---

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2010

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

For the transition period from ______to______.

EWRX INTERNET SYSTEMS, INC.(Exact name of registrant as specified in the Charter)

|NEVADA                          | 000-27195             | 98-0117139                       
|------------------------------- | --------------------- | ---------------------------------
|(State or other jurisdiction of | (Commission File No.) | (IRS Employee Identification No.)
|incorporation or organization)  |                       |                                  

4950 Yonge St. Suite 910, TorontoOntario,
Canada M2N 6K1(Address of Principal Executive Offices) (Zip
Code)

(416) 298-9606(Registrants Telephone number,
including area code)

Indicate by check mark whether the registrant (1) has 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
[   ]

Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files).
Yes [   ]    No [   ]

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, a non-accelerated filer or a smaller
reporting company filer. See definition of accelerated filer and large
accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):

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




---

Indicate by check mark whether the registrant is a shell company
as defined in Rule 12b-2 of the Exchange Act. Yes [X]    No
[   ]

The number of shares outstanding of the Registrants common
stock as of August 12, 2010 was 100,000,000 shares of common stock, par value
$0.001.

---

EWRX INTERNET SYSTEMS, INC.

FORM 10-Q

June 30, 2010

TABLE OF CONTENTS

|         | **PART I FINANCIAL INFORMATION**                                                          
|-------- | -------------------------------------------------------------------------------------------
|         |                                                                                            
|Item 1.  | Financial Statements                                                                       
|Item 2.  | Managements
      Discussion and Analysis of Financial Condition and Results of Operations
|Item 3.  | Quantitative and Qualitative Disclosures About Market Risk                                 
|Item 4T. | Controls and
      Procedures                                                              
|         |                                                                                            
|         | **PART II OTHER INFORMATION**                                                             
|         |                                                                                            
|Item 1.  | Legal
      Proceedings                                                                    
|Item 1A. | Risk Factors                                                                               
|Item 2.  | Unregistered
      Sales of Equity Securities and Use of Proceeds                          
|Item 3.  | Defaults Upon Senior Securities                                                            
|Item 4.  | (Removed and
      Reserved)                                                               
|Item 5.  | Other Information                                                                          
|Item 6.  | Exhibits                                                                                   
|         |                                                                                            
|         | **SIGNATURES**                                                                             

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PART 1 - FINANCIAL INFORMATION

Item 1. Financial Statements

EWRX INTERNET SYSTEMS INC(A Development Stage
Company)

CONDENSED UNAUDITEDFINANCIAL STATEMENTS

JUNE 30, 2010

---

EWRX INTERNET SYSTEMS INC(A Development Stage
Company)

CONTENTS



|CONDENSED
      BALANCE SHEETS AS OF JUNE 30, 2010                |            
|----------------------------------------------------------------- | -----------
|(UNAUDITED)
      AND AS OF DECEMBER 31, 2009                     | 1          
|                                                                  |            
|CONDENSED
      STATEMENTS OF OPERATIONS FOR THE THREE            |            
|AND
      SIX MONTHS ENDED JUNE 30, 2010 AND 2009 AND FOR         |            
|THE
      PERIOD FROM JANUARY 1, 2002 (RE-ENTERING THE            |            
|DEVELOPMENT
      STAGE) TO JUNE 30, 2010 (UNAUDITED)             | 2          
|                                                                  |            
|CONDENSED
      STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIENCY |            
|FOR
      THE PERIOD JANUARY 1, 2002 (RE-ENTERING THE             |            
|DEVELOPMENT
      STAGE) TO JUNE 30, 2010 (UNAUDITED)             | 3          
|                                                                  |            
|CONDENSED
      STATEMENTS OF CASH FLOWS FOR THE SIX              |            
|MONTHS
      ENDED JUNE 30, 2010 AND 2009 AND FOR                 |            
|THE
      PERIOD FROM JANUARY 1, 2002 (RE-ENTERING THE            |            
|DEVELOPMENT
      STAGE) TO JUNE 30, 2010 (UNAUDITED)             | 4          
|                                                                  |            
|NOTES
      TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)         | 5
      - 9



---

EWRX INTERNET SYSTEMS INC(A Development Stage
Company)

Condensed Balance Sheets

|                                                                                                                     |   | June 30     |   |   | December 31 |  
|-------------------------------------------------------------------------------------------------------------------- | - | ----------- | - | - | ----------- | -
|                                                                                                                     |   | 2010        |   |   | 2009        |  
|                                                                                                                     |   | (Unaudited) |   |   |             |  
|ASSETS                                                                                                               |   |             |   |   |             |  
|                                                                                                                     |   |             |   |   |             |  
|Current Assets                                                                                                       |   |             |   |   |             |  
|                                                                                                                     |   |             |   |   |             |  
|Cash                                                                                                                 | $ | 2,865       |   | $ | 3,593       |  
|                                                                                                                     |   |             |   |   |             |  
|Total Current Assets                                                                                                 |   | 2,865       |   |   | 3,593       |  
|                                                                                                                     |   |             |   |   |             |  
|Total Assets                                                                                                         | $ | 2,865       |   | $ | 3,593       |  
|                                                                                                                     |   |             |   |   |             |  
|LIABILITIES AND
      STOCKHOLDERS' DEFICIENCY                                                                       |   |             |   |   |             |  
|                                                                                                                     |   |             |   |   |             |  
|Current Liabilities                                                                                                  |   |             |   |   |             |  
|Accounts payable                                                                                                     | $ | 97,292      |   | $ | 98,954      |  
|Accrued expenses                                                                                                     |   | 17,692      |   |   | 24,168      |  
|Note payable - related parties                                                                                       |   | 8,223       |   |   | 8,349       |  
|Advances payable - director                                                                                          |   | 198,029     |   |   | 180,157     |  
|Total Liabilities                                                                                                    |   | 321,236     |   |   | 311,628     |  
|                                                                                                                     |   |             |   |   |             |  
|Commitments and Contingencies                                                                                        |   | -           |   |   | -           |  
|                                                                                                                     |   |             |   |   |             |  
|Stockholders' Deficiency                                                                                             |   |             |   |   |             |  
|                                                                                                                     |   |             |   |   |             |  
|Preferred stock, $0.01 par value, 500,000
      shares authorized, none issued and outstanding                       |   | -           |   |   | -           |  
|Common stock, $0.001 par
      value, 100,000,000 shares authorized, 100,000,000 shares issued and
      outstanding |   | 100,000     |   |   | 100,000     |  
|Additional paid - in capital                                                                                         |   | 7,528,502   |   |   | 7,476,261   |  
|Accumulative deficit                                                                                                 |   | (8,496,144  | ) |   | (8,496,144  | )
|Accumulated other comprehensive loss                                                                                 |   | (893        | ) |   | (893        | )
|Earnings accumulated during
      the development stage                                                              |   | 550,164     |   |   | 612,741     |  
|                                                                                                                     |   |             |   |   |             |  
|Total Stockholders'
      Deficiency                                                                                 |   | (318,371    | ) |   | (308,035    | )
|                                                                                                                     |   |             |   |   |             |  
|Total Liabilities and
      Stockholders' Deficiency                                                                 | $ | 2,865       |   | $ | 3,593       |  

1

(See accompanying notes to condensed financial statements)

---

EWRX INTERNET SYSTEMS INC(A Development
Stage Company)

Condensed Statements of Operations

"UNAUDITED"

|                                                                                    |   |                            |   |   |                          |   |   |             |   |   |                 |   |   | **For the Period**   |  
|----------------------------------------------------------------------------------- | - | -------------------------- | - | - | ------------------------ | - | - | ----------- | - | - | --------------- | - | - | -------------------- | -
|                                                                                    |   |                            |   |   |                          |   |   |             |   |   |                 |   |   | from                 |  
|                                                                                    |   |                            |   |   |                          |   |   |             |   |   |                 |   |   | **January 1, 2002**  |  
|                                                                                    |   |                            |   |   |                          |   |   |             |   |   |                 |   |   | **(Re-entering the** |  
|                                                                                    |   |                            |   |   |                          |   |   |             |   |   |                 |   |   | **Development**      |  
|                                                                                    |   | For the Three Months Ended |   |   | For the Six Months Ended |   |   | Stage)      |  
|                                                                                    |   | June 30                    |   |   | June 30                  |   |   | to June 30  |  
|                                                                                    |   | 2010                       |   |   | 2009                     |   |   | 2010        |   |   | 2009            |   |   | 2010                 |  
|                                                                                    |   |                            |   |   |                          |   |   |             |   |   |                 |   |   |                      |  
|Operating Expenses                                                                  |   |                            |   |   |                          |   |   |             |   |   |                 |   |   |                      |  
|                                                                                    |   |                            |   |   |                          |   |   |             |   |   |                 |   |   |                      |  
|Entertainment                                                                       | $ | -                          |   | $ | -                        |   | $ | -           |   | $ | -               |   | $ | 1,849                |  
|In kind contribution services                                                       |   | 18,000                     |   |   | 18,000                   |   |   | 36,000      |   |   | 36,000          |   |   | 252,000              |  
|Management fees                                                                     |   | -                          |   |   | -                        |   |   | -           |   |   | -               |   |   | 15,000               |  
|Office and general                                                                  |   | 2,210                      |   |   | 1,655                    |   |   | 3,419       |   |   | 2,140           |   |   | 41,627               |  
|Professional fees                                                                   |   | 5,358                      |   |   | 3,021                    |   |   | 14,002      |   |   | 10,267          |   |   | 222,998              |  
|Salary and wages                                                                    |   | -                          |   |   | -                        |   |   | -           |   |   | -               |   |   | 28,000               |  
|Telephone                                                                           |   | 151                        |   |   | 97                       |   |   | 281         |   |   | 218             |   |   | 1,697                |  
|Travel                                                                              |   | -                          |   |   | -                        |   |   | 3,967       |   |   | -               |   |   | 5,546                |  
|Total Operating                                                                     |   |                            |   |   |                          |   |   |             |   |   |                 |   |   |                      |  
|Expenses                                                                            |   | 25,719                     |   |   | 22,773                   |   |   | 57,669      |   |   | 48,625          |   |   | 568,717              |  
|                                                                                    |   |                            |   |   |                          |   |   |             |   |   |                 |   |   |                      |  
|Net Loss from Operations                                                            |   | (25,719                    | ) |   | (22,773                  | ) |   | (57,669     | ) |   | (48,625         | ) |   | (568,717             | )
|                                                                                    |   |                            |   |   |                          |   |   |             |   |   |                 |   |   |                      |  
|Other Income (Expenses) Income                                                      |   |                            |   |   |                          |   |   |             |   |   |                 |   |   |                      |  
|Foreign exchange (loss) gain                                                        |   | 303                        |   |   | 548                      |   |   | 43          |   |   | 244             |   |   | (7,067               | )
|                                                                                    |   |                            |   |   |                          |   |   |             |   |   |                 |   |   |                      |  
|Interest expense                                                                    |   | (8,361                     | ) |   | (7,271                   | ) |   | (16,313     | ) |   | (14,033         | ) |   | (124,970             | )
|Forgiveness of debt                                                                 |   | -                          |   |   | -                        |   |   | 11,362      |   |   | -               |   |   | 1,250,918            |  
|Total Other Income                                                                  |   |                            |   |   |                          |   |   |             |   |   |                 |   |   |                      |  
|(Expenses)                                                                          |   | (8,058                     | ) |   | (6,723                   | ) |   | (4,908      | ) |   | (13,789         | ) |   | 1,118,881            |  
|                                                                                    |   |                            |   |   |                          |   |   |             |   |   |                 |   |   |                      |  
|Net (loss) income                                                                   | $ | (33,777                    | ) | $ | (29,496                  | ) | $ | (62,577     | ) | $ | (62,414         | ) | $ | 550,164              |  
|Net income (loss) per Share - Basic and Diluted                                     | $ | -                          |   | $ | -                        |   | $ | -           |   | $ | -               |   |   |                      |  
|                                                                                    |   |                            |   |   |                          |   |   |             |   |   |                 |   |   |                      |  
|Weighted average number of shares outstanding during the period - Basic and Diluted |   | 100,000,000                |   |   | 100,000,000              |   |   | 100,000,000 |   |   | **100,000,000** |   |   |                      |  

2

(See accompanying notes to condensed financial statements)

---

EWRX INTERNET SYSTEMS INC.(A Development Stage Company)

Condensed Statements of Changes in Stockholders' Deficiencyfor the period (January 1, 2002) Re-entering the Development**Stage Through to June 30, 2010
  (Unaudited)**

|                                        |                 |  |              |     |  |             |  |   |             |  |   |             |   |   |               |   |   | Earnings      |   |   |             |   |   |            |  
|--------------------------------------- | --------------- |  | ------------ | --- |  | ----------- |  | - | ----------- |  | - | ----------- | - | - | ------------- | - | - | ------------- | - | - | ----------- | - | - | ---------- | -
|                                        |                 |  |              |     |  |             |  |   |             |  |   |             |   |   |               |   |   | Accumulated   |   |   | Accumulated |   |   |            |  
|                                        | Preferred Stock |  | Common Stock |     |  | Additional  |  |   |             |  |   | During the  |   |   | Other         |   |   | Total         |  
|                                        | Number of       |  | Number of    |     |  | Paid-in     |  |   | Accumulated |  |   | Development |   |   | Comprehensive |   |   | Stockholders' |  
|                                        | Shares          |  |              | Par |  | Shares      |  |   | Par         |  |   | Capital     |   |   | Deficit       |   |   | Stage         |   |   | Loss        |   |   | Deficiency |  
|                                        |                 |  |              |     |  |             |  |   |             |  |   |             |   |   |               |   |   |               |   |   |             |   |   |            |  
|Balance, December 31, 2001              | -               |  | $            | -   |  | 20,704,140  |  | $ | 20,704      |  | $ | 6,967,848   |   | $ | (8,496,144    | ) | $ | -             |   | $ | -           |   | $ | (1,507,592 | )
|Stock issued on settlement of debt      | -               |  |              | -   |  | 1,276,227   |  |   | 1,276       |  |   | 197,872     |   |   | -             |   |   | -             |   |   | -           |   |   | 199,148    |  
|Stock issued on Flashback purchase      | -               |  |              | -   |  | 3,700,000   |  |   | 3,700       |  |   | -           |   |   | -             |   |   | -             |   |   | -           |   |   | - 3,700    |  
|Stock issued on private placement       | -               |  |              | -   |  | 445,900     |  |   | 446         |  |   | 44,144      |   |   | -             |   |   | -             |   |   | -           |   |   | - 44,590   |  
|Finance fee                             | -               |  |              | -   |  | -           |  |   | -           |  |   | (9,590      | ) |   | -             |   |   | -             |   |   | -           |   |   | (9,590     | )
|Net loss                                | -               |  |              | -   |  | -           |  |   | -           |  |   | -           |   |   | -             |   |   | (71,799       | ) |   | -           |   |   | (71,799    | )
|Balance, December 31, 2002              | -               |  |              | -   |  | 26,126,267  |  |   | 26,126      |  |   | 7,200,274   |   |   | (8,496,144    | ) |   | (71,799       | ) |   | -           |   |   | (1,341,543 | )
|Stock issued on settlement of debt      | -               |  |              | -   |  | 40,000,000  |  |   | 40,000      |  |   | -           |   |   | -             |   |   | -             |   |   | -           |   |   | - 40,000   |  
|Net loss                                | -               |  |              | -   |  | -           |  |   | -           |  |   | -           |   |   | -             |   |   | (19,342       | ) |   | -           |   |   | (19,342    | )
|Balance, December 31, 2003              | -               |  |              | -   |  | 66,126,267  |  |   | 66,126      |  |   | 7,200,274   |   |   | (8,496,144    | ) |   | (91,141       | ) |   | -           |   |   | (1,320,885 | )
|Stock issued on settlement of debt      | -               |  |              | -   |  | 33,873,733  |  |   | 33,874      |  |   | (12,558     | ) |   | -             |   |   | -             |   |   | -           |   |   | - 21,316   |  
|Net income                              | -               |  |              | -   |  | -           |  |   | -           |  |   | -           |   |   | -             |   |   | 1,030,812     |   |   | -           |   |   | 1,030,812  |  
|Balance, December 31, 2004              | -               |  |              | -   |  | 100,000,000 |  |   | 100,000     |  |   | 7,187,716   |   |   | (8,496,144    | ) |   | 939,671       |   |   | -           |   |   | (268,757   | )
|Net loss                                | -               |  |              | -   |  | -           |  |   | -           |  |   | -           |   |   | -             |   |   | (19,163       | ) |   | -           |   |   | (19,163    | )
|Balance, December 31, 2005              | -               |  |              | -   |  | 100,000,000 |  |   | 100,000     |  |   | 7,187,716   |   |   | (8,496,144    | ) |   | 920,508       |   |   | -           |   |   | (287,920   | )
|Net income                              | -               |  |              | -   |  | -           |  |   | -           |  |   | -           |   |   | -             |   |   | 62,506        |   |   | -           |   |   | 62,506     |  
|Balance, December 31, 2006              | -               |  |              | -   |  | 100,000,000 |  |   | 100,000     |  |   | 7,187,716   |   |   | (8,496,144    | ) |   | 983,014       |   |   | -           |   |   | (225,414   | )
|In kind contribution - interest         | -               |  |              | -   |  | -           |  |   | -           |  |   | 19,184      |   |   | -             |   |   | -             |   |   | -           |   |   | 19,184     |  
|In kind contribution - services         | -               |  |              | -   |  | -           |  |   | -           |  |   | 72,000      |   |   | -             |   |   | -             |   |   | -           |   |   | 72,000     |  
|Net loss                                | -               |  |              | -   |  | -           |  |   | -           |  |   | -           |   |   | -             |   |   | (112,224      | ) |   | -           |   |   | (112,224   | )
|Balance, December 31, 2007              | -               |  |              | -   |  | 100,000,000 |  |   | 100,000     |  |   | 7,278,900   |   |   | (8,496,144    | ) |   | 870,790       |   |   | -           |   |   | (246,454   | )
|In kind contribution - interest         | -               |  |              | -   |  | -           |  |   | -           |  |   | 24,117      |   |   | -             |   |   | -             |   |   | -           |   |   | 24,117     |  
|In kind contribution - services         | -               |  |              | -   |  | -           |  |   | -           |  |   | 72,000      |   |   | -             |   |   | -             |   |   | -           |   |   | 72,000     |  
|Net loss                                | -               |  |              | -   |  | -           |  |   | -           |  |   | -           |   |   | -             |   |   | (131,538      | ) |   | -           |   |   | (131,538   | )
|Balance, December 31, 2008              | -               |  |              | -   |  | 100,000,000 |  |   | 100,000     |  |   | 7,375,017   |   |   | (8,496,144    | ) |   | 739,252       |   |   | -           |   |   | (281,875   | )
|Net loss                                | -               |  |              | -   |  | -           |  |   | -           |  |   | -           |   |   | -             |   |   | (126,511      | ) |   | -           |   |   | (126,511   | )
|Foreign currency translation adjustment | -               |  |              | -   |  | -           |  |   | -           |  |   | -           |   |   | -             |   |   | -             |   |   | (893        | ) |   | (893       | )
|Total comprehensive loss                |                 |  |              |     |  |             |  |   |             |  |   |             |   |   |               |   |   |               |   |   |             |   |   | (127,404   | )
|                                        |                 |  |              |     |  |             |  |   |             |  |   |             |   |   |               |   |   |               |   |   |             |   |   |            |  
|In kind contribution - interest         | -               |  |              | -   |  | -           |  |   | -           |  |   | 29,244      |   |   | -             |   |   | -             |   |   | -           |   |   | 29,244     |  
|In kind contribution - services         | -               |  |              | -   |  | -           |  |   | -           |  |   | 72,000      |   |   | -             |   |   | -             |   |   | -           |   |   | 72,000     |  
|Balance, December 31, 2009              | -               |  | $            | -   |  | 100,000,000 |  | $ | 100,000     |  | $ | 7,476,261   |   | $ | (8,496,144    | ) | $ | 612,741       |   | $ | (893        | ) | $ | (308,035   | )
|                                        |                 |  |              |     |  |             |  |   |             |  |   |             |   |   |               |   |   |               |   |   |             |   |   |            |  
|                                        |                 |  |              |     |  |             |  |   |             |  |   |             |   |   |               |   |   |               |   |   |             |   |   |            |  
|Net loss                                |                 |  |              |     |  |             |  |   |             |  |   |             |   |   |               |   |   | (62,577       | ) |   |             |   |   | (62,577    | )
|In kind contribution - interest         | -               |  |              | -   |  | -           |  |   | -           |  |   | 16,241      |   |   | -             |   |   | -             |   |   | -           |   |   | 16,241     |  
|In kind contribution - services         | -               |  |              | -   |  | -           |  |   | -           |  |   | 36,000      |   |   | -             |   |   | -             |   |   | -           |   |   | 36,000     |  
|Balance, June 30, 2010                  | -               |  | $            | -   |  | 100,000,000 |  | $ | 100,000     |  | $ | 7,528,502   |   | $ | (8,496,144    | ) | $ | 550,164       |   | $ | (893        | ) | $ | (318,371   | )

(See accompanying notes to condensed financial statements)

---

EWRX INTERNET SYSTEMS INC(A Development Stage
Company)

Condensed Statements of Cash Flows

"UNAUDITED"

|                                                                                              |   |                          |   |   |            |   |   | Period from      |  
|--------------------------------------------------------------------------------------------- | - | ------------------------ | - | - | ---------- | - | - | ---------------- | -
|                                                                                              |   |                          |   |   |            |   |   | January 1, 2002, |  
|                                                                                              |   |                          |   |   |            |   |   | (Re-entering the |  
|                                                                                              |   |                          |   |   |            |   |   | Development      |  
|                                                                                              |   | For the Six Months Ended |   |   | Stage)     |  
|                                                                                              |   | June 30                  |   |   | to June 30 |  
|                                                                                              |   | 2010                     |   |   | 2009       |   |   | 2010             |  
|                                                                                              |   |                          |   |   |            |   |   |                  |  
|Cash Flows from Operating Activities                                                          |   |                          |   |   |            |   |   |                  |  
|Net (loss) income                                                                             | $ | (62,577                  | ) | $ | (62,414    | ) | $ | 550,164          |  
|Adjustments to reconcile net income/loss to net                
      cash used in operations |   |                          |   |   |            |   |   |                  |  
|Non cash item -Expenses recovered                                                             |   | -                        |   |   | -          |   |   | (1,142,152       | )
|In kind contribution - services                                                               |   | 36,000                   |   |   | 36,000     |   |   | 252,000          |  
|Imputed interest on loans                                                                     |   | 16,241                   |   |   | 14,033     |   |   | 88,786           |  
|Changes in operating assets and
      liabilities                                             |   |                          |   |   |            |   |   |                  |  
|Increase/(Decrease) in accounts payable                                                       |   | (1,662                   | ) |   | -          |   |   | 7,653            |  
|Increase/(Decrease)
      in accrued liabilities                                              |   | (6,476                   | ) |   | 6,440      |   |   | 17,692           |  
|Net Cash Used in Operating Activities                                                         |   | (18,474                  | ) |   | (5,941     | ) |   | (225,857         | )
|                                                                                              |   |                          |   |   |            |   |   |                  |  
|Cash Flows from Financing Activities                                                          |   |                          |   |   |            |   |   |                  |  
|Proceeds from issuance of common
      stock                                                  |   | -                        |   |   | -          |   |   | 38,700           |  
|Loans from related
      parties                                                              |   | (126                     | ) |   | -          |   |   | 68,640           |  
|Repayment of loans from directors                                                             |   | -                        |   |   | -          |   |   | (741             | )
|Repayment of loans
      from related parties                                                 |   | -                        |   |   | -          |   |   | (60,417          | )
|Advances from directors                                                                       |   | 17,872                   |   |   | 14,299     |   |   | 183,433          |  
|Net Cash Provided by Financing Activities                                                     |   | 17,746                   |   |   | 14,299     |   |   | 229,615          |  
|                                                                                              |   |                          |   |   |            |   |   |                  |  
|Effect of exchange rate changes on cash
      and cash equivalents                            |   | -                        |   |   | (327       | ) |   | (893             | )
|                                                                                              |   |                          |   |   |            |   |   |                  |  
|Net (decrease) increase in cash                                                               |   | (728                     | ) |   | 8,031      |   |   | 2,865            |  
|Cash,beginning of period/year                                                                 |   | 3,593                    |   |   | 2,700      |   |   | -                |  
|                                                                                              |   |                          |   |   |            |   |   |                  |  
|Cash, end of period/year                                                                      | $ | 2,865                    |   | $ | 10,731     |   | $ | 2,865            |  
|                                                                                              |   |                          |   |   |            |   |   |                  |  
|Supplemental disclosure of cash flow information:                                             |   |                          |   |   |            |   |   |                  |  
|                                                                                              |   |                          |   |   |            |   |   |                  |  
|Cash
      paid for interest                                                                  | $ | -                        |   | $ | -          |   | $ | 36,476           |  
|Cash
      paid for taxes                                                                     | $ | -                        |   | $ | -          |   | $ | -                |  

4

(See accompanying notes to condensed financial statements)

---

EWRX INTERNET SYSTEMS INC(A Development Stage
Company)

Notes to Condensed Financial StatementsJune 30,
2010
  (UNAUDITED)

|1. | Summary of Significant Accounting Policies and
      Organization
|-- | -----------------------------------------------------------------



| | (A) | Basis of Presentation and Organization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |     | EWRX Internet Systems, Inc. (the Company) was
      incorporated on June 25, 1997 in the State of Nevada. The Company
      re-entered the development stage on January 1, 2002. The company intends
      to be in the business of development and marketing of computer
      software.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |     | The accompanying unaudited condensed financial statements
      have been prepared in accordance with accounting principles generally
      accepted in The United States of America and the rules and regulations of
      the Securities and Exchange Commission for interim financial information.
      Accordingly, they do not include all of the information necessary for a
      comprehensive presentation of financial position and results of
      operations. The interim results for the period ended June 30, 2010 are not
      necessarily indicative of results for the full fiscal year. It is
      management's opinion, however that all material adjustments (consisting of
      normal recurring adjustments) have been made which are necessary for a
      fair financial statements presentation.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |     | Activities since re-entering the development stage have
      been comprised mainly of administrative matters.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (B) | Cash and Cash Equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |     | For purposes of the cash flow statements, the Company
      considers all highly liquid investments with original maturities of three
      months or less at the time of purchase to be cash equivalents.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (C) | Use of Estimates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |     | In preparing financial statements in conformity with
      generally accepted accounting principles, management is required to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and the disclosure of contingent assets and liabilities at the
      date of the financial statements and revenue and expenses during the
      reported period. Actual results could differ from those
  estimates.                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (D) | Revenue Recognition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |     | Revenue is recognized when persuasive evidence of an
      arrangement exists, delivery has occurred, the fee is fixed or
      determinable and collectability is assured. The company had no revenue for
      the six months ended June 30, 2010 and 2009.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (E) | Fair Value of Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| |     | The carrying amounts of the company's financial
      instruments including accounts payable and accrued liabilities approximate
      their fair value due to the relatively short period to maturity for these
      instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           

5

---

EWRX INTERNET SYSTEMS INC(A Development Stage
Company)

Notes to Condensed Financial StatementsJune 30,
2010
  (UNAUDITED)

|1. | Summary of Significant Accounting Policies and
      Organization (continued)
|-- | -----------------------------------------------------------------------------



| | (F) | Income/(Loss) Per Share                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |     | Basic and diluted net loss per common share is computed
      based upon the weighted average common shares outstanding as defined by
      FASB Accounting Standards Codification Topic 260, Earnings per Share. As
      of June 30, 2010 and 2009, respectively, there were no common share
      equivalents outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (G) | Income Taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |     | The Company accounts for income taxes under the FASB
      Accounting Standards Codification Topic 740, Income Taxes. Under Topic
      740, deferred tax assets and liabilities are recognized for the future tax
      consequences attributable to differences between the financial statement
      carrying amounts of existing assets and liabilities and their respective
      tax bases. Deferred tax assets and liabilities are measured using enacted
      tax rates expected to apply to taxable income in the years in which those
      temporary differences are expected to be recovered or settled. Under FASB
      Accounting Standards Codification Topic 740, the effect on deferred tax
      assets and liabilities of a change in tax rates is recognized in income in
      the period that includes the enactment date.                                                                                                                                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (H) | Business Segments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |     | The Company operates in one segment and therefore segment
      information is not presented.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (I) | Recent Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| |     | In October 2009, the Financial Accounting Standards Board
      ("FASB") issued an Accounting Standard Update ("ASU") No.2009-13, which
      addresses the accounting for multiple-deliverable arrangements to enable
      vendors to account for products or services separately rather than as a
      combined unit and modifies the manner in which the transaction
      consideration is allocated across the separately identified deliverables.
      The ASU significantly expands the disclosure requirements for
      multiple-deliverable revenue arrangements. The ASU will be effective for
      the first annual reporting period beginning on or after June 15, 2010, and
      may be applied retrospectively for all periods presented or prospectively
      to arrangements entered into or materially modified after the adoption
      date. Early adoption is permitted, provided that the guidance is
      retroactively applied to the beginning of the year of adoption. The
      Company does not expect the adoption of ASU No.2009-13 to have any effect
      on its financial statements upon its required adoption on January 1,
      2011.

6

---

EWRX INTERNET SYSTEMS INC(A Development Stage
Company)

Notes to Condensed Financial StatementsJune 30,
2010
  (UNAUDITED)

|1. | Summary of Significant Accounting Policies and
      Organization (continued)
|-- | -----------------------------------------------------------------------------



| | (J) | Reclassification                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |     | Certain amounts from prior periods have been reclassified
      to conform to the current year presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | (K) | Comprehensive Income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |     | FASB Accounting Standards Codification Topic 220,
      Comprehensive Income establishes rules for reporting and displaying of
      comprehensive income and its components. Comprehensive income is the sum
      of the net loss as reported in the statements of operations and other
      comprehensive income transactions. Other comprehensive income transactions
      that currently apply to the Company result from changes in exchange rates
      used in translating the amount owed to a related party. Comprehensive loss
      as of June 30, 2010 and 2009 is not shown net of taxes because the
      Company's deferred tax asset has been fully offset by a valuation
      allowance.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |     | Comprehensive loss consisted of the following for the six
      months ended June 30, 2010 and 2009:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         



| |                                               |   | Six Months Ended June 30, |  
| | --------------------------------------------- | - | ------------------------- | -
| |                                               |   | 2010                      |  
| |                                               |   |                           |  
| | Net loss                                      | $ | (62,577                   | )
| | Other comprehensive loss:                     |   |                           |  
| | Foreign currency translation
      adjustment |   | 0                         |  
| | Comprehensive loss                            | $ | (62,577                   | )



|2. | Going Concern                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   | As reflected in the accompanying unaudited financial
      statements, the Company is in the development stage with no operations, a
      net loss of $(62,577) for the six months ended June 30, 2010, a
      stockholder's deficiency and a working capital deficiency of $(318,371),
      and cash used in operations from re-entering the development stage of
      $(225,857). This raises substantial doubt about its ability to continue as
      a going concern. The ability of the Company to continue as a going concern
      has been, and remains, dependent on advances from its stockholders and the
      Company's ability to raise additional capital. The financial statements do
      not include any adjustments that might be necessary if the Company is
      unable to continue as a going concern.

7

---

EWRX INTERNET SYSTEMS INC(A Development Stage
Company)

Notes to Condensed Financial StatementsJune 30,
2010
  (UNAUDITED)

|3. | Related Party Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Advances from director represent an advance granted by
      Jessica Q. Wang. Ms. Wang pays for certain administrative expenses and is
      reimbursed by the Company. These advances have no fixed terms or
      repayment, are unsecured, and bear no interest. During the first six
      months of 2010, Ms.Wang has advanced the company $17,872 for purposes of
      paying operating expenses on behalf of the Company. During the six months
      ended June 30, 2010 and 2009, the Company imputed interest on the advance
      from director of $15,629 and $13,495, respectively. As of June 30, 2010
      and December 31, 2009, the Company has loans from Ms. Wang with an
      outstanding balance of $198,029 and $180,157 respectively.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | As of June 30, 2010, the Company has loans from Navitax
      Technology, Inc., a company which is controlled by one of the stockholders
      of the Company, with an outstanding balance of $8,223. These loans have no
      fixed terms or repayment, are unsecured, and bear no interest. During the
      six months ended June 30, 2010 and 2009 the Company imputed interest on
      the note payable-related party of $612 and $538, respectively.                                                                                                                                                                                                                                                                                                   
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | On the above two transactions, the Company imputed
      interest at a rate of 16.67% which is comparable to past
  borrowing.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|4. | Stockholders' Deficiency                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   | Stockholders' Deficiency                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       



| | (A) | Common Stock Issued for Purchase of Software                                                                                                                                                                                                                                                                                                                                                                   
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                
| |     | During 2002, the Company issued 3,700,000 shares of
      common stock in association with the purchase of computer software. In
      association with the purchase of the software, the Company has agreed to
      pay the seller a royalty fee of 7% of gross sales. As of June 30, 2010,
      the Company has not made any sales of the software that would result in
      the payment of a royalty fee.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                
| | (B) | Common Stock Issued for Debt                                                                                                                                                                                                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                
| |     | During 2002, the Company issued 1,276,227 shares of
      common stock in order to settle debt amounting to $199,148. ($0.1560 per
      share)                                                                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                
| |     | During 2003, the Company issued 40,000,000 shares of
      common stock in order to settle debt amounting to $40,000. ($0.0010 per
      share)                                                                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                
| |     | During 2004, the Company issued 33,873,733 shares of
      common stock in order to settle debt amounting to $21,316. ($0.0006 per
      share)                                                                                                                                                                                                                                                                

8

---

EWRX INTERNET SYSTEMS INC(A Development Stage
Company)

Notes to Condensed Financial StatementsJune 30,
2010
  (UNAUDITED)

|4. | Stockholders' Deficiency
  (continued)
|-- | --------------------------------------



| | (C) | Common Stock Issued for Cash                                                                                                                                                                                                                                                                                                                                                                          
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| |     | During 2002, the company issued 445,900 shares of common
      stock for $44,590 in conjunction with a private placement offer less a
      finance fee of $9,590 for a net cash value of $35,000. ($0.0785 per
      share)                                                                                                                                                                          
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| | (D) | In-kind Contribution                                                                                                                                                                                                                                                                                                                                                                                  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| |     | During 2007, the Company recorded additional paid-in
      capital of $72,000 for the fair value of services provided to the Company
      by its president.                                                                                                                                                                                                                                          
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| |     | During 2007, the Company recorded additional paid-in
      capital of $19,184 for the imputed interest on loans.                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| |     | During 2008, the Company recorded additional paid-in
      capital of $72,000 for the fair value of services provided to the Company
      by its president.                                                                                                                                                                                                                                          
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| |     | During 2008, the Company recorded additional paid-in
      capital of $24,117 for the imputed interest on loans.                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| |     | During 2009, the Company recorded additional paid-in
      capital of $72,000 for the fair value of services provided to the Company
      by its president.                                                                                                                                                                                                                                          
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| |     | During 2009, the Company recorded additional paid-in
      capital of $29,244 for the imputed interest on loans.                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| |     | During six months ending June 30, 2010, the Company
      recorded additional paid-in capital of $36,000 for the fair value of
      services provided to the Company by its president.                                                                                                                                                                                                               
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| |     | During six months ending June 30, 2010, the Company
      recorded additional paid-in capital of $16,241 for the imputed interest on
      loans.                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| | (E) | Amendment to Articles of Incorporation                                                                                                                                                                                                                                                                                                                                                                
| |     |                                                                                                                                                                                                                                                                                                                                                                                                       
| |     | During 1999, the Company amended its Articles of
      Incorporation to change the name of the corporation and provide for an
      increase in its authorized share capital. The name of the Company was
      changed from Europa Resources, Inc. to EWRX Internet Systems, Inc. The
      authorized capital stock increased to 100,000,000 common shares at a par
      value of $0.001 per share.

9



---

Item 2. Managements Discussion and Analysis of Financial
  Condition and Results of Operations.

The following discussion should be read in conjunction with
the Financial Statements and Notes thereto appearing elsewhere in this Quarterly
Report on Form 10-Q. The following discussion contains forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934 relating to future events or
our future performance. Actual results may materially differ from those
projected in the forward-looking statements as a result of certain risks and
uncertainties set forth in this Quarterly Report. Although management believes
that the assumptions made and expectations reflected in the forward-looking
statements are reasonable, there is no assurance that the underlying assumptions
will, in fact, prove to be correct or that actual results will not be different
from expectations expressed in this Quarterly Report.

(a) Plan of Operations

Over the next 12 to 15 months, EWRX Internet Systems, Inc. (the
Company) plans to develop the marketing of their software, Instant Recall,
to the OEM markets in North America. The Company has developed significant
interest in its product to date and intends to capitalize on that interest,
while exploring new and expanded opportunities. The Company has also developed
substantial business contacts and relationships in China. Several complimentary
products and opportunities exist in this market that would be of interest to the
Company in its pursuit of developing an expanded line of software products to
round out its product line.

Although, the Company will be in need of financing to carry out
its plan of operation, it intends to raise the capital needed to accomplish its
business plan from interested parties, management and existing shareholders.
While raising capital is always subject to many uncertainties, we believe that,
with the demand anticipated for our product, financing will be available to meet
our requirements. It is not anticipated that we will have to invest any further
significant funds, or support any substantial funding on research or development
for Instant Recall. The Company operations do not require manufacturing of any
kind and therefore we do not anticipate any need to purchase equipment of any
significance.

The Company does not anticipate any staffing changes for the
immediate future. The Company will however require some paid and full time staff
as the marketing and sales efforts begin to take shape. It is expected that
clerical and office personnel will be required after the third quarter of 2010.
The Company will, as required, employ a senior sales person to respond to
clients requirements for service. Other sales and marketing personnel will be
acquired as the sales dictate.

(b) Managements Discussion and Analysis of Financial
Condition and Results of Operations

The Company has been in a state of reorganization and
development over the past two years. We believe that this period was important
to the business operations because it provided time for consolidation and
integration into the market. The Company continues to experience financial
deficiencies that have been a source of constant concern over this and previous
periods in its operations. As a result, the Company has been unable to reach
some of the goals that had been set for its development.

The Company believes it is now in a position to begin to
capitalize on its previous experience. We are looking forward to a very
productive and stimulating period of development. Not only do we have great
expectations for our product, Instant Recall, but also for the prospects of
additional software and other business developments from our
contacts in Hong Kong and China. These relationships will also help the Company address its financial goals and objectives, both from an earnings standpoint as well as from an investment standpoint.

---

The Company has, over the last several months, successfully established relationships as anticipated above with Chinese business leaders in major corporations. These contacts have product and technology of interest to the Company. In addition, they
may also have the financial ability to assist the Company in its requirements.

It is anticipated that we will be in a position to determine the extent to which these developments will affect EWRX by the later part of 2010.

We are looking forward to these discussions and the business relationships that they represent, both from a financial as well as a technological standpoint.

The marketplace is in a state of flux, and, continues to require constant evaluation in terms of opportunity and reward because needs change and competition for the opportunity is always present. Over the last two years, the Company has been
consolidating its business operations, developing its software and preparing for the opportunities that it believes are now present. The global markets are expanding at an unprecedented pace and the Company believes that it is in the right place at
the right time to take advantage of these conditions. Of course there are always uncertainties and unexpected developments to contend with, and there can be no assurance that the Company will be able to overcome all of the circumstances confronting
it. The Company will, however, do everything possible to meet these challenges and realize its goals. EWRX financial requirements over the next fiscal year are dependent, to a major extent, on the speed at which development occurs in the emerging
markets. We will continue to monitor this situation closely. As our situation matures, the requirements will become clearer.

REASON FOR MANAGEMENT PROCEEDING WITH ITS EFFORTS TO REGISTER UNDER THE EXCHANGE ACT AND ESTIMATE OF COST OF COMPLIANCE

The Management and Board of Directors of the Company desire to register the Company under the Exchange Act because they intend to use this status to attract certain business enterprises and for potential investment and capital raising purposes. The
Company estimates that it will incur expenses of approximately $35,000 to $50,000 per annum to remain compliant. Most recently, these costs have been borne by the principles and Management will continue to do so until such time as the
Company is in a position to carry that responsibility through sales of its products and services or funding from investment.

Liquidity and Capital Resources

The Companys primary source of liquidity as of June 30, 2010 is cash on hand. Cash on hand as of June 30, 2010 was $2,865. Current assets totaled $2,865 on June 30, 2010. Current liabilities were $321,236 on June 30, 2010.

The Company will continue to evaluate alternative sources of capital to meet our requirements, including other asset or debt financing, issuing equity securities and entering into financing arrangements. There can be no assurance, however, that any
of the contemplated financing arrangements described herein will be available and, if available, can be obtained on terms favorable to the Company.

The Company currently does not have enough cash to satisfy its minimum cash requirements for the next twelve months. The Company is going to rely on loans from our officers and directors to meet the short term cash requirements. However, the present
state of the Companys liquidity and capital resources raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Companys ability to raise
additional capital and implement its business plan.

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Critical Accounting Policies

The Companys financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States (GAAP). GAAP requires the use of estimates; assumptions,
judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenue and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures
including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical
experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates
made during the preparation of our financial statements.

While all these significant accounting policies impact its financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical are those policies that have the most significant impact on
our condensed financial statements and require management to use a greater degree of judgment and estimates. Actual results may differ from those estimates. Management believes that given current facts and circumstances, it is unlikely that applying
any other reasonable judgments or estimate methodologies would cause effect on our results of operations, financial position or liquidity for the periods presented in this report.

Recent Accounting Pronouncements

In October 2009, the Financial Accounting Standards Board (FASB) issued an Accounting Standard Update (ASU) No. 2009-13, which addresses the accounting for multiple-deliverable arrangements to enable vendors to account for
products or services separately rather than as a combined unit and modifies the manner in which the transaction consideration is allocated across the separately identified deliverables. The ASU significantly expands the disclosure requirements for
multiple-deliverable revenue arrangements. The ASU will be effective for the first annual reporting period beginning on or after June 15, 2010, and may be applied retrospectively for all periods presented or prospectively to arrangements entered
into or materially modified after the adoption date. Early adoption is permitted, provided that the guidance is retroactively applied to the beginning of the year of adoption. The Company does not expect the adoption of ASU No. 2009-13 to have any
effect on its financial statements upon its required adoption on January 1, 2011.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as special purpose entities (SPEs).

Item 3. Quantitative and Qualitative Disclosures about Market Risks

Not applicable because we are a smaller reporting company.

Item 4T. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 (Exchange Act), the Company carried out an evaluation, with the participation of the Companys management, including the Companys Chief Executive Officer
(CEO) and Chief Financial Officer (CFO),of the effectiveness of the Companys disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this
report. Based upon that evaluation, the Companys CEO and CFO concluded that the Companys disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in the reports that the Company
files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SECs rules and forms, and that such information is accumulated and communicated to the Companys
management, including the Companys CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

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Changes in Internal Controls

There have been no changes in the Companys internal control
over financial reporting during the latest fiscal quarter that have materially
affected, or are reasonably likely to materially affect, the Company's internal
control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings

We are currently not involved in any litigation that we believe
could have a material adverse effect on our financial condition or results of
operations. There is no action, suit, proceeding, inquiry or investigation
before or by any court, public board, government agency, self-regulatory
organization or body pending or, to the knowledge of the executive officers of
our company or any of our subsidiaries, threatened against or affecting our
company, our common stock, any of our subsidiaries or of our companies or our
subsidiaries officers or directors in their capacities as such, in which an
adverse decision could have a material adverse effect.

Item 1A. Risk Factors

Not applicable because we are a smaller reporting company.

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

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. (Removed & Reserved)

None.

Item 5. Other Information

None.

Item 6. Exhibits

|31.1 | Rule 13a-14(a)/
        15d-14(a) Certification of Chief Executive Officer and Chief Financial
        Officer
|---- | --------------------------------------------------------------------------------------------------------------
|     |                                                                                                               
|32.1 | Section 1350
        Certification of Chief Executive Officer and Chief Financial Officer                     

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SIGNATURES

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

|                      |     | **EWRX
      INTERNET SYSTEMS, INC.**
|--------------------- | --- | -------------------------------------
|                      |     |                                      
|Date: August 16, 2010 | By: | /s/ Jessica Q. Wang                  
|                      |     | Jessica Q. Wang                      
|                      |     | Chief Executive Officer and          
|                      |     | Principal Accounting Officer         
|                      |     |                                      

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