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| Delaware                                                      |         | 76-0307819                          |
|---------------------------------------------------------------|--------------|-------------------------------------|
| (State or Other Jurisdiction ofIncorporation or Organization) |    | (I.R.S Employer Identification No.) |

| Large accelerated filer ¨ | Accelerated filer ¨  |
|--------------------------------|---------------------------|
|                           |                      |
| Non- accelerated filer ¨  | Small reporting company x |

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|     |                                                                                  | Page                                                                                  |
|----------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
|     |                                                                                  |                                                                                  |
| PART I.  | FINANCIAL INFORMATION                                                                 |                                                                                  |
|     |                                                                                  |                                                                                  |
| Item 1.  | Financial Statements (Unaudited)                                                      |                                                                                  |
|     |                                                                                  |                                                                                  |
|     | Condensed Consolidated Balance Sheets                                                 | 1                                                                                     |
|     |                                                                                  |                                                                                  |
|     | Condensed Consolidated Statements of Operations                                       | 2                                                                                     |
|     |                                                                                  |                                                                                  |
|     | Condensed Consolidated Statements of Cash Flows                                       | 3                                                                                     |
|     |                                                                                  |                                                                                  |
|     | Notes to Interim Condensed Consolidated Financial Statements                          | 4                                                                                     |
|     |                                                                                  |                                                                                  |
| Item 2.  | Management's Discussion and Analysis of Financial Condition and Results of Operations | 5                                                                                     |
|     |                                                                                  |                                                                                  |
| Item 3.  | Quantitative and Qualitative Disclosures about Market Risk                            |               9 |
|     |                                                                                  |                                                                                  |
| Item 4.  | Controls and Procedures                                                               | 9                                                                                     |
|     |                                                                                  |                                                                                  |
| PART II. | OTHER INFORMATION                                                                     | 9                                                                                     |
|     |                                                                                  |                                                                                  |
| Item 1.  | Legal Proceedings                                                                     | 9                                                                                     |
|     |                                                                                  |                                                                                  |
| Item 2.  | Unregistered Sales of Equity Securities and Use of Proceeds                           | 9                                                                                     |
|     |                                                                                  |                                                                                  |
| Item 3.  | Defaults Upon Senior Securities                                                       | 9                                                                                     |
|     |                                                                                  |                                                                                  |
| Item 4.  | Submission of Matters to a Vote of Security Holders                                   | 9                                                                                     |
|     |                                                                                  |                                                                                  |
| Item 5.  | Other Information                                                                     | 9                                                                                     |
|     |                                                                                  |                                                                                  |
| Item 6.  | Exhibits                                                                              | 10                                                                                    |
|     |                                                                                  |                                                                                  |
|     | Signatures                                                                            | 11                                                                                    |

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| NETFABRIC HOLDINGS, INC. AND SUBSIDIARIES                                                              |   |           |        |   |              |   |
|--------------------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
| CONDENSED  CONSOLIDATED BALANCE SHEETS                                                       |   |           |        |   |              |   |
|                                                                                                   |   |           |        |   |              |   |
|                                                                                                   |   | MARCH 31, 2011 |        |   | DECEMBER 31, 2010 |   |
| ASSETS                                                                                                 |   | (UNAUDITED)    |        |   |              |   |
|                                                                                                   |   |           |        |   |              |   |
| CURRENT ASSETS:                                                                                        |   |           |        |   |              |   |
| Cash                                                                                                   |   | $              | 150,196     |   |              | $      | 251,256 |   |
| Other receivable                                                                                       |   |           | 75,000      |   |              |   | - |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
| Total current assets                                                                                   |   |           | 225,196     |   |              |   | 251,256 |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
| TOTAL ASSETS                                                                                           |   | $              | 225,196     |   |              | $      | 251,256 |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                   |   |           |        |   |              |   |   |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
| CURRENT LIABILITIES:                                                                                   |   |           |        |   |              |   |   |   |
| Accounts payable and accrued liabilities                                                               |   | $              | 72,174      |   |              | $      | 84,272 |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
| Total current liabilities                                                                              |   |           | 72,174      |   |              |   | 84,272 |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
| Total liabilities                                                                                      |   |           | 72,174      |   |              |   | 84,272 |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
| COMMITMENTS AND CONTINGENCIES                                                                          |   |           |        |   |              |   |   |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
| STOCKHOLDERS' EQUITY :                                                                                 |   |           |        |   |              |   |   |   |
| Common Stock, $.001 par value, authorized shares 200,000,000, 97,053,044 shares issued and outstanding |   |           | 97,053      |   |              |   | 97,053 |   |
| Additional paid-in capital                                                                             |   |           | 38,243,128  |   |              |   | 38,243,128 |   |
| Accumulated deficit                                                                                    |   |           | (38,187,159 | )      |              |   | (38,173,197 | ) |
|                                                                                                   |   |           |        |   |              |   |   |   |
| Total stockholders' equity                                                                             |   |           | 153,022     |   |              |   | 166,984 |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                             |   | $              | 225,196     |   |              | $      | 251,256 |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
|                                                                                                   |   |           |        |   |              |   |   |   |
| See accompanying notes to interim condensed consolidated financial statements.                         |   |           |        |   |              |   |   |   |
|                                                                                                   |   |           |        |   |              |   |   |   |

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| NETFABRIC HOLDINGS, INC. AND SUBSIDIARIES                        |                                                                           |   |           |   |   |           |
|------------------------------------------------------------------|--------------------------------------------------------------------------------|--------|----------------|--------|--------|----------------|
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS                   |                                                                           |   |           |   |   |           |
|                                                             | (UNAUDITED)                                                                    |   |           |   |   |           |   |
|                                                             |                                                                           |   | Three Months   |   |   | Three Months   |   |
|                                                             |                                                                           |   | Ended          |   |   | Ended          |   |
|                                                             |                                                                           |   | March 31, 2011 |   |   | March 31, 2010 |   |
|                                                             |                                                                           |   |           |   |   |           |   |
| REVENUES                                                         |                                                                           |   | $              | -      |   |           | $ | - |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
| OPERATING EXPENSES:                                              |                                                                           |   |           |   |   |           |   |   |
|                                                             | General and administrative expenses                                            |   |           | 13,962 |   |           |   | 33,113 |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
| Loss before provision for income taxes                           |                                                                           |   | 13,962         |   |   |           | 33,113 |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
| Provision for income taxes                                       |                                                                           |   | -              |   |   |           | - |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
| NET LOSS                                                         |                                                                           |   | $              | 13,962 |   |           | $ | 33,113 |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
| Net loss per common share, basic and diluted                     |                                                                           | $      | 0.00           |   |   | $              | 0.00 |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
| Weighted average number of shares outstanding, basic and diluted |                                                                           |   | 97,053,044     |   |   |           | 97,053,044 |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
|                                                             |                                                                           |   |           |   |   |           |   |   |   |
|                                                             | See accompanying notes to interim condensed consolidated financial statements. |   |           |   |   |           |   |   |   |

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|                                                                           | NETFABRIC HOLDINGS, INC. AND SUBSIDIARIES                                   |           |         |     |           |         |    |
|--------------------------------------------------------------------------------|-----------------------------------------------------------------------------|----------------|--------------|----------|----------------|--------------|---------|
|                                                                           |   CONDENSED   CONSOLIDATED STATEMENT OF CASH FLOWS |           |         |     |           |         |    |
|                                                                           | (UNAUDITED)                                                                 |           |         |     |           |         |    |
|                                                                           |                                                                        |           | Three Months |     |           | Three Months |    |
|                                                                           |                                                                        |           | Ended        |     |           | Ended        |    |
| OPERATING ACTIVITIES                                                           |                                                                        | March 31, 2011 |         |     | March 31, 2010 |         |
|                                                                           |                                                                        |           |         |     |           |         |    |
| Net loss                                                                       |                                                                        |           | $            | (13,962  | )              |         | $       | (33,113 | ) |
| Changes in operating assets and liabilities:                                   |                                                                        |           |         |     |           |         |    |   |
| Other receivable                                                               |                                                                        |           | (75,000      | )        |           |         | -       |   |
| Accounts payable and accrued liabilities                                       |                                                                        |           | (12,098      | )        |           |         | (11,252 | ) |
| Net cash used in operating activities                                          |                                                                        |           | (101,060     | )        |           |         | (44,365 | ) |
|                                                                           |                                                                        |           |         |     |           |         |    |   |   |
| INVESTING ACTIVITIES                                                           |                                                                        |           |         |     |           |         |    |   |
| Net cash (used in) provided by investing activities                            |                                                                        |           | -            |     |           |         | -       |   |
|                                                                           |                                                                        |           |         |     |           |         |    |   |   |
| FINANCING ACTIVITIES                                                           |                                                                        |           |         |     |           |         |    |   |
| Net cash (used in) provided by financing activities                            |                                                                        |           | -            |     |           |         | -       |   |
|                                                                           |                                                                        |           |         |     |           |         |    |   |   |
| Net decrease in cash                                                           |                                                                        |           |         | (101,060 | )              |         |    | (44,365 | ) |
|                                                                           |                                                                        |           |         |     |           |         |    |   |   |
| Cash at beginning of period                                                    |                                                                        |           | 251,256      |     |           |         | 55,509  |   |
|                                                                           |                                                                        |           |         |     |           |         |    |   |   |
| Cash at end of period                                                          |                                                                        |           | $            | 150,196  |           |         | $       | 11,144 |   |
|                                                                           |                                                                        |           |         |     |           |         |    |   |   |
|                                                                           |                                                                        |           |         |     |           |         |    |   |   |
| See accompanying notes to interim condensed consolidated financial statements. |                                                                        |           |         |     |           |         |    |   |

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|                                |   |   |    |   | Exercise |   |       |
|-------------------------------------|--------|--------|---------|--------|----------|--------|------------|
|                                |   |   |    |   | Price    |   | Expiration |
| Laurus Warrants                     |   |   | 554,282 |   |     | $      | 0.001      |   | None |
| Investment advisor’s services |   |   | 312,500 |   |     | $      | 0.82       |   | June 2011 |
|                                |   |   | 886,782 |   |     |   |       |   |   |

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| Date: May  10 , 2011 | By:    | /s/ Cristiano Germinario                         |
|-------------------------------------|--------|-------------------------------------------------------|
|                                |   | Name: Cristiano Germinario                            |
|                                |   | Title: Chairman and Chief Executive Officer           |
|                                |   |                                                  |
|                                | By:    | /s/ Vasan Thatham                                |
|                                |   | Name: Vasan Thatham                                   |
|                                |   | Title: Principal Financial Officer and Vice President |

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| May  10 , 2011 | By:    | /s/ Cristiano Germinario               |
|--------------------------|--------|---------------------------------------------|
|                     |   | Name: Cristiano Germinario                  |
|                     |   | Title: Chairman and Chief Executive Officer |

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| May 10 , 2011 | By:    | /s/ Vasan Thatham         |
|---------------|--------|--------------------------------|
|          |   | Name: Vasan Thatham            |
|          |   | Title: Chief Financial Officer |

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| May  10 , 2011 | By:    | /s/ Cristiano Germinario               |
|--------------------------|--------|---------------------------------------------|
|                     |   | Name: Cristiano Germinario                  |
|                     |   | Title: Chairman and Chief Executive Officer |

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| May 10 , 2011 | By:    | /s/ Vasan Thatham         |
|---------------|--------|--------------------------------|
|          |   | Name: Vasan Thatham            |
|          |   | Title: Chief Financial Officer |

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