| Nevada                                                         |   | 14-1961383                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

| 500 North Dearborn Street, Suite 605     |   |       |
|------------------------------------------|--------|------------|
| Chicago, Illinois                        |   |       |
|                                     |   | 60654      |
| (Address of principal executive offices) |   | (Zip Code) |

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

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| PART I- FINANCIAL INFORMATION    |                                                                                        |
|----------------------------------|---------------------------------------------------------------------------------------------|
|                             |                                                                                        |   |   |   |
| Item 1                           | Unaudited Financial Statements                                                              |   |   | 1-7 |   |
| Item 2                           | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   |   |     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                                                                           |   |   | 11 |   |
|  Item 2                     | Unregistered Sales of Equity Securities and Use of Proceeds                                 |   |   | 11 |   |
| Item 3                           | Defaults Upon Senior Securities                                                             |   |   | 11 |   |
| Item 4                           | (Removed and Reserved)                                                                 |   |   | 11 |   |
| Item 5                           | Other Information                                                                           |   |   | 11 |   |
| Item 6                           | Exhibits                                                                                    |   |   | 11 |   |
|                             |                                                                                        |   |   |   |   |
| Signatures                       |                                                                                        |   |   | 12 |   |

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|    Q LOTUS, INC.                          |                                                                                                                                                                              |   |                                                                                                                                                                                         |
|----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A Development Stage Company)                            |                                                                                                                                                                              |   |                                                                                                                                                                                         |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| CONDENSED BALANCE SHEETS                                 |                                                                                                                                                                              |   |                                                                                                                                                                                         |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
|                                                     | June 30,                                                                                                                                                                          |   | March 31,                                                                                                                                                                                    |
|                                                     | 2010                                                                                                                                                                              |   | 2010                                                                                                                                                                                         |
|                                                     |  (Unaudited)                                                                                                                                                                 |   |                                                                                                                                                                                         |
| Assets                                                   |                                                                                                                                                                              |   |                                                                                                                                                                                         |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Current Assets                                           |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Cash                                                     |  $                            -- |   |  $                 804,882                                                                         |
| Prepaid expenses                                         |                     264,500                                                   |   |                                -- |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Total Current Assets                                     |                     264,500                                                   |   |                     804,882                                                              |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Property and Equipment, Net                              |                       55,096                                        |   |                                -- |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Total Assets                                             |  $                 319,596                                                              |   |  $                 804,882                                                                         |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Liabilities and Stockholders' Equity                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Current Liabilities                                      |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Accounts payable                                         |  $                   32,550                                                   |   |  $                     1,192                                                   |
| Due to related party                                     |                       29,003                                        |   |                                -- |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Total Current Liabilities                                |                       61,553                                        |   |                         1,192                                        |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Stockholders' Equity                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Common stock, $.0001 par value;                          |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| 400,000,000 shares authorized, 52,019,994 and 30,000,000 |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| shares issued and outstanding at June 30, 2010           |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| and March 31, 2010, respectively                         |                         5,202                             |   |                         3,000                                        |
| Additional paid-in-capital                               |                     799,681                                                   |   |                     801,882                                                              |
| Deficit accumulated during development stage             |                    (546,840)                                                       |   |                        (1,192)                                            |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Total Stockholders' Equity                               |                     258,043                                                   |   |                     803,690                                                              |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
| Total Liabilities and Stockholders' Equity               |  $                 319,596                                                              |   |  $                 804,882                                                                         |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |
|                                                     |                                                                                                                                                                              |   |                                                                                                                                                                                         |

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| Q LOTUS, INC.                 |   |   |   |
|-------------------------------|--------|--------|--------|
| (A Development Stage Company) |   |   |   |

| CONDENSED STATEMENT OF OPERATIONS |   |   |   |
|-----------------------------------|--------|--------|--------|
| (UNAUDITED)                       |   |   |   |

|                                          |                                                                                                                                                                              |   |                                                                                                                                                                              |
|-----------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                          |                                                                                                                                                                              |   | For the Period                                                                                                                                                                    |
|                                          | For the Three                                                                                                                                                                     |   | from March 31, 2010                                                                                                                                                               |
|                                          | Months Ended                                                                                                                                                                      |   | (Inception) to                                                                                                                                                                    |
|                                          | June 30, 2010                                                                                                                                                                     |   | June 30, 2010                                                                                                                                                                     |
|                                          |                                                                                                                                                                              |   |                                                                                                                                                                              |
| Revenue                                       |  $                            -- |   |  $                            -- |
|                                          |                                                                                                                                                                              |   |                                                                                                                                                                              |
| Operating Expenses                            |                    (545,676)                                                       |   |                    (546,868)                                                       |
|                                          |                                                                                                                                                                              |   |                                                                                                                                                                              |
| Interest Income                               |                              28  |   |                              28  |
|                                          |                                                                                                                                                                              |   |                                                                                                                                                                              |
| Net Loss                                      |  $                (545,648)                                                                  |   |  $                (546,840)                                                                  |
|                                          |                                                                                                                                                                              |   |                                                                                                                                                                              |
|                                          |                                                                                                                                                                              |   |                                                                                                                                                                              |
| Net Loss per Common Share:                    |                                                                                                                                                                              |   |                                                                                                                                                                              |
| Basic and diluted                             |  $                      (0.02)                                 |   |                                                                                                                                                                              |
|                                          |                                                                                                                                                                              |   |                                                                                                                                                                              |
| Weighted Average Number of Shares Outstanding |                                                                                                                                                                              |   |                                                                                                                                                                              |
| Basic and diluted                             |                33,871,647                                                                              |   |                                                                                                                                                                              |
|                                          |                                                                                                                                                                              |   |                                                                                                                                                                              |
|                                          |                                                                                                                                                                              |   |                                                                                                                                                                              |
|                                          |                                                                                                                                                                              |   |                                                                                                                                                                              |

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|                                                                                              STATEMENT OF CASH FLOWS                                                                                                   |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                  (UNAUDITED) |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   | For the Period                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | For the Three                                                                                                                                                                                |   | from March 31, 2010                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Months Ended                                                                                                                                                                                 |   | (Inception) to                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | June 30, 2010                                                                                                                                                                                |   | June 30, 2010                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Cash Flows from Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  $                (545,648)                                                                             |   |  $                (546,840)                                                                             |
| Adjustments to reconcile net loss to net cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| used in operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Depreciation expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | 1,413                                                                                                                                                                                        |   | 1,413                                                                                                                                                                                        |
| Changes in operating  liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Prepaid expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                    (264,500)                                                                  |   |                    (264,500)                                                                  |
| Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                       31,358                                                   |   |                       32,550                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Net Cash Used in Operating Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                    (777,377)                                                                  |   |                    (777,377)                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Cash Flows from Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Purchase of property and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                      (56,508)                                                       |   |                      (56,508)                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Cash Used in Investing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                      (56,508)                                                       |   |                      (56,508)                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Cash Flows from Financing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Advances from related party                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                       29,003                                                   |   |                       29,003                                                   |
| Proceeds from the issuance of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                     804,882                                                              |   |                     804,882                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Cash Provided by Financing Activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                     833,885                                                              |   |                     833,885                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Net Increase in Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                -- |   |                                -- |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Cash and Cash Equivalents - Beginning                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                -- |   |                                -- |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
| Cash and Cash Equivalents - Ending                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  $                            --            |   |  $                            --            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                         |   |                                                                                                                                                                                         |

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| 1.   | the Company’s Articles of Incorporation was amended to change the name to Q Lotus Holdings, Inc.; |
|----------------|---------------------------------------------------------------------------------------------------------|

| 2.   | the authorized capital stock of the Company was increased to 500,000,000 shares, of which 400,000,000 shares will be Common Stock par value $0.0001 per share, and 100,000,000 shares will be Preferred Stock par value $.001 per share; and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | the outstanding common shares of the Company were split so that each outstanding share on the books of the Company was split into three outstanding common shares. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As a result of the stock split, the Company currently has a total of 52,019,994 common shares outstanding. |
|--------|------------------------------------------------------------------------------------------------------------|

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|   | (a) | Disclosure Controls and Procedures . |
|--------|-----|--------------------------------------|

|   | (b) | Changes in Internal Control over Financial Reporting. |
|--------|-----|-------------------------------------------------------|

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| Exhibit No. | Description                                                                                                  |
|-------------|--------------------------------------------------------------------------------------------------------------|
| 10.1        | Form 8K/A filed with the SEC on June 16, 2010 is hereby incorporated by reference.                           |
| 10.2        | Schedule 14C Information Statement filed with the SEC on June 17, 2010 is hereby incorporated by reference.  |
| 10.3        | Form 8K/A filed with the SEC on August 17, 2010 is hereby incorporated by reference.                         |
| 31.1        | Chief Executive Officer’s Certificate pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.       |
| 31.2        | Chief Financial Officer’s Certificate pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.       |
| 32.1        | Chief Executive Officer’s Certificate pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.       |
| 32.2        | Chief Financial Officer’s Certificate pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  |

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|   | Marckensie TheresiasChief Executive Officer |
|--------|---------------------------------------------|