SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   FORM 10-QSB

     {X}     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                  For the quarterly period ended June 30, 2005

                                       Or

     { }    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

             For the transition period from __________ to __________

                         COMMISSION FILE NUMBER: 0-25413

                       INTERNATIONAL IMAGING SYSTEMS, INC.
        (Exact Name of Small Business Issuer as Specified in its Charter)

                      DELAWARE                            65-0854589
            (State or Other Jurisdiction                (IRS Employer
       of Incorporation or Organization)              Identification No.)

          2419 E. Commercial Blvd, Suite 307, Ft. Lauderdale, FL 33308
                    (Address of Principal Executive Offices)

                                 (954) 772-5501
                (Issuer's Telephone Number, Including Area Code)

                6689 N.W. 16th Terrace, Ft. Lauderdale, FL 33309
                  (Former Address of Issuer Since Last Report)

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

                                 YES {X} NO { }

State the number of shares outstanding of each of the Issuer's classes of common
equity as of the latest practicable date: As of August 5, 2005 the Registrant
had 6,028,700 shares of common stock outstanding.
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.

                                   FORM 10-QSB

                  For the quarterly period ended June 30, 2005

                                      INDEX


                                                                            Page

PART I       FINANCIAL INFORMATION

Item 1       Consolidated Balance Sheet as of June 30, 2005 (unaudited)      1

             Consolidated Statements of Operations for the three
             months and six months ended June 30, 2005 and 2004
             (unaudited)                                                     2

             Consolidated Statements of Cash Flows for the six months
             ended June 30, 2005 and 2004 (unaudited)                        3

             Notes to Consolidated Financial Statements                   4-12

Item 2       Management's Discussion and Analysis or Plan of Operation      13

Item 3       Controls and Procedures                                        15

PART II

Item 1       Legal Proceedings                                              16

Item 2       Changes in Securities                                          16

Item 3       Defaults Upon Senior Securities                                16

Item 4       Submission of Matters to a Vote of Security Holders            16

Item 5       Other Information                                              16

Item 6       Exhibits and Reports on Form 8-K                               16

Signature                                                                   17

Exhibit 31.1                                                                18

Exhibit 32.1                                                                20
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET
                                  JUNE 30, 2005


                                     ASSETS

CURRENT ASSETS:
    Accounts Receivable - Net of Allowance for Doubtful
        Accounts of $85,920                                         $    33,726
    Net Assets of Discontinued Operations                                13,867
    Advances to Customer                                                359,051
                                                                    -----------
        TOTAL CURRENT ASSETS                                            406,644

PROPERTY AND EQUIPMENT                                                    4,960

OTHER ASSETS:
    Security Deposits                                                     3,626
                                                                    -----------

TOTAL ASSETS                                                        $   415,230
                                                                    ===========


                    LIABILITIES AND SHAREHOLDERS' DEFICIENCY

CURRENT LIABILITIES:
    Notes Payable - Current                                         $ 1,108,644
    Accounts Payable                                                    529,540
    Accrued Expenses                                                     33,321
                                                                    -----------
        TOTAL CURRENT LIABILITIES                                     1,671,505

NOTES PAYABLE - Non-Current                                              22,567
                                                                    -----------

TOTAL LIABILITIES                                                     1,694,072
                                                                    -----------

SHAREHOLDERS' DEFICIENCY:
    Preferred Stock - $.001 Par Value - 1,000,000 Shares
        Authorized; -0- Shares Issued and Outstanding                      --
    Common Stock - $.001 Par Value - 29,000,000 Shares
        Authorized; 6,028,700 Shares Issued and Outstanding               6,029
    Additional Paid-In Capital                                           96,134
    Accumulated Deficit                                              (1,381,005)
                                                                    -----------
                TOTAL SHAREHOLDERS' DEFICIENCY                       (1,278,842)
                                                                    -----------

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIENCY                      $   415,230
                                                                    ===========

See accompanying notes to consolidated financial statements.

                                       -1-
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF OPERATIONS
            SIX MONTHS AND THREE MONTHS ENDED JUNE 30, 2005 AND 2004
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                        SIX MONTHS ENDED              THREE MONTHS ENDED
                                             JUNE 30,                      JUNE 30,
                                    --------------------------    --------------------------
                                        2005           2004           2005           2004
                                    -----------    -----------    -----------    -----------
<S>                                 <C>            <C>            <C>            <C>
REVENUES                            $   306,877    $ 1,611,195    $   242,058    $   704,590

COST OF GOODS SOLD                         --        1,150,101           --          501,908
                                    -----------    -----------    -----------    -----------

GROSS PROFIT                            306,877        461,094        242,058        202,682

GENERAL AND ADMINISTRATIVE
    EXPENSES                           (583,520)      (683,607)      (402,960)      (378,627)

OTHER INCOME (LOSS)                     (37,647)          --          (56,672)          --
                                    -----------    -----------    -----------    -----------

(LOSS) FROM CONTINUING
    OPERATIONS                         (314,290)      (222,513)      (217,574)      (175,945)

INCOME FROM DISCONTINUED
    OPERATIONS                            1,979          1,855          1,979            655
                                    -----------    -----------    -----------    -----------

NET (LOSS)                          $  (312,311)   $  (220,658)   $  (215,595)   $  (175,290)
                                    ===========    ===========    ===========    ===========

BASIC AND DILUTED (LOSS)
    PER SHARE                       $     (.052)   $     (.037)   $     (.036)   $     (.029)
                                    ===========    ===========    ===========    ===========

WEIGHTED AVERAGE NUMBER
    OF COMMON SHARES
    OUTSTANDING:
        Basic and Diluted             6,028,700      6,028,700      6,028,700      6,028,700
                                    ===========    ===========    ===========    ===========
</TABLE>


See accompanying notes to consolidated financial statements.

                                       -2-
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.
                                AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     SIX MONTHS ENDED JUNE 30, 2005 AND 2004

<TABLE>
<CAPTION>
                                                                  2005          2004
                                                               ----------    ----------
<S>                                                            <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
    Net (Loss)                                                 $ (312,311)   $ (220,658)
    Adjustments to Reconcile Net (Loss) to
        Net Cash (Used) by Operating Activities:
            Provision for Losses on Accounts Receivable            25,000          --
            Gain on Extinguishment of Debt                        (17,780)         --
            Loss on Sale of Note Receivable                        56,672          --
            Depreciation                                              612        27,594
            Net Assets of Discontinued Operations                  (7,679)       (4,869)
     Change in Operating Assets and Liabilities:
        Accounts Receivable                                       101,581        61,746
        Advances to Customer                                     (359,051)         --
        Inventories                                                  --          27,151
        Accounts Payable                                          (26,164)      107,959
        Accrued Expenses                                            3,675        (7,397)
        Customer Deposits                                              74           470
                                                               ----------    ----------
              NET CASH (USED) BY OPERATING ACTIVITIES            (535,371)       (8,004)
                                                               ----------    ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Collections of Note Receivable                                 64,314          --
    Expenditures for Property and Equipment                          --         (10,167)
                                                               ----------    ----------
              NET CASH (USED) BY INVESTING ACTIVITIES              64,314       (10,167)
                                                               ----------    ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Proceeds from Borrowings                                      545,600       304,500
    Repayment of Borrowings                                      (154,467)     (303,082)
                                                               ----------    ----------
              NET CASH PROVIDED BY FINANCING ACTIVITIES           391,133         1,418
                                                               ----------    ----------

NET (DECREASE) IN CASH                                            (79,924)      (16,753)

CASH - Beginning of Period                                         79,924        16,753
                                                               ----------    ----------

CASH - End of Period                                           $     --      $     --
                                                               ==========    ==========

SUPPLEMENTAL CASH FLOW INFORMATION:
    Interest Paid                                              $   17,447    $   30,559
                                                               ==========    ==========
    Income Taxes Paid                                          $     --      $     --
                                                               ==========    ==========
</TABLE>

See accompanying notes to consolidated financial statements.

                                       -3-
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.
                                AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



NOTE A -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -

          Nature of Operations:
               A.M.S. Marketing, Inc. was incorporated in the State of Delaware
               on July 23, 1998. In October, 2003, the Company changed its name
               to International Imaging Systems, Inc.

               The Company, through its wholly-owned subsidiary, Advanced
               Staffing, Inc., is principally engaged in the employee leasing
               business. The Company also sells plastic and paper security cards
               domestically and abroad, and markets pre-owned, brand name
               photocopier machines for an unrelated party.

          Basis of Presentation:
               The consolidated financial statements include the accounts of the
               Company and its wholly-owned subsidiaries: Advanced Staffing,
               Inc., Advanced Imaging Systems, LLC, Renewable Assets, Inc. and
               Accurate Images, Inc. Intercompany transactions and accounts have
               been eliminated.

          Estimates:
               The preparation of financial statements in conformity with
               generally accepted accounting principles requires management to
               make estimates and assumptions that affect the reported amounts
               of assets and liabilities and disclosure of contingent assets and
               liabilities at the date of the financial statements and the
               reported amounts of revenues and expenses during the reporting
               period. Actual results could differ from those estimates.

          Financial Instruments:
               The carrying values of accounts receivable, accounts payable, and
               notes payable approximate fair value at June 30, 2005.

          Property and Equipment:
               Property and equipment are recorded at cost, less accumulated
               depreciation. Depreciation is primarily accounted for on the
               straight-line method based on estimated useful lives. The
               depreciation of leasehold improvements is based on the shorter of
               the lease term or the life of the improvement. The carrying value
               of property and equipment is assessed when factors indicating
               impairment is present.

                                       -4-
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED



NOTE A  - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) -

          Revenue:
               Personnel placement fees are recorded upon completion of contract
               terms. Revenue is recognized when materials are shipped.

          Advertising:
               Advertising costs are expensed as incurred.

          Earnings or (Loss) Per Common Share:
               Basic earnings per common share is calculated by dividing net
               income by the weighted average number of common shares
               outstanding during the period. Diluted earnings per common share
               is calculated by adjusting weighted average outstanding shares,
               assuming conversion of all of the Company's "Exchangeable Notes"
               (see note H) as if conversion to common shares had occurred at
               the beginning of the current period. Interest expense applicable
               to the notes is added back to net income for purposes of
               computing diluted earnings per share. The additional shares
               contingently issuable to holders of the exchangeable notes were
               not considered for the periods ended June 30, 2005 and 2004
               because their effect would have been anti-dilutive.

          Recent Accounting Pronouncements:
               In December 2004, the Financial Accounting Standards Board (FASB)
               issued a revision of Statement No. 123, Accounting for Stock
               Based Compensation, entitled "Share Based Payments". The
               Statement is effective for small business issuers for periods
               after December 15, 2005, and establishes standards for the
               accounting for transactions in which an entity exchanges its
               equity instruments for goods or services. It also addresses
               transactions in which an entity incurs liabilities in exchange
               for goods or services that are based on the fair value of the
               entity's equity instruments or that may be settled by the
               issuance of those equity instruments. The Statement eliminates
               the alternative to use the "intrinsic value method" of accounting
               that was previously provided in the original version of Statement
               No. 123. Under that method, issuance of stock options to
               employees generally resulted in recognition of no compensation
               cost. The recently issued revision requires entities to recognize
               the cost of employee services received in exchange for award of
               equity instruments based on the grant date fair value of those
               awards.

                                       -5-
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE A  - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (continued) -

          Recent Accounting Pronouncements (continued):
               In December, 2004, the Financial Accounting Standards Board
               issued SFAS No. 153, "Exchanges of Nonmonetary assets - an
               amendment of APB Opinion No. 29". The Statement is effective for
               fiscal periods beginning after June 15, 2005, and eliminates
               certain differences that existed between U.S. accounting
               standards for nonmonetary transactions and those standards
               provided by International Accounting Standard No. 16, "Property,
               Plant and Equipment" and International Accounting Standard No.
               38, "Intangible Assets". The Statement eliminates the exceptions
               to fair value for exchanges of similar productive assets and
               replaces it with a general exception for exchange transactions
               that do not have commercial substance - that is, transactions
               that are not expected to result in significant changes in the
               cash flows of the reporting entity.

               Implementation of the Standards are not expected to have a
               material effect on comparability of the Company's financial
               statements.


NOTE B  - ADVANCES TO CUSTOMER -

          The Company paid non-interest bearing advances of $353,010 to a
          customer, Alcard Mexico, S.A. ("Alcard") to enable "Alcard" to build
          its production facility. The loan is expected to be assigned to the
          Company's shareholders as repayment of obligations owing to them (see
          Note G).


NOTE C  - PROPERTY AND EQUIPMENT -

          Property and equipment consists of the following at June 30, 2005:

                Machinery and Equipment                    $   6,747
                Furniture and Fixtures                         1,825
                                                           ---------
                                                               8,572
                Accumulated Depreciation                      (3,612)
                                                           ---------
                                                           $   4,960
                                                           =========

                                       -6-
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE D  - STOCK COMPENSATION PLAN -

          The Company's 2003 Equity Incentive Program provides for the grant of
          incentive stock options, nonqualified stock options, and restricted
          stock awards. Certain awards are intended to qualify as "incentive
          stock options" within the meaning of the Internal Revenue Code (the
          "Code"). Other awards granted under the "Program" are not intended to
          qualify as incentive stock options under the "Code".

          The total number of shares of the Company's common stock that may be
          issued during the first year under the "Program" may not exceed
          6,000,000, of which 1,000,000 will be available for issuance as
          incentive stock option grants and 5,000,000 will be available for
          issuance as nonqualified stock option grants. The total number of
          shares may be increased annually based upon the total number of common
          shares outstanding in subsequent years.


NOTE E  - CONCENTRATION OF RISK -

          Customer:
               Revenues from a single customer amounted to 81% of total
               revenues.

                                       -7-
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.
                                AND SUBSIDIARIES
                      (SUCCESSOR TO A.M.S. MARKETING, INC.)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE F  - COMMITMENTS -

          Rent:
               On May 11, 2005, the Company entered into a three year office
               lease. Minimum annual rentals are as follows:

                         2006           $41,601
                         2007           $48,098
                         2008           $48,098

               The Company is also obligated to pay annual pro-rata operating
               expenses charged by the landlord and real estate taxes.

               Net rent expense amounted to $8,104 after deducting sublease
               income from related parties.


          Consulting Agreement:
               In April, 2003, the Company entered into a three year management
               services contract with a shareholder. The agreement provides for
               monthly payments of $4,000, plus expense reimbursements.

          Employment Agreements:
               In July, 2003, the Company entered into three year employment
               contracts with certain individuals considered to be key
               employees. The contracts provide for annual remuneration
               aggregating approximately $281,000 with cost of living increases
               in the last two years of the contracts. In addition, the
               contracts provide for expense account allowances aggregating to
               $30,000 annually.

               Compensation for individuals covered by employment agreements
               amounted to $80,127 for the six months ended June 30, 2005.

                                       -8-
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE G -  NOTES PAYABLE -

          Notes payable consist of the following at June 30, 2005:

               6% Note Payable - Shareholder - Due in monthly
               installments of $1,500, including interest -
               Maturing in August, 2007                          $   39,985

               Demand Loans Payable - Shareholders - Working
               capital advances bearing no interest                 506,226

               5% Demand Loan Payable                                 5,000

               6% Exchangeable Notes Payable - Maturing at
               various times through December, 2005. The notes
               may be exchanged for common stock at maturity, at
               the discretion of the lenders based upon an
               exchange price of $.50 per common share for each
               dollar owed. Included in this amount are notes to
               shareholders amounting to $105,000.                  535,000
                                                                 ----------
                                                                  1,131,211
               Deduct Current Portion                            (1,108,644)
                                                                 ----------
                                                                 $   22,567
                                                                 ==========

          Interest expense amounted to $25,125 and $30,559 for the six months
          ended June 30, 2005 and 2004, respectively.

          The maturities of notes and loans payable for each of the succeeding
          five years subsequent to the current period as follows:

                                                    AMOUNT
                                                    ------

                     2005                         $1,107,263
                     2006                             17,026
                     2007                              6,922
                     2008                             --
                     2009                             --

          Representatives of certain note holders have claimed the notes to be
          in default as a result of the 2004 bulk asset sale.

          Two exchangeable notes have matured through August 15, 2005, totaling
          $75,000. The note holder has agreed to settle the obligation with the
          issuance of 150,000 shares of common stock. The shares will be issued
          in August, 2005 in accordance with the lender's request.

                                       -9-
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE H  - INCOME TAXES -

          The Company has a net operating loss carryforward of approximately
          $1,450,000, which may be carried forward through the year 2025, to
          offset future taxable income.

          Deferred tax assets, amounting to approximately $368,000, relating to
          the potential tax benefit of future tax deductions, was offset by a
          valuation allowance due to the uncertainty of profitable operations in
          the future.

          Significant components of the Company's deferred tax assets are as
          follows:

                 Accounts Receivable Allowance                  $   21,500
                 Net Operating Loss Carryforward                   346,500
                                                                ----------

                    TOTAL DEFERRED TAX ASSETS                      368,000

                 Valuation Allowance                              (368,000)
                                                                ----------

                 NET DEFERRED TAX ASSETS                        $     --
                                                                ==========

          The valuation allowance changed during 2005 resulting from the
          increase in the net operating loss carryforward and allowance for
          doubtful accounts.


NOTE I  - RELATED PARTY TRANSACTIONS -

          Promotional Fees:
               During the period ended June 30, 2005, the Company paid
               promotional/marketing development fees to an entity owned by the
               Chief Executive Officer of $4,500.

          Asset Sale:
               In connection with the Company's previous asset sale in 2004, it
               received a note receivable in the amount of $120,986 from the
               buyer, a former vendor.

               On June 13th, the note was discounted to the buyer for $50,000
               resulting in a loss of $56,672.

                                      -10-
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE J  - PENDING SPIN-OFF -

          On December 13, 2003, the Company formed a wholly-owned subsidiary,
          Renewable Assets, Inc., to carry on the promotional services line of
          the business from the predecessor company, A.M.S. Marketing, Inc. The
          promotional services line of the business consists of marketing
          pre-owned photocopy machines.

          The chief executive officer of Renewable Assets, Inc. is also a
          shareholder and creditor of International Imaging Systems, Inc.

          On April 13, 2004, the Board of Directors approved a spin-off of
          Renewable Assets, Inc. to International Images, Inc.'s shareholders of
          record on April 14, 2004.

          The shares of Renewable Assets, Inc. have not been distributed pending
          approval by the Securities and Exchange Commission.

          At June 30, 2005, the net assets of Renewable Assets, Inc. are
          presented as "net assets of discontinued operations" in the
          accompanying consolidated balance sheet. The results of the photocopy
          division operations are immaterial and not separately presented.


NOTE K  - OTHER INCOME (LOSS) -

          Other income consists of the following:

              Loss on Sale of Note Receivable             $ (56,672)
              Gain on extinguishment of debt  *              17,780
              Interest income                                 1,245
                                                          ---------
                                                          $ (37,647)
                                                          =========

          * The Company negotiated and paid a settlement of its trade creditors
          in 2005.

                                      -11-
<PAGE>

                       INTERNATIONAL IMAGING SYSTEMS, INC.
                                AND SUBSIDIARIES
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED


NOTE L  - CONTINGENCIES -

          Litigation:
               Two final judgments, in the aggregate amount of $220,000, have
               been obtained against the Company's wholly owned subsidiary,
               Advanced Imaging Systems. In addition, creditors of Advanced
               Imaging Systems, owed an aggregate of approximately $60,000, have
               threatened suit in the event of non-payment of such outstanding
               debt. Advanced Imaging Systems does not have the resources to
               satisfy such judgments and/or claims and is attempting to
               negotiate settlements with the creditors. If such negotiations
               prove unsuccessful, the Board of Directors of Advanced Imaging
               Systems, and the Company, as the sole shareholder of Advanced
               Imaging Systems, will have to consider their alternatives,
               including the filing of a petition in bankruptcy by Advanced
               Imaging Systems.

          Going Concern:
               A net loss from operations, negative working capital, and a
               shareholders' deficiency are issues that raise substantial doubt
               about the Company's ability to continue as a going concern.
               Management has taken steps to achieve profitable operations by
               operating as a broker for companies in printing businesses and
               outsourcing its production. In addition, the Company is
               generating revenue from its newly formed personnel agency,
               Advanced Staffing International, Inc. The accompanying financial
               statements have been prepared on the basis of a going concern,
               and do not reflect any adjustments resulting from an alternative
               assumption.

                                      -12-
<PAGE>

Item 2 Management's Discussion and Analysis or Plan of Operation

Overview
--------

     The Company was formed in July 1998 and since that time has engaged in the
business of marketing pre-owned, brand name photocopiers and office furniture
for Office Furniture Warehouse, Inc. Such business is now carried on through the
Company's wholly owned subsidiary, Renewable Assets, Inc., a Delaware
corporation, ("Renewable").

     Since July 2003 when the Company acquired Advanced Imaging Systems, LLC, a
Delaware limited liability company, ("Advanced"), we have also engaged in the
marketing, and until December 2004, the design and manufacturing of plastic and
paper credit cards, primarily for the telecommunications industry. Advanced
currently markets plastic and paper cards to such companies as Motorola, and to
other less well-known companies.

     Additionally, and in furtherance of such business, in January 2005 our
formerly inactive wholly owned subsidiary, Accurate Images, Inc., a Florida
corporation, ("Accurate"), entered into an oral Management Services Agreement
with Alcard Mexico, S.A., ("Alcard"), pursuant to which Accurate had agreed to
assist Alcard in the production of paper and plastic credit cards in Mexico.
Accurate and the shareholders of Alcard had also agreed to advance to Alcard the
funds required for furniture, fixtures, and leasehold improvements for the
Mexico facility. Accurate's obligation was limited to a maximum of $380,000,
all of which as of the date of this report has been advanced. Three of the
Company's principal shareholders, Laura Palisa Mujica, Michael D'Angelo, and
Lara Sarafianos loaned Accurate the funds that it advanced to Alcard.

     In May 2005, subsequent to ongoing discussions between Accurate and Alcard,
and the hiring by Alcard of a Mexican national to manage the facility, the oral
agreement between Accurate and Alcard was changed from a Management Services
Agreement to a Sales and Marketing Agreement. Pursuant to the terms of the Sales
and Marketing Agreement, Accurate has become the exclusive world-wide sales and
marketing agent for Alcard, and will be entitled to receive a yet to be
determined percentage of all of Alcard's sales after the repayment of the
advances made to Alcard by Accurate and Alcard's shareholders. Accurate and
Alcard intend to reduce the Sales and Marketing Agreement to writing as soon as
practicable. In addition, Laura Palisa Mujica, Michael D'Angelo, and Lara
Sarafianos have agreed to accept (i) an assignment of a note in the amount of
$325,000 to be executed by Alcard in favor of Accurate evidencing the advances
by Accurate to Alcard, and (ii) a payment of $55,000 directly from Accurate in
full satisfaction of their loans to Accurate. In June 2005 Alcard began
manufacturing and shipping product to its first customer, Telefonica de Mexico.

Also in January 2005 the Company formed Advanced Staffing International, Inc., a
Florida corporation, ("Staffing"), that is engaged in the business of leasing
employees, and earns revenues on the spread between what it pays its employees
and what it charges

                                      -13-
<PAGE>

it clients for such employees. In March 2005 Staffing commenced providing
employees to its first client, Ramada Vacation Properties.

     As discussed below, the three month period ended June 30, 2005 (the "2005
Second Quarter") was characterized by a 65 % decrease in sales as compared to
the three month period ended June 30, 2004 (the "2004 Second Quarter"),
resulting in a net loss of $215,595 in the 2005 Second Quarter as compared to a
net loss of $175,290 in the 2004 Second Quarter.

Results of Operations
---------------------

Sales

     Sales for the 2005 Second Quarter were $242,058 as compared to sales of $
704,590 for the 2004 Second Quarter, a decline of 66%. Sales for the six month
period ended June 30, 2005 (the "2005 Period") were $306,877 as compared to
sales of $1,611,195 for the same period in the prior year (the "2004 Period"),
a decline of 81%. Such declines in sales were attributable to the cessation of
the in-house manufacturing of its products by Advanced during December 2004.
Substantially all of the sales in the 2005 Second Quarter and in the 2005 Period
were attributable to Advanced and to Staffing. Approximately 81% of total
revenues during the Second Quarter were derived from a single customer.

Gross Profit

     Gross Profit as a percentage of sales ("Gross Margin") increased to 100 %
in the 2005 Second Quarter from 29 % in the 2004 Second Quarter. Gross Margin
increased to 100 % for the 2005 Period from 29 % for the 2004 Period. Consistent
with the decreases in sales, such increases in Gross Margins were attributable
to the cessation of the in-house manufacturing of its products by Advanced
during December 2004.

General and Administrative Expenses

General and Administrative Expenses ("G&A") were $402,960, or 166% of net sales
in the 2005 Second Quarter as compared to $378,627, or 54% of net sales in the
2004 Second Quarter. G&A were $583,520, or 190% of sales for the 2005 Period as
compared to $683,607, or 42% of sales for the 2004 Period. Once again, such
increases in G&A as a percentage of net sales were attributable to the cessation
of the in-house manufacturing of its products by Advanced during December 2004
and the Company's entry into the employee leasing business.

Other Expenses

Interest expense increased in the 2005 Second Quarter to $15,367 from $11,363 in
the 2004 Second Quarter. Interest expense declined for the 2005 Period to
$25,125

                                      -14-
<PAGE>

from $30,559 in the 2004 Period. Such declines were attributable to additional
borrowings in 2005 and the satisfaction of debt during 2004.


Liquidity and Capital Resources
-------------------------------

     The Company financed its operations during the six month period ended June
30, 2005 through revenues from operations, the receipt of note payments, and
shareholder advances of $545,600. As of June 30, 2005 the Company's principal
sources of liquidity consisted of net accounts receivable of $33,726. The
Company believes that such funds, together with expected revenues from
operations will be sufficient to fund the Company's operations for the
foreseeable future, assuming that the Company returns to profitable operations.
Despite the efforts of the Company, however, no assurance can be given that
operations will in fact return to profitability. To continue operations, the
Company intends to seek to raise capital from both existing and new
shareholders. There can be no assurance that the Company will be able to find
sources of financing on terms acceptable, if at all. If the Company does not
find sources to finance its operations, it may become necessary for the Company
to curtail certain of it business activities.

Two final judgments in the aggregate amount of $220,000 have been obtained
against the Company's wholly owned subsidiary, Advanced Imaging Systems. In
addition, creditors of Advanced Imaging Systems owed an aggregate of
approximately $60,000 have threatened suit in the event of non-payment of such
outstanding debt. Advanced Imaging Systems does not have the resources to
satisfy such judgments and/or claims and is attempting to negotiate settlements
with the creditors. If such negotiations prove unsuccessful, the board of
directors of Advanced Imaging Systems, and the Company, as the sole shareholder
of Advanced Imaging Systems, will have to consider all of their alternatives,
including the filing of a petition in bankruptcy by Advanced Imaging Systems.

Item 3 Controls and Procedures

     (a) Evaluation of Disclosure Controls and Procedures
         ------------------------------------------------

We conducted an evaluation, with the participation of the Chief Executive and
Chief financial Officer, of the effectiveness of our disclosure controls and
procedures as of the end of the period covered by this report. Our disclosure
controls and procedures are designed to ensure that information required to be
disclosed by International Imaging Systems, Inc. in the reports we filed under
the Securities Exchange Act of 1934, as amended (the "Exchange Act"), is
recorded, processed, summarized and reported on a timely basis. Based upon that
evaluation, the Chief Executive and Chief Financial Officer concluded that our
disclosure controls and procedures were effective as of the end of the period
covered by this report so as to alert him in a timely fashion to material
information required to be disclosed in reports we file under the Exchange Act.

                                      -15-
<PAGE>

     (b) Changes in Controls
         -------------------

There have not been any changes in our internal control over financial reporting
during the fiscal quarter to which this report relates that have materially
affected, or are reasonably likely to materially affect, our internal controls
over financial reporting.


                                     PART II
                                OTHER INFORMATION

Item 1 Legal Proceedings

     On April 29, 2005, the Company's wholly owned subsidiary, Advanced Imaging
Systems, LLC, was served with a Summons and Complaint by Gould Paper Corporation
in an action brought in Broward County, Florida, for payment of outstanding
invoices in the amount of $176,799. On August 2, 2005, the plaintiff obtained a
judgment against Advanced Imaging in the amount of $183, 274. The amount of the
judgment has been reserved against in the Company's balance sheet. Advanced
Imaging Systems has limited assets and intends to attempt to negotiate a
settlement with the plaintiff. If such negotiations prove unsuccessful, the
board of directors of Advanced Imaging Systems and the Company, as the sole
shareholder of Advanced Imaging Systems, will have to consider all alternatives,
including the filing of a petition in bankruptcy by Advanced Imaging Systems.


Item 2 Changes in Securities

     None

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 and Reports on Form 8-K

     (a) Exhibits

     31.1 Certification of the Chief Executive Officer and the Chief Financial
Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.


     32.1 Certification of the Chief Executive Officer and the Chief Financial
Officer pursuant to 18 U.S.C. Section 1350.

     (b) Reports on Form 8-K

     None

                                      -16-
<PAGE>

                                   SIGNATURES

In accordance with the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned duly authorized.

INTERNATIONAL IMAGING SYSTEMS, INC.

By: /s/ C. LEO SMITH
    --------------------------------------
    C. Leo Smith, Chief Executive Officer,
    Chief Financial Officer and President

Dated: August 16, 2005


                                      -17-