| x | QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE                ACT OF 1934 |
|---|----------------------------------------------------------------------------------------------------------------------|

|  ̈ | TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE                ACT OF 1934 |
|--------|-----------------------------------------------------------------------------------------------------------------------|

| Nevada                                  |   | 3990                                |   | 20-3061907                              |
|-----------------------------------------|--------|-------------------------------------|--------|-----------------------------------------|
| (State                of incorporation) |   | (Primary                SIC Number) |   | (IRS                Employer ID Number) |

| Large accelerated filer  ̈  |   | Accelerated filer  ̈  |   | Non-accelerated filer  ̈                                |   | Smaller reporting company þ |
|-----------------------------------------------------|--------|------------------------------------------|--------|----------------------------------------------------------------------------|--------|-------------------------------------------------|
|                                                |   |                                     |   | (Do                not check if a smallerReporting                company) |   |                                            |

----

**NANODYNAMICS      HOLDINGS, INC. **

**TABLE      OF CONTENTS**

|                                                                                                                       |                   **Page**                                                                       |
|----------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
| Part                I Financial Information                                                                                |                                                                                                  |
|                                                                                                                       |                                                                                                       |   |
|                  Item 1                                                                                          | Financial                Statements                                                                        |    |
|                                                                                                                       |                                                                                                       |   |
|                                                                                                                       | Condensed                Balance Sheet (unaudited)                                                         |                   1 |
|                                                                                                                       |                                                                                                       |   |
|                                                                                                                       | Condensed                Statements of Operations (unaudited)                                              |                   2 |
|                                                                                                                       |                                                                                                  |   |
|                                                                                                                       | Statements                of Changes in Shareholders’ Equity                                         | 3 |
|                                                                                                                       |                                                                                                       |   |
|                                                                                                                       | Condensed                Statements of Cash Flows (unaudited)                                              |                   4 |
|                                                                                                                       |                                                                                                       |   |
|                                                                                                                       | Notes                to the Unaudited Condensed Financial Statements                                       |                   5 |
|                                                                                                                       |                                                                                                       |   |
|                  Item 2                                                                                          | Management’s                Discussion and Analysis of Financial Condition and Results of Operations |                   12 |
|                                                                                                                       |                                                                                                       |   |
|                  Item 4T                                                                                         | Controls                and Procedures                                                                     |                   13 |
|                                                                                                                       |                                                                                                       |
| Part                II Other Information                                                                                   |                   14                                                                             |
|                                                                                                                       |                                                                                                       |   |
|                  Item 6                                                                                          | Exhibits                                                                                                   |                   14 |
|                                                                                                                       |                                                                                                       |
| Signatures                                                                                                                 |                                                                                                  |
|                                                                                                                       |                                                                                                       |
| Exhibit                – Certification of Principal Executive Officer and Principal Financial                Officer |                                                                                                  |
|                                                                                                                       |                                                                                                       |
| Exhibit                – Certification of Chief Executive Officer and Chief Financial                Officer         |                                                                                                  |

----

**PART      I – FINANCIAL INFORMATION**

**Item      1. Financial Statements**

**NANODYNAMICS        HOLDINGS, INC.**

**(FORMERLY        MYSTICA CANDLE, CORP.)**

**(A        Development Stage Company)**

**Balance        Sheets**

----

| **ASSETS**                                                                                                                       |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                             |   |    |   |   |   |
|                                                                                                                             |   |  **As of ** |   | **As of** |   |
|                                                                                                                             |   |  **September 30,** |   | **June 30,** |   |
|                                                                                                                             |   |  **2008** |   | **2008** |   |
|                                                                                                                             |   |  (Unaudited) |   |   |   |
| **Current                  Assets**                                                                                              |   |   |   |   |   |   |   |
| Cash                                                                                                                             |   | $ | 6,460 |   | $ | 24,800 |   |
|                                                                                                                             |   |   |   |   |   |   |   |
| **Total                  Current Assets**                                                                                        |   |   | 6,460 |   |   | 24,800 |   |
|                                                                                                                             |   |   |   |   |   |   |   |
| **Net                  fixed Assets**                                                                                            |   |   | 10,770 |   |   | 11,745 |   |
|                                                                                                                             |   |   |   |   |   |   |   |
| **Total                  Assets**                                                                                                |   | $ | **17,230** |   | $ | **36,545** |   |
|                                                                                                                             |   |   |   |   |   |   |   |
| **LIABILITIES                  & STOCKHOLDERS' EQUITY (DEFICIT)**                                                            |
|                                                                                                                             |   |   |   |   |   |   |   |
| **Current                  Liabilities**                                                                                         |   |   |   |   |   |   |   |
| Accounts                  Payable                                                                                                |   | $ | 1,408 |   | $ | 4,565 |   |
| Loan                  Payable                                                                                                    |   |   | 50,000 |   |   | 50,000 |   |
| Accrued                  Expenses                                                                                                |   |   | 1,285 |   |   | 285 |   |
| **Total                  Current Liabilities**                                                                                   |   |   | 52,693 |   |   | 54,850 |   |
|                                                                                                                             |   |   |   |   |   |   |   |
| **Total                  Liabilities**                                                                                           |   |   | 52,693 |   |   | 54,850 |   |
|                                                                                                                             |   |   |   |   |   |   |   |
| **Stockholders'                  Equity (Deficit)**                                                                              |   |   |   |   |   |   |   |
|                                                                                                                             |   |   |   |   |   |   |   |
| Common                  stock, ($0.001 par value, 290,000,000                                                                    |   |   |   |   |   |   |   |
| authorized;                  7,747,374 shares issued and outstanding as                  of September 30, 2008 and June 30, 2008 |   |   |   |   |   |   |   |
| Preferred                  stock, ($0.001 par value,10,000,000 authorized;                                                       |   |   | 7,747 |   |   | 7,747 |   |
| none                  issued as of September 30, 2008 and June                  30, 2008                                         |   |   |  |   |   |  |   |
| Additional                  paid-in capital                                                                                      |   |   | 99,753 |   |   | 99,753 |   |
| Deficit                  accumulated during development stage                                                                    |   |   | (142,963 | ) |   | (125,805 | ) |
|                                                                                                                             |   |   |   |   |   |   |   |
| **Total                  Stockholders' Equity (Deficit)**                                                                        |   |   | (35,463 | ) |   | (18,305 | ) |
|                                                                                                                             |   |   |   |   |   |   |   |
| **TOTAL                  LIABILITIES &**                                                                                     |   |   |  |   |   |  |   |
| **STOCKHOLDERS'                  EQUITY (DEFICIT)**                                                                              |   | $ | **17,230** |   | $ | **36,545** |   |

*See          Notes to Financial Statements*

----

**NANODYNAMICS      HOLDINGS, INC.**

**(FORMERLY      MYSTICA CANDLE, CORP.)**

**(A      Development Stage Company)**

**Statements      of Operations (Unaudited) **

----

|                                                           |   |                             |      |                             |   | **June 24, 2005**      |   |
|----------------------------------------------------------------|--------|----------------------------------|-----------|----------------------------------|--------|----------------------------------|--------|
|                                                           |   | **Three Months **      |      | **Three Months **      |   | **(inception) **            |   |
|                                                           |   | **Ended **                  |      | **Ended **                  |   | **through **                |   |
|                                                           |   | **September 30, 2008** |      | **September 30, 2007** |   | **September 30, 2008** |   |
|                                                           |   |                             |      |                             |   |                             |   |
| **Revenues**                                                   |   |                             |      |                             |   |                             |   |   |   |   |
|                                                           |   |                             |      |                             |   |                             |   |   |   |   |
| Revenues                                                       |   | $                                | -         |                             | $      | -                                |   | $ | 2,278 |   |
|                                                           |   |                             |      |                             |   |                             |   |   |   |   |
| **Total                Revenues**                              |   |                             | -         |                             |   | -                                |   |   | 2,278 |   |
|                                                           |   |                             |      |                             |   |                             |   |   |   |   |
| **Cost                of Goods Sold**                          |   |                             |      |                             |   |                             |   |   |   |   |
| Purchases                                                      |   |                             | -         |                             |   | -                                |   |   | 1,182 |   |
| **Total                Costs Goods Sold**                      |   |                             | -         |                             |   | -                                |   |   | 1,182 |   |
|                                                           |   |                             |      |                             |   |                             |   |   |   |   |
| **Gross                Profit**                                |   |                             | -         |                             |   | -                                |   |   | 1,096 |   |
|                                                           |   |                             |      |                             |   |                             |   |   |   |   |
| **Operating                Expenses**                          |   |                             |      |                             |   |                             |   |   |   |   |
| Write                off inventory                             |   |                             |      |                             |   |                             |   |   | 1,469 |   |
| Administrative                Expenses                         |   |                             | 3,883     |                             |   | 1,081                            |   |   | 56,775 |   |
| Professional                fees                               |   |                             | 12,277    |                             |   | 3,678                            |   |   | 84,532 |   |
|                                                           |   |                             |      |                             |   |                             |   |   |   |   |
| **Total                Operating Expenses**                    |   |                             | 16,160    |                             |   | 4,759                            |   |   | 142,776 |   |
|                                                           |   |                             |      |                             |   |                             |   |   |   |   |
| **Other                income (expenses)**                     |   |                             |      |                             |   |                             |   |   |   |   |
| Interest                income                                 |   |                             | 2         |                             |   |                             |   |   | 2 |   |
| Interest                expense                                |   |                             | (1,000    | )                                |   | -                                |   |   | (1,285 | ) |
| **Total                other expenses**                        |   |                             | (998      | )                                |   | -                                |   |   | (1,283 | ) |
|                                                           |   |                             |      |                             |   |                             |   |   |   |   |
| **Net                Income (Loss)**                           |   | $                                | (17,158   | )                                | $      | (4,759                           | )      | $ | (142,963 | ) |
|                                                           |   |                             |      |                             |   |                             |   |   |   |   |
|                                                           |   |                             |      |                             |   |                             |   |   |   |   |
| **Basic                and diluted earnings (loss) per share** |   | $                                | (0.00     | )                                | $      | (0.00                            | )      |   |   |   |
|                                                           |   |                             |      |                             |   |                             |   |   |   |   |
| **Weighted                average number of**                  |   |                             |      |                             |   |                             |   |   |   |   |
| **common                shares outstanding**                   |   |                             | 7,747,374 |                             |   | 7,747,374                        |   |   |   |   |

*See      Notes to Financial Statements*

----

**NANODYNAMICS        **
**HOLDINGS**
**, INC.**

**MYSTICA        CANDLE, CORP.**

**(A        Development Stage Company)**

**Statement        of Changes in Stockholders' Equity **

**From        June 24, 2005 (Inception) through June 30, 2008 **

----

|                                                                |   |       |               |       |   |                 |   | **Deficit**      |             |      |   |
|---------------------------------------------------------------------|--------|------------|--------------------|------------|--------|----------------------|--------|------------------|------------------|-----------|--------|
|                                                                |   | **Common** |               | **Common** |   | **Additional ** |   | **Accumulated**  |             |      |   |
|                                                                |   | **Stock**  |               | **Stock**  |   | **Paid-in**          |   | **During ** |             | **Total** |   |
|                                                                |   |       |               | **Amount** |   | **Capital**          |   | **Development**  |             |      |   |
|                                                                |   |       |               |       |   |                 |   | **Stage**        |             |      |   |
|                                                                |   |       |               |       |   |                 |   |             |             |      |   |
| **Balance,                    June 24, 2005**                       |   |       | **-**              |       | **$**  | **-**                |   | **$**            | **-**            |      |   | **-** |   | **$** | **-** |   |
|                                                                |   |       |               |       |   |                 |   |             |             |      |   |   |   |   |   |   |
| Stock                    issued for cash on June 24, 2005           |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| @                    $0.00165 per share                             |   |       | 2,273,685          |       |   | 2,274                |   |             | 1,476            |      |   |   |   |   | 3,750 |   |
|                                                                |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| Stock                    issued for cash on June 24, 2005           |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| @                    $0.00165 per share                             |   |       | 2,273,685          |       |   | 2,274                |   |             | 1,476            |      |   |   |   |   | 3,750 |   |
|                                                                |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| Net                    loss, June 30, 2005                          |   |       |     |       |   |            |   |             |        |      |   |                       |   |   | - |   |
|                                                                |   |       |               |       |   |                 |   |             |             |      |   |   |   |   |   |   |
|                      **Balance, June 30, 2005**                |   |       | **4,547,371**      |       |   | **4,548**            |   |             | **2,952**        |      |   | **-** |   |   | **7,500** |   |
|                                                                |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| Stock                    issued for cash on March 14, 2006          |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| @                    $0.01649 per share                             |   |       | 3,031,581          |       |   | 3,031                |   |             | 46,969           |      |   |   |   |   | 50,000 |   |
|                                                                |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| Net                    loss, June 30, 2006                          |   |       |     |       |   |            |   |             |        |      |   | (14,068 | ) |   | (14,068 | ) |
|                                                                |   |       |               |       |   |                 |   |             |             |      |   |   |   |   |   |   |
|                      **Balance, June 30, 2006**                |   |       | **7,578,952**      |       |   | **7,579**            |   |             | **49,921**       |      |   | **(14,068** | **)** |   | **43,432** |   |
|                                                                |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| Net                    loss, June 30, 2007                          |   |       |          |       |   |            |   |             | **  ** |      |   | (16,081 | ) |   | (16,081 | ) |
|                                                                |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| **Balance,                    June 30, 2007**                       |   |       | **7,578,952**      |       |   | **7,579**            |   |             | **49,921**       |      |   | **(30,149** | **)** |   | **27,351** |   |
|                                                                |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| Stock                    issued for cash on February 7, 2008        |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| @                    $0.29687 per share                             |   |       | 168,422            |       |   | 168                  |   |             | 49,832           |      |   |   |   |   | 50,000 |   |
|                                                                |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| Net                    loss, June 30, 2008                          |   |       |          |       |   |            |   |             | **  ** |      |   | (95,656 | ) |   | (95,656 | ) |
|                                                                |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| **Balance,                    June 30, 2008**                       |   |       | **7,747,374**      |       | **$**  | **7,747**            |   | **$**            | **99,753**       |      |   | **(125,805** | **)** |   | **(18,305** | **)** |
|                                                                |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| Net                    loss September 30, 2008                      |   |       |          |       |   |                 |   |             | ** **       |      |   | (17,158 | ) |   | (17,158 | ) |
|                                                                |   |       |                    |       |   |                      |   |             |                  |      |   |   |   |   |   |   |
| **Balance,                    September, 30, 2008-****(unaudited)** |   |       | **7,747,374**      |       | **$**  | **7,747**            |   | **$**            | **99,753**       |      |   | **(142,963** | **)** |   | **(35,463** | **)** |

*See        Notes to Financial Statements*

----

**NANODYNAMICS        **
**HOLDINGS**
**,        INC.**

**(FORMERLY        MYSTICA CANDLE, CORP.)**

**(A        Development Stage Company)**

**Statement        of Cash Flows**
**        (unaudited) **

----

|                                                                                        |   |                              |                                     |                             |   | **June 24, 2005**        |   |
|---------------------------------------------------------------------------------------------|--------|----------------------------------------|------------------------------------------|----------------------------------|--------|------------------------------------|--------|
|                                                                                        |   |  **Three Months **      |                                     | **Three Months **      |   | **(inception) **              |   |
|                                                                                        |   |  **Ended **                  |                                     | **Ended **                  |   | **through **                  |   |
|                                                                                        |   |  **September 30, 2008** |                                     | **September 30, 2007** |   | **September 30, 2008**   |   |
|                                                                                        |   |                              |                                     |                             |   |                               |   |
| **CASH                  FLOWS FROM OPERATING ACTIVITIES**                                   |   |                                   |                                     |                             |   |                               |   |   |   |   |
|                                                                                        |   |                                   |                                     |                             |   |                               |   |   |   |   |
| Net                  income (loss)                                                          |   | $                                      | (17,158                                  | )                                | $      | (4,759                             | )      | $ | (142,963 | ) |
| Adjustments                  to reconcile net loss to net cash                              |   |                                   |                                     |                             |   |                               |   |   |   |   |
| provided                  by (used in) operating activities:                                |   |                                   |                                     |                             |   |                               |   |   |   |   |
| Depreciation                                                                                |   |                                   | 975                                      |                             |   | 975                                |   |   | 8,730 |   |
| Write                  off inventory                                                        |   |                                   |                                     |                             |   | -                                  |   |   | 1,469 |   |
| Changes                  in operating assets and liabilities:                               |   |                                   |                                     |                             |   |                               |   |   |   |   |
| Decrease                  (increase) in inventory                                           |   |                                   | -                                        |                             |   | -                                  |   |   | (1,469 | ) |
| Increase                  in (decrease) in accounts payable                                 |   |                                   | (3,157                                   | )                                |   | 3,678                              |   |   | 1,408 |   |
| Increase                  in accrued expenses                                               |   |                                   | 1,000                                    |                             |   |                               |   |   | 1,285 |   |
| ***Net                  cash provided by (used in) operating                  activities*** |   |                                   | **(18,340**                              | **)**                            |   | **(106**                           | **)**  |   | **(131,540** | **)** |
|                                                                                        |   |                                   |                                     |                             |   |                               |   |   |   |   |
| **CASH                  FLOWS FROM INVESTING ACTIVITIES**                                   |   |                                   |                                     |                             |   |                               |   |   |   |   |
|                                                                                        |   |                                   |                                     |                             |   |                               |   |   |   |   |
| Acquisition                  of equipment                                                   |   |                                   |                                     |                             |   |                               |   |   | (9,500 | ) |
| Increase                  in leasehold improvement                                          |   |                                   |                      |                             |   |                     |   |   | (10,000 | ) |
| ***Net                  cash provided by (used in) investing                  activities*** |   |                                   | **-**                                    |                             |   | **-**                              |   |   | **(19,500** | **)** |
|                                                                                        |   |                                   |                                     |                             |   |                               |   |   |   |   |
| **CASH                  FLOWS FROM FINANCING ACTIVITIES**                                   |   |                                   |                                     |                             |   |                               |   |   |   |   |
|                                                                                        |   |                                   |                                     |                             |   |                               |   |   |   |   |
| Increase                  in loan payable                                                   |   |                                   |                                     |                             |   |                               |   |   | 50,000 |   |
| Proceeds                  from issuance of common stock                                     |   |                                   | -                                        |                             |   | -                                  |   |   | 107,500 |   |
| ***Net                  cash provided by (used in) financing                  activities*** |   |                                   | **-**                                    |                             |   | **-**                              |   |   | **157,500** |   |
|                                                                                        |   |                                   |                                     |                             |   |                               |   |   |   |   |
| ***Net                  increase (decrease) in cash***                                      |   |                                   | **(18,340**                              | **)**                            |   | **(106**                           | **)**  |   | **6,460** |   |
|                                                                                        |   |                                   |                                     |                             |   |                               |   |   |   |   |
| ***Cash                  at beginning of period***                                          |   |                                   | 24,800                                   |                             |   | 10,237                             |   |   | **-** |   |
| ***Cash                  at end of period***                                                |   | $                                      | **6,460**                                |                             | $      | **10,131**                         |   | $ | **6,460** |   |
|                                                                                        |   |                                   |                                     |                             |   |                               |   |   |   |   |
| **SUPPLEMENTAL                  DISCLOSURES OF CASH FLOW INFORMATION**                      |   |                                   |                                     |                             |   |                               |   |   |   |   |
|                                                                                        |   |                                   |                                     |                             |   |                               |   |   |   |   |
| Cash                  paid during year for :                                                |   |                                   |                                     |                             |   |                               |   |   |   |   |
|                                                                                        |   |                                   |                                     |                             |   |                               |   |   |   |   |
| Interest                                                                                    |   | $                                      | -                                        |                             | $      | -                                  |   | $ | - |   |
|                                                                                        |   |                                   |                                     |                             |   |                               |   |   |   |   |
| Income                  Taxes                                                               |   | $                                      | -                                        |                             | $      | -                                  |   | $ | - |   |

*See        Notes to Financial Statements*

----

**NANODYNAMICS      HOLDINGS, INC.**

**(A      Development Stage Company)**

**Notes      to Financial Statements**

**September      30, 2008**

**NOTE      1.   ORGANIZATION AND DESCRIPTION OF BUSINESS**

**NOTE      2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**a.      **
**Basis      of Accounting**

**b.      **
**Cash      Equivalents**
** **

----

**NANODYNAMICS        HOLDINGS, INC.**

**(A        Development Stage Company)**

**Notes        to Financial Statements**

**September        30, 2008**

**NOTE      2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**

**c.      **
**Inventory**
** **

**d.      **
**Property      and Equipment**

**e.      **
**Revenue      Recognition**

**f.      **
**Income      Taxes**

**g.      **
**Basic      Earnings per Share**
** **

----

**NANODYNAMICS        HOLDINGS, INC.**

**(A        Development Stage Company)**

**Notes        to Financial Statements**

**September        30, 2008**

**NOTE      2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**

**h.      **
**Use      of Estimates and Assumptions**

**i.      **
**Recent      Accounting Pronouncements**

*Accounting      for Financial Guarantee Insurance Contracts – An interpretation of FASB      Statement No. 60*

*Hierarchy      of Generally Accepted Accounting Principles*
*The      Meaning of Present Fairly in Conformity With Generally Accepted Accounting      Principles*

*Disclosures about Derivative Instruments      and Hedging Activities – an amendment to FASB Statement No. 133”*

----

**NANODYNAMICS        HOLDINGS, INC.**

**(A        Development Stage Company)**

**Notes        to Financial Statements**

**September        30, 2008**

**NOTE      2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)**

*“Business      Combinations*

*Non-controlling      Interests in Consolidated Financial Statements Liabilities –an Amendment of ARB      No. 51*

----

**NANODYNAMICS        HOLDINGS, INC.**

**(A        Development Stage Company)**

**Notes        to Financial Statements**

**September        30, 2008**

**NOTE      3. GOING CONCERN**

**NOTE      4. WARRANTS AND OPTIONS**

**NOTE      5. PROPERTY AND EQUIPMENT**

|                                                |   | **Sept. 30, 2008 ** |   | **Sept. 30, 2007** |   |
|-----------------------------------------------------|--------|------------------------------------|--------|------------------------------|--------|
|                                                |   |                               |   |                         |   |
| Equipment                                           |   | $                                  | 19,500 |                         | $      | 19,500 |   |
|                                                |   |                               |   |                         |   |   |   |
| Total                Fixed Assets                   |   |                               | 19,500 |                         |   | 19,500 |   |
|                                                |   |                               |   |                         |   |   |   |
| ***Less:                Accumulated Depreciation*** |   |                               | (8,730 | )                            |   | (7,755 | ) |
|                                                |   |                               |   |                         |   |   |   |
| Net                Fixed Assets                     |   | $                                  | 10,770 |                         | $      | 11,745 |   |

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**NANODYNAMICS        HOLDINGS, INC.**

**(A        Development Stage Company)**

**Notes        to Financial Statements**

**September        30, 2008**

**NOTE      6. RELATED PARTY TRANSACTION**

**NOTE      7. NET OPERATING LOSSES**

***NOTE      8. INCOME TAXES***

|                                            |   | **As of Sept 30,****2008** |    | **As of Sept 30,****2007** |   |
|-------------------------------------------------|--------|-------------------------------------------|---------|-------------------------------------------|--------|
|                                            |   |                                      |    |                                      |   |
| Deferred                tax assets:             |   |                                      |    |                                      |   |   |   |
| Net                operating tax carry-forwards |   | $                                         | 21,444  |                                      | $      | 18,871 |   |
| Other                                           |   |                                      | -0-     |                                      |   |   |   |
| Gross                deferred tax assets        |   |                                      |         |                                      |   |   |   |
| Valuation                allowance              |   |                                      | (21,444 | )                                         |   | (18,871 | ) |
|                                            |   |                                      |    |                                      |   |   |   |
| Net                deferred tax assets          |   | $                                         | -0-     |                                      | $      | -0- |   |

**NOTE      9. STOCK TRANSACTIONS**

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**NANODYNAMICS        HOLDINGS, INC.**

**(A        Development Stage Company)**

**Notes        to Financial Statements**

**September        30, 2008**

**NOTE      9. STOCK TRANSACTIONS (Continued)**

**NOTE      10. STOCKHOLDERS’ EQUITY**

**NOTE      11. LOANS PAYABLE**

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**Item      2. Management’s Discussion and Analysis or Plan of      Operation**

*Plan      of Operation*

*Results      of Operations*

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*Liquidity      and Capital Resources*

*Off-Balance      Sheet Arrangements*

**Item      4T. Controls and Procedures**

*Evaluation      of Disclosure Controls and Procedures*

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**PART      II – OTHER INFORMATION**

**Item      6. Exhibits**

| Exhibit                No. |   | Description                                                                                                                                                                                                                                           |
|----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 31.1                       |   | Certification                of Principal Executive Officer and Principal Financial Officer, pursuant                to SEC Rules 13a-14(a) and 15d-14(a), adopted pursuant to                Section 302 of the Sarbanes-Oxley Act of 2002 |
| 32.1                       |   | Certification                of Chief Executive Officer and Chief Financial Officer, pursuant                to 18                U.S.C. Section 1350, adopted pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002*    |

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**SIGNATURES**

| Date:                November 14, 2008 | NANODYNAMICS                HOLDINGS, INC. |
|----------------------------------------|--------------------------------------------|
|                                   |                                       |
|                                   |                                       |
|                                   | By:                                        | /s/                David Rector |
|                                   |                                       | Name: | David                Rector |
|                                   |                                       | Title: | Principal                Executive Officer and Principal Financial                Officer |

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