UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C.

                                   FORM 10-QSB
(Mark One)

 X   Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange
---  Act of 1934 For the quarter ended December 31, 2004; or

     Transition  report  pursuant  to  Section  13 or  15(d)  of the  Securities
---  Exchange Act of 1934

Commission file number  0-21555
                        -------

                               AMASYS CORPORATION
                               ------------------
             (Exact Name of Registrant as Specified in Its Charter)

            Delaware                                              54-1812385
---------------------------------                            -------------------
  (State or other jurisdiction                                (I.R.S. Employer
of incorporation or organization)                            Identification No.)

         625 N. Washington Street, Suite 301, Alexandria, Virginia 22314
         ---------------------------------------------------------------
                     (Address of principal executive office)

      -------------------------------------------------------------------

                                 Former address:
                          4900 Seminary Road, Suite 800
                           Alexandria, Virginia 22311

The Company knows of no trading in its Common Stock since its inception. As of
December 31, 2004, there were 1,775,880 shares of stock held by non-affiliates.

Transitional Small Business Disclosure Format (check one):
Yes    X      No
     -----        -----



<PAGE>


                               AMASYS CORPORATION.
                                TABLE OF CONTENTS


                                                                        Page No.
                                                                        --------
Part I   Financial Information:

Item 1.  Financial Statements                                              1

         Balance Sheet                                                     1
          as of December 31, 2004 (unaudited)

         Statements of Operations                                          2
          for the Three and Six Months Ended
          December 31, 2004 and 2003 (unaudited)

         Statements of Cash Flows                                          3
          for the Six Months Ended
          December 31, 2004 and 2003 (unaudited)

         Notes to Financial Statements                                     4


Item 2.  Management's Discussion and Analysis                              7
         or Plan of Operations

Item 3.  Controls and Procedures                                           12

Part II  Other Information:

Item 1.  Legal Proceedings                                                 12
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds       12
Item 3.  Defaults Upon Senior Securities                                   12
Item 4.  Submission of Matters to a Vote of Security Holders               13
Item 5.  Other Information                                                 13
Item 6.  Exhibits and Reports on Form 8-K                                  13


SIGNATURES                                                                 14

Certifications of Chief Executive Officer and Chief Financial Officer


<PAGE>



                                     PART I

Item 1.           Financial Statements

                               AMASYS Corporation
                                  Balance Sheet
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                                December 31, 2004
                                                             -----------------------
Assets
Current assets:
<S>                                                          <C>
   Cash and cash equivalents                                 $                1,212
   Short-term investment                                                    361,852
                                                             ------------------------
Total current assets                                                        363,064
Note receivable-related party, net of discount of $308,817                  519,962
Derivative asset                                                             50,409
                                                             ------------------------

Total assets                                                 $              933,435
                                                             ========================

Liabilities and stockholder's equity
Current liabilities:
   Accounts payable and accrued expenses                     $               22,010
                                                             ------------------------
Total current liabilities                                                    22,010

Stockholder's equity:
Preferred stock, $0.01 par value; 1,000,000 shares
   authorized; 196,000 shares issued and outstanding                          1,960
Common stock, $0.01 par value; 20,000,000 shares
   authorized; 2,207,350 shares issued and outstanding                       22,073
Additional paid-in capital                                                  799,185
Accumulated other comprehensive income                                      280,495
Retained deficit                                                           (192,288)
                                                             ------------------------
Total stockholder's equity                                                  911,425
                                                             ------------------------

Total liabilities and stockholder's equity                   $              933,435
                                                             ========================
</TABLE>


See accompanying notes.

<PAGE>

                               AMASYS Corporation
                            Statements of Operations
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                         Three Months Ended                  Six Months Ended
                                                            December 31,                       December 31,
                                                 ---------------------------------------------------------------------
                                                       2004              2003             2004              2003
                                                 ---------------------------------------------------------------------

Operating costs and expenses:
<S>                                              <C>               <C>              <C>               <C>
   Professional services                         $       37,485    $       76,845   $       98,688    $      175,561
   General and administrative                            10,001            14,048           13,141            17,728
                                                 ---------------------------------------------------------------------
Total operating costs and expenses                       47,486            90,893          111,829           193,289

Other income (expense):
   Gain on sale of short-term investment                 35,245            34,850           35,245            34,850
   Interest income                                       44,489            44,489           88,978            88,978
   Equity in earnings (losses) of Comtex                 26,207          (164,065)          47,370          (204,039)
   Gain (loss) on derivative asset                        7,561            61,415          (78,134)           50,378
                                                 ---------------------------------------------------------------------
Total other income (expense)                            113,502           (23,311)          93,459           (29,833)

Income (loss) before income taxes                        66,016          (114,204)         (18,370)         (223,122)

Provision for income taxes                                   --                --               --                --
                                                 ---------------------------------------------------------------------

Net income (loss)                                $       66,016    $     (114,204)  $      (18,370)   $     (223,122)
                                                 ---------------------------------------------------------------------

Earnings (loss) per share:
   Basic                                         $        0.019    $        (0.06)  $        (0.03)   $        (0.12)
                                                 =====================================================================
   Diluted                                                0.016             (0.06)           (0.03)            (0.12)
                                                 =====================================================================

Weighted average number of shares:
   Basic                                              2,207,350         2,207,350        2,207,350         2,207,350
                                                 =====================================================================
   Diluted                                            4,167,350         2,207,350        2,207,350         2,207,350
                                                 =====================================================================
</TABLE>


See accompanying notes.

                                       2

<PAGE>

                               AMASYS Corporation
                            Statements of Cash Flows
                                   (Unaudited)

<TABLE>
<CAPTION>

                                                               Six Months Ended December 31,
                                                           -------------------------------------
                                                                 2004               2003
                                                           -------------------------------------

Operating activities:
<S>                                                        <C>                <C>
Net loss                                                  $       (18,370)   $      (223,122)
Adjustments to reconcile net loss to net cash used in
  operating activities:
   Amortization on note receivable discount                        (46,130)           (46,131)
   Loss (gain) on derivative asset                                  78,134            (50,378)
   Gain on sale of short-term investment                           (35,245)           (34,850)
   Equity in  (earnings) losses                                    (47,370)           204,039
Changes in operating assets and liabilities
   Interest receivable                                                  --            (21,424)
   Accounts payable and accrued expenses                            13,535             55,911
                                                           -------------------------------------
Net cash used in operating activities                              (55,446)          (115,955)

Investing activities:
   Proceeds from sale of short-term investment                      46,651             44,319
                                                           -------------------------------------
Net cash provided by investing activities                           46,651             44,319

Net decrease in cash                                                (8,795)           (71,636)
Cash at beginning of period                                         10,007             73,667
                                                           -------------------------------------
Cash at end of period                                      $         1,212    $         2,031
                                                           =====================================

</TABLE>

See accompanying notes.

                                       3

<PAGE>


                               Amasys Corporation
                    Notes to Financial Statements (Unaudited)
                                December 31, 2004

1.      Basis of Presentation

The accompanying interim financial statements of AMASYS Corporation (the
"Company" or "AMASYS") are unaudited, but in the opinion of management reflect
all adjustments necessary for a fair presentation of the results for such
periods. The results of operations for any interim period are not necessarily
indicative of results for the full year. These financial statements should be
read in conjunction with the audited financial statements and notes thereto
included in the Company's Annual Report on Form 10-KSB for the fiscal year ended
June 30, 2004 filed with the Securities and Exchange Commission on October 17,
2004.


2.      Stock Based Compensation

SFAS No. 123 ("SFAS 123"), Accounting for Stock-Based Compensation, requires
that companies either recognize compensation expense for grants of stock options
and other equity instruments based on fair value, or provide pro forma
disclosure of net income (loss) and net income (loss) per share in the notes to
the financial statements. At December 31, 2004, the Company has a stock-based
compensation plan. The Company accounts for this plan under the recognition and
measurement principles of Accounting Principles Board Opinion No. 25 ("APB 25"),
Accounting for Stock Issued to Employees, and related interpretations.
Accordingly, no compensation cost has been recognized under SFAS 123 for the
Company's employee stock option plan. Due to the fact that options granted in
1996 were immediately exercisable, net income (loss) is the same under SFAS 123
and APB 25 for the six months ended December 31, 2004 and 2003.

SFAS No. 148 ("SFAS 148"), Accounting for Stock-Based Compensation-Transition
and Disclosure, amends SFAS 123. SFAS 148 provides alternative methods of
transition for a voluntary change to the fair value-based method of accounting
for stock-based employee compensation and amends the disclosure requirements of
SFAS 123 to require disclosures in both the annual and interim financial
statements about the method of accounting for stock-based employee compensation
and the effect of the method used on reported results. The Company will continue
to account for its employee stock option plans in accordance with APB 25 and
related interpretations, which results in no charge to earnings when options are
issued at fair market value. The Company has adopted the disclosure rules of
SFAS 148 and does not expect that this statement will have a material impact on
its financial statements.






                                       4


<PAGE>

3.      Earnings (Loss) Per Share

The following table sets forth the computation of basic and diluted earnings
(loss) per share:


<TABLE>
<CAPTION>

                                                       Three Months Ended                  Six Months Ended
                                                          December 31,                       December 31,
                                               ---------------------------------------------------------------------
                                                     2004              2003             2004              2003
                                               ---------------------------------------------------------------------
Numerator:
----------
<S>                                            <C>               <C>              <C>               <C>
   Net income (loss)                           $       66,016    $     (114,204)  $      (18,370)   $     (223,122)
   Preferred stock dividends                          (24,500)          (24,500)         (49,000)          (49,000)
                                               ---------------------------------------------------------------------
   Numerator for basic earnings per share              41,516          (138,704)         (67,370)         (272,122)
   Effect of dilutive securities                       24,500            24,500           49,000            49,000
                                               ---------------------------------------------------------------------
   Numerator for dilutive earnings per share   $       66,016    $     (114,204)  $      (18,370)   $     (223,122)
                                               =====================================================================

Denominator:
------------
   Denominator for basic earnings per
    share-weighted average shares              $    2,207,350    $    2,207,350   $    2,207,350         2,207,350
Effect of dilutive securities:
   Convertible preferred stock                      1,960,000                --               --                --
                                               ---------------------------------------------------------------------
   Denominator for diluted earnings per share  $    4,167,350    $    2,207,350   $    2,207,350    $    2,207,350
                                               =====================================================================

Basic earnings (loss) per share                $        0.019    $        (0.06)  $        (0.03)   $        (0.12)
                                               =====================================================================
Diluted earnings (loss) per share              $        0.016    $        (0.06)  $        (0.03)   $        (0.12)
                                               =====================================================================
</TABLE>

For the three months ended December 31, 2003, and the six months ended December
31, 2004 and 2003, the shares issuable upon the exercise of stock options and
the conversion of the Series A Preferred Stock have been excluded from the
computation since their effect was not dilutive.


4.      Investment in Common Stock - Related Party

At December 31, 2004, the Company had a 16% ownership interest in Comtex. Since
the Company has the ability to significantly influence the operations of Comtex,
the Company accounts for its investment in Comtex under the equity method of
accounting. The Company can significantly influence the operations of Comtex
since (i) if the Company converted its note receivable from Comtex into shares
of Comtex, the Company would have a 22% ownership interest in Comtex, (ii) the
Company as well as the Company's Chairman and CEO are Comtex's largest
individual shareholders, (iii) the Company and the Company's Chairman and CEO
have a combined ownership interest in Comtex of 32%, and (iv) the Company's
Chairman is the Chairman and interim Chief Executive Officer of Comtex. The
following information presents condensed balance sheet information of Comtex as
of December 31, 2004 and income statement information of Comtex for the three
months and six months ended December 31, 2004 and 2003:

                                       5

<PAGE>

<TABLE>
<CAPTION>

                                                   December 31,
                                                       2004
                                                 ----------------
<S>                                              <C>
Current assets                                   $    1,501,171
Other assets                                          1,041,368
Current liabilities                                   1,526,572
Long-term liabilities                                 1,122,640

</TABLE>

<TABLE>
<CAPTION>

                                                         Three Months Ended                  Six Months Ended
                                                            December 31,                       December 31,
                                                 ----------------------------------------------------------------------
                                                       2004              2003             2004              2003
                                                 ----------------------------------------------------------------------
<S>                                              <C>               <C>               <C>              <C>
Revenues                                         $    2,085,578    $    2,014,019    $    4,072,927   $    4,186,940
Gross Profit                                          1,118,562         1,099,495         2,126,129        2,340,159
Net income (loss)                                       119,447        (1,035,238)          215,725       (1,287,375)
</TABLE>


5.      Comprehensive Income (Loss)

Comprehensive income (loss) is defined as the change in equity of a business
enterprise during a period from nonowner sources. The Company's comprehensive
income (loss) includes unrealized gains (losses) on its short-term investment.
Unrealized gains (losses) consisted of the following:

<TABLE>
<CAPTION>

                                                         Three Months Ended                  Six Months Ended
                                                            December 31,                       December 31,
                                                 ----------------------------------------------------------------------
                                                       2004              2003             2004              2003
                                                 ----------------------------------------------------------------------
<S>                                              <C>               <C>               <C>              <C>
Net income  (loss)                               $       66,016    $     (114,204)   $      (18,370)  $     (223,122)
Unrealized gain (loss) on short-term investment          79,922           (28,220)           44,683           23,116
                                                 ----------------------------------------------------------------------
Comprehensive income (loss)                      $      145,938    $     (142,424)   $       26,313   $     (200,006)
                                                 ======================================================================
</TABLE>


                                       6

<PAGE>



Item 2.      Management's Discussion and Analysis or Plan of Operation

Company History
---------------

         AMASYS Corporation ("AMASYS" or the "Company") was incorporated in
Delaware in 1992, and in 1996 received all remaining assets of Infotechnology,
Inc. ("Infotech"), a Delaware company, following the completion of Infotech's
Chapter 11 Bankruptcy reorganization, in accordance with an Assignment and
Assumption Agreement, dated October 11, 1996, and effective as of June 21, 1996.
As a result of a series of transactions during the 1980's, Infotech, then
principally engaged in the information and communications business, acquired
equity interests in Comtex News Network, Inc. ("Comtex") and Analex Corporation
("Analex"), formerly known as Hadron, Inc. As of December 31, 2004 AMASYS had a
16% interest in Comtex and less than a 1% equity interest in Analex. The
Company's business is the maintenance of its equity interest in and note
receivable from Comtex and equity interest in Analex.

         On July 2, 2001, the Company filed the following reports with the
Securities and Exchange Commission (the "SEC"): Annual Report on Form 10-K for
the year ended June 30, 2000; the Quarterly Report on Form 10-Q for the quarter
ended September 30, 2000; the Quarterly Report on Form 10-Q for the quarter
ended December 31, 2000; and the Quarterly Report on Form 10-Q for the quarter
ended March 31, 2001. Prior to these filings, the Company had not filed reports
with the SEC except for a Form 8-A, filed in October 1996, for registration of
its common and preferred shares of stock, and a Form 12B-25, filed in December
1996, in which it disclosed that it was unable to file its Form 10-Q for the
Quarter ended December 31, 1996 because of the difficulty associated with the
preparation of the Company's initial financial statements as successor to
Infotech. The Annual Report on Form 10-KSB for the year ended June 30, 2003 was
timely filed. In addition, all Quarterly Reports on Form 10-QSB were filed for
fiscal 2004. The Annual Report on Form 10-KSB for the year ended June 30, 2004
was filed on October 17, 2004.

Overview
--------

         AMASYS is the successor to Infotech, pursuant to Infotech's bankruptcy
proceeding. AMASYS' primary assets are its equity interest in and note
receivable from Comtex and equity interest in Analex. AMASYS owns 16% of the
outstanding equity of Comtex, while the remainder is publicly owned. Comtex is a
leading wholesaler of electronic real-time news and content to major financial
and business information distributors. In addition to its 16% equity ownership
of Comtex, the Company also holds a note receivable in the amount of $856,954
from Comtex (the "Note"). The value of the Note, net of a $308,817 discount is
$519,962 at December 31, 2004. As of December 31, 2004, the Company has
recognized losses in excess of basis of the investment in common stock of
Comtex, as an adjustment to the basis of the Note, of $28,175. The Company also
owns 82,239 shares of common stock of publicly-held Analex, a defense contractor
specializing in systems engineering and developing innovative technical
intelligence solutions in support of U.S. national security. As of December 31,
2004, Analex had 15,421,619 shares of common stock outstanding. The Company


                                       7
<PAGE>


believes that, by virtue of an exemption to the Investment Company Act of 1940
("1940 Act"), the Company should not be deemed to be an "investment company"
and, accordingly, should not be required to register as such. The rules and
interpretations of the SEC and the courts relating to the 1940 Act and to its
exemptions are highly complex and uncertain in numerous aspects. As a result, no
assurance can be given that the Company will not be deemed an "investment
company" for purposes of the 1940 Act and be required to register as an
investment company, in which case the Company could be subject to legal actions
by regulatory authorities and others and could be forced to suspend or terminate
operations. The costs of defending any such action could constitute a material
part of the Company's assets.

Comtex News Network, Inc.
-------------------------

         The Company owns 2,153,437 shares of common stock of Comtex (SEC File
No. 0-10541). Comtex trades on the OTC Electronic Bulletin Board under the
symbol CMTX. Comtex is a leading wholesaler of electronic real-time news and
content to major financial and business information distributors. Comtex
enhances and standardizes news and other content received from more than 65
newswire services and publishers in order to provide editorially superior and
technically uniform products to its customers. Its customers then package,
integrate and distribute Comtex products to their end-users. Comtex processes
more than 25,000 unique real-time news stories each day. For each news story,
processing includes, adding stock ticker symbols, indexing by keyword and
category, and converting the diverse publisher materials and formats received
into XML, the industry standard delivery format.

         The demand for news and content distribution paralleled the tremendous
growth of the Internet during the late 1990's. Similarly, the subsequent
collapse of Internet-related businesses has resulted in business consolidation
and failures, the decline of individual investor web sites, and the erosion of
royalties from corporate solution providers. Given these market conditions,
toward the end of fiscal year 2003, Comtex commenced a thorough evaluation of
its market position, product line, pricing and technology strategies as part of
an overall strategic revitalization plan.

         Comtex relies heavily on third-party information sources for the
content of its product offerings. Interruption in, or the termination of,
service from a significant number of its information sources would affect
Comtex' ability to offer products or maintain product quality. Accordingly, the
failure or inability to restore or replace such interrupted or terminated
services could have an adverse effect on Comtex's revenues.

         Comtex also relies heavily on third party providers for
telecommunications, electrical power, internet connectivity, and related or
similar services as well as system redundancy for the development and delivery
of its products. Failure of, interruption in, or the termination of, these
services would also affect the Comtex' ability to create and deliver products.
Accordingly, the failure or inability to restore or replace such interrupted or
terminated services could have an adverse effect on Comtex's revenues.

                                       8
<PAGE>


         Comtex is a publicly-traded company and more information concerning the
operations of Comtex can be found in its own filings with the SEC.

Analex Corporation
------------------

         The Company owns 82,239 shares of the common stock of Analex (SEC File
No. 0-5404), which trades on the American Stock Exchange under the symbol NLX.
Analex specializes in systems engineering and developing intelligence solutions
in support of national security. Analex focuses on designing, developing and
testing aerospace products and systems; developing innovative technical
solutions for the intelligence community; and analyzing and supporting defense
systems.

         The following discussion and analysis of our financial condition and
results of operations should be read in conjunction with our financial
statements and related notes appearing elsewhere in this report. This discussion
and analysis contains forward-looking statements that involve risks,
uncertainties and assumptions. Actual results may differ materially from those
anticipated in these forward-looking statements as a result of certain factors,
including but not limited to the risks discussed in this report.

Critical Accounting Policies

         Our interim financial statements were prepared in conformity with
accounting principles generally accepted in the United States. As such,
management is required to make certain estimates, judgments and assumptions that
they believe are reasonable based upon the information available. These
estimates and assumptions affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of income and
expense during the periods presented. The significant accounting policies which
management believes are the most critical to aid in fully understanding and
evaluating our reported financial results include the following:

Derivatives
-----------

         SFAS 133 establishes accounting and reporting standards for derivative
instruments and requires that all derivatives be recorded on the balance sheet
at fair value. Additionally, the accounting for changes in fair value depends on
whether the derivative instrument is designated and qualifies as part of a
hedging relationship and, if so, the nature of the hedging activity. Changes in
the fair value of derivatives that do not qualify for hedge treatment are
recognized currently in earnings.

         We have a Note from Comtex. In August 2001, the Note was amended to
include a provision that allows us to convert all or a portion of the
outstanding principal amount, plus accrued interest, into common stock of
Comtex. In accordance with SFAS 133, we have accounted for this conversion
option as an embedded derivative. As a result, the conversion option is being
carried at fair value determined using a Black-Scholes model with changes in the
fair value being recognized currently in earnings. As of December 31, 2004 the

                                       9
<PAGE>

balance of the derivative asset was $50,409 and for the quarters ended December
31, 2004 and 2003, we recognized other income of $7,561 and $61,415,
respectively, for gains in the fair value of the conversion feature.

Investment in Comtex
--------------------

         At December 31, 2004 and 2003, we had a 16% ownership interest in
Comtex. Since we have the ability to significantly influence the operations of
Comtex, we account for our investment in Comtex under the equity method of
accounting. We can significantly influence the operations of Comtex since (i) if
we converted our Note into shares of Comtex, we would have a 22% ownership
interest in Comtex, (ii) the Company as well as our Chairman and CEO are
Comtex's largest individual shareholders, (iii) the Company and our Chairman and
CEO have a combined ownership interest in Comtex of 32%, (iv) our Chairman is
the Chairman and interim Chief Executive Officer of Comtex. During the quarter
ended December 31, 2004, we recognized income of $26,207 for our share of Comtex
earnings and for the quarter ended December 31, 2003, we recognized losses of
$164,065 for our share of Comtex losses.

         The basis of our investment in Comtex has been reduced to $0 as of
December 31, 2003, through the recognition of the Company's share of Comtex's
losses. Losses in excess of the investment basis adjust the basis of the Note,
in accordance with EITF 98-13, Accounting by an Equity Method Investor for
Investee Losses When the Investor Has Loans to and Investments in Other
Securities of the Investee. As of December 31, 2004, the Company has recognized
losses in excess of basis as an adjustment to the basis of the Note of $28,175.

Note Receivable from Comtex
---------------------------

         Statement of Financial Accounting Standards No. 114, Accounting by
Creditors for Impairment of a Loan ("SFAS 114"), suggests that when certain
indicators are present, a loan should be evaluated for collectibility. Since
Comtex has been experiencing financial difficulties in the past year, we
evaluated the Note for collectibility. As a result, we evaluated whether or not
there is an impairment loss by comparing the fair value of the collateral
(security interest in the accounts receivable of Comtex) to the carrying value
of the Note of $519,962. Since the fair value of the collateral exceeds the
carrying value of the Note, we did not record an impairment charge at December
31, 2004.

Valuation of Deferred Tax Assets
--------------------------------

         We recognize deferred tax assets and liabilities based on the
difference between the financial statement and tax bases of assets and
liabilities. We regularly review our deferred tax assets for recoverability and
establish a valuation allowance based on historical taxable income, projected
future taxable income and the expected timing of the reversals of existing
temporary differences. Based upon the level of historical taxable income and
projections for future taxable income over the periods in which the net
operating loss carryforwards are available to reduce income taxes payable, we
have established a full valuation allowance against the deferred tax assets.


                                       10

<PAGE>


Results of Operations
---------------------

Comparison of the three months ended December 31, 2004 to the three months ended
--------------------------------------------------------------------------------
December 31, 2003
-----------------

         The Company had net income of $66,016 during the three months ended
December 31, 2004 compared to a net loss of $114,204 during the three months
ended December 31, 2003. The decrease in the net loss is explained below.

         Operating costs and expenses. Operating costs and expenses decreased
$43,407 to $47,486 during the three months ended December 31, 2004 from $90,893
for the prior fiscal year quarter due primarily to a decrease in professional
services expenses.

         Other income (expense): Other income increased $136,813 from other
expense of $23,311 during the three months ended December 31, 2003 to other
income of $113,502 during the three months ended December 31, 2004. The increase
in other income is comprised primarily of an increase in the equity in earnings
of Comtex of $190,272, offset partially by a decrease in the gain on derivative
asset.

Comparison  of the six months  ended  December  31, 2004 to the six months ended
--------------------------------------------------------------------------------
December 31, 2003
-----------------

         The Company had a net loss of $18,370 during the six months ended
December 31, 2004 compared to a net loss of $223,122 during the six months ended
December 31, 2003. The decrease in the net loss is explained below.

         Operating costs and expenses. Operating costs and expenses decreased
$81,460 to $111,829 during the six months ended December 31, 2004 from $193,289
for the prior fiscal year quarter due primarily to a decrease in professional
services expenses.

         Other income (expense): Other income increased $123,292 from other
expense of $29,833 during the six months ended December 31, 2003 to other income
of $93,459 during the six months ended December 31, 2004. The increase in other
income is comprised primarily of an increase in the equity in earnings of Comtex
of $251,409, offset in part by a $128,512 decrease in the gain on derivative
asset.

Liquidity and Capital Resources
-------------------------------

         The Company had net working capital of $341,054 at December 31, 2004.
The Company has had minimal operating activity since commencing operations in
1996 and has not had any other uses of funds. Accordingly, the Company has not
required any funding sources. The Company expects to meet its short-term
obligations through payments of interest from the Note and from the sales of
equity interests in Analex.


                                       11

<PAGE>

Cautionary Statements Concerning Forward-Looking Statements
-----------------------------------------------------------

         Except for the historical information contained herein, the matters
discussed in this Form 10-QSB include forward-looking statements within the
meaning of Section 21E of the Securities and Exchange Act of 1934. These
forward-looking statements may be identified by reference to a future period or
by use of forward-looking terminology such as "anticipate", "expect", "could",
"may" or other words of a similar nature. Forward-looking statements, which the
Company believes to be reasonable and are made in good faith, are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those expressed in any forward-looking statement made by, or on
behalf of, the Company.

Item 3.      Controls and Procedures

         Under the supervision and with the participation of our Chief Executive
Officer/Chief Financial Officer, we evaluated the effectiveness of the design
and operation of our disclosure controls and procedures (as defined in Rule
13a-15 (e) and 15d-15(e) under the Exchange Act) as of the end of the period
covered by this report. Based upon that evaluation, the Chief Executive
Officer/Chief Financial Officer concluded that, our disclosure controls and
procedures were effective to ensure that information required to be disclosed in
the reports that the Company files or submits under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission's rules and forms.

         Prior to and during this evaluation, certain deficiencies in internal
controls were noted. The Company initiated corrective measures, including
researching accounting matters which resulted in the restatement described in
the Form 10-KSB, and increasing utilization of the Company's outside bookkeeper
to assist in recording, processing and summarizing financial data on a timely
basis. Subsequent to the date of the evaluation including the quarter ended
December 31, 2004, there were no significant changes made in our internal
controls during the period covered by this report or, to our knowledge, in other
factors that could significantly affect these controls, including any corrective
actions with regard to significant deficiencies.

                                     PART II
                                OTHER INFORMATION

Item 1.      Legal Proceedings

         AMASYS has no outstanding, material legal proceedings.

Item 2.      Unregistered Sales of Equity Securities and Use of Proceeds

         None.

Item 3.      Defaults Upon Senior Securities

         None.


                                       12

<PAGE>

Item 4.      Submission of Matters to a Vote of Security Holders

         None.

Item 5.      Other Information

         None.

Item 6.      Exhibits and Reports on Form 8-K

             (b).     Reports on Form 8-K

         The Company filed no reports on Form 8-K during the last quarter of the
period covered by this Report.




                                       13
<PAGE>


                                   SIGNATURES
                                   ----------

         Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, there unto duly authorized.

Date:  February 14, 2005


AMASYS CORPORATION


By:      /s/ C.W. Gilluly, Ed.D.
     ------------------------------------------------
         C.W. Gilluly, Ed.D.
         President and Chief Executive Officer
         (Principal Executive Officer and
         Principal Financial and Accounting Officer)





                                       14