----

|                           |                                                                  | Page          |
|--------------------------------|-----------------------------------------------------------------------|---------------|
|                           |                                                                  |          |
| PART I - FINANCIAL INFORMATION |   3                                                         |
|                           |                                                                  |          |
| Item 1.                        | Financial Statements                                                  |   3 |
|                           |                                                                  |          |
| Item 2.                        | Management’s Discussion and Analysis of Financial Condition and |          |
|                           | Results of Operations                                                 | 15            |
|                           |                                                                  |          |
| Item 4.                        | Controls and Procedures                                               | 16            |
|                           |                                                                  |          |
| PART II - OTHER INFORMATION    | 16                                                                    |
|                           |                                                                  |          |
| Item 1.                        | Legal Proceedings                                                     | 16            |
|                           |                                                                  |          |
| Item 6.                        | Exhibits                                                              | 17            |
|                           |                                                                  |          |
| SIGNATURES                     | 18                                                                    |

----

|                                             | Page   |
|--------------------------------------------------|--------|
|                                             |   |
| Balance Sheet (Unaudited) at June 30, 2010       | 4      |
|                                             |   |
| Statements of Operations (Unaudited)             |   |
| for the Three Month Periods Ended                |   |
| June 30, 2009 and 2010                           | 5      |
|                                             |   |
| Statements of Cash Flows (Unaudited) for the     |   |
| Three Month Periods Ended June 30, 2009 and 2010 | 6      |
|                                             |   |
| Notes to Unaudited Financial Statements          | 7      |

----

| INTERNET INFINITY, INC. |
|-------------------------|
| BALANCE SHEETS          |
| (UNAUDITED)             |

| ASSETS                                                       |
|--------------------------------------------------------------|
|                                                         |   |   |   |   |   |   |
|                                                         |   | June 30, 2010 |   |   | March 31, 2010 |   |
|                                                         |   |   |   |   |   |   |
| CURRENT ASSETS                                               |   |   |   |   |   |   |
| Cash & cash equivalents                                  |   | $ | 5,397 |   |   | $ | - |   |
| Total assets                                                 |   |   | - |   |   |   | - |   |
|                                                         |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                        |
|                                                         |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES                                          |   |   |   |   |   |   |   |   |
| Accounts payable & accrued expenses                      |   |   | 259,563 |   |   |   | 256,892 |   |
| Note payable                                                 |   |   | 27,000 |   |   |   | 27,000 |   |
| Note payable - related parties                               |   |   | 411,400 |   |   |   | 411,400 |   |
| Due to officer                                               |   |   | 326,366 |   |   |   | 305,239 |   |
| Due to related party                                         |   |   | 7,209 |   |   |   | 7,209 |   |
| Total current liabilities                                    |   |   | 1,031,538 |   |   |   | 1,007,740 |   |
|                                                         |   |   |   |   |   |   |   |   |
| STOCKHOLDERS' DEFICIT                                        |   |   |   |   |   |   |   |   |
| Preferred stock, $.001 par value; 30,000,000 shares          |   |   |   |   |   |   |   |   |
| authorized, none outstanding                                 |   |   | - |   |   |   | - |   |
| Common stock, $.001 par value; 100,000,000 shares authorized |   |   |   |   |   |
|  28,718,780 issued and outstanding                      |   |   | 28,719 |   |   |   | 28,719 |   |
| Additional paid in capital                                   |   |   | 1,075,042 |   |   |   | 1,075,043 |   |
| Accumulated deficit                                          |   |   | (2,129,900 | ) |   |   | (2,111,502 | ) |
| Total stockholders' deficit                                  |   |   | (1,026,139 | ) |   |   | (1,007,740 | ) |
|                                                         |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' deficit                  |   | $ | 5,397 |   |   | $ | - |   |

|                                                                                 |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| The accompanying notes are an integral part of these unaudited financial statements. |

----

| INTERNET INFINITY, INC.                                  |
|----------------------------------------------------------|
| STATEMENTS OF OPERATIONS                                 |
| FOR THE THREE MONTH PERIODS ENDED June 30, 2010 and 2009 |
| (Unaudited)                                              |

|                                             |   | For the Three Month Periods |       |
|--------------------------------------------------|--------|-----------------------------|------------|
|                                             |   | Ended June 30               |       |
|                                             |   | 2010                        |       |   | 2009 |   |
|                                             |   |                        |       |   |   |   |
| Net revenues                                     |   | $                           | -          |   |   | $ | - |   |
| Cost of revenues                                 |   |                        | -          |   |   |   | - |   |
| Gross profit                                     |   |                        | -          |   |   |   | - |   |
|                                             |   |                        |       |   |   |   |   |   |
| Operating expenses                               |   |                        |       |   |   |   |   |   |
| Professional fees                                |   |                        | 3,257      |   |   |   | 6,074 |   |
| Salaries and related expenses                    |   |                        | -          |   |   |   | - |   |
| Consulting fees to related party                 |   |                        |       |   |   |   | 900 |   |
| Others                                           |   |                        | 589        |   |   |   | 1,200 |   |
| Total operating expenses                         |   |                        | 3,846      |   |   |   | 8,174 |   |
|                                             |   |                        |       |   |   |   |   |   |
| Loss from operations                             |   |                        | (3,846     | ) |   |   | (8,174 | ) |
|                                             |   |                        |       |   |   |   |   |   |
| Other income (expense):                          |   |                        |       |   |   |   |   |   |
| Interest expense                                 |   |                        | (14,553    | ) |   |   | (12,988 | ) |
|                                             |   |                        |       |   |   |   |   |   |
| Loss before income taxes                         |   |                        | (14,553    | ) |   |   | (21,162 | ) |
|                                             |   |                        |       |   |   |   |   |   |
| Provision for income taxes                       |   |                        | -          |   |   |   | 800 | ) |
|                                             |   |                        |       |   |   |   |   |   |
| Net loss                                         |   | $                           | (18,399    | ) |   | $ | (21,962 | ) |
|                                             |   |                        |       |   |   |   |   |   |
| Basic & diluted weighted average number of   |   |                        |       |   |   |
|     common stock outstanding |   |                        | 28,718,780 |   |   |   | 28,718,780 |   |
|                                             |   |                        |       |   |   |   |   |   |
| Basic & diluted net loss per share           |   | $                           | (0.00      | ) |   | $ | (0.00 | ) |

|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Weighted average number of shares used to compute basic and diluted loss per share is the same as the effect of dilutive securities is anti-dilutive. |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these unaudited financial statements.                                                                  |

----

|  INTERNET INFINITY, INC.                                  |
|----------------------------------------------------------------|
|  STATEMENTS OF CASH FLOWS                                 |
|  FOR THE THREE MONTH PERIODS ENDED JUNE 30, 2010 AND 2009 |
|  (Unaudited)                                              |

|                                                                |   |   |    |   |   |
|---------------------------------------------------------------------|--------|--------|---------|--------|--------|
|                                                                | 2010   |   |    | 2009   |   |
|                                                                |   |   |    |   |   |
|  CASH FLOWS FROM OPERATING ACTIVITIES:                         |   |   |    |   |   |
|  Net loss                                                      |   | $      | (18,399 | )      |   | $ | (21,962 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in) |   |   |    |   |   |
|  operating activities:                                         |   |   |    |   |   |   |   |   |
| Capital contribution via services provided                          |   |   | (3,428  | )      |   |   | - |   |
| Increase in accounts payable and accrued expenses                   |   |   | 2,671   |   |   |   | 15,990 |   |
| Increase in due to related company                                  |   |   | -       |   |   |   | - |   |
|  Net cash provided by (used in) operating activities           |   |   | (19,156 | )      |   |   | (5,972 | ) |
|                                                                |   |   |    |   |   |   |   |   |
|  CASH FLOWS FROM FINANCING ACTIVITIES:                         |   |   |    |   |   |   |   |   |
|  Increase/(decrease) in due to related company                 |   |   |    |   |   |   | 900 |   |
|  Proceeds from due to officer                                  |   |   |    |   |   |   | 3,870 |   |
|   Proceeds from notes payable - related party             |   |   |    |   |   |   | 1,201 |   |
|   Net cash provided by (used in) financing activities     |   |   | 24,553  |   |   |   | (5,972 | ) |
|                                                                |   |   |    |   |   |   |   |   |
|  NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS        |   |   | 5,397   |   |   |   | - |   |
|                                                                |   |   |    |   |   |   |   |   |
|  CASH & CASH EQUIVALENTS, BEGINNING BALANCE                |   |   | -       |   |   |   | - |   |
|                                                                |   |   |    |   |   |   |   |   |
|  CASH & CASH EQUIVALENTS, ENDING BALANCE                   |   | $      | 5,397   |   |   | $ | - |   |
|                                                                |   |   |    |   |   |   |   |   |
| SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION:                 |   |   |    |   |   |
|                                                                |   |   |    |   |   |   |   |   |
|  Interest paid                                                 |   | $      | -       |   |   | $ | - |   |
|                                                                |   |   |    |   |   |   |   |   |
|  Taxes paid                                                    |   | $      | -       |   |   | $ | - |   |

|                                                                                 |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| The accompanying notes are an integral part of these unaudited financial statements. |   |

----

| NOTE 1  | ORGANIZATION |
|--------------|--------------|

| NOTE 2  | BASIS OF PRESENTATION AND BUSINESS |
|--------------|------------------------------------|

----

----

----

| NOTE 3 | UNCERTAINTY OF ABILITY TO CONTINUE AS A GOING CONCERN |
|--------|-------------------------------------------------------|

| NOTE 4  | ACCOUNT PAYABLE & ACCRUED EXPENSES |
|--------------|----------------------------------------|

|               |   | June 30,2010 |    |   | March 31,2010 |   |
|--------------------|--------|-------------------|---------|--------|--------------------|--------|
|               |   |              |    |   |               |   |
| Accrued taxes      |   | $                 | -       |   |               | $      | 550 |   |
| Accrued interest   |   |              | 222,114 |   |               |   | 212,220 |   |
| Accrued accounting |   |              | -       |   |               |   | 8,000 |   |
| Accounts payable   |   |              | 37,449  |   |               |   | 36,122 |   |
|               |   | $                 | 259,563 |   |               | $      | 256,892 |   |

----

| NOTE 5  | NOTES PAYABLE |
|--------------|---------------|

|                                                                                                                                                                                                                                                                                                                                                      |   | June 30,2010 |   |   | March 31,2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                      |   |              |   |   |               |   |
| Five notes payable with various unrelated individuals. The notes are due upon 90 days written notice from the individuals. The notes are unsecured, with interest ranging from 6% to 12% payable quarterly. The notes have been outstanding since 1990. Interest expense for the three month periods ended June 30, 2010 and 2009 was $660 and $660. |   | $                 | 27,000 |   |               | $      | 27,000 |   |

| NOTE 6  | RELATED ENTITIES TRANSACTIONS |
|--------------|-------------------------------|

|                                  |   |   |   |
|---------------------------------------|--------|--------|--------|
| Internet Infinity, Inc. (The Company) |   |   | 85.10  | % |
| Morris & Associates, Inc.         |   |   | 71.30  | % |
| Morris Business Development Company   |   |   | 82.87  | % |
| Apple Realty, Inc.                    |   |   | 100.00 | % |
| L&M Media, Inc.                   |   |   | 100.00 | % |

|                                                                                                                                                                                                                                                                                                                                                                                                      |   | June 30,2010 |    |   | March 31,2010 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|--------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                      |   |              |    |   |               |   |
| Anna Moras (mother of George Morris), with interest at 6% per annum, due upon 90 days written notice. Interest expenses for the quarters ended June 30, 2010 and March 31, 2010 on this note are $533 and $525, respectively.                                                                                                                                                                        |   | $                 | 14,652  |   |               | $      | 14,652 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                      |   |              |    |   |               |   |   |   |
| Apple Realty, Inc. (related through a common controlling shareholder), secured by assets of the Company, past due and payable upon demand. Interest accrues at 6% per annum. This note is in connection with consulting fees and office expenses owed. Interest expenses on this note for the quarters ended June 30, 2010 and March 31, 2010 are $7,668 and $7,552, respectively.                   |   |              | 360,215 |   |               |   | 360.215 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                      |   |              |    |   |               |   |   |   |
| L&M Media, Inc. (related through a common controlling shareholder) – Accounts payable for purchases, converted into a note during the three month period ended September 30, 2004. The note is due on demand, unsecured and interest accrues at 6% per annum. Interest expenses on this note for the quarters ended June 30, 2010 and March 31, 2010 are $813 and $801, respectively. |   |              | 36,533  |   |               |   | 36,533 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                      |   |              |    |   |               |   |   |   |
| Total notes payable – related parties                                                                                                                                                                                                                                                                                                                                                               |   | $                 | 411,400 |   |               | $      | 411,400 |   |

----

|           |   | Monthly |   |   | Annually |   |
|----------------|--------|---------|--------|--------|----------|--------|
| Rent           |   | $       | 20     |   |     | $      | 120 |   |
| Telephone      |   |    | 20     |   |     |   | 120 |   |
| Utilities      |   |    | 20     |   |     |   | 120 |   |
| Office Expense |   |    | 20     |   |     |   | 120 |   |
|           |   | $       | 100    |   |     | $      | 1,200 |   |

|                                                                                        |   | June 30,2010 |    |   | March 31,2010 |   |
|---------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|--------------------|--------|
|                                                                                        |   |              |    |   |               |   |
| Unsecured miscellaneous payables upon demand to the chairman with interest at 6% per annum. |   | $                 | 326,364 |   |               | $      | 305,239 |   |

----

| NOTE 7  | INCOME TAXES |
|--------------|--------------|

|                                                       |   | June 2010 |     |   | March 2010 |   |
|------------------------------------------------------------|--------|-----------|----------|--------|------------|--------|
| Deferred tax asset – net operating loss              |   | $         | 553,791  |   |       | $      | 573,130 |   |
| Less valuation allowance                                   |   |      | (553,791 | )      |       |   | (573,130 | ) |
|                                                       |   |      |     |   |       |   |   |   |
|       Net deferred tax asset |   | $         | -        |   |       | $      | - |   |

|                                           |   | June 30, 2010 |   |   | March 31, 2010 |   |
|------------------------------------------------|--------|--------------------|--------|--------|----------------|--------|
| Tax expense (credit) at statutory rate-federal |   |               | -34    | %      |           |   | -34 | % |
| State tax expense net of federal tax           |   |               | -6     | %      |           |   | -6 | % |
| Changes in valuation allowance                 |   |               | 40     | %      |           |   | 40 | % |
| Tax expense at actual rate                     |   |               | -      |   |           |   | - |   |

----

|                      |   | June 2010 |   |   | March 2010 |   |
|---------------------------|--------|-----------|--------|--------|------------|--------|
| Current tax expense:      |   |      |   |   |       |   |
| Federal                   |   | $         | -      |   |       | $      | - |   |
| State                     |   |      | -      |   |       |   | - |   |
| Total current             |   | $         | -      |   |       | $      | - |   |
|                      |   |      |   |   |       |   |   |   |
| Deferred tax credit:      |   |      |   |   |       |   |   |   |
| Federal                   |   | $         |   |   |       | $      | 36,560 |   |
| State                     |   |      |   |   |       |   | 6,452 |   |
| Total deferred            |   | $         |   |   |       | $      | 43,011 |   |
| Less: valuation allowance |   |      | (      | )      |       |   | (43,011 | ) |
| Net deferred tax credit   |   |      | -      |   |       |   | - |   |
|                      |   |      |   |   |       |   |   |   |
| Tax expense               |   | $         | -      |   |       | $      | - |   |

----

| Item 2. | Management’s Discussion and Analysis or Plan of Operation |
|---------|-----------------------------------------------------------------|

----

| · | an obligation under a guarantee contract,                                                                                                                                                           |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | a retained or contingent interest in assets transferred to the unconsolidated entity or similar arrangement that serves as credit, liquidity or market risk support to such entity for such assets, |

| · | any obligation, including a contingent obligation, under a contract that would be accounted for as a derivative instrument, or                                                                                                                                                                                                          |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | any obligation, including a contingent obligation, arising out of a variable interest in an unconsolidated entity that is held by us and material to us where such entity provides financing, liquidity, market risk or credit risk support to, or engages in leasing, hedging or research  and development services with us. |

| PART II - OTHER INFORMATION |
|-----------------------------|

| Item 1. | Legal Proceedings |
|---------|-------------------|

----

|   | 2 | Certificate of Ownership and Merger of Morris & Associates, Inc., a California corporation, into Internet Infinity, Inc., a Delaware corporation* |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.1 | Plan of Merger (Internet Infinity - Delaware into Internet Infinity - Nevada)*** |
|--------|-----|----------------------------------------------------------------------------------|

|   | 2.2 | State of Delaware Certificate of Merger of Domestic Corporation into Foreign Corporation which merges Internet Infinity, Inc., a Delaware corporation, with and into Internet Infinity, Inc., a Nevada corporation*** |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2.3 | Articles of Merger (Pursuant to NRS 92A.200) which merges Internet Infinity, Inc., a Delaware corporation, with Internet Infinity, Inc., a Nevada corporation, with the Nevada corporation being the surviving entity*** |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3 | Articles of Incorporation of Internet Infinity, Inc.* |
|--------|---|-------------------------------------------------------|

|   | 3.1       | Amended Certificate of Incorporation of Internet Infinity, Inc.* |
|--------|-----------|------------------------------------------------------------------|
|   |      |                                                             |
|   | 3.2  | Bylaws of Internet Infinity, Inc.*                               |

|   | 3.3 | Corporate Charter and Articles of Incorporation of Internet Infinity, Inc., a Nevada corporation*** |
|--------|-----|-----------------------------------------------------------------------------------------------------|

|   | 3.4 | Certificate of Amendment to Articles of Incorporation of Internet Infinity, Inc., a Nevada corporation++ |
|--------|-----|----------------------------------------------------------------------------------------------------------|

|   | 10.1 | Master License and non-exclusive Distribution Agreement between Internet Infinity, Inc. and Lord & Morris Productions, Inc.* |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------|

|   | 10.2 | Master License and Exclusive Distribution Agreement between L&M Media, Inc. and Internet Infinity, Inc.* |
|--------|------|--------------------------------------------------------------------------------------------------------------|

|   | 10.3 | Master License and Exclusive Distribution Agreement between Hollywood Riviera Studios and Internet Infinity, Inc.* |
|--------|------|-------------------------------------------------------------------------------------------------------------------------|

|   | 10.4   | Fulfillment Supply Agreement between Internet Infinity, Inc. and Ingram Book Company** |
|--------|--------|----------------------------------------------------------------------------------------|
|   |   |                                                                                   |
|   | 14     | Code of Ethics for CEO and Senior Financial Officers+                                  |

|   | 31.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                    | INTERNET INFINITY, INC. |                                   |
|-----------------------------------------|-------------------------|----------------------------------------|
|                                    |                    |                                   |   |
| Dated:  August 14, 2010  | By:                     | /s/ George Morris                      |   |
|                                    |                    | George Morris, Chief Executive Officer |   |
|                                    |                    |                                   |   |