SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________  FORM 10-Q  QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934  For Quarter Ended: September 30, 2010  Commission File Number: 0-52561  Anoteros, Inc. (Exact name of registrant as specified in its charter)  NEVADA88-0368849(State or other Jurisdiction of(IRS Employerof Incorporation or Organization)Identification No.)  2445 Fifth Avenue, Suite 440, San Diego, California92101(Address of principal executive offices)(Zip Code)  (619) 239-2900 (Registrants Telephone Number, Including Area Code)  Indicated by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X. No .  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.  Large accelerated filer.Accelerated filer.Non-accelerated filer. (Do not check if a smaller reporting company)Smaller reporting companyX.  Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes . No X.  Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date. As of October 8, 2010, there were 3,294,056 shares of the issuer's Common Stock, $0.001 par value, issued and outstanding.   ANOTEROS INC. AND SUBSIDIARY Report on Form 10-Q   PART I  FINANCIAL INFORMATIONItem 1.Financial Statement3Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations15Item 3.Quantitative and Qualitative Disclosure About Market Risk17Item 4.Controls and Procedures18PART II  OTHER INFORMATIONItem 1.Legal Proceedings18Item 1A.Risk Factors18Item 2.Unregistered Sales of Equity Securities and Use of Proceeds18Item 3.Default Upon Senior Securities19Item 4.Other Information19Item 5.Exhibits19    Page 2   PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS.  ANOTEROS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Balance Sheets  ASSETSSeptember 30.December 31,20102009(Unaudited)CURRENT ASSETSCash$669$349Inventory2,9923,605Total Current Assets3,6613,954OTHER ASSETSArtwork31,91531,915Total Other Assets31,91531,915TOTAL ASSETS$35,576$35,869LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)CURRENT LIABILITIESAccounts payable and accrued expenses$7$-Accounts payable and accrued expenses - related party30,65411,959Note payable - related party154,276133,584Accrued interest payable - related party54,15845,397Total Current Liabilities239,095190,940TOTAL LIABILITIES239,095190,940STOCKHOLDERS' EQUITY (DEFICIT)Preferred stock: 25,000,000 shares authorized;$0.001 par value; -0- shares issued and outstanding--Common stock: 100,000,000 shares authorized;$0.001 par value; 3,294,056 shares issuedand outstanding3,2943,294Additional paid-in capital362,029362,029Deficit accumulated during the development stage(568,842)(520,394)Total Stockholders' Equity (Deficit)(203,519)(155,071)TOTAL LIABILITIES AND STOCKHOLDERS'EQUITY (DEFICIT)$35,576$35,869   The accompanying notes are an integral part of these consolidated financial statements.  Page 3    ANOTEROS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Statements of Operations (Unaudited)


|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|--------------------------------------------- | ------------------------------------- | ---------------------------------------- | --------- | --------------------------------------- | ------- | ---------------------------------------------------------------------------------------- | ------- | ------- | --------- | ------- | ------- | --------- | ------- | ------- | --------- | -------- | --------
|                                              |                                       | For the Three Months Ended
September 30, |           | For the Nine Months Ended
September 30, |         | From Inception
Of the
Development
Stage on
September 25,
1996 through
September 30,
2010
|                                              |                                       |                                          |           | 2010                                    |         | 2009                                                                                     |         | 2010    |           | 2009   
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|REVENUES                                      |                                       | $                                        | -         |                                         | $       | -                                                                                        |         | $       | 60        |         | $       | -         |         | $       | 927      
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|COST OF GOODS SOLD                            |                                       |                                          | -         |                                         |         | -                                                                                        |         |         | 56        |         |         | -         |         |         | 56       
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|                                              | GROSS PROFIT                          |                                          |           | -                                       |         |                                                                                          | -       |         |           | 4       |         |           | -       |         |           | 871     
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|OPERATING EXPENSES                            |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |          
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|                                              | Legal and professional                |                                          |           | 3,417                                   |         |                                                                                          | 11,101  |         |           | 20,069  |         |           | 24,524  |         |           | 284,804 
|                                              | General and administrative            |                                          |           | 5,516                                   |         |                                                                                          | 16,767  |         |           | 19,622  |         |           | 28,723  |         |           | 250,010 
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|                                              |                                       | Total Operating Expenses                 |           |                                         | 8,933   |                                                                                          |         | 27,868  |           |         | 39,691  |           |         | 53,247  |           |          | 534,814 
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|LOSS FROM OPERATIONS                          |                                       |                                          | (8,933)   |                                         |         | (27,868)                                                                                 |         |         | (39,687)  |         |         | (53,247)  |         |         | (533,943)
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|OTHER EXPENSES                                |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |          
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|                                              | Interest expense                      |                                          |           | (3,057)                                 |         |                                                                                          | (2,470) |         |           | (8,761) |         |           | (7,207) |         |           | (56,416)
|                                              | Loss on disposal of fixed assets      |                                          |           | -                                       |         |                                                                                          | -       |         |           | -       |         |           | -       |         |           | (250)   
|                                              | Loss on sale of fixed assets          |                                          |           | -                                       |         |                                                                                          | -       |         |           | -       |         |           | -       |         |           | 1,767   
|                                              | Gain on sale of intellectual property |                                          |           | -                                       |         |                                                                                          | -       |         |           | -       |         |           | -       |         |           | 20,000  
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|                                              |                                       | Total Other Expenses                     |           |                                         | (3,057) |                                                                                          |         | (2,470) |           |         | (8,761) |           |         | (7,207) |           |          | (34,899)
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|NET LOSS                                      |                                       | $                                        | (11,990)  |                                         | $       | (30,338)                                                                                 |         | $       | (48,448)  |         | $       | (60,454)  |         | $       | (568,842)
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|BASIC LOSS PER SHARE                          |                                       | $                                        | (0.00)    |                                         | $       | (0.01)                                                                                   |         | $       | (0.01)    |         | $       | (0.03)    |         |         |          
|                                              |                                       |                                          |           |                                         |         |                                                                                          |         |         |           |         |         |           |         |         |           |          |         
|WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING |                                       |                                          | 3,294,056 |                                         |         | 2,467,922                                                                                |         |         | 3,294,056 |         |         | 2,393,659 |         |         |          

The accompanying notes are an integral part of these consolidated financial statements.  Page 4   ANOTEROS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Statements of Stockholders' Equity (Deficit)  DeficitAccumulatedAdditionalDuring theCommon StockPaid-InDevelopmentSharesAmountCapitalStageBalance at inception of the developmentstage on September 25, 1996-$-$-$-Common stock issued for cashat $0.001 per share666,6676671,168-Net loss from inception of thedevelopment stage on September25, 1996, through December 31, 1996---(1,109)Balance, December 31, 1996666,6676671,168(1,109)Common stock issued for cashat $0.003 per share443,3334433,557-Common stock issued for artworkat 0.05 per share1,6672248-Net income for the year endedDecember 31, 1997---(2,976)Balance, December 31, 19971,111,6671,1124,973(4,085)Common stock issued on January 19, 1998for services rendered at $0.05 per share1,6672248-Common stock issued for cash onApril 16, 1998 for $0.05 per share8,00081,192-Common stock issued for cash onJune 2, 1998 for $0.05 per share10,000101,490-Common stock issued for cash onJuly 21, 1998 for $0.05 per share3,3333497-Common stock issued on July 29, 1998for services rendered at $0.05 per share8,33382,492-Common stock issued for cash onDecember 7, 1998 for $0.05 per share6,6677993-Common stock issued for cash onDecember 21, 1998 for $0.05 per share5,0005745-Net loss for the year endedDecember 31, 1998---(7,779)Balance, December 31, 19981,154,667$1,155$12,630$(11,864)   The accompanying notes are an integral part of these consolidated financial statements.  Page 5   ANOTEROS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Statements of Stockholders' Equity (Deficit) (Continued)  DeficitAccumulatedAdditionalDuring theCommon StockPaid-InDevelopmentSharesAmountCapitalStageBalance, December 31, 19981,154,667$1,155$12,630$(11,864)Common stock issued for cash onFebruary 16, 1999 for $0.05 per share1,6672248-Common stock issued for cash onMarch 30, 1999 for $0.05 per share5,3335795-Common stock issued for cash onMay 4, 1999 for $0.05 per share13,333131,987-Common stock issued for cash onMay 18, 1999 at $0.05 per share6,6677993-Common stock issued on May 18, 1999for services rendered at $0.05 per share66,667679,933-Common stock issued for cash onAugust 12, 1999 at $0.05 per share6,6677993-Common stock issued for cash onSeptember 16, 1999 at $0.05 per share6,6677993-Common stock issued on September 16, 1999for services rendered at $0.05 per share40,000405,960-Common stock issued for cash onSeptember 21, 1999 at $0.05 per share13,333131,987-Common stock issued for cash onOctober 11, 1999 at $0.05 per share23,333233,477-Common stock issued on October 11, 1999for services rendered at $0.05 per share156,66615723,343-Net loss for the year ended December 31, 1999---(58,531)Balance, December 31, 19991,495,0001,49663,339(70,395)Common stock issued on February 18, 2000for services rendered at $0.05 per share3,3333497-Common stock issued on March 10, 2000for services rendered at $0.05 per share36,667365,464-Net loss for the year ended December 31, 2000---(22,150)Balance, December 31, 20001,535,000$1,535$69,300$(92,545)  The accompanying notes are an integral part of these consolidated financial statements.  Page 6   ANOTEROS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Statements of Stockholders' Equity (Deficit) (Continued)  DeficitAccumulatedAdditionalDuring theCommon StockPaid-InDevelopmentSharesAmountCapitalStageBalance, December 31, 20001,535,000$1,535$69,300$(92,545)Common stock issued on November 15, 2001for services rendered at $0.10 per share25,000257,475-Net loss for the year endedDecember 31, 2001---(14,626)Balance, December 31, 20011,560,0001,56076,775(107,171)Common stock issued for cash onMay 2, 2002 at $0.10 per share1,6672498-Net income for the year endedDecember 31, 2002---(4,054)Balance, December 31, 20021,561,6671,56277,273(111,225)Common stock issued on January 13, 2003for services rendered at $0.10 per share1,6672498-Common stock issued on July 28, 2003in payment of debts at $0.10 per share2,2332668-Net loss for the year endedDecember 31, 2003---(8,877)Balance, December 31, 20031,565,5671,56678,439(120,102)Common shares issued for extinguishment ofdebt on March 31, 2004 at $0.10 per share3,91041,159-Common shares issued on March 31, 2004for services rendered at $0.10 per share50,0005014,950-Common shares issued on September 15, 2004for services rendered at $0.10 per share116,66711734,883-Net loss for the year endedDecember 31, 2004---(60,127)Balance, December 31, 20041,736,1441,737129,431(180,229)Common shares issued on February 22, 2005for services rendered at $0.10 per share8,33382,492-Balance forward1,744,477$1,745$131,923$(180,229)   The accompanying notes are an integral part of these consolidated financial statements.  Page 7   ANOTEROS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Statements of Stockholders' Equity (Deficit) (Continued)  DeficitAccumulatedAdditionalDuring theCommon StockPaid-InDevelopmentSharesAmountCapitalStageBalance forward1,744,477$1,745$131,923$(180,229)Common shares issued on March 25, 2005for services rendered at $0.10 per share191,66719257,308-Common shares issued on December 22, 2005for services rendered at $0.10 per share100,00010029,900-Net loss for the year endedDecember 31, 2005---(101,039)Balance, December 31, 20052,036,1442,037219,131(281,268)Common shares issued on July 6, 2006 forservices rendered at $0.05 per share112,94711316,827-Common shares issued on September 18,2006 for accrued wages at $0.05 per share33,333334,967-Common shares issued on September 26,2006 for cash at $0.05 per share23,333233,477-Common stock issued on November 1, 2006for cash at $0.05 per share40,000405,960-Net loss for the year endedDecember 31, 2006---(45,875)Balance, December 31, 20062,245,7572,246250,362(327,143)Common shares issued on January 15, 2007for accrued wages at $0.05 per share16,666174,983-Common shares issued on December 11, 2007for services rendered at $0.05 per share33,333334,967-Common shares issued on December 28,2007 for debt at $0.05 per share30,500304,547-Net loss for the year endedDecember 31, 2007---(56,834)Balance, December 31, 20072,326,256$2,326$264,859$(383,977)   The accompanying notes are an integral part of these consolidated financial statements.  Page 8   ANOTEROS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Statements of Stockholders' Equity (Deficit) (Continued)  DeficitAccumulatedAdditionalDuring theCommon StockPaid-InDevelopmentSharesAmountCapitalStageBalance, December 31, 20072,326,256$2,326$264,859$(383,977)Net loss for the year endedDecember 31, 2008---(58,968)Balance, December 31, 20082,326,2562,326264,859(442,945)Common shares issued for prepaid services at$0.30 per share on May 4, 200925,000257,475-Common shares issued for debt at $0.30 pershare on May 4, 200969,1726920,682-Fractional shares issued pursuant toreverse stock-split on August 23, 200941---Common shares issued for services renderedat $0.08 per share on September 25, 2009150,00015011,850-Common shares issued to officer for cash andconversion of accrued salary at $0.08 pershare on September 25, 2009687,50068854,312-Common shares issued for conversion ofaccounts payable at $0.08 per share onSeptember 25, 200936,087362,851-Net loss for the year endedDecember 31, 2009---(77,449)Balance, December 31, 20093,294,0563,294362,029(520,394)Net loss for the nine months endedSeptember 30, 2010 (unaudited)---(48,448)Balance, September 30, 2010 (unaudited)3,294,056$3,294$362,029$(568,842)  The accompanying notes are an integral part of these consolidated financial statements.  Page 9   ANOTEROS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Statements of Cash Flows (Unaudited) From Inceptionof theDevelopmentStage onSeptember 25,For the Nine Months Ended1996 throughSeptember 30,September 30,201020092010CASH FLOWS FROM OPERATING ACTIVITIESNet loss$(48,448)$(60,454)$(568,842)Adjustments to reconcile net loss tonet cash used by operating activities:Depreciation expense--257Loss on disposal of fixed assets--250Loss on sale of equipment--133Gain on sale of fixed assets--(1,900)Common stock issued for services and fees-12,000230,191Gain on sale of intellectual property--(20,000)Changes in operating assets and liabilities:(Increase) decrease in inventory613-(2,939)Decrease in prepaids and deposits-2,7857,500Increase in accounts payable andaccrued expenses74,837562Increase in accounts payableand accrued expenses - related party27,45623,569169,084Net Cash Used by Operating Activities(20,372)(17,263)(185,704)CASH FLOWS FROM INVESTING ACTIVITIESIncrease in artwork-(200)(31,665)Proceeds from sale of intellectual property--20,000Purchase of fixed assets--(10,541)Proceeds from sale of fixed assets--11,500Sale of equipment--300Net Cash Used by Investing Activities-(200)(10,406)CASH FLOWS FROM FINANCING ACTIVITIESPayments on notes payable - related parties--(13,827)Proceeds from notes payable - related parties20,69212,288173,271Common stock issued for cash-5,00037,335Net Cash Provided by Operating Activities20,69217,288196,779NET INCREASE (DECREASE) IN CASH320(175)669CASH AT BEGINNING OF PERIOD3491,226-CASH AT END OF PERIOD$669$1,051$669   The accompanying notes are an integral part of these consolidated financial statements.  Page 10   ANOTEROS, INC. AND SUBSIDIARY (A Development Stage Company) Consolidated Statements of Cash Flows (Continued) (Unaudited) For the Nine
Months Ended
September 30,From Inception
of the
Development
Stage on
September 25,
1996 through
September 30,201020092010CASH PAID FORInterest$-$-$-Taxes$-$-$-SCHEDULE OF NON-CASH FINANCING ANDINVESTING ACTIVITIESCommon stock issued as paymenton debt$-$-$85,049Common stock issued for artwork$-$-$250   The accompanying notes are an integral part of these consolidated financial statements.  Page 11   ANOTEROS, INC. AND SUBSIDIARY (A Development Stage Company) Notes to the Consolidated Financial Statements September 30, 2010 and December 31, 2009  NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  This summary of significant accounting policies of Anoteros, Inc. and its wholly-owned subsidiary, Doolittle EduTainment Corp., is presented to assist in understanding the Companys consolidated financial statements. Collectively, these entities are referred to hereafter as the Company. The consolidated financial statements and notes are representations of the Companys management, which is responsible for their collective integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the Unites States of America, as well as standards of the Public Company Accounting Oversight Board (United States) and have been consistently applied in the preparation of the consolidated financial statements. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim condensed financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Operating results for the nine months ended September 30, 2010 are not necessarily indicative of the results that may be expected for the year ending December 31, 2010.  a. Organization and Business Activities  Anoteros, Inc. (Anoteros) was incorporated under the laws of the State of Nevada on September 25, 1996 as Out of Bounds Sports Co. Anoteros has been in the development stage since inception. Anoteros has created certain pieces of artwork, and intends to further develop and market this artwork in conjunction with its wholly-owned subsidiary, Doolittle Edutainment Corp. (Doolittle). Out of Bounds Sports Co. changed its name to Anoteros, Inc. on September 21, 2004.  Doolittle was incorporated under the laws of the State of Nevada on February 19, 2002 as a wholly-owned subsidiary of Anoteros. Doolittle is working toward creating and marketing a series of childrens books.  The Company is seeking to further develop and market its artwork and childrens books, as well as other related accessories such as T-Shirts, sweatshirts, superballs, etc., through the Doolittle entity. Additional external financing may be required to proceed with this and any supplemental business plans which may be developed by the Company.  b. Revenue Recognition Policy  Revenues from the sale of books are recognized upon delivery and acceptance by the customer, and when collectability is reasonably assured.  c. Basic Loss Per Share  The computations of basic loss per share of common stock are based on the weighted-average number of shares outstanding during the period of the financial statements as follows:  LossSharesPer Share(Numerator)(Denominator)AmountFor the period endedSeptember 30, 2010$(48,448)3,294,056$(0.01)For the period endedSeptember 30, 2009$(60,454)2,393,659$(0.03)   Page 12   ANOTEROS, INC. AND SUBSIDIARY (A Development Stage Company) Notes to the Consolidated Financial Statements (Continued) September 30, 2010 and December 31, 2009  NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)  d. 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 revenues and expenses during the reporting period. Actual results could differ from those estimates  e. Preferred Stock  The company has authorized 25,000,000 shares of preferred stock with the following features such that the shares 1) may have voting powers (full or limited) or may be without voting powers; 2) may be made convertible into, or exchangeable for, shares of any other class of stock; and 3) may have rights upon distribution of assets of the Company. The Company will determine preferences upon issuance.  f. Income Tax  We file federal income tax returns in the U.S. and state income tax returns in those state jurisdictions where we are required to file. With few exceptions, we are no longer subject to U.S. federal, state, or local income tax examinations by tax authorities for the tax years ending before December 31, 2006.  We have accounted for income taxes in accordance with FASB Accounting Standards Codification Topic 740  Accounting for Income Taxes. As a result of the implementation of Topic 740, no adjustment should be made for unrecognized tax benefits.  There are no tax positions included in the balance at September 30, 2010 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Our policy is to recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses.  NOTE 2 - SHAREHOLDER LOAN  In October 1999, a shareholder advanced $10,000 to the Company. From that date through September 30, 2010, the shareholder has made several additional advances, and the Company has made some partial payments on the advances. As of September 30, 2010, the principal balance of these advances totaled $154,276. The loans accrue interest at 8.0% per annum. Accrued interest at September 30, 2010 was $54,158. The loans are due on demand.  NOTE 3 - GOING CONCERN  The Companys consolidated financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company does not have significant operations to date, nor does it have an established source of revenues sufficient to allow it to continue as a going concern. External financing, which is necessary for the Company to continue and proceed with operations, will either a) be loaned to the Company by its founder and principal shareholder, or b) will be generated by means of a private placement being contemplated by management in which the Company would attempt to raise between $20,000 and $35,000. The Company is currently seeking to negotiate a publishing contract for its childrens books and implement an appropriate marketing strategy so as to begin generating sales revenues. Management can make no assurances that these steps will be effectively completed, or that after having done so, the Company will become profitable. Until such time these steps are effectively implemented and the Company generates profits, the Company will be reliant upon external financing in order to continue as a going concern.  Page 13   ANOTEROS, INC. AND SUBSIDIARY (A Development Stage Company) Notes to the Consolidated Financial Statements (Continued) September 30, 2010 and December 31, 2009  NOTE 4 - SIGNIFICANT EVENTS  On May 4, 2009, the Company issued 25,000 shares of common stock in conjunction with Jennifer Karlovskys appointment as a new director of the Company at $0.30 per share, for a total payment of $7,500. This amount was recorded by the Company as a prepayment of Ms. Karlovskys services through December 31, 2009. As of December 31, 2009, the Company had amortized this entire amount.  On May 4, 2009, the Company issued 69,172 shares of common stock at $0.30 per share as payment on legal debts to Chachas Law Group, P.C., totaling $20,752. Chachas Law Group is a law firm of which the Companys president, George Chachas, is the primary partner. Of these shares issued, 51,187 were issued to Mr. Chachas, and the remaining 17,985 shares were issued to a different, unrelated attorney of Chachas Law Group, P.C.  On July 23, 2009 the Companys Board of Directors resolved to perform a 1-for-3 reverse stock-split of the issued and outstanding shares of the Companys common stock. The 7,261,285 shares existing immediately prior to the reverse-split were exchanged for 2,395,464 post-split shares. All references to common stock activity taking place prior to July 23, 2009 have been retroactively restated to as to include the effects of the reverse stock-split.  On September 25, 2009, the Company issued 687,500 shares of common stock to a Company officer in exchange for $5,000 in cash and the conversion of $50,000 in accrued salaries. This issuance was made at $0.08 per share. Additionally, the Company issued 36,087 shares of common stock to a related-party vendor as payment in full on $2,887 in outstanding legal fees payable. The Company also issued 150,000 shares to unrelated third parties as payment for $12,000 of services rendered at $0.08 per share.  NOTE 5 - SUBSEQUENT EVENTS  Management performed an evaluation of Company activity through the date the financial statements were issued, and has concluded that there are no significant subsequent events requiring disclosure.  Page 14   ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  CAUTIONARY FORWARD - LOOKING STATEMENT  Statements included in this Management's Discussion and Analysis of Financial Condition and Results of Operations, and in future filings by the Company with the Securities and Exchange Commission, in the Company's press releases and in oral statements made with the approval of an authorized executive officer which are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect the Company's actual results and could cause the Company's actual financial performance to differ materially from that expressed in any forward-looking statement: (i) the extremely competitive conditions that currently exist in the three dimensional software development marketplace are expected to continue, placing further pressure on pricing which could adversely impact sales and erode profit margins; (ii) many of the Company's major competitors in its channels of distribution have significantly greater financial resources than the Company; and (iii) the inability to carry out marketing and sales plans would have a materially adverse impact on the Company's projections. The foregoing list should not be construed as exhaustive and the Company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.  Company Overview and Principal Products and Services  The Companys wholly-owned subsidiary, Doolittle Edutainment, which holds all intellectual property for the Company, is engaged in the childrens education and entertainment market, continues its plan for publication and distribution of its children books, and further development of additional books and exploitation of its intellectual property rights focused around its main character, Doolittle. We are considered a development stage company. We have recognized only minimal revenue, and activities since our inception and have been devoted primarily to raising capital and creating a character-based childrens book and accompanying apparel. Following the completion of its third title book in July 2007, the Company entered into an agreement with BookMasters Inc., to print an initial run of 250 of each of the first three book titles for marketing and presentation purposes to various children's literary agents to seek publication. With this printing of the first three titles the copyright process was completed and these titles entered into the Library of Congress. In September 2009, the Company proceeded with its 2nd printing of 100 each of the Doolittle book series of Books 1, 2 and 3, which books are made available for sale on the Companys website and through various distribution channels it is working to secure. Also in September 2009, the Company through its wholly-owned subsidiary, Doolittle Edutainment Corp. entered into a Literary Agent Agreement with Geraldine Blecker (Agent), under which Agent will represent Doolittle Edutainment, on a non-exclusive basis, in connection with negotiations with potential publishers and book distributors in Europe. The Company through its wholly-owned subsidiary, Doolittle Edutainment Corp., launched its website, www.doolittleEdutainment.com to further market its books and provide an online portal for the purchase of the books. We are a development stage enterprise as defined by ASC Topic 915 (formerly SFAS 7). In our most recent operating period ended September 30, 2010, we recorded no revenues. There were no revenues for the fiscal year ended December 31, 2009. Accordingly, we have issued a comment regarding our ability to continue as a going concern (please refer to the footnotes to the financial statements). Until such time that we are able to establish a consistent flow of revenues from our Doolittle products, sufficient to sustain our operations, Management intends to rely primarily upon debt financing as needed to supplement the cash flows generated by the sale of our products.  Page 15   To date, our efforts have been primarily focused on developing demand for our products, implementing our business strategy and raising working capital through equity financing. Our ability to generate revenues is primarily dependent upon our ability to cost-effectively and efficiently develop and market our products. Our priorities for the next six to twelve months of operations are to:  1. Attempt to negotiate and facilitate a publishing contract for the publication of Book 1, 2 and 3 or pursue self publication; 2. Implement a marketing strategy to reach target markets; 3. Continue the development of future book titles; 4. Develop and strengthen strategic relationships; 5. Respond to competitive developments; and 6. Establish our brand identity.  While we have printed a limited number of books for sale and distribution, in order to make the most efficient use of the capital available to us, we plan to print further books, beyond the initial 325 already printed, when we have orders from the purchasers in hand. Standard terms will include a down payment with the order, which is typical in this industry. This down payment will be sufficient to cover the hard costs to publish the books as well as the initial operating expenses. Once the books are published the balance owing on the contracts with the sponsors will be due and payable. These amounts will provide for ongoing operating expenses.  We believe that without additional financing, our total current assets of $3,661, plus projected cash flows, will not be sufficient capital to allow us to implement our plan to continue developing our product line and develop relationships with publishers and/or retail outlets. Our current monthly operating expenses average less than $5,000 exclusive of managements salaries, which are deferred until we begin selling our books.  Our total operating expenses for the period from September 25, 1996, (inception) to September 30, 2010 were $534,814 of which 47% were general and administrative. The following table quantifies the components that comprise our operating expenses for this period:  DESCRIPTIONAMOUNTLegal and Professional Fees$284,804Other General and Administrative$250,010Non-Executive Wages and Salaries$-Taxes$-Total Operating Expenses$534,814  We believe funds received through additional debt financing or the sale of additional shares of our common stock will be adequate to fund our operations and provide for our working capital needs for at least the next 12 to 24 months. As we grow our business and obtain a publishing deal and/or purchase orders for our books and other products, our revenues should grow on a consistent basis. By focusing our efforts on limiting general and administrative expenses as we increase revenue, we expect to increase our net income on a consistent basis as well.  Results of Operations  Three months ended September 30, 2010 compared to the three months ended September 30, 2009.  From September 25, 1996 (inception) to September 30, 2010, we have generated only minimal revenue. We earned no revenues during the three month period ended September 30, 2010, and zero revenues for the three month period ended September 30, 2009. As a development stage company, our revenue is expected to be derived from the sale of our Doolittle products, namely our children books.  Operating expenses for the three months ended September 30, 2010 totaled $8,933, a 68% decrease from the comparable period of 2009. This increase resulted primarily from the Companys concerted efforts to bring its Doolittle books to market, which resulted in slight increases in both legal and professional, and general and administrative expenses incurred during the current period.  Page 16   The Company incurred a net loss of $11,990 during the three month period ended September 30, 2010, a 60% decrease from the comparable period of 2009. This increase resulted primarily from the Companys concerted efforts to bring its Doolittle books to market, which resulted in slight increases in both legal and professional, and general and administrative expenses incurred during the current period. Basic net loss per share was $(0.00) for the three month period ended September 30, 2010, compared to a basic net loss per share of $(0.01) from the comparable period of 2009.  Nine months ended September 30, 2010 compared to the Nine months ended September 30, 2009.  From September 25, 1996 (inception) to September 30, 2010, we have generated only minimal revenue. We earned $60 in revenues during the nine month period ended September 30, 2010, and zero revenues for the nine month period ended September 30, 2009. As a development stage company, our revenue is expected to be derived from the sale of our Doolittle products, namely our children books.  Operating expenses for the nine months ended September 30, 2010 totaled $39,691, a 25% decrease from the comparable period of 2009. This decrease resulted primarily from a decrease in both legal and professional, and general and administrative expenses incurred during the current period.  The Company incurred a net loss of $48,448 during the nine month period ended September 30, 2010, a 20% decrease from the comparable period of 2009. This decrease resulted primarily from a decrease in both legal and professional, and general and administrative expenses incurred during the current period. Basic net loss per share was $(0.01) for the nine month period ended September 30, 2010, compared to a basic net loss per share of $(0.03) for the comparable period of 2009.  Liquidity and Capital Resources  As of September 30, 2010, the Company had a negative working capital of $235,434 compared to a negative working capital of $186,986 at December 31, 2009. The change in working capital resulted primarily from increases in the Companys related-party payables and trade accounts payable during the nine months ended September 30, 2010.  During the nine months ended September 30, 2010 the Company experienced negative cash flow of $20,372 from operating activities. The Company met its cash requirements during this period primarily through debt financing, realizing a cash inflow from financing activities in the amount of $20,692.  ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK  We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.  Page 17   ITEM 4. CONTROLS AND PROCEDURES  Evaluation of Disclosure Controls and Procedures  We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit to the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commissions rules and forms, and that information is accumulated and communicated to our management, including our principal executive and principal financial officer (whom we refer to in this periodic report as our Certifying Officer), as appropriate to allow timely decisions regarding required disclosure.  Our management evaluated, with the participation of our Certifying Officer, the effectiveness of our disclosure controls and procedures as of September 30, 2010, pursuant to Rule 13a-15(b) under the Securities Exchange Act. Based upon that evaluation, our Certifying Officer concluded that, as of September 30, 2010, our disclosure controls and procedures were effective.  Changes in Internal Controls  There have not been any changes in the Companys internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended September 30, 2010 that have materially affected, or are reasonably likely to materially affect, the Companys internal control over financial reporting.  PART II - OTHER INFORMATION.  ITEM 1. LEGAL PROCEEDINGS.  We are not a party to any pending legal proceeding. No federal, state or local governmental agency is presently contemplating any proceeding against the Company. No director, executive officer or affiliate of the Company or owner of record or beneficially of more than five percent of the Company's common stock is a party adverse to the Company or has a material interest adverse to the Company in any proceeding.  Item 1A. RISK FACTORS.  We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.  ITEM 2. UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS.  None  ITEM 3. DEFAULTS UPON SENIOR SECURITIES.  None  ITEM 4. OTHER INFORMATION.  None  Page 18   ITEM 5. EXHIBITS  (a) Documents filed as part of this Report.  1. Financial Statements. The unaudited Balance Sheet of Anoteros, Inc., and subsidiaries as of September 30, 2010 and the audited balance sheet as of December 31, 2009, the unaudited Consolidated Statements of Operations for the three and nine-month periods ended September 30, 2010 and 2009, and from inception of the development stage on September 25, 1996 through September 30, 2010, the Consolidated Statements Stockholders Equity (Deficit) from inception of development stage on September 25, 1996 to September 30, 2010, and the unaudited Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2010 and 2009, and from inception of the development stage on September 25, 1996 through September 30, 2010, and together with the notes thereto, are included in this Quarterly Report on Form 10-Q.  3. Exhibits. The following exhibits are either filed as a part hereof or are incorporated by reference. Exhibit numbers correspond to the numbering system in Item 601 of Regulation S-K. Exhibits 10.1 through 10.20 relate to compensatory plans incorporated by reference as exhibits hereto pursuant to Item 15(b) of Form 10-K.  ExhibitNumberDescription of Exhibit3.01Articles of Incorporation(1)3.02Restated Articles of Incorporation(1)3.03Bylaws(1)3.04Certificate of Change Pursuant to NRS 78.209(3)10.01Independent Contractor Agreement with James Wojtak dated October 11, 1999(1)10.02Restated Independent Contractor Agreement with James Wojtak dated February 18, 2000(1)10.03Independent Contractor Agreement with Ben De Soto dated December 5, 2002(1)10.04First Amendment to Independent Contractor Agreement with Ben De Soto dated February 11, 2003(1)10.05Independent Contractor Agreement with Gerry De Soto dated November 21, 2006(1)10.062007 Long Term Incentive Plan(2)10.07Literary Agent Agreement dated September 25, 2009(4)31.01Certification of Principal Executive Officer Pursuant to Rule 13a-14(5)31.02Certification of Principal Financial Officer Pursuant to Rule 13a-14(5)32.01CEO and CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act(5)  (1) Incorporated by reference to our Registration Statement on Form 10SB filed on April 12, 2007. (2) Incorporated by reference to our Form 10-KSB filed with the SEC on March 27, 2008. (3) Incorporated by reference to our Definitive Information Statement on Schedule 14C filed with the SEC on August 3, 2009. (4) Incorporated by reference to our Form 8-K filed with the SEC on September 28, 2008. (5) Filed herewith.  Page 19     SIGNATURES  In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the Undersigned, thereunto duly authorized.  ANOTEROS INC.    Dated: October 8, 2010 /s/ George G. Chachas By: George G. Chachas Its: President and CEO  Page 20