UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended ~~May~~ 31November 30, 2011

. TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from ______ to _______

Commission File Number ~~000~~333-~~54337~~163628

~~NATIONAL~~HOLLYWALL ~~INTELLIGENCE ASSOCIATION~~ENTERTAINMENT, INC.

(Exact name of registrant as specified in its charter)


Nevada		27-0310225
(State of incorporation)		(I.R.S. Employer Identification No.)

~~1800~~Formerly ~~Ravinia~~Known ~~Place~~as

~~Orland~~Acceleritas ~~Park, IL 60462~~ Corp

Formerly Known as

National Intelligence Association, Inc.

625 Bakers Bridge Avenue, Ste 105 Franklin, TN 37067

(Address of principal executive offices)

(~~312~~615) ~~775~~257-~~9700~~ 0780

(Registrant’s telephone number)

with a copy to:

~~Carrillo~~Securus ~~Huettel~~Law Group, ~~LLP~~P.A.

~~3033~~13046 ~~Fifth~~Racetrack ~~Ave.~~Road, ~~Suite~~#243 ~~400~~Tampa, Florida 33626

~~San~~Telephone ~~Diego,~~(813) ~~CA 92103~~504-7831

Telephone (619) 546-6100

Facsimile (619) 546-6060

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 . (Not required)

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "“large accelerated filer,"” "“accelerated filer"” and "“smaller reporting company"” in Rule 12b-2 of the Exchange Act.


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

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

As of ~~July~~November 1231, 2011, there were 99,590,000 shares of the registrant’s $0.001 par value common stock issued and outstanding.

NATIONAL INTELLIGENCE ASSOCIATION, INC. *

TABLE OF CONTENTS		Page
PART I. FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS	3
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	1112
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	13
ITEM 4.	CONTROLS AND PROCEDURES	13
PART II. OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	14
ITEM 1A.	RISK FACTORS	14
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	14
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	14
ITEM 4.	[REMOVED AND RESERVED]	14
ITEM 5.	OTHER INFORMATION	14
ITEM 6.	EXHIBITS	1514

Special Note Regarding Forward-Looking Statements

Information included in this Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (“Exchange Act”). This information may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of National Intelligence Association, Inc. (the “Company”), to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words “may,” “will,” “should,” “expect,” “anticipate,” “estimate,” “believe,” “intend,” or “project” or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and there can be no assurance that these projections included in these forward-looking statements will come to pass. Actual results of the Company could differ materially from those expressed or implied by the forward-looking statements as a result of various factors. Except as required by applicable laws, the Company has no obligation to update publicly any forward-looking statements for any reason, even if new information becomes available or other events occur in the future.

*Please note that throughout this Quarterly Report, except as otherwise indicated by the context, references in this report to “Company”, “NIAS”, “we”, “us” and “our” are references to National Intelligence Association, Inc.

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

~~FINANCIAL~~NATIONAL ~~STATEMENTS~~INTELLIGENCE ASSOCIATION INC.

~~NATIONAL~~(A ~~INTELLIGENCE~~Development ~~ASSOCIATION~~Stage ~~INC.~~Company)

(AFinancial ~~Development Stage Company)~~Statements

~~Financial~~For ~~Statements~~the Periods Ended November 30, 2011 (unaudited) and August 31, 2011

For the Periods Ended May 31, 2011 (unaudited) and August 31, 2010



Balance Sheets (unaudited)	4
Statements of Operations (unaudited)	5
Statements of Cash Flows (unaudited)	6
Notes to the Financial Statements (unaudited)	7

Balance Sheets (unaudited)	4
Statements of Operations (unaudited)	5
Statements of Cash Flows (unaudited)	6
Notes to the Financial Statements (unaudited)	7

3NATIONAL INTELLIGENCE ASSOCIATION INC.

~~NATIONAL~~(A ~~INTELLIGENCE~~Development ~~ASSOCIATION~~Stage ~~INC.~~Company)

(ABalance ~~Development Stage Company)~~Sheet

~~Balance Sheets~~(unaudited)

(unaudited)


		For the three		For the fiscal
		Months Ending		Year Ending
		November 30, 2011		August 31, 2011
Assets
Cash	$	30	$	4
Accounts Receivable		49,950		-
Stock Receivable		-		-
Total Assets	$	49,980	$	4


Liabilities and Shareholders’ Deficiency
Accounts Payable	$	13,251	$	3,585
Accrued marketing fees		6,848		-
Accrued director fees		-		-
Accrued legal fees		-		-
Other current liabilities Note to Millington		52,681		61,338
Current liabilities of discontinued operations		-		-
Unsecured convertible promissory note(s)		49,754		10,000
Unsecured convertible promissory note payable to Officer		90,000		70,000
Total Liabilities		212,534		144,923

Preferred Stock, $.001 par value, 10,000,000 shares authorized; nil shares issued and outstanding		-		-
Common Stock, $.001 par value, 200,000,000 shares authorized and; 96,090,000 shares issued and outstanding at August 31, 2011 and 73,290,000 on November 30, 2011, respectively.		73,290		96,090
Additional paid in capital		498,090		465,910
Accumulated Deficit		(733,934)		(706,919)
Total Shareholders’ Deficiency		(162,554)		(144,919)

Total Liabilities and Shareholders’ Deficiency	$	49,980	$	4

	May 31, 2011 $	August 31, 2010 $
ASSETS
Cash	149	30,437
Total Assets	149	30,437
LIABILITIES
Current Liabilities
Accounts Payable	3,068	727
Accrued Liabilities	3,608	2,600
Due to a Related Party	51,060	27,760
Notes Payable	40,000	–
Notes Payable – Related Party	10,000	–
Total Liabilities	107,736	31,087
STOCKHOLDERS’ DEFICIT
Preferred Stock
Authorized: 100,000,000 preferred shares, par value of $0.001 per share
Issued and outstanding: nil preferred shares	–	–
Common Stock
Authorized: 200,000,000 common shares, par value of $0.001 per share
Issued and outstanding: 98,890,000 and 91,440,000 common shares, respectively	98,890	91,440
Additional Paid-In Capital	387,860	209,060
Accumulated Deficit during the Development Stage	(594,337)	(301,150)
Total Stockholders’ Deficit	(107,587)	(650)
Total Liabilities and Stockholders’ Deficit	149	30,437

(The accompanying notes are an integral part of these financial statements)

~~(The accompanying notes are an integral part of these financial statements)~~4

4NATIONAL INTELLIGENCE ASSOCIATION INC.

~~NATIONAL~~(A ~~INTELLIGENCE~~Development ~~ASSOCIATION~~Stage ~~INC.~~Company)

(AStatements ~~Development~~of ~~Stage Company)~~Operations

~~Statements of Operations~~(unaudited)

(unaudited)


		For the three Months Ended November 30, 2011		For the three Months Ended November 30, 2010

Revenues	$	–	$	–

Expenses
Consulting Expense		-		-
Accounting		-		-
General and Administrative		80,315		17,286
Accrued Officer’s Salaries		-		-
Management Fees		700		7,500
Payroll and Benefits		-		-
Professional Fees		-		22,708
Total Expenses		81,015		47,494

Loss from continuing operations		(81,015)		(47,494)

Other Income (Expenses)
Interest expense		-		-
Loss on Debt Settlement		-		-
Total Other income (Expenses)		-		-

Net Loss	$	(81,015)		(47,494)

	For the Three Months Ended May 31, 2011 $	For the Three Months Ended May 31, 2010 $	For the Nine Months Ended May 31, 2011 $	For the Nine Months Ended May 31, 2010 $	Accumulated from May 12, 2009 (Date of Inception) to May 31, 2011 $
Revenues	14,000	–	42,500	–	42,500
Operating Expenses
Consulting Fees	137,480	–	142,227	–	142,227
General and Administrative	4,246	16,596	34,350	27,224	112,577
Management Fees	7,500	7,500	22,500	22,500	62,500
Payroll and Benefits	16,486	–	33,982	–	33,982
Professional Fees	2,000	28,500	101,620	67,250	281,943
Total Expenses	167,712	52,596	334,679	116,974	633,229
Net Operating Loss	(153,712)	(52,596)	(292,179)	(116,974)	(590,729)
Other Expenses
Interest Expense	(771)	(1,490)	(1,008)	(1,490)	(3,608)
Total Other Expenses	(771)	(1,490)	(1,008)	(1,490)	(3,608)
Net Loss	(154,483)	(54,086)	(293,187)	(118,464)	(594,337)
Net Loss per Share – Basic and Diluted	–	–	–	–
Weighted Average Shares Outstanding – Basic and Diluted	94,063,626	20,535,000	67,512,234	17,575,952

(The accompanying notes are an integral part of these financial statements)

~~(The accompanying notes are an integral part of these financial statements)~~5

5NATIONAL INTELLIGENCE ASSOCIATION INC.

~~NATIONAL~~(A ~~INTELLIGENCE~~Development ~~ASSOCIATION~~Stage ~~INC.~~Company)

(AStatements ~~Development~~of ~~Stage Company)~~Cashflow

~~Statements of Cashflow~~(unaudited)

(unaudited)


		For the three Months Ended November 30, 2011		For the three Months Ended November 30, 2010

Cash flows from operating and activities of discontinued operation
Net loss	$	(81,015)	$	(47,494)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Accounts payable		9,666		16,047
Accrued Liabilities		6,848		-
Loss on settlement of debt		-		-
Due to related parties		20,000		2,500
Shares issued for services		-		-
Net Cash Used In Operating Activities		(44,501)		(28,947)

Cash flows from investing activities of discontinued operation
Purchase of property and equipment		-		-
Net cash used in investing activities		-		-

Cash flows from financing activities
Donated Capital		13,430		-
Proceeds from issuance of common shares		-		-
Proceeds from notes payable		31,097		-
Repayment of notes payable		-		-
Repayments of long‐term debt		-		-
Net Cash Provided By Financing Activities		44,527		-

Increase (Decrease) in Cash		26		(28,947)

Cash – Beginning of Period		4		30,437

Cash – End of Period	$	30	$	1,490

Supplemental Disclosures
Interest paid	$	-	$	-
Income tax paid	$	-	$	-

Non-cash investing and financing activities
Shares issued for management fees	$	-	$	-
Shares issued for settlement of debt	$	-	$	-

	For the Nine Months Ended May 31, 2011 $	For the Nine Months Ended May 31, 2010 $	Accumulated from May 12, 2009 (Date of Inception) to May 31, 2011 $
Operating Activities
Net loss for the period	(293,187)	(118,464)	(594,337)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Shares issuable for management fees	–	–	10,000
Shares issued for services	186,250	–	187,500
Changes in operating assets and liabilities:
Accounts payable	2,341	(1,794)	3,068
Accrued Liabilities	1,008	1,490	3,608
Due to related parties	23,300	23,500	51,060
Net Cash Used In Operating Activities	(80,288)	(95,268)	(339,101)
Financing Activities
Proceeds from issuance of common shares	–	10,000	211,500
Proceeds from common stock issuable	–	21,500	–
Proceeds from notes payable	40,000	95,000	135,000
Proceeds from notes payable – related	10,000	–	10,000
Repayment of notes payable	–	(15,000)	(15,000)
Share issuance costs	–	(1,000)	(1,000)
Net Cash Provided By Financing Activities	50,000	110,500	340,500
Increase (Decrease) in Cash	(30,288)	15,232	149
Cash – Beginning of Period	30,437	34,885	–
Cash – End of Period	149	50,117	149
Supplemental Disclosures
Interest paid	–	–	–
Income tax paid	–	–	–
Non-cash investing and financing activities
Shares issued for management fees	–	–	10,000
Shares issued for settlement of debt	–	–	80,000

(The accompanying notes are an integral part of these financial statements)

~~(The accompanying notes are an integral part of these financial statements)~~6

6NATIONAL INTELLIGENCE ASSOCIATION INC.

~~NATIONAL~~(A ~~INTELLIGENCE~~Development ~~ASSOCIATION~~Stage ~~INC.~~Company)

(~~A Development Stage Company~~UNAUDITED)

Notes to the Financial Statements

~~(unaudited)~~1.

1.Nature of Operations and Continuance of Business

~~Nature~~National Intelligence Association Inc. (the “Company”) was incorporated in the State of ~~Operations~~Nevada on May 12, 2009. The Company is a Development Stage Company, as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, Development Stage Entities. The Company a security and ~~Continuance~~investigative ofcompany, ~~Business~~and will provide professional security, recovery, investigative, training, and protection services.

~~National~~Going Intelligence Association Inc. (the “Company”) was incorporated in the State of Nevada on May 12, 2009. The Company is a Development Stage Company, as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915, Development Stage Entities. The Company a security and investigative company, and provides professional security, recovery, investigative, training, and protection services. Concern

~~Going~~These ~~Concern~~financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As at August 31, 2011, the Company has not recognized any revenue, has a working capital deficit of $30,433 and an accumulated deficit of $706,919. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, and its ability to identify future investment opportunities and obtain the necessary debt or equity financing, and generating profitable operations from the Company’s future operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business2. As at May 31, 2011, the Company has a working capital deficit of $107,587 and an accumulated deficit of $594,337. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, and its ability to identify future investment opportunities and obtain the necessary debt or equity financing, and generating profitable operations from the Company’s future operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

2.Summary of Significant Accounting Policies

~~Summary of Significant Accounting Policies~~a)

a)Basis of Presentation

~~Basis~~The financial statements of ~~Presentation~~the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”) and are expressed in U.S. dollars. The Company’s fiscal year end is August 31.

~~The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“US GAAP”~~b) ~~and are expressed in U.S. dollars. The Company’s fiscal year end is August 31.~~

b)Use of Estimates

~~Use~~The preparation of ~~Estimates~~financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company regularly evaluates estimates and assumptions related to the deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.c)

a)Cash and cash equivalents

~~Interim~~The ~~Financial~~Company ~~Statements~~considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

These interim unaudited financial statements have been prepared on the same basis as the annual financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.d)

d)Basic and Diluted Net Loss per Share

~~Cash~~The Company computes net loss per share in accordance with ASC 260, Earnings per Share. ASC 260 requires presentation of both basic and ~~Cash~~diluted ~~Equivalents~~earnings per share (“EPS”) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.

~~The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.~~ 7

7e)

~~NATIONAL~~Financial ~~INTELLIGENCE ASSOCIATION INC.~~Instruments

(Pursuant to ASC 820, Fair Value Measurements and Disclosures, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A ~~Development~~financial ~~Stage~~instrument’s ~~Company)~~categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:

~~Notes~~Level ~~to the Financial Statements~~1

~~(unaudited)~~Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.

Level 2.

~~Summary~~Level of2 ~~Significant~~applies ~~Accenting~~to ~~Policies~~assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (~~continued~~less active markets); or model- derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.

e)Level 3

~~Basic~~Level ~~and~~3 ~~Diluted~~applies ~~Net~~to ~~Loss~~assets ~~per~~or ~~Share~~liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

The Company’s ~~computes~~financial ~~net~~instruments ~~loss~~consist ~~per~~principally ~~share~~of ~~in accordance with ASC 260~~cash, ~~Earnings~~accounts ~~per~~payable ~~Share.~~and ~~ASC~~accrued ~~260~~liabilities, ~~requires presentation of both basic~~ and ~~diluted~~amounts ~~earnings~~due ~~per~~to ~~share~~related ~~(“EPS”) on the face of the income statement~~parties. ~~Basic~~Pursuant ~~EPS is computed by dividing net loss available~~ to ~~common~~ASC ~~shareholders~~820, ~~(numerator) by~~ the ~~weighted~~fair ~~average~~value ~~number~~ of ~~shares~~our ~~outstanding~~cash ~~(denominator)~~is ~~during~~determined ~~the~~based ~~period.~~on ~~Diluted~~“Level ~~EPS~~1” ~~gives~~inputs, ~~effect~~which toconsist ~~all~~of ~~dilutive~~quoted ~~potential~~prices ~~common~~in ~~shares~~active ~~outstanding~~markets ~~during~~for ~~the~~identical ~~period~~assets. ~~using~~We ~~the~~believe ~~treasury~~that ~~stock method and convertible preferred stock using~~ the ~~if-converted~~recorded ~~method.~~values Inof ~~computing~~all ~~diluted~~of ~~EPS,~~our ~~the~~other ~~average~~financial ~~stock~~instruments ~~price~~approximate ~~for~~their ~~the~~current ~~period~~fair isvalues ~~used~~because ~~in determining the number~~ of ~~shares~~their ~~assumed~~nature toand berespective ~~purchased~~maturity ~~from~~dates ~~the exercise of stock options~~ or ~~warrants~~durations. ~~Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive.~~

~~Financial~~Comprehensive ~~Instruments~~Loss

~~Pursuant to~~ ASC ~~820~~220, ~~Fair~~Comprehensive ~~Value Measurements and Disclosures~~Income, anestablishes ~~entity~~standards isfor ~~required~~the toreporting ~~maximize~~and ~~the~~display ~~use~~ of ~~observable~~comprehensive ~~inputs~~loss and ~~minimize~~its ~~the~~components ~~use~~in ofthe ~~unobservable~~financial ~~inputs when measuring fair value~~statements. ~~ASC~~As ~~820~~at ~~establishes~~August a31, ~~fair~~2011 ~~value~~and ~~hierarchy based on the level of independent~~2010, ~~objective evidence surrounding~~ the ~~inputs~~Company ~~used~~has tono ~~measure~~items ~~fair~~that ~~value.~~represent Aa ~~financial~~comprehensive ~~instrument’s~~loss ~~categorization~~and, ~~within~~therefore, ~~the~~has ~~fair~~not ~~value~~included ~~hierarchy~~a isschedule ~~based upon the lowest level~~ of ~~input~~comprehensive ~~that~~loss isin ~~significant to~~ the ~~fair~~financial ~~value measurement~~statements. ~~ASC 820 prioritizes the inputs into three levels that may be used to measure fair value:~~

~~Level 1~~g)

~~Level~~Recent 1Accounting ~~applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.~~Pronouncements

~~Level~~In 2March 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-11 (ASU 2010-11), “Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives.” The amendments in this Update are effective for each reporting entity at the beginning of its first fiscal quarter beginning after June 15, 2010. Early adoption is permitted at the beginning of each entity’s first fiscal quarter beginning after issuance of this Update. The Company does not expect the provisions of ASU 2010-11 to have a material effect on the financial position, results of operations or cash flows of the Company.

~~Level~~In 2February ~~applies~~2010, tothe ~~assets~~FASB orAccounting ~~liabilities~~Standards ~~for~~Update ~~which~~2010-10 ~~there~~(ASU ~~are~~2010-10), ~~inputs~~“Consolidation ~~other~~(Topic ~~than~~810): ~~quoted~~Amendments ~~prices~~for ~~that~~Certain ~~are~~Investment ~~observable~~Funds.” ~~for~~The ~~the~~amendments ~~asset~~in orthis ~~liability~~Update ~~such~~are effective as ~~quoted~~of ~~prices~~the ~~for~~beginning ~~similar~~of ~~assets~~a orreporting ~~liabilities~~entity’s infirst ~~active~~annual ~~markets;~~period ~~quoted~~that ~~prices~~begins after November 15, 2009 and for ~~identical~~interim ~~assets~~periods orwithin ~~liabilities~~that infirst ~~markets~~reporting ~~with~~period. ~~insufficient~~Early ~~volume~~application oris ~~infrequent~~not ~~transactions~~permitted. ~~(less~~The ~~active~~Company’s ~~markets);~~adoption orof ~~model-derived~~provisions ~~valuations~~of inASU ~~which~~2010-10 ~~significant~~did ~~inputs~~not ~~are~~have ~~observable~~a ormaterial ~~can~~effect beon ~~derived~~the ~~principally~~financial ~~from~~position, orresults ~~corroborated~~of ~~by,~~operations ~~observable~~or ~~market~~cash ~~data~~flows.

~~Level~~In 3February 2010, the FASB issued ASU No. 2010-09 “Subsequent Events (ASC Topic 855) “Amendments to Certain Recognition and Disclosure Requirements” (“ASU No. 2010-09”). ASU No. 2010-09 requires an entity that is an SEC filer to evaluate subsequent events through the date that the financial statements are issued and removes the requirement for an SEC filer to disclose a date, in both issued and revised financial statements, through which the filer had evaluated subsequent events. The adoption did not have an impact on the Company’s financial position and results of operations.

~~Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.~~8

~~The~~In ~~Company’s~~January ~~financial~~2010, ~~instruments~~the ~~consist~~Financial ~~principally~~Accounting ofStandards ~~cash,~~Board ~~accounts~~(“FASB”) ~~payable~~issued ~~and~~Accounting ~~accrued~~Standards ~~liabilities~~Update (“ASU”) No. 2010-06, ~~and~~“Improving ~~amounts~~Disclosures ~~due~~about toFair ~~related~~Value ~~parties~~Measurements. ~~Pursuant~~” toASU No. 2010-06 amends FASB Accounting Standards Codification (“ASC”) 820, ~~the~~and ~~fair~~clarifies ~~value~~and ofprovides ~~our~~additional ~~cash~~disclosure isrequirements ~~determined~~related ~~based~~to onrecurring ~~“Level~~and 1”non-recurring ~~inputs,~~fair ~~which~~value ~~consist~~measurements ofand ~~quoted~~employers’ ~~prices~~disclosures inabout ~~active~~postretirement ~~markets~~benefit ~~for~~plan ~~identical~~ assets. WeThis ~~believe~~ASU ~~that~~is ~~the~~effective ~~recorded~~for ~~values~~interim ofand ~~all~~annual ofreporting ~~our~~periods ~~other~~beginning ~~financial~~after ~~instruments~~December ~~approximate~~15, ~~their~~2009. ~~current~~The ~~fair~~adoption ~~values~~of ~~because~~ASU of2010-06 ~~their~~did ~~nature~~not ~~and~~have ~~respective~~a ~~maturity~~material ~~dates~~impact oron ~~durations.~~the Company’s financial statements.

g)In January 2010, the FASB issued an amendment to ASC 820, Fair Value Measurements and Disclosure, to require reporting entities to separately disclose the amounts and business rationale for significant transfers in and out of Level 1 and Level 2 fair value measurements and separately present information regarding purchase, sale, issuance, and settlement of Level 3 fair value measures on a gross basis. This standard, for which the Company is currently assessing the impact, is effective for interim and annual reporting periods beginning after December 15, 2009 with the exception of disclosures regarding the purchase, sale, issuance, and settlement of Level 3 fair value measures which are effective for fiscal years beginning after December 15, 2010. The adoption of this standard is not expected to have a significant impact on the Company’s financial statements.

~~Comprehensive~~The ~~Loss~~Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations

~~ASC 220, Comprehensive Income, establishes standards for the reporting and display of comprehensive loss and its components in the financial statements~~3. ~~As at May 31, 2011 and August 31, 2010, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.~~

8Related Party Transactions

~~NATIONAL INTELLIGENCE ASSOCIATION INC.~~a)

(AAs ~~Development~~of ~~Stage~~August 31, 2012, the Company owed $90,000 (2010 - $27,760 and 2011- $58,560) to the President and Director of the Company for financing of day-to-day expenditures and management fees incurred on behalf of the Company. The amount owing is in an unsecured convertible promissory note bearing interest at ten percent per annum.

~~Notes to the Financial Statements~~4.

~~(unaudited)~~Notes Payable

2.a)

~~Summary~~As at August 31, 2011, the Company owes $70,000 (2010 - $nil) in notes payable to non-related parties. The amounts owing are unsecured, bears interest at 10% per annum, and is due on demand. As at August 31, 2011, accrued interest of ~~Significant~~$2,148 ~~Accounting~~(2010 ~~Policies~~- $nil) was recorded in accrued liabilities. Refer to Note 7(~~continued~~b).

hb)

~~Revenue~~On ~~Recognition~~December 10, 2010, the Company received $5,000 from a non-related party and a further $2,000 on July 7, 2011. The amounts owing are unsecured, bears interest at 10% per annum, and is due on demand. On July 7, 2011, the Company settled the $7,000 note payable and accrued interest of $279 with the issuance of 700,000 common shares with a fair value of $28,000 resulting in a loss on settlement of debt of $20,721.

The Company recognizes revenue from investigative services. Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service has been provided, and collectability is reasonably assured. The Company is not exposed to any credit risks as amounts are prepaid prior to performance of services.c)

i)During the year ended August 31, 2011, the Company $2,600 of outstanding accrued interest payable for $0.00, and recorded a gain on settlement of debt of $2,600.

~~Recent Accounting Pronouncements~~5.

InCommon March 2010, the FASB (Financial Accounting Standards Board) issued Accounting Standards Update 2010-11 (ASU 2010-11), “Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives.” The amendments in this Update are effective for each reporting entity at the beginning of its first fiscal quarter beginning after June 15, 2010. Early adoption is permitted at the beginning of each entity’s first fiscal quarter beginning after issuance of this Update. The Company does not expect the provisions of ASU 2010-11 to have a material effect on the financial position, results of operations or cash flows of the Company.Shares

InThe ~~February~~company ~~2010,~~has ~~the~~not ~~FASB~~ issued ~~ASU~~any ~~No.~~securities ~~2010-09~~from ~~“Subsequent~~August ~~Events~~31, ~~(ASC~~2011 ~~Topic 855) “Amendments to Certain Recognition and Disclosure Requirements” (“ASU No. 2010-09”). ASU No. 2010-09 requires an entity that is an SEC filer to evaluate subsequent events~~ through ~~the~~June ~~date that the financial statements are issued and removes the requirement for an SEC filer to disclose a date~~30, ~~in both issued and revised financial statements, through which the filer had evaluated subsequent events~~2012. ~~The adoption did not have an impact on the Company’s financial position and results of operations.~~

InYear ~~January 2010,~~ended ~~the~~August ~~Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2010-06~~31, “Improving Disclosures about Fair Value Measurements.” ASU No. 2010-06 amends FASB Accounting Standards Codification (“ASC”) 820 and clarifies and provides additional disclosure requirements related to recurring and non-recurring fair value measurements and employers’ disclosures about postretirement benefit plan assets. This ASU is effective for interim and annual reporting periods beginning after December 15, 2009. The adoption of ASU 2010-06 did not have a material impact on the Company’s financial statements.2011

In January 2010, the FASB issued an amendment to ASC 820, Fair Value Measurements and Disclosure, to require reporting entities to separately disclose the amounts and business rationale for significant transfers in and out of Level 1 and Level 2 fair value measurements and separately present information regarding purchase, sale, issuance, and settlement of Level 3 fair value measures on a gross basis. This standard, for which the Company is currently assessing the impact, is effective for interim and annual reporting periods beginning after December 15, 2009 with the exception of disclosures regarding the purchase, sale, issuance, and settlement of Level 3 fair value measures which are effective for fiscal years beginning after December 15, 2010. The adoption of this standard is not expected to have a significant impact on the Company’s financial statements. )

~~The~~On ~~Company~~July ~~has~~7, ~~implemented~~2011, ~~all~~the ~~new~~Company ~~accounting~~issued ~~pronouncements~~700,000 ~~that~~common ~~are~~shares inwith ~~effect.~~a ~~These~~fair ~~pronouncements~~value ~~did~~of ~~not~~$28,000 ~~have~~to ~~any~~settle ~~material~~outstanding ~~impact~~debt onof ~~the financial statements unless otherwise disclosed~~$7,279, ~~and~~resulting ~~the~~in ~~Company~~a ~~does~~loss ~~not~~on ~~believe~~settlement ~~that~~of ~~there~~debt ~~are~~of ~~any~~$20,721. ~~other~~The ~~new~~fair ~~accounting~~value ~~pronouncements~~was ~~that~~determined ~~have~~based ~~been~~on ~~issued~~the ~~that~~Company’s ~~might~~trading ~~have~~price ~~a material impact~~ on ~~its~~the ~~financial~~date ~~position~~of orissuance. ~~results~~Refer ofto ~~operations~~Note 4(b).

3.b)

~~Notes~~In ~~Payable~~May 2011, the Company issued 50,000 common shares at $0.05 per share to a consultant for business development services valued at $2,500. The fair value was determined based on the Company’s trading price on the date of issuance.

ac)

AsIn atApril ~~May 31,~~ 2011, the Company ~~owes~~issued ~~$40~~4,000,000 ~~(2010~~common -shares at $~~nil)~~0.025 inper ~~notes~~share ~~payable~~ to ~~non-related~~a ~~parties. The~~consultant ~~amounts~~for ~~owing~~investor ~~are~~relations ~~unsecured~~services valued at $100,000. ~~bears~~The ~~interest~~fair atvalue ~~10%~~of ~~per~~the ~~annum,~~common ~~and~~shares iswas ~~due~~based on ~~demand.~~the Asfair atvalue ~~May~~of ~~31,~~the ~~2011~~last issuance of common shares, ~~accrued~~as ~~interest~~the ofCompany’s ~~$630~~common ~~(2010~~stock -was ~~$nil)~~not isactively ~~recorded~~trading. inOn ~~accrued~~August ~~liabilities~~17, 2011, the consultant returned 3,500,000 common shares for cancellation.

b)9

~~As at May 31, 2011, the Company owes $10,000 (2010 - $nil~~d) in notes payable to the President and Director of the Company. The amounts owing are unsecured, bears interest at 10% per annum, and is due on demand. As at May 31, 2011, accrued interest of $378 (2010 - $nil) is recorded in accrued liabilities.

9In April 2011, the Company issued 1,600,000 common shares at $0.025 per share to settle outstanding professional fees valued at $40,000. The fair value of the common shares was based on the fair value of the last issuance of common shares, as the Company’s common stock was not actively trading.

~~NATIONAL INTELLIGENCE ASSOCIATION INC.~~e)

(AIn ~~Development~~January ~~Stage~~2011, the Company) issued 1,800,000 common shares at $0.025 per share to settled outstanding professional fees valued at $45,000. The fair value of the common shares was based on the fair value of the last issuance of common shares, as the Company’s common stock was not actively trading.

~~Notes to the Financial Statements~~f)

~~(unaudited)~~On November 1, 2010, the Company and its Board of Directors authorized a forward split of its common stock on a 4-to-1 basis. The effect of the forward split increased the number of issued and outstanding common shares from 22,860,000 common shares to 91,440,000 common shares. The effect of the forward split has been applied on a retroactive basis to the Company’s inception.

4.Year ended August 31, 2010

~~Related~~a) ~~Party Transactions~~

AsIn atAugust ~~May 31~~2010, ~~2011,~~ the Company ~~owed~~issued ~~$51~~400,~~060~~000 ~~(2010~~common -shares at $~~17,760)~~0.025 toper ~~the~~share ~~President~~for ~~and~~consulting ~~Director~~services with a fair value of ~~the~~$10,000. ~~Company~~The ~~for~~fair ~~financing~~value of ~~day-to-day~~the ~~expenditures~~common ~~and~~shares ~~management~~was ~~fees~~based ~~incurred~~ on ~~behalf~~the fair value of the ~~Company. The~~last ~~amounts~~issuance ~~owing~~of ~~are~~common ~~unsecured~~shares, ~~non-interest~~as ~~bearing,~~the ~~and~~Company’s ~~due~~common onstock ~~demand~~was not actively trading.

AsYear atended ~~May~~August 31, ~~2011, the Company owes $10,000 (~~2010 - $nil) in notes payable to the President and Director of the Company. The amounts owing are unsecured, bears interest at 10% per annum, and is due on demand. As at May 31, 2011, accrued interest of $378 (2010 - $nil) is recorded in accrued liabilities.

5.a)

~~Common~~In ~~Shares~~July 2010, the Company issued 3,200,000 common shares to settle loans payable of $80,000. The fair value of the common shares was based on the fair value of the last issuance of common shares, as the Company’s common stock was not actively trading.

ab)

In ~~April~~July ~~2011~~2010, the Company issued 13,~~600~~240,000 common shares at $0.025 toper ~~settle~~share ~~outstanding~~for ~~professional~~consulting ~~fees~~services ~~valued~~with ata fair value of $4081,000. The fair value of the common shares was based on the fair value of the last issuance of common shares, as the Company’s common stock was not actively trading.

bc)

In ~~April~~July ~~2011~~2010, the Company issued 41,000,000 common shares at $0.025 toper ashare ~~consultant~~ for ~~investor~~proceeds ~~relations~~of ~~services valued at~~ $~~100~~25,000.

cd)

In ~~May~~June ~~2011~~2010, the Company issued 501,460,000 common shares at $0.025 toper ashare ~~consultant~~ for ~~business~~proceeds ~~development~~of ~~services valued at~~ $136,~~250~~500.

10e)

~~ITEM~~In September 2009, the Company issued 2,140,000 common shares at $0.025 per share for proceeds of $53,500, of which $43,500 was received and recorded as common stock issuable at August 31, 2009.

~~MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS~~f)

~~FORWARD-LOOKING~~In ~~STATEMENTS~~September 2009, the Company issued 60,000,000 common shares for proceeds of $5,000 and management services with a fair value of $10,000.

~~This Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A~~g) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, or implied, by those forward-looking statements. You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms. These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements. Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.

~~RESULTS~~On OFMay ~~OPERATIONS~~12, 2009, the Company issued 20,000,000 founders shares of the Company to the President of the Company for proceeds of $500.

~~Working Capital~~10

	May 31,	August 31,
	2011 $	2010 $
Current Assets	149	30,437
Current Liabilities	107,736	31,087
Working Capital (Deficit)	(107,587)	(650)

~~Cash~~Income ~~Flows~~Taxes

	Nine months Ended	Nine months Ended
	May 31, 2011 $	May 31, 2010 $
Cash Flows from (used in) Operating Activities	(81,938)	(95,268)
Cash Flows from (used in) Financing Activities	51,650	110,500
Net Increase (decrease) in Cash During Period	(30,288)	15,232

The Company has ($405,769) of net operating losses carried forward to offset taxable income in future years which expire commencing in fiscal 2029. The income tax benefit differs from the amount computed by applying the US federal income tax rate of 34% to net loss before income taxes for the years ended August 31, 2011 and 2010 as a result of the following:

Operating Revenues


	2011 $	2010 $
Net loss before taxes	(405,769)	(270,275)
Statutory rate	34%	34%
Computed expected tax recovery	137,961	91,894
Permanent differences and other	(6,161)	–
Change in valuation allowance	(131,800)	(91,894)
Income tax provision	–	–

~~During~~The ~~the~~significant ~~nine~~components ~~months~~of ~~ended~~deferred ~~May~~income ~~31,~~tax ~~2011,~~assets ~~the~~and ~~Company~~liabilities ~~generated~~as ~~$42~~at August 31,~~500~~ (2011 and 2010 -after ~~$nil)~~applying ofenacted ~~revenue~~corporate ~~related~~income totax ~~investigative~~rates ~~services.~~ are as follows:

Operating Expenses and Net Loss


	2011 $	2010 $
Net operating losses carried forward	234,192	102,392
Total gross deferred income tax assets	234,192	102,392
Valuation allowance	(234,192)	(102,392)
Net deferred tax asset	–	–

~~Operating~~Future ~~expenses~~tax ~~for~~benefits, ~~the~~which ~~three~~may ~~and~~arise ~~nine~~as ~~month~~a ~~periods~~result ~~ended~~of ~~May~~these 31losses, ~~2011~~have ~~was~~not ~~$167,712~~been ~~and~~recognized ~~$335,929~~in ~~compared~~these ~~with~~financial ~~$52~~statements,~~596~~ and ~~$116,974~~have ~~for~~been ~~the~~offset ~~three~~by ~~and~~a ~~nine~~valuation ~~months~~allowance. ~~ended~~As ~~May~~at August 31, ~~2010. The increase in operating expenses during fiscal~~ 2011 ~~is attributed to an increase in professional fees relating to accounting~~ and ~~legal~~2010, ~~expenses relating to~~ the ~~S-1~~Company ~~registration~~has ~~process,~~no ~~and~~uncertain antax ~~overall increase in general and administrative costs relating to overhead expenses from commencement of operating activity in December 2010~~positions.

~~Net loss for the three and nine months ended May 31, 2011 was $154,483 and $294,437 compared with $54,086 and $118,464 for the three and nine months ended May 31, 2010~~7.

11Subsequent Events

~~Liquidity~~The ~~and~~Company ~~Capital~~had ~~Resources~~no material reportable events subsequent to August 31, 2011 with the exception of the following:

As at May 31, 2011, the Company’s cash and total asset balance was $149 compared to $30,437 as at August 31, 2010. The decrease in cash is due to general operating costs incurred by the Company with overhead expenses. a)

AsOn atSeptember ~~May 31~~19, 2011, the ~~Company~~President ~~had~~and ~~total~~Director ~~liabilities~~ of ~~$107,736~~the ~~compared~~Company ~~with~~returned ~~total~~and ~~liabilities~~cancelled ~~of $31~~29,~~087 as at August 31~~800,000 ~~2010.~~common ~~The~~shares ~~increase in total liabilities is attributed to $50,000~~ of ~~unsecured, 10% demand notes payable that were issued during~~ the ~~period, an increase of $23,300 owing to related parties and $3,349 increase of accounts payable relating to outstanding professional fees owing for services~~Company.

~~Cashflow from Operating Activities~~b)

~~During~~On ~~the~~December ~~nine months ended May 31~~2, 2011, the Company ~~used~~entered ~~$81,938~~into ofa ~~cash~~settlement ~~for~~agreement ~~operating~~to ~~activities~~settle ~~compared~~the tooutstanding ~~the~~note ~~use~~payable of $9570,~~268~~000 ofplus ~~cash~~accrued ~~for~~interest ~~operating activities during the nine months ended May 31, 2010. The decrease~~ in ~~cash~~exchange ~~used~~ for ~~operating activities is due to~~ the ~~settlement~~issuance of ~~outstanding~~7,000,000 ~~operating~~common ~~services~~shares ~~with~~of the ~~issuance of common shares~~Company.

~~Cashflow from Financing Activities~~c)

~~During~~On ~~the~~December ~~nine months ended May 31~~5, 2011, the Company ~~received~~issued ~~$51,650~~a ofpromissory ~~cash~~note ~~from~~for ~~financing activities compared to~~ $~~110~~30,~~500~~000 ~~for~~to ~~the~~a ~~nine~~non-related ~~months~~party. ~~ended~~Under ~~May~~the ~~31,~~terms ~~2010. During~~of ~~fiscal~~the ~~2011~~note, the ~~Company~~amounts ~~received~~owing ~~$50,000 of notes payable which~~ are unsecured, ~~due~~bears interest at 10% per annum, and is due on ~~demand~~December ~~and $1~~5,~~650~~ of2013. ~~additional~~The ~~financing~~note ~~from~~is ~~the~~convertible ~~President~~into ~~and~~common ~~Director~~shares at the election of the ~~Company~~note ~~whereas~~holder at the ~~Company~~lesser ~~received~~of ~~$30,500~~70% ~~from~~of ~~issuance~~the market value of the common shares, ~~and~~or $~~80,000~~0.02 ~~from~~per share on the ~~issuance~~date of ~~notes payable~~conversion.

~~Going Concern~~11

WeITEM ~~have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities~~2. ~~For~~MANAGEMENT'S ~~these~~DISCUSSION ~~reasons,~~AND ~~our~~ANALYSIS ~~auditors~~OF ~~stated~~FINANCIAL inCONDITION ~~their~~OR ~~report~~PLAN onOF ~~our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.~~ OPERATION

Off-Balance Sheet Arrangements

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.

Future Financings

We will continue to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund planned acquisitions and exploration activities.

Critical Accounting Policies

Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.

We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. A complete summary of these policies is included in note 1 of the notes to our financial statements. In general, management'’s estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.

12Recently Issued Accounting Pronouncements

~~Recently~~In ~~Issued~~March 2010, the FASB (Financial Accounting ~~Pronouncements~~Standards Board) issued Accounting Standards Update 2010-11 (ASU 2010-11), “Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives.” The amendments in this Update are effective for each reporting entity at the beginning of its first fiscal quarter beginning after June 15, 2010. Early adoption is permitted at the beginning of each entity’s first fiscal quarter beginning after issuance of this Update. The Company adoption of provisions of ASU 2010-11 did not have a material effect on the financial position, results of operations or cash flows of the Company.

In ~~March~~February 2010, the FASB ~~(Financial Accounting Standards Board)~~ issued ~~Accounting~~ASU ~~Standards~~No. ~~Update~~ 2010-1109 “Subsequent Events (~~ASU~~ASC ~~2010-11~~Topic 855), “~~Derivatives~~Amendments to Certain Recognition and ~~Hedging~~Disclosure Requirements” (~~Topic~~“ASU ~~815~~No. 2010-09”):. ~~Scope~~ASU ~~Exception~~No. ~~Related~~2010-09 torequires ~~Embedded~~an ~~Credit~~entity ~~Derivatives.”~~that ~~The~~is ~~amendments~~an inSEC ~~this~~filer ~~Update~~to ~~are~~evaluate ~~effective~~subsequent ~~for~~events ~~each~~through ~~reporting~~the ~~entity~~date atthat the ~~beginning~~financial ofstatements ~~its~~are ~~first~~issued ~~fiscal~~and ~~quarter~~removes ~~beginning~~the ~~after~~requirement ~~June~~for ~~15,~~an ~~2010.~~SEC ~~Early~~filer ~~adoption~~to isdisclose ~~permitted~~a atdate, ~~the~~in ~~beginning~~both ofissued ~~each~~and ~~entity’s~~revised ~~first~~financial ~~fiscal~~statements, ~~quarter~~through ~~beginning~~which ~~after~~the ~~issuance~~filer ofhad ~~this~~evaluated ~~Update~~subsequent events. The ~~Company~~ adoption ~~of provisions of ASU 2010-11~~ did not have aan ~~material~~impact ~~effect~~ on the Company’s financial position, and results of operations ~~or cash flows of the Company~~.

In ~~February~~January 2010, the ~~FASB~~Financial ~~issued~~Accounting ~~ASU~~Standards ~~No.~~Board ~~2010-09 “Subsequent Events~~ (~~ASC Topic 855~~“FASB”) ~~“Amendments~~issued toAccounting ~~Certain~~Standards ~~Recognition~~Update ~~and Disclosure Requirements”~~ (“ASU”) No. 2010-~~09”)~~06, “Improving Disclosures about Fair Value Measurements.” ASU No. 2010-0906 ~~requires~~amends anFASB ~~entity~~Accounting ~~that~~Standards isCodification an(“ASC”) ~~SEC~~820 ~~filer~~and toclarifies ~~evaluate~~and ~~subsequent~~provides ~~events~~additional ~~through~~disclosure ~~the~~requirements ~~date~~related ~~that~~to ~~the~~recurring ~~financial~~and ~~statements~~non-recurring ~~are~~fair ~~issued~~value measurements and ~~removes~~employers’ ~~the~~disclosures ~~requirement~~about ~~for~~postretirement anbenefit ~~SEC~~plan ~~filer~~assets. toThis ~~disclose~~ASU ais ~~date,~~effective infor ~~both~~interim ~~issued~~ and ~~revised~~annual ~~financial~~reporting ~~statements,~~periods ~~through~~beginning ~~which~~after ~~the~~December ~~filer~~15, ~~had evaluated subsequent events~~2009. The adoption of ASU 2010-06 did not have ana material impact on the Company’s financial ~~position and results of operations~~statements.

In January 2010, the ~~Financial Accounting Standards Board (“~~FASB”) issued ~~Accounting~~an ~~Standards~~amendment ~~Update~~to ~~(“ASU”)~~ASC ~~No. 2010-06~~820, ~~“Improving Disclosures about~~ Fair Value Measurements.” ~~ASU~~and ~~No. 2010-06~~Disclosure, ~~amends~~to ~~FASB~~require ~~Accounting~~reporting ~~Standards~~entities ~~Codification~~to ~~(“ASC”)~~separately ~~820~~disclose ~~and~~the ~~clarifies~~amounts and ~~provides~~business ~~additional~~rationale ~~disclosure~~for ~~requirements~~significant ~~related~~transfers toin ~~recurring~~and out of Level 1 and ~~non-recurring~~Level 2 fair value measurements and ~~employers’~~separately ~~disclosures~~present ~~about~~information ~~postretirement~~regarding ~~benefit~~purchase, ~~plan~~sale, ~~assets~~issuance, and settlement of Level 3 fair value measures on a gross basis. This ~~ASU~~standard, for which the Company is currently assessing the impact, is effective for interim and annual reporting periods beginning after December 15, 2009 with the exception of disclosures regarding the purchase, sale, issuance, and settlement of Level 3 fair value measures which are effective for fiscal years beginning after December 15, 2010. The adoption of ~~ASU~~this ~~2010-06~~standard ~~did~~is not expected to have a ~~material~~significant impact on the Company’s consolidated financial statements.

The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

~~QUANTITATIVE~~We ~~AND~~are ~~QUALITATIVE~~a ~~DISCLOSURES~~smaller ~~ABOUT~~reporting ~~MARKET~~company ~~RISK~~as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

WeITEM ~~are~~4. aCONTROLS ~~smaller~~AND ~~reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.~~PROCEDURES

~~ITEM~~Disclosure 4.Controls and Procedures

~~CONTROLS~~We ~~AND~~maintain ~~PROCEDURES~~disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

~~Disclosure~~We ~~Controls~~carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of May 31, 2011. Based on the evaluation of these disclosure controls and procedures, and in light of the material weaknesses found in our internal controls over financial reporting, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective. Please refer to our Annual Report on Form 10-K as filed with the SEC on December 14, 2010, for a complete discussion relating to the foregoing evaluation of Disclosures and Procedures.

We maintain disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission'Management’s ~~rules~~Annual ~~and~~Report ~~forms~~on ~~and~~Internal ~~that~~Control ~~such~~Over ~~information is accumulated and communicated to our management, including our Chief Executive Officer and Chief~~ Financial ~~Officer, as appropriate to allow timely decisions regarding required disclosure.~~Reporting

WeOur ~~carried~~management ~~out~~is anresponsible ~~evaluation,~~for ~~under~~establishing ~~the supervision~~ and ~~with~~maintaining ~~the~~adequate ~~participation~~control ofover ~~our~~financial ~~management,~~reporting ~~including~~(as ~~our~~defined ~~Chief~~in ~~Executive~~Rule ~~Officer~~13a-15(f) ~~and~~promulgated ~~Chief~~under ~~Financial~~the ~~Officer,~~Exchange ofAct. ~~the~~Our ~~effectiveness~~management ofassessed the ~~design~~effectiveness ~~and operation~~ of our ~~disclosure~~internal ~~controls~~control ~~and~~over ~~procedures~~financial reporting as of May 31, 2011. ~~Based~~In onmaking ~~the~~this ~~evaluation~~assessment, ofour ~~these~~management ~~disclosure~~used ~~controls~~the ~~and~~criteria ~~procedures,~~set ~~and~~forth inby ~~light~~the Committee of ~~the~~Sponsoring ~~material~~Organizations ~~weaknesses~~of ~~found~~the inTreadway ~~our~~Commission ~~internal~~(“COSO”) ~~controls~~in ~~over~~Internal ~~financial~~Control-Integrated ~~reporting,~~Framework. ~~our~~Our ~~Chief~~management ~~Executive~~has ~~Officer~~concluded ~~and~~that, ~~Chief~~as ~~Financial~~of ~~Officer~~May ~~concluded~~31, ~~that~~2011, our ~~disclosure~~internal ~~controls~~control ~~and~~over ~~procedures~~financial ~~were~~reporting is not effective~~. Please~~ ~~refer~~based toon ~~our~~these ~~Annual~~criteria, ~~Report~~due onto ~~Form~~material ~~10-K~~weaknesses asresulting ~~filed~~from ~~with~~not ~~the~~having ~~SEC~~an onAudit ~~December~~Committee ~~14,~~or ~~2010,~~financial ~~for~~expert aon ~~complete~~our ~~discussion~~Board ~~relating~~of toDirectors ~~the~~and ~~foregoing~~our ~~evaluation~~failure ofto ~~Disclosures~~maintain ~~and~~appropriate ~~Procedures~~cash controls.

13Changes In Internal Control and Financial Reporting

~~Management’s~~Our ~~Annual~~management ~~Report~~has onalso ~~Internal~~evaluated ~~Control~~our ~~Over~~internal ~~Financial~~control ~~Reporting~~over financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of our last evaluation.

~~Our~~The ~~management~~Company is ~~responsible~~not ~~for~~required ~~establishing~~by ~~and~~current ~~maintaining~~SEC ~~adequate~~rules ~~control~~to ~~over financial reporting (as defined in Rule 13a-15(f) promulgated under the Exchange Act. Our management assessed the effectiveness of our internal control over financial reporting as of May 31~~include, ~~2011.~~and Indoes ~~making~~not ~~this assessment~~include, ~~our~~an ~~management~~auditor’s ~~used~~attestation ~~the~~report. ~~criteria~~The ~~set~~Company’s ~~forth~~registered bypublic ~~the~~accounting ~~Committee~~firm ~~of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control-Integrated Framework. Our management~~ has ~~concluded~~not ~~that,~~attested asto ofManagement’s ~~May~~reports ~~31,~~on ~~2011,~~the ~~our~~Company’s internal control over financial reporting is not effective based on these criteria, due to material weaknesses resulting from not having an Audit Committee or financial expert on our Board of Directors and our failure to maintain appropriate cash controls.

~~Changes In Internal Control and Financial Reporting~~13

~~Our~~PART ~~management~~II ~~has~~- ~~also~~OTHER evaluated our internal control over financial reporting, and there have been no significant changes in our internal controls or in other factors that could significantly affect those controls subsequent to the date of our last evaluation.INFORMATION

~~The~~ITEM ~~Company is not required by current SEC rules to include, and does not include, an auditor's attestation report~~1. ~~The~~LEGAL ~~Company's registered public accounting firm has not attested to Management's reports on the Company's internal control over financial reporting.~~PROCEEDINGS

~~PART~~We IIknow -of ~~OTHER~~no ~~INFORMATION~~material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which our director, officer or any affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.

ITEM 11A. RISK FACTORS

~~LEGAL~~We ~~PROCEEDINGS~~are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

WeITEM ~~know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation~~2. ~~There~~UNREGISTERED ~~are~~SALES noOF ~~proceedings~~EQUITY inSECURITIES ~~which~~AND ~~our~~USE ~~director,~~OF ~~officer or any affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest~~PROCEEDS.

~~ITEM~~Quarterly ~~1A.~~Issuances:

~~RISK~~During ~~FACTORS~~the quarter, we did not issue any unregistered securities other than as previously disclosed.

~~We are a smaller reporting company as defined by Rule 12b-~~2. ofSubsequent ~~the Securities Exchange Act of 1934 and are not required to provide the information under this item.~~Issuances:

~~ITEM~~Subsequent 2.to the quarter, we did not issue any unregistered securities other than as previously disclosed.

~~UNREGISTERED~~ITEM ~~SALES~~3. OFDEFAULTS ~~EQUITY~~UPON ~~SECURITIES~~SENIOR ~~AND USE OF PROCEEDS~~SECURITIES

1None.

~~Quarterly~~ITEM ~~Issuances:~~4. [REMOVED AND RESERVED]

~~During~~ITEM ~~the~~5. ~~quarter,~~OTHER ~~we did not issue any unregistered securities other than as previously disclosed.~~INFORMATION

2None.

~~Subsequent~~ITEM ~~Issuances:~~6. EXHIBITS

~~Subsequent~~The tofollowing ~~the~~exhibits ~~quarter,~~are wefiled ~~did~~with ~~not~~this ~~issue~~Quarterly ~~any~~Report ~~unregistered~~on ~~securities~~Form ~~other~~10-Q: ~~than as previously disclosed.~~

ITEM 3.


Exhibit
Number	Description of Exhibit	Filing
31.01	Certification of Principal Executive Officer Pursuant to Rule 13a-14	Filed herewith.
32.01	CEO and CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act	Filed herewith.

~~DEFAULTS UPON SENIOR SECURITIES~~14

~~None.~~SIGNATURES

~~ITEM~~Pursuant 4.to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

~~[REMOVED~~NATIONAL ~~AND~~INTELLIGENCE ~~RESERVED]~~ASSOCIATION, INC.

~~ITEM~~Dated: 5.April 18, 2017

~~OTHER~~By:/s/ ~~INFORMATION~~Roxanna Green

~~None.~~Roxanna Green

14Secretary and COO

~~ITEM 6.~~15

EXHIBITS

The following exhibits are filed with this Quarterly Report on Form 10-Q:

Exhibit
Number	Description of Exhibit	Filing
3.01	Articles of Incorporation	Filed with the SEC on December 10, 2009 as part of our Registration Statement on Form S-1.
3.02	Bylaws	Filed with the SEC on December 10, 2009 as part of our Registration Statement on Form S-1.
4.01	2011 Equity Incentive Plan,	Filed with the SEC on January 25, 2011 as part of our Registration Statement on Form S-8.
4.02	Sample Stock Option Agreement	Filed with the SEC on January 25, 2011 as part of our Registration Statement on Form S-8.
4.03	Sample Stock Award Agreement for Stock Units	Filed with the SEC on January 25, 2011 as part of our Registration Statement on Form S-8.
4.04	Sample Stock Award Agreement for Restricted Stock	Filed with the SEC on January 25, 2011 as part of our Registration Statement on Form S-8.
10.01	Management Agreement between James Miller and National Intelligence Association, Inc., dated September 1, 2009	Filed with the SEC on February 22, 2010 as part of our Amended Registration Statement on Form S-1/A.
10.02	Promissory Note between James Miller and National Intelligence Association, Inc., dated November 30, 2009	Filed with the SEC on February 22, 2010 as part of our Amended Registration Statement on Form S-1/A.
10.03	Promissory Note between Darren Wright and National Intelligence Association, Inc., dated March 23, 2010	Filed with the SEC on June 15, 2010 as part of our Current Report on Form 8-K.
10.04	Promissory Note between Andrene Matre and National Intelligence Association, Inc., dated March 23, 2010	Filed with the SEC on June 15, 2010 as part of our Current Report on Form 8-K.
10.05	Promissory Note between Karen Strate and National Intelligence Association, Inc., dated March 24, 2010	Filed with the SEC on June 15, 2010 as part of our Current Report on Form 8-K.
10.06	Consulting Agreement between Greg Farrell and National Intelligence Association, Inc., dated June 17, 2010	Filed with the SEC on June 22, 2010 as part of our Current Report on Form 8-K.
10.07	Consulting Agreement between William Reininger and National Intelligence Association, Inc., dated June 17, 2010	Filed with the SEC on June 22, 2010 as part of our Current Report on Form 8-K.
10.08	Consulting Agreement between C&D Associates, Inc. and National Intelligence Association, Inc., dated July 20, 2010	Filed with the SEC on July 22, 2010 as part of our Current Report on Form 8-K.
10.09	Consulting Agreement between Steven Graff Levine and National Intelligence Association, Inc., dated August 3, 2010	Filed with the SEC on August 24, 2010 as part of our Current Report on Form 8-K.
10.10	Consulting Agreement between Equities Awareness Group and National Intelligence Association, Inc., dated March 31, 2011	Filed with the SEC on April 12, 2011 as part of our Current Report on Form 8-K.
10.11	Warrant between National Intelligence Association, Inc. and Equities Awareness Group dated March 31, 2011	Filed with the SEC on April 12, 2011 as part of our Current Report on Form 8-K.
10.12	Promissory Note between Dr. Luis Carrillo and National Intelligence Association, Inc. dated April 12, 2011	Filed with the SEC on April 19, 2011 as part of our Quarterly Report on Form 10-Q.
10.13	Promissory Note between James J. Miller and National Intelligence Association, Inc. dated April 14, 2011	Filed with the SEC on April 19, 2011 as part of our Quarterly Report on Form 10-Q.
10.14	Consulting Agreement between National Intelligence Association, Inc. and Timothy Barton dated April 24, 2011	Filed with the SEC on April 27, 2011 as part of our Current Report on Form 8-K.
10.15	Settlement Agreement between Dr. Luis Carrillo and National Intelligence Association, Inc. dated June 27, 2011	Filed with the SEC on July 7, 2011 as part of our Current Report on Form 8-K.
10.16	Promissory Note between Luis Carrillo III and National Intelligence Association, Inc. dated June 27, 2011	Filed with the SEC on July 18, 2011 as part of our Current Report on Form 8-K.
10.17	Settlement Agreement between Luis Carrillo III and National Intelligence Association, Inc. dated July 7, 2011	Filed with the SEC on July 18, 2011 as part of our Current Report on Form 8-K.
10.18	Promissory Note between Millington Capital Corp and National Intelligence Association, Inc. dated July 7, 2011	Filed with the SEC on July 18, 2011 as part of our Current Report on Form 8-K.
10.19	Promissory Note between Millington Capital Corp and National Intelligence Association, Inc. dated July 7, 2011	Filed with the SEC on July 18, 2011 as part of our Current Report on Form 8-K.
14.01	Code of Ethics	Filed with the SEC on December 10, 2009 as part of our Registration Statement on Form S-1.
31.01	Certification of Principal Executive Officer Pursuant to Rule 13a-14	Filed herewith.
31.02	Certification of Principal Financial Officer Pursuant to Rule 13a-14	Filed herewith.
32.01	CEO and CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act	Filed herewith.

SIGNATURES

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

NATIONAL INTELLIGENCE ASSOCIATION, INC.

Dated: July 20, 2011

By:

/s/ James J. Miller

James J. Miller

President and CEO

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