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| New York                |   | 11-3447096                           |
|-------------------------|--------|--------------------------------------|
| (State of organization) |   | (I.R.S. Employer Identification No.) |

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| Large Accelerated Filer  ̈ |   | Accelerated Filer  ̈ |   | Non-Accelerated Filer  ̈ (Do not check if a smaller reporting company) |   | Smaller Reporting Company þ |
|--------------------------------|--------|--------------------------|--------|----------------------------------------------------------------------------|--------|----------------------------------|

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| PART I - FINANCIAL INFORMATION | 1                                                             |
|--------------------------------|---------------------------------------------------------------|
|                           |                                                          |   |
| ITEM 1.                        | INTERIM FINANCIAL STATEMENTS                                  | 1 |
| ITEM 2.                        | MANAGEMENT'S DISCUSSION OF OPERATIONS AND FINANCIAL CONDITION | 6 |
| ITEM 3                         | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK    | 8 |
| ITEM 4.                        | CONTROLS AND PROCEDURES                                       | 8 |
|                           |                                                          |   |
| PART II - OTHER INFORMATION    | 9                                                             |
|                           |                                                          | 9 |
| ITEM 1.                        | LEGAL PROCEEDINGS                                             | 9 |
| ITEM 1A                        | RISK FACTORS                                                  | 9 |
| ITEM 2.                        | UNREGISTERED SALES OF EQUITY SECURITIES                       | 9 |
| ITEM 3.                        | DEFAULTS UPON SENIOR SECURITIES                               | 9 |
| ITEM 4.                        | (REMOVED AND RESERVED)                                        | 9 |
| ITEM 5.                        | OTHER INFORMATION                                             | 9 |
| ITEM 6.                        | EXHIBITS                                                      | 10 |
|                           |                                                          |   |
| SIGNATURES                     |                                                          | 10 |

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|                                                                                                                                                            |   | June 30, 2011(unaudited) |       |   | December 31,2010(audited) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|--------|--------------------------------|--------|
|                                                                                                                                                            |   |                               |       |   |                           |   |   |   |
| ASSETS                                                                                                                                                          |   |                               |       |   |                           |   |   |   |
|                                                                                                                                                            |   |                               |       |   |                           |   |   |   |
| Current assets                                                                                                                                                  |   |                               |       |   |                           |   |   |   |
| Cash                                                                                                                                                            |   | $                                  | 403        |   |                           | $      | 403 |   |
| Prepaid expenses                                                                                                                                                |   |                               |  1000 |   |                           |   |  1,000 |   |
|                                                                                                                                                            |   |                               |       |   |                           |   |   |   |
| Total current assets                                                                                                                                            |   |                               | 1,403      |   |                           |   | 1,403 |   |
|                                                                                                                                                            |   |                               |       |   |                           |   |   |   |
| TOTAL ASSETS                                                                                                                                                    |   | $                                  | 1,403      |   |                           | $      | 1,403 |   |
|                                                                                                                                                            |   |                               |       |   |                           |   |   |   |
| LIABILITIES & STOCKHOLDERS’ DEFICIT                                                                                                                   |   |                               |       |   |                           |   |   |   |
|                                                                                                                                                            |   |                               |       |   |                           |   |   |   |
| Current liabilities                                                                                                                                             |   |                               |       |   |                           |   |   |   |
| Accrued expenses                                                                                                                                                |   | $                                  | 101,555    |   |                           | $      | 85,136 |   |
| Notes payable                                                                                                                                                   |   |                               | 223,902    |   |                           |   | 223,902 |   |
|                                                                                                                                                            |   |                               |       |   |                           |   |   |   |
| Total liabilities                                                                                                                                               |   |                               | 325,457    |   |                           |   | 309,038 |   |
|                                                                                                                                                            |   |                               |       |   |                           |   |   |   |
| Stockholders’ deficit                                                                                                                                     |   |                               |       |   |                           |   |   |   |
| Preferred stock, par value $0.001, 5,000,000 shares authorized, no shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively           |   |                               | —    |   |                           |   | — |   |
| Common stock, par value $0.001, 20,000,000 shares authorized, 1,000,000 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively |   |                               | 1,000      |   |                           |   | 1,000 |   |
| Additional paid-in capital                                                                                                                                      |   |                               | 9,000      |   |                           |   | 9,000 |   |
| Deficit accumulated during the development stage                                                                                                                |   |                               | (334,054   | )      |                           |   | (317,635 | ) |
|                                                                                                                                                            |   |                               |       |   |                           |   |   |   |
| Total stockholders’ deficit                                                                                                                               |   |                               | (324,054   | )      |                           |   | (307,635 | ) |
|                                                                                                                                                            |   |                               |       |   |                           |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                               |   | $                                  | 1,403      |   |                           | $      | 1,403 |   |

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|                                                   |   | Three Months endedJune 30 |      |   | Six Months endedJune 30, |   |        | CumulativefromAugust 9,2000(Inception)to June 30, |   |
|--------------------------------------------------------|--------|------------------------------------------|-----------|--------|-----------------------------------------|--------|-------------|------------------------------------------------------------------|--------|
|                                                   |   | 2011                                     |      |   | 2010                                    |   |        | 2011                                                             |   |   | 2010 |   |   | 2011 |   |
| NET SALES                                              |   | $                                        | -         |   |                                    | $      | -           |                                                             |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                   |   |                                     |      |   |                                    |   |        |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| GENERAL AND ADMINISTRATIVE EXPENSES                    |   |                                     | 4,789     |   |                                    |   | 1,899       |                                                             |   |   | 9,707 |   |   |   | 7,929 |   |   |   | 258,163 |   |
| INTEREST EXPENSE                                       |   |                                     | 3,374     |   |                                    |   | 3,243       |                                                             |   |   | 6,711 |   |   |   | 6,463 |   |   |   | 65,891 |   |
| IMPAIRMENT OF REORGANIZATION VALUE                     |   |                                     | -         |   |                                    |   | -           |                                                             |   |   | - |   |   |   | - |   |   |   | 10,000 |   |
|                                                   |   |                                     |      |   |                                    |   |        |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| NET LOSS                                               |   | $                                        | (8,163    | )      |                                    | $      | (5,142      | )                                                                |   | $ | (16,418 | ) |   | $ | (14,392 | ) |   | $ | (334,054 | ) |
|                                                   |   |                                     |      |   |                                    |   |        |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| PER SHARE INFORMATION                                  |   |                                     |      |   |                                    |   |        |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted, net loss per share                  |   | $                                        | (.01      | )      |                                    | $      | (.01        | )                                                                |   | $ | (.02 | ) |   | $ | (.01 | ) |   |   |   |   |
|                                                   |   |                                     |      |   |                                    |   |        |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted, weighted average shares outstanding |   |                                     | 1,000,000 |   |                                    |   | 1, 000, 000 |                                                             |   |   | 1,000,000 |   |   |   | 1,000,000 |   |   |   |   |   |

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|                                                                        |   | Six Months ended June 30, |    |   | Cumulativefrom Inception(August 9,2000) to June 30, |   |
|-----------------------------------------------------------------------------|--------|-----------------------------------------------|---------|--------|--------------------------------------------------------------------|--------|
|                                                                        |   | 2011                                          |    |   | 2010                                                               |   |   | 2011 |   |
|                                                                        |   |                                          |    |   |                                                               |   |   |   |   |
| Cash flows relating to operating activities                                 |   |                                          |    |   |                                                               |   |   |   |   |
| Net loss                                                                    |   | $                                             | (16,418 | )      |                                                               | $      | (14,392 | ) |   | $ | (334,054 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                                          |    |   |                                                               |   |   |   |   |   |   |   |
| Impairment of reorganization value                                          |   |                                          | — |   |                                                               |   | — |   |   |   | 10,000 |   |
| Change in operating liabilities:                                            |   |                                          |    |   |                                                               |   |   |   |   |   |   |   |
| Increase in accrued expenses                                                |   |                                          | 16,418  |   |                                                               |   | 8,736 |   |   |   | 101,555 |   |
| Change in prepaid expenses                                                  |   |                                          | -       |   |                                                               |   |   |   |   |   | (1,000 | ) |
|                                                                        |   |                                          |    |   |                                                               |   |   |   |   |   |   |   |
| Net cash used in operating activities                                       |   |                                          | -       |   |                                                               |   | (5,656 | ) |   |   | (223,499 | ) |
|                                                                        |   |                                          |    |   |                                                               |   |   |   |   |   |   |   |
| Cash flows relating to financing activities                                 |   |                                          |    |   |                                                               |   |   |   |   |   |   |   |
| Proceeds from notes payable                                                 |   |                                          | -       |   |                                                               |   | 5,624 |   |   |   | 223,902 |   |
|                                                                        |   |                                          |    |   |                                                               |   |   |   |   |   |   |   |
| Net cash provided by financing activities                                   |   |                                          | -       |   |                                                               |   | 5,624 |   |   |   | 223,902 |   |
|                                                                        |   |                                          |    |   |                                                               |   |   |   |   |   |   |   |
| Increase (decrease) in cash                                                 |   |                                          | -       |   |                                                               |   | (32 | ) |   |   | - |   |
| Cash, beginning of period                                                   |   |                                          | 403     |   |                                                               |   | 3,074 |   |   |   | — |   |
|                                                                        |   |                                          |    |   |                                                               |   |   |   |   |   |   |   |
| Cash, end of period                                                         |   | $                                             | 403     |   |                                                               | $      | 3,042 |   |   | $ | 403 |   |
|                                                                        |   |                                          |    |   |                                                               |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information                            |   |                                          |    |   |                                                               |   |   |   |   |   |   |   |
| Cash paid during the period for interest                                    |   | $                                             | — |   |                                                               | $      | — |   |   |   |   |   |
| Cash paid during the period for income taxes                                |   | $                                             | — |   |                                                               | $      | — |   |   |   |   |   |

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| Line Item                 |   | 6/30//11(unaudited) |    |   | 6/30/10(unaudited) |   |    | Increase(Decrease) |   |   | PercentageIncrease(Decrease) |   |
|--------------------------------|--------|---------------------|---------|--------|--------------------|--------|---------|--------------------|--------|--------|------------------------------|--------|
|                           |   |                |    |   |               |   |    |               |   |   |                         |   |
| Revenues                       |   |                | — |   |               |   | — |               |   |   | —                      |   |   |   | — |   |
| Operating expenses             |   |                | 4,789   |   |               |   | 1,889   |               |   |   | 2,900                        |   |   |   | 153.5 | % |
| Net loss                       |   |                | 8,163   |   |               |   | 5,142   |               |   |   | 3,021                        |   |   |   | 58.8 | % |
| Loss per share of common stock |   | $                   | (0.01   | )      |               | $      | (0.01   | )                  |   |   | -                            |   |   |   | - |   |

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| Line Item                 |   | 6/30//11(unaudited) |    |   | 6/30/10(unaudited) |   |    | Increase(Decrease) |   |   | PercentageIncrease(Decrease) |   |
|--------------------------------|--------|---------------------|---------|--------|--------------------|--------|---------|--------------------|--------|--------|------------------------------|--------|
|                           |   |                |    |   |               |   |    |               |   |   |                         |   |
| Revenues                       |   |                | — |   |               |   | — |               |   |   | —                      |   |   |   | — |   |
| Operating expenses             |   |                | 9,707   |   |               |   | 7,929   |               |   |   | 1,778                        |   |   |   | 22.4 | % |
| Net loss                       |   |                | 16,418  |   |               |   | 14,392  |               |   |   | 2,026                        |   |   |   | 14.1 | % |
| Loss per share of common stock |   | $                   | (0.02   | )      |               | $      | (0.01   | )                  |   |   | 0.01                         |   |   |   | - |   |

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| ITEM 1. | LEGAL PROCEEDINGS |
|---------|-------------------|

| ITEM 1A.  | RISK FACTORS. |
|----------------|---------------|

| ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES |
|---------|-----------------------------------------|

| ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
|---------|---------------------------------|

| ITEM 4. | (REMOVED AND RESERVED) |
|---------|------------------------|

| ITEM 5. | OTHER INFORMATION |
|---------|-------------------|

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| ITEM 6. | EXHIBITS |
|---------|----------|

| Exhibit No. |   | Description                                                                                                                                                                                      |
|------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                             |
| 31.1             |   | Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                    |
| 31.2             |   | Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                    |
| 32.1             |   | Certification of Principal Executive Officer and Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

|                  | INNER SYSTEMS, INC. |
|-----------------------|---------------------|
|                  |                |
| Date: August 15, 2011 | By:                 | /s/ John M. Sharpe, Jr. |
|                  |                | John M. Sharpe, Jr. |
|                  |                | President |

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| Exhibit No. |   | Description                                                                                                                                                                                      |
|------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|             |   |                                                                                                                                                                                             |
| 31.1             |   | Certification of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                    |
| 31.2             |   | Certification of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                    |
| 32.1             |   | Certification of Principal Executive Officer and Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |

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