UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-QSB

(Mark One)

[ X ]

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the quarterly period ended



March 31, 2007



OR

[    ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________________ to _____________________



Commission file number 000-51870



INTEGRATED MICROMETALLURGICAL SYSTEMS, INC.

(Exact name of small business issuer as specified in its charter)



NEVADA                                                         20-0667864

State or jurisdiction of incorporation                                                    (I.R.S Employer I.D

or organization                                                                                             No.)



7025 North Espe Spokane, Washington 99217-9788

(Address of principal executive offices)

(509) 922-8804

(Issuers telephone number)



(Former name, former address and former fiscal year, if changed since last report)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes X No ___

As of March 31, 2007, there were 11,200,000 shares of the registrants common stock outstanding.



Transitional Small Business Disclosure Format (Check one):  Yes ___No X











Integrated Micrometallurgical Systems, Inc.

INDEX



PART I.

FINANCIAL INFORMATION



Item 1.

Financial Statements



Balance Sheets as of March 31, 2007 (unaudited)

and June 30, 2006 (audited)

1

Statements of Operations (unaudited) for the three and nine

months ended March 31, 2007 and 2006

2



Statements of Cash Flows (unaudited) for the nine

months ended March 31, 2007 and 2006

3



Notes to Financial Statements



4



Item 2.

Plan of Operations



Item 3.

Controls and Procedures



PART II.

OTHER INFORMATION



Item 6.

Exhibits and Reports on Form 8-K





































































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|INTEGRATED MICROMETALLURGICAL SYSTEMS, INC.
(A DEVELOPMENT STAGE ENTERPRISE)

BALANCE SHEETS
|--------------------------------------------------------------------------------------------
|                                                                                            
|                                                                                            
|                                                                                            
|                                                                                            
|ASSETS                                                                                      
|                                                                                            
|CURRENT ASSETS                                                                              
|Cash                                                                                        
|Total Currents Assets                                                                       
|PROPERTY AND EQUIPMENT, NET                                                                 
|                                                                                            
|OTHER ASSETS NET                                                                            
|                                                                                            
|TOTAL ASSETS                                                                                
|                                                                                            
|LIABILITIES AND STOCKHOLDERS EQUITY                                                        
|                                                                                            
|CURRENT LIABILITIES                                                                         
|Accounts payable                                                                            
|Related party payables                                                                      
|Accrued liabilities                                                                         
|Total Current Liabilities                                                                   
|                                                                                            
|LONG TERM LIABILITIES                                                                       
|Note payable  related party                                                                
|Total Long-Term Liabilities                                                                 
|                                                                                            
|COMMITMENTS AND CONTINGENCIES                                                               
|                                                                                            
|STOCKHOLDERS EQUITY                                                                        
|Common stock, $0.001 par value;                                                             
|200,000,000 shares authorized, 11,200,000                                                   
|and 11,120,000 shares issued and                                                            
|outstanding, respectively                                                                   
|Additional paid-in capital                                                                  
|Accumulated deficit                                                                         
|Total Stockholders Equity                                                                  
|                                                                                            
|TOTAL LIABILITIES AND                                                                       
|STOCKHOLDERS EQUITY                                                                        
|                                                                                            





See accompanying condensed notes to interim financial statements





























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|INTEGRATED MICROMETALLURGICAL SYSTEMS, INC. |                                     |                              |            |                              |            |                             |            |             |             
|------------------------------------------- | ----------------------------------- | ---------------------------- | ---------- | ---------------------------- | ---------- | --------------------------- | ---------- | ----------- | ------------
|(A DEVELOPMENT STAGE ENTERPRISE)            |                                     |                              |            |                              |            |                             |            |             |             
|STATEMENTS OF OPERATIONS                    |                                     |                              |            |                              |            |                             |            |             |             
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|                                            |                                     |                              |            | Three Months Ended March 31, |            | Nine Months Ended March 31, |            |             | to March 31,
|                                            |                                     |                              |            | 2007                         |            | 2006                        |            | 2007        |             
|                                            |                                     |                              |            | (unaudited)                  |            | (unaudited)                 |            | (unaudited) |             
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|REVENUES                                    | $                                   | -                            | $          | -                            | $          | -                           | $          | -           |             
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|OPERATING EXPENSES                          |                                     |                              |            |                              |            |                             |            |             |             
|                                            | Amortization and depreciation       |                              | 4,276      |                              | 4,233      |                             | 12,826     |             | 12,826      
|                                            | Consulting expense                  |                              | -          |                              | 11,601     |                             | -          |             | 26,805      
|                                            | Salary and wages                    |                              | 18,445     |                              | 21,519     |                             | 55,335     |             | 55,925      
|                                            | General and administrative expenses |                              | 5,836      |                              | 8,924      |                             | 33,439     |             | 52,045      
|                                            | Research and development            |                              | -          |                              | 18,820     |                             | 37,151     |             | 55,726      
|                                            |                                     | Total Operating Expenses     |            | 28,557                       |            | 65,097                      |            | 138,751     |             
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|LOSS FROM OPERATIONS                        |                                     | (28,557)                     |            | (65,097)                     |            | (138,751)                   |            | (203,327)   |             
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|OTHER INCOME (EXPENSE)                      |                                     |                              |            |                              |            |                             |            |             |             
|                                            | Interest income                     |                              | -          |                              | -          |                             | -          |             | -           
|                                            | Interest expense                    |                              | (753)      |                              | (639)      |                             | (2,592)    |             | (2,376)     
|                                            |                                     | Total Other Income (Expense) |            | (753)                        |            | (639)                       |            | (2,592)     |             
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|LOSS BEFORE TAXES                           |                                     | (29,310)                     |            | (65,736)                     |            | (141,343)                   |            | (205,703)   |             
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|INCOME TAX EXPENSE                          |                                     | -                            |            | -                            |            | -                           |            | -           |             
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|NET LOSS                                    | $                                   | (29,310)                     | $          | (65,736)                     | $          | (141,343)                   | $          | (205,703)   |             
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|NET LOSS PER COMMON SHARE,                  |                                     |                              |            |                              |            |                             |            |             |             
|                                            | BASIC AND DILUTED                   | $                            | nil        | $                            | (0.01)     | $                           | (0.01)     | $           | (0.02)      
|                                            |                                     |                              |            |                              |            |                             |            |             |             
|WEIGHTED AVERAGE NUMBER                     |                                     |                              |            |                              |            |                             |            |             |             
|                                            | OF COMMON SHARES OUTSTANDING,       |                              |            |                              |            |                             |            |             |             
|                                            | BASIC AND DILUTED                   |                              | 11,193,889 |                              | 10,840,000 |                             | 11,193,889 |             | 10,840,000  





See accompanying condensed notes to interim financial statements







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|INTEGRATED MICROMETALLURGICAL SYSTEMS, INC.  |                                                      |                                              |           |                  
|-------------------------------------------- | ---------------------------------------------------- | -------------------------------------------- | --------- | -----------------
|(A DEVELOPMENT STAGE ENTERPRISE)             |                                                      |                                              |           |                  
|STATEMENTS OF CASH FLOWS                     |                                                      |                                              |           |                  
|                                             |                                                      |                                              |           |                  
|                                             |                                                      |                                              |           |                  
|                                             |                                                      |                                              |           |                  
|                                             |                                                      |                                              |           | Nine Months Ended
|                                             |                                                      |                                              |           | March 31,        
|                                             |                                                      |                                              |           | 2007             
|                                             |                                                      |                                              |           | (unaudited)      
|                                             |                                                      |                                              |           |                  
|CASH FLOWS FROM OPERATING ACTIVITIES:        |                                                      |                                              |           |                  
|                                             | Net loss                                             | $                                            | (141,343) | $                
|                                             | Adjustments to reconcile net loss to net cash        |                                              |           |                  
|                                             | provided (used) by operating activities:             |                                              |           |                  
|                                             |                                                      | Amortization and depreciation                |           | 12,826           
|                                             |                                                      | Options granted for services                 |           | -                
|                                             |                                                      | Amortization of beneficial conversion        |           | 2,592            
|                                             |                                                      | Accounts payable                             |           | 14,965           
|                                             |                                                      | Related party payables                       |           | 93,972           
|                                             |                                                      | Accrued expenses                             |           | (1,309)          
|                                             |                                                      | Net cash used by operating activities        |           | (18,297)         
|                                             |                                                      |                                              |           |                  
|CASH FLOWS PROVIDED BY INVESTING ACTIVITIES: |                                                      |                                              |           |                  
|                                             |                                                      | Purchase of fixed assets                     |           | -                
|                                             |                                                      | Net cash used by investing activities        |           | -                
|                                             |                                                      |                                              |           |                  
|CASH FLOWS PROVIDED BY FINANCING ACTIVITIES: |                                                      |                                              |           |                  
|                                             |                                                      | Acquisition of subsidiary and reorganization |           | -                
|                                             |                                                      | Stock issued for cash                        |           | 16,000           
|                                             |                                                      | Proceeds from loan payable, related party    |           | -                
|                                             |                                                      | Payment of loan payable, related party       |           | -                
|                                             |                                                      | Net cash provided by financing activities    |           | 16,000           
|                                             |                                                      |                                              |           |                  
|                                             | Net increase (decrease) in cash and cash equivalents |                                              | (2,297)   |                  
|                                             |                                                      |                                              |           |                  
|Cash at beginning of period                  |                                                      | 2,597                                        |           | 11,701           
|                                             |                                                      |                                              |           |                  
|Cash at end of period                        | $                                                    | 300                                          | $         | 97               
|                                             |                                                      |                                              |           |                  
|                                             |                                                      |                                              |           |                  
|SUPPLEMENTAL CASH FLOW DISCLOSURES:          |                                                      |                                              |           |                  
|                                             | Income taxes paid                                    | $                                            | -         | $                
|                                             | Interest paid                                        | $                                            | -         | $                
|                                             |                                                      |                                              |           |                  
|NON-CASH INVESTING AND FINANCING ACTIVITIES: |                                                      |                                              |           |                  
|                                             | License acquired by issuance of stock options        | $                                            | -         | $                
|                                             | Note payable issued for license                      | $                                            | -         | $                

See accompanying condensed notes to interim financial statements.









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INTEGRATED MICROMETALLURGICAL SYSTEMS, INC

(A DEVELOPMENT STAGE ENTERPRISE)



NOTES TO THE FINANCIAL STATEMENTS

March 31, 2007







---

INTEGRATED MICROMETALLURGICAL SYSTEMS, INC

(A DEVELOPMENT STAGE ENTERPRISE)



NOTES TO THE FINANCIAL STATEMENTS

March 31, 2007









NOTE 1  BASIS OF PRESENTATION



The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Regulation S-B as promulgated by the Securities and Exchange Commission.  Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles in the United States of America for complete financial statements.  These unaudited interim financial statements should be read in conjunction with the Companys audited financial statements for the year ended June 30, 2006.  In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented.  Operating results for the nine month period ended March 31, 2007 are not necessarily indicative of the results that may be expected for the year ending June 30, 2007.



The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period.  Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Companys financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of the Companys financial position and results of operations.





NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES



This summary of significant accounting policies of Integrated Micrometallurgical Systems, Inc. (hereinafter the Company or IMS) is presented to assist in understanding the Companys financial statements.  The financial statements and notes are representations of the Companys management, which is responsible for their integrity and objectivity.  These accounting policies conform to accounting principles generally accepted in the United States of America, and have been consistently applied in the preparation of the financial statements.



Accounting Pronouncements  Recent

In February, 2007, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities  Including an amendment of FASB Statement No. 115 (hereinafter SFAS No. 159). This statement permits entities to choose to measure many financial instruments and certain other items at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. This Statement is expected to expand the use of fair value measurement, which is consistent with the Boards long-term measurement objectives for accounting for financial instruments. This statement is effective as of the beginning of an entitys first fiscal year that begins after November 15, 2007, although earlier adoption is permitted. Management has not determined the effect that adopting this statement would have on the Companys financial condition or results of operation.



In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 158, Employers Accounting for Defined Benefit Pension and Other Postretirement Plans  an amendment of FASB Statements No. 87, 88, 106, and 132(R) (hereinafter :SFAS No. 158). This statement requires an employer to recognize the overfunded or underfunded statues of a defined benefit postretirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through comprehensive income of a business entity or changes in unrestricted net assets of a not for profit organization. This statement also requires an employer to measure the funded status of a plan as of the date of its year end statement of financial position, with limited exceptions. The adoption of this statement had no immediate material effect on the Companys financial condition or results of operations.



Going Concern

As shown in the accompanying financial statements, the Company had an accumulated deficit of $788,534 incurred through March 31, 2007 and has no revenues.  The Company is currently putting technology in place which will, if successful, mitigate these factors which raise substantial doubt about the Companys ability to continue as a going concern.  The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be necessary in the event the Company cannot continue in existence.



Management has established plans designed to begin sales of the Company’s systems, license the NeoMetxTM technology, raise additional equity capital and decrease debt.  The Company plans on continuing to reduce expenses. With small gains from any combination of sales of systems, licensing of technology, custom processing international sales and providing research and development services for third parties, management believes that it will eventually be able to reverse the present deficit.  Management intends to seek additional capital from new equity securities offerings that will provide funds needed to increase liquidity, fund internal growth and fully implement its business plan. An estimated $1 million is believed necessary to continue operations and increase development through the next fiscal year.  The timing and amount of capital requirements will depend on a number of factors, including demand for products and services and the availability of opportunities for international expansion through strategic alliances with larger corporations, licensing of the NeoMetxTM technology and the sale of systems.



Research and Development

Research and development expenses are charged to operations as incurred. The cost of intellectual property purchased from others that is immediately marketable or that has an alternative future use is capitalized and amortized as intangible assets. Capitalized costs are amortized using the straight-line method over the estimated economic life, typically 10 years, of the related asset. The Company periodically reviews its capitalized patent costs to assess recoverability based on the projected undiscounted cash flows from operations. Impairments are recognized in operating results when a permanent diminution in value occurs. At March 31, 2007 and 2006, the Company had no capitalized research and development costs.



Use of Estimates

The process of preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses.  Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements.  Accordingly, upon settlement, actual results may differ from estimated amounts.





NOTE 3  DEFERRED TAX ASSET



At March 31, 2007, the Company had deferred tax assets calculated at an expected rate of 34% of approximately $268,000, principally arising from net operating loss carryforwards for income tax purposes.  As management of the Company cannot determine that it is more likely than not that the Company will realize the benefit of the deferred tax asset, a valuation allowance equal to the deferred tax asset has been established at March 31, 2007.  The significant components of the deferred tax asset at March 31, 2007 and December 31, 2006 were as follows:



|                                       |   | March 31, |      |   | June 30, 
|-------------------------------------- | - | --------- | ---- | - | ---------
|2007                                   |   |           | 2006
|Net operating loss carryforward        | $ | 788,000   |      | $ | 558,000  
|                                       |   |           |      |   |          
|Deferred tax asset                     | $ | 268,000   |      | $ | 189,000  
|Deferred tax asset valuation allowance |   | (268,000) |      |   | (189,000)
|Net deferred tax asset                 | $ | -         |      | $ | -        



At March 31, 2007, the Company has net operating loss carryforwards of approximately $788,000, which expire in the years 2025 and 2026.  Not included in the above calculations is $89,250 for stock options granted that are not deductible for tax purposes.  The change in the allowance account from June 30, 2006 to March 31, 2007 was $79,000.







NOTE 4  PROPERTY AND EQUIPMENT



Property and equipment are stated at cost.  Depreciation is provided using the straight-line method over the estimated useful lives of the assets.  The useful lives of property, plant and equipment for purposes of computing depreciation are three to seven years. The following is a summary of property, equipment, and accumulated depreciation:



|                              |      |   | March 31, |      | June 30,
|----------------------------- | ---- | - | --------- | ---- | --------
|                              | 2007 |   |           | 2006
|Plant assets                  |      | $ | 23,820    |      | $       
|Office equipment              |      |   | 15,535    |      |         
|                              |      |   |           |      |         
|Subtotal                      |      |   | 39,355    |      |         
|Less accumulated depreciation |      |   | (21,350)  |      |         
|                              |      | $ | 18,005    |      | $       

Depreciation expense on tangible assets for the periods ended March 31, 2007 and 2006 was $1,984 and $1,941, respectively.  The Company evaluates the recoverability of property and equipment when events and circumstances indicate that such assets might be impaired.  The Company determines impairment by comparing the undiscounted future cash flows estimated to be generated by these assets to their respective carrying amounts.  Maintenance and repairs are expensed as incurred.  Replacements and betterments are capitalized.  The cost and related reserves of assets sold or retired are removed from the accounts, and any resulting gain or loss is reflected in results of operations.



NOTE 5  TECHNOLOGY LICENSE AGREEMENT AND TRANSACTION



On May 25, 2004, the Company signed an agreement with Dr. Paul Vose, a consultant, who granted exclusive rights to patents and applications relating to the patents for use by the Company.  These patents are related to the NeoMetxTM technology that is the foundation of the Company’s business plan.  Under the agreement, the Company will pay to Dr. Vose $25,000 cash and 1,250,000 options valued at $112,500 in a one-time payment, due May 25, 2007.  The Company also agrees to pay to Dr. Vose a 3% royalty on the net selling price of any products, equipment, consumables or services sold by the Company that uses the technologies under the patents.



The Company accounted for this transaction by recording a license cost of $137,500, a payable of $25,000 for the amount of cash to be paid on May 25, 2007, and issuing the options valued at $112,500.  The Company has determined that the estimated useful life of the license is 15 years, and is amortizing the license over that period of time.  The useful life is based upon the expected underlying patents and provisional patent filings.  Amortization expense for the nine months ended March 31, 2007 and 2006 was $20,628.



The $25,000 note relating to the license was discounted for the difference in the effective interest of 12% and the lack of a stated interest rate.  The discount, $7,527, is being amortized as interest expense over the life of the loan, or three years.  Interest expense for the nine months ended March 31, 2007 and 2006 was $2,592 and $2,376, respectively.



The debt is convertible into shares of common stock at a rate of $0.20 per share, or 125,000 shares at the discretion of Dr. Vose.



Following EITF 00-27, Application of Issue No. 98-5 to Certain Convertible Instruments, the Company calculated the value of the beneficial conversion feature of the note and recorded the value as a discount on debt on its balance sheets.  The beneficial conversion, valued and recorded at $7,527, is being amortized (effectively, a decreasing discount to debt) over the life of the debt, which has a term of three years.  Interest expense for the period ended March 31, 2007 and 2006 was $2,592 and $2,376, respectively.



NOTE 6  CAPITAL STOCK



Common Stock

The Company is authorized to issue 200,000,000 shares of $0.001 par common stock.  All shares have equal voting rights, are non-assessable and have one vote per share.  Voting rights are not cumulative and, therefore, the holders of more than 50% of the common stock could, if they choose to do so, elect all of the directors of the Company.



During the nine months ended March 31, 2007, the Company issued 80,000 shares of common stock for cash in the amount of $16,000.



NOTE 7  RELATED PARTY TRANSACTIONS



The Company acquired a loan for a total of $2,500 on March 23, 2007 from a current shareholder of the Company.  The underlying loan is due one year from the loan agreement date and bears an interest rate of 6%.



The Company acquired a loan for a total of $500 on March 7, 2007 from a current shareholder of the Company.  The underlying loan is due one year from the loan agreement date and bears an interest rate of 6%.



The Company acquired a loan for a total of $1,000 on February 22, 2007 from a current shareholder of the Company.  The underlying loan is due one year from the loan agreement date and bears an interest rate of 6 %.



The Company acquired a loan for a total of $2,000 on January 9, 2007 from a current shareholder of the Company.  The underlying loan is due one year from the loan agreement date and bears an interest rate of 6%.



NOTE 8  COMMITMENTS AND CONTINGENCIES



The Company is obligated to pay a royalty on certain sales.  This is more fully discussed in NOTE 5.









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ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION



The matters discussed in this Form 10-QSB contain certain forward-looking statements and involve risks and uncertainties (including changing market conditions, competitive and regulatory matters, etc.) detailed in the disclosures contained in this Form 10-KSB and other filings with the Securities and Exchange Commission made by the Registrant from time to time.  The discussion of the Registrants liquidity, capital resources and results of operations, including forward-looking statements pertaining to such matters, does not take into account the effects of any changes to the Registrants operations. Accordingly, actual results could differ materially from those projected in the forward-looking statements as a result of a number of factors, including those identified herein.  This item should be read in conjunction with the consolidated financial statements and other items contained elsewhere in the report.



Liquidity and Capital Resources



Integrated Micrometallurgical Systems, Inc.s (the Company or IMS) financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.   IMS uses cash and cash equivalents as its primary measure of liquidity.  Except as discussed above, management is not aware of any other known trends, events, commitments or uncertainties that will have a significant impact on liquidity.



As of March 31, 2007, we had a working capital deficiency of $139,290, compared to a working capital deficiency of $29,365 for the year ended June 30, 2006.  This is due primarily from an increase in related party payables and accrued liabilities.  This must be read in conjunction with the notes to the financial statements of  June 30, 2006.



Results of Operations



Results of operations for the three months ended March 31, 2007, compared to the three months ended March 31, 2006 are as follows:



Revenues

Total revenues amounted to $0. for the three months ended March 31, 2007 compared to $0. for the corresponding period in the prior year.



Operating Expenses



Costs and expenses amounted to $29,310 for the three months ended March 31, 2007 compared to $65,736 for the corresponding period in the prior year, a decrease of $36,426.  This is due primarily to decreases in general and administrative, consulting, and research and development expenses.



Net Income or Loss



Net loss amounted to $29,310 for the three months ended March 31, 2007 compared to a net loss of $65,736 for the corresponding period in the prior year, a decrease of $36,426.  The decrease in net loss is due primarily to a decrease in consulting and research development expenses.





Results of Operations



Results of operations for the nine months ended March 31, 2007, compared to the nine months ended March 31, 2006 are as follows:



Revenues

Total revenues amounted to $0. for the nine months ended March 31, 2007 compared to $0. for the corresponding period in the prior year.



Operating Expenses



Costs and expenses amounted to $141,343 for the nine months ended March 31, 2007 compared to $205,703 for the corresponding period in the prior year, a decrease of $64,360.  This is due primarily to decreases in general and administrative, consulting, research and development expenses.



Net Income or Loss



Net loss amounted to $141,343 for the nine months ended March 31, 2007 compared to a net loss of $205,703 for the corresponding period in the prior year, a decrease of $64,360.  The decrease in net loss is due primarily to a decrease in general and administrative, consulting, and research and developement expenses.



Plan of Operations



Since inception, we have had no revenues and have experienced losses. We have financed our operations primarily through the sale of our common stock or by contributions or loans from shareholders.  We are still in the development stage, and the only operations we have commenced consist of the development of our products for market.  In the year ended June 30, 2006, we had a net loss of $126,875, compared to a net loss of $250,812 at December 31, 2005 (the former year end of the Company).  We consider a comparison of the two years to be meaningful, although, in the prior year, we were not engaged in any business activities, other than finding a suitable merger candidate.



ITEM 3. CONTROLS AND PROCEDURES



The Registrants management has evaluated the effectiveness of the Registrants disclosure controls and procedures (as such term is defined in Rules 13a-15(c) under the Securities Exchange Act of 1934, as amended) as of the period covered by this report.  Based on such evaluation, the Registrants Chief Executive Officer has concluded that, as of the end of such period, the Registrants disclosure controls and procedures are effective.



There have not been any changes in the Registrants internal control over financial reporting (as defined in Rule 13-a 15(f) under the Securities and Exchange Act of 1934, as amended) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Registrants internal control over financial reporting.





PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS



The Registrant is not currently involved in any litigation.



ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS



No securities were issued during the nine months ended March 31, 2007.



ITEM 4.  SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS



There have been no submissions of matters to the vote of security holders in the period ended March 31, 2007.



ITEM 5.  OTHER INFORMATION



None











ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.

|(a) Exhibits:

31.1     Sarbanes-Oxley Section 302(a) Certification

32.1     Sarbanes-Oxley Section 906 Certification
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SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

INTEGRATED MICROMETALLURGICAL SYSTEMS, INC.

|BY:  /s/ H. Werner Huss
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H. Werner Huss, President
Chief Executive Officer


Date: October 1, 2007
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