I healed my Totodile at the Cherrygrove City Pokemon Center after I left Mr. Pokemon's house. I bought some Potions at the local Poke Mart as well, and then I headed over to Route 29 since I had to make my way over to New Bark Town in order to talk to Professor Elm. I ran into a boy before I got there though, and he wanted to battle against me. He sent out his Chikorita and I used Totodile. It was a close match; Totodile was almost out of HP, but I healed him halfway through the battle and I won. I defeated the boy and I headed over to Route 29. I arrived in New Bark Town eventually and I visited Professor Elm's lab. He told me that one of his Pokemon had been stolen, and I was interrogated by a police officer. I was eventually spared and I told the officer the name of the boy I had met in Cherrygrove City. I gave Elm the Pokemon Egg after that, and I saved before heading out again.