----

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

----

----

----

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

----

----

| PART I - FINANCIAL INFORMATION |
|--------------------------------|
|                           |   |   |
| ITEM 1.                        | INTERIM FINANCIAL STATEMENTS | 3 |
| ITEM 2.                        | MANAGEMENT'S DISCUSSION OF OPERATIONS AND FINANCIAL CONDITION | 8 |
| ITEM 3                         | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 10 |
| ITEM 4.                        | CONTROLS AND PROCEDURES | 10 |
|                           |   |   |
| PART II - OTHER INFORMATION    |
|                           |   |   |
| ITEM 1.                        | LEGAL PROCEEDINGS | 10 |
| ITEM 1A                        | RISK FACTORS | 11 |
| ITEM 2.                        | UNREGISTERED SALES OF EQUITY SECURITIES | 11 |
| ITEM 3.                        | DEFAULTS UPON SENIOR SECURITIES | 11 |
| ITEM 4.                        | (REMOVED AND RESERVED) | 11 |
| ITEM 5.                        | OTHER INFORMATION | 11 |
| ITEM 6.                        | EXHIBITS | 12 |
|                           |   |   |
| SIGNATURES                     | 13 |

----

|                                                                                                                                                             |   | March 31,2011(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                                                                                                                                                 |   | $                             | 93,392     |   |                           | $      | 85,136 |   |
| Notes payable                                                                                                                                                    |   |                          | 223,902    |   |                           |   | 223,902 |   |
|                                                                                                                                                             |   |                          |       |   |                           |   |   |   |
| Total liabilities                                                                                                                                                |   |                          | 317,294    |   |                           |   | 309,038 |   |
|                                                                                                                                                             |   |                          |       |   |                           |   |   |   |
| Stockholders’ deficit                                                                                                                                      |   |                          |       |   |                           |   |   |   |
| Preferred stock, par value $0.001, 5,000,000 shares authorized, no shares issued and outstanding at March 31, 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 March 31, 2011 and December 31, 2010, respectively |   |                          | 1,000      |   |                           |   | 1,000 |   |
| Additional paid-in capital                                                                                                                                       |   |                          | 9,000      |   |                           |   | 9,000 |   |
| Deficit accumulated during the development stage                                                                                                                 |   |                          | (325,891   | )      |                           |   | (317,635 | ) |
|                                                                                                                                                             |   |                          |       |   |                           |   |   |   |
| Total stockholders’ deficit                                                                                                                                |   |                          | (315,891   | )      |                           |   | (307,635 | ) |
|                                                                                                                                                             |   |                          |       |   |                           |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                |   | $                             | 1,403      |   |                           | $      | 1,403 |   |

----

|                                                   |   | Three Months endedMarch 31 |      |   | CumulativefromAugust 9,2000(Inception)to March 31, |   |
|--------------------------------------------------------|--------|-------------------------------------------|-----------|--------|-------------------------------------------------------------------|--------|
|                                                   |   | 2011                                      |      |   | 2010                                                              |   |   | 2011 |   |
| NET SALES                                              |   | $                                         | -         |   |                                                              | $      | - |   |   | $ | - |   |
|                                                   |   |                                      |      |   |                                                              |   |   |   |   |   |   |   |
| GENERAL AND ADMINISTRATIVE EXPENSES                    |   |                                      | 4,918     |   |                                                              |   | 19,394 |   |   |   | 253,374 |   |
| INTEREST EXPENSE                                       |   |                                      | 3,337     |   |                                                              |   | 13,187 |   |   |   | 62,517 |   |
| IMPAIRMENT OF REORGANIZATION VALUE                     |   |                                      | -         |   |                                                              |   | - |   |   |   | 10,000 |   |
|                                                   |   |                                      |      |   |                                                              |   |   |   |   |   |   |   |
| NET LOSS                                               |   | $                                         | (8,255    | )      |                                                              | $      | (32,581 | ) |   | $ | (325,891 | ) |
|                                                   |   |                                      |      |   |                                                              |   |   |   |   |   |   |   |
| PER SHARE INFORMATION                                  |   |                                      |      |   |                                                              |   |   |   |   |   |   |   |
| Basic and diluted, net loss per share                  |   | $                                         | (.01      | )      |                                                              | $      | (.03 | ) |   |   |   |   |
|                                                   |   |                                      |      |   |                                                              |   |   |   |   |   |   |   |
| Basic and diluted, weighted average shares outstanding |   |                                      | 1,000,000 |   |                                                              |   | 1,000,000 |   |   |   |   |   |

----

|                                                                        |   | Three Months ended March31, |    |   | Cumulativefrom Inception(August 9,2000) to March 31, |   |
|-----------------------------------------------------------------------------|--------|--------------------------------------------|---------|--------|-------------------------------------------------------------------------------|--------|
|                                                                        |   | 2011                                       |    |   | 2010                                                                          |   |   | 2011 |   |
|                                                                        |   |                                       |    |   |                                                                          |   |   |   |   |
| Cash flows relating to operating activities                                 |   |                                       |    |   |                                                                          |   |   |   |   |
| Net loss                                                                    |   | $                                          | (8,255  | )      |                                                                          | $      | (9,250 | ) |   | $ | (325,891 | ) |
| 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                                                |   |                                       | 8,255   |   |                                                                          |   | 7,718 |   |   |   | 93,392 |   |
| Change in prepaid expenses                                                  |   |                                       | -       |   |                                                                          |   | - |   |   |   | (1,000 | ) |
|                                                                        |   |                                       |    |   |                                                                          |   |   |   |   |   |   |   |
| Net cash used in operating activities                                       |   |                                       | -       |   |                                                                          |   | (1,532 | ) |   |   | (223,499 | ) |
|                                                                        |   |                                       |    |   |                                                                          |   |   |   |   |   |   |   |
| Cash flows relating to financing activities                                 |   |                                       |    |   |                                                                          |   |   |   |   |   |   |   |
| Proceeds from notes payable                                                 |   |                                       | -       |   |                                                                          |   | 1,500 |   |   |   | 223,902 |   |
|                                                                        |   |                                       |    |   |                                                                          |   |   |   |   |   |   |   |
| Net cash provided by financing activities                                   |   |                                       | -       |   |                                                                          |   | 1,500 |   |   |   | 223,902 |   |
|                                                                        |   |                                       |    |   |                                                                          |   |   |   |   |   |   |   |
| Increase (decrease) in cash                                                 |   |                                       | -       |   |                                                                          |   | (32 | ) |   |   | 403 |   |
| 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                                |   | $                                          | — |   |                                                                          | $      | — |   |   |   |   |   |

----

----

----

----

| Line Item                 |   | 3/31//11(unaudited) |    |   | 3/31/10(unaudited) |   |    | Increase(Decrease) |   |   | PercentageIncrease(Decrease) |   |
|--------------------------------|--------|---------------------|---------|--------|--------------------|--------|---------|--------------------|--------|--------|------------------------------|--------|
|                           |   |                |    |   |               |   |    |               |   |   |                         |   |
| Revenues                       |   |                | — |   |               |   | — |               |   |   | —                      |   |   |   | — |   |
| Operating expenses             |   |                | 4,918   |   |               |   | 6,030   |               |   |   | (1,112                       | )      |   |   | (18.4 | )% |
| Net loss                       |   |                | 8,255   |   |               |   | 9,250   |               |   |   | (995                         | )      |   |   | (10.8 | )% |
| Loss per share of common stock |   | $                   | (0.01   | )      |               | $      | (0.01   | )                  |   |   | -                            |   |   |   | - |   |

----

----

----

| 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: May 12, 2011 | By:       | /s/ John M. Sharpe, Jr. |
|               |                |
|               | John M. Sharpe, Jr. |
|               | President           |

| 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. |

----