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| Nevada                                                                    | 87-0645394                                 |
|---------------------------------------------------------------------------|--------------------------------------------|
|  (State or other jurisdiction of incorporation or organization) |  (I.R.S. Employer Identification No.) |

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

| Class                          | Outstanding as of August 11, 2012                   |
|--------------------------------|-----------------------------------------------------|
| Common Stock, $0.001 par value |        2,633,750 |

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| Heading                                                                                 |                                                                                  | Page     |
|-----------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|----------|
|                                                                                    |                                                                                  |     |
| PART  I    —   FINANCIAL INFORMATION |                                                                                  |
|                                                                                    |                                                                                  |     |
| Item 1.                                                                                 | Financial Statements                                                                  |   2 |
|                                                                                    |                                                                                  |     |
| Item 2.                                                                                 | Management's Discussion and Analysis of Financial Condition and Results of Operations | 10       |
|                                                                                    |                                                                                  |     |
| Item 3.                                                                                 | Quantitative and Qualitative Disclosures About Market Risk                            | 14       |
|                                                                                    |                                                                                  |     |
| Item 4(T).                                                                              | Controls and Procedures                                                               | 14       |
|                                                                                    |                                                                                  |     |
|                                                                                    |                                                                                  |     |
| PART II   —   OTHER INFORMATION                     |                                                                                  |
|                                                                                    |                                                                                  |     |
| Item 1.                                                                                 | Legal Proceedings                                                                     | 14       |
|                                                                                    |                                                                                  |     |
| Item 1A.                                                                                | Risk Factors                                                                          | 14       |
|                                                                                    |                                                                                  |     |
| Item 2                                                                                  | Unregistered Sales of Equity Securities and Use of Proceeds                           | 15       |
|                                                                                    |                                                                                  |     |
| Item 3.                                                                                 | Defaults Upon Senior Securities                                                       | 15       |
|                                                                                    |                                                                                  |     |
| Item 4.                                                                                 | Mine Safety Disclosures                                                               | 15       |
|                                                                                    |                                                                                  |     |
| Item 5.                                                                                 | Other Information                                                                     | 15       |
|                                                                                    |                                                                                  |     |
| Item 6.                                                                                 | Exhibits                                                                              | 15       |
|                                                                                    |                                                                                  |     |
|                                                                                    | Signatures                                                                            | 16       |

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| LILM, INC. and SUBSIDIARY and LIL MARC, INC.(predecessor)         |
|------------------------------------------------------------------------|
|   (Development Stage Company)                                     |
|   CONSOLIDATED BALANCE SHEETS June 30, 2012 and December 31, 2011 |

|                                           |                                                                                                |                           |   | (Unaudited) |    |   |    |     |
|------------------------------------------------|-----------------------------------------------------------------------------------------------------|--------------------------------|--------|-------------|---------|--------|---------|----------|
|                                           |                                                                                                |                           |   | Jun 30,     |    |   | Dec 31, |     |
|                                           |                                                                                                |                           |   | 2012        |    |   | 2011    |     |
|                                           |                                                                                                |                           |   |        |    |   |    |     |
|                                           |                                                                                                |                           |   |        |    |   |    |     |
| Assests                                        |                                                                                                |                           |   |        |    |   |    |     |
| Current Assests                                |                                                                                                |                           |   |        |    |   |    |
|                                           |                                                                                                |                           |   |        |    |   |    |     |
|                                           | Inventory                                                                                           |                           |   |        | 2,047   |   |    |     | 2,454 |   |
|                                           |                                                                                                |                           |   |        |    |   |    |     |   |   |
|                                           |                                                                                                | Total Current Assets           |   | $           | 2,047   |   |    | $        | 2,454 |   |
|                                           |                                                                                                |                           |   |        |    |   |    |     |   |   |
|                                           | Equipment-Production Mold, Net                                                                      |                           |   | 1,190       |    |   |    | 1,360    |   |
|                                           |                                                                                                |                           |   |        |    |   |    |     |   |   |
|                                           |                                                                                                | Total Assets                   |   | $           | 3,237   |   |    | $        | 3,814 |   |
|                                           |                                                                                                |                           |   |        |    |   |    |     |   |   |
| Liabilities & Stockholders' Deficiency     |                                                                                                |                           |   |        |    |   |    |     |
| Current Liabilities                            |                                                                                                |                           |   |        |    |   |    |     |   |
|                                           |                                                                                                |                           |   |        |    |   |    |     |   |   |
|                                           | Accounts Payable and Accrued Expenses                                                               |                           | $      | 26,903      |    |   | $       | 20,874   |   |
|                                           | Note Payable- Related Party                                                                         |                           |   | 48,351      |    |   |    | 46,153   |   |
|                                           |                                                                                                |                           |   |        |    |   |    |     |   |   |
|                                           |                                                                                                |                           |   |        |    |   |    |     |   |   |
|                                           |                                                                                                | Total Current Liabilities      |   | $           | 75,254  |   |    | $        | 67,027 |   |
|                                           |                                                                                                |                           |   |        |    |   |    |     |   |   |
| Stockholders' Deficiency                       |                                                                                                |                           |   |        |    |   |    |     |
|                                           |                                                                                                |                           |   |        |    |   |    |     |   |   |
|                                           | Common Stock                                                                                        |                           |   |        |    |   |    |     |   |
|                                           | 5,000,000 shares authorized at $0.001 par value;  2,633,750 shares issued and outstanding |                           | $      | 2,634       |    |   | $       | 2,634    |   |
|                                           | Capital in excess of par value                                                                      |                           |   | 147,561     |    |   |    | 147,561  |   |
|                                           | Accumulated deficit during development stage                                                        |                           | $      | (222,212    | )       |   | $       | (213,408 | ) |
|                                           |                                                                                                |                           |   |        |    |   |    |     |   |   |
|                                           |                                                                                                | Total Stockholders' Deficiency |   | $           | (72,017 | )      |    | $        | (63,213 | ) |
|                                           |                                                                                                |                           |   |        |    |   |    |     |   |   |
|                                           |                                                                                                |                           |   |        |    |   |    |     |   |   |
| Total Liabilities and Stockholders' Deficiency |                                                                                                | $                              | 3,237  |        |    | $      | 3,814   |     |

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|   LILM, INC. and SUBSIDIARY and LIL MARC, INC. (predecessor)                          |
|--------------------------------------------------------------------------------------------|
|   (Development Stage Company)                                                         |
|   CONSOLIDATED STATEMENT OF OPERATIONS                                                |
|   For the Three and Six Months Ended June 30, 2012 and 2011 and the Period            |
|   April 22, 1997 (date of inception of LIL MARC, INC. (predecessor)) to June 30, 2012 |
| (UNAUDITED)                                                                                |
|                                                                                       |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   | ThreeMonths  Ended |   |   | SixMonths Ended |   |   |   |   |
|                                                                                       |   |   | June 30, |   |   | June 30, |   |   | June 30, |   |   | June 30, |   |   | Apr. 22, 1997 |   |
|                                                                                       |   |   | 2012 |   |   | 2011 |   |   | 2012 |   |   | 2011 |   |   | to June. 30, 2012 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales                                                                                      |   | $ | 3,686 |   |   | $ | 4,923 |   |   | $ | 8,490 |   |   | $ | 10,984 |   |   | $ | 58,081 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost of Goods Sold                                                                         |   |   | (421 | ) |   |   | (578 | ) |   |   | (991 | ) |   |   | (1,426 | ) |   |   | (3,517 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       | Gross Profit |   | $ | 3,265 |   |   | $ | 4,345 |   |   | $ | 7,499 |   |   | $ | 9,558 |   |   | $ | 54,564 |   |
| Expenses                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       | General and administrative |   | $ | 5,970 |   |   | $ | 7,507 |   |   | $ | 15,103 |   |   | $ | 15,265 |   |   | $ | 246,098 |   |
|                                                                                       | Royalties |   |   | 42 |   |   |   | 76 |   |   |   | 100 |   |   |   | 152 |   |   |   | 588 |   |
|                                                                                       | Depreciation and amortization |   |   | 85 |   |   |   | 85 |   |   |   | 170 |   |   |   | 170 |   |   |   | 29,160 |   |
| Total Expenses                                                                             |   | $ | 6,097 |   |   | $ | 7,668 |   |   | $ | 15,373 |   |   | $ | 15,587 |   |   | $ | 275,846 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other (Income) Expense:                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       | Interest Expense |   |   | 471 |   |   |   |  - |   |   |   | 930 |   |   |   |  - |   |   |   | 930 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                                   |   | $ | (3,303 | ) |   | $ | (3,323 | ) |   | $ | (8,804 | ) |   | $ | (6,029 | ) |   | $ | (222,212 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loss Per Common Share                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       | Basic and diluted |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Outstanding Shares                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       | Basic and diluted (stated in 1000's) |   |   | 2,634 |   |   |   | 2,634 |   |   |   | 2,634 |   |   |   | 2,634 |   |   |   |   |   |

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| LILM, INC. and SUBSIDIARY and LIL MARC, INC. (predecessor)                          |
|-------------------------------------------------------------------------------------|
| (Development Stage Company)                                                         |
| CONSOLIDATED STATEMENT OF CASH FLOWS                                                |
| For the Six Months Ended June 30, 2012 and 2011 and the Period                      |
| April 22, 1997 (date of inception of LIL MARC, INC. (predecessor)) to June 30, 2012 |
| (UNAUDITED)                                                                         |
|                                                                                |
|                                                                                |
|                                                                                |   | June 30, |   |   | June. 30, |   |   | Apr. 22, 1997 to |   |
|                                                                                |   | 2012 |   |   | 2011 |   |   | June. 30, 2012 |   |
| Cash Flows From Operating Activities                                                |   |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |
| Net Loss                                                                            |   | $ | (8,804 | ) |   | $ | (6,029 | ) |   | $ | (222,212 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Adjustments to reconcile net loss to net cash provided by operating activities      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Contributions to capital- expenses                                                  |   |   |   |   |   |   |   |   |   |   | 100 |   |
| Issuance of common stock for expenses                                               |   |   | - |   |   |   | - |   |   |   | 8,700 |   |
| Depreciation and amortization                                                       |   |   | 170 |   |   |   | 170 |   |   |   | 29,160 |   |
| Changes in operating assets and liabilities:                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Inventory                                                                           |   |   | 407 |   |   |   | (384 | ) |   |   | (2,047 | ) |
| Accounts payable and accrued expenses                                               |   | $ | 6,029 |   |   | $ | (3,611 | ) |   | $ | 23,682 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net Cash Flows (Used in) Operations                                           |   | $ | (2,198 | ) |   | $ | (9,854 | ) |   | $ | (162,617 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Flows From Investing Activities                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|   Purchase of patent                                                           |   |   | - |   |   |   | - |   |   | $ | (28,650 | ) |
| Purchase of Equipment-Production Mold                                               |   |   | - |   |   |   | - |   |   |   | (1,700 | ) |
| Purchase office equipment                                                           |   |   | - |   |   |   | - |   |   |   | (2,096 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Cash Flows (Used in) Investing Activities                                       |   | $ | - |   |   | $ | 0.00 |   |   | $ | (32,446 | ) |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Flows From Financing Activities                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Notes Payable from related party                                                    |   | $ | 2,285 |   |   | $ | 14,805 |   |   | $ | 63,773 |   |
| Payments to related party                                                           |   |   | (87 | ) |   |   | (4,791 | ) |   |   | (15,422 | ) |
| Proceeds from issuance of common stock                                              |   |   | - |   |   |   | - |   |   |   | 146,712 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Cash Flows provided by Financing Activities                                     |   | $ | 2,198 |   |   | $ | 10,014 |   |   | $ | 195,063 |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Change in Cash                                                                  |   |   | - |   |   | $ | 160 |   |   |   | - |   |
| Cash at Beginning of Period                                                         |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash at End of Period                                                               |   |   | - |   |   | $ | 160 |   |   |   | - |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF NONCASH FINANCING ACTIVITIES                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of 922,900 common shares for a patent - 2000                               |   |   |   |   |   |   |   |   |   | $ | 11,963  |   |
| Contributions to capital- expenses- 2001                                            |   |   |   |   |   |   |   |   |   | $ | 100  |   |
| Issuance of common stock for expenses                                               |   |   |   |   |   |   |   |   |   |   | 8,700  |   |

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| ● | the ability to maintain current business and, if feasible, expand the marketing of products;                                               |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                       |
| ● | the ability to attract and retain new individual and retail customers;                                                                     |
|    |                                                                                                                                       |
| ● | the sufficiency of existing capital resources and the ability to raise additional capital to fund cash requirements for future operations; |
|    |                                                                                                                                       |
| ● | uncertainties involved in the rate of growth of business and acceptance of the Company’s product and;                                |
|    |                                                                                                                                       |
| ● | anticipated size or trends of the market segments in which we compete and the anticipated competition in those markets;                    |
|    |                                                                                                                                       |
| ● | future capital requirements and our ability to satisfy its needs;                                                                          |
|    |                                                                                                                                       |
| ● | general economic conditions.                                                                                                               |

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| Exhibit 31.1 | Certification of C.E.O. and Principal Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                               |
| Exhibit 32.1 | Certification of C.E.O. and Principal Accounting Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|         |                                                                                                                                                               |
| 101 INS      | XBRL Instance Document*                                                                                                                                            |
|         |                                                                                                                                                               |
| 101 SCH      | XBRL Schema Document*                                                                                                                                              |
|         |                                                                                                                                                               |
| 101 CAL      | XBRL Calculation Linkbase Document*                                                                                                                                |
|         |                                                                                                                                                               |
| 101 DEF      | XBRL Definition Linkbase Document*                                                                                                                                 |
|         |                                                                                                                                                               |
| 101 LAB      | XBRL Labels Linkbase Document*                                                                                                                                     |
|         |                                                                                                                                                               |
| 101 PRE      | XBRL Presentation Linkbase Document*                                                                                                                               |

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|                  |                                                      |
|-----------------------|-----------------------------------------------------------|
|                  | LILM, INC.                                                |
|                  |                                                      |
|                  |                                                      |
|                  |                                                      |
| Date: August 14, 2012 | By:  /S/   George I. Norman, III |
|                  | George I. Norman, III                                     |
|                  | President, C.E.O. and Director                            |
|                  |  (Principal Accounting Officer)                      |

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