FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                              Washington D.C. 20549

                   Quarterly Report Under Section 13 or 15 (d)
                     Of the Securities Exchange Act of 1934

                         For Quarter Ended June 30, 2005

                        Commission File Number 0001082562

                                 INNCARDIO, INC

             (Exact name of registrant as specified in its charter)

               UTAH                                        87-0624752
(State or other jurisdiction of                          (IRS Employer
 incorporation or organization)                         Identification No.)

                                712 Fifth Avenue
                               New York, NY, 10019
                     --------------------------------------
                    (Address of principal executive offices)

     Registrant's telephone number
     including area code                          (646) 723-8940
                                                  --------------

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

                  Former Address, 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 such shorter period that the registrant was
required to file such reports)

Yes |X| No |_|

and (2) has been subject to such filing requirements for the past 90 days.

Yes |X| No |_|

                                   18,010,000
                                   ----------

              (Number of shares of common stock the registrant had
                         outstanding as of July 10, 2005)
<PAGE>

                                     PART 1

ITEM 1 - FINANCIAL STATEMENTS

The condensed financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate to
make the information presented not misleading.

In the opinion of the Company, all adjustments, consisting of only normal
recurring adjustments, necessary to present fairly the financial position of the
Company as of June 30, 2005 and the results of its operations and changes in its
financial position from March 31, 2005 through June 30, 2005 have been made. The
results of its operations for such interim period is not necessarily indicative
of the results to be expected for the entire year.

                                 INNCARDIO, INC
                          (A Development Stage Company)
                           Consolidated Balance Sheets

                                                       June 30,    December 31,
                                                         2005          2004
                                                      -----------   -----------
                                                      (Unaudited)
                             ASSETS

                                                      -----------   -----------
TOTAL ASSETS                                          $        --   $        --
                                                      ===========   ===========

              LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities
  Accrued expenses                                    $   709,836   $        --
  Note Payable-Related Party                            1,941,606       352,869

                                                      -----------   -----------
    Total Current Liabilities                           2,651,442       352,869
                                                      -----------   -----------

Stockholders' Equity

  Common Stock, par value $.001; 50,000,000 shares
    authorized, 18,010,000 issued and outstanding
                                                           18,010        18,010
  Additional paid in capital                              (18,010)      (18,010)
  Accumulated (Deficit) during development stage       (2,651,442)     (352,869)
                                                      -----------   -----------
    Total Stockholders' Deficit                        (2,651,442)     (352,869)
                                                      -----------   -----------

                                                      -----------   -----------
    Total Liabilities and Stockholders' Deficit       $        --   $        --
                                                      ===========   ===========

The accompanying notes are an integral part of these financial statements
<PAGE>

                                 INNCARDIO, INC
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                                                    From inception
                                            For the Three Months Ended           For the Six Months Ended           August 2, 2004
                                                     June 30,                            June 30,                     to June 30,
                                              2005               2004              2005               2004              2005
                                           ------------       ------------      ------------       ------------      ------------
<S>                                        <C>                <C>               <C>                <C>               <C>
Revenues

  Revenues                                 $         --       $         --      $         --       $         --      $         --
                                           ------------       ------------      ------------       ------------      ------------

    Total Revenues                                   --                 --                --                 --                --

Expenses

  Research and development                 $  2,145,944                 --      $  2,167,416                 --      $  2,505,835
  General and administrative                     86,494                 --           131,157                 --           145,607
                                           ------------       ------------      ------------       ------------      ------------

    Total Expenses                            2,232,438                 --         2,298,573                 --         2,651,442

    Loss from Operations                     (2,232,438)                --        (2,298,573)                --        (2,651,442)

Other Income (Expenses)

    Total Other Income (Expenses)                    --                 --                --                 --                --
                                           ------------       ------------      ------------       ------------      ------------
    Income (Loss) Before Taxes               (2,232,438)                --        (2,298,573)                --        (2,651,442)

   Taxes                                             --                 --                --                 --                --

                                           ------------       ------------      ------------       ------------      ------------
Net Income (Loss)                          $ (2,232,438)      $         --      $ (2,298,573)      $         --      $         --
                                           ------------       ------------      ------------       ------------      ------------


Net loss per share, basic and diluted      $      (0.12)      $         --      $       0.13       $         --
                                           ============       ============      ============       ============


Weighted average number of
shares outstanding, basic and diluted        18,010,000                           18,010,000
                                           ============       ============      ============       ============
</TABLE>

The accompanying notes are an integral part of these financial statements

<PAGE>

                                 INNCARDIO, INC
                          (A Development Stage Company)
                      Consolidated Statement of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                           From Inception
                                                          For the Six Months Ended        August 2, 2004 to
                                                                  June 30,                     June 30,
                                                             2005              2004             2005
                                                          -----------       -----------      -----------
<S>                                                       <C>               <C>              <C>
Cash flows from operating activities

Net Income (Loss)                                          (2,298,573)               --       (2,651,442)
  Adjustments to reconcile net Income (Loss) to
  Net Cash Provided by Operating Activities:
    Increase (Decrease) in Accrued expenses                   709,836                --          709,836
                                                          -----------       -----------      -----------
    Net cash Flows Provided (Used)
    by Operating Activites                                 (1,588,737)               --       (1,941,606)

Cash Flows from Investing Activites
    Net Cash Flows Provided (Used)                                 --                --               --
    by Investing Activities

Cash Flows from Financing Activites

  Proceeds from Notes Payable                               1,588,737                 ~        1,941,606
                                                          -----------       -----------      -----------

    Net Cash Flows provided (Used)
    by Financing Activites                                  1,588,737                 ~        1,941,606
                                                          -----------       -----------      -----------


                                                          -----------       -----------      -----------
Net increase in cash and cash equivalents                  (1,588,737)               --       (1,941,606)
                                                          ===========       ===========      ===========


Cash and cash equivalents at beginning of the period               --                --               --
                                                          -----------       -----------      -----------


                                                          -----------       -----------      -----------
Cash and cash equivalents at end of the period            $        --       $        --      $        --
                                                          ===========       ===========      ===========

Supplemental information

  Interest                                                $        --       $        --      $        --
  Taxes                                                   $        --       $        --      $        --
</TABLE>

The accompanying notes are an integral part of these financial statements
<PAGE>

                                  Inncardio Inc
                          (a Development Stage Company)
                        Notes to the Financial Statements
                                  June 30, 2005

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Re-organization and Basis of Presentation

Pursuant to an acquisition agreement dated February 22, 2005 between Inncardio,
Inc., ("Inncardio") a privately held Delaware corporation, and Softwall
Equipment Corporation., ("Softwall") a Utah corporation. Softwall issued
16,500,000 shares of its common stock to the shareholders of Inncardio Inc to
capitalize certain debts within the company after effecting a 7.388:1 reverse
stock split which had the effect of leaving the Softwall shareholders with
1,510,000 shares of common stock, (in exchange for 100% of the outstanding
shares of Inncardio, Inc), and issued 16,500,000 shares to the shareholders of
Inncardio. Inncardio's management and Board of Directors assumed control of the
combined entity, the acquisition has been treated as a recapitalization of
Inncardio and accordingly, the accompanying consolidated financial statements
include the historical operations of Inncardio and the capital structure of
Softwall. Softwall immediately changed its name to Inncardio, Inc.

Principles of Consolidation

The consolidated financial statements include the accounts of Inncardio, Inc.
and its wholly owned subsidiaries: Inncardio, Inc. (a Delaware Corporation) and
Inncardio Limited. (a United Kingdom Corporation) (collectively, the "Company").
All significant inter-company accounts and transactions have been eliminated.

Going Concern

The accompanying consolidated financial statements have been prepared on the
basis of accounting principles applicable to a going concern, which assume that
the Company will continue in operation for at least one year and will be able to
realize its assets and discharge its liabilities in the normal course of
operations. However, as of June 30, 2005, the Company did not have significant
cash or other material assets, nor did it have an established source of revenues
sufficient to cover its operating costs and allow it to continue as a going
concern. The Company is presently entirely dependent for its capital
requirements on a credit facility of $12 million advanced by its major
shareholder, Bioaccelerate Holdings, Inc. (Bioaccelerate). The Company's future
capital requirements will depend upon numerous factors including, but not
limited to, continued progress in developing its products, market penetration
and profitable operations from the sale of its products. These financial
statements do not reflect adjustments that would be necessary if the Company
were unable to continue as a going concern. While members of the Company's
management have been successful in raising capital for other ventures in the
past, and plan to raise equity capital for the Company, there can be no
assurance that these plans will be achieved on acceptable terms.

Nature of Business

The Company's business strategy is to develop its existing pharmaceutical
products, acquire additional pharmaceutical early-mid stage product candidates
predominantly in the oncology sector, selectively license its technology and
establish strategic collaborations to advance its product pipeline.

Concentrations of Credit Risk

The Company has no significant off-balance-sheet concentrations of credit risk
such as foreign exchange contracts, options contracts or other foreign hedging
arrangements.

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly
liquid debt instruments purchased with a maturity of three months or less to be
cash equivalents to the extent the funds are not being held for investment
purposes.

Research and Development

Costs and expenses that can be clearly identified as research and development
are charged to expense as incurred in accordance with FASB statement No. 2,
"Accounting for Research and Development Costs."

Foreign Currency Translation

The Company's primary functional currency is the British Pound. Assets and
liabilities are translated using the exchange rates in effect at the balance
sheet date. Expenses are translated at the average exchange rates in effect
during the year. Translation gains and losses not reflected in earnings are
reported in accumulated other comprehensive losses in stockholders' deficit.

<PAGE>

Significance of Estimates

The preparation of these consolidated financial statements in conformity with
accounting principles generally accepted in the United States of America require
management to make estimates and assumptions that affect the reported amounts
and disclosures contained in these financial statements. Actual results could
differ from those estimates.

Loss per Share

In accordance with SFAS No. 128, Earnings per Share, and SEC Staff Accounting
Bulletin (SAB) No. 98, basic net loss per common share is computed by dividing
net loss for the period by the weighted average number of common shares
outstanding during the period. Under SFAS No. 128, diluted net income (loss) per
share is computed by dividing the net income (loss) for the period by the
weighted average number of common and common equivalent shares, such as stock
options and warrants, outstanding during the period. Such common equivalent
shares have not been included in the computation of net loss per share as their
effect would be anti-dilutive.

                                                                   June 30,
                                                                     2005
                                                                 -----------
                                                                 (Unaudited)
      Numerator -Net loss                                       $ (2,651,442)

      Denominator--Weighted average shares outstanding            18,010,000
      Net loss per share                                        $      (0.15)
      Incremental common shares (excluded from denominator
         because they are anti-dilutive)

Income Taxes

Income taxes are recorded in accordance with SFAS No. 109, "Accounting for
Income Taxes". This statement requires the recognition of deferred tax assets
and liabilities to reflect the future tax consequences of events that have been
recognized in the financial statements or tax returns. Measurement of the
deferred items is based on enacted tax laws. In the event the future
consequences of differences between financial reporting bases and tax bases of
the Company's assets and liabilities result in a deferred tax asset, SFAS No.
109 requires an evaluation of the probability of being able to realize the
future benefits indicated by such assets. A valuation allowance related to a
deferred tax asset is recorded when it is more likely than not that some portion
or all of the deferred tax asset will not be realized.

The Company is subject to income taxes in the United States of America and the
United Kingdom. As of June 30, 2005 the Company had net operating loss carry
forwards for income tax reporting purposes of approximately $2,651,442 that may
be offset against future taxable income through 2024. Current tax laws limit the
amount of loss available to be offset against future taxable income when a
substantial change in ownership occurs. Therefore, the amount available to
offset future taxable income may be limited. No tax benefit has been reported in
the financial statements because the Company believes there is a 50% or greater
chance the carry-forwards will expire unused. Accordingly, the potential tax
benefits of $901,490, the loss carry-forward is offset by a valuation allowance
of the same amount.

Fair Value of Financial Instruments

The Company's financial instruments include cash equivalents and accounts
payable. Because of the short-term nature of these instruments, their fair value
approximates their recorded value. The Company does not have material financial
instruments with off-balance sheet risk.

Recent Accounting Pronouncements

The Financial Accounting Standards Board (FASB) issues various accounting
standards and interpretations that could have an impact on the Company's
consolidated financial statements. Recent pronouncements include: FASB Statement
144 - Accounting for the impairment or disposal of long-lived assets; FASB 145 -
Rescission of FASB Statements 4, 44 and 64 and amendment of FASB 13; FASB 146 -
Costs associated with exit or disposal activities; FASB 148 - Accounting for
stock based compensation and FASB 150 - Accounting for certain financial
instruments with characteristics of both liabilities and equity. FIN 46 -
Consolidation of Variable Interest Entities, an interpretation of ARB 51.
Adoption of these standards and interpretations has not had a material effect on
the Company's financial condition, results of operations or liquidity.

On December 16, 2004 the FASB issued SFAS No. 123R, "Share-Based Payment," which
is an amendment to SFAS No. 123, "Accounting for Stock-Based Compensation." This
new standard eliminates the ability to account for share-based compensation
transactions using Accounting Principles Board, or APB, Opinion No. 25,
"Accounting for Stock Issued to Employees," and generally requires such
transactions be accounted for using a fair-value-based method and the resulting
cost recognized in our financial statements. This new standard is effective for
awards that are granted, modified or settled in cash in interim and annual
periods beginning after June 15, 2005, December 15, 2005 for small business
issuers. In addition, this statement will apply to unvested options granted
prior to the effective date. The Company will adopt this new standard effective
for the first fiscal quarter of 2006 and it has not yet determined what impact
this standard will have on its financial position or results of operations.
<PAGE>

In November 2004, the FASB issued SFAS No. 151, "Inventory Costs: an amendment
of ARB No. 43, Chapter 4," to clarify the accounting for abnormal amounts of
idle facility expense, freight, handling costs and wasted material. SFAS No. 151
is effective for inventory costs incurred during fiscal years beginning after
June 15, 2005. We do not believe the provisions of SFAS No. 151, when applied,
will have a material impact on our financial position or results of operations."

NOTE 2- EQUITY TRANSACTIONS

Pursuant to an acquisition agreement dated February 22, 2005 between Inncardio,
Inc., ("Inncardio") a privately held Delaware corporation, and Softwall
Equipment Corporation., ("Softwall") a Utah corporation. Softwall issued
16,500,000 shares of its common stock to the shareholders of Inncardio Inc to
capitalize certain debts within the company after effecting a 7.388:1 reverse
stock split which had the effect of leaving the Softwall shareholders with
1,510,000 shares of common stock, (in exchange for 100% of the outstanding
shares of Inncardio, Inc), and issued 16,500,000 shares to the shareholders of
Inncardio. Inncardio's management and Board of Directors assumed control of the
combined entity, the acquisition has been treated as a recapitalization of
Inncardio and accordingly, the accompanying consolidated financial statements
include the historical operations of Inncardio and the capital structure of
Softwall. Softwall immediately changed its name to Inncardio, Inc.

NOTE 3- NOTE DUE TO RELATED PARTY

On March 9, 2005, the Company entered into a secured line of credit for $12.0
million with a related party Corporation who is a shareholder of the Company,
which bears interest at 3.625%. The Company intends to use these funds to
accelerate the development of its lead products. The line of credit is drawn on
an as needed basis. The facility is secured by all of the Company's assets. At
June 30, 2005, the Company has an outstanding balance of $1,941,606 to the
related Company under the $12.0 million secured credit line agreement. There has
been no accrued interest associated with the note at June 30, 2005. Interest
expense has been waived.

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS. FORWARD LOOKING STATEMENTS: NO ASSURANCES INTENDED

This Form 10-QSB contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. This filing includes statements regarding our plans,
goals, strategies, intent, beliefs or current expectations. These statements are
expressed in good faith and based upon a reasonable basis when made, but there
can be no assurance that these expectations will be achieved or accomplished.
Sentences in this document containing verbs such as "believe," "plan," "intend,"
"anticipate," "target," "estimate," "expect," and the like, and/or future-tense
or conditional constructions ("will," "may," "could," "should," etc.) constitute
forward-looking statements that involve risks and uncertainties. Items
contemplating or making assumptions about, actual or potential future sales,
market size, collaborations, and trends or operating results also constitute
such forward-looking statements.

Although forward-looking statements in this Report on Form 10-QSB reflect the
good faith judgment of management, such statements can only be based on facts
and factors currently known by management. Consequently, forward-looking
statements are inherently subject to risks and uncertainties, and actual results
and outcomes may differ materially from the results and outcomes discussed in,
or anticipated by, the forward-looking statements. Factors that could cause or
contribute to such differences in results and outcomes, include without
limitation, those discussed in our Annual Report on Form 10-KSB for the year
ended December 31, 2004. Readers are urged not to place undue reliance on these
forward-looking statements, which speak only as of the date of this Report. We
undertake no obligation to revise or update any forward-looking statements in
order to reflect any event or circumstance that may arise after the date of this
Report. Readers are urged to carefully review and consider the various
disclosures made by us in our Annual Report on Form 10-KSB for the year ended
December 31, 2004, which attempt to advise interested parties of the risks and
factors that may affect our business, financial condition, results of operation
and cash flows.

The following discussion should be read along with the Consolidated Financial
Statements and Notes to our audited financial statements for the fiscal year
ended December 31, 2004, as well as the other interim unaudited financial
information for the current fiscal year.

OVERVIEW

Description of Business

Inncardio is a biotechnology company dedicated to the development and
commercialization of therapies to treat cardiovascular and metabolic diseases.
The company's lead products are targeted against Ischemic Deficit/Stroke and
Cholesterol Reduction. The Company currently has six product candidates in
various stages of development, targeting specific areas of cardiovascular health
or directed at the amelioration of significant metabolic risk factors associated
with cardiovascular conditions including stroke, hypertension, dyslipidemia,
pulmonary hypertension, and the reduction of thrombotic and ischemic events
following invasive cardiovascular procedures.

The Company's business strategy is to develop its existing pharmaceutical
products to proof of concept, selectively license its products to sales and
marketing organizations and establish strategic collaborations to advance the
development its product pipeline. The company is intending to acquire
additional, late discovery stage product candidates, in the cardiovascular,
respiratory and metabolic disease sectors to enlarge the development pipeline
alongside its existing development products. It is anticipated that later stage
development products may be licensed in, particularly from larger fully
integrated pharmaceutical discovery, development and sales and marketing
partners in Japan and the Far East.
<PAGE>

Business Strategy

Large pharmaceutical companies need additional drugs of substantial market
potential to fill depleted development pipelines, particularly since many of
their products will soon be losing patent protection and internal development
may fail to keep up with commercial demand for innovation. Increasingly those
companies seek to fill that gap by in-licensing drugs at the middle to late
stages of development rather than acquiring compounds at an earlier stage.
In-licensed Phase III products accounted for more 30% of the in-licensing
agreements made by large pharmaceutical companies in 2002, according to Reuters
Business Insight.

Inncardio uses a broad network of relationships it has forged in academia,
medical research centers and industry to in-license or acquire promising
early-stage compounds and existing compounds that can be reformulated, used for
new indications or used with new dosing regimens. We rely upon these
relationships and a product development network to accelerate the time it takes
for new compounds to reach the critical Phase III clinical trial level when a
drug is most attractive to large pharmaceutical companies.

We enter into development, marketing and partnership agreements with contract
research laboratories, industry experts and pharmaceutical companies to develop,
test and seek regulatory approval for our drug candidates. By relying primarily
upon contracts with third parties for research, clinical development and project
management rather than doing that work in-house, we are able to maintain a
limited and less costly infrastructure, particularly as compared with large
pharmaceutical companies. Our management believes that this streamlined
operating strategy has created an efficient and cost-effective route from
early-stage clinical development to a commercial product.

Product Development

A major element of our product development strategy is the use of third-parties
or Contract Research Organizations ("CRO") for drug development at all stages
along the path to market. CROs conduct safety and efficacy tests and clinical
studies and assist us in guiding products through the Food and Drug
Administration ("FDA") and the European Medicines Agency ("EMEA") regulatory
review and approval processes. The Company also uses the contract manufacturing,
formulation and chemistry skills of external providers.

We believe the use of third-parties to develop and manufacture our products has
several advantages over building a comprehensive infrastructure to handle all
such functions in-house. This approach generally gives us more choice and
greater selectivity in the dedicated resources we will concentrate on a
developing product than if those functions were performed by internal personnel
who were required to support the full range of our product development
activities. We believe that maintaining a limited infrastructure, particularly
focused upon early-stage processes in the drug development path will enable us
to develop products efficiently and cost effectively. Although this approach
will allow us to avoid the expense associated with developing a large internal
infrastructure to support our product development efforts, it also means that we
will continue to be dependent on the ability of outside parties to perform
critical functions for us.

The contract approach to product development requires project management by
professionals with substantial industry experience. We plan to evaluate
prospective additions to our in-house expertise as well as opportunities for
contract and advisory services in areas of critical importance to all of our
proposed products, including the management of current pipeline development
teams. The product development process is designed to identify problems
associated with a proposed product's safety and effectiveness. We also attempt
to reduce the risk that a proposed product will not be accepted in the
marketplace by conducting market research and defining a commercial strategy for
each product candidate. A drug development portfolio cannot be completely
insulated from potential clinical and market failures. It is likely that some
proposed products we select for development will not produce the clinical or
revenue results expected. Additionally, we may choose to license at an early
stage or divest product candidates from our portfolio if they produce clinical
results outside our target sector and/or require financial, development and
management resources better met by larger or more specialized pharmaceutical or
biopharmaceutical companies.

Research and Development

Our primary research and development efforts have focused on identifying
promising compounds and developing them into products to treat various types of
cardiovascular related diseases. We engage in research, pre-clinical studies and
clinical development with third-party laboratories, including Sigmoid
Biotechnology Limited, Ireland, Strathclyde University, Scotland, and Queen Mary
University, London. Our research and development structure is designed to enable
us to evaluate and make the best choices for where and how projects are run and
resourced. Each is managed as a discrete project with its own budget and project
management. When it's practical and desirable, different projects will use
common resources and contracted facilities.

Our budget projections for research and development are based primarily upon
those established and set out in or pursuant to our agreements with research and
co-development partners. Projects may meet development and regulatory barriers;
however that require additional work or a change in approach which can lead to
changes in both timing and budget requirements to maintain a product's path to
market. When this situation arises we tend to be in a more flexible position to
meet such demands than a fully internally resourced pharmaceutical company that
relies on existing internal capabilities to progress.
<PAGE>

Description of Portfolio

INC101 - ISCHEMIC DEFICIT RELATED TO STROKE

INC 101 is a new oral formulation of an existing marketed product. Our lead
product candidate uses proprietary formulation technology to create a sustained
release capsule that we believe improves solubility and bioavailability. INC 101
is intended to be taken once or twice a day for 21 days in a single capsule or
alternatively by releasing the sustained release minicapsules inside to use as
sprinkles. We expect this novel delivery method will make it easier to
administer the drug to traumatized patients who frequently have trouble
swallowing and thereby increase compliance and improve disease management. It
may also reduce the cost of therapy. Timely compliance is critical to managing
the disease's progression. We expect INC 101's delivery method to overcome the
existing product's primary limitation: its delivery as a standard oral tablet
that must be administered every 4 hours for 21 days. INC 101 is being developed
to minimize brain damage caused by a type of stroke in which a blood vessel on
the brain's surface ruptures and bleeds into the space between the brain and the
skull (a subarachnoid hemorrhage). This pooling of blood compresses nearby brain
tissue and prevents adequate supplies of fresh blood and oxygen from reaching
the area, disrupting brain function and potentially causing long-term
neurological damage. INC 101 aims to keep the arteries from constricting and
allows the blood supply to flow to the compressed brain tissue. INC 101 may have
additional cardiovascular indications.

INC102 - HYPERCHOLESTEROLEMIA

INC 102 is an oral reformulation of the first "super statin" to lose its patent
protection in the UK and Europe. It will soon lose patent protection in the U.S.
market also. Statins are a class of drugs used to treat hypercholesterolemia.
Early studies indicate that INC 102 overcomes several clinical limitations
presented by the existing product, which generated $5 billion in sales in 2003.
The reformulation provides extended release through a minicapsule emulsion
delivery technology that specifically reduces peak plasma levels, reduces the
risk of muscle aches or more severe types of muscle damage and increases
efficacy by sustaining consistent plasma levels. INC 102 can also be targeted
directly to the liver. We believe this delivery method will increase
bioavailability.

INC103 - HYPERTENSION & HYPERCHOLESTEROLEMIA

INC 103 is a combination therapy of a market-leading statin to lower LDL
cholesterol and an angiotensin converting enzyme (ACE) inhibitor to lower blood
pressure. This product candidate also uses an innovative proprietary drug
delivery technology to provide a controlled release formulation to treat the two
most common risk factor conditions at the same time. We believe INC 103 could
increase patient compliance and reduce the cost of treatment.

INC104 - PULMONARY HYPERTENSION

..INC 104 is the first in a new class of oral drugs to treat abnormally high
blood pressure in the lungs. The disease is linked to changes in the small blood
vessels in the lungs. These changes increase resistance to blood flowing through
the vessels. As that resistance increases, it puts a strain on the right
ventricle which has to work harder to move enough blood through the lungs. INC
104 increases nitric oxide (a naturally occurring vasodilator) production in
cells inside blood vessels that fail to produce enough nitric oxide on their
own. The action of this NCE has been shown to be highly selective and has lower
risk of side effects than currently available treatments. We believe INC 104 may
improve cardiovascular performance in patients with pulmonary hypertension,
diabetes or atherosclerosis.

INC105 - RESTENOSIS

INC 105 is an NCE to prevent an artery from reblocking (restenosis) after a
percutaneous transluminal coronary angioplasty (PCTA) is performed to clear a
blocked artery. This compound has demonstrated a novel method of action that
involves stopping smooth muscle cells from proliferating and gathering in the
artery. We believe the improved, short-release profile of INC 105 will mean that
patients have low exposure to the compound and a lower risk of side effects. The
compound has shown efficacy in diabetics for whom existing products provide poor
treatment. INC 105 will be delivered from a drug-eluting stent using a
proprietary polymer technology.

INC106 - ANGIOTENSIN II MONOCLONAL ANTIBODY - RESTENOSIS

INC 106 is an NCE being developed to treat the proliferation of vascular smooth
muscle cells and certain other cardiovascular diseases using a monoclonal
antibody to the angiotensin II type I receptor. The antibody binds to the
receptor and blocks signals for cell growth and migration within arteries that
have experienced reblocking (restenosis) following angioplasty and stenting. We
expect this NCE to be delivered by a drug-eluting stent.

License and Co-Development Agreements

INC101

The company has a co-development agreement with Sigmoid Biotechnology Ltd of
Ireland to develop INC101 for use as a post-stroke therapy that has a novel
delivery profile and is targeted to reduce the incidence and severity of
ischemic deficits in patients with subarachnoid hemorrhage from rupture
intracranial berry aneurysm. The company has, together with certain conditions,
the exclusive worldwide sales and marketing rights of INC101.
<PAGE>

INC102

The company has a co-development agreement with Sigmoid Biotechnology Ltd of
Ireland to develop INC102, a new formulation of a market leading statin
providing a sustained release profile through microcapsule emulsion delivery
technology specifically reduced peak plasma levels, reduces the risk of
rhabdomyolysis and increased efficacy through consistent plasma levels. The
company has, together with certain conditions, the exclusive worldwide sales and
marketing rights of INC102.

INC103

The company has a co-development and licence agreement with Innovative Pharma
Developments Ltd, England for the co-development and exclusive sales and
marketing rights of INC103, a fixed dosed combination therapy for hypertension
and hypercholesterolemia.

INC105

The company has a co-development and license agreement with Strathclyde
University, Scotland for the development and exclusive sales and marketing
rights to INC105 for the reduction of restenosis in PTCA and stenting. The
initial phase of the co-development agreement culminate in the completion of a
phase II proof of concept study to be conduction in Glasgow, Scotland.

INC106

The company have a licensee agreement with Queen Mary University, London for the
exclusive sales marketing and development rights to INC106 for the treatment of
proliferative vascular smooth muscle cells and certain other cardiovascular
diseases using a monoclonal antibody for the angiotensin II receptor developed
by Queen Mary University.

Cengent Merger

On March 24, 2005, the Registrant entered into an Agreement and Plan of Merger
among the Registrant, Cengent Acquisition Corp. (CAC), a wholly-owned subsidiary
of the Registrant, and Cengent Therapeutics, Inc., a privately held company.
Pursuant to the Merger Agreement, CAC will merge with and into Cengent, and as a
consequence of the merger; Cengent will become a wholly owned subsidiary of the
Registrant. Except for certain adjustments, the company expects to issue
approximately 14,405,000 shares of common stock, par value $0.001 per share, and
upon the conclusion of the Merger, on a fully diluted basis, the Registrant's
shareholders will own approximately fifty- five percent (55%) and the former
Cengent securities holders will own approximately forty- five percent (45%) of
the Registrant. The Agreement and Plan of Merger has been filed with the
Securities and Exchange Commission on Form 8-K.The Merger is expected to be
consummated in the fall of 2005.

COMPANY STATUS

The Company has made significant progress in completing the formation of the
initial development portfolio through the completion of licensing and
co-development negotiations with academic institutions and biotechnology
companies. The development of our initial pipeline is now underway and provides
a combination of near market reformulations of well know and well understood
compounds together with new chemical entities that require a longer term
development time frame, and need to be regarded as higher risk-higher return
possible blockbuster opportunities. We have continued to incur losses as
expected during this emerging stage. We anticipate that the success of our
immediate product development strategy will permit us to further develop other
products and other potential products not currently in our portfolio. A major
element of the Company's product development strategy is to use third-party or
contract research organizations ("CROs") to assist in the conduct of safety and
efficacy testing and clinical studies, to assist the Company in guiding products
through the FDA and EMEA regulatory review and approval processes, and to
manufacture and distribute any FDA and EMEA approved products. The Company
believes that maintaining a limited infrastructure will enable it to develop
products efficiently and cost effectively. However consideration will be given
to opportunities to strengthen the resources and portfolio in certain areas that
may prove viable commercially and add value to the overall business in the
future.

The reader should consider the likelihood of our future success to be highly
speculative in light of our limited operating history, as well as the limited
resources, problems, expenses, risks and complications frequently encountered by
similarly situated companies. To address these risks, we must, among other
things:

o     advance our lead product candidates;

o     obtain required government and other public and private approvals on a
      timely basis;

o     enter into corporate partnerships;

o     license additional technology;

o     maintain a proprietary position in our technologies and products; and

o     attract and retain key personnel.
<PAGE>

The Company may not be successful in addressing these risks. If we are unable to
do so, our business prospects, financial condition and results of operations
would be materially adversely affected. The likelihood of our success must be
considered in light of the development cycles of pharmaceutical and
biopharmaceutical products and technologies and the competitive and regulatory
environment in which we operate.

Results of Operations

During the second quarter ended June 30, 2005, work continued on the product
development programs as planned and the individual items are detailed below.
There are no comparisons with the same period in 2004 as the company had not
started operations and comparisons are therefore made with the previous quarter
ended March 31, 2005

General and administrative expenses were $86,494 in the three months ended June
30, 2005. An increase of $41,831 on the previous period ended March 31, 2005 due
to start up of operations and the establishment of the management structure.

Research & Development expenses for the three months ended June 30, 2005, were
$2,145,944. This is a significant increase of $2,124,472 on the previous period
as we have commenced funding the development of our product candidates.

As a result of the start up expenditure on research and development of the
company and its products the loss from operations was $2,298,573. The loss since
inception was $2,651,442.

Liquidity & Capital Resources - A $12million credit facility was agreed with
Bioaccelerate, Inc on March 9, 2005 and currently the company has drawn
$1,941,606, primarily for Research and Development The Company will be using
these funds to maintain the pace of development of its lead products. Management
believes that this investment will enable the Company to achieve significant
milestones in its lead development programs over the next twelve months. We
believe this further funding will be sufficient to support our business plan
until longer term finance can be arranged.

Should we come up against any unforeseen problems, the Company will revisit its
budget and adjust the scheduling and costs of the development programs
accordingly to allow the Company to operate until sufficient long term funding
is achieved. However, a key element of our business strategy is to continue to
acquire, obtain licenses for, and develop new technologies and products that we
believe offer unique market opportunities and/or complement our existing product
lines.

ITEM 3 - CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, the Company carried out an
evaluation, under the supervision and with the participation of the Company's
management, including the Company's Chief Executive Officer and the Company's
Chief Financial Officer, of the effectiveness of the design and operation of the
Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and
15d-15(e) under the Securities Exchange Act of 1934, as amended). Based on this
evaluation, the Company's Chief Executive Officer and Chief Financial Officer
concluded that the Company's disclosure controls and procedures were effective
in timely ensuring that (i) information required to be disclosed in the reports
that the Company files or submits under the Securities Exchange Act of 1934, as
amended, is recorded, processed, summarized and reported, within the time
periods specified in the rules and forms of the Securities and Exchange
Commission and (ii) information required to be disclosed in the reports that the
Company files or submits under the Securities Exchange Act of 1934, as amended,
is accumulated and communicated to management, including the Company's Chief
Executive Officer and Chief Financial Officer, or persons performing similar
functions, as appropriate to allow timely decisions regarding required
disclosure. It should be noted that, in designing and evaluating the disclosure
controls and procedures, management recognizes that any controls and procedures,
no matter how well designed and operated, can provide only reasonable assurance
of achieving the desired control objectives, and management necessarily will
apply its judgment in evaluating the cost-benefit relationship of possible
controls and procedures.

Changes in Internal Controls Over Financial Reporting

There have been no significant changes in the Company's internal controls over
financial reporting that occurred during the quarter ended June 30, 2005, that
have materially affected, or are reasonably likely to materially affect our
internal control over financial reporting.

                                     PART II
                                OTHER INFORMATION

Item 1.

Legal Proceedings From time to time, we may be involved in litigation relating
to claims arising out of our operations in the normal course of business. We
currently are not a party to any legal proceedings, the adverse outcome of
which, in management's opinion, individually or in the aggregate, would have a
material adverse effect on our results of operations or financial position.

Item 2. Changes in Securities

The Registrant entered into an Acquisition Agreement effective 22nd day of
February, wherein it agreed, subject to certain conditions, to acquire all of
the outstanding common stock of Inncardio, Inc., a Delaware Corporation, in
exchange for 16,500,000 common shares of the Registrant. After the issuance of
the 16,500,000 shares in the Acquisition, the Registrant has approximately
18,000,000 shares of its common stock issued and outstanding. The Registrant has
also effected a change its corporate name from Softwall Equipment Corporation to
Inncardio, Inc.
<PAGE>

Item 3. Defaults Upon Senior Securities

None

Item 4. Submission of Matters to a Vote of Security Holders

On February 22nd, 2005, security shareholders consented to acquire Inncardio
Inc, a Delaware corporation, and changed the name of the company to Inncardio
Inc.

Item 5. Other Information.

On March 24, 2005, the Registrant entered into an Agreement and Plan of Merger
(the "Agreement and Plan of Merger") among the Registrant, Cengent Acquisition
Corp. ("CAC"), a wholly-owned subsidiary of the Registrant, and Cengent
Therapeutics Inc. ("Cengent"), a privately held company. Pursuant to the Merger
Agreement, CAC will merge with and into Cengent, and as a consequence of the
merger (the "Merger") Cengent will become a wholly owned subsidiary of the
Registrant. It is envisaged that after the merger that the Registrants'
shareholders will hold approximately fifty-five percent of CAC with former
shareholders of Cengent holding approximately forty-five percent.

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits. The following exhibits are filed with this report.

31.   Written Statement of Chief Executive Officer and Chief Financial Officer
      with respect to compliance with Section 13(a) or 15 (d) of the Securities
      Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002.

32.   Written Statement of Chief Executive Officer and Chief Financial Officer
      with respect to compliance with Section 13(a) or 15(d) of the Securities
      Exchange Act of 1934 and pursuant to 18 U.S.C. 1350, as adopted pursuant
      to ss. 906 of the Sarbanes-Oxley Act of 2002.

                                   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 authorized officer.

Dated: August 12, 2005                  Inncardio Inc

                                     /S/ Bernard Ross
                                     ----------------------------------
                                     Bernard Ross
                                     CEO


Dated: August 12, 2005                  Inncardio Inc

                                     /S/ Alan G R Bowen
                                     ----------------------------------
                                     Alan G B Bowen
                                     CFO