**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**WASHINGTON,
      D.C. 20549**





**FORM
      10-Q**





x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
      ACT
      OF 1934





**For
      the quarterly period ended June 30, 2008**





o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
      ACT
      OF 1934





For
      the
      transition period from ________ to ________





Commission
      File Number: **000-52074**




**4C
      Controls Inc.**


(Exact
      Name of Registrant as Specified in its Charter)





**Nevada**
            
            **98-0446287**(State
                or other jurisdiction of
              incorporation
                or organization)
            
            (IRS
                Employer
              Identification
                No.)





**Rockefeller
      Center**


**1230
      Avenue of the Americas - 7th Floor**


**New
      York, NY 10020**


(Address
      of principal executive offices)





**(212)
      886-4590**


(Registrant’s
      Telephone Number, Including Area Code)





**N/A**


(Former
      Name, Former Address and Former Fiscal Year,


if
      Changed Since Last Report)





Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 12 months (or for such shorter period that the registrant was required
      to file such reports), and (2) has been subject to such filing requirements
      for
      the past 90 days.


Yes x No o





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, a non-accelerated filer, or a smaller reporting company.
      See
      the definitions of “large accelerated filer,” “accelerated filer” and “smaller
      reporting company” in Rule 12b-2 of the Exchange Act. (Check
      one):


Large
                Accelerated Filer
            o
            Accelerated
                Filer
            oNon-Accelerated
                Filer
            o
            Smaller
                Reporting Company
            x





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).


Yes x No o





As
      of
      August 12, 2008, the Issuer had 44,329,990 shares of its Common Stock
      outstanding.










**TABLE
      OF CONTENTS**




**PART
                I: FINANCIAL INFORMATION**Item
                1: Financial Statements
            4Item
                2: Management’s Discussion and Analysis or Plan of
                Operation
            11Item
                3: Quantitative and Qualitative Disclosures about Market
                Risk
            15Item
                4T: Controls and Procedures
            15**PART
                II: OTHER INFORMATION**Item
                1: Legal Proceedings
            17Item
                2: Unregistered Sales of Equity Securities and Use of
                Proceeds
            17Item
                3: Defaults Upon Senior Securities
            17Item
                4: Submission of Matters to a Vote of Security Holders
            17Item
                5: Other Information
            17Item
                6: Exhibits
            18**SIGNATURES**
            19





2





**SPECIAL
      NOTE REGARDING FORWARD-LOOKING STATEMENTS**




This
      Report on Form 10-Q (this “Report”) includes forward-looking statements within
      the meaning of the Private Securities Litigation Reform Act of 1995, Section
      27A
      of the Securities Act of 1933 and Section 21E of the Securities Exchange Act
      of
      1934. Forward-looking statements include statements concerning our plans,
      objectives, goals, strategies, future events, future revenues or performance,
      capital expenditures, financing needs and other information that is not
      historical information and, in particular, appear in the sections entitled
“Risk
      Factors,” “Management’s Discussion and Analysis of Financial Condition and
      Results of Operations” and elsewhere in this Report. When used in this Report,
      the words “estimates,” “expects,” “anticipates,” “forecasts,” “plans,”
“intends,” “believes,” “seeks,” “may,” “will,” “should” and variations of these
      words or similar expressions (or the negative versions of any these words)
      are
      intended to identify forward-looking statements. All forward-looking statements,
      including, without limitation, management’s examination of historical operating
      trends, are based upon our current expectations and various assumptions. Our
      expectations, beliefs and projections are expressed in good faith and we believe
      there is a reasonable basis for them. However, we can give no assurance that
      management’s expectations, beliefs and projections will be
      achieved.





There
      are
      a number of risks and uncertainties that could cause our actual results to
      differ materially from the results referred to in the forward-looking statements
      contained in this Report. Important factors outside the scope of our control
      could cause our actual results to differ materially from the results referred
      to
      in the forward-looking statements we make in this Report. Without limiting
      the
      foregoing, if we are unable to acquire approvals or consents from third parties
      or governmental authorities with respect to our new business model, our plans
      to
      commence our new business may become irrevocably impaired.





All
      forward-looking statements included herein are expressly qualified in their
      entirety by the cautionary statements contained or referred to in this Report.
      Except to the extent required by applicable laws and regulations, the Company
      undertakes no obligation to update these forward-looking statements to reflect
      events or circumstances after the date of this Report or to reflect the
      occurrence of unanticipated events.




Unless
      otherwise provided in this Report, references to the “Company,” the
“Registrant,” the “Issuer,” “we,” “us,” and “our” refer to 4C Controls Inc.
      (formally known as Amecs Inc.).




3





**PART
      I**   **FINANCIAL
      INFORMATION**


4C
                    Controls Inc. (Formerly known as Amecs Inc.)(A
                    Development Stage Company)Balance
                    Sheet
  June
                    30
                
                December
                    31,2008
                
                2007**ASSETS**
                
                (unaudited)**Current
                    Assets**Cash
                
                
                229,700
                
                
                6,313Prepaid
                    expense
                
                
                37,818
                
                
                -Investment
                    in BQT Solutions, Ltd.
                
                
                1,602,268
                
                
                -Total
                    Current Assets and Total Assets
                
                
                1,869,786
                
                
                6,313**LIABILITIES
                    AND STOCKHOLDERS' EQUITY****Current
                    Liabilities**Accrued
                    liabilities
                
                
                169,893
                
                
                18,000Deposit
                    for subscription of common stock
                
                
                280,000
                
                
                -Interest
                    payable
                
                
                4,954
                
                
                -Loan
                    payable - related party
                
                
                1,163,709
                
                
                -Total
                    Current Liabilities and Total Liabilities
                
                
                1,618,556
                
                
                18,000Stockholders'
                    Equity (Deficiency)
                
                
                251,230
                
                
                (11,687
                )Total
                    Liabilities and Stockholders' Equity (Deficiency)
                
                
                1,869,786
                
                
                6,313
   4
  4C
                  Controls Inc. (Formerly known as Amecs Inc.)(A
                  Development Stage Company)(Unaudited)
                  Statement of Operations
  For
                    the Three Months ended
                  June
                    30
              
              For
                    the Six Months ended
                  June
                      30
              
              Accumulated
                    from
                    December
                      28, 2004
                    (Date
                      of Inception)2008
              
              2007
              
              2008
              
              2007
              
              to
                  June 30, 2008Revenue**Expenses**Director
                  fees and expenses
              
              
              12,067
              
              
              
              
              
              18,067
              
              
              
              
              
              18,067General
                  & Administrative
              
              
              112,890
              
              
              3,114
              
              
              147,155
              
              
              6,457
              
              
              192,435Interest
              
              
              4,564
              
              
              -
              
              
              4,954
              
              
              -
              
              
              4,954Marketing
                  and public relations
              
              
              85,685
              
              
              
              
              
              93,825
              
              
              -
              
              
              106,325Professional
                  fees
              
              
              229,875
              
              
              2,955
              
              
              357,590
              
              
              13,164
              
              
              491,156Stock
                  option expense
              
              
              74,200
              
              
              -
              
              
              74,200
              
              
              -
              
              
              74,200Total
                  expenses
              
              
              519,281
              
              
              6,069
              
              
              695,791
              
              
              19,621
              
              
              887,137Net
                  Loss
              
              
              (519,281
              )
              
              (6,069
              )
              
              (695,791
              )
              
              (19,621
              )
              
              (887,137
              )Net
                  Loss Per Share
              
              
              (0.0122
              )
              
              (0.0001
              )
              
              (0.0164
              )
              
              (0.0005
              )Weighted
                  Average Shares Outstanding
              
              
              42,524,000
              
              
              42,053,550
              
              
              42,353,397
              
              
              42,053,550*After
                  giving effect to stock dividend.
   5
  4C
                  Controls Inc. (Formerly known as Amecs Inc.)(A
                  Development Stage Company)(Unaudited)
                  Statement of Stockholders' EquityFor
                  the Period from December 28, 2004 (Date of Inception) to March
                  31,
                  2008
  Common
                  Stock
              
              Additional
                  Paid-in
              
              Donated
              
              Common
                    Stock
              
              Deficit
                  Accumulated
                    During
                      the
                      DevelopmentShares
              
              Par
              
              Capital
              
              Capital
              
              Distributable
              
              Stage
              
              TotalBalance
                  - December 28, 2004
              
              #
              
              Value
                  ($)
              
              ($)
              
              ($)
              
              
              
              ($)
              
              ($)(Date
                  of Inception)Common
                  stock issued for cash at$0.00001
                  per share
              
              
              5,000,000
              
              
              50
              
              
              -
              
              
              -
              
              
              
              
              
              
              
              
              50Net
                  loss for the period
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              
              
              
              (6,520
              )
              
              (6,520
              )Balance
                  - December 31, 2004
              
              
              5,000,000
              
              
              50
              
              
              -
              
              
              -
              
              
              
              
              
              (6,520
              )
              
              (6,470
              )Common
                  stock issued for cash at$0.10
                  per share
              
              
              1,007,650
              
              
              10
              
              
              100,755
              
              
              
              
              
              
              
              
              
              
              
              100,765Shares
                  issuance costs
              
              
              
              
              
              
              
              
              (1,548
              )
              
              
              
              
              
              
              
              
              
              
              (1,548
              )Donated
                  services
              
              
              
              
              
              
              
              
              
              
              
              12,000
              
              
              
              
              
              
              
              
              12,000Net
                  loss for the year
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (48,442
              )
              
              (48,442
              )Balance
                  - December 31, 2004
              
              
              6,007,650
              
              
              60
              
              
              99,207
              
              
              12,000
              
              
              
              
              
              (54,962
              )
              
              56,305Donated
                  services
              
              
              
              
              
              
              
              
              
              
              
              12,000
              
              
              
              
              
              
              
              
              12,000Net
                  loss for the year
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (42,707
              )
              
              (42,707
              )Balance
                  - December 31, 2006
              
              
              6,007,650
              
              
              60
              
              
              99,207
              
              
              24,000
              
              
              
              
              
              (97,669
              )
              
              25,598Effect
                  of stock dividend
              
              
              36,045,900
              
              
              
              
              
              
              
              
              
              
              
              360
              
              
              (360
              )
              
              -Net
                  loss for the year
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (93,677
              )
              
              (93,677
              )Balance
                  - December 31, 2007
              
              
              42,053,550
              
              
              60
              
              
              99,207
              
              
              24,000
              
              
              360
              
              
              (191,706
              )
              
              (68,079
              )Sale
                  of common stock
              
              
              470,450
              
              
              5
              
              
              940,895
              
              
              
              
              
              
              
              
              
              
              
              940,900Issuance
                  of stock dividend
              
              
              
              
              
              360
              
              
              
              
              
              
              
              
              (360
              )
              
              
              
              
              -Net
                  loss for the period
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (176,510
              )
              
              (176,510
              )Balance
                  - March 31, 2008
              
              
              42,524,000
              
              
              425
              
              
              1,040,102
              
              
              24,000
              
              
              -
              
              
              (368,216
              )
              
              696,311Stock
                  option grant -June 11 2008
              
              
              
              
              
              
              
              
              74,200
              
              
              
              
              
              
              
              
              
              
              
              74,200Net
                  loss for the period
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              
              (519,281
              )
              
              (519,281
              )Balance
                  - June 30, 2008
              
              
              42,524,000
              
              
              425
              
              
              1,114,302
              
              
              24,000
              
              
              -
              
              
              (887,497
              )
              
              251,230
   6
 4C
                    Controls Inc. (Formerly known as Amecs Inc.)(A
                    Development Stage Company)(Unaudited)
                    Statement of Cash Flows
  For
                    the Six Months ended
                  June
                    30
                
                Accumulated
                      from December 28, 2004
                    (Date
                      of Inception) to
                    June
                      30,2008
                
                2007
                
                2008**Operating
                    Activities**Net
                    loss
                
                
                (695,791
                )
                
                (19,621
                )
                
                (887,137
                )Adjustments
                    to reconcile net loss to net cashused
                    in operating activities:Donated
                    services
                
                
                -
                
                
                6,000
                
                
                24,000Issuance
                    of stock options
                
                
                74,200
                
                
                
                
                
                74,200Change
                    in operating assets and liabilitiesInterest
                    payable
                
                
                4,954
                
                
                -
                
                
                4,954Accrued
                    expenses
                
                
                95,501
                
                
                245
                
                
                169,893Prepaid
                    expense
                
                
                (37,818
                )
                
                -
                
                
                (37,818
                )Net
                    Cash Used in Operating Activities
                
                
                (558,954
                )
                
                (13,376
                )
                
                (651,908
                )**Investing
                    Activities**Investments
                    in BQT Solutions, Ltd.
                
                
                (1,602,268
                )
                
                
                
                
                (1,602,268
                )Net
                    Cash Used in Investing Activities
                
                
                (1,602,268
                )
                
                -
                
                
                (1,602,268
                )**Financing
                    Activities**Advances
                    from a related party
                
                
                -
                
                
                272
                
                
                34,019Repayments
                    to a related party
                
                
                -
                
                
                (928
                )
                
                (34,019
                )Deposit
                    for subscription of common stock
                
                
                280,000
                
                
                -
                
                
                280,000Proceeds
                    of Loan from related party
                
                
                1,163,709
                
                
                
                
                
                1,163,709Net
                    proceeds from issuance of common shares
                
                
                940,900
                
                
                -
                
                
                1,040,167Net
                    Cash Provided by Financing Activities
                
                
                2,384,609
                
                
                (656
                )
                
                2,483,876Increase
                    (Decrease) in Cash
                
                
                223,387
                
                
                (14,032
                )
                
                229,700Cash-
                    Beginning of Period
                
                
                6,313
                
                
                26,768
                
                
                -Cash
                    - End of Period
                
                
                229,700
                
                
                12,736
                
                
                229,700




7




**4C
      CONTROLS INC.**


Notes
      to
      Financial Statements


(Unaudited)





**NOTE
      A - BASIS OF PRESENTATION**





The
      accompanying unaudited financial statements have been prepared in accordance
      with accounting principles generally accepted for interim financial information
      and with the instructions to Form 10-Q and Article 8 of Regulation S-X relating
      to smaller reporting companies.  Accordingly, they do not include all
      of the information and footnotes required by generally accepted accounting
      principles (“GAAP”) for complete financial statements.  In the opinion
      of management, all adjustments (consisting of normal recurring accruals)
      considered necessary for a fair presentation have been
      included.  Operating results for the three and six-month periods ended
      June 30, 2008 are not necessarily indicative of the results that may be expected
      for the year ended December 31, 2008.





The
      balance sheet at December 31, 2007 has been derived from the audited financial
      statements at that date but does not include all of the information and
      footnotes required by GAAP for complete financial statements.





For
      further information, refer to the consolidated financial statements and
      footnotes thereto included in our Annual Report on Form 10-KSB for the year
      ended December 31, 2007 filed on March 31, 2008.





**NOTE
      B - GOING CONCERN**





The
      Company is in the development stage during which management has devoted most
      of
      its activities to the development of a business plan for the Company. As of
      June
      30, 2008, the Company has an accumulated deficit of $887,137. The ability of
      the
      Company to continue as a going concern and to emerge from the development stage
      is dependent upon its successful execution of its plan of operations and ability
      to raise additional financing. There is no guarantee that the Company will
      be
      able to raise additional capital or sell any of its products and services at
      a
      profit. These factors, among others, raise substantial doubt regarding the
      Company’s ability to continue as a going concern. The accompanying financial
      statements do not include any adjustments that might result from the outcome
      of
      this uncertainty.





**NOTE
      C - STOCKHOLDERS’ EQUITY**




On
      December 18, 2007, the Board of Directors declared the payment of a stock
      dividend to the stockholders of record of the Company as of January 2, 2008.
      The
      stock dividend was paid on January 4, 2008. Each stockholder received six
      additional shares of the Company’s common stock for each one share of the
      Company’s common stock which they held on the record date. Following the payment
      of the stock dividend, the issued and outstanding share ownership of the Company
      increased from 6,007,650 shares of Company common stock to 42,053,550 shares
      of
      common stock. As of the date of the financial statements (unaudited) the Company
      had 42,524,000 shares of its common stock issued and outstanding. A deposit
      of
      $280,000 for subscription of common stock was received on June 26, 2008, and
      issued after June 30, 2008.




8




Common
      stock, stock options and warrants issued to other than employees or directors
      in
      exchange for services are recorded on the basis of their fair value, as required
      by SFAS No. 123R, which is measured as of the date required by EITF
      Issue 96-18, *“Accounting
      for Equity Instruments That Are Issued to Other Than Employees for Acquiring,
      or
      in Conjunction with Selling, Goods or Services* ”.
      In
      accordance with EITF 96-18, the non-employee stock options or warrants are
      measured at their fair value by using the Black-Scholes option pricing model
      as
      of the earlier of the date at which a commitment for performance to earn the
      equity instruments is reached (“performance commitment date”) or the date at
      which performance is complete (“performance completion date”). The stock-based
      compensation expenses are recognized on a straight-line basis over the shorter
      of the period over which services are to be received or the vesting period.
      Accounting for non-employee stock options or warrants which involve only
      performance conditions when no performance commitment date or performance
      completion date has occurred as of reporting date requires measurement at the
      equity instruments then-current fair value. Any subsequent changes in the market
      value of the underlying common stock are reflected in the expense recorded
      in
      the subsequent period in which that change occurs.





**NOTE
      D - INVESTMENT IN BQT SOLUTIONS LTD.**





As
      of
      June 30, 2008, the Company had made a cumulative investment of $1,602,268 (AUD
      $1,680,000) into BQT Solutions Ltd. (“BQT”) in consideration for 8,400,000
      ordinary shares of BQT. The ownership of BQT shares as of the period covered
      by
      this Report represented approximately 2% of the issued and outstanding shares
      of
      BQT. Subsequent to the period covered by this Report the BQT shares were subject
      to a 7-to-1 reverse-split, resulting in a corresponding adjustment of the
      Company’s ownership to 1,200,000 BQT shares.





BQT
      is an
      Australian public company specializing in access control systems, biometric
      and
      smart card readers, CCTV, cameras and customized developments for selected
      clients. BQT’s strategy is to diversify and expand its activities in the
      security and surveillance technology sector. BQT intends to focus on
      commercializing its SMAX access control system and support sales of existing
      company technologies of biometrics, smart card readers, CCTV cameras and
      customized solutions for selected key clients. The SMAX Access Control
      Management System is a sophisticated, intelligent and cost effective security
      application that provides movement and access controls within a
      facility.





**NOTE
      E - RELATED PARTY TRANSACTION**





As
      of the
      six months ending June 30, 2008, Rudana Investment Group AG (“Rudana”), the
      Company’s majority shareholder, and companies controlled by Rudana had loaned
      the Company a total of $1,163,709. The funds were used by the company for
      general corporate use and for purposes of financing its strategic alliance
      investment obligations in BQT Solutions Limited. These loans bear interest
      at
      7.5% per annum and are due thirty (30) days after demand.





**NOTE
      F - BASIC AND DILUTED NET LOSS PER SHARE**





The
      Company reports income (loss) per share under the requirements of Statement
      of
      Financial Accounting Standards No. 128, “ *Earnings
      per Share* ”.
      Basic
      income (loss) per share includes the weighted average number of common shares
      outstanding during the year. Diluted income (loss) per share includes the
      weighted average number of shares outstanding and dilutive potential common
      shares, such as warrants and options. Since the Company had losses in the three
      months and six months ended June 30, 2008, the stock options outstanding would
      have an anti-dilutive effect on net loss per share and as such are not included
      in the calculation.




**NOTE
      G - NEW ACCOUNTING PRONOUNCEMENTS**





In
      December 2007, the FASB issued SFAS No. 141 (R), *Business
      Combinations* ,
      and
      SFAS No. 160, *Non-controlling
      Interests in Consolidated Financial Statements* .
      SFAS
      No. 141 (R) requires an acquirer to measure the identifiable assets acquired,
      the liabilities assumed, and any non-controlling interest in the acquiree at
      their fair values on the acquisition date, with goodwill being the excess value
      over the net identifiable assets acquired. SFAS No. 160 clarifies that a
      non-controlling interest in a subsidiary should be reported as equity in the
      consolidated financial statement. The calculation of earnings per share will
      continue to be based on income amounts attributable to the parent. SFAS No.
      141 (R) and SFAS No. 160 are effective for financial statements issued for
      fiscal years beginning after December 15, 2008. Early adoption is prohibited.
      We
      have not yet determined the effect on our financial statements, if any, upon
      adoption of SFAS No. 141 (R) or SFAS No. 160.




9





**NOTE
      H – EMPLOYEE OPTION GRANT**





On
      June
      11, 2008 the Company granted an option to purchase ten thousand (10,000) shares
      of the Company’s common stock to each of the following officers and directors of
      the Company and its subsidiaries: (i) Mr. Jean-Robert Martin; (ii) Mr. Philippe
      Aubay; (iii) Ms. Anne-Marie **** Pérus;
      (iv) Mr. Jean-Louis Recordon; (v) Dr. Augustine Fou; (vi) Mr. Gerald Sullivan;
      and (vii) Ms. Barbara Salz.  These options were granted at a purchase price
      of $5.10.  This purchase price was equal to the closing price of the
      Company’s common stock as quoted on the Nasdaq Over-the-Counter Bulletin Board
      on the day immediately preceding the grant. Using the Black Scholes options
      pricing model, the options were valued at $1.06 per share. The total options
      granted valuation on June 11, 2008 was $74,200.




**NOTE
      I – SUBSEQUENT EVENTS**





On
      July
      22, 2008, the Company received a shareholder loan in the amount of $987,000.00
      (AUD $1,000,000) from Rudana. The Company utilized these funds for purposes
      of
      financing its strategic alliance investment in BQT Solutions Limited. The loan
      has an interest rate of seven and a half percent (7.5%) per annum, which
      together with the principal amount shall be repayable thirty (30) days after
      demand by Rudana.




10


**ITEM
              2.**
            **MANAGEMENT'S
                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND****RESULTS OF
                OPERATIONS**





**Introduction**





The
      following discussion of the financial condition and results of operations of
      the
      Company should be read in conjunction with the financial statements and the
      related notes thereto included elsewhere in this Report. This Report contains
      certain forward-looking statements and the Company's future operating results
      could differ materially from those discussed herein. Certain statements
      contained in this Report, including, without limitation, statements containing
      the words “believes”, “anticipates,” “expects” and the like, constitute
“forward-looking statements” within the meaning of Section 27A of the Securities
      Act of 1933, as amended, and Section 21E of the Securities Exchange Act of
      1934,
      as amended (the “Exchange Act”). However, as the Company intends to issue “penny
      stock,” as such term is defined in Rule 3a51-1 promulgated under the Exchange
      Act, the Company is ineligible to rely on these safe harbor provisions. Such
      forward-looking statements involve known and unknown risks, uncertainties and
      other factors which may cause the actual results, performance or achievements
      of
      the Company to be materially different from any future results, performance
      or
      achievements expressed or implied by such forward-looking statements. Given
      these uncertainties, readers are cautioned not to place undue reliance on such
      forward-looking statements. The Company disclaims any obligation to update
      any
      such factors or to announce publicly the results of any revisions of the
      forward-looking statements contained or incorporated by reference herein to
      reflect future events or developments, except as required by the Exchange
      Act.




We
      were
      incorporated in the State of Nevada on December 28, 2004 as Amecs Inc. On March
      3, 2008, the Company announced a change in its business model. The Company
      now
      intends to pursue a new business providing high technology products and services
      in international security, surveillance, satellites, satellite images and access
      controls.





**Plan
      of Operations**





In
      connection with a change of control that occurred on December 18, 2007, we
      changed our name from “Amecs Inc.” to “4C Controls Inc.” on February 12, 2008.
      Our trading symbol on the over-the-counter bulletin board changed to
      FOUR.





The
      Company intends to position itself as a leading strategic high technology
      systems integrator through affiliations with international security and
      surveillance enterprises as well as offering proprietary services and products
      developed by the Company. The Company intends to design, manage and integrate
      state-of-the-art high technology solutions with comprehensive and fully
      integrated service offerings.





The
      Company’s strategy focuses on technology as the key driver of growth in the
      security market as the market shifts towards more integrated security solutions
      including:





•
            offering
                high technology security integrated solutions providing real-time
                early
                warning and reduction of time scales from threat-detection to termination
                in the field;





•
            designing,
                managing and integrating cutting edge high technology security solutions
                to offer comprehensive service and product offerings;
                and





•
            focusing
                on large scale geographic security and surveillance solutions in
                the
                following market sectors:





o
            Electronic
                Surveillance and Access Control Markets: Biometric, Radio Frequency
                identification (“RFID”), Real Time Locating Systems (“RTLS”) and
                closed-circuit television (“CCTV”);


o
            High
                Resolution Low Equatorial Synthetic Aperture Radar (“SAR”)
                Satellites;


o
            Ground
                stations for Satellite Images; and


o
            High
                performance ground radars for intrusion
                detection.




11




The
      Company intends to offer highly customized risk assessment and responsive
      solutions for broad scale areas, such as sovereign border security, coastal
      security and pipelines security. The Company intends to offer a range of
      cutting-edge security and surveillance solutions which include commercially
      available security products integrated with the Company’s proprietary security
      solutions. The Company expects to deploy multiple mode surveillance technologies
      over large scale geographic areas (including satellite images and ground radar
      systems) as well as offer sophisticated access control systems. The Company
      will
      offer biometrics, smart card readers, CCTV cameras and access control customized
      solutions.





The
      Company expects to focus its satellite program on designing, building and
      operating small SAR satellites dedicated to earth observation and surveillance.
      Dr. Riccardo Maggiora, Chief Technology Officer of the Company, is a professor
      at Politechnico di Torino (“Polito”), one of the leading European technology and
      scientific research institutes. The Company has been working in a cooperative
      relationship with Polito through Professor Maggiora.





The
      Company also intends to establish satellite ground stations at commercially
      attractive locations for receiving, processing and analyzing high and medium
      resolution satellite images.  The Company expects to enter into strategic
      alliance agreements regarding the operation of the satellite ground stations.
      The Company is in the formative stage of designing and planning the
      ground station operations segment.





The
      Company has licensed proprietary technologies from Dr. Riccardo Maggiora, Chief
      Technology Officer of the Company, in the fields of intrusion detection systems,
      radar systems for sovereign border and pipeline surveillance, RFID and RTLS
      for
      monitoring and surveillance. The Company plans to acquire a highly qualified
      manufacturer of security and surveillance products. The completion of such
      acquisition would provide the Company with manufacturing capability for the
      technologies licensed from Dr. Maggiora.





In
      connection with the commencement of the Company’s business model, the Company
      has made a cumulative investment of AUD $1,680,000 (US $1,602,268) in BQT
      Solutions Limited (“BQT Solutions”), an Australian corporation. On March 3,
      2008, the Company entered into a Securities Purchase Agreement with BQT
      Solutions and its subsidiaries. On May 1, 2008, the Company amended and restated
      the Securities Purchase Agreement (the “Amended and Restated Securities Purchase
      Agreement”). The Company’s investment in BQT Solutions and its subsidiaries is
      planned to be AUD $18 million. After giving effect to a seven-for-one reverse
      split by BQT Solutions, the Company expects to acquire an aggregate of 12.8
      million ordinary shares of BQT Solutions for AUD $4 million, of which AUD $1.68
      million has been paid to BQT Solutions as of the period covered by this Report.
      The BQT shares owned by the Company as of the period covered this Report equal
      approximately 2% of the issued and outstanding shares of BQT Solutions.
      Subsequent to the period covered by this Report, an additional AUD $1 million
      has been paid to BQT Solutions. The Company also expects to acquire options
      to
      purchase an additional 9.5 million shares of BQT Solutions. In addition, the
      Company has committed to make an infusion of AUD $14 million into BQT Satellites
      Ltd (“BQT Satellites”), a subsidiary of BQT Solutions. BQT Satellites will
      remain 20% owned by BQT Solutions. In consideration for the payments, the
      Company will acquire 40% of the share capital of BQT Satellites. The Company’s
      investment will enable BQT Satellites to commence operations of a business
      plan
      prepared by PriceWaterhouseCoopers. Rudana, the majority shareholder of the
      Company, has undertaken to provide 4C Controls with the funds required to
      complete the Company’s strategic alliance financing investments in BQT
      Solutions.





**Revenues**





During
      the quarter ended June 30, 2008, the Company had no revenues.





**Research
      and Development**





The
      Company has not yet determined its anticipated spending on research and
      development activities for the year ending December 31, 2008. Future research
      and development efforts are expected to be conducted together with Politechnico
      di Torino, in Torino, Italy through Dr. Riccardo Maggiora, the Company’s Chief
      Technology Officer who is a professor at the Politechnico di
      Torino.




12





**Plant
      and Equipment**





The
      Company has not yet determined its anticipated spending on plant and equipment
      for the year ending December 31, 2008.





**Employees**





As
      of
      June 30, 2008, our employees were Gerald Sullivan, who is the Chief Financial
      Officer and at such date was serving as the Company’s interim President and
      Chief Executive Officer, Riccardo Maggiora, Chief Technology Officer and Barbara
      Salz, Corporate Secretary, each of whom served on a part-time basis as of the
      period covered by this Report. The Company has not yet determined its
      anticipated employee and staff needs for the year ending December 31, 2008.
      On
      June 11, 2008, the Board of Directors of the Company appointed Mr. Olivier
      de
      Vergnies as the Chief Executive Officer of the Company; Mr. Philippe Aubay
      as a
      Director of the Company and as Chairman of 4C Satellite Images &
Technologies S.A., a wholly-owned subsidiary of the Company; Ms.
      Anne-Marie Pérus as a Director of the Company and as Chief Executive
      Officer of 4C Advanced Security Surveillance & Technologies S.A., a
      wholly-owned subsidiary of the Company; and Mr. Jean-Louis Recordon to serve
      as
      Chief Operations Officer of 4C Advanced Security Surveillance & Technologies
      S.A. These appointments are effective as of July 1, 2008.





**Liquidity
      and capital resources**





During
      the quarter ended June 30, 2008 and to date, the primary source of capital
      has
      been loans from existing shareholders, and equity sales. Our operations to
      date
      have consumed substantial amounts of cash.  Our negative cash flow
      from operations is expected to continue and to accelerate in the foreseeable
      future as the Company invests in capital expenditures including service and
      production facilities.





As
      of the
      date of this Report, we have not yet generated any revenues from our business
      operations. Since inception, the Company has incurred total expenses of
      $887,137, including total expenses of $695,791 during the six months ended
      June
      30, 2008.





We
      will
      need to raise additional capital to implement our new business plan and continue
      operations. We are seeking alternative sources of financing, through private
      placement of securities and loans from our shareholders in order for us to
      maintain our operations. We cannot guarantee that we will be successful in
      raising additional cash resources for our operations or that we will stay in
      business after our new business plan has commenced.





Our
      consolidated cash balance at June 30, 2008 was $229,700. As of June 30, 2008,
      our total assets (consisting of cash and nominal investment in BQT Solutions,
      Ltd.) were $1,869,786 and our total liabilities were $1,618,556.





As
      of the
      six months ending June 30, 2008, Rudana Investment Group AG (“Rudana”), the
      Company’s majority shareholder, and companies controlled by Rudana had loaned
      the Company a total of $1,163,709. The funds were used by the company for
      general corporate use and for purposes of financing its strategic alliance
      investment obligations in BQT Solutions Limited. These loans bear interest
      at
      7.5% per annum and are due thirty (30) days after demand.





The
      Company previously issued a warrant to Arimathea Limited in consideration for
      international corporate development services to be rendered on behalf of the
      Company (the “Arimathea Warrant”). On May 29, 2008, the Company amended the
      warrant (the “First Amended Warrant”). Subsequent to the period covered by this
      Report, the Company agreed to amend the Warrant again (the “Second Amended
      Warrant”). The Second Amended Warrant will have an exercise term of 3 years and
      will become exercisable only for the purchase of a number of shares equal to
      (i)
      5% of the amount of capital raised by the Company from introductions made by
      Arimathea, divided by (ii) the original exercise price of $3.45 per share.
      The
      maximum number of shares that may be purchased under the Second Amended Warrant
      is approximately one million shares of Company common stock at a purchase price
      of $3.45 per share, assuming the Company raises $70 million attributable to
      introductions made by Arimathea. All other terms and conditions of the Warrant
      shall remain the same.




13





**Subsequent
      Events**





Effective
      July 1, 2008, Philippe Aubay and Anne-Marie Pérus were appointed to the
      Company’s Board of Directors.




Effective
      July 1, 2008, the Company entered into an employment agreement with Olivier
      de
      Vergnies (the “de Vergnies Agreement”) regarding his service as the Company’s
      new Chief Executive Officer. Mr. de Vergnies’ compensation as the Company’s
      Chief Executive Officer will be 200,000 Euros per annum. The de Vergnies
      Agreement shall have a one year term, commencing on July 1, 2008 and ending
      on
      the first anniversary thereof, unless terminated sooner according to its terms.
      The de Vergnies Agreement shall automatically renew unless either party gives
      notice thirty (30) days prior to the expiration thereof. Mr. de Vergnies may
      terminate the de Vergnies Agreement on two weeks written notice. The Company
      may
      terminate the de Vergnies Agreement without cause at any time; however, the
      Company shall be required to pay Mr. de Vergnies’ salary for the remainder of
      the term. The Company may also terminate the de Vergnies Agreement at any time
      for cause, in which case Mr. de Vergnies shall not be entitled to any further
      compensation. The de Vergnies Agreement contains standard prohibitions on the
      disclosure of trade secrets and other confidential information. During the
      term
      of Mr. de Vergnies employment and for a period of one year thereafter he may
      not
      compete with the Company. Mr. de Vergnies has agreed to devote 100% of his
      professional time to the Company.





On
      July
      11, 2008, the Company entered into a Chief Technology Officer Services Agreement
      (the “CTO Services Agreement”) with Dr. Riccardo Maggiora. The Company has also
      entered into a License Agreement (the “License Agreement”) with respect to
      certain intellectual property invented and/or developed by Dr.
      Maggiora.




Under
      the
      CTO Services Agreement, Dr. Maggiora has agreed to serve as Chief Technology
      Officer for a three year period.  Dr. Maggiora has agreed to devote such
      time to his work as Chief Technology Officer as he deems reasonably necessary,
      with the Company acknowledging that Dr. Maggiora serves as an Assistant
      Professor at Politechnico di Torino and shall continue such service. In
      consideration for services to the Company, Dr. Maggiora has been granted a
      one
      time issuance of one million shares of the Company’s common stock.  Dr.
      Maggiora may sell his shares after an initial one year holding period, so long
      as such sales are made in accordance with applicable securities laws or pursuant
      to available exemptions therefrom.  Dr. Maggiora shall perform his services
      in Italy.  The CTO Services Agreement contains customary provisions
      regarding protection of Company trade secrets, non-solicitation of Company
      employees or customers and non-competition with the Company during the term
      of
      the Agreement.  All discoveries and works made or conceived by Dr. Maggiora
      while working on Company matters which are not subject to intellectual property
      interests of any third parties, that relate to the Company’s present or
      anticipated activities, or are used or useable by the Company, shall be governed
      by the License Agreement described below. Either the Company or Dr. Maggiora
      may
      terminate the CTO Services Agreement, with or without cause, upon ten days
      notice to the other party.




Under
      the
      License Agreement, the Company has acquired exclusive rights to
      technologies in the field of intrusion detection systems, radar systems for
      border and pipeline surveillance, and technologies for monitoring and
      surveillance systems (collectively, the “Acquired Technologies”).  The
      License Agreement has granted to the Company the right to file patents on the
      Acquired Technologies, and all improvements and related know-how.  The
      Company shall pay to Dr. Maggiora a royalty of one-half percent of sales of
      products related to the Acquired Technologies which are sold by the Company
      or
      any sublicensee.  Starting in the second year of the License Agreement,
      there will be a minimum royalty payment to Dr. Maggiora of 250,000 Euros per
      year.  The License Agreement includes rights to sublicense all of the
      Acquired Technologies. The term of the Agreement is three years, which shall
      automatically renew for subsequent three year periods, unless for any reason
      the
      Company gives notice of non-renewal. The Company has also reserved the right
      to
      terminate the License Agreement after one year. The License Agreement may not
      be
      terminated by Dr. Maggiora except in the event of a breach of the Agreement
      by
      the Company which has not been cured within ninety days of notice of any breach.
      Dr. Maggiora has agreed to provide reasonable support and technical assistance
      during the term of the License Agreement with respect to the Company’s use of
      the Acquired Technologies and exercise of the Company’s rights under the License
      Agreement.




14





On
      July
      22, 2008, the Company received a shareholder loan in the amount of $987,000.00
      from Rudana. This loan has an interest rate of seven and a half percent (7.5%)
      per annum, which together with the principal amount shall be repayable thirty
      (30) days after demand by Rudana. The Company utilized these funds for purposes
      of financing its strategic alliance with BQT Solutions Limited





On
      August
      12, 2008, the Company completed its first round private offering of restricted
      common stock in the aggregate amount of $20 million by receiving firm commitment
      subscriptions from investors. The Company is in the process of receiving funds
      from the private offering subscriptions. The first round placement reflects
      the
      initial phase of the Company's private offering of $70 million of restricted
      common stock. Included as part of the $20 million in commitments was a
      subscription for the purchase of $12.3 million of restricted common stock from
      the Company by Swiss Prime Capital Limited, a British Virgin Islands private
      equity fund (the “Fund”). All powers regarding determinations to vote and
      disposition of Company shares owned by the Fund are made solely by the directors
      of the Fund and the Fund Manager. In addition, a subscription for the purchase
      of $3 million of restricted Company common stock as part of the $20
      million in subscription commitments was from Falak Investments AG, a Swiss
      investment company. The CEO of Falak Investments AG also serves as CEO of Rudana
      Investment Group AG. The foregoing subscriptions for restricted common stock
      were subscribed at the private placement purchase price of $5.50 per share.
      All such shares when purchased shall be restricted from transfer and may not
      be
      sold or traded unless registered or an exemption from registration is available.
      All such shares subscribed for purchase were offered outside of the United
      States under exemption from registration under the Securities Act of 1933,
      as
      amended (the “Securities Act”) pursuant to Regulation S promulgated thereunder.
      Under Rule 901 of Regulation S, for the purposes only of Section 5 of the
      Securities Act, the terms offer, offer to sell, sell, sale, and offer to buy
      are
      deemed not to include offers and sales of securities that occur outside the
      United States to non-U.S. persons.


On
        August
        18, 2008, the Company issued the three press releases attached hereto,
        disclosing the following:
 
 ·
            The
                Company has announced that it has formally requested the U.S. Securities
                & Exchange Commission to take action against the perpetrators of
                intentionally misleading and negative misstatements made in public
                attacks
                on the Company. The Company has been subject to short sale attacks
                caused
                by websites known for disseminating misleading information to create
                panic
                in the market and artificially manipulate share prices. ·
            The
                Company has entered into a strategic alliance with Sire Contracting
                Company in Dubai, United Arab Emirates. Under the terms of the alliance,
                4C Controls will be the exclusive provider of high technology security
                and
                surveillance solutions for all of Sire’s current
                projects. ·
            The
                Company has appointed FBI Supervising Special Agent (Ret.) Dr. Philip
                Hayden as its Vice President, Security Assessment & Threats Analysis.
                Dr. Hayden comes to 4C Controls after a distinguished career with
                the
                Federal Bureau of Investigation. Dr. Philip Hayden has spent years
                involved in many aspects of law enforcement and security.  As
        disclosed in one of the aforementioned press releases, the Company has been
        advised by its majority shareholder, Rudana, that Rudana intends to acquire
        additional shares for investment purposes in the public market as it believes
        the Company is now undervalued. Rudana has advised the Company that Rudana
        intends to purchase such shares pursuant to the safe harbor provided by Rule
        10b-18, Purchases of Certain Equity Securities by the Issuer and Others,
        of the
        Securities Exchange Act of 1934, as amended.
  **Off
        Balance Sheet Arrangements**





The
      Company does not have any off balance sheet arrangements that have or are
      reasonably likely to have a current or future effect on the Company's financial
      condition, changes in financial condition, revenues or expenses, results of
      operations, liquidity, capital expenditures or capital
      resources.





**ITEM
      3.** **QUANTITATIVE
      AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**





Not
      Applicable.




**ITEM
      4T.** **CONTROLS
      AND PROCEDURES**





As
      of the
      end of the period covered by this report, the Company carried out, under the
      supervision and with the participation of the Company’s management, including
      its Chief Executive Officer and Chief Financial Officer, an evaluation of the
      effectiveness of the design and operation of the Company’s disclosure controls
      and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities
      Exchange Act of 1934) in ensuring that information required to be disclosed
      by
      the Company in its reports is recorded, processed, summarized and reported
      within the required time periods. In carrying out that evaluation, management
      identified a material weakness (as defined in Public Company Accounting
      Oversight Board Standard No. 2) in our internal control over financial
      reporting.




15





The
      material weakness identified by Management consisted of inadequate staffing
      and
      supervision within the bookkeeping and accounting operations of the Company.
      The
      relatively small number of employees who have bookkeeping and accounting
      functions prevents us from segregating duties within the Company’s internal
      control system. The inadequate segregation of duties is a weakness because
      it
      could lead to the untimely identification and resolution of accounting and
      disclosure matters or could lead to a failure to perform timely and effective
      reviews. Accordingly, based on their evaluation of the Company’s disclosure
      controls and procedures as of June 30, 2008, the Company’s Chief Executive
      Officer and its Chief Financial Officer have concluded that, as of that date,
      the Company’s controls and procedures were not effective for the purposes
      described above. The Company intends to take steps to remediate such procedures
      as soon as reasonably possible.





There
      was
      no change in the Company’s internal control over financial reporting (as defined
      in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934)
      during the quarter ended June 30, 2008 that has materially affected or is
      reasonably likely to materially affect the Company’s internal control over
      financial reporting.




16




**PART
      II.**  **OTHER
      INFORMATION**




**ITEM
      1.** **LEGAL
      PROCEEDINGS**




The
      Company is not, and has not been during the period covered by this Report,
      a
      party to any legal proceedings.





**ITEM
      2:** **UNREGISTERED
      SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**




None.





**ITEM
      3:** **DEFAULTS
      UPON SENIOR SECURITIES**





Not
      Applicable.





**ITEM
      4:** **SUBMISSION
      OF MATTERS TO A VOTE OF SECURITY HOLDERS**




No
      matters were submitted to the vote of the Company’s security holders during the
      period covered by this Report.





**ITEM
      5:** **OTHER
      INFORMATION**





Not
      Applicable.




17




**ITEM
      6.**  **EXHIBITS**





**Exhibit**
            **Description**10.9
            Form
                of Promissory Note issued by the Company to Rudana Investment Group
                AG.10.10
            Form
                of Company Director’s Agreement.10.11
            Employment
                Agreement by and between the Company and Olivier de Vergnies, dated
                July
                1, 2008.10.12
            Chief
                Technology Officer Services Agreement by and between the Company
                and
                Riccardo Maggiora dated July 10, 2008.10.13
            License
                Agreement by and between the Company and Riccardo Maggiora dated
                July 10,
                2008.31.1
            Certification
                of Principal Executive Officer pursuant to Section 302 of the
                Sarbanes-Oxley Act of 2002.31.2
            Certification
                of Principal Financial Officer pursuant to Section 302 of the
                Sarbanes-Oxley Act of 2002.32.1
            Certification
                of the Principal 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 the Principal Financial Officer pursuant to 18 U.S.C. Section
                1350, as
                adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002.99.1
            Press Release
              dated
              August 18, 2008.99.2
            Press Release
              dated
              August 18, 2008.99.3
            Press Release
              dated
              August 18, 2008.





18




**SIGNATURES**





Pursuant
      to the requirements of the Securities Exchange Act of 1934, the registrant
      has
      duly caused this report to be signed on its behalf by the undersigned thereunto
      duly authorized.





**4C
                CONTROLS INC.**By:
            /s/
                Olivier de VergniesName:
                Olivier de VergniesTitle:  
                Chief Executive OfficerBy:
            /s/
                Gerald SullivanName:
                Gerald SullivanTitle:  
                Chief Financial Officer





Dated:
      August 18, 2008




19