| x      |   | Quarterly                report under Section 13 or 15(d) of the Securities Exchange Act of                1934 |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                            |
|   |   | For                the quarterly period ended June                30, 2008                                      |
|   |   |                                                                                                            |
|  ̈ |   | Transition                report under Section 13 or 15(d) of the Exchange Act                                  |
|   |   |                                                                                                            |
|   |   | For                the transition period from _____________ to                _____________                     |

| Delaware                                                                                     | 26-0433980                                                         |
|----------------------------------------------------------------------------------------------|--------------------------------------------------------------------|
| (State                or other Jurisdiction of Incorporation                or Organization) | (I.R.S.                Employer Identification                No.) |

| 175                Great Neck Road, Suite 204, Great Neck, New York                11021 |
|------------------------------------------------------------------------------------------|
| (Address                of Principal Executive Office)                                   |

|        | Large accelerated filer  ̈                                        |   | Accelerated filer  ̈  |
|--------|-----------------------------------------------------------------------|--------|--------------------------------|
|   | Non-accelerated filer  ̈                                          |   | Smaller reporting company x    |
|   | (Do not check if smaller              reporting              company) |        |

----

|                                                                                                            |   |   | Page   |   |
|------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Part                I: Financial Information:                                                              |   |   |   |   |
|                                                                                                       |   |   |   |   |
| Item                1 - Financial Statements:                                                              |   |   |   |   |
|                                                                                                       |   |   |   |   |
| Condensed                Balance Sheets                                                                    |   |   | 3      |   |
|                                                                                                       |   |   |   |   |
| Unaudited                Condensed Statements of Operations                                                |   |   | 4      |   |
|                                                                                                       |   |   |   |   |
| Unaudited                Condensed Statements of Stockholders’ Equity                                |   |   | 5      |   |
|                                                                                                       |   |   |   |   |
| Unaudited                Condensed Statements of Cash Flows                                                |   |   | 6      |   |
|                                                                                                       |   |   |   |   |
| Notes                to Unaudited Condensed Financial Statements                                           |   |   | 7      |   |
|                                                                                                       |   |   |   |   |
| Item                2 - Management’s Discussion and Analysis or Results of                Operations |   |   | 17     |   |
|                                                                                                       |   |   |   |   |
| Item                4 - Controls and Procedures                                                            |   |   | 19     |   |
|                                                                                                       |   |   |   |   |
| Part                II. Other Information                                                                  |   |   |   |   |
|                                                                                                       |   |   |   |   |
| Item                2 - Unregistered Sales of Equity Securities and Use of                Proceeds         |   |   | 20     |   |
|                                                                                                       |   |   |   |   |
| Item                6 - Exhibits                                                                           |   |   | 21     |   |
|                                                                                                       |   |   |   |   |
| Signatures                                                                                                 |   |   | 22     |   |

----

**North        Shore Acquisition Corp.**

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

**Condensed        Balance Sheets**

----

|                                                                                                                                                                                                                             |   | June                30, |       | December                31, |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|------------|-----------------------------|--------|
|                                                                                                                                                                                                                             |   | 2008                    |       | 2007                        |   |
|                                                                                                                                                                                                                             |   | (unaudited)             |       | (audited)                   |   |
| **ASSETS**                                                                                                                                                                                                                       |   |                    |       |                        |   |
| **Current                Assets:**                                                                                                                                                                                               |   |                    |       |                        |   |
| Cash                and cash equivalents                                                                                                                                                                                         |   | $                       | 192,751    |                        | $      | 107,863 |   |
| Prepaid                expenses and other current assets                                                                                                                                                                         |   |                    | 94,959     |                        |   | 92,461 |   |
|                                                                                                                                                                                                                             |   |                    |            |                        |   |  |   |
| **Total                Current Assets**                                                                                                                                                                                          |   |                    | 287,710    |                        |   | 200,324 |   |
|                                                                                                                                                                                                                             |   |                    |            |                        |   |  |   |
| Other                asset, cash held in Trust Fund (Note 1)                                                                                                                                                                     |   |                    | 49,852,035 |                        |   | 49,411,768 |   |
|                                                                                                                                                                                                                             |   |                    |            |                        |   |  |   |
| **Total                Assets**                                                                                                                                                                                                  |   | $                       | 50,139,745 |                        | $      | 49,612,092 |   |
|                                                                                                                                                                                                                             |   |                    |            |                        |   |  |   |
| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                                                                          |   |                    |       |                        |   |   |   |
|                                                                                                                                                                                                                             |   |                    |            |                        |   |  |   |
| **Current                Liabilities:**                                                                                                                                                                                          |   |                    |       |                        |   |   |   |
| Income                taxes payable                                                                                                                                                                                              |   | $                       | —    |                        | $      | 54,500 |   |
| Accrued                Expenses                                                                                                                                                                                                  |   |                    | 14,657     |                        |   | 17,500 |   |
| Accounts                Payable                                                                                                                                                                                                  |   |                    | 5,519      |                        |   | 15,740 |   |
|                                                                                                                                                                                                                             |   |                    |       |                        |   |   |   |
| **Total                Current Liabilities**                                                                                                                                                                                     |   |                    | 20,176     |                        |   | 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                                                                                                                                                                |   |                    | 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 June 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                                                                                                                                                                                        |   |                    | 28,505,878 |                        |   | 28,273,076 |   |
| Income                accumulated during the development stage                                                                                                                                                                   |   |                    | 210,922    |                        |   | 24,866 |   |
|                                                                                                                                                                                                                             |   |                    |            |                        |   |  |   |
| Total                stockholders' equity                                                                                                                                                                                        |   |                    | 28,717,594 |                        |   | 28,298,754 |   |
|                                                                                                                                                                                                                             |   |                    |            |                        |   |  |   |
| Total                liabilities and stockholders' equity                                                                                                                                                                        |   | $                       | 50,139,745 |                        | $      | 49,612,092 |   |

*See        notes to unaudited condensed financial statements.*

----

**North        Shore Acquisition Corp.**

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

**Unaudited        Condensed Statements of Operations**

----

|                                                        |   | Period                from April,                1 2008 to |       | Period                from June                26, 2007(date                of inception) to |   | Period                from January                1, 2008 to |   | Period                from June                  26, 2007(date                of inception) to |       |
|-------------------------------------------------------------|--------|-----------------------------------------------------------------|------------|----------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|------------------------------------------------------------------------------------------------|------------|
|                                                        |   | June                30, 2008                                    |       | June                  30, 2007                                                               |   | June                  30, 2008                                    |   | June                  30, 2008                                                                 |       |
| Revenue                                                     |   | $                                                               | —    |                                                                                         | $      | —                                                           |   | $                                                                                              | —    |   | $ | — |   |
| Formation                and operating expenses             |   |                                                            | 59,609     |                                                                                         |   | 2,500                                                             |   |                                                                                           | 124,180    |   |   | 173,709 |   |
| Loss                from operations                         |   |                                                            | (59,609    | )                                                                                            |   | (2,500                                                            | )      |                                                                                           | (124,180   | ) |   | (173,709 | ) |
| Other                income, interest                       |   |                                                            | 211,736    |                                                                                         |   | —                                                           |   |                                                                                           | 533,824    |   |   | 662,718 |   |
| Income                before income tax expense             |   |                                                            | 152,127    |                                                                                         |   | (2,500                                                            | )      |                                                                                           | 409,644    |   |   | 489,009 |   |
| Income                tax expense                           |   |                                                            | 84,593     |                                                                                         |   | —                                                           |   |                                                                                           | 223,587    |   |   | 278,087 |   |
| Net                income applicable to common stockholders |   | $                                                               | 67,534     |                                                                                         | $      | (2,500                                                            | )      | $                                                                                              | 187,057    |   | $ | 210,922 |   |
|                                                        |   |                                                            |       |                                                                                         |   |                                                              |   |                                                                                           |       |   |   |   |   |
| Weighted                average shares outstanding          |   |                                                            |       |                                                                                         |   |                                                              |   |                                                                                           |       |   |   |   |   |
| Basic                                                       |   |                                                            | 7,941,250  |                                                                                         |   | 1,811,250                                                         |   |                                                                                           | 7,950,591  |   |   | 5,247,530 |   |
| Diluted                                                     |   |                                                            | 10,342,780 |                                                                                         |   | 1,811,250                                                         |   |                                                                                           | 10,318,742 |   |   | 6,556,928 |   |
|                                                        |   |                                                            |       |                                                                                         |   |                                                              |   |                                                                                           |       |   |   |   |   |
| Net                income per share, basic                  |   | $                                                               | 0.01       |                                                                                         | $      | (0.00                                                             | )      | $                                                                                              | 0.02       |   | $ | 0.04 |   |
| Net                income per share, diluted                |   | $                                                               | 0.01       |                                                                                         | $      | (0.00                                                             | )      | $                                                                                              | 0.02       |   | $ | 0.03 |   |

*See        notes to unaudited condensed financial statements.*

----

**North        Shore Acquisition Corp.**

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

**Unaudited        Condensed Statements of Stockholders’ Equity**

----

|                                                                                                                                                                  |   | Common                Stock |         |   |   |                                                          |   |                                                           |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------------|--------|--------|----------------------------------------------------------|--------|----------------------------------------------------------------|-------------|
|                                                                                                                                                                  |   | Shares                      |         | Amount |   | Additional                Paid-In                Capital |   | Income                accumulated during the 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                                                                                                                              |   |                        |    |   |   | —                                                  |   |                                                           | —     |   |   | 24,865 |   |   | 24,865 |   |
|                                                                                                                                                                  |   |                        |         |   |   |                                                     |   |                                                           |        |   |   |   |   |   |   |   |
| Balance,                December 31, 2007                                                                                                                             |   |                        | 8,111,250    |   | $      | 811                                                      |   | $                                                              | 28,273,077  |   | $ | 24,865 |   | $ | 28,298,753 |   |
|                                                                                                                                                                  |   |                        |         |   |   |                                                     |   |                                                           |        |   |   |   |   |   |   |   |
| Sale                of 53,000 units (includes 21,199 shares subject to possible                redemption)                                                            |   |                        | 53,000       |   |   | 5                                                        |   |                                                           | 396,435     |   |   |   |   |   | 396,440 |   |
|                                                                                                                                                                  |   |                        |         |   |   |                                                     |   |                                                           |        |   |   |   |   |   |   |   |
| Proceeds                subject to possible redemption of 21,199 shares                                                                                               |   |                        | —      |   |   | —                                                  |   |                                                           | (163,656    | ) |   |   |   |   | (163,656 | ) |
|                                                                                                                                                                  |   |                        |         |   |   |                                                     |   |                                                           |        |   |   |   |   |   |   |   |
| Forfeiture                of shares of common stock by initial stockholders                                                                                           |   |                        | (223,000     | )      |   | (22                                                      | )      |                                                           | 22          |   |   |   |   |   | — |   |
|                                                                                                                                                                  |   |                        |         |   |   |                                                     |   |                                                           |        |   |   |   |   |   |   |   |
| Net                income for the period                                                                                                                              |   |                        |         |   |   | —                                                  |   |                                                           | —     |   |   | 186,057 |   |   | 187,057 |   |
|                                                                                                                                                                  |   |                        |         |   |   |                                                     |   |                                                           |        |   |   |   |   |   |   |   |
| Balance,                June 30, 2008                                                                                                                                 |   |                        | 7,941,250    |   | $      | 794                                                      |   | $                                                              | 28,505,878  |   | $ | 210,922 |   | $ | 28,717,594 |   |

*See      notes to unaudited condensed financial statements.*

----

**North        Shore Acquisition Corp.**

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

**Unaudited        Condensed Statements of Cash Flows**

----

|                                                                                                          |   | *For                the period*        |     | *For                the period**from* |   | *For                the period**from* |   |
|---------------------------------------------------------------------------------------------------------------|--------|----------------------------------------|----------|---------------------------------------|--------|---------------------------------------|--------|
|                                                                                                          |   | *from*                                 |     | *July                26, 2007*        |   | *June                26, 2007*        |   |
|                                                                                                          |   | * January                1, 2008* |     | *(date                of inception)*  |   | *(date                of inception)*  |   |
|                                                                                                          |   | *to*                                   |     | *to*                                  |   | *to*                                  |   |
|                                                                                                          |   | *June                30, 2008*         |     | *June                30, 2007*        |   | *June                30, 2008*        |   |
| **Cash                Flows from Operating Activities**                                                       |   |                                   |     |                                  |   |                                  |   |
| Net                income                                                                                     |   | $                                      | 186,057  |                                  | $      | (2,500                                | )      | $ | 210,922 |   |
| Adjustment                to reconcile net income to net cash provided by operating                activities |   |                                   |          |                                  |   |                                       |   |   |  |   |
| Changes                in operating assets and liabilities:                                                   |   |                                   |     |                                  |   |                                  |   |   |   |   |
| Prepaid                expenses and other current assets                                                      |   |                                   | (2,498   | )                                |   | —                               |   |   | (94,959 | ) |
| Income                taxes payable                                                                           |   |                                   | (54,500  | )                                     |   | —                               |   |   | — |   |
| Accrued                expenses                                                                               |   |                                   | (2,844   | )                                     |   | 2,500                                 |   |   | 14,656 |   |
| Accounts                payable                                                                               |   |                                   | (10,220  | )                                     |   | —                               |   |   | 5,520 |   |
|                                                                                                          |   |                                   |     |                                  |   |                                  |   |   |   |   |
| Net                cash provided by operating activities                                                      |   |                                   | 115,995  |                                  |   | —                               |   |   | 136,139 |   |
|                                                                                                          |   |                                   |     |                                  |   |                                  |   |   |   |   |
| **Net                cash used in Investing Activities**                                                      |   |                                   |          |                                  |   |                                       |   |   |  |   |
|                                                                                                          |   |                                   |     |                                  |   |                                  |   |   |   |   |
| Cash                held in Trust Fund                                                                        |   |                                   | (440,267 | )                                     |   | —                               |   |   | (49,852,035 | ) |
|                                                                                                          |   |                                   |     |                                  |   |                                  |   |   |   |   |
| **Cash                Flows from Financing Activities**                                                       |   |                                   |          |                                  |   |                                       |   |   |  |   |
| Gross                proceeds of common stock public offering                                                 |   |                                   | 424,000  |                                  |   | —                               |   |   | 50,824,000 |   |
| Proceeds                from notes payable, shareholder                                                       |   |                                   | —  |                                  |   | 37,500                                |   |   | 100,000 |   |
| Payment                of notes payable, shareholder                                                          |   |                                   | —  |                                  |   | —                               |   |   | (100,000 | ) |
| Proceeds                from the issuance of common stock to initial stockholders                             |   |                                   | —  |                                  |   | —                               |   |   | 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  | )                                     |   | (37,500                               | )      |   | (2,540,453 | ) |
|                                                                                                          |   |                                   |          |                                  |   |                                       |   |   |  |   |
| Net                cash provided by financing activities                                                      |   |                                   | 409,160  |                                  |   | —                               |   |   | 49,908,647 |   |
|                                                                                                          |   |                                   |          |                                  |   |                                       |   |   |  |   |
| Net                increase in cash and cash equivalents                                                      |   |                                   | 84,888   |                                  |   | —                               |   |   | 192,751 |   |
| Cash                and cash equivalents at the beginning of the period                                       |   |                                   | 107,863  |                                  |   | —                               |   |   | — |   |
|                                                                                                          |   |                                   |     |                                  |   |                                  |   |   |   |   |
| Cash                and cash equivalents at the end of the period                                             |   | $                                      | 192,751  |                                  | $      | —                               |   | $ | 192,751 |   |
|                                                                                                          |   |                                   |          |                                  |   |                                       |   |   |  |   |
| Supplemental                disclosure of cash flow information                                               |   |                                   |     |                                  |   |                                  |   |   |   |   |
| Cash                paid during the period for:                                                               |   |                                   |          |                                  |   |                                       |   |   |  |   |
| Taxes                                                                                                         |   | $                                      | 313,087  |                                  | $      | —                               |   | $ | — |   |
|                                                                                                          |   |                                   |          |                                  |   |                                       |   |   |  |   |
| Non                cash financing activity:                                                                   |   |                                   |     |                                  |   |                                  |   |   |   |   |
| Deferred                underwriter's fee                                                                     |   | $                                      | 12,720   |                                  | $      | —                               |   | $ | 1,524,720 |   |

*See        notes to unaudited 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 June 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                reflecting sale of additional units reflecting the 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 $49,852,035 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 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 June 30, 2008, the Company had earned                $531,108 of interest on the Trust Account since inception, which                is                included in the cash held in Trust Fund of the balance sheet less                $500,000                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. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**North        Shore Acquisition Corp.**

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

**Notes        to Unaudited Condensed Financial Statement **

|   |   | 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 June 30, 2008 and December 31, 2007 balance                sheet. 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). |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **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). ***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." |
|--------|------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

**North        Shore Acquisition Corp.**

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

**Notes        to Unaudited Condensed Financial Statement**

|   |   | ***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 sheet. ***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. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**North        Shore Acquisition Corp.**

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

**Notes        to Unaudited Condensed Financial Statement**

|   |   | 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. ***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.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.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 $7.82 at June 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 implemented 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                June 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                June 30, 2008** |   |
|--------------------------------------------------------------------------------------|--------|
|                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                 |   | **June                30,** |   | **Quoted                Prices in Active Markets** |   | **Significant                Other Observable**** Inputs** |   | **Significant                Unobservable Inputs** |   |
|                                                                                 |   | **2008** |   | **(Level                1)** |   | **(Level 2)** |   | **(Level 3)** |   |
| **Description**                                                                      |   |   |   |   |   |   |   |   |   |
| Assets:                                                                              |   |   |   |   |   |   |   |   |   |
| Cash                equivalents                                                      |   | $ | 192,751 |   | $ | 192,751 |   | $ | — |   | $ | — |   |
| Cash                held in trust                                                    |   |   | 49,852,035 |   |   | 49,852,035 |   |   | — |   |   | — |   |
|                                                                                 |   |   |  |   |   |  |   |   |  |   |   |  |   |
| Total                                                                                |   | $ | 50,044,786 |   | $ | 50,044,786 |   | $ | — |   | $ | — |   |

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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.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
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|   |            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **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 June 30,                2008                and for the period from June 26, 2007 (inception) to June 30,                2008. |
|--------|---------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                      |   | Period                from April 1, 2008to                June 30, 2008 |       |  January                1, 2008 to June 30, 2008  |   |  June                26, 2007 (inception) to June 30, 2008  |   |
|---------------------------------------------------------------------------|--------|-------------------------------------------------------------------------|------------|-------------------------------------------------------------|--------|-----------------------------------------------------------------------|--------|
| Weighted                average number of common shares outstanding:      |   |                                                                    | 7,941,250  |                                                        |   | 7,950,591                                                             |   |   | 5,247,530 |   |
| Dilutive                potential common shares outstanding from warrants |   |                                                                    | 2,401,530  |                                                        |   | 2,368,151                                                             |   |   | 1,309,398 |   |
|                                                                      |   |                                                                    |       |                                                        |   |                                                                  |   |   |   |   |
| Diluted                weighted average shares                            |   |                                                                    | 10,342,780 |                                                        |   | 10,318,742                                                            |   |   | 6,556,928 |   |

| **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                June                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 OR PLAN OF OPERATION**

**Forward      Looking Statements**

**Overview**

**Results      of Operations**

**Financial      Condition and Liquidity**

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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: |
|--|-----|-----------|
|   |   |   |
|--------|--------|--------|
|   |   | 31.1                - Section 302 Certification by CEO |
|--------|--------|--------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   |   | 31.2                - Section 906 Certification by CFO |
|--------|--------|--------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   |   | 32.1                - Section 302 Certification by CEO |
|--------|--------|--------------------------------------------------------|
|   |   |   |
|--------|--------|--------|
|   |   | 32.2                - Section 906 Certification by CFO |
|--------|--------|--------------------------------------------------------|

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**SIGNATURES**

|                                      |                                                                                            | **NORTH                SHORE ACQUISITION CORP.** |
|-------------------------------------------|-------------------------------------------------------------------------------------------------|--------------------------------------------------|
|                                      |                                                                                            |                                             |
|  Dated:              August 13, 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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