|   |
|--------|

----

----

----

| Delaware                        | 000-22563              | 95-4463937                           |
|---------------------------------|------------------------|--------------------------------------|
| (State or other jurisdiction of | Commission File Number | (I.R.S. Employer Identification No.) |
| incorporation or organization)  |                   |                                 |
|                            |                   |                                 |
|                            | 100 S.E. Second Street |                                 |
|                            | Miami, Florida 33131   |                                 |
|                            | 305/579-8000           |                                 |

----

|  ̈  Large accelerated filer |  ̈  Accelerated filer    |
|-------------------------------------------|----------------------------------------|
|  ̈  Non-accelerated filer   | x  Smaller reporting company |

|   |
|--------|

----

|                                  |                                                                                         | Page   |
|---------------------------------------|----------------------------------------------------------------------------------------------|--------|
|                                  |                                                                                         |
| PART I. FINANCIAL INFORMATION         |                                                                                         |
|                                  |                                                                                         |   |
| Item 1.                               | Condensed Financial Statements (Unaudited):                                                  |   |
|                                  |                                                                                         |   |
|                                  | Condensed Balance Sheets as of June 30, 2011 and December 31, 2010                           | 2      |
|                                  |                                                                                         |   |
|                                  | Condensed Statements of Operations for the three and six months ended June 30, 2011 and 2010 | 3      |
|                                  |                                                                                         |   |
|                                  | Condensed Statements of Cash Flows for the six months ended June 30, 2011 and 2010           | 4      |
|                                  |                                                                                         |   |
|                                  | Notes to the Condensed Financial Statements                                                  | 5      |
|                                  |                                                                                         |   |
| Item 2.                               | Management’s Discussion and Analysis of Financial Condition and Results of Operations  | 7      |
|                                  |                                                                                         |   |
| Item 3.                               | Controls and Procedures                                                                      | 11     |
|                                  |                                                                                         |   |
| PART  II. OTHER INFORMATION |                                                                                         |
|                                  |                                                                                         |   |
| Item 1.                               | Legal Proceedings                                                                            | 12     |
|                                  |                                                                                         |   |
| Item 6.                               | Exhibits                                                                                     | 12     |
|                                  |                                                                                         |   |
| SIGNATURE                             | 13                                                                                           |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | June 30, |         |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------------|--------|--------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2011     |         |   | 2010         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |         |   |         |   |
| Assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |     |         |   |         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |         |   |         |   |
| Current assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |     |         |   |         |   |
| Cash and cash equivalents                                                                                                         |   | $        | 13,430       |   |         | $      | 5,586 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |         |   |         |   |   |   |
| Total assets                                                                                                                                                    |   | $        | 13,430       |   |         | $      | 5,586 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |         |   |         |   |   |   |
| Liabilities and Stockholders’ Deficiency:                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |     |         |   |         |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |         |   |         |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |         |   |         |   |   |   |
| Accounts payable and accrued expenses                                                                                             |   | $        | 37,962       |   |         | $      | 9,076 |   |
| Accrued interest on revolving credit promissory note                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     | 8,253        |   |         |   | 3,930 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |         |   |         |   |   |   |
| Total current liabilities                                                                                                                                       |   |     | 46,215       |   |         |   | 13,006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |         |   |         |   |   |   |
| Revolving credit promissory note from related party                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |     | 68,500       |   |         |   | 37,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |         |   |         |   |   |   |
| Commitments and contingencies                                                                                 |   |     | --           |   |         |   | -- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |         |   |         |   |   |   |
| Stockholders’ deficiency:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |     |         |   |         |   |   |   |
| Preferred stock, $.01 par value.  Authorized 5,000,000 shares; no shares issued and outstanding                                                                                                                                                                                                                                                                                                                                                                                                                     |   |     |  --     |   |         |   |  -- |   |
| Common stock, $.01 par value.  Authorized 25,000,000 shares; 3,270,000 shares issued and outstanding                                                                                                                                                                                                                                                                                                                                                                                                                |   |     |  32,700 |   |         |   |  32,700 |   |
| Additional paid-in capital                                                                                                        |   |     | 8,223,444    |   |         |   | 8,223,444 |   |
| Accumulated deficit                                                                                                               |   |     | (8,357,429   | )      |         |   | (8,301,064 | ) |
| Accumulated other comprehensive income                                                                                            |   |     | --           |   |         |   | -- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |         |   |         |   |   |   |
| Total stockholders’ deficiency                                                                                                                            |   |     | (101,285     | )      |         |   | (44,920 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |     |         |   |         |   |   |   |
| Total liabilities and stockholders’ deficiency                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $        | 13,430       |   |         | $      | 5,586 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Three Months Ended |      |    | Six Months Ended |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|-----------|---------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | June 30,           |      |    | June 30,         |   |   | June 30, |   |   | June 30, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2011               |      |    | 2010             |   |   | 2011 |   |   | 2010 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |      |    |             |   |   |   |   |   |   |   |
| Revenues                                                                                                 |   | $                  | --        |    |             | $      | -- |   |   | $ | -- |   |   | $ | -- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |      |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Cost and expenses:                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |               |      |    |             |   |   |   |   |   |   |   |   |   |   |   |
| General and administrative                                                                                                        |   |               | 41,210    |    |             |   | 9,352 |   |   |   | 52,042 |   |   |   | 17,270 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               | 41,210    |    |             |   | 9,352 |   |   |   | 52,042 |   |   |   | 17,270 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |      |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Operating loss                                                                                           |   |               | (41,210   | )       |             |   | (9,352 | ) |   |   | (52,042 | ) |   |   | (17,270 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |      |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                                                                                                                                                                                                                                                                                                                                                                                                            |   |               |      |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                                                                  |   |               | (1,613    | )       |             |   | (624 | ) |   |   | (4,323 | ) |   |   | (1,245 | ) |
| Recovery of unclaimed property                                                                                                    |   |               | -         |    |             |   | 2,825 |   |   |   | - |   |   |   | 2,825 |   |
| Total other income (expense)                                                                                                      |   |               | (1,613    | )       |             |   | 2,201 |   |   |   | (4,323 | ) |   |   | 1,580 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |      |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                                 |   | $                  | (42,823   | )  |             | $      | (7,151 | )  |   | $ | (56,365 | )  |   | $ | (15,690 | )  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |      |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per share (basic and diluted)                                                                   |   | $                  | (0.01     | )  |             | $      | (0.00 | )  |   | $ | (0.02 | )  |   | $ | (0.00 | )  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |               |      |    |             |   |   |   |   |   |   |   |   |   |   |   |
| Shares used in computing net loss per share                                                                                                                                                                                                                                                                                                                                                                                                        |   |               | 3,270,000 |    |             |   | 3,232,087 |   |   |   | 3,270,000 |   |   |   | 3,176,353 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Six Months Ended |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|---------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | June 30,         |    |   | June 30, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2011             |    |   | 2010 |   |
| Cash flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |             |    |   |   |   |
| Net loss                                                                                                                                                       |   | $                | (56,365 | ) |   | $ | (15,690 | ) |
| Changes in assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |             |    |   |   |   |   |   |
| Increase in other receivable                                                                                                                    |   |             | -       |   |   |   | (2,825 | ) |
| Increase (decrease) in accounts payable and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |             | 28,886  |   |   |   | (3,924 | ) |
| Increase in accrued interest on revolving credit promissory note                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |             | 4,323   |   |   |   | 1,245 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |    |   |   |   |   |   |
| Net cash used in operating activities                                                                                                           |   |             | (23,156 | ) |   |   | (21,194 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |    |   |   |   |   |   |
| Net cash from investing activities                                                                                                              |   |             | -       |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |    |   |   |   |   |   |
| Net cash from financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |             |    |   |   |   |   |   |
| Borrowings under revolving credit promissory note                                                                                               |   |             | 31,000  |   |   |   | 15,000 |   |
| Proceeds from issuance of common stock                                                                                                          |   |             | -       |   |   |   | 15,000 |   |
| Net cash provided by financing activities                                                                                                                      |   |             | 31,000  |   |   |   | 30,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |    |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                                                                       |   |             | 7,844   |   |   |   | 8,806 |   |
| Cash and cash equivalents at beginning of period                                                                                                |   |             | 5,586   |   |   |   | 9,004 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |             |    |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                                                                      |   | $                | 13,430  |   |   | $ | 17,810 |   |

----

| (1) | Business and Organization |
|-----|---------------------------|

| (2) | Principles of Reporting |
|-----|-------------------------|

----

| (3) | Other Income |
|-----|--------------|

| (4)   | Comprehensive Loss |
|-----------------|--------------------|

| (5)   | Related Party Transactions |
|-----------------|----------------------------|

| (6)  | Subsequent Event |
|-----------|------------------|

----

| Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

----

| Item 2.  | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued |
|---------------|---------------------------------------------------------------------------------------------------------|

----

| Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued |
|---------|---------------------------------------------------------------------------------------------------------|

----

| Item 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS - Continued |
|---------|---------------------------------------------------------------------------------------------------------|

----

| Item 3. | CONTROLS AND PROCEDURES |
|---------|-------------------------|

----

|   | 31.1 | Certification of Chief Executive Officer, Pursuant to Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification of Chief Financial Officer, Pursuant to Exchange Act Rule 13a-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification of Chief Executive Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification of Chief Financial Officer, Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                | CDSI HOLDINGS INC. |                         |
|-----------------------------------------------------|--------------------|------------------------------|
|                                                | (Registrant)       |                         |
|                                                |               |                         |   |
| Date:      August 15, 2011 | By:                | /s/J. Bryant Kirkland III    |   |
|                                                |               | J. Bryant Kirkland III       |   |
|                                                |               | Vice President, Treasurer    |   |
|                                                |               | and Chief Financial Officer  |   |
|                                                |               | (Duly Authorized Officer and |   |
|                                                |               | Chief Accounting Officer)    |   |

----