**U.S.
      SECURITIES AND EXCHANGE COMMISSION**




**Washington,
      D.C. 20549**




**FORM
      10-QSB**


**(Mark
      one)**





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




**For
      the Quarterly Period Ended September 30, 2007**




**or**





** ̈**
            **Transition
                Report Under Section 13 or 15(d) of the Securities Exchange Act of
                1934**




**Commission
      File Number 000-25413**




**INTERNATIONAL
      IMAGING SYSTEMS, INC.**




**(Name
      of small business issuer in its charter)**





**Delaware**
            
            **65-0854589****(State
                or other jurisdiction**
              **of
                incorporation or organization)**
            
            **(I.R.S.
                Employer**
              **Identification
                No.)**








**Dongxin
      Century Square, 7****th****Floor**


**Hi-Tech
      Development District**


**Xi’an,
      Shaanxi Province, PRC 710043**





**(Address
      of principal executive offices)**






**Issuer’s
      telephone number: 86-29-8268-3920**







**31200
      Via Colinas, Suite 200**


**Westlake
      Village, CA 91362**





**(Former
      name, Former Address and Former Fiscal Year, if changed Since Last
      Report)**




Check
      whether the issuer (1) has filed all reports required to be filed by
      Section 13 or 15(d) of the Exchange Act during the past 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 ** ̈**




Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act). Yes ****x**** No ** ̈**




As
      of
      November 7, 2007 there were 25,454,545 shares of common stock, $.0001 par value,
      issued and outstanding.









**International
      Imaging Systems, Inc.**




Table
      of
      Contents





PagePART
                I -
            FINANCIAL
                INFORMATIONItem
                1.
            Financial
                Statements (Unaudited):
            3Condensed
                Consolidated Balance Sheet as of September 30, 2007
            3Condensed
                Consolidated Statements of LossesThree
                and Nine months ended September 30, 2007 and 2006
            4Condensed
                Consolidated Statements of Changes in Stockholders’ DeficitFor
                the nine months ended September 30, 2007
            5Condensed
                Consolidated Statements of Cash FlowsNine
                months ended September 30, 2007 and 2006
            6Notes
                to Condensed Consolidated Financial Statements (Unaudited)
            7Item
                2.
            Management’s
                Discussion and Analysis or Plan of Operation
            14Item
                3.
            Controls
                and Procedures
            18PART
                II -
            OTHER
                INFORMATION
            19Item
                1.
            Legal
                Proceedings
            19Item
                2.
            Unregistered
                Sales of Equity Securities and Use of Proceeds
            19Item
                3.
            Defaults
                Upon Senior Securities
            19Item
                4.
            Submission
                of Matters to a Vote of Security Holders.
            19Item
                5.
            Other
                Information
            19Item
                6.
            Exhibits
                and Reports on Form 8-K
            19







INTERNATIONAL
      IMAGING SYSTEMS, INC. AND SUBSIDIARIES


(A
      Development Stage Company)


CONDENSED
      CONSOLIDATED BALANCE SHEET


SEPTEMBER
      30, 2007


(Unaudited)





AssetsCurrent
                assets:Cash
            
            $
            79,950Liabilities
                and stockholders’ deficitCurrent
                liabilities:Accounts
                payable and accrued expenses:
            
            $
            36,461Total
                current liabilities
            
            
            36,461Stockholders’
                deficit:Preferred
                stock, par value $.001 per share; 1,000,000 shares authorized, none
                issued
                and outstanding
            
            
            -Common
                stock, par value $.0001 per share; 79,000,000 shares authorized,
                1,466,573
                shares issued and outstanding
            
            
            147Additional
                paid-in capital
            
            
            1,719,997Accumulated
                deficit
            
            
            (1,579,079
            )Deficit
                accumulated during the development stage
            
            
            (97,576
            )Total
                stockholders’ deficit
            
            
            43,489Total
                liabilities and stockholders’ deficit
            
            $
            79,950





See
      accompanying notes to unaudited condensed consolidated financial
      statements.


3





INTERNATIONAL
      IMAGING SYSTEMS, INC. AND SUBSIDIARIES


(A
      Development Stage Company)


CONDENSED
      CONSOLIDATED STATEMENTS OF LOSSES


(Unaudited)





**Cumulative Period**
              **from January 1,**
              **2007**
              **(date of inception as**
              **a development stage**
              **enterprise) to**
              **September 30,****Three
                Months ended**
              **September
                30,**
            
            **Nine
                Months ended**
              **September
                30,****2007**
            
            **2006**
            
            **2007**
            
            **2006**
            
            **2007**Revenue
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            -General
                and administrative expenses
            
            
            30,190
            
            
            -
            
            
            97,576
            
            
            -
            
            
            97,576Loss
                from continuing operations
            
            
            (30,190
            )
            
            -
            
            
            (97,576
            )
            
            -
            
            
            (97,576
            )Loss
                from discontinued operations
            
            
            -
            
            
            (88,222
            )
            
            -
            
            
            (337,129
            )
            
            -Loss
                from disposal of discontinued operations
            
            
            -
            
            
            (1,782
            )
            
            -
            
            
            (1,782
            )
            
            -Loss
                before provision for income taxes
            
            
            (30,190
            )
            
            (90,004
            )
            
            (97,576
            )
            
            (338,911
            )
            
            (97,576
            )Provision
                for income taxes
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -Net
                loss
            
            $
            (30,190
            )
            $
            (90,004
            )
            $
            (97,576
            )
            $
            (338,911
            )
            $
            (97,576
            )Basic
                and diluted loss per share:Loss
                from continuing operations
            
            $
            (0.03
            )
            $
            -
            
            $
            (0.16
            )
            $
            -Loss
                from discontinued operations
            
            
            -
            
            
            (0.34
            )
            
            -
            
            
            (1.35
            )Net
                loss per common share, basic and diluted
            
            $
            (0.03
            )
            $
            (0.34
            )
            $
            (0.16
            )
            $
            (1.35
            )Weighted
                average shares outstanding
            
            
            1,036,138
            
            
            262,234
            
            
            604,946
            
            
            251,904





See
      accompanying notes to unaudited condensed consolidated financial
      statements.


4





INTERNATIONAL
      IMAGING SYSTEMS, INC. AND SUBSIDIARIES


(A
      Development Stage Company)


CONDENSED
      CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT


JANUARY
      1, 2007 (date of inception as a Development Stage Enterprise) to SEPTEMBER
      30,
      2007


(Unaudited)





Preferred
                Stock
            
            Common
                Stock
            
            
            
            Accumulated
                DeficitShares
            
            Amount
            
            Shares
            
            Amount
            
            Additional
              Paid-in
                Capital
            
            Prior
                to Development Stage
            
            During
                Development Stage
            
            Stockholders
                DeficiencyBalance,
                January 1, 2007
            
            
            225,000
            
            $
            225
            
            
            265,905
            
            $
            27
            
            $
            1,642,292
            
            $
            (1,579,079
            )
            $
            -
            
            $
            63,465Conversion
                of preferred stock
            
            
            (225,000
            )
            
            (225
            )
            
            750,001
            
            
            75
            
            
            150
            
            
            -
            
            
            -
            
            
            -Sale
                of common stock, August 10, 2007
            
            
            -
            
            
            -
            
            
            450,000
            
            
            45
            
            
            74,955
            
            
            -
            
            
            -
            
            
            75,000Common
                stock issued for accrued expense
            
            
            -
            
            
            -
            
            
            667
            
            
            -
            
            
            2,600
            
            
            
            
            
            
            
            
            2,600Net
                Loss
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (97,576
            )
            
            (97,576
            )Balance,
                September 30, 2007
            
            
            -
            
            $
            -
            
            
            1,466,573
            
            $
            147
            
            $
            1,719,997
            
            $
            (1,579,079
            )
            $
            (97,576
            )
            $
            43,489





See
      accompanying notes to unaudited condensed consolidated financial
      statements.


5


INTERNATIONAL
      IMAGING SYSTEMS, INC.


(A
      Development Stage Company)


CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS


NINE
      MONTHS ENDED SEPTEMBER 30, 2007 AND 2006


(Unaudited)


**Nine
                  Months ended**
                **September
                  30,**
              
              **Cumulative**
                **Period
                  from**
                **January
                  1,**
                **2007
                  (date of inception as a development**
                **stage**
                **enterprise)
                    to September 30,****2007**
              
              **2006**
              
              **2007**Cash
                  flows from operating activities:Net
                  loss
              
              $
              (97,576
              )
              $
              (338,911
              )
              
              ($97,576
              )Adjustments
                  to reconcile net loss to net cash used in operating
                  activities:Change
                  in assets and liabilities of discontinued operations
              
              
              -
              
              
              9,289
              
              
              -Stock
                  based compensation
              
              
              -
              
              
              102,500
              
              
              -Loss
                  from disposal of discontinued operations
              
              
              -
              
              
              1,782
              
              
              -Change
                  in operating assets and liabilitiesAccounts
                  payable and accrued expenses
              
              
              24,888
              
              
              -
              
              
              24,888Cash
                  used in operating activities
              
              
              (72,688
              )
              
              (225,340
              )
              
              (72,688
              )Cash
                  flows from financing activities:Sale
                  of common stock
              
              
              75,000
              
              
              -
              
              
              75,000Contributions
                  to capital
              
              
              -
              
              
              68,469Repayment
                  of borrowings
              
              
              -
              
              
              (30,631
              )
              
              -Cash
                  provided by financing activities
              
              
              75,000
              
              
              37,838
              
              
              75,000Net
                  decrease in cash
              
              
              2,312
              
              
              (187,502
              )
              
              2,312Cash,
                  beginning of period
              
              
              77,638
              
              
              187,502
              
              
              77,638Cash,
                  end of period
              
              $
              79,950
              
              $
              -
              
              $
              79,950Supplemental
                  cash flow information:Cash
                  paid for interest
              
              $
              -
              
              $
              1,011
              
              $
              -Cash
                  paid for income taxes
              
              $
              -
              
              $
              -
              
              $
              -Non-Cash
                  Financing Activities:Payment
                  of accrued expense with common stock
              
              $
              2,600
              
              $
              -
              
              $
              -Conversion
                  of notes payable to equity
              
              $
              -
              
              $
              675,065
              
              $
              -





See
      accompanying notes to unaudited condensed consolidated financial
      statements.


6




**INTERNATIONAL
      IMAGING SYSTEMS, INC.**


**AND
      SUBSIDIARIES**




**(A
      Development Stage Company)**




**NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS**




**SEPTEMBER
      30, 2007 AND 2006**


**(Unaudited)**




**NOTE
      A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**




**Nature
      of Operations**




International
      Imaging Systems, Inc. (“we” *,
      “us”,* “ *our
      company* “, *“our”* or *“IISY”* ) was
      formed under the laws of the State of Delaware in 1998. Through our wholly-owned
      subsidiary, Advanced Staffing International, Inc., we were principally engaged
      in the employee leasing business.




On
      September 19, 2006, certain of our shareholders sold 150,000 shares (56.4%)
      of
      our common stock to a group of investors for $405,000 cash. The sale was
      accompanied by the resignation and replacement of our officers and directors.
      We
      are currently a development stage company, as defined by Statement of Financial
      Accounting Standards (SFAS”) No. 7 (“SFAS No. 7”)




As
      of
      January 1, 2007 we began to pursue an acquisition strategy whereby we were
      seeking to acquire businesses with a history of operating revenues in markets
      that provide room for growth. We were engaged in identifying, investigating
      and,
      if warranted, acquiring companies that would enhance revenues and increase
      shareholder value. In the event that our limited financial resources prove
      to be
      insufficient to implement our acquisition strategy, we will be required to
      seek
      additional financing, through either equity or debt financing.




**Basis
      of Presentation**




The
      consolidated financial statements include the accounts of the Company and its
      wholly-owned subsidiaries. Intercompany transactions and accounts have been
      eliminated.




The
      accompanying unaudited condensed consolidated financial statements as of
      September 30, 2007 and for the three and nine month periods ended September
      30,
      2007 and 2006 and from inception as a development stage company on January
      1,
      2007 to September 30, 2007 have been prepared by IISY pursuant to the rules
      and
      regulations of the Securities and Exchange Commission, including Form 10-QSB
      and
      Regulation S-B. The information furnished herein reflects all adjustments
      (consisting of normal recurring accruals and adjustments), which are, in the
      opinion of management, necessary to fairly present the operating results for
      the
      respective periods. Certain information and footnote disclosures normally
      present in annual financial statements prepared in accordance with accounting
      principles generally accepted in the United States of America have been omitted
      pursuant to such rules and regulations. We believe that the disclosures provided
      are adequate to make the information presented not misleading. These financial
      statements should be read in conjunction with the audited financial statements
      and explanatory notes for the year ended December 31, 2006 as disclosed in
      our
      10-KSB for that year as filed with the SEC.




7




The
      results of the nine months ended September 30, 2007 are not necessarily
      indicative of the results to be expected for the pending full year ending
      December 31, 2007.




**Use
      of Estimates**




The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States of America requires management to make
      estimates and assumptions that affect the amounts reported in the consolidated
      financial statements and accompanying disclosures. Although these estimates
      are
      based on management’s best knowledge of current events and actions the Company
      may undertake in the future, actual results may differ from those
      estimates.




**Going
      Concern**




The
      financial statements have been prepared on a going concern basis, and do not
      reflect any adjustments related to the uncertainty surrounding our recurring
      losses or accumulated deficit




We
      currently have no revenue source and are incurring losses. These factors raise
      substantial doubt about our ability to continue as a going concern.




We
      will
      pursue an acquisition strategy whereby we will seek to acquire businesses with
      a
      history of operating revenues in markets that provide room for growth. We are
      engaged in identifying, investigating and, if warranted, acquiring companies
      that will enhance revenues and increase shareholder value. In the event that
      our
      limited financial resources prove to be insufficient to implement our
      acquisition strategy, we will be required to seek additional financing, through
      either equity or debt financing.




**Loss
      per Share**




We
      use
      SFAS No. 128, “Earnings Per Share” for calculating the basic and diluted
      loss per share. We compute basic loss per share by dividing net loss and net
      loss attributable to common shareholders by the weighted average number of
      common shares outstanding. Diluted loss per share is computed similar to basic
      loss per share except that the denominator is increased to include the number
      of
      additional common shares that would have been outstanding if the potential
      shares had been issued and if the additional shares were dilutive. Common
      equivalent shares are excluded from the computation of net loss per share if
      their effect is anti-dilutive. There were no common share equivalents at
      September 30, 2007 and 2006.




**Recent
      Accounting Pronouncements**




In
      February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for
      Financial Assets and Financial Liabilities - Including an Amendment of FASB
      Statement No. 115.” This statement permits entities to choose to measure many
      financial instruments and certain other items at fair value. Most of the
      provisions of SFAS No. 159 apply only to entities that elect the fair value
      option. However, the amendment to SFAS No. 115, “Accounting for Certain
      Investments in Debt and Equity Securities,” applies to all entities with
      available-for-sale and trading securities. SFAS No. 159 is effective as of
      the
      beginning of an entity’s first fiscal year that begins after November 15, 2007.
      Early adoption is permitted as of the beginning of a fiscal year that begins
      on
      or before November 15, 2007, provided the entity also elects to apply the
      provision of SFAS No. 157, “Fair Value Measurements.” The adoption of this
      statement is not expected to have a material effect on the Company’s financial
      statements.




8




**NOTE
      B - STOCK COMPENSATION PLAN -**




In
      March
      2006, we issued 8,333 common shares, valued at $62,500, in connection with
      a
      one-year management consulting agreement.




In
      August
      2006, we issued 5,333 common shares, valued at $40,000, to our chief executive
      officer as compensation for serving in such capacity without salary since
      February, 2006.




**NOTE
      C - STOCKHOLDERS’ EQUITY**




Our
      board
      of directors and the holders of a majority of the shares entitled to vote
      thereon adopted resolutions approving the amendments of our certificate of
      incorporation to (i) increase our authorized shares from 30 million to
      80 million and the number of our authorized shares of common stock from 29
      million to 79 million; and (ii) reverse split our outstanding Common Stock
      on
      the basis of 1 post-split share for 30 pre-split shares. Stockholders of a
      majority of outstanding shares approved the increase of authorized common stock
      and the reverse split of our common stock by written consent on March 14,
      2007.




The
      amendments of our certificate of incorporation to increase our authorized shares
      of common stock and reverse split our outstanding common stock became effective
      on June 13, 2007. Also, the par value of our common shares was changed to
      $0.0001 per share.  All share and per share amounts have been retroactively
      restated to reflect this reverse split.




During
      March, 2007 we issued 210,000 shares of common stock upon conversion of 63,000
      shares of our preferred stock.




During
      March, 2007 we issued 667 shares of common stock to our chief financial officer
      as payment of accrued compensation valued at $2,600.




During
      August, 2007 we issued 540,001 shares of common stock upon conversion of 162,000
      shares of our preferred stock.




During
      August, 2007 we sold 450,000 shares of common stock for cash proceeds of
      $75,000.




In
      March
      2006, we issued 8,333 common shares, valued at $62,500, in connection with
      a
      one-year management consulting agreement.




During
      the first quarter of 2006, we issued 28,667 shares of common stock in
      satisfaction of 6% exchangeable notes due to shareholders of
      $430,000.




9




In
      August
      2006, we issued 5,333 common shares, valued at $40,000, to our chief executive
      officer as compensation for serving in such capacity without salary since
      February, 2006.




**NOTE
      D - LOANS PAYABLE - SHAREHOLDERS -**




Loans
      payable to shareholders consisted of non-interest bearing working capital
      advances, due on demand. During the first quarter of 2006, we issued 28,667
      shares of common stock in satisfaction of debt of $430,000.




During
      the third quarter of 2006, shareholders contributed approximately $313,000
      of
      loans payable to additional paid in capital.




Interest
      expense amounted to $1,011 for the nine months ended September 30,
      2006.




**NOTE
      E - DISCONTINUED OPERATIONS**




As
      a
      result of the change of control described in Note A, we have decided not to
      continue with our employee leasing business. As of January 1, 2007 we are
      pursuing an acquisition strategy whereby we will seek to acquire businesses
      with
      a history of operating revenues in markets that provide room for growth. All
      prior operations have been presented as discontinued operations. Prior year
      revenue which is now included as a part of discontinued operations was $145,889
      for the nine months ended September 30, 2006. There was no revenue during the
      three month period ended September 30, 2006.




On
      August
      29, 2006, we sold our investment in Renewable Assets, Inc. to our Chief
      Executive Officer for $100, resulting in a loss of approximately
      $2,000.




**NOTE
      F - SUBSEQUENT EVENTS**




On
      October 23, 2007 (the “ Closing
      Date “),
      we
      entered into a Share Exchange Agreement (the “ Exchange
      Agreement “),
      with
      Baorun China Group Limited, a company organized under the laws of Hong Kong
      (“ Baorun
      China” ),
      Redsky Group Limited, a British Virgin Islands company (“Redsky”), Princeton
      Capital Group LLP, a New Jersey limited liability partnership (“PCG” and
      together with Redsky, the “ Shareholders “),
      who
      together own shares constituting 100% of the issued and outstanding ordinary
      shares of Baorun China (the “ Baorun
      Shares “),
      and
      those persons set forth on Schedule II thereto (the “ Principal
      Acquiror Shareholders “).
      Pursuant to the terms of the Exchange Agreement, the Shareholders transferred
      to
      us all of the Baorun Shares in exchange for the issuance of 23,954,545 (the
      “ Shares ”)
      shares
      of our common stock (the “ Share
      Exchange” ).
      As a
      result of the Share Exchange, Baorun China became our wholly-owned subsidiary
      and the Shareholders acquired approximately 94.11% of our issued and outstanding
      stock.




10




In
      connection with the Share Exchange, we entered into a registration rights
      agreement (the “ Insider
      Registration Rights Agreement “)
      to
      register for resale an aggregate of 2,623,769 shares of common stock, comprising
      (i) 1,123,769 shares of common stock of beneficially owned by those persons
      who
      were our officers, directors, owners of more than 5% of our shares of common
      stock or otherwise our affiliates prior to the closing of the Share Exchange,
      and (ii) 1,500,00 shares issued to PCG in the Share Exchange. We agreed to
      file
      the Insider Registration Statement to register such shares within 45 days of
      the
      Closing Date with the Securities and Exchange Commission (the “ SEC ”),
      and
      use our best efforts to have the Insider Registration Statement declared
      effective within 150 calendar days of the Closing Date, or if the Insider
      Registration Statement is subject to a full review and comments from the SEC,
      within 180 days following the Closing Date. We are required to keep the Insider
      Registration Statement continuously effective under the Securities Act of 1933,
      as amended (the “Securities Act”) for the Effectiveness Period which continues
      until such date as is the earlier of the date when all of the securities covered
      by that registration statement have been sold or the date on which such
      securities may be sold without any restriction pursuant to Rule 144 (the “ Effectiveness
      Period “).
      We
      will pay liquidated damages of .75% of the dollar amount of the shares
      registered in the Insider Registration Statement per month, payable in cash,
      up
      to a maximum of 7.5%, if the Insider Registration Statement is not filed or
      declared effective within the foregoing time periods or ceases to be effective
      prior to the expiration of the Effectiveness Period. However, no liquidated
      damages shall be paid with respect to any shares that we are not permitted
      to
      include in the Insider Registration Statement due to the SEC’s application of
      Rule 415.




Concurrent
      with the Share Exchange, we completed a private equity financing (the
“ Financing ”)
      of
      $10,000,000 with one accredited investor (the “ Investor “)
      pursuant to a securities purchase agreement (the “ Purchase
      Agreement ”),
      dated
      as of October 23, 2007. Net proceeds from the Financing were approximately
      $9,575,000. We sold to the Investor 1,000,000 shares of our Series A Convertible
      Preferred Stock, par value $0.001 (the “ Preferred
      Shares “)
      for a
      purchase price of $10.00 per share and issued: (i) a Series A-1 Warrant to
      purchase 3,409,091 shares of our common stock and (ii)a Series A-2 Warrant
      to
      purchase 2,272,728 shares of our common stock. The Series A-1 warrant to
      purchase 3,409,091 shares of our common stock has an exercise price of US$3.00
      per share and the Series A-2 warrant to purchase 2,272,728 shares of our common
      stock has an exercise price of US$4.40 per share. Each of the Warrants has
      a
      term of 5 years. In connection with the Financing, we restated and amended
      the
      Certificate of Designation of the Relative Rights and Preferences of our Series
      A Convertible Preferred Stock in its entirety. Each Preferred Share is
      convertible into a number of fully paid and nonassessable shares of our common
      stock equal to the quotient of the liquidation preference amount per share
      ($10.00) divided by the conversion price, which initially is $2.20 per share,
      subject to certain adjustments, or approximately 4,545,455 shares of common
      stock initially if all of the Preferred Shares are converted.




In
      connection with the Financing, we entered into a registration rights agreement
      (the “ Financing
      Registration Rights Agreement ”),
      dated
      October 23, 2007. with the Investor in which we agreed to file a registration
      statement (the “ Financing
      Registration Statement ”)
      with
      the SEC to register the shares of common stock underlying the Preferred Shares
      (the “Conversion Shares”) on the day that is the 45th day following the later of
      (i) 60 days following the sale of all of the securities included in the Insider
      Registration Statement, and (ii) 6 months following the effective date of the
      Insider Registration Statement, or any subsequent registration statement with
      respect thereto, or such earlier date as permitted by the SEC. We have agreed
      to
      use our best efforts to have the Financing Registration Statement declared
      effective within 105 calendar days of the filing of the Financing Registration
      Statement, or 135 calendar days of such filing in the case of a full review
      by
      the SEC. We are required to keep the Financing Registration Statement
      continuously effective under the Securities Act until such date as is the
      earlier of the date when all of the securities covered by that registration
      statement have been sold or the date on which such securities may be sold
      without any restriction pursuant to Rule 144 (the “ Financing
      Effectiveness Period ”).
      We
      will pay liquidated damages of 1% of the dollar amount of the Preferred Shares
      sold in the Financing per month, payable in cash, up to a maximum of 10%, if
      the
      Financing Registration Statement is not filed or declared effective within
      the
      foregoing time periods or ceases to be effective prior to the expiration of
      the
      Financing Effectiveness Period. However, no liquidated damages shall be paid
      with respect to any Preferred Shares that we are not permitted to include in
      the
      Financing Registration Statement due to the SEC’s application of Rule 415.
      Further, we granted the Investor demand and piggy-back registration rights
      with
      respect to the (i) shares of common stock underlying the Warrants issued in
      the
      Financing, (ii) shares issuable to the Investor if we do not meet certain net
      income and cash from operations thresholds for the 2007 and 2008 fiscal years;
      and (iii) shares issuable to the Investor if the Company’s common stock is not
      listed on NASDAQ or a higher exchange by June 30, 2009 (the “ Listing
      Shares “).




11




We
      entered into an employment agreement with Mr. Gao Xincheng to employ him as
      our
      Chairman, effective as of October 23, 2007. The current term of the agreement
      expires in October 22, 2010, but is renewable upon agreement by the parties
      to
      this agreement, unless earlier terminated by either party. We shall pay Mr.
      Gao
      a base monthly salary in an amount to be confirmed in writing every month.
      We
      shall also pay premiums for Mr. Gao for social insurance schemes such as
      Pension, Unemployment, Medical Insurance, etc. in accordance with relevant
      PRC
      laws and regulations. We have a right to adjust the salary and welfare of Mr.
      Gao appropriately based on his capability, experience, attitude, performance,
      achievement, working-age and position as well as our salary and position
      adjustment policies and business conditions experienced. Either parties to
      this
      agreement has a right to terminate this agreement, subject to the terms and
      conditions therein. In connection with this agreement, Mr. Gao also executed
      a
      Confidentiality and Non-competition Agreement with us.




We
      entered into an employment agreement with Ms. Li Gaihong to employ her as our
      Chief Financial Officer, effective as of October 23, 2007. The current term
      of
      the agreement expires in October 22, 2010, but is renewable upon agreement
      by
      the parties to this agreement, unless earlier terminated by either party. We
      shall pay Ms. Li a base monthly salary in an amount to be confirmed in writing
      every month. We shall also pay premiums for Ms. Li for social insurance schemes
      such as Pension, Unemployment, Medical Insurance, etc. in accordance with
      relevant PRC laws and regulations. We have a right to adjust the salary and
      welfare of Ms. Li appropriately based on her capability, experience, attitude,
      performance, achievement, working-age and position as well as our salary and
      position adjustment policies and business conditions experienced. Either parties
      to this agreement has a right to terminate this agreement, subject to the terms
      and conditions therein. In connection with this agreement, Ms. Li also executed
      a Confidentiality and Non-competition Agreement with us.




We
      entered into an employment agreement with Mr. Chen Jun to employ him as our
      Vice
      General Manager, effective as of October 23, 2007. The current term of the
      agreement expires in October 22, 2010, but is renewable upon agreement by the
      parties to this agreement, unless earlier terminated by either party. We shall
      pay Mr. Chen a base monthly salary in an amount to be confirmed in writing
      every
      month. We shall also pay premiums for Mr. Chen for social insurance schemes
      such
      as Pension, Unemployment, Medical Insurance, etc. in accordance with relevant
      PRC laws and regulations. We have a right to adjust the salary and welfare
      of
      Mr. Chen appropriately based on his capability, experience, attitude,
      performance, achievement, working-age and position as well as our salary and
      position adjustment policies and business conditions experienced. Either parties
      to this agreement has a right to terminate this agreement, subject to the terms
      and conditions therein. In connection with this agreement, Mr. Chen also
      executed a Confidentiality and Non-competition Agreement with
      us.


12




**ADVISEMENT**




Unless
      the context requires otherwise, “ *International
      Imaging Systems* “,
“ *the
      company* “,
“ *we* “,
“ *us* “,
“ *our* “
and
      similar terms refer to International Imaging Systems, Inc. Our common stock,
      par
      value $.0001 per share is commonly referred to in this quarterly report as
      our “ *common
      shares* “.
       The information in this quarterly report is current as of the date of this
      quarterly report (September 30, 2007), unless another date is
      specified.




We
      prepare our interim financial statements in accordance with United States
      generally accepted accounting principles.  Our financial condition and
      results of operations for the nine-month interim period ended September
      30, 2007 are not necessarily indicative of our prospective financial
      condition and results of operations for the pending full fiscal year ended
      December 31, 2007.  The interim financial statements presented in this
      quarterly report as well as other information relating to our company contained
      in this quarterly report should be read in conjunction and together with any
      reports, statements and information filed with the SEC.




**FORWARD
      LOOKING STATEMENTS**




In
      this
      quarterly report we make a number of statements, referred to as “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 (the “Exchange Act”), which
      are intended to convey our expectations or predictions regarding the occurrence
      of possible future events or the existence of trends and factors that may impact
      our future plans and operating results. These forward-looking statements are
      derived, in part, from various assumptions and analyses we have made in the
      context of our current business plan and information currently available to
      use
      and in light of our experience and perceptions of historical trends, current
      conditions and expected future developments and other factors we believe are
      appropriate in the circumstances. You can generally identify forward looking
      statements through words and phrases such as *“believe”,
      “expect”, “seek”, “estimate”, “anticipate”, “intend”, “plan”, “budget”,
“project”, “may likely result”, “may be”, “may continue”* and
      other similar expressions.




Each
      forward-looking statement should be read in context with and in understanding
      of
      the various other disclosures concerning our company and our business made
      elsewhere in this report as well as our public filings with the Securities
      and
      Exchange Commission. You should not place undue reliance on any forward-looking
      statement as a prediction of actual results or developments. We are not
      obligated to update or revise any forward-looking statements contained in this
      report or any other filing to reflect new events or circumstances unless and
      to
      the extent required by applicable law.


13




**MANAGEMENT’S
      DISCUSSION AND ANALYSIS OF**


**FINANCIAL
      CONDITION, RESULTS OF OPERATIONS AND PLAN OF OPERATION**




**Overview**




As
      of
      September 19, 2006, our board of directors determined that the implementation
      of
      the Company’s business plan prior to the change in control was no longer
      financially feasible. Since January 1, 2007 we have pursued an acquisition
      strategy, whereby we will seek to acquire undervalued businesses with a history
      of operating revenues in markets that provide room for growth (“Acquisition
      Strategy”). We will engage in identifying, investigating and, if warranted,
      acquiring companies that will enhance our revenues and increase shareholder
      value.




Our
      Acquisition Strategy has focused on pursuing a strategy of growth by acquiring
      undervalued businesses with a history of operating revenues. We will utilize
      several criteria to evaluate prospective acquisitions including whether the
      business to be acquired (1) is an established business with viable services
      or
      products, (2) has an experienced and qualified management team, (3) has room
      for
      growth and/or expansion into other markets, (4) is accretive to earnings, (5)
      offers the opportunity to achieve and/or enhance profitability, and (6)
      increases shareholder value.




As
      described in Item 1.01 of our Form 8-K filed on October 23, 2007, we entered
      into the Exchange Agreement and consummated the Share Exchange, pursuant to
      which we acquired all of the issued and outstanding ordinary shares of Baorun
      China in exchange for the issuance of 23,954,545 of our common shares to the
      Shareholders of Baorun China.




As
      a
      result of the Share Exchange, Baorun China became our wholly-owned operating
      subsidiary and, upon the issuance of the Shares, the Redsky Group Limited and
      Princeton Capital Group owned in the aggregate, approximately 94.11% of all
      of
      our issued and outstanding stock. We currently have a total of 25,454,545 issued
      and outstanding shares of Common Stock, 1,000,000 issued and outstanding shares
      of Preferred Stock and 35,681,818 shares outstanding on a fully diluted basis
      including shares of Common Stock issuable upon conversion of Preferred Stock
      and
      the exercise of warrants.




As
      the
      result of the consummation of the Share Exchange, we are no longer a shell
      company as that term is defined in Rule 12b-2 of the Securities Exchange Act
      of
      1934, as amended.




**Critical
      Accounting Policies**




The
      preparation of our consolidated financial statements in conformity with
      accounting principles generally accepted in the United States requires us to
      make estimates and judgments that affect our reported assets, liabilities,
      revenues, and expenses, and the disclosure of contingent assets and liabilities.
      We base our estimates and judgments on historical experience and on various
      other assumptions we believe to be reasonable under the circumstances. Future
      events, however, may differ markedly from our current expectations and
      assumptions. While there are a number of significant accounting policies
      affecting our consolidated financial statements; we believe the following
      critical accounting policies involve the most complex, difficult and subjective
      estimates and judgments:




14




Use
      of
      Estimates - These financial statements have been prepared in accordance with
      accounting principles generally accepted in the United States of America and,
      accordingly, require management to make estimates and assumptions that affect
      the reported amounts of assets and liabilities at the date of the financial
      statements and the reported amounts of revenues and expenses during the
      reporting period. Specifically, our management has estimated our net operating
      loss for tax purposes. Actual results could differ from those
      estimates.




Cash
      and
      Equivalents - We maintain our cash in bank deposit accounts, which at times,
      may
      exceed federally insured limits. We have not experienced any losses in such
      account.




**Going
      Concern**




We
      are
      currently in the process of implementing our new business plan, focusing on
      our
      acquisition strategy. At present, we have sufficient capital on hand to fund
      our
      operations only through September of 2007. There can be no assurance that upon
      implementing our new business plan, we will be successful or that we will start
      producing sufficient revenues to maintain our operations. The foregoing matters
      raise substantial doubt about our ability to continue as a going
      concern.




**Results
      of Operations**




**Revenue**




We
      have
      no revenue from continuing operations for the three or nine month periods ended
      September 30, 2007 or 2006. As a result of the decision to implement a new
      business plan, we have reclassified prior period operations as discontinued
      operations. Prior year revenue which is now included as a part of discontinued
      operations was $145,889 for the nine month period ended September 30, 2006.
      There was no revenue during the three month period ended September 30,
      2006.




**General
      and Administrative Expenses**




General
      and administrative expenses were $30,190 and $97,576 for the three and nine
      month periods ended September 30, 2007, respectively. Prior year general and
      administrative expenses which are now included as a part of discontinued
      operations were $84,435 and $447,813 for the three and nine month periods ended
      September 30, 2006, respectively. Current period general and administrative
      expenses consist primarily of professional fees.




**Plan
      of Operation**




We
      have
      pursued an Acquisition Strategy, whereby we will seek to acquire undervalued
      businesses with a history of operating revenues in markets that provide room
      for
      growth. We will primarily engage in identifying, investigating and, if
      investigation warrants, acquiring companies that will enhance our revenues
      and
      increase shareholder value. Our Acquisition Strategy has focused on pursuing
      a
      strategy of growth by acquiring undervalued businesses with a history of
      operating revenues. We will utilize several criteria to evaluate prospective
      acquisitions including whether the business to be acquired (1) is an established
      business with viable services or products, (2) has an experienced and qualified
      management team, (3) has room for growth and/or expansion into other markets,
      (4) is accretive to earnings, (5) offers the opportunity to achieve and/or
      enhance profitability, and (6) increases shareholder value.




15




On
      October 23, 2007, we consummated the transactions contemplated by the Exchange
      Agreement, pursuant to which we acquired 10,000 ordinary shares of Baorun China,
      representing all of the issued and outstanding shares of Baorun China, in
      exchange for the issuance in the aggregate of 23,954,545 shares of our common
      stock to the shareholders, representing approximately 94.11% of our shares
      of
      common stock issued and outstanding (the “Share Exchange”).




As
      a
      result we are now a producer and distributor of heavy oil and finished oil.
      We
      also engage in the research and development, manufacturing and distribution
      of
      bio-diesel.




We
      now
      operate three oil depots located in Xi’an , the Shaanxi Province, China and one
      10,000 square-meter bio-diesel production plant located in Tongchuan, the
      Shaanxi Province, China. Our major market is China. Currently, our products
      are
      sold in 14 provinces and municipalities of China covering the Shaanxi Province,
      Henan Province, Hebei Province, Shangdong Province, Shanxi Province, Hunan
      Province, Hubei Province, Jiangxi Province, Guizhou Province, Yunnan Province,
      Beijing, Shanghai, Fujian Province and Xinjiang. We conduct our business
      operations through our wholly-owned subsidiary Redsky China and thereby through
      a variable interest entity Xi’an Baorun. Both companies are incorporated in
      PRC.




In
      connection with the Share Exchange, our Chief Executive Officer, Mr. John Vogel
      ,and our Chief Financial Officer, Mr. Robert Scherne, resigned from their
      respective positions as officers of the Company. Mr. Vincent Finnegan also
      resigned as a director on our Board of Directors. Mr. Gao Xincheng was appointed
      by our Board of Directors to fill the vacancy created upon the resignation
      of
      Mr. Finnegan. Ms. Li Gaihong was nominated to serve as a director, upon the
      resignation of Mr. Vogel, which resignation shall be effective the tenth day
      after the mailing of a Scheduler 14f-1 to our stockholders regariding the change
      in control of our Board of Directors.




In
      connection with the Share Exchange, we entered into three employment agreements.
      We entered into an employment agreement with Mr. Gao Xincheng to employ him
      as
      our Chairman, effective as of October 23, 2007. The current term of the
      agreement expires in October 22, 2010, but is renewable upon agreement by the
      parties to this agreement, unless earlier terminated by either party. We shall
      pay Mr. Gao a base monthly salary in an amount to be confirmed in writing every
      month. We shall also pay premiums for Mr. Gao for social insurance schemes
      such
      as Pension, Unemployment, Medical Insurance, etc. in accordance with relevant
      PRC laws and regulations. We have a right to adjust the salary and welfare
      of
      Mr. Gao appropriately based on his capability, experience, attitude,
      performance, achievement, working-age and position as well as our salary and
      position adjustment policies and business conditions experienced. Either parties
      to this agreement has a right to terminate this agreement, subject to the terms
      and conditions therein. In connection with this agreement, Mr. Gao also executed
      a Confidentiality and Non-competition Agreement with us.




16




We
      entered into an employment agreement with Ms. Li Gaihong to employ her as our
      Chief Financial Officer, effective as of October 23, 2007. The current term
      of
      the agreement expires in October 22, 2010, but is renewable upon agreement
      by
      the parties to this agreement, unless earlier terminated by either party. We
      shall pay Ms. Li a base monthly salary in an amount to be confirmed in writing
      every month. We shall also pay premiums for Ms. Li for social insurance schemes
      such as Pension, Unemployment, Medical Insurance, etc. in accordance with
      relevant PRC laws and regulations. We have a right to adjust the salary and
      welfare of Ms. Li appropriately based on her capability, experience, attitude,
      performance, achievement, working-age and position as well as our salary and
      position adjustment policies and business conditions experienced. Either parties
      to this agreement has a right to terminate this agreement, subject to the terms
      and conditions therein. In connection with this agreement, Ms. Li also executed
      a Confidentiality and Non-competition Agreement with us.




We
      entered into an employment agreement with Mr. Chen Jun to employ him as our
      Vice
      General Manager, effective as of October 23, 2007. The current term of the
      agreement expires in October 22, 2010, but is renewable upon agreement by the
      parties to this agreement, unless earlier terminated by either party. We shall
      pay Mr. Chen a base monthly salary in an amount to be confirmed in writing
      every
      month. We shall also pay premiums for Mr. Chen for social insurance schemes
      such
      as Pension, Unemployment, Medical Insurance, etc. in accordance with relevant
      PRC laws and regulations. We have a right to adjust the salary and welfare
      of
      Mr. Chen appropriately based on his capability, experience, attitude,
      performance, achievement, working-age and position as well as our salary and
      position adjustment policies and business conditions experienced. Either parties
      to this agreement has a right to terminate this agreement, subject to the terms
      and conditions therein. In connection with this agreement, Mr. Chen also
      executed a Confidentiality and Non-competition Agreement with
      us.




**Liquidity
      and Capital Resources**




As
      of
      September 30, 2007 we had working capital of $43,489.




On
      October 23, 2007, we completed a private equity financing of $10,000,000 with
      one accredited investor pursuant to a securities purchase agreement. Net
      proceeds from the financing were approximately $9,575,000. We sold to the
      Investor 1,000,000 shares of our Series A Convertible Preferred Stock, par
      value
      $0.001 (the “ Preferred
      Shares “)
      for a
      purchase price of $10.00 per share and issued: (i) a Series A-1 Warrant to
      purchase 3,409,091 shares of our common stock and (ii)a Series A-2 Warrant
      to
      purchase 2,272,728 shares of our common stock. The Series A-1 warrant to
      purchase 3,409,091 shares of our common stock has an exercise price of US$3.00
      per share and the Series A-2 warrant to purchase 2,272,728 shares of our common
      stock has an exercise price of US$4.40 per share. Each of the Warrants has
      a
      term of 5 years. In connection with the Financing, we restated and amended
      the
      Certificate of Designation of the Relative Rights and Preferences of our Series
      A Convertible Preferred Stock in its entirety. Each Preferred Share is
      convertible into a number of fully paid and nonassessable shares of our common
      stock equal to the quotient of the liquidation preference amount per share
      ($10.00) divided by the conversion price, which initially is $2.20 per share,
      subject to certain adjustments, or approximately 4,545,455 shares of common
      stock initially if all of the Preferred Shares are converted.




17




On
      August
      10, 2007, we completed the private placement of 450,000 shares of common stock
      for gross proceeds to the Company of $75,000. The shares were sold to accredited
      investors pursuant to the exemption from registration contained in Section
      4(2)
      of the Securities Act of 1933, as amended.




**Recent
      Accounting Pronouncements**




In
      February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for
      Financial Assets and Financial Liabilities - Including an Amendment of FASB
      Statement No. 115.” This statement permits entities to choose to measure many
      financial instruments and certain other items at fair value. Most of the
      provisions of SFAS No. 159 apply only to entities that elect the fair value
      option. However, the amendment to SFAS No. 115, “Accounting for Certain
      Investments in Debt and Equity Securities,” applies to all entities with
      available-for-sale and trading securities. SFAS No. 159 is effective as of
      the
      beginning of an entity’s first fiscal year that begins after November 15, 2007.
      Early adoption is permitted as of the beginning of a fiscal year that begins
      on
      or before November 15, 2007, provided the entity also elects to apply the
      provision of SFAS No. 157, “Fair Value Measurements.” The adoption of this
      statement is not expected to have a material effect on the Company’s financial
      statements.




**CONTROLS
      AND PROCEDURES**




**Item
      3. Controls and Procedures.**




Disclosure
      controls and procedures are controls and other procedures that are designed
      to
      ensure that information required to be disclosed by us in the reports that
      we
      file or submit under the Exchange Act is recorded, processed, summarized and
      reported, within the time periods specified in the Securities and Exchange
      Commission’s rules and forms.




Based
      on
      their evaluation of the Company’s disclosure controls and procedures (as defined
      in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the
      period covered by this quarterly report on Form 10-QSB, and the interim period
      up to the date of filing this report, the Company’s Chief Executive Officer and
      Chief Financial Officer have concluded that as of the end of the period covered
      by this report and the interim period up to the date of filing the report the
      Company’s disclosure controls and procedures are designed to ensure that
      information required to be disclosed by the Company in the reports that it
      files
      or submits under the Exchange Act is recorded, processed, summarized and
      reported within the time periods specified in the SEC’s rules and forms and are
      operating in an effective manner. Our officers also concluded that our
      disclosure controls and procedures are effective to ensure that such information
      is accumulated and communicated to our management, including our principal
      executive and principal financial officer, to allow timely decisions regarding
      required disclosures.




The
      Chief
      Executive Officer and Chief Financial Officer have also concluded that there
      were no changes in the Company’s internal controls or in other factors that have
      materially affected, or are reasonably likely to materially affect, the
      Company’s internal control over financial reporting.


18




**PART
      II - OTHER INFORMATION**




**Item
      1.   Legal Proceedings**




None




**Item
      2.   Unregistered Sales of Equity Securities and Use of
      Proceeds**





On
      August
      10, 2007, we completed the private placement of 450,000 shares of common stock
      for gross proceeds to the Company of $75,000. The shares were sold to accredited
      investors pursuant to the exemption from registration contained in Section
      4(2)
      of the Securities Act of 1933, as amended.




**Item
      3.   Defaults Upon Senior Securities**




None




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




NONE:




**Item
      5.   Other Information.**




None




**Item
      6.  Exhibits.**




The
      following exhibits are hereby filed as part of this Quarterly Report on Form
      10-QSB or incorporated by reference.





Exhibit
                Number:
            
            Description3.1
            
            Certificate
                of Correction filed on July 24, 200731.1
            
            Certification
                of the Chief Executive Officer pursuant to Rule 13a-14(a) and Rule
                15d-14(a) of the Securities Exchange Act, as amended31.2
            
            Certification
                of the Chief Financial Officer pursuant to Rule 13a-14(a) and Rule
                15d-14(a) of the Securities Exchange Act, as amended32.1
            
            Certification
                of the Chief Executive Officer a Pursuant to 18 U.S.C. 1350, as adopted
                pursuant to Section 906 of the Sarbanes-Oxley Act of
                200232.2
            
            Certification
                of the Chief Financial Officer Pursuant to 18 U.S.C. 1350, as adopted
                pursuant to Section 906 of the Sarbanes-Oxley Act of
                2002





19




**SIGNATURES**




In
      accordance with the requirements of the Securities Exchange Act of 1934, the
      Registrant has caused this report to be signed by the undersigned hereunto
      duly
      authorized.




**International
                Imaging Systems, Inc.**Dated:
                November 13, 2007
            By:
            /s/Gao
                XinchengName:
            Gao
                XinchengTitle:
            Chief
                Executive OfficerBy:
            /s/Li
                GaihongName:
            Li
                GaihongTitle:
            Chief
                Financial Officer(Principal
              Accounting Officer)




20