----

----

**UNITED      STATES **

**SECURITIES      AND EXCHANGE COMMISSION **

**FORM      10-QSB/A **

**[X]      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE      ACT      OF 1934 **

**[_]      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE      ACT OF 1934 **

*Commission      File No. 33-16531-D*

**INTERNATIONAL      AUTOMATED SYSTEMS, INC. **

| Utah                                                                          | 87-0447580                                             |
|-------------------------------------------------------------------------------|--------------------------------------------------------|
| (State                or other jurisdiction of incorporation or organization) | (I.R.S.                Employer Identification Number) |
|                                                                          |                                                   |
| 326                North Sr. 198 ,                                            |                                                   |
| Salem,                Utah                                                    | 84653                                                  |
| (Address                of principal executive offices)                       | (Zip/Postal                Code)                       |

| Yes | X | No |   |
|-----|---|----|--------|

| Yes | X | No |   |
|-----|---|----|--------|

**EXPLANATORY      NOTE:**

----

| PART                I. | FINANCIAL                INFORMATION                                                                                                                                                                                                                             | 3      |
|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                   |                                                                                                                                                                                                                                                             |   |
| Item                1  | Financial                Statements                                                                                                                                                                                                                              | 3      |
|                   |                                                                                                                                                                                                                                                             |   |
|                   | Unaudited                Condensed Balance Sheets as of March 31, 2005 and June 30, 2004                                                                                                                                                                    | 3      |
|                   |                                                                                                                                                                                                                                                             |   |
|                   | Unaudited                Condensed Statements of Operations for the Three and Nine Months                Ended March 31, 2005 and 2004, and for the Period from September                26, 1986                (Date of Inception) through March 31, 2005 | 4      |
|                   |                                                                                                                                                                                                                                                             |   |
|                   | Unaudited                Condensed Statements of Cashflow for Nine Months Ended March 31,                2005 and                2004 and for the Period from September 26, 1986 (Date of Inception)                through March 31, 2005                  | 5      |
|                   |                                                                                                                                                                                                                                                             |   |
|                   | Notes                to Financial Statements                                                                                                                                                                                                                     | 6      |
|                   |                                                                                                                                                                                                                                                             |   |
| Item                2  | Management's                Discussion and Analysis or Plan of Operation                                                                                                                                                                                         | 8      |
|                   |                                                                                                                                                                                                                                                             |   |
| Item                3  | Controls                and Procedures                                                                                                                                                                                                                           | 10     |
|                   |                                                                                                                                                                                                                                                             |   |
| PART                II | OTHER                INFORMATION                                                                                                                                                                                                                                 | 10     |
|                   |                                                                                                                                                                                                                                                             |   |
| Item                1  | Legal                Proceedings                                                                                                                                                                                                                                 | 10     |
|                   |                                                                                                                                                                                                                                                             |   |
| Item                2  | Changes                in Securities                                                                                                                                                                                                                             | 10     |
|                   |                                                                                                                                                                                                                                                             |   |
| Item                3  | Defaults                Upon Senior Securities                                                                                                                                                                                                                   | 11     |
|                   |                                                                                                                                                                                                                                                             |   |
| Item                4  | Submission                of Matters to a Vote of Security Holders                                                                                                                                                                                               | 11     |
|                   |                                                                                                                                                                                                                                                             |   |
| Item                5  | Other                Information                                                                                                                                                                                                                                 | 11     |
|                   |                                                                                                                                                                                                                                                             |   |
| Item                6  | Exhibits                and Reports on Form 8-K                                                                                                                                                                                                                  | 11     |
|                   |                                                                                                                                                                                                                                                             |   |
| Signatures             |                                                                                                                                                                                                                                                             | 11     |

----

**PART      I**

**Item      1 Financial Statements**

**INTERNATIONAL      AUTOMATED SYSTEMS, INC.**

***(A      Development Stage Company)***

**UNAUDITED      CONDENSED BALANCE SHEETS**

|                                                                                                                                                                                                                                            |   | **March                31,** |        | **June                30,** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|-------------|-----------------------------|--------|
|                                                                                                                                                                                                                                            |   | **2005**                     |        | **2004**                    |   |
| **ASSETS**                                                                                                                                                                                                                                      |   |                         |        |                        |   |
| **Current                Assets**                                                                                                                                                                                                               |   |                         |        |                        |   |
| Cash                                                                                                                                                                                                                                            |   | $                            | 57,087      |                        | $      | 702,366 |   |
| Equipment                held for distribution                                                                                                                                                                                                  |   |                         | -           |                        |   | 16,945 |   |
| **Total                Current Assets**                                                                                                                                                                                                         |   |                         | 57,087      |                        |   | 719,311 |   |
| Property                and Equipment, net of $82,177 and $70,845 accumulated                depreciation,respectively                                                                                                                          |   |                         | 86,896      |                        |   | 81,932 |   |
| Patents,                net of $6,999 and $4,494 accumulated amortization,                respectively                                                                                                                                          |   |                         | 162,580     |                        |   | 120,291 |   |
| Prepaid                sales commissions                                                                                                                                                                                                        |   |                         | 4,000       |                        |   | 4,000 |   |
| **Total                Assets**                                                                                                                                                                                                                 |   | $                            | 310,563     |                        | $      | 925,534 |   |
|                                                                                                                                                                                                                                            |   |                         |             |                        |   |  |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY (DEFICIT)**                                                                                                                                                                               |   |                         |             |                        |   |  |   |
| **Current                Liabilities**                                                                                                                                                                                                          |   |                         |             |                        |   |  |   |
| Accounts                payable                                                                                                                                                                                                                 |   | $                            | 75,277      |                        | $      | 92,460 |   |
| Accrued                payroll taxes                                                                                                                                                                                                            |   |                         | 154,830     |                        |   | 156,772 |   |
| Accrued                liabilities                                                                                                                                                                                                              |   |                         | 100,000     |                        |   | 130,000 |   |
| Deposits                from customers                                                                                                                                                                                                          |   |                         | 40,000      |                        |   | 40,000 |   |
| Deposits                from related parties                                                                                                                                                                                                    |   |                         | 74,400      |                        |   | 74,400 |   |
| Notes                payable-current portion                                                                                                                                                                                                    |   |                         | 3,885       |                        |   | 5,588 |   |
| **Total                Current Liabilities**                                                                                                                                                                                                    |   |                         | 448,392     |                        |   | 499,220 |   |
|                                                                                                                                                                                                                                            |   |                         |        |                        |   |   |   |
| **Net                Long-Term Liabilities -**Notes                payable                                                                                                                                                                      |   |                         | -           |                        |   | 2,479 |   |
|                                                                                                                                                                                                                                            |   |                         |        |                        |   |   |   |
| **Total                Liabilities**                                                                                                                                                                                                            |   |                         | 448,392     |                        |   | 501,699 |   |
|                                                                                                                                                                                                                                            |   |                         |        |                        |   |   |   |
| **Stockholders'                Equity (Deficit)**                                                                                                                                                                                               |   |                         |             |                        |   |  |   |
| Preferred                stock, Class A, no par value, 4,400,000 shares authorized, 3,400,000                shares issued and outstanding                                                                                                      |   |                         | 294,786     |                        |   | 294,786 |   |
| Preferred                stock, Class B, no par value, 600,000 shares authorized,                300,000 shares issued and outstanding                                                                                                     |   |                         | -           |                        |   | - |   |
| Common                stock, no par value, 45,000,000 shares authorized, 21,725,890 and                21,032,640 issued and outstanding, net 3,240,250 and 3,801,500 shares                held                in escrow account, respectively |   |                         | 9,857,090   |                        |   | 9,601,090 |   |
| Deficit                accumulated during the development stage                                                                                                                                                                                 |   |                         | (10,289,705 | )                           |   | (9,472,041 | ) |
| **Total                Stockholders' Equity (Deficit)**                                                                                                                                                                                         |   |                         | (137,829    | )                           |   | 423,835 |   |
| **Total                Liabilities and Stockholders' Equity (Deficit)**                                                                                                                                                                         |   | $                            | 310,563     |                        | $      | 925,534 |   |

**See      the accompanying notes to the condensed financial      statements.**

----

**INTERNATIONAL      AUTOMATED SYSTEMS, INC.**

***(A      Development Stage Company)***

**UNAUDITED      CONDENSED STATEMENTS OF OPERATIONS**

|                                                             |   | For                the Three Months Ended |       | For                the Nine Months Ended |   | For                the PeriodFrom                Inception(September                26, 1986) Through |   |
|------------------------------------------------------------------|--------|-------------------------------------------|------------|------------------------------------------|--------|-------------------------------------------------------------------------------------------------------|--------|
|                                                             |   | March                31,                  |       | March                31,                 |   | March                31,                                                                              |   |
|                                                             |   | 2005                                      |       | 2004                                     |   | 2005                                                                                                  |   | 2004 |   | 2005 |   |
| **Revenue**                                                      |   |                                      |       |                                     |   |                                                                                                  |   |   |   |   |   |
| Sales                                                            |   | $                                         | -          |                                     | $      | -                                                                                                     |   | $ | - |   | $ | - |   | $ | 111,226 |   |
| Income                from related party                         |   |                                      | -          |                                     |   | -                                                                                                     |   |   | - |   |   | - |   |   | 32,348 |   |
| **Total                Revenue**                                 |   |                                      | -          |                                     |   | -                                                                                                     |   |   | - |   |   | - |   |   | 143,574 |   |
|                                                             |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| **Cost                of Sales**                                 |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| Cost                of sales                                     |   |                                      | -          |                                     |   | -                                                                                                     |   |   | - |   |   | - |   |   | 81,927 |   |
| Write                down of carrying value of inventories       |   |                                      | 16,945     |                                     |   | -                                                                                                     |   |   | 16,945 |   |   | - |   |   | 233,131 |   |
| **Total                Cost of Sales**                           |   |                                      | 16,945     |                                     |   | -                                                                                                     |   |   | 16,945 |   |   | - |   |   | 315,058 |   |
|                                                             |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| **Gross                Loss**                                    |   |                                      | (16,945    | )                                        |   | -                                                                                                     |   |   | (16,945 | ) |   | - |   |   | (171,484 | ) |
|                                                             |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| **Operating                Expenses**                            |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| General                and administrative                        |   |                                      | 102,927    |                                     |   | 82,310                                                                                                |   |   | 420,140 |   |   | 385,592 |   |   | 6,038,990 |   |
| Research                and development expense                  |   |                                      | 134,161    |                                     |   | 76,813                                                                                                |   |   | 380,580 |   |   | 191,457 |   |   | 4,813,305 |   |
| Impairment                of patents                             |   |                                      | -          |                                     |   | -                                                                                                     |   |   | - |   |   | - |   |   | 110,082 |   |
| Litigation                settlement expense                     |   |                                      | -          |                                     |   | 100,000                                                                                               |   |   | - |   |   | 100,000 |   |   | 270,634 |   |
| **Total                Operating Expenses**                      |   |                                      | 237,088    |                                     |   | 259,123                                                                                               |   |   | 800,720 |   |   | 677,049 |   |   | 11,233,011 |   |
|                                                             |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| **Operating                Loss**                                |   |                                      | (254,033   | )                                        |   | (259,123                                                                                              | )      |   | (817,665 | ) |   | (677,049 | ) |   | (11,404,495 | ) |
|                                                             |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| **Other                Income and (Expenses)**                   |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| Loss                on disposal of property and equipment        |   |                                      | -          |                                     |   | -                                                                                                     |   |   | - |   |   | - |   |   | (17,359 | ) |
| Forfeiture                of deposits                            |   |                                      | -          |                                     |   | -                                                                                                     |   |   | - |   |   | - |   |   | (236,803 | ) |
| Interest                income                                   |   |                                      | -          |                                     |   | -                                                                                                     |   |   | - |   |   | - |   |   | 22,444 |   |
| Interest                expense                                  |   |                                      | -          |                                     |   | -                                                                                                     |   |   | - |   |   | - |   |   | (35,515 | ) |
| Net                Other Income and (Expense)                    |   |                                      | -          |                                     |   | -                                                                                                     |   |   | - |   |   | - |   |   | (267,233 | ) |
|                                                             |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| **Loss                Before Extraordinary Gain**                |   |                                      | (254,033   | )                                        |   | (259,123                                                                                              | )      |   | (817,665 | ) |   | (677,049 | ) |   | (11,671,728 | ) |
|                                                             |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| **Extraordinary                Gain on Sale of Patents**         |   |                                      | -          |                                     |   | 1,414,070                                                                                             |   |   | - |   |   | 1,414,070 |   |   | 1,382,023 |   |
|                                                             |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| **Net                Income (Loss)**                             |   | $                                         | (254,033   | )                                        | $      | 1,154,947                                                                                             |   | $ | (817,665 | ) | $ | 737,021 |   | $ | (10,289,705 | ) |
|                                                             |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| **Basic                and Diluted Loss Per Share**              |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| Loss                before extraordinary gain                    |   | $                                         | (0.01      | )                                        | $      | (0.01                                                                                                 | )      | $ | (0.04 | ) | $ | (0.03 | ) |   |  |   |
| Extraordinary                gain                                |   |                                      | -          |                                     |   | 0.06                                                                                                  |   |   | - |   |   | 0.06 |   |   |  |   |
| **Net                Income (Loss)**                             |   | $                                         | (0.01      | )                                        | $      | 0.05                                                                                                  |   | $ | (0.04 | ) | $ | 0.03 |   |   |  |   |
|                                                             |   |                                      |            |                                     |   |                                                                                                       |   |   |  |   |   |  |   |   |  |   |
| **Weighted                Shares Used in Per Share Calculation** |   | $                                         | 21,241,974 |                                     |   | 24,559,298                                                                                            |   | $ | 21,073,092 |   |   | 24,403,671 |   |   |  |   |

**See      the accompanying notes to the condensed financial      statements.**

----

**INTERNATIONAL      AUTOMATED SYSTEMS, INC.**

***(A      Development Stage Company)***

**UNAUDITED      CONDENSED STATEMENTS OF CASHFLOW**

|                                                                                                                                |   | **For                the Nine Months Ended** |     | **For                the Period From Inception (September 26, 1986)                Through** |   |
|-------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------|----------|----------------------------------------------------------------------------------------------|--------|
|                                                                                                                                |   | **March                31,**                 |     | **March                31,**                                                                 |   |
|                                                                                                                                |   | **2005**                                     |     | **2004**                                                                                     |   | **2005** |   |
| **Cash                Flows From Operating Activities**                                                                             |   |                                         |     |                                                                                         |   |   |   |
| Net                loss                                                                                                             |   | $                                            | (817,665 | )                                                                                            | $      | 737,021 |   | $ | (10,289,705 | ) |
| Adjustments                to reconcile net loss to net cash from operating                activities:                              |   |                                         |          |                                                                                         |   |  |   |   |  |   |
| Depreciation                and amortization                                                                                        |   |                                         | 13,837   |                                                                                         |   | 8,661 |   |   | 329,290 |   |
| Stock                based compensation                                                                                             |   |                                         | -        |                                                                                         |   | - |   |   | 2,221,407 |   |
| Forfeiture                of deposits                                                                                               |   |                                         | -        |                                                                                         |   | - |   |   | 236,803 |   |
| Gain                on sale of patents                                                                                              |   |                                         | -        |                                                                                         |   | (1,414,070 | ) |   | (1,382,023 | ) |
| Loss                on disposal of fixed assets                                                                                     |   |                                         | -        |                                                                                         |   | - |   |   | 17,359 |   |
| Write                down of carrying value of inventories                                                                          |   |                                         | 16,945   |                                                                                         |   | - |   |   | 16,945 |   |
| Impairment                of patents and abandonment of in-process rights to                technology                              |   |                                         | -        |                                                                                         |   | - |   |   | 356,632 |   |
| Changes                in current assets and liabilities:                                                                           |   |                                         |          |                                                                                         |   |  |   |   |  |   |
| Prepaid                sales commissions                                                                                            |   |                                         | -        |                                                                                         |   | (13,000 | ) |   | (4,000 | ) |
| Accounts                payable                                                                                                     |   |                                         | (17,182  | )                                                                                            |   | (20,811 | ) |   | 75,276 |   |
| Deposits                from customers                                                                                              |   |                                         | -        |                                                                                         |   | 130,000 |   |   | 40,000 |   |
| Accrued                liabilities                                                                                                  |   |                                         | (31,942  | )                                                                                            |   | (86,660 | ) |   | 254,830 |   |
| **Net                Cash From Operating Activities**                                                                               |   |                                         | (836,007 | )                                                                                            |   | (658,859 | ) |   | (8,127,186 | ) |
| **Cash                Flows From Investing Activities**                                                                             |   |                                         |          |                                                                                         |   |  |   |   |  |   |
| Purchases                of property and equipment                                                                                  |   |                                         | (16,296  | )                                                                                            |   | - |   |   | (326,372 | ) |
| Purchase                of rights to technology                                                                                     |   |                                         | (44,794  | )                                                                                            |   | (19,388 | ) |   | (611,666 | ) |
| Organization                costs                                                                                                   |   |                                         | -        |                                                                                         |   | - |   |   | (1,880 | ) |
| Net                cash advanced to related party                                                                                   |   |                                         | -        |                                                                                         |   | - |   |   | (1,644,988 | ) |
| Proceeds                from capital lease receivable                                                                               |   |                                         | -        |                                                                                         |   | - |   |   | 44,220 |   |
| Repayment                of cash loaned to related party                                                                            |   |                                         | -        |                                                                                         |   | - |   |   | 53,254 |   |
| Net                proceeds from sale of patents                                                                                    |   |                                         | -        |                                                                                         |   | 1,414,070 |   |   | 1,382,023 |   |
| **Net                Cash From Investing Activities**                                                                               |   |                                         | (61,090  | )                                                                                            |   | 1,394,682 |   |   | (1,105,409 | ) |
| **Cash                Flows From Financing Activities**                                                                             |   |                                         |          |                                                                                         |   |  |   |   |  |   |
| Proceeds                from issuance of common stock                                                                               |   |                                         | 256,000  |                                                                                         |   | 278,871 |   |   | 2,955,199 |   |
| Cash                from controlling shareholder                                                                                    |   |                                         | -        |                                                                                         |   | - |   |   | 6,270,559 |   |
| Payments                for treasury stock                                                                                          |   |                                         | -        |                                                                                         |   | - |   |   | (3,325 | ) |
| Payments                for stock offering costs                                                                                    |   |                                         | -        |                                                                                         |   | - |   |   | (56,509 | ) |
| Decrease                (increase) in bank overdraft                                                                                |   |                                         | -        |                                                                                         |   | (28,441 | ) |   | - |   |
| Proceeds                from net borrowings from related party                                                                      |   |                                         | -        |                                                                                         |   | - |   |   | 78,101 |   |
| Proceeds                from notes payable                                                                                          |   |                                         | -        |                                                                                         |   | - |   |   | 29,857 |   |
| Payments                on note payable and obligations under capital lease                                                         |   |                                         | (4,182   | )                                                                                            |   | (19,879 | ) |   | (139,859 | ) |
| Proceeds                from related party deposits                                                                                 |   |                                         | -        |                                                                                         |   | - |   |   | 224,400 |   |
| Purchases                of equipment held for distribution                                                                         |   |                                         | -        |                                                                                         |   | (19,948 | ) |   | (68,741 | ) |
| **Net                Cash From Financing Activities**                                                                               |   |                                         | 251,818  |                                                                                         |   | 210,603 |   |   | 9,289,682 |   |
| **Net                Increase (Decrease) In Cash and Cash Equivalents**                                                             |   |                                         | (645,279 | )                                                                                            |   | 946,426 |   |   | 57,087 |   |
| **Cash                and Cash Equivalents at Beginning of Period**                                                                 |   |                                         | 702,366  |                                                                                         |   | 54,034 |   |   | - |   |
| **Cash                and Cash Equivalents at End of Period**                                                                       |   | $                                            | 57,087   |                                                                                         | $      | 1,000,460 |   | $ | 57,087 |   |
| **Supplemental                Cash Flow Information**                                                                               |   |                                         |          |                                                                                         |   |  |   |   |  |   |
| Cash                paid for interest                                                                                               |   | $                                            | -        |                                                                                         | $      | - |   |   |  |   |
| **Non-Cash                Investing and Financing Activities**                                                                      |   |                                         |          |                                                                                         |   |  |   |   |  |   |
| Convert                equipment held for distribution and deposits from related parties to                contributed capital |   | $                                            | -        |                                                                                         | $      | 98,204 |   |   |  |   |

**See      the accompanying notes to the condensed financial      statements.**

----

**INTERNATIONAL      AUTOMATED SYSTEMS, INC.**

**NOTES      TO UNAUDITED CONDENSED FINANCIAL STATEMENTS**

**MARCH      31, 2005**

**NOTE      1-INTERIM FINANCIAL STATEMENTS **

**NOTE      2-BUSINESS CONDITION**

**NOTE      3-STOCK BASED COMPENSATION**

----

|                                                                                                                                               |   | **Three                Months Ended March 31,** |       | **Nine                Months Ended March 31,** |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|------------|------------------------------------------------|--------|
|                                                                                                                                               |   | **2005**                                        |       | **2004**                                       |   | **2005** |   | **2004** |   |
| Net                loss, as reported                                                                                                               |   | $                                               | (254,033   | )                                              | $      | 1,154,947 |   | $ | (817,665 | ) | $ | 737,021 |   |
| Deduct:                Total stock-based employee compensation expense determined under                fair-value based method for all awards |   |                                            | (2,006,815 | )                                              |   | (54,328 | ) |   | (7,574,190 | ) |   | (175,184 | ) |
| **Pro                forma net loss**                                                                                                              |   | $                                               | (2,260,848 | )                                              | $      | 1,100,619 |   | $ | (8,391,855 | ) | $ | 561,837 |   |
|                                                                                                                                               |   |                                            |            |                                           |   |  |   |   |  |   |   |  |   |
| **Basic                and diluted loss per common share as reported**                                                                             |   | $                                               | (0.01      | )                                              | $      | 0.05 |   | $ | (0.04 | ) | $ | 0.03 |   |
|                                                                                                                                               |   |                                            |            |                                           |   |  |   |   |  |   |   |  |   |
| **Basic                and diluted loss per common share pro forma**                                                                               |   | $                                               | (0.11      | )                                              | $      | 0.04 |   | $ | (0.40 | ) | $ | 0.02 |   |

**NOTE      4-CONTINGENCIES AND COMMITMENTS**

***Legal      Contingencies***

***Payroll      Tax Contingency***

**NOTE      5-STOCKHOLDERS EQUITY**

***Common      Stock Issued for Cash***
*accounts*

----

**ITEM      2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF      OPERATION**

**FORWARD      LOOKING STATEMENTS**

**LIQUIDITY      AND CAPITAL RESOURCES**

| Payments                Due By Period  |
|----------------------------------------|
| Contractual                Obligations | Total | Less                ThanOne                Year | One                To ThreeYear |
| Long-term                debt          | $                3,885 | $3,885 | 0 |

----

**RESULTS      OF OPERATIONS**

**FUTURE      BUSINESS**

----

**ITEM      3: CONTROLS AND PROCEDURES**

**PART      II - OTHER INFORMATION**

**ITEM      1. LEGAL PROCEEDINGS**

**ITEM      2. CHANGES IN SECURITIES**

----

**ITEM      3. DEFAULTS UPON SENIOR SECURITIES.**

**ITEM      4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS**

**ITEM      5. OTHER INFORMATION.**

**ITEM      6. EXHIBITS AND REPORTS ON FORM 8-K**

|   | 31.1 | Certification                  by the Chief Executive Officer Pursuant to Section 302 of the                  Sarbanes-Oxley Act of 2002 |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification                    by the Chief Financial Officer Pursuant to Section 302 of the                    Sarbanes-Oxley Act of 2002 |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification                    by the Chief Executive Officer Pursuant to 18 U.S.C. Section                    1350 Adopted                    Pursuant to Section 906 of the Sarbanes-Oxley Act of                    2002 |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification                  by the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350                  Adopted                  Pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002 |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**SIGNATURES**

*/s/      Neldon      Johnson                                   *

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