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 March 31, 2005; 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

Check whether the issuer 1) filed all reports required to be filed by Section 13
or 15(d) of the  Exchange  Act during  the past 12 months  (or for such  shorter
period that the  registrant  was required to file such  reports) and 2) has been
subject to such filing  requirements  for the past 90 days. Yes  X   No
                                                                ---     ---

The Company knows of no trading in its Common Stock since its  inception.  As of
March 31, 2005, 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 March 31, 2005 (unaudited)

         Statements of Operations                                             2
          for the Three and Nine Months Ended
          March 31, 2005 and 2004 (unaudited)

         Statements of Cash Flows                                             3
          for the Nine Months Ended
          March 31, 2005 and 2004 (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                                                            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>

                                                               March 31, 2005
                                                           ---------------------
Assets
Current assets:
<S>                                                                      <C>
   Cash and cash equivalents                                             4,237
   Short-term investment                                               253,897
                                                           ---------------------
Total current assets                                                   258,134

Note receivable-related party, net of discount of
   $285,752                                                            560,768
Derivative asset                                                        60,491
                                                           ---------------------
Total assets                                               $           879,393
                                                           =====================

Liabilities and stockholders' equity
Current liabilities:
   Accounts payable and accrued expenses                   $             5,624
                                                           ---------------------
Total current liabilities                                                5,624

Stockholders' 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                                             799,525
Accumulated other comprehensive income                                 179,509
Retained deficit                                                      (129,298)
                                                           ---------------------
Total stockholders' equity                                             873,769
                                                           ---------------------

Total liabilities and stockholders' equity                 $           879,393
                                                           =====================
</TABLE>

See accompanying notes.
                                       1

<PAGE>

                               AMASYS Corporation
                            Statements of Operations
                                   (Unaudited)
<TABLE>
<CAPTION>


                                                    Three Months Ended March 31,            Nine Months Ended March 31,
                                                      2005                2004                2005                2004
                                               ------------------- ------------------- ------------------- -------------------
Operating costs and expenses:
<S>                                            <C>                 <C>                 <C>                 <C>
   Professional services                       $         29,056    $         19,691    $        127,744    $        195,252
   General and administrative                             3,725               7,456              16,866              25,183
                                               ------------------- ------------------- ------------------- -------------------
Total operating costs and expenses                       32,781              27,147             144,610             220,435

Other income (expense):
   Gain on sale of short-term investment                 23,800              22,950              59,045              57,800
   Interest income                                       44,489              44,489             133,467             133,467
   Equity in earnings (losses) of Comtex                 17,401             (10,723)             64,771            (214,762)
   Gain (loss) on derivative asset                       10,082             (57,130)            (68,052)             (6,752)
                                               ------------------- ------------------- ------------------- -------------------
Total other income (expense)                             95,772                (414)            189,231             (30,247)
                                               ------------------- ------------------- ------------------- -------------------

Income (loss) before income taxes                        62,991             (27,561)             44,621            (250,682)

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

Net income (loss)                              $         62,991    $        (27,561)   $         44,621    $       (250,682)
                                               =================== =================== =================== ===================
Earnings (loss) per share:
   Basic                                       $           0.02     $         (0.02)    $         (0.01)    $         (0.15)
                                               =================== =================== =================== ===================
   Diluted                                     $           0.02     $         (0.02)    $         (0.01)    $         (0.15)
                                               =================== =================== =================== ===================
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>
                                                                Nine Months Ended March 31,
                                                                  2005                2004
                                                           ------------------- -------------------
Operating activities:
<S>                                                        <C>                 <C>
Net income (loss):                                         $          44,621    $       (250,682)
Adjustments to reconcile net income (loss) to net cash
  used in operating activities:
   Amortization of note receivable discount                          (69,195)            (69,195)
   Loss on derivative asset                                           68,052               6,752
   Gain on sale of short-term investment                             (59,045)            (57,800)
   Equity in (earnings) losses of Comtex                             (64,771)            214,762
   Changes in operating assets and liabilities
     Accounts payable and accrued expenses                            (2,852)             14,866
                                                           -------------------  ------------------
Net cash used in operating activities                                (83,190)           (141,297)

Investing activities:
    Proceeds from sale of short-term investment                       77,420              76,018
                                                           -------------------  ------------------
Net cash provided by investing activities                             77,420              76,018

Net decrease in cash                                                  (5,770)            (65,279)
Cash at beginning of period                                           10,007              73,667
                                                           -------------------  ------------------
Cash at end of period                                      $           4,237    $          8,388
                                                           ===================  ==================
</TABLE>

See accompanying notes.

                                       3
<PAGE>


                               Amasys Corporation
                    Notes to Financial Statements (Unaudited)
                                 March 31, 2005

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.  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 has a stock-based compensation plan. Currently, 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 nine and  three
months ended March 31, 2005 and 2004.

In December  2004,  the FASB issued SFAS No. 123R,  ("SFAS  123R"),  Share-Based
Payment,  amending SFAS 123 to require companies to record as expense the effect
of  equity-based  compensation,  including  stock  options,  over the applicable
vesting period.  SFAS 123R also requires more extensive  disclosures  concerning
stock options than required  under  current  standards.  The new rule applies to
option grants made after  adoption as well as options that are not vested at the
date of  adoption.  SFAS 123R  becomes  effective  no later than fiscal  periods
beginning after December 15, 2005 for small business  issuers.  The Company does
not believe that the adoption of SFAS 123R will have a significant effect on its
financial statements since its stock options are fully vested.

                                       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 March 31,          Nine Months Ended March 31,
                                                      ------------------------------------ ------------------------------------
                                                            2005              2004               2005              2004
Numerator:
----------
<S>                                                            <C>              <C>        <C>               <C>
   Net income (loss)                                  $        62,991   $       (27,561)   $        44,621   $      (250,682)
   Preferred stock dividends                                  (24,500)          (24,500)           (73,500)          (73,500)
                                                      ----------------- ------------------ ----------------- ------------------
   Numerator for basic earnings per share                      38,491           (52,061)           (28,879)         (324,182)
   Effect of dilutive securities                               24,500            24,500             73,500            73,500
                                                      ----------------- ------------------ ----------------- ------------------
   Numerator for dilutive earnings per share          $        62,991   $       (27,561)   $        44,621   $      (250,682)
                                                      ================= ================== ================= ==================

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                       $        0.02     $       (0.02)     $       (0.01)    $       (0.15)
                                                      ================= ================== ================= ==================
Diluted earnings (loss) per share                     $        0.02     $       (0.02)     $       (0.01)    $       (0.15)
                                                      ================= ================== ================= ==================
</TABLE>

Diluted  loss per share is equal to basic loss per share  since all  potentially
dilutive  securities are  anti-dilutive for each of the periods presented with a
net loss,  used as the  numerator in the basic  earnings per share  calucations.
Diluted earnings per share for the three and nine months ended March 31, 2005 do
not include the effects of stock options as the inclusion of these options would
have been anti-dilutive.

4.       Investment in Common Stock - Related Party

At March 31, 2005, 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 March 31,  2005 and  income  statement  information  of Comtex  for the three
months and nine months ended March 31, 2005 and 2004:

                                       5
<PAGE>


                               Amasys Corporation
                    Notes to Financial Statements (Unaudited)
                                 March 31, 2005

<TABLE>
<CAPTION>
                                                 March 31, 2005
                                                 ----------------
<S>                                              <C>
Current assets                                   $    1,764,662
Other assets                                            562,823
Current liabilities                                   1,475,013
Long-term liabilities                                   877,114

</TABLE>


<TABLE>
<CAPTION>
                                                         Three Months Ended                  Nine Months Ended
                                                             March 31,                           March 31,
                                                 ----------------------------------- ----------------------------------
                                                       2005              2004             2005              2004
                                                 ----------------- ----------------- ---------------- -----------------
<S>                                              <C>               <C>               <C>              <C>
Revenues                                         $    1,927,293    $    1,962,035    $    6,000,220   $    6,148,975
Gross Profit                                          1,009,708         1,114,573         3,135,837        3,454,732
Net income (loss)                                        82,031           (67,661)          297,756       (1,355,036)
</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                  Nine Months Ended
                                                             March 31,                           March 31,
                                                 ----------------------------------- ----------------------------------
                                                       2005              2004             2005              2004
                                                 ----------------- ----------------- ---------------- -----------------
<S>                                              <C>               <C>               <C>              <C>
Net income  (loss)                               $       62,991    $      (27,561)   $       44,621   $     (250,682)
Unrealized (loss) gain on short-term investment        (100,986)            7,333           (56,303)          30,449
                                                 ----------------- ----------------- ---------------- -----------------
Comprehensive loss                               $      (37,995)   $      (20,228)   $      (11,682)  $     (220,233)
                                                 ================= ================= ================ =================
</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 March 31, 2005 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 $285,752 discount,  is
$560,768 at March 31,  2005.  As of March 31, 2005,  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 $10,434.  The Company also owns 74,239
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 March 31,
2005,  Analex had  15,431,619  shares of common stock  outstanding.  The Company
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"

                                       7
<PAGE>

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.OB. 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.

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

                                       8
<PAGE>

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

     The Company owns 74,239  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 March 31, 2005, the balance of the
derivative asset was $60,491 and for the quarters ended March 31, 2005 and 2004,

                                       9
<PAGE>

we recognized  other income (loss) of $10,082 and $(57,130),  respectively,  for
gains (losses) in the fair value of the conversion feature.

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

     At March 31,  2005 and 2004,  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 March
31, 2005, we recognized  income of $17,401 for our share of Comtex  earnings and
for the quarter ended March 31, 2004,  we  recognized  losses of $10,723 for our
share of Comtex losses.

     The basis of our  investment  in Comtex has been  reduced to $0 as of March
31, 2005,  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 March 31, 2005, the Company has recognized  losses in excess of
basis as an adjustment to the basis of the Note of $10,434.

Income Taxes
------------

     There is no provision for income taxes for the three months and nine months
ended March 31, 2005 and 2004,  due to the  utilization of federal and state net
operating loss carryforwards.

     The Company  accounts  for income  taxes in  accordance  with SFAS No. 109,
Accounting  for  Income  Taxes.  Under  this  method,  deferred  tax  assets and
liabilities  are  determined  based  on the  difference  between  the  financial
statement  and tax bases of assets and  liabilities  using the enacted  rates in
effect for the year in which the differences  are expected to reverse.  Deferred
tax assets are reduced by a valuation allowance when the Company cannot make the
determination  that it is more likely  than not that some  portion or all of the
related tax asset will be realized.

Note Receivable
---------------

     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  had  been  experiencing  financial  difficulties  in the past  year,  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  $560,768.  Since  the  fair  value of the
collateral  exceeds  the  carrying  value  of the  Note,  we did not  record  an
impairment charge at March 31, 2005.

                                       10
<PAGE>


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

Comparison  of the three  months  ended March 31, 2005 to the three months ended
March 31, 2004
-------------------------------------------------------------------------------

     The Company had net income of $62,991  during the three  months ended March
31, 2005  compared to a net loss of $27,561  during the three months ended March
31, 2004. The decrease in the net loss is explained below.

     Operating costs and expenses: Operating costs and expenses increased $5,634
to $32,781  during the three  months  ended March 31, 2005 from  $27,147 for the
prior fiscal year quarter due primarily to an increase in professional  services
expenses.

     Other income  (expense):  Other income increased $96,186 from other expense
of $414 during the three  months ended March 31, 2004 to other income of $95,772
during the three months  ended March 31,  2005.  The increase in other income is
comprised  primarily  of an  increase  in the  equity in  earnings  of Comtex of
$28,124 and an increase in the gain on derivative asset of $67,212.

Comparison  of the nine months  ended  March 31,  2005 to the nine months  ended
March 31, 2004
--------------------------------------------------------------------------------

     The  Company had net income of $44,621  during the nine months  ended March
31, 2005  compared to a net loss of $250,682  during the nine months ended March
31, 2004. The decrease in the net loss is explained below.

     Operating  costs  and  expenses:  Operating  costs and  expenses  decreased
$75,825 to $144,610  during the nine months  ended March 31, 2005 from  $220,435
for the prior  fiscal year quarter due  primarily to a decrease in  professional
services expenses.

     Other income (expense):  Other income increased $219,478 from other expense
of $30,247  during  the nine  months  ended  March 31,  2004 to other  income of
$189,231  during the nine months  ended March 31,  2005.  The  increase in other
income is comprised primarily of an increase in the equity in earnings of Comtex
of  $279,533,  offset in part by a $61,300  increase  in the loss on  derivative
asset.

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

     The  Company had net working  capital of  $252,510 at March 31,  2005.  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

     Exhibits

     31.1 Certification  of Chief Executive  Officer  Pursuant to Section 302 of
          the Sarbanes-Oxley Act of 2002

     31.2 Certification  of Chief Financial  Officer  Pursuant to Section 302 of
          the Sarbanes-Oxley Act of 2002

     32.1 Certification  of Chief Executive  Officer  Pursuant to Section 906 of
          the Sarbanes-Oxley Act of 2002

     32.2 Certification  of Chief Financial  Officer  Pursuant to Section 906 of
          the Sarbanes-Oxley Act of 2002


                                       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:  May 16, 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)






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