UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, 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 ~~October~~January 31, ~~2009~~2010

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

For the transition period from ___________ to ______________

Commission File Number: 333-152679

DNA SYSTEMS, INC.

(Exact name of registrant as specified in its charter)


Nevada		98-0557273
(State or other jurisdiction of incorporation)		(IRS Employer Identification Number)

Rm 2213-14, 22^nd Floor, Jardine House, 1 Connaught Place, Central, Hong Kong
(Address of principal executive offices)
(852) 2802-8663
(Registrant’s 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 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. [ X ] Yes [ ] 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). Not Applicable.

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). [ X ] Yes [ ] No

As of ~~December~~March 15, ~~2009~~2010, there were 8,500,000 shares of voting common stock, $0.001 par value, of DNA Systems, Inc. issued and outstanding.

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PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

The financial statements of DNA Systems, Inc. (“we”, “us”, “our”, “DNAS” or the “Company”) a Nevada corporation, included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission. Because certain information and notes normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States of America were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the financial statements and notes thereto included in the audited financial statements of the DNA Systems, Inc., for the fiscal year ended April 30, 2009 included in the Company’s Form ~~10K~~10-K filed with the Securities and Exchange Commission on July 29, 2009.

DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~OCTOBER~~JANUARY 31, ~~2009~~2010 AND ~~2008~~2009

INDEX

Page

Condensed balance sheets

Condensed ~~statements~~statement of operations and comprehensive loss

Condensed statements of cash flows

Notes to condensed financial statements

6 - 13

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DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED BALANCE SHEETS

AS OF ~~OCTOBER~~JANUARY 31, ~~2009~~2010 AND APRIL 30, 2009

	As of		As of	~~As of~~
	October 31,			April 30,
	January 31,		April 30,
	2009			2009
	2010		2009
	(Unaudited)		(Audited)
	US$		US$	~~US$~~
ASSETS
Current assets
Cash and cash equivalents	~~681~~1,910		818	~~818~~
Total assets	~~681~~1,910		818
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accrued audit fee	42,~~152~~447		5,754	~~5,754~~
Amount due to a stockholder (Note 7)	95108,~~886~~069		26,741	~~26,741~~
Total liabilities	~~100~~110,~~038~~516		32,495
Stockholders’ deficit
Common stock - US$0.001 par value (Note 4)
Common stock - US$0.001 par value (Note 4) :
Authorized 65,000,000 shares; 8,500,000
Authorized 65,000,000 shares;
shares issued and outstanding	8,500			8,500
issued and outstanding 8,500,000 shares	8,500		8,500
Accumulated deficit during the development stage	(109,001	)		(40,090	)
Accumulated deficit	(118,461	)	(40,090	)
Accumulated other comprehensive income (loss)	1,~~144~~355		(87	~~(87~~)	)
Total stockholders’ deficit	(99108,~~357~~606	)	(31,677	~~(31,677~~)	)
Total liabilities and stockholders’ deficit	~~681~~1,910		818	~~818~~

See accompanying notes to the condensed financial statements.

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DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED ~~STATEMENTS~~STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~OCTOBER~~JANUARY 31, ~~2009~~2010 AND ~~2008~~2009

AND FROM INCEPTION ON OCTOBER 25, 2007 THROUGH ~~OCTOBER~~JANUARY 31, ~~2009~~2010

	Three months				Six months					Cumulative
	Three months ended				Nine months ended				Cumulative
	ended October 31,				ended October 31,					total since
	January 31,				January 31,				total since
	2009		2008		2009		2008			inception
	2010		2009		2010		2009		inception
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)	~~(Unaudited)~~
	US$		US$		US$		US$		US$	~~US$~~
Revenue	-		-		-		6,407		6,407	~~6,407~~
Expenses
Formation expenses	-		-		-		-		513	~~513~~
General and administrative expenses	229,~~982~~460		86,~~986~~089		6878,~~911~~371		1622,~~316~~405		124,355	~~114,895~~
Loss before income taxes	(229,~~982~~460	)	(86,~~986~~089	)	(6878,~~911~~371	)	(915,~~909~~998	)	(118,461	~~(109,001~~)	)
Income taxes (Note 2)	-		-		-		-		-	-
Net loss	(229,~~982~~460	)	(86,~~986~~089	)	(6878,~~911~~371	)	(915,~~909~~998	)	(118,461	~~(109,001~~)	)
Other comprehensive (loss) income
Other comprehensive income
Foreign currency translation adjustment	(1211	)	(16	)	1,~~231~~442		(51	)	1,355	~~1,144~~
Total comprehensive loss	(229,~~983~~249	)	(86,~~987~~083	)	(6776,~~680~~929	)	(915,~~914~~997	)	(117,106	~~(107,857~~)	)
Net loss per share :
Basic and diluted (Note 3)	(0.00	)	(0.00	)	(0.01	)	(0.00	)	(0.01	~~(0.01~~)	)
Weighted average number of shares :
Weighted average number of
Basic and diluted	8,500,000		8,500,000		8,500,000		8,500,000			8,004,071
outstanding shares :
Basic and diluted	8,500,000		8,500,000		8,500,000		8,500,000		8,059,107

See accompanying notes to the condensed financial statements.

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DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE ~~THREE~~NINE ~~AND SIX~~ MONTHS ENDED ~~OCTOBER~~JANUARY 31, ~~2009~~2010 AND ~~2008~~2009

AND FROM INCEPTION ON OCTOBER 25, 2007 THROUGH ~~OCTOBER~~JANUARY 31, ~~2009~~2010

	Three months				Six months				Cumulative
	Nine months ended				Cumulative
	ended October 31,				ended October 31,				total since
	January 31,				total since
	2009		2008		2009		2008		inception
	2010		2009		inception
	(Unaudited)		(Unaudited)		(Unaudited)		~~(Unaudited)~~		~~(Unaudited)~~
	US$		US$		US$		~~US$~~		~~US$~~
Cash flows from operating activities
Net loss	(2278,~~982~~371	)	(815,~~986~~998	)	(68118,~~911~~461	)	~~(9,909~~	)	~~(109,001~~	)
Change in liability
Accrued audit fee	(~~364~~3,307	)	~~(4,520~~302	)	(12,~~602~~447	)	~~(856~~	)	~~4,152~~
Net cash used in operating activities	(2381,~~346~~678	)	(1315,~~506~~696	)	(70116,~~513~~014	)	~~(10,765~~	)	~~(104,849~~	)
Cash flows from financing activities
Proceeds from issuance of
Proceeds from issuance of common stock	-		-		8,500
common stock	-		-		-		-		8,500
Advances from a stockholder	81,328		9,283		108,069
Advances from a stockholder	23,288		4,389		69,145		4,389		95,886
Net cash provided by financing activities	81,328		9,283		116,569
Net cash provided by financing activities	23,288		4,389		69,145		4,389		104,386
Effect of foreign exchange rate changes in cash
Effect of foreign exchange rate changes in
and cash equivalents	1,442		1		1,355
cash and cash equivalents	(1	)	(1	)	1,231		(5	)	1,144
Net change in cash and cash equivalents	1,092		(6,412	)	1,910
Net change in cash and cash equivalents	(59	)	(9,118	)	(137	)	(6,381	)	681
Cash and cash equivalents, beginning of period	818		7,261		-
Cash and cash equivalents, beginning
Cash and cash equivalents, end of period	1,910		849		1,910
of period	740		9,998		818		7,261		-
Supplemental cash flow information :-
Cash and cash equivalents, end of period	681		880		681		880		681
Cash paid for :-
Supplemental cash flow information :
Income taxes	-		-		-
Cash paid for :
Interest	-		-		-
Income taxes	-		-		-		-		-
Interest	-		-		-		-		-

See accompanying notes to the condensed financial statements.

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DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~OCTOBER~~JANUARY 31, ~~2009~~2010 AND ~~2008~~2009

AND FROM INCEPTION ON OCTOBER 25, 2007 THROUGH ~~OCTOBER~~JANUARY 31, ~~2009~~2010

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES

Corporate information

DNA Systems, Inc. (the “Company”) was incorporated in the State of Nevada on October 25, 2007 for the purpose of exploring new business opportunities. The Company is a development stage company and has not yet generated any significant revenue from its operations.

On April 11, 2008, the Company entered into an agreement with DNA Financial Systems (HK) Limited (“DNAF Limited”), a Hong Kong corporation founded in 2005, pursuant to which the Company agreed to provide venues for DNAF Limited to organize conferences, seminars, corporate trainings and programs in line with professional events.

Continuance of operations

These financial statements are prepared on a going concern basis, which has considered the realization of assets and satisfaction of liabilities in the Company’s normal course of business. As of ~~October~~ January 31, ~~2009~~2010, the Company had cash and cash equivalents of US$~~681~~1,910, working capital deficit and stockholders’ deficit of US$99108,~~357~~606 and accumulated deficit during the development stage of US$~~109~~118,~~001~~461 respectively. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

Management plans on the continuation of the Company as a going concern include financing the Company’s existing and future operations through additional issuance of common stock and/or advances from the ~~major~~majority stockholder and seeking for profitable business opportunities. However, the Company has no assurance with respect to these plans. The accompanying condensed financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Basis of preparation

The accompanying condensed financial statements are unaudited. These condensed financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with the generally accepted accounting principles in the United States (“U.S. GAAP”) have been omitted pursuant to such SEC rules and regulations; nevertheless, the Company believes that the disclosures are adequate to make the information presented not misleading. These condensed financial statements and the notes hereto should be read in conjunction with the financial statements and notes thereto included in the Company’s financial report for the year ended April 30, 2009.

In the opinion of the management of the Company, the unaudited condensed financial statements for the interim periods presented include all adjustments, including normal recurring adjustments, necessary to fairly present the results of such interim periods and the financial position as of the end of the said periods. The results of operations for the interim periods are not necessarily indicative of the results for the full year.

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DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~OCTOBER~~JANUARY 31, ~~2009~~2010 AND ~~2008~~2009

AND FROM INCEPTION ON OCTOBER 25, 2007 THROUGH ~~OCTOBER~~JANUARY 31, ~~2009~~2010

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

Basis of preparation (Cont’d)

Cash and cash equivalents

Cash equivalents comprise highly liquid investments with original maturity of three months or less. As of ~~October~~January 31, ~~2009~~2010, cash equivalents consisted of bank balance of US$~~196~~1,426 and cash on hand of US$~~485~~484, which were denominated in Hong Kong dollars (“HKD”).

Concentration of risk

The Company keeps cash in Hong Kong ~~dollar~~dollars (“HKD”) and maintains a HKD savings account with a commercial bank in Hong Kong, which are financial instruments that are potentially subject to concentration of credit risk. During the reporting periods, the Company did not engage in any hedging activities.

Revenue recognition

The Company recognizes revenue from providing event organizing services when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when persuasive evidence of an arrangement exists, the services have been provided to customers, the sales price is fixed or determinable, no significant unfulfilled obligations exist and collectibility is reasonably assured.

Income taxes

The Company accounts for income tax in accordance with ASC 740, Income Taxes, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of the events that have been included in the financial statements or tax returns. Deferred income taxes are recognized for all significant temporary differences between tax and financial statement bases of assets and liabilities. A valuation allowance is recognized on deferred tax assets when it is more likely than not that these deferred tax assets will not be realized.

Foreign currency translation

The Company kept cash and cash equivalents and incurred expenses in HKD during the reporting periods and thus HKD is considered to be the Company’s functional currency. Transactions denominated in currencies other than HKD are translated into HKD at the applicable rates of exchange prevailing at the dates of the transactions. Monetary assets and liabilities denominated in other currencies are translated into HKD at the rates of exchange prevailing at the balance sheet date. Exchange gains and losses are included in the determination of net loss.

For financial reporting purposes, HKD has been translated into United States dollars (“US$”) as the reporting currency. Assets and liabilities are translated into US$ at the exchange rate in effect at the period end. Income and expenses are translated at average exchange rate prevailing during the period. Translation adjustments arising from the use of different exchange rates from period to period are included as a component of stockholders’ deficit as “Accumulated other comprehensive income (loss)”. Gains and losses resulting from foreign currency translation are included in other comprehensive income (loss).

Conversion of amounts from HKD into US$ has been made at the exchange rate of US$1.00 for HKD7.7504 as of October 31, 2009.

- 7 -

DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~OCTOBER~~JANUARY 31, ~~2009~~2010 AND ~~2008~~2009

AND FROM INCEPTION ON OCTOBER 25, 2007 THROUGH ~~OCTOBER~~JANUARY 31, ~~2009~~2010

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

Foreign currency translation

The Company kept cash and cash equivalents and incurred income and expenses in HKD during the reporting periods and thus HKD is considered to be the Company’s functional currency. Transactions denominated in currencies other than HKD are translated into HKD at the applicable rates of exchange prevailing at the dates of the transactions. Monetary assets and liabilities denominated in other currencies are translated into HKD at the rates of exchange prevailing at the balance sheet date. Exchange gains and losses are included in the determination of net loss.

Conversion of amounts from HKD into US$ had been made at the exchange rate of US$1.00 = HKD7.7526 for the nine months ended January 31, 2010 and US$1.00 = HKD7.7659 as of January 31, 2010.

Use of estimates

The preparation of condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in these financial statements and the accompanying notes during the reporting periods. Actual results could differ from those estimates.

Fair values of financial instruments

The Company’s financial instruments include cash and cash equivalents, accrued audit fee and amount due to a stockholder. Management of the Company does not believe that the Company is subject to significant interest, currency or credit risks arising from these financial instruments. The respective carrying values of these financial instruments approximate their fair values since they are short-term in nature or they are receivable or payable on demand.

Recently issued accounting pronouncements

~~FASB~~In ~~Accounting~~December ~~Standards~~2007, ~~Codification~~the ~~(Accounting~~FASB ~~Standards~~issued ~~Update~~ASC Topic 810, “~~ASU~~Consolidation”, Nowhich establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. ~~2009-~~The guidance will apply to the Company’s financial statements starting in its fiscal year beginning on October 1), 2009. The adoption of ASC Topic 810 has no material impact on the Company’s financial statements.

In June 2009, the Financial Accounting Standard Board (“FASB”) approved its Accounting Standards Codification (“Codification”) as the single source of authoritative United States accounting and reporting standards applicable for all non-governmental entities, with the exception of the SEC and its staff. The Codification is effective for interim or annual financial periods ending after September 15, 2009 and impacts the Company’s financial statements as all future references to authoritative accounting literature will be referenced in accordance with the Codification. There have been no changes to the content of the Company’s financial statements or disclosures as a result of implementing the Codification.

As a result of the Company’s implementation of the Codification during the current quarter, previous references to new accounting standards and literature are no longer applicable. In these financial statements, the Company will provide reference to both new and old guidance to assist in understanding the impacts of recently adopted accounting literature, particularly for guidance adopted since the beginning of the current fiscal year but prior to the Codification.

Noncontrolling Interests (Included in amended Topic ASC 810 “Consolidation”, previously SFAS No. 160 “Noncontrolling Interests in Consolidated Financial Statements”, an amendment of ARB No. 51)

The amended topic establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It clarifies that a noncontrolling interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the consolidated financial statements. The management is in the process of evaluating the impact of adopting this amended topic on the Company’s financial statements.

- 8 -

DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~OCTOBER~~JANUARY 31, ~~2009~~2010 AND ~~2008~~2009

AND FROM INCEPTION ON OCTOBER 25, 2007 THROUGH ~~OCTOBER~~JANUARY 31, ~~2009~~2010

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

Recently issued accounting pronouncements (cont’d)

~~Business~~In ~~Combinations~~April ~~(Included~~2008, inthe ~~amended~~FASB ~~Topic~~issued ASC ~~805~~Topic 350, “~~Business~~Intangibles-Goodwill ~~Combinations~~and Other”, ~~previously~~which amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets (“SFAS No. 142”). ASC Topic 350 is intended to improve the consistency between the useful life of an intangible asset determined under SFAS No. 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS No. 141(RRevised)) and other U.S. GAAP. ASC Topic 350 is effective for fiscal years beginning after December 15, 2008 which means that it will be effective for the Company’s fiscal year beginning on October 1, 2009. Early adoption is prohibited. The adoption of ASC Topic 350 has no material impact on the Company’s financial statements.

~~This~~In April 2009, the FASB issued ASC ~~guidance~~Topic ~~addresses~~805, “Business Combinations”, which amends the provisions in SFAS No. 141 (Revised) for the initial recognition and measurement, subsequent measurement and accounting, and ~~disclosure~~disclosures for ~~identifiable~~ assets ~~acquired,~~and liabilities ~~assumed~~arising from contingencies in business combinations. ASC Topic 805 eliminates the distinction between contractual and non-contractual contingencies, including the initial recognition and ~~noncontrolling~~measurement ~~interests~~criteria in aSFAS ~~business~~No. ~~combination~~141 (Revised) and instead carries forward most of the provisions in SFAS No. ~~The~~141 ~~management~~for acquired contingencies. ASC Topic 805 is ineffective ~~the~~for ~~process~~contingent ofassets and contingent liabilities acquired in evaluating the impact of ~~adopting~~SFAS ~~this~~No. ~~amended~~141 ~~topic~~(Revised). The adoption of ASC Topic 805 has no material impact on the Company’s financial statements.

~~Intangibles~~In -April ~~Goodwill~~2009, the FASB issued an amendment to ASC Topic 805, “Business Combinations”, which establishes principles and ~~Other~~requirements ~~(Included~~for how the acquirer of a business recognizes and measures in ~~amended~~its ~~Topic~~financial ~~ASC~~statements ~~350~~the identifiable assets acquired, ~~previously~~the ~~FASB~~liabilities ~~Staff~~assumed, ~~Position~~and ~~(“FSP”)~~any Nononcontrolling interest in the acquiree. ~~142-3~~The ~~“Determination~~topic also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the ~~Useful~~financial ~~Life~~statements to evaluate the nature and financial effects of ~~Intangible~~the ~~Assets”)~~business combination. This amendment to ASC Topic 805 is effective to be adopted by the Company for business acquisitions for which the acquisition date is on or after October 1, 2009. The adoption of the amendment to ASC Topics 805 has no material impact on the Company’s financial statements.

~~The~~In ~~amended~~June ~~topic~~2009, ~~amends~~ the ~~factors~~FASB anissued ~~entity~~ASC ~~should~~Topic ~~consider~~860, in“Transfers ~~developing~~and ~~renewal~~Servicing”, orwhich ~~extension~~improves ~~assumptions~~the ~~used~~relevance, inrepresentational ~~determining~~faithfulness, and comparability of the ~~useful~~information ~~life~~that ofa ~~recognized~~reporting ~~intangible~~entity ~~assets.~~provides ~~This~~in ~~new~~its ~~guidance~~financial ~~applies~~statements ~~prospectively~~about toa ~~intangible~~transfer of financial assets; ~~that~~the ~~are~~effects ~~acquired~~of ~~individually~~a ortransfer ~~with~~on aits ~~group~~financial ofposition, ~~other~~financial ~~assets~~performance, inand ~~business~~cash ~~combinations~~flow; and ~~asset~~a ~~acquisitions~~transferor’s continuing involvement, if any, in transferred financial assets. ~~The~~ ~~amended~~ASC ~~topic~~Topic 860 is effective ~~for~~as ~~financial~~of ~~statements~~the ~~issued~~beginning ~~for~~of ~~fiscal~~each ~~years~~reporting ~~and~~entity’s ~~interim~~first ~~periods~~annual ~~beginning~~reporting period that begins after ~~December~~ November 15, ~~2008.~~2009, ~~Early~~for ~~adoption~~interim isperiods ~~prohibited~~within that first annual reporting period and for interim and annual reporting periods thereafter. The adoption of ~~this~~ASC ~~amended~~Topic ~~topic~~860 has no material ~~effect~~impact on the Company'’s financial statements.

Business Combinations (Included in amended Topic ASC 805, previously FSP No. 141R-1 “Accounting for Assets Acquired and Liabilities Assumed in a Business Combination That Arise from Contingencies”)

Amended topic ASC 805 amends the requirements for the provisions for the initial recognition and measurement, subsequent measurement and accounting, and disclosures for assets and liabilities arising from contingencies in business combinations. The amended topic eliminates the distinction between contractual and non-contractual contingencies, including the initial recognition and measurement criteria and instead carries forward most of the provisions for acquired contingencies. The amended topic is effective for contingent assets and contingent liabilities acquired from business combinations for which the acquisition data is on or as of December 15, 2008. The adoption of this amended topic has no material effect on the Company's financial statements.

Fair Value Measurements and Disclosures (Included in amended Topic ASC 820, previously FSP No. 157-4 “Determining Whether a Market is Not Active and a Transaction Is Not Distressed”)

The amended topic clarifies when markets are illiquid or that market pricing may not actually reflect the “real” value of an asset. If a market is determined to be inactive and market price is reflective of a distressed price then an alternative method of pricing can be used, such as a present value technique to estimate fair value. The amended topic identifies factors to be considered when determining whether or not a market is inactive. The amended topic is effective for interim and annual periods ending after June 15, 2009, with early adoption permitted for periods ending after March 15, 2009 and shall be applied prospectively. The adoption of this amended topic has no material effect on the Company's financial statements.

- 9 -

DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~OCTOBER~~JANUARY 31, ~~2009~~2010 AND ~~2008~~2009

AND FROM INCEPTION ON OCTOBER 25, 2007 THROUGH ~~OCTOBER~~JANUARY 31, ~~2009~~2010

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

Recently issued accounting pronouncements (cont’d)

~~Investments~~In -June ~~Debt~~2009, ~~and~~the ~~Equity~~FASB ~~Securities~~issued -an ~~Overall~~amendment to ASC Topic 810, “Consolidation”, which amends FASB Interpretation No. 46 (revised December 2003) to address the elimination of the concept of a qualifying special purpose entity. ASC Topic 810 also replaces the quantitative-based ~~Transition~~risks and ~~Open~~rewards ~~Effective~~calculation ~~Date~~for ~~Information~~determining ~~(Included~~which enterprise has a controlling financial interest in ~~amended~~a variable interest entity with an approach focused on identifying which enterprise has the power to direct the activities of a variable interest entity and the obligation to absorb losses of the entity or the right to receive benefits from the entity. Additionally, ASC Topic 810 provides more timely and useful information about an enterprise’s involvement with a variable interest entity. The amendment to ASC ~~320~~Topic 810 shall be effective as of the beginning of each reporting entity’s first annual reporting period that begins after November 15, ~~previously~~2009, ~~FSP~~for ~~No.~~interim ~~115-2~~periods within that first annual reporting period, and ~~SFAS~~for Nointerim and annual reporting periods thereafter. ~~124-2~~Earlier ~~“Recognition~~application ~~and~~is ~~Presentation~~prohibited. The adoption of ~~Other-Than-Temporary~~the ~~Impairments”)~~amendment to ASC Topic 810 has no material impact on the Company’s financial statements.

~~The~~In ~~amended~~August ~~topic~~2009, ~~amends~~ the ~~other~~FASB issued ASU 2009-~~than-temporary~~05, ~~impairment~~“Fair ~~guidance~~Value inMeasurements ~~U.S.~~and ~~GAAP~~Disclosures ~~for~~(Topic ~~debt~~820) ~~securities~~– ~~through~~Measuring ~~increased~~Liabilities ~~consistency~~at inFair Value”, or ASU 2009-05. ASU 2009-05 provides additional guidance for measuring the ~~timing~~fair value of ~~impairment~~liabilities ~~recognition~~ and ~~enhanced~~clarifies ~~disclosures~~that ~~related~~the toquoted price for the ~~credit~~identical ~~and~~liability, ~~noncredit~~when ~~components~~traded ofas ~~impaired~~an ~~debt~~asset ~~securities~~in ~~that~~an active market, is a level 1 measurement, providing there are ~~not~~no ~~expected~~adjustments to bethe ~~sold~~quoted price. InAlternatively, ~~addition~~when no quoted price is available, ~~increased~~ASU ~~disclosures~~2009-05 ~~are~~affirms ~~required~~the ~~for~~use ~~both~~of ~~debt~~other ~~and~~valuation ~~equity~~techniques ~~securities~~outlined ~~regarding~~in ~~expected~~SFAS ~~cash~~No. ~~flows,~~157. ~~credit~~ASU ~~losses,~~2009-05 ~~and~~is ~~securities~~effective ~~with~~for ~~unrealized~~the ~~losses~~first interim or annual reporting period beginning after its issuance. The adoption of ~~this~~ASU ~~amended~~2009-05 ~~topic~~ has no material impact on the Company’s financial statements.

~~Subsequent~~In ~~Events~~September 2009, the FASB issued ASU 2009-12, “Fair Value Measurements and Disclosures (~~Included~~Topic 820) – Investments in ~~amended~~Certain ~~Topic~~Entities ~~ASC~~That ~~855~~Calculate ~~“Subsequent~~Net ~~Events~~Asset Value per Share (or Its Equivalent)”, ~~previously~~or ASU 2009-12. ASU 2009-12 amends SFAS No. ~~165~~157 to permit a reporting entity to measure the fair value of certain investments on the basis of the net asset value per share of the investment (or its equivalent). ASU 2009-12 also requires new disclosures, by major category of investments, about the attributes includes of investments within the scope of this amendment to the Codification. ASU 2009-12 is effective for interim and annual periods ending after December 15, 2009. Early adoption is permitted. The adoption of ASU 2009-12 has no material impact on the Company’s financial statements.

~~The~~In ~~amended~~October ~~topic~~2009, ~~establishes~~the ~~accounting~~FASB ~~and~~issued ~~disclosure~~ASU ~~requirements~~2009-13, ~~for~~“Revenue ~~subsequent~~Recognition ~~events.~~(Topic ~~The~~605) ~~amended~~– ~~topic~~Multiple-Deliverable ~~details~~Revenue ~~the~~Arrangements”, ~~period~~or ~~after~~ASU ~~the~~2009-13. ~~balance~~ASU ~~sheet~~2009-13 ~~date~~requires ~~during~~companies ~~which~~to ~~the~~allocate ~~Company~~revenue ~~should~~in ~~evaluate~~multiple-element ~~events~~arrangements orbased ~~transactions~~on ~~that~~an ~~occur~~element’s ~~for~~estimated ~~potential~~selling ~~recognition~~price if vendor-specific or ~~disclosure~~other inthird ~~the~~party ~~financial~~evidence ~~statements,~~of ~~the~~value ~~circumstances~~is ~~under~~not ~~which~~available. ~~the~~ASU ~~Company~~2009-13 ~~should~~is ~~recognize~~to ~~events~~be orapplied ~~transactions~~on ~~occurring~~a ~~after~~prospective ~~the~~basis ~~balance~~for ~~sheet~~revenue ~~date~~arrangements entered into or materially modified in ~~its~~fiscal ~~financial~~years ~~statements~~beginning ~~and~~on ~~the~~or ~~required~~after ~~disclosures~~June ~~for~~15, ~~such~~2010, ~~events~~with earlier application permitted. The Company ~~adopted~~is ~~this~~currently ~~amended~~evaluating ~~topic~~the ~~effective~~impact ~~June~~of 1,the adoption of ASU 2009-13 on its financial statements.

Accounting for Transfers of Financial Assets (Included in amended Topic ASC 860 “Transfers and Servicing”, previously SFAS No. 166 “Accounting for Transfers of Financial Assets - an Amendment of FASB Statement No. 140”)

The amended topic addresses information a reporting entity provides in its financial statements about the transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor’s continuing involvement in transferred financial assets. Also, the amended topic removes the concept of a qualifying special purpose entity, limits the circumstances in which a transferor derecognizes a portion or component of a financial asset, defines participating interest and enhances the information provided to financial statement users to provide greater transparency. The amended topic is effective for the first annual reporting period beginning after November 15, 2009 and will be effective for us as of May 1, 2010. The management is in the process of evaluating the impact of adopting this amended topic on the Company’s financial statements.

- 10 -

DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~OCTOBER~~JANUARY 31, ~~2009~~2010 AND ~~2008~~2009

AND FROM INCEPTION ON OCTOBER 25, 2007 THROUGH ~~OCTOBER~~JANUARY 31, ~~2009~~2010

NATURE OF BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES (CONT’D)

Recently issued accounting pronouncements (cont’d)

~~Consolidation~~In ofJanuary ~~Variable~~2010, ~~Interest~~the ~~Entities~~FASB issued ASU 2010-06, ~~Amended~~“Fair ~~(Included~~Value inMeasurements ~~amended~~and Disclosures (Topic ~~ASC~~820): ~~810~~Improving ~~“Consolidation~~Disclosures about Fair Value Measurements”, ~~previously~~or ~~SFAS~~ASU ~~167~~2010-06. ~~“Amendments~~This toASU requires some new disclosures and clarifies some existing disclosure requirements about fair value measurement as set forth in Codification Subtopic 820-10. The FASB’s ~~Interpretation~~objective Nois to improve these disclosures and thus, increase the transparency in financial reporting. ~~46(R)”)~~Specifically, ASU 2010-06 amends Codification Subtopic 820-10 to now require:

The amended topic require an enterprise to perform an analysis to determine the primary beneficiary of a variable interest entity; to require ongoing reassessments of whether an enterprise is the primary beneficiary of a variable interest entity and to eliminate the quantitative approach previously required for determining the primary beneficiary of a variable interest entity. The amended topic also requires enhanced disclosures that will provide users of financial statements with more transparent information about an enterprise’s involvement in a variable interest entity. The amended topic is effective for the first annual reporting period beginning after November 15, 2009 and will be effective for us as of May 1, 2010. The management is in the process of evaluating the impact of adopting this amended topic on the Company’s financial statements.l

InA ~~August~~reporting ~~2009,~~entity ~~the~~should ~~FASB~~disclose ~~issued~~separately ~~ASU No. 2009-05, an update to ASC 820 “Fair Value Measurements and Disclosures”. This update provides amendments to reduce potential ambiguity in financial reporting when measuring~~ the ~~fair~~amounts ~~value~~ of ~~liabilities.~~significant ~~Among~~transfers ~~other provisions, this update provides clarification that~~ in ~~circumstances~~and inout ~~which~~of aLevel ~~quoted~~1 ~~price~~and inLevel an2 ~~active market for the identical liability is not available, a reporting entity is required to measure~~ fair value ~~using~~measurements ~~one~~and ordescribe ~~more of~~ the ~~valuation~~reasons ~~techniques described in ASU No. 2009-05. ASU No. 2009-05 will become effective~~ for the ~~Company’s~~transfers; ~~interim~~and ~~financial statements for the quarter ending January 1, 2010. The management is in the process of evaluating the impact of adopting this ASU on the Company’s financial statements.~~

In October 2009, the FASB issued ASU No. 2009-13 “Revenue Recognition (Topic 605): Multiple Deliverable Revenue Arrangements – A Consensus of the FASB Emerging Issues Task Force”. This update provides application guidance on whether multiple deliverables exist, how the deliverables should be separated and how the consideration should be allocated to one or more units of accounting. This update establishes a selling price hierarchy for determining the selling price of a deliverable. The selling price used for each deliverable will be based on vendor-specific objective evidence, if available, third-party evidence if vendor-specific objective evidence is not available, or estimated selling price if neither vendor-specific or third-party evidence is available. The Company will be required to apply this guidance prospectively for revenue arrangements entered into a materially modified after January 1, 2011; however, earlier application is permitted. The management is in the process of evaluating the impact of adopting this ASU on the Company’s financial statements.l

In the reconciliation for fair value measurements using significant unobservable inputs, a report entity should present separately information about purchases, sales, issuances, and settlements.

ASU 2010-06 is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. Early application is permitted. The Company is currently evaluating the impact of the adoption of ASU 2010-06 on its financial statements.

The FASB issued ASU-2010-09 (Topic 855) to amend guidance on subsequent events to remove the requirement for SEC filers (as defined in ASU 2010-09) to disclose the date through which an entity has evaluated subsequent events. This change alleviates potential conflicts with current SEC guidance. An SEC filer is still required to evaluate subsequent events through the date financial statements are issued, but disclosure of that date is no longer required. The amendments in ASU 2010-09 became effective upon issuance of the guidance.

INCOME TAXES

A reconciliation of income taxes at statutory rate is as follows :-


	*Three months ended* *January 31,*				*Nine months ended* *January 31,*				*Cumulative total since*
	*2010*		*2009*		*2010*		*2009*		*Inception*
	*(Unaudited)*		*(Unaudited)*		*(Unaudited)*		*(Unaudited)*		*(Unaudited)*
	*US$*		*US$*		*US$*		*US$*		*US$*

Loss before income taxes	(9,460	)	(6,089	)	(78,371	)	(15,998	)	(118,461	)

Expected benefit at statutory rate of 15%	(1,419	)	(913	)	(11,756	)	(2,400	)	(17,769	)
Valuation allowance	1,419		913		11,756		2,400		17,769

	-		-		-		-		-

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DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND ~~SIX~~NINE MONTHS ENDED ~~OCTOBER~~JANUARY 31, ~~2009~~2010 AND ~~2008~~2009

AND FROM INCEPTION ON OCTOBER 25, 2007 THROUGH ~~OCTOBER~~JANUARY 31, ~~2009~~2010

INCOME TAXES (CONT’D)

ARecognized ~~reconciliation~~deferred of income ~~taxes~~tax atasset ~~statutory rate in the United States~~ is as follows :-

	Six months					Cumulative
		As of		As of
	ended October 31,					total since
		January 31,		April 30,
	2009		2008			inception
		2010		2009
	~~(Unaudited)~~	(Unaudited)	~~(Unaudited)~~	(Audited)		~~(Unaudited)~~
	~~US$~~	US$	~~US$~~	US$		~~US$~~
Loss before income taxes	(68,911	)	(9,909	)		(109,001	)
	Operating losses available for future periods	17,769		6,014
Expected benefit at statutory rate of 15%	(10,336	)	(1,486	)		(16,350	)
	Valuation allowance	(17,769	)	(6,014	)
Valuation allowance	10,336		1,486			16,350
		-		-
Income taxes	-		-			-

~~Recognized~~As ~~deferred~~of ~~income~~January 31, 2010, the Company had incurred operating losses of US$118,461 which, if unutilized, will expire through to 2030. Future tax ~~assets~~benefits isarising as ~~follows~~a :-result of these losses have been offset by a valuation allowance.

	As of		As of
	October 31,		April 30,
	2009		2009
	(Unaudited)
	US$		US$
Operating losses available for future periods	16,350		6,014
Valuation allowance	(16,350	)	(6,014	)
	-		-

As of October 31, 2009, the Company had incurred operating losses of US$109,001 which, if unutilized, will expire through to 2029. Future tax benefits arising as a result of these losses have been offset by a valuation allowance.

NET LOSS PER SHARE

During the reporting periods, the Company did not ~~have~~issue any dilutive instruments. Accordingly, the reported basic and diluted loss per share is the same.

COMMON STOCK

The Company was incorporated on October 25, 2007 with authorized capital of 65,000,000 shares of common stock of US$0.001 par value. On December 7, 2007, 8,500,000 shares of common stock of US$0.001 par value ~~totalling~~totaling US$8,500 were issued for cash.

- 12 -

DNA SYSTEMS, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2009 AND 2008

AND FROM INCEPTION ON OCTOBER 25, 2007 THROUGH OCTOBER 31, 2009

STOCK INCENTIVE PLAN

The Company has not established any stock incentive plan since its incorporation.

COMMITMENTS AND CONTINGENCIES

The Company entered into a sub-lease agreement for the provision of general administrative services and office premises by a related company on May 1, 2009 for a term of one year at a monthly rental of US$2,580. The expected payment as of ~~October~~January 31, ~~2009~~2010 was US$157,~~480~~740, which will fall due within the next year. The related company is controlled by the Company’s director.

- 12 -

DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED JANUARY 31, 2010 AND 2009

AND FROM INCEPTION ON OCTOBER 25, 2007 THROUGH JANUARY 31, 2010

RELATED PARTY TRANSACTIONS

The majority stockholder, who is also the director, advanced US$95108,~~886~~069 to the Company to finance its working capital as of ~~October~~January 31, ~~2009~~2010. The advance is interest-free, unsecured and repayable on demand.

The Company paid management fee of US$2330,~~200~~936 to a related company for the provision of general administrative services and office premises during the period from inception on October 25, 2007 through ~~October~~January 31, ~~2009~~2010. The related company is controlled by the Company’s director.

SUBSEQUENT EVENTS

The Company has evaluated all subsequent events ~~through December 15, 2009, the date these financial statements were issued,~~ and determined that there were no subsequent events or transactions that required recognition or disclosure in the financial statements.

- 13 -

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Special Note of Caution Regarding Forward Looking Statements

CERTAIN STATEMENTS IN THIS REPORT INCLUDE FORWARD-LOOKING STATEMENTS THAT INCLUDE RISKS AND UNCERTAINTIES. WE USE WORDS SUCH AS "ANTICIPATES," "BELIEVES," "PLANS," "EXPECTS," "FUTURE," "INTENDS" AND SIMILAR EXPRESSIONS TO IDENTIFY SUCH FORWARD-LOOKING STATEMENTS. THIS FORM ALSO CONTAINS FORWARD-LOOKING STATEMENTS ATTRIBUTED TO CERTAIN THIRD PARTIES RELATING TO THEIR ESTIMATES REGARDING THE OPERATION AND GROWTH OF OUR BUSINESS AND SPENDING. YOU SHOULD NOT PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH APPLY ONLY AS OF THE DATE HEREOF. WE HAVE BASED THESE FORWARD-LOOKING STATEMENTS ON OUR CURRENT EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. OUR ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE DISCUSSED IN THIS REPORT. OUR ABILITY TO GENERATE REVENUE IS SUBJECT TO SUBSTANTIAL RISKS.

Overview

DNA Systems, Inc. was incorporated in the State of Nevada on October 25, 2007. Our business operations are oriented towards providing event organizing services to business partners. Our overall objective is to create an event organizing business by building a corporate image as a reliable, trustworthy partner that provides high quality event planning and organizing service to our clients.

On April 11, 2008, DNAS entered into an agreement (the “Agreement”) with DNA Financial Systems (HK) Limited (“DNAF Limited”), a Hong Kong corporation founded in 2005, pursuant to which DNAS agreed to provide venues for DNAF Limited to organize conferences, seminars, corporate trainings and programs in line with professional events; a copy of the Agreement was filed as Exhibit 10.1 to the Company’s registration statement on Form S-1 which was filed with the Securities and Exchange Commission (the “SEC”) on July 31, 2008, and is hereby incorporated by reference. Initially, we will provide the conference room located at our executive office as the venue for the professional events of DNAF Limited.

Under the Agreement, DNAS will provide a comprehensive service for special promotions, business and marketing events. Our team of professionals will handle any event from concept to realization and will address DNAF Limited’s needs and desires, with regard to the venue setting, seating, decorations, refreshments and menus. Furthermore, pursuant to the Agreement, we will facilitate the time schedules and event flow and will serve as a point of contact for the site staff and participants. As stated in the Agreement, DNAF Limited shall pay us for the services rendered. The fees for the services that we provide are dependent upon the size, type and duration of the event. The fees shall be paid on the first of the month following the month in which the event was organized by us.

Our ~~president~~President and director, Mr. Wilson Cheung, has several contacts within the Hong Kong business community which we believe will assist us in developing our business operations. Mr. Cheung plans to contact various representatives within the Hong Kong business community who are interested in organizing corporate events, however there is no assurance that we will achieve or sustain profitability on an annual or quarterly basis.

Plan of Operations in the next 12 months

During the next twelve months, the Company expects to continue its efforts to provide event organizing services to business partners. ~~Additionally,~~We ashope ~~the Company has minimal cash on hand, in an effort~~ to ~~raise~~build ~~additional~~up ~~funds,~~our oncorporate ~~July~~reputation ~~31,~~and ~~2008,~~align ~~the~~ourselves ~~Company filed a registration statement~~ with ~~the~~additional ~~SEC~~business ~~for~~partners ~~the~~to ~~purpose~~provide ofour ~~registering~~event ~~200,000~~organizing ~~shares~~services ofto ~~its common stock~~them. The ~~registration statement was~~

- 14 -

~~declared~~Company ~~effective~~does bynot ~~the~~have ~~SEC~~sufficient onassets ~~September~~or ~~10,~~capital ~~2008.~~resources ~~The~~to ~~Company~~pay isits ~~planning~~on-going toexpenses ~~raise~~while ~~additional~~it ~~capital~~is ~~through~~seeking ~~the~~out ~~sale~~business ofopportunities. Management ~~200,000~~plans ~~shares~~to ~~common~~temporarily ~~stock~~advance incapital ~~the~~to ~~next~~maintain 12normal ~~months~~operations. asManagement ~~its~~has ~~registration~~agreed ~~statement~~to ~~has~~provide ~~been~~temporary ~~declared~~financing ~~effective~~to by the ~~SEC.~~Company, ~~Through~~but ~~the~~is ~~sale~~not ofcontractually ~~200,000~~obligated ~~shares~~to ofdo ~~common~~so. Accordingly, ~~stock~~there atcan abe ~~price~~no ofassurance ~~$0.50~~that ~~per~~any ~~share,~~additional itfunds iswill ~~expected~~be ~~that~~available to the Company ~~will~~to ~~raise~~allow anit ~~aggregate~~to ofcover ~~$100,000~~its ~~for~~expenses. If ~~operating~~management ~~expenses~~ceases ~~and~~to ~~business~~advance ~~expansion.~~capital Weand ~~plan~~we fail to ~~use~~raise ~~the~~additional ~~proceeds,~~funding ifto ~~any~~fund our operating expenses, ~~from~~we ~~the~~may ~~offering~~have to ~~develop~~delay, ~~our~~scale ~~business~~back ~~and~~or ~~acquire~~discontinue ~~equipment~~some toor ~~improve~~all of our ~~efficiency~~operations.

~~The~~We have no real property and currently operate from office space provided by Easterly Financial Investment Limited. Since May 1, 2008, the Company ~~plans~~has topaid ~~allocate~~Easterly ~~30%~~a management fee of ~~any~~US$645 ~~proceeds~~for ~~received~~its toprovision ~~cover~~of ~~the~~general ~~expenses~~administrative ~~incurred~~services inand ~~the~~office ~~offering~~premises. IfThe ~~the~~Company ~~offering~~will continue to be stationed at Easterly which is ~~30%~~controlled orby ~~less~~our ~~subscribed~~President, ~~all~~and ~~proceeds~~ will becontinue ~~used~~ to pay ~~the~~a ~~expenses~~monthly ofmanagement ~~the~~fee ~~offering.~~of ~~The~~US$2,580 ~~remaining~~(equivalent ~~proceeds~~to ~~received~~HK$20,000) ~~from~~to the ~~offering~~related ~~will~~company ~~be used~~ for ~~working~~the ~~capital~~provision ~~and~~of ~~future~~general administrative ~~expenses~~services and ~~business~~office ~~development~~premises. It is expected that the Company will not purchase any property in the coming 12 months.

Funds allocated to working capital are intended to be used for hiring additional employees in the coming 12 months. They will be responsible to organize conferences, seminar, information sessions and corporate training for the potential clients. If we do not obtain enough funds from this offering, we may hire only one marketing professional to assist DNAS’s CEO, Ms. Vivian Poon.

Funds allocated to business development are intended to be used to prepare marketing materials for us to locate new business partners. We hope to build up our corporate reputation and align ourselves with additional business partners to provide our event organizing services to them. The funds allocated to administrative expenses are intended to be used for indirect expenses to maintain the daily operation of the business, such as travel expenses, stationary and postage expenses, and utility expenses.

Management plans to temporarily advance capital to maintain normal operations. Management has agreed to provide temporary financing to the Company, but is not contractually obligated to do so. If we fail to raise additional funding, we may have to delay, scale back or discontinue some or all of our operations.

We have no real property and currently operate from office space provided by Easterly Financial Investment Limited. Since May 1, 2008, the Company has paid Easterly a management fee of US$645 for its provision of general administrative services and office premises. The Company will continue to be stationed at Easterly which is controlled by the President, and will continue to pay a monthly management fee of approximately US$645 (equivalent to HK$5,000) to the related company for the provision of general administrative services and office premises. It is expected that the Company will not purchase any property in the coming 12 months.

Results of Operations

The following discussion and analysis provides information that we believe is relevant to an assessment and understanding of our results of operation and financial condition for the fiscal period ended ~~October~~January 31, ~~2009~~2010. The following discussion should be read in conjunction with the Financial Statements and related Notes appearing elsewhere in this Form 10-Q. Our financial statements are stated in US Dollars and are prepared in accordance with generally accepted accounting principals of the United States (“GAAP”).

Results of Operation for DNA Systems, Inc. for the ~~three~~Three Months Ended ~~October~~January 31, ~~2009~~2010 Compared to the three Months Ended ~~October~~January 31, ~~2008~~2009.

Revenue

Revenue. During the three month period ended ~~October~~January 31, ~~2009~~2010, the Company had revenues of $nil as compared to revenues of $nil during the three month period ended ~~October~~January 31, ~~2008~~2009. The fact that the Company did not experience any revenue during the three month period ended ~~October~~January 31, ~~2009~~2010 was attributable to the fact that the Company did not provide any event planning services during the three months ended ~~October~~January 31, ~~2009~~2010.

- 15 -

Expenses

Expenses. During the three month period ended ~~October~~January 31, ~~2009~~2010, the Company had ~~operating~~general and administrative expenses of $229,~~982~~460 as compared to expenses of $86,~~986~~089 during the three month period ended ~~October~~January 31, ~~2008~~2009, an increase of $133,~~996~~371. The increase in expenses experienced by the Company was primarily attributable to increases in ~~operating~~general and administrative expenses, the exploration of new business opportunities, meeting with potential customers, and locating business partners.

Net Loss

~~Net~~Net Loss. The Company had a net loss of $229,~~982~~460 for the three month period ended ~~October~~January 31, ~~2009~~2010 as compared to net loss of $86,~~986~~089 for the three month period ended ~~October~~January 31, ~~2008~~2009, a change of $133,~~996~~371. The increase in net loss experienced by the Company was primarily attributable to increases in expenses.

Results of Operation for DNA Systems, Inc. for the ~~Six~~Nine Months Ended ~~October~~January 31, ~~2009~~2010 Compared to the ~~Six~~Nine Months Ended ~~October~~January 31, ~~2008~~2009.

Revenue

~~Revenue.~~- ~~During~~15 the six month period ended October 31, 2009, the Company had revenues of $nil as compared to revenues of $6,407 during the six month period ended October 31, 2008, a decrease of $6,407. The decrease in revenue experienced by the Company was attributable to the fact that the Company did not provide any event planning services during the six months ended October 31, 2009.-

Revenue. During the nine month period ended January 31, 2010, the Company had revenues of $nil as compared to revenues of $6,407 during the nine month period ended January 31, 2009, a decrease of $6,407. The decrease in revenue experienced by the Company was attributable to the fact that the Company did not provide any event planning services during the nine months ended January 31, 2010.

Expenses

Expenses. During the ~~six~~nine month period ended ~~October~~January 31, ~~2009~~2010, the Company had ~~operating~~general and administrative expenses of $6878,~~911~~371 as compared to expenses of $1622,~~316~~405 during the ~~six~~nine month period ended ~~October~~January 31, ~~2008~~2009, an increase of $5255,~~595~~966. The increase in expenses experienced by the Company was primarily attributable to increases in ~~operating~~general and administrative expenses, the exploration of new business opportunities, meeting with potential customers, and locating business partners.

Net Loss

~~Net~~Net Loss. The Company had a net loss of $6878,~~911~~371 for the ~~six~~nine month period ended ~~October~~January 31, ~~2009~~2010 as compared to net loss of $915,~~909~~998 for the ~~six~~nine month period ended ~~October~~January 31, ~~2008~~2009, a change of $5962,~~002~~373. The increase in net loss experienced by the Company was primarily attributable to increases in expenses.

Liquidity and Capital Resources

As of ~~October~~January 31, ~~2009~~2010, our unaudited balance sheet reflects that we have total assets of $~~681~~1,910 asand ~~compared to~~ total ~~assets~~current liabilities of $~~818~~110,516. asThe ofCompany ~~April~~has ~~30,~~cash ~~2009~~and cash equivalents of $1,910 aand ~~decrease~~accumulated deficit of $~~137~~118,461. AsThe ofCompany ~~October~~does ~~31,~~not ~~2009,~~have ~~our~~sufficient ~~unaudited~~assets ~~balance~~or ~~sheet~~capital ~~reflects~~resources ~~that~~to wepay ~~have~~its ~~total~~on-going ~~liabilities~~expenses ofwhile ~~$100,038,~~it asis ~~compared~~seeking out business opportunities. The Company has no agreement in place with its stockholder or other persons to ~~total~~pay ~~liabilities~~expenses ofon ~~$32~~its behalf,~~495~~ asbut ofit ~~April~~is 30currently anticipated that the Company will rely on loans from the stockholder, ~~2009~~Mr. Wilson Cheung, anto ~~increase~~pay ofany ~~$67,543~~daily operating expenses prior to any fund raising exercise. As ofThe ~~October~~Company ~~31,~~anticipates ~~2009,~~that this arrangement will not change until the Company ~~has~~is anable ~~accumulated~~to ~~deficit~~enough ofgenerate ~~$109,001~~enough revenue to cover the Company’s operating expenses.

The Company does not have sufficient assets or capital resources to pay its on-going expenses while it is seeking out business opportunities. In an effort to raise additional funds, on July 31, 2008, the Company filed a registration statement with the SEC for the purpose of registering 200,000 shares of its common stock. The registration statement was declared effective by the SEC on September 10, 2008. As of October 31, 2009, the Company had not sold any shares pursuant to the registration statement. The Company has no agreement in place with its stockholder or other persons to pay

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expenses on its behalf, but it is currently anticipated that the Company will rely on loans from the stockholder, Mr. Wilson Cheung, to pay any daily operating expenses prior to any fund raising exercise. The Company anticipates that this arrangement will not change until the Company is able to enough generate enough revenue to cover the Company’s operating expenses.

Off Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not Applicable

ITEM 4T.

CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

WeThe ~~maintain~~Securities and Exchange Commission defines the term “disclosure controls and procedures,” asto ~~defined~~mean ina ~~Rules~~Company's ~~13a-15(e)~~controls and ~~15d-15(e)~~other ~~under~~procedures ~~the Securities Exchange Act~~ of ~~1934,~~an asissuer ~~amended (the Exchange Act”),~~ that are designed to ensure that information required to be disclosed ~~by us~~ in the reports wethat ~~file~~it files or ~~submit~~submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the ~~SEC’s~~Securities ~~rules~~ and ~~forms,~~Exchange ~~and~~Commission’s ~~that~~rules ~~such information is accumulated~~ and ~~communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure~~forms. InDisclosure ~~designing and evaluating our disclosure~~ controls and procedures include, ~~management~~without ~~recognized~~limitation, ~~that disclosure~~ controls and procedures, nodesigned ~~matter~~to ~~how~~ensure ~~well~~that ~~conceived~~information ~~and~~required ~~operated,~~to ~~can~~be ~~provide~~disclosed ~~only~~by ~~reasonable~~an ~~assurance~~issuer ofin ~~achieving~~ the ~~desired~~reports ~~control~~that ~~objectives,~~it ~~and~~files weor ~~necessarily~~submits ~~are~~under ~~required to apply our judgment in evaluating~~ the ~~cost-benefit~~Securities ~~relationship of possible disclosure controls and procedures.~~

As- of16 the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported within the time periods specified. Our principal executive officer and principal financial officer also concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievement of these objectives. -

Exchange Act of 1934 is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. The Company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported within the time periods specified. Our chief executive officer and chief financial officer also concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievement of these objectives.

Changes in Internal Control over Financial Reporting

There was no change in the Company's internal control over financial reporting during the quarter ended ~~October~~January 31, ~~2009~~2010, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II – OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS.

The Company is not a party to any pending legal proceedings, and no such proceedings are known to be contemplated. No director, officer or affiliate of the Company, and no owner of record or beneficial owner of more than 5.0% of the securities of the Company, or any associate of any such director, officer or security holder is a party adverse to the Company or has a material interest adverse to the Company in reference to pending litigation.

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officer or security holder is a party adverse to the Company or has a material interest adverse to the Company in reference to pending litigation.

ITEM 1A. RISK FACTORS.

Not Applicable.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None

ITEM 5.

OTHER INFORMATION.

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None.

ITEM 6.

EXHIBITS.

The following exhibits are filed herewith:

3.1

Articles of Incorporation (herein incorporated by reference from Registration Statement on Form S-1 filed with the Securities and Exchange Commission on July 31, 2008).

3.2

Bylaws (herein incorporated by reference from Registration Statement on Form S-1 filed with the Securities and Exchange Commission on July 31, 2008).

10.1

Contract with DNA Financial Systems (HK) Limited signed on April 11, 2008 (herein incorporated by reference from Registration Statement on Form S-1 filed with the Securities and Exchange Commission on July 31, 2008).

31.1*

Certifications pursuant to Rule 13a-15(a) or 15d-15(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*

Certifications pursuant to Rule 13a-15(a) or 15d-15(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*

Certifications pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

* Filed Herewith

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SIGNATURES

In accordance with Section 12 of the Securities Exchange Act of 1934, the registrant caused this ~~registration~~report ~~statement~~for the period ended January 31, 2010 to be signed on its behalf by the undersigned, thereunto duly authorized.

DNA SYSTEMS, INC.

By: /s/ Wilson Cheung

Wilson Cheung, President and Director

Date: ~~December~~March 1516, ~~2009~~2010

In accordance with Section 13 or 15(d) of the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

By: /s/ Wilson Cheung

Wilson Cheung, Principal Executive Officer

Date: ~~December~~March 1516, ~~2009~~2010

By: /s/ Wilson Cheung

Wilson Cheung, Principal Financial Officer

Date: ~~December~~March 1516, ~~2009~~2010

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Filing Compare · DNA Systems, Inc.