| x | Quarterly                  report under Section 13 or 15(d) of the Securities Exchange Act                  of                  1934 |
|---|--------------------------------------------------------------------------------------------------------------------------------------|

|  ̈ | Transition                  report under Section 13 or 15(d) of the Exchange                  Act |
|--------|---------------------------------------------------------------------------------------------------|

| Delaware                                                                                        |   | 26-0433980                                                            |
|-------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------|
| (State                  or other Jurisdiction ofIncorporation                  or Organization) |   | (I.R.S.                  EmployerIdentification                  No.) |

| Large                  accelerated filer o | Accelerated                  filer o         |
|--------------------------------------------|----------------------------------------------|
| Non-accelerated                  filer o   | Smaller                  reporting company x |

----

|                                                                                                                                              | Page   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Part                  I: Financial Information:                                                                                                   |   |
|                                                                                                                                              |   |
| Item                  1 –Financial Statements:                                                                                              |   |
|                                                                                                                                              |   |
| Condensed                  Balance Sheet                                                                                                          | 3      |
|                                                                                                                                              |   |
| Condensed                  Statements of Operations                                                                                               | 4      |
|                                                                                                                                              |   |
| Condensed                  Statement of Stockholders’ Equity                                                                                | 5      |
|                                                                                                                                              |   |
| Condensed                  Statement of Cash Flows                                                                                                | 6      |
|                                                                                                                                              |   |
| Notes                  to Condensed Financial Statements                                                                                          | 7      |
|                                                                                                                                              |   |
| Item                  2 – Management’s Discussion and Analysis of Financial Condition and                  Results of Operations | 18     |
|                                                                                                                                              |   |
| Item                  3 – Quantitative and Qualitative Disclosures about Market                  Risk                                  | 19     |
|                                                                                                                                              |   |
| Item                  4 – Controls and Procedures                                                                                      | 20     |
|                                                                                                                                              |   |
| Part                  II. Other Information                                                                                                       |   |
|                                                                                                                                              |   |
| Item                  2 – Unregistered Sales of Equity Securities and Use of                  Proceeds                                 | 21     |
|                                                                                                                                              |   |
| Item                  6 – Exhibits                                                                                                     | 22     |
|                                                                                                                                              |   |
| Signatures                                                                                                                                        | 23     |

----

**North        Shore Acquisition Corp.**

**(a        corporation in the development stage)**

**Condensed        Balance Sheet**

----

|                                                                                                                                                                                                                                                         |   | September 30, |       | December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|-------------------|--------|
|                                                                                                                                                                                                                                                         |   | 2008               |       | 2007              |   |
|                                                                                                                                                                                                                                                         |   | (unaudited)        |       | (audited)         |   |
| **ASSETS**                                                                                                                                                                                                                                                   |   |               |            |              |   |  |   |
| **Current                  Assets:**                                                                                                                                                                                                                         |   |               |       |              |   |   |   |
| Cash                  and cash equivalents                                                                                                                                                                                                                   |   | $                  | 349,984    |              | $      | 107,863 |   |
| Prepaid                  expenses and other current assets                                                                                                                                                                                                   |   |               | 78,708     |              |   | 92,461 |   |
|                                                                                                                                                                                                                                                         |   |               |            |              |   |  |   |
| **Total                  Current Assets**                                                                                                                                                                                                                    |   |               | 428,692    |              |   | 200,324 |   |
|                                                                                                                                                                                                                                                         |   |               |            |              |   |  |   |
| Other                  asset, cash and cash equivalents held in Trust Fund (Note                  1)                                                                                                                                                         |   |               | 49,800,020 |              |   | 49,411,768 |   |
|                                                                                                                                                                                                                                                         |   |               |            |              |   |  |   |
| **Total                  Assets**                                                                                                                                                                                                                            |   | $                  | 50,228,712 |              | $      | 49,612,092 |   |
|                                                                                                                                                                                                                                                         |   |               |            |              |   |  |   |
| **LIABILITIES                  AND STOCKHOLDERS' EQUITY**                                                                                                                                                                                                    |   |               |       |              |   |   |   |
|                                                                                                                                                                                                                                                         |   |               |            |              |   |  |   |
| **Current                  Liabilities:**                                                                                                                                                                                                                    |   |               |       |              |   |   |   |
| Income                  taxes payable                                                                                                                                                                                                                        |   | $                  | 20,000     |              | $      | 54,500 |   |
| Accrued                  Expenses                                                                                                                                                                                                                            |   |               | 26,664     |              |   | 17,500 |   |
| Accounts                  Payable                                                                                                                                                                                                                            |   |               | 5,519      |              |   | 15,740 |   |
|                                                                                                                                                                                                                                                         |   |               |       |              |   |   |   |
| **Total                  Current Liabilities**                                                                                                                                                                                                               |   |               | 52,183     |              |   | 87,740 |   |
|                                                                                                                                                                                                                                                         |   |               |       |              |   |   |   |
| **Long-Term                  Liabilities**                                                                                                                                                                                                                   |   |               |            |              |   |  |   |
| Deferred                  Underwriters' Fee                                                                                                                                                                                                                  |   |               | 1,524,720  |              |   | 1,512,000 |   |
|                                                                                                                                                                                                                                                         |   |               |            |              |   |  |   |
| Commons                  stock, subject to possible redemption, 2,541,198 and 2,519,999                  shares at                  redemption value, approximately$7.84 per share                                                                           |   |               | 19,877,255 |              |   | 19,713,599 |   |
|                                                                                                                                                                                                                                                         |   |               |       |              |   |   |   |
| **Commitments**                                                                                                                                                                                                                                              |   |               |            |              |   |  |   |
|                                                                                                                                                                                                                                                         |   |               |       |              |   |   |   |
| **Stockholders’                  equity**                                                                                                                                                                                                              |   |               |            |              |   |  |   |
| Preferred                  stock, $.0001 par value                                                                                                                                                                                                           |   |               |       |              |   |   |   |
| Authorized                  1,000,000 shares; none issued and outstanding                                                                                                                                                                                    |   |               |            |              |   |  |   |
| Common                  stock, $.0001 par value                                                                                                                                                                                                              |   |               |       |              |   |   |   |
| Authorized                  20,000,000 shares                                                                                                                                                                                                                |   |               |            |              |   |  |   |
| Issued                  and outstanding 7,941,250 and 8,111,250 shares at September 30,                  2008 and                  December 31, 2007, respectively (which includes 2,541,198 and 2,519,999                  subject to possible redemptions) |   |               | 794        |              |   | 811 |   |
| Additional                  Paid in Capital                                                                                                                                                                                                                  |   |               | 28,505,877 |              |   | 28,273,077 |   |
| Income                  accumulated during the development stage                                                                                                                                                                                             |   |               | 267,883    |              |   | 24,866 |   |
|                                                                                                                                                                                                                                                         |   |               |            |              |   |  |   |
| Total                  stockholders' equity                                                                                                                                                                                                                  |   |               | 28,774,554 |              |   | 28,298,754 |   |
|                                                                                                                                                                                                                                                         |   |               |            |              |   |  |   |
| Total                  liabilities and stockholders' equity                                                                                                                                                                                                  |   | $                  | 50,228,712 |              | $      | 49,612,092 |   |

*See        notes to condensed financial statements.*

----

**North        Shore Acquisition Corp.**

**(a        corporation in the development stage)**

**Unaudited        Condensed Statements of Operations**

----

|                                                          |   | Period from             |       | Period from                      |   | Period from             |   | Period from                      |       |
|---------------------------------------------------------------|--------|------------------------------|------------|---------------------------------------|--------|------------------------------|--------|---------------------------------------|------------|
|                                                          |   | July 1, 2008       |       | June 26, 2007               |   | January 1, 2008    |   | June 26, 2007               |       |
|                                                          |   | to                           |       | (date of inception) to |   | to                           |   | (date of inception) to |       |
|                                                          |   | September 30, 2008 |       | September 30, 2007          |   | September 30, 2008 |   | September 30, 2008          |       |
| Revenue                                                       |   | $                            | —    |                                  | $      | —                      |   | $                                     | —    |   | $ | — |   |
| Formation and operating expenses               |   |                         | 57,128     |                                  |   | 2,650                        |   |                                  | 181,308    |   |   | 230,836 |   |
| Loss                  from operations                         |   |                         | (57,128    | )                                     |   | (2,650                       | )      |                                  | (181,308   | ) |   | (230,836 | ) |
| Other                  income, interest                       |   |                         | 199,337    |                                  |   | 223                          |   |                                  | 733,161    |   |   | 862,055 |   |
| Income                  before income tax expense             |   |                         | 142,209    |                                  |   | (2,427                       | )      |                                  | 551,853    |   |   | 631,219 |   |
| Income                  tax expense                           |   |                         | 85,249     |                                  |   | -                            |   |                                  | 308,836    |   |   | 363,336 |   |
| Net                  income applicable to common stockholders |   | $                            | 56,960     |                                  | $      | (2,427                       | )      | $                                     | 243,017    |   | $ | 267,883 |   |
|                                                          |   |                         |       |                                  |   |                         |   |                                  |       |   |   |   |   |
| Weighted                  average shares outstanding          |   |                         |            |                                  |   |                              |   |                                  |            |   |   |  |   |
| Basic                                                         |   |                         | 7,941,250  |                                  |   | 1,811,250                    |   |                                  | 7,947,454  |   |   | 5,782,783 |   |
| Diluted                                                       |   |                         | 10,371,333 |                                  |   | 1,811,250                    |   |                                  | 10,336,546 |   |   | 7,315,007 |   |
|                                                          |   |                         |       |                                  |   |                         |   |                                  |       |   |   |   |   |
| Income                  per share, basic                      |   | $                            | 0.01       |                                  | $      | (0.00                        | )      | $                                     | 0.03       |   | $ | 0.05 |   |
| Income                  per share, diluted                    |   | $                            | 0.01       |                                  | $      | (0.00                        | )      | $                                     | 0.02       |   | $ | 0.04 |   |

*See        notes to condensed financial statements.*

----

**North        Shore Acquisition Corp.**

**(a        corporation in the development stage)**

**Unaudited        Condensed Statement of Stockholders’ Equity**

----

|                                                                                                                                                                                       |   |              |                     |                           |   |                           |   | Income                         |        |                           |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------------------------|--------------------------------|--------|--------------------------------|--------|--------------------------------|-------------|--------------------------------|--------|
|                                                                                                                                                                                       |   |              |                     | Additional                     |   | accumulated                    |   |                           |        |
|                                                                                                                                                                                       |   | Common Stock |                     | Paid-In                        |   | during the                |   |                           |        |
|                                                                                                                                                                                       |   | Shares            |                     | Amount                         |   | Capital                        |   | development stage         |        | Total                          |   |
|                                                                                                                                                                                       |   |              |                     |                      |   |                      |   |                      |        |                      |   |
| Sale                  of 1,811,250 shares of common stock to initial                  stockholders                                                                                         |   |              | 1,811,250                |                           | $      | 181                            |   | $                              | 24,819      |                           | $      | — |   | $ | 25,000 |   |
| Sale                  of 6,300,000 units, net of underwriters' discount and offering                  expenses                  (includes 2,519,999 shares subject to possible redemption) |   |              | 6,300,000                |                           |   | 630                            |   |                           | 46,361,757  |                           |   | — |   |   | 46,362,387 |   |
| Proceeds                  subject to possible redemption of 2,519,999 shares                                                                                                               |   |              | —                  |                           |   |                                |   |                           | (19,713,599 | )                              |   | — |   |   | (19,713,599 | ) |
| Proceeds                  from sale of warrants to initial stockholders                                                                                                                    |   |              | —                  |                           |   | —                        |   |                           | 1,600,000   |                           |   | — |   |   | 1,600,000 |   |
| Proceeds                  from issuance of option                                                                                                                                          |   |              | —                  |                           |   | —                        |   |                           | 100         |                           |   | — |   |   | 100 |   |
| Net                  income for the period                                                                                                                                                 |   |              |      |                           |   | —                        |   |                           | —     |                           |   | 24,866 |   |   | 24,866 |   |
| Balance,                  December 31, 2007                                                                                                                                                |   |              | 8,111,250                |                           | $      | 811                            |   | $                              | 28,273,077  |                           | $      | 24,866 |   | $ | 28,298,754 |   |
| Sale                  of 53,000 units (includes 21,198 shares subject to possible                  redemption)                                                                             |   |              | 53,000                   |                           |   | 5                              |   |                           | 396,435     |                           |   |   |   |   | 396,440 |   |
| Proceeds                  subject to possible redemption of 21,199 shares                                                                                                                  |   |              | —                  |                           |   | —                        |   |                           | (163,657    | )                              |   |   |   |   | (163,657 | ) |
| Forfeiture                  of shares of common stock by initial stockholders                                                                                                              |   |              | (223,000                 | )                              |   | (22                            | )      |                           | 22          |                           |   |   |   |   | — |   |
| Net                  income for the period                                                                                                                                                 |   |              |                     |                           |   | —                        |   |                           | —     |                           |   | 243,017 |   |   | 243,017 |   |
| Balance,                  September 30, 2008 (unaudited)                                                                                                                                   |   |              | 7,941,250                |                           | $      | 794                            |   | $                              | 28,505,877  |                           | $      | 267,883 |   | $ | 28,774,554 |   |

*See        notes to condensed financial statements.*

----

**North        Shore Acquisition Corp.**

**(a        corporation in the development stage)**

**Unaudited        Condensed Statement of Cash Flows**

----

|                                                                                                              |   |                           |     | *For the period*      |   | *For the period*      |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|----------|---------------------------------|--------|---------------------------------|--------|
|                                                                                                              |   | *For the period*     |     | *June 26, 2007*       |   | *June 26, 2007*       |   |
|                                                                                                              |   | *from*                         |     | *from*                          |   | *from*                          |   |
|                                                                                                              |   | *January 1, 2008*    |     | *(date of inception)* |   | *(date of inception)* |   |
|                                                                                                              |   | *to*                           |     | *to*                            |   | *to*                            |   |
|                                                                                                              |   | *September 30, 2008* |     | *September 30, 2007*  |   | *September 30, 2008*  |   |
| **Cash                  Flows from Operating Activities**                                                         |   |                           |          |                            |   |                                 |   |   |  |   |
| Net                  income                                                                                       |   | $                              | 243,017  |                            | $      | (2,427                          | )      | $ | 267,883 |   |
| Adjustment                  to reconcile net income to net cash provided by operating                  activities |   |                           |          |                            |   |                                 |   |   |  |   |
| Prepaid                  expenses and other current assets                                                        |   |                           | 13,753   |                            |   | —                         |   |   | (78,707 | ) |
| Income                  taxes payable                                                                             |   |                           | 20,000   |                            |   | —                         |   |   | 20,000 |   |
| Accrued                  expenses                                                                                 |   |                           | 9,164    |                            |   | 2,500                           |   |   | 26,664 |   |
| Accounts                  payable                                                                                 |   |                           | (64,721  | )                               |   | —                         |   |   | 5,519 |   |
|                                                                                                              |   |                           |     |                            |   |                            |   |   |   |   |
| Net                  cash provided by operating activities                                                        |   |                           | 221,213  |                            |   | 73                              |   |   | 241,358 |   |
|                                                                                                              |   |                           |     |                            |   |                            |   |   |   |   |
| **Net                  cash used in Investing Activities**                                                        |   |                           |          |                            |   |                                 |   |   |  |   |
|                                                                                                              |   |                           |     |                            |   |                            |   |   |   |   |
| Change                  in restricted cash and cash equivalents held in Trust Fund                                |   |                           | (388,252 | )                               |   | —                         |   |   | (49,800,021 | ) |
|                                                                                                              |   |                           |     |                            |   |                            |   |   |   |   |
| **Cash                  Flows from Financing Activities**                                                         |   |                           |          |                            |   |                                 |   |   |  |   |
| Gross                  proceeds of common stock public offering                                                   |   |                           | 424,000  |                            |   | —                         |   |   | 50,824,000 |   |
| Proceeds                  from notes payable, shareholder                                                         |   |                           | —  |                            |   | 100,000                         |   |   | 100,000 |   |
| Payment                  of notes payable, shareholder                                                            |   |                           | —  |                            |   | —                         |   |   | (100,000 | ) |
| Proceeds                  from the issuance of common stock to initial stockholders                               |   |                           | —  |                            |   | 25,000                          |   |   | 25,000 |   |
| Proceeds                  from sale of warrants to initial shareholders                                           |   |                           | —  |                            |   | —                         |   |   | 1,600,000 |   |
| Proceeds                  from issuance of option                                                                 |   |                           | —  |                            |   | —                         |   |   | 100 |   |
| Payment                  of costs of public offering                                                              |   |                           | (14,840  | )                               |   | (112,331                        | )      |   | (2,540,453 | ) |
|                                                                                                              |   |                           |          |                            |   |                                 |   |   |  |   |
| Net                  cash provided by financing activities                                                        |   |                           | 409,160  |                            |   | 12,669                          |   |   | 49,908,647 |   |
|                                                                                                              |   |                           |          |                            |   |                                 |   |   |  |   |
| Net                  increase in cash and cash equivalents                                                        |   |                           | 242,121  |                            |   | 12,742                          |   |   | 349,984 |   |
| Cash                  and cash equivalents at the beginning of the period                                         |   |                           | 107,863  |                            |   | —                         |   |   | — |   |
|                                                                                                              |   |                           |     |                            |   |                            |   |   |   |   |
| Cash                  and cash equivalents at the end of the period                                               |   | $                              | 349,984  |                            | $      | 12,742                          |   | $ | 349,984 |   |
|                                                                                                              |   |                           |     |                            |   |                            |   |   |   |   |
| Supplemental                  disclosure of cash flow information                                                 |   |                           |          |                            |   |                                 |   |   |  |   |
| Cash                  paid during the period for:                                                                 |   |                           |     |                            |   |                            |   |   |   |   |
| Income                  Taxes                                                                                     |   | $                              | 378,336  |                            | $      | —                         |   | $ | 378,336 |   |
|                                                                                                              |   |                           |     |                            |   |                            |   |   |   |   |
| Non                  cash financing activity:                                                                     |   |                           |          |                            |   |                                 |   |   |  |   |
| Deferred                  underwriter's fee                                                                       |   | $                              | 12,720   |                            | $      | 52,500                          |   | $ | 1,524,720 |   |

*See        notes to condensed financial statements.*

----

**North      Shore Acquisition Corp.**

**(a      corporation in the development stage)**

**Notes      to Unaudited Condensed Financial Statement **

| **1.** | **Organization****and****Business****Operations** | North                Shore Acquisition Corp. (the “Company”) was incorporated in Delaware on                June 26, 2007 as a blank check company whose objective is to acquire                an                operating business.  All                activity from June 26, 2007 (inception) through September 30, 2008                relates                to the Company’s formation and initial public offering described below.                The Company has selected December 31 as its fiscal                year-end.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------|---------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                              | The                registration statement for the Company’s initial public offering                (“Offering”) was declared effective November 30, 2007. The Company                consummated the offering on December 7, 2007 and received net proceeds                of                approximately $47,883,000 (Note 3). On January 11, 2008 the Company                received additional gross proceeds in the amount of approximately                $424,000                from the sale of additional units reflecting the underwriters’                over-allotment. The Company’s management has broad discretion with respect                to the specific application of the net proceeds of this Offering,                although                substantially all of the net proceeds of this Offering are intended                to be                generally applied toward consummating a business combination with                an                operating business (“Business Combination”). Furthermore, there is no                assurance that the Company will be able to successfully effect a                Business                Combination. An amount of $49,800,020 is being held in an interest-bearing                trust account (“Trust Account”) including a portion of the underwriting                discounts and commissions payable to the underwriters in this offering                and                invested only in United States “government debt securities” within the                meaning of Section 2(a)(16) of the Investment Company Act of 1940                having a                maturity of 180 days or less, or in money market funds meeting certain                conditions under Rule 2(a)(7) promulgated under the Investment Company                Act                of 1940, until the earlier of (i) the consummation of a Business                Combination or (ii) liquidation of the Company. The placing of funds                in                the Trust Account may not protect those funds from third party claims                against the Company. To date all of the assets have been invested                in the                Dreyfus Treasury Cash Management – Institutional Shares. Although the                Company will seek to have all vendors, prospective target businesses                or                other entities it engages, execute agreements with the Company waiving                any                right, title, interest or claim of any kind in or to any monies held                in                the Trust Account, there is no guarantee that they will execute such                agreements. The Company’s officers and directors have agreed that they                will be personally liable under certain circumstances to ensure that                the                proceeds in the Trust Account are not reduced by the claims of target                businesses or vendors or other entities that are owed money by the                Company                for services rendered contracted for or products sold to the Company.                However, there can be no assurance that they will be able to satisfy                those                obligations. The remaining net proceeds (not held in the Trust Account)                may be used to pay for business, legal and accounting due diligence                on                prospective acquisitions and continuing general and administrative                expenses. Additionally, up to an aggregate of $1,000,000 of interest                earned on the Trust Account balance may be released to the Company                to fund                working capital requirements, as well as any amounts necessary to                pay the                Company’s tax obligations. At September 30, 2008, the Company had earned                $729,093 of interest on the Trust Account since inception, which                is                included in the cash held in Trust Fund less $750,000 which has been                used                for federal and state tax payments and working                capital. |

----

**North      Shore Acquisition Corp.**

**(a      corporation in the development stage)**

**Notes      to Unaudited Condensed Financial Statement **

|   |   | The                Company, after signing a definitive agreement for the acquisition                of a                target business, will submit such transaction for stockholder approval.                In                the event that stockholders owning 40% or more of the shares sold                in the                Offering vote against the Business Combination and exercise their                conversion rights described below, the Business Combination will                not be                consummated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   | All                of the Company’s stockholders prior to the Offering, including all of the                officers and directors of the Company (“Initial Stockholders”), have                agreed to vote their 1,588,250 founding shares of common stock in                accordance with the vote of the majority in interest of all other                stockholders of the Company (“Public Stockholders”) with respect to any                Business Combination. After consummation of a Business Combination,                these                voting safeguards will no longer be applicable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |   | With                respect to a Business Combination which is approved and consummated,                any                Public Stockholder who voted against the Business Combination may                demand                that the Company convert his shares. The per share conversion price                will                equal the amount in the Trust Account, calculated as of two business                days                prior to the consummation of the proposed Business Combination, divided                by                the number of shares of common stock held by Public Stockholders                at the                consummation of the Offering. Accordingly, Public Stockholders holding                39.99% of the aggregate number of shares owned by all Public Stockholders                may seek conversion of their shares in the event of a Business                Combination. Such Public Stockholders are entitled to receive their                per                share interest in the Trust Account computed without regard to the                shares                held by Initial Stockholders. Accordingly, a portion of the net proceeds                from the offering (39.99% of the amount held in the Trust Account)                has                been classified as common stock subject to possible conversion in                the                accompanying September 30, 2008 and December 31, 2007 balance                sheets. The                Company’s Amended and Restated Certificate of Incorporation provides for                mandatory liquidation of the Company in the event that the Company                does                not consummate a Business Combination by November 30, 2009. In the                event                of liquidation, it is possible that the per share value of the residual                assets remaining available for distribution (including Trust Account                assets) will be less than the initial public offering price per share                in                the Offering due to costs related to the Offering and since no value                would                be attributed to the Warrants contained in the Units sold                (Note 3). |

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**North      Shore Acquisition Corp.**

**(a      corporation in the development stage)**

**Notes      to Unaudited Condensed Financial Statement **

| **2.** | **Summary                of Significant****Accounting                Policies** |   ***Basis                of Presentation*** The                financial statements of the Company are presented in U.S. dollars                in                conformity with accounting principles                generally accepted in the United States of America (U.S. GAAP) and                pursuant to the accounting and disclosure rules and regulations for                interim financial statements of the SEC. ***Cash                and Cash equivalents*** The                Company considers money market funds to be cash equivalents. ***Development                Stage Company*** The                Company complies with the reporting requirements of Statement of                Financial                Standard (“SFAS”) No. 7, "Accounting and Reporting by Development Stage                Enterprises." ***Concentration                of Credit Risk*** Financial                instruments that potentially subject the Company to a significant                concentration of credit risk consist primarily of cash. The Company                may                maintain deposits in federally insured financial institutions in                excess                of federally insured limits. However, management believes the Company                is                not exposed to significant credit                risk due to the financial position of the depository institutions                in which                those deposits are held. ***Fair                Value of Financial Instruments*** The                fair values of the Company's assets and liabilities that qualify                as                financial instruments under SFAS                No. 107, "Disclosures about Fair Value of Financial Instrument,"                approximate their carrying amounts presented                in the accompanying balance                sheets. |
|--------|---------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**North      Shore Acquisition Corp.**

**(a      corporation in the development stage)**

**Notes      to Unaudited Condensed Financial Statement **

|   |   | ***Basic                and Diluted Earnings******per                Share*** Earnings                per common share is based on the weighted average number of common                shares                outstanding. The Company complies with SFAS No. 128, "Earnings Per                Share,"                which requires dual presentation of basic and diluted earnings per                share                on the face of the statement of operations. Basic income per share                excludes dilution and is computed by dividing income available to                common                stockholders by the weighted-average common shares outstanding for                the                period. Diluted income per share reflects the potential dilution                that                could occur if warrants were to be exercised or otherwise resulted                in the                issuance of common stock that then shared in the earnings of the                entity.                 ***Use                of Estimates*** The                preparation of financial statements in conformity with accounting                principles generally accepted in the United                States of America requires management to make estimates and assumptions                that affect the reported amounts of assets and liabilities and disclosure                of contingent assets and liabilities at the date of the financial                statements and the reported amounts of expenses during the reporting                period. Actual results could differ from those                estimates. ***Income                Taxes*** The                Company complies with the Financial Accounting Standards Board ("FASB")                issued FASB Interpretation No. 48, “Accounting                for Uncertainty in Income Taxes," an interpretation of FASB Statement                No.                109 ("FIN 48"), which provides criteria for the recognition, measurement,                presentation and disclosure of uncertain                tax position. A tax benefit from an uncertain position may be recognized                only if it is "more likely than                not" that the position is sustainable based on its technical                merits. The                Company complies with SFAS No. 109, “Accounting for Income Taxes,” which                requires an asset and liability approach to financial accounting                and                reporting for income taxes. Deferred income taxes are provided for                the                differences between the bases of assets and liabilities for financial                reporting and income tax purposes. A valuation allowance is established                when necessary to reduce deferred                tax assets to the amount expected to be                realized. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**North      Shore Acquisition Corp.**

**(a      corporation in the development stage)**

**Notes      to Unaudited Condensed Financial Statement **

|   |   | ***New                  Accounting Pronouncements*** In                  December 2007, the FASB issued SFAS 141(R), "Business Combinations”. SFAS                  No. 141(R) provides companies with principles and requirements                  on how an                  acquirer recognizes and measures in its financial statements the                  identifiable assets acquired, liabilities assumed, and any noncontrolling                  interest in the acquiree as well as the recognition and measurement                  of                  goodwill acquired in a business combination. SFAS No. 141(R) also                  requires                  certain disclosures to enable users of the financial statements                  to                  evaluate the nature and financial effects of the business combination.                  Acquisition costs associated with the business combination will                  generally                  be expensed as incurred. SFAS No. 141(R) is effective for business                  combinations occurring in fiscal years beginning after December                  15, 2008,                  which will require the Company to adopt these provisions for business                  combinations occurring in fiscal 2009 and thereafter. Early adoption                  of                  SFAS No. 141(R) is not permitted. We are currently evaluating the                  impact                  of applying the provisions of SFAS No. 141(R) on our financial                  statements. In                December 2007, FASB issued SFAS No. 160, “Noncontrolling Interests in                Consolidated Financial Statements – an Amendment of ARB No. 51”. SFAS No.                160 requires reporting entities to present noncontrolling (minority)                interests as equity as opposed to a liability or mezzanine equity                and                provides guidance on the accounting for transactions between an entity                and                noncontrolling interests. SFAS No. 160 is effective the first fiscal                year                beginning after December 15, 2008, and interim periods within that                fiscal                year. SFAS No. 160 applies prospectively as of the beginning of the                fiscal                year SFAS No. 160 is initially applied, except for the presentation                and                disclosure requirements which are applied retrospectively for all                periods                presented subsequent to adoption. The adoption of SFAS No. 160 will                not                have a material impact on the Company’s financial statements; however, it                could impact future transactions entered into by the Company. In                March 2008, the Financial Accounting Standards Board (“FASB”) issued SFAS                No. 161, “Disclosures about Derivative Instruments and Hedging Activities                – an amendment to FASB Statement No. 133”. SFAS No. 161 is intended to                improve financial standards for derivative instruments and hedging                activities by requiring enhanced disclosures to enable investors                to better                understand their effects on an entity's financial position, financial                performance, and cash flows. Entities are required to provide enhanced                disclosures about: (a) how and why an entity uses derivative instruments;                (b) how derivative instruments and related hedged items are accounted                for                under Statement 133 and its related interpretations; and (c) how                derivative instruments and related hedged items affect an entity’s                financial position, financial performance, and cash flows. It is                effective                for financial statements issued for fiscal years beginning after                November                15, 2008, with early adoption encouraged. The adoption of this statement                is not expected to have a material effect on the Company’s financial                statements. |
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**North      Shore Acquisition Corp.**

**(a      corporation in the development stage)**

**Notes      to Unaudited Condensed Financial Statement **

|   |   | In                May 2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally                Accepted Accounting Principles”. SFAS 162 identifies the sources of                accounting principles and the framework for selecting the principles                to be                used in the preparation of financial statements of nongovernmental                entities that are presented in conformity with generally accepted                accounting principles in the United States. It is effective 60 days                following the SEC’s approval of the Public Company Accounting Oversight                Board amendments to AU Section 411, “The Meaning of Present Fairly in                Conformity With Generally Accepted Accounting Principles”. The adoption of                this statement is not expected to have a material effect on the Company’s                financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   |   | In                May 2008, the Financial Accounting Standards Board (“FASB”) issued SFAS                No. 163, “Accounting for Financial Guarantee Insurance Contracts – An                interpretation of FASB Statement No. 60”. SFAS 163 requires that an                insurance enterprise recognize a claim liability prior to an event                of                default when there is evidence that credit deterioration has occurred                in                an insured financial obligation. It also clarifies how Statement                60                applies to financial guarantee insurance contracts, including the                recognition and measurement to be used to account for premium revenue                and                claim liabilities, and requires expanded disclosures about financial                guarantee insurance contracts. It is effective for financial statements                issued for fiscal years beginning after December 15, 2008, except                for some                disclosures about the insurance enterprise’s risk-management activities.                SFAS 163 requires that disclosures about the risk-management activities                of                the insurance enterprise be effective for the first period beginning                after                issuance. Except for those disclosures, earlier application is not                permitted. The adoption of this statement is not expected to have                a                material effect on the Company’s financial statements. The                Company does not believe that any other recently issued, but not                yet                effective, accounting pronouncements if currently adopted would have                a                material effect on the accompanying financial statements.  ***Redeemable                common stock***  The                Company accounts for redeemable common stock in accordance with Emerging                Issue Task Force D-98 “Classification and Measurement of Redeemable                Securities”. Securities that are redeemable for cash or other assets are                classified outside of permanent equity if they are redeemable at                the                option of the holder. In addition, if the redemption causes a redemption                event, the redeemable securities should not be classified outside                of                permanent equity. As discussed in Note 1, the Business Combination                will                only be consummated if a majority of the shares of common stock voted                by                the Public Stockholders are voted in favor of the Business Combination                and                Public Stockholders holding less than 40% (2,541,198) of common shares                sold in the Offering exercise their conversion rights. As further                discussed in Note 1, if a Business Combination is not consummated                within                24 months, the Company will liquidate. Accordingly, 2,541,198 shares                have                been classified outside of permanent equity at redemption value.                The                Company recognized changes in the redemption value immediately as                they                occur and adjusts the carrying value of the redeemable common stock                to                equal its redemption value at the end of each reporting period. The                per                share redemption price was approximately $7.84 at September 30,                2008. |

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**North      Shore Acquisition Corp.**

**(a      corporation in the development stage)**

**Notes      to Unaudited Condensed Financial Statement **

| **3.** | **Initial                Public****Offering** | On                December 7, 2007, the Company sold 6,300,000 units (“Units”) in the                Offering, and on January 11, 2008 the Company sold an additional                53,000                units. Each Unit consists of one share of the Company’s common stock,                $.0001 par value, and one Redeemable Common Stock Purchase Warrant(s)                (“Warrants”). Each Warrant entitles the holder to purchase from the                Company one share of common stock at an exercise price of $5.00 commencing                the later of six months after the completion of a Business Combination                or** **November                30, 2008 and expiring November 29, 2012.** **                The Warrants will be redeemable, at the Company’s option, with the prior                consent of EarlyBirdCapital, Inc., the representative of the underwriters                in the Offering (“Underwriters”), at a price of $.01 per Warrant upon 30                days’ notice after the Warrants become exercisable, only in the event that                the last sale price of the common stock is at least $11.50 per share                for                any 20 trading days within a 30 trading day period ending on the                third day                prior to the date on which notice of redemption is given. If the                Company                redeems the Warrants as described above, management will have the                option                to require any holder that wishes to exercise his Warrant to do so                on a                “cashless basis.” In such event, the holder would pay the exercise price                by surrendering his Warrants for that number of shares of Common                Stock                equal to the quotient obtained by dividing (x) the product of the                number                of shares of Common Stock underlying the Warrants, multiplied by                the                difference between the exercise price of the Warrants and the “fair market                value” (defined below) by (y) the fair market value. The “fair market                value” shall mean the average reported last sale price of the Common Stock                for the 10 trading days ending on the third trading day prior to                the date                on which the notice of redemption is sent to holders of Warrants.                In                accordance with the warrant agreement relating to the Warrants to                be sold                and issued in the Proposed Offering, the Company is only required                to use                its best efforts to maintain the effectiveness of the registration                statement covering the Warrants. The Company will not be obligated                to                deliver securities, and there are no contractual penalties for failure                to                deliver securities, if a registration statement is not effective                at the                time of exercise. Additionally, in the event that a registration                is not                effective at the time of exercise, the holder of such Warrant shall                not be                entitled to exercise such Warrant and in no event (whether in the                case of                a registration statement not being effective or otherwise) will the                Company be required to net cash settle the warrant exercise. Consequently,                the Warrants may expire unexercised and                unredeemed. |
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**North      Shore Acquisition Corp.**

**(a      corporation in the development stage)**

**Notes      to Unaudited Condensed Financial Statement **

|   |   | The                Company agreed to pay the Underwriter in the Offering an underwriting                discount of 6.5% of the gross proceeds of the Offering and a                non-accountable expense allowance of 0.5% of the gross proceeds of                the                Offering. However, the Underwriter has agreed that 3.0% of the                underwriting discount will not be payable unless and until the Company                completes a Business Combination and has waived their right to receive                such payment upon the Company's liquidation if it is unable to complete                a                Business Combination. In connection with this Offering, the Company                also                issued an option (“Option”), for $100, to the Underwriter to purchase                420,000 Units at an exercise price of $8.80 per Unit. The Units issuable                upon exercise of the Option are identical to the Units sold in the                Offering. The Company intends to account for the fair value of the                Option,                inclusive of the receipt of the $100 cash payment, as an expense                of the                Offering resulting in a charge directly to stockholders’ equity. The                Company estimates that the fair value of the Option is approximately                $823,200 ($1.96 per Unit) using a Black-Scholes option-pricing model.                The                fair value of the Option granted to the Underwriter is estimated                as of the                date of grant using the following assumptions: (1) expected volatility                of                20.43%, (2) risk-free interest rate of 4.82% and (3) expected life                of 5                years. The Option may be exercised for cash or on a "cashless" basis,                at                the holder's option, such that the holder may use the appreciated                value of                the Option (the difference between the exercise prices of the Option                and                the underlying Warrants and the market price of the Units and underlying                securities) to exercise the option without the payment of any cash.                The                Company will have no obligation to net cash settle the exercise of                the                unit purchase option or the Warrants underlying the unit purchase                option.                The holder of the unit purchase option will not be entitled to exercise                the unit purchase option or the Warrants underlying the unit purchase                option unless a registration statement covering the securities underlying                the unit purchase option is effective or an exemption from registration                is                available. If the holder is unable to exercise the Option or underlying                Warrants, the Option or Warrants, as applicable, will expire                worthless. |
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**North      Shore Acquisition Corp.**

**(a      corporation in the development stage)**

**Notes      to Unaudited Condensed Financial Statement **

| **4.** | **Fair                Value Measurements** | Effective                January 1, 2008, the Company adopted SFAS No. 157, *Fair                Value Measurement*,                for its financial assets and liabilities that are re-measured and                reported                at fair value at each reporting period, and non-financial assets                and                liabilities that are re-measured and reported at fair value at least                annually. In accordance with the provisions of FSP No. FAS 157-2,                *Effective                Date of FASB Statement No. 157,*the                Company has elected to defer implementation of SFAS No. 157 as it                relates                to its non-financial assets and non-financial liabilities that are                recognized and disclosed at fair value in the financial statements                on a                nonrecurring basis until January 1, 2009. The Company is evaluating                the                impact, if any, this standard will have on its non-financial assets                and                liabilities.                                                                                                                                                                                                                                                                                                                                                                                              |
|--------|--------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                       | The                adoption of SFAS No. 157 to the Company’s financial assets and liabilities                and non-financial assets and liabilities that are re-measured and                reported                at fair value at least annually did not have an impact on the Company’s                financial results.  The                following table presents information about the Company’s assets and                liabilities that are measured at fair value on a recurring basis                as of                September 30, 2008, and indicates the fair value hierarchy of the                valuation techniques the Company utilized to determine such fair                value. In                general, fair values determined by Level 1 inputs utilize quoted                prices                (unadjusted) in active markets for identical assets or liabilities.                Fair                values determined by Level 2 inputs utilize data points that are                observable such as quoted prices, interest rates and yield curves.                Fair                values determined by Level 3 inputs are unobservable data points                for the                asset or liability, and includes situations where there is little,                if any,                market activity for the asset or liability:  Financial                Assets at Fair Value as of September 30,                2008 |

|                                                   | ** ** | ** **                 | ** ** | **Quoted Prices****in**  | ** ** | **Significant****Other ** | ** ** | **Significant**                  | ** ** |
|--------------------------------------------------------|------------|----------------------------|------------|-------------------------------|------------|--------------------------------|------------|----------------------------------|------------|
| ** **                                             | ** ** | **September ****30,** | ** ** |  **Active Markets** | ** ** | **Observable ****Inputs** | ** ** | **Unobservable ****Inputs** | ** ** |
| **Description**                                        | ** ** | **2008**                   | ** ** | **(Level 1)**            | ** ** | **(Level 2)**             | ** ** | **(Level 3)**               |       |
| Assets:                                                |       |                       |       |                          |       |                                |       |                             |            |   |   |  |   |
| Cash                equivalents                        |       | $                          | 349,984    |                          | $          | 349,984                        |       | $                                | —    |   | $ | — |   |
| Cash                and cash equivalents held in trust |       |                       | 49,800,020 |                          |       | 49,800,020                     |       |                             | —    |   |   | — |   |
|                                                   |       |                       |       |                          |       |                           |       |                             |            |   |   |  |   |
| Total                                                  |       | $                          | 50,150,004 |                          | $          | 50,150,004                     |       | $                                | —    |   | $ | — |   |

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**North      Shore Acquisition Corp.**

**(a      corporation in the development stage)**

**Notes      to Unaudited Condensed Financial Statement **

|   |            | The                fair values of the Company’s cash equivalents and cash and cash                equivalents held in the Trust Account are determined through market,                observable and corroborated sources.  The                carrying amounts reflected in the consolidated balance sheets for                other                current assets and accrued expenses approximate fair value due to                their                short-term maturities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **5.** | **Commitments** | The                Company presently occupies office space provided by an affiliate                of the                Company’s Chairman of the Board, President, and Vice President. Such                affiliate has agreed that, until the Company consummates a Business                Combination, it will make such office space, as well as certain office                and                secretarial services, available to the Company, as may be required                by the                Company from time to time. The Company has agreed to pay such affiliate                $8,000 per month for such services commencing on the effective date                of the                Proposed Offering.  Pursuant                to letter agreements with the Company and the Underwriter, the Initial                Stockholders have waived their right to receive distributions with                respect                to their founding shares upon the Company's liquidation. All                of the Initial Stockholders purchased 1,600,000 Warrants (“Insider                Warrants”) at $1.00 per Warrant (for an aggregate purchase price of                $1,600,000) privately from the Company upon consummation of the Offering.                All of the proceeds received from these purchases were placed in                the Trust                Account. The Insider Warrants are identical to the Warrants underlying                the                Units being offered in the Proposed Offering except that if the Company                calls the Warrants for redemption, the Insider Warrants may be exercisable                on a “cashless basis,” at the holder’s option (except in the case of a                forced cashless exercise upon the Company’s redemption of the Warrants, as                described above), so long as such securities are held by such purchasers                or their affiliates. Furthermore, the purchasers have agreed that                the                Insider Warrants will not be sold or transferred by them until after                the                Company has completed a Business Combination. The                Initial Stockholders and holders of the Insider Warrants (or underlying                securities) are entitled to registration rights with respect to their                founding shares or Insider Warrants (or underlying securities), as                the                case may be, pursuant to an agreement dated November 30, 2007. The                holders                of the majority of the founding shares are entitled to demand that                the                Company register these shares at any time commencing three months                prior to                the first anniversary of the consummation of a Business Combination.                The                holders of the Insider Warrants (or underlying securities) are entitled                to                demand that the Company register such securities at any time after                the                Company consummates a Business Combination. In addition, the Initial                Stockholders and holders of the Insider Warrants (or underlying                securities) have certain “piggy-back” registration rights on registration                statements filed after the Company’s consummation of a Business                Combination. |

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**North      Shore Acquisition Corp.**

**(a      corporation in the development stage)**

**Notes      to Unaudited Condensed Financial Statement **

| **6.** | **Basic                and Diluted Earnings Per Share** | The                following is a reconciliation of the denominator of the basic and                diluted                earnings per share for the period from January 1, 2008 to September                30,                2008, July 1, 2008 to September 30, 2008 and for the period from                June 26,                2007 (inception) to September 30,                2008. |
|--------|---------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                      |   | July 1, 2008 to September 30, 2008 |       | January 1, 2008 to September 30, 2008 |   | June 26, 2007 (inception) to September 30, 2008 |   |
|---------------------------------------------------------------------------|--------|------------------------------------------------------------------|------------|---------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|
| Weighted                average number of common shares outstanding:      |   |                                                             | 7,941,250  |                                                                |   | 7,947,454                                                                          |   |   | 5,782,783 |   |
| Dilutive                potential common shares outstanding from warrants |   |                                                             | 2,430,083  |                                                                |   | 2,389,092                                                                          |   |   | 1,532,224 |   |
|                                                                      |   |                                                             |       |                                                                |   |                                                                               |   |   |   |   |
| Diluted                weighted average shares                            |   |                                                             | 10,371,333 |                                                                |   | 10,336,546                                                                         |   |   | 7,315,007 |   |

| **7.** | **Preferred                Stock** | The                Company is authorized to issue 1,000,000 shares of preferred stock                with                such designations, voting and other rights and preferences as may                be                determined from time to time by the Board of Directors. The                agreement with the underwriters prohibits the Company, prior to a                Business                Combination, from issuing preferred stock which participates in the                proceeds of the Trust Account or which votes as a class with the                Common                Stock on a Business Combination. |
|--------|------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **8.** | **Common                Stock** | At                September 30, 2008 8,373,000 shares of common stock were reserved                for                issuance upon exercise of the Warrants and the                Option. |
|--------|---------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| **ITEM 2.** | **MANAGEMENT'S                DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF                OPERATION** |
|------------------|---------------------------------------------------------------------------------------------------------------------|

**Forward      Looking Statements**

**Overview**

**Results      of Operations**

**Financial      Condition and Liquidity**

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| **ITEM              3.** | **QUANTITATIVE                AND QUALITATIVE DISCLOSURES ABOUT MARKET                RISK.** |
|--------------------------|-----------------------------------------------------------------------------------------------|

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| **ITEM              4.** | **CONTROLS                AND PROCEDURES.** |
|--------------------------|---------------------------------------------|

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**PART      II. **

**OTHER      INFORMATION**

| **ITEM              2:** | **UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS** |
|--------------------------|-----------------------------------------------------------------------------------------------|

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| **ITEM              6:** | **EXHIBITS** |
|--------------------------|--------------|

|  | (a) | Exhibits: |
|--|-----|-----------|

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**SIGNATURES**

|                          | **NORTH              SHORE              ACQUISITION CORP. **  |
|-------------------------------|-------------------------------------------------------------------------|
|                          |                                                                    |
| Dated: November 5, 2008  |                                                                    |
|                          | /s/                Barry J. Gordon                                      |
|                          | Chairman                and Chief Executive Officer                     |
|                          | (Principal                Executive Officer)                            |
|                          |                                                                    |
|                          | /s/                Marc H. Klee                                         |
|                          | President,                Chief Financial Officer and Secretary         |
|                          | (Principal                Financial and Accounting Officer)             |

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