstrasse 4
8608 Bubikon

http://zh.powernet.ch/webservices/inet/HRG/HRG.asmx/getHRGHT…

[Maettel]

Antwort auf Beitrag Nr.: 37.714.606 von MANBACH am 05.08.09 12:33:39

Wer ist jetzt der Beklagte??
Sind die Spiele des AK endlich aufgeflogen??

[mylastlovestory]

Selino, warum ich Aktien kaufe? bestimmt nicht um Jahre auf mein Gewinn zu warten. Ich habe mein Gewinn mit Proteo bereits hinter mir, Sie hocken noch darauf rum und hoffen auf das große Los. Während Sie auf was weltbewegendes warten, habe ich bereits neue satte Gewinne gemacht. Obgleich Sie nichts wissen, ist das Vertrauen recht groß. Ich empfehle Ihnen zu warten, eventuell verkaufen Sie auf Spitzenniveau.
Ich bin übrigens gerade mal so schlau, um Sie um Längen zu schlagen. Meine winzig kleine Position, die über geblieben ist, lasse ich laufen und warte darauf das Sie mir ein Verkaufssignal geben!
Die 5 von Cowboyhut steht Ihnen ganz gut zu Gesicht
Nicht zu glauben diese Frechheit!!
Nun, die Börse hat ja eine unglaubliche Performance gemacht, und Selino hat genau 0 oder <.

Diese Firma in der Schweiz... sieht aus wie eine Heuschrecke. Solche Häuser verwalten idR viel Kapital. Ich glaube wenn die Andeutung stimmt und Proteo bislang bewusst keine AdHoc Meldung veröffentlicht, dann kann noch was passieren. Wenn was passiert ist es schön, wenn nichts passiert dann bin ich nicht böse (aber vielleicht Selino? nur nicht nervös werden es wird schon schief gehen).

Ach wie nett, im Jahre 2009 (bald 2010) meldet sich plötzlich jemand aus dem Niergendswo und stellt drei Links im Thread. Zwei davon sind aus 2006. Nur gut, dass diese Meldungen nicht letztes Jahr hier aufgetaucht sind. ....drei Jahre später, siehe da, Proteo gibt es noch. Das reicht mir. Die Welt ohne Proteo wäre nur halb so schön....
Mattel, Sie hatten doch diesem Thread für alle Zeiten verlassen oder verwechsele ich Sie gerade? Ihre Andeutungen sind wohl eher lebenslänglich persönlicher Krieg, frage mich nur wer die letzte Schlacht gewonnen hat......

Ach ja Cowboyhut, - Ihr Fragezeichen - ich habe darauf keine Antwort, was soll ich damit anfangen? Ich habe Selino nur mal meine Meinung mitgeteilt.
Angesichts der Widersacher, ist es nicht einfacher geworden. Na denn, warum haben gewisse Menschen ein Interesse daran ein Start up Unternehmen wie Proteo klein zu machen?

Siehe da, es sind mehr stille Leser geworden, steht denn hier was an oder wartet jemand brennend auf eine Antwort und schmort vor Neugierde.
Selino, wenn Proteo plötzlich 5 € steht würde ich mich nicht wundern, sondern einfach halten. Die nächste Bilanz erklärt Ihnen dann den Grund.
Ich grüße meine Feinde und meine Freunde. Ich hoffe ich kann euch ein paar Tage alleine lassen. Bis zum nächsten Mal....

[kaubeuhut]

Antwort auf Beitrag Nr.: 37.714.606 von MANBACH am 05.08.09 12:33:39

Tut mir leid, aber mir erschliesst sich nicht ganz, was die zitierten Entscheidungen mit Proteo zu tun haben sollen. Wahrscheinlich handelt es sich um Fakes, die - moeglicherweise -versehentlich im falschen Thread gelandet sind.

[mylastlovestory]

So, habe auch verkauft, das ist mir lieber als Positionen mit Puts abzusichern und Kapital zu binden. Womöglich handelt es sich um eine längere Konsolidierung, dann ist der Put auch schlecht (meine Meinung). Die Abschlagssteuer macht natürlich weniger Freude. Trotzdem, ich glaube so wie ich haben sehr viele gehandelt.
Nun ist erst mal überlegen angesagt und natürlich die 50 Tage Linie zu beobachten. Das Depot hat eine sehr hohe Barquote. Marktteilnehmer, stehen jetzt vor der Frage: was kaufen?
In solchen Phasen bieten sich defensive Investitionen aber auch Spekulationen auf kleine viel versprechende Werte an.

Gehört Proteo dazu? Ich glaube nicht. Der Wert ist nicht bekannt genug, als das Anleger und Spekulanten - geschweige denn Banken - die Bereitschaft mitbringen etwas Spielgeld einzusetzen. Wer kennt Proteo? Ich, Cowboyhut, noch zwei oder drei, und dann noch ein paar mutlose andere.

Somit ist die PR Arbeit der FidEsprit und Proteo selbst zu beklagen. Beide Homepages liefern wenig für den Anleger, die letzte News setzt schon Rost an.
Die Bilanz zum Q2 habe ich nicht finden können, Cowboyhut sei doch so lieb und stell sie im Thread. Damit wären ich und der uninteressierte Rest der stillen Leser wenigstens wieder up to date. Die Frequenz der Besucher im Thread ist gestiegen, wundert mich nicht unbedingt.

Was ist denn nun mit Phase 2? Die Story müsste doch schon über die Bühne sein, warum gibt es (zumindest) keine adhoc Information?
Im positiven Fall wäre das doch eine gute Gelegenheit Proteo an der Börse bekannter zu machen und öffentliches Interesse anzuregen. Ich glaube nicht, dass es verboten ist über diese Aktualität zu berichten. Es muss ja nicht unbedingt so klingen, dass Elafin morgen geliefert wird.
Ich schreibe das noch mal: gegenwärtig sollte die in Frage kommende Zielgruppe über mehr Barbestand verfügen, und viel Langeweile haben. So würde ich das tun, wenn ich die Macht hätte. Also, nicht nur forschen und entwickeln etc. etc. sondern auch Vertrauen über "Investor Relations" schaffen.
Na klar, so wie S….o, warten wohl noch mehrere auf einen höheren Preis. Sollen sie doch verkaufen, dann ist dieser Druck weg und dann? Teuerer oder billiger kaufen diese Leute sowieso nicht nach, ich glaube dazu fehlt die Mentalität. Proteo braucht Anleger vom Markt!

Eine Hammer News würde dieses „Volk“ wohl eher unsicher machen, und wenn sie verkaufen sollten und die öffentliche Meinung den Preis höher treibt und stabilisiert, dann haben die Jahre damit verbracht und trotzdem falsch gehandelt (das tut dann besonders weh).

Na denn, kommt hier mehr Volumen und Volatilität rein, bin ich nicht abgeneigt dabei zu sein. Wer die Macht hat soll sie nutzen und sich nicht über einzelne Beiträge ärgern. Alle Aktiengesellschaften, auch Startups stellen gewisse News in die Öffentlichkeit, nicht zuletzt um in den Köpfen der wirklichen Anleger zu bleiben. Schaut doch mal AIG an, eine echte News gab es nicht, nur Spekulation. Der neue Chef wird deswegen nicht verklagt.

Auf diesem Thread kommt vermutlich kein Schwein, außer die, die verkaufen wollen.
Ist es etwa zu früh den aktuellen Stand der Entwicklung mitzuteilen? Jedenfalls glaube ich nicht, dass es verboten ist. Es ist ruhig, zu ruhig....kommt hier bald Phase3? Moment mal eben...vielleicht....vielleicht auch nicht....bereits eine Ebene weiter? nicht nur Phase2.... ...oder habe ich nur Langeweile

[kaubeuhut]

Antwort auf Beitrag Nr.: 37.900.534 von mylastlovestory am 02.09.09 11:06:40

10-Q 1 proteo_10q-063009.htm PROTEO, INC.

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


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

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


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


FORM 10-Q


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


(Mark One)
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

OR

o 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 000-30728

PROTEO, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


NEVADA 88-0292249
(STATE OR OTHER JURISDICTION OF
INCORPORATION OR ORGANIZATION) (I.R.S. EMPLOYER
IDENTIFICATION NO.)

2102 BUSINESS CENTER DRIVE, IRVINE, CALIFORNIA 92612
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)


[phone]
(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 such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See definition of "an accelerated filer," "large accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer o Accelerated filer o

Non-accelerated filer o 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 o No x.

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

CLASS NUMBER OF SHARES OUTSTANDING
Common Stock, $0.001 par value 23,879,350 shares of common stock at June 30, 2009



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

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




PROTEO, INC.
AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)

TABLE OF CONTENTS

Page

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements:
Condensed Consolidated Balance Sheet as of June 30, 2009 (unaudited) and Condensed Consolidated Balance Sheet as of December 31, 2008 3

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three-month and Six-month Periods Ended June 30, 2009 and 2008, and for the Period From November 22, 2000 (Inception) Through June 30, 2009 4

Unaudited Condensed Consolidated Statements of Cash Flows for the Six-month Periods Ended June 30, 2009 and 2008, and for the Period From November 22, 2000 (Inception) Through June 30, 2009 5

Notes to Unaudited Condensed Consolidated Financial Statements 6

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 13

Item 3. Quantitative and Qualitative Disclosure About Market Risk 16

Item 4T. Controls and Procedures 16

PART II. OTHER INFORMATION 17

Item 1. Legal Proceedings 17

Item 1A. Risk Factors 17

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17

Item 3. Defaults Upon Senior Securities 17

Item 4. Submission of Matters to a Vote of Security Holders 17

Item 5. Other Information 17

Item 6. Exhibits 17

SIGNATURES 18



2
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS


ASSETS
June 30, December 31,
2009 2008
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 1,253,672 $ 1,237,450
Research supplies 121,253 114,650
Prepaid expenses and other current assets 132,905 191,599
1,507,830 1,543,699

PROPERTY AND EQUIPMENT, NET 253,157 265,245
$ 1,760,987 $ 1,808,944

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 96,669 $ 138,225
Accrued licensing fees 42,144 42,291
138,813 180,516

LONG TERM LIABILITIES
Deferred revenue 114,899 115,300
Accrued licensing fees 800,736 803,529
915,635 918,829

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Non-voting preferred stock, par value $0.001 per share; 10,000,000
shares authorized; 630,000 shares issued and outstanding
(Liquidation preference - Note 2) 630 600

Proteo, Inc. stockholders' equity:
Common stock, par value $0.001 per share; 300,000,000
shares authorized; 23,879,350 shares issued and
outstanding 23,880 23,880
Additional paid-in capital 8,567,634 8,567,634
Note receivable for sale of preferred stock (1,910,006 ) (2,245,389 )
Accumulated other comprehensive income 308,385 279,280
Deficit accumulated during development stage (6,283,984 ) (5,916,406 )
Total Proteo, Inc. Stockholders' Equity 706,539 709,599
Noncontrolling Interest - -
Total Stockholders' Equity 706,539 709,599
Total Liabilities and Stockholders' Equity $ 1,760,987 $ 1,808,944



SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

3
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE THREE-MONTH AND SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH JUNE 30, 2009


NOVEMBER 22,
2000
THREE MONTHS ENDED SIX MONTHS ENDED (INCEPTION)
JUNE 30, JUNE 30, THROUGH
2009 2008 2009 2008 2009
CONSOLIDATED STATEMENTS OF OPERATIONS

REVENUES $ - $ - $ - $ - $ -

EXPENSES
General and administrative 175,138 94,602 235,542 215,057 4,221,868
Research and development 104,660 117,215 224,546 246,650 2,377,175
279,798 211,817 460,088 461,707 6,599,043
INTEREST AND OTHER INCOME (EXPENSE), NET 36,165 13,138 92,540 (49,322 ) 252,085
NET LOSS (243,633 ) (198,679 ) (367,548 ) (511,029 ) (6,346,958 )

LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST - - - - 63,004
NET LOSS ATTRIBUTABLE TO PROTEO, INC. (243,633 ) (198,679 ) (367,548 ) (511,029 ) (6,283,954 )

PREFERRED STOCK DIVIDEND (30 ) - (30 ) - (30 )

NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (243,663 ) $ (198,679 ) $ (367,578 ) $ (511,029 ) $ (6,283,984 )
BASIC AND DILUTED LOSS ATTRIBUTABLE TO PROTEO, INC.
COMMON SHAREHOLDERS $ (0.01 ) $ (0.01 ) $ (0.02 ) $ (0.02 )

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 23,879,000 23,879,000 23,879,000 23,879,000

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

NET LOSS ATTRIBUTABLE TO PROTEO, INC. $ (243,633 ) $ (198,679 ) $ (367,548 ) $ (511,029 ) $ (6,283,954 )

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS 150,008 59,019 29,105 143,475 308,385
COMPREHENSIVE LOSS $ (93,625 ) $ (139,660 ) $ (338,443 ) $ (367,554 ) $ (5,975,569 )



SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

4
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2009 AND 2008
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH JUNE 30, 2009


NOVEMBER 22,
2000
(INCEPTION)
SIX MONTHS ENDED THROUGH
JUNE 30, June 30,
2009 2008 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (367,548 ) $ (511,029 ) $ (6,283,934 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 28,416 29,054 363,094
Loss on disposal of equipment - - 4,518
Unrealized foreign currency transaction (gains) losses (2,940 ) 115,779 180,462
Changes in operating assets and liabilities:
Research supplies (6,654 ) (1,498 ) (137,346 )
Prepaid expenses and other current assets 51,909 57,992 (138,310 )
Accounts payable and accrued liabilities (33,024 ) (59,152 ) 58,951
Deferred revenue - - 120,341
Accrued licensing fees - - 660,713
NET CASH USED IN OPERATING ACTIVITIES (329,841 ) (368,854 ) (5,171,511 )

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (17,823 ) - (631,129 )
Cash of reorganized entity - - 27,638
NET CASH USED IN INVESTING ACTIVITIES (17,823 ) - (603,491 )

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock - - 1,792,610
Proceeds from subscribed common stock and issuance
of preferred stock to related party 335,383 1,132,502 4,880,969
NET CASH PROVIDED BY FINANCING ACTIVITIES 335,383 1,132,502 6,673,579
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS 28,503 109,070 355,095
NET INCREASE IN CASH AND CASH EQUIVALENTS 16,222 872,718 1,253,672
CASH AND CASH EQUIVALENTS--BEGINNING OF PERIOD 1,237,450 802,745 -
CASH AND CASH EQUIVALENTS--END OF PERIOD $ 1,253,672 $ 1,675,463 $ 1,253,672




SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2009 (UNAUDITED)

1. NATURE OF BUSINESS AND BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying condensed consolidated balance sheets as of December 31, 2008, which has been derived from audited financial statements, and the accompanying interim condensed consolidated financial statements as of June 30, 2009, for the three-month and six-month periods ended June 30, 2009 and 2008 and for the period from November 22, 2000 (Inception) through June 30, 2009 have been prepared by management pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments and accruals) necessary to present fairly the financial condition, results of operations and cash flows of Proteo, Inc and its wholly owned subsidiary (hereinafter collectively referred to as the "Company") as of and for the periods presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Operating results for the three-month and six-month period ended June 30, 2009 are not necessarily indicative of the results that may be expected for the year ending December 31, 2009 or for any other interim period during such year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. The accompanying financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 filed with the SEC on March 30, 2009.

NATURE OF BUSINESS

The Company intends to develop, manufacture, promote and market pharmaceuticals and other biotech products. The Company is focused on the development of pharmaceuticals based on the human protein Elafin which naturally occurs in human skin, lungs and mammary glands. The Company believes Elafin may be useful in the treatment of cardiac infarction, serious injuries caused by accidents, post surgery damage to tissue, complications resulting from organ transplantations and pulmonary arterial hypertension.

The products that the Company is developing are considered drugs or biologics, and hence are governed by the Federal Food, Drug and Cosmetics Act (in the United States) and the regulations of State and various foreign government agencies. The Company's proposed pharmaceutical products to be used by humans are subject to certain clearance procedures administered by the above regulatory agencies.

Since its inception, the Company has primarily been engaged in the research and development of its proprietary product Elafin. Once the research and development phase is complete, the Company intends to manufacture and seek the various governmental regulatory approvals for the marketing of Elafin. Management believes that none of its planned products will produce sufficient revenues in the near future. As a result, the Company plans to identify and develop other potential products. There are no assurances, however, that the Company will be able to develop such products, or if produced, that they will be accepted in the marketplace.

Proteo, Inc.'s common stock is currently quoted on the OTC Bulletin Board of the Financial Industry Regulatory Authority under the symbol "PTEO".

DEVELOPMENT STAGE AND GOING CONCERN CONSIDERATIONS

The Company has been in the development stage since it began operations on November 22, 2000, and has not generated any significant revenues from operations. Management plans to generate revenues from product sales, but there is no commitment by any persons for purchase of any of the proposed products and there is no assurance of any future revenue. The Company will require substantial additional funding for continuing research and development, obtaining regulatory approvals and for the commercialization of its product. There can be no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.


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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2009 (UNAUDITED)

Management has taken action to address these matters, which include:

· Retention of experienced management personnel with particular skills in the development of such products;

· Attainment of technology to develop biotech products; and

· Raising additional funds through the sale of debt and/or equity securities.


In the absence of significant sales and profits, the Company may seek to raise funds to meet its future working capital requirements through the additional sales of debt and/or equity securities. There is no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.

These circumstances, among others, raise concerns about the Company's ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

CONCENTRATIONS

The Company maintains substantially all of its cash in bank accounts at a German private commercial bank. The Company's bank accounts at this financial institution are presently protected by the voluntary "Deposit Protection Fund Of The German Private Commercial Banks". The Company has not experienced any losses in these accounts.

Proteo, Inc.'s operations, including research and development activities and most of its assets are located in Germany. The Company's operations are subject to various political, economic, and other risks and uncertainties inherent in Germany and the European Union.

OTHER RISKS AND UNCERTAINTIES

Proteo, Inc.'s line of future pharmaceutical products being developed by its German subsidiary are considered drugs or biologics, and as such, are governed by the Federal Food, Drug and Cosmetics Act (in the United States) and by the regulations of State agencies and various foreign government agencies. There can be no assurances that the Company will obtain the regulatory approvals required to market its products. The pharmaceutical products under development in Germany will be subject to more stringent regulatory requirements because they are recombinant products for humans. The Company has no experience in obtaining regulatory clearance on these types of products. Therefore, the Company will be subject to the risks of delays in obtaining or failing to obtain regulatory clearance and other uncertainties, including financial, operational, technological, regulatory and other risks associated with an emerging business, including the potential risk of business failure.

The Company is exposed to risks related to fluctuations in foreign currency exchange rates. Management does not utilize derivative instruments to hedge against such exposure.

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements have been prepared in accordance with GAAP and include the accounts of Proteo, Inc. and Proteo Biotech AG, its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

On January 1, 2009, the Company adopted SFAS 160, “Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No. 51,” which requires the Company to make certain changes to the presentation of the Company's financial statements. This standard requires the Company to classify noncontrolling interests (previously referred to as "minority interest") as part of consolidated net earnings and to include the accumulated amount of noncontrolling interests as part of stockholders' equity. The net loss amounts the Company has previously reported are now presented as "Net loss attributable to Proteo, Inc" and, as required by SFAS 160, earnings per share continues to reflect amounts attributable only to the Company. Similarly, in the presentation of stockholders' equity, the Company distinguishes between equity amounts attributable to the Company's stockholders and amounts attributable to the noncontrolling interests - previously classified as minority interest outside of stockholders' equity. In addition to these financial reporting changes, SFAS 160 provides for significant changes in accounting related to noncontrolling interests; specifically, increases and decreases in the Company's controlling financial interests in consolidated subsidiaries will be reported in equity similar to treasury stock transactions. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. Except for presentation, the adoption of SFAS 160 did not have a material effect on the Company's consolidated financial statements because a substantive contractual arrangement specifies the attribution of net earnings and loss not to exceed the noncontrolling interest.


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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2009 (UNAUDITED)

FAIR VALUE OF FINANCIAL INSTRUMENTS AND CERTAIN OTHER ASSETS/LIABILITIES

Statement of Financial Accounting Standards ("SFAS") No. 107 "DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS" requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. Management believes that the carrying amounts of the Company's financial instruments, consisting primarily of cash, accounts payable and accrued expenses, approximate their fair value at December 31, 2008 due to their short-term nature.
The Company does not have any assets or liabilities that are measured at fair value on a recurring basis and, during the three-month and six-month periods ended June 30, 2009 and 2008 and for the period from November 22, 2000 (Inception) through June 30, 2009, did not have any assets or liabilities that were measured at fair value on a non-recurring basis. The measurements referenced in the preceding sentence refer to those described in SFAS No. 157 ("Fair Value Measurements"), as amended.

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS

In April 2009, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position (“FSP”) FAS 107-1/APB 28-1 (“FSP 107-1”), “Interim Disclosures about Fair Value of Financial Instruments”. This pronouncement amended SFAS No 107, “Disclosures about Fair Value of Financial Instruments”, to require disclosure of the carrying amount and the fair value of all financial instruments for interim reporting periods and annual financial statements of publicly traded companies (even if the financial instrument is not recognized in the balance sheet), including the methods and significant assumptions used to estimate the fair values and any changes in such methods and assumptions. FSP 107-1 also amended APB Opinion No. 28, “Interim Financial Reporting”, to require disclosures in summarized financial information at interim reporting periods.

The FASB also issued FSP FAS 157-4 (“FSP 157-4”), “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” in April 2009. FSP 157-4 generally applies to all assets and liabilities within the scope of any accounting pronouncements that require or permit fair value measurements. This pronouncement, which does not change SFAS No. 157, “Fair Value Measurements” (“SFAS 157”) guidance regarding Level 1 inputs, requires the entity to (i) evaluate certain factors to determine whether there has been a significant decrease in the volume and level of activity for the asset or liability when compared with normal market activity, (ii) consider whether the preceding indicates that transactions or quoted prices are not determinative of fair value and, if so, whether a significant adjustment thereof is necessary to estimate fair value in accordance with SFAS No. 157, and (iii) ignore the intent to hold the asset or liability when estimating fair value. FSP 157-4 also provides guidance to consider in determining whether a transaction is orderly (or not orderly) when there has been a significant decrease in the volume and level of activity for the asset or liability, based on the weight of available evidence.

In April 2009, the FASB issued FSP FAS 115-2 and 124-2 (“FSP 115-2/124-2”), “Recognition and Presentation of Other-Than-Temporary Impairments,” which amends the other-than-temporary impairment (“OTTI”) recognition guidance in certain existing U.S. GAAP (including SFAS No. 115 and 130, FSP FAS 115-1/FAS 124-1, and EITF Issue 99-20) for debt securities classified as available-for-sale and held-to-maturity. FSP 115-2/124-2 requires the entity to consider (i) whether the entire amortized cost basis of the security will be recovered (based on the present value of expected cash flows), and (ii) its intent to sell the security. Based on the factors described in the preceding sentence, this pronouncement also explains the process for determining the OTTI to be recognized in “other comprehensive income” (generally, the impairment charge for other than a credit loss) and in earnings. FSP 115-2/124-2 does not change existing recognition or measurement guidance related to OTTI of equity securities.


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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2009 (UNAUDITED)

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS (continued)

FSP 107-1, FSP 157-4 and FSP 115-2/124-2 were all effective for the interim period ended June 30, 2009. The adoption of such standards had no material impact on the accompanying condensed consolidated financial statements.

In May 2009, the FASB issued SFAS No. 165 entitled Subsequent Events. The objective of this Statement is to establish general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. In particular, this Statement sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which an entity should recognize events or transactions occuring after the balance sheet date in its financial statements, and the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. This Statement is effective for financial statements issued for interim and annual periods ending after June 15, 2009 and did not have any impact on the Company's consolidated financial statements. The Company evaluated subsequent events through the filing date of our quarterly 10-Q with the Securities and Exchange Commission on August 6, 2009.

In June 2009, the FASB issued Statement No. 168, "The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles - a replacement of FASB Statement No. 162" ("FAS 168"). The Codification will become the source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. On the effective date of FAS 168, the Codification will supersede all then-existing non-SEC accounting and reporting standards. All other nongrandfathered non-SEC accounting literature not included in the Codification will become nonauthoritative. FAS 168 is effective for financial statements issued for interim and annual periods ending after September 15, 2009. FAS 168 is not expected to have a material impact on our consolidated financial position, results of operations, or cash flows.

Except as described above, in the opinion of management, neither the Financial Accounting Standards Board, its Emerging Issues Task Force, the AICPA, nor the SEC have issued any additional accounting pronouncements since the Company filed its December 31, 2008, Form 10-K that are expected to have material impact on the Company's future consolidated financial statements.

2. STOCK SUBSCRIPTIONS RECEIVABLE AND OTHER EQUITY TRANSACTIONS

The Company is authorized to issue 10,000,000 shares of preferred stock, $0.001 par value. Except as described below, the Board of Directors has not designated any liquidation value, dividend rates or other rights or preferences with respect to any shares of preferred stock.

The Board of Directors has designated 750,000 preferred shares as non-voting Series A Preferred Stock. As more fully described in the Company’s Form 8-K filed with the SEC on June 11, 2008. Holders of Series A Preferred Stock are entitled to receive preferential dividends, if and when declared, at the per share rate of twice the per share amount of any cash or non-cash dividend distributed to holders of the Company's common stock. If no dividend is distributed to common stockholders, the holders of Series A Preferred Stock are entitled to an annual stock dividend payable at the rate of one share of Series A Preferred Stock for each twenty shares of Series A Preferred Stock owned by each holder of Series A Preferred Stock. The annual stock dividend shall be paid on June 30 of each year commencing in 2009 and no stock dividends will be paid after December 31, 2011.

On June 9, 2008, the Company entered into a Preferred Stock Purchase Agreement ("Stock Purchase Agreement") with FIDEsprit (the “Investor”), a common stockholder and related party. Pursuant to the Stock Purchase Agreement, the Company sold and issued to the Investor 600,000 shares of Series A Preferred Stock at a price of $6.00 per share, for an aggregate price of $3,600,000 ("Purchase Price"). In payment of the Purchase Price, the Investor delivered to the Company a promissory note in the amount of $3,600,000 (the “Note”), maturing on March 31, 2009. The Note is guaranteed by a principal of the Investor (the “Guaranty”). During the six-month periods ended June 30, 2009 and 2008, the Company received payments approximating $335,000 and $1,133,000, respectively, in connection with the Stock Purchase Agreement. The unpaid principal balance of the Series A Preferred Stock note receivable as of June 30, 2009 approximated $1,910,000. Of this amount approximately $35,000 was received in July 2009. The Series A Preferred Stock note receivable is reported as a reduction of stockholders' equity at June 30, 2009.

On July 6, 2009, the Company and Investor entered into a Forbearance Agreement and General Release (the “Forbearance Agreement”) to renegotiate the terms of the Note. Pursuant to the Forbearance Agreement, the Investor acknowledged and agreed that, as of July 6, 2009, it was obligated to the Company under the Note for the aggregate sum of $1,940,208 (the “Indebtedness”), which represents the unpaid principal amount as of such date plus a late charge equal to three percent (3%) of the unpaid principal amount. In exchange for the Company’s agreement to forbear from exercising its rights under the Note and Guaranty, the Investor has agreed to pay the Indebtedness by making monthly payments in the amount of $140,000 commencing on the first business day of September 2009 and continuing on the first business day of each succeeding month thereafter until the Indebtedness is paid in full.

The other information required by Item 701 of Regulation S-K relating to the transactions described in the preceding paragraphs were included in the Company's Forms 8-K filed with the SEC on June 11, 2008 and July 8, 2009.


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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2009 (UNAUDITED)

Effective June 30, 2009, the Company declared a stock dividend of 30,000 shares of Series A Preferred Stock payable to its Series A Preferred Stock holders.

There were no issuances of common stock during the six-month period ended June 30, 2009, nor have any stock options been granted from inception to date.

3. LOSS PER COMMON SHARE

The Company computes loss per common share using SFAS No. 128, "EARNINGS PER SHARE." Basic loss per common share is computed based on the weighted average number of shares outstanding for the period. Diluted loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average shares outstanding assuming all dilutive potential common shares were issued. There were no dilutive potential common shares outstanding at June 30, 2009 or 2008. Additionally, there were no adjustments to net loss to determine net loss available to common shareholders. As such, basic and diluted loss per common share equals net loss, as reported, divided by the weighted average common shares outstanding for the respective periods.

4. FOREIGN CURRENCY TRANSLATION

Assets and liabilities of the Company's German operations are translated from Euros (the functional currency) into U.S. dollars (the reporting currency) at period-end exchange rates; equity transactions are translated at historical rates; and income and expenses are translated at weighted average exchange rates for the period. Net foreign currency exchange gains or losses resulting from such translations are excluded from the results of operations but are included in other comprehensive income and accumulated in a separate component of stockholders' equity. Accumulated comprehensive income approximated $308,000 at June 30, 2009 and $279,000 at December 31, 2008.

5. FOREIGN CURRENCY TRANSACTIONS

The Company records payables related to a certain licensing agreement (Note 7) in accordance with SFAS No. 52, "FOREIGN CURRENCY TRANSLATION." Quarterly commitments under such agreement are denominated in Euros. For each reporting period, the Company translates the quarterly amount to U.S. dollars at the exchange rate effective on that date. If the exchange rate changes between when the liability is incurred and the time payment is made, a foreign exchange gain or loss results. The Company has made no payments under this licensing agreement during the six-month periods ended June 30, 2009 and 2008, and, therefore, has not realized any significant foreign currency exchanges gains or losses during these periods.

Additionally, the Company computes a foreign exchange gain or loss at each balance sheet date on all recorded transactions denominated in foreign currencies that have not been settled. The difference between the exchange rate that could have been used to settle the transaction on the date it occurred and the exchange rate at the balance sheet date is the unrealized gain or loss that is currently recognized. The Company recorded an unrealized foreign currency transaction gain of approximately $3,000 and an unrealized foreign currency transaction loss of $116,000 for the six-month periods ended June 30, 2009 and 2008, respectively, which are included in interest and other income (expense), net in the accompanying condensed consolidated statements of operations and comprehensive loss.

6. SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION

SFAS No. 131, "DISCLOSURES ABOUT SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION," establishes standards for how public companies report information about segments of their business in their annual financial statements and requires them to disclose selected segment information in their quarterly reports issued to shareholders. It also requires entity-wide disclosures about the products and services an entity provides, the countries in which it holds material assets and reports material revenues and its major customers. The Company considers itself to operate in one segment and has not generated any significant operating revenues since its inception. All of the Company's property and equipment is located in Germany.


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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2009 (UNAUDITED)

7. DR. WIEDOW LICENSE AGREEMENT

On December 30, 2000, the Company entered into a thirty-year license agreement, beginning January 1, 2001 (the "License Agreement"), with Dr. Oliver Wiedow, MD, the owner and inventor of several patents, patent rights and technologies related to Elafin. Pursuant to the License Agreement, the Company agreed to pay Dr. Wiedow an annual license fee of 110,000 Euros for a period of six years. No payments were made through fiscal year 2003. In 2004, the License Agreement was amended to require the Company to make annual payments of 30,000 Euros, to be paid on July 15 of each year, beginning in 2004. Such annual payment could be increased to 110,000 Euros by June 1 of each year based on an assessment of the Company's financial ability to make such payments. In December 2007 the Company paid Dr. Wiedow 30,000 Euros. The License Agreement was again amended by an Amendment Agreement to the License Agreement (the "Amendment") dated December 23, 2008. Pursuant to the Amendment, the Company and Dr. Wiedow have agreed that the Company would pay the outstanding balance of 630,000 Euros to Dr. Wiedow as follows: for fiscal years 2008 to 2012, the Company shall pay Dr. Wiedow 30,000 Euros per year, and for fiscal years 2013 to 2016, the Company shall pay Dr. Wiedow 120,000 Euros per year. The foregoing payments shall be made on or before December 31 of each fiscal year. In December 2008 the Company paid Dr. Wiedow 30,000 Euros. While the total amount owed does not currently bear interest, the Amendment provides that any late payment shall be subject to interest at an annual rate equal to the German Base Interest Rate (1.6% as of January 1, 2009) plus six percent. In the event that the Company's financial condition improves, the parties can agree to increase and/or accelerate the payments.

The Amendment also modified the royalty payment such that from the date of the Amendment the Company will not only pay Dr. Wiedow a three percent royalty on gross revenues from the Company's sale of products based on the licensed technology but also three percent of the license fees (including upfront and milestone payments and running royalties) received by the Company or its subsidiary from their sublicensing of the licensed technology.

At June 30, 2009 and December 31, 2008, the Company has accrued approximately $843,000 and $846,000, respectively, of licensing fees payable to Dr. Wiedow of which approximately $42,000 is included in current liabilities as of both periods and $801,000 and $804,000, respectively, is included in long-term liabilities. The difference in amounts at June 30, 2009 compared to December 31, 2008 is attributable to the unrealized foreign currency transaction gain described in Note 5.

Dr. Wiedow, who is a director of the Company, beneficially owned approximately 45% of the Company's outstanding common stock as of June 30, 2009.

8. INCOME TAXES


The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Management evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is “more likely than not” that some or all of the deferred tax assets will not be realized. Management has determined that a full valuation allowance against the Company’s net deferred tax assets is appropriate.


There is no material income tax expense recorded for the periods ended June 30, 2009 or 2008, due to the Company's net losses and related changes to the valuation allowance for deferred tax assets.


As of June 30, 2009, the Company has a deferred tax asset and an equal amount of valuation allowance of approximately $1,721,000, relating primarily to federal and foreign net operating loss carryforwards of approximately $363,000 and $1,072,000, respectively, as discussed below, and timing differences related to the recognition of accrued licensing fees of approximately $286,000.




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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2009 (UNAUDITED)

The Company has federal and foreign net operating loss carry forwards in the amount of $1,068,000 and $4,289,000, respectively at June 30, 2009, which is expected to begin expiring in 2025 for federal purpose and has indefinite life for foreign purpose.


Utilization of the net operating losses (“NOL”) carry forwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), as well as similar state and foreign provisions. These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the market value of a company by certain stockholders or public groups. Due to the existence of the valuation allowance, future changes in the Company’s unrecognized tax benefits will not impact its effective tax rate. Any carry forwards that may expire prior to utilization as a result of such limitations will be removed, if applicable, from deferred tax assets with a corresponding reduction of the valuation allowance.


The Company adopted the provisions of Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes — an Interpretation of FASB Statement No. 109” (“FIN 48”) on January 1, 2007. Based on management’s evaluation, the Company concluded that there were no significant uncertain tax positions requiring recognition in its financial statements or related disclosures. Accordingly, no adjustments to recorded tax liabilities or accumulated deficit were required as a result of adopting FIN 48. As of June 30, 2009, there were no increases or decreases to liability for income taxes associated with uncertain tax positions.


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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAUTIONARY STATEMENTS:

This Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company intends that such forward-looking statements be subject to the safe harbors created by such statutes. The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties. Accordingly, to the extent that this Quarterly Report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of the Company, please be advised that the Company's actual financial condition, operating results and business performance may differ materially from that projected or estimated by management in forward-looking statements.

Such differences may be caused by a variety of factors, including but not limited to adverse economic conditions, intense competition, including intensification of price competition and entry of new competitors and products, adverse federal, state and local government regulation, inadequate capital, unexpected costs and operating deficits, increases in general and administrative costs and other specific risks that may be alluded to in this Quarterly Report or in other reports issued by the Company. In addition, the business and operations of the Company are subject to substantial risks that increase the uncertainty inherent in the forward-looking statements. The inclusion of forward looking statements in this Quarterly Report should not be regarded as a representation by management or any other person that the objectives or plans of the Company will be achieved.

Since inception, the Company has generated a relatively minor amount of non-operating revenue from its licensing activities and does not expect to report any significant operating revenue until the successful development and marketing of its planned pharmaceutical and other biotech products. Additionally, after the launch of the Company's products, there can be no assurance that the Company will generate positive cash flow and there can be no assurances as to the level of revenues, if any, the Company may actually achieve from its planned principal operations.

OVERVIEW

The Company specializes in the research, development and marketing of drugs for inflammatory diseases with Elafin as its first project. Management deems Elafin to be one of the most prospective substances in the treatment of serious tissue and muscle damage. Independently conducted animal experiments have indicated that Elafin may have benefits in the treatment of tissue and muscle damage caused by insufficient oxygen supply and therefore may be useful in the treatment of heart attacks, serious injuries and in the course of organ transplants. Other applications have yet to be determined.

The Company intends to implement Elafin as a drug in the treatment of inflammatory diseases, and plans to seek governmental approval in Europe first. Currently, management estimates that it will take approximately four years to achieve its first governmental approval for the use of Elafin as a drug for the first indication.

The Company's success will depend on its ability to prove that Elafin is well tolerated by humans and its efficacy in the indicated treatment. There can be no assurance that the Company will be able to develop feasible production procedures in accordance with Good Manufacturing Practices ("GMP") standards, or that Elafin will receive any governmental approval for its use as a drug in any of the intended applications.

After developing a production procedure for Elafin, Proteo has initiated clinical trials to achieve governmental approval for the use of Elafin as a drug in Europe. For this purpose, Proteo has contracted Eurogentec, an experienced Contract Manufacturing Organization (“CMO”) located in Belgium to produce Elafin in accordance with GMP standards as required for clinical trials.

In September 2006 the Company filed an application with the EMEA (European Medicines Agency) to obtain orphan drug status in the European markets for Elafin to be used in the treatment of pulmonary hypertension. Subsequent to December 31, 2006, the Committee for Orphan Medical Products of the EMEA adopted a positive opinion recommending the granting of orphan medicinal product designation for Elafin for treatment of pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension. The orphan drug designation became effective on March 20, 2007 upon adoption of the recommendation by the European Commission.


13
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In July 2007, the Company entered into an agreement with the University of Alberta, Canada to cooperate in research on Elafin for the treatment of pulmonary diseases in neonates. Proteo will initially provide support for animal experiments with its lead product on newborn rats to be carried out by Dr. Bernard Thebaud, Associate Professor at the Department of Pediatrics and Neonatology and a recognized authority in this area, with profound knowledge of animal models and substantial clinical experience.

In August 2007, the Company's subsidiary entered into an agreement with Minapharm for clinical development, production and marketing of Elafin. We have granted Minapharm the right to exclusively market Elafin in Egypt and certain Middle Eastern and African countries. Proteo received an upfront payment in 2007 and has deferred additional amounts received, and will receive milestone-payments and royalties on net product sales. In addition, Minapharm will take over the funding of clinical research activities for the designated region. In December 2008 the responsible authority in Cairo granted approval for a Phase II clinical trial to study the efficacy of Elafin on kidney transplant patients.

In January 2008 the Company entered into an agreement with Stanford University in California, to cooperate in preclinical studies related to Elafin treatment of pulmonary arterial hypertension. Proteo will provide support for animal experiments conducted by Marlene Rabinovitch, Research Director of the Vera Moulton Wall Center for Pulmonary Vascular Disease at Stanford University who is a renowned expert in the field, and her group at the university.

In August 2008 the Company's subsidiary received the approval for a Phase II clinical trial with Elafin by the German Federal Institute for Drugs and Medical Devices (BfArM). In this randomized, placebo-controlled Phase II trial the effect of Elafin on inflammatory parameters will be investigated in patients undergoing esophagectomy for esophagus carcinoma. The trial will be performed at the Department of General and Thoracic Surgery, University Medical Center Schleswig-Holstein, Campus Kiel. Patient recruitment started in November 2008 and is ongoing. The excellent tolerability of Elafin in human subjects was demonstrated in a Phase I clinical single dose escalating study.

The Company's goal is to obtain the first governmental regulatory approval for the first indication of the initial product in 2012. It should be noted that the first indication, if successfully developed, would have a market potential substantially smaller than the overall market of Elafin for more widespread applications such as for the treatment of cardiac infarction.

RESULTS OF OPERATIONS

OPERATING EXPENSES

The Company's operating expenses for the six month period ended June 30, 2009 were approximately $460,000, a decrease of approximately $2,000 over the same period of the prior year.

The Company's operating expenses for the three month period ended June 30, 2009 were approximately $280,000, an increase of approximately $68,000 over the same period of the prior year. This increase is due primarily to an increase in general and administrative expenses during the current year quarter of approximately $81,000 and a decrease in research and development expenses of approximately $13,000. The increase in general and administrative expenses is primarily due to an increase in professional fees related to public financial reporting in the current year.

INTEREST AND OTHER EXPENSE

Interest and other income (expenses) for the six-month and three-month periods ended June 30, 2009 were approximately $93,000, and $36,000, respectively, an increase of approximately $142,000 and $23,000 over the same periods of the prior year. The increases are due primarily to an increase in the unrealized foreign currency transaction loss described in Note 5 to the Company's condensed consolidated financial statements included elsewhere herein.

INCOME TAXES

There is no material income tax expense recorded for the periods ended June 30, 2009 or 2008, due to the Company's net losses.

As of June 30, 2009, the Company has a deferred tax asset and an equal amount of valuation allowance of approximately $1,721,000, relating primarily to federal and foreign net operating loss carryforwards of approximately $363,000 and $1,072,000, respectively, as discussed below, and timing differences related to the recognition of accrued licensing fees of approximately $286,000.


14
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As of June 30, 2009, the Company had tax net operating loss carryforwards ("NOLs") of approximately $1,068,000 and $4,289,000 (3,053,000 Euros) available to offset future taxable Federal and foreign income, respectively. The Federal NOL expires in varying years through 2025. The foreign net operating loss relates to Germany and does not have an expiration date.

In the event the Company were to experience a greater than 50% change in ownership, as defined in Section 382 of the Internal Revenue Code, the utilization of the Company's tax NOLs could be severely restricted.

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS

We experienced a net gain of approximately $29,000 and $150,000 in foreign currency translation adjustments during the six-month and three-month periods ended June 30, 2009, respectively. This represents a decrease of approximately $114,000 over the six-month period in 2008 and an increase of $91,000 over the three-month period in 2008. The changes are primarily due to a fluctuating U.S. Dollar (our reporting currency)compared to the Euro (our functional currency) during the periods.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception we have raised a total of (i) approximately $4,983,000 from the sale of 20,065,428 shares of our common stock, of which 6,585,487 shares, 300,000 shares and 1,500,000 shares have been sold at $0.40 per share, $0.84 per share and $0.60 per share, respectively, under stock subscription agreements in the amount of approximately $2,035,000, $252,000 and $900,000, respectively, and (ii) $1,419,000 from the sale of 600,000 shares of the Company's non-voting Series A Preferred Stock. The balance of the purchase price for the Series A Preferred Stock is evidenced by a promissory note which, as of June 30, 2009, had a principal balance of $1,910,000. See Note 2 to the condensed consolidated financial statements included elsewhere herein for the payment terms under the promissory note.

The Company has cash approximating $1,254,000 as of June 30, 2009 to support current and future operations. This is an increase of $17,000 over the December 31, 2008 cash balance of approximately $1,237,000.

Management believes that the Company will not generate any significant revenues in the next few years, nor will it have sufficient cash to fund future operations. As a result, the Company's success will largely depend on its ability to secure additional funding through the sale of its common stock, preferred stock and/or debt securities. There can be no assurance, however, that the Company will be able to consummate a debt or equity financing in a timely manner, or on terms favorable to the Company, if at all.

GOING CONCERN

The Company's independent registered public accounting firm stated in their Auditors’ Report included in our Form 10-K for the year ended December 31, 2008 dated March 30, 2009, that the Company will require a significant amount of additional capital to advance the Company's products to the point where they may become commercially viable and has incurred significant losses since inception. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern.

Therefore, the Company will be required to seek additional funds to finance its long-term operations. The successful outcome of future activities cannot be determined at this time and there is no assurance that if achieved, the Company will have sufficient funds to execute its intended business plan or generate positive operating results.

OFF BALANCE SHEET ARRANGEMENTS

The Company does not currently have any off balance sheet arrangements.

CAPITAL EXPENDITURES

None significant.


15
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

A smaller reporting company ("SRC") is not required to provide any information in response to Item 305 of Regulation S-K.

ITEM 4T. CONTROLS AND PROCEDURES

a) Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including to Birge Bargmann our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15 under the Exchange Act, our management, including Birge Bargmann our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2009. Based on that evaluation, Ms. Bargmann concluded that as of June 30, 2009, and as of the date that the evaluation of the effectiveness of our disclosure controls and procedures was completed, our disclosure controls and procedures were effective.

b) Changes in Internal Control Over Financial Reporting

Our management, with the participation of the Chief Executive Officer and Chief Financial Officer, has concluded there were no significant changes in our internal controls over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.


16
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PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

None.

ITEM 1A. RISK FACTORS

Not required for SRCs.

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

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

ITEM 5. OTHER INFORMATION.

None.

ITEM 6. EXHIBITS.

Exhibits:

31.1 Certification of the Chief Executive Officer pursuantto Section 302 of the Sarbanes-Oxley Act of 2002.

[kaubeuhut]

Proteo, Inc./ Proteo Biotech AG:
Klinische Phase 2 Studie mit Elafin bei Herz-Kreislauf-Erkrankungen – University of Edinburgh und Proteo unterzeichnen Vereinbarung


Irvine, CA – Kiel, 23. September 2009 – Die Proteo, Inc. (OTCBB: PTEO; Frankfurter Freiverkehr: WKN: 925981) und ihre 100-prozentige Tochtergesellschaft Proteo Biotech AG gaben heute die Unterzeichnung eines Memorandum of Understanding mit der Universität Edinburgh bekannt.

Im Rahmen einer Kooperation soll an der Universität Edinburgh in einer klinischen Phase II-Studie die Wirkung von Elafin auf die Schädigung und Entzündung des Herzmuskels nach koronaren Bypass-Operationen untersucht werden. Proteos Vorstand, Birge Bargmann, sieht in der Zusammenarbeit mit Edinburgh eine hervorragende Chance, die klinische Entwicklungspipeline des Biotechunternehmens auszubauen. »Wir freuen uns auf eine Zusammenarbeit mit der Universität Edinburgh und sind zuversichtlich, dass wir sehr interessante und viel versprechende klinische Ergebnisse für unser Leadprodukt – Elafin – erhalten werden.«

»Der Kontakt zu dieser Edinburgher Forschungsgruppe besteht schon lange, daher freut es mich besonders, dass dort nun im Rahmen einer Kooperation die klinische Anwendung von Elafin bei Patienten mit Herz-Kreislauf-Erkrankungen geplant ist«, erklärt Professor Oliver Wiedow, Aufsichtsratsvorsitzender der Proteo Biotech AG. »Wir sind optimistisch, dass Elafin den Herzmuskelschaden und die postoperativen Entzündungsprobleme bei unseren Patienten vermindern wird« so Dr. Peter Henriksen, Leiter der Klinischen Studie.

Über Elafin

Proteos Arzneimittelwirkstoff Elafin ist humanidentisch und natürlicher Gegenspieler von zwei hochpotenten gewebezerstörenden Enzymen, Elastase und Proteinase 3, die beide an Entzündungsmechanismen bei einer Vielzahl von Erkrankungen beteiligt sind. Die Eigenschaft von Elafin, die an Entzündungsreaktionen beteiligten Enzyme zu blockieren, macht es zu einem sehr Erfolg versprechenden Wirkstoff für die Behandlung von entzündlichen Lungenerkrankungen und schweren Reperfusionsschäden. Die sehr gute Verträglichkeit von intravenös appliziertem rekombinanten Elafin konnte in einer klinischen Phase I Studie überzeugend dargestellt werden. Eine klinische Studie der Phase II mit Patienten, die sich einer Ösophagektomie bei Ösophaguskarzinom unterziehen, wurde im November 2008 am Universitätsklinikum Schleswig-Holstein, Campus Kiel, gestartet. Untersucht wird der Einfluss von Elafin auf die postoperativen Entzündungsreaktionen. Eine weitere klinische Studie der Phase II mit Elafin wurde bereits genehmigt: Die Minapharm Pharmaceuticals SAE wird in Kairo eine klinischen Studie zur Wirksamkeit von Elafin bei nierentransplantierten Patienten initiieren. Es handelt sich um eine Phase II-Studie zur Verhinderung von akuten und chronischen Organabstoßungsreaktionen (Allograft-Nephropathie), die an der Universität Kairo durchgeführt wird.

Über Proteo

Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Der Schwerpunkt liegt hierbei auf entzündungshemmenden Arzneimitteln, insbesondere auf dem menschlichen Elastase-Inhibitor Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung.

Zukunftsgerichtete Aussagen

Diese Presseinformation enthält bestimmte in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieser Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technischen Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen Pläne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-KSB und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.

Kontakt:
Dr. Barbara Kahlke
Proteo Biotech AG
Am Kiel-Kanal 44
D-24106 Kiel
Email: [e-mail]
Telefon: [phone]
Fax: [phone]

[kaubeuhut]

10-Q 1 proteo_10q-093009.htm PROTEO, INC.

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

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

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


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



FORM 10-Q


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


(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended September 30, 2009

OR

o 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 000-30728

PROTEO, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


NEVADA 88-0292249
(STATE OR OTHER JURISDICTION OF
INCORPORATION OR ORGANIZATION) (I.R.S. EMPLOYER
IDENTIFICATION NO.)

2102 BUSINESS CENTER DRIVE, IRVINE, CALIFORNIA 92612
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)


[phone]
(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 such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o.


Indicate by check mark whether the registrant has submitted electronically and posted on its web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o.

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 definition of "large accelerated filer," "an accelerated filer” and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer o Accelerated filer o

Non-accelerated filer o 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 o No x.

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

CLASS NUMBER OF SHARES OUTSTANDING
Common Stock, $0.001 par value 23,879,350 shares of common stock at September 30, 2009



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PROTEO, INC.
AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)

TABLE OF CONTENTS

Page

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements:
Condensed Consolidated Balance Sheets as of September 30, 2009 (unaudited) and December 31, 2008 3

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three-month and Nine-month Periods Ended September 30, 2009 and 2008, and for the Period From November 22, 2000 (Inception) Through September 30, 2009 4

Unaudited Condensed Consolidated Statements of Cash Flows for the Nine-month Periods Ended September 30, 2009 and 2008, and for the Period From November 22, 2000 (Inception) Through September 30, 2009 5

Notes to Condensed Consolidated Financial Statements (Unaudited) 6

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

Item 3. Quantitative and Qualitative Disclosure About Market Risk 17

Item 4T. Controls and Procedures 17

PART II. OTHER INFORMATION 18

Item 1. Legal Proceedings 18

Item 1A. Risk Factors 18

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 18

Item 3. Defaults Upon Senior Securities 18

Item 4. Submission of Matters to a Vote of Security Holders 18

Item 5. Other Information 18

Item 6. Exhibits 18

SIGNATURES 19




2
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS


ASSETS
September 30, December 31,
2009 2008
(Unaudited)
CURRENT ASSETS
Cash and cash equivalents $ 1,024,226 $ 1,237,450
Research supplies 123,330 114,650
Prepaid expenses and other current assets 339,070 191,599
1,486,626 1,543,699

PROPERTY AND EQUIPMENT, NET 249,828 265,245
$ 1,736,454 $ 1,808,944

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 119,993 $ 138,225
Accrued licensing fees 42,144 42,291
162,137 180,516

LONG TERM LIABILITIES
Deferred revenue 119,348 115,300
Accrued licensing fees 833,376 803,529
952,724 918,829

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Non-voting preferred stock, par value $0.001 per share; 10,000,000
shares authorized; 630,000 and 600,000 shares issued and outstanding as of September 30, 2009 and
December 31, 2008, respectively (Liquidation preference - Note 2) 630 600

Common stock, par value $0.001 per share; 300,000,000
shares authorized; 23,879,350 shares issued and
outstanding 23,880 23,880
Additional paid-in capital 8,567,634 8,567,634
Note receivable for sale of preferred stock (1,771,359 ) (2,245,389 )
Accumulated other comprehensive income 348,844 279,280
Deficit accumulated during development stage (6,548,036 ) (5,916,406 )
Total Proteo, Inc. Stockholders' Equity 621,593 709,599
Noncontrolling Interest - -
Total Stockholders' Equity 621,593 709,599
Total Liabilities and Stockholders' Equity $ 1,736,454 $ 1,808,944



SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

3
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE THREE-MONTH AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH SEPTEMBER 30, 2009

NOVEMBER 22,
2000
(INCEPTION)
THREE MONTHS ENDED NINE MONTHS ENDED THROUGH
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
2009 2008 2009 2008 2009
CONSOLIDATED STATEMENTS OF OPERATIONS

REVENUES $ - $ - $ - $ - $ -

EXPENSES
General and administrative 121,502 100,363 357,044 315,420 4,343,370
Research and development 123,188 124,844 347,734 371,494 2,500,363
244,690 225,207 704,778 686,914 6,843,733
INTEREST AND OTHER INCOME (EXPENSE), NET (19,362 ) 113,767 73,178 64,446 232,723
NET LOSS (264,052 ) (111,440 ) (631,600 ) (622,468 ) (6,611,010 )

LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST - - - - 63,004
NET LOSS ATTRIBUTABLE TO PROTEO, INC. (264,052 ) (111,440 ) (631,600 ) (622,468 ) (6,548,006 )

PREFERRED STOCK DIVIDEND - - (30 ) - (30 )
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (264,052 ) $ (111,440 ) $ (631,630 ) $ (622,468 ) $ (6,548,036 )
BASIC AND DILUTED LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS $ (0.01 ) $ (0.01 ) $ (0.03 ) $ (0.03 )

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 23,879,000 23,879,000 23,879,000 23,879,000

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

NET LOSS ATTRIBUTABLE TO PROTEO, INC. $ (264,052 ) $ (111,440 ) $ (631,600 ) $ (622,468 ) $ (6,548,006 )

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS 40,459 (170,132 ) 69,564 (26,657 ) 348,844
COMPREHENSIVE LOSS $ (223,593 ) $ (281,572 ) $ (562,036 ) $ (649,125 ) $ (6,199,162 )



SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

4
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX-MONTH PERIODS ENDED SEPTEMBER 30, 2009 AND 2008
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH SEPTEMBER 30, 2009


NOVEMBER 22,
2000
(INCEPTION)
NINE MONTHS ENDED THROUGH
SEPTEMBER 30, SEPTEMBER 30,
2009 2008 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (631,600 ) $ (622,468 ) $ (6,548,006 )
Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation 42,375 45,950 377,053
Loss on disposal of equipment - - 4,518
Unrealized foreign currency transaction (gains) losses 29,700 (18,453 ) 213,102
Changes in operating assets and liabilities:
Research supplies (4,360 ) (647 ) (135,052 )
Prepaid expenses and other current assets (135,747 ) 45,538 (325,966 )
Accounts payable and accrued liabilities 3,622 (71,375 ) 95,617
Deferred revenue - - 120,341
Accrued licensing fees - - 660,713
NET CASH USED IN OPERATING ACTIVITIES (696,010 ) (621,455 ) (5,537,680 )

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (19,210 ) (4,884 ) (632,516 )
Cash of reorganized entity - - 27,638
NET CASH USED IN INVESTING ACTIVITIES (19,210 ) (4,884 ) (604,878 )

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock - - 1,792,610
Proceeds from subscribed common stock and issuance
of preferred stock to related party 474,030 1,271,992 5,019,616
NET CASH PROVIDED BY FINANCING ACTIVITIES 474,030 1,271,992 6,812,226
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS 27,966 26,540 354,558
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (213,224 ) 672,193 1,024,226
CASH AND CASH EQUIVALENTS--BEGINNING OF PERIOD 1,237,450 802,745 -
CASH AND CASH EQUIVALENTS--END OF PERIOD $ 1,024,226 $ 1,474,938 $ 1,024,226



SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

5
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2009 (UNAUDITED)

1. NATURE OF BUSINESS AND BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying condensed consolidated balance sheet as of December 31, 2008, which has been derived from audited financial statements, and the accompanying interim condensed consolidated financial statements as of September 30, 2009, for the three-months and nine-months ended September 30, 2009 and 2008 and for the period from November 22, 2000 (Inception) through September 30, 2009 have been prepared by management pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments and accruals) necessary to present fairly the financial condition, results of operations and cash flows of Proteo, Inc. and its wholly owned subsidiary (hereinafter collectively referred to as the "Company") as of and for the periods presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Operating results for the three-months and nine-months ended September 30, 2009 are not necessarily indicative of the results that may be expected for the year ending December 31, 2009 or for any other interim period during such year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2008 filed with the SEC on March 30, 2009.

NATURE OF BUSINESS

The Company intends to develop, manufacture, promote and market pharmaceuticals and other biotech products. The Company is focused on the development of pharmaceuticals based on the human protein Elafin which naturally occurs in human skin, lungs and mammary glands. The Company believes Elafin may be useful in the treatment of cardiac infarction, serious injuries caused by accidents, post surgery damage to tissue, complications resulting from organ transplantations and pulmonary arterial hypertension.

Since its inception, the Company has primarily been engaged in the research and development of its proprietary product Elafin. Once the research and development phase is complete, the Company intends to manufacture and seek the various governmental regulatory approvals for the marketing of Elafin. Management believes that none of its planned products will produce sufficient revenues in the near future. As a result, the Company plans to identify and develop other potential products. There are no assurances, however, that the Company will be able to develop such products, or if produced, that they will be accepted in the marketplace.

The products that the Company is developing are considered drugs or biologics, and hence are governed by the Federal Food, Drug and Cosmetics Act (in the United States) and the regulations of State and various foreign government agencies. The Company's proposed pharmaceutical products to be used by humans are subject to certain clearance procedures administered by the above regulatory agencies.

Proteo, Inc.'s common stock is currently quoted on the OTC Bulletin Board of the Financial Industry Regulatory Authority under the symbol "PTEO".

DEVELOPMENT STAGE AND GOING CONCERN CONSIDERATIONS

The Company has been in the development stage since it began operations on November 22, 2000, and has not generated any significant revenues from operations. Management plans to generate revenues from product sales, but there is no commitment by any persons for purchase of any of the proposed products and there is no assurance of any future revenue. The Company will require substantial additional funding for continuing research and development, obtaining regulatory approvals and for the commercialization of its product. There can be no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.


6
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2009 (UNAUDITED)

DEVELOPMENT STAGE AND GOING CONCERN CONSIDERATIONS (continued)


Management has taken action to address these matters, which include:

· Retention of experienced management personnel with particular skills in the development of such products;



· Attainment of technology to develop biotech products; and



· Raising additional funds through the sale of debt and/or equity securities.


In the absence of significant sales and profits, the Company may seek to raise funds to meet its future working capital requirements through the additional sales of debt and/or equity securities. There is no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.

These circumstances, among others, raise concerns about the Company's ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

CONCENTRATIONS

The Company maintains substantially all of its cash in bank accounts at a German private commercial bank. The Company's bank accounts at this financial institution are presently protected by the voluntary "Deposit Protection Fund of The German Private Commercial Banks". The Company has not experienced any losses in these accounts.

Proteo, Inc.'s operations, including research and development activities and most of its assets are located in Germany. The Company's operations are subject to various political, economic, and other risks and uncertainties inherent in Germany and the European Union.

OTHER RISKS AND UNCERTAINTIES

Proteo, Inc.'s line of future pharmaceutical products being developed by its German subsidiary are considered drugs or biologics, and as such, are governed by the Federal Food, Drug and Cosmetics Act (in the United States) and by the regulations of State agencies and various foreign government agencies. There can be no assurances that the Company will obtain the regulatory approvals required to market its products. The pharmaceutical products under development in Germany will be subject to more stringent regulatory requirements because they are recombinant products for humans. The Company has no experience in obtaining regulatory clearance on these types of products. Therefore, the Company will be subject to the risks of delays in obtaining or failing to obtain regulatory clearance and other uncertainties, including financial, operational, technological, regulatory and other risks associated with an emerging business, including the potential risk of business failure.

The Company is exposed to risks related to fluctuations in foreign currency exchange rates. Management does not utilize derivative instruments to hedge against such exposure.

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements have been prepared in accordance with GAAP and include the accounts of Proteo, Inc. and Proteo Biotech AG, its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

Effective January 1, 2009, the Company adopted new guidance to the Consolidation Topic of the Financial Accounting Standard Board’s (“FASB”) new Accounting Standards Codification (“ASC” or “Codification”). This guidance improves the relevance, comparability and transparency of the financial information that a company provides in its consolidated financial statements by establishing accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This standard requires the Company to classify noncontrolling interests (previously referred to as "minority interest") as part of consolidated net earnings and to include the accumulated amount of noncontrolling interests as part of stockholders' equity.


7
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2009 (UNAUDITED)

PRINCIPLES OF CONSOLIDATION (continued)


The net loss amounts the Company has previously reported are now presented as "Net loss attributable to Proteo, Inc" and, as required by the Codification, earnings per share continues to reflect amounts attributable only to the Company. Similarly, in the presentation of stockholders' equity, the Company distinguishes between equity amounts attributable to the Company's stockholders and amounts attributable to the noncontrolling interest - previously classified as minority interest outside of stockholders' equity. In addition to these financial reporting changes, this guidance provides for significant changes in accounting related to noncontrolling interests; specifically, increases and decreases in the Company's controlling financial interests in consolidated subsidiaries will be reported in equity similar to treasury stock transactions. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. Except for presentation, the implementation of this guidance did not have a material effect on the Company's condensed consolidated financial statements because a substantive contractual arrangement specifies the attribution of net earnings and loss not to exceed the noncontrolling interest.


FAIR VALUE OF FINANCIAL INSTRUMENTS AND CERTAIN OTHER ASSETS/LIABILITIES

The Fair Value Measurements and Disclosures Topic of the ASC requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. Management believes that the carrying amounts of the Company's financial instruments, consisting primarily of cash, accounts payable and accrued expenses, approximate their fair value at September 30, 2009 and December 31, 2008 due to their short-term nature. The Company does not have any assets or liabilities that are measured at fair value on a recurring basis and, during the three-month and nine-month periods ended September 30, 2009 and 2008 and for the period from November 22, 2000 (Inception) through September 30, 2009, did not have any assets or liabilities that were measured at fair value on a non-recurring basis.

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS

Effective September 30, 2009, the Company adopted the FASB’s new Accounting Standard Codification as the single source of authoritative accounting guidance under the Generally Accepted Accounting Principles Topic. The ASC does not create new accounting and reporting guidance, rather it reorganizes GAAP pronouncements into approximately 90 topics within a consistent structure. All guidance in the ASC carries an equal level of authority. Relevant portions of authoritative content, issued by the SEC, for SEC registrants, have been included in the ASC. After the effective date of the Codification, all nongrandfathered, non-SEC accounting literature not included in the ASC is superseded and deemed nonauthoritative. Adoption of the Codification also changed how the Company references GAAP in its condensed consolidated financial statements.


Effective June 30, 2009, the Company adopted new guidance to the Subsequent Events Topic of the FASB ASC. The Subsequent Events Topic establishes general standards of accounting for and disclosure of events that occur after the statement of financial condition date but before financial statements are issued or are available to be issued. Companies are required to disclose the date through which subsequent events were evaluated as well as the date the financial statements were issued or available to be issued. Adoption of this guidance did not have any impact on the Company's condensed consolidated financial statements. The Company evaluated subsequent events through the filing date of our quarterly 10-Q with the Securities and Exchange Commission on November 4, 2009.


In April 2009, the FASB issued additional guidance under the Fair Value Measurements and Disclosures Topic of the ASC. This update relates to determining fair values when there is no active market or where the price inputs being used represent distressed sales. This update provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased. Also included is guidance on identifying circumstances that indicate a transaction is not orderly. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements.


In April 2009, the FASB issued additional guidance under the Financial Instruments Topic of the ASC. This update requires disclosures about the fair value of financial instruments for interim reporting periods as well as in annual financial statements. This update also requires interim financial reporting disclosures in summarized financial information at interim reporting periods. This update is applicable to public companies only. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements.


8
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2009 (UNAUDITED)

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS (continued)

In April 2009, the FASB issued additional guidance under the Investments – Debt and Equity Securities Topic of the ASC. For debt securities, this guidance replaces the management assertion that it has the intent and ability to hold an impaired debt security until recovery with the requirement that management assert if it either has the intent to sell the debt security or if it is more likely than not the entity will be required to sell the debt security before recovery of its amortized cost basis. If management intends to sell the debt security or it is more likely than not the entity will be required to sell the debt security before recovery of its amortized cost basis, an other than temporary impairment (“OTTI”) shall be recognized in earnings equal to the entire difference between the debt security's amortized cost basis and its fair value at the reporting date. After the recognition of an OTTI, the debt security is accounted for as if it had been purchased on the measurement date of the OTTI, with an amortized cost basis equal to the previous amortized cost basis less the OTTI recognized in earnings. The update also changes the presentation in the financial statements of non credit related impairment amounts for instruments within its scope. When the entity asserts it does not have the intent to sell the security and it is more likely than not it will not have to sell the security before recovery of its cost basis, only the credit related impairment losses are to be recognized in earnings and non credit losses are to be recognized in other comprehensive income (“OCI”). Additionally, this update provides for enhanced presentation and disclosure of OTTIs of debt and equity securities in the financial statements. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements.


Effective January 1, 2009, the Company adopted additional guidance to the Intangibles – Goodwill and Other Topic of the FASB ASC. This update amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset. The intent of this update is to improve the consistency between the useful life of a recognized intangible asset and the period of expected cash flows used to measure the fair value of the asset under accounting for business combinations, and other U.S. GAAP. The adoption of this guidance did not have any impact on the Company's condensed consolidated financial statements.


Effective January 1, 2009, the Company adopted new guidance to the Business Combinations Topic of the FASB ASC. This guidance establishes principles and requirements for how the acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree, recognizes and measures the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. The adoption of this guidance had no impact on the Company's condensed consolidated financial statements. The Company will apply this guidance prospectively to any business combination on or after January 1, 2009 as required.


Effective January 1, 2009, the Company adopted additional guidance under the Fair Value Measurement and Disclosures Topic of the FASB ASC, which delays the effective date of the adoption of new guidance under the Fair Value Measurements and Disclosures Topic to January 1, 2009 for certain nonfinancial assets and nonfinancial liabilities. Examples of applicable nonfinancial assets and nonfinancial liabilities to which this update applies include, but are not limited to:


· Nonfinancial assets and nonfinancial liabilities initially measured at fair value in a business combination that are not subsequently remeasured at fair value;

· Reporting units measured at fair value in the goodwill impairment test as described in the Intangibles – Goodwill and Other Topic of the FASB ASC and nonfinancial assets and nonfinancial liabilities measured at fair value in the goodwill impairment test, if applicable; and

· Nonfinancial long-lived assets measured at fair value for impairment assessment under the Property, Plant and Equipment Topic of the FASB ASC.

The adoption of this update had no impact on the Company's condensed consolidated financial statements.


Except as described above, in the opinion of management, neither the FASB, its Emerging Issues Task Force, the AICPA, nor the SEC have issued any additional accounting pronouncements since the Company filed its December 31, 2008, Form 10-K that are expected to have material impact on the Company's future consolidated financial statements.



9
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2009 (UNAUDITED)

FUTURE ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS


In June 2009, the FASB issued Statement of Financial Accounting Standard (“SFAS”) No. 166, Accounting for Transfers of Financial Assets. SFAS No. 166 is a revision to SFAS No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities. SFAS No. 166 will require more information about transfers of financial assets, including securitization transactions, and where companies have continuing exposure to the risks related to transferred financial assets. It eliminates the concept of a "qualifying special-purpose entity", changes the requirements for derecognizing financial assets, and requires additional disclosures. SFAS No. 166 will be effective January 1, 2010 and early adoption is not permitted. The Company is currently evaluating the impact of this statement on the consolidated financial statements.


In June 2009, the FASB issued SFAS No. 167, Amendments to FASB Interpretation No. 46(R). SFAS No. 167 is a revision to the accounting for the consolidation of variable interest entities, and changes how a company determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. The determination is based on, among other things, an entity's purpose and design and a company's ability to direct the activities of the entity that most significantly affect the entity's economic performance. SFAS No. 167 provides for enhanced disclosure requirements and will be effective on January 1, 2010. Early adoption is not permitted. The Company is currently evaluating the impact of this statement on the consolidated financial statements.

2. STOCK SUBSCRIPTIONS RECEIVABLE AND OTHER EQUITY TRANSACTIONS

The Company is authorized to issue 10,000,000 shares of preferred stock, $0.001 par value. Except as described below, the Board of Directors has not designated any liquidation value, dividend rates or other rights or preferences with respect to any shares of preferred stock.

The Board of Directors has designated 750,000 preferred shares as non-voting Series A Preferred Stock. As more fully described in the Company’s Form 8-K filed with the SEC on June 11, 2008, holders of Series A Preferred Stock are entitled to receive preferential dividends, if and when declared, at the per share rate of twice the per share amount of any cash or non-cash dividend distributed to holders of the Company's common stock. If no dividend is distributed to common stockholders, the holders of Series A Preferred Stock are entitled to an annual stock dividend payable at the rate of one share of Series A Preferred Stock for each twenty shares of Series A Preferred Stock owned by each holder of Series A Preferred Stock. The annual stock dividend shall be paid on June 30 of each year commencing in 2009 and no stock dividends will be paid after December 31, 2011. Effective June 30, 2009, the Company declared a stock dividend of 30,000 shares of Series A Preferred Stock payable to its Series A Preferred Stock holders pursuant to the Stock Purchase Agreement.


On June 9, 2008, the Company entered into a Preferred Stock Purchase Agreement ("Stock Purchase Agreement") with FIDEsprit (the “Investor”), a common stockholder and related party. Pursuant to the Stock Purchase Agreement, the Company sold and issued to the Investor 600,000 shares of Series A Preferred Stock at a price of $6.00 per share, for an aggregate price of $3,600,000 ("Purchase Price"). In payment of the Purchase Price, the Investor delivered to the Company a promissory note in the amount of $3,600,000 (the “Note”), and matured on March 31, 2009. The Note is guaranteed by a principal of the Investor (the “Guaranty”). During the nine-month periods ended September 30, 2009 and 2008, the Company received payments approximating $474,000 and $1,272,000, respectively, in connection with the Stock Purchase Agreement. The unpaid principal balance of the Series A Preferred Stock note receivable as of September 30, 2009 approximated $1,771,000. Of this amount approximately $42,000 was received in October 2009. The Series A Preferred Stock note receivable is reported as a reduction of stockholders' equity at September 30, 2009.

On July 6, 2009, the Company and Investor entered into a Forbearance Agreement and General Release (the “Forbearance Agreement”) to renegotiate the terms of the Note. Pursuant to the Forbearance Agreement, the Investor acknowledged and agreed that, as of July 6, 2009, it was obligated to the Company under the Note for the aggregate sum of $1,940,208 (the “Indebtedness”), which represents the unpaid principal amount as of such date plus a late charge equal to three percent (3%) of the unpaid principal amount (approximately $65,000). In exchange for the Company’s agreement to forbear from exercising its rights under the Note and Guaranty, the Investor has agreed to pay the Indebtedness by making monthly payments in the amount of $140,000 commencing on the first business day of September 2009 and continuing on the first business day of each succeeding month thereafter until the Indebtedness is paid in full. As of September 30, 2009, the first installment of $140,000 had not been fully paid, and therefore the Investor was technically in default of the Forbearance Agreement. The Company received approximately $107,000 for the quarter ended September 2009 and the remaining amount due approximating $33,000 in October 2009 relating to amounts due under the Forbearance Agreement in September 2009. The Company has not chosen to enforce the remedies under the Forbearance Agreement or the Stock Purchase Agreement as of the filing of this Form 10-Q.


10
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2009 (UNAUDITED)

2. STOCK SUBSCRIPTIONS RECEIVABLE AND OTHER EQUITY TRANSACTIONS (continued)


The other information required by Item 701 of Regulation S-K relating to the transactions described in the preceding paragraphs were included in the Company's Forms 8-K filed with the SEC on June 11, 2008 and July 8, 2009.

There were no issuances of common stock during the nine-month period ended September 30, 2009, nor have any stock options been granted from inception to date.

3. LOSS PER COMMON SHARE

Basic loss per common share is computed based on the weighted average number of shares outstanding for the period. Diluted loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average shares outstanding assuming all dilutive potential common shares were issued. There were no dilutive potential common shares outstanding at September 30, 2009 or 2008. Additionally, there were no adjustments to net loss to determine net loss available to common shareholders. As such, basic and diluted loss per common share equals net loss, as reported, divided by the weighted average common shares outstanding for the respective periods.

4. FOREIGN CURRENCY TRANSLATION

Assets and liabilities of the Company's German operations are translated from Euros (the functional currency) into U.S. dollars (the reporting currency) at period-end exchange rates; equity transactions are translated at historical rates; and income and expenses are translated at weighted average exchange rates for the period. Net foreign currency exchange gains or losses resulting from such translations are excluded from the results of operations but are included in other comprehensive income and accumulated in a separate component of stockholders' equity. Accumulated comprehensive income approximated $349,000 at September 30, 2009 and $279,000 at December 31, 2008.

5. FOREIGN CURRENCY TRANSACTIONS

The Company records payables related to a certain licensing agreement (Note 7) in accordance with the Foreign Currency Matters Topic of the Codification. Quarterly commitments under such agreement are denominated in Euros. For each reporting period, the Company translates the quarterly amount to U.S. dollars at the exchange rate effective on that date. If the exchange rate changes between when the liability is incurred and the time payment is made, a foreign exchange gain or loss results. The Company has made no payments under this licensing agreement during the nine-month periods ended September 30, 2009 and 2008, and, therefore, has not realized any significant foreign currency exchanges gains or losses during these periods.

Additionally, the Company computes a foreign exchange gain or loss at each balance sheet date on all recorded transactions denominated in foreign currencies that have not been settled. The difference between the exchange rate that could have been used to settle the transaction on the date it occurred and the exchange rate at the balance sheet date is the unrealized gain or loss that is currently recognized. The Company recorded an unrealized foreign currency transaction loss of approximately $30,000 and an unrealized foreign currency transaction gain of $18,000 for the nine-month periods ended September 30, 2009 and 2008, respectively, which are included in interest and other income (expense), net in the accompanying condensed consolidated statements of operations and comprehensive loss.

6. SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION

The Company considers itself to operate in one segment and has not generated any significant operating revenues since its inception. All of the Company's property and equipment is located in Germany.


11
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2009 (UNAUDITED)

7. DR. WIEDOW LICENSE AGREEMENT

On December 30, 2000, the Company entered into a thirty-year license agreement, beginning January 1, 2001 (the "License Agreement"), with Dr. Oliver Wiedow, MD, the owner and inventor of several patents, patent rights and technologies related to Elafin. Pursuant to the License Agreement, the Company agreed to pay Dr. Wiedow an annual license fee of 110,000 Euros for a period of six years. No payments were made through fiscal year 2003. In 2004, the License Agreement was amended to require the Company to make annual payments of 30,000 Euros, to be paid on July 15 of each year, beginning in 2004. Such annual payment could be increased to 110,000 Euros by June 1 of each year based on an assessment of the Company's financial ability to make such payments. In December 2007 the Company paid Dr. Wiedow 30,000 Euros. The License Agreement was again amended by an Amendment Agreement to the License Agreement (the "Amendment") dated December 23, 2008. Pursuant to the Amendment, the Company and Dr. Wiedow have agreed that the Company would pay the outstanding balance of 630,000 Euros to Dr. Wiedow as follows: for fiscal years 2008 to 2012, the Company shall pay Dr. Wiedow 30,000 Euros per year, and for fiscal years 2013 to 2016, the Company shall pay Dr. Wiedow 120,000 Euros per year. The foregoing payments shall be made on or before December 31 of each fiscal year. In December 2008 the Company paid Dr. Wiedow 30,000 Euros. While the total amount owed does not currently bear interest, the Amendment provides that any late payment shall be subject to interest at an annual rate equal to the German Base Interest Rate (1.6% as of January 1, 2009) plus six percent. In the event that the Company's financial condition improves, the parties can agree to increase and/or accelerate the payments.

The Amendment also modified the royalty payment such that from the date of the Amendment the Company will not only pay Dr. Wiedow a three percent royalty on gross revenues from the Company's sale of products based on the licensed technology but also three percent of the license fees (including upfront and milestone payments and running royalties) received by the Company or its subsidiary from their sublicensing of the licensed technology.

At September 30, 2009 and December 31, 2008, the Company has accrued approximately $876,000 and $846,000, respectively, of licensing fees payable to Dr. Wiedow, of which approximately $42,000 is included in current liabilities as of both periods and $834,000 and $804,000, respectively, is included in long-term liabilities. The difference in amounts at September 30, 2009 compared to December 31, 2008 is attributable to the unrealized foreign currency transaction gain described in Note 5.

Dr. Wiedow, who is a director of the Company, beneficially owned approximately 45% of the Company's outstanding common stock as of September 30, 2009.

8. INCOME TAXES


The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Management evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is “more likely than not” that some or all of the deferred tax assets will not be realized. Management has determined that a full valuation allowance against the Company’s net deferred tax assets is appropriate.


There is no material income tax expense recorded for the periods ended September 30, 2009 or 2008, due to the Company's net losses and related changes to the valuation allowance for deferred tax assets.


As of September 30, 2009, the Company has a deferred tax asset and an equal amount of valuation allowance of approximately $1,839,000, relating primarily to federal and foreign net operating loss carryforwards of approximately $387,000 and $1,155,000, respectively, as discussed below, and timing differences related to the recognition of accrued licensing fees of approximately $297,000.


12
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2009 (UNAUDITED)

The Company has federal and foreign net operating loss carry forwards in the amount of $1,138,000 and $4,621,000, respectively at September 30, 2009, which is expected to begin expiring in 2025 for federal purpose and has indefinite life for foreign purpose.


Utilization of the net operating losses (“NOL”) carry forwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), as well as similar state and foreign provisions. These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the market value of a company by certain stockholders or public groups. Due to the existence of the valuation allowance, future changes in the Company’s unrecognized tax benefits will not impact its effective tax rate. Any carry forwards that may expire prior to utilization as a result of such limitations will be removed, if applicable, from deferred tax assets with a corresponding reduction of the valuation allowance.


Based on management’s evaluation of uncertainty in income taxes, the Company concluded that there were no significant uncertain tax positions requiring recognition in its financial statements or related disclosures. Accordingly, no adjustments to recorded tax liabilities or accumulated deficit were required. As of September 30, 2009, there were no increases or decreases to liability for income taxes associated with uncertain tax positions.


9. MANUFACTURING AGREEMENT


During the three months ended September 30, 2009, the Company entered into a contract for a third party to produce certain research supplies. The total contract price is 275,900 Euros, half of which was due upon signing and the other half due upon completion of production. The initial payment of approximately $201,000 has been included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheet at September 30, 2009.



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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAUTIONARY STATEMENTS:

This Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company intends that such forward-looking statements be subject to the safe harbors created by such statutes. The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties. Accordingly, to the extent that this Quarterly Report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of the Company, please be advised that the Company's actual financial condition, operating results and business performance may differ materially from that projected or estimated by management in forward-looking statements.

Such differences may be caused by a variety of factors, including but not limited to adverse economic conditions, intense competition, including intensification of price competition and entry of new competitors and products, adverse federal, state and local government regulation, inadequate capital, unexpected costs and operating deficits, increases in general and administrative costs and other specific risks that may be alluded to in this Quarterly Report or in other reports issued by the Company. In addition, the business and operations of the Company are subject to substantial risks that increase the uncertainty inherent in the forward-looking statements. The inclusion of forward looking statements in this Quarterly Report should not be regarded as a representation by management or any other person that the objectives or plans of the Company will be achieved.

Since inception, the Company has generated a relatively minor amount of non-operating revenue from its licensing activities and does not expect to report any significant operating revenue until the successful development and marketing of its planned pharmaceutical and other biotech products. Additionally, after the launch of the Company's products, there can be no assurance that the Company will generate positive cash flow and there can be no assurances as to the level of revenues, if any, the Company may actually achieve from its planned principal operations.

OVERVIEW

The Company specializes in the research, development and marketing of drugs for inflammatory diseases with Elafin as its first project. Management deems Elafin to be one of the most prospective substances in the treatment of serious tissue and muscle damage. Independently conducted animal experiments have indicated that Elafin may have benefits in the treatment of tissue and muscle damage caused by insufficient oxygen supply and therefore may be useful in the treatment of heart attacks, serious injuries and in the course of organ transplants. Other applications have yet to be determined.

The Company intends to implement Elafin as a drug in the treatment of inflammatory diseases, and plans to seek governmental approval in Europe first. Currently, management estimates that it will take approximately four years to achieve its first governmental approval for the use of Elafin as a drug for the first indication.

The Company's success will depend on its ability to prove that Elafin is well tolerated by humans and its efficacy in the indicated treatment. There can be no assurance that the Company will be able to develop feasible production procedures in accordance with Good Manufacturing Practices ("GMP") standards, or that Elafin will receive any governmental approval for its use as a drug in any of the intended applications.

After developing a production procedure for Elafin, Proteo has initiated clinical trials to achieve governmental approval for the use of Elafin as a drug in Europe. For this purpose, Proteo has contracted Eurogentec, an experienced Contract Manufacturing Organization (“CMO”) located in Belgium to produce Elafin in accordance with GMP standards as required for clinical trials.


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In August 2007, the Company's subsidiary entered into an agreement with Minapharm for clinical development, production and marketing of Elafin. The Company has granted Minapharm the right to exclusively market Elafin in Egypt and certain Middle Eastern and African countries. Proteo received an upfront payment in 2007 and has deferred additional amounts received, and will receive milestone-payments and royalties on net product sales. In addition, Minapharm will take over the funding of clinical research activities for the designated region. In December 2008 the responsible authority in Cairo granted approval for a Phase II clinical trial to study the efficacy of Elafin on kidney transplant patients. The commencement of the trial is scheduled for year- end.

In January 2008, the Company entered into an agreement with Stanford University in California, to cooperate in preclinical studies related to Elafin treatment of pulmonary arterial hypertension. Proteo provides support for animal experiments that are currently conducted by Marlene Rabinovitch, Research Director of the Vera Moulton Wall Center for Pulmonary Vascular Disease at Stanford University who is a renowned expert in the field, and her group at the university.

In August 2008, the Company's subsidiary received the approval for a Phase II clinical trial with Elafin by the German Federal Institute for Drugs and Medical Devices (BfArM). In this randomized, placebo-controlled Phase II trial the effect of Elafin on inflammatory parameters will be investigated in patients undergoing esophagectomy for esophagus carcinoma. The trial will be performed at the Department of General and Thoracic Surgery, University Medical Center Schleswig-Holstein, Campus Kiel. Patient recruitment started in November 2008 and is ongoing. The excellent tolerability of Elafin in human subjects was demonstrated in a Phase I clinical single dose escalating study. Approximately 40% of the patients have been treated so far.


In September 2009, the Company’s subsidiary has signed a Memorandum of Understanding with the University of Edinburgh. Within the framework of collaboration, it is intended to investigate the effect of Elafin on the damage and inflammation of cardiac muscle after coronary bypass operations in a Phase II clinical trial at the University of Edinburgh.

The Company's goal is to obtain the first governmental regulatory approval for the first indication of the initial product in 2012. It should be noted that the first indication, if successfully developed, would have a market potential substantially smaller than the overall market of Elafin for more widespread applications such as for the treatment of cardiac infarction.

RESULTS OF OPERATIONS

OPERATING EXPENSES

The Company's operating expenses for the nine-month period ended September 30, 2009 were approximately $705,000, an increase of approximately $18,000 over the same period of the prior year. The Company's operating expenses for the three-month period ended September 30, 2009 were approximately $245,000, an increase of approximately $19,000 over the same period of the prior year. This increase is due primarily to an increase in general and administrative expenses during the current year quarter of approximately $21,000 and a decrease in research and development expenses of approximately $2,000. The increase in general and administrative expenses is primarily due to an increase in professional fees related to public financial reporting in the current year.

INTEREST AND OTHER EXPENSE

Net interest and other income (expenses) for the nine-month and three-month periods ended September 30, 2009 were approximately $73,000, and ($19,000), respectively, an increase/(decrease) of approximately $9,000 and $(133,000) over the same periods of the prior year. The changes are due primarily to fluctuating foreign currency exchange rates resulting in unrealized foreign currency transaction losses, as described in Note 5 to the Company's condensed consolidated financial statements included elsewhere herein.

INCOME TAXES

There is no material income tax expense recorded for the periods ended September 30, 2009 or 2008, due to the Company's net losses.

As of September 30, 2009, the Company has a deferred tax asset and an equal amount of valuation allowance of approximately $1,839,000, relating primarily to federal and foreign net operating loss carryforwards of approximately $387,000 and $1,155,000, respectively, as discussed below, and timing differences related to the recognition of accrued licensing fees of approximately $297,000.


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The Company has federal and foreign net operating loss carry forwards in the amount of $1,138,000 and $4,621,000, respectively at September 30, 2009. The Federal NOL expires in varying years through 2025. The foreign net operating loss relates to Germany and does not have an expiration date.

In the event the Company were to experience a greater than 50% change in ownership, as defined in Section 382 of the Internal Revenue Code, the utilization of the Company's tax NOLs could be severely restricted.

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS

We experienced a net gain of approximately $70,000 and $40,000 in foreign currency translation adjustments during the nine-month and three-month periods ended September 30, 2009, respectively. This represents an increase of approximately $96,000 over the nine-month period in 2008 and an increase of $211,000 over the three-month period in 2008. The changes are primarily due to a fluctuating U.S. Dollar (our reporting currency) compared to the Euro (our functional currency) during the periods.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception we have raised a total of (i) approximately $4,983,000 from the sale of 20,065,428 shares of our common stock, of which 6,585,487 shares, 300,000 shares and 1,500,000 shares have been sold at $0.40 per share, $0.84 per share and $0.60 per share, respectively, under stock subscription agreements in the amount of approximately $2,035,000, $252,000 and $900,000, respectively, and (ii) $1,829,000 from the sale of 600,000 shares of the Company's non-voting Series A Preferred Stock. The balance of the purchase price for the Series A Preferred Stock is evidenced by a promissory note which, as of September 30, 2009, had a principal balance of $1,833,000. See Note 2 to the condensed consolidated financial statements included elsewhere herein for the payment terms under the promissory note.

The Company has cash approximating $1,024,000 as of September 30, 2009 to support current and future operations. This is a decrease of $213,000 over the December 31, 2008 cash balance of approximately $1,237,000.

Management believes that the Company will not generate any significant revenues in the next few years, nor will it have sufficient cash to fund future operations. As a result, the Company's success will largely depend on its ability to secure additional funding through the sale of its common stock, preferred stock and/or debt securities. There can be no assurance, however, that the Company will be able to consummate a debt or equity financing in a timely manner, or on terms favorable to the Company, if at all.

GOING CONCERN

The Company's independent registered public accounting firm stated in their Auditors’ Report included in the Company’s Form 10-K for the year ended December 31, 2008 dated March 30, 2009, that the Company will require a significant amount of additional capital to advance the Company's products to the point where they may become commercially viable and has incurred significant losses since inception. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern. Therefore, the Company will be required to seek additional funds to finance its long-term operations. The successful outcome of future activities cannot be determined at this time and there is no assurance that if achieved, the Company will have sufficient funds to execute its intended business plan or generate positive operating results.

OFF BALANCE SHEET ARRANGEMENTS

The Company does not currently have any off balance sheet arrangements.

CAPITAL EXPENDITURES

None significant.


16
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

A smaller reporting company ("SRC") is not required to provide any information in response to Item 305 of Regulation S-K.

ITEM 4T. CONTROLS AND PROCEDURES

a) Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including to Birge Bargmann our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15 under the Exchange Act, our management, including Birge Bargmann our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2009. Based on that evaluation, Ms. Bargmann concluded that as of September 30, 2009, and as of the date that the evaluation of the effectiveness of our disclosure controls and procedures was completed, our disclosure controls and procedures were effective.

b) Changes in Internal Control Over Financial Reporting

Our management, with the participation of the Chief Executive Officer and Chief Financial Officer, has concluded there were no significant changes in our internal controls over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.


17
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PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.


None.

ITEM 1A. RISK FACTORS


Not required for SRCs.

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


None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES.


None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.


None.

ITEM 5. OTHER INFORMATION.


None.

ITEM 6. EXHIBITS.


Exhibits:

31.1 Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2 Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.




18
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SIGNATURES

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


PROTEO, INC.

November 4, 2009 By: /s/ Birge Bargmann
Birge Bargmann
Principal Executive Officer and Chief Financial Officer
(signed both as an Officer duly authorized to sign on behalf of the Registrant and Principal Financial Officer and Chief Accounting Officer)





19
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[kaubeuhut]

http://www.finanznachrichten.de/nachrichten-2009-11/15478372…

[RTLOLDY]

Antwort auf Beitrag Nr.: 38.392.760 von kaubeuhut am 16.11.09 10:34:45

Muss man denn "Alles" selber machen.

http://www.finanznachrichten.de/nachrichten-2009-11/15478372…" target="_blank" rel="nofollow ugc noopener">http://www.finanznachrichten.de/nachrichten-2009-11/15478372…

[kaubeuhut]

Proteo, Inc./Proteo Biotech AG: Europäische Arzneimittelzulassungsbehörde EMEA empfiehlt Orphan Drug Status für Elafin zur Behandlung des Ösophaguskarzinoms


Irvine, CA – Kiel, 16. November 2009 Proteo, Inc. (OTCBB: PTEO; WKN: 925981) und ihre hundertprozentige Tochtergesellschaft Proteo Biotech AG gaben heute bekannt:

Das Committee for Orphan Medical Products (COMP) der Europäischen Arzneimittelzulassungsbehörde (EMEA) hat die Empfehlung abgegeben, Proteos Wirkstoff Elafin den Orphan Drug Status zur Behandlung des Ösophaguskarzinoms zu erteilen. Der Orphan Drug Status wird wirksam, sobald die Europäische Kommission dieses Votum bestätigt. Dies wird noch im vierten Quartal 2009 erwartet. Im Jahr 2007 wurde der Orphan Drug Status bereits zur Behandlung der pulmonalen arteriellen Hypertonie (PAH) und der chronisch thromboembolischen pulmonalen Hypertonie mit Elafin erteilt. Der neueste Beschluss verdeutlicht erneut das große therapeutische Potential dieses Wirkstoffs.

Der Orphan Drug Status sichert einem Wirkstoff Marktexklusivität innerhalb der EU für eine Dauer von bis zu 10 Jahren nach Arzneimittelzulassung zur Behandlung der entsprechenden Erkrankung. Darüber hinaus kann ein vereinfachtes, beschleunigtes und kostengünstigeres Zulassungsverfahren sowie die beratende Begleitung der EMEA bis zur Zulassung als Arzneimittel in Anspruch genommen werden. Zurzeit werden im Rahmen einer Phase II Studie Patienten mit Elafin behandelt, die sich einer Ösophagektomie bei Ösophaguskarzinom unterziehen. Eine Folgestudie nach Studienabschluss in 2010 ist bereits in Planung.

Über Elafin:

Proteos Arzneimittelwirkstoff Elafin ist humanidentisch und natürlicher Gegenspieler von zwei hochpotenten gewebezerstörenden Enzymen, Elastase und Proteinase 3, die beide an Entzündungsmechanismen bei einer Vielzahl von Erkrankungen beteiligt sind. Die Eigenschaft von Elafin, die an Entzündungsreaktionen beteiligten Enzyme zu blockieren, macht es zu einem sehr Erfolg versprechenden Wirkstoff für die Behandlung von Entzündungsreaktionen wie z.B. verschiedenen entzündlichen Lungenerkrankungen und schweren Reperfusionsschäden.

Klinische Entwicklung:

Die sehr gute Verträglichkeit von intravenös appliziertem rekombinanten Elafin konnte in einer klinischen Phase I Studie überzeugend dargestellt werden. Eine klinische Studie der Phase II mit Patienten, die sich einer Ösophagektomie bei Ösophaguskarzinom unterziehen, wurde im November 2008 am Universitätsklinikum Schleswig-Holstein, Campus Kiel, gestartet. Untersucht wird der Einfluss von Elafin auf die postoperativen Entzündungsreaktionen. Eine weitere klinische Studie der Phase II mit Elafin wurde bereits genehmigt: Die Minapharm Pharmaceuticals SAE wird in Kairo eine klinischen Studie zur Wirksamkeit von Elafin bei nierentransplantierten Patienten initiieren. Es handelt sich um eine Phase II-Studie zur Verhinderung von akuten und chronischen Organabstoßungsreaktionen (Allograft-Nephropathie), die an der Universität Kairo durchgeführt wird. Im Rahmen einer Kooperation mit der Universität Edinburgh soll in einer weiteren Phase II-Studie die Wirkung von Elafin auf die Schädigung und Entzündung des Herzmuskels nach koronaren Bypass-Operationen untersucht werden.

Über Proteo:

Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Der Schwerpunkt liegt hierbei auf entzündungshemmenden Arzneimitteln, insbesondere auf dem menschlichen Elastase-Inhibitor Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung (www.proteo.de).

Zukunftsgerichtete Aussagen

Diese Presseinformation enthält bestimmte in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieser Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technischen Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen Pläne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-KSB und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.

Kontakt:
Dr. Barbara Kahlke
Proteo Biotech AG
Am Kiel-Kanal 44
D-24106 Kiel
Email: [e-mail]
Telefon: [phone]
Fax: [phone]


Zurück zur letzten Seite

[MANBACH]

Quelle (22.12.2009) :

http://www.finma.ch/d/sanktionen/vorsorgliche-massnahmen/unt…

"...bei Unterstellungen

Neben der Aufsicht über bewilligte Institute hat die FINMA die Aufgabe, gegen Gesellschaften oder Personen, die ohne entsprechende Bewilligung eine in den Aufsichtsgesetzen genannte Tätigkeit ausüben, Massnahmen zu ergreifen. In solchen Fällen kann die FINMA eine unabhängige und fachkundige Person damit beauftragen, einen aufsichtsrechtlich relevanten Sachverhalt abzuklären (Untersuchungsbeauftragte oder Untersuchungsbeauftragter). Die FINMA informiert über einzelne Verfahren, wenn ein besonderes aufsichtsrechtliches Bedürfnis besteht, insbesondere wenn die Information zum Schutz der Marktteilnehmerinnen und -teilnehmer oder der Beaufsichtigten, zur Berichtigung falscher oder irreführender Informationen oder zur Wahrung des Ansehens des Finanzplatzes Schweiz nötig ist.

Nachstehend veröffentlicht die FINMA eine Liste mit Gesellschaften und Personen, bei denen eine Untersuchungsbeauftragte oder ein Untersuchungsbeauftragter eingesetzt und im Handelsregister eingetragen wurde. Der Eintrag in der Liste bedeutet nicht zwangsläufig, dass die ausgeübte Tätigkeit illegal ist. Hingegen sollen die Anleger darauf aufmerksam gemacht werden, dass die FINMA bei den aufgeführten Gesellschaften oder Personen eine Untersuchung zur Frage der Unterstellungspflicht durchführt. Die Liste enthält die Namen der betroffenen Gesellschaften oder Personen, das Datum des jeweiligen Eintrages sowie weitere Informationen im Interesse des Anlegerschutzes. Betroffene Gesellschaften oder Personen werden von der Liste gestrichen, sobald die notwendigen Abklärungen und allfälligen Anpassungen vorgenommen wurden. Soweit eine bewilligungspflichtige Tätigkeit festgestellt und in diesem Zusammenhang eine Liquidation oder ein Konkurs angeordnet werden musste, erfolgt eine separate Publikation.

Unterstellungsverfahren :

... Biotech Development (Schweiz) AG (04.11.2009) ...

... FID Esprit AG, c/o Dr. Pete Hirsch (28.08.2009) ..."

***********************************************************************************************************

Quelle (22.12.2009)

http://www.finma.ch/d/sanktionen/vorsorgliche-massnahmen/unt…

"Name der Gesellschaft / Person: Biotech Development (Schweiz) AG, Schlyffistrasse 17f, 8806 Bäch

Datum der Massnahmen: 28. Oktober 2009

Untersuchungsbeauftragte/r: Dr. Werner Erismann, Arnold Wehinger Kaelin & Ferrari, Riesbachstrasse 52, 8008 Zürich

Bemerkungen: Der Untersuchungsbeauftragte wurde ermächtigt, allein für die Gesellschaft zu handeln. Den bisherigen Organen wurde untersagt, ohne Zustimmung des Untersuchungsbeauftragten weitere Rechtshandlungen vorzunehmen."

***********************************************************************************************************

http://www.hra.sz.ch/cgi-bin/fnrGet.cgi?fnr=1303014574&amt=1…

***********************************************************************************************************

Quelle (22.12.2009) :

http://www.finma.ch/d/sanktionen/vorsorgliche-massnahmen/unt…

"Name der Gesellschaft / Person: FID Esprit AG, c/o Dr. Pete Hirsch, Schlyffistrasse 17f, 8806 Bäch

Datum der Massnahmen: 20. August 2009

Untersuchungsbeauftragte/r: Dr. Werner Erismann, Arnold Wehinger Kaelin & Ferrari, Riesbachstrasse 52, 8008 Zürich

Bemerkungen: Der Untersuchungsbeauftragte wurde ermächtigt, allein für die Gesellschaft zu handeln. Den bisherigen Organen wurde untersagt, ohne Zustimmung des Untersuchungsbeauftragten weitere Rechtshandlungen vorzunehmen."

***********************************************************************************************************

Quelle (22.12.2009) :

http://www.hra.sz.ch/cgi-bin/fnrGet.cgi?fnr=0203026560&amt=1…

"... FID Esprit AG in Liquidation ...

... Mit Verfügung vom 9.12.2009 hat der Einzelrichter des Bezirksgerichts Höfe über die Gesellschaft mit Wirkung ab dem 9.12.2009, 14.30 Uhr, den Konkurs eröffnet; die Gesellschaft ist aufgelöst ..."

[MANBACH]

Frohe Weihnachten

[kaubeuhut]

Absolut unwichtig! Fuer den vorgegebenen Handlungsstrang voellig logisch und konsequent.

[kaubeuhut]

Mit Verfügung vom 16.12.2009 hat das Bezirksgericht Höfe seine Verfügung vom 9.12.2009 betreffend die Konkurseröffnung widerrufen. Die Gesellschaft besteht entsprechend den früheren Eintragungen weiter.

[niemwolf]

Antwort auf Beitrag Nr.: 38.713.977 von kaubeuhut am 12.01.10 02:48:16

FID Esprit AG in Liquidation. Mit Verfügung vom 21.12.2009
hat die Eidgenössische Finanzmarktaufsicht FINMA mit Wirkung ab
22. Dezember 2009, 08.00 Uhr über die Gesellschaft den Konkurs
eröffnet; die Gesellschaft ist aufgelöst.

Aber der Nachfolger ist ja schon längst dabei. Nicht wahr, AK?

[kaubeuhut]

Auch das ist schon wieder überholt. Die entsprechende Veröffentlichung sollte in den nächsten Tagen folgen.

[mfs260151]

Antwort auf Beitrag Nr.: 38.721.276 von kaubeuhut am 12.01.10 20:25:42

habe ich etwas überlesen oder wurden noch keine entsprechenden Veröffentlichungen gemacht??

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: auf eigenen Wunsch des Users

[mylastlovestory]

Guten Tag, ich finde mal wieder die Bilanz zum Q4 nicht. Ich hab sie überhaupt noch nie finden können, außer hier im Chatroom. Cowboyhut lass dich nicht ärgern und stell sie bitte hier rein. Danke.

Dann wollte ich fragen, wie lange eine Phase 2 Studie überhaupt dauern darf? Andere Unternehmen schaffen das in 30 Tagen (habe ich schon öfters gehört), bei Proteo wird das wohl ein Jahresprojekt, Hallo? sind die Herrschaften in Kiel überhaupt noch da? Die Homepage gibt gar nichts her....NO NEWS AT ALL.... Antworten erbeten, Best regards

[kaubeuhut]

Antwort auf Beitrag Nr.: 38.875.368 von mylastlovestory am 03.02.10 21:17:37

Pressemitteilung

Proteo, Inc./Proteo Biotech AG: Orphan Drug Designation für Elafin zur Behandlung des Ösophaguskarzinoms

Irvine, CA – Kiel, 4. Februar, 2010 – Proteo, Inc. (OTCBB: PTEO; WKN: 925981) und ihre hundertprozentige Tochtergesellschaft Proteo Biotech AG gaben heute bekannt:

Die Europäische Kommission hat auf Empfehlung der europäischen Arzneimittelagentur EMEA dem von Proteo entwickelten Protease-Inhibitor Elafin die Orphan Drug Designation für die Behandlung des Ösophaguskarzinoms zuerkannt. Die Orphan Drug Designation der EU Kommission gewährleistet ein exklusives Vermarktungsrecht innerhalb der Europäischen Union für einen Zeitraum von bis zu zehn Jahren nach Arzneimittelzulassung. Zudem ermöglicht die Einstufung als Orphan-Drug eine beschleunigte Zulassung in allen Staaten der EU.

Die sehr gute Verträglichkeit von Elafin konnte in einer klinischen Phase I Studie überzeugend dargestellt werden. Die Substanz wird zurzeit in einer klinischen Phase II Studie zur Behandlung des Ösophaguskarzinoms im Rahmen der Ösophagektomie erprobt.

Über Proteo:

Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Der Schwerpunkt liegt hierbei auf entzündungshemmenden Arzneimitteln, insbesondere auf dem menschlichen Elastase-Inhibitor Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung (www.proteo.de).

Zukunftsgerichtete Aussagen


Diese Presseinformation enthält bestimmte in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen "safe harbor" (Haftungsausschluss). Alle Aussagen in dieser Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technischen Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen Pläne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-K und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.

Weitere Informationen: www.proteo.de

Kontakt:

Dr. Barbara Kahlke
Proteo Biotech AG
Am Kiel-Kanal 44
D-24106 Kiel
Email: [e-mail]
Telefon: [phone]
Fax: [phone]

[kaubeuhut]

Antwort auf Beitrag Nr.: 38.875.368 von mylastlovestory am 03.02.10 21:17:37

Phase II in dreissig (30) Tagen? Klar, habe ich auch schon gehört. Bei der Zulassung von Niesspulver.

[mylastlovestory]

...ja die News ist gut, wie lange braucht denn Proteo um Phase 2 abzuschließen?
"Ösophaguskarzinoms im Rahmen der Ösophagektomie" da kommt nicht gleich jeder mit, um was es hier geht. Hab mal gegoogelt, damit die paar Leser des Threads auch wissen was Proteo macht und wie groß der Markt überhaupt ist oder sein kann ( Quelle: Wikipedia Ausschnitte).

Keine Bilanz? Hat Proteo noch Kohlen? Bis zur Zulassung braucht es wohl noch viel Kapital oder?

Nun gleich die Ausschnitte Wikipedia, ich glaube, damit die Leute wissen was los ist, eine News kann kurz sein aber auch aufklärend lang. Wer die Aktien schon zehn Jahre hat oder kaufen möchte nimmt sich die Zeit undliest es auch, was ist schon eine Stunde?
Na denn, mein Eindruck: warum soll Proteo, im Erfolgsfall, damit kein Geld verdienen können?

Aber etwas mehr Gas geben kann nicht schaden, oder klemmt der Gaspedal wie bei Toyota? Gerne gebe ich mein sehr günstig ab.....

So könnte für mich eine aufklärende News in etwa aussehen..., dadurch entsteht Phantasie....


WIKIPEDIA
Der Speiseröhrenkrebs oder das Ösophaguskarzinom ist eine seltene maligne Neoplasie des Oesophagusepithels. Am häufigsten sind Männer über 55 Jahre betroffen. Die Aussicht auf vollständige Heilung von Speiseröhrenkrebs ist gewöhnlich klein, aber sie wird umso besser, je früher der Krebs erkannt wird. Generell unterscheidet man beim Ösophaguskarzinom zwischen dem Plattenepithelkarzinom (ca. 80 %) und dem Adenokarzinom (ca. 20 %, Tendenz steigend)
Man unterscheidet grundsätzlich zwei verschiedene Formen des Speiseröhrenkrebses, das sogenannte Adenokarzinom und das Plattenepithelkarzinom. Diese unterscheiden sich hinsichtlich ihres feingeweblichen Bildes (Histologie), ihrer Ursachen (Ätiologie), ihrer Lokalisation (obere, mittlere, untere Speiseröhre) und ihrer Genetik, etc. Die sog. Adenokarzinome, welche in der westlichen Welt an Häufigkeit zunehmen, entstehen in der unteren Speiseröhre, auf dem Boden einer Refluxerkrankung (saurer Rückfluss in die Speiseröhre). Als Vorstufe (Präkanzerose) wird der sogenannte Barrett-Ösophagus (früher Endobrachyösophagus) angesehen. Die Plattenepithelkarzinome entstehen in jeder Lokalisation der Speiseröhre (cervikal = am Hals; suprabifurkal = oberhalb der Gabelung der Luftröhre, infrabifurkal = unterhalb der Gabelung der Luftröhre). Als wesentliche Hauptursachen für das Plattenepithelkarzinom werden Alkohol und Rauchen angenommen.
Der genaue Grund für Speiseröhrenkrebs ist unbekannt. Er kommt häufiger im fernen Osten als in Europa vor, was wahrscheinlich an den Ess- und Trinkgewohnheiten liegt (In Asien wird beispielsweise viel heißer Tee konsumiert. Dabei ist weniger der Tee karzinogen, sondern die durch die Hitze entstehenden häufigen Verbrennungen). Fettreiche Nahrung erhöht das Risiko Speiseröhrenkrebs zu bekommen ebenso wie protein- und kalorienarme Kost. Auch Alkoholkonsum, Nitrosamineinfluss und Rauchen sind als Risikofaktoren für diese Art von Krebs gesichert. Hinzu kommen Faktoren, die Speiseröhrenkrebs wahrscheinlicher machen, einschließlich gastro-ösophagealer Refluxerkrankung (Sodbrennen), ausgelöst durch einen zu niedrigen Muskeltonus des unteren Oesophagussphinkters (verursacht durch Nikotin, Alkohol, Koffein, fettreiche Ernährung und diverse Medikamente). Eine fakultative (mögliche) Präkanzerose für das Öesophaguskarzinom stellt das Barrett-Syndrom dar.
Die Symptome sind meist uncharakteristisch und treten erst spät auf. Das Kardinalsymptom ist die Dysphagie (Schluckbeschwerden - beim Essen kann es sich anfühlen, als ob der Bissen im Hals oder hinter den Rippen stecken bleiben würde). Patienten können Schwierigkeiten damit haben, feste Nahrung zu schlucken, später kann auch weiche Nahrung zum Problem werden und eventuell auch das Trinken.

Häufige Symptome sind ein brennendes Gefühl beim Schlucken von Essen, Herzrasen beim Trinken von heißen Getränken, andauernder Schmerz hinter den Rippen, Gewichtsverlust, Husten und Heiserkeit.

Eine Obstruktion (Verengung) der Speiseröhre tritt erst spät oder gar nicht ein, da der Tumor sich in die Längsrichtung ausbreitet. Späte Symptome schließen das Aussondern von Speichel, Ausspucken von unverdauter Nahrung und Gewichtsverlust ein. Lungenentzündungen, ausgelöst durch Flüssigkeit, die in die Luftröhre geraten ist, können auftreten (Aspiration). Heiserkeit und Husten können ebenfalls auftreten, wenn anderes Gewebe nahe der Speiseröhre von Krebs befallen wurde. Die Symptome des Krebsbefalls, der sich auf andere Bereiche ausgebreitet hat, hängen davon ab, wo der Krebs sich ausbreitet.

Speiseröhrenkrebs breitet sich rapide aus und wird meist in späten Stadien diagnostiziert. Dies liegt vor allem daran, dass sich das Karzinom meist in Längsrichtung ausbreitet und so eine Obstruktion erst spät (meist zu spät) auftritt. Verbesserte Behandlungen haben geholfen, die Lebenserwartung und Lebensqualität von Menschen mit dieser Krankheit zu erhöhen.

Die wichtigste Maßnahme zur Diagnosestellung ist eine Spiegelung (Endoskopie) der Speiseröhre. Diese wird meist im Rahmen einer kombinierten Ösophago-Gastro-Duodenoskopie (Spiegelung von Speiseröhre, Magen und Zwölffingerdarm) durchgeführt. Nachdem ein Betäubungsmittel verabreicht wurde, wird ein dünner, flexibler Schlauch in die Speiseröhre eingeführt. Von suspekten Bereichen werden dabei Biopsien entnommen und feingeweblich von einem Pathologen untersucht.

Eine Barium-Röntgenuntersuchung während des Schluckvorgangs erlaubt es, Flüssigkeit zu beobachten, die in der Speiseröhre nach unten transportiert wird. Dies kann helfen, Größe, Verfassung und Lage der Geschwulst zu beobachten.

Eine endoskopische Ultraschalluntersuchung kann die Tiefe des Geschwürs bestimmen und liefert weitere Informationen für die Behandlung. Bei der Endoskopie kann ebenfalls eine Gewebeprobe entnommen (Biopsie) und im Labor untersucht werden.

Bluttests und andere Röntgenuntersuchungen können dazu dienen festzustellen, ob sich das Krebsgeschwür auch außerhalb der Speiseröhre ausgebreitet hat.

Eine Bronchoskopie wird normalerweise durchgeführt, um festzustellen, ob ein Befall der Luftröhre vorliegt. Andere Tests, die eine mögliche Ausbreitung (Metastasen) des Tumors nachweisen, sind z. B. die Computertomographie der Brust, des Abdomen und des Beckens und die Positronen-Emissions-Tomographie. Ein Knochenszintigramm kann aufgenommen werden, wenn der Verdacht besteht, dass Knochen befallen sind.

Die Behandlung hängt von der Größe und dem Standort des Tumors ab, außerdem ob und wie weit er sich ausgebreitet hat, vom Alter und dem generellen Gesundheitszustand des Patienten.

Die Behandlungsmöglichkeiten sind Operation, Bestrahlungstherapie, medikamentöse Anti-Krebs-Therapie oder eine Kombination all dieser Therapien. Bei Patienten mit einer fortgeschrittenen Krankheit ist eine Operation ausgeschlossen, es kann dann nur noch palliativ behandelt werden.

Ziel der Behandlung ist es, dass der Patient sich besser fühlt, indem der Schmerz verringert und das Schlucken erleichtert wird. Mögliche Behandlungen sind eine Kombination aus Bestrahlung und medikamentöser Behandlung, photodynamische Therapie, bei der mit einem Laser Blockaden der Speiseröhre entfernt werden, eine Ausdehnungstherapie oder eine Überbrückungstherapie mittels spezieller Stents.

In den letzten Jahren hat sich für frühe Formen von Speiseröhrenkrebs (sowohl Adeno- als auch Plattenepithelkarzinom) die endoskopische Therapie etabliert. Allen Therapiemöglichkeiten voran ist hier die endoskopische Resektion (ER) oder endoskopische Mukosaresektion (EMR) zu nennen. Bei dieser Form der endoskopischen Therapie wird während einer Magenspiegelung der Tumor mit einer speziellen, auf das Endoskop angebrachten Vorrichtung eingesaugt und anschließend reseziert. Diese Therapie sollte dann angewendet werden, wenn die bösartige Veränderung nur auf die oberste Schleimhautschicht (die sogenannte Mukosa) beschränkt ist, da in diesem Falle das Metastasierungsrisiko sehr gering ist. Der Vorteil der ER/EMR ist die niedrige Komplikationsrate, während die Operation (die sogenannte radikale Ösophagusresektion) mit einer Komplikationsrate von 30-50% und einer Sterblichkeitsrate von 5-20 % - je nach Erfahrung des chirurgischen Zentrums - einher geht. Auch die endoskopische Therapie sollte nur in Krankenhäusern mit großer Erfahrung in diesem Bereich durchgeführt werden.
Es gibt kein Mittel, um diese Art von Krebs zu vermeiden. Man kann das Risiko, ihn zu bekommen verringern, indem man nicht raucht, wenig Alkohol trinkt und den Genuss sehr heißer Speisen und Getränke meidet. Ein schützender Effekt von frischem Obst und Gemüse wird beschrieben. Um Probleme frühzeitig zu erkennen, ist die regelmäßige Untersuchung und die aufmerksame Beobachtung von Veränderungen des eigenen Körpers sinnvoll.

Ösophagektomie
aus Wikipedia, der freien Enzyklopädie

Bei der Ösophagektomie handelt es sich um die vollständige operative Entfernung der Speiseröhre (Ösophagus). Die operative Teilentfernung des Ösophagus wird als Ösophagusresektion bezeichnet.

Sowohl gutartige (Motilitätsstörungen = Bewegungsstörungen der Speiseröhre, z.B. Achalasie) als auch bösartige Erkrankungen (Ösophaguskarzinom) können die operative Entfernung der Speiseröhre erforderlich machen. Handelt es sich um einen Eingriff bei Karzinomerkrankung, so spricht man auch von einer radikalen Ösophagektomie. Hierbei wird die Speiseröhre mit angrenzenden Lymphknoten entfernt (Lymphadenektomie).

Man unterscheidet verschiedene Formen dieser Prozedur. Einerseits kann der Eingriff mit Eröffnung der Brusthöhle (Thorakotomie) erfolgen (sogenannte transthorakale Ösophagektomie). Anderseits kann der Ösophagus vom Bauch aus (Laparotomie) durch das Zwerchfell stumpf entfernt werden („Stripping“, transhiatale Ösophagektomie).

Zur Wiederherstellung der Nahrungspassage nach Ösophagektomie kann der Magen zu einer Ersatzspeiseröhre geformt werden und an den oberen Speiseröhrenstumpf angeschlossen werden (sog. Magenhochzug). Eine andere Möglichkeit besteht in der Zwischenschaltung (Interposition) eines Dickdarmteiles (sog. Dickdarmzwischenschaltung, Koloninterposition).

Die Ösophagektomie ist eine der größeren visceralchirurgischen Operationen und mit einer Vielzahl spezifischer Komplikationsmöglichkeiten behaftet. Hier die wichtigsten:

* Blutung: Die topographische Nähe zu den großen Gefäßen und der schwierige Zugang bergen das Risiko schwerer intra- und postoperativer Blutungen.
* Anastomoseninsuffizienz: Das „Aufgehen“ der Nahtverbindung zwischen dem hochgezogenen Magen- oder Dickdarmteil kann zu schwerwiegenden, lebensgefährlichen Infektionen führen. Diese sind bei collarer (in Höhe des Halses liegender) Anastomose noch eher beherrschbar als bei intrathorakaler Anatomose bei Ösophagus-Teilresektion. In diesem Fall droht die lebensgefährliche Mediastinitis (Mittelfellentzündung).
* Anastomosenstriktur: Eine narbige Schrumpfung im Anastomosenbereich gefährdet die Durchgängigkeit der Anastomose und verhindert die orale Ernährung.
* Aspirationspneumonie: Die fehlende Schließmuskelfunktion kann zu einem unkontrollierbaren Zurückfließen (Reflux) der aufgenommenen Nahrung und bei Aspiration zu einer gefährlichen Pneumonie (Lungenentzündung) führen.
* Peritonitis: Die Insuffizienz der unteren Anastomose bei Koloninterposition kann zu einer lebensbedrohlichen Bauchfellentzündung führen.

Die Abhängigkeit der Ergebnisse der Ösophagektomie von der Fallzahl (Anzahl der im Krankenhaus pro Jahr durchgeführten Eingriffe) ist belegt. So sterben in Krankenhäusern mit <2 Eingriffen pro Jahr ca. 18 % der Patienten, wohingegen in großen Zentren die Eingriffsletalität unter 5 % betragen kann. [1][2]

* J.R. Siewert, Chirurgie, 7. Aufl., Springer-Verlag ISBN 3540674098
* Siewert JR, Bartels H, Stein HJ. Abdomino-right-thoracic esophagectomy with intrathoracic anastomosis in Barrett's cancer. Chirurg. 2005 Jun;76(6):588-94. PMID 15875146

[kaubeuhut]

Antwort auf Beitrag Nr.: 38.893.741 von mylastlovestory am 05.02.10 20:45:58

Was heisst hier "Keine Bilanz"? Oder: "Hat Proteo ueberhaupt noch Kohlen"?

[kaubeuhut]

Antwort auf Beitrag Nr.: 38.893.741 von mylastlovestory am 05.02.10 20:45:58

Nur zu Deiner Information: Die haben so viel "Kohle", die geben sogar schon welche aus.

[BrauchGeld]

Hab hier etwas geforscht und ich muss sagen die Aktie ist wirklich gut .

Werde bald einen neuen Thread aufmachen sobald ich investiert bin .

[kaubeuhut]

Antwort auf Beitrag Nr.: 38.939.561 von BrauchGeld am 13.02.10 13:27:46

Wo bleibt der neue Thread?

[kaubeuhut]

Antwort auf Beitrag Nr.: 38.939.561 von BrauchGeld am 13.02.10 13:27:46

Hallo! H a l l o! Hoert mich jemand. Hallo, h a l l o !

[BrauchGeld]

Antwort auf Beitrag Nr.: 38.985.540 von kaubeuhut am 22.02.10 14:43:04

Ja es hört dich jemand aber ich sagte auch erst wenn ich investiert bin sonst würde es keinen sinn machen .

[kaubeuhut]

Antwort auf Beitrag Nr.: 38.985.580 von BrauchGeld am 22.02.10 14:47:05

Ja, dann kauf doch einfach ein paar Aktien und eroeffne den neuen Thread. Obwohl: Mir erschliesst sich nicht, was das eine mit dem anderen zu tun hat.

[mylastlovestory]

gut dass ich auf meine Mutter gehört habe und nicht rauche ja Proteo hat ne Menge Moneten, sieht zumindest so aus, ich glaube es sogar. Nur zu mit dem Kaufen... ich kaufe erst bei 0,001 par value oder tiefer ...und ohne Bilanz kaufe ich schon gar nicht! Kleiner Tip: Dendreon ist gerade aktuell....und machen auch mit Krebs und sagen auch wie viel Moneten da sind...bis bald

[kaubeuhut]

Antwort auf Beitrag Nr.: 39.006.309 von mylastlovestory am 24.02.10 21:39:20

Also jetzt reicht es mir wirklich! Seit wann "macht Proteo mit Krebs"? Seit wann hat Proteo keine Bilanzen?

Ich werde auf Deinen Stuss hier ueberhaupt nicht mehr reagieren.

Ende der Durchsaege.

[kaubeuhut]

Tja, da schweigt des Sängers Höflichkeit.

[neander55]

Antwort auf Beitrag Nr.: 39.055.145 von kaubeuhut am 04.03.10 06:21:43

man kennt das doch: diejenigen, die die wenigste Ahnung haben, reissen den Hals am weitesten auf.

Habe mich mal mit der ganzen Story beschäftigt und bin überzeugt, dass an Jahresende ein ganz anderer Wind weht.

[mylastlovestory]

du musst nicht meinen, dass ich hier jeden tag auf deine kommentare warte! ich finde keine bilanz! wo ist sie denn!! proteo macht nicht mit krebs? dann eben nicht! womit macht denn proteo??? vielleicht macht proteo lieber mit zitronen........hallo wer kauft zitronen? proteo hat genug davon:O

[kaubeuhut]

Antwort auf Beitrag Nr.: 39.127.050 von mylastlovestory am 12.03.10 17:32:42

Was sagt die ältere Dame in Hitch´s "Der unsichtbare Dritte" zu Roger Thornhill (Gary Grant)im Auktionssaal?

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beleidigung

[mitleser3108]

Antwort auf Beitrag Nr.: 39.127.050 von mylastlovestory am 12.03.10 17:32:42

Berichte gäbe es hier:

http://irpages.equitystory.com/cgi-bin/proteo/show.ssp?fn=sh…

[kaubeuhut]

Antwort auf Beitrag Nr.: 39.167.252 von mitleser3108 am 18.03.10 11:52:59

Klar! Man muss sich ja mal nur die Mühe machen. Unter www.sec.gov ist übrigens auch alles zu finden.

Aber für die letzte Liebesgeschichte ist das sicherlich ein paar Nummern zu hoch.

[MvL]

http://www.youtube.com/watch?v=9c1G_IaGKSk

[kaubeuhut]

Antwort auf Beitrag Nr.: 39.367.665 von MvL am 20.04.10 14:52:55

Unglaublich aussagekräftig!

[kaubeuhut]

Proteo, Inc. / Proteo Biotech AG: Patientenrekrutierung der Phase II-Studie mit Elafin bei Patienten mit Speiseröhrenkrebs erfolgreich abgeschlossen


Irvine, CA - Kiel, 23. April 2010 – Die Proteo, Inc. (OTCBB: PTEO; Frankfurter Freiverkehr: WKN: 925981) und ihre 100-prozentige Tochtergesellschaft Proteo Biotech AG gaben heute bekannt, dass die Patientenrekrutierung in der klinischen Phase II-Studie mit dem intravenös verabreichten Prüfarzneimittel Elafin erfolgreich abgeschlossen wurde.


In der verblindeten, randomisierten, Placebo-kontrollierten klinischen Phase II-Studie wird der Einfluss von Elafin auf die postoperativen Entzündungsreaktionen bei Patienten, die sich einer Ösophagektomie bei Ösophaguskarzinom unterziehen, untersucht. Die Studie wird an 3 Universitätskliniken in Deutschland - Kiel, TU München, Münster - durchgeführt. Birge Bargmann, Vorstand der Proteo Biotech AG: "Wir erwarten, dass in Kürze vorläufige Daten zur Wirksamkeit unseres Elastase-Inhibitors vorliegen werden und sind sehr optimistisch, dass die Ergebnisse dieser Studie unseren Erwartungen entsprechen werden.

Bereits im Januar dieses Jahres wurde Proteo auf Empfehlung der europäischen Arzneimittelagentur EMEA der Orphan Drug Status für Elafin zur Behandlung des Ösophaguskarzinoms durch die Europäische Kommission zuerkannt. Unter anderem ermöglicht die Einstufung als Orphan Drug ein beschleunigtes Zulassungsverfahren in allen Staaten der EU. Nach Vorliegen der Studienresultate wird Proteo die wissenschaftliche Beratung der für das zentralisierte europäische Zulassungsverfahren verantwortlichen Europäischen Arzneimittelagentur EMEA in Anspruch nehmen, um die Bedingungen für eine Folgestudie abzustimmen, die für Ende 2010 geplant ist.




Weitere Informationen über das klinische Elafin-Entwicklungsprogramm


Proteos Arzneimittelwirkstoff Elafin ist humanidentisch und natürlicher Gegenspieler von zwei hochpotenten gewebezerstörenden Enzymen, Elastase und Proteinase 3, die beide an Entzündungsmechanismen bei einer Vielzahl von Erkrankungen beteiligt sind. Die Eigenschaft von Elafin, die an Entzündungsreaktionen beteiligten Enzyme zu blockieren, macht es zu einem sehr Erfolg versprechenden Wirkstoff für die Behandlung von entzündlichen Lungenerkrankungen und schweren Reperfusionsschäden. Die sehr gute Verträglichkeit von intravenös appliziertem rekombinanten Elafin konnte in einer klinischen Phase I Studie überzeugend dargestellt werden. Neben der oben genannten klinischen Studie zum Ösophaguskarzinom hat Proteos Lizenz- und Entwicklungspartner, Minapharm Pharmaceuticals SAE eine weitere klinische Phase II Studie mit Elafin bei nierentransplantierten Patienten initiiert. Es handelt sich um eine Studie zur Verhinderung von akuten Organabstoßung und chronischen Transplantatschäden (Allograft-Nephropathie), die an der Universität Kairo durchgeführt wird. Als ein weiterer Kooperationspartner hat die University of Edinburgh eine klinische Studie zur Erprobung von Elafin im Rahmen der Bypass-OP nach Herzinfarkt geplant.



Über Proteo

Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Der Schwerpunkt liegt hierbei auf entzündungshemmenden Arzneimitteln, insbesondere auf dem menschlichen Elastase-Inhibitor Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung.



Zukunftsgerichtete Aussagen

Diese Presseinformation enthält bestimmte in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieser Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technische Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen Pläne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-K und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.



Kontakt




Dr. Barbara Kahlke
Proteo Biotech AG
Am Kiel-Kanal 44
D-24106 Kiel
Email: [e-mail]
Telefon: [phone]
Fax: [phone]

[MANBACH]

!

Dieser Beitrag wurde moderiert.

[MvL]

Antwort auf Beitrag Nr.: 39.389.747 von kaubeuhut am 23.04.10 10:54:07

...aussagekräftig...mindestens genauso viel oder wenig aussagekräftig wie die Geschäftsberichte von Proteo...oder wie???

[kaubeuhut]

Antwort auf Beitrag Nr.: 39.404.876 von MvL am 26.04.10 22:30:21

Ich darf ja wohl getrost bezweifeln, dass du die Geschäftsberichte von PROTEO jemals gelesen hast. Solltest du sie dennoch gelesen haben,dürftest du sie wohl kaum verstanden haben.

[kaubeuhut]

Antwort auf Beitrag Nr.: 39.396.164 von MANBACH am 24.04.10 16:13:54

Ziemlich alte Schallplatte, würde ich sagen. Läuft so unter dem Motto: "Wer will noch mal, wer hat noch nicht?" Die Kanzlei Mattil & Konsorten, München hat übrigens sämtliche Prozesse, die sie meinte, anzetteln zu müssen, verloren. Zurück gebleiben sind Anleger, die auf einem Haufen Kostenschulden sitzen geblieben sind.
Könnte mir also so ziemlich egal sein. Prima facie. Allerdings werde ich die fortlaufende Beschädigung der Unternehmen nicht mehr weiter dulden.
Schaun wir mal!

[ladygaga]

Antwort auf Beitrag Nr.: 39.405.304 von kaubeuhut am 27.04.10 02:32:40

diese Mal wird alles anders.

[kaubeuhut]

Proteo, Inc. / Proteo Biotech AG: Proteo kooperiert mit Molecular Imaging North Competence Center (MOIN CC)


Irvine, CA - Kiel, 7. Mai 2010 – Die Proteo, Inc. (OTCBB: PTEO; Frankfurter Freiverkehr: WKN: 925981) und ihre 100-prozentige Tochtergesellschaft Proteo Biotech AG gaben heute die Kooperation mit dem Molecular Imaging North Competence Center (MOIN CC) an der Christian-Albrechts-Universität zu Kiel bekannt. Das Land Schleswig-Holstein fördert die Einrichtung des MOIN CC mit einer Gesamtfördersumme von 8,2 Mio EUR mit Mitteln des Landes und des Europäischen Fonds für regionale Entwicklung (EFRE) sowie aus Mitteln des Konjunkturprogramms II.

Mit der Einrichtung des MOIN CC wird die Infrastruktur für ein Netzwerk zwischen Hochschulen und Wirtschaft geschaffen, um den Wissenstransfer in der Region und wirtschaftliches Wachstum nachhaltig zu fördern. Molekulare Bildgebung gilt als eines der dynamischsten medizinischen Innovations- und Wachstumsfelder. Die Visualisierung molekularer, biochemischer oder zellulärer Prozesse mit Hilfe adaptierter radiologischer Verfahren ermöglicht über genauere Diagnostik eine individuell auf den Patienten zugeschnittene Therapie und damit bessere Heilungschancen. Die inhaltlichen Schwerpunkte des MOIN CC orientieren sich an den Kernkompetenzen der Christian-Albrechts-Universität und des Universitätsklinikums Schleswig-Holstein. Die sieben Projekte betreffen die Krebs- und Entzündungsforschung, Bereiche in denen durch Exzellenzcluster, Sonderforschungsbereich und Forschungsschwerpunkte umfangreiches Know-How vorliegt. Die Proteo Biotech AG ist als Kooperationspartner an einem Projekt mit ihrem Arzneimittelwirkstoff Elafin beteiligt. Oliver Wiedow, Gründer der Proteo Biotech AG und Professor für Dermatologie an der Universität Kiel: " Mit der Förderung des MOIN CC schafft das Land Schleswig-Holstein eine sehr wertvolle Struktur für den weiteren Ausbau der translationalen medizinischen Forschung der Universität und der kooperierenden Unternehmen vor allem im Bereich der Arzneimittelentwicklung."


Über Proteo
Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Der Schwerpunkt liegt hierbei auf entzündungshemmenden Arzneimitteln, insbesondere auf dem menschlichen Elastase-Inhibitor Elafin. Die sehr gute Verträglichkeit von intravenös appliziertem rekombinanten Elafin konnte in einer klinischen Phase I Studie überzeugend dargestellt werden. Eine klinische Phase II Studie zur Behandlung postoperativer Entzündungsreaktionen bei Ösophaguskarzinom befindet sich gegenwärtig in der Auswertung. Proteos Lizenz- und Entwicklungspartner, Minapharm Pharmaceuticals SAE hat eine weitere klinische Phase II Studie mit Elafin bei nierentransplantierten Patienten initiiert. Es handelt sich um eine Studie zur Verhinderung von akuten und chronischen Organabstoßungsreaktionen (Allograft-Nephropathie), die an der Universität Kairo durchgeführt wird. Als ein weiterer Kooperationspartner hat die University of Edinburgh eine klinische Studie zur Erprobung von Elafin im Rahmen der Bypass-OP nach Herzinfarkt geplant. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und deren Vermarktung.


Zukunftsgerichtete Aussagen

Diese Presseinformation enthält bestimmte in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieser Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger Pläne und Ziele des Unternehmens sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technische Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen Pläne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-K und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.


Kontakt

Dr. Barbara Kahlke
Proteo Biotech AG
Am Kiel-Kanal 44
D-24106 Kiel
Email: [e-mail]
Telefon: [phone]
Fax: [phone]

[kaubeuhut]

Antwort auf Beitrag Nr.: 39.483.692 von kaubeuhut am 07.05.10 19:16:23

Proteo, Inc./Proteo Biotech AG: Präsentation neuer vorklinischer Daten zu Elafin auf ATS -Kongress


Irvine, CA – Kiel, 11. Mai, 2010 – - Die Proteo, Inc. (OTCBB: PTEO; Frankfurter Freiverkehr: WKN: 925981) und ihre 100-prozentige Tochtergesellschaft Proteo Biotech AG berichteten heute, dass neue vorklinische Daten zu Proteos Arzneimittelwirkstoff Elafin am 17. Mai auf der internationalen Jahrestagung der American Thoracic Society (ATS) in New Orleans präsentiert werden. Dieser internationale Kongress ist die größte amerikanische Tagung für Ärzte und Wissenschaftler in der Lungen-, Intensiv- und Schlafmedizin.

Wissenschaftler des Vera Moulton Wall Center for Pulmonary Vascular Disease an der Stanford University School of Medicine stellen dort ihre neuesten Ergebnisse zu Elafin im Rahmen einer Poster-Präsentation mit dem Titel »Adverse Pulmonary Effects of Mechanical Ventilation in Newborn Mice are Prevented or Attenuated by the Serine Elastase Inhibitor Elafin« vor. Die Ergebnisse aus einem vorklinischen Modell zeigen, dass durch die Gabe von Elafin Lungenschäden, die durch künstliche Beatmung bei Neugeborenen entstehen, unterdrückt werden können.

Frühgeborene entwickeln unter künstlicher Beatmung oft chronische Lungenerkrankungen, die langfristig ein erhebliches Gesundheitsrisiko mit sich bringen. Es besteht insbesondere eine erhöhte Anfälligkeit für rezidivierende Atemwegserkrankungen in der Kindheit und chronische Lungenerkrankungen im späteren Lebensalter wie Asthma bronchiale und Lungenemphysem.

Die Untersuchungen wurden in einem Tiermodell zur chronischen Lungenerkrankung Neugeborener durchgeführt. In diesem Modell wird durch sauerstoffreiche Beatmung neugeborener Mäuse eine Entzündung erzeugt, die einen erheblichen Lungenschaden zur Folge hat, da sie den Abbau elastischer Fasern, den Untergang von Lungenzellen und die Aktivierung von entzündungsfördernden Botenstoffen auslöst. Diese Lungenschädigung beeinträchtigt auch die weitere Lungenentwicklung. Die Behandlung mit Elafin während der Beatmung verhindert diese Entzündungsschäden weitgehend.

Der Projektleiter in Stanford, Prof. Richard Bland, Facharzt für Neonatologie und Spezialist für Säuglingslungenerkrankungen: »Unsere Ergebnisse nähren die Hoffung, dass wir Elafin bei Kindern einsetzen können um die chronische Lungenerkrankung Neugeborener und deren Langzeitfolgen zu behandeln oder sogar zu verhindern«.

Weitere Informationen über das klinische Elafin-Entwicklungsprogramm

Proteos Arzneimittelwirkstoff Elafin ist humanidentisch und natürlicher Gegenspieler von zwei hochpotenten gewebezerstörenden Enzymen, Elastase und Proteinase 3, die beide an Entzündungsmechanismen bei einer Vielzahl von Erkrankungen beteiligt sind. Die Eigenschaft von Elafin, die an Entzündungsreaktionen beteiligten Enzyme zu blockieren, macht es zu einem sehr Erfolg versprechenden Wirkstoff für die Behandlung von entzündlichen Lungenerkrankungen und schweren Reperfusionsschäden. Die sehr gute Verträglichkeit von intravenös appliziertem rekombinanten Elafin konnte in einer klinischen Phase I Studie überzeugend dargestellt werden. Eine klinische Phase II Studie, in der der Einfluss von Elafin auf die postoperativen Entzündungsreaktionen bei Patienten, die sich einer Ösophagektomie bei Ösophaguskarzinom unterziehen, untersucht wurde, befindet sich gegenwärtig in der Auswertung. Daneben hat Proteos Lizenz- und Entwicklungspartner, Minapharm Pharmaceuticals SAE eine weitere klinische Phase II Studie mit Elafin bei nierentransplantierten Patienten initiiert. Es handelt sich um eine Studie zur Verhinderung von akuten und chronischen Organabstoßungsreaktionen (Allograft-Nephropathie), die an der Universität Kairo durchgeführt wird. Als ein weiterer Kooperationspartner hat die University of Edinburgh eine klinische Studie zur Erprobung von Elafin im Rahmen der Bypass-OP nach Herzinfarkt geplant.

Über Proteo

Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Der Schwerpunkt liegt hierbei auf entzündungshemmenden Arzneimitteln, insbesondere auf dem menschlichen Elastase-Inhibitor Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen zur Erschließung neuer Anwendungsgebiete und Vermarktung.

Zukunftsgerichtete Aussagen

Diese Presseinformation enthÜlt bestimmte in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen »safe harbor« (Haftungsausschluss). Alle Aussagen in dieser Mitteilung außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger PlÜne und Ziele des Unternehmens sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsÜchliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technischen Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen PlÜne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren nÜher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-K und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.

Kontakt:
Dr. Barbara Kahlke
Proteo Biotech AG
Am Kiel-Kanal 44
D-24106 Kiel
Email: [e-mail]
Telefon: [phone]
Fax: [phone]

[mylastlovestory]

cowboyhut hat plötzlich so viele Feinde.....wie kommt das? Ach ja ich vergaß, die Sache mit den Idioten, sind denn so viele davon um ihn herum? Möglich und denkbar ist das schon angesichts des Erfolges. Dennoch Cowboyhut ist einsame Spitze und schlägt alle Idioten um Längen (keine Chance Cowboyhut ist zu gut).

Die US ARMY ist interessiert? Eine Hammernews (würde ich sagen), leider ist der Kurs genau andersrum verlaufen, das nenne ich echt idiotisch....

Ach so ja,hmm....grüße freundlichst, bitte nicht wieder beleidigend kommentieren......ach das Foto von Mr. Croock, was für ein Ampelmann.......nicht einmal die letzte einsame Insel dieser Welt würde ihn interessanter machen..... bye bye

[kaubeuhut]

Antwort auf Beitrag Nr.: 39.983.097 von mylastlovestory am 13.08.10 19:10:26

Tschö mit "ö".

[kaubeuhut]

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


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


FORM 10-Q


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(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended June 30, 2010

OR

o 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 000-30728

PROTEO, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


NEVADA 88-0292249
(STATE OR OTHER JURISDICTION OF
INCORPORATION OR ORGANIZATION) (I.R.S. EMPLOYER
IDENTIFICATION NO.)

2102 BUSINESS CENTER DRIVE, IRVINE, CALIFORNIA 92612
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)


[phone]
(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 such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o .


Indicate by check mark whether the registrant has submitted electronically and posted on its web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o .

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 definition of "large accelerated filer," "an accelerated filer” and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer o Accelerated filer o

Non-accelerated filer o 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 o No x .

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

CLASS NUMBER OF SHARES OUTSTANDING
Common Stock, $0.001 par value 23,879,350 shares of common stock at August 5, 2010



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PROTEO, INC.
AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)

TABLE OF CONTENTS

Page

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements:
Condensed Consolidated Balance Sheets as of June 30, 2010 (unaudited) and December 31, 2009 3

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three-month and Six-month Periods Ended June 30, 2010 and 2009, and for the Period From November 22, 2000 (Inception) Through June 30, 2010 4

Unaudited Condensed Consolidated Statements of Cash Flows for the Six-month Periods Ended June 30, 2010 and 2009, and for the Period From November 22, 2000 (Inception) Through June 30, 2010 5

Notes to Unaudited Condensed Consolidated Financial Statements 6

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 13

Item 3. Quantitative and Qualitative Disclosure About Market Risk 16

Item 4T. Controls and Procedures 16

PART II. OTHER INFORMATION 17

Item 1. Legal Proceedings 17

Item 1A. Risk Factors 17

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17

Item 3. Defaults Upon Senior Securities 17

Item 4. [Removed and Reserved] 17

Item 5. Other Information 17

Item 6. Exhibits 17

SIGNATURES 18




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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS



ASSETS
June 30, December 31,
2010 2009
(Unaudited)

CURRENT ASSETS
Cash and cash equivalents $ 335,804 $ 689,126
Research supplies inventory 481,878 581,919
Prepaid expenses and other current assets 30,344 67,469
848,026 1,338,514

PROPERTY AND EQUIPMENT, NET 175,284 232,469
$ 1,023,310 $ 1,570,983

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 98,758 $ 190,627
Accrued licensing fees 73,248 85,998
172,006 276,625

LONG TERM LIABILITIES
Deferred fees 99,849 117,230
Accrued licensing fees 659,232 773,982
759,081 891,212

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Non-voting preferred stock, par value $0.001 per share; 10,000,000 shares authorized; 661,500 and 630,000 shares issued and outstanding at June 30, 2010 and December 31, 2009, respectively 662 630

Common stock, par value $0.001 per share; 300,000,000 shares authorized; 23,879,350 shares issued and outstanding 23,880 23,880
Additional paid-in capital 8,567,634 8,567,634
Note receivable for sale of preferred stock (1,595,243 ) (1,731,306 )
Accumulated other comprehensive income 64,340 316,528
Deficit accumulated during development stage (6,969,050 ) (6,774,220 )
Total Proteo, Inc. Stockholders' Equity 92,223 403,146
Noncontrolling Interest - -
Total Stockholders' Equity 92,223 403,146
Total Liabilities and Stockholders' Equity $ 1,023,310 $ 1,570,983


SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED JUNE 30, 2010 AND 2009
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH JUNE 30, 2010


NOVEMBER 22,
2000
(INCEPTION)
THREE MONTHS ENDED SIX MONTHS ENDED THROUGH
JUNE 30, JUNE 30, JUNE 30,
2010 2009 2010 2009 2010

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

REVENUES $ - $ - $ - $ - $ -

EXPENSES
General and administrative 115,412 175,138 170,193 235,542 4,544,890
Research and development 122,584 104,660 238,367 224,546 2,904,076
237,996 279,798 408,560 460,088 7,448,966
INTEREST AND OTHER INCOME (EXPENSE), NET 158,473 36,165 213,762 92,540 416,974
NET LOSS (79,523 ) (243,633 ) (194,798 ) (367,548 ) (7,031,992 )

LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST - - - - 63,004
NET LOSS ATTRIBUTABLE TO PROTEO, INC. (79,523 ) (243,633 ) (194,798 ) (367,548 ) (6,968,988 )

PREFERRED STOCK DIVIDEND (32 ) (30 ) (32 ) (30 ) (62 )
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (79,555 ) $ (243,663 ) $ (194,830 ) $ (367,578 ) $ (6,969,050 )
BASIC AND DILUTED LOSS ATTRIBUTABLE TO PROTEO, INC.
COMMON SHAREHOLDERS $ (0.00 ) $ (0.01 ) $ (0.01 ) $ (0.02 )

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 23,879,350 23,879,350 23,879,350 23,879,350


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

NET LOSS ATTRIBUTABLE TO PROTEO, INC. $ (79,523 ) $ (243,633 ) $ (194,798 ) $ (367,548 ) $ (6,968,988 )

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS (141,019 ) 150,008 (252,188 ) 29,105 64,340
COMPREHENSIVE LOSS $ (220,542 ) $ (93,625 ) $ (446,986 ) $ (338,443 ) $ (6,904,648 )


SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS






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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTH AND SIX MONTH PERIODS ENDED JUNE 30, 2010 AND 2009
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH JUNE 30, 2010



NOVEMBER 22,
2000
(INCEPTION)
SIX MONTHS ENDED THROUGH
JUNE 30, JUNE 30,
2010 2009 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (194,798 ) $ (367,548 ) $ (6,968,988 )
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation 24,771 28,416 415,972
Bad debt expense - - 60,408
Loss on disposal of equipment - - 4,518
Foreign currency transaction gains (207,478 ) (2,940 ) (9,916 )
Changes in operating assets and liabilities:
Research supplies inventory 15,010 (6,654 ) (568,490 )
Prepaid expenses and other current assets 29,573 51,909 (97,149 )
Accounts payable and accrued liabilities (76,079 ) (33,024 ) 76,345
Deferred revenue - - 120,341
Accrued licensing fees - - 660,713

NET CASH USED IN OPERATING ACTIVITIES (409,001 ) (329,841 ) (6,306,246 )

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment - (17,823 ) (633,614 )
Cash of reorganized entity - - 27,638

NET CASH USED IN INVESTING ACTIVITIES - (17,823 ) (605,976 )

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock - - 1,792,610
Proceeds from subscribed common stock and issuance
of preferred stock 136,063 335,383 5,195,732

NET CASH PROVIDED BY FINANCING ACTIVITIES 136,063 335,383 6,988,342

EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (80,384 ) 28,503 259,684

NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (353,322 ) 16,222 335,804
CASH AND CASH EQUIVALENTS--BEGINNING OF PERIOD 689,126 1,237,450 -
CASH AND CASH EQUIVALENTS--END OF PERIOD $ 335,804 $ 1,253,672 $ 335,804


SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS






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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2010 (UNAUDITED)

1. NATURE OF BUSINESS AND BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying condensed consolidated balance sheet as of December 31, 2009, which has been derived from audited financial statements, and the accompanying interim condensed consolidated financial statements as of June 30, 2010, for the three-month and six-month periods ended June 30, 2010 and 2009, and for the period from November 22, 2000 (Inception) through June 30, 2010 have been prepared by management pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments and accruals) necessary to present fairly the financial condition, results of operations and cash flows of Proteo, Inc. and its wholly owned subsidiary (hereinafter collectively referred to as the "Company") as of and for the periods presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Operating results for the three-month and six-month periods ended June 30, 2010 are not necessarily indicative of the results that may be expected for the year ending December 31, 2010 or for any other interim period during such year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 filed with the SEC on March 29, 2010.

NATURE OF BUSINESS

The Company intends to develop, manufacture, promote and market pharmaceuticals and other biotech products. The Company is focused on the development of pharmaceuticals based on the human protein Elafin which naturally occurs in human skin, lungs and mammary glands. The Company believes Elafin may be useful in the treatment of cardiac infarction, serious injuries caused by accidents, post surgery damage to tissue, complications resulting from organ transplantations and pulmonary arterial hypertension.

The products that the Company is developing are considered drugs or biologics, and hence are governed by the Federal Food, Drug and Cosmetics Act (in the United States) and the regulations of State and various foreign government agencies. The Company's proposed pharmaceutical products to be used by humans are subject to certain clearance procedures administered by the above regulatory agencies.

Since its inception, the Company has primarily been engaged in the research and development of its proprietary product Elafin. Once the research and development phase is complete, the Company intends to manufacture and seek the various governmental regulatory approvals for the marketing of Elafin. Management believes that none of its planned products will produce sufficient revenues in the near future . As a result, the Company plans to identify and develop other potential products. There are no assurances, however, that the Company will be able to develop such products, or if produced, that they will be accepted in the marketplace.

Proteo, Inc.'s common stock is currently quoted on the OTC Bulletin Board of the Financial Industry Regulatory Authority under the symbol "PTEO".

DEVELOPMENT STAGE AND GOING CONCERN CONSIDERATIONS

The Company has been in the development stage since it began operations on November 22, 2000, and has not generated any significant revenues from operations. Management plans to generate revenues from product sales, but there is no commitment by any persons for purchase of any of the proposed products and there is no assurance of any future revenue. The Company will require substantial additional funding for continuing research and development, obtaining regulatory approvals and for the commercialization of its product. There can be no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.





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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2010 (UNAUDITED)

DEVELOPMENT STAGE AND GOING CONCERN CONSIDERATIONS (continued)


Management has taken action to address these matters, which include:

· Retention of experienced management personnel with particular skills in the development of such products;


· Attainment of technology to develop biotech products; and


· Raising additional funds through the sale of debt and/or equity securities.


In the absence of significant sales and profits, the Company may seek to raise funds to meet its future working capital requirements through the additional sales of debt and/or equity securities. There is no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.

These circumstances, among others, raise concerns about the Company's ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

CONCENTRATIONS

The Company maintains substantially all of its cash in bank accounts at a German private commercial bank. The Company's bank accounts at this financial institution are presently protected by the voluntary "Deposit Protection Fund of The German Private Commercial Banks". The Company has not experienced any losses in these accounts.

Proteo, Inc.'s operations, including research and development activities and most of its assets are located in Germany. The Company's operations are subject to various political, economic, and other risks and uncertainties inherent in Germany and the European Union.

OTHER RISKS AND UNCERTAINTIES

Proteo, Inc.'s line of future pharmaceutical products being developed by its German subsidiary are considered drugs or biologics, and as such, are governed by the Federal Food, Drug and Cosmetics Act (in the United States) and by the regulations of State agencies and various foreign government agencies. There can be no assurances that the Company will obtain the regulatory approvals required to market its products. The pharmaceutical products under development in Germany will be subject to more stringent regulatory requirements because they are recombinant products for humans. The Company has no experience in obtaining regulatory clearance on these types of products. Therefore, the Company will be subject to the risks of delays in obtaining or failing to obtain regulatory clearance and other uncertainties, including financial, operational, technological, regulatory and other risks associated with an emerging business, including the potential risk of business failure.

The Company is exposed to risks related to fluctuations in foreign currency exchange rates. Management does not utilize derivative instruments to hedge against such exposure.

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements have been prepared in accordance with GAAP and include the accounts of Proteo, Inc. and Proteo Biotech AG, its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

Effective January 1, 2009, the Company adopted new guidance to the Consolidation Topic of the Financial Accounting Standard Board’s (“FASB”) new Accounting Standards Codification (“ASC” or “Codification”). This guidance improves the relevance, comparability and transparency of the financial information that a company provides in its consolidated financial statements by establishing accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This standard requires the Company to classify noncontrolling interests (previously referred to as "minority interest") as part of consolidated net earnings and to include the accumulated amount of noncontrolling interests as part of stockholders' equity.





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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2010 (UNAUDITED)

PRINCIPLES OF CONSOLIDATION (continued)


The net loss amounts the Company has previously reported are now presented as "Net loss attributable to Proteo, Inc" and, as required by the Codification, loss per share continues to reflect amounts attributable only to the Company. Similarly, in the presentation of stockholders' equity, the Company distinguishes between equity amounts attributable to the Company's stockholders and amounts attributable to the noncontrolling interest - previously classified as minority interest outside of stockholders' equity. In addition to these financial reporting changes, this guidance provides for significant changes in accounting related to noncontrolling interests; specifically, increases and decreases in the Company's controlling financial interests in consolidated subsidiaries will be reported in equity similar to treasury stock transactions. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. Except for presentation, the implementation of this guidance did not have a material effect on the Company's condensed consolidated financial statements because a substantive contractual arrangement specifies the attribution of net earnings and loss not to exceed the noncontrolling interest.


FAIR VALUE OF FINANCIAL INSTRUMENTS AND CERTAIN OTHER ASSETS/LIABILITIES

The Fair Value Measurements and Disclosures Topic of the ASC requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. Management believes that the carrying amounts of the Company's financial instruments, consisting primarily of cash and cash equivalents, accounts payable and accrued liabilities, approximate their fair value at June 30, 2010 due to their short-term nature. The Company does not have any assets or liabilities that are measured at fair value on a recurring basis and, during the six-month periods ended June 30, 2010 and 2009 and for the period from November 22, 2000 (Inception) through June 30, 2010, did not have any assets or liabilities that were measured at fair value on a non-recurring basis.

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS

Effective September 30, 2009, the Company adopted the FASB’s new ASC as the single source of authoritative accounting guidance under the Generally Accepted Accounting Principles Topic. The ASC does not create new accounting and reporting guidance, rather it reorganizes GAAP pronouncements into approximately 90 topics within a consistent structure. All guidance in the ASC carries an equal level of authority. Relevant portions of authoritative content, issued by the SEC, for SEC registrants, have been included in the ASC. After the effective date of the Codification, all nongrandfathered, non-SEC accounting literature not included in the ASC is superseded and deemed nonauthoritative. Adoption of the Codification also changed how the Company references GAAP in its condensed consolidated financial statements.


In January 2010, the FASB issued ASU No. 2010-06, Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements. This ASU requires some new disclosures and clarifies some existing disclosure requirements about fair value measurement as set forth in Codification Subtopic 820-10. The FASB’s objective is to improve these disclosures and, thus, increase the transparency in financial reporting. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Early application is permitted. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements.


In December 2009, the FASB issued ASU 2009-17, Consolidations (Topic 810) - Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, which codifies FASB Statement No. 167, Amendments to FASB Interpretation No. 46(R). ASU 2009-17 represents a revision to former FASB Interpretation No. 46 (Revised December 2003), Consolidation of Variable Interest Entities, and changes how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. ASU 2009-17 also requires a reporting entity to provide additional disclosures about its involvement with variable interest entities and any significant changes in risk exposure due to that involvement. A reporting entity will be required to disclose how its involvement with a variable interest entity affects the reporting entity’s financial statements. ASU 2009-17 is effective at the start of a reporting entity’s first fiscal year beginning after November 15, 2009, or January 1, 2010, for a calendar year-end entity. Early application is not permitted. The adoption of this guidance had no impact on the Company’s consolidated financial statements.






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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2010 (UNAUDITED)

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS (continued)

In June 2009, the FASB issued Statements on Financial Accounting Standards (“SFAS”) No. 166, Accounting for Transfers of Financial Assets—An Amendment of FASB Statement 140, which eliminates the concept of qualified special purpose entities (QSPEs) and provides additional criteria transferors must use to evaluate transfers of financial assets. This standard modifies certain guidance contained in FASB ASC 860 and is adopted into the Codification through the issuance of ASU 2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets. In order to determine whether a transfer is accounted for as a sale, the transferor must assess whether it and all of its consolidated entities have surrendered control of the financial assets. The standard also requires financial assets and liabilities retained from a transfer accounted for as a sale to be initially recognized at fair value. This standard is effective for fiscal years and interim periods beginning after November 15, 2009, with adoption applied prospectively for transfers that occur on or after the effective date. The adoption of this guidance had no impact on the Company’s consolidated financial statements.


Except as described above, in the opinion of management, neither the FASB, its Emerging Issues Task Force, the AICPA, nor the SEC have issued any additional accounting pronouncements since the Company filed its December 31, 2009, Form 10-K that are expected to have material impact on the Company's future consolidated financial statements.




2. STOCK SUBSCRIPTIONS RECEIVABLE AND OTHER EQUITY TRANSACTIONS

The Company is authorized to issue 10,000,000 shares of preferred stock, $0.001 par value. Except as described below, the Board of Directors has not designated any liquidation value, dividend rates or other rights or preferences with respect to any shares of preferred stock.

The Board of Directors has designated 750,000 preferred shares as non-voting Series A Preferred Stock. As more fully described in the Company’s Form 8-K filed with the SEC on June 11, 2008, holders of Series A Preferred Stock are entitled to receive preferential dividends, if and when declared, at the per share rate of twice the per share amount of any cash or non-cash dividend distributed to holders of the Company's common stock. If no dividend is distributed to common stockholders, the holders of Series A Preferred Stock are entitled to an annual stock dividend payable at the rate of one share of Series A Preferred Stock for each twenty shares of Series A Preferred Stock owned by each holder of Series A Preferred Stock. The annual stock dividend shall be paid on June 30 of each year commencing in 2009 and no stock dividends will be paid after December 31, 2011.


On June 9, 2008, the Company entered into a Preferred Stock Purchase Agreement ("Stock Purchase Agreement") with FIDEsprit (the “Investor”), a common stockholder and related party. Pursuant to the Stock Purchase Agreement, the Company sold and issued to the Investor 600,000 shares of Series A Preferred Stock at a price of $6.00 per share, for an aggregate price of $3,600,000 ("Purchase Price"). In payment of the Purchase Price, the Investor delivered to the Company a promissory note in the amount of $3,600,000 (the “Note”), maturing on March 31, 2009. The Note was guaranteed by a principal of the Investor (the “Guaranty”). The Series A Preferred Stock note receivable is reported as a reduction of stockholders' equity.

On July 6, 2009, the Company and Investor entered into a Forbearance Agreement and General Release (the “Forbearance Agreement”) to renegotiate the terms of the Note. Pursuant to the Forbearance Agreement, the Investor acknowledged and agreed that, as of July 6, 2009, it was obligated to the Company under the Note for the aggregate sum of $1,940,208 (the “Indebtedness”), which represented the unpaid principal amount as of such date plus a late charge equal to three percent (3%) of the unpaid principal amount (approximately $65,000). In exchange for the Company’s agreement to forbear from exercising its rights under the Note and Guaranty, the Investor agreed to pay the Indebtedness by making monthly payments in the amount of $140,000 commencing on the first business day of September 2009 and continuing on the first business day of each succeeding month thereafter until the Indebtedness is paid in full. As of September 30, 2009, the first installment of $140,000 had not been fully paid, and therefore the Investor was technically in default of the Forbearance Agreement.




9
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2010 (UNAUDITED)


2. STOCK SUBSCRIPTIONS RECEIVABLE AND OTHER EQUITY TRANSACTIONS (continued)


On February 11, 2010, the Company entered into an Agreement on the Assumption of Debt (“Agreement”) between the Company, btd biotech development GmBH (“Assignee”), and Axel J. Kutscher (the “Guarantor” of the Note). Pursuant to the Agreement, the Company consented to Assignee’s assumption of the obligations owed to the Company by Investor under the Note, Stock Purchase Agreement and Forbearance Agreement. The Guarantor consented to the assumption of the obligations owed to the Company by Investor and acknowledged, agreed, and consented to the continuing validity of his guaranty. During the six-month period ended June 30, 2010, the Company received payments approximating $136,000, in connection with this agreement. While these payments do not satisfy the terms of the Forbearance Agreement, the Company and the Assigned are currently negotiating new payment terms. The note receivable approximated $1,595,000 at June 30, 2010.


Effective June 30, 2010 and 2009, the Company declared a stock dividend of 31,500 shares and 30,000 shares, respectively, of Series A Preferred Stock payable to its Series A Preferred Stock holders pursuant to the Stock Purchase Agreement.


There were no issuances of common stock during the six-month periods ended June 30, 2010 and 2009, nor have any stock options been granted from inception to date.

3. LOSS PER COMMON SHARE

Basic loss per common share is computed based on the weighted average number of shares outstanding for the period. Diluted loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average shares outstanding assuming all dilutive potential common shares were issued. There were no dilutive potential common shares outstanding at June 30, 2010 and 2009. Additionally, there were no adjustments to net loss to determine net loss available to common shareholders. As such, basic and diluted loss per common share equals net loss, as reported, divided by the weighted average common shares outstanding for the respective periods.

4. FOREIGN CURRENCY TRANSLATION

Assets and liabilities of the Company's German operations are translated from Euros (the functional currency) into U.S. dollars (the reporting currency) at period-end exchange rates; equity transactions are translated at historical rates; and income and expenses are translated at weighted average exchange rates for the period. Net foreign currency exchange gains or losses resulting from such translations are excluded from the results of operations but are included in other comprehensive income and accumulated in a separate component of stockholders' equity. Accumulated other comprehensive income approximated $64,000 at June 30, 2010 and $317,000 at December 31, 2009.

5. FOREIGN CURRENCY TRANSACTIONS

The Company records payables related to a certain licensing agreement (Note 7) in accordance with the Foreign Currency Matters Topic of the Codification. Quarterly commitments under such agreement are denominated in Euros. For each reporting period, the Company translates the quarterly amount to U.S. dollars at the exchange rate effective on that date. If the exchange rate changes between when the liability is incurred and the time payment is made, a foreign exchange gain or loss results. The Company has made no payments under this licensing agreement during the six-month periods ended June 30, 2010 and 2009, and, therefore, has not realized any significant foreign currency exchanges gains or losses during these periods.

Additionally, the Company computes a foreign exchange gain or loss at each balance sheet date on all recorded transactions denominated in foreign currencies that have not been settled. The difference between the exchange rate that could have been used to settle the transaction on the date it occurred and the exchange rate at the balance sheet date is the unrealized gain or loss that is currently recognized. The Company recorded foreign currency transaction gains of approximately $207,000 and $3,000 for the six-month periods ended June 30, 2010 and 2009, respectively, which are included in interest and other income (expense), net in the accompanying condensed consolidated statements of operations and comprehensive loss.

6. SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION

The Company considers itself to operate in one segment and has not generated any significant operating revenues since its inception. All of the Company's property and equipment is located in Germany.





10
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2010 (UNAUDITED)


7. DR. WIEDOW LICENSE AGREEMENT

On December 30, 2000, the Company entered into a thirty-year license agreement, beginning January 1, 2001 (the "License Agreement"), with Dr. Oliver Wiedow, MD, the owner and inventor of several patents, patent rights and technologies related to Elafin. Pursuant to the License Agreement, the Company agreed to pay Dr. Wiedow an annual license fee of 110,000 Euros for a period of six years. No payments were made through fiscal year 2003. In 2004, the License Agreement was amended to require the Company to make annual payments of 30,000 Euros, to be paid on July 15 of each year, beginning in 2004. Such annual payment could be increased to 110,000 Euros by June 1 of each year based on an assessment of the Company's financial ability to make such payments. In December 2007 the Company paid Dr. Wiedow 30,000 Euros. The License Agreement was again amended by an Amendment Agreement to the License Agreement (the "Amendment") dated December 23, 2008. Pursuant to the Amendment, the Company and Dr. Wiedow agreed that the Company would pay the outstanding balance of 630,000 Euros to Dr. Wiedow as follows: for fiscal years 2008 to 2012, the Company shall pay Dr. Wiedow 30,000 Euros per year, and for fiscal years 2013 to 2016, the Company shall pay Dr. Wiedow 120,000 Euros per year. The foregoing payments shall be made on or before December 31 of each fiscal year. In December 2008 the Company paid Dr. Wiedow 30,000 Euros. No payments were made under this agreement during 2009 or the six-months ended June 30, 2010. While the total amount owed does not currently bear interest, the Amendment provides that any late payment shall be subject to interest at an annual rate equal to the German Base Interest Rate (0.12% as of January 1, 2010) plus six percent. In the event that the Company's financial condition improves, the parties can agree to increase and/or accelerate the payments.

The Amendment also modified the royalty payment such that from the date of the Amendment the Company will not only pay Dr. Wiedow a three percent royalty on gross revenues from the Company's sale of products based on the licensed technology but also three percent of the license fees (including upfront and milestone payments and running royalties) received by the Company or its subsidiary from their sublicensing of the licensed technology.

At June 30, 2010 and December 31, 2009, the Company has accrued approximately $732,000 and $860,000, respectively. The difference in amounts at June 30, 2010 compared to December 31, 2009 is primarily attributable to the unrealized foreign currency transaction gain described in Note 5.

Dr. Wiedow, who is a director of the Company, beneficially owned approximately 45% of the Company's outstanding common stock as of June 30, 2010.

8. INCOME TAXES


The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Management evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is “more likely than not” that some or all of the deferred tax assets will not be realized. Management has determined that a full valuation allowance against the Company’s net deferred tax assets is appropriate.


There is no material income tax expense recorded for the periods ended June 30, 2010 and 2009, due to the Company's net losses and related changes to the valuation allowance for deferred tax assets.


As of June 30, 2010, the Company has a deferred tax asset and an equal amount of valuation allowance of approximately $1,736,000, relating primarily to federal and foreign net operating loss carryforwards of approximately $439,000 and $1,075,000, respectively, as discussed below, and timing differences related to the recognition of accrued licensing fees of approximately $221,000.






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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2010 (UNAUDITED)

8. INCOME TAXES (continued)


The Company has federal and foreign net operating loss carry forwards approximating $1,293,000 and $4,299,000, respectively, at June 30, 2010, which are expected to begin expiring in 2025 for federal purpose and for foreign purpose it has an indefinite life.


Utilization of the net operating losses (“NOL”) carry forwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), as well as similar state and foreign provisions. These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the market value of a company by certain stockholders or public groups. Due to the existence of the valuation allowance, future changes in the Company’s unrecognized tax benefits will not impact its effective tax rate. Any carry forwards that may expire prior to utilization as a result of such limitations will be removed, if applicable, from deferred tax assets with a corresponding reduction of the valuation allowance.


Based on management’s evaluation of uncertainty in income taxes, the Company concluded that there were no significant uncertain tax positions requiring recognition in its financial statements or related disclosures. Accordingly, no adjustments to recorded tax liabilities or accumulated deficit were required. As of June 30, 2010, there were no increases or decreases to liability for income taxes associated with uncertain tax positions.
























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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAUTIONARY STATEMENTS:

This Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company intends that such forward-looking statements be subject to the safe harbors created by such statutes. The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties. Accordingly, to the extent that this Quarterly Report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of the Company, please be advised that the Company's actual financial condition, operating results and business performance may differ materially from that projected or estimated by management in forward-looking statements.

Such differences may be caused by a variety of factors, including but not limited to adverse economic conditions, intense competition, including intensification of price competition and entry of new competitors and products, adverse federal, state and local government regulation, inadequate capital, unexpected costs and operating deficits, increases in general and administrative costs and other specific risks that may be alluded to in this Quarterly Report or in other reports issued by the Company. In addition, the business and operations of the Company are subject to substantial risks that increase the uncertainty inherent in the forward-looking statements. The inclusion of forward looking statements in this Quarterly Report should not be regarded as a representation by management or any other person that the objectives or plans of the Company will be achieved.

Since inception, the Company has generated a relatively minor amount of non-operating revenue from its licensing activities and does not expect to report any significant operating revenue until the successful development and marketing of its planned pharmaceutical and other biotech products. Additionally, after the launch of the Company's products, there can be no assurance that the Company will generate positive cash flow and there can be no assurances as to the level of revenues, if any, the Company may actually achieve from its planned principal operations.

OVERVIEW

The Company specializes in the research, development and marketing of drugs for inflammatory diseases with Elafin as its first project. The Company’s Management deems Elafin to be one of the most prospective substances in the treatment of serious tissue and muscle damage. Independently conducted animal experiments have indicated that Elafin may have benefits in the treatment of tissue and muscle damage caused by insufficient oxygen supply and therefore may be useful in the treatment of heart attacks, serious injuries and in the course of organ transplants. Other applications have yet to be determined.

The Company intends to implement Elafin as a drug in the treatment of inflammatory diseases, and plans to seek governmental approval in Europe first. Currently, management estimates that it will take at least two years to achieve its first governmental approval for the use of Elafin as a drug for the first indication.

The Company's success will depend on its ability to prove that Elafin is well tolerated by humans and its efficacy in the indicated treatment. There can be no assurance that the Company will be able to develop feasible production procedures in accordance with Good Manufacturing Practices ("GMP") standards, or that Elafin will receive any governmental approval for its use as a drug in any of the intended applications.

After developing a production procedure for Elafin, Proteo has initiated clinical trials to achieve governmental approval for the use of Elafin as a drug in Europe. For this purpose, Proteo has contracted Eurogentec, an experienced Contract Manufacturing Organization (“CMO”) located in Belgium to produce Elafin in accordance with GMP standards as required for clinical trials.


The excellent tolerability of Elafin in human subjects was demonstrated in a Phase I clinical single dose escalating study. The results of a Phase II clinical trial with Elafin for the treatment of esophagus carcinoma are currently being evaluated. The aim of this trial is to investigate the effectiveness of Elafin at suppressing the postoperative inflammatory processes. Proteo has obtained Orphan drug designations within the European Union for the use of Elafin in treatment of pulmonary arterial hypertension and for the treatment of esophagus carcinoma. Orphan drug status assures exclusive marketing rights for the treatment of the respective disease within the EU for a period of up to ten years after receiving market approval. In addition, a simplified, accelerated and less expensive approval procedure with the assistance of EMEA can be drawn upon. Classification as an orphan drug allows an accelerated approval procedure in all EU states.






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In August 2007, the Company's subsidiary entered into an agreement with Minapharm, one of the leading pharmaceutical companies in Egypt, for clinical development, production and marketing of Elafin. The Company has granted Minapharm the right to exclusively market Elafin in Egypt and certain Middle Eastern and African countries. Proteo received an upfront payment in 2007 and has deferred additional amounts received, and will receive milestone-payments and royalties on net product sales. In addition, Minapharm will take over the funding of clinical research activities for the designated region. The University of Cairo will conduct a clinical trial to study the efficacy of Elafin on kidney transplant patients. The clinical trial has already been approved by the Ethical Committee of the University of Cairo. The study will be conducted as a Phase II trial for prevention of acute and chronic allograft nephropathy, which is a devastating complication of kidney transplantation that is responsible for a significant portion of graft loss.

In January 2008 the Company entered into an agreement with Stanford University in California, to cooperate in preclinical studies related to Elafin treatment of pulmonary arterial hypertension. Proteo provides support for animal experiments that are currently conducted by Marlene Rabinovitch, Research Director of the Vera Moulton Wall Center for Pulmonary Vascular Disease at Stanford University who is a renowned expert in the field, and her group at the university. In May 2010 scientists from this group presented new preclinical data on Proteo's drug substance Elafin at the Annual International Conference of the American Thoracic Society in New Orleans. The data show that the treatment with Elafin during mechanical ventilation largely prevented the inflammation in lungs of newborn mice.

In August 2008 the Company's subsidiary received the approval for a Phase II clinical trial with Elafin by the German Federal Institute for Drugs and Medical Devices (BfArM). In this randomized, blinded, placebo-controlled Phase II trial the effect of Elafin on inflammatory parameters will be investigated in patients undergoing esophagectomy for esophagus carcinoma. The trial will be performed at the Department of General and Thoracic Surgery, University Medical Center Schleswig-Holstein, Campus Kiel. Patient recruitment was started in November 2008. The trial conduct was initially planned for one year. In the summer of 2009 it became apparent that the clinical trial center could not recruit a sufficient numbers of patients to meet the planning. Thus, the Company has extended the monocentric trial to a multicentric trial. In December 2009 all regulatory approvals were obtained to expand the trial. Two additional trial centers started recruiting patients and the recruitment and treatment was completed in April 2010. The results of this clinical trial are currently being evaluated and the final results are expected in the second half of the year 2010.


In May 2009 the Company has submitted an application for Orphan Medicinal Product Designation to the EMEA (the European FDA equivalent). Subsequent to November 5, 2009, the Committee for Orphan Medical Products of the EMEA issued a positive opinion recommending the granting of orphan medicinal product designation for recombinant human elafin for treatment of esophagus carcinoma. On January 28, 2010 the orphan designation was granted by the European Commission.


In September 2009 the Company’s subsidiary has signed a Memorandum of Understanding with the University of Edinburgh. Within the framework of collaboration, it is intended to investigate the effect of Elafin on the damage and inflammation of cardiac muscle after coronary bypass operations in a Phase II clinical trial at the University of Edinburgh. The trial, which will be headed by Dr. Peter Henriksen a leading expert in interventional cardiology at the Edinburgh Heart Centre, is planned to begin in December 2010.


In April 2010 the Company’s subsidiary entered into an agreement with the Molecular Imaging North Competence Center (MOIN CC) at the Christian-Albrechts University of Kiel. Under this agreement the effects of Elafin on vascular changes will be examined in animal models.


In June 2010 the Company signed a cooperative research and development agreement with the US Army Medical Research Institute of Infectious Diseases (USAMRIID) for Elafin. This agreement allows USAMRIID to use Proteo's Elafin and related scientific data in order to plan and conduct preclinical research on the development of new therapeutic strategies to combat life-threatening infectious diseases, in an investigation into the use of Elafin as a co-therapy with antibiotics.

The Company's goal is to obtain the first governmental regulatory approval for the first indication of the initial product in 2012. It should be noted that the first indication, if successfully developed, would have a market potential substantially smaller than the overall market of Elafin for more widespread applications such as for the treatment of cardiac infarction.

RESULTS OF OPERATIONS

OPERATING EXPENSES

The Company's operating expenses for the three-month and six-month periods ended June 30, 2010 were approximately $238,000 and $409,000, resectively, a decrease of approximately $42,000 and $51,000 over the respective periods of the prior year. This decrease is due primarily to a decrease in general and administrative expenses (mostly professional and legal fees), partially offset by a slight increase in research and development expenses.






14
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INTEREST AND OTHER INCOME (EXPENSE)

Net interest and other income (expense) for the three-month and six-month periods ended June 30, 2010 was approximately $158,000 and $214,000, respectively, compared to $36,000 and $93,000 for the respective periods in 2009, a net change of approximately $122,000 and $121,000 over the prior year three-month and six-month periods, respectively. The increases are driven primarily by foreign currency transaction gains in 2010 caused by the strengthening of the U.S. Dollar compared to the Euro.

INCOME TAXES

There is no material income tax expense recorded for the periods ended June 30, 2010 and 2009, due to the Company's net losses. As of June 30, 2010, the Company has a deferred tax asset and an equal amount of valuation allowance of approximately $1,736,000, relating primarily to federal and foreign net operating loss carryforwards of approximately $439,000 and $1,075,000, respectively, and timing differences related to the recognition of accrued licensing fees of approximately $221,000.


The Company has federal and foreign net operating loss carry forwards approximating $1,293,000 and $4,299,000, respectively at June 30, 2010, which are expected to begin expiring in 2025 for federal purpose and for foreign purpose it has an indefinite life. In the event the Company were to experience a greater than 50% change in ownership, as defined in Section 382 of the Internal Revenue Code, the utilization of the Company's tax NOLs could be severely restricted.

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS

The Company experienced a net gain/(loss) of approximately $(252,000) and $29,000 in foreign currency translation adjustments during the six-month periods ended June 30, 2010 and 2009, respectively. The changes are primarily due to a fluctuating U.S. Dollar (our reporting currency) compared to the Euro (our functional currency) during the periods.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception we have raised a total of (i) approximately $4,983,000 from the sale of 20,065,428 shares of our common stock, of which 6,585,487 shares, 300,000 shares and 1,500,000 shares have been sold at $0.40 per share, $0.84 per share and $0.60 per share, respectively, under stock subscription agreements in the amount of approximately $2,035,000, $252,000 and $900,000, respectively, and (ii) $1,829,000 from the sale of 600,000 shares of the Company's non-voting Series A Preferred Stock. The balance of the purchase price for the Series A Preferred Stock is evidenced by a promissory note which, as of June 30, 2010, had a principal balance of $1,595,000. See Note 2 to the condensed consolidated financial statements included elsewhere herein for the payment terms under the promissory note.

The Company has cash approximating $336,000 as of June 30, 2010 to support current and future operations. This is a decrease of $353,000 over the December 31, 2009 cash balance of approximately $689,000.

Management believes that the Company will not generate any significant revenues in the next few years, nor will it have sufficient cash to fund future operations. As a result, the Company's success will largely depend on its ability to generate revenues from out-licensing activities, secure additional funding through the sale of its common stock, preferred stock and/or debt securities. There can be no assurance, however, that the Company will be able to generate revenues from out-licensing activities and/or to consummate a debt or equity financing in a timely manner, or on terms favorable to the Company, if at all.

GOING CONCERN

The Company's independent registered public accounting firm stated in their Auditors’ Report included in the Company’s Form 10-K for the year ended December 31, 2009 dated March 26, 2010, that the Company will require a significant amount of additional capital to advance the Company's products to the point where they may become commercially viable and has incurred significant losses since inception. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern. Therefore, the Company will be required to seek additional funds to finance its long-term operations. The successful outcome of future activities cannot be determined at this time and there is no assurance that if achieved, the Company will have sufficient funds to execute its intended business plan or generate positive operating results.

OFF BALANCE SHEET ARRANGEMENTS

The Company does not currently have any off balance sheet arrangements.

CAPITAL EXPENDITURES

None significant.






15
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

A smaller reporting company ("SRC") is not required to provide any information in response to Item 305 of Regulation S-K.

ITEM 4T. CONTROLS AND PROCEDURES

a) Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including to Birge Bargmann our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15 under the Exchange Act, our management, including Birge Bargmann our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2010. Based on that evaluation, Ms. Bargmann concluded that as of June 30, 2010, and as of the date that the evaluation of the effectiveness of our disclosure controls and procedures was completed, our disclosure controls and procedures were effective.

b) Changes in Internal Control Over Financial Reporting

Our management, with the participation of the Chief Executive Officer and Chief Financial Officer, has concluded there were no significant changes in our internal controls over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.












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PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

None.

ITEM 1A. RISK FACTORS

Not required for SRCs.

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.

Exhibits:

31.1 Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.


31.2 Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.


32 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.






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SIGNATURES

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

PROTEO, INC.

Dated: August 6, 2010 By: /s/ Birge Bargmann
Birge Bargmann
Principal Executive Officer and Chief Financial Officer
(signed both as an Officer duly authorized to sign on behalf of the Registrant and Principal Financial Officer and Chief Accounting Officer)

[mylastlovestory]

hallo Baronin123 gab es denn eine Antwort auf Ihre Fragen?
Niemwolf, die Links zu Terrsolith und Eridanus sagen mir gar nichts, habe auch nichts gefunden was mit Proteo zu tun haben könnte oder Cowboyhut, bitte um Aufklärung....THANK YOU

[mylastlovestory]

...sieht ganz nach 9/11 aus ......passt irgendwie zum Thema ARMY

[niemwolf]

Antwort auf Beitrag Nr.: 40.051.638 von mylastlovestory am 26.08.10 19:14:07

Sehe deine Frage jetzt erst. Bin jetzt aber zu müde. Aufklärung morgen.

[kaubeuhut]

Antwort auf Beitrag Nr.: 40.144.255 von niemwolf am 13.09.10 21:57:43

Unglaublich. Immer mehr Kranke auf den Boards.

[niemwolf]

Antwort auf Beitrag Nr.: 40.051.638 von mylastlovestory am 26.08.10 19:14:07

Eine Kurzfassung: dieser Rolf Gerber von Terrsolith kommt von FID Esprit und hat folgendes gemacht:

http://www.regent.vc/fund_details_EN.php?idSegment_Number=SF…

Und das Portfolio von Eridanus besteht aus Proteo und Sangui.

[mylastlovestory]

Antwort auf Beitrag Nr.: 40.157.209 von niemwolf am 15.09.10 18:59:24

....sieht aus wie eine verwirrende Verstrickung von "dunklen Kanälen", die ich jedenfalls nicht überblicke. Soll wahrscheinlich auch so beabsichtigt sein. Mein Fazit: Jemand hat die absolute Macht und nutzt sie auch, sein Name taucht nicht auf. Ich tippe auf Cowboyhut alias Mr. Crook, das bedeutet: die Anleger schauen am Ende doch in die Röhre.....
Danke Nienwolf, mehr davon....nach Möglichkeit mit mehr Transparenz oder Kommentare

[niemwolf]

Antwort auf Beitrag Nr.: 40.157.661 von mylastlovestory am 15.09.10 19:59:51

Für Kommentare bin ich leider meist zu schreibfaul, sorry. Und vermißt du zufällig diesen Namen hier?

Eingetragene Personen neu oder mutierend: Kutscher, Alex, deutscher Staatsangehöriger, in Bubikon, Mitglied, mit Einzelunterschrift [bisher: in Frankfurt (D), Präsident].

[Plusmaker]

Antwort auf Beitrag Nr.: 40.157.946 von niemwolf am 15.09.10 20:35:23

Axel Kutscher

[kaubeuhut]

Antwort auf Beitrag Nr.: 40.157.946 von niemwolf am 15.09.10 20:35:23

Wer ist Alex Kutscher? Kläre uns bitte auf, - oh Du grosser Leitwolf.

[niemwolf]

Antwort auf Beitrag Nr.: 40.162.899 von Plusmaker am 16.09.10 16:42:39

Meine Güte, bist du kleinlich. Schon klar, das der so heißt. Ich hab`s einfach so aus einer etwas älteren Schweizerischen Handelsamtsblatt - Meldung zu Terrsolith kopiert. Also bitte dort beschweren, das die den Namen nicht richtig geschrieben haben.

[niemwolf]

Antwort auf Beitrag Nr.: 40.164.621 von niemwolf am 16.09.10 21:00:13

Sorry, nicht zu Terrsolith sondern zu FID Esprit.

[kaubeuhut]

Antwort auf Beitrag Nr.: 40.164.621 von niemwolf am 16.09.10 21:00:13

Kann mir kaum vorstellen, dass sich die Schweizer bei ihrer sprichwörtlichen Gründlichkeit, Genauigkeit, Sorgfalt und Gewissenhaftigkeit geirrt haben.

Ea muss und kann sich eigentlich nur um eine völlig andere Person handeln.

[niemwolf]

Antwort auf Beitrag Nr.: 40.168.989 von kaubeuhut am 17.09.10 14:39:39

Mal wieder `ne Bildstörung?

Loan Agreement

between

FID Esprit AG
Rosengartenstrasse 4
CH-8608 Bubikon
Represented by Axel Kutscher (subsequently „FID Esprit”)

and

Sangui BioTech International, Inc.
Alfred-Herrhausen-Str.44
58455 Witten

[kaubeuhut]

Antwort auf Beitrag Nr.: 40.169.203 von niemwolf am 17.09.10 15:02:06

Eben! Sag ich doch. Völlig andere Person. Abgesehen davon: Ich wünsche Dir beim Dummenfang weiterhin viel Glück!

[niemwolf]

Antwort auf Beitrag Nr.: 40.169.700 von kaubeuhut am 17.09.10 16:02:43

Häh? Das mußt du mir jetzt aber mal erklären, warum die gleiche Person auf einmal eine völlig andere sein soll.

[kaubeuhut]

Antwort auf Beitrag Nr.: 40.170.072 von niemwolf am 17.09.10 16:44:45

Wie läuft Deine bauernfängermasche eigentlich in der letzten Zeit.

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beleidigung

[niemwolf]

!

Dieser Beitrag wurde moderiert. Grund: Beleidigung

[kaubeuhut]

Antwort auf Beitrag Nr.: 40.175.562 von niemwolf am 19.09.10 20:22:00

Ja, ist es so, oder ist es nicht so.

[mylastlovestory]

halli hallo in der Tat, es ist so...ich meine so ist es wirklich oder doch nicht?

Grüße alle Aktionäre.......und Abzocker....:
Ist es überhaupt erlaubt die Öffentlichkeit von der Existenz dieser Fonds nicht in Kenntnis zu setzen?
Wieviele Fonds hat cowboyhut denn noch?

Andere Fragen erspare ich mir, der Preis ist mir mittlerweile WURST.....

[MvL]

!

Dieser Beitrag wurde moderiert.

[niemwolf]

Antwort auf Beitrag Nr.: 40.202.414 von MvL am 24.09.10 01:17:37

Ich glaube die ID kannst du beerdigen.

[kaubeuhut]

Antwort auf Beitrag Nr.: 40.202.624 von niemwolf am 24.09.10 07:50:34

Bei der Gelegenheit kannst du dich dann auch gleich mit beerdigen.

[mylastlovestory]

.... und ich hatte schon angenommen "Horst Schlemmer" alias cowboyhut sei endlich verhaftet....na ja vielleicht war es doch nur eine länger dauernde Schönheits OP.......

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beleidigung

[kaubeuhut]

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


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


FORM 10-Q


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



(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended September 30, 2010

OR

o 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 000-30728

PROTEO, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


NEVADA 88-0292249
(STATE OR OTHER JURISDICTION OF
INCORPORATION OR ORGANIZATION) (I.R.S. EMPLOYER
IDENTIFICATION NO.)

2102 BUSINESS CENTER DRIVE, IRVINE, CALIFORNIA 92612
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)


[phone]
(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 such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o .


Indicate by check mark whether the registrant has submitted electronically and posted on its web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o .

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 definition of "large accelerated filer," "an accelerated filer” and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer o Accelerated filer o

Non-accelerated filer o 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 o No x .

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

CLASS NUMBER OF SHARES OUTSTANDING
Common Stock, $0.001 par value 23,879,350 shares of common stock at November 11, 2010




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

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




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






PROTEO, INC.
AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)

TABLE OF CONTENTS

Page

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements:
Condensed Consolidated Balance Sheets as of September 30, 2010 (unaudited) and December 31, 2009 3

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three-month and Nine-month Periods Ended September 30, 2010 and 2009, and for the Period From November 22, 2000 (Inception) Through September 30, 2010 4

Unaudited Condensed Consolidated Statements of Cash Flows for the Nine-month Periods Ended September 30, 2010 and 2009, and for the Period From November 22, 2000 (Inception) Through September 30, 2010 5

Notes to Unaudited Condensed Consolidated Financial Statements 6

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 13

Item 3. Quantitative and Qualitative Disclosure About Market Risk 16

Item 4T. Controls and Procedures 16

PART II. OTHER INFORMATION 17

Item 1. Legal Proceedings 17

Item 1A. Risk Factors 17

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17

Item 3. Defaults Upon Senior Securities 17

Item 4. [Removed and Reserved] 17

Item 5. Other Information 17

Item 6. Exhibits 17

SIGNATURES 18




2
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS



ASSETS
September 30, December 31,
2010 2009
(Unaudited)


CURRENT ASSETS
Cash and cash equivalents $ 340,258 $ 689,126
Research supplies inventory 534,253 581,919
Prepaid expenses and other current assets 38,613 67,469
913,124 1,338,514

PROPERTY AND EQUIPMENT, NET 184,575 232,469
$ 1,097,699 $ 1,570,983

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 118,289 $ 190,627
Accrued licensing fees 81,672 85,998
199,961 276,625

LONG TERM LIABILITIES
Deferred fees 111,334 117,230
Accrued licensing fees 735,048 773,982
846,382 891,212

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Non-voting preferred stock, par value $0.001 per share; 10,000,000 shares authorized; 661,500 and 630,000 shares issued and outstanding at September 30, 2010 and December 31, 2009, respectively 662 630
Common stock, par value $0.001 per share; 300,000,000 shares authorized; 23,879,350 shares issued and outstanding 23,880 23,880
Additional paid-in capital 8,567,634 8,567,634
Note receivable for sale of preferred stock (1,478,477 ) (1,731,306 )
Accumulated other comprehensive income 214,305 316,528
Deficit accumulated during development stage (7,276,648 ) (6,774,220 )
Total Proteo, Inc. Stockholders' Equity 51,356 403,146
Noncontrolling Interest - -
Total Stockholders' Equity 51,356 403,146
Total Liabilities and Stockholders' Equity $ 1,097,699 $ 1,570,983



SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



3
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE THREE MONTH AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2010 AND 2009
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH SEPTEMBER 30, 2010


NOVEMBER 22,
2000
THREE MONTHS ENDED NINE MONTHS ENDED (INCEPTION)
SEPTEMBER 30, SEPTEMBER 30, THROUGH
SEPTEMBER 30,
2010 2009 2010 2009 2010
- - - - -
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

REVENUES $ - $ - $ - $ - $ -

EXPENSES
General and administrative 100,980 121,502 271,173 357,044 4,645,870
Research and development 70,588 123,188 308,955 347,734 2,974,664
171,568 244,690 580,128 704,778 7,620,534
INTEREST AND OTHER INCOME (EXPENSE), NET (136,030 ) (19,362 ) 77,732 73,178 280,944
NET LOSS (307,598 ) (264,052 ) (502,396 ) (631,600 ) (7,339,590 )

LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST - - - - 63,004
NET LOSS ATTRIBUTABLE TO PROTEO, INC. (307,598 ) (264,052 ) (502,396 ) (631,600 ) (7,276,586 )

PREFERRED STOCK DIVIDEND - - (32 ) (30 ) (62 )
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (307,598 ) $ (264,052 ) $ (502,428 ) $ (631,630 ) $ (7,276,648 )
BASIC AND DILUTED LOSS ATTRIBUTABLE TO PROTEO, INC.
COMMON SHAREHOLDERS $ (0.01 ) $ (0.01 ) $ (0.02 ) $ (0.03 )

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 23,879,350 23,879,350 23,879,350 23,879,350


CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

NET LOSS ATTRIBUTABLE TO PROTEO, INC. $ (307,598 ) $ (264,052 ) $ (502,396 ) $ (631,600 ) $ (7,276,586 )

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS 149,965 40,459 (102,223 ) 69,564 214,305
COMPREHENSIVE LOSS $ (157,633 ) $ (223,593 ) $ (604,619 ) $ (562,036 ) $ (7,062,281 )


SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS




4
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTH AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2010 AND 2009
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH SEPTEMBER 30, 2010



NOVEMBER 22,
2000
NINE MONTHS ENDED (INCEPTION)
SEPTEMBER 30, THROUGH
SEPTEMBER 30,
2010 2009 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (502,396 ) $ (631,600 ) $ (7,276,586 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 36,281 42,375 427,482
Bad debt expense - - 60,408
Loss on disposal of equipment - - 4,518
Foreign currency transaction (gains) losses (70,722 ) 29,700 126,840
Changes in operating assets and liabilities:
Research supplies inventory 17,800 (4,360 ) (565,700 )
Prepaid expenses and other current assets 24,642 (135,747 ) (102,080 )
Accounts payable and accrued liabilities (63,711 ) 3,622 88,713
Deferred revenue - - 120,341
Accrued licensing fees - - 660,713
NET CASH USED IN OPERATING ACTIVITIES (558,106 ) (696,010 ) (6,455,351 )

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (1,246 ) (19,210 ) (634,860 )
Cash of reorganized entity - - 27,638
NET CASH USED IN INVESTING ACTIVITIES (1,246 ) (19,210 ) (607,222 )

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock - - 1,792,610
Proceeds from subscribed common stock and issuance of preferred stock 252,829 474,030 5,312,498
NET CASH PROVIDED BY FINANCING ACTIVITIES 252,829 474,030 7,105,108
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS (42,345 ) 27,966 297,723
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (348,868 ) (213,224 ) 340,258
CASH AND CASH EQUIVALENTS--BEGINNING OF PERIOD 689,126 1,237,450 -
CASH AND CASH EQUIVALENTS--END OF PERIOD $ 340,258 $ 1,024,226 $ 340,258


SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



5
--------------------------------------------------------------------------------




PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2010 (UNAUDITED)

1. NATURE OF BUSINESS AND BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying condensed consolidated balance sheet as of December 31, 2009, which has been derived from audited financial statements, and the accompanying interim condensed consolidated financial statements as of September 30, 2010, for the three-month and nine-month periods ended September 30, 2010 and 2009, and for the period from November 22, 2000 (Inception) through September 30, 2010 have been prepared by management pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments and accruals) necessary to present fairly the financial condition, results of operations and cash flows of Proteo, Inc. and its wholly owned subsidiary (hereinafter collectively referred to as the "Company") as of and for the periods presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Operating results for the three-month and nine-month periods ended September 30, 2010 are not necessarily indicative of the results that may be expected for the year ending December 31, 2010 or for any other interim period during such year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 filed with the SEC on March 29, 2010.

NATURE OF BUSINESS

The Company intends to develop, manufacture, promote and market pharmaceuticals and other biotech products. The Company is focused on the development of pharmaceuticals based on the human protein Elafin which naturally occurs in human skin, lungs and mammary glands. The Company believes Elafin may be useful in the treatment of cardiac infarction, serious injuries caused by accidents, post surgery damage to tissue, complications resulting from organ transplantations and pulmonary arterial hypertension.

The products that the Company is developing are considered drugs or biologics, and hence are governed by the Federal Food, Drug and Cosmetics Act (in the United States) and the regulations of State and various foreign government agencies. The Company's proposed pharmaceutical products to be used by humans are subject to certain clearance procedures administered by the above regulatory agencies.

Since its inception, the Company has primarily been engaged in the research and development of its proprietary product Elafin. Once the research and development phase is complete, the Company intends to manufacture and seek the various governmental regulatory approvals for the marketing of Elafin. Management believes that none of its planned products will produce sufficient revenues in the near future. As a result, the Company plans to identify and develop other potential products. There are no assurances, however, that the Company will be able to develop such products, or if produced, that they will be accepted in the marketplace.

Proteo, Inc.'s common stock is currently quoted on the OTC Bulletin Board of the Financial Industry Regulatory Authority under the symbol "PTEO".

DEVELOPMENT STAGE AND GOING CONCERN CONSIDERATIONS

The Company has been in the development stage since it began operations on November 22, 2000, and has not generated any significant revenues from operations. Management plans to generate revenues from product sales, but there is no commitment by any persons for purchase of any of the proposed products and there is no assurance of any future revenue. The Company will require substantial additional funding for continuing research and development, obtaining regulatory approvals and for the commercialization of its product. There can be no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.



6
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2010 (UNAUDITED)

DEVELOPMENT STAGE AND GOING CONCERN CONSIDERATIONS (continued)


Management has taken action to address these matters, which include:

· Retention of experienced management personnel with particular skills in the development of such products;



· Attainment of technology to develop biotech products; and



· Raising additional funds through the sale of debt and/or equity securities.


In the absence of significant sales and profits, the Company may seek to raise funds to meet its future working capital requirements through the additional sales of debt and/or equity securities. There is no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.

These circumstances, among others, raise concerns about the Company's ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

CONCENTRATIONS

The Company maintains substantially all of its cash in bank accounts at a German private commercial bank. The Company's bank accounts at this financial institution are presently protected by the voluntary "Deposit Protection Fund of The German Private Commercial Banks". The Company has not experienced any losses in these accounts.

Proteo, Inc.'s operations, including research and development activities and most of its assets are located in Germany. The Company's operations are subject to various political, economic, and other risks and uncertainties inherent in Germany and the European Union.

OTHER RISKS AND UNCERTAINTIES

Proteo, Inc.'s line of future pharmaceutical products being developed by its German subsidiary are considered drugs or biologics, and as such, are governed by the Federal Food, Drug and Cosmetics Act (in the United States) and by the regulations of State agencies and various foreign government agencies. There can be no assurances that the Company will obtain the regulatory approvals required to market its products. The pharmaceutical products under development in Germany will be subject to more stringent regulatory requirements because they are recombinant products for humans. The Company has no experience in obtaining regulatory clearance on these types of products. Therefore, the Company will be subject to the risks of delays in obtaining or failing to obtain regulatory clearance and other uncertainties, including financial, operational, technological, regulatory and other risks associated with an emerging business, including the potential risk of business failure.

The Company is exposed to risks related to fluctuations in foreign currency exchange rates. Management does not utilize derivative instruments to hedge against such exposure.

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements have been prepared in accordance with GAAP and include the accounts of Proteo, Inc. and Proteo Biotech AG, its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

Effective January 1, 2009, the Company adopted new guidance to the Consolidation Topic of the Financial Accounting Standard Board’s (“FASB”) new Accounting Standards Codification (“ASC” or “Codification”). This guidance improves the relevance, comparability and transparency of the financial information that a company provides in its consolidated financial statements by establishing accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This standard requires the Company to classify noncontrolling interests (previously referred to as "minority interest") as part of consolidated net earnings and to include the accumulated amount of noncontrolling interests as part of stockholders' equity.


7
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2010 (UNAUDITED)

PRINCIPLES OF CONSOLIDATION (continued)


The net loss amounts the Company has previously reported are now presented as "Net loss attributable to Proteo, Inc." and, as required by the Codification, loss per share continues to reflect amounts attributable only to the Company. Similarly, in the presentation of stockholders' equity, the Company distinguishes between equity amounts attributable to the Company's stockholders and amounts attributable to the noncontrolling interest - previously classified as minority interest outside of stockholders' equity. In addition to these financial reporting changes, this guidance provides for significant changes in accounting related to noncontrolling interests; specifically, increases and decreases in the Company's controlling financial interests in consolidated subsidiaries will be reported in equity similar to treasury stock transactions. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. Except for presentation, the implementation of this guidance did not have a material effect on the Company's condensed consolidated financial statements because a substantive contractual arrangement specifies the attribution of net earnings and loss not to exceed the noncontrolling interest.


FAIR VALUE OF FINANCIAL INSTRUMENTS AND CERTAIN OTHER ASSETS/LIABILITIES

The Fair Value Measurements and Disclosures Topic of the ASC requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. Management believes that the carrying amounts of the Company's financial instruments, consisting primarily of cash and cash equivalents, accounts payable and accrued liabilities, approximate their fair value at September 30, 2010 due to their short-term nature. The Company does not have any assets or liabilities that are measured at fair value on a recurring basis and, during the nine-month periods ended September 30, 2010 and 2009 and for the period from November 22, 2000 (Inception) through September 30, 2010, did not have any assets or liabilities that were measured at fair value on a non-recurring basis.

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS

Effective September 30, 2009, the Company adopted the FASB’s new ASC as the single source of authoritative accounting guidance under the Generally Accepted Accounting Principles Topic. The ASC does not create new accounting and reporting guidance, rather it reorganizes GAAP pronouncements into approximately 90 topics within a consistent structure. All guidance in the ASC carries an equal level of authority. Relevant portions of authoritative content, issued by the SEC, for SEC registrants, have been included in the ASC. After the effective date of the Codification, all nongrandfathered, non-SEC accounting literature not included in the ASC is superseded and deemed nonauthoritative. Adoption of the Codification also changed how the Company references GAAP in its condensed consolidated financial statements.


In January 2010, the FASB issued ASU No. 2010-06, Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements. This ASU requires some new disclosures and clarifies some existing disclosure requirements about fair value measurement as set forth in Codification Subtopic 820-10. The FASB’s objective is to improve these disclosures and, thus, increase the transparency in financial reporting. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Early application is permitted. The adoption of this guidance had no impact on the Company’s condensed consolidated financial statements.


In December 2009, the FASB issued ASU 2009-17, Consolidations (Topic 810) - Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, which codifies FASB Statement No. 167, Amendments to FASB Interpretation No. 46(R). ASU 2009-17 represents a revision to former FASB Interpretation No. 46 (Revised December 2003), Consolidation of Variable Interest Entities, and changes how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. ASU 2009-17 also requires a reporting entity to provide additional disclosures about its involvement with variable interest entities and any significant changes in risk exposure due to that involvement. A reporting entity will be required to disclose how its involvement with a variable interest entity affects the reporting entity’s financial statements. ASU 2009-17 is effective at the start of a reporting entity’s first fiscal year beginning after November 15, 2009, or January 1, 2010, for a calendar year-end entity. Early application is not permitted. The adoption of this guidance had no impact on the Company’s consolidated financial statements.



8
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2010 (UNAUDITED)

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS (continued)

In June 2009, the FASB issued Statements on Financial Accounting Standards (“SFAS”) No. 166, Accounting for Transfers of Financial Assets—An Amendment of FASB Statement 140, which eliminates the concept of qualified special purpose entities (QSPEs) and provides additional criteria transferors must use to evaluate transfers of financial assets. This standard modifies certain guidance contained in FASB ASC 860 and is adopted into the Codification through the issuance of ASU 2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets. In order to determine whether a transfer is accounted for as a sale, the transferor must assess whether it and all of its consolidated entities have surrendered control of the financial assets. The standard also requires financial assets and liabilities retained from a transfer accounted for as a sale to be initially recognized at fair value. This standard is effective for fiscal years and interim periods beginning after November 15, 2009, with adoption applied prospectively for transfers that occur on or after the effective date. The adoption of this guidance had no impact on the Company’s consolidated financial statements.


Except as described above, in the opinion of management, neither the FASB, its Emerging Issues Task Force, the AICPA, nor the SEC have issued any additional accounting pronouncements since the Company filed its December 31, 2009, Form 10-K that are expected to have material impact on the Company's future consolidated financial statements.




2. STOCK SUBSCRIPTIONS RECEIVABLE AND OTHER EQUITY TRANSACTIONS

The Company is authorized to issue 10,000,000 shares of preferred stock, $0.001 par value. Except as described below, the Board of Directors has not designated any liquidation value, dividend rates or other rights or preferences with respect to any shares of preferred stock.

The Board of Directors has designated 750,000 preferred shares as non-voting Series A Preferred Stock. As more fully described in the Company’s Form 8-K filed with the SEC on June 11, 2008, holders of Series A Preferred Stock are entitled to receive preferential dividends, if and when declared, at the per share rate of twice the per share amount of any cash or non-cash dividend distributed to holders of the Company's common stock. If no dividend is distributed to common stockholders, the holders of Series A Preferred Stock are entitled to an annual stock dividend payable at the rate of one share of Series A Preferred Stock for each twenty shares of Series A Preferred Stock owned by each holder of Series A Preferred Stock. The annual stock dividend shall be paid on June 30 of each year commencing in 2009 and no stock dividends will be paid after December 31, 2011.


On June 9, 2008, the Company entered into a Preferred Stock Purchase Agreement ("Stock Purchase Agreement") with FIDEsprit (the “Investor”), a common stockholder and related party. Pursuant to the Stock Purchase Agreement, the Company sold and issued to the Investor 600,000 shares of Series A Preferred Stock at a price of $6.00 per share, for an aggregate price of $3,600,000 ("Purchase Price"). In payment of the Purchase Price, the Investor delivered to the Company a promissory note in the amount of $3,600,000 (the “Note”), maturing on March 31, 2009. The Note was guaranteed by a principal of the Investor (the “Guaranty”). The Series A Preferred Stock note receivable is reported as a reduction of stockholders' equity.

On July 6, 2009, the Company and Investor entered into a Forbearance Agreement and General Release (the “Forbearance Agreement”) to renegotiate the terms of the Note. Pursuant to the Forbearance Agreement, the Investor acknowledged and agreed that, as of July 6, 2009, it was obligated to the Company under the Note for the aggregate sum of $1,940,208 (the “Indebtedness”), which represented the unpaid principal amount as of such date plus a late charge equal to three percent (3%) of the unpaid principal amount (approximately $65,000). In exchange for the Company’s agreement to forbear from exercising its rights under the Note and Guaranty, the Investor agreed to pay the Indebtedness by making monthly payments in the amount of $140,000 commencing on the first business day of September 2009 and continuing on the first business day of each succeeding month thereafter until the Indebtedness is paid in full. As of September 30, 2009, the first installment of $140,000 had not been fully paid, and therefore the Investor was technically in default of the Forbearance Agreement.




9
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2010 (UNAUDITED)

2. STOCK SUBSCRIPTIONS RECEIVABLE AND OTHER EQUITY TRANSACTIONS (continued)


On February 11, 2010, the Company entered into an Agreement on the Assumption of Debt (“Agreement”) between the Company, btd biotech development GmBH (“Assignee”), and Axel J. Kutscher (the “Guarantor” of the Note). Pursuant to the Agreement, the Company consented to Assignee’s assumption of the obligations owed to the Company by Investor under the Note, Stock Purchase Agreement and Forbearance Agreement. The Guarantor consented to the assumption of the obligations owed to the Company by Investor and acknowledged, agreed, and consented to the continuing validity of his guaranty. During the nine-month period ended September 30, 2010, the Company received payments approximating $253,000, in connection with this agreement. The note receivable approximated $1,478,000 at September 30, 2010.


Effective June 30, 2010 and 2009, the Company declared a stock dividend of 31,500 shares and 30,000 shares, respectively, of Series A Preferred Stock payable to its Series A Preferred Stock holders pursuant to the Stock Purchase Agreement.


There were no issuances of common stock during the nine-month periods ended September 30, 2010 and 2009, nor have any stock options been granted from inception to date.

3. LOSS PER COMMON SHARE

Basic loss per common share is computed based on the weighted average number of shares outstanding for the period. Diluted loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average shares outstanding assuming all dilutive potential common shares were issued. There were no dilutive potential common shares outstanding at September 30, 2010 and 2009. Additionally, there were no adjustments to net loss to determine net loss available to common shareholders. As such, basic and diluted loss per common share equals net loss, as reported, divided by the weighted average common shares outstanding for the respective periods.

4. FOREIGN CURRENCY TRANSLATION

Assets and liabilities of the Company's German operations are translated from Euros (the functional currency) into U.S. dollars (the reporting currency) at period-end exchange rates; equity transactions are translated at historical rates; and income and expenses are translated at weighted average exchange rates for the period. Net foreign currency exchange gains or losses resulting from such translations are excluded from the results of operations but are included in other comprehensive income and accumulated in a separate component of stockholders' equity. Accumulated comprehensive income approximated $214,000 at September 30, 2010 and $317,000 at December 31, 2009.

5. FOREIGN CURRENCY TRANSACTIONS

The Company records payables related to a certain licensing agreement (Note 7) in accordance with the Foreign Currency Matters Topic of the Codification. Quarterly commitments under such agreement are denominated in Euros. For each reporting period, the Company translates the quarterly amount to U.S. dollars at the exchange rate effective on that date. If the exchange rate changes between when the liability is incurred and the time payment is made, a foreign exchange gain or loss results. The Company has made no payments under this licensing agreement during the nine-month periods ended September 30, 2010 and 2009, and, therefore, has not realized any significant foreign currency exchanges gains or losses during these periods.

Additionally, the Company computes a foreign exchange gain or loss at each balance sheet date on all recorded transactions denominated in foreign currencies that have not been settled. The difference between the exchange rate that could have been used to settle the transaction on the date it occurred and the exchange rate at the balance sheet date is the gain or loss that is currently recognized. The Company recorded foreign currency transaction gains (losses) of approximately $71,000 and ($30,000) for the nine-month periods ended September 30, 2010 and 2009, respectively, which are included in interest and other income (expense), net in the accompanying condensed consolidated statements of operations and comprehensive loss.

6. SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION

The Company considers itself to operate in one segment and has not generated any significant operating revenues since its inception. All of the Company's property and equipment is located in Germany.


10
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2010 (UNAUDITED)

7. DR. WIEDOW LICENSE AGREEMENT

On December 30, 2000, the Company entered into a thirty-year license agreement, beginning January 1, 2001 (the "License Agreement"), with Dr. Oliver Wiedow, MD, the owner and inventor of several patents, patent rights and technologies related to Elafin. Pursuant to the License Agreement, the Company agreed to pay Dr. Wiedow an annual license fee of 110,000 Euros for a period of six years. No payments were made through fiscal year 2003. In 2004, the License Agreement was amended to require the Company to make annual payments of 30,000 Euros, to be paid on July 15 of each year, beginning in 2004. Such annual payment could be increased to 110,000 Euros by June 1 of each year based on an assessment of the Company's financial ability to make such payments. In December 2007 the Company paid Dr. Wiedow 30,000 Euros. The License Agreement was again amended by an Amendment Agreement to the License Agreement (the "Amendment") dated December 23, 2008. Pursuant to the Amendment, the Company and Dr. Wiedow agreed that the Company would pay the outstanding balance of 630,000 Euros to Dr. Wiedow as follows: for fiscal years 2008 to 2012, the Company shall pay Dr. Wiedow 30,000 Euros per year, and for fiscal years 2013 to 2016, the Company shall pay Dr. Wiedow 120,000 Euros per year. The foregoing payments shall be made on or before December 31 of each fiscal year. In December 2008 the Company paid Dr. Wiedow 30,000 Euros. No payments were made under this agreement during 2009 or the nine-months ended September 30, 2010. While the total amount owed does not currently bear interest, the Amendment provides that any late payment shall be subject to interest at an annual rate equal to the German Base Interest Rate (0.12% as of January 1, 2010) plus six percent. In the event that the Company's financial condition improves, the parties can agree to increase and/or accelerate the payments.

The Amendment also modified the royalty payment such that from the date of the Amendment the Company will pay Dr. Wiedow a three percent royalty on gross revenues from the Company's sale of products based on the licensed technology and three percent of the license fees (including upfront and milestone payments and running royalties) received by the Company or its subsidiary from their sublicensing of the licensed technology. No such fees have yet been paid.

At September 30, 2010 and December 31, 2009, the Company has accrued approximately $817,000 and $860,000, respectively. The difference in amounts at September 30, 2010 compared to December 31, 2009 is primarily attributable to the unrealized foreign currency transaction gain described in Note 5.

Dr. Wiedow, who is a director of the Company, beneficially owned approximately 45% of the Company's outstanding common stock as of September 30, 2010.

8. INCOME TAXES


The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Management evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is “more likely than not” that some or all of the deferred tax assets will not be realized. Management has determined that a full valuation allowance against the Company’s net deferred tax assets is appropriate.


There is no material income tax expense recorded for the periods ended September 30, 2010 and 2009, due to the Company's net losses and related changes to the valuation allowance for deferred tax assets.


As of September 30, 2010, the Company has a deferred tax asset and an equal amount of valuation allowance of approximately $1,954,000, relating primarily to federal and foreign net operating loss carryforwards of approximately $453,000 and $1,233,000, respectively, as discussed below, and timing differences related to the recognition of accrued licensing fees of approximately $268,000.




11
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2010 (UNAUDITED)

8. INCOME TAXES (continued)


The Company has federal and foreign net operating loss carry forwards approximating $1,334,000 and $4,931,000, respectively at September 30, 2010, which are expected to begin expiring in 2025 for federal purpose and for foreign purpose it has an indefinite life.


Utilization of the net operating losses (“NOL”) carry forwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), as well as similar state and foreign provisions. These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the market value of a company by certain stockholders or public groups. Due to the existence of the valuation allowance, future changes in the Company’s unrecognized tax benefits will not impact its effective tax rate. Any carry forwards that may expire prior to utilization as a result of such limitations will be removed, if applicable, from deferred tax assets with a corresponding reduction of the valuation allowance.


Based on management’s evaluation of uncertainty in income taxes, the Company concluded that there were no significant uncertain tax positions requiring recognition in its financial statements or related disclosures. Accordingly, no adjustments to recorded tax liabilities or accumulated deficit were required. As of September 30, 2010, there were no increases or decreases to liability for income taxes associated with uncertain tax positions.





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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAUTIONARY STATEMENTS:

This Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company intends that such forward-looking statements be subject to the safe harbors created by such statutes. The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties. Accordingly, to the extent that this Quarterly Report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of the Company, please be advised that the Company's actual financial condition, operating results and business performance may differ materially from that projected or estimated by management in forward-looking statements.

Such differences may be caused by a variety of factors, including but not limited to adverse economic conditions, intense competition, including intensification of price competition and entry of new competitors and products, adverse federal, state and local government regulation, inadequate capital, unexpected costs and operating deficits, increases in general and administrative costs and other specific risks that may be alluded to in this Quarterly Report or in other reports issued by the Company. In addition, the business and operations of the Company are subject to substantial risks that increase the uncertainty inherent in the forward-looking statements. The inclusion of forward looking statements in this Quarterly Report should not be regarded as a representation by management or any other person that the objectives or plans of the Company will be achieved.

Since inception, the Company has generated a relatively minor amount of non-operating revenue from its licensing activities and does not expect to report any significant operating revenue until the successful development and marketing of its planned pharmaceutical and other biotech products. Additionally, after the launch of the Company's products, there can be no assurance that the Company will generate positive cash flow and there can be no assurances as to the level of revenues, if any, the Company may actually achieve from its planned principal operations.

OVERVIEW

The Company specializes in the research, development and marketing of drugs for inflammatory diseases with Elafin as its first project. The Company’s management deems Elafin to be one of the most prospective substances in the treatment of serious tissue and muscle damage. Independently conducted animal experiments have indicated that Elafin may have benefits in the treatment of tissue and muscle damage caused by insufficient oxygen supply and therefore may be useful in the treatment of heart attacks, serious injuries and in the course of organ transplants. Other applications have yet to be determined.

The Company intends to implement Elafin as a drug in the treatment of inflammatory diseases, and plans to seek governmental approval in Europe first. Currently, management estimates that it will take at least two years to achieve its first governmental approval for the use of Elafin as a drug for the first indication.

The Company's success will depend on its ability to prove that Elafin is well tolerated by humans and its efficacy in the indicated treatment. There can be no assurance that the Company will be able to develop feasible production procedures in accordance with Good Manufacturing Practices ("GMP") standards, or that Elafin will receive any governmental approval for its use as a drug in any of the intended applications.

After developing a production procedure for Elafin, Proteo has initiated clinical trials to achieve governmental approval for the use of Elafin as a drug in Europe. For this purpose, Proteo has contracted Eurogentec, an experienced Contract Manufacturing Organization (“CMO”) located in Belgium to produce Elafin in accordance with GMP standards as required for clinical trials.


The excellent tolerability of Elafin in human subjects was demonstrated in a Phase I clinical single dose escalating study. The results of a Phase II clinical trial with Elafin for the treatment of esophagus carcinoma are currently being evaluated. The aim of this trial is to investigate the effectiveness of Elafin at suppressing the postoperative inflammatory processes. Proteo has obtained Orphan drug designations within the European Union for the use of Elafin in treatment of pulmonary arterial hypertension and for the treatment of esophagus carcinoma. Orphan drug status assures exclusive marketing rights for the treatment of the respective disease within the EU for a period of up to ten years after receiving market approval. In addition, a simplified, accelerated and less expensive approval procedure with the assistance of EMEA can be drawn upon. Classification as an orphan drug allows an accelerated approval procedure in all EU states.







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In August 2007, the Company's subsidiary entered into an agreement with Minapharm, one of the leading pharmaceutical companies in Egypt, for clinical development, production and marketing of Elafin. The Company has granted Minapharm the right to exclusively market Elafin in Egypt and certain Middle Eastern and African countries. Proteo received an upfront payment in 2007 and has deferred additional amounts received, and will receive milestone-payments and royalties on net product sales. In addition, Minapharm will take over the funding of clinical research activities for the designated region. The University of Cairo will conduct a clinical trial to study the efficacy of Elafin on kidney transplant patients. The clinical trial has already been approved by the Ethical Committee of the University of Cairo. The study will be conducted as a Phase II trial for prevention of acute and chronic allograft nephropathy, which is a devastating complication of kidney transplantation that is responsible for a significant portion of graft loss.

In January 2008 the Company entered into an agreement with Stanford University in California, to cooperate in preclinical studies related to Elafin treatment of pulmonary arterial hypertension. Proteo provides support for animal experiments that are currently conducted by Marlene Rabinovitch, Research Director of the Vera Moulton Wall Center for Pulmonary Vascular Disease at Stanford University who is a renowned expert in the field, and her group at the university. In May 2010 scientists from this group presented new preclinical data on Proteo's drug substance Elafin at the Annual International Conference of the American Thoracic Society in New Orleans. The data show that the treatment with Elafin during mechanical ventilation largely prevented the inflammation in lungs of newborn mice. In August 2010 the agreement with Stanford University was extended by a further project regarding lung transplantation.

In August 2008 the Company's subsidiary received the approval for a Phase II clinical trial with Elafin by the German Federal Institute for Drugs and Medical Devices (BfArM). In this randomized, blinded, placebo-controlled Phase II trial the effect of Elafin on inflammatory parameters will be investigated in patients undergoing esophagectomy for esophagus carcinoma. The trial will be performed at the Department of General and Thoracic Surgery, University Medical Center Schleswig-Holstein, Campus Kiel. Patient recruitment was started in November 2008. The trial conduct was initially planned for one year. In summer 2009 it became apparent that the clinical trial center could not recruit sufficient numbers of patients to meet the planning. Thus, the Company has extended the monocentric trial to a multicentric trial. In December 2009 all regulatory approvals were obtained to expand the trial. Two additional trial centers started recruiting patients and the recruitment and treatment was completed in April 2010. The results of this clinical trial are currently being evaluated and the final results are expected in the fourth quarter of 2010.


In May 2009 the Company has submitted an application for Orphan Medicinal Product Designation to the EMEA (the European FDA equivalent). Subsequent to November 5, 2009, the Committee for Orphan Medical Products of the EMEA issued a positive opinion recommending the granting of orphan medicinal product designation for recombinant human elafin for treatment of esophagus carcinoma. On January 28, 2010 the orphan designation was granted by the European Commission.


In September 2009 the Company’s subsidiary has signed a Memorandum of Understanding with the University of Edinburgh. Within the framework of collaboration, it is intended to investigate the effect of Elafin on the damage and inflammation of cardiac muscle after coronary bypass operations in a Phase II clinical trial at the University of Edinburgh. The trial, which will be headed by Dr. Peter Henriksen a leading expert in interventional cardiology at the Edinburgh Heart Centre, is planned to begin in December 2010. This clinical trial will be funded by a grant of the Medical Research Council (MRC).


In April 2010 the Company’s subsidiary entered into an agreement with the Molecular Imaging North Competence Center (MOIN CC) at the Christian-Albrechts University of Kiel. Under this agreement the effects of Elafin on vascular changes will be examined in animal models. The federal state of Schleswig-Holstein is backing the creation of MOIN CC with 8.2 million EUR using funding from the federal state and the European Regional Development Fund (ERDF), as well as resources from the second national economic stimulus package.


In June 2010 the Company has signed a cooperative research and development agreement with the US Army Medical Research Institute of Infectious Diseases (USAMRIID) for Elafin. This agreement allows USAMRIID to use Proteo's Elafin and related scientific data in order to plan and conduct preclinical research on the development of new therapeutic strategies to combat life-threatening infectious diseases, in an investigation into the use of Elafin as a co-therapy with antibiotics.

The Company's goal is to obtain the first governmental regulatory approval for the first indication of the initial product in 2012. It should be noted that the first indication, if successfully developed, would have a market potential substantially smaller than the overall market of Elafin for more widespread applications such as for the treatment of cardiac infarction.




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RESULTS OF OPERATIONS

OPERATING EXPENSES

The Company's operating expenses for the three-month and nine-month periods ended September 30, 2010 were approximately $172,000 and $580,000, respectively, a decrease of approximately $73,000 and $125,000 over the respective periods of the prior year. General and administrative expenses (mostly professional and legal fees) for the nine-month periods decreased $86,000, and research and development expenses decreased $39,000 over the same period.


INTEREST AND OTHER INCOME (EXPENSE)

Net interest and other income (expense) for the three-month and nine-month periods ended September 30, 2010 was approximately ($136,000) and $78,000, respectively, compared to ($19,000) and $73,000 for the respective periods in 2009, a net change of approximately ($117,000) and $5,000 over the prior year three-month and nine-month periods, respectively. The increases are attributed primarily to foreign currency transaction gains in 2010 caused by the strengthening of the U.S. Dollar compared to the Euro.

INCOME TAXES

There is no material income tax expense recorded for the periods ended September 30, 2010 and 2009, due to the Company's net losses. As of September 30, 2010, the Company has a deferred tax asset and an equal amount of valuation allowance of approximately $1,954,000, relating primarily to federal and foreign net operating loss carryforwards of approximately $453,000 and $1,233,000, respectively, as discussed below, and timing differences related to the recognition of accrued licensing fees of approximately $268,000.


The Company has federal and foreign net operating loss carry forwards approximating $1,334,000 and $4,931,000, respectively at September 30, 2010, which are expected to begin expiring in 2025 for federal purpose and for foreign purpose it has an indefinite life. In the event the Company were to experience a greater than 50% change in ownership, as defined in Section 382 of the Internal Revenue Code, the utilization of the Company's tax NOLs could be severely restricted.

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS

The Company experienced a net gain (loss) of approximately $(102,000) and $70,000 in foreign currency translation adjustments during the nine-month periods ended September 30, 2010 and 2009, respectively. The changes are primarily due to a fluctuating U.S. Dollar (our reporting currency) compared to the Euro (our functional currency) during the periods.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception we have raised a total of (i) approximately $4,983,000 from the sale of 20,065,428 shares of our common stock, of which 6,585,487 shares, 300,000 shares and 1,500,000 shares have been sold at $0.40 per share, $0.84 per share and $0.60 per share, respectively, under stock subion agreements in the amount of approximately $2,035,000, $252,000 and $900,000, respectively, and (ii) $1,829,000 from the sale of 600,000 shares of the Company's non-voting Series A Preferred Stock. The balance of the purchase price for the Series A Preferred Stock is evidenced by a promissory note which, as of September 30, 2010, had a principal balance of $1,478,000. See Note 2 to the condensed consolidated financial statements included elsewhere herein for the payment terms under the promissory note.

The Company has cash approximating $340,000 as of September 30, 2010 to support current and future operations. This is a decrease of $349,000 over the December 31, 2009 cash balance of approximately $689,000.

Management believes that the Company will not generate any significant revenues in the next few years, nor will it have sufficient cash to fund future operations. As a result, the Company's success will largely depend on its ability to generate revenues from out-licensing activities and secure additional funding through the sale of its common stock, preferred stock and/or debt securities. There can be no assurance, however, that the Company will be able to generate revenues from out-licensing activities and/or to consummate a debt or equity financing in a timely manner, or on terms favorable to the Company, if at all.



15
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GOING CONCERN

The Company's independent registered public accounting firm stated in their Auditors’ Report included in the Company’s Form 10-K for the year ended December 31, 2009 dated March 26, 2010, that the Company will require a significant amount of additional capital to advance the Company's products to the point where they may become commercially viable and has incurred significant losses since inception. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern. Therefore, the Company will be required to seek additional funds to finance its long-term operations. The successful outcome of future activities cannot be determined at this time and there is no assurance that if achieved, the Company will have sufficient funds to execute its intended business plan or generate positive operating results.


OFF BALANCE SHEET ARRANGEMENTS

The Company does not currently have any off balance sheet arrangements.

CAPITAL EXPENDITURES

None significant.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

A smaller reporting company ("SRC") is not required to provide any information in response to Item 305 of Regulation S-K.

ITEM 4T. CONTROLS AND PROCEDURES

a) Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including to Birge Bargmann our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15 under the Exchange Act, our management, including Birge Bargmann our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2010. Based on that evaluation, Ms. Bargmann concluded that as of September 30, 2010, and as of the date that the evaluation of the effectiveness of our disclosure controls and procedures was completed, our disclosure controls and procedures were effective.

b) Changes in Internal Control Over Financial Reporting

Our management, with the participation of the Chief Executive Officer and Chief Financial Officer, has concluded there were no significant changes in our internal controls over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.


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PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

None.

ITEM 1A. RISK FACTORS

Not required for SRCs.

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.

Exhibits:

31.1 Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.


31.2 Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.


32 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.




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SIGNATURES

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

PROTEO, INC.

Dated: November 11, 2010 By: /s/ Birge Bargmann
Birge Bargmann
Principal Executive Officer and Chief Financial Officer
(signed both as an Officer duly authorized to sign on behalf of the Registrant and Principal Financial Officer and Chief Accounting Officer)

[ladygaga]

Über Proteo muss man sich wohl Sorgen machen:

1. Die Gelder der BTD bzw. Von A. Kutscher an Proteo fliessen nicht wie vereinbart, sondern nur tröpfchenweise. Wenn nicht bald Geld kommt dürfte der Laden pleite gehen!

2. Seit Ende April ist die Patientenrekrutierung der Klinischen Phase II beendet und diese wird ausgewertet. Scheint eine schwere Geburt zu sein, mit einer grossen Anzahl von Rückfragen der Genehmigungsbehörde wenn man dafür fast 8 Monate braucht (bisher). Kommt kein gutes Gefühl auf!

3. Minapharm in Ägypten macht noch viel länger mit der klinischen Phase II bei Nierentransplantionen rum und man hört nichts mehr. Kein gutes Zeichen!

Es wird Zeit für gutes Nachrichten!!

[kaubeuhut]

Antwort auf Beitrag Nr.: 40.662.825 von ladygaga am 07.12.10 14:14:04

1.) Inwieweit die Gelder nur "tröpfchenweise" fliessen, vermag ich nicht nach zu vollziehen. Wahrscheinlich hast Du die Quartalsberichte nicht gelesen. Wenn doch, dann hast Du sie ganz einfach nicht verstanden.

2.) Wenn man natürlich gewusst hätte, dass sich ein absoluter Crack wie Du, was eine Phase-II Evaluierung betrifft, hier auf dem Forum rumtreibt, hätte man natürlich alles ganz anders gemacht. Pech. So muss man ohne Deine profunden Kenntnisse klar kommen.

3.) Minapharm "macht noch viel länger". Und?

Bald kommen "gutes Nachrichten"!

[ladygaga]

!

Dieser Beitrag wurde moderiert. Grund: Beitrag ohne Quelle

[kaubeuhut]

Antwort auf Beitrag Nr.: 40.671.484 von ladygaga am 08.12.10 12:37:53

Oh, la, la. Zumindest ansatzweise im Thema.

Der oder das einzige, was "bereinigt" werden muss, bist allerdings Du.

[kaubeuhut]

Antwort auf Beitrag Nr.: 40.671.484 von ladygaga am 08.12.10 12:37:53

Wenn Du ständig die Zustände, die im allgemeinen und die im speziellen, meinst bejammern zu müssen, liegt es doch an Dir selbst, Abhilfe zu schaffen. Wenn Du nicht weisst, wie das gehen könnte, erkläre ich es Dir gerne!

[4meitcounts]

Hat jemand eine Idee wie es bei Proteo steht?

1. Seit Ende April wertet man nun die Ergebnisse der Phase II aus. Es handelt sich um nur wenige Patienten. Man wollte doch längst fertig sein. Wenn es erfolgreich gewesen wäre, so hätten wir bestimmt schon Ergebnisse gehört. War wohl ein Reinfall!!
Wahrscheinlich hat man kein Geld mehr.

2. Die Minapharm in Ägypten macht ja auch schon seit Ewigkeiten an einer Phase II Studie rum und man hört auch nichts mehr!

Ist Elafin tot? War das alles nichts wert? Schade!!

[kaubeuhut]

!

Dieser Beitrag wurde moderiert.

[kaubeuhut]

So, mal etwas sachlicher:

1.) Wenn die Phase II-Studie ausgewertet worden ist, wird man die Ergebnisse bekannt geben.

2.) Da wird nicht "rum gemacht". Ansonsten gilt analog das zuvor gesagte: Wenn die Studie beendet ist, wird man dies bekannt geben. Wenn die Ergebnisse der Studie vorliegen, wird man diese veröffentlichen.

ELAFIN ist alles andere als tot.

Im übrigen empfehle ich mal z.B. bei "Google" das Suchwort "ELAFIN" einzugeben. Ca. 1.000 wissenschaftliche Veröffentlichungen sprechen ja wohl eine deutliche Sprache!

[kaubeuhut]

Ach so: Geld ist übrigens auch noch da. > Nächster Quartalsbericht zum 31.12.2010.

[4meitcounts]

Zitat von kaubeuhut: So, mal etwas sachlicher:

1.) Wenn die Phase II-Studie ausgewertet worden ist, wird man die Ergebnisse bekannt geben.

2.) Da wird nicht "rum gemacht". Ansonsten gilt analog das zuvor gesagte: Wenn die Studie beendet ist, wird man dies bekannt geben. Wenn die Ergebnisse der Studie vorliegen, wird man diese veröffentlichen.

ELAFIN ist alles andere als tot.

Im übrigen empfehle ich mal z.B. bei "Google" das Suchwort "ELAFIN" einzugeben. Ca. 1.000 wissenschaftliche Veröffentlichungen sprechen ja wohl eine deutliche Sprache!

[4meitcounts]

Antwort auf Beitrag Nr.: 40.950.377 von kaubeuhut am 30.01.11 16:35:20

Kleiner Insider! Kennt Quartalsbericht, der noch nicht existiert. Na sowas!

[niemwolf]

Antwort auf Beitrag Nr.: 40.954.984 von 4meitcounts am 31.01.11 16:25:17

Klar kennt er den. Ist doch seine Firma.

[kaubeuhut]

Antwort auf Beitrag Nr.: 40.954.984 von 4meitcounts am 31.01.11 16:25:17

Quatschkopf! Ich brauche doch den Quartalsbericht, - der tatsächlich noch nicht existiert -, nicht zu kennen. Es reicht doch, wenn ich - ungefähr - den Kontostand vom 31.12.2010 kenne.

[Eberhard01]

Proteo und Uni Edinburgh gehen Kooperation für Phase II Studie ein.

->siehe Homepage

[kaubeuhut]

Proteo, Inc. / Proteo Biotech AG:
Positives Ethikvotum für Coronarbypass-Studie Phase II


Irvine, CA – Kiel, 11. Februar, 2011 – Die Proteo, Inc. (OTCBB: PTEO; Freiverkehr Frankfurt und Berlin: WKN: 925981) und ihre 100-prozentige Tochtergesellschaft Proteo Biotech AG geben bekannt:

Die Proteo Biotech AG/Proteo, Inc. und die Universität Edinburgh – eine der führenden Universitäten Europas auf dem Gebiet der Herz-Kreislauf-Forschung – haben in ihrer Zusammenarbeit einen entscheidenden Fortschritt erzielt. Gegenstand der Kooperation ist die gemeinsame Entwicklung eines Konzeptes für die klinische Studie EMPIRE (Elafin Myocardial Protection from Ischaemia RepErfusion injury). Für diese Phase-II-Studie, in der der Wirkstoff Elafin erstmals an Bypass-Patienten getestet werden soll, hat die Universität Edinburgh jetzt ein positives Votum der zuständigen Ethikkommission des National Health Service Scotland erhalten. Herzmuskelentzündungen infolge einer Bypass-OP stellen ein bisher ungelöstes Problem dar. Dr. Peter Henriksen, Kardiologe am Herzzentrum in Edinburgh und Leiter der Studie: »Es gibt zahlreiche Hinweise, die nahelegen, dass Elafin – intraoperativ verabreicht – den Herzmuskelschaden nach Coronarbypass-Chirurgie vermindern kann.«

80 Patienten sollen an der placebo-kontrollierten, doppelt-verblindeten Studie teilnehmen. Die Testreihe wird durch das Medical Research Council (MRC) und die Chest Heart and Stroke Scotland (CHSS) mit 500.000 BRP gefördert.

Mehr zum klinischen Elafin-Entwicklungsprogramm:
Proteos Arzneimittelwirkstoff Elafin ist die Kopie eines körpereigenen entzündungshemmenden Stoffes. Er ist ein natürlicher Gegenspieler von gewebezerstörenden Enzymen (Proteasen), die bei einer Vielzahl von Erkrankungen an Entzündungsmechanismen beteiligt sind. Die Eigenschaft von Elafin, die an den unerwünschten Reaktionen mitwirkenden Enzyme zu blockieren, macht es zu einem sehr erfolgversprechenden Wirkstoff für die Behandlung u.a. von entzündlichen Lungenerkrankungen und schweren Reperfusionsschäden. In einer klinischen Phase-I-Studie konnte bereits sehr überzeugend dargestellt werden, wie gut verträglich intravenös appliziertes, rekombinantes Elafin ist. Derzeit befindet sich eine Phase-II-Studie zur Behandlung von postoperativen Entzündungsreaktionen bei Speiseröhrenkrebs in der Auswertung. Darüber hinaus hat Proteos Lizenz- und Entwicklungspartner Minapharm Pharmaceuticals SAE eine weitere klinische Phase-II-Studie mit Elafin bei nierentransplantierten Patienten initiiert. Es handelt sich um eine Studie zur Verhinderung von akuter Organabstoßung und chronischen Transplantatschäden (Allograft-Nephropathie).

Über Proteo
Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Der Schwerpunkt liegt hierbei auf entzündungshemmenden Medikamenten, insbesondere auf dem menschlichen Protease-Inhibitor Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen, um neue Anwendungsgebiete zu erschließen und optimale Vermarktungspotenziale auszuschöpfen. www.proteo.de

[Limmitless]

Hallo Kaubeuhut,
sage mal warum hört man den im Moment nichts von den üblichen Kravallmachern....liegt es vieleicht an der positiven Meldung aus Schottland...?
Lässt sich womöglich aus Ihrem nicht objektiven Verhalten etwas anderes schließen...?
Gruß

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.059.582 von Limmitless am 17.02.11 16:39:22

Scheint durchaus denkbar zu sein. Den Krawallmachern geht wohl so langsam die (Krawall-) Munition aus. Angefangen vom seeligen "Skibo" alias "Radumanz" alias, alias alias bis hin zur heimtückischen Rechtsverdreherin haben ja in den zurückgelegten Jahren zeitweilig ganze Heerscharen versucht, die Sache miese und schlecht zu reden. Die Realität hat sie aber immer wieder eingeholt.

[ladygaga]

Lange erwartet. Die ersten News zur Studie II bei Speiseröhrenkrebs.

Eine gute Neuigkeit, wenn auch schlecht verpackt. Man könnte in Kiel etwas mehr in Richtung Aktionären denken (schließlich habe diese ihr Geld investiert und die Firma erst ermöglicht).

Inhaltlich macht es neugierig auf mehr. Wenn es noch 2-3 gute Neuigkeiten innerhalb der nächsten Wochen gibt und man es schafft eine breitere Investorenschar darauf aufmerksam zu machen, sollte es bergauf gehen.





DGAP Corporate News

DGAP-News: Proteo, Inc. / Proteo Biotech AG: Elafin verkürzt Intensivbehandlung nach OP bei Speiseröhrenkrebs
23.02.2011, 15:45:19

DGAP-News: Proteo Biotech AG / Schlagwort(e): Studie/Research Update Proteo, Inc. / Proteo Biotech AG: Elafin verkürzt Intensivbehandlung nach OP bei Speiseröhrenkrebs

23.02.2011 / 15:44

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Irvine, CA - Kiel, 23. Februar 2011 - Die Proteo, Inc. (OTCBB: PTEO; Freiverkehr Frankfurt und Berlin: WKN: 925981) und ihre 100-prozentige Tochtergesellschaft Proteo Biotech AG geben heute Ergebnisse einer klinischen Phase-II-Studie mit dem Prüfarzneimittel Elafin bekannt.

An den Universitätskliniken Kiel, Münster und München wurde der Einfluss von Elafin auf die postoperativen Entzündungsreaktionen bei Krebspatienten, denen die Speiseröhre entfernt wurde, untersucht. Diese mehrstündige, schwere Operation (Ösophagektomie) birgt das Risiko einer Vielzahl von spezifischen Komplikationen, die in der Regel mit längeren Aufenthalten auf einer Intensivstation verbunden sind. Die vorliegenden Ergebnisse der Studie zeigen, dass intravenös verabreichtes Elafin einen sehr deutlichen positiven Einfluss auf die Dauer des Erholungsprozesses hat: 63 Prozent der mit Elafin behandelten Patienten brauchten schon nach einem Tag keine Intensivbehandlung mehr. Alle Patienten der Placebo-Gruppe benötigten dagegen noch mehrere Tage nach der OP eine intensivmedizinische Versorgung. «Damit haben sich unsere optimistischen Erwartungen voll erfüllt», sagt Birge Bargmann, Vorstand der Proteo Biotech AG. Detaillierte Ergebnisse aus dieser Studie, die multizentrisch, verblindet, randomisiert und Placebo-kontrolliert durchgeführt wurde, sollen in einem wissenschaftlichen Journal veröffentlicht werden.

Bereits im Januar 2010 hat die Europäische Kommission auf Empfehlung der europäischen Arzneimittelagentur (EMA) der Proteo Biotech AG den «Orphan Drug Status» für Elafin zur Behandlung des Ösophaguskarzinoms zuerkannt.

Mehr zum klinischen Elafin-Entwicklungsprogramm: Proteos Arzneimittelwirkstoff Elafin ist die Kopie eines körpereigenen entzündungshemmenden Stoffes. Er ist ein natürlicher Gegenspieler von gewebezerstörenden Enzymen (Proteasen), die bei einer Vielzahl von Erkrankungen an Entzündungsmechanismen beteiligt sind. Die Eigenschaft von Elafin, die an den unerwünschten Reaktionen mitwirkenden Enzyme zu blockieren, macht es zu einem sehr erfolgversprechenden Wirkstoff - unter anderem für die Behandlung von entzündlichen Lungenerkrankungen und schweren Reperfusionsschäden. In einer klinischen Phase-I-Studie konnte bereits überzeugend dargestellt werden, wie gut verträglich intravenös appliziertes rekombinantes Elafin ist. Neben der oben genannten klinischen Studie zum Ösophaguskarzinom hat Proteos Lizenz- und Entwicklungspartner, Minapharm Pharmaceuticals SAE, eine weitere klinische Phase-II-Studie mit Elafin bei nierentransplantierten Patienten initiiert. Es handelt sich um eine Studie zur Verhinderung von akuter Organabstoßung und chronischen Transplantatschäden (Allograft-Nephropathie). Als ein weiterer Kooperationspartner initiiert die University of Edinburgh eine klinische Studie zur Erprobung von Elafin im Rahmen der Bypass-OP nach Herzinfarkt. Diese Testreihe wird durch das Medical Research Council (MRC) und die Chest Heart and Stroke Scotland (CHSS) mit 500.000 BRP gefördert.

Über Proteo Das Unternehmen erforscht, entwickelt und vermarktet Substanzen zur biologischen und medizinischen Forschung sowie für den Einsatz als Arzneimittel. Der Schwerpunkt liegt hierbei auf entzündungshemmenden Medikamenten. Führendes Produkt ist der menschliche Protease-Inhibitor Elafin. Proteo beabsichtigt die Auslizensierung ausgewählter Indikationen und den Aufbau internationaler strategischer Allianzen, um neue Anwendungsgebiete zu erschließen und Vermarktungspotenziale optimal auszuschöpfen (www.proteo.de).

Zukunftsgerichtete Aussagen Diese Presseinformation enthält bestimmte, in die Zukunft gerichtete Aussagen im Sinne der Rule 175 des Securities Act von 1933 und der Rule 3b-6 des Securities Exchange Act von 1934 und unterfallen dem hierdurch geschaffenen «safe harbor» (Haftungsausschluss). Alle Aussagen in dieser Mitteilung, außer Angaben über Tatsachen, insbesondere Aussagen bezüglich möglicher zukünftiger Pläne und Ziele des Unternehmens, sind in die Zukunft gerichtete Aussagen, die Risiken und Unsicherheiten beinhalten. Es kann keine Sicherheit dafür geben, dass sich diese Aussagen als zutreffend erweisen werden, und tatsächliche Ergebnisse und zukünftige Ereignisse können erheblich von den in diesen Aussagen angenommenen abweichen. Technische Komplikationen können auftreten, die eine unmittelbare Umsetzung der oben beschriebenen wesentlichen strategischen Pläne ausschließen. Das Unternehmen weist darauf hin, dass in die Zukunft gerichtete Aussagen und hiermit verbundene Risiken und Unsicherheiten durch weitere Faktoren näher bestimmt werden, insbesondere von solchen, die in den Berichten des Unternehmens in Form 10-K und in anderen Berichten an die United States Securities and Exchange Commission enthalten sind. Die Gesellschaft übernimmt keinerlei Verpflichtung, solche zukunftsgerichteten Aussagen fortzuschreiben und an zukünftige Ereignisse oder Entwicklungen anzupassen.


Kontakt: Dr. Barbara Kahlke Proteo Biotech AG Am Kiel-Kanal 44 D-24106 Kiel Email : [e-mail] Telefon: [phone] Fax : [phone]


Ende der Corporate News

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[kaubeuhut]

Antwort auf Beitrag Nr.: 41.098.105 von ladygaga am 24.02.11 11:10:02

Was heisst hier "schlecht verpackt"?

[kaubeuhut]

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549


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FORM 10-K

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(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the fiscal year ended December 31, 2010.
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: 000-30728

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PROTEO, INC.
(Exact Name of Registrant as Specified in Its Charter)

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Nevada 88-0292249
(State or Other Jurisdiction of
Incorporation or Organization) (I.R.S. Employer
Identification Number)


2102 Business Center Drive
Irvine, California 92612
(Address of principal executive offices) (Zip Code)

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


Registrant’s telephone number, including area code: [phone]

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Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class Name of Each Exchange on Which Registered
None None


Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.001

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Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No þ

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No þ

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 such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o Noo


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ



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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.

Large accelerated filer o Accelerated filer o

Non-accelerated filer o Smaller reporting companyx


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

The aggregate market value of the registrant’s voting equity held by non-affiliates of the registrant, computed by reference to the closing sales price for the registrant’s common stock on June 30, 2010, as reported on the OTC Bulletin Board, was approximately $5,566,000. (1)


Number of shares of Common Stock outstanding as of March 11, 2011: 23,879,350


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1) Excludes 12,747,000 shares of common stock held by directors and officers, and any stockholder whose ownership exceeds five percent of the shares outstanding as of June 30, 2010



Documents Incorporated by Reference


None.

Transitional Small Business Disclosure Format (check one): Yes ¨ No þ


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PROTEO, INC.
ANNUAL REPORT ON FORM 10-K
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010



TABLE OF CONTENTS


CAUTIONARY STATEMENT 1

PART I 1

Item 1. Business 1
Item 1A. Risk Factors 7
Item 1B. Unresolved Staff Comments 7
Item 2. Properties 8
Item 3. Legal Proceedings 8
Item 4. [Removed and Reserved] 8

PART II 8

Item 5. Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 8
Item 6. Selected Financial Data 10
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 10
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 15
Item 8. Financial Statements and Supplementary Data 15
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 15
Item 9A. Controls and Procedures 15
Item 9B. Other Information 16

PART III 16

Item 10. Directors, Executive Officers and Corporate Governance 16
Item 11. Executive Compensation 18
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 20
Item 13. Certain Relationships and Related Transactions, and Director Independence 20
Item 14. Principal Accountant Fees and Services 21

PART IV 22

Item 15. Exhibits and Financial Statement Schedules 22

SIGNATURES 23



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CAUTIONARY STATEMENT

This Annual Report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Since we are a "penny stock" company (see Item 5 of Part II of this Annual Report), the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995 does not apply to us. We note, however, that such forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the "Company" (as that term is defined below) to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements contained in this Form 10-K. Such potential risks and uncertainties include, without limitation, Food and Drug Administration ("FDA") and other regulatory approval of our products, patent protection on our proprietary technology, product liability exposure, uncertainty of market acceptance, competition, technological change, and other risk factors detailed herein and in our other filings with the Securities and Exchange Commission (the "SEC"). Each forward-looking statement should be read in context with, and with an understanding of, the various other disclosures concerning our Company and our business made elsewhere in this annual report as well as other public reports filed with the SEC. The forward-looking statements are made as of the date of this Form 10-K, and we assume no obligation to update the forward-looking statements or to update the reasons actual results could differ from those projected in such forward-looking statements.

Such statements are based on management's beliefs and assumptions, and on information currently available to management. Forward-looking statements include the information concerning possible or assumed future results of operations of the Company set forth under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking statements also include statements in which words such as "may," "should, " "expect," "anticipate," "intend," "plan," "believe," "estimate," "consider," “hopes,” “project”, “will,” their opposites and similar expressions are used.

Forward-looking statements are not guarantees of future performance. They should not be regarded as a representation by us or any other person that the objectives or plans will be achieved. The Company's future results and shareholder values may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking statements.

PART I

ITEM 1 - BUSINESS

COMPANY OVERVIEW- HISTORY

Proteo, Inc. is a Nevada corporation formed on December 18, 1992. Proteo, Inc. has one wholly owned subsidiary, Proteo Biotech AG ("PBAG"), a German corporation (Proteo, Inc. and PBAG are hereinafter collectively referred to as "we", "our", the "Company" and "Proteo"). The Company's common stock is currently quoted on the Over-The-Counter Bulletin Board ("OTCBB") under the symbol "PTEO.OB". Effective December 31, 2004, the Company's other wholly owned subsidiary, Proteo Marketing, Inc. ("PMI") was merged into the Company.

PMI was incorporated in the State of Nevada and began operations on November 22, 2000. In December 2000, PMI entered into a reorganization and stock exchange agreement with PBAG, and as a result, PBAG became a wholly owned subsidiary of PMI.

During 2001, PMI entered into a Shell Acquisition Agreement (the "Acquisition Agreement") with Trivantage Group, Inc. ("Trivantage"), a public "shell" company, in a transaction accounted for as a reverse merger. In accordance with the Acquisition Agreement, PMI first acquired 176,660,280 shares (1,313,922 post-reverse split shares, as described below) of Trivantage's common stock representing 90% of the issued and outstanding common stock of Trivantage, in exchange for a cash payment of $500,000 to the sole shareholder of Trivantage. Secondly, Trivantage completed a one for one-hundred-fifty reverse stock split. Finally, effective April 25, 2002, the shareholders of PMI exchanged their shares of PMI for an aggregate of 20,286,512 shares of Trivantage to effect a reverse merger between PMI and Trivantage. Subsequently, Trivantage changed its name to Proteo, Inc.



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DESCRIPTION OF BUSINESS

The Company intends to develop, promote and market pharmaceuticals and other biotech products. The Company's focus is on natural occurring compounds which have proven superior biologic activity over almost all known compounds. The focus on natural occurring compounds is driven by the assumption that these compounds will have fewer side effects regarding metabolism and excretion. Whenever possible, human peptides and proteins, which have no allergenic potential, will be used.


Proteo is engaged in the development of pharmaceuticals based on the body's own tools and weapons to fight inflammatory diseases. Specifically, we are focusing our research on the development of drugs based on the human protein Elafin. We strongly believe that Elafin will be useful in the treatment of post-surgery damage to tissue, complications resulting from organ transplantation, pulmonary hypertension, serious injuries caused by accidents, cardiac infarction, as well as other diseases.

Proteo’s pharmaceutical Elafin is a copy of a naturally occurring human anti-inflammatory substance. It is a natural antagonist of the tissue destroying enzymes (proteases such as elastase and proteinase 3) that participate in the inflammatory mechanism of many diseases. Elafin’s ability to block the proteases that cause these undesirable effects makes it a promising drug for the treatment of various inflammatory diseases and posttraumatic inflammatory complication. Numerous preclinical studies on animal models of human disease demonstrate the beneficial anti-inflammatory effects of Elafin. The drug candidate is currently being investigated in clinical trials phase II for three diseases.

The company believes that it is favorable to target orphan drug indications first. Orphan drugs are pharmaceuticals for the treatment of rare diseases, which do not affect more than 200,000 people in the United States ("US") and about 230,000 people in the European Union according to the respective legislations. The advantage of developing orphan drugs is seen in the fact that companies can apply for an orphan drug designation in the US or European Union which not only associated with reduced fees to regulatory agencies and facilitated drug approval but also guarantees 7-year or 10-year marketing exclusivity in the US and European Union, respectively, on drug sales for the first company to obtain marketing approval of a particular drug in the respective regions.


Proteo has obtained Orphan drug designations within the European Union for the use of Elafin in treatment of pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension as well as for the treatment of esophagus carcinoma. In the latter indication especially the postoperative inflammation will be targeted by Elafin treatment.


The excellent tolerability of recombinant Elafin for injection in human subjects was demonstrated in a Phase I clinical trial. In a Phase II clinical trial the effect of Elafin on the postoperative inflammatory reaction occurring in cancer patients whose esophagus has been removed was investigated at three German University Hospitals. This serious operation (esophagectomy), which lasts for several hours, carries the risk of numerous specific complications that generally result in a prolonged period of intensive care. The trial showed a clear clinical benefit for the postoperative recovery of the patients in the Elafin treated group.


Elafin may also be used in the course of transplantation. To transplant organs successfully, simultaneous treatment with anti-inflammatory drugs is necessary. Inflammations of transplanted organs are mainly caused either by rejection of the organ by the immune system or by blood supply deficiencies during the transplantation. Although various drugs are used today to avoid the rejection of the organ, such rejections still occur quite often. Therefore, additional anti-inflammatory drugs are needed, which may potentially prevent damage caused by blood supply deficiencies. Tests carried out on rabbits at the University of Toronto have demonstrated the effectiveness of an infusion with Elafin after a heart transplant. In cases where Elafin was not administered, a substantial thickening of the coronary vessel walls occurred due to temporary circulation reduction. Thus, frequently the heart was not sufficiently supplied with blood. Inflammation and destruction of the heart musculature, which was partly replaced by functionless scar tissue, was the result. Treatment with Elafin has been shown to reduce such damage to a minimal level.


Proteo’s licensing and development partner, Minapharm Pharmaceuticals SAE, has initiated a Phase II clinical trial for the use of Elafin on kidney transplant patients. This trial is concerned with the prevention of acute organ rejection and chronic graft injury (allograft nephropathy), which is a devastating complication of kidney transplantation that is responsible for a significant portion of graft loss. This trial is to be conducted at Cairo University.


We believe a further indication for Elafin is the use as a drug in the treatment of cardiac infarction. Cardiac infarction appears as a result of deficiencies in the blood supply of heart muscles caused by damage to the supplying coronary vessels. As an immediate result, the heart weakens and the heart muscles are destroyed. Damage to tissue caused by cardiac infarction will slowly form scars. Current methods of treatment are aimed at restoring the blood supply to the heart, either by replacement with new blood vessels (bypass surgery), by stent implantation or by removal of blood-clots in the coronary vessels (lyse therapy). Animal experiments have shown that Elafin may be effective in protecting the heart muscles against destruction after blood supply was interrupted. Our cooperation partner, the University of Edinburgh, is initiating a clinical trial to test Elafin in bypass operations after heart attacks. This study is being financially supported by the Medical Research Council (MRC) and the Chest, Heart and Stroke Scotland (CHSS).



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Elafin may also be useful in the treatment of the seriously injured. Similar to damage of heart muscles as described above, much of the damage caused by serious injuries appears after the injury causing event (e.g. traffic accidents). In emergency treatment following accidents, the blood supply, nerve fibers and the stability of bones and joints are given priority. Due to blood supply deficiencies, inflammation will occur in injured muscles and in injured vessels. Because muscles may be destroyed by the inflammation, limbs may have to be amputated despite successful surgeries. Elafin may protect muscles against damage caused by inflammation. In animal experiments, rat legs treated with Elafin remained almost unaffected, although the blood supply to the leg was cut off for six hours.


Other preliminary data indicate that Elafin may be useful in a broad range of other applications whether pharmaceutical or not. Therefore, we will attempt to encourage other scientists, research centers as well as other companies to do research and development on Elafin for applications other than those described above. For example, Elafin may also be effective in the treatment of lung diseases and defects, dermatological diseases and defects, or as an ingredient to coat medical devices, such as stents, or in cosmetics.


The products and technologies we intend to develop will require significant commitments of personnel and financial resources. However, we do not believe that any of our planned products will produce sufficient revenues in the next several years to support us financially. To achieve profitable operations, the Company, independently or in collaboration with others, must successfully identify, develop, manufacture, obtain regulatory approval for and market proprietary products.


After developing a production procedure for Elafin, Proteo has initiated clinical trials to achieve governmental approval for the use of Elafin as a drug in Europe. For this purpose, Proteo has contracted an experienced Contract Manufacturing Organization (CMO) located in Europe to produce Elafin in accordance with GMP (good manufacturing practices) standards as required for clinical trials.


In December 2005, Proteo successfully completed a first Phase I trial for Elafin. Elafin was tested on healthy male volunteers in a single-ascending-dose, double blind, randomized, placebo-controlled trial to evaluate its tolerability and safety at the Institut fur Klinische Pharmakologie in Kiel, Germany. All intravenously applied doses were well tolerated. No severe adverse events occurred. In 2006, we gathered and evaluated additional data from the results of the Phase I study.


In September 2006 we filed an application with the EMEA (European Medicines Agency) to obtain orphan drug status in the European markets for Elafin to be used in the treatment of pulmonary hypertension. Subsequent to December 31, 2006, the Committee for Orphan Medical Products of the EMEA issued a positive opinion recommending the granting of orphan medicinal product designation for Elafin for treatment of pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension. On March 20, 2007 the orphan drug designation became effective upon adoption of the recommendation by the European Commission. Orphan Drug Designation of the European Commission assures exclusive marketing rights for the treatment of this disease within the European Union for a period of up to ten years after receiving market approval.


In August 2007, we entered into a license agreement with Minapharm Pharmaceuticals SAE ("Minapharm"), a well established Egyptian pharmaceutical company based in Cairo, for clinical development, production and marketing of Elafin. We have granted Minapharm the right to exclusively market Elafin in Egypt and certain Middle Eastern and African countries. Minapharm initiates a Phase II clinical trial to study the efficacy of Elafin on kidney transplant patients. The study will be conducted as a Phase II trial for prevention of acute and chronic allograft nephropathy at the University of Cairo.


In January 2008, the Company entered into an agreement with Stanford University in California, to cooperate in preclinical studies related to Elafin treatment of pulmonary arterial hypertension. Proteo provides support for animal experiments that are currently conducted by Marlene Rabinovitch, Research Director of the Vera Moulton Wall Center for Pulmonary Vascular Disease at Stanford University who is a renowned expert in the field, and her group at the university. In May 2010 scientists of Stanford University presented new preclinical data on Proteo's drug substance Elafin at the Annual International Conference of the American Thoracic Society in New Orleans. The data show that the treatment with Elafin during mechanical ventilation largely prevented the inflammation in lungs of newborn mice. In August 2010 the agreement with Stanford University was extended by a further project.




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In April 2008, we initiated a placebo-controlled randomized trial to evaluate the effect of Elafin on cytokine profiles after major surgery (clinical phase II), which was approved in May 2008 by the responsible Ethics Committee and in August 2008 by the German Federal Institute for Drugs and Medical Devices. In November 2008 the Phase II clinical trial on patients undergoing esophagectomy for esophagus carcinoma was started in the Department for General and Thoracic Surgery at the University Hospital of Kiel University, Germany. The trial conduct was initially planned for one year. In summer 2009 it became apparent that the clinical trial center could not recruit sufficient numbers of patients to meet the planning. Thus, the Company has extended the monocentric trial to a multicentric trial. In December 2009 all regulatory approvals were obtained to expand the trial. Two additional trial centers started recruiting patients and the recruitment and treatment was completed in April 2010. The trial showed that intravenously administered Elafin has a very clear positive effect on the period of recovery: 63 percent of the Elafin treated patients required only one day of intensive care. All patients in the placebo group needed several days of postoperative intensive medical care. At years end 2010 the European Medicines Agency EMA gave scientific advice and protocol assistance to the Company for further clinical development in this indication. Protocol assistance is the special form of scientific advice available for companies developing medicines for 'orphan' or rare diseases.


In September 2009, the Company signed a Memorandum of Understanding with the University of Edinburgh. Within the framework of collaboration, it is intended to investigate the effect of Elafin on the damage and inflammation of cardiac muscle after coronary bypass operations in a Phase II clinical trial at the University of Edinburgh. The study will be funded by the Medical Research Council (MRC) and Chest Heart and Stroke Scotland (CHSS) with 500,000 GBP. In February 2011 this clinical trial with 80 patients has received approval by the responsible Ethics Committee of NHS Scotland.

In January 2010, following the recommendation of the European Medicines Agency (EMA) as of November 2009, the European Commission has granted Orphan Drug Designation for the protease inhibitor Elafin to be used in the treatment of esophagus carcinoma.


Our strategy and goal is to develop into a profitable company by developing drug candidates for orphan diseases with high medical needs. The company intends to generate revenue by out-licensing and marketing activities. To date, the Company has not had profitable operations. Furthermore, we do not anticipate that we will have profitable operations in the near future.

OUR SUBSIDIARY

PBAG, our operating subsidiary, was formed in Kiel, Germany on April 6, 2000. PBAG is in the business of developing pharmaceutical products based on the human protein called Elafin and possible by-products thereof as well as related technologies. The President, Chief Executive Officer and Chief Financial Officer of PBAG is currently Birge Bargmann. The members of the Supervisory Board of PBAG are Oliver Wiedow, MD, Barbara Kahlke, PhD and Florian Wegner. PBAG has four employees as of December 31, 2010.



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COLLABORATION WITH OTHER COMPANIES


The Company actively seeks further out-licensing partners, co-development partnerships and other collaborations with third parties to generate revenues and/or to expedite the Company's product development. However, there can be no assurance that the Company's efforts to build such alliances will be successful at any time or in any way.


COMPETITION

The market for our planned products and technologies is highly competitive, and we expect competition to increase. We compete with many other companies involved in the development of pharmaceuticals, most of which are larger than Proteo. Some of our anticipated competitors offer a broad range of equipment, supplies, products and technology, including many of the products and technologies contemplated to be offered by us. To the extent that customers exhibit loyalty to the supplier that first supplies them with a particular product or technology, our competitors may have an advantage over us with respect to such products and technologies. Additionally, many of our competitors have, and will continue to have, greater research and development, marketing, financial and other resources than us and, therefore, represent and will continue to represent significant competition in our anticipated markets. As a result of their size and the breadth of their product offering, certain of these companies have been and will be able to establish managed accounts by which, through a combination of direct computer links and volume discounts, they seek to gain a disproportionate share of orders for health care products and technologies from prospective customers. Such managed accounts present significant competitive barriers for us. It is anticipated that we will benefit from their participation in selected markets, which, as they expand, may attract the attention of our competitors. The business of research and development of pharmaceuticals is intensely competitive. Major companies with immense financial and personal resources are also engaged in this field.

Elastase inhibitors such as Elafin, have been under research and development in the pharmaceutical industry for decades. Currently, hundreds of related patents have been granted. Most of these substances are produced synthetically, and are not applicable in the treatment of human diseases. Currently two elastase inhibitors are used as pharmaceuticals, alpha-1-antitrypsin worldwide and Sivelestat in Japan and Korea. Further elastase inhibitors are in clinical development, such as Depelestat and AZD9668.

Alpha-1-antitrypsin

Human blood naturally contains relatively large amounts of alpha-1-antitrypsin. Alpha-1-antitrypsin is marketed for more than 20 years currently by Talecris, Behring and Baxter as a plasma-derived product to supply patients with genetic deficiency of functional alpha-1-antitrypsin.


Sivelestat

Ono Pharmaceutical Co. Ltd., in Japan has developed the synthetic elastase inhibitor Sivelestat. Ono received approval in 2002 to use Sivelestat as a drug for the indication "Amelioration of acute lung disease accompanying generalized inflammatory syndrome" in Japan and in Korea (Dong-A, Pharmaceutical Co., Ltd., Seoul) in 2006.

Depelestat

A further elastase inhibitor has been engineered from the Kunitz domain of human inter-alpha-trypsin inhibitor. This peptide was found to be a potent inhibitor of human elastase, however, other than in the case of Elafin, it is reported that no other proteases, including proteinase 3, were inhibited. Currently Depelestat is being clinically developed by Debiopharm for use in the treatment of cystic fibrosis and acute respiratory distress syndrome.

AZD9668

Astra-Zeneca is currently investigating the efficacy of AZD9668, an orally applicable elastase inhibitor, in various clinical phase II trials on chronic obstructive pulmonary disease, cystic fibrosis and bronchiectasis. No results have been reported.



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GOVERNMENT REGULATION

The Company is, and will continue to be, subject to governmental regulation under the Occupational Safety and Health Act, the Environmental Protection Act, the Toxic Substances Control Act, and other similar laws of general application, as to all of which we believe we are in material compliance. Any future change in, and the cost of compliance with, these laws and regulations could have a material adverse effect on the business, financial condition, and results of operations of the Company.


Because of the nature of our operations, the use of hazardous substances, and our ongoing research and development and manufacturing activities, we are subject to stringent federal, state and local and foreign laws, rules, regulations and policies governing the use, generation, manufacturing, storage, air emission, effluent discharge, handling and disposal of certain materials and wastes. Although we believe that we are in material compliance with all applicable governmental and environmental laws, rules, regulations and policies, there can be no assurance that the business, financial conditions, and results of operations of the Company will not be materially adversely affected by current or future environmental laws, rules, regulations and policies, or by liability occurring because of any past or future releases or discharges of materials that could be hazardous.

Additionally, the clinical testing, manufacture, promotion and sale of a significant majority of the products and technologies of the Company, if those products and technologies are to be offered and sold in the United States, are subject to extensive regulation by numerous governmental authorities in the United States, principally the FDA and corresponding state regulatory agencies. Additionally, to the extent those products and technologies are to be offered and sold in markets other than the United States, the clinical testing, manufacture, promotion and sale of those products and technologies will be subject to similar regulation by corresponding foreign regulatory agencies. In general, the regulatory framework for biological health care products is more rigorous than for non-biological health care products. Generally, biological health care products must be shown to be safe, pure, potent and effective. There are numerous state and federal statutes and regulations that govern or influence the testing, manufacture, safety, effectiveness, labeling, storage, record keeping, approval, advertising, distribution and promotion of biological health care products. Non-compliance with applicable governmental requirements can result in, among other things, fines, injunctions, seizures of products, total or partial suspension of product marketing, failure of the government to grant pre-market approval, withdrawal of marketing approvals, product recall and criminal prosecution.

PATENTS, LICENSES & ROYALTIES

The Company owns licenses to exclusively develop products based on patents and filings. The Company does not have title to any patents related to Elafin; title to these patents rests with Dr. Wiedow. The Company’s rights with respect to patents are derived pursuant to a license agreement between the Company and Dr. Wiedow (the “ License Agreement ”) dated December 30, 2000, which was amended by an Amendment Agreement to the License Agreement (the "Amendment" ) dated December 23, 2008.

Pursuant to the License Agreement, the Company agreed to pay Dr. Wiedow an annual license fee of 110,000 Euros for a period of six years. No payments were made through fiscal year 2003 through 2006. In December 2007 the Company paid Dr. Wiedow 30,000 Euros.


Pursuant to the Amendment, the Company and Dr. Wiedow have agreed that the Company would pay the outstanding balance of 630,000 Euros to Dr. Wiedow as follows: for fiscal years 2008 to 2012, the Company shall pay Dr. Wiedow 30,000 Euros per year, and for fiscal years 2013 to 2016, the Company shall pay Dr. Wiedow 120,000 Euros per year. The foregoing payments shall be made on or before December 31 of each fiscal year. In December 2008 the Company paid Dr. Wiedow 30,000 Euros. No other payments have been made to Dr. Wiedow as of December 31, 2010, which is a technical breach of the agreement. Dr. Wiedow waived such breach and deferred the prior year payments to 2011. While the total amount owed does not currently bear interest, the Amendment provides that any late payment shall be subject to interest at an annual rate equal to the German Base Interest Rate (0.12% as of January 1, 2011) plus six percent. In the event that the Company's financial condition improves, the parties can agree to increase and/or accelerate the payments.



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The Amendment also modified the royalty payment such that the Company will not only pay a three percent (3%) royalty on gross revenues from the Company's sale of products based on the licensed technology but also three percent of the license fees (including upfront and milestone payments and running royalties) received by the Company or its subsidiary from their sublicensing of the licensed technology.

AstraZeneca Inc. (formerly Zeneca Inc., formerly ICI Pharmaceuticals Inc.) had held the patents for Elafin for several years and has significantly contributed to the current knowledge. Therefore, AstraZeneca Inc. will receive two percent of the net sales of the Company from products based on patents in which Dr. Wiedow was the principal inventor. Proteo holds an exclusive license for the following patents:

Country Patent Number Expiry Date

USA US 5464822 07-Nov-2012
USA US 6245739 12-Jun-2018
USA US 6893843 08-Jun-2010
European Union EP 0402068 04-Jun-2010
Japan JP 2989853 08-Jun-2010
Australia AU 636148 05-Jun-2010
Canada CA 2018592 08-Jun-2010
Finland FI 902880 08-Jun-2010
Ireland IE 070520 05-Jun-2010
Israel IL 094602 03-Jun-2010
New Zealand NZ 233974 07-Jun-2010
Norway NO 177716 01-Jun-2010
Portugal PT 094326 11-Oct-2011
South Africa ZA 9004461 08-Jun-2010



On November 15, 2004, the Company entered into an exclusive worldwide license and collaboration agreement with ARTES Biotechnology GmbH ("ARTES"). This agreement enables the Company to economically produce Elafin on a large scale by using the sublicensed yeast HANSENULA POLYMORPHA as a high performance expression system. Rhein Biotech GmbH ("Rhein") has licensed the yeast to ARTES, who in-turn sublicensed it to the Company. The agreement has a term of fifteen years with an annual license fee equal to the greater of 10,000 Euros or 2.5% royalties on the future sales of Elafin. Should the license agreement between Rhein and ARTES terminate, Rhein will assume the sublicense agreement with the Company under similar terms.


In August 2007, the Company's subsidiary entered into an agreement with Rhein Minapharm ("Minapharm") for clinical development, production and marketing of Elafin. The Company has granted Minapharm the right to exclusively market Elafin in Egypt and certain Middle Eastern and African countries. Under this agreement, the Company had deferred certain amounts received until the expiration of a refund period in October 2010. Accordingly, approximately $108,000 is included as other income for 2010 in the accompanying consolidated statements of operations. The Company may receive additional milestone-payments upon Minapharm's attainment of certain clinical milestones as well as royalties on any future net product sales.


EMPLOYEES

As of December 31, 2010, Proteo had four employees, all working at our offices in Germany.

ITEM 1A. – RISK FACTORS

A smaller reporting company (“SRC”) is not required to provide any information in response to Item 503(c) of Regulation S-K.

ITEM 1B. – UNRESOLVED STAFF COMMENTS

None



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ITEM 2 - PROPERTIES

The Company has entered into several leases for office and laboratory facilities in Germany expiring at dates through December 2011. The aggregate monthly rental under the foregoing leases was approximately $3,800.

ITEM 3 - LEGAL PROCEEDINGS

The Company may from time to time be involved in various claims, lawsuits, and disputes with third parties, actions involving allegations of discrimination, or breach of contract actions incidental to the operation of its business. The Company is not currently involved in any litigation which it believes could have a materially adverse effect on its financial condition or results of operations.


ITEM 4 – [REMOVED AND RESERVED]

PART II

ITEM 5 - MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock is quoted on the OTC Bulletin Board under the symbol PTEO.OB. The table below gives the range of high and low bid prices of our common stock for each quarter during the fiscal years ended December 31, 2010 and 2009 based on information provided by the OTC Bulletin Board. Such over-the-counter market quotations reflect inter-dealer prices, without mark-up, mark-down or commissions and may not necessarily represent actual transactions or a liquid trading market.



YEAR PERIOD HIGH LOW
2010 First Quarter $1.25 $0.35
Second Quarter 0.96 0.38
Third Quarter 0.65 0.20
Fourth Quarter 0.63 0.20

2009 First Quarter $1.49 $1.00
Second Quarter 1.49 0.94
Third Quarter 1.38 0.64
Fourth Quarter 1.25 0.51





On March 4, 2011, the last sales price of our common stock was $0.21 per share. No cash dividends have been paid on our common stock for the 2010 and 2009 fiscal years and no change of this policy is under consideration by the Board of Directors. The payment of cash dividends in the future will be determined by the Board of Directors in light of conditions then existing, including our Company's earnings (if any), financial requirements, and opportunities for reinvesting earnings (if any), business conditions, and other factors. Except as described in the "Preferred Stock" section of Note 3 to the Company's consolidated financial statements included elsewhere herein, there are otherwise no restrictions on the payment of dividends.


NUMBER OF SHAREHOLDERS

As of March 11, 2010, the number of shareholders of record of the Company's common stock was 1,777.



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PENNY STOCK

Until we satisfy the initial listing requirements for the Nasdaq Stock Market and successfully apply to have our shares of common stock traded thereon, our common stock will continue to be quoted on the OTCBB. As a result, an investor may find it more difficult to dispose of, or to obtain accurate quotations as to the price of, our common stock. Our common stock is subject to provisions of Section 15(g) and Rule 15g-9 of the Exchange Act, commonly referred to as the "penny stock rule." Section 15(g) sets forth certain requirements for transactions in penny stocks, and Rule 15g-9(d) incorporates the definition of "penny stock" that is found in Rule 3a51-1 of the Exchange Act. The SEC generally defines "penny stock" to be any equity security that has a market price less than $5.00 per share, subject to certain exceptions. Since our common stock is deemed to be a penny stock, trading in our shares is subject to additional sales practice requirements on broker-dealers who sell penny stocks to persons other than established customers and accredited investors. "Accredited investors" include (i) certain entities as defined in Rule 501(a) of Regulation D, (ii) directors and executive officers of the issuer of the securities being offered or sold and (iii) persons with a net worth exceeding $1,000,000 or annual income exceeding $200,000 (or $300,000 together with their spouse) in each of the two most recent years and reasonably expect to reach the same income level in the current year. For transactions covered by these rules, broker-dealers must make a special suitability determination for the purchase of such security and must have the purchaser's written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the first transaction, of a risk disclosure document, prepared by the SEC, relating to the penny stock market. A broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative, and current quotations for the securities. Finally, monthly statements must be sent disclosing recent price information for the penny stocks held in an account and information on the limited market in penny stocks. Consequently, these rules may restrict the ability of a broker-dealer to trade and/or maintain a market in our common stock and may affect the ability of our shareholders to sell their shares.

DIVIDEND POLICY

To date, we have declared no cash dividends on our common or preferred stock, and do not expect to pay cash dividends on our common and preferred stock in the near term. We intend to retain future earnings, if any, to provide funds for operation of our business.

EQUITY COMPENSATION PLAN INFORMATION

We have no equity compensation plans as of December 31, 2010.

RECENT SALES OF UNREGISTERED SECURITIES


We had no sales of unregistered securities since those disclosed on our December 31, 2009 Form 10-K.



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ITEM 6. SELECTED FINANCIAL DATA.


An SRC is not required to provide any information in response to Item 301 of Regulation S-K.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAUTIONARY STATEMENT


This Annual Report on Form 10-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties. Accordingly, to the extent that this Annual Report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of the Company, please be advised that the Company's actual financial condition, operating results and business performance may differ materially from that projected or estimated by management in forward-looking statements. The differences may be caused by a variety of factors, including but not limited to adverse economic conditions, intense competition, including intensification of price competition and entry of new competitors and products, adverse federal, state and local government regulation, inadequate capital, unexpected costs and operating deficits, increases in general and administrative expenses, and other specific risks that may be alluded to in this Annual Report or in other reports filed with the SEC by the Company. In addition, the business and operations of the Company are subject to substantial risks that increase the uncertainty inherent in the forward-looking statements. The inclusion of forward-looking statements in this Annual Report should not be regarded as a representation by management or any other person that the objectives or plans of the Company will be achieved.

See page one for additional information regarding forward-looking statements.

The Company currently generates minor non-operating revenue from its out-licensing activities and does not expect to report any significant operating revenue until the successful development and marketing of its planned pharmaceutical and other biotech products. Additionally, after the launch of the Company's products, there can be no assurance that the Company will generate positive cash flow and there can be no assurance as to the level of operating revenues, if any, the Company may actually achieve from its planned principal operations.

OVERVIEW

The Company is a clinical stage drug development company focusing on the development of anti-inflammatory treatments for rare diseases with significant unmet needs. The Company's management deems its lead drug candidate Elafin for intravenous use to be one of the most prospective treatments of postoperative inflammatory complications in the surgical therapy of esophagus carcinoma, kidney transplantation and coronary arterial bypass surgery. Elafin appears to be also a promising compound for the treatment of pulmonary arterial hypertension. The clinical development is currently focused in Europe with the intention to receive the primary approval in Europe.


The Company's success will depend on its ability to prove that Elafin is well tolerated by humans and its efficacy in the indicated diseases in order to demonstrate a favorable risk/benefit balance. There can be no assurance that the Company will be able to develop feasible production procedures in accordance with Good Manufacturing Practices ("GMP") standards, or that Elafin will receive any governmental approval for its use in further clinical trials or its use as a drug in any of the intended applications.


Proteo has obtained Orphan drug designations within the European Union for the use of Elafin in treatment for the treatment of pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension as well as for the treatment of esophagus carcinoma. Orphan drug designation assures exclusive marketing rights for the treatment of the respective disease within the EU for a period of up to ten years after receiving market approval. In addition, a simplified, accelerated and less expensive approval procedure with the assistance of European Medicines Agency (“EMA”), the European FDA equivalent, can be drawn upon.


Proteo currently focuses on the development of Elafin for treatment of postoperative inflammatory complications in the surgical therapy of esophagus carcinoma. Clinical trials for further indications and preclinical research into new fields of application are conducted in cooperation with Universities and our licensing partner Minapharm.




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CLINICAL DEVELOPMENT


After developing a production procedure for Elafin, The Company has initiated clinical trials to achieve governmental approval for the use of Elafin as a drug in Europe. For this purpose, the Company has contracted an experienced Contract Manufacturing Organization in Europe to produce Elafin in accordance with GMP standards as required for clinical trials. The excellent tolerability of Elafin in human subjects was demonstrated in a Phase I clinical single dose escalating study.


Treatment of Esophagus Carcinoma


A double-blind, randomized, placebo-controlled Phase II clinical trial on the effect of Elafin on the postoperative inflammatory reactions and postoperative clinical course was conducted in patients undergoing esophagectomy for esophagus carcinoma was begun in November 2008. In summer 2009 it became apparent that the clinical trial center could not recruit sufficient numbers of patients to meet the planning. Thus, the Company has extended the monocentric trial to a multicentric trial involving two additional trial centers. We announced the favorable influence of Elafin treatment on the postoperative recovery in February 2011. In January 2010 Orphan Drug Designation was awarded to the Company by the European Commission for the use of Elafin in the treatment of esophagus carcinoma. The future clinical development and prerequisites for marketing authorization are currently subject to discussions with the EMA.


Treatment of Coronary Bypass Patients


In September 2009 the Company signed a Memorandum of Understanding with the University of Edinburgh. Within the framework of collaboration, it is intended to conduct a Phase II clinical trial to investigate the effect of Elafin on the damage and inflammation of cardiac muscle after coronary bypass operations. The trial, which will be headed by Dr. Peter Henriksen a leading expert in interventional cardiology at the Edinburgh Heart Centre. The study will be funded by the Medical Research Council (MRC) and Chest Heart and Stroke Scotland (CHSS) with 500,000 GBP. In February 2011 this clinical trial with 80 patients has received approval by the responsible Ethics Committee of NHS Scotland.


Treatment of Kidney Transplantation


The Company’s licensing and development partner, Minapharm Pharmaceuticals SAE, has initiated a Phase II clinical trial on the use of Elafin in kidney transplantation patients. This trial is concerned with the prevention of acute organ rejection and chronic graft injury (allograft nephropathy) and will be conducted at the University of Cairo. The start and conduct of the trial may be influenced by the actual political situation in Egypt. Actually, the consequences cannot be overseen by management.


PRECLINICAL RESEARCH


Pulmonary arterial Hypertension


Since 2008, the Company cooperates with scientists at Stanford University in California with respect to the preclinical development in the field of pulmonary arterial hypertension and ventilation induced injury. The group presented new preclinical data on the Company’s drug substance Elafin at the Annual International Conference of the American Thoracic Society in New Orleans in May 2010. The data show that the treatment with Elafin during mechanical ventilation largely prevented the inflammation in lungs of newborn mice. In August 2010 the cooperation agreement with Stanford University was extended by a further project.


Vascular damage


The Company entered into an agreement with the Molecular Imaging North Competence Center (MOIN CC) at the Christian-Albrechts-University of Kiel in April 2010. Under this agreement the effects of Elafin on vascular changes will be examined in animal models. The federal state of Schleswig-Holstein is backing the creation and infrastructure of MOIN CC with 8.2 million EUR using funding from the federal state and the European Regional Development Fund (ERDF), as well as resources from the second German economic stimulus package.


Life-threating Infections


In June 2010 the Company has signed a cooperative research and development agreement with the US Army Medical Research Institute of Infectious Diseases (USAMRIID). This agreement allows USAMRIID to use Proteo's Elafin and related scientific data in order to plan and conduct preclinical research on the development of new therapeutic strategies to combat life-threatening infectious diseases, in an investigation into the use of Elafin as a co-therapy with antibiotics.



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RESULTS OF OPERATIONS

OPERATING EXPENSES

The Company's operating expenses for the year ended December 31, 2010 were approximately $749,000, a decrease of approximately $152,000 over the year ended December 31, 2009. This decrease is due to decreases in general and administrative and research and development expenses during the year ended December 31, 2010 of approximately $22,000 and $130,000, respectively. Research and development expenses decreased primarily due to a reduction in research personnel during 2010.


INTEREST AND OTHER INCOME

Interest and other income for the year ended December 31, 2010 approximated $239,000, an increase of $195,000 from the year ended December 31, 2009. The increase was primarily driven by foreign currency transaction gains in 2010 and recognizing previously deferred licensing fees. Certain obligations of the Company are denominated in Euros. A strengthening U.S. Dollar compared to the Euro during 2010 has resulted in a foreign currency transaction gain of approximately $106,000 in 2010. Additionally, in 2010 the Company recognized approximately $108,000 of licensing fees related to the Minapharm licensing agreement, which had been received in 2009. Recognition of such amount was previously deferred until certain refund contingencies expired in October 2010.

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS

We experienced a loss of approximately $147,000 in foreign currency translation adjustments during the year ended December 31, 2010. For the year ended December 31, 2009, the Company recognized a gain of approximately $37,000. This represents a net decrease of approximately $184,000. The decrease is primarily due to a strengthening U.S. Dollar (our reporting currency) compared to the Euro (the functional currency of PBAG) during 2010.


INCOME TAXES


The Company has a deferred tax asset of approximately $1,924,000 and $1,879,000 at December 31, 2010 and 2009, respectively, relating primarily to tax net operating loss carryforwards, as discussed below, and timing differences related to the recognition of accrued licensing fees. Full valuation allowances have been established against these deferred tax assets due to going concern issues.


As of December 31, 2010, the Company had tax net operating loss carryforwards ("NOLs") of approximately $1,383,000 and $4,791,000 available to offset future taxable Federal and foreign income, respectively. The Federal NOL expires in varying years through 2025. The foreign net operating loss relates to Germany and does not have an expiration date. In the event the Company were to experience a greater than 50% change in ownership, as defined in Section 382 of the Internal Revenue Code, the utilization of the Company's Federal tax NOLs could be restricted.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception we have raised a total of (i) approximately $4,983,000 from the sale of 20,065,428 shares of our common stock, of which 6,585,487 shares, 300,000 shares and 1,500,000 shares have been sold at $0.40 per share, $0.84 per share and $0.60 per share, respectively, under stock subion agreements in the amount of approximately $2,035,000, $252,000 and $900,000, respectively, and (ii) $2,616,000 from the sale of 600,000 shares of the Company's non-voting Series A Preferred Stock. The balance of the purchase price for the Series A Preferred Stock is evidenced by a promissory note which, as of December 31, 2010, had a principal balance of $984,400. See Note 3 to the consolidated financial statements included elsewhere herein for the payment terms under the promissory note.

The Company has cash and cash equivalents approximating $698,000 as of December 31, 2010. This is an increase over the December 31, 2009 balance of approximately $689,000, mainly due to receipts on the promissory note receivable resulting from the sale of the Company's Series A Preferred Stock in excess of operating and research and development expenditures.

Management believes that the Company will not generate any significant operating revenues for the next several years, nor will it have sufficient cash to fund operations. As a result, the Company's success will largely depend on its ability to generate revenues from out-licensing activities, secure additional funding through the sale of its Common/Preferred Stock and/or the sale of debt securities. There can be no assurance, however, that the Company will be able to generate revenues from out-licensing activities and/or to consummate debt or equity financing in a timely manner, or on a basis favorable to the Company, if at all.

CAPITAL EXPENDITURES

None significant.



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GOING CONCERN

The Company's independent registered public accounting firm has stated in their Auditors' Report included in this Form 10-K that the Company will require a significant amount of additional capital to advance the Company's products to the point where they may become commercially viable and has incurred significant losses since inception. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern.

Therefore, the Company will be required to seek additional funds to finance its long-term operations. The successful outcome of future activities cannot be determined at this time and there is no assurance that if achieved, the Company will have sufficient funds to execute its intended business plan or generate positive operating results.

INFLATION

Management believes that inflation has not had a material effect on the Company's results of operations during 2010 and 2009.

OFF BALANCE SHEET ARRANGEMENTS

The Company does not currently have any off balance sheet arrangements.

ACCOUNTING MATTERS


CRITICAL ACCOUNTING POLICIES


The discussion and analysis of our results of operations, liquidity and capital resources is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.

The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. We base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may differ from our estimates.

The following represents a summary of our critical accounting policies, defined as those policies that we believe are: (a) the most important to the portrayal of our financial condition and results of operations, and (b) that require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the matters that are inherently uncertain. We discuss each of these policies below, as well as the estimates and judgments involved. We also have other policies that we consider key accounting policies; however, these policies do not meet the definition of critical accounting estimates, because they do not generally require us to make estimates or judgments that are difficult or subjective.

FOREIGN CURRENCY FINANCIAL REPORTING


Assets and liabilities of the Company's German operations are translated from Euros (the functional currency) into U.S. dollars (the reporting currency) at period-end exchange rates. Expense and grant receipts are translated at weighted average exchange rates for the period. Net exchange gains or losses resulting from such translation are excluded from the consolidated statements of operations and are included in comprehensive loss and accumulated in a separate component of stockholders' equity. Such accumulated amount approximated $170,000 and $317,000 at December 31, 2010 and 2009, respectively.




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The Company records payables related to a certain licensing agreement (Note 6) in accordance with the Foreign Currency Matters Topic of the Codification. Quarterly commitments under such agreement are denominated in Euros. For each reporting period, the Company translates the quarterly amount to U.S. dollars at the exchange rate effective on that date. If the exchange rate changes between when the liability is incurred and the time payment is made, a foreign exchange gain or loss results. The Company made no payments under this licensing agreement during the years ended December 31, 2010 and 2009, and did not realize any significant foreign currency exchanges gains or losses.


Additionally, the Company computes a foreign exchange gain or loss at each balance sheet date on all recorded transactions denominated in foreign currencies that have not been settled. The difference between the exchange rate that could have been used to settle the transaction on the date it occurred and the exchange rate at the balance sheet date is the unrealized gain or loss that is currently recognized. The Company recorded an unrealized foreign currency transaction gain (loss) of approximately $106,000 and $(14,000) for the years ended December 31, 2010 and 2009, respectively, which are included in interest and other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss.


INCOME TAXES

The Company accounts for income taxes using the liability method in accordance with the Income Taxes Topic of the ASC. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided for significant deferred tax assets when it is more likely than not that such assets will not be recovered.


As of December 31, 2010 and 2009, the Company did not increase or decrease the liability for unrecognized tax benefit related to uncertain tax positions in prior periods nor did the Company increase its liability for any uncertain tax positions in the current year. Furthermore, there were no adjustments to the liability or lapse of any statutes of limitation or settlements with taxing authorities.


The Company expects resolution of unrecognized tax benefits, if created, would occur while the 100% valuation allowance of deferred tax assets is maintained; therefore, the Company does not expect to have any unrecognized tax benefits that, if recognized, would affect its effective income tax rate.


The Company will recognize interest and penalty related to unrecognized tax benefits and penalties as income tax expense. As of December 31, 2010, the Company has not recognized any liabilities for penalty or interest as the Company does not have any liability for unrecognized tax benefits.


The Company is subject to taxation in the US and various states. The Company's 2005 through 2010 tax years are subject to examination by the taxing authorities. With few exceptions, the Company is no longer subject to U.S. federal, state, local or foreign examinations by taxing authorities for years before 2005.

COMPREHENSIVE LOSS

Total comprehensive loss represents the net change in stockholders' equity (deficit) during a period from sources other than transactions with stockholders and as such, includes net earnings or loss. For the Company, other comprehensive loss represents the foreign currency translation adjustments, which are recorded as components of stockholders' equity.



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LOSS PER COMMON SHARE


Basic loss per common share is computed based on the weighted average number of shares outstanding for the period. Diluted loss per common share is computed by dividing net loss available to common stockholders by the weighted average shares outstanding assuming all dilutive potential common shares were issued. There were no dilutive potential common shares outstanding at December 31, 2010 or 2009.

ITEM 7A - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


An SRC is not required to provide any information in response to Item 305 of Regulation S-K.

ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The information required by this item is submitted as a separate section of this report immediately following the signature page.

ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

None.

ITEM 9A - CONTROLS AND PROCEDURES

Under the supervision and with the participation of management, including Birge Bargmann, our chief executive officer and chief financial officer, we have evaluated the effectiveness of the Company’s disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act as of the end of the period covered by this Annual Report on Form 10-K. Based on that evaluation, Ms. Bargmann has concluded that these controls and procedures were effective as of December 31, 2010, including those to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, and is accumulated and communicated to management, including the principal executive officer and the principal financial officer, as appropriate, to allow for timely decisions regarding required disclosure.

REPORT OF MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The Management of Proteo is responsible for establishing and maintaining adequate internal control over financial reporting. The Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

The Company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, (iii) provide reasonable assurance that receipts and expenditures of the company are being made only in accordance with authorization of management and directors of the company, and (iv) provide reasonable assurance regarding prevention or timely detection of the unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.



15
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Management has assessed the Company's internal control over financial reporting as of December 31, 2010. The assessment was based on criteria for effective internal control over financial reporting described in the Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the assessment, Management believes that the Company maintained effective internal control over financial reporting as of December 31, 2010.

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

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There have been no significant changes in the Company's internal control over financial reporting during the Company's most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. Inherent limitations exist in any system of internal control including the possibility of human error and the potential of overriding controls. Even effective internal controls can provide only reasonable assurance with respect to financial statement preparation. The effectiveness of an internal control system may also be affected by changes in conditions.

ITEM 9B - OTHER INFORMATION

None.

PART III

ITEM 10 - DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The following table sets forth the names and ages of the current and incoming directors and executive officers of the Company and the principal offices and positions with the Company held by each person. The Board of Directors elects the executive officers of the Company annually. The directors serve one-year terms until their successors are elected. The executive officers serve terms of one year or until their death, resignation or removal by the Board of Directors

NAME AGE POSITIONS
Birge Bargmann 49 President, Chief Executive Officer,
Chief Financial Officer and Director
Dr. Barbara Kahlke 46 Secretary
Professor Oliver Wiedow, MD. 53 Director
Prof. Hartmut Weigelt, Ph.D. 65 Director



BIOGRAPHICAL INFORMATION

Birge Bargmann has served as our President, Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") since November 2005 and a Director of the Company since December 2000. In November 2005, she was appointed CEO and CFO of the Company and its subsidiary. Ms. Bargmann was a member of the Supervisory Board of Proteo Biotech AG from 2000 to 2005. Since 1989, Ms. Bargmann has worked as a medical technique assistant engaged in the Elafin project at the University of Kiel. She co-developed and carried out procedures to detect and to purify Elafin. The Board of Directors concluded that Ms. Bargmann should serve as a director in light of her extensive scientific understanding of our technologies in development combined with the perspective and experience she brings as our current President and Chief Executive Officer from her extensive history with the Company.



16
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Dr. Barbara Kahlke has served as our Secretary since August 2004. She has been a member of the Supervisory Board of Proteo Biotech AG since May 2002, and a scientific researcher for Proteo Biotech AG since May 2000. Dr. Kahlke is a biologist, having received her doctorate from Christian-Albrechts-University in Kiel, Germany. Since 1994, Dr. Kahlke has worked for a medium-sized German pharmaceutical company with responsibilities in molecular biology and in protein production in compliance with GMP. She discovered the biological activity of bis-acyl urea.

Prof. Oliver Wiedow, M.D. has served as a Director of the Company since December 2000. Professor Wiedow served as our President, Chief Executive Officer and Chief Financial Officer from January 2004 to June 2004 and has served as a member of the Supervisory Board of Proteo Biotech AG since 2000. Since 1985 Professor Wiedow has served as physician and scientist at the University of Kiel, Germany. Prof. Wiedow discovered Elafin in human skin and has researched its biological effects. The Board of Directors concluded that Dr. Wiedow should serve as a director in light of his having been an inventor of, and his extensive scientific understanding of, our technologies in development.

Prof. Hartmut Weigelt, Ph.D. has served as a Director of the Company since December 2000. Prof. Weigelt was a member of the Supervisory Board of Proteo Biotech AG from 2000 to 2003. Since 1996, Prof. Weigelt has served as the managing director of Eco Impact GmbH which he co-founded. Prof. Weigelt was a co-founder of the first German private university, Witten/Herdecke and he is currently Chief Scientific Officer ("CSO") of MedEcon Ruhr GmbH, and head of the Department of Dental Biomedicine at the University of Applied Sciences in Hamm (Northrhine-Westphalia, Germany). Prof. Weigelt studied chemistry and biology and graduated with a M.Sc., Ph.D., and D.Sc. in biology. The Board of Directors concluded that Prof. Weigelt should serve as a director in light of his extensive scientific understanding of our technologies in development.


AUDIT COMMITTEE AND FINANCIAL EXPERT

Proteo, Inc. is not a "listed company" under SEC rules and is therefore not required to have an audit committee comprised of independent directors. We do not currently have an audit committee; however, for certain purposes of the rules and regulations of the SEC and in accordance with the Sarbanes-Oxley Act of 2002, our board of directors is deemed to be its audit committee and as such functions and performs some of the same duties as an audit committee including: (1) selection and oversight of our independent accountant; (2) establishing procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls and auditing matters; and (3) engaging outside advisors. Our board of directors has determined that its members do not include a person who is an "audit committee financial expert" within the meaning of the rules and regulations of the SEC.

The board of directors has determined that each of its members is able to read and understand fundamental financial statements and has substantial business experience that results in that member's financial sophistication. Accordingly, the board of directors believes that each of its members has sufficient knowledge and experience necessary to fulfill the duties and obligations that an audit committee would have. The Company does not have a formal compensation committee. The board of directors, acting as a compensation committee, periodically meets to discuss and deliberate on issues surrounding the terms and conditions of executive officer compensation.



17
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FAMILY RELATIONSHIPS

There are no family relationships between or among the directors, executive officers or persons nominated by the Company to become directors or executive officers.

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

To the best of the management's knowledge, during the past five years, none of the following occurred with respect to a present or former director or executive officer of the Company: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Exchange Act requires the Company's directors and executive officers and persons who own more than ten percent of a registered class of the Company's equity securities to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and other equity securities of the Company. Officers, directors and greater than ten percent beneficial owners of our common stock are required by SEC regulations to furnish the Company with copies of all Section 16(a) forms they file. To the Company's knowledge, based solely on the review of copies of such reports furnished to the Company and written representations that no other reports were required, the Company has been informed that all Section 16(a) filing requirements applicable to the Company's officers, directors and greater than ten percent beneficial owners of our common stock were complied with.

CODE OF ETHICAL CONDUCT

The Company maintains a code of ethical conduct applicable to all employees, officers and directors. The Company will also provide to any person without charge, and upon request, a copy of the Code of Ethics by making a request in writing to: [e-mail].

ITEM 11 - EXECUTIVE COMPENSATION

The following table sets forth the total compensation earned over each of the past two fiscal years ended December 31, 2010 by each person who served as the principal executive officer of Proteo during fiscal years ended 2010 and 2009. There were no other executive officers who had compensation of $100,000 or more during fiscal years ended 2010 and 2009.

SUMMARY COMPENSATION TABLE


Name and Principal Position Year Salary
($) Bonus
($) Stock
Awards
($) Option
Awards
($) Non-Equity
Incentive Plan
Compensation
(#) Non-Qualified
Deferred
Compensation
Earnings
($) All Other
Compensation
($) Total
Compensation
($)
Birge Bargmann 2010 $ 74,378 -0- -0- -0- -0- -0- -0- 74,378
(Chief Executive
Officer and Chief 2009 $ 133,888 -0- -0- -0- -0- -0- -0- 133,888
Financial Officer)



Ms. Bargmann’s salary is paid by the Company’s wholly owned subsidiary Proteo Biotech AG.



18
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OPTION/STOCK APPRECIATION RIGHTS GRANTS TABLE

The Company does not have a stock option plan, and has not granted any stock options or stock appreciation rights to date.

AGGREGATED OPTION EXERCISES AND FISCAL YEAR-END OPTION VALUE TABLE

Not applicable.

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

The Company does not have any equity compensation plans.

COMPENSATION OF DIRECTORS

The Directors have not received any compensation for serving in such capacity, and the Company does not currently contemplate compensating its Directors in the future for serving in such capacity.

EMPLOYMENT AND CONSULTING AGREEMENTS

The Company has no employment contracts with any of its officers or directors and maintains no retirement, fringe benefit or similar plans for the benefit of its officers or directors. However, Ms. Bargmann does have an employment contract with the Company’s wholly owned subsidiary Proteo Biotech AG, which is described below. The Company may, however, enter into employment contracts with its officers and key employees, adopt various benefit plans and begin paying compensation to its officers and directors as it deems appropriate to attract and retain the services of such persons. The Company does not pay fees to directors who are not executive officers for their attendance at meetings of the Board of Directors or its committees; however, the Company may adopt a policy of making such payments in the future. The Company will reimburse out-of-pocket expenses incurred by directors in attending Board and committee meetings.

COMPENSATION COMMITTEE AND INSIDER PARTICIPATION

The current Board of Directors includes Birge Bargmann, who also serves as an executive officer of the Company. As a result, this director discusses and participates in deliberations of the Board of Directors on matters relating to the terms of executive compensation. In this regard, a director whose executive compensation is voted upon by the Board of Directors must abstain from such vote.


REPORT OF THE BOARD OF DIRECTORS ON EXECUTIVE COMPENSATION

The following statement made by the Board of Directors, sitting as a Compensation Committee, shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, and shall not otherwise be deemed filed under either of such Acts.

The Company does not have a formal compensation committee and the Company’s officers receive no compensation from the Company at this time. Ms. Bargmann, our President, Chief Executive Officer and Chief Financial Officer, receives compensation from our wholly-owned subsidiary, Proteo Biotech AG. The Supervisory Board of Proteo Biotech AG entered into an employment contract with Ms. Bargmann on August 1, 2007. The contract became effective on August 1, 2007 and expires on July 31, 2010. A new contract is currently under negotiation. Pursuant to the agreement, Ms. Bargmann received a salary of 8,000 Euro per month in 2009, which amounted to total annual compensation of 96,000 Euro for the year ended December 31, 2009. Ms. Bargmann took a 40% reduction to her salary in 2010, which amounted to total annual compensation of 56,000 Euro for the year ended December 31, 2010. The supervisory Board and Ms. Bargmann are obliged to negotiate the compensation at any time on the request of either party taking into consideration the economic performance of the Company. If no understanding can be reached within one month, the requesting party is allowed to terminate the agreement three months after at month’s end.




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ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth, as of December 31, 2010, certain information with respect to the Company's equity securities owned of record or beneficially by (i) each director and executive officer; (ii) each person who owns beneficially more than 5% of each class of the Company's outstanding equity securities; and (iii) all directors and executive officers as a group. The address for all of the following individuals is c/o Proteo, Inc., 2102 Business Center Drive, Irvine, California 92612.


Name of Beneficial Owner Number of Common Shares Beneficially Owned (1) Percent of Class
Prof. Oliver Wiedow, M.D. 10,680,000 44.7%
Birge Bargmann 2,000,000 8.4%
Dr. Barbara Kahlke 10,000 *
Prof. Hartmut Weigelt, Ph.D. 57,000 *
All directors and executive officers as a group (4 persons) 12,747,000 53.4%

_________________
* less than 1%
(1) Based on 23,879,350 common shares outstanding as of December 31, 2010.

ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

On December 30, 2000, the Company entered into a thirty-year license agreement, beginning January 1, 2001 (the "License Agreement"), with Dr. Wiedow, the owner and inventor of several patents, patent rights and technologies related to Elafin. Pursuant to the License Agreement, the Company agreed to pay Dr. Wiedow an annual license fee of 110,000 Euros for a period of six years. No payments were made through fiscal year 2003. In 2004, the License Agreement was amended to require the Company to make annual payments of 30,000 Euros, to be paid on July 15 of each year, beginning in 2004. Such annual payment could be increased to 110,000 Euros by June 1 of each year based on an assessment of the Company's financial ability to make such payments. In December 2007 the Company paid Dr. Wiedow 30,000 Euros. The License Agreement was again amended by an Amendment Agreement to the License Agreement (the "Amendment") dated December 23, 2008. Pursuant to the Amendment, the Company and Dr. Wiedow have agreed that the Company would pay the outstanding balance of 630,000 Euros to Dr. Wiedow as follows: for fiscal years 2008 to 2012, the Company shall pay Dr. Wiedow 30,000 Euros per year, and for fiscal years 2013 to 2016, the Company shall pay Dr. Wiedow 120,000 Euros per year. The foregoing payments shall be made on or before December 31 of each fiscal year. In December 2008 the Company paid Dr. Wiedow 30,000 Euros. No payments were made under this agreement during 2009 or 2010. While the total amount owed does not currently bear interest, the Amendment provides that any late payment shall be subject to interest at an annual rate equal to the German Base Interest Rate (0.12% as of January 1, 2010) plus six percent. In the event that the Company's financial condition improves, the parties can agree to increase and/or accelerate the payments.

The Amendment also modified the royalty payment such that the Company will not only pay Dr. Wiedow a three percent royalty on gross revenues from the Company's sale of products based on the licensed technology but also three percent of the license fees (including upfront and milestone payments and running royalties) received by the Company or its subsidiary from their sublicensing of the licensed technology.


No royalty expense has been recognized under the License Agreement or the Amendment since the Company has yet to generate any related revenues. At December 31, 2010 and 2009, the Company has accrued approximately $795,000 and $860,000, respectively, of licensing fees payable to Dr. Wiedow, of which approximately $119,000 and $86,000, respectively, is included in current liabilities with the remainder included in long-term liabilities.




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On September 28, 2006, Dr. Wiedow entered into an agreement to contribute 50,000 Euros (approximately $63,000) to PBAG for a 15% non-voting interest in PBAG, in accordance with certain provisions of the German Commercial Code. Dr. Wiedow will receive 15% of profits, as determined under the agreement, not to exceed in any given year 30% of the capital contributed. Additionally, he will be allocated 15% of losses, as determined under the agreement, not to exceed the capital contributed. Dr. Wiedow is under no obligation to provide additional capital contributions to the Company. During the years ended December 31, 2007 and 2006, losses of 50,000 Euros (approximately $63,000) were allocated against the contributed capital account, which is presented as minority interest in the profits and losses of Proteo Biotech on the accompanying statements of operations and comprehensive loss.

The disclosure requirements of Item 407(a) of Regulation S-K are not applicable to this filing.

ITEM 14 - PRINCIPAL ACCOUNTANT FEES AND SERVICES

AUDIT FEES:

We were billed approximately $85,000 for each of the fiscal years ended December 31, 2010 and 2009, for professional services rendered by the principal accountant for the audit of the our annual consolidated financial statements and the review of our quarterly unaudited consolidated financial statements.

AUDIT RELATED FEES:

None

TAX FEES:

We were billed approximately $6,000 for each of the fiscal years ended December 31, 2010 and 2009, respectively, for professional services rendered by the principal accountant for tax compliance.

ALL OTHER FEES:

There were no other professional services rendered by our principal accountant during the two years ended December 31, 2010 that were not included in the three categories above.

All of the services provided by our principal accountant were approved by our Board of Directors. No more than 50% of the hours expended on our audit for the last fiscal year were attributed to work performed by persons other than full-time employees of our principal accountant.


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PART IV

Item 15. Exhibits and Financial Statement Schedules

(a)(1) Financial Statements. Reference is made to the Index to Consolidated Financial Statements on page F-1 for a list of financial statements filed as a part of this Annual Report.

(2) Financial Statement Schedules. All financial statement schedules are omitted because of the absence of the conditions under which they are required to be provided or because the required information is included in the financial statements listed above and/or related notes.


(3) List of Exhibits. The following is a list of exhibits filed as a part of this Annual Report on Form 10-K.

Exhibit No. Deion
21 List of Subsidiaries of Proteo, Inc.

31.1 Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act 2002

31.2 Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act 2002

32 Certification of Chief Executive Officer and Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act 2002




22
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SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) 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.

PROTEO, INC.
(Registrant)


Dated: March 14, 2011 By: /s/ Birge Bargmann
Birge Bargmann
Chief Executive Officer and
Chief Financial Officer





Pursuant to requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:


Signature Capacity Date

/s/ Birge Bargmann
--------------------------------------------------------------------------------
Director, Chief Executive Officer and
Chief Financial Officer March 14, 2011
Birge Bargmann

/s/ Oliver Wiedow, M.D.
--------------------------------------------------------------------------------
Director March 14, 2011
Oliver Wiedow, M.D.

/s/ Hartmut Weigelt, Ph.D.
--------------------------------------------------------------------------------
Director March 14, 2011
Hartmut Weigelt, Ph.D.






23
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PROTEO, INC. AND SUBSIDIARY
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


Annual Consolidated Financial Statements:

Report of Independent Registered Public Accounting Firm F-2

Consolidated Balance Sheets as of December 31, 2010 and 2009 F-3

Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2010 and 2009 and for the Period From November 22, 2000 (Inception) Through December 31, 2010 F-4

Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2010 and 2009 and for the Period From November 22, 2000 (Inception) Through December 31, 2010 F-5

Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009 and for the Period from November 22, 2000 (Inception) Through December 31, 2010 F-8

Notes to Consolidated Financial Statements F-9








F-1
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REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM


To the Board of Directors and Stockholders
Proteo, Inc. and Subsidiary


We have audited the accompanying consolidated balance sheets of Proteo, Inc. and Subsidiary (collectively the "Company"), a Development Stage Company, as of December 31, 2010 and 2009, and the related consolidated statements of operations and comprehensive loss, stockholders' equity and cash flows for the years ended December 31, 2010 and 2009, and for the period from November 22, 2000 (Inception) to December 31, 2010. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.


We conducted our audits 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 consolidated financial statements are free of material misstatement. The Company was not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated 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 audits provide a reasonable basis for our opinion.


In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Proteo, Inc. and Subsidiary as of December 31, 2010 and 2009, and the consolidated results of their operations and their cash flows for the years ended December 31, 2010 and 2009, and for the period from November 22, 2000 (Inception) to December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.


The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As reported in the accompanying consolidated financial statements, the Company is a development stage enterprise which has experienced significant losses since inception with no operating revenues. As of December 31, 2010, the Company's deficit accumulated during the development stage approximated $7.3 million. As discussed in Note 1 to the consolidated financial statements, a significant amount of additional capital will be necessary to advance the development of the Company's products to the point at which they may become commercially viable. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern. Management's plans regarding these matters are also described in Note 1. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.




/s/ Squar, Milner, Peterson, Miranda & Williamson, LLP



March 14, 2011
Newport Beach, California




F-2
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEETS

ASSETS
December 31, December 31,
2010 2009
CURRENT ASSETS
Cash and cash equivalents $ 698,534 $ 689,126
Research supplies 494,349 581,919
Prepaid expenses and other current assets 33,643 67,469
1,226,526 1,338,514

PROPERTY AND EQUIPMENT, NET 168,168 232,469
$ 1,394,694 $ 1,570,983

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 106,424 $ 190,627
Accrued licensing fees 119,277 85,998
225,701 276,625

LONG TERM LIABILITIES
Deferred fees - 117,230
Accrued licensing fees 675,903 773,982
675,903 891,212
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Non-voting preferred stock, par value $0.001 per share; 10,000,000
shares authorized; 661,500 and 630,000 shares issued and outstanding
at December 31, 2010 and 2009, respectively (Liquidation preference - Note 3) 662 630
Common stock, par value $0.001 per share; 300,000,000
shares authorized; 23,879,350 shares issued and
outstanding 23,880 23,880
Additional paid-in capital 8,567,634 8,567,634
Note receivable for sale of preferred stock (984,400 ) (1,731,306 )
Accumulated other comprehensive income 169,680 316,528
Deficit accumulated during development stage (7,284,366 ) (6,774,220 )

Total Proteo, Inc. Stockholders' Equity 493,090 403,146

Noncontrolling Interest - -

Total Stockholders' Equity 493,090 403,146

Total Liabilities and Stockholders' Equity $ 1,394,694 $ 1,570,983



SEE ACCOMPANYING NOTES TO THESE CONSOLIDATED FINANCIAL STATEMENTS




F-3
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2010

NOVEMBER 22,
2000
(INCEPTION)
THROUGH
DECEMBER 31,
2010 2009 2010
CONSOLIDATED STATEMENTS OF OPERATIONS

REVENUES $ - $ - $ -

EXPENSES
General and administrative 366,098 388,371 4,740,795
Research and development 383,182 513,080 3,048,891
749,280 901,451 7,789,686
INTEREST AND OTHER INCOME (EXPENSE), NET 239,166 43,667 442,378

NET LOSS (510,114 ) (857,784 ) (7,347,308 )

LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST - - 63,004

NET LOSS ATTRIBUTABLE TO PROTEO, INC. (510,114 ) (857,784 ) (7,284,304 )

PREFERRED STOCK DIVIDEND (32 ) (30 ) (62 )

NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (510,146 ) $ (857,814 ) $ (7,284,366 )
BASIC AND DILUTED LOSS ATTRIBUTABLE TO PROTEO, INC.
COMMON SHAREHOLDERS $ (0.02 ) $ (0.04 )

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 23,879,350 23,879,350

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

NET LOSS ATTRIBUTABLE TO PROTEO, INC. $ (510,114 ) $ (857,784 ) $ (7,284,304 )

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS (146,848 ) 37,248 169,680

COMPREHENSIVE LOSS $ (656,962 ) $ (820,536 ) $ (7,114,624 )



SEE ACCOMPANYING NOTES TO THESE CONSOLIDATED FINANCIAL STATEMENTS



F-4
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2010


Preferred Stock Shares Amount Common Stock Shares Amount Additional
Paid-in
Capital Stock Subions Receivable Accumulated Other Comprehensive Income (Loss) Deficit Accumulated During Development Stage Total
BALANCE - November 22, 2000 (Inception) - $ - - $ - $ - $ - $ - $ - $ -

Common stock subscribed at $0.001 per share - - 4,800,000 4,800 - (4,800 ) - - -

Common stock issued for cash at $3.00 per share - - 50,000 50 149,950 - - - 150,000

Reorganization with Proteo Biotech AG - - 2,500,000 2,500 6,009 - - - 8,509

Net loss - - - - - - - (60,250 ) (60,250 )

BALANCE - December 31, 2000 - $ - 7,350,000 $ 7,350 $ 155,959 $ (4,800 ) $ - $ (60,250 ) $ 98,259

Common stock issued for cash at $3.00 per share - - 450,000 450 1,349,550 - - - 1,350,000

Cash received for common stock subscribed at $0.001 per share - - - - - 4,800 - - 4,800

Common stock issued for cash at $0.40 per share - - 201,025 201 80,209 - - - 80,410

Common stock subscribed at $0.40 per share - - 5,085,487 5,086 2,029,109 (2,034,195 ) - - -

Common stock issued for cash to related parties at $0.001 per share - - 7,200,000 7,200 - - - - 7,200

Other comprehensive loss - - - - - - (20,493 ) - (20,493 )

Net loss - - - - - - - (374,111 ) (374,111 )

BALANCE - December 31, 2001 - $ - 20,286,512 $ 20,287 $ 3,614,827 $ (2,034,195 ) $ (20,493 ) $ (434,361 ) $ 1,146,065





F-5
--------------------------------------------------------------------------------



Common stock issued in connection with reverse merger - $ - 1,313,922 $ 1,314 $ (1,314 ) $ - $ - $ - $ -

Cash received for common stock subscribed at $0.40 per share - - - - - 406,440 - - 406,440

Other comprehensive income - - - - - - 116,057 - 116,057

Net loss - - - - - - - (1,105,395 ) (1,105,395 )

BALANCE - December 31, 2002 - $ - 21,600,434 $ 21,601 $ 3,613,513 $ (1,627,755 ) $ 95,564 $ (1,539,756 ) $ 563,167

Common stock issued for cash at $0.60 per share - - 66,667 67 39,933 - - - 40,000

Cash received for common stock subscribed at $0.40 per share - - - - - 387,800 - - 387,800

Other comprehensive income - - - - - - 164,399 - 164,399

Net loss - - - - - - - (620,204 ) (620,204 )

BALANCE - December 31, 2003 - $ - 21,667,101 $ 21,668 $ 3,653,446 $ (1,239,955 ) $ 259,963 $ (2,159,960 ) $ 535,162

Common stock issued for cash at $0.40 per share - - 412,249 412 164,588 - - - 165,000

Cash received for common stock subscribed at $0.40 per share - - - - - 680,000 - - 680,000

Other comprehensive income - - - - - - 93,186 - 93,186

Net loss - - - - - - - (639,746 ) (639,746 )

BALANCE - December 31, 2004 - $ - 22,079,350 $ 22,080 $ 3,818,034 $ (559,955 ) $ 353,149 $ (2,799,706 ) $ 833,602

Common stock subscribed at $0.84 per share - - 300,000 300 251,700 (252,000 ) - - -

Cash received for common stock subscribed at $0.40 per share - - - - - 435,284 - - 435,284

Other comprehensive loss - - - - - - (134,495 ) - (134,495 )

Net loss - - - - - - - (1,131,781 ) (1,131,781 )

BALANCE - December 31, 2005 - $ - 22,379,350 $ 22,380 $ 4,069,734 $ (376,671 ) $ 218,654 $ (3,931,487 ) $ 2,610




F-6
--------------------------------------------------------------------------------



Common stock subscribed at $0.60 per share - $ - 1,500,000 $ 1,500 $ 898,500 $ (900,000 ) $ - $ - $ -

Cash received for common stock subscribed at $0.40 per share - - - - - 414,590 - - 414,590

Other comprehensive income - - - - - - 61,737 - 61,737

Net loss - - - - - (649,868 ) (649,868 )

BALANCE - December 31, 2006 - $ - 23,879,350 $ 23,880 $ 4,968,234 $ (862,081 ) $ 280,391 $ (4,581,355 ) $ (170,931 )

Cash received for common stock subscribed at $0.60 per share - - - - - 862,081 - - 862,081

Other comprehensive income - - - - - - 89,987 - 89,987

Net loss - - - - - - - (445,169 ) (445,169 )

BALANCE - December 31, 2007 - $ - 23,879,350 $ 23,880 $ 4,968,234 $ - $ 370,378 $ (5,026,524 ) $ 335,968

Preferred stock subscribed at $6.00 per share 600,000 600 - - 3,599,400 (3,600,000 ) - - -

Cash received for preferred stock subscribed at $2.26 per share - - - - - 1,354,611 - - 1,354,611

Other comprehensive loss - - - - - - (91,098 ) - (91,098 )

Net loss - - - - - - - (889,882 ) (889,882 )

BALANCE - December 31, 2008 600,000 $ 600 23,879,350 $ 23,880 $ 8,567,634 $ (2,245,389 ) $ 279,280 $ (5,916,406 ) $ 709,599

Cash received for preferred stock subscribed at $2.26 per share - - - - - 514,083 - - 514,083

Preferred stock dividend 30,000 30 (30 ) -

Other comprehensive income - - - - - - 37,248 - 37,248

Net loss - - - - - - - (857,784 ) (857,784 )

BALANCE - December 31, 2009 630,000 $ 630 23,879,350 $ 23,880 $ 8,567,634 $ (1,731,306 ) $ 316,528 $ (6,774,220 ) $ 403,146

Cash received for preferred stock subscribed at $2.26 per share - - - - - 746,906 - - 746,906

Preferred stock dividend 31,500 32 - - - - - (32 ) -

Other comprehensive loss - - - - - - (146,848 ) - (146,848 )

Net loss - - - - - - - (510,114 ) (510,114 )

BALANCE - December 31, 2010 661,500 $ 662 23,879,350 $ 23,880 $ 8,567,634 $ (984,400 ) $ 169,680 $ (7,284,366) $ 493,090




SEE ACCOMPANYING NOTES TO THESE CONSOLIDATED FINANCIAL STATEMENTS


F-7
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2010

NOVEMBER 22,
2000
(INCEPTION)
THROUGH
DECEMBER 31,
2010 2009 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss attributable to Proteo, Inc. $ (510,114 ) $ (857,784 ) $ (7,284,304 )
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation 48,145 56,523 439,346
Bad debt expense - 60,408 60,408
Loss on disposal of equipment - - 4,518
Foreign currency transaction (gains) losses (105,992 ) 14,160 91,570
Changes in operating assets and liabilities:
Research supplies 43,817 (452,808 ) (539,683 )
Prepaid expenses and other current assets (8,463 ) 63,497 (135,185 )
Accounts payable and accrued liabilities (74,529 ) 60,429 77,895
Deferred fees (108,397 ) - 11,944
Accrued licensing fees - - 660,713

NET CASH USED IN OPERATING ACTIVITIES (715,533 ) (1,055,575 ) (6,612,778 )

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (1,259 ) (20,308 ) (634,873 )
Cash of reorganized entity - - 27,638

NET CASH USED IN INVESTING ACTIVITIES (1,259 ) (20,308 ) (607,235 )

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock - - 1,792,610
Proceeds from subscribed common stock and issuance
of preferred stock to related party 746,906 514,083 5,806,575

NET CASH PROVIDED BY FINANCING ACTIVITIES 746,906 514,083 7,599,185

EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS (20,706 ) 13,476 319,362

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 9,408 (548,324 ) 698,534
CASH AND CASH EQUIVALENTS--BEGINNING OF PERIOD 689,126 1,237,450 -

CASH AND CASH EQUIVALENTS--END OF PERIOD $ 698,534 $ 689,126 $ 698,534

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Preferred stock dividend $ 32 $ 30 $ 62

Common stock issued for subions receivable $ - $ - $ 1,627,755

Net assets (excluding cash) of reorganized entity received in exchange for equity securities $ - $ - $ 8,509

Unpaid balance of note receivable for issuance of preferred stock $ - $ - $ 2,245,389



SEE ACCOMPANYING NOTES TO THESE CONSOLIDATED FINANCIAL STATEMENTS




F-8
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


ORGANIZATION/NATURE OF BUSINESS


Proteo, Inc. and Proteo Marketing, Inc. ("PMI"), a Nevada corporation, which began operations in November 2000, entered into a reorganization and stock exchange agreement in December 2000 with Proteo Biotech AG ("PBAG"), a German corporation, incorporated in Kiel, Germany. Pursuant to the terms of the agreement, all of the shareholders of PBAG exchanged their common stock for 2,500,000 shares of PMI common stock. As a result, PBAG became a wholly owned subsidiary of PMI. Proteo Inc.'s common stock is quoted on the Over-the-Counter Bulletin Board under the symbol "PTEO.OB".


During 2001, PMI entered into a Shell Acquisition Agreement (the "Acquisition Agreement") with Trivantage Group, Inc. ("Trivantage"), a public "shell" company, in a transaction accounted for as a reverse merger. In accordance with the Acquisition Agreement, PMI first acquired 176,660,280 shares (1,313,922 post-reverse split shares, as described below) of Trivantage's common stock representing 90% of the issued and outstanding common stock of Trivantage, in exchange for a cash payment of $500,000 to the sole shareholder of Trivantage. Secondly, Trivantage completed a one for one-hundred-fifty reverse stock split. Finally, effective April 25, 2002, the shareholders of PMI exchanged their shares of PMI for an aggregate of 20,286,512 shares of Trivantage to effect a reverse merger between PMI and Trivantage. Subsequently, Trivantage changed its name to Proteo, Inc. Effective December 31, 2004, PMI merged into Proteo, Inc. PBAG and Proteo, Inc. are hereinafter collectively referred to as the "Company."


The Company intends to develop, promote and market pharmaceuticals and other biotech products. The Company is focused on the development of pharmaceuticals based on the human protein Elafin. Elafin is a human protein that naturally occurs in human skin, lungs, and mammary glands. The Company believes Elafin may be useful in the treatment of post-surgery damage to tissue, complications resulting from organ transplantation, pulmonary hypertension, serious injuries caused by accidents, cardiac infarction, as well as other diseases.


Since its inception, the Company has primarily been engaged in the research and development of its proprietary product Elafin. Once the research and development phase is complete, the Company will begin to manufacture and obtain the various governmental regulatory approvals for the marketing of Elafin. The Company is in the development stage and has not generated any significant revenues from product sales. The Company believes that none of its planned products will produce sufficient revenues in the near future. There are no assurances, however, that the Company will be able to produce such products, or if produced, that they will be accepted in the marketplace.



F-9
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


DEVELOPMENT STAGE AND GOING CONCERN MATTERS


The Company has been in the development stage since it began operations on November 22, 2000 and has not generated any revenues from operations and has incurred net losses since inception of approximately $7,347,000. There is no assurance of any future revenues. At December 31, 2010, the Company has working capital of approximately $1,001,000, stockholders' equity of approximately $493,000, and an accumulated deficit of approximately $7.3 million.


The Company will require substantial additional funding for continuing research and development, obtaining regulatory approval, and for the commercialization of its products.


Management has taken action to address these matters. They include:

— Retention of experienced management personnel with particular skills in the development of such products.

— Attainment of technology to develop biotech products.

— Raising additional funds through the sale of debt and/or equity securities.



The Company's products, to the extent they may be deemed drugs or biologics, are governed by the United States Federal Food, Drug and Cosmetics Act and the regulations of state and various foreign government agencies. The Company's proposed pharmaceutical products to be used with humans are subject to certain clearance procedures administered by the above regulatory agencies. There can be no assurance that the Company will receive the regulatory approvals required to market its proposed products elsewhere or that the regulatory authorities will review the product within the average period of time.


Management plans to generate revenues from product sales, but there are no purchase commitments for any of the proposed products. Additionally, the Company may generate revenues from out-licensing activities. There can be no assurance that further out-licensing may be achieved and may generate significant profit. In the absence of significant sales and profits, the Company may seek to raise additional funds to meet its working capital requirements through the additional placement of debt and/or sales of equity securities. There is no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.


These circumstances, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.




F-10
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


CONCENTRATIONS


The Company maintains substantially all of its cash in bank accounts at a private German commercial bank. The Company's bank accounts at this financial institution are presently protected by the voluntary Deposit Protection Fund of The German Private Commercial Banks. As such, the Company's bank is a member of this deposit protection fund. The Company has not experienced any losses in these bank accounts.


The Company's research and development activities and most of its assets are located in Germany. The Company's operations are subject to various political, economic, and other risks and uncertainties inherent in Germany and the European Union.


OTHER RISKS AND UNCERTAINTIES


The Company's line of future pharmaceutical products being developed by its German subsidiary are considered drugs or biologics, and as such, are governed by the Federal Food and Drug and Cosmetics Act in the United States and by the regulations of state agencies and various foreign government agencies. There can be no assurance that the Company will obtain the regulatory approvals required to market its products. The pharmaceutical products under development in Germany will be subject to more stringent regulatory requirements because they are recombinant proteins for use in humans. The Company has no experience in obtaining regulatory approvals for these types of products. Therefore, the Company will be subject to the risks of delays in obtaining or failing to obtain regulatory clearance and other uncertainties, including financial, operational, technological, regulatory and other risks associated with an emerging business, including the potential risk of business failure.


As substantially all of the Company's operations are in Germany, they are exposed to risks related to fluctuations in foreign currency exchange rates. The Company does not utilize derivative instruments to hedge against such exposure.


PRINCIPLES OF CONSOLIDATION


The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of Proteo, Inc. and Proteo Biotech AG, its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.


Effective January 1, 2009, the Company adopted new guidance to the Consolidation Topic of the Financial Accounting Standard Board’s (“FASB”) new Accounting Standards Codification (“ASC” or “Codification”). This guidance improves the relevance, comparability and transparency of the financial information that a company provides in its consolidated financial statements by establishing accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This standard requires the Company to classify noncontrolling interests (previously referred to as "minority interest") as part of consolidated net earnings and to include the accumulated amount of noncontrolling interests as part of stockholders' equity.




F-11
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


PRINCIPLES OF CONSOLIDATION (continued)


The net loss amounts the Company has previously reported are now presented as "Net loss attributable to Proteo, Inc." and, as required by the Codification, earnings per share continues to reflect amounts attributable only to the Company. Similarly, in the presentation of stockholders' equity, the Company distinguishes between equity amounts attributable to the Company's stockholders and amounts attributable to the noncontrolling interest - previously classified as minority interest outside of stockholders' equity. In addition to these financial reporting changes, this guidance provides for significant changes in accounting related to noncontrolling interests; specifically, increases and decreases in the Company's controlling financial interests in consolidated subsidiaries will be reported in equity similar to treasury stock transactions. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. Except for presentation, the implementation of this guidance did not have a material effect on the Company's consolidated financial statements because a substantive contractual arrangement specifies the attribution of net earnings and loss not to exceed the noncontrolling interest.


STARTUP ACTIVITIES


The Other Expenses Topic (Start-Up Costs Sub-topic) of the ASC requires that all non-governmental entities expense the costs of startup activities as incurred, including organizational costs. This standard has not materially impacted the Company's financial position or results of operations.


GRANTS


At times the Company has received grants from the German government which were used to fund research and development activities and the acquisition of equipment. Grant receipts for the reimbursement of research and development expenses were offset against such expenses in the accompanying consolidated statements of operations and comprehensive loss when the related expenses are incurred. Grants related to the acquisition of tangible property were recorded as a reduction of such property's historical cost.


The Company has not received any grant funds for the years ended December 31, 2010 and 2009, nor has it applied for any additional grants during such periods.


USE OF ESTIMATES


The Company prepares its consolidated financial statements in conformity with GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues (if any) and expenses during the reporting period. Significant estimates made by management include, among others, realizability of long-lived assets and estimates for deferred tax asset valuation allowances. Actual results could materially differ from such estimates.




F-12
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


FAIR VALUE OF FINANCIAL INSTRUMENTS AND CERTAIN OTHER ASSETS/LIABILITIES


The Fair Value Measurements and Disclosures Topic of the ASC requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. Management believes that the carrying amounts of the Company's financial instruments, consisting primarily of cash and cash equivalents, accounts payable and accrued liabilities, approximate their fair value at December 31, 2010 and 2009 due to their short-term nature. The Company does not have any assets or liabilities that are measured at fair value on a recurring or non-recurring basis during the years ended December 31, 2010 and 2009 and for the period from November 22, 2000 (Inception) through December 31, 2010.


FOREIGN CURRENCY FINANCIAL REPORTING


Assets and liabilities of the Company's German operations are translated from Euros (the functional currency) into U.S. dollars (the reporting currency) at period-end exchange rates. Expense and grant receipts are translated at weighted average exchange rates for the period. Net exchange gains or losses resulting from such translation are excluded from the consolidated statements of operations and are included in comprehensive loss and accumulated in a separate component of stockholders' equity. Such accumulated amount approximated $170,000 and $317,000 at December 31, 2010 and 2009, respectively.


The Company records payables related to a certain licensing agreement (Note 6) in accordance with the Foreign Currency Matters Topic of the Codification. Quarterly commitments under such agreement are denominated in Euros. For each reporting period, the Company translates the quarterly amount to U.S. dollars at the exchange rate effective on that date. If the exchange rate changes between when the liability is incurred and the time payment is made, a foreign exchange gain or loss results. The Company made no payments under this licensing agreement during the years ended December 31, 2010 and 2009, and did not realize any significant foreign currency exchanges gains or losses.


Additionally, the Company computes a foreign exchange gain or loss at each balance sheet date on all recorded transactions denominated in foreign currencies that have not been settled. The difference between the exchange rate that could have been used to settle the transaction on the date it occurred and the exchange rate at the balance sheet date is the unrealized gain or loss that is currently recognized. The Company recorded an unrealized foreign currency transaction gain (loss) of approximately $106,000 and $(14,000) for the years ended December 31, 2010 and 2009, respectively, which are included in interest and other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss.



F-13
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


CASH AND CASH EQUIVALENTS


The Company considers all highly liquid temporary cash investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist of deposits with banks and short-term certificates of deposit.


RESEARCH SUPPLIES


Research supplies is stated at cost, and is entirely comprised of research supplies and materials that are expensed as consumed.


LONG-LIVED ASSETS


Property and equipment are recorded at cost and depreciated using the straight-line method over their expected useful lives, which range from 3 to 14 years. Leasehold improvements are amortized over the expected useful life of the improvement or the remaining lease term, whichever is shorter. Expenditures for normal maintenance and repairs are charged to income, and significant improvements are capitalized. The cost and related accumulated depreciation or amortization of assets are removed from the accounts upon retirement or other disposition; any resulting gain or loss is reflected in the consolidated statements of operations and comprehensive loss.


The Codification requires that certain long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If the cost basis of a long-lived asset is greater than the projected future undiscounted net cash flows from such asset, an impairment loss is recognized. Impairment losses are calculated as the difference between the cost basis of an asset and its estimated fair value. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell. Management believes that no indicators of impairment existed as of or during the years ended December 31, 2010 and 2009. There can be no assurance, however, that market conditions or demand for the Company's products or services will not change which could result in long-lived asset impairment charges in the future.


REVENUE RECOGNITION


It is the Company's intent to recognize revenues from future product sales at the time of product delivery. The Company believes that once significant operating revenues are generated, the Company's revenue recognition accounting policies will conform to the Revenue Recognition Topic of the Codification.




F-14
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009

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





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


RESEARCH AND DEVELOPMENT


Research and development costs are charged to operations as incurred. Grant funds received are reported as a reduction of research and development costs.


PATENTS AND LICENSES


The Company does not own any patents or patents pending related to the Elafin technology and instead operates under a technology license agreement with a related party (see Note 6). Under such license agreement, the Company has agreed to pay all costs related to new patents, patents pending, and patent maintenance associated with the Elafin technology. The Company expenses such costs as incurred.


INCOME TAXES


The Company accounts for income taxes using the liability method in accordance with the Income Taxes Topic of the ASC. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided for significant deferred tax assets when it is more likely than not that such assets will not be recovered.


As of December 31, 2010 and 2009, the Company did not increase or decrease the liability for unrecognized tax benefit related to uncertain tax positions in prior periods nor did the Company increase its liability for any uncertain tax positions in the current year. Furthermore, there were no adjustments to the liability or lapse of any statutes of limitation or settlements with taxing authorities.


The Company expects resolution of unrecognized tax benefits, if created, would occur while the 100% valuation allowance of deferred tax assets is maintained; therefore, the Company does not expect to have any unrecognized tax benefits that, if recognized, would affect its effective income tax rate.


The Company will recognize interest and penalty related to unrecognized tax benefits and penalties as income tax expense. As of December 31, 2010, the Company has not recognized any liabilities for penalty or interest as the Company does not have any liability for unrecognized tax benefits.


The Company is subject to taxation in the U.S. and various states. The Company's 2005 through 2010 tax years are subject to examination by the taxing authorities. With few exceptions, the Company is no longer subject to U.S. federal, state, local or foreign examinations by taxing authorities for years before 2005.



F-15
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


ACCOUNTING FOR STOCK-BASED COMPENSATION


From inception to December 31, 2010, the Company has not granted any stock options, stock warrants, or stock appreciation rights, and has not adopted any stock option plan.


LOSS PER COMMON SHARE


Basic loss per common share is computed based on the weighted average number of shares outstanding for the period. Diluted loss per common share is computed by dividing net loss available to common stockholders by the weighted average shares outstanding assuming all dilutive potential common shares were issued. There were no dilutive potential common shares outstanding at December 31, 2010 or 2009.


COMPREHENSIVE LOSS


Total comprehensive loss represents the net change in stockholders' equity (deficit) during a period from sources other than transactions with stockholders and as such, includes net earnings or loss. For the Company, other comprehensive loss represents the foreign currency translation adjustments, which are recorded as components of stockholders' equity.


SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION


The Company considers itself to operate in one segment and has had no operating revenues from inception. See Note 2 for information on long-lived assets located in Germany.


SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS


Effective September 30, 2009, the Company adopted the FASB’s new Accounting Standard Codification as the single source of authoritative accounting guidance under the Generally Accepted Accounting Principles Topic. The ASC does not create new accounting and reporting guidance, rather it reorganizes GAAP pronouncements into approximately 90 topics within a consistent structure. All guidance in the ASC carries an equal level of authority. Relevant portions of authoritative content, issued by the SEC, for SEC registrants, have been included in the ASC. After the effective date of the Codification, all nongrandfathered, non-SEC accounting literature not included in the ASC is superseded and deemed nonauthoritative. Adoption of the Codification also changed how the Company references GAAP in its consolidated financial statements.


The FASB has issued Accounting Standards Update (“ASU”) No. 2010-09, Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclosure Requirements. The amendments in the ASU remove the requirement for an SEC filer to disclose a date through which subsequent events have been evaluated in both issued and revised financial statements. Revised financial statements include financial statements revised as a result of either correction of an error or retrospective application of U.S. GAAP. The FASB believes these amendments remove potential conflicts with the SEC’s literature. All of the amendments in the ASU were effective upon issuance (February 24, 2010).




F-16
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS (continued)


In December 2009, the FASB issued ASU 2009-17, Consolidations (Topic 810) - Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, which codifies FASB Statement No. 167, Amendments to FASB Interpretation No. 46(R). ASU 2009-17 represents a revision to former FASB Interpretation No. 46 (Revised December 2003), Consolidation of Variable Interest Entities, and changes how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. ASU 2009-17 also requires a reporting entity to provide additional disclosures about its involvement with variable interest entities and any significant changes in risk exposure due to that involvement. A reporting entity will be required to disclose how its involvement with a variable interest entity affects the reporting entity’s financial statements. ASU 2009-17 is effective at the start of a reporting entity’s first fiscal year beginning after November 15, 2009, or January 1, 2010, for a calendar year-end entity. Early application is not permitted. The adoption of this update had no impact on the Company’s consolidated financial statements.


In June 2009, the FASB issued Statements on Financial Accounting Standards (“SFAS”) No. 166, Accounting for Transfers of Financial Assets—An Amendment of FASB Statement 140, which eliminates the concept of qualified special purpose entities (QSPEs) and provides additional criteria transferors must use to evaluate transfers of financial assets. This standard modifies certain guidance contained in FASB ASC 860 and is adopted into the Codification through the issuance of ASU 2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets. In order to determine whether a transfer is accounted for as a sale, the transferor must assess whether it and all of its consolidated entities have surrendered control of the financial assets. The standard also requires financial assets and liabilities retained from a transfer accounted for as a sale to be initially recognized at fair value. This standard is effective for fiscal years and interim periods beginning after November 15, 2009, with adoption applied prospectively for transfers that occur on or after the effective date. The adoption of this standard had no impact on the Company’s consolidated financial statements.


In April 2009, the FASB issued additional guidance under the Investments – Debt and Equity Securities Topic of the ASC. For debt securities, this guidance replaces the management assertion that it has the intent and ability to hold an impaired debt security until recovery with the requirement that management assert if it either has the intent to sell the debt security or if it is more likely than not the entity will be required to sell the debt security before recovery of its amortized cost basis. If management intends to sell the debt security or it is more likely than not the entity will be required to sell the debt security before recovery of its amortized cost basis, an other than temporary impairment (“OTTI”) shall be recognized in earnings equal to the entire difference between the debt security's amortized cost basis and its fair value at the reporting date. After the recognition of an OTTI, the debt security is accounted for as if it had been purchased on the measurement date of the OTTI, with an amortized cost basis equal to the previous amortized cost basis less the OTTI recognized in earnings. The update also changes the presentation in the financial statements of non credit related impairment amounts for instruments within its scope. When the entity asserts it does not have the intent to sell the security and it is more likely than not it will not have to sell the security before recovery of its cost basis, only the credit related impairment losses are to be recognized in earnings and non credit losses are to be recognized in other comprehensive income (“OCI”). Additionally, this update provides for enhanced presentation and disclosure of OTTIs of debt and equity securities in the financial statements. The adoption of this guidance had no impact on the Company’s consolidated financial statements.




F-17
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS (continued)


Effective January 1, 2009, the Company adopted additional guidance to the Intangibles – Goodwill and Other Topic of the FASB ASC. This update amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset. The intent of this update is to improve the consistency between the useful life of a recognized intangible asset and the period of expected cash flows used to measure the fair value of the asset under accounting for business combinations, and other U.S. GAAP. The adoption of this guidance did not have any impact on the Company's consolidated financial statements.


Effective January 1, 2009, the Company adopted new guidance to the Business Combinations Topic of the FASB ASC. This guidance establishes principles and requirements for how the acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree, recognizes and measures the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. The adoption of this guidance had no impact on the Company's consolidated financial statements. The Company will apply this guidance prospectively to any business combination on or after January 1, 2009 as required.


Effective January 1, 2009, the Company adopted additional guidance under the Fair Value Measurement and Disclosures Topic of the FASB ASC, which delays the effective date of the adoption of new guidance under the Fair Value Measurements and Disclosures Topic to January 1, 2009 for certain nonfinancial assets and nonfinancial liabilities. Examples of applicable nonfinancial assets and nonfinancial liabilities to which this update applies include, but are not limited to:


· Nonfinancial assets and nonfinancial liabilities initially measured at fair value in a business combination that are not subsequently remeasured at fair value;

· Reporting units measured at fair value in the goodwill impairment test as described in the Intangibles – Goodwill and Other Topic of the FASB ASC and nonfinancial assets and nonfinancial liabilities measured at fair value in the goodwill impairment test, if applicable; and

· Nonfinancial long-lived assets measured at fair value for impairment assessment under the Property, Plant and Equipment Topic of the FASB ASC.


The adoption of this update had no impact on the Company's consolidated financial statements.


FUTURE ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS


In January 2010, the FASB issued ASU No. 2010-06, Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements. This ASU requires some new disclosures and clarifies some existing disclosure requirements about fair value measurement as set forth in Codification Subtopic 820-10. The FASB’s objective is to improve these disclosures and, thus, increase the transparency in financial reporting. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Early application is permitted. The adoption of this ASU is not expected to result in a material impact to the Company’s future consolidated financial statements.


Except as described above, in the opinion of management, neither the FASB, its Emerging Issues Task Force, the AICPA, nor the SEC have issued any additional accounting pronouncements that are expected to have a material impact on the Company's future consolidated financial statements.




F-18
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





2. PROPERTY AND EQUIPMENT


Property and equipment, all of which is located in Kiel, Germany, consist of the following:

December 31,
2010 2009
Technical and laboratory equipment $ 410,245 $ 442,319
Plant 195,859 211,819
Leasehold improvements 4,928 5,329
Office equipment 27,671 29,925
638,703 689,392
Less accumulated depreciation and amortization (470,535 ) (456,923 )
Total $ 168,168 $ 232,469


Depreciation and amortization expense included in general and administrative expense in the consolidated statements of operations approximated $48,000 and $57,000 for the years ended December 31, 2010 and 2009, respectively.

During the two years ended December 31, 2010, there were no long-lived assets that were considered to be impaired.

3. STOCKHOLDERS' EQUITY


COMMON STOCK


The Company is authorized to issue 300,000,000 shares of $0.001 par value common stock. The holders of the Company's common stock are entitled to one vote for each share held of record on all matters to be voted on by those stockholders.


In November 2000, the Company sold and issued 4,800,000 shares of restricted common stock at $0.001 per share for $4,800 in cash, which was received in fiscal 2001; therefore the issuance was accounted for as a stock subion receivable at December 31, 2000. During the year ended December 31, 2001, the Company sold and issued an additional 7,200,000 shares of restricted common stock to related parties at $0.001 per share for $7,200 in cash.


In November 2000, the Company sold and issued 50,000 shares of restricted common stock at $3.00 per share for $150,000 in cash.



F-19
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





3. STOCKHOLDERS' EQUITY (continued)


COMMON STOCK (continued)


In December 2000, the Company issued 2,500,000 shares of restricted common stock in connection with the reorganization and stock exchange agreement with PBAG (see "Organization/Nature of Business" in Note 1).


During the year ended December 31, 2001, the Company issued and sold 450,000 shares of restricted common stock at $3.00 per share to Euro-American GmbH for $1,350,000 in cash.


During the year ended December 31, 2001, the Company entered into a subion agreement and note receivable for 6,000,000 shares of the Company's restricted common stock with Euro-American GmbH, valued at $2,400,000. During the year ended December 31, 2001, 5,286,512 shares of Company common stock were issued under such subion, of which approximately $435,000, $680,000, and $794,000 was received against this receivable during the years ended December 31, 2005, 2004, and the period from Inception through December 31, 2003, respectively. In May 2003, FID-Esprit AG ("FID-Esprit") assumed the common stock subion agreement with Euro-American GmbH. The Company received the outstanding balance in installments through March 28, 2006.


During the year ended December 31, 2002, the Company issued 1,313,922 shares of restricted common stock in conjunction with the reverse merger with PMI (see "Organization/Nature of Business" in Note 1).


Additionally, the Company entered into a common stock purchase agreement with FID-Esprit to sell up to 1,000,000 shares of the Company's restricted common stock. Under the agreement, the Company agreed to sell its common stock at a price per share equal to 40% of the average ask price for the 20 trading days previous to the date of subion, as quoted on a public market. However, the price per share will be no less than $0.40. During the years ended December 31, 2004 and 2003, the Company issued 412,249 and 66,667 shares, respectively, at $0.40 and $0.60 per share, respectively, for cash. Such agreement was not renewed after it expired on December 31, 2004.


In November 2005, the Company entered into a common stock purchase agreement with FID-Esprit to sell 300,000 of the Company's restricted common shares at $0.84 per share, or $252,000. Concurrent with such transaction, FID-Esprit issued a promissory note to the Company for $252,000 to be paid in four installments of $63,000 each, due on March 31, 2006, June 30, 2006, September 30, 2006, and December 31, 2006. The promissory note was paid in full during the year ended December 31, 2006.


In December 2006, the Company entered into a common stock purchase agreement with FID-Esprit to sell 1,500,000 of the Company's restricted common shares at $0.60 per share, or $900,000. Concurrent with such transaction, FID-Esprit issued a promissory note to the Company for $900,000 to be paid in five installments of $180,000 each through December 31, 2007. FID-Esprit made a partial payment of $37,894 against the note in December 2006. FID-Esprit paid the remaining balance in 2007.




F-20
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





3. STOCKHOLDERS' EQUITY (continued)


PREFERRED STOCK


The Company is authorized to issue 10,000,000 shares of preferred stock, $0.001 par value per share. Except as described below, the Board of Directors has not designated any liquidation value, dividend rates or other rights or preferences with respect to any shares of preferred stock.


The Board of Directors has designated 750,000 preferred shares as non-voting Series A Preferred Stock. As more fully described in the Company’s Form 8-K filed with the SEC on June 11, 2008, holders of Series A Preferred Stock are entitled to receive preferential dividends, if and when declared, at the per share rate of twice the per share amount of any cash or non-cash dividend distributed to holders of the Company's common stock. If no dividend is distributed to common stockholders, the holders of Series A Preferred Stock are entitled to an annual stock dividend payable at the rate of one share of Series A Preferred Stock for each twenty shares of Series A Preferred Stock owned by each holder of Series A Preferred Stock. The annual stock dividend shall be paid on June 30 of each year commencing in 2009 and no stock dividends will be paid after December 31, 2011.


On June 9, 2008, the Company entered into a Preferred Stock Purchase Agreement ("Stock Purchase Agreement") with FID-Esprit (the “Investor”), a common stockholder and related party. Pursuant to the Stock Purchase Agreement, the Company sold and issued to the Investor 600,000 shares of Series A Preferred Stock at a price of $6.00 per share, for an aggregate price of $3,600,000 ("Purchase Price"). In payment of the Purchase Price, the Investor delivered to the Company a promissory note in the amount of $3,600,000 (the “Note”), which matured on March 31, 2009. During the year ended December 31, 2009, the Company received payments approximating $514,000 (including payments received under the Forbearance Agreement, as described below), in connection with the Stock Purchase Agreement. The unpaid principal balance of the Series A Preferred Stock note receivable as of December 31, 2009, which represents a technical default under the Note, approximated $1,731,000. The Series A Preferred Stock note receivable is reported as a reduction of stockholders' equity.

On July 6, 2009, the Company and Investor entered into a Forbearance Agreement and General Release (the “Forbearance Agreement”) to renegotiate the terms of the Note. Pursuant to the Forbearance Agreement, the Investor acknowledged and agreed that, as of July 6, 2009, it was obligated to the Company under the Note for the aggregate sum of $1,940,208 (the “Indebtedness”), which represents the unpaid principal amount as of such date plus a late charge equal to three percent (3%) of the unpaid principal amount (approximately $65,000). In exchange for the Company’s agreement to forbear from exercising its rights under the Note and Guaranty, the Investor has agreed to pay the Indebtedness by making monthly payments in the amount of $140,000 commencing on the first business day of September 2009 and continuing on the first business day of each succeeding month thereafter until the Indebtedness is paid in full. As of December 31, 2009, the Company had only received approximately $148,000 since the inception of the Forbearance Agreement (approximately $5,000 of which was applied to the late charge), and therefore the Investor was technically in default. The Company has not chosen to enforce the remedies under the Forbearance Agreement or the Stock Purchase Agreement as of the filing of this Form 10-K. The receivable for late fees was fully reserved at December 31, 2010 and 2009.




F-21
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





3. STOCKHOLDERS' EQUITY (continued)


PREFERRED STOCK (continued)


On February 11, 2010, the Company entered into an Agreement on the Assumption of Debt (“Agreement”) between the Company, btd biotech development GmBH (“Assignee”), and Axel J. Kutscher (the “Guarantor” of the Note). Pursuant to the Agreement, the Company consented to Assignee’s assumption of the obligations owed to the Company by Investor under the Note, Stock Purchase Agreement and Forbearance Agreement. The Guarantor consented to the assumption of the obligations owed to the Company by Investor and acknowledged, agreed, and consented to the continuing validity of his guaranty. During the year ended December 31, 2010, the Company received payments approximating $747,000, in connection with this agreement. The note receivable approximated $984,000 at December 31, 2010.


Effective June 30, 2010 and 2009, the Company declared a stock dividend of 31,500 shares and 30,000 shares, respectively, of Series A Preferred Stock payable to its Series A Preferred Stock holders pursuant to the Stock Purchase Agreement.


4. NONCONTROLLING INTEREST


On September 28, 2006, a shareholder of the Company entered into an agreement to contribute 50,000 Euros (approximately $63,000) to PBAG for a 15% non-voting interest in PBAG, in accordance with certain provisions of the German Commercial Code. The party will receive 15% of profits, as determined under the agreement, not to exceed in any given year 30% of the capital contributed. Additionally, the party will be allocated 15% of losses, as determined under the agreement, not to exceed the capital contributed. The party is under no obligation to provide additional capital contributions to the Company. Prior to 2008, allocated losses reduced the minority stockholder's capital account to $0, which has been reported as net loss attributable to noncontrolling interest in the accompanying consolidated financial statements.


5. INCOME TAXES


There is no material income tax expense recorded for the years ended December 31, 2010 or 2009 due to the Company's net losses.


Income tax expense for the years ended December 31, 2010 and 2009 differed from the amounts computed by applying the U.S. federal income tax rate of 34 percent to the pretax loss for the following reasons:

2010 2009

Income tax benefit at U.S. federal statutory rates $ (173,000 ) $ (286,000 )
Change in valuation allowance 173,000 286,000
State and local income taxes, net of federal income tax effect 800 800

$ 800 $ 800






F-22
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





5. INCOME TAXES (continued)


The Company has a deferred tax asset and an equal amount of valuation allowance of approximately $1,924,000 and $1,879,000 at December 31, 2010 and 2009, respectively, relating primarily to tax net operating loss carryforwards, as discussed below, and timing differences related to the recognition of accrued licensing fees.


As of December 31, 2010, the Company had tax net operating loss carryforwards ("NOLs") of approximately $1,383,000 and $4,791,000 available to offset future taxable Federal and foreign income, respectively. The Federal NOL expires in varying years through 2025. The foreign net operating loss relates to Germany and does not have an expiration date.


In the event the Company were to experience a greater than 50% change in ownership, as defined in Section 382 of the Internal Revenue Code, the utilization of the Company's Federal tax NOLs could be restricted.

6. COMMITMENTS AND CONTINGENCIES


DR. WIEDOW LICENSE AGREEMENT


On December 30, 2000, the Company entered into a thirty-year license agreement, beginning January 1, 2001 (the "License Agreement"), with Dr. Oliver Wiedow, MD, the owner and inventor of several patents, patent rights and technologies related to Elafin. Pursuant to the License Agreement, the Company agreed to pay Dr. Wiedow an annual license fee of 110,000 Euros for a period of six years. No payments were made through fiscal year 2003. In 2004, the License Agreement was amended to require the Company to make annual payments of 30,000 Euros, to be paid on July 15 of each year, beginning in 2004. Such annual payment could be increased to 110,000 Euros by June 1 of each year based on an assessment of the Company's financial ability to make such payments. In December 2007 the Company paid Dr. Wiedow 30,000 Euros. The License Agreement was again amended by an Amendment Agreement to the License Agreement (the "Amendment") dated December 23, 2008. Pursuant to the Amendment, the Company and Dr. Wiedow have agreed that the Company would pay the outstanding balance of 630,000 Euros to Dr. Wiedow as follows: for fiscal years 2008 to 2012, the Company shall pay Dr. Wiedow 30,000 Euros per year, and for fiscal years 2013 to 2016, the Company shall pay Dr. Wiedow 120,000 Euros per year. The foregoing payments shall be made on or before December 31 of each fiscal year. In December 2008 the Company paid Dr. Wiedow 30,000 Euros. No payments were made under this agreement during 2009 or 2010. While the total amount owed does not currently bear interest, the Amendment provides that any late payment shall be subject to interest at an annual rate equal to the German Base Interest Rate (0.12% as of January 1, 2011) plus six percent. In the event that the Company's financial condition improves, the parties can agree to increase and/or accelerate the payments.

The Amendment also modified the royalty payment such that the Company will not only pay Dr. Wiedow a three percent royalty on gross revenues from the Company's sale of products based on the licensed technology but also three percent of the license fees (including upfront and milestone payments and running royalties) received by the Company or its subsidiary from their sublicensing of the licensed technology.


No royalty expense has been recognized under the License Agreement or the Amendment since the Company has yet to generate any related revenues. At December 31, 2010 and 2009, the Company has accrued approximately $795,000 and $860,000, respectively, of licensing fees payable to Dr. Wiedow, of which approximately $119,000 and $86,000, respectively, is included in current liabilities with the remainder included in long-term liabilities.


Dr. Wiedow, who is a director of the Company, beneficially owned approximately 45% of the Company's outstanding common stock as of December 31, 2010.



F-23
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





6. COMMITMENTS AND CONTINGENCIES (continued)


DR. WIEDOW LICENSE AGREEMENT (continued)


On October 4, 1999, Dr. Wiedow and AstraZeneca PLC (formerly Zeneca Limited) entered into an agreement to assign all patents and technology related to Elafin to Dr. Wiedow in exchange for a royalty of 2% of any future net sales from such patents and technology. The Company, under its December 30, 2000 licensing agreement with Dr. Wiedow discussed above, assumed such royalty obligation.


ARTES BIOTECHNOLOGY LICENSE AGREEMENT


On November 15, 2004, the Company entered into an exclusive worldwide license and collaboration agreement with ARTES Biotechnology GmbH ("ARTES"). This agreement enables the Company to economically produce Elafin on a large scale by using the sublicensed yeast HANSENULA POLYMORPHA as a high performance expression system. Rhein Biotech GmbH ("Rhein") has licensed the yeast to ARTES, who in-turn sublicensed it to the Company. The agreement has a term of fifteen years with an annual license fee equal to the greater of 10,000 Euros or 2.5% royalties on the future sales of Elafin. Should the license agreement between Rhein and ARTES terminate, Rhein will assume the sublicense agreement with the Company under similar terms.


RHEIN MINAPHARM AGREEMENT


In August 2007, the Company's subsidiary entered into an agreement with Rhein Minapharm ("Minapharm") for clinical development, production and marketing of Elafin. The Company has granted Minapharm the right to exclusively market Elafin in Egypt and certain Middle Eastern and African countries. Under this agreement, the Company had deferred certain amounts received until the expiration of a refund period in October 2010. Accordingly, approximately $108,000 is included as other income for 2010 in the accompanying consolidated statements of operations. The Company may receive additional milestone-payments upon Minapharm's attainment of certain clinical milestones as well as royalties on any future net product sales.


LEASES


The Company has entered into several leases for office and laboratory facilities in Germany, expiring at dates through December 2011. The Company also leases office space in Irvine, California on a month-to-month basis. Total rental expense for all facilities for the years ended December 31, 2010 and 2009 approximated $35,000, and $35,000, respectively. Future minimum rental payments under non-cancelable operating leases approximate $34,000 for the year ending December 31, 2011.




F-24
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





6. COMMITMENTS AND CONTINGENCIES (continued)


LEGAL


The Company may from time to time be involved in various claims, lawsuits, disputes with third parties, actions involving allegations of discrimination, or breach of contract actions incidental to the operation of its business. The Company is not currently involved in any such litigation which it believes could have a material adverse effect on its financial condition or results of operations.


7. LOSS PER COMMON SHARE


The following is a reconciliation of the numerators and denominators of the basic and diluted loss per common share computations for the years ended December 31, 2010 and 2009:


2010 2009
Numerator for basic and diluted loss per common share:
Net loss attributable to Proteo, Inc. $ (510,114 ) $ (857,784 )
Preferred stock dividend (32 ) (30 )
Net loss attributable to common stockholders (510,146 ) (857,814 )

Denominator for basic and diluted loss per common share:
Weighted average number of common shares outstanding 23,879,350 23,879,350

Basic and diluted loss per common share $ (0.02) $ (0.04)







F-25

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.182.593 von kaubeuhut am 11.03.11 07:36:06

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549


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

FORM 10-K

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



(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the fiscal year ended December 31, 2010.
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: 000-30728

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



PROTEO, INC.
(Exact Name of Registrant as Specified in Its Charter)

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



Nevada 88-0292249
(State or Other Jurisdiction of
Incorporation or Organization) (I.R.S. Employer
Identification Number)


2102 Business Center Drive
Irvine, California 92612
(Address of principal executive offices) (Zip Code)

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


Registrant’s telephone number, including area code: [phone]

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


Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class Name of Each Exchange on Which Registered
None None


Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $0.001

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


Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨ No þ

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No þ

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 such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o Noo


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ



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



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.

Large accelerated filer o Accelerated filer o

Non-accelerated filer o Smaller reporting companyx


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

The aggregate market value of the registrant’s voting equity held by non-affiliates of the registrant, computed by reference to the closing sales price for the registrant’s common stock on June 30, 2010, as reported on the OTC Bulletin Board, was approximately $5,566,000. (1)


Number of shares of Common Stock outstanding as of March 11, 2011: 23,879,350


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

1) Excludes 12,747,000 shares of common stock held by directors and officers, and any stockholder whose ownership exceeds five percent of the shares outstanding as of June 30, 2010



Documents Incorporated by Reference


None.

Transitional Small Business Disclosure Format (check one): Yes ¨ No þ


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

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



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




PROTEO, INC.
ANNUAL REPORT ON FORM 10-K
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010



TABLE OF CONTENTS


CAUTIONARY STATEMENT 1

PART I 1

Item 1. Business 1
Item 1A. Risk Factors 7
Item 1B. Unresolved Staff Comments 7
Item 2. Properties 8
Item 3. Legal Proceedings 8
Item 4. [Removed and Reserved] 8

PART II 8

Item 5. Market For Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 8
Item 6. Selected Financial Data 10
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 10
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 15
Item 8. Financial Statements and Supplementary Data 15
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 15
Item 9A. Controls and Procedures 15
Item 9B. Other Information 16

PART III 16

Item 10. Directors, Executive Officers and Corporate Governance 16
Item 11. Executive Compensation 18
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 20
Item 13. Certain Relationships and Related Transactions, and Director Independence 20
Item 14. Principal Accountant Fees and Services 21

PART IV 22

Item 15. Exhibits and Financial Statement Schedules 22

SIGNATURES 23



i
--------------------------------------------------------------------------------





CAUTIONARY STATEMENT

This Annual Report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"). Since we are a "penny stock" company (see Item 5 of Part II of this Annual Report), the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995 does not apply to us. We note, however, that such forward-looking statements involve assumptions, known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the "Company" (as that term is defined below) to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements contained in this Form 10-K. Such potential risks and uncertainties include, without limitation, Food and Drug Administration ("FDA") and other regulatory approval of our products, patent protection on our proprietary technology, product liability exposure, uncertainty of market acceptance, competition, technological change, and other risk factors detailed herein and in our other filings with the Securities and Exchange Commission (the "SEC"). Each forward-looking statement should be read in context with, and with an understanding of, the various other disclosures concerning our Company and our business made elsewhere in this annual report as well as other public reports filed with the SEC. The forward-looking statements are made as of the date of this Form 10-K, and we assume no obligation to update the forward-looking statements or to update the reasons actual results could differ from those projected in such forward-looking statements.

Such statements are based on management's beliefs and assumptions, and on information currently available to management. Forward-looking statements include the information concerning possible or assumed future results of operations of the Company set forth under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking statements also include statements in which words such as "may," "should, " "expect," "anticipate," "intend," "plan," "believe," "estimate," "consider," “hopes,” “project”, “will,” their opposites and similar expressions are used.

Forward-looking statements are not guarantees of future performance. They should not be regarded as a representation by us or any other person that the objectives or plans will be achieved. The Company's future results and shareholder values may differ materially from those expressed in these forward-looking statements. Readers are cautioned not to put undue reliance on any forward-looking statements.

PART I

ITEM 1 - BUSINESS

COMPANY OVERVIEW- HISTORY

Proteo, Inc. is a Nevada corporation formed on December 18, 1992. Proteo, Inc. has one wholly owned subsidiary, Proteo Biotech AG ("PBAG"), a German corporation (Proteo, Inc. and PBAG are hereinafter collectively referred to as "we", "our", the "Company" and "Proteo"). The Company's common stock is currently quoted on the Over-The-Counter Bulletin Board ("OTCBB") under the symbol "PTEO.OB". Effective December 31, 2004, the Company's other wholly owned subsidiary, Proteo Marketing, Inc. ("PMI") was merged into the Company.

PMI was incorporated in the State of Nevada and began operations on November 22, 2000. In December 2000, PMI entered into a reorganization and stock exchange agreement with PBAG, and as a result, PBAG became a wholly owned subsidiary of PMI.

During 2001, PMI entered into a Shell Acquisition Agreement (the "Acquisition Agreement") with Trivantage Group, Inc. ("Trivantage"), a public "shell" company, in a transaction accounted for as a reverse merger. In accordance with the Acquisition Agreement, PMI first acquired 176,660,280 shares (1,313,922 post-reverse split shares, as described below) of Trivantage's common stock representing 90% of the issued and outstanding common stock of Trivantage, in exchange for a cash payment of $500,000 to the sole shareholder of Trivantage. Secondly, Trivantage completed a one for one-hundred-fifty reverse stock split. Finally, effective April 25, 2002, the shareholders of PMI exchanged their shares of PMI for an aggregate of 20,286,512 shares of Trivantage to effect a reverse merger between PMI and Trivantage. Subsequently, Trivantage changed its name to Proteo, Inc.



1
--------------------------------------------------------------------------------



DESCRIPTION OF BUSINESS

The Company intends to develop, promote and market pharmaceuticals and other biotech products. The Company's focus is on natural occurring compounds which have proven superior biologic activity over almost all known compounds. The focus on natural occurring compounds is driven by the assumption that these compounds will have fewer side effects regarding metabolism and excretion. Whenever possible, human peptides and proteins, which have no allergenic potential, will be used.


Proteo is engaged in the development of pharmaceuticals based on the body's own tools and weapons to fight inflammatory diseases. Specifically, we are focusing our research on the development of drugs based on the human protein Elafin. We strongly believe that Elafin will be useful in the treatment of post-surgery damage to tissue, complications resulting from organ transplantation, pulmonary hypertension, serious injuries caused by accidents, cardiac infarction, as well as other diseases.

Proteo’s pharmaceutical Elafin is a copy of a naturally occurring human anti-inflammatory substance. It is a natural antagonist of the tissue destroying enzymes (proteases such as elastase and proteinase 3) that participate in the inflammatory mechanism of many diseases. Elafin’s ability to block the proteases that cause these undesirable effects makes it a promising drug for the treatment of various inflammatory diseases and posttraumatic inflammatory complication. Numerous preclinical studies on animal models of human disease demonstrate the beneficial anti-inflammatory effects of Elafin. The drug candidate is currently being investigated in clinical trials phase II for three diseases.

The company believes that it is favorable to target orphan drug indications first. Orphan drugs are pharmaceuticals for the treatment of rare diseases, which do not affect more than 200,000 people in the United States ("US") and about 230,000 people in the European Union according to the respective legislations. The advantage of developing orphan drugs is seen in the fact that companies can apply for an orphan drug designation in the US or European Union which not only associated with reduced fees to regulatory agencies and facilitated drug approval but also guarantees 7-year or 10-year marketing exclusivity in the US and European Union, respectively, on drug sales for the first company to obtain marketing approval of a particular drug in the respective regions.


Proteo has obtained Orphan drug designations within the European Union for the use of Elafin in treatment of pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension as well as for the treatment of esophagus carcinoma. In the latter indication especially the postoperative inflammation will be targeted by Elafin treatment.


The excellent tolerability of recombinant Elafin for injection in human subjects was demonstrated in a Phase I clinical trial. In a Phase II clinical trial the effect of Elafin on the postoperative inflammatory reaction occurring in cancer patients whose esophagus has been removed was investigated at three German University Hospitals. This serious operation (esophagectomy), which lasts for several hours, carries the risk of numerous specific complications that generally result in a prolonged period of intensive care. The trial showed a clear clinical benefit for the postoperative recovery of the patients in the Elafin treated group.


Elafin may also be used in the course of transplantation. To transplant organs successfully, simultaneous treatment with anti-inflammatory drugs is necessary. Inflammations of transplanted organs are mainly caused either by rejection of the organ by the immune system or by blood supply deficiencies during the transplantation. Although various drugs are used today to avoid the rejection of the organ, such rejections still occur quite often. Therefore, additional anti-inflammatory drugs are needed, which may potentially prevent damage caused by blood supply deficiencies. Tests carried out on rabbits at the University of Toronto have demonstrated the effectiveness of an infusion with Elafin after a heart transplant. In cases where Elafin was not administered, a substantial thickening of the coronary vessel walls occurred due to temporary circulation reduction. Thus, frequently the heart was not sufficiently supplied with blood. Inflammation and destruction of the heart musculature, which was partly replaced by functionless scar tissue, was the result. Treatment with Elafin has been shown to reduce such damage to a minimal level.


Proteo’s licensing and development partner, Minapharm Pharmaceuticals SAE, has initiated a Phase II clinical trial for the use of Elafin on kidney transplant patients. This trial is concerned with the prevention of acute organ rejection and chronic graft injury (allograft nephropathy), which is a devastating complication of kidney transplantation that is responsible for a significant portion of graft loss. This trial is to be conducted at Cairo University.


We believe a further indication for Elafin is the use as a drug in the treatment of cardiac infarction. Cardiac infarction appears as a result of deficiencies in the blood supply of heart muscles caused by damage to the supplying coronary vessels. As an immediate result, the heart weakens and the heart muscles are destroyed. Damage to tissue caused by cardiac infarction will slowly form scars. Current methods of treatment are aimed at restoring the blood supply to the heart, either by replacement with new blood vessels (bypass surgery), by stent implantation or by removal of blood-clots in the coronary vessels (lyse therapy). Animal experiments have shown that Elafin may be effective in protecting the heart muscles against destruction after blood supply was interrupted. Our cooperation partner, the University of Edinburgh, is initiating a clinical trial to test Elafin in bypass operations after heart attacks. This study is being financially supported by the Medical Research Council (MRC) and the Chest, Heart and Stroke Scotland (CHSS).



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Elafin may also be useful in the treatment of the seriously injured. Similar to damage of heart muscles as described above, much of the damage caused by serious injuries appears after the injury causing event (e.g. traffic accidents). In emergency treatment following accidents, the blood supply, nerve fibers and the stability of bones and joints are given priority. Due to blood supply deficiencies, inflammation will occur in injured muscles and in injured vessels. Because muscles may be destroyed by the inflammation, limbs may have to be amputated despite successful surgeries. Elafin may protect muscles against damage caused by inflammation. In animal experiments, rat legs treated with Elafin remained almost unaffected, although the blood supply to the leg was cut off for six hours.


Other preliminary data indicate that Elafin may be useful in a broad range of other applications whether pharmaceutical or not. Therefore, we will attempt to encourage other scientists, research centers as well as other companies to do research and development on Elafin for applications other than those described above. For example, Elafin may also be effective in the treatment of lung diseases and defects, dermatological diseases and defects, or as an ingredient to coat medical devices, such as stents, or in cosmetics.


The products and technologies we intend to develop will require significant commitments of personnel and financial resources. However, we do not believe that any of our planned products will produce sufficient revenues in the next several years to support us financially. To achieve profitable operations, the Company, independently or in collaboration with others, must successfully identify, develop, manufacture, obtain regulatory approval for and market proprietary products.


After developing a production procedure for Elafin, Proteo has initiated clinical trials to achieve governmental approval for the use of Elafin as a drug in Europe. For this purpose, Proteo has contracted an experienced Contract Manufacturing Organization (CMO) located in Europe to produce Elafin in accordance with GMP (good manufacturing practices) standards as required for clinical trials.


In December 2005, Proteo successfully completed a first Phase I trial for Elafin. Elafin was tested on healthy male volunteers in a single-ascending-dose, double blind, randomized, placebo-controlled trial to evaluate its tolerability and safety at the Institut fur Klinische Pharmakologie in Kiel, Germany. All intravenously applied doses were well tolerated. No severe adverse events occurred. In 2006, we gathered and evaluated additional data from the results of the Phase I study.


In September 2006 we filed an application with the EMEA (European Medicines Agency) to obtain orphan drug status in the European markets for Elafin to be used in the treatment of pulmonary hypertension. Subsequent to December 31, 2006, the Committee for Orphan Medical Products of the EMEA issued a positive opinion recommending the granting of orphan medicinal product designation for Elafin for treatment of pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension. On March 20, 2007 the orphan drug designation became effective upon adoption of the recommendation by the European Commission. Orphan Drug Designation of the European Commission assures exclusive marketing rights for the treatment of this disease within the European Union for a period of up to ten years after receiving market approval.


In August 2007, we entered into a license agreement with Minapharm Pharmaceuticals SAE ("Minapharm"), a well established Egyptian pharmaceutical company based in Cairo, for clinical development, production and marketing of Elafin. We have granted Minapharm the right to exclusively market Elafin in Egypt and certain Middle Eastern and African countries. Minapharm initiates a Phase II clinical trial to study the efficacy of Elafin on kidney transplant patients. The study will be conducted as a Phase II trial for prevention of acute and chronic allograft nephropathy at the University of Cairo.


In January 2008, the Company entered into an agreement with Stanford University in California, to cooperate in preclinical studies related to Elafin treatment of pulmonary arterial hypertension. Proteo provides support for animal experiments that are currently conducted by Marlene Rabinovitch, Research Director of the Vera Moulton Wall Center for Pulmonary Vascular Disease at Stanford University who is a renowned expert in the field, and her group at the university. In May 2010 scientists of Stanford University presented new preclinical data on Proteo's drug substance Elafin at the Annual International Conference of the American Thoracic Society in New Orleans. The data show that the treatment with Elafin during mechanical ventilation largely prevented the inflammation in lungs of newborn mice. In August 2010 the agreement with Stanford University was extended by a further project.




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In April 2008, we initiated a placebo-controlled randomized trial to evaluate the effect of Elafin on cytokine profiles after major surgery (clinical phase II), which was approved in May 2008 by the responsible Ethics Committee and in August 2008 by the German Federal Institute for Drugs and Medical Devices. In November 2008 the Phase II clinical trial on patients undergoing esophagectomy for esophagus carcinoma was started in the Department for General and Thoracic Surgery at the University Hospital of Kiel University, Germany. The trial conduct was initially planned for one year. In summer 2009 it became apparent that the clinical trial center could not recruit sufficient numbers of patients to meet the planning. Thus, the Company has extended the monocentric trial to a multicentric trial. In December 2009 all regulatory approvals were obtained to expand the trial. Two additional trial centers started recruiting patients and the recruitment and treatment was completed in April 2010. The trial showed that intravenously administered Elafin has a very clear positive effect on the period of recovery: 63 percent of the Elafin treated patients required only one day of intensive care. All patients in the placebo group needed several days of postoperative intensive medical care. At years end 2010 the European Medicines Agency EMA gave scientific advice and protocol assistance to the Company for further clinical development in this indication. Protocol assistance is the special form of scientific advice available for companies developing medicines for 'orphan' or rare diseases.


In September 2009, the Company signed a Memorandum of Understanding with the University of Edinburgh. Within the framework of collaboration, it is intended to investigate the effect of Elafin on the damage and inflammation of cardiac muscle after coronary bypass operations in a Phase II clinical trial at the University of Edinburgh. The study will be funded by the Medical Research Council (MRC) and Chest Heart and Stroke Scotland (CHSS) with 500,000 GBP. In February 2011 this clinical trial with 80 patients has received approval by the responsible Ethics Committee of NHS Scotland.

In January 2010, following the recommendation of the European Medicines Agency (EMA) as of November 2009, the European Commission has granted Orphan Drug Designation for the protease inhibitor Elafin to be used in the treatment of esophagus carcinoma.


Our strategy and goal is to develop into a profitable company by developing drug candidates for orphan diseases with high medical needs. The company intends to generate revenue by out-licensing and marketing activities. To date, the Company has not had profitable operations. Furthermore, we do not anticipate that we will have profitable operations in the near future.

OUR SUBSIDIARY

PBAG, our operating subsidiary, was formed in Kiel, Germany on April 6, 2000. PBAG is in the business of developing pharmaceutical products based on the human protein called Elafin and possible by-products thereof as well as related technologies. The President, Chief Executive Officer and Chief Financial Officer of PBAG is currently Birge Bargmann. The members of the Supervisory Board of PBAG are Oliver Wiedow, MD, Barbara Kahlke, PhD and Florian Wegner. PBAG has four employees as of December 31, 2010.



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COLLABORATION WITH OTHER COMPANIES


The Company actively seeks further out-licensing partners, co-development partnerships and other collaborations with third parties to generate revenues and/or to expedite the Company's product development. However, there can be no assurance that the Company's efforts to build such alliances will be successful at any time or in any way.


COMPETITION

The market for our planned products and technologies is highly competitive, and we expect competition to increase. We compete with many other companies involved in the development of pharmaceuticals, most of which are larger than Proteo. Some of our anticipated competitors offer a broad range of equipment, supplies, products and technology, including many of the products and technologies contemplated to be offered by us. To the extent that customers exhibit loyalty to the supplier that first supplies them with a particular product or technology, our competitors may have an advantage over us with respect to such products and technologies. Additionally, many of our competitors have, and will continue to have, greater research and development, marketing, financial and other resources than us and, therefore, represent and will continue to represent significant competition in our anticipated markets. As a result of their size and the breadth of their product offering, certain of these companies have been and will be able to establish managed accounts by which, through a combination of direct computer links and volume discounts, they seek to gain a disproportionate share of orders for health care products and technologies from prospective customers. Such managed accounts present significant competitive barriers for us. It is anticipated that we will benefit from their participation in selected markets, which, as they expand, may attract the attention of our competitors. The business of research and development of pharmaceuticals is intensely competitive. Major companies with immense financial and personal resources are also engaged in this field.

Elastase inhibitors such as Elafin, have been under research and development in the pharmaceutical industry for decades. Currently, hundreds of related patents have been granted. Most of these substances are produced synthetically, and are not applicable in the treatment of human diseases. Currently two elastase inhibitors are used as pharmaceuticals, alpha-1-antitrypsin worldwide and Sivelestat in Japan and Korea. Further elastase inhibitors are in clinical development, such as Depelestat and AZD9668.

Alpha-1-antitrypsin

Human blood naturally contains relatively large amounts of alpha-1-antitrypsin. Alpha-1-antitrypsin is marketed for more than 20 years currently by Talecris, Behring and Baxter as a plasma-derived product to supply patients with genetic deficiency of functional alpha-1-antitrypsin.


Sivelestat

Ono Pharmaceutical Co. Ltd., in Japan has developed the synthetic elastase inhibitor Sivelestat. Ono received approval in 2002 to use Sivelestat as a drug for the indication "Amelioration of acute lung disease accompanying generalized inflammatory syndrome" in Japan and in Korea (Dong-A, Pharmaceutical Co., Ltd., Seoul) in 2006.

Depelestat

A further elastase inhibitor has been engineered from the Kunitz domain of human inter-alpha-trypsin inhibitor. This peptide was found to be a potent inhibitor of human elastase, however, other than in the case of Elafin, it is reported that no other proteases, including proteinase 3, were inhibited. Currently Depelestat is being clinically developed by Debiopharm for use in the treatment of cystic fibrosis and acute respiratory distress syndrome.

AZD9668

Astra-Zeneca is currently investigating the efficacy of AZD9668, an orally applicable elastase inhibitor, in various clinical phase II trials on chronic obstructive pulmonary disease, cystic fibrosis and bronchiectasis. No results have been reported.



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GOVERNMENT REGULATION

The Company is, and will continue to be, subject to governmental regulation under the Occupational Safety and Health Act, the Environmental Protection Act, the Toxic Substances Control Act, and other similar laws of general application, as to all of which we believe we are in material compliance. Any future change in, and the cost of compliance with, these laws and regulations could have a material adverse effect on the business, financial condition, and results of operations of the Company.


Because of the nature of our operations, the use of hazardous substances, and our ongoing research and development and manufacturing activities, we are subject to stringent federal, state and local and foreign laws, rules, regulations and policies governing the use, generation, manufacturing, storage, air emission, effluent discharge, handling and disposal of certain materials and wastes. Although we believe that we are in material compliance with all applicable governmental and environmental laws, rules, regulations and policies, there can be no assurance that the business, financial conditions, and results of operations of the Company will not be materially adversely affected by current or future environmental laws, rules, regulations and policies, or by liability occurring because of any past or future releases or discharges of materials that could be hazardous.

Additionally, the clinical testing, manufacture, promotion and sale of a significant majority of the products and technologies of the Company, if those products and technologies are to be offered and sold in the United States, are subject to extensive regulation by numerous governmental authorities in the United States, principally the FDA and corresponding state regulatory agencies. Additionally, to the extent those products and technologies are to be offered and sold in markets other than the United States, the clinical testing, manufacture, promotion and sale of those products and technologies will be subject to similar regulation by corresponding foreign regulatory agencies. In general, the regulatory framework for biological health care products is more rigorous than for non-biological health care products. Generally, biological health care products must be shown to be safe, pure, potent and effective. There are numerous state and federal statutes and regulations that govern or influence the testing, manufacture, safety, effectiveness, labeling, storage, record keeping, approval, advertising, distribution and promotion of biological health care products. Non-compliance with applicable governmental requirements can result in, among other things, fines, injunctions, seizures of products, total or partial suspension of product marketing, failure of the government to grant pre-market approval, withdrawal of marketing approvals, product recall and criminal prosecution.

PATENTS, LICENSES & ROYALTIES

The Company owns licenses to exclusively develop products based on patents and filings. The Company does not have title to any patents related to Elafin; title to these patents rests with Dr. Wiedow. The Company’s rights with respect to patents are derived pursuant to a license agreement between the Company and Dr. Wiedow (the “ License Agreement ”) dated December 30, 2000, which was amended by an Amendment Agreement to the License Agreement (the "Amendment" ) dated December 23, 2008.

Pursuant to the License Agreement, the Company agreed to pay Dr. Wiedow an annual license fee of 110,000 Euros for a period of six years. No payments were made through fiscal year 2003 through 2006. In December 2007 the Company paid Dr. Wiedow 30,000 Euros.


Pursuant to the Amendment, the Company and Dr. Wiedow have agreed that the Company would pay the outstanding balance of 630,000 Euros to Dr. Wiedow as follows: for fiscal years 2008 to 2012, the Company shall pay Dr. Wiedow 30,000 Euros per year, and for fiscal years 2013 to 2016, the Company shall pay Dr. Wiedow 120,000 Euros per year. The foregoing payments shall be made on or before December 31 of each fiscal year. In December 2008 the Company paid Dr. Wiedow 30,000 Euros. No other payments have been made to Dr. Wiedow as of December 31, 2010, which is a technical breach of the agreement. Dr. Wiedow waived such breach and deferred the prior year payments to 2011. While the total amount owed does not currently bear interest, the Amendment provides that any late payment shall be subject to interest at an annual rate equal to the German Base Interest Rate (0.12% as of January 1, 2011) plus six percent. In the event that the Company's financial condition improves, the parties can agree to increase and/or accelerate the payments.



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The Amendment also modified the royalty payment such that the Company will not only pay a three percent (3%) royalty on gross revenues from the Company's sale of products based on the licensed technology but also three percent of the license fees (including upfront and milestone payments and running royalties) received by the Company or its subsidiary from their sublicensing of the licensed technology.

AstraZeneca Inc. (formerly Zeneca Inc., formerly ICI Pharmaceuticals Inc.) had held the patents for Elafin for several years and has significantly contributed to the current knowledge. Therefore, AstraZeneca Inc. will receive two percent of the net sales of the Company from products based on patents in which Dr. Wiedow was the principal inventor. Proteo holds an exclusive license for the following patents:

Country Patent Number Expiry Date

USA US 5464822 07-Nov-2012
USA US 6245739 12-Jun-2018
USA US 6893843 08-Jun-2010
European Union EP 0402068 04-Jun-2010
Japan JP 2989853 08-Jun-2010
Australia AU 636148 05-Jun-2010
Canada CA 2018592 08-Jun-2010
Finland FI 902880 08-Jun-2010
Ireland IE 070520 05-Jun-2010
Israel IL 094602 03-Jun-2010
New Zealand NZ 233974 07-Jun-2010
Norway NO 177716 01-Jun-2010
Portugal PT 094326 11-Oct-2011
South Africa ZA 9004461 08-Jun-2010



On November 15, 2004, the Company entered into an exclusive worldwide license and collaboration agreement with ARTES Biotechnology GmbH ("ARTES"). This agreement enables the Company to economically produce Elafin on a large scale by using the sublicensed yeast HANSENULA POLYMORPHA as a high performance expression system. Rhein Biotech GmbH ("Rhein") has licensed the yeast to ARTES, who in-turn sublicensed it to the Company. The agreement has a term of fifteen years with an annual license fee equal to the greater of 10,000 Euros or 2.5% royalties on the future sales of Elafin. Should the license agreement between Rhein and ARTES terminate, Rhein will assume the sublicense agreement with the Company under similar terms.


In August 2007, the Company's subsidiary entered into an agreement with Rhein Minapharm ("Minapharm") for clinical development, production and marketing of Elafin. The Company has granted Minapharm the right to exclusively market Elafin in Egypt and certain Middle Eastern and African countries. Under this agreement, the Company had deferred certain amounts received until the expiration of a refund period in October 2010. Accordingly, approximately $108,000 is included as other income for 2010 in the accompanying consolidated statements of operations. The Company may receive additional milestone-payments upon Minapharm's attainment of certain clinical milestones as well as royalties on any future net product sales.


EMPLOYEES

As of December 31, 2010, Proteo had four employees, all working at our offices in Germany.

ITEM 1A. – RISK FACTORS

A smaller reporting company (“SRC”) is not required to provide any information in response to Item 503(c) of Regulation S-K.

ITEM 1B. – UNRESOLVED STAFF COMMENTS

None



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ITEM 2 - PROPERTIES

The Company has entered into several leases for office and laboratory facilities in Germany expiring at dates through December 2011. The aggregate monthly rental under the foregoing leases was approximately $3,800.

ITEM 3 - LEGAL PROCEEDINGS

The Company may from time to time be involved in various claims, lawsuits, and disputes with third parties, actions involving allegations of discrimination, or breach of contract actions incidental to the operation of its business. The Company is not currently involved in any litigation which it believes could have a materially adverse effect on its financial condition or results of operations.


ITEM 4 – [REMOVED AND RESERVED]

PART II

ITEM 5 - MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our common stock is quoted on the OTC Bulletin Board under the symbol PTEO.OB. The table below gives the range of high and low bid prices of our common stock for each quarter during the fiscal years ended December 31, 2010 and 2009 based on information provided by the OTC Bulletin Board. Such over-the-counter market quotations reflect inter-dealer prices, without mark-up, mark-down or commissions and may not necessarily represent actual transactions or a liquid trading market.



YEAR PERIOD HIGH LOW
2010 First Quarter $1.25 $0.35
Second Quarter 0.96 0.38
Third Quarter 0.65 0.20
Fourth Quarter 0.63 0.20

2009 First Quarter $1.49 $1.00
Second Quarter 1.49 0.94
Third Quarter 1.38 0.64
Fourth Quarter 1.25 0.51





On March 4, 2011, the last sales price of our common stock was $0.21 per share. No cash dividends have been paid on our common stock for the 2010 and 2009 fiscal years and no change of this policy is under consideration by the Board of Directors. The payment of cash dividends in the future will be determined by the Board of Directors in light of conditions then existing, including our Company's earnings (if any), financial requirements, and opportunities for reinvesting earnings (if any), business conditions, and other factors. Except as described in the "Preferred Stock" section of Note 3 to the Company's consolidated financial statements included elsewhere herein, there are otherwise no restrictions on the payment of dividends.


NUMBER OF SHAREHOLDERS

As of March 11, 2010, the number of shareholders of record of the Company's common stock was 1,777.



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PENNY STOCK

Until we satisfy the initial listing requirements for the Nasdaq Stock Market and successfully apply to have our shares of common stock traded thereon, our common stock will continue to be quoted on the OTCBB. As a result, an investor may find it more difficult to dispose of, or to obtain accurate quotations as to the price of, our common stock. Our common stock is subject to provisions of Section 15(g) and Rule 15g-9 of the Exchange Act, commonly referred to as the "penny stock rule." Section 15(g) sets forth certain requirements for transactions in penny stocks, and Rule 15g-9(d) incorporates the definition of "penny stock" that is found in Rule 3a51-1 of the Exchange Act. The SEC generally defines "penny stock" to be any equity security that has a market price less than $5.00 per share, subject to certain exceptions. Since our common stock is deemed to be a penny stock, trading in our shares is subject to additional sales practice requirements on broker-dealers who sell penny stocks to persons other than established customers and accredited investors. "Accredited investors" include (i) certain entities as defined in Rule 501(a) of Regulation D, (ii) directors and executive officers of the issuer of the securities being offered or sold and (iii) persons with a net worth exceeding $1,000,000 or annual income exceeding $200,000 (or $300,000 together with their spouse) in each of the two most recent years and reasonably expect to reach the same income level in the current year. For transactions covered by these rules, broker-dealers must make a special suitability determination for the purchase of such security and must have the purchaser's written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the first transaction, of a risk disclosure document, prepared by the SEC, relating to the penny stock market. A broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative, and current quotations for the securities. Finally, monthly statements must be sent disclosing recent price information for the penny stocks held in an account and information on the limited market in penny stocks. Consequently, these rules may restrict the ability of a broker-dealer to trade and/or maintain a market in our common stock and may affect the ability of our shareholders to sell their shares.

DIVIDEND POLICY

To date, we have declared no cash dividends on our common or preferred stock, and do not expect to pay cash dividends on our common and preferred stock in the near term. We intend to retain future earnings, if any, to provide funds for operation of our business.

EQUITY COMPENSATION PLAN INFORMATION

We have no equity compensation plans as of December 31, 2010.

RECENT SALES OF UNREGISTERED SECURITIES


We had no sales of unregistered securities since those disclosed on our December 31, 2009 Form 10-K.



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ITEM 6. SELECTED FINANCIAL DATA.


An SRC is not required to provide any information in response to Item 301 of Regulation S-K.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAUTIONARY STATEMENT


This Annual Report on Form 10-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties. Accordingly, to the extent that this Annual Report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of the Company, please be advised that the Company's actual financial condition, operating results and business performance may differ materially from that projected or estimated by management in forward-looking statements. The differences may be caused by a variety of factors, including but not limited to adverse economic conditions, intense competition, including intensification of price competition and entry of new competitors and products, adverse federal, state and local government regulation, inadequate capital, unexpected costs and operating deficits, increases in general and administrative expenses, and other specific risks that may be alluded to in this Annual Report or in other reports filed with the SEC by the Company. In addition, the business and operations of the Company are subject to substantial risks that increase the uncertainty inherent in the forward-looking statements. The inclusion of forward-looking statements in this Annual Report should not be regarded as a representation by management or any other person that the objectives or plans of the Company will be achieved.

See page one for additional information regarding forward-looking statements.

The Company currently generates minor non-operating revenue from its out-licensing activities and does not expect to report any significant operating revenue until the successful development and marketing of its planned pharmaceutical and other biotech products. Additionally, after the launch of the Company's products, there can be no assurance that the Company will generate positive cash flow and there can be no assurance as to the level of operating revenues, if any, the Company may actually achieve from its planned principal operations.

OVERVIEW

The Company is a clinical stage drug development company focusing on the development of anti-inflammatory treatments for rare diseases with significant unmet needs. The Company's management deems its lead drug candidate Elafin for intravenous use to be one of the most prospective treatments of postoperative inflammatory complications in the surgical therapy of esophagus carcinoma, kidney transplantation and coronary arterial bypass surgery. Elafin appears to be also a promising compound for the treatment of pulmonary arterial hypertension. The clinical development is currently focused in Europe with the intention to receive the primary approval in Europe.


The Company's success will depend on its ability to prove that Elafin is well tolerated by humans and its efficacy in the indicated diseases in order to demonstrate a favorable risk/benefit balance. There can be no assurance that the Company will be able to develop feasible production procedures in accordance with Good Manufacturing Practices ("GMP") standards, or that Elafin will receive any governmental approval for its use in further clinical trials or its use as a drug in any of the intended applications.


Proteo has obtained Orphan drug designations within the European Union for the use of Elafin in treatment for the treatment of pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension as well as for the treatment of esophagus carcinoma. Orphan drug designation assures exclusive marketing rights for the treatment of the respective disease within the EU for a period of up to ten years after receiving market approval. In addition, a simplified, accelerated and less expensive approval procedure with the assistance of European Medicines Agency (“EMA”), the European FDA equivalent, can be drawn upon.


Proteo currently focuses on the development of Elafin for treatment of postoperative inflammatory complications in the surgical therapy of esophagus carcinoma. Clinical trials for further indications and preclinical research into new fields of application are conducted in cooperation with Universities and our licensing partner Minapharm.




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CLINICAL DEVELOPMENT


After developing a production procedure for Elafin, The Company has initiated clinical trials to achieve governmental approval for the use of Elafin as a drug in Europe. For this purpose, the Company has contracted an experienced Contract Manufacturing Organization in Europe to produce Elafin in accordance with GMP standards as required for clinical trials. The excellent tolerability of Elafin in human subjects was demonstrated in a Phase I clinical single dose escalating study.


Treatment of Esophagus Carcinoma


A double-blind, randomized, placebo-controlled Phase II clinical trial on the effect of Elafin on the postoperative inflammatory reactions and postoperative clinical course was conducted in patients undergoing esophagectomy for esophagus carcinoma was begun in November 2008. In summer 2009 it became apparent that the clinical trial center could not recruit sufficient numbers of patients to meet the planning. Thus, the Company has extended the monocentric trial to a multicentric trial involving two additional trial centers. We announced the favorable influence of Elafin treatment on the postoperative recovery in February 2011. In January 2010 Orphan Drug Designation was awarded to the Company by the European Commission for the use of Elafin in the treatment of esophagus carcinoma. The future clinical development and prerequisites for marketing authorization are currently subject to discussions with the EMA.


Treatment of Coronary Bypass Patients


In September 2009 the Company signed a Memorandum of Understanding with the University of Edinburgh. Within the framework of collaboration, it is intended to conduct a Phase II clinical trial to investigate the effect of Elafin on the damage and inflammation of cardiac muscle after coronary bypass operations. The trial, which will be headed by Dr. Peter Henriksen a leading expert in interventional cardiology at the Edinburgh Heart Centre. The study will be funded by the Medical Research Council (MRC) and Chest Heart and Stroke Scotland (CHSS) with 500,000 GBP. In February 2011 this clinical trial with 80 patients has received approval by the responsible Ethics Committee of NHS Scotland.


Treatment of Kidney Transplantation


The Company’s licensing and development partner, Minapharm Pharmaceuticals SAE, has initiated a Phase II clinical trial on the use of Elafin in kidney transplantation patients. This trial is concerned with the prevention of acute organ rejection and chronic graft injury (allograft nephropathy) and will be conducted at the University of Cairo. The start and conduct of the trial may be influenced by the actual political situation in Egypt. Actually, the consequences cannot be overseen by management.


PRECLINICAL RESEARCH


Pulmonary arterial Hypertension


Since 2008, the Company cooperates with scientists at Stanford University in California with respect to the preclinical development in the field of pulmonary arterial hypertension and ventilation induced injury. The group presented new preclinical data on the Company’s drug substance Elafin at the Annual International Conference of the American Thoracic Society in New Orleans in May 2010. The data show that the treatment with Elafin during mechanical ventilation largely prevented the inflammation in lungs of newborn mice. In August 2010 the cooperation agreement with Stanford University was extended by a further project.


Vascular damage


The Company entered into an agreement with the Molecular Imaging North Competence Center (MOIN CC) at the Christian-Albrechts-University of Kiel in April 2010. Under this agreement the effects of Elafin on vascular changes will be examined in animal models. The federal state of Schleswig-Holstein is backing the creation and infrastructure of MOIN CC with 8.2 million EUR using funding from the federal state and the European Regional Development Fund (ERDF), as well as resources from the second German economic stimulus package.


Life-threating Infections


In June 2010 the Company has signed a cooperative research and development agreement with the US Army Medical Research Institute of Infectious Diseases (USAMRIID). This agreement allows USAMRIID to use Proteo's Elafin and related scientific data in order to plan and conduct preclinical research on the development of new therapeutic strategies to combat life-threatening infectious diseases, in an investigation into the use of Elafin as a co-therapy with antibiotics.



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RESULTS OF OPERATIONS

OPERATING EXPENSES

The Company's operating expenses for the year ended December 31, 2010 were approximately $749,000, a decrease of approximately $152,000 over the year ended December 31, 2009. This decrease is due to decreases in general and administrative and research and development expenses during the year ended December 31, 2010 of approximately $22,000 and $130,000, respectively. Research and development expenses decreased primarily due to a reduction in research personnel during 2010.


INTEREST AND OTHER INCOME

Interest and other income for the year ended December 31, 2010 approximated $239,000, an increase of $195,000 from the year ended December 31, 2009. The increase was primarily driven by foreign currency transaction gains in 2010 and recognizing previously deferred licensing fees. Certain obligations of the Company are denominated in Euros. A strengthening U.S. Dollar compared to the Euro during 2010 has resulted in a foreign currency transaction gain of approximately $106,000 in 2010. Additionally, in 2010 the Company recognized approximately $108,000 of licensing fees related to the Minapharm licensing agreement, which had been received in 2009. Recognition of such amount was previously deferred until certain refund contingencies expired in October 2010.

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS

We experienced a loss of approximately $147,000 in foreign currency translation adjustments during the year ended December 31, 2010. For the year ended December 31, 2009, the Company recognized a gain of approximately $37,000. This represents a net decrease of approximately $184,000. The decrease is primarily due to a strengthening U.S. Dollar (our reporting currency) compared to the Euro (the functional currency of PBAG) during 2010.


INCOME TAXES


The Company has a deferred tax asset of approximately $1,924,000 and $1,879,000 at December 31, 2010 and 2009, respectively, relating primarily to tax net operating loss carryforwards, as discussed below, and timing differences related to the recognition of accrued licensing fees. Full valuation allowances have been established against these deferred tax assets due to going concern issues.


As of December 31, 2010, the Company had tax net operating loss carryforwards ("NOLs") of approximately $1,383,000 and $4,791,000 available to offset future taxable Federal and foreign income, respectively. The Federal NOL expires in varying years through 2025. The foreign net operating loss relates to Germany and does not have an expiration date. In the event the Company were to experience a greater than 50% change in ownership, as defined in Section 382 of the Internal Revenue Code, the utilization of the Company's Federal tax NOLs could be restricted.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception we have raised a total of (i) approximately $4,983,000 from the sale of 20,065,428 shares of our common stock, of which 6,585,487 shares, 300,000 shares and 1,500,000 shares have been sold at $0.40 per share, $0.84 per share and $0.60 per share, respectively, under stock subscription agreements in the amount of approximately $2,035,000, $252,000 and $900,000, respectively, and (ii) $2,616,000 from the sale of 600,000 shares of the Company's non-voting Series A Preferred Stock. The balance of the purchase price for the Series A Preferred Stock is evidenced by a promissory note which, as of December 31, 2010, had a principal balance of $984,400. See Note 3 to the consolidated financial statements included elsewhere herein for the payment terms under the promissory note.

The Company has cash and cash equivalents approximating $698,000 as of December 31, 2010. This is an increase over the December 31, 2009 balance of approximately $689,000, mainly due to receipts on the promissory note receivable resulting from the sale of the Company's Series A Preferred Stock in excess of operating and research and development expenditures.

Management believes that the Company will not generate any significant operating revenues for the next several years, nor will it have sufficient cash to fund operations. As a result, the Company's success will largely depend on its ability to generate revenues from out-licensing activities, secure additional funding through the sale of its Common/Preferred Stock and/or the sale of debt securities. There can be no assurance, however, that the Company will be able to generate revenues from out-licensing activities and/or to consummate debt or equity financing in a timely manner, or on a basis favorable to the Company, if at all.

CAPITAL EXPENDITURES

None significant.



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GOING CONCERN

The Company's independent registered public accounting firm has stated in their Auditors' Report included in this Form 10-K that the Company will require a significant amount of additional capital to advance the Company's products to the point where they may become commercially viable and has incurred significant losses since inception. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern.

Therefore, the Company will be required to seek additional funds to finance its long-term operations. The successful outcome of future activities cannot be determined at this time and there is no assurance that if achieved, the Company will have sufficient funds to execute its intended business plan or generate positive operating results.

INFLATION

Management believes that inflation has not had a material effect on the Company's results of operations during 2010 and 2009.

OFF BALANCE SHEET ARRANGEMENTS

The Company does not currently have any off balance sheet arrangements.

ACCOUNTING MATTERS


CRITICAL ACCOUNTING POLICIES


The discussion and analysis of our results of operations, liquidity and capital resources is based on our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States.

The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. We base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances, including assumptions as to future events. These estimates form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may differ from our estimates.

The following represents a summary of our critical accounting policies, defined as those policies that we believe are: (a) the most important to the portrayal of our financial condition and results of operations, and (b) that require management’s most difficult, subjective or complex judgments, often as a result of the need to make estimates about the matters that are inherently uncertain. We discuss each of these policies below, as well as the estimates and judgments involved. We also have other policies that we consider key accounting policies; however, these policies do not meet the definition of critical accounting estimates, because they do not generally require us to make estimates or judgments that are difficult or subjective.

FOREIGN CURRENCY FINANCIAL REPORTING


Assets and liabilities of the Company's German operations are translated from Euros (the functional currency) into U.S. dollars (the reporting currency) at period-end exchange rates. Expense and grant receipts are translated at weighted average exchange rates for the period. Net exchange gains or losses resulting from such translation are excluded from the consolidated statements of operations and are included in comprehensive loss and accumulated in a separate component of stockholders' equity. Such accumulated amount approximated $170,000 and $317,000 at December 31, 2010 and 2009, respectively.




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The Company records payables related to a certain licensing agreement (Note 6) in accordance with the Foreign Currency Matters Topic of the Codification. Quarterly commitments under such agreement are denominated in Euros. For each reporting period, the Company translates the quarterly amount to U.S. dollars at the exchange rate effective on that date. If the exchange rate changes between when the liability is incurred and the time payment is made, a foreign exchange gain or loss results. The Company made no payments under this licensing agreement during the years ended December 31, 2010 and 2009, and did not realize any significant foreign currency exchanges gains or losses.


Additionally, the Company computes a foreign exchange gain or loss at each balance sheet date on all recorded transactions denominated in foreign currencies that have not been settled. The difference between the exchange rate that could have been used to settle the transaction on the date it occurred and the exchange rate at the balance sheet date is the unrealized gain or loss that is currently recognized. The Company recorded an unrealized foreign currency transaction gain (loss) of approximately $106,000 and $(14,000) for the years ended December 31, 2010 and 2009, respectively, which are included in interest and other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss.


INCOME TAXES

The Company accounts for income taxes using the liability method in accordance with the Income Taxes Topic of the ASC. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided for significant deferred tax assets when it is more likely than not that such assets will not be recovered.


As of December 31, 2010 and 2009, the Company did not increase or decrease the liability for unrecognized tax benefit related to uncertain tax positions in prior periods nor did the Company increase its liability for any uncertain tax positions in the current year. Furthermore, there were no adjustments to the liability or lapse of any statutes of limitation or settlements with taxing authorities.


The Company expects resolution of unrecognized tax benefits, if created, would occur while the 100% valuation allowance of deferred tax assets is maintained; therefore, the Company does not expect to have any unrecognized tax benefits that, if recognized, would affect its effective income tax rate.


The Company will recognize interest and penalty related to unrecognized tax benefits and penalties as income tax expense. As of December 31, 2010, the Company has not recognized any liabilities for penalty or interest as the Company does not have any liability for unrecognized tax benefits.


The Company is subject to taxation in the US and various states. The Company's 2005 through 2010 tax years are subject to examination by the taxing authorities. With few exceptions, the Company is no longer subject to U.S. federal, state, local or foreign examinations by taxing authorities for years before 2005.

COMPREHENSIVE LOSS

Total comprehensive loss represents the net change in stockholders' equity (deficit) during a period from sources other than transactions with stockholders and as such, includes net earnings or loss. For the Company, other comprehensive loss represents the foreign currency translation adjustments, which are recorded as components of stockholders' equity.



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LOSS PER COMMON SHARE


Basic loss per common share is computed based on the weighted average number of shares outstanding for the period. Diluted loss per common share is computed by dividing net loss available to common stockholders by the weighted average shares outstanding assuming all dilutive potential common shares were issued. There were no dilutive potential common shares outstanding at December 31, 2010 or 2009.

ITEM 7A - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


An SRC is not required to provide any information in response to Item 305 of Regulation S-K.

ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The information required by this item is submitted as a separate section of this report immediately following the signature page.

ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

None.

ITEM 9A - CONTROLS AND PROCEDURES

Under the supervision and with the participation of management, including Birge Bargmann, our chief executive officer and chief financial officer, we have evaluated the effectiveness of the Company’s disclosure controls and procedures as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act as of the end of the period covered by this Annual Report on Form 10-K. Based on that evaluation, Ms. Bargmann has concluded that these controls and procedures were effective as of December 31, 2010, including those to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, and is accumulated and communicated to management, including the principal executive officer and the principal financial officer, as appropriate, to allow for timely decisions regarding required disclosure.

REPORT OF MANAGEMENT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The Management of Proteo is responsible for establishing and maintaining adequate internal control over financial reporting. The Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

The Company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, (iii) provide reasonable assurance that receipts and expenditures of the company are being made only in accordance with authorization of management and directors of the company, and (iv) provide reasonable assurance regarding prevention or timely detection of the unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.



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Management has assessed the Company's internal control over financial reporting as of December 31, 2010. The assessment was based on criteria for effective internal control over financial reporting described in the Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the assessment, Management believes that the Company maintained effective internal control over financial reporting as of December 31, 2010.

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

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There have been no significant changes in the Company's internal control over financial reporting during the Company's most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. Inherent limitations exist in any system of internal control including the possibility of human error and the potential of overriding controls. Even effective internal controls can provide only reasonable assurance with respect to financial statement preparation. The effectiveness of an internal control system may also be affected by changes in conditions.

ITEM 9B - OTHER INFORMATION

None.

PART III

ITEM 10 - DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The following table sets forth the names and ages of the current and incoming directors and executive officers of the Company and the principal offices and positions with the Company held by each person. The Board of Directors elects the executive officers of the Company annually. The directors serve one-year terms until their successors are elected. The executive officers serve terms of one year or until their death, resignation or removal by the Board of Directors

NAME AGE POSITIONS
Birge Bargmann 49 President, Chief Executive Officer,
Chief Financial Officer and Director
Dr. Barbara Kahlke 46 Secretary
Professor Oliver Wiedow, MD. 53 Director
Prof. Hartmut Weigelt, Ph.D. 65 Director



BIOGRAPHICAL INFORMATION

Birge Bargmann has served as our President, Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO") since November 2005 and a Director of the Company since December 2000. In November 2005, she was appointed CEO and CFO of the Company and its subsidiary. Ms. Bargmann was a member of the Supervisory Board of Proteo Biotech AG from 2000 to 2005. Since 1989, Ms. Bargmann has worked as a medical technique assistant engaged in the Elafin project at the University of Kiel. She co-developed and carried out procedures to detect and to purify Elafin. The Board of Directors concluded that Ms. Bargmann should serve as a director in light of her extensive scientific understanding of our technologies in development combined with the perspective and experience she brings as our current President and Chief Executive Officer from her extensive history with the Company.



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Dr. Barbara Kahlke has served as our Secretary since August 2004. She has been a member of the Supervisory Board of Proteo Biotech AG since May 2002, and a scientific researcher for Proteo Biotech AG since May 2000. Dr. Kahlke is a biologist, having received her doctorate from Christian-Albrechts-University in Kiel, Germany. Since 1994, Dr. Kahlke has worked for a medium-sized German pharmaceutical company with responsibilities in molecular biology and in protein production in compliance with GMP. She discovered the biological activity of bis-acyl urea.

Prof. Oliver Wiedow, M.D. has served as a Director of the Company since December 2000. Professor Wiedow served as our President, Chief Executive Officer and Chief Financial Officer from January 2004 to June 2004 and has served as a member of the Supervisory Board of Proteo Biotech AG since 2000. Since 1985 Professor Wiedow has served as physician and scientist at the University of Kiel, Germany. Prof. Wiedow discovered Elafin in human skin and has researched its biological effects. The Board of Directors concluded that Dr. Wiedow should serve as a director in light of his having been an inventor of, and his extensive scientific understanding of, our technologies in development.

Prof. Hartmut Weigelt, Ph.D. has served as a Director of the Company since December 2000. Prof. Weigelt was a member of the Supervisory Board of Proteo Biotech AG from 2000 to 2003. Since 1996, Prof. Weigelt has served as the managing director of Eco Impact GmbH which he co-founded. Prof. Weigelt was a co-founder of the first German private university, Witten/Herdecke and he is currently Chief Scientific Officer ("CSO") of MedEcon Ruhr GmbH, and head of the Department of Dental Biomedicine at the University of Applied Sciences in Hamm (Northrhine-Westphalia, Germany). Prof. Weigelt studied chemistry and biology and graduated with a M.Sc., Ph.D., and D.Sc. in biology. The Board of Directors concluded that Prof. Weigelt should serve as a director in light of his extensive scientific understanding of our technologies in development.


AUDIT COMMITTEE AND FINANCIAL EXPERT

Proteo, Inc. is not a "listed company" under SEC rules and is therefore not required to have an audit committee comprised of independent directors. We do not currently have an audit committee; however, for certain purposes of the rules and regulations of the SEC and in accordance with the Sarbanes-Oxley Act of 2002, our board of directors is deemed to be its audit committee and as such functions and performs some of the same duties as an audit committee including: (1) selection and oversight of our independent accountant; (2) establishing procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls and auditing matters; and (3) engaging outside advisors. Our board of directors has determined that its members do not include a person who is an "audit committee financial expert" within the meaning of the rules and regulations of the SEC.

The board of directors has determined that each of its members is able to read and understand fundamental financial statements and has substantial business experience that results in that member's financial sophistication. Accordingly, the board of directors believes that each of its members has sufficient knowledge and experience necessary to fulfill the duties and obligations that an audit committee would have. The Company does not have a formal compensation committee. The board of directors, acting as a compensation committee, periodically meets to discuss and deliberate on issues surrounding the terms and conditions of executive officer compensation.



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FAMILY RELATIONSHIPS

There are no family relationships between or among the directors, executive officers or persons nominated by the Company to become directors or executive officers.

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

To the best of the management's knowledge, during the past five years, none of the following occurred with respect to a present or former director or executive officer of the Company: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Exchange Act requires the Company's directors and executive officers and persons who own more than ten percent of a registered class of the Company's equity securities to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and other equity securities of the Company. Officers, directors and greater than ten percent beneficial owners of our common stock are required by SEC regulations to furnish the Company with copies of all Section 16(a) forms they file. To the Company's knowledge, based solely on the review of copies of such reports furnished to the Company and written representations that no other reports were required, the Company has been informed that all Section 16(a) filing requirements applicable to the Company's officers, directors and greater than ten percent beneficial owners of our common stock were complied with.

CODE OF ETHICAL CONDUCT

The Company maintains a code of ethical conduct applicable to all employees, officers and directors. The Company will also provide to any person without charge, and upon request, a copy of the Code of Ethics by making a request in writing to: [e-mail].

ITEM 11 - EXECUTIVE COMPENSATION

The following table sets forth the total compensation earned over each of the past two fiscal years ended December 31, 2010 by each person who served as the principal executive officer of Proteo during fiscal years ended 2010 and 2009. There were no other executive officers who had compensation of $100,000 or more during fiscal years ended 2010 and 2009.

SUMMARY COMPENSATION TABLE


Name and Principal Position Year Salary
($) Bonus
($) Stock
Awards
($) Option
Awards
($) Non-Equity
Incentive Plan
Compensation
(#) Non-Qualified
Deferred
Compensation
Earnings
($) All Other
Compensation
($) Total
Compensation
($)
Birge Bargmann 2010 $ 74,378 -0- -0- -0- -0- -0- -0- 74,378
(Chief Executive
Officer and Chief 2009 $ 133,888 -0- -0- -0- -0- -0- -0- 133,888
Financial Officer)



Ms. Bargmann’s salary is paid by the Company’s wholly owned subsidiary Proteo Biotech AG.



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OPTION/STOCK APPRECIATION RIGHTS GRANTS TABLE

The Company does not have a stock option plan, and has not granted any stock options or stock appreciation rights to date.

AGGREGATED OPTION EXERCISES AND FISCAL YEAR-END OPTION VALUE TABLE

Not applicable.

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

The Company does not have any equity compensation plans.

COMPENSATION OF DIRECTORS

The Directors have not received any compensation for serving in such capacity, and the Company does not currently contemplate compensating its Directors in the future for serving in such capacity.

EMPLOYMENT AND CONSULTING AGREEMENTS

The Company has no employment contracts with any of its officers or directors and maintains no retirement, fringe benefit or similar plans for the benefit of its officers or directors. However, Ms. Bargmann does have an employment contract with the Company’s wholly owned subsidiary Proteo Biotech AG, which is described below. The Company may, however, enter into employment contracts with its officers and key employees, adopt various benefit plans and begin paying compensation to its officers and directors as it deems appropriate to attract and retain the services of such persons. The Company does not pay fees to directors who are not executive officers for their attendance at meetings of the Board of Directors or its committees; however, the Company may adopt a policy of making such payments in the future. The Company will reimburse out-of-pocket expenses incurred by directors in attending Board and committee meetings.

COMPENSATION COMMITTEE AND INSIDER PARTICIPATION

The current Board of Directors includes Birge Bargmann, who also serves as an executive officer of the Company. As a result, this director discusses and participates in deliberations of the Board of Directors on matters relating to the terms of executive compensation. In this regard, a director whose executive compensation is voted upon by the Board of Directors must abstain from such vote.


REPORT OF THE BOARD OF DIRECTORS ON EXECUTIVE COMPENSATION

The following statement made by the Board of Directors, sitting as a Compensation Committee, shall not be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, and shall not otherwise be deemed filed under either of such Acts.

The Company does not have a formal compensation committee and the Company’s officers receive no compensation from the Company at this time. Ms. Bargmann, our President, Chief Executive Officer and Chief Financial Officer, receives compensation from our wholly-owned subsidiary, Proteo Biotech AG. The Supervisory Board of Proteo Biotech AG entered into an employment contract with Ms. Bargmann on August 1, 2007. The contract became effective on August 1, 2007 and expires on July 31, 2010. A new contract is currently under negotiation. Pursuant to the agreement, Ms. Bargmann received a salary of 8,000 Euro per month in 2009, which amounted to total annual compensation of 96,000 Euro for the year ended December 31, 2009. Ms. Bargmann took a 40% reduction to her salary in 2010, which amounted to total annual compensation of 56,000 Euro for the year ended December 31, 2010. The supervisory Board and Ms. Bargmann are obliged to negotiate the compensation at any time on the request of either party taking into consideration the economic performance of the Company. If no understanding can be reached within one month, the requesting party is allowed to terminate the agreement three months after at month’s end.




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ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth, as of December 31, 2010, certain information with respect to the Company's equity securities owned of record or beneficially by (i) each director and executive officer; (ii) each person who owns beneficially more than 5% of each class of the Company's outstanding equity securities; and (iii) all directors and executive officers as a group. The address for all of the following individuals is c/o Proteo, Inc., 2102 Business Center Drive, Irvine, California 92612.


Name of Beneficial Owner Number of Common Shares Beneficially Owned (1) Percent of Class
Prof. Oliver Wiedow, M.D. 10,680,000 44.7%
Birge Bargmann 2,000,000 8.4%
Dr. Barbara Kahlke 10,000 *
Prof. Hartmut Weigelt, Ph.D. 57,000 *
All directors and executive officers as a group (4 persons) 12,747,000 53.4%

_________________
* less than 1%
(1) Based on 23,879,350 common shares outstanding as of December 31, 2010.

ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

On December 30, 2000, the Company entered into a thirty-year license agreement, beginning January 1, 2001 (the "License Agreement"), with Dr. Wiedow, the owner and inventor of several patents, patent rights and technologies related to Elafin. Pursuant to the License Agreement, the Company agreed to pay Dr. Wiedow an annual license fee of 110,000 Euros for a period of six years. No payments were made through fiscal year 2003. In 2004, the License Agreement was amended to require the Company to make annual payments of 30,000 Euros, to be paid on July 15 of each year, beginning in 2004. Such annual payment could be increased to 110,000 Euros by June 1 of each year based on an assessment of the Company's financial ability to make such payments. In December 2007 the Company paid Dr. Wiedow 30,000 Euros. The License Agreement was again amended by an Amendment Agreement to the License Agreement (the "Amendment") dated December 23, 2008. Pursuant to the Amendment, the Company and Dr. Wiedow have agreed that the Company would pay the outstanding balance of 630,000 Euros to Dr. Wiedow as follows: for fiscal years 2008 to 2012, the Company shall pay Dr. Wiedow 30,000 Euros per year, and for fiscal years 2013 to 2016, the Company shall pay Dr. Wiedow 120,000 Euros per year. The foregoing payments shall be made on or before December 31 of each fiscal year. In December 2008 the Company paid Dr. Wiedow 30,000 Euros. No payments were made under this agreement during 2009 or 2010. While the total amount owed does not currently bear interest, the Amendment provides that any late payment shall be subject to interest at an annual rate equal to the German Base Interest Rate (0.12% as of January 1, 2010) plus six percent. In the event that the Company's financial condition improves, the parties can agree to increase and/or accelerate the payments.

The Amendment also modified the royalty payment such that the Company will not only pay Dr. Wiedow a three percent royalty on gross revenues from the Company's sale of products based on the licensed technology but also three percent of the license fees (including upfront and milestone payments and running royalties) received by the Company or its subsidiary from their sublicensing of the licensed technology.


No royalty expense has been recognized under the License Agreement or the Amendment since the Company has yet to generate any related revenues. At December 31, 2010 and 2009, the Company has accrued approximately $795,000 and $860,000, respectively, of licensing fees payable to Dr. Wiedow, of which approximately $119,000 and $86,000, respectively, is included in current liabilities with the remainder included in long-term liabilities.




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On September 28, 2006, Dr. Wiedow entered into an agreement to contribute 50,000 Euros (approximately $63,000) to PBAG for a 15% non-voting interest in PBAG, in accordance with certain provisions of the German Commercial Code. Dr. Wiedow will receive 15% of profits, as determined under the agreement, not to exceed in any given year 30% of the capital contributed. Additionally, he will be allocated 15% of losses, as determined under the agreement, not to exceed the capital contributed. Dr. Wiedow is under no obligation to provide additional capital contributions to the Company. During the years ended December 31, 2007 and 2006, losses of 50,000 Euros (approximately $63,000) were allocated against the contributed capital account, which is presented as minority interest in the profits and losses of Proteo Biotech on the accompanying statements of operations and comprehensive loss.

The disclosure requirements of Item 407(a) of Regulation S-K are not applicable to this filing.

ITEM 14 - PRINCIPAL ACCOUNTANT FEES AND SERVICES

AUDIT FEES:

We were billed approximately $85,000 for each of the fiscal years ended December 31, 2010 and 2009, for professional services rendered by the principal accountant for the audit of the our annual consolidated financial statements and the review of our quarterly unaudited consolidated financial statements.

AUDIT RELATED FEES:

None

TAX FEES:

We were billed approximately $6,000 for each of the fiscal years ended December 31, 2010 and 2009, respectively, for professional services rendered by the principal accountant for tax compliance.

ALL OTHER FEES:

There were no other professional services rendered by our principal accountant during the two years ended December 31, 2010 that were not included in the three categories above.

All of the services provided by our principal accountant were approved by our Board of Directors. No more than 50% of the hours expended on our audit for the last fiscal year were attributed to work performed by persons other than full-time employees of our principal accountant.


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PART IV

Item 15. Exhibits and Financial Statement Schedules

(a)(1) Financial Statements. Reference is made to the Index to Consolidated Financial Statements on page F-1 for a list of financial statements filed as a part of this Annual Report.

(2) Financial Statement Schedules. All financial statement schedules are omitted because of the absence of the conditions under which they are required to be provided or because the required information is included in the financial statements listed above and/or related notes.


(3) List of Exhibits. The following is a list of exhibits filed as a part of this Annual Report on Form 10-K.

Exhibit No. Description
21 List of Subsidiaries of Proteo, Inc.

31.1 Certification of Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act 2002

31.2 Certification of Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act 2002

32 Certification of Chief Executive Officer and Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act 2002




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SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) 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.

PROTEO, INC.
(Registrant)


Dated: March 14, 2011 By: /s/ Birge Bargmann
Birge Bargmann
Chief Executive Officer and
Chief Financial Officer





Pursuant to requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:


Signature Capacity Date

/s/ Birge Bargmann
--------------------------------------------------------------------------------
Director, Chief Executive Officer and
Chief Financial Officer March 14, 2011
Birge Bargmann

/s/ Oliver Wiedow, M.D.
--------------------------------------------------------------------------------
Director March 14, 2011
Oliver Wiedow, M.D.

/s/ Hartmut Weigelt, Ph.D.
--------------------------------------------------------------------------------
Director March 14, 2011
Hartmut Weigelt, Ph.D.






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PROTEO, INC. AND SUBSIDIARY
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


Annual Consolidated Financial Statements:

Report of Independent Registered Public Accounting Firm F-2

Consolidated Balance Sheets as of December 31, 2010 and 2009 F-3

Consolidated Statements of Operations and Comprehensive Loss for the years ended December 31, 2010 and 2009 and for the Period From November 22, 2000 (Inception) Through December 31, 2010 F-4

Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2010 and 2009 and for the Period From November 22, 2000 (Inception) Through December 31, 2010 F-5

Consolidated Statements of Cash Flows for the years ended December 31, 2010 and 2009 and for the Period from November 22, 2000 (Inception) Through December 31, 2010 F-8

Notes to Consolidated Financial Statements F-9








F-1
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REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM


To the Board of Directors and Stockholders
Proteo, Inc. and Subsidiary


We have audited the accompanying consolidated balance sheets of Proteo, Inc. and Subsidiary (collectively the "Company"), a Development Stage Company, as of December 31, 2010 and 2009, and the related consolidated statements of operations and comprehensive loss, stockholders' equity and cash flows for the years ended December 31, 2010 and 2009, and for the period from November 22, 2000 (Inception) to December 31, 2010. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.


We conducted our audits 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 consolidated financial statements are free of material misstatement. The Company was not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated 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 audits provide a reasonable basis for our opinion.


In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Proteo, Inc. and Subsidiary as of December 31, 2010 and 2009, and the consolidated results of their operations and their cash flows for the years ended December 31, 2010 and 2009, and for the period from November 22, 2000 (Inception) to December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.


The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As reported in the accompanying consolidated financial statements, the Company is a development stage enterprise which has experienced significant losses since inception with no operating revenues. As of December 31, 2010, the Company's deficit accumulated during the development stage approximated $7.3 million. As discussed in Note 1 to the consolidated financial statements, a significant amount of additional capital will be necessary to advance the development of the Company's products to the point at which they may become commercially viable. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern. Management's plans regarding these matters are also described in Note 1. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.




/s/ Squar, Milner, Peterson, Miranda & Williamson, LLP



March 14, 2011
Newport Beach, California




F-2
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEETS

ASSETS
December 31, December 31,
2010 2009
CURRENT ASSETS
Cash and cash equivalents $ 698,534 $ 689,126
Research supplies 494,349 581,919
Prepaid expenses and other current assets 33,643 67,469
1,226,526 1,338,514

PROPERTY AND EQUIPMENT, NET 168,168 232,469
$ 1,394,694 $ 1,570,983

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 106,424 $ 190,627
Accrued licensing fees 119,277 85,998
225,701 276,625

LONG TERM LIABILITIES
Deferred fees - 117,230
Accrued licensing fees 675,903 773,982
675,903 891,212
COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Non-voting preferred stock, par value $0.001 per share; 10,000,000
shares authorized; 661,500 and 630,000 shares issued and outstanding
at December 31, 2010 and 2009, respectively (Liquidation preference - Note 3) 662 630
Common stock, par value $0.001 per share; 300,000,000
shares authorized; 23,879,350 shares issued and
outstanding 23,880 23,880
Additional paid-in capital 8,567,634 8,567,634
Note receivable for sale of preferred stock (984,400 ) (1,731,306 )
Accumulated other comprehensive income 169,680 316,528
Deficit accumulated during development stage (7,284,366 ) (6,774,220 )

Total Proteo, Inc. Stockholders' Equity 493,090 403,146

Noncontrolling Interest - -

Total Stockholders' Equity 493,090 403,146

Total Liabilities and Stockholders' Equity $ 1,394,694 $ 1,570,983



SEE ACCOMPANYING NOTES TO THESE CONSOLIDATED FINANCIAL STATEMENTS




F-3
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2010

NOVEMBER 22,
2000
(INCEPTION)
THROUGH
DECEMBER 31,
2010 2009 2010
CONSOLIDATED STATEMENTS OF OPERATIONS

REVENUES $ - $ - $ -

EXPENSES
General and administrative 366,098 388,371 4,740,795
Research and development 383,182 513,080 3,048,891
749,280 901,451 7,789,686
INTEREST AND OTHER INCOME (EXPENSE), NET 239,166 43,667 442,378

NET LOSS (510,114 ) (857,784 ) (7,347,308 )

LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST - - 63,004

NET LOSS ATTRIBUTABLE TO PROTEO, INC. (510,114 ) (857,784 ) (7,284,304 )

PREFERRED STOCK DIVIDEND (32 ) (30 ) (62 )

NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (510,146 ) $ (857,814 ) $ (7,284,366 )
BASIC AND DILUTED LOSS ATTRIBUTABLE TO PROTEO, INC.
COMMON SHAREHOLDERS $ (0.02 ) $ (0.04 )

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 23,879,350 23,879,350

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

NET LOSS ATTRIBUTABLE TO PROTEO, INC. $ (510,114 ) $ (857,784 ) $ (7,284,304 )

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS (146,848 ) 37,248 169,680

COMPREHENSIVE LOSS $ (656,962 ) $ (820,536 ) $ (7,114,624 )



SEE ACCOMPANYING NOTES TO THESE CONSOLIDATED FINANCIAL STATEMENTS



F-4
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009, AND FOR THE PERIOD
FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2010


Preferred Stock Shares Amount Common Stock Shares Amount Additional
Paid-in
Capital Stock Subscriptions Receivable Accumulated Other Comprehensive Income (Loss) Deficit Accumulated During Development Stage Total
BALANCE - November 22, 2000 (Inception) - $ - - $ - $ - $ - $ - $ - $ -

Common stock subscribed at $0.001 per share - - 4,800,000 4,800 - (4,800 ) - - -

Common stock issued for cash at $3.00 per share - - 50,000 50 149,950 - - - 150,000

Reorganization with Proteo Biotech AG - - 2,500,000 2,500 6,009 - - - 8,509

Net loss - - - - - - - (60,250 ) (60,250 )

BALANCE - December 31, 2000 - $ - 7,350,000 $ 7,350 $ 155,959 $ (4,800 ) $ - $ (60,250 ) $ 98,259

Common stock issued for cash at $3.00 per share - - 450,000 450 1,349,550 - - - 1,350,000

Cash received for common stock subscribed at $0.001 per share - - - - - 4,800 - - 4,800

Common stock issued for cash at $0.40 per share - - 201,025 201 80,209 - - - 80,410

Common stock subscribed at $0.40 per share - - 5,085,487 5,086 2,029,109 (2,034,195 ) - - -

Common stock issued for cash to related parties at $0.001 per share - - 7,200,000 7,200 - - - - 7,200

Other comprehensive loss - - - - - - (20,493 ) - (20,493 )

Net loss - - - - - - - (374,111 ) (374,111 )

BALANCE - December 31, 2001 - $ - 20,286,512 $ 20,287 $ 3,614,827 $ (2,034,195 ) $ (20,493 ) $ (434,361 ) $ 1,146,065





F-5
--------------------------------------------------------------------------------



Common stock issued in connection with reverse merger - $ - 1,313,922 $ 1,314 $ (1,314 ) $ - $ - $ - $ -

Cash received for common stock subscribed at $0.40 per share - - - - - 406,440 - - 406,440

Other comprehensive income - - - - - - 116,057 - 116,057

Net loss - - - - - - - (1,105,395 ) (1,105,395 )

BALANCE - December 31, 2002 - $ - 21,600,434 $ 21,601 $ 3,613,513 $ (1,627,755 ) $ 95,564 $ (1,539,756 ) $ 563,167

Common stock issued for cash at $0.60 per share - - 66,667 67 39,933 - - - 40,000

Cash received for common stock subscribed at $0.40 per share - - - - - 387,800 - - 387,800

Other comprehensive income - - - - - - 164,399 - 164,399

Net loss - - - - - - - (620,204 ) (620,204 )

BALANCE - December 31, 2003 - $ - 21,667,101 $ 21,668 $ 3,653,446 $ (1,239,955 ) $ 259,963 $ (2,159,960 ) $ 535,162

Common stock issued for cash at $0.40 per share - - 412,249 412 164,588 - - - 165,000

Cash received for common stock subscribed at $0.40 per share - - - - - 680,000 - - 680,000

Other comprehensive income - - - - - - 93,186 - 93,186

Net loss - - - - - - - (639,746 ) (639,746 )

BALANCE - December 31, 2004 - $ - 22,079,350 $ 22,080 $ 3,818,034 $ (559,955 ) $ 353,149 $ (2,799,706 ) $ 833,602

Common stock subscribed at $0.84 per share - - 300,000 300 251,700 (252,000 ) - - -

Cash received for common stock subscribed at $0.40 per share - - - - - 435,284 - - 435,284

Other comprehensive loss - - - - - - (134,495 ) - (134,495 )

Net loss - - - - - - - (1,131,781 ) (1,131,781 )

BALANCE - December 31, 2005 - $ - 22,379,350 $ 22,380 $ 4,069,734 $ (376,671 ) $ 218,654 $ (3,931,487 ) $ 2,610




F-6
--------------------------------------------------------------------------------



Common stock subscribed at $0.60 per share - $ - 1,500,000 $ 1,500 $ 898,500 $ (900,000 ) $ - $ - $ -

Cash received for common stock subscribed at $0.40 per share - - - - - 414,590 - - 414,590

Other comprehensive income - - - - - - 61,737 - 61,737

Net loss - - - - - (649,868 ) (649,868 )

BALANCE - December 31, 2006 - $ - 23,879,350 $ 23,880 $ 4,968,234 $ (862,081 ) $ 280,391 $ (4,581,355 ) $ (170,931 )

Cash received for common stock subscribed at $0.60 per share - - - - - 862,081 - - 862,081

Other comprehensive income - - - - - - 89,987 - 89,987

Net loss - - - - - - - (445,169 ) (445,169 )

BALANCE - December 31, 2007 - $ - 23,879,350 $ 23,880 $ 4,968,234 $ - $ 370,378 $ (5,026,524 ) $ 335,968

Preferred stock subscribed at $6.00 per share 600,000 600 - - 3,599,400 (3,600,000 ) - - -

Cash received for preferred stock subscribed at $2.26 per share - - - - - 1,354,611 - - 1,354,611

Other comprehensive loss - - - - - - (91,098 ) - (91,098 )

Net loss - - - - - - - (889,882 ) (889,882 )

BALANCE - December 31, 2008 600,000 $ 600 23,879,350 $ 23,880 $ 8,567,634 $ (2,245,389 ) $ 279,280 $ (5,916,406 ) $ 709,599

Cash received for preferred stock subscribed at $2.26 per share - - - - - 514,083 - - 514,083

Preferred stock dividend 30,000 30 (30 ) -

Other comprehensive income - - - - - - 37,248 - 37,248

Net loss - - - - - - - (857,784 ) (857,784 )

BALANCE - December 31, 2009 630,000 $ 630 23,879,350 $ 23,880 $ 8,567,634 $ (1,731,306 ) $ 316,528 $ (6,774,220 ) $ 403,146

Cash received for preferred stock subscribed at $2.26 per share - - - - - 746,906 - - 746,906

Preferred stock dividend 31,500 32 - - - - - (32 ) -

Other comprehensive loss - - - - - - (146,848 ) - (146,848 )

Net loss - - - - - - - (510,114 ) (510,114 )

BALANCE - December 31, 2010 661,500 $ 662 23,879,350 $ 23,880 $ 8,567,634 $ (984,400 ) $ 169,680 $ (7,284,366) $ 493,090




SEE ACCOMPANYING NOTES TO THESE CONSOLIDATED FINANCIAL STATEMENTS


F-7
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH DECEMBER 31, 2010

NOVEMBER 22,
2000
(INCEPTION)
THROUGH
DECEMBER 31,
2010 2009 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss attributable to Proteo, Inc. $ (510,114 ) $ (857,784 ) $ (7,284,304 )
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation 48,145 56,523 439,346
Bad debt expense - 60,408 60,408
Loss on disposal of equipment - - 4,518
Foreign currency transaction (gains) losses (105,992 ) 14,160 91,570
Changes in operating assets and liabilities:
Research supplies 43,817 (452,808 ) (539,683 )
Prepaid expenses and other current assets (8,463 ) 63,497 (135,185 )
Accounts payable and accrued liabilities (74,529 ) 60,429 77,895
Deferred fees (108,397 ) - 11,944
Accrued licensing fees - - 660,713

NET CASH USED IN OPERATING ACTIVITIES (715,533 ) (1,055,575 ) (6,612,778 )

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (1,259 ) (20,308 ) (634,873 )
Cash of reorganized entity - - 27,638

NET CASH USED IN INVESTING ACTIVITIES (1,259 ) (20,308 ) (607,235 )

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock - - 1,792,610
Proceeds from subscribed common stock and issuance
of preferred stock to related party 746,906 514,083 5,806,575

NET CASH PROVIDED BY FINANCING ACTIVITIES 746,906 514,083 7,599,185

EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS (20,706 ) 13,476 319,362

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 9,408 (548,324 ) 698,534
CASH AND CASH EQUIVALENTS--BEGINNING OF PERIOD 689,126 1,237,450 -

CASH AND CASH EQUIVALENTS--END OF PERIOD $ 698,534 $ 689,126 $ 698,534

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Preferred stock dividend $ 32 $ 30 $ 62

Common stock issued for subscriptions receivable $ - $ - $ 1,627,755

Net assets (excluding cash) of reorganized entity received in exchange for equity securities $ - $ - $ 8,509

Unpaid balance of note receivable for issuance of preferred stock $ - $ - $ 2,245,389



SEE ACCOMPANYING NOTES TO THESE CONSOLIDATED FINANCIAL STATEMENTS




F-8
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


ORGANIZATION/NATURE OF BUSINESS


Proteo, Inc. and Proteo Marketing, Inc. ("PMI"), a Nevada corporation, which began operations in November 2000, entered into a reorganization and stock exchange agreement in December 2000 with Proteo Biotech AG ("PBAG"), a German corporation, incorporated in Kiel, Germany. Pursuant to the terms of the agreement, all of the shareholders of PBAG exchanged their common stock for 2,500,000 shares of PMI common stock. As a result, PBAG became a wholly owned subsidiary of PMI. Proteo Inc.'s common stock is quoted on the Over-the-Counter Bulletin Board under the symbol "PTEO.OB".


During 2001, PMI entered into a Shell Acquisition Agreement (the "Acquisition Agreement") with Trivantage Group, Inc. ("Trivantage"), a public "shell" company, in a transaction accounted for as a reverse merger. In accordance with the Acquisition Agreement, PMI first acquired 176,660,280 shares (1,313,922 post-reverse split shares, as described below) of Trivantage's common stock representing 90% of the issued and outstanding common stock of Trivantage, in exchange for a cash payment of $500,000 to the sole shareholder of Trivantage. Secondly, Trivantage completed a one for one-hundred-fifty reverse stock split. Finally, effective April 25, 2002, the shareholders of PMI exchanged their shares of PMI for an aggregate of 20,286,512 shares of Trivantage to effect a reverse merger between PMI and Trivantage. Subsequently, Trivantage changed its name to Proteo, Inc. Effective December 31, 2004, PMI merged into Proteo, Inc. PBAG and Proteo, Inc. are hereinafter collectively referred to as the "Company."


The Company intends to develop, promote and market pharmaceuticals and other biotech products. The Company is focused on the development of pharmaceuticals based on the human protein Elafin. Elafin is a human protein that naturally occurs in human skin, lungs, and mammary glands. The Company believes Elafin may be useful in the treatment of post-surgery damage to tissue, complications resulting from organ transplantation, pulmonary hypertension, serious injuries caused by accidents, cardiac infarction, as well as other diseases.


Since its inception, the Company has primarily been engaged in the research and development of its proprietary product Elafin. Once the research and development phase is complete, the Company will begin to manufacture and obtain the various governmental regulatory approvals for the marketing of Elafin. The Company is in the development stage and has not generated any significant revenues from product sales. The Company believes that none of its planned products will produce sufficient revenues in the near future. There are no assurances, however, that the Company will be able to produce such products, or if produced, that they will be accepted in the marketplace.



F-9
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


DEVELOPMENT STAGE AND GOING CONCERN MATTERS


The Company has been in the development stage since it began operations on November 22, 2000 and has not generated any revenues from operations and has incurred net losses since inception of approximately $7,347,000. There is no assurance of any future revenues. At December 31, 2010, the Company has working capital of approximately $1,001,000, stockholders' equity of approximately $493,000, and an accumulated deficit of approximately $7.3 million.


The Company will require substantial additional funding for continuing research and development, obtaining regulatory approval, and for the commercialization of its products.


Management has taken action to address these matters. They include:

— Retention of experienced management personnel with particular skills in the development of such products.

— Attainment of technology to develop biotech products.

— Raising additional funds through the sale of debt and/or equity securities.



The Company's products, to the extent they may be deemed drugs or biologics, are governed by the United States Federal Food, Drug and Cosmetics Act and the regulations of state and various foreign government agencies. The Company's proposed pharmaceutical products to be used with humans are subject to certain clearance procedures administered by the above regulatory agencies. There can be no assurance that the Company will receive the regulatory approvals required to market its proposed products elsewhere or that the regulatory authorities will review the product within the average period of time.


Management plans to generate revenues from product sales, but there are no purchase commitments for any of the proposed products. Additionally, the Company may generate revenues from out-licensing activities. There can be no assurance that further out-licensing may be achieved and may generate significant profit. In the absence of significant sales and profits, the Company may seek to raise additional funds to meet its working capital requirements through the additional placement of debt and/or sales of equity securities. There is no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.


These circumstances, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.




F-10
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


CONCENTRATIONS


The Company maintains substantially all of its cash in bank accounts at a private German commercial bank. The Company's bank accounts at this financial institution are presently protected by the voluntary Deposit Protection Fund of The German Private Commercial Banks. As such, the Company's bank is a member of this deposit protection fund. The Company has not experienced any losses in these bank accounts.


The Company's research and development activities and most of its assets are located in Germany. The Company's operations are subject to various political, economic, and other risks and uncertainties inherent in Germany and the European Union.


OTHER RISKS AND UNCERTAINTIES


The Company's line of future pharmaceutical products being developed by its German subsidiary are considered drugs or biologics, and as such, are governed by the Federal Food and Drug and Cosmetics Act in the United States and by the regulations of state agencies and various foreign government agencies. There can be no assurance that the Company will obtain the regulatory approvals required to market its products. The pharmaceutical products under development in Germany will be subject to more stringent regulatory requirements because they are recombinant proteins for use in humans. The Company has no experience in obtaining regulatory approvals for these types of products. Therefore, the Company will be subject to the risks of delays in obtaining or failing to obtain regulatory clearance and other uncertainties, including financial, operational, technological, regulatory and other risks associated with an emerging business, including the potential risk of business failure.


As substantially all of the Company's operations are in Germany, they are exposed to risks related to fluctuations in foreign currency exchange rates. The Company does not utilize derivative instruments to hedge against such exposure.


PRINCIPLES OF CONSOLIDATION


The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and include the accounts of Proteo, Inc. and Proteo Biotech AG, its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.


Effective January 1, 2009, the Company adopted new guidance to the Consolidation Topic of the Financial Accounting Standard Board’s (“FASB”) new Accounting Standards Codification (“ASC” or “Codification”). This guidance improves the relevance, comparability and transparency of the financial information that a company provides in its consolidated financial statements by establishing accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This standard requires the Company to classify noncontrolling interests (previously referred to as "minority interest") as part of consolidated net earnings and to include the accumulated amount of noncontrolling interests as part of stockholders' equity.




F-11
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


PRINCIPLES OF CONSOLIDATION (continued)


The net loss amounts the Company has previously reported are now presented as "Net loss attributable to Proteo, Inc." and, as required by the Codification, earnings per share continues to reflect amounts attributable only to the Company. Similarly, in the presentation of stockholders' equity, the Company distinguishes between equity amounts attributable to the Company's stockholders and amounts attributable to the noncontrolling interest - previously classified as minority interest outside of stockholders' equity. In addition to these financial reporting changes, this guidance provides for significant changes in accounting related to noncontrolling interests; specifically, increases and decreases in the Company's controlling financial interests in consolidated subsidiaries will be reported in equity similar to treasury stock transactions. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. Except for presentation, the implementation of this guidance did not have a material effect on the Company's consolidated financial statements because a substantive contractual arrangement specifies the attribution of net earnings and loss not to exceed the noncontrolling interest.


STARTUP ACTIVITIES


The Other Expenses Topic (Start-Up Costs Sub-topic) of the ASC requires that all non-governmental entities expense the costs of startup activities as incurred, including organizational costs. This standard has not materially impacted the Company's financial position or results of operations.


GRANTS


At times the Company has received grants from the German government which were used to fund research and development activities and the acquisition of equipment. Grant receipts for the reimbursement of research and development expenses were offset against such expenses in the accompanying consolidated statements of operations and comprehensive loss when the related expenses are incurred. Grants related to the acquisition of tangible property were recorded as a reduction of such property's historical cost.


The Company has not received any grant funds for the years ended December 31, 2010 and 2009, nor has it applied for any additional grants during such periods.


USE OF ESTIMATES


The Company prepares its consolidated financial statements in conformity with GAAP, which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues (if any) and expenses during the reporting period. Significant estimates made by management include, among others, realizability of long-lived assets and estimates for deferred tax asset valuation allowances. Actual results could materially differ from such estimates.




F-12
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


FAIR VALUE OF FINANCIAL INSTRUMENTS AND CERTAIN OTHER ASSETS/LIABILITIES


The Fair Value Measurements and Disclosures Topic of the ASC requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. Management believes that the carrying amounts of the Company's financial instruments, consisting primarily of cash and cash equivalents, accounts payable and accrued liabilities, approximate their fair value at December 31, 2010 and 2009 due to their short-term nature. The Company does not have any assets or liabilities that are measured at fair value on a recurring or non-recurring basis during the years ended December 31, 2010 and 2009 and for the period from November 22, 2000 (Inception) through December 31, 2010.


FOREIGN CURRENCY FINANCIAL REPORTING


Assets and liabilities of the Company's German operations are translated from Euros (the functional currency) into U.S. dollars (the reporting currency) at period-end exchange rates. Expense and grant receipts are translated at weighted average exchange rates for the period. Net exchange gains or losses resulting from such translation are excluded from the consolidated statements of operations and are included in comprehensive loss and accumulated in a separate component of stockholders' equity. Such accumulated amount approximated $170,000 and $317,000 at December 31, 2010 and 2009, respectively.


The Company records payables related to a certain licensing agreement (Note 6) in accordance with the Foreign Currency Matters Topic of the Codification. Quarterly commitments under such agreement are denominated in Euros. For each reporting period, the Company translates the quarterly amount to U.S. dollars at the exchange rate effective on that date. If the exchange rate changes between when the liability is incurred and the time payment is made, a foreign exchange gain or loss results. The Company made no payments under this licensing agreement during the years ended December 31, 2010 and 2009, and did not realize any significant foreign currency exchanges gains or losses.


Additionally, the Company computes a foreign exchange gain or loss at each balance sheet date on all recorded transactions denominated in foreign currencies that have not been settled. The difference between the exchange rate that could have been used to settle the transaction on the date it occurred and the exchange rate at the balance sheet date is the unrealized gain or loss that is currently recognized. The Company recorded an unrealized foreign currency transaction gain (loss) of approximately $106,000 and $(14,000) for the years ended December 31, 2010 and 2009, respectively, which are included in interest and other income (expense), net in the accompanying consolidated statements of operations and comprehensive loss.



F-13
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


CASH AND CASH EQUIVALENTS


The Company considers all highly liquid temporary cash investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents consist of deposits with banks and short-term certificates of deposit.


RESEARCH SUPPLIES


Research supplies is stated at cost, and is entirely comprised of research supplies and materials that are expensed as consumed.


LONG-LIVED ASSETS


Property and equipment are recorded at cost and depreciated using the straight-line method over their expected useful lives, which range from 3 to 14 years. Leasehold improvements are amortized over the expected useful life of the improvement or the remaining lease term, whichever is shorter. Expenditures for normal maintenance and repairs are charged to income, and significant improvements are capitalized. The cost and related accumulated depreciation or amortization of assets are removed from the accounts upon retirement or other disposition; any resulting gain or loss is reflected in the consolidated statements of operations and comprehensive loss.


The Codification requires that certain long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. If the cost basis of a long-lived asset is greater than the projected future undiscounted net cash flows from such asset, an impairment loss is recognized. Impairment losses are calculated as the difference between the cost basis of an asset and its estimated fair value. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell. Management believes that no indicators of impairment existed as of or during the years ended December 31, 2010 and 2009. There can be no assurance, however, that market conditions or demand for the Company's products or services will not change which could result in long-lived asset impairment charges in the future.


REVENUE RECOGNITION


It is the Company's intent to recognize revenues from future product sales at the time of product delivery. The Company believes that once significant operating revenues are generated, the Company's revenue recognition accounting policies will conform to the Revenue Recognition Topic of the Codification.




F-14
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009

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





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


RESEARCH AND DEVELOPMENT


Research and development costs are charged to operations as incurred. Grant funds received are reported as a reduction of research and development costs.


PATENTS AND LICENSES


The Company does not own any patents or patents pending related to the Elafin technology and instead operates under a technology license agreement with a related party (see Note 6). Under such license agreement, the Company has agreed to pay all costs related to new patents, patents pending, and patent maintenance associated with the Elafin technology. The Company expenses such costs as incurred.


INCOME TAXES


The Company accounts for income taxes using the liability method in accordance with the Income Taxes Topic of the ASC. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. A valuation allowance is provided for significant deferred tax assets when it is more likely than not that such assets will not be recovered.


As of December 31, 2010 and 2009, the Company did not increase or decrease the liability for unrecognized tax benefit related to uncertain tax positions in prior periods nor did the Company increase its liability for any uncertain tax positions in the current year. Furthermore, there were no adjustments to the liability or lapse of any statutes of limitation or settlements with taxing authorities.


The Company expects resolution of unrecognized tax benefits, if created, would occur while the 100% valuation allowance of deferred tax assets is maintained; therefore, the Company does not expect to have any unrecognized tax benefits that, if recognized, would affect its effective income tax rate.


The Company will recognize interest and penalty related to unrecognized tax benefits and penalties as income tax expense. As of December 31, 2010, the Company has not recognized any liabilities for penalty or interest as the Company does not have any liability for unrecognized tax benefits.


The Company is subject to taxation in the U.S. and various states. The Company's 2005 through 2010 tax years are subject to examination by the taxing authorities. With few exceptions, the Company is no longer subject to U.S. federal, state, local or foreign examinations by taxing authorities for years before 2005.



F-15
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


ACCOUNTING FOR STOCK-BASED COMPENSATION


From inception to December 31, 2010, the Company has not granted any stock options, stock warrants, or stock appreciation rights, and has not adopted any stock option plan.


LOSS PER COMMON SHARE


Basic loss per common share is computed based on the weighted average number of shares outstanding for the period. Diluted loss per common share is computed by dividing net loss available to common stockholders by the weighted average shares outstanding assuming all dilutive potential common shares were issued. There were no dilutive potential common shares outstanding at December 31, 2010 or 2009.


COMPREHENSIVE LOSS


Total comprehensive loss represents the net change in stockholders' equity (deficit) during a period from sources other than transactions with stockholders and as such, includes net earnings or loss. For the Company, other comprehensive loss represents the foreign currency translation adjustments, which are recorded as components of stockholders' equity.


SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION


The Company considers itself to operate in one segment and has had no operating revenues from inception. See Note 2 for information on long-lived assets located in Germany.


SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS


Effective September 30, 2009, the Company adopted the FASB’s new Accounting Standard Codification as the single source of authoritative accounting guidance under the Generally Accepted Accounting Principles Topic. The ASC does not create new accounting and reporting guidance, rather it reorganizes GAAP pronouncements into approximately 90 topics within a consistent structure. All guidance in the ASC carries an equal level of authority. Relevant portions of authoritative content, issued by the SEC, for SEC registrants, have been included in the ASC. After the effective date of the Codification, all nongrandfathered, non-SEC accounting literature not included in the ASC is superseded and deemed nonauthoritative. Adoption of the Codification also changed how the Company references GAAP in its consolidated financial statements.


The FASB has issued Accounting Standards Update (“ASU”) No. 2010-09, Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclosure Requirements. The amendments in the ASU remove the requirement for an SEC filer to disclose a date through which subsequent events have been evaluated in both issued and revised financial statements. Revised financial statements include financial statements revised as a result of either correction of an error or retrospective application of U.S. GAAP. The FASB believes these amendments remove potential conflicts with the SEC’s literature. All of the amendments in the ASU were effective upon issuance (February 24, 2010).




F-16
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS (continued)


In December 2009, the FASB issued ASU 2009-17, Consolidations (Topic 810) - Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, which codifies FASB Statement No. 167, Amendments to FASB Interpretation No. 46(R). ASU 2009-17 represents a revision to former FASB Interpretation No. 46 (Revised December 2003), Consolidation of Variable Interest Entities, and changes how a reporting entity determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated. ASU 2009-17 also requires a reporting entity to provide additional disclosures about its involvement with variable interest entities and any significant changes in risk exposure due to that involvement. A reporting entity will be required to disclose how its involvement with a variable interest entity affects the reporting entity’s financial statements. ASU 2009-17 is effective at the start of a reporting entity’s first fiscal year beginning after November 15, 2009, or January 1, 2010, for a calendar year-end entity. Early application is not permitted. The adoption of this update had no impact on the Company’s consolidated financial statements.


In June 2009, the FASB issued Statements on Financial Accounting Standards (“SFAS”) No. 166, Accounting for Transfers of Financial Assets—An Amendment of FASB Statement 140, which eliminates the concept of qualified special purpose entities (QSPEs) and provides additional criteria transferors must use to evaluate transfers of financial assets. This standard modifies certain guidance contained in FASB ASC 860 and is adopted into the Codification through the issuance of ASU 2009-16, Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets. In order to determine whether a transfer is accounted for as a sale, the transferor must assess whether it and all of its consolidated entities have surrendered control of the financial assets. The standard also requires financial assets and liabilities retained from a transfer accounted for as a sale to be initially recognized at fair value. This standard is effective for fiscal years and interim periods beginning after November 15, 2009, with adoption applied prospectively for transfers that occur on or after the effective date. The adoption of this standard had no impact on the Company’s consolidated financial statements.


In April 2009, the FASB issued additional guidance under the Investments – Debt and Equity Securities Topic of the ASC. For debt securities, this guidance replaces the management assertion that it has the intent and ability to hold an impaired debt security until recovery with the requirement that management assert if it either has the intent to sell the debt security or if it is more likely than not the entity will be required to sell the debt security before recovery of its amortized cost basis. If management intends to sell the debt security or it is more likely than not the entity will be required to sell the debt security before recovery of its amortized cost basis, an other than temporary impairment (“OTTI”) shall be recognized in earnings equal to the entire difference between the debt security's amortized cost basis and its fair value at the reporting date. After the recognition of an OTTI, the debt security is accounted for as if it had been purchased on the measurement date of the OTTI, with an amortized cost basis equal to the previous amortized cost basis less the OTTI recognized in earnings. The update also changes the presentation in the financial statements of non credit related impairment amounts for instruments within its scope. When the entity asserts it does not have the intent to sell the security and it is more likely than not it will not have to sell the security before recovery of its cost basis, only the credit related impairment losses are to be recognized in earnings and non credit losses are to be recognized in other comprehensive income (“OCI”). Additionally, this update provides for enhanced presentation and disclosure of OTTIs of debt and equity securities in the financial statements. The adoption of this guidance had no impact on the Company’s consolidated financial statements.




F-17
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)


SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS (continued)


Effective January 1, 2009, the Company adopted additional guidance to the Intangibles – Goodwill and Other Topic of the FASB ASC. This update amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset. The intent of this update is to improve the consistency between the useful life of a recognized intangible asset and the period of expected cash flows used to measure the fair value of the asset under accounting for business combinations, and other U.S. GAAP. The adoption of this guidance did not have any impact on the Company's consolidated financial statements.


Effective January 1, 2009, the Company adopted new guidance to the Business Combinations Topic of the FASB ASC. This guidance establishes principles and requirements for how the acquirer recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree, recognizes and measures the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. The adoption of this guidance had no impact on the Company's consolidated financial statements. The Company will apply this guidance prospectively to any business combination on or after January 1, 2009 as required.


Effective January 1, 2009, the Company adopted additional guidance under the Fair Value Measurement and Disclosures Topic of the FASB ASC, which delays the effective date of the adoption of new guidance under the Fair Value Measurements and Disclosures Topic to January 1, 2009 for certain nonfinancial assets and nonfinancial liabilities. Examples of applicable nonfinancial assets and nonfinancial liabilities to which this update applies include, but are not limited to:


· Nonfinancial assets and nonfinancial liabilities initially measured at fair value in a business combination that are not subsequently remeasured at fair value;

· Reporting units measured at fair value in the goodwill impairment test as described in the Intangibles – Goodwill and Other Topic of the FASB ASC and nonfinancial assets and nonfinancial liabilities measured at fair value in the goodwill impairment test, if applicable; and

· Nonfinancial long-lived assets measured at fair value for impairment assessment under the Property, Plant and Equipment Topic of the FASB ASC.


The adoption of this update had no impact on the Company's consolidated financial statements.


FUTURE ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS


In January 2010, the FASB issued ASU No. 2010-06, Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements. This ASU requires some new disclosures and clarifies some existing disclosure requirements about fair value measurement as set forth in Codification Subtopic 820-10. The FASB’s objective is to improve these disclosures and, thus, increase the transparency in financial reporting. ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Early application is permitted. The adoption of this ASU is not expected to result in a material impact to the Company’s future consolidated financial statements.


Except as described above, in the opinion of management, neither the FASB, its Emerging Issues Task Force, the AICPA, nor the SEC have issued any additional accounting pronouncements that are expected to have a material impact on the Company's future consolidated financial statements.




F-18
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





2. PROPERTY AND EQUIPMENT


Property and equipment, all of which is located in Kiel, Germany, consist of the following:

December 31,
2010 2009
Technical and laboratory equipment $ 410,245 $ 442,319
Plant 195,859 211,819
Leasehold improvements 4,928 5,329
Office equipment 27,671 29,925
638,703 689,392
Less accumulated depreciation and amortization (470,535 ) (456,923 )
Total $ 168,168 $ 232,469


Depreciation and amortization expense included in general and administrative expense in the consolidated statements of operations approximated $48,000 and $57,000 for the years ended December 31, 2010 and 2009, respectively.

During the two years ended December 31, 2010, there were no long-lived assets that were considered to be impaired.

3. STOCKHOLDERS' EQUITY


COMMON STOCK


The Company is authorized to issue 300,000,000 shares of $0.001 par value common stock. The holders of the Company's common stock are entitled to one vote for each share held of record on all matters to be voted on by those stockholders.


In November 2000, the Company sold and issued 4,800,000 shares of restricted common stock at $0.001 per share for $4,800 in cash, which was received in fiscal 2001; therefore the issuance was accounted for as a stock subscription receivable at December 31, 2000. During the year ended December 31, 2001, the Company sold and issued an additional 7,200,000 shares of restricted common stock to related parties at $0.001 per share for $7,200 in cash.


In November 2000, the Company sold and issued 50,000 shares of restricted common stock at $3.00 per share for $150,000 in cash.



F-19
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





3. STOCKHOLDERS' EQUITY (continued)


COMMON STOCK (continued)


In December 2000, the Company issued 2,500,000 shares of restricted common stock in connection with the reorganization and stock exchange agreement with PBAG (see "Organization/Nature of Business" in Note 1).


During the year ended December 31, 2001, the Company issued and sold 450,000 shares of restricted common stock at $3.00 per share to Euro-American GmbH for $1,350,000 in cash.


During the year ended December 31, 2001, the Company entered into a subscription agreement and note receivable for 6,000,000 shares of the Company's restricted common stock with Euro-American GmbH, valued at $2,400,000. During the year ended December 31, 2001, 5,286,512 shares of Company common stock were issued under such subscription, of which approximately $435,000, $680,000, and $794,000 was received against this receivable during the years ended December 31, 2005, 2004, and the period from Inception through December 31, 2003, respectively. In May 2003, FID-Esprit AG ("FID-Esprit") assumed the common stock subscription agreement with Euro-American GmbH. The Company received the outstanding balance in installments through March 28, 2006.


During the year ended December 31, 2002, the Company issued 1,313,922 shares of restricted common stock in conjunction with the reverse merger with PMI (see "Organization/Nature of Business" in Note 1).


Additionally, the Company entered into a common stock purchase agreement with FID-Esprit to sell up to 1,000,000 shares of the Company's restricted common stock. Under the agreement, the Company agreed to sell its common stock at a price per share equal to 40% of the average ask price for the 20 trading days previous to the date of subscription, as quoted on a public market. However, the price per share will be no less than $0.40. During the years ended December 31, 2004 and 2003, the Company issued 412,249 and 66,667 shares, respectively, at $0.40 and $0.60 per share, respectively, for cash. Such agreement was not renewed after it expired on December 31, 2004.


In November 2005, the Company entered into a common stock purchase agreement with FID-Esprit to sell 300,000 of the Company's restricted common shares at $0.84 per share, or $252,000. Concurrent with such transaction, FID-Esprit issued a promissory note to the Company for $252,000 to be paid in four installments of $63,000 each, due on March 31, 2006, June 30, 2006, September 30, 2006, and December 31, 2006. The promissory note was paid in full during the year ended December 31, 2006.


In December 2006, the Company entered into a common stock purchase agreement with FID-Esprit to sell 1,500,000 of the Company's restricted common shares at $0.60 per share, or $900,000. Concurrent with such transaction, FID-Esprit issued a promissory note to the Company for $900,000 to be paid in five installments of $180,000 each through December 31, 2007. FID-Esprit made a partial payment of $37,894 against the note in December 2006. FID-Esprit paid the remaining balance in 2007.




F-20
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





3. STOCKHOLDERS' EQUITY (continued)


PREFERRED STOCK


The Company is authorized to issue 10,000,000 shares of preferred stock, $0.001 par value per share. Except as described below, the Board of Directors has not designated any liquidation value, dividend rates or other rights or preferences with respect to any shares of preferred stock.


The Board of Directors has designated 750,000 preferred shares as non-voting Series A Preferred Stock. As more fully described in the Company’s Form 8-K filed with the SEC on June 11, 2008, holders of Series A Preferred Stock are entitled to receive preferential dividends, if and when declared, at the per share rate of twice the per share amount of any cash or non-cash dividend distributed to holders of the Company's common stock. If no dividend is distributed to common stockholders, the holders of Series A Preferred Stock are entitled to an annual stock dividend payable at the rate of one share of Series A Preferred Stock for each twenty shares of Series A Preferred Stock owned by each holder of Series A Preferred Stock. The annual stock dividend shall be paid on June 30 of each year commencing in 2009 and no stock dividends will be paid after December 31, 2011.


On June 9, 2008, the Company entered into a Preferred Stock Purchase Agreement ("Stock Purchase Agreement") with FID-Esprit (the “Investor”), a common stockholder and related party. Pursuant to the Stock Purchase Agreement, the Company sold and issued to the Investor 600,000 shares of Series A Preferred Stock at a price of $6.00 per share, for an aggregate price of $3,600,000 ("Purchase Price"). In payment of the Purchase Price, the Investor delivered to the Company a promissory note in the amount of $3,600,000 (the “Note”), which matured on March 31, 2009. During the year ended December 31, 2009, the Company received payments approximating $514,000 (including payments received under the Forbearance Agreement, as described below), in connection with the Stock Purchase Agreement. The unpaid principal balance of the Series A Preferred Stock note receivable as of December 31, 2009, which represents a technical default under the Note, approximated $1,731,000. The Series A Preferred Stock note receivable is reported as a reduction of stockholders' equity.

On July 6, 2009, the Company and Investor entered into a Forbearance Agreement and General Release (the “Forbearance Agreement”) to renegotiate the terms of the Note. Pursuant to the Forbearance Agreement, the Investor acknowledged and agreed that, as of July 6, 2009, it was obligated to the Company under the Note for the aggregate sum of $1,940,208 (the “Indebtedness”), which represents the unpaid principal amount as of such date plus a late charge equal to three percent (3%) of the unpaid principal amount (approximately $65,000). In exchange for the Company’s agreement to forbear from exercising its rights under the Note and Guaranty, the Investor has agreed to pay the Indebtedness by making monthly payments in the amount of $140,000 commencing on the first business day of September 2009 and continuing on the first business day of each succeeding month thereafter until the Indebtedness is paid in full. As of December 31, 2009, the Company had only received approximately $148,000 since the inception of the Forbearance Agreement (approximately $5,000 of which was applied to the late charge), and therefore the Investor was technically in default. The Company has not chosen to enforce the remedies under the Forbearance Agreement or the Stock Purchase Agreement as of the filing of this Form 10-K. The receivable for late fees was fully reserved at December 31, 2010 and 2009.




F-21
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





3. STOCKHOLDERS' EQUITY (continued)


PREFERRED STOCK (continued)


On February 11, 2010, the Company entered into an Agreement on the Assumption of Debt (“Agreement”) between the Company, btd biotech development GmBH (“Assignee”), and Axel J. Kutscher (the “Guarantor” of the Note). Pursuant to the Agreement, the Company consented to Assignee’s assumption of the obligations owed to the Company by Investor under the Note, Stock Purchase Agreement and Forbearance Agreement. The Guarantor consented to the assumption of the obligations owed to the Company by Investor and acknowledged, agreed, and consented to the continuing validity of his guaranty. During the year ended December 31, 2010, the Company received payments approximating $747,000, in connection with this agreement. The note receivable approximated $984,000 at December 31, 2010.


Effective June 30, 2010 and 2009, the Company declared a stock dividend of 31,500 shares and 30,000 shares, respectively, of Series A Preferred Stock payable to its Series A Preferred Stock holders pursuant to the Stock Purchase Agreement.


4. NONCONTROLLING INTEREST


On September 28, 2006, a shareholder of the Company entered into an agreement to contribute 50,000 Euros (approximately $63,000) to PBAG for a 15% non-voting interest in PBAG, in accordance with certain provisions of the German Commercial Code. The party will receive 15% of profits, as determined under the agreement, not to exceed in any given year 30% of the capital contributed. Additionally, the party will be allocated 15% of losses, as determined under the agreement, not to exceed the capital contributed. The party is under no obligation to provide additional capital contributions to the Company. Prior to 2008, allocated losses reduced the minority stockholder's capital account to $0, which has been reported as net loss attributable to noncontrolling interest in the accompanying consolidated financial statements.


5. INCOME TAXES


There is no material income tax expense recorded for the years ended December 31, 2010 or 2009 due to the Company's net losses.


Income tax expense for the years ended December 31, 2010 and 2009 differed from the amounts computed by applying the U.S. federal income tax rate of 34 percent to the pretax loss for the following reasons:

2010 2009

Income tax benefit at U.S. federal statutory rates $ (173,000 ) $ (286,000 )
Change in valuation allowance 173,000 286,000
State and local income taxes, net of federal income tax effect 800 800

$ 800 $ 800






F-22
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





5. INCOME TAXES (continued)


The Company has a deferred tax asset and an equal amount of valuation allowance of approximately $1,924,000 and $1,879,000 at December 31, 2010 and 2009, respectively, relating primarily to tax net operating loss carryforwards, as discussed below, and timing differences related to the recognition of accrued licensing fees.


As of December 31, 2010, the Company had tax net operating loss carryforwards ("NOLs") of approximately $1,383,000 and $4,791,000 available to offset future taxable Federal and foreign income, respectively. The Federal NOL expires in varying years through 2025. The foreign net operating loss relates to Germany and does not have an expiration date.


In the event the Company were to experience a greater than 50% change in ownership, as defined in Section 382 of the Internal Revenue Code, the utilization of the Company's Federal tax NOLs could be restricted.

6. COMMITMENTS AND CONTINGENCIES


DR. WIEDOW LICENSE AGREEMENT


On December 30, 2000, the Company entered into a thirty-year license agreement, beginning January 1, 2001 (the "License Agreement"), with Dr. Oliver Wiedow, MD, the owner and inventor of several patents, patent rights and technologies related to Elafin. Pursuant to the License Agreement, the Company agreed to pay Dr. Wiedow an annual license fee of 110,000 Euros for a period of six years. No payments were made through fiscal year 2003. In 2004, the License Agreement was amended to require the Company to make annual payments of 30,000 Euros, to be paid on July 15 of each year, beginning in 2004. Such annual payment could be increased to 110,000 Euros by June 1 of each year based on an assessment of the Company's financial ability to make such payments. In December 2007 the Company paid Dr. Wiedow 30,000 Euros. The License Agreement was again amended by an Amendment Agreement to the License Agreement (the "Amendment") dated December 23, 2008. Pursuant to the Amendment, the Company and Dr. Wiedow have agreed that the Company would pay the outstanding balance of 630,000 Euros to Dr. Wiedow as follows: for fiscal years 2008 to 2012, the Company shall pay Dr. Wiedow 30,000 Euros per year, and for fiscal years 2013 to 2016, the Company shall pay Dr. Wiedow 120,000 Euros per year. The foregoing payments shall be made on or before December 31 of each fiscal year. In December 2008 the Company paid Dr. Wiedow 30,000 Euros. No payments were made under this agreement during 2009 or 2010. While the total amount owed does not currently bear interest, the Amendment provides that any late payment shall be subject to interest at an annual rate equal to the German Base Interest Rate (0.12% as of January 1, 2011) plus six percent. In the event that the Company's financial condition improves, the parties can agree to increase and/or accelerate the payments.

The Amendment also modified the royalty payment such that the Company will not only pay Dr. Wiedow a three percent royalty on gross revenues from the Company's sale of products based on the licensed technology but also three percent of the license fees (including upfront and milestone payments and running royalties) received by the Company or its subsidiary from their sublicensing of the licensed technology.


No royalty expense has been recognized under the License Agreement or the Amendment since the Company has yet to generate any related revenues. At December 31, 2010 and 2009, the Company has accrued approximately $795,000 and $860,000, respectively, of licensing fees payable to Dr. Wiedow, of which approximately $119,000 and $86,000, respectively, is included in current liabilities with the remainder included in long-term liabilities.


Dr. Wiedow, who is a director of the Company, beneficially owned approximately 45% of the Company's outstanding common stock as of December 31, 2010.



F-23
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





6. COMMITMENTS AND CONTINGENCIES (continued)


DR. WIEDOW LICENSE AGREEMENT (continued)


On October 4, 1999, Dr. Wiedow and AstraZeneca PLC (formerly Zeneca Limited) entered into an agreement to assign all patents and technology related to Elafin to Dr. Wiedow in exchange for a royalty of 2% of any future net sales from such patents and technology. The Company, under its December 30, 2000 licensing agreement with Dr. Wiedow discussed above, assumed such royalty obligation.


ARTES BIOTECHNOLOGY LICENSE AGREEMENT


On November 15, 2004, the Company entered into an exclusive worldwide license and collaboration agreement with ARTES Biotechnology GmbH ("ARTES"). This agreement enables the Company to economically produce Elafin on a large scale by using the sublicensed yeast HANSENULA POLYMORPHA as a high performance expression system. Rhein Biotech GmbH ("Rhein") has licensed the yeast to ARTES, who in-turn sublicensed it to the Company. The agreement has a term of fifteen years with an annual license fee equal to the greater of 10,000 Euros or 2.5% royalties on the future sales of Elafin. Should the license agreement between Rhein and ARTES terminate, Rhein will assume the sublicense agreement with the Company under similar terms.


RHEIN MINAPHARM AGREEMENT


In August 2007, the Company's subsidiary entered into an agreement with Rhein Minapharm ("Minapharm") for clinical development, production and marketing of Elafin. The Company has granted Minapharm the right to exclusively market Elafin in Egypt and certain Middle Eastern and African countries. Under this agreement, the Company had deferred certain amounts received until the expiration of a refund period in October 2010. Accordingly, approximately $108,000 is included as other income for 2010 in the accompanying consolidated statements of operations. The Company may receive additional milestone-payments upon Minapharm's attainment of certain clinical milestones as well as royalties on any future net product sales.


LEASES


The Company has entered into several leases for office and laboratory facilities in Germany, expiring at dates through December 2011. The Company also leases office space in Irvine, California on a month-to-month basis. Total rental expense for all facilities for the years ended December 31, 2010 and 2009 approximated $35,000, and $35,000, respectively. Future minimum rental payments under non-cancelable operating leases approximate $34,000 for the year ending December 31, 2011.




F-24
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010 AND 2009
--------------------------------------------------------------------------------





6. COMMITMENTS AND CONTINGENCIES (continued)


LEGAL


The Company may from time to time be involved in various claims, lawsuits, disputes with third parties, actions involving allegations of discrimination, or breach of contract actions incidental to the operation of its business. The Company is not currently involved in any such litigation which it believes could have a material adverse effect on its financial condition or results of operations.


7. LOSS PER COMMON SHARE


The following is a reconciliation of the numerators and denominators of the basic and diluted loss per common share computations for the years ended December 31, 2010 and 2009:


2010 2009
Numerator for basic and diluted loss per common share:
Net loss attributable to Proteo, Inc. $ (510,114 ) $ (857,784 )
Preferred stock dividend (32 ) (30 )
Net loss attributable to common stockholders (510,146 ) (857,814 )

Denominator for basic and diluted loss per common share:
Weighted average number of common shares outstanding 23,879,350 23,879,350

Basic and diluted loss per common share $ (0.02) $ (0.04)







F-25

[Limmitless]

Hallo Kaubeuhut,
hast du info über der Werdegang in Kairo, sind bzw. waren die von den Unruhen betroffen ?
Gruß

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.329.094 von Limmitless am 06.04.11 17:06:31

Bis jetzt noch nicht. Mache mich aber mal schlau.

[ladygaga]

Irgendwas scheint bei Proteo im Busch zu sein. Habe so Gerüchte gehört. Demnächst soll es eine Veröffentlichung geben, die in die Richtung einer Firmenbeteiligung,-übernahme oder Lizenzabkommen geht. Bin gespannt! Weiss jemand mehr?

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.335.832 von ladygaga am 07.04.11 18:13:35

Derartige Ereignisse scheinen immer und jederzeit möglich, denn: "Die derzeitige Börsenbewertung ist eine absolute Lachnummer". Anmerkung: Zitat stammt nicht von mir, sondern wurde vor einigen Wochen von einem Analystenteam so wortwörtlich im Web veröffentlicht.

[peterpan123]

Antwort auf Beitrag Nr.: 41.335.525 von kaubeuhut am 07.04.11 17:28:47

oh je die armen Anleger!
Habe vom Kunde die Urkunden bzg. Bezugsrechte bekommen.
Respekt was der gute alte Vertrieb da mit den gutgläubigen Anlegern macht. alles wird verzögert, damit man genug Zeit hat genügend Geld einzusammeln.
Alte Regel: alles wird bestraft!

...spart euch die guten Einträge, wird nur noch schlimmer!

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.387.517 von peterpan123 am 19.04.11 09:58:18

Du solltest dich lieber "PeterPlemm" nennen.

[heinuun]

Also wie ich mitbekommen habe ist etwas im Busch.
Anscheinend könnte Ende April die Meldung einer Übernahme komme. Bei dem Übernehmenden handelt es sich wohl auch nicht um Altana, die ja bereits die Finger ausgestreckt hatten und auch Frau Klatten ist es wohl nicht. Es soll ein anderer Interessent sein, der ein Angebot bringen soll, dass wohl 50% über dem aktuellen Kurs liegt. Die Altaktionäre sollen sogar noch deutlichst darüber abgefunden werden (Gerüchte sagen mind. 5 Euro).
Bin mal gespannt, ob jetzt wirklich mal was kommt oder ob das wiedermal weiter nach hinten verschoben wird, diese Gerüchte ziehen sich ja nun seit Jahren durch den Markt, aber diesmal scheint es wohl doch ernst zu werden oder vielleichtw ieder nicht.

[Eberhard01]

Hat jemand eine Erklärung für den Absturz auf € 0,25, ohne Meldung etc.?

[heinuun]

Antwort auf Beitrag Nr.: 41.442.680 von Eberhard01 am 03.05.11 09:25:19

stehen doch schon wieder bei 0,49 Euro. Da wurde wohl nur mal wieder der Bid Kurs als letzter Kurs gestellt. Bei 0,49 sind heute 10.000 Stück gegangen

[Eberhard01]

Naja bid € 0,25 zu ask € 0,491 ist schon heftig. Was ist da los?

[peterpan123]

naja hat ja einen kleinen Spresd Lach mich tot

....das ist aber ganz gewaltig etwas im Busch!
Ein Feuer vielleicht.... jungs trommelt jetzt erst recht!!!

Kaufen kurziel 5€

Die armen Anleger

[niemwolf]

Antwort auf Beitrag Nr.: 41.445.848 von Eberhard01 am 03.05.11 17:02:17

Was ist da los

Vielleicht sowas wie bei A1EW0V?

[Eberhard01]

Antwort auf Beitrag Nr.: 41.449.839 von niemwolf am 04.05.11 11:00:17

Kannst du das bitte etwas näher erläutern.

[Eberhard01]

Na ja, hab mal ein bischen quergelesen und verstanden, oooohje.

[niemwolf]

Antwort auf Beitrag Nr.: 41.450.233 von Eberhard01 am 04.05.11 11:54:51

Gut so.

[niemwolf]

Antwort auf Beitrag Nr.: 41.450.233 von Eberhard01 am 04.05.11 11:54:51

Du hast hier vor 3 Monaten schon mal gepostet und heute erst ein bischen quergelesen und verstanden? Ooooohje.

[Eberhard01]

Antwort auf Beitrag Nr.: 41.451.018 von niemwolf am 04.05.11 13:42:36

Hab mich dann auf A1EW0V eingeschossen.

[Eberhard01]

Sehe ich das richtig, dass hier zum einen ein dubioses Düsseldorfer Vertriebsbüro (mit Hut) und zum anderen die Proteo AG behandelt wird?

Wie hängt das eine mit dem anderen zusammen. Proteo ist doch eigentlich aktiv mit einem Wirkstoff Elafin.

Wäre nett wenn jemand das mal kurz und bündig zusammenfassen könnte. Danke.

[niemwolf]

Antwort auf Beitrag Nr.: 41.451.721 von Eberhard01 am 04.05.11 15:30:04

Mach dir nicht die Mühe, dich hier "einzuschiessen". Lohnt nicht. Die Leute, die hier posten, tragen fast alle einen Hut. Er wird nur ab und zu mal abgenommen, damit man auf die Hutträger schimpfen kann. Und zum Antworten wieder aufgesetzt.

Wäre nett wenn jemand das mal kurz und bündig zusammenfassen könnte.

Die Proteo AG ist von den Hüten gegründet worden.

[Eberhard01]

Antwort auf Beitrag Nr.: 41.451.919 von niemwolf am 04.05.11 15:55:08

Hut ab und danke. Hat mich mein Bauch-Gefühl doch nicht verlassen.

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.452.179 von Eberhard01 am 04.05.11 16:23:56

Kurs scheint jetzt aber wieder höher zu sein. Ich glaube, mit "Bauchgefühl" kannst Du hier nicht viel anfangen.

[Eberhard01]

Antwort auf Beitrag Nr.: 41.454.979 von kaubeuhut am 05.05.11 00:01:57

Bid zu ask sind aber abenteuerlich, wie kommt das?

[Eberhard01]

Das Ding hüpft ja ordentlich. Letzte Woche noch 0,23 zu 0,45, heute 0,40 zu 0,53. Letzte Woche nur sporadische Käufe, heute schon sage u. schreibe über 23.000 Stück.

[Pipetwister1]

Moin zusammen, aus dem Umfeld von proteo (Altaktinäre) habe ich heraus gehört, dass eine Mehrheitsbeteiligung oder sogar eine Übernahme kurz bevor steht. Wer hier noch ein paar Stammaktien auf dem Markt ergattern kann, ist vielleicht bald groß raus. Hier ist auch der Grund zu sehen, warum heute 23.000 Stücke gehandelt wurden. Es gibt wohl noch einige andere, die den Braten riechen...
Na schaun mer mal, ob sich das rum spricht... Ich bin gespannt!

[Eberhard01]

Antwort auf Beitrag Nr.: 41.480.886 von Pipetwister1 am 10.05.11 19:38:52

Gibt es auch ne Quellenangabe?. So ist es ja ein Gerücht.

[peterpan123]

und wieder ist ein armer Anleger reingefallen!

https://www.cortalconsors.de/Kurse-Maerkte/Aktien/Kurs-Snaps…

sieht ja super aus!!!!

Ich weiss ja das ist etwas im Busch.....oh je!!!!
Immer weiter so mit den guten Einträgen, bald weiss das jeder!!!

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.490.515 von peterpan123 am 12.05.11 11:15:59

Du solltest Dich in "Peter Panik" umbenennen!

[Eberhard01]

Heute ein Trade mit 10 Stück zu € 5.-. Was wird da gespielt?

[peterpan123]

Fakten Fakten Fakten!!!!!!

@Eberhard01, schau dir doch das orderbuch an, da siehst du wie die Aktien von dem Unternehmen gestellt werden.
ach ne kannst du ja nur im Xetra sehen ach ja auch nicht(schon komisch) lach.
@Pipetwister1
@Kaubeuhut jungs ihr macht den Vertrieb dafür und kennt noch nichtmals den unterschied zwischen Geld und Briefkurs.

uupppsss jetzt ist es raus, also trommeln bist der arzt kommt!!!
Anrufen Opening und Loaden......
scheint aber ein sehr schwacher Vertrieb zu sein, bei den Umsetzen obwohl sooooooviiiieeeellle Gerüchte verbreitet werden. Lach Lach

wünsche trotzdem allen ein traumhaft, schönes, entspanntes, sonniges We!!!!!!!! Enjoy.....

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.496.165 von peterpan123 am 13.05.11 08:55:10

"Peter Panne" wäre noch besser.

[peterpan123]

aber warum den ausfallend werden?

was ist mit Proteo los Minus 30% jungs ihr müßt die Aktien besser reinstellen. Oder gas geben.

Ihr müßtet doch wissen das bei Umsatz schwächeren( Push)
die Aktien getaxt werden.
schaut bei Google nach was Taxen ist von Aktien.LachLach
kleiner Tipp Taxen sind nicht die gelben fahrzeuge.......

Peter Panne hat aber ein Schulabschluß, könnt ihr das auch sagen????

[Eberhard01]

Also merkwürdig ist das Ganze, Gestern ein Handel mit 5 Aktien, dazu ein Spread von 29,88%. Diese geringen Stückzahlen gab es in der Vergangenheit ja schon öfters.
Meldungen bzw. News von Proteo haben auch Seltenheitswert, irgendwie merkwürdig.

[peterpan123]

@Eberhard01 hoffe nicht das du auch reingefallen bist

[Eberhard01]

Und heute wieder 10 Stück gehandelt.

@Peterpan123: Eine Bekannte hat diese Aktien und sie hat mich gebeten mal danach zu schauen. Grund gibt es offensichtlich.

@Kaubeuhut: Du bist anscheinend näher an Proteo dran. Was passiert hier in nächster Zeit. Kannst du etwas dazu sagen?

[Pipetwister1]

Antwort auf Beitrag Nr.: 41.496.583 von peterpan123 am 13.05.11 09:47:12

An peterpan123

wie war das mit dem Schulabschluss? Über den 3.Bildungsweg deutsche Rechtschreibung gelernt? Das ist ja grauslich, was du da schreibst...

Ich bin mit Sicherheit keiner vom Vertrieb - bei einem so geringen Umsatz am Markt, wäre das wirklich schwach!

Warum haust du eigentlich auf die Teilnehmer in diesem Thread so ein? Was treibt dich dazu?

Nun mal zu den Fakten:
Seit über 11 Jahren forscht proteo in Kiel an speziellen Medikamenten zur Behandlung von u.a.Speiseröhrenkrebs und für die Nachbehandlung bei Nierentransplantationen. Der Wirkstoff "Elafin" könnte auch noch bei vielen anderen Krankheiten helfen. Sogar das US AMRID hat das Mittel seit geraumer Zeit in der Prüfung. Diese Informationen sind frei zugänglich, "kaubeuhut" hat hier immer mal wieder berichtet...
Es soll 2.500 Aktionäre geben, hauptsächlich Ärzte und Apotheker, die hier schon von Anfang an finanziell engagiert sind. Diese Fachleute haben dem Unternehmen seinerzeit Geld gegeben, weil sie von einem Erfolg überzeugt waren und immer noch sind. Im Moment Aktien unter 50 Cent zu bekommen, wird am freien Markt nicht leicht sein.

Wenn ein Unternehmen schon so lange forscht und entwickelt und dabei immer noch am Markt ist in der heute schnelllebigen Zeit,spricht das objektiv nur für diese Firma.
Da ist es zwangsläufig voraussehbar, dass große Pharmaunternehmen an diesem Unternehmen gar nicht mehr vorbei kommen. Ausgelaufene Patente anderer Medikamente müssen ersetzt werden und da wird gesucht...

Ich habe keine Beweise, aber in Gesprächen mit Fachleuten aus der Pharmabranche, die teilweise auch Geldgeber waren und noch sind, wird kolportiert, dass eine Mehrheitsbeteiligung oder auch eine komplette Übernahme kurz bevor steht. Wenn das dann zuträfe, sind die Aktien, die man hat, ein Vielfaches wert als bisher. Solange die Tinte auf den Verträgen noch nicht trocken ist, erfahren wir alle nichts wirklich. Aber genau das ist doch die Börse, eine Spekulation in die Zukunft. Ich habe die Spekulation mit "Elafin" gewagt und mir eine gewisse Anzahl Aktien ins Depot gelegt. Sollte ich mich verschätzt haben, werde ich die Stücke auch wieder los. Der Apotheker, den ich kennen gelernt habe, würde mir sicherlich alle Aktien abnehmen. Aber ich möchte gern selber bei "proteo" mit dabei sein.

Bleiben wir gelassen - dein dummes Gequatsche geht mir auf die Nerven. Lern erstmal vernünftiges Deutsch, dann kannst du dich ja mal wieder mit Fakten hier melden.

[peterpan123]

wie recht du doch hast!
durch dein statement sind jetzt bestimmt 99,9% der wallstreet user in diesem Forum gewarnt!

und jetzt tief luft holen, nase ein und mund aus. merkst du schon etwas!
aber gut zu den Fakten:

http://www.wallstreet-online.de/diskussion/1158118-1-10/prot…

das Internet kann nicht vergessen!
Jungs, das ist zu offensichtlich das ihr nur positives postet, das ist nicht gut.

Habe vom Kunden den Zeichnungsschein, Kaufangebot usw. von der btd biotech development GmbH bekommen scheint ja ne richtig gute Firma zu sein. Wahnsinns Internet Präsenz Kein Ansprechpartner

kleiner Tipp genießt lieber das schöne Wetter.....als euch hier so lächerlich zu machen.

[Pipetwister1]

Antwort auf Beitrag Nr.: 41.498.095 von peterpan123 am 13.05.11 12:33:07

Was bist du denn für einer? Du hast von einem Kunden "den Zeichnungsschein und Kaufangebot" erhalten... und dann? Hat er sich engagiert oder hast du ihn davon abgehalten?

Was hast du für eine Firma, die solche Kunden hat? Finanzdienstleister, Makler, Versicherungsvertreter oder noch was ganz anderes? Sag hier doch mal allen, wass du tatsächlich so treibst, außer Sprüche zu klopfen!

Was weißt du von der btd überhaupt? Hast du jemals mit einem von denen gesprochen, telefoniert oder sogar besucht? Wenn du von denen keine Internetpräsenz findest, heißt das noch nicht, dass das alles Betrüger sind. Es gibt genügend Firmen, die betrügerische Internetpräsenzen haben, das ist kein Argument.

"Nur Positives (schreibt man übrigens groß)posten" - was soll man Negatives schreiben, wenn man nichts Negatives dazu sagen kann?

"das Internet kann nicht vergessen" - vollkommen richtig, was du schreibst, bleibt auch bestehen. Hier mag sich jeder seine eigene Meinung bilden.

Du scheinst geistig nicht in der Lage zu sein, Fragen zu verstehen und dann zu beantworten. Kannst du überhaupt argumentieren auf sachlicher Ebene? Dann sag doch mal endlich, was du "mit deinem Kunden" gemacht hast. Hat er sich engagiert oder hast du ihn davon aufgrund deines hervorragendem Börsenwissens davon abhalten können? Was steht denn auf dem Zeichnungsschein und dem Kaufangebot drauf? Welche Bedingungen gab es? Hast du selber mit den Mitarbeitern bei der btd gesprochen oder dich schriftlich ausgetauscht? Wenn du dich selber nicht und dein Kunde auch nicht bei der proteo engagiert hast, was willst du dann eigentlich? Du weißt dann überhaupt nichts und hast auch keine Ahnung - aber davon eine ganze Menge!

Ich will weder was Positives noch was Negatives zu der Diskussion beitragen. Die Zukunft wird zeigen, was aus der "proteo" wird und da wird dein Gelaber auch nichts dran ändern. Es ist nur schade, dass solche Dünnbrettbohrer wie du, soviel Platz finden, ihren geistigen Dünn... vorzutragen.

Wenn du nicht endlich mal tatsächliche Fakten bringst, werde ich auf deine Beiträge nicht mehr reagieren. Ich kann erkennen, dass es hier in diesem Thread Teilnehmer gibt, die wirklich an Informationen interessiert sind und wissen wollen, wie es mit proteo weiter geht. Vermutungen und Verdächtigungen bringen keinen weiter- vielleicht hat kaubeuhut ja mal was wirklich Neues zu berichten, was auch verifiziert werden kann. Verstehst du dieses Fremdwort überhaupt?

Dann leg dich man wieder in die Sonne - dafür scheint dir ja genug Zeit zu bleiben.

[peterpan123]

Bitte reagiere doch garnicht darauf!
Warum denn so aufgebracht?..Wie kommst du denn auf Betrüger??? Das sind deine Worte!
Schon komisch, aber man sagt ja schnell schonmal etwas unüberlegtes wenn man aufgebracht ist.
Denke wir beide und noch jemand anderes hier im Forum wissen wovon wir reden.
Ja und die Zeit habe ich und genieße!
Ach nimm dir doch über das we die Zeit um deinen letzten Eintrag nochmal zu lesen, in der Hoffnung das du ihn auch verstehst!

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.498.483 von Pipetwister1 am 13.05.11 13:25:58

Also, eins dürfte klar sein: Wenn es was zu berichten gibt, was verifiziert bzw. verifizierbar ist, wird "kaubeuhut" dies natürlich sofort tun. Ansonsten ist es ja wohl auch erlaubt, sich "spekulative Gedanken" zu machen, diese zu äussern und zur Diskussion zu stellen. Wenn nicht in diesem Bereich, wo denn dann sonst?

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.502.274 von kaubeuhut am 14.05.11 06:30:49

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

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

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


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


FORM 10-Q


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

(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended March 31, 2011

OR

o 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 000-30728

PROTEO, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


NEVADA 88-0292249
(STATE OR OTHER JURISDICTION OF
INCORPORATION OR ORGANIZATION) (I.R.S. EMPLOYER
IDENTIFICATION NO.)

2102 BUSINESS CENTER DRIVE, IRVINE, CALIFORNIA 92612
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)


[phone](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 such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o.


Indicate by check mark whether the registrant has submitted electronically and posted on its web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o.

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 definition of "large accelerated filer," "an accelerated filer” and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer o Accelerated filer o

Non-accelerated filer o 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 o No x .

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

CLASS NUMBER OF SHARES OUTSTANDING
Common Stock, $0.001 par value 23,879,350 shares of common stock at May 9, 2011



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

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





PROTEO, INC.
AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)

TABLE OF CONTENTS

Page

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements:

Condensed Consolidated Balance Sheets as of March 31, 2011 (unaudited) and December 31, 2010 3

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three-month Periods Ended March 31, 2011 and 2010, and for the Period From November 22, 2000 (Inception) Through March 31, 2011 4

Unaudited Condensed Consolidated Statements of Cash Flows for the Three-month Periods Ended March 31, 2011 and 2010, and for the Period From November 22, 2000 (Inception) Through March 31, 2011 5

Notes to Unaudited Condensed Consolidated Financial Statements 6

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 13

Item 3. Quantitative and Qualitative Disclosure About Market Risk 16

Item 4T. Controls and Procedures 16

PART II. OTHER INFORMATION 17

Item 1. Legal Proceedings 17

Item 1A. Risk Factors 17

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 17

Item 3. Defaults Upon Senior Securities 17

Item 4. [Removed and Reserved] 17

Item 5. Other Information 17

Item 6. Exhibits 17

SIGNATURES 18



2
--------------------------------------------------------------------------------




PART II - FINANCIAL INFORMATION

PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED BALANCE SHEETS

ITEM 1. FINANCIAL STATEMENTS

ASSETS
March 31,
2011 December 31,
2010
(Unaudited)

CURRENT ASSETS
Cash and cash equivalents $ 688,089 $ 698,534
Research supplies 525,314 494,349
Prepaid expenses and other current assets 55,853 33,643
1,269,256 1,226,526

PROPERTY AND EQUIPMENT, NET 167,519 168,168
$ 1,436,775 $ 1,394,694

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 152,382 $ 106,424
Accrued licensing fees 126,891 119,277
279,273 225,701

LONG TERM LIABILITIES
Accrued licensing fees 719,049 675,903
719,049 675,903

COMMITMENTS AND CONTINGENCIES

STOCKHOLDERS' EQUITY
Non-voting preferred stock, par value $0.001 per share; 10,000,000 shares authorized; 661,500 shares issued and outstanding 662 662
Common stock, par value $0.001 per share; 300,000,000 shares authorized; 23,879,350 shares issued and outstanding 23,880 23,880
Additional paid-in capital 8,567,634 8,567,634
Note receivable for sale of preferred stock (902,390 ) (984,400 )
Accumulated other comprehensive income 289,401 169,680
Deficit accumulated during development stage (7,540,734 ) (7,284,366 )
Total Proteo, Inc. Stockholders' Equity 438,453 493,090
Noncontrolling Interest - -
Total Stockholders' Equity 438,453 493,090
Total Liabilities and Stockholders' Equity $ 1,436,775 $ 1,394,694



SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


3
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2011 AND 2010
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH MARCH 31, 2011

THREE MONTHS ENDED
MARCH 31, NOVEMBER 22,
2000
(INCEPTION)
THROUGH
MARCH 31,
2011 2010 2011
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

REVENUES $ - $ - $ -

EXPENSES
General and administrative 77,560 54,781 4,818,355
Research and development 96,860 115,783 3,145,751
174,420 170,564 7,964,106
INTEREST AND OTHER INCOME (EXPENSE), NET (81,948 ) 55,289 360,430
NET LOSS (256,368 ) (115,275 ) (7,603,676 )

LESS: NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST - - 63,004
NET LOSS ATTRIBUTABLE TO PROTEO, INC. (256,368 ) (115,275 ) (7,540,672 )

PREFERRED STOCK DIVIDEND - - (62 )
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS $ (256,368 ) $ (115,275 ) $ (7,540,734 )
BASIC AND DILUTED LOSS ATTRIBUTABLE TO PROTEO, INC.
COMMON SHAREHOLDERS $ (0.01 ) $ (0.00 )

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING 23,879,350 23,879,350



CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

NET LOSS ATTRIBUTABLE TO PROTEO, INC. $ (256,368 ) $ (115,275 ) $ (7,540,672 )

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS 119,721 (111,169 ) 289,401
COMPREHENSIVE LOSS $ (136,647 ) $ (226,444 ) $ (7,251,271 )



SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


4
--------------------------------------------------------------------------------



PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE MONTH PERIODS ENDED MARCH 31, 2011 AND 2010
AND FOR THE PERIOD FROM NOVEMBER 22, 2000 (INCEPTION) THROUGH MARCH 31, 2011

THREE MONTHS ENDED
MARCH 31, NOVEMBER 22,
2000
(INCEPTION)
THROUGH
MARCH 31,
2011 2010 2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss attributable to Proteo, Inc. $ (256,368 ) $ (115,275 ) $ (7,540,672 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation 11,877 12,928 451,223
Bad debt expense - - 60,408
Loss on disposal of equipment - - 4,518
Foreign currency transaction losses (gains) 85,491 (52,680 ) 177,061
Changes in operating assets and liabilities:
Research supplies 573 12,737 (539,110 )
Prepaid expenses and other current assets (22,649 ) 24,240 (157,834 )
Accounts payable and accrued liabilities 44,665 (87,496 ) 122,560
Deferred fees - - 11,944
Accrued licensing fees - - 660,713
NET CASH USED IN OPERATING ACTIVITIES (136,411 ) (205,546 ) (6,749,189 )

CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment (843 ) - (635,716 )
Cash of reorganized entity - - 27,638
NET CASH USED IN INVESTING ACTIVITIES (843 ) 0 (608,078 )

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock - - 1,792,610
Proceeds from subscribed common stock and issuance of preferred stock to related party 82,010 36,199 5,888,585
NET CASH PROVIDED BY FINANCING ACTIVITIES 82,010 36,199 7,681,195
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 44,799 (71,213 ) 364,161
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (10,445 ) (240,560 ) 688,089
CASH AND CASH EQUIVALENTS--BEGINNING OF PERIOD 698,534 689,126 -
CASH AND CASH EQUIVALENTS--END OF PERIOD $ 688,089 $ 448,566 $ 688,089

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Preferred stock dividend $ - $ - $ 62

Common stock issued for subscriptions receivable $ - $ - $ 1,627,755

Net assets (excluding cash) of reorganized entity received in exchange for equity securities $ - $ - $ 8,509

Unpaid balance of note receivable for issuance of preferred stock $ - $ - $ 2,245,389



SEE ACCOMPANYING NOTES TO THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


5
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2011 (UNAUDITED)

1. NATURE OF BUSINESS AND BASIS OF PRESENTATION

BASIS OF PRESENTATION

The accompanying condensed consolidated balance sheet as of December 31, 2010, which has been derived from audited financial statements, and the accompanying interim condensed consolidated financial statements as of March 31, 2011, for the three-month periods ended March 31, 2011 and 2010, and for the period from November 22, 2000 (Inception) through March 31, 2011 have been prepared by management pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. These interim condensed consolidated financial statements are unaudited and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments and accruals) necessary to present fairly the financial condition, results of operations and cash flows of Proteo, Inc and its wholly owned subsidiary (hereinafter collectively referred to as the "Company") as of and for the periods presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Operating results for the three-month period ended March 31, 2011 are not necessarily indicative of the results that may be expected for the year ending December 31, 2011 or for any other interim period during such year. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted in accordance with the rules and regulations of the SEC. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2010 filed with the SEC on March 15, 2011.

NATURE OF BUSINESS

The Company is a clinical stage drug development company focusing on the development of anti-inflammatory treatments for rare diseases with significant unmet needs. The Company's management deems its lead drug candidate Elafin for intravenous use to be one of the most prospective treatments of postoperative inflammatory complications in the surgical therapy of esophagus carcinoma, kidney transplantation and coronary arterial bypass surgery. Elafin appears to be also a promising compound for the treatment of pulmonary arterial hypertension. The clinical development is currently focused in Europe with the intention to receive the primary approval in Europe.

The products that the Company is developing are considered drugs or biologics, and hence are governed by the Federal Food, Drug and Cosmetics Act (in the United States) and the regulations of State and various foreign government agencies. The Company's proposed pharmaceutical products to be used by humans are subject to certain clearance procedures administered by the above regulatory agencies.

Since its inception, the Company has primarily been engaged in the research and development of its proprietary product Elafin. Once the research and development phase is complete, the Company intends to seek the various governmental regulatory approvals for the marketing of Elafin. Management believes that none of its planned products will produce sufficient revenues in the near future. As a result, the Company intends to generate revenue by out-licensing and marketing activities. There are no assurances, however, that the Company will be able to develop such products, or if produced, that they will be accepted in the marketplace.

From time to time, the Company enters into collaborative arrangements for the research and development (R&D), manufacture and/or commercialization of products and product candidates. These collaborations may provide for non-refundable, upfront license fees, R&D and commercial performance milestone payments, cost sharing, royalty payments and/or profit sharing. The Company's collaboration agreements with third parties are generally performed on a “best efforts” basis with no guarantee of either technological or commercial success.

Proteo, Inc.'s common stock is currently quoted on the OTC QB under the symbol "PTEO".

DEVELOPMENT STAGE AND GOING CONCERN CONSIDERATIONS

The Company has been in the development stage since it began operations on November 22, 2000, and has not generated any significant revenues from operations. Management plans to generate revenues from out-licensing and product sales, but there is no commitment by any persons for license of the company’s proprietary intellectual property or the purchase of any of the proposed products and there is no assurance of any future revenue. The Company will require substantial additional funding for continuing research and development, obtaining regulatory approvals and for the commercialization of its product. There can be no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.


6
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2011 (UNAUDITED)

DEVELOPMENT STAGE AND GOING CONCERN CONSIDERATIONS (continued)


Management has taken action to address these matters, which include:

● Retention of experienced management personnel with particular skills in the development of such products;

● Attainment of technology to develop biotech products; and

● Raising additional funds through the sale of debt and/or equity securities.


In the absence of significant sales and profits, the Company may seek to raise funds to meet its future working capital requirements through the additional sales of debt and/or equity securities. There is no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.

These circumstances, among others, raise concerns about the Company's ability to continue as a going concern. The accompanying condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

CONCENTRATIONS

The Company maintains substantially all of its cash in bank accounts at a German private commercial bank. The Company's bank accounts at this financial institution are presently protected by the voluntary "Deposit Protection Fund of The German Private Commercial Banks". The Company has not experienced any losses in these accounts.

Proteo, Inc.'s operations, including research and development activities and most of its assets are located in Germany. The Company's operations are subject to various political, economic, and other risks and uncertainties inherent in Germany and the European Union.

OTHER RISKS AND UNCERTAINTIES

Proteo, Inc.'s line of future pharmaceutical products being developed by its German subsidiary are considered drugs or biologics, and as such, are governed by the Federal Food, Drug and Cosmetics Act (in the United States) and by the regulations of State agencies and various foreign government agencies. There can be no assurances that the Company will obtain the regulatory approvals required to market its products. The pharmaceutical products under development in Germany will be subject to more stringent regulatory requirements because they are recombinant products for humans. The Company has no experience in obtaining regulatory clearance on these types of products. Therefore, the Company will be subject to the risks of delays in obtaining or failing to obtain regulatory clearance and other uncertainties, including financial, operational, technological, regulatory and other risks associated with an emerging business, including the potential risk of business failure.

The Company is exposed to risks related to fluctuations in foreign currency exchange rates. Management does not utilize derivative instruments to hedge against such exposure.

PRINCIPLES OF CONSOLIDATION

The condensed consolidated financial statements have been prepared in accordance with GAAP and include the accounts of Proteo, Inc. and Proteo Biotech AG, its wholly owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation.

Effective January 1, 2009, the Company adopted new guidance to the Consolidation Topic of the Financial Accounting Standard Board’s (“FASB”) new Accounting Standards Codification (“ASC” or “Codification”). This guidance improves the relevance, comparability and transparency of the financial information that a company provides in its consolidated financial statements by establishing accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This standard requires the Company to classify noncontrolling interests (previously referred to as "minority interest") as part of consolidated net earnings and to include the accumulated amount of noncontrolling interests as part of stockholders' equity.


7
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2011 (UNAUDITED)

PRINCIPLES OF CONSOLIDATION (continued)


The net loss amounts the Company has previously reported are now presented as "Net loss attributable to Proteo, Inc" and, as required by the Codification, loss per share continues to reflect amounts attributable only to the Company. Similarly, in the presentation of stockholders' equity, the Company distinguishes between equity amounts attributable to the Company's stockholders and amounts attributable to the noncontrolling interest - previously classified as minority interest outside of stockholders' equity. In addition to these financial reporting changes, this guidance provides for significant changes in accounting related to noncontrolling interests; specifically, increases and decreases in the Company's controlling financial interests in consolidated subsidiaries will be reported in equity similar to treasury stock transactions. If a change in ownership of a consolidated subsidiary results in loss of control and deconsolidation, any retained ownership interests are remeasured with the gain or loss reported in net earnings. Except for presentation, the implementation of this guidance did not have a material effect on the Company's condensed consolidated financial statements because a substantive contractual arrangement specifies the attribution of net earnings and loss not to exceed the noncontrolling interest.


RESEARCH SUPPLIES


The Company capitalizes the cost of supplies used in its research and development activities. Such costs are expensed as used to research and development expenses in the accompanying condensed consolidated statements of operations.


FAIR VALUE OF FINANCIAL INSTRUMENTS AND CERTAIN OTHER ASSETS/LIABILITIES

The Fair Value Measurements and Disclosures Topic of the ASC requires disclosure of fair value information about financial instruments when it is practicable to estimate that value. Management believes that the carrying amounts of the Company's financial instruments, consisting primarily of cash, accounts payable and accrued expenses, approximate their fair value at March 31, 2011 due to their short-term nature. The Company does not have any assets or liabilities that are measured at fair value on a recurring basis and, during the three-month periods ended March 31, 2011 and 2010 and for the period from November 22, 2000 (Inception) through March 31, 2011, did not have any assets or liabilities that were measured at fair value on a non-recurring basis.

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS

The Company adopted the FASB’s new ASC as the single source of authoritative accounting guidance under the Generally Accepted Accounting Principles Topic. The ASC does not create new accounting and reporting guidance, rather it reorganizes GAAP pronouncements into approximately 90 topics within a consistent structure. All guidance in the ASC carries an equal level of authority. Relevant portions of authoritative content, issued by the SEC, for SEC registrants, have been included in the ASC. After the effective date of the Codification, all nongrandfathered, non-SEC accounting literature not included in the ASC is superseded and deemed nonauthoritative. Adoption of the Codification also changed how the Company references GAAP in its condensed consolidated financial statements.


In April 2010, the FASB issued Accounting Standards Update No. 2010-17. This Update provides guidance on defining a milestone under Topic 605 and determining when it may be appropriate to apply the milestone method of revenue recognition for research or development transactions. Consideration that is contingent on achievement of a milestone in its entirety may be recognized as revenue in the period in which the milestone is achieved only if the milestone is judged to meet certain criteria to be considered substantive. Milestones should be considered substantive in their entirety and may not be bifurcated. An arrangement may contain both substantive and nonsubstantive milestones that should be evaluated individually. The adoption of this Update on January 2, 2011 had no material impact.



8
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2011 (UNAUDITED)

SIGNIFICANT RECENT ACCOUNTING PRONOUNCEMENTS (continued)

Except as described above, in the opinion of management, neither the FASB, its Emerging Issues Task Force, the AICPA, nor the SEC have issued any additional accounting pronouncements since the Company filed its December 31, 2010, Form 10-K that are expected to have material impact on the Company's future consolidated financial statements.


2. STOCK SUBSCRIPTIONS RECEIVABLE AND OTHER EQUITY TRANSACTIONS

The Company is authorized to issue 10,000,000 shares of preferred stock, $0.001 par value. Except as described below, the Board of Directors has not designated any liquidation value, dividend rates or other rights or preferences with respect to any shares of preferred stock.

The Board of Directors has designated 750,000 preferred shares as non-voting Series A Preferred Stock. As more fully described in the Company’s Form 8-K filed with the SEC on June 11, 2008, holders of Series A Preferred Stock are entitled to receive preferential dividends, if and when declared, at the per share rate of twice the per share amount of any cash or non-cash dividend distributed to holders of the Company's common stock. If no dividend is distributed to common stockholders, the holders of Series A Preferred Stock are entitled to an annual stock dividend payable at the rate of one share of Series A Preferred Stock for each twenty shares of Series A Preferred Stock owned by each holder of Series A Preferred Stock. The annual stock dividend shall be paid on June 30 of each year commencing in 2009 and no stock dividends will be paid after December 31, 2011.


The Company entered into a Preferred Stock Purchase Agreement, as amended, for preferred shares sold in 2008. During the three-month period ended March 31, 2011, the Company received payments approximating $82,000, in connection with this agreement. The note receivable approximated $902,000 at March 31, 2011.


There were no issuances of common stock during the three-month periods ended March 31, 2011 and 2010, nor have any stock options been granted from inception to date.

3. LOSS PER COMMON SHARE

Basic loss per common share is computed based on the weighted average number of shares outstanding for the period. Diluted loss per common share is computed by dividing net loss attributable to common stockholders by the weighted average shares outstanding assuming all dilutive potential common shares were issued. There were no dilutive potential common shares outstanding at March 31, 2011 and 2010. Additionally, there were no adjustments to net loss to determine net loss available to common shareholders. As such, basic and diluted loss per common share equals net loss, as reported, divided by the weighted average common shares outstanding for the respective periods.



9
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2011 (UNAUDITED)

4. FOREIGN CURRENCY TRANSLATION

Assets and liabilities of the Company's German operations are translated from Euros (the functional currency) into U.S. dollars (the reporting currency) at period-end exchange rates; equity transactions are translated at historical rates; and income and expenses are translated at weighted average exchange rates for the period. Net foreign currency exchange gains or losses resulting from such translations are excluded from the results of operations but are included in other comprehensive income and accumulated in a separate component of stockholders' equity. Accumulated comprehensive income approximated $289,000 at March 31, 2011 and $170,000 at December 31, 2010.

5. FOREIGN CURRENCY TRANSACTIONS

The Company records payables related to a certain licensing agreement (Note 7) in accordance with the Foreign Currency Matters Topic of the Codification. Quarterly commitments under such agreement are denominated in Euros. For each reporting period, the Company translates the quarterly amount to U.S. dollars at the exchange rate effective on that date. If the exchange rate changes between when the liability is incurred and the time payment is made, a foreign exchange gain or loss results. The Company has made no payments under this licensing agreement during the three-month periods ended March 31, 2011 and 2010, and, therefore, has not realized any significant foreign currency exchanges gains or losses during these periods.

Additionally, the Company computes a foreign exchange gain or loss at each balance sheet date on all recorded transactions denominated in foreign currencies that have not been settled. The difference between the exchange rate that could have been used to settle the transaction on the date it occurred and the exchange rate at the balance sheet date is the gain or loss that is currently recognized. The Company recorded foreign currency transaction (losses) gains of approximately $(85,000) and $53,000 for the three-month periods ended March 31, 2011 and 2010, which are included in interest and other income (expense), net in the accompanying condensed consolidated statements of operations and comprehensive loss.

6. SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION

The Company considers itself to operate in one segment and has not generated any significant operating revenues since its inception. All of the Company's property and equipment is located in Germany.


10
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2011 (UNAUDITED)

7. DR. WIEDOW LICENSE AGREEMENT

On December 30, 2000, the Company entered into a thirty-year license agreement, beginning January 1, 2001 (the "License Agreement"), with Dr. Oliver Wiedow, MD, the owner and inventor of several patents, patent rights and technologies related to Elafin. Pursuant to the License Agreement, the Company agreed to pay Dr. Wiedow an annual license fee of 110,000 Euros for a period of six years. No payments were made through fiscal year 2003. In 2004, the License Agreement was amended to require the Company to make annual payments of 30,000 Euros, to be paid on July 15 of each year, beginning in 2004. Such annual payment could be increased to 110,000 Euros by June 1 of each year based on an assessment of the Company's financial ability to make such payments. In December 2007 the Company paid Dr. Wiedow 30,000 Euros. The License Agreement was again amended by an Amendment Agreement to the License Agreement (the "Amendment") dated December 23, 2008. Pursuant to the Amendment, the Company and Dr. Wiedow agreed that the Company would pay the outstanding balance of 630,000 Euros to Dr. Wiedow as follows: for fiscal years 2008 to 2012, the Company shall pay Dr. Wiedow 30,000 Euros per year, and for fiscal years 2013 to 2016, the Company shall pay Dr. Wiedow 120,000 Euros per year. The foregoing payments shall be made on or before December 31 of each fiscal year. In December 2008 the Company paid Dr. Wiedow 30,000 Euros. No payments were made under this agreement during 2009, 2010 or the three-months ended March 31, 2011. While the total amount owed does not currently bear interest, the Amendment provides that any late payment shall be subject to interest at an annual rate equal to the German Base Interest Rate (0.12% as of January 1, 2011) plus six percent. In the event that the Company's financial condition improves, the parties can agree to increase and/or accelerate the payments.

The Amendment also modified the royalty payment such that from the date of the Amendment the Company will not only pay Dr. Wiedow a three percent royalty on gross revenues from the Company's sale of products based on the licensed technology but also three percent of the license fees (including upfront and milestone payments and running royalties) received by the Company or its subsidiary from their sublicensing of the licensed technology. At March 31, 2011, the Company has accrued approximately $846,000.

Dr. Wiedow, who is a director of the Company, beneficially owned approximately 45% of the Company's outstanding common stock as of March 31, 2011.

8. INCOME TAXES


The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Management evaluates the need to establish a valuation allowance for deferred tax assets based upon the amount of existing temporary differences, the period in which they are expected to be recovered and expected levels of taxable income. A valuation allowance to reduce deferred tax assets is established when it is “more likely than not” that some or all of the deferred tax assets will not be realized. Management has determined that a full valuation allowance against the Company’s net deferred tax assets is appropriate.


There is no material income tax expense recorded for the periods ended March 31, 2011 and 2010, due to the Company's net losses and related changes to the valuation allowance for deferred tax assets.


As of March 31, 2011, the Company has a deferred tax asset and an equal amount of valuation allowance of approximately $2,076,000, relating primarily to federal and foreign net operating loss carryforwards of approximately $483,000 and $1,309,000, respectively, as discussed below, and timing differences related to the recognition of accrued licensing fees of approximately $285,000.



11
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PROTEO, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2011 (UNAUDITED)

8. INCOME TAXES (continued)


The Company has federal and foreign net operating loss carry forwards approximating $1,420,000 and $5,235,000, respectively at March 31, 2011, which are expected to begin expiring in 2025 for federal purpose and for foreign purpose it has an indefinite life.


Utilization of the net operating losses (“NOL”) carry forwards may be subject to a substantial annual limitation due to ownership change limitations that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), as well as similar state and foreign provisions. These ownership changes may limit the amount of NOL carryforwards that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points of the market value of a company by certain stockholders or public groups. Due to the existence of the valuation allowance, future changes in the Company’s unrecognized tax benefits will not impact its effective tax rate. Any carry forwards that may expire prior to utilization as a result of such limitations will be removed, if applicable, from deferred tax assets with a corresponding reduction of the valuation allowance.


Based on management’s evaluation of uncertainty in income taxes, the Company concluded that there were no significant uncertain tax positions requiring recognition in its financial statements or related disclosures. Accordingly, no adjustments to recorded tax liabilities or accumulated deficit were required. As of March 31, 2011, there were no increases or decreases to liability for income taxes associated with uncertain tax positions.



12
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAUTIONARY STATEMENTS:

This Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company intends that such forward-looking statements be subject to the safe harbors created by such statutes. The forward-looking statements included herein are based on current expectations that involve a number of risks and uncertainties. Accordingly, to the extent that this Quarterly Report contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of the Company, please be advised that the Company's actual financial condition, operating results and business performance may differ materially from that projected or estimated by management in forward-looking statements.

Such differences may be caused by a variety of factors, including but not limited to adverse economic conditions, intense competition, including intensification of price competition and entry of new competitors and products, adverse federal, state and local government regulation, inadequate capital, unexpected costs and operating deficits, increases in general and administrative costs and other specific risks that may be alluded to in this Quarterly Report or in other reports issued by the Company. In addition, the business and operations of the Company are subject to substantial risks that increase the uncertainty inherent in the forward-looking statements. The inclusion of forward looking statements in this Quarterly Report should not be regarded as a representation by management or any other person that the objectives or plans of the Company will be achieved.

Since inception, the Company has generated a relatively minor amount of non-operating revenue from its licensing activities and does not expect to report any significant operating revenue until the successful development and marketing of its planned pharmaceutical and other biotech products. Additionally, after the launch of the Company's products, there can be no assurance that the Company will generate positive cash flow and there can be no assurances as to the level of revenues, if any, the Company may actually achieve from its planned principal operations.

OVERVIEW

The Company is a clinical stage drug development company focusing on the development of anti-inflammatory treatments for rare diseases with significant unmet needs. The Company's management deems its lead drug candidate Elafin for intravenous use to be one of the most prospective treatments of postoperative inflammatory complications in the surgical therapy of esophagus carcinoma, kidney transplantation and coronary arterial bypass surgery. Elafin appears to be also a promising compound for the treatment of pulmonary arterial hypertension. The clinical development is currently focused in Europe with the intention to receive the primary approval in Europe.


The Company's success will depend on its ability to prove that Elafin is well tolerated by humans and its efficacy in the indicated diseases in order to demonstrate a favorable risk/benefit balance. There can be no assurance that the Company will be able to develop feasible production procedures in accordance with Good Manufacturing Practices ("GMP") standards, or that Elafin will receive any governmental approval for its use in further clinical trials or its use as a drug in any of the intended applications.


Proteo has obtained Orphan drug designations within the European Union for the use of Elafin in treatment for the treatment of pulmonary arterial hypertension and chronic thromboembolic pulmonary hypertension as well as for the treatment of esophagus carcinoma. Orphan drug designation assures exclusive marketing rights for the treatment of the respective disease within the EU for a period of up to ten years after receiving market approval. In addition, a simplified, accelerated and less expensive approval procedure with the assistance of European Medicines Agency (“EMA”), the European FDA equivalent, can be drawn upon.


Proteo currently focuses on the development of Elafin for treatment of postoperative inflammatory complications in the surgical therapy of esophagus carcinoma. Clinical trials for further indications and preclinical research into new fields of application are conducted in cooperation with Universities and our licensing partner Minapharm.


Proteo has presented the current status of the clinical development on the Biochemical Society Meeting - Structure and function of Whey Acidic protein 4-disulphide core proteins – in Cambridge on April 2011.


CLINICAL DEVELOPMENT


After developing a production procedure for Elafin, the Company has initiated clinical trials to achieve governmental approval for the use of Elafin as a drug in Europe. For this purpose, the Company has contracted an experienced Contract Manufacturing Organization in Europe to produce Elafin in accordance with GMP standards as required for clinical trials. The excellent tolerability of Elafin in human subjects was demonstrated in a Phase I clinical single dose escalating study.


13
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Treatment of Esophagus Carcinoma


A double-blind, randomized, placebo-controlled Phase II clinical trial on the effect of Elafin on the postoperative inflammatory reactions and postoperative clinical course was conducted in patients undergoing esophagectomy for esophagus carcinoma was begun in November 2008. In summer 2009 it became apparent that the clinical trial center could not recruit sufficient numbers of patients to meet the planning. Thus, the Company has extended the monocentric trial to a multicentric trial involving two additional trial centers. We announced the favorable influence of Elafin treatment on the postoperative recovery in February 2011. In January 2010 Orphan Drug Designation was awarded to the Company by the European Commission for the use of Elafin in the treatment of esophagus carcinoma. The future clinical development and prerequisites for marketing authorization are currently subject to discussions with the EMA.


Treatment of Coronary Bypass Patients


In September 2009 the Company signed a Memorandum of Understanding with the University of Edinburgh. Within the framework of collaboration, it is intended to conduct a Phase II clinical trial to investigate the effect of Elafin on the damage and inflammation of cardiac muscle after coronary bypass operations. The trial will be headed by Dr. Peter Henriksen a leading expert in interventional cardiology at the Edinburgh Heart Centre. The study will be funded by the Medical Research Council (MRC) and Chest Heart and Stroke Scotland (CHSS) with 500,000 GBP. In February 2011 this clinical trial application with 80 patients has received approval by the responsible Ethics Committee of NHS Scotland and was submitted to the MHRA, the British FDA equivalent, at the end of March 2011.


Treatment of Kidney Transplantation


The Company’s licensing and development partner, Minapharm Pharmaceuticals SAE, has initiated a Phase II clinical trial on the use of Elafin in kidney transplantation patients. This trial is concerned with the prevention of acute organ rejection and chronic graft injury (allograft nephropathy) and will be conducted at the University of Cairo. The start and conduct of the trial may be influenced by the actual political situation in Egypt. Actually, the consequences cannot be overseen by management.


PRECLINICAL RESEARCH


Pulmonary arterial Hypertension


Since 2008, the Company cooperates with scientists at Stanford University in California with respect to the preclinical development in the field of pulmonary arterial hypertension and ventilation induced injury. The group presented new preclinical data on the Company’s drug substance Elafin at the Annual International Conference of the American Thoracic Society in New Orleans in May 2010. The data show that the treatment with Elafin during mechanical ventilation largely prevented the inflammation in lungs of newborn mice. In August 2010 the cooperation agreement with Stanford University was extended by a further project.


Vascular damage


The Company entered into an agreement with the Molecular Imaging North Competence Center (MOIN CC) at the Christian-Albrechts-University of Kiel in April 2010. Under this agreement the effects of Elafin on vascular changes will be examined in animal models. The federal state of Schleswig-Holstein is backing the creation and infrastructure of MOIN CC with 8.2 million EUR using funding from the federal state and the European Regional Development Fund (ERDF), as well as resources from the second German economic stimulus package.


Life-threating Infections


In June 2010 the Company signed a cooperative research and development agreement with the US Army Medical Research Institute of Infectious Diseases (USAMRIID). This agreement allows USAMRIID to use Proteo's Elafin and related scientific data in order to plan and conduct preclinical research on the development of new therapeutic strategies to combat life-threatening infectious diseases, in an investigation into the use of Elafin as a co-therapy with antibiotics.


14
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RESULTS OF OPERATIONS

OPERATING EXPENSES

The Company's operating expenses for the three-month period ended March 31, 2011 approximated $174,000, an increase of approximately $4,000 over the respective period of the prior year. General and administrative expenses (mostly professional and legal fees) for the three-month period increased $23,000, and research and development expenses decreased $19,000 over the same period.


INTEREST AND OTHER INCOME (EXPENSE)

Net interest and other income (expense) for the three-month period ended March 31, 2011 approximated ($82,000), compared to $55,000 for the respective period in 2010, a net change of approximately ($137,000). The decrease is driven primarily by foreign currency transaction losses in 2011 caused by the weakening of the U.S. Dollar compared to the Euro.

INCOME TAXES

There is no material income tax expense recorded for the periods ended March 31, 2011 and 2010, due to the Company's net losses. As of March 31, 2011, the Company has a deferred tax asset and an equal amount of valuation allowance of approximately $2,076,000, relating primarily to federal and foreign net operating loss carryforwards of approximately $483,000 and $1,309,000, respectively, as discussed below, and timing differences related to the recognition of accrued licensing fees of approximately $285,000.


The Company has federal and foreign net operating loss carry forwards approximating $1,420,000 and $5,235,000, respectively at March 31, 2011, which are expected to begin expiring in 2025 for federal purpose and for foreign purpose it has an indefinite life. In the event the Company were to experience a greater than 50% change in ownership, as defined in Section 382 of the Internal Revenue Code, the utilization of the Company's tax NOLs could be severely restricted.

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS

The Company experienced a net gain (loss) of approximately $120,000 and $(111,000) in foreign currency translation adjustments during the three-month periods ended March 31, 2011 and 2010, respectively. The changes are primarily due to a fluctuating U.S. Dollar (our reporting currency) compared to the Euro (our functional currency) during the periods.

LIQUIDITY AND CAPITAL RESOURCES

Since our inception we have raised a total of (i) approximately $4,983,000 from the sale of 20,065,428 shares of our common stock, of which 6,585,487 shares, 300,000 shares and 1,500,000 shares have been sold at $0.40 per share, $0.84 per share and $0.60 per share, respectively, under stock subscription agreements in the amount of approximately $2,035,000, $252,000 and $900,000, respectively, and (ii) $1,829,000 from the sale of 600,000 shares of the Company's non-voting Series A Preferred Stock. The balance of the purchase price for the Series A Preferred Stock is evidenced by a promissory note which, as of March 31, 2011, had a principal balance of approximately $902,000. See Note 2 to the condensed consolidated financial statements included elsewhere herein for the payment terms under the promissory note.

The Company has cash approximating $688,000 as of March 31, 2011 to support current and future operations. This is a decrease of $10,000 over the December 31, 2010 cash balance of approximately $698,000.

Management believes that the Company will not generate any significant revenues in the next few years, nor will it have sufficient cash to fund future operations. As a result, the Company's success will largely depend on its ability to generate revenues from out-licensing activities, secure additional funding through the sale of its common stock, preferred stock and/or debt securities. There can be no assurance, however, that the Company will be able to generate revenues from out-licensing activities and/or to consummate a debt or equity financing in a timely manner, or on terms favorable to the Company, if at all.


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GOING CONCERN

The Company's independent registered public accounting firm stated in their Auditors’ Report included in the Company’s Form 10-K for the year ended December 31, 2010 filed with the Securities and Exchange Commission on March 15, 2011, that the Company will require a significant amount of additional capital to advance the Company's products to the point where they may become commercially viable and has incurred significant losses since inception. These conditions, among others, raise substantial doubt about the Company's ability to continue as a going concern. Therefore, the Company will be required to seek additional funds to finance its long-term operations. The successful outcome of future activities cannot be determined at this time and there is no assurance that if achieved, the Company will have sufficient funds to execute its intended business plan or generate positive operating results.


OFF BALANCE SHEET ARRANGEMENTS

The Company does not currently have any off balance sheet arrangements.

CAPITAL EXPENDITURES

None significant.


ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

A smaller reporting company ("SRC") is not required to provide any information in response to Item 305 of Regulation S-K.

ITEM 4T. CONTROLS AND PROCEDURES

a) Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including to Birge Bargmann our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15 under the Exchange Act, our management, including Birge Bargmann our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2011. Based on that evaluation, Ms. Bargmann concluded that as of March 31, 2011, and as of the date that the evaluation of the effectiveness of our disclosure controls and procedures was completed, our disclosure controls and procedures were effective.

b) Changes in Internal Control Over Financial Reporting

Our management, with the participation of the Chief Executive Officer and Chief Financial Officer, has concluded there were no significant changes in our internal controls over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.


16
--------------------------------------------------------------------------------



PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

None.

ITEM 1A. RISK FACTORS

Not required for SRCs.

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.

Exhibits:

31.1 Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.


31.2 Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.


32 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.




17
--------------------------------------------------------------------------------



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.

PROTEO, INC.

Dated: May 12, 2011 By: /s/ Birge Bargmann
Birge Bargmann
Principal Executive Officer and Chief Financial Officer
(signed both as an Officer duly authorized to sign on behalf of the Registrant and Principal Financial Officer and Chief Accounting Officer)





18

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

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.496.583 von peterpan123 am 13.05.11 09:47:12

Das mit dem Schulabschluss glaube ich Dir unbesehen. Auf der Baumschule".

[Eberhard01]

Antwort auf Beitrag Nr.: 41.502.289 von kaubeuhut am 14.05.11 07:08:35

Gibt es irgendwo eine Übersetzung oder einen Link wo man das Dokument besser formatiert findet. (Formatierung bei w0 ist ein Katastrophe)

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.503.007 von Eberhard01 am 14.05.11 13:28:27

Nicht die wo-Formatierung ist eine Katastrophe, vielmehr ist das US-Blattformat "breiter und dafür kürzer" als DIN A4.

Also:

1.) Adresse "sec.gov" eingeben
2.) "Filings & Forms" anklicken
3.) "Search for Company Filngs" anklicken
4.) "Company or fund name, ticker symbol ..." anklicken
5.) "proteo" in das Suchfenster eingben
6.) "Find Companies" anklicken
7.) "0001063104" anklicken
8.) "Documents" anklicken

[Artishoppe]

Es gibt ein neues Studienergebnis aus der Stanford University, Abteilung für Kinderheilkunde datiert vom 11. Mai 2011. Es geht hier um eine Versuchsreihe bei neugeborenen Mäusen. In der Schlussfolgerung dieser Studie wird angegeben, dass die durch künstlich erzeugte Proteasenaktivität (infolge mechanischer Beatmung mit hohem O2-Anteil) durch Elafin blockiert wird, und daß dies ein Therapieziel sein könnte, um das defekte Lungenwachstum nach einer solchen mechanischen Beatmung zu verhindern. Das ist eine sehr gute Nachricht über die Substanz Elafin! http://www.pubmed.de/data/nlm.link.html

[Artishoppe]

Es wird jetzt nur noch ein kleiner Schritt sein, um die schweren Folgeschäden bei Frühgeborenen Kindern, die infolge der künstlichen Beatmung bislang unausweichlich sind, mit Elafin verhindern zu wollen.
Da es bislang für dieses Krankheisbild keine greifende Therapieoption gibt, bleibt Elafin als einzige vielversprechende Möglichkeit übrig.
Eigentlich wäre es unethisch, nicht sofort an die Arbeit zu gehen mit einer Phase II- Studie bei Frühgeborenen. Ich denke, das wissen die Forscher in Stanford noch viel besser. Da wird schnell was geschehen. Hier kann man sich nämlich grosse Forschungslorbeeren verdienen.
Das ist erst der Beginn! Sobald die Substanz bei Kindern eingesetzt worden sein wird, will jeder damit arbeiten.
Ich bin gespannt auf die nächste Zeit! Über den Kurs der Aktie würde ich nicht zuviel nachdenken, wenn bei so kleinen Umsätzen der Kurs springt. Das eigentlich Interessante ist doch die Story, die da gerade beginnt!

[kaubeuhut]

Sehe ich genauso.

> Am J Respir Crit Care Med. 2011 May 11. [Epub ahead of print]
Inhibiting Lung Elastase Activity Enables Lung Growth in Mechanically Ventilated Newborn Mice.
Hilgendorff A, Parai K, Ertsey R, Jain N, Navarro EF, Peterson JL, Tamosiuniene R, Nicolls MR, Starcher BC, Rabinovitch M, Bland RD.
SourcePediatrics, Stanford University, Stanford, California, United States.

Abstract
RATIONALE: Mechanical ventilation with O2-rich gas (MV-O2) offers life-saving treatment for respiratory failure, but also promotes lung injury. We previously reported that MV-O2 of newborn mice increased lung elastase activity, causing elastin degradation and redistribution of elastic fibers from septal tips to alveolar walls. These changes were associated with TGFβ activation and increased apoptosis leading to defective alveolarization and lung growth arrest, as seen in neonatal chronic lung disease.

OBJECTIVES: To determine if intra-tracheal treatment of newborn mice with the serine elastase inhibitor elafin would prevent MV-O2-induced lung elastin degradation and the ensuing cascade of events causing lung growth arrest.

METHODS: 5d-old mice were treated via tracheotomy with recombinant human elafin or vehicle (lactated-Ringer's solution), followed by MV with 40%O2 for 8-24h; controls breathed 40%O2 without MV. At study's end, lungs were harvested to assess key variables noted below.

MEASUREMENTS AND MAIN RESULTS: MV-O2 of vehicle-treated pups increased lung elastase and MMP-9 activity, when compared with unventilated controls, causing elastin degradation (urine desmosine doubled), TGFβ activation (pSmad-2 tripled) and apoptosis (cleaved-caspase-3 increased 10-fold). Quantitative lung histology showed larger and fewer alveoli, greater inflammation, and scattered elastic fibers. Elafin blocked these MV-O2-induced changes.

CONCLUSIONS: Intrapulmonary elafin, by blocking lung protease activity, prevented MV-O2 induced elastin degradation, TGFβ activation, apoptosis and dispersion of matrix elastin, and attenuated lung structural abnormalities noted in vehicle-treated mice after 24h of MV-O2. These findings suggest that elastin breakdown contributes to defective lung growth in response to MV-O2 and might be targeted therapeutically to prevent MV-O2-induced lung injury

[Eberhard01]

Antwort auf Beitrag Nr.: 41.503.639 von Artishoppe am 14.05.11 19:17:04

Zitat Artishoppe: "Ich bin gespannt auf die nächste Zeit! Über den Kurs der Aktie würde ich nicht zuviel nachdenken, wenn bei so kleinen Umsätzen der Kurs springt"

Ich denke man ist hier vor allem wg. steigenden Kursen investiert/eingestiegen. Die Story mag gut sein, zieht sich aber extrem in die Länge. Meine Bekannte hat die Aktien 2008 mit der Hoffnung auf steigendeKurse ins Depot gelegt. Der Kurs hat sich nun mal in dieser Zeit halbiert.

Merkwürdig ist nun mal, dass in den letzten Tagen jeweils 10 Aktien zu € 5.- gehandelt wurden. Ich nehme an, dass eine noch geringere Order gar nicht ausgeführt würde. Die Gebühren für solche eine Order liegen ja mind. genauso hoch wie die Order selbst. Das macht ja keinen Sinn.

Deshalb meine Frage was es damit auf sich hat.

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.504.084 von Eberhard01 am 15.05.11 07:09:55

Ich habe auch absolut keine Ahnung, was es mit den Miniaturorders auf sich hat.

Aber, um den Gedanken von Artishoppe mal weiter aus zu formulieren, könnte ich auch verkürzend sagen:
> Mit dem fortschreitenden wissenschaftlichen Erfolg wird sich auch der wirtschaftliche Erfolg einstellen. Damit geht dann auch der "entsprechende Kursanstieg" einher.
Wenn ich von "Kursanstieg" rede, dann meine ich 20- bis 30faches Geld.

Es spielt dann überhaupt keine Rolle, ob die Aktie an einem Tag, in einer Woche oder eine Monat ein paar Cent, oder auch - meinetwegen - Zehncent steigt oder fällt.

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.503.603 von Artishoppe am 14.05.11 18:57:25

Auch ein schöner Link:

http://www.newstatesman.com/healthcare-and-pharmaceuticals/2…

[Eberhard01]

Und heute wieder 10 Stck. gehandelt. Das ist doch reine Kurspflege.

[Eberhard01]

Heute warens nur 8 Stück die gehandelt wurden um den Kurs oben zu halten.

[Eberhard01]

Heut sind`s doch glatt 4.000 Stück auf einen Schlag.

[Eberhard01]

wieder mal ein trade mit 10 Stück

[Eberhard01]

Sind doch noch 11.500 dazugekommen. Schön.

[Pipetwister1]

jetzt geht´s los - heute über 13.000 Stücke gehandelt... Wann kommt die Post vom Übernehmer???

Nach den letzten positiven Meldungen über weitere Behandlungsmethoden, die man überall im Netz finden kann, ist es nur noch eine kurze Zeit, wann der Übernehmer zu schlägt. Und dann werden die Aktionäre abgefunden - die Cleveren lachen zum Schluss!

>Peter Plemm, ich hoffe, ich verschlucke mich nicht beim Lachen

[Eberhard01]

Antwort auf Beitrag Nr.: 41.527.017 von Pipetwister1 am 19.05.11 15:37:31

Hast du auch ne Quelle oder ist das ein reines "Bauchgefühl"?

[Pipetwister1]

Warte noch ein paar Tage - es dauert nicht mehr lange. Mit Bauchgefühl hat das nichts zu tun. Mehr kann ich im Moment nicht sagen...

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.529.445 von Pipetwister1 am 19.05.11 22:37:46

Allein unter "PUBMED.DE" findet man bei Eingabe der Suchbegriffe "ELAFIN" bzw. "ELAFIN SKIN" den Hinweis auf über zehn (10) wissenschaftliche Veröffentlichungen seit August letzten Jahres.
Wer jetzt hier meint, weiter schlafen zu können bzw. zu müssen, oder alles in seiner grenzenlosen Dummheit zerquatschen zu müssen, wird demnächst sein blaues Wunder erleben.

[Eberhard01]

Zitat von Pipetwister1: Warte noch ein paar Tage - es dauert nicht mehr lange. Mit Bauchgefühl hat das nichts zu tun. Mehr kann ich im Moment nicht sagen...

Also so hört sich das etwas nebulös an.

[Eberhard01]

Oder anderst gefragt: Was erwartest du in nächster Zeit?

[Pipetwister1]

Hallo eberhard01,

na klar ist das alles nebulös - keiner weiß nichts Genaues bzw. es ist doch so: Die etwas wissen, haben sich verpflichtet, Nichts zu sagen. Das ist in solchen Fällen doch grundsätzlich so. Die Gesellschaften wollen als Erste mit den news an die Öffentlichkeit. Die Handelnden im Hintergund, die an der Front, dürfen Nichts sagen, um Aktienkurse nicht zu früh in eine bestimmte Richtung zu treiben. Aber wem sag ich das - Peter Plem mit dem Baumschulabschluss, muss man das vielleicht noch erklären - die anderen werden es verstehen.

kaubeuhut scheint ganz nah dran zu sein, da er die meisten Infos bei steuert. Aber auch er darf wohl nix sagen.... Wenn wir alle unser blaues Wunder erleben werden (die blaue Brücke steht übrigens in Dresden...), können wir gespannt sein! Ich denke/glaube, dass es nun nicht mehr lange dauern kann. Nur dafür gibt es keine Beweise, die ich präsentieren kann.

Insofern - die Börse lebt von der Spekulation

[Eberhard01]

Antwort auf Beitrag Nr.: 41.532.289 von Pipetwister1 am 20.05.11 13:37:45

Ich kenn halt auch die Brücke in Avignon!

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.532.700 von Eberhard01 am 20.05.11 14:57:07

Wieso "halt"?

[Eberhard01]

Heute zieht der Handel aber an. Bereits über 18.500 Stück. 0,377 / 0,60 €.

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.542.701 von Eberhard01 am 23.05.11 15:30:33

Umsatz auch heute wieder deutlich belebt.

Tut mir natürlich äusserst leid für unseren Freund "Peter Plemm", alias "Peter Panne", alias "Peter Panik", alias "peterpan". Er hat sich in sein Rattenloch zurück gezogen, schweigt, schmollt und stochert verzweifelt nach Verschwörungstheorien.

Aber: keine Sorge. Bei der geringsten Kurs-, Markt- oder Nachrichtenirritation wird er frech aus seinem Loch hervorschiessen, um scheinheilig und heuchlerisch "arme" und vor allem "hereingefallene Anleger" bejammern.

[Eberhard01]

Bis zu 0,50€ geht`s ja immer hoch, die 0,60 € schafft man nicht.

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.550.825 von kaubeuhut am 24.05.11 20:24:55

Muss natürlich heissen: "...zu bejammern".

[peterpan123]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Pipetwister1]

Antwort auf Beitrag Nr.: 41.559.020 von peterpan123 am 26.05.11 09:41:58

Auf welcher Baumschule hast du dein Baumabitur gemacht? Nachname mit "h" in der Mitte?
Bist du jemand mit Migrationshintergrund? Dann würde ich dir Kurse an der Volkshochschule empfehlen, die kümmern sich da auch sehr intensiv um die armen Analphabeten.

Mal von deinen miserablen Rechtschreibkenntnissen abgesehen - was hast du eigentlich gegen Herrn Kutscher von Demi Moore? Der hat mehr Klasse, als du je haben wirst.

Irgendwann wirst du deine Ergüsse nur noch für die WC-Spülung nutzen können. Der Tag kommt!

Dann noch eine schöne Zeit auf deinem Baum.

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beleidigung

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.561.238 von Pipetwister1 am 26.05.11 15:37:16

Hoffentlich ist er wenigstens in der Lage, seine Hartz IV-Anträge annähernd fehlerfrei aus zu füllen.

[Eberhard01]

Also Bewegung ist ja mittlerweile im Handel aufgekommen.

[Pipetwister1]

Antwort auf Beitrag Nr.: 41.563.074 von kaubeuhut am 26.05.11 20:04:06

Ich habe gehört, dass die Referenten im Unterricht üben, solche Anträge auszufüllen. Er muss nur alle Daten mündlich vortragen und "dann werden Sie geholfen" (Zitat Frau Poth)

Im Übrigen: Dass der Demi Moore Partner sich anders schreibt als der A. Kutscher in diesem thread ist schon klar...

Jetzt soll es nicht mehr lange dauern - ein paar Mal werden wir noch wach, heißa, dann ist Bescherungstag

[Eberhard01]

Wieviel sind denn bei dir "ein paar mal"?

[Pipetwister1]

Antwort auf Beitrag Nr.: 41.564.641 von Eberhard01 am 27.05.11 08:02:19

Nächste Woche wissen wir mehr

[heinuun]

Anscheinende soll die Veröffentlichung Mitte Juni / 2. Hälfte Juni kommen. Also wieder ein Monat später. Die halten einen schon ganz schön hin und machen es sehr spannend. Es hat wohl irgendwelche formalrechtlichen Gründe, dass sich das ganze ständig verschiebt. Schein also eine schwerer Geburt zu sein.

[Eberhard01]

Antwort auf Beitrag Nr.: 41.565.246 von heinuun am 27.05.11 09:40:09

Welche Veröffentlichung?

[Pipetwister1]

Antwort auf Beitrag Nr.: 41.565.551 von Eberhard01 am 27.05.11 10:18:12

Mensch eberhard01 - siehe beitrag vom 19.5.11. Wenn eine große AG eine kleine übernimmt, braucht das Zeit, bis alle Formalitäten erledigt sind. Kannst du dir vorstellen, wie lange es dauert, alle Altaktionäre, die bereits seit über 10 Jahren dabei sind, wieder zu finden? Verzogen, verstorben, verheiratet usw. - die müssen doch alle angeschrieben werden. Dann ist das ein Verfahren, das in den Staaten und in Europa bzw. in Deutschland alle juristischen Hürden nehmen muss. Da kann man kaum vorher sagen, wie lange das dauert.

Ich bin der festen Überzeugung, dass es nun zügig geht, wobei ich aber auch "nur" Aktionär bin und auch "nur" etwas erfahre, wenn alle anderen auch.

Im Übrigen wird sogar heute auf xetra schon gehandelt für 60 Cent. Es wird nicht mehr viele Aktionäre geben, die ihre Stücke hergeben, oder????

[Pipetwister1]

Auf xetra - war wohl ein Irrtum, Einträge sind schon wieder weg - aber egal...

[Eberhard01]

Antwort auf Beitrag Nr.: 41.567.121 von Pipetwister1 am 27.05.11 13:40:12

Danke für die Erklärung.

[kaubeuhut]

Hilfe! PannePlumms hat 10 Stcüke verkauft. Prompt fällt der Kurs.

[Pipetwister1]

So, Panne Plemm, jetzt werden wir dich wohl bald nicht mehr genießen können: Die Post aus den Staaten ist da! Die Übernahme wurde von einer Rechtsanwaltskanzlei bestätigt. Ein noch nicht benanntes Unternehmen will die Mehrheit an proteo übernehmen. Bis alle Aktien -zumindest über 51%- eingesammelt worden sind, wird es wohl noch keine öffentliche Verlautbarung geben. Denn dann kann das Unternehmen entscheiden, ob es die restlichen Aktionäre aus dem Streubesitz mit einem vernünftigen Angebot abfindet oder vielleicht eigene Aktien anbietet!? Was ist üblicherweise ein passendes Angebot? 1 Altaktie für 10 oder doch weniger? Wir werden es sehen. Ich bin gespannt, wann diese Meldung eine Eigendynamik lostritt.

Das werden interessante Tage und Wochen...

[kaubeuhut]

!

Dieser Beitrag wurde moderiert. Grund: Beleidigung

[Plusmaker]

Antwort auf Beitrag Nr.: 41.571.556 von Pipetwister1 am 28.05.11 19:20:51

Seltsam.

Mein Brief kam aus London, eindeutig Europa.

[Pipetwister1]

Antwort auf Beitrag Nr.: 41.573.623 von Plusmaker am 29.05.11 21:57:12

Hallo Plusmaker,

tust du so doof oder bist du das? Kann ich mir nicht vorstellen, wenn du dich richtig informiert hast, weißt du, dass die Proteo Inc in den Staaten sitzt. Die Amerikaner haben eine britsche Sozietät beauftragt, alle deutschen bzw. deutsch sprechenden Aktionäre zu informieren. Der Treuhänder(aus der Schweiz) muss ja wohl auch deutsch schreiben und sprechen können, sonst wird das nix.

Also da ist nichts Merkwürdiges! Du weißt damit vorerst alles, was wichtig ist. Das Weitere folgt...

[formento]

Bisher hab ich nur gelesen, mich aber nicht zu Wort gemeldet.

Ist ja schön Post zu bekommen, allerdings fraglich ob´s das Briefpapier wert ist. Aus den Bezugsrechten sollen also Aktien werden. Allein, mir fehlt der Glaube.
Oder bin ich damit nicht allein? Wer von euch “glaubt” an dieses Märchen??????

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.577.801 von formento am 30.05.11 20:16:32

Wie üblich. Kaum an Bord, schon auf der Überholspur.

[Eberhard01]

Antwort auf Beitrag Nr.: 41.577.801 von formento am 30.05.11 20:16:32

Meine Bekannte für die ich die Sache verfolge, hat bis heute noch nicht`s erhalten.

[Plusmaker]

Antwort auf Beitrag Nr.: 41.577.240 von Pipetwister1 am 30.05.11 17:53:32

Vielleicht ist man als Pharmazeut im Laufe seines beruflichen Lebens was Exaktheit angeht zu sehr geprägt worden. "...der Brief aus den Staaten..." stimmt natürlich im übertragenen Sinn, ist aber nicht exakt. Sorry!

Letztendlich ist es ja auch egal, wenn das Ergebnis dieser Aktion stimmt.

LG PM

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.579.478 von Plusmaker am 31.05.11 09:25:03

Ich hab jedenfalls 0,49 auf der Glotze.

[formento]

Ich habe auch noch keine Post bekommen. Kann mir freundlicherweise jemand etwas näher erklären, was es mit dem "Schreiben aus den Staaten" auf sich hat.
- Wer ist Absender?
- Was wird mitgeteilt?

Danke im voraus.

[Pipetwister1]

Hallo formento,

wenn du diesen thread genau gelesen hast, müsstest du bereits auf dem neuesten Stand sein. Noch mal deutlich für dich.

Es gibt zwei Gruppen von Aktionären. Die einen sind Altaktionäre oder solche, die die Aktien auf dem freien Markt erhalten haben.
Die anderen haben vor 1,5 Jahren Bezugsrechte erhalten, die vor einigen Monaten in Aktien umgewandelt wurden. Diese Neuaktionäre haben das Schreiben aus den Staaten erhalten, die Altaktionäre nicht. Erst wenn der Übernehmer die ca. 10.Mio Aktien übernommen hat, wird es für die Altaktionäre vermutlich ein Angebot geben. Daher haben eben alle "alten" Aktionäre keinen Brief erhalten. Ich bin Alt-u. Neuaktionär - so einfach ist das. Mit "Glauben" hat das nichts zu tun.

[Pipetwister1]

Also kaubeuhut, plusmaker und pipetwister sind Mitglieder des vor 1,5 Jahren aufgelegten Handelsprogramms.
eberhards Bekannte und formento sind Altaktionäre.
Das ist somit geklärt.

Jetzt sollte mal kaubeuhut was Entscheidenes beitragen - der weiß nämlich am Meisten, weil er viel näher dran ist als pipetwister!

[formento]

!

Dieser Beitrag wurde moderiert. Grund: fehlende Quelle

[Pipetwister1]

Antwort auf Beitrag Nr.: 41.586.008 von formento am 31.05.11 23:45:52

Na denn formento,

eigentlich wollte ich auf dein letztes posting nicht mehr antworten - nun setze ich doch noch die rosarote Brille ab und sage Folgendes:

1. Du hast seinerzeit das Bezugsrechteangebot ausgeschlagen und bist daher nicht mehr im Informationsfluss.
2. Ich habe es schriftlich, dass meine Bezugsrechte umgewandelt wurden in Aktien. Ich bin also mit den neuen Aktien "Neuaktionär".
3. Die neuen Aktien habe ich zu einem bestimmten vorher festgelegten Kurs verkauft.
4. Die Abwicklung dieses Handelsprogramms steht jetzt an.
5. Eine freie Interpretation des Schreibens von der Anwaltskanzlei habe ich nicht vorgenommen. Warum sollte ich? Ich habe den background einiger handelden Personen erruiert und keinen Anlass, an konstruierte vitas zu glauben.
6. Wenn du dir mal die Mühe machen würdest, alle offiziellen Mitteilungen der proteo inc in den Staaten zu lesen und zu übersetzen, würdest du auch von diesem Handelsprogramm (dem du nicht beigetreten bist) erfahren. Hier wird also nichts verheimlicht oder verschleiert.
7. Sollte alles ein Riesen-Fake sein, ist der Aufwand, den die handelnden Personen 1,5 Jahre getrieben haben, immens groß. Das macht alles überhaupt keinen Sinn.

Ich werde hier mit Sichheit keine Namen oder Belege veröffentlichen, sondern abwarten, was passiert. Mein finanzielles Engagement war nicht exorbital groß, um in Tiefstdepressionen zu verfallen, falls alles eine große V.... gewesen ist.

Nun sollten wir auf kaubeuhut warten oder auf alles Weitere...

[formento]

!

Dieser Beitrag wurde moderiert. Grund: Beschwerde durch Firma liegt w:o vor

[Alexlutscher]

!

Dieser Beitrag wurde moderiert. Grund: Beleidigung

[Wundheiler]

Liebe Mitbesitzer von Proteo Biotech Aktien und Bezugsscheinen

Wir haben anfangs letzter Woche ein langersehntes Schreiben von einer Londoner Niederlassung einer US Anwaltskanzlei. In diesem Schreiben wird uns ein weiteres Schreiben ("in a few days")von der Anwaltskanzlei oder der Feinbaum Consulting GmbH in Basel in Aussicht gestellt.

Fragen:

1. Wo ist diese Anwaltskanzlei Kraemer International Law Company in den USA beheimatet? Die angegebene Telefonnummer in London funktioniert noch nicht. Es meldet sich eine Zentrale in diesem Gebäudekomplex Broadway 50. Alles sei noch im Aufbau mit dieser Londoner Niederlassung von Kraemer, höre ich am Telefon. Kennt jemand diesen Alexander Kraemer, der das Schreiben unterzeichnet hat?

2. Die Feinbaum Consulting GmbH existiert in Basel und in Allschwil: www.feinbaum.ch gibt Auskünfte zur Firma.Hat sich da jemand schon schlau gemacht und den Kontakt zu Feinbaum hergestellt?

Die Verantwortlichen der BTD Biotech Development GmbH in Düsseldorf geben sich alle Mühe uns korrekt zu informieren. Leider sind sie auch nicht mit der Anwaltskanzlei und mit Feinbaum in direkten Kontakt. Die BTD wird gleich wie wir alle als Aktionär behandelt. Sie erhält die selben Informationen wie wir. Das macht das Ganze so schwierig auch für die BTD und lässt leider auch wenig hilfreiche Informationen und sogar Missverständnisse entstehen .
Hoffen wir alle, dass sich die Probleme in Kürze zur Zufriedenheit von uns Aktienbesitzern lösen werden.
Antworten auf meine Fragen und generell konstruktive Beiträge zur Lösung sind immer willkommen.
Aber eine Bitte an Alle: Sachlich bleiben!

Der Wundheiler dankt.

[Pipetwister1]

Antwort auf Beitrag Nr.: 41.614.830 von Wundheiler am 07.06.11 17:08:14

Hallo Wundheiler,

endlich mal einer, der hier seriös berichtet! Soweit wollte ich mich noch nicht aus dem Fenster legen mit so genauen Informationen.

Dann kann ich ja berichten, dass ich heute eine Mail von der Feinbaum Consulting GmbH erhalten habe, in der alle mitgeteilten Tatsachen bestätigt wurden. Ich hatte um Auskunft gebeten, die heute umgehend beantwortet wurde.

Feinbaum c. erklärt, dass allen Aktionären in Kürze von der Anwaltskanzlei Kraemer und von der Feinbaum die gewünschten Abwicklungsmodalitäten mitgeteilt werden sollen.
Ein großes Pharmaunternehmen soll die proteo AG übernehmen (ein typisches take over...) Ra Kraemer handelt im Namen des Pharmazieunternehmens und hat die Feinbaum c. als Treuhänder eingesetzt.

Soweit der Inhalt der Mail (in geraffter Form). Was nicht deutlich wird, ist die Frage, ob auch Altaktionäre (wie z.B. formento) von der Übernahme profitieren und ebenfalls in den Genuss kommen, abgefunden zu werden. Das wird die Zukunft zeigen.
Die rund 12 Mio neuen Aktien werden auf jeden Fall vom Übernehmer gekauft.

Soweit mein Beitrag zur Aufhellung des Dunkels - Mal sehen was formento darauf wieder einfällt, Peter Plemm sagt ja schon gar nix mehr...

[Plusmaker]

Antwort auf Beitrag Nr.: 41.623.319 von Pipetwister1 am 08.06.11 22:20:43

Wenn man aber das Sangui Biotech Forum liest, kann man schon wieder ins grübeln kommen.

[Pipetwister1]

Antwort auf Beitrag Nr.: 41.629.796 von Plusmaker am 09.06.11 22:41:53

Über was grübelst du? Ob du doch damals die falsche Entscheidung getroffen hast, als du nicht in das Handelsprogramm eingestiegen bist?

Es gibt hier in diesem thread seit ein paar Tagen neue Mitglieder bei wo, die die gleichen Erfahrungen gemacht haben, die bestätigt bekommen haben, dass ihre Bezugsrechte in Aktien umgewandelt worden sind und es schriftlich bestätigt bekommen haben, dass der Verkauf der Aktien unmittelbar bevor steht.

Und diese ganzen Aktionäre sollen sich also diese Dokumente rahmen und an die Wand nageln?

Wie naiv bist du eigentlich, dass du glaubst, dass die netten Leute in Kiel dir am Telefon sagen (wie lange ist das eigentlich her, dass du mit denen gesprochen hast...???), was sie mit ihrem Unternehmen vor haben? Bevor die Sachen nicht in trockenen Tüchern sind, würde ich an ihrer Stelle dir auch nix sagen. Wir werden bald erfahren, wer das Pharmaunternehmen ist, der uns unsere Aktien abkauft.

[Plusmaker]

Antwort auf Beitrag Nr.: 41.632.240 von Pipetwister1 am 10.06.11 13:04:15

Lieber Pipetwister,

du verwechselst mich. Ich habe nie gesagt, dass ich nicht eingestiegen bin, ich habe nie gesagt, dass ich mit Kiel telefoniert habe. Ich habe auch keine 2te ID hier.

Es ist nur auffällig, dass im Prinzip dasselbe Verfahren wiederholt wird. Gibts etwa ein anderes Handelsprogramm, oder eine Erweiterung des bestehenden?

Ich habe noch keine schriftliche Bestätigung, aber wenns alphabetisch zugeht, bin ich eher hinten anzutreffen.

Nichts für ungut.

PM

[Pipetwister1]

Antwort auf Beitrag Nr.: 41.632.343 von Plusmaker am 10.06.11 13:18:24

Sorry - ich meine "formento"

So allmählich komme ich hier auch ins Schleudern. Wenn du an dem Handelsprogramm, das ich meine, teilgenommen hast, müßtest du auch Post bekommen haben oder noch erhalten. Ich denke, es wird sich nach Pfingsten alles aufklären.

Es fällt mir schwer, immer das zu verstehen, was eigentlich nicht genau gesagt wird. Mit "sangui biotech" habe ich nix am Hut und weiß daher auch nicht, was da abgeht.

Aber noch mal zu proteo:
Was macht das für die btd für einen Sinn, 1,5 Jahre herum zu eiern und mit Kunden nervige Gespräche zu führen für so wenig Geld??? Also die paar Kröten, die ich investiert habe, sind es nicht wert. Deswegen kann ich mir nicht vorstellen, hier von hinten und vorne vera.... worden zu sein. Ich habe mich um die wahren Identitäten der handelnden Personen bemüht und zumindest von denen, die mit mir telefoniert haben, zum großen Teil Details erfahren, die reichen, um rechtliche Schritte einleiten zu können, wenn alles sich in Luft auflöst.
Das Einzige, was nervt, ist, das alles so unendlich lange dauert bzw. gedauert hat!!! Aber hätte man das vorher gewusst, wäre man wohl auch nicht eingestiegen.

Dann wünsche ich allen Mitaktionären frohe Feiertage und hoffe auf ein "Gutes Ende"

[Plusmaker]

Antwort auf Beitrag Nr.: 41.632.534 von Pipetwister1 am 10.06.11 13:52:29

Das ist auch mein Gedanke: Aber 1200 mal 10000€ (im Schnitt geraten) sind auch
€ 12.000.000. Locker gerechnet 1Mio pro Monat.

[kaubeuhut]

Also: Man kann mit aller Gewalt - auch das kleinste - Haar in der Suppe suchen, oder sich selbst - Tag für Tag - das Leben zur Hölle machen.

Wie sagte der alte Beckenbauer in solchen Situationen?

"Schau´n mer mal und seh´n mer dann."

[formento]

Hallo Pipetwister,

Deine dauernden Versuche Eigenwerbung zu betreiben kommen ziemlich plump rüber. Auch wenn Du von einem „typischen take-over“ sprichst, klingt nicht viel Fachkompetenz aus Deinen Worten.
Zudem, meine ich, eine gewisse Dünnhäutigkeit bei Dir festgestellt zu haben, wenn jemand Zweifel an Deinem baldigen Reichtum hegt.

[kaubeuhut]

Antwort auf Beitrag Nr.: 41.641.629 von formento am 13.06.11 23:03:35

"Dünnhäutigkeit",- das trifft doch wohl eher auf Dich zu. Deine zahlreichen und hektischen Reaktionen sind ein ganz offenkundiger Beleg dafür.