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 31, 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)

Room 306, 3^rd Floor, Beautiful Group Tower, 77 Connaught Road, 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).[ ] Yes [ X ] No

As of December 15, 2010, there were 8,700,000 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 accounting principles generally accepted 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 DNA Systems, Inc., for the fiscal year ended April 30, 2010 included in the Company’s Form 10-K filed with the Securities and Exchange Commission on July 29, 2010, and all amendments thereto.

DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2010 AND 2009

INDEX

Page

Condensed balance sheets

Condensed statements of operations and comprehensive loss

Condensed statements of cash flows

Notes to condensed financial statements

6 - 10

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DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED BALANCE SHEETS

AS OF OCTOBER 31, 2010 AND APRIL 30, 2010


	*As of*		*As of*
	*October 31,*		*April 30,*
	*2010*		*2010*
	*(Unaudited)*
	*US$*		*US$*
ASSETS

Current assets
Cash and cash equivalents	1,184		1,852

Total assets	1,184		1,852

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current liabilities
Accrued audit fee	2,322		4,378
Amount due to a stockholder (Note 7)	25,428		117,460

Total liabilities	27,750		121,838

Stockholders’ deficit
Common stock - US$0.001 par value (Note 4)
Authorized 65,000,000 shares; 8,700,000 and 8,500,000
shares issued and outstanding	8,700		8,500
Additional paid in capital	99,800		-
Accumulated deficit during the development stage	(135,292	)	(128,584	)
Accumulated other comprehensive income	226		98

Total stockholders’ deficit	(26,566	)	(119,986	)

Total liabilities and stockholders’ deficit	1,184		1,852

See accompanying notes to condensed financial statements.

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DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2010 AND 2009

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


	*Three months*				*Six months*				*Cumulative*
	*ended October 31,*				*ended October 31,*				*total since*
	*2010*		*2009*		*2010*		*2009*		*inception*
	*(Unaudited)*		*(Unaudited)*		*(Unaudited)*		*(Unaudited)*		*(Unaudited)*
	*US$*		*US$*		*US$*		*US$*		*US$*

Revenue	-		-		-		-		6,407

Expenses
Formation expenses	-		-		-		-		513
General and administrative expenses	4,500		22,982		6,708		68,911		141,186

Loss before income taxes	(4,500	)	(22,982	)	(6,708	)	(68,911	)	(135,292	)
Income taxes (Note 2)	-		-		-		-		-

Net loss	(4,500	)	(22,982	)	(6,708	)	(68,911	)	(135,292	)
Other comprehensive (loss) income
Foreign currency translation adjustment	111		(1	)	128		1,231		226

Total comprehensive loss	(4,389	)	(22,983	)	(6,580	)	(67,680	)	(135,066	)

Net loss per share :
Basic and diluted (Note 3)	(0.00	)	(0.00	)	(0.00	)	(0.01	)	(0.02	)

Weighted average number of shares :
Basic and diluted	8,582,609		8,500,000		8,541,304		8,500,000		8,175,521

See accompanying notes to condensed financial statements.

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DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2010 AND 2009

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


	*Three months*				*Six months*				*Cumulative*
	*ended October 31,*				*ended October 31,*				*total since*
	*2010*		*2009*		*2010*		*2009*		*inception*
	*(Unaudited)*		*(Unaudited)*		*(Unaudited)*		*(Unaudited)*		*(Unaudited)*
	*US$*		*US$*		*US$*		*US$*		*US$*

Cash flows from operating activities
Net loss	(4,500	)	(22,982	)	(6,708	)	(68,911	)	(135,292	)
Change in liability
Other payables	(12,019	)	-			-		-	-
Accrued audit fee	(2,055	)	(364	)	(2,056	)	(1,602	)	2,322

Net cash used in operating activities	(18,574	)	(23,346	)	(8,764	)	(70,513	)	(132,970	)

Cash flows from financing activities
Proceeds from issuance of
common stock	100,000		-		100,000		-		108,500
(Repayment to) advances from a stockholder	(85,115)		23,288		(92,032)		69,145		25,428

Net cash provided by financing activities	14,885		23,288		7,968		69,145		133,928

Effect of foreign exchange rate changes in
cash and cash equivalents	111		(1	)	128		1,231		226

Net change in cash and cash equivalents	(3,578	)	(59	)	(668	)	(137	)	1,184

Cash and cash equivalents, beginning
of period	4,762		740		1,852		818		-

Cash and cash equivalents, end of period	1,184		681		1,184		681		1,184

Supplemental cash flow information :

Cash paid for :
Income taxes	-		-		-		-		-
Interest	-		-		-		-		-

See accompanying notes to condensed financial statements.

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DNA SYSTEMS, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE AND SIX MONTHS ENDED OCTOBER 31, 2010 AND 2009

AND FROM INCEPTION ON OCTOBER 25, 2007 THROUGH OCTOBER 31, 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 31, 2010, the Company had cash and cash equivalents of US$1,184, working capital deficit and stockholders’ deficit of US$26,566 and accumulated deficit during the development stage of US$135,292 respectively. Also, the Company is a development stage company and has not produced significant revenue. 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 stockholder and seeking for profitable business opportunities. However, the Company has no assurance with respect to these plans. The accompanying 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 accounting principles generally accepted in the United States of America (“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, 2010.

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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Cash and cash equivalents

Cash equivalents comprise highly liquid investments with original maturity of three months or less. At October 31, 2010, cash equivalents consisted of bank balance of US$699 and cash on hand of US$485.

Concentration of risk

The Company keeps cash in Hong Kong dollar (“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.

Income taxes

The Company accounts for income tax in accordance with ASC 740 ‘’Income taxes’’ (previously SFAS No. 109), 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 HKD7.7524 as of October 31, 2010.

Use of estimates

The preparation of 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

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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

The FASB issued Accounting Standards Update (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 or materially modified after January 1, 2011; however, earlier application is permitted. The adoption of this ASU update is not expected to have a material effect on the Company’s financial statements.

The FASB issued ASU 2010-06, Improving Disclosures about Fair Value Measurements. ASU 2010-06 amends ASC Topic 820 to require the following additional disclosures regarding fair value measurements: (i) the amounts of transfers between Level 1 and Level 2 of the fair value hierarchy; (ii) reasons for any transfers in or out of Level 3 of the fair value hierarchy and (iii) the inclusion of information about purchases, sales, issuances and settlements in the reconciliation of recurring Level 3 measurements. ASU 2010-06 also amends ASC Topic 820 to clarify existing disclosure requirements, requiring fair value disclosures by class of assets and liabilities rather than by major category and the disclosure of valuation techniques and inputs used to determine the fair value of Level 2 and Level 3 assets and liabilities. With the exception of disclosures relating to purchases, sales, issuances and settlements of recurring Level 3 measurements, ASU 2010-06 was effective for interim and annual reporting periods beginning after December 15, 2009. The disclosure requirements related to purchases, sales, issuances and settlements of recurring Level 3 measurements will be effective for financial statements for annual reporting periods beginning after December 15, 2010. The adoption of ASU 2010-06 is not expected to have a material effect on the Company’s financial statements.

In April, 2010, the FASB issued ASU 2010-13, Compensation-Stock Compensation (Topic 718) - Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades - a consensus of the FASB Emerging Issues Task Force or ASU 2010-13. ASU 2010-13 provides amendments to Topic 718 to clarify that an employee share-based payment award with an exercise price denominated in the currency of a market in which a substantial portion of the entity's equity securities trades should not be considered to contain a condition that is not a market, performance, or service condition. Therefore, an entity would not classify such an award as a liability if it otherwise qualifies as equity. The amendments in this update do not expand the recurring disclosures required by Topic 718. Disclosures currently required under Topic 718 are applicable to a share-based payment award, including the nature and the term of share-based payment arrangements. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning on or after December 15, 2010. The adoption of ASU 2010-13 is not expected to have a material effect on the Company’s financial statements.

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INCOME TAXES

A reconciliation of income taxes at statutory rate in the United States is as follows :-


	*Six months*				*Cumulative*
	*ended October 31,*				*total since*
	*2010*		*2009*		*inception*
	*(Unaudited)*		*(Unaudited)*		*(Unaudited)*
	*US$*		*US$*		*US$*

Loss before income taxes	(6,708	)	(68,911	)	(135,292	)

Expected benefit at statutory rate of 15%	(1,006	)	(10,336	)	(20,294	)
Valuation allowance	1,006		10,336		20,294

Income taxes	-		-		-

In July 2006, the FASB issued ASC 740 (previously Interpretation No. 48 ‘‘Accounting for Uncertainty in Income Taxes”). This interpretation requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not” approach. The management evaluated the Company’s tax position and considered that no additional provision for uncertainty in income taxes is necessary as of October 31, 2010.

Recognized deferred income tax assets is as follows :-


	*As of*		*As of*
	*October 31,*		*April 30,*
	*2010*		*2010*
	*(Unaudited)*
	*US$*		*US$*

Operating losses available for future periods	20,294		19,288
Valuation allowance	(20,294	)	(19,288	)

	-		-

As of October 31, 2010, the Company had incurred operating losses of US$135,292 which, if unutilized, will expire through to 2030. 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 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 totaling US$8,500 were issued for cash.

On September 24, 2010, 200,000 shares of common stock of US$0.001 par value totaling US$200 were issued to 25 investors and considered that no provision for uncertainty for cash of US$100,000.

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STOCK INCENTIVE PLAN

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

COMMITMENTS AND CONTINGENCIES

The Company had no commitments or contingent liabilities as of October 31, 2010.

RELATED PARTY TRANSACTIONS

The majority stockholder, who is also the director, advanced US$25,428 to the Company to finance its working capital as of October 31, 2010. The advance is interest-free, unsecured and repayable on demand.

The Company paid management fee of US$Nil and US$38,664 to a related company for the provision of general administrative services and office premises during the six months ended October 31, 2010 and from inception on October 25, 2007 through October 31, 2010 respectively. The related company is controlled by the Company’s director.

SUBSEQUENT EVENTS

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

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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. Since inception, the Company has generated very limited revenue through its business operations.

Plan of Operations in the next 12 months

During the next twelve months, the Company expects to continue its efforts to seek for any potential business partners to provide event organizing services to them. We hope to build up our corporate reputation and align ourselves with additional business partners to provide our event organizing services to them. The Company does not have sufficient assets or capital resources to pay its on-going expenses while it is seeking out business opportunities. The main stockholder plans to temporarily advance capital to maintain normal operations. The main stockholder has agreed to provide temporary financing to the Company, but is not contractually obligated to do so. Accordingly, there can be no assurance that any additional funds will be available to the Company to allow it to cover its expenses. If the main stockholder ceases to advance capital and we fail to raise additional funding to fund our operating expenses, 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 (“Easterly”). On May 1, 2009, the Company started paying the management fee of US$2,581 to Easterly for its provision of general administrative services and office premises. Easterly is located at Room 2213-14, 22^nd Floor, Jardine House, 1 Connaught Place, Central, Hong Kong. The agreement was terminated on April 30, 2010, and we moved to Room 306, 3^rd Floor, Beautiful Group Tower, 77 Connaught Road, Central, Hong Kong in late May which is provided by Easterly for free. We have no plans to obtain additional office space for the next twelve months until our business is more developed.

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 31, 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

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stated in US Dollars and are prepared in accordance with accounting principles generally accepted in the United States of America.

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

Revenue

Revenue. During the three month period ended October 31, 2010, the Company had no revenue as compared to no revenue during the three month period ended October 31, 2009. No revenue was generated by the Company during the three month period ended October 31, 2010 due to the fact that the Company was unable to locate any prospective business partners.

Expenses

Expenses. During the three month period ended October 31, 2010, the Company had general and administrative expenses of $4,500 as compared to expenses of $22,982 during the three month period ended October 31, 2009, a decrease of $18,482. The decrease in expenses experienced by the Company was primarily attributable to decreases experienced by the Company regarding business operations, the exploration of new business opportunities, meeting with potential customers, and locating business partners.

Net Loss

Net Loss. The Company had a net loss of $4,500 for the three month period ended October 31, 2010 as compared to net loss of $22,982 for the three month period ended October 31, 2009, a change of $18,482. The decrease in net loss experienced by the Company was primarily attributable to decreases experienced by the Company in its expenses.

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

Revenue

Revenue. During the six month period ended October 31, 2010, the Company had no revenue as compared to no revenue during the six month period ended October 31, 2009. No revenue was generated by the Company during the six month period ended October 31, 2010 due to the fact that the Company was unable to locate any prospective business partners..

Expenses

Expenses. During the six month period ended October 31, 2010, the Company had general and administrative expenses of $6,708 as compared to expenses of $68,911 during the six month period ended October 31, 2009, a decrease of $62,203. The decrease in expenses experienced by the Company was primarily attributable to decreases experienced by the Company regarding business operations, the exploration of new business opportunities, meeting with potential customers, and locating business partners.

Net Loss

Net Loss. The Company had a net loss of $6,708 for the six month period ended October 31, 2010 as compared to net loss of $68,911 for the six month period ended October 31, 2009, a change of $62,203. The decrease in net loss experienced by the Company was primarily attributable to decreases experienced by the Company in its expenses.

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Liquidity and Capital Resources

As of October 31, 2010, our unaudited balance sheet reflects that we have total assets of $1,184, as compared to total assets of $1,852 as of April 30, 2010, a decrease of $668. As of October 31, 2010, our unaudited balance sheet reflects that we have total liabilities of $27,750, as compared to total liabilities of $121,838 as of April 30, 2010, a decrease of $94,088. As of October 31, 2010, the Company has an accumulated deficit of $135,292.

The Company does not have sufficient assets or capital resources to pay its on-going expenses while it is seeking out business opportunities. The Company has no agreement in place with its shareholder or other persons to pay expenses on its behalf, but it is currently anticipated that the Company will rely on loans from the shareholder, 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 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 4.

CONTROLS AND PROCEDURES.

Disclosure Controls and Procedures

The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean the company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities 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 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 with 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.

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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 31, 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.

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.

(REMOVED AND RESERVED).

ITEM 5.

OTHER INFORMATION.

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.

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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

SIGNATURES

In accordance with Section 12 of the Securities Exchange Act of 1934, the registrant caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

DNA SYSTEMS, INC.

By: /s/ Wilson Cheung, President, Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer and Director

Date: December 15, 2010

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DNA Systems, Inc. 10-Q