SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   ----------

                                   FORM 10-QSB

  Quarterly Report of Small Business Issuers under Section 13 or 15(d) of the
  Securities Exchange Act of 1934 for the quarterly period ended June 30, 2005

                          Commission File No. 333-45210

                       SYSTEMS MANAGEMENT SOLUTIONS, INC.
                 (Name of Small Business Issuer in Its Charter)

                                   ----------

            Nevada                                         88-046047
(State or other jurisdiction of                (IRS Employer Identification No.)
       incorporation)

       7550 IH-10 West, 14th Floor                          78229
           San Antonio, Texas
(Address of Principal Executive Offices)                  (Zip Code)

         Issuer's telephone number, including area code: (210) 541-7133

                                   ----------

      The issuer has (1) filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the past 12 months (or for such shorter period
that the registrant was required to file such reports), and (2) been subject to
such filing requirements for the past 90 days.

 Number of shares outstanding of each of the issuer's classes of common equity:

              Class                          Outstanding as of August 15,2005
              -----                          -----------------------------------
 Common stock, $0.0001 par value                          20,640,386

      The issuer is not using the Transitional Small Business Disclosure format.


<PAGE>


                                TABLE OF CONTENTS

                                                                        Page
                                                                        ----



PART I.   FINANCIAL INFORMATION............................................1



ITEM 1.   CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)....................1


ITEM 2.   MANAGEMENT'S PLAN OF OPERATIONS..................................4


ITEM 3.   CONTROLS AND PROCEDURES..........................................5



PART II - OTHER INFORMATION................................................6



ITEM 1.   LEGAL PROCEEDINGS................................................6


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

SIGNATURES.................................................................7


                                       ii


<PAGE>


                          PART I. FINANCIAL INFORMATION


ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

                       SYSTEMS MANAGEMGENT SOLUTIONS, INC.
                           CONSOLIDATED BALANCE SHEET
                                   (unaudited)
                                  June 30, 2005


                  ASSETS

Current Assets
  Cash                                                          $          ~
  Accounts receivable                                                 80,275
  Inventory                                                          112,866
  Prepaid expenses                                                    14,081
                                                                ------------
         Total Current Assets                                        207,222

Property and equipment, net of accumulated depreciation
         of $441,677                                                 396,033
Deposits                                                               4,000
                                                                ------------
         Total Assets                                           $    607,255
                                                                ============

         LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities
  Accounts payable                                              $    624,452
  Accounts payable - related party                                    87,000
  Accrued interest and expenses                                      454,383
  Shareholder loans                                                2,605,517
                                                                ------------
         Total Current Liabilities                                 3,771,352
                                                                ------------

         STOCKHOLDERS' DEFICIT

  Preferred stock, $.0001 par value, 5,000,000 shares
    authorized, no shares issued and outstanding                           ~
    Series A Cumulative Convertible Preferred Stock,
    $.0001 par value, 60,000 shares authorized,
    no shares issued and outstanding                                       ~
    Series B Cumulative Convertible Preferred Stock,
    $.0001 par value, 50,000 shares authorized,
    no shares issued and outstanding                                       ~
  Common stock, $.0001 par value, 100,000,000 shares
    authorized, 20,640,386 shares issued and outstanding               2,064
  Additional paid in capital                                      19,373,244
  Accumulated deficit                                            (22,539,405)
                                                                ------------
         Total Stockholders' Deficit                              (3,164,097)
                                                                ------------
                  Total Liabilities and Stockholders' Deficit   $    607,255
                                                                ============


<PAGE>


                        SYSTEMS MANAGEMENT SOLUTIONS, INC
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                Three and Six Months Ended June 30, 2005 and 2004
                                   (unaudited)

<TABLE>
<CAPTION>
                                              Three Months                                Six Months
                                             Ended June 30,                             Ended June 30,

                                          2005               2004               2005               2004
                               ---------------    ---------------    ---------------    ---------------
<S>                            <C>                <C>                <C>                <C>
Revenue                        $       513,538    $         3,748    $       607,789    $        11,290

Cost of sales                          682,296             24,790            778,374             54,102
                               ---------------    ---------------    ---------------    ---------------
    Gross margin                      (168,758)           (21,042)          (170,585)           (42,812)

General and administrative             756,352            747,999          1,504,043          1,285,310
Research and development                    --            127,069                 --            127,069
                               ---------------    ---------------    ---------------    ---------------
    Total operating
       expenses                        756,352            875,068          1,504,043          1,412,379
                               ---------------    ---------------    ---------------    ---------------
    Net Operating Loss                (925,110)          (896,110)        (1,674,628)        (1,455,191)

Interest expense                       (74,056)           (70,979)          (176,950)          (229,863)
Interest income                             --                 --                 --                 --
                               ---------------    ---------------    ---------------    ---------------
 Income(Loss) from
   continuing operations              (999,166)          (967,089)        (1,851,578)        (1,685,054)

 Income(Loss) from
     discontinued operations                --          2,667,097                 --          2,621,158
                               ---------------    ---------------    ---------------    ---------------
    NET LOSS                   $      (999,166)   $     1,700,008    $    (1,851,578)   $       936,104
                               ===============    ===============    ===============    ===============


Basic and diluted income
    (loss) per share           $         (0.05)   $          0.28    $         (0.14)   $          0.15
Weighted average
    shares outstanding              19,897,762          6,094,542         13,106,156          6,081,209
</TABLE>


<PAGE>


                       SYSTEMS MANAGEMENT SOLUTIONS, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     Six Months Ended June 30, 2005 and 2004
                                   (unaudited)

<TABLE>
<CAPTION>
                                                                  2005               2004
                                                       ---------------    ---------------
<S>                                                    <C>                <C>
Cash Flows From Operating Activities
  Net income (loss)                                    $    (1,851,578)   $    (1,908,451)
  Net income (loss) from discontinued Operations                    --            (45,939)
                                                       ---------------    ---------------
  Net loss before discontinued operations                   (1,851,578)        (1,862,512)

  Adjustments to reconcile net loss to net cash
    used in operating activities:
         Imputed Interest                                       55,193            107,022
         Depreciation                                           43,546             23,275

    Changes in:
         Accounts receivable                                   (79,239)             3,394
         Accounts receivable from related parties              (17,905)                --
         Inventory                                             (90,844)           (11,011)
         Current assets                                         (2,765)            16,832
         Accounts payable                                      537,494             50,251
         Accounts payable to related parties                    31,000                 --
         Accrued expenses                                      113,498            377,955
                                                       ---------------    ---------------
  Net Cash Used In Continuing Operations                    (1,261,600)        (1,294,794)
  Net Cash Used In Discontinued Operations                          --            (51,243)
                                                       ---------------    ---------------
  Net Cash Used In Operating Activities                     (1,261,600)        (1,346,037)
                                                       ---------------    ---------------


Cash Flows From Investing Activities
  Purchase of fixed assets                                    (152,913)           (31,112)
                                                       ---------------    ---------------
  Net Cash Used In Continuing Operations                      (152,913)                --
  Net Cash Provided By Discontinued Operations                      --                 --
                                                       ---------------    ---------------
  Net Cash Used in Investing Activities                       (152,913)           (31,112)
                                                       ---------------    ---------------

Cash Flows From Financing Activities
  Proceeds from shareholder loans                            1,399,366          1,067,498
  Contributions from related parties                            10,000                 --
  Payments on notes payable                                         --            (30,000)
  Payments on lease payable                                         --            (31,124)
  Proceeds from the sale of preferred stock                         --            286,500
                                                       ---------------    ---------------
  Net Cash Provided By Continuing Operations                 1,409,366          1,292,874

  Net Cash Provided By Discontinued Operations                      --             69,000
                                                       ---------------    ---------------
  Net Cash Provided by Financing Activities                  1,409,366          1,361,874
                                                       ---------------    ---------------
</TABLE>


<PAGE>

<TABLE>
<CAPTION>
<S>                                                             <C>               <C>
Net change in cash                                              (5,147)           (15,275)
Cash at beginning of period                                      5,147             16,780

                                                       ---------------    ---------------
Cash at end of period                                  $            --    $         1,505
                                                       ===============    ===============

Supplemental disclosures:
Income Taxes Paid                                      $            --    $            --
Interest Paid                                                       --                 --

Non-cash operating and financing activities:
Common Stock issued for conversion of note payable
         and accrued interest to equity                $     2,310,304    $            --
Preferred stock dividend                                       510,300                 --
Offset of Related Party Receivable with Note Payable
         Due to Shareholder                                     75,232                 --
Conversion of preferred stock to common stock                    1,310                 --
Stock issued for subsidiary                                        144                 --
</TABLE>


<PAGE>

                       SYSTEMS MANAGMENT SOLUTIONS, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (unaudited)


NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited interim financial statements of Systems Management
Solutions, Inc. have been prepared in accordance with accounting principles
generally accepted in the United States of America and the rules of the
Securities and Exchange Commission ("SEC"), and should be read in conjunction
with the audited financial statements and notes thereto contained in the
Company's financial statements filed with the SEC on Form 10-KSB. In the opinion
of management, all adjustments, consisting of normal recurring adjustments,
necessary for a fair presentation of financial position and the results of
operations for the interim periods presented have been reflected herein. The
results of operations for interim periods are not necessarily indicative of the
results to be expected for the full year. Notes to the financial statements
which would substantially duplicate the disclosure contained in the audited
financial statements for the most recent fiscal year 2004 as reported in Form
10-KSB, have been omitted.


NOTE 2 - EQUITY

On March 18, 2005, of 2003, SMS authorized the 50,000 shares of Series B
Convertible Preferred Stock. The stock has a face value of $100, maintains
voting rights on a fully diluted basis, and is convertible into common stock at
$0.90 per share.

On March 21, 2005, the company issued 23,103 shares of Series B Convertible
Preferred Stock for $2,310,304 of debt.

On March 21, 2005, a majority shareholder converted all of the outstanding
Series A and Series B Cumulative Convertible Preferred Stock into 13,101,400
shares of the Company's common stock.

On March 21, 2005, the Board authorized a 1:2.5 reverse split of the company's
common stock. All references to common stock in these financials reflect the
effect of the reverse split.


NOTE 3 - ACQUISITION OF SMS ENVIROFUELS, INC.

On April 6, 2005, SMS acquired all of the outstanding stock of SMS Envirofuels,
Inc., a Texas corporation, in exchange for 1,444,444 shares of its common stock.
The acquisition was accounted for under the pooling method due to the fact that
a majority shareholder of SMS Envirofuels is also a majority shareholder of SMS.
All of the assets, liabilities, profit and loss of SMS Envirofuels are combined
with SMS as if the companies have been consolidated from their inception.


<PAGE>


ITEM 2. MANAGEMENT'S PLAN OF OPERATIONS

      The following discussion and analysis should be read in connection with
the Company's consolidated financial statements and related notes thereto,
included elsewhere in this report.

      The Company acquired on April 6, 2005 all of the outstanding stock of SMS
Envirofuels, Inc. ("SMS"), a Texas corporation, in exchange for 1,444,444 shares
of its $0.0001 par value common stock. SMS has developed a plant to produce
bio-diesel (a biodegradable alternative fuel) from soybean oil. The SMS plant
has the capacity to produce up to 2,000,000 gallons of bio-diesel per year. SMS
has established buyers for its production and has been making deliveries for
about three months. The Company will operate the bio-diesel plant through SMS
Envirofuels, Inc. its wholly owned subsidiary as a part of its Environmental
Solutions Division. This division will be a compliment to the Company's Business
Solutions Division, which includes its wholly owned subsidiary, Aspect Business
Systems, Inc.

      ASPECT continued to experience operating losses during the period covered
by this report. As previously reported, ASPECT has expanded its product and
service offerings, which previously were focused on its biometric time and
attendance product. ASPECT now provides custom programming, support and
Microsoft systems products to its customers. During 2004 ASPECT became a
Microsoft Certified Partner which enabled it to remarket a specific line of
software developed by Microsoft Corporation. Adding these products and solutions
to the company's offerings has resulted in a new growth to the company revenue.
The majority of the revenue generated during the time period covered by this
filing has been generated from Microsoft solutions and custom programming.


      SMS Envirofuels began processing Biodiesel continuously, although not
consistently, in April 2005. The manufacturing facility has experienced a steady
demand for its product and will continue to perfect its process to achieve both
consistency and efficiency. During this quarter, management has entered the
market with below market sales prices in an effort to gain confidence of buyers
and to study market trends. In late June, the sales prices began to fluctuate
more with the market rates as the demand for our product continued to be strong.
The Company anticipates stabilization of the plant in the 3re quarter of 2005.


      Jim Karlak and Reagan Hicks each made a $5,000 contribution to the company
on March 24, 2005.


      SMS incurred a net loss of $999,166 for the three months ended June 30,
2005, and a net year to date net loss of $1,851,578 and had a working capital
deficit of $3,564,130 as of June 30, 2005. These conditions create an
uncertainty as to The Company's ability to continue as a going concern. The
Company has seen improvement in the operating results of ASPECT and SMS
Envirofuels during the past six months. The Company continues to aggressively
pursue other acquisition targets which would contribute positively to the
company's profitability and cash flow. However, the Company continues to rely on
loans and advances principally from its major stockholder, United Managers
Group, Inc., to fund operating shortfalls and does not foresee a change in this
situation in the immediate future. There can be no assurance that the Company
will continue to have such loans and advances available. The Company will not be
able to continue operations without them. The Company does not plan on
significant changes in the number of employees in the near future. Neither does
the Company plan on a purchase or sale of plant or significant equipment.
However, it remains a central focus of the Company to pursue acquisition targets
that will enhance the ability of the Company to satisfy its cash requirements.


<PAGE>


ITEM 3. CONTROLS AND PROCEDURES

(a) Under the supervision and with the participation of our management,
Including our principal executive officer and principal financial officer, we
conducted an evaluation of the design and operation of our disclosure controls
and procedures, as such term is defined under Rules 13a-14(c) and 15d-14(c)
promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), within 90 days of the filing date of this report. Based on that
evaluation, our principal executive officer and our principal financial officer
concluded that the design and operation of our disclosure controls and
procedures were effective in timely alerting them to material information
required to be included in the Company's periodic reports filed with the SEC
under the Securities Exchange Act of 1934, as amended. The design of any system
of controls is based in part upon certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions, regardless of
how remote.

(b) In addition, there were no significant changes in our internal control over
financial reporting identified in connection with the evaluation that occurred
during the last fiscal quarter that have materially affected, or that are
reasonably likely to materially affect, our internal control over financial
reporting.


                           PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

      In July of 2004, ARCOA, LLC, a Texas limited liability company, together
with a related individual, filed three actions in the Judicial District Court of
Harris County, Texas against Systems Management Solutions, Inc. and certain
related companies and individuals, claiming damages in connection with certain
loans made and services performed on behalf of YCO Holdings, Inc., a subsidiary
of the Company. ARCOA sought damages of approximately $500,000, plus attorneys'
fees and court costs. A Comprehensive Settlement Agreement was entered into by
the Company and all plaintiffs on October 19, 2004, settling all claims for a
total of $240,000 in payments. The parties have filed motions to dismiss for all
three cases. As of this filing, all liabilities related to this settlement have
been paid.


<PAGE>


ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

      (a)   Exhibits

            31.1  Rule 13a-14(a)/15d-14(a) Certification of Principal Executive
                  Officer

            31.2  Rule 13a-14(a)/15d-14(a) Certification of Principal Financial
                  Officer

            32.1  Section 1350 Certification of Principal Executive Officer

            32.2  Section 1350 Certification of Principal Financial Officer

      (b)   Reports on Form 8-K:

            On August 20, 2004, the Company filed a Current Report on Form 8-K
            announcing the change of the Company's name to Systems Management
            Solutions, Inc.

      (C)   On February 8, 2005, the Board of Directors of the Company voted to
            change its fiscal year end from June 30 to December 31. The Company
            last changed its fiscal year to correspond to the fiscal year of a
            subsidiary that has since discontinued operations. Because the
            quarter ended December 31, 2004, coincides with the end of the
            Company's new fiscal year, the Company will not file Form 10-QSB for
            the second quarter, but will instead file Form 10-KSB for the
            transition period ended December 31, 2004. the Form 10-KSB will
            include audited financial statements for the transition period and
            is required to be filed no later than the ninetieth day following
            the determination to change the Company's fiscal year end, or May 9,
            2005.

      (d)   On March 22, 2005, the Board of Directors of the Company voted to
            reduce the number of shares outstanding of the Company's $0.0001 par
            value common stock by reverse split to exchange one (1) new share
            for each two and one half (2 1/2) old shares. Any fractional shares
            created by this reverse split shall be truncated to the nearest
            whole share and no cash will be paid for any such fractional share.

      (e)   On April 6, 2005, the Registrant established a wholly owned
            subsidiary named SMSN Merger Sub, Inc., a Texas corporation which
            such corporation then entered into an Agreement and Plan of Merger
            between itself, SMS Envirofuels, Inc., a Texas corporation, and the
            Registrant. Under the terms of such Plan of Merger, SMS Envirofuels,
            Inc. will be merged into SMSN Merger Sub, Inc., the name of SMSN
            Merger Sub, Inc. will be changed to SMS Envirofuels, Inc., and the
            shares of SMS Envirofuels, Inc. will be exchanged for 1,444,444
            shares of the $0.0001 common stock of Registrant. SMS Envirofuels,
            Inc. has developed a plant to produce bio-diesel from soybean oil
            and has recently begun marketing such bio-diesel to distributors and
            retailers. The Registrant plans to continue this business with the
            operating assets of SMS Envirofuels, Inc. and to expand the
            production and marketing of the bio-diesel product.