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

                                   FORM 10-QSB

(MARK ONE)

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 for the quarterly period ended September 30, 2005.

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934  For the transition period from ____ to ____ .

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

                        Commission File Number: 000-30383

                      GRIDLINE COMMUNICATIONS HOLDINGS INC.
                (Name of registrant as specified in its charter)

           DELAWARE                                              54-1964054
(State or other jurisdiction                                  (I.R.S. Employer
      of incorporation)                                      Identification No.)

                        14090 SOUTHWEST FRWY., SUITE 300
                               SUGARLAND, TX 77478
                    (Address of principal executive offices)

                                 (281) 340-8518
                         (Registrant's telephone number)

                          NORTH SHORE CAPITAL IV, INC.
                              2208 PERSHING AVENUE
                           SHEBOYGAN, WISCONSIN 53083
         (Former name or former address, if changed since last report.)

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 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 shell company (as defined in
Rule 12b-2 of the Exchange Act).
         Yes [ ]   No [X]

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13, 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court.

                      APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the last practicable date:

Registrant had 54,657,564 shares of common stock, par value $0.001 per share,
outstanding as of September 30, 2005.

Transitional small business disclosure format (check one) Yes [ ]   No [X]

<PAGE>

<TABLE>
<CAPTION>
                                                                                         Page No.

<S>      <C>                                                                             <C>
PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

         Condensed Consolidated Balance Sheets as of September 30, 2005 (unaudited)      1

         Condensed Consolidated Statements of Operations for the three months
         and nine months ended September 30, 2005 (unaudited), from July 2, 2004
         (Inception) through September 30, 2004 (unaudited) and from July 2, 2004
         (Inception) through September 30, 2005                                          2

         Condensed Consolidated Statements of Cash Flows for the nine months ended
         September 30, 2005 (unaudited), from July 2, 2004 (Inception) through
         September 30, 2004 (unaudited) and from July 2, 2004 (Inception)
         through September 30, 2005                                                      3

         Notes to Condensed Consolidated Financial Statements (unaudited)                4-7

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS                      7-12

ITEM 3.  CONTROLS AND PROCEDURES                                                         12

PART II - OTHER INFORMATION

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                     12-13

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES                                                 13

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K                                                13-14

SIGNATURES                                                                               15
</TABLE>

<PAGE>


                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                     GRIDLINE COMMUNICATIONS HOLDINGS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                                  BALANCE SHEET
                               SEPTEMBER 30, 2005
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                           ASSETS

<S>                                                                             <C>
CURRENT ASSETS
       Cash and cash equivalents                                                $        --
       Prepaid expenses                                                               2,698

Fixed assets (less accumulated depreciation of $10,997)                              14,128
                                                                                -----------

TOTAL ASSETS                                                                    $    16,826
                                                                                ===========


                           LIABILITIES AND SHAREHOLDERS' DEFICIT

CURRENT LIABILITIES
       Bank overdraft                                                                 8,436
       Accounts payable                                                             153,325
       Accrued interest                                                              65,588
       Accrued expenses                                                             161,855
       Convertible debt securities                                                  829,500
                                                                                -----------
           Total current liabilities                                              1,218,704

TOTAL LIABILITIES                                                                 1,218,704
                                                                                -----------

SHAREHOLDERS' DEFICIT
       Common stock, $.001 par value; 250,000,000 shares authorized,                 54,658
       54,657,564 shares issued and outstanding
       Additional paid-in-capital                                                 1,110,875
       Accumulated deficit                                                       (2,367,411)
                                                                                -----------
           Total shareholders' deficit                                           (1,201,878)
                                                                                -----------

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT                                     $    16,826
                                                                                ===========
</TABLE>



<PAGE>

                     GRIDLINE COMMUNICATIONS HOLDINGS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
                                                           FOR THE PERIOD                          FOR THE PERIOD
                                       NINE MONTHS       FROM JULY 2, 2004     THREE MONTHS      FROM JULY 2, 2004
                                          ENDED             (INCEPTION)           ENDED             (INCEPTION)
                                      SEPT. 30, 2005     TO SEPT. 30, 2004    SEPT. 30, 2005     TO SEPT. 30, 2005

<S>                                     <C>                 <C>                 <C>                 <C>
Research and development costs          $        --         $   300,000         $        --         $   760,223
Selling, general and administrative         888,517             174,685             183,278           1,496,155
Depreciation expense                         10,968                  12               1,936              10,997
                                        -----------         -----------         -----------         -----------
Total expenses                              899,485             474,697             185,214           2,256,378

Loss from operations                       (899,485)           (474,697)           (185,214)         (2,256,378)

Interest expense, net                        91,262               2,457              65,327             111,033
                                        -----------         -----------         -----------         -----------

Net loss                                $  (990,747)        $  (477,154)        $  (250,541)        $(2,367,411)
                                        ===========         ===========         ===========         ===========


Loss per share - basic and diluted      $      (.02)        $      (.02)        $     (0.00)        $      (.05)

Weighted average shares outstanding -
basic and diluted                        48,790,104          29,954,402          51,131,624          49,695,064
</TABLE>



<PAGE>

                     GRIDLINE COMMUNICATIONS HOLDINGS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                             STATEMENT OF CASH FLOWS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                            FOR THE PERIOD        FOR THE PERIOD
                                                       NINE MONTHS        FROM JULY 2, 2004     FROM JULY 2, 2004
                                                          ENDED              (INCEPTION)           (INCEPTION)
                                                      SEPT. 30, 2005      TO SEPT. 30, 2004     TO SEPT. 30, 2005

<S>                                                    <C>                   <C>                   <C>
Cash flows from operating activities:
      Net (loss)                                       $  (990,747)          $  (477,154)          $(2,367,411)

Adjustments to reconcile net (loss) to
net cash used in operating activities:
         Non-cash compensation                             351,871                    --               351,871
         Depreciation expense                               10,968                    12                10,997
         Change in prepaid expenses)                            --                (5,000)               (2,698)
         Change in cash overdraft                            8,436                    --                 8,436
         Change in accounts payable and
              accrued expenses                             128,695                14,672               315,180
         Change in accrued interest                         79,810                 2,457                99,580
                                                       -----------           -----------           -----------
Net cash used in operating activities                     (410,967)             (465,013)           (1,584,045)

Cash flows from investing activities:
         Purchase of equipment                             (24,060)               (1,065)              (25,125)
                                                       -----------           -----------           -----------
Net cash used in investing activities                      (24,060)               (1,065)              (25,125)

Cash flows from financing activities:
         Proceeds from the issuance of stock               160,000                 9,060               169,670
         Proceeds from the issuance of debt                395,500               486,500             1,564,500
         Repayment of debt
                                                          (125,000)                   --              (125,000)
                                                       -----------           -----------           -----------
Net cash provided by financing activities                  430,500               495,560             1,609,170

Net (decrease) increase in cash and cash
equivalents                                            $    (4,527)          $    29,482           $    (8,436)
                                                       ===========           ===========           ===========

Cash and cash equivalents, beginning of year           $     4,527           $        --           $        --
Cash and cash equivalents, end of year                 $        --                29,482                    --

Supplemental Disclosures:
      Interest paid                                    $        --           $        --           $        --
      Income taxes paid                                $        --           $        --           $        --
</TABLE>



<PAGE>

                     GRIDLINE COMMUNICATIONS HOLDINGS, INC.
                          (A DEVELOPMENT STAGE COMPANY)
                          NOTES TO FINANCIAL STATEMENTS
                                   (UNAUDITED)


NOTE 1 - BUSINESS & ORGANIZATION

Gridline Communications Holdings Inc. (the "Company"), formerly North Shore
Capital IV, Inc. ("North Shore"), is a development stage company that was formed
to provide integrated distribution broadband signaling and connectivity through
electrical power lines to homes and offices. The Company intends to provide
power line communication ("PLC"), which is also referred to as broadband over
power lines ("BPL"), through existing electric power transmission and
distribution lines. PLC technology will allow the Company to send more robust
data and voice communications over standard 50 or 60 hertz voltage frequency.

On August 1, 2005 Gridline Communications Corp. ("Gridline") entered into a
merger agreement with North Shore. Gridline was a privately-held entity that was
incorporated in the state of Delaware on July 2, 2004. North Shore was a
publicly-registered entity that was incorporated in the state of Colorado in
1999, and its sole purpose was to locate and consummate a merger or acquisition
with a private entity. Pursuant to the terms of the merger agreement, North
Shore changed its state of incorporation to Delaware and increased its number of
authorized shares to 250 million. North Shore then issued 47.6 million shares of
its common stock in exchange for all of the outstanding shares of Gridline.
Prior to the completion of the merger, North Shore changed its name to Gridline
Communications Holdings Inc.

For accounting purposes, the merger has been treated as a reverse acquisition of
North Shore by Gridline. Therefore, the assets and liabilities of Gridline are
reported in the Company's financial statements at historical cost. The Company's
revenues and expenses for all periods prior to the merger date only include
those of Gridline. As of August 1, 2005, the financial statements include the
combined operating results, assets and liabilities of Gridline and North Shore.

NOTE 2 - BASIS OF PRESENTATION

The consolidated interim financial statements included herein, presented in
accordance with United States generally accepted accounting principles and
stated in US dollars, have been prepared by the Company, without audit, pursuant
to the rules and regulations of the Securities & Exchange Commission. Certain
information and footnote disclosures normally included in the financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and regulations, although
the Company believes that the disclosures are adequate to make the information
presented not misleading. These statements reflect all adjustments, consisting
of normal recurring adjustments, which, in the opinion of management, are
necessary for fair presentation of the information contained therein. It is
suggested that these consolidated interim financial statements be read in
conjunction with the financial statements for the year ended December 31, 2004
included in the Company's Form 8-K/A that was filed with the Securities and
Exchange Commission on June 6, 2005. The Company follows the same accounting
policies in the preparation of interim reports.

<PAGE>

NOTE 3 - STOCK OPTIONS

In December 2004, the Financial Accounting Standards Board ("FASB") issued the
revised Statement of Financial Accounting Standards No. 123, "Share-Based
Payment" ("SFAS No. 123R") which addresses the accounting for share-based
payment transactions in which we obtain employee services in exchange for (a)
our equity instruments or (b) liabilities that are based on the fair value of
our equity instruments or that may be settled by the issuance of such equity
instruments. SFAS No. 123R requires that such transactions be accounted for
using the grant-date fair value based method. The Company adopted the provisions
of SFAS No 123R provided for an effective date as of the beginning of the first
interim or annual reporting period that begins after June 15, third quarter of
2005. Early adoption of SFAS No. 123R is encouraged.

During the nine months ended September 30, 2005, the Company granted 2.5 million
options to an officer as incentive compensation. The options vested immediately
on the grant date and had an exercise price of $.0001. The Company estimated the
fair value of the options to be $249,793 using the Black Scholes option pricing
model and recorded the entire amount as an expense. The assumptions used to
value the options are outlined below:

Dividend Yield: 0%
Expected Volatility: 115%
Risk-Free Rate: 3.0%
Expected Term: 5 Years

The Company periodically issues stock options to external parties as payment for
services rendered or as an incentive to provide debt financing to the Company.
During the nine months ended September 30, 2005, the Company issued 1,238,360
options to external parties that vested immediately on the grant date and had
exercise prices ranging from $.0001 to $.28. The Company estimated the fair
value of the options to be $102,078 using the Black Scholes option pricing model
and recorded the entire amount as an expense. The assumptions used to value the
options are outlined below:

Dividend Yield: 0%
Expected Volatility: 101.5% - 115.5%
Risk-Free Rate: 2.25% - 3.0%
Expected Term: 5 Years

Since the Company is a development stage entity, its stock is not actively
traded at this time. Therefore, the volatility assumptions were estimated by
averaging the volatility of two active companies that have operations similar to
the Company.

NOTE 4 - CONVERTIBLE NOTES PAYABLE

Between August 2004 and June 2005, the Company issued $1,464,500 of convertible
notes payable that matured on September 11, 2005 and had a stated interest rate
of 8% or 12%, depending on the date of issuance. The notes were offered to
"accredited investors," as defined in Regulation D of the Securities Act of
1933, as amended.

<PAGE>

The note holders had the option to convert any portion of their outstanding
principal and accrued interest into shares of the Company's stock on the
maturity date. If the Company elected to redeem the notes prior to the maturity
date, the note holders had the option to exercise their conversion rights within
ten days of receiving the notice of redemption. The conversion price was $.20
per share.

On August 14, 2005, the Company redeemed $25,000 of the notes for cash. In
addition, the Company converted $610,000 of principals and accrued interest
of $42,129 into 3,210,068 shares of common stock on August 31, 2005.

As of September 30, 2005, the Company was in default of its obligations on the
remaining $829,500 of notes payable and accrued interest of $64,018 because it
did not have sufficient cash available to redeem the notes and the note holders
chose not to exercise their conversion rights. The Company is currently
negotiating with the note holders to either obtain an extension of the maturity
date or amend the conversion right. The outstanding debt is unsecured and ranks
pari passu with all other unsecured, unsubordinated debt of the Company.

On February 4, 2005, the Company received a bridge loan of $100,000 from an
individual investor that was scheduled to mature in September 2005. On March 16,
2005, the Company repaid the loan in full, including interest of $1,314.

NOTE 5 - COMMON STOCK

In connection with the merger discussed in Note 2, the Company issued 47.6
million shares of its common stock in exchange for all of the outstanding common
stock of Gridline.

As discussed in Note 2, the Company converted $610,000 of notes payable and
$42,129 of accrued interest into 3,210,068 shares of common stock on August 31,
2005.

During the three months ended September 30, 2005, the Company issued 1.6 million
shares of common stock and received proceeds of $160,000.

NOTE 6 - RELATED PARTY TRANSACTIONS

Since its inception, the Company has paid $166,950 in commissions on its debt
financing to a firm owned by the Chairman of the Board. In addition, the Company
has paid $107,900 of consulting expenses to the former Chairman of the Board.

Since inception, the Company has paid $778,724 to iGate, Inc. a company founded
and controlled by one of our former directors.

NOTE 7 - SUBSEQUENT EVENTS

On October 29, 2004, the Board of Directors approved the Incentive Stock Option
Plan, which authorizes the Company to grant its officers and employees a maximum
of 7,000,000 options to purchase shares of common stock. The Company issued
6,370,000 options under this plan on October 24, 2005. The options have an
exercise price of $.10, with 50% vesting immediately on the grant date and the
remaining 50% vesting over a two year period.

<PAGE>

The Company has entered into agreements with various consultants and brokers to
assist with its capital raising efforts. The agreement entitles the parties to
receive cash payments and shares or options of the Company proportional to the
amount of capital raised as a result of the consultant's direct efforts.


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS

FORWARD-LOOKING STATEMENTS

This quarterly report contains forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995. These
statements relate to future events or our future financial performance. In some
cases, you can identify forward-looking statements by terminology such as "may",
"should", "expects", "plans", "anticipates", "believes", "estimates",
"predicts", "potential" or "continue" or the negative of these terms or other
comparable terminology. These statements are only predictions and involve known
and unknown risks, uncertainties and other factors that may cause our or our
industry's actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity, performance or
achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results, levels of
activity, performance or achievements. Except as required by applicable law,
including the securities laws of the United States, we do not intend to update
any of the forward-looking statements to conform these statements to actual
results.

Our financial statements are stated in United States Dollars (US$) and are
prepared in conformity with generally accepted accounting principles in the
United States of America for interim financial statements. The following
discussion should be read in conjunction with our financial statements and the
related notes that appear elsewhere in this quarterly report.

As used in this quarterly report, the terms "we", "us", "our company", "the
Company" and "Gridline" mean Gridline Communications Holdings, Inc, unless
otherwise indicated. All dollar amounts refer to US dollars unless otherwise
indicated.

THE FOLLOWING DISCUSSION AND ANALYSIS PROVIDES INFORMATION WHICH OUR MANAGEMENT
BELIEVES IS RELEVANT TO AN ASSESSMENT AND UNDERSTANDING OF OUR COMPANY'S RESULTS
OF OPERATIONS AND FINANCIAL CONDITION. THIS DISCUSSION SHOULD BE READ TOGETHER
WITH OUR FINANCIAL STATEMENTS AND THE NOTES TO FINANCIAL STATEMENTS WHICH ARE
INCLUDED IN THIS REPORT.

GENERAL

The Company's business plan strategy continues to focus on implementing
high-speed Broadband over Power Line (BPL) access technology, together with
offering underlying value-added services such as Voice over Internet Protocol
(VoIP), Video on Demand (VOD), on-line

<PAGE>

gaming, security for homeland security, offices and home applications, long
distance learning and telemedicine using the Company's BPL platform as the
"pipe" for all applications. The Company has also began to focus on entering
into strategic alliances with a variety of application and content providers of
Internet Protocol (IP) based services that view our BPL platform as a viable
economic means of delivering their services to homes and businesses. The Company
may also enter into exclusive licensing agreements with entities for joint
product development and marketing based upon its ability to successfully develop
and implement certain proprietary technologies for which the Company is
currently developing intellectual property patents.

CASH REQUIREMENTS

Over the next 24 months the Company will require financing in the amount of
$10,500,000 to initiate the deployment of its products and services based on
certain marketing efforts currently underway for the U.S., Central American, and
other markets.

Estimated funding required during the next 24 months:

Development and Patents                                 $    500,000
Marketing and business development                      $  7,500,000
Operating expenses/working capital                      $  2,500,000
                                                        ------------
                                        ----------
Total                                                   $ 10,500,000
                                        ----------

As of September 30, 2005, the Company had working capital deficit of
($1,216,006). To commence the deployment of its services, the Company intends to
raise additional cash in the amount of $500,000 by December 31, 2005. The
Company intends to raise the capital required to meet the Company's immediate
short-term needs, as well as the additional capital required to meet the balance
of our estimated funding requirements for the next twenty-four months, primarily
through private placement and through public offering of its securities. There
can be no assurance that additional financing will be available to us when
needed or, if available, that it can be obtained on commercially reasonable
terms. If the Company is not able to obtain the additional financing on a timely
basis, it will be unable to conduct its operations as planned, and it will not
be able to meet its other obligations as they become due. In such event, the
Company will be forced to scale down or perhaps even cease its operations.

The issuance of additional equity securities by the Company could result in a
significant dilution in the equity interests of its current stockholders.

PRODUCT RESEARCH AND DEVELOPMENT

The Company is currently in negotiations with a select group of Chip Set
manufacturers to complete the product development of its proprietary products.
In addition, in order to begin immediate installation and delivery of the
Company's service offering its has completed an Memorandum of Understanding with
a turn-key product supplier, Xeline Company, Ltd. of Seoul, South Korea. A
definitive supplier agreement is currently being reviewed by both parties. The
Company anticipates a second supplier agreement will be completed within the
fourth quarter of 2005 as well as completion of the Chip Set licensing
agreement(s). The Company anticipates that it will need four (4) employees over
the next few months to assist in the

<PAGE>

establishment of a Research and Development center where the Company intends to
develop and test the applications resulting from its intellectual property
works.

LEASE AGREEMENTS & INVESTMENTS

The Company is currently leasing executive office space with BusinesSuites of
Sugarland. The Company recently renewed this lease for an additional 6 months,
which will result in an expense of approximately $13,500.

The Company plans to invest approximately $100,000 in the first quarter of 2006
in new operating facilities. The Company is looking at possibly relocating these
operations to Albuquerque, New Mexico as part of its strategy to co-locate with
Ibero American Science and Technology Education Consortium ("ISTEC"), with whom
the Company recently entered into a Strategic Alliance Agreement, in ISTEC's New
Mexico facilities. In addition to possible re-location expenses, the Company
intends to purchase computers, software and servers to support its Network
Operations Center and development group, an estimated expense of $500,000.

EMPLOYEES

Currently there are three full-time employees and one part-time employee of the
Company. In addition to its employees, the Company has Consulting and Advisory
Services agreements with the individuals serving on its Board of Directors and
Advisory Board. The Company expects to recruit an, as yet, unspecified number of
part-time and full-time developers over the next 12-month period and also
intends to enter into employment or consulting agreements with certain potential
key individuals.

GOING CONCERN

The report issued by Gridline Communication Corp's ("Gridline") auditors as of
December 31, 2004 and for the period from July 2, 2004 (date of inception)
through December 31, 2004 included an explanatory paragraph regarding concerns
about Gridline's ability to continue as a going concern due to its status as a
development stage company that has not generated any revenues to date.

The continuation of the Company's business is dependent upon its raising
additional capital. The Company intends to raise the additional capital required
to assure the Company's continued operations primarily through private placement
and through public offering of its securities. The Company's issuance of these
additional equity securities could result in a significant dilution in the
equity interests of its current stockholders. The Company may also raise
additional capital by obtaining bank financing or commercial loans, if
available; however, such loans will increase the Company's liabilities and
future cash commitments.

There are no assurances that the Company will be able to either (1) achieve a
level of revenues adequate to generate sufficient cash flow from operations or
(2) obtain additional financing through either private placements, public
offerings and/or bank financing necessary to support its working capital
requirements. To the extent that funds generated from operations and any private
placements, public offerings and/or bank financing are insufficient, the Company
will have to raise additional working capital. No assurances can be made that
additional financing will be available, or if available, will be on terms
acceptable to the Company. If adequate working capital is not available the
Company may not increase its operations. These conditions

<PAGE>

raise substantial doubt about the Company's ability to continue as a going
concern. The financial statements do not include any adjustments relating to the
recoverability and classification of asset carrying amounts or the amount and
classification of liabilities that might be necessary should the Company be
unable to continue as a going concern.

RECENTLY ISSUED ACCOUNTING STANDARDS

The Company does not expect that the adoption of recently issued accounting
pronouncements will have a significant impact on our results of operations,
financial position or cash flows.

ACCOUNTING POLICIES

The Securities and Exchange Commission ("SEC") defines "critical accounting
policies" as those that require application of 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 and may change in
subsequent periods.

USE OF ESTIMATES

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
the disclosure of contingent assets and liabilities at the date of the financial
statements as well as the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates. These
estimates and assumptions relate to recording net revenue, collectibility of
accounts receivable, and the realizability of other intangible assets, accruals,
income taxes, inventory realization and other factors. Management has exercised
reasonable judgment in deriving these estimates; however, actual results could
differ from these estimates. Consequently, change in conditions could affect our
estimates.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Company considers all highly liquid interest-earning investments with a
maturity of three months or less at the date of purchase to be cash equivalents.
Investments with maturities beyond one year may be classified as short-term
based on their highly liquid nature and because such marketable securities
represent the investment of cash that is available for current operations. All
cash and short-term investments are classified as available for sale and are
recorded at market value using the specific identification method; unrealized
gains and losses (excluding other-than-temporary impairments) are reflected in
other income.

RESULTS OF OPERATIONS

For the Nine months ended September 30, 2005 and 2004.

Our company recorded losses of $990,747 and $ 477,154 for the nine month periods
ending September 30, 2005 and 2004, respectively, and losses of $2,367,411 since
inception (July 2, 2004) to September 30, 2005. The principal components of the
losses were for general, technology development and administrative expenses.

<PAGE>

Operating expenses for the nine months ending September 30, 2005 and 2004 were $
899,485 and $474,697, respectively.

LIQUIDITY AND CAPITAL RESOURCES

At September 30, 2005, we had a working capital deficit of ($1,216,006).

At September 30, 2005, the Company's total assets were $16,826, which consisted
of $14,128 in Fixed Assets and $2,698 in prepaid expenses.

At September 30, 2005, the Company's total liabilities were $1,218,704.

The Company has had no revenues since inception.

The Company has no long-term debt and does not regard long-term borrowing as a
good, prospective source of financing.

RECENT ACCOUNTING PRONOUNCEMENTS

On June 7, 2005, FASB issued Statement No. 54, "Accounting Changes and Error
Corrections, a replacement of APB Opinion No. 20, Accounting Changes, and
Statement No. 3, Reporting Accounting Changes in Interim Financial Statements"
("SFAS No. 154"). SFAS No. 154 changes the requirements for the accounting for,
and reporting of, a change in accounting principle. Previously, most voluntary
changes in accounting principles were required to be recognized by way of a
cumulative effect adjustment within net income during the period of the change.
SFAS No. 154 requires retrospective application to prior periods' financial
statements, unless it is impracticable to determine either the period-specific
effects or the cumulative effect of the change. SFAS No. 154 is effective for
accounting changes made in fiscal years beginning after December 15, 2005;
however, SFAS No. 154 does not change the transition provisions of any existing
accounting pronouncements. We do not believe adoption of SFAS No. 154 will have
a material effect on our consolidated financial position, results of operations
or cash flows.

In December 2004, FASB issued the revised SFAS No. 123, "Share-Based Payment"
("SFAS No. 123R"), which addresses the accounting for share-based payment
transactions in which we obtain employee services in exchange for (a) our equity
instruments or (b) liabilities that are based on the fair value of our equity
instruments or that may be settled by the issuance of such equity instruments.
SFAS No. 123R eliminates the ability to account for employee share-based payment
transactions using APB No. 25, and requires instead that such transactions be
accounted for using the grant-date fair value based method. The Company adopted
the provisions of SFAS No. 123R during the third quarter of 2005.

In March 2005, the SEC issued Staff Accounting Bulletin 107, "Shared-Based
Payment" ("SAB 107"), which offers guidance on SFAS No. 123R. SAB 107 was issued
to assist companies by simplifying some of the implementation challenges of SFAS
No. 123R while enhancing the information that investors receive. SAB 107 creates
a framework that is premised on two overarching themes: (a) considerable
judgment will be required by companies to successfully implement SFAS No. 123R,
specifically when valuing employee stock options; and (b) reasonable
individuals, acting in good faith, may conclude differently on the fair value of
employee stock options. Key topics covered by SAB 107 include valuation models,
expected

<PAGE>

volatility and expected term. The Company has applied the principles of SAB 107
in conjunction with its adoption of SFAS No. 123R.

The Company has no off-balance sheet transactions.


ITEM 3. CONTROLS AND PROCEDURES

As required by Rule 13a-15 under the Exchange Act, as of the end of the period
covered by this report, being September 30, 2005, we have carried out an
evaluation of the effectiveness of the design and operation of the company's
disclosure controls and procedures. This evaluation was carried out under the
supervision and with the participation of the Company's management, including
its principal executive officer and principal financial officer. Based upon that
evaluation, the Company's principal executive officer and principal financial
officer concluded that the Company's disclosure controls and procedures are not
effective as of the end of the period covered by this report, because of
adjustments required by our independent auditors, primarily in the area of
equity. Specifically, our independent auditors identified deficiencies in our
internal controls and disclosures related to the valuation and expense
recognition of our stock options. We have made the necessary adjustments to our
financial statements and footnote disclosures in our interim Report on Form
10-QSB. We are in the process of improving our internal controls in an effort to
remediate these deficiencies through the following efforts (1) employing a
permanent Chief Financial Officer who is a Certified Public Accountant and (2)
implementing certain controls and procedures. We are continuing our efforts to
improve and strengthen our control processes and procedures to fully remedy
these deficiencies.

There have been no significant changes in the Company's internal controls over
financial reporting that occurred during its most recent fiscal quarter that
have materially affected, or are reasonably likely to materially affect its
internal controls over financial reporting.

Disclosure controls and procedures are designed to ensure that information
required to be disclosed in the Company's reports filed or submitted under the
Exchange Act is recorded, processed, summarized and reported, within the time
periods specified in the Securities and Exchange Commission's rules and forms.
Disclosure controls and procedures include, without limitation, controls and
procedures designed to ensure that information required to be disclosed in the
Company's reports filed under the Exchange Act is accumulated and communicated
to management, including the Company's president and chief executive officer as
appropriate, to allow timely decisions regarding required disclosure.


                           PART II - OTHER INFORMATION


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

During the three months ended September 30, 2005, the Company completed an
unregistered offering of 1,600,000 shares of its common stock, par value $0.001
per share under Rule 506 of Regulation D under the Securities Act for an
aggregate purchase price of approximately $160,000.00.

All sales were made through D. E. Wine Investments, Inc., to accredited
investors as defined in Rule 501 of Regulation D of the Securities Act and the
Company paid a commission of 10% of the gross proceeds to D.E. Wine Investments,
Inc.

<PAGE>

Use of Proceeds:

         Commissions.                                $  16,000
         Capital Equipment                           $   2,783
         General Corporate/Working Capital           $ 141,217
                                                     ---------

         TOTAL Use of Proceeds                       $ 160,000


ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

As of September 30, 2005, the Company had defaulted in the repayment of a total
of $474,000 in its 8% Note obligations and a total of $335,000 in its 12% Note
obligations due to the Company's dedication of all available resources to the
expansion of its operations and business development. The Company intends to
negotiate, on an individual basis, with each Note-holder for extension, or
conversion to common stock equity, or payment subject to further equity
capitalization which will recognize these defaulted Notes as part of its use of
proceeds.


ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibits:

         3(i)     Articles of Incorporation

         3(ii)    Bylaws

         10.1     Share Exchange and Reorganization Agreement, dated December
                  15, 2004, among Gridline Communications Holdings, Inc. (f/k/a/
                  North Shore Capital IV, Inc.), Gridline Communications Corp.
                  and the Beneficial Stockholders of Gridline Communications
                  Corp., incorporated by reference to exhibit 10.1 to the Form
                  8-K filed December 21, 2004 as amended by Form 8-K/A filed
                  February 22, 2005, as amended by Form 8-K/A filed April 15,
                  2005, as amended by Form 8-K/A filed June 6, 2005

         31.1     Certification of Chief Executive Officer pursuant to Section
                  302 of the Sarbanes-Oxley Act of 2002

         31.2     Certification of Chief Financial Officer pursuant to Section
                  302 of the Sarbanes-Oxley Act of 2002

         32.1     Certification of Chief Executive Officer pursuant to Section
                  906 of the Sarbanes-Oxley Act of 2002

         32.2     Certification by Chief Financial Officer pursuant to Section
                  906 of the Sarbanes-Oxley Act of 2002

<PAGE>

(b)   Since June 30, 2005, the Company has filed the following current reports
      on Form 8-K with the Securities and Exchange Commission :

         Form 8-K/A filed November 14, 2005 relating to Item 9.01, amending Form
         8-K originally filed on November 10, 2005.

         Form 8-K filed November 10, 2005 relating to Item 1.01 and 9.01.

         Form 8-K/A filed October 14, 2005 relating to Item 7.01, amending Form
         8-K originally filed on October 3, 2005.

         Form 8-K filed October 3, 2005 relating to Item 4.01.

         Form 8-K filed September 28, 2005 relating to Item 5.02.

         Form 8-K filed August 31, 2005 relating to Items 5.02 and 9.01.

         Form 8-K filed August 25, 2005 relating to Items 5.02, 8.01 and 9.01.

<PAGE>

                                   SIGNATURES

         In accordance with Section 13 or 15(d) of the Exchange Act, the
Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.





Date: November 21, 2005
                                     By:  /s/ Blaize N. Kaduru
                                         ---------------------------
                                            Blaize N. Kaduru
                                            Chief Executive Officer



Date: November 21, 2005
                                     By: /s/ Terry Dillon
                                         ---------------------------
                                            Terry Dillon
                                            Acting Chief Financial Officer/Chief
                                            Operating Officer/Chief Technology
                                            Officer