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SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-QSB
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2005
 Commission File # 0-33473
 MOLIRIS CORP.
  
 
 
 
 o þ
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PART I  FINANCIAL INFORMATIONItem 1
 Financial StatementsItem 2
 Managements Discussion and Analysis or Results of OperationsItem 3
 Controls and ProceduresPART II  OTHER INFORMATIONItem 1
 Legal ProceedingsItem 2
 Unregistered Sales of Equity Securities and Use of ProceedsItem 3
 Defaults upon Senior SecuritiesItem 4
 Submission of Matters to a Vote of Security HoldersItem 5
 Other InformationItem 6
 Exhibits and Reports on Form 8-KSIGNATURESCertification of Principal Executive OfficerCertification of Principal Financial OfficerCertification of Principal Executive and Financial Officer
 2




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Page No.Consolidated Balance Sheet at June 30, 2005
(unaudited) and December 31, 2004
    
    
    4Statements of Operations for the six months ended
June 30, 2005 and 2004
    
    
    5Statement of Changes in Stockholders Deficit for the
six months ended June 30, 2005
    
    
    6Statements of Cash Flows for the six months ended
June 30, 2005 and 2004
    
    
    7Notes to Financial Statements
    
    
    8
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MOLIRIS CORP.
CONSOLIDATED BALANCE SHEETS
 June 30,
    
    
    December 31,2005
    
    
    2004(Unaudited)ASSETSCash and cash equivalents
    
    $
    18,293
    
    
    $
    Interest receivable
    
    
    8,826
    
    
    
    Notes receivable
    
    
    962,550
    
    
    
    Prepaid expenses
    
    
    5,182
    
    
    
    Total current assets
    
    
    994,851
    
    
    
    TOTAL ASSETS
    
    $
    994,851
    
    
    $
    LIABILITIES AND STOCKHOLDERS DEFICITLIABILITIESAccounts payable
    
    $
    433,568
    
    
    $
    454,080Notes payable in default
    
    
    233,655
    
    
    
    233,655Guarantee of bank note payable in default
    
    
    138,451
    
    
    
    138,451Accrued expenses
    
    
    2,324,113
    
    
    
    2,155,530Due to Related Parties
    
    
    222,477
    
    
    
    305,773Net liabilities of discontinued operations
    
    
    501,242
    
    
    
    459,585Total current liabilities
    
    
    3,853,506
    
    
    
    3,747,074STOCKHOLDERS DEFICITCommon stock, $0.001 par value, 50,000,000 shares authorized:10,740,000
issued and outstanding at June 30, 2005
and 2,347,000 issued and outstanding at December 31, 2004
    
    
    10,740
    
    
    
    2,347Class B common stock, no par value, 1,000,000 shares
authorized:none issued and outstanding
    
    
    
    
    
    
    Additional paid in capital
    
    
    2,507,777
    
    
    
    1,404,552Accumulated deficit
    
    
    (5,377,172
    )
    
    
    (5,153,973
    )TOTAL STOCKHOLDERS DEFICIT
    
    
    (2,858,655
    )
    
    
    (3,747,074
    )TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT
    
    $
    994,851
    
    
    $
    
  4




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MOLIRIS CORP.
 
 STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(Consolidated)
    
    
    
    
    
    
    (Consolidated)REVENUES
    
    $
    
    
    
    $
    303,202
    
    
    $
    
    
    
    $
    637,178COST OF SALES
    
    
    
    
    
    
    107,526
    
    
    
    
    
    
    
    388,234GROSS PROFIT
    
    
    
    
    
    
    195,676
    
    
    
    
    
    
    
    248,944OPERATING EXPENSES:Salaries, wages and commissions
    
    
    
    
    
    
    250,987
    
    
    
    1,969
    
    
    
    319,300Selling, general and administrative
    
    
    51,107
    
    
    
    122,843
    
    
    
    61,721
    
    
    
    200,164Rent
    
    
    102,665
    
    
    
    43,943
    
    
    
    102,665
    
    
    
    74,753Depreciation
    
    
    
    
    
    
    9,045
    
    
    
    
    
    
    
    19,066TOTAL OPERATING EXPENSES
    
    
    153,772
    
    
    
    426,818
    
    
    
    166,355
    
    
    
    613,283LOSS BEFORE OTHER INCOME (EXPENSE)
    
    
    (153,772
    )
    
    
    (231,142
    )
    
    
    (166,355
    )
    
    
    (364,339
    )OTHER INCOME (EXPENSE):Interest expense
    
    
    (13,250
    )
    
    
    (3,832
    )
    
    
    (27,411
    )
    
    
    (7,138
    )Interest income
    
    
    8,500
    
    
    
    
    
    
    
    8,500
    
    
    
    TOTAL OTHER INCOME (EXPENSE)
    
    
    (4,750
    )
    
    
    (3,832
    )
    
    
    (18,911
    )
    
    
    (7,138
    )LOSS FROM CONTINUING OPERATIONS
    
    
    (158,522
    )
    
    
    (234,974
    )
    
    
    (185,266
    )
    
    
    (371,477
    )DISCONTINUED OPERATIONSOperating loss from discontinued operations
    
    
    (6,875
    )
    
    
    
    
    
    
    (37,933
    )NET LOSS
    
    $
    (165,397
    )
    
    $
    (234,974
    )
    
    $
    (223,199
    )
    
    $
    (371,477
    )NET LOSS PER SHARE  BASIC AND DILUTEDContinuing Operations
    
    $
    (0.02
    )
    
    $
    (0.14
    )
    
    $
    (0.02
    )
    
    $
    (0.23
    )Discontinued Operations
    
    
    0.00
    
    
    
    
    
    
    
    (0.01
    )
    
    
    $
    (0.02
    )
    
    $
    (0.14
    )
    
    $
    (0.03
    )
    
    $
    (0.23
    )WEIGHTED AVERAGE NUMBER OF COMMON
SHARES  BASIC AND DILUTED
    
    
    10,352,900
    
    
    
    1,627,000
    
    
    
    6,921,970
    
    
    
    1,627,000
  5




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MOLIRIS CORP.
 
 STATEMENT OF CHANGES IN STOCKHOLDERS DEFICIT
 SIX MONTHS ENDED JUNE 30, 2005
 Class BCommon Stock
    
    Common Stock
    
    Additional
    
    
    
    
    
    TotalShares
    
    
    
    
    
    Shares
    
    
    
    
    
    Paid In
    
    Accumulated
    
    StockholdersIssued
    
    Amount
    
    Issued
    
    Amount
    
    Capital
    
    Deficit
    
    DeficitBALANCE
AT 
DECEMBER 31, 2004
    
    
    2,347,000
    
    
    $
    2,347
    
    
    
    
    
    
    $
    
    
    
    $
    1,404,552
    
    
    $
    (5,153,973
    )
    
    $
    (3,747,074
    )Shares
issued for cash
    
    
    8,393,000
    
    
    
    8,393
    
    
    
    
    
    
    
    
    
    
    
    1,103,225
    
    
    
    
    
    
    
    1,111,618Net loss,
six months ending June 30, 2005
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (223,199
    )
    
    
    (223,199
    )BALANCE
AT 
JUNE 30, 2005
    
    
    10,740,000
    
    
    $
    10,740
    
    
    
    
    
    
    $
    
    
    
    $
    2,507,777
    
    
    $
    (5,377,172
    )
    
    $
    (2,858,655
    )
  6




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MOLIRIS CORP.
 
 STATEMENTS OF CASH FLOWS
(Unaudited)
 Six months endedJune 30,2005
    
    2004(Consolidated)CASH FLOWS FROM OPERATING ACTIVITIES:Net loss
    
    $
    (223,199
    )
    
    $
    (371,477
    )Adjustments to reconcile net loss to net cash provided by (used in)
operating activities:Depreciation
    
    
    
    
    
    
    19,066Changes in operating assets and liabilities:Decrease (increase) in accounts receivable
    
    
    (8,826
    )
    
    
    (13,162
    )Decrease (increase) in notes receivable
    
    
    (962,550
    )Decrease (increase) in inventory
    
    
    
    
    
    
    884Decrease (increase) in prepaids & other current assets
    
    
    (5,182
    )
    
    
    (123,742
    )(Decrease) increase in bank overdrafts
    
    
    
    
    
    
    19,923(Decrease) increase in accounts payable
    
    
    (20,512
    )
    
    
    274,486(Decrease) increase in accrued expenses
    
    
    168,583
    
    
    
    63,289(Decrease) increase in due to related party
    
    
    (83,296
    )
    
    
    142,853NET CASH PROVIDED (USED) BY CONTINUING OPERATING ACTIVITIES
    
    
    (1,134,982
    )
    
    
    12,120NET CASH PROVIDED BY DISCONTINUED OPERATIONS
    
    
    41,657
    
    
    
    NET CASH FLOW PROVIDED (USED) BY OPERATING ACTIVITIES
    
    
    (1,093,325
    )
    
    
    12,120CASH FLOW FROM INVESTING ACTIVITIESPurchase of property and equipment
    
    
    
    
    
    
    (36,441
    )NET CASH USED IN INVESTING ACTIVITIES
    
    
    
    
    
    
    (36,441
    )CASH FLOWS FROM FINANCING ACTIVITIESIssuance of
common stock, for cash
    
    
    1,111,618
    
    
    
    Capital contribution by majority owner
    
    
    
    
    
    
    1,000Principal repayment on short-term borrowings
    
    
    
    
    
    
    (4,783
    )Proceeds from long-term borrowings
    
    
    
    
    
    
    34,041Principal repayment on long-term borrowings
    
    
    
    
    
    
    (10,739
    )Repayments from factor financing, net
    
    
    
    
    
    
    (1,613
    )NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES
    
    
    1,111,618
    
    
    
    17,906NET INCREASE (DECREASE) IN CASH
    
    $
    18,293
    
    
    $
    (6,415
    )CASH AT BEGINNING OF PERIOD
    
    
    
    
    
    
    6,415CASH AT END OF PERIOD
    
    $
    18,293
    
    
    $
    CASH INTEREST PAID
    
    $
    661
    
    
    $
    
  7




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MOLIRIS CORP.
 
 NOTES TO FINANCIAL STATEMENTS
 JUNE 30, 2005
 NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Organization
    Principles of Consolidation
  Basis of Presentation
   Nature of Business
  Income Taxes
  8




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MOLIRIS CORP.
 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 Use of Estimates and Assumptions
  Accounts Receivable
   Notes and Interest Receivables
  Equipment
  Impairment of Long-Lived Assets
  Fair Value of Financial Instruments
  (Continued) 9




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MOLIRIS CORP.
 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 Environmental Matters
  Revenue Recognition
  Loss per Common Share
  Accumulated Other Comprehensive Income
  Recent Accounting Pronouncements
    10




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MOLIRIS CORP.
 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 2: GOING CONCERN
   NOTE 3: SALE OF RECEIVABLES WITH RECOURSE
   NOTE 4: NOTES RECEIVABLE
      NOTE 5: EQUIPMENT
   11




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MOLIRIS CORP.
 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 6: NOTES PAYABLE IN DEFAULT
  $200,000 note payable, dated Oct. 28, 2003, bearing interest at
zero percent per annum, payable monthly with final payment due
Sept. 1, 2008, in default as of June 30, 2005.
    
    $
    178,500$32,265 note payable, dated Dec. 12, 2001, bearing interest at
5.9% per annum, payable monthly with final payment due Dec. 12,
2006, net of repossession value, in default as of June 30, 2005.
    
    
    4,766$18,013 note payable,
dated October 1, 2004, bearing interest at
4% per annum, payable monthly with final payment due July 1,
2005 in default as of June 30, 2005.
    
    
    17,889$27,500 note payable, dated November 19, 2004, bearing interest
at 12.0% per annum, payable monthly with final payment due
February 19, 2005, in default as of June 30, 2005.
    
    
    27,500$5,000 note payable, dated November 19, 2004, bearing interest at
12.0% per annum, payable monthly with final payment due February
19, 2005, in default as of June 30, 2005.
    
    
    5,000Total
    
    $
    233,655
   (continued) 12




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MOLIRIS CORP.
 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 6: NOTES PAYABLE IN DEFAULT (CONTINUED)
    NOTE 7: NOTE GUARANTEE
  NOTE 8: ACCRUED EXPENSES
  Accrued Lease Liability
    
    $
    279,311Accrued Payroll and Taxes
    
    
    141,531Lawsuit Settlement(s)
    
    
    116,000Credit Card Liability
    
    
    54,015Sales Tax Payable
    
    
    5,648Liability from Acquisition-Ranging
    
    
    1,692,000Accrued professional fees
    
    
    8,227Accrued interest expense
    
    
    26,750Bank overdraft
    
    
    631$
    2,324,113
 NOTE 9: LEASE COMMITMENTS
    (continued) 13




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MOLIRIS CORP.
 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 9: LEASE COMMITMENTS (CONTINUED)
  NOTE 10: COMMITMENTS CONTINGENCIES & LITIGATION
        NOTE 11: RELATED PARTY TRANSACTIONS
   14




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MOLIRIS CORP.
 NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2005
 NOTE 12: DISCONTINUED OPERATIONS
  Revenues
    
    $
    36,652Cost of
Revenues
    
    
    (8,749
    )Gross Profit
    
    
    27,903Operating Expense
    
    
    (65,836
    )Loss from Discontinued Operations
    
    $
    (37,933
    )
  AmountAssetsCash
    
    $
    8,055Accounts Receivable
    
    
    6,882Equipment, net
    
    
    90,000LiabilitiesDue to Related Parties
    
    
    (18,668
    )Accounts Payable
    
    
    (89,926
    )Accrued Liabilities
    
    
    (265,334
    )Bank Loans Payable
    
    
    (232,251
    )Net Liabilities
    
    $
    (501,242
    )
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Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2005
    
    
    2004
    
    
    2005
    
    
    2004(Consolidated)
    
    
    
    
    
    
    (Consolidated)REVENUES
    
    $
    
    
    
    $
    303,202
    
    
    $
    
    
    
    $
    637,178COST OF SALES
    
    
    
    
    
    
    107,526
    
    
    
    
    
    
    
    388,234GROSS PROFIT
    
    
    
    
    
    
    195,676
    
    
    
    
    
    
    
    248,944OPERATING EXPENSES:Salaries, wages and commissions
    
    
    
    
    
    
    250,987
    
    
    
    1,969
    
    
    
    319,300Selling, general and administrative
    
    
    51,107
    
    
    
    122,843
    
    
    
    61,721
    
    
    
    200,164Rent
    
    
    102,665
    
    
    
    43,943
    
    
    
    102,665
    
    
    
    74,753Depreciation
    
    
    
    
    
    
    9,045
    
    
    
    
    
    
    
    19,066TOTAL OPERATING EXPENSES
    
    
    153,772
    
    
    
    426,818
    
    
    
    166,355
    
    
    
    613,283LOSS BEFORE OTHER INCOME (EXPENSE)
    
    
    (153,772
    )
    
    
    (231,142
    )
    
    
    (166,355
    )
    
    
    (364,339
    )OTHER INCOME (EXPENSE):Interest expense
    
    
    (13,250
    )
    
    
    (3,832
    )
    
    
    (27,411
    )
    
    
    (7,138
    )Interest Income
    
    
    8,500
    
    
    
    
    
    
    
    8,500
    
    
    
    TOTAL OTHER INCOME (EXPENSE)
    
    
    (4,750
    )
    
    
    (3,832
    )
    
    
    (18,911
    )
    
    
    (7,138
    )LOSS FROM CONTINUING OPERATIONS
    
    
    (158,522
    )
    
    
    (234,974
    )
    
    
    (185,266
    )
    
    
    (371,477
    )DISCONTINUED OPERATIONSOperating loss from discontinued operations
    
    
    (6,875
    )
    
    
    
    
    
    
    (37,933
    )NET LOSS
    
    $
    (165,397
    )
    
    $
    (234,974
    )
    
    $
    (223,199
    )
    
    $
    (371,477
    )
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$200,000 note payable, dated Oct. 28, 2003, bearing interest at
zero percent per annum, payable monthly with final payment due
Sept. 1, 2008, in default as of June 30, 2005
    
    $
    178,500$32,265 note payable, dated Dec. 12, 2001, bearing interest at
5.9% per annum, payable monthly with final payment due Dec. 12,
2006, net of repossession value, in default as of June 30, 2005
    
    
    4,766$18,013 note payable, dated October 1, 2004, bearing interest at
4% per annum, payable monthly with final payment due July 1,
2005 in default as of June 30, 2005
    
    
    17,889$27,500 note payable, dated November 19, 2004, bearing interest
at 12.0% per annum, payable monthly with final payment due February 19, 2005, in default as of June 30, 2005
    
    
    27,500$5,000 note payable, dated November 19, 2004, bearing interest at
12.0% per annum, payable monthly with final payment due February
19, 2005, in default as of June 30, 2005
    
    
    5,000Total
    
    $
    233,655
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(a)
    
    Exhibits
 Exhibit
    

Description31.1
    
    Certification by Principal Executive Officer31.2
    
    Certification of Principal Financial Officer32
    
    Certifications of Principal Executive and Financial Officer Pursuant to 906
 (b)
    
    Reports on Form 8-K.
  Date of Event Reported
    
    Items ReportedJune 17, 2005
    
    4.01 Change in Registrants Certifying Accountant
 28




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NAME AND SIGNATURE
    
    TITLE
    
    DATE/s/ Clyde R. Parks

Clyde R. Parks
    
    Principal Executive Officer,
Principal Financial Officer,
Sole Director
    
    September 2, 2005
 29