FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Quarterly Report Under Section 13 or 15(d)

Of the Securities Exchange Act of 1934

For Quarter Ended ~~March~~September 3130, 2015

Commission File Number 33-16531-D

INTERNATIONAL AUTOMATED SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

UTAH 87-0447580

(State or other jurisdiction of (IRS Employer

incorporation or organization) Identification No.)

552730 ~~North~~W ~~Merchant~~4000 ~~Street 608~~S

~~American Fork~~Oasis, Utah ~~84003~~84624

(Address of principal executive offices)

Registrant's telephone number

including area code (801)~~423~~ 372-~~8132~~4383

~~Not~~55 ~~Applicable Former~~North ~~Address,~~Merchant ifStreet ~~changed since last report~~608

American Fork, Utah 84003

Former Address, if changed since last report

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 such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.Yes

No x

As of ~~October~~January 127, ~~2015~~2017, registrant had 6779,~~394~~156,~~305~~344 shares of common stock, no par value per share, issued and outstanding; registrant also had 5,700,000 shares of preferred stock, no par value issued and outstanding.

5,700,000 shares of preferred stock issued and outstanding.

FORWARD-LOOKING STATEMENTS

This report references to “International Automated Systems,” the “Company,” “we,” “us,” and “our” refer to International Automated Systems, Inc.

In this report on Form 10-Q contains certain forward-looking statements and for this purpose any statements contained in this quarterly report that are statements of historical fact are intended to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Without limiting the foregoing words the meaning of the foregoing words such as “may”, “will”, “expect”, “believe”, “anticipate”, ”estimate”, or “continue”, or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties and actual results may differ materially depending on a variety of factors many of which are not within our control. These factors include but are not limited to economic conditions generally and in the markets in which we may participate, competition within our chosen industry, technological advances and failure by us to successfully develop business relationships.

We caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made, are based on certain assumptions and expectations which may or may not be valid or actually occur and which involve various risks and uncertainties.

Unless otherwise required by applicable law, we do not undertake and specifically disclaim any obligations to update any forward-looking statement to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement.

PART I

ITEM I - FINANCIAL STATEMENTS

The condensed financial statements included herein have been prepared by International Automated Systems, Inc. (the "Company" or the "Registrant"), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading.

In the opinion of the Company, all adjustments, consisting of only normal recurring adjustments, necessary to present fairly the financial position of the Company as of ~~March~~September 3130, 2015, and the results of its operations from June 30, ~~2014~~2015, through ~~March~~September 3130, 2015 have been made. The results of its operations for such interim period isare not necessarily indicative of the results to be expected for the entire year.

INTERNATIONAL AUTOMATED SYSTEMS, INC
Balance Sheets
ASSETS
			March 31,			June 30,
			September 30,				June 30,
			2015			~~2014~~	2015
CURRENT ASSETS			(~~unaudited~~Unaudited)
	Cash and cash equivalents		$	4794,~~423~~531		$	~~26,108~~$	16,822
	Accounts receivable			-			-
		Total Current Assets		794,531				16,822
		Total Current Assets		4,423			26,108
PROPERTY AND EQUIPMENT, net				283,685				283,685
PROPERTY AND EQUIPMENT, net				279,315			280,832
		TOTAL ASSETS	$	1,078,216			$	300,507
		TOTAL ASSETS	$	283,738		$	306,940
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
CURRENT LIABILITIES
	Accounts payable		$	8,249			$	27,794
	Accounts payable		$	5,904		$	2,677
	Related party payable			153,517				163,668
	Related party payable			198,293			147,196
	Deferred revenue			48,000				23,000
		Total Current Liabilities		~~204~~209,~~197~~766			~~149,873~~	214,462
Long-term notes payable				-			-	-
		TOTAL LIABILITIES		~~204~~209,~~197~~766			~~149,873~~	214,462
				199,774
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY
	Preferred stock, no par value; 22,000,000 shares authorized,
	Preferred stock, no par value; 22,000,000 shares authorized,
		5,700,000 and 5,700,000 shares issued and outstanding, respectively			470,264			470,264
		5,700,000 and 5,700,000 shares issued and outstanding, respectively		470,264			470,264
	Common stock, no par value, 225,000,000 shares authorized,
	Common stock, no par value, 225,000,000 shares authorized,
		67,608,221 and 64,894,305 issued and outstanding, respectively		40,450,775				39,650,775
		64,894,305 and 64,894,305 issued and outstanding, respectively		39,650,775			39,650,775
	Accumulated deficit			(40,052,589)				(40,034,994)
	Accumulated deficit			(40,041,498)			(39,963,972)
		Total Stockholders' Equity		868,450				86,045
		Total Stockholders' Equity		79,541			157,067
		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	1,078,216			$	300,507
		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	283,738		$	306,940
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

INTERNATIONAL AUTOMATED SYSTEMS, INC
Statements of Operations
(unaudited)
(Unaudited)
			~~For the Three Months Ended~~	For the Three Months Ended			~~For the Nine Months Ended~~
			March 31,				March 31,
				September 30,
			~~2015~~	2015	~~2014~~	2014	~~2015~~		~~2014~~
REVENUES			$	-	$	-	$	-	$	-
OPERATING EXPENSES
	Research and development			21,~~137~~228		422,~~210~~254		~~5,242~~		~~135,064~~
	Depreciation expense			~~506~~-		~~10,778~~506		~~1,517~~		~~32,333~~
	General and administrative			3416,~~519~~367		~~199~~27,~~450~~327		~~70,767~~		~~956,393~~
		Total Operating Expenses		3717,~~162~~595		~~252~~30,~~438~~087		~~77,526~~		~~1,123,790~~
NET LOSS			$	(37,162)	$	(252,438)	$	(77,526)	$	(1,123,790)
OTHER INCOME
BASIC AND DILUTED LOSS PER SHARE			$	(0.00)	$	(0.00)	$	(0.00)	$	(0.02)
	Interest income			-
WEIGHTED AVERAGE NUMBER
		Net Operating Loss		(17,595)		(30,087)
OF SHARES OUTSTANDING				64,894,305		64,894,305		64,894,305		64,894,305
NET LOSS			$	(17,595)	$	(30,087)
The accompanying notes are an integral part of these financial statements
BASIC AND DILUTED LOSS PER SHARE			$	(0.00)	$	(0.00)
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING				67,509,431		64,894,305
The accompanying notes are an integral part of these financial statements

INTERNATIONAL AUTOMATED SYSTEMS, INC
Statements of Cash Flows
(Unaudited)
				For the Nine Months Ended
				For the Three Months Ended
				March 31,
				September 30,
				2015		~~2014~~	2014
CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss			$	(7717,~~526~~595)	$	~~(1,123,790)~~$	(30,087)
	Adjustments to reconcile net loss to net
		cash from operating activities:
		Depreciation and amortization			~~1,517~~-		~~32,333~~	506
	Changes in current assets and liabilities:
		(Increase) / decrease in accounts receivable			-		668,258
		(Increase) / decrease in common stock receivable - related party			-			-
		Increase / (decrease) in accounts payable			3(19,~~227~~546)		~~77,669~~	6,351
			Net cash used in operating activities		(72,782)		(345,530)
		Increase/ (decrease) in accrued liabilities			25,000			-
Cash flows used in investing activities
			Net cash used in operating activities		(12,141)			(23,230)
	Purchase of property and equipment				-		-
Cash flows used in investing activities
			Net cash used in (provided by) investing activities		-		-
	Purchase of property and equipment				-			-
Cash flows provided by financing activities
			Net cash used in (provided by) investing activities		-			-
	Payments on cash advances from related party				51,097		-
Cash flows provided by financing activities
			Net cash provided by financing activities		51,097		-
	Payments/(Advances) on cash advances from related party			(10,151)				7,097
Net change in cash					(21,685)		(345,530)
	Sale of common stock				800,000			-
Cash at beginning of period					26,108		402,656
			Net cash provided by financing activities		789,849			7,097
Cash at end of period				$	4,423	$	57,126
Net change in cash					777,708			(16,133)
Supplemental cash flow information
Cash at beginning of period					16,822			26,108
	Cash payments for interest			$	-	$	-
				$
	Cash payments for income taxes				-		-
Cash at end of period					794,531		$	9,975
Non Cash Financing Activities				$	-	$	-
Supplemental cash flow information
The accompanying notes are an integral part of these financial statements.
	Cash payments for interest			$	-		$	-
	Cash payments for income taxes				-			-
	Cash payments for common stock				800,000			-
Non Cash Financing Activities				$	-		$	-
The accompanying notes are an integral part of these financial statements.

NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization - International Automated Systems, Inc. (the “Company” or “IAS”) was incorporated in the State of Utah on September 26, 1986. The Company’s activities to date have consisted of developing a business plan, raising capital through the issuance of debt and equity instruments, developing power generation equipment and obtaining the rights to certain technology related to electronic security and communication equipment.

Use of Estimates - The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Basis of Presentation / ~~Going Concern~~ Liquidity - The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As of ~~March~~September 3130, 2015, the Company had $4794,~~423~~531 of available cash and a working capital ~~deficit~~ of $~~199~~660,~~774~~865. For the nine months ended March 31, 2015 and 2014, the Company had no revenue, no operating income and used net cash for operating activities of $72,782 and $345,530, respectively. As of March 31, 2015 the Company’s losses accumulated from inception totaled $40,041,498. These factors, among others, indicate that the Company may be unable to continue as a going concern for the next twelve months. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to obtain additional financing as may be required, and ultimately to attain sufficient cash flow from operations to meet its obligations on a timely basis. Management is in the process of negotiating various sales agreements and believes these sales may generate sufficient cash flow for the Company to continue as a going concern. If the Company is unsuccessful in these efforts and does not attain sufficient sales to permit profitable operations or if it cannot obtain sufficient additional financing, it may be required to substantially curtail or terminate its operations.

~~Concentration~~For ~~Risks~~the ~~- The~~three ~~Federal~~months ~~Deposit~~ended ~~Insurance~~September ~~Corporation~~30, ~~(FDIC)~~2015 ~~insures~~and ~~cash~~2014, ~~deposits~~the inCompany ~~most~~had ~~general~~no ~~bank~~revenue, ~~accounts~~no ~~for~~operating upincome toand ~~$250,000~~used ~~per~~net ~~institution. The~~cash ~~Company~~for ~~had~~operating noactivities ~~cash~~of ~~deposits~~$52,141 ~~that~~and ~~exceeded~~$23,230, ~~insured~~respectively. ~~amounts~~As as of ~~March~~September 3130, 2015, ~~and~~the ~~June~~Company’s ~~30,~~losses ~~2014,~~accumulated ~~respectively~~from inception totaled $40,052,589.

Concentration Risks - The Federal Deposit Insurance Corporation (FDIC) insures cash deposits in most general bank accounts for up to $250,000 per institution. The Company had cash deposits that exceeded insured amounts of $544,531 and $-0- as of September 30, 2015 and June 30, 2015, respectively.

Cash Equivalents - The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Fair Value of Financial Instruments - The Company’s financial instruments consist of cash, ~~and~~ cash equivalents, ~~payables,~~a ~~and~~related ~~notes~~party ~~payable~~receivable for common stock purchased and payables. The carrying amount of cash and cash equivalents and payables approximates fair value because of the short-term nature of these items. ~~The carrying amount of the notes payable approximates fair value as the individual borrowings bear interest at rates that approximate market interest rates for similar debt instruments.~~

Impairment - The Company records impairment losses on property, ~~and~~ equipment and patents when indicators of impairment are present and undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amount. Furthermore, the Company makes periodic assessments about each patent and the related technology to determine if it plans to continue to pursue the technology and if the patent has value.

~~Research~~As ~~and Development - Research and development has been the principal function~~ of ~~the~~September ~~Company.~~30, ~~Research~~2015, ~~and development costs are expensed as incurred. Expenses in~~ the ~~accompanying financial statements include certain costs which are directly associated with the~~ Company’s ~~research~~has ~~and~~no ~~development~~unimpaired ofpatents ~~the Solar Power Plant technology, Steam Turbine technology, Automated Fingerprint Identification Machine technology, Digital Wave Modulation Technology~~ and ~~other various projects. These costs, which consist primarily of monies paid for consulting expenses, materials and supplies and compensation costs amounted to $5,242 and $135,064 for~~ the ~~nine~~equipment ~~months~~is ~~ended~~fully ~~March 31, 2015 and 2014, respectively~~depreciated.

~~Advertising~~Research ~~Costs~~and Development - ~~Advertising~~Research and development has been the principal function of the Company. Research and development costs are expensed ~~when~~as incurred. Expenses ~~Advertising~~in ~~expense~~the ~~was~~accompanying ~~$258~~financial statements include certain costs which are directly associated with the Company’s research and ~~$7,648~~development ~~for~~of the ~~nine~~Solar ~~months~~Power ~~ended~~Plant ~~March~~technology, 31Steam Turbine technology, ~~2015~~Automated ~~and~~Fingerprint ~~2014~~Identification Machine technology, ~~respectively~~Digital Wave Modulation Technology and other various projects. These costs, which consist primarily of monies paid for consulting expenses, materials and supplies and

~~Property~~compensation ~~and~~costs ~~Equipment~~amounted -to ~~Property~~$1,228 and ~~equipment~~$2,254 ~~are recorded at cost and are depreciated using the straight-line method based on the expected useful lives of the assets which range from five to ten years. Depreciation expense~~ for the ~~nine~~three months ended ~~March~~September 3130, 2015, and 2014, ~~was $1,517 and $32,333,~~ respectively. ~~The major classes of assets are as follows:~~

7Advertising Costs - Advertising costs are expensed when incurred. Advertising expense was $-0- and $202 for the three months ended September 30, 2015 and 2014, respectively.

~~Income~~Property ~~Taxes~~and Equipment - ~~The~~Property ~~Company~~and ~~recognizes~~equipment ~~the~~are ~~amount~~recorded ofat ~~income~~cost ~~taxes payable or refundable for the current year~~ and ~~recognizes~~are ~~deferred~~depreciated ~~tax~~using ~~assets and liabilities for operating loss carryforwards and for~~ the ~~future~~straight-line ~~tax~~method ~~consequences~~based ~~attributable~~on ~~to differences between~~ the ~~financial~~expected ~~statement~~useful ~~amounts~~lives of ~~certain~~the ~~assets~~asset ~~and~~which ~~liabilities~~was ~~and~~five ~~their respective tax basis~~years. ~~Deferred~~Depreciation ~~tax~~expense ~~assets~~for ~~and~~the ~~deferred~~three ~~liabilities~~months ~~are~~ended ~~measured~~September ~~using~~30, ~~enacted~~2015 ~~tax~~and ~~rates~~2014, ~~expected~~was to$-0- ~~apply~~and to$506, ~~taxable~~respectively. ~~income~~The inmajor ~~the~~classes ~~years~~of ~~those temporary differences are expected to be recovered or settled. Deferred tax~~ assets are ~~reduced by a valuation allowance to the extent that uncertainty exists~~ as ~~to whether the deferred tax assets will ultimately be realized.~~follows:

Condensed Financial Statements - The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at March 31, 2015, and 2014, and for all periods presented herein, have been made.


	September 30, 2015	June 30, 2015

	$ 283,685 528 -0- -0- 284,213 (528) $ 283,685	$ 283,685 528 -0- -0- 284,213 (528) $ 283,685

~~Certain~~Income ~~information~~Taxes - The Company recognizes the amount of income taxes payable or refundable for the current year and ~~footnote~~recognizes ~~disclosures~~deferred ~~normally~~tax ~~included~~assets inand ~~financial~~liabilities ~~statements~~for ~~prepared~~operating inloss ~~accordance~~carryforwards ~~with~~and ~~accounting~~for ~~principles~~the ~~generally~~future ~~accepted~~tax inconsequences attributable to differences between the ~~United~~financial ~~States~~statement amounts of ~~America~~certain ~~have~~assets ~~been~~and ~~condensed~~liabilities orand ~~omitted. It~~their isrespective ~~suggested~~tax ~~that~~basis. ~~these~~Deferred ~~condensed~~tax ~~financial~~assets ~~statements~~and bedeferred ~~read~~liabilities inare ~~conjunction~~measured ~~with~~using ~~the~~enacted ~~financial~~tax ~~statements~~rates ~~and~~expected ~~notes~~to ~~thereto~~apply ~~included~~to taxable income in the ~~Company’s~~years ~~June~~those ~~30,~~temporary ~~2015~~differences ~~audited~~are ~~financial~~expected ~~statements~~to be recovered or settled. ~~The~~ ~~results~~Deferred oftax ~~operations~~assets ~~for~~are reduced by a valuation allowance to the ~~three~~extent ~~month~~that ~~and~~uncertainty exists as to whether the ~~nine~~deferred ~~month~~tax ~~periods~~assets ~~ended~~will ~~March~~ultimately ~~31,~~be ~~2015,~~realized. The Company’s policy for recording interest and ~~2014,~~penalties ~~are~~associated ~~not~~with ~~necessarily~~taxes ~~indicative~~is ofto ~~the~~recognize ~~operating~~it ~~results~~as ~~for~~a ~~the~~component ~~full~~of ~~year.~~income tax

~~Recent~~As ~~Accounting~~of ~~Pronouncements~~September ~~– The Company has reviewed all recently issued~~30, ~~but~~2015 ~~not~~and ~~yet~~June ~~adopted~~30, ~~accounting standards in order to determine their effects~~2015, ifthere ~~any,~~were onno ~~its~~deferred ~~results~~tax ofassets ~~operations, financial position~~ or ~~cash flows~~liabilities. ~~Based on that review, the Company believes that none of these pronouncements will have a significant effect on its financial statements.~~

Condensed Financial Statements - The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at September 30, 2015 and June 30, 2015, results of operations, and cash flows at September 30, 2015 and 2014, have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s June 30, 2015, audited financial statements. The results of operations for the periods ended September 30, 2015 and 2014 are not necessarily indicative of the operating results for the full year.

Recent Accounting Pronouncements – The Company has reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position or cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its financial statements.

NOTE 2 – BASIC AND DILUTED NET LOSS PER COMMON SHARE

Basic earnings/loss per share is computed by dividing the net income or loss applicable to common shares by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing the net income or loss by the sum of the weighted average number of common shares plus the weighted average common stock equivalents which would arise from the exercise of outstanding stock options, issuance of stock held in trust and conversion of Series B Preferred Shares into options to purchase shares of common stock, using the treasury stock method and the average market price per share during the period. There was no diluted earnings per share reported as it would have been anti-dilutive.

NOTE 3 – RELATED PARTY TRANSACTIONS

The Company owes $~~198~~153,~~293~~517 and $~~147~~163,~~196~~668 to ~~its~~officers ~~president~~of the Company for expenses paid on the Company’s behalf as of ~~March~~September 3130, 2015, and June 30, ~~2014~~2015, respectively. The liability is non-interest bearing, unsecured and due upon demand.

A shareholder of the Company has a payable due for common stock issued by the Company. The common stock was sold based upon the low price reported for common stock transaction on the date of sale. The receivable was satisfied via cash payments during November 2015.

NOTE 4 – STOCK BASED COMPENSATION

Options and Warrants

The Company’s board of directors authorized the Company to enter into an agreement dated May 14, 2004, and amended October 13, 2004, with the Company’s president, in which the Company acquired patents, patents pending, designs and contracts related to certain technology (developed by the president) from the president. The direct costs of developing and obtaining the acquired patents, patents pending, designs and contracts were paid and capitalized by the Company. No additional value has been assigned to these patents as a result of them being acquired from the president.

As consideration, the Company authorized and issued warrants to purchase 100,000,000 shares of common stock to the president and agreed to pay the president royalties in the future equal to 10% of future sales proceeds from the technology. The warrants, which were considered stock-based compensation for services to be rendered, had no intrinsic value on the grant date. The fair value of the warrants was $37,136,781, calculated on the grant date using the Black-Scholes model. The following assumptions were used for this grant: Average risk-free interest rate of 4.79%; expected lives of 10 years; expected dividend yield of zero percent; and expected volatility of 138.76%. On July 1, 2006, the Company began recognizing stock-based compensation expense over the graded exercisability period of the options using the straight-line basis over the requisite service period for each separately exercisability portion of the award as if the award was, in-substance, multiple awards.

The agreement contains a standard anti-dilution clause that gives the president the right to purchase the same number of shares of common stock, given reclassification, reorganization or change by a stockholder, as were purchasable prior to any such changes, at a total price equal to that payable upon the exercise of the options. Appropriate adjustments shall be made to the exercise price so the aggregate purchase price of the shares will remain the same. The warrants have an exercise price of $0.40 per share and are all exercisable as of ~~March~~September 3130, 2015.

The following table summarizes the stock option and warrant activity as of and for the ~~nine month period ended March 31, 2015, and the~~ years ended ~~June~~September 30, ~~2014, and 2013~~2015:

36,920,000


Detail	Options Warrants	Wtd Avg Exercise Prices	Wtd. Avg. Remaining Life in Years	Aggregate Intrinsic Value
Outstanding at June 30, 2013	92,300,000	$ 0.40	22.5	$ 36,920,000
Expired	-	-
Exercised	-	-
Outstanding at June 30, 2014	92,300,000	$ 0.40	21.5	$ 36,920,000
Expired	-	-
Exercised	-	-
Outstanding at June 30, 2015	92,300,000	$ 0.40	20.5	$ 36,920,000
Exercisable at June 30, 2015	92,300,000	$ 0.40	20.5	$ 36,920,000
Expired	-	-
Exercised	-	-
Outstanding at September 30, 2015	92,300,000	$ 0.40	20.25	$ 36,920,000
Exerciseable at September 30, 2015	92,300,000	$ 0.40	20.25	$ 36,920,000

NOTE 5 – PREFERRED STOCK

Series A Preferred Stock

The Series A Preferred Stock has equal dividend rights to the common shares, is not convertible into common shares, has no cumulative dividend requirements and has liquidation preferences equivalent to the common shares. 3,400,000 ~~shares~~ of the Series A Preferred Stock are entitled to the voting rights of 10 common shares, and 2,000,000 ~~shares~~ of the Series A Preferred Stock are entitled to the voting rights of 100 common shares. At ~~March~~September 3130, 2015, and June 30, ~~2014~~2015, there were 5,400,000 Series A Preferred Stock issued and outstanding, respectively.

Series B Preferred Stock

The Series B Preferred Stock has equal dividend rights to the common shares, has no cumulative dividend requirements, has liquidation preferences equivalent to the common shares and each preferred share is entitled to the voting rights of 10 common shares. Each share is convertible into options to purchase two shares of common stock at $3.00 per share, exercisable immediately and the options expire ten years from the date the preferred stock is ~~issued~~exchanged. At ~~March~~September 3130, 2015, and June 30, ~~2014~~2015, there were 300,000, series B Preferred shares issued and outstanding.

The Company’s policy for recording interest and penalties associated with taxes is to recognize it as a component of income tax

NOTE 6 – SUBSEQUENT EVENTS

In accordance with ASC 855, the Company evaluated subsequent events through the date these financial statements. The ~~were~~only ~~issued.~~subsequent ~~There~~material ~~were~~subsequent noevent included the sale of an additional ~~material~~11,646,912 ~~subsequent~~shares ~~events~~of ~~that~~common ~~required~~stock ~~recognition~~to ora related party (shareholder) for an additional ~~disclosure~~receivable inof ~~these~~$3,037,839, ~~financial~~increasing ~~statements~~the existing note receivable outstanding at September 30, 2016 to $3,077,839. The Company received 3,077,839 from the related party on November 24, 2015.

10ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

~~ITEM~~CONDITION ~~2. - MANAGEMENT’S DISCUSSION~~ AND ~~ANALYSIS~~RESULTS OF ~~FINANCIAL~~OPERATIONS

~~CONDITION~~Liquidity ~~AND~~and ~~RESULTS~~Capital OFResources. As ~~OPERATIONS~~of September 30, 2015, Registrant had cash of $794,531. Cash increased from the June 30, 2015, balance due to the proceeds (amounting to $800,000) from a placement of 2,500,000 shares of restricted common stock on August 13, 2015. Funds expended on the technology development, as well as products of the declined during the quarter as the Company focused management efforts to finalize a license for the Solar Lens system with two private companies.

~~Liquidity~~Registrant ~~and~~has ~~Capital~~total ~~Resources~~liabilities at September 30, 2015, of $209,766 compared to the liabilities at June 30, 2015, of $214,462. The shareholders' equity at September 30, 2015, increased to $868,450 from the June 30, 2015 balance of $86,045. (The increase was generated primarily from the proceeds received through the placement of common stock during August of 2015. During the quarter the June 30, 2015 obligation to a related party of $163,668 decreased to $153,517 as of September 30, 2015.

~~The~~Registrant ~~results~~had ~~discussed~~cash ~~below~~and ~~are~~total ~~for~~current ~~the~~assets ~~three~~of $794,531, had current liabilities of $209,766 and ~~nine~~had ~~month~~shareholders' ~~periods~~equity ~~ended~~of ~~March~~$868,450 31as of September 30, 2015, compared to cash of $16,822, current liabilities of $214,462 and ~~March~~stockholders’ equity 31of $86,045 ~~2014~~as of June 30, ~~respectively~~2015. As of September 30, 2015, the ratio of current assets to current liabilities (current ratio) was approximately 3.8.

~~Revenues~~Results of Operation. For the quarters ended September 30, 2015 and 2014, Registrant had no revenues. For the quarter ended September 30, 2015, Registrant had expenses of $17,595 compared to expenses of $30,087 for the September 30, 2014 period a year earlier. The lack of revenues reflects the focus on licensing the Solar Lens technology with an expectation of generating royalty income.

For the ~~three~~quarter ~~month~~ended ~~and~~September 30, 2015, the ~~nine~~Registrant ~~month~~incurred ~~periods~~a ~~ended~~net ~~March~~loss 31of ($17,595) ~~2015~~compared to a net loss of ($30,087) for the same period a year earlier. The decrease in net loss is attributable primarily to the reduction in research and ~~2014,~~development ~~there~~expenses. Additionally all assets were nosold ~~revenues~~or fully depreciated so starting in fiscal year end June 30, 2016, the depreciation expense went to $-0-. Operating expenses have changed to negotiating licensing arrangements for the developed Solar Lens technology. Finally, for the past year the Company has incurred professional fees for accounting and legal services required as management has been focused upon bringing the public filings of the Company current.

~~Research~~The first quarter 2015 basic and ~~Development~~diluted ~~Expenses~~loss per share was $(0.00) which was consistent with the loss per share of (0.00) reported in the first quarter of 2014.

~~During~~The ~~the~~financial ~~three~~statements ~~months~~do ~~ended~~not ~~March~~include ~~31,~~any ~~2015,~~adjustments ~~research~~relating ~~and~~to ~~development~~the ~~expenses~~recoverability ~~declined~~and ~~from~~classification ~~$49,478~~of torecorded ~~$851.~~asset ~~For~~amounts or the ~~nine~~amount ~~months~~and ~~ending~~classification onof ~~March~~liabilities ~~31,~~that ~~2015~~might ~~and~~be ~~2014,~~necessary ~~research~~should ~~and~~the ~~development~~Company ~~expenses~~be ~~declined~~unable ~~from~~to ~~$92,854~~continue toas ~~$3,105~~a going concern.

~~General~~Management is pursuing various sales and ~~Administrative~~licensing ~~Expenses~~agreements, will receive $3, 077,838.83 from placement of common stock; and is hopeful that the stock placement and the licensing agreements will generate sufficient cash flow for the Company to remain a going concern.

~~During~~Company’s Business. The products which the ~~three~~Company ~~months~~has ~~ended~~under ~~March~~development ~~31,~~are ~~2015,~~described ~~and~~in ~~2014,~~its ~~respectively,~~report ~~the~~on ~~general~~Form ~~and~~10-K, ~~administrative~~which ~~expenses~~was ~~declined~~filed ~~from~~on ~~$199,450~~or toabout ~~$34~~March 3,~~519~~ 2016. ~~During~~Generally speaking the ~~nine~~Company ~~months~~anticipates ~~ended~~completing ~~March~~the ~~31,~~license ~~2015~~agreement allowing licensees to develop, manufacture and ~~2014,~~sell products based upon the ~~general~~Alternate Solar Lens technology. Management and ~~administrative~~the ~~expenses~~board ~~declined~~of ~~from~~directors ~~$956,393~~plan to ~~$70~~consider options for researching and developing products based upon various products,~~767. The~~ ~~decline~~for ~~reflected~~which athe ~~reduction~~Company inhas ~~personnel.~~developed core technologies, including opportunities for products based upon:

~~Net Loss~~1.

~~For~~Alternate ~~the~~Solar ~~three~~Energy ~~months~~Thermal ~~ended~~Lens ~~March 31, 2015, our net loss was $37,162 compared to a net loss of $252,438 for the three months ended March 31, 2014. The decrease was a result of reductions in expenses incurred.~~ Technology;

~~For the nine months ended March 31, 2015, our net loss was $77,526 compared to a net loss of $1,123,790~~2. ~~The decline in the net loss represented the combined reductions in expenses incurred.~~

~~Financial~~Bladeless ~~Condition,~~Propulsion ~~Liquidity~~Steam ~~and Capital Resources~~Turbine;

~~During the nine months ended March 31, 2015, the Company used cash in operations of $71,782 compared to $345,530 used during the comparable period of 2014~~3. The decrease in cash used was due to reduced expenditures for research and development costs and general and administrative costs net of the cash flow in 2014 arising from the collection of $668,258 of accounts receivable and the increase of $77,669 of accounts payable during the nine months ended March 31, 2014.

~~There~~Automated ~~was~~Fingerprint noIdentification ~~net cash used or provided by investing activities during either the nine months ended March 31, 2015 or 2014.~~Machine;

~~Net cash provided by financing activities during the nine months ended March 31, 2015 amounted to $51,097 representing payments made on the Company’s behalf by a related party~~4. ~~During the nine months ended March 31, 2014, there was no cash provided by financing activities.~~

AtDigital ~~March~~Wave 31, 2015, the Company had cash on hand of $4,423, which is not sufficient to meet our operating needs for the next twelve months. Because we are engaged in the research and development of our products and aren’t receiving material cash proceeds from our sales, we will need to continue to raise additional capital on an ongoing basis. We anticipate that we may need to secure additional sources of capital to support our operating and development costs and to grow the Company.Modulation;

~~At March 31, 2015, our current assets were $4,423 and our current liabilities were $204,197 resulting in a working capital deficit of $199,774~~5. ~~At June 30, 2014, the current assets were $26,108 and our current liabilities were $149,873 resulting in a working capital deficit of $123,765~~

~~Company’s~~Automatic ~~Business~~Self-Service Checkout System;

The ~~products which the~~ Company ~~has under development were described in its report on Form 10-K which was filed on or about July 16, 2015. Generally speaking the Company~~ is ~~continuing to develop these products. The Company is~~ incorporating the report on Form 10-K filed on ~~July~~March 1611, ~~2015~~2016, into this report by reference.

Summary of Technologies Being Developed. The Company has an Alternate Solar Energy Thermal ~~System~~Lens (“~~System~~Lens”) which ~~can~~has been the subject of licensing efforts with two private companies. The lens may also be ~~used~~incorporated with the Company’s bladeless turbine as a system to generate power. The system ~~captures~~would focus and efficiently capture the solar energy onto a receiver ~~and~~which ~~the~~could ~~energy~~then isbe used to propel the bladeless turbine. The System may use multiple concentrators to supply a single turbine.

The Company has an Automated Fingerprint Identification Machine (“AFIM”), which is designed to have the capability of verifying the identity of individuals. The AFIM iswill be able to identify a person utilizing information previously stored. The Company believes that it has the ability to connect a series of AFIM’s to a single personal computer. The person whose identity will be verified ashas the AFIM ~~reads~~read ~~the~~their fingerprint. The ~~fingerprint~~person whose identify is being verified has ~~previously~~the ~~been~~AFIM read ~~and~~the fingerprint which is then stored ~~within~~in ~~the~~a ~~system~~storage medium and is available for subsequent positive identification of individuals via their fingerprint.

The Company purports that it has developed technology, ~~referred~~and theoretical application that would transmit information and data using different electromagnetic wave patterns (radio waves). The different patterns are based upon configurations and timing of the radio waves. The Company refers to this technology as the Digital Wave Modulation (“DWM”). The Company believes that this technology may increase the amount of information which ~~may~~can be transmitted. Toduring ~~date~~discrete ~~the~~time periods (increased band-width density). The commercial feasibility of this technology ishas ~~uncertain~~not been demonstrated. The Company plans to continue investigating the technology’s feasibility. There is great competition in the communication, data transfer and storage systems. There are risks ~~related~~arising tofrom ~~development~~the ofcosts ~~commercially~~required ~~viable~~to ~~products~~develop ascommercially ~~well~~viable ~~as an uncertain demand~~products. The Company’s ~~development~~research and commercialization is limited by funds available for development. To be successful the Company must have necessary skilled personnel marketing capabilities and strategies for each product developed or under development.

The Company has patented a bladeless propulsion steam turbine. It uses the expansion of steam to ~~be propulsion to~~ create a rotational force. The Company believes that its turbine is at least as effective as other turbines, is smaller in size, requires less maintenance, is less expensive to manufacture, is mass producible, and does not require cooling towers. It is more mobile and water conserving than other turbines. The Company believes that its turbine will be marketable to the utility power industry, hydrogen production operators, and transportation support. The Company may not be able to ~~successfully~~ manufacture because of lack of sufficient funding, government interference and regulation, lack of acceptance in the industry, and many other conditions not under the Company’s control.

The Company has developed an Automatic Self-Service Check-~~out~~Out System. ~~The check-out system is referred to as the “Self-Check System.”~~ In retail operations the Self-Check-Out System ~~allows~~would allow customers to personally check out and pay for the items to be purchased. A scanner reads the bar codes ofon the items being purchased and a scale weighs the scanned items that are placed in the receiving baskets. The Self-Check-Out System is designed to replace or supplement clerk- operated cashier registers. When fully implemented a store manager is able to maintain accurate inventory of items on a ~~real-time~~contemporary basis.

For the Self-Check-Out System to operate, at least 95% of the items must have bar codes. The retailer may have to purchase equipment to be able to put bar codes on items in the store. The Company believes that the Self-~~check~~Check-Out System may reduce thefts and employees will be unable to circumvent ~~the~~traditional ~~check~~Check-~~out~~Out systems.

Another market being tested is automatic ordering and payment. ~~The~~Customers ~~customers~~ would use a touch screen to initiate an order, and make payment using the Company’s AFIM technology. The order would be sent automatically to the food preparers.

Patents and Trade Secrets. The Company has been assigned or will be assigned the rights to several U.S. patents. Four patents pertaining to the AFIM technology were granted in January 1997, February 2001, July 2001, and September 2002. Seven patents pertaining to the DWM technology were granted in May 1996, June 1997, November 1997, July 2000, September 2000, October 2000, and May 2001. A patent relating to shelf tag was granted on September 2003. Four patents relating to the turbine were granted in March 2003, January 2004, February 2006, and November 2007. A patent pertaining to the solar energy technology was granted in October 2007.

The Company has ~~been~~not ~~assigned~~sought or ~~will~~received bean ~~assigned~~opinion ~~the~~from ~~rights~~an toindependent ~~several~~patent ~~U.S.~~attorney ~~patents. Four~~regarding ~~patents~~the ~~pertaining~~strength toof the ~~AFIM~~patents ~~technology~~or ~~were~~patents ~~granted~~pending inand ~~January~~the ~~1997,~~ability ~~February~~of ~~2001,~~the ~~July~~Company ~~2001,~~to ~~and~~withstand ~~September~~any ~~2002.~~challenge ~~Seven patents pertaining~~ to the ~~DWM~~patent ~~technology~~or ~~were~~any ~~granted~~future inefforts ~~May~~by ~~1996,~~the ~~June~~Company ~~1997,~~to ~~November~~enforce ~~1997,~~its ~~July~~rights ~~2000,~~under ~~September~~a ~~2000,~~patent ~~October~~or ~~2000,~~patents ~~and~~against ~~May 2001~~others. AIn ~~patent~~2008 ~~relating~~a tocourt ~~shelf~~held ~~tag~~that ~~was~~one ~~granted~~of onthe ~~September~~AFIM ~~2003. Four~~ patents ~~relating to the turbine were granted in March 2003, January 2004, February 2006, and November 2007. A patent pertaining to the solar energy technology~~ was ~~granted in October 2007~~invalid.

The Company ~~has~~believes ~~not~~that ~~sought~~it oralso ~~received~~owns antrade ~~opinion~~secrets ~~from~~and anit ~~independent~~makes ~~patent~~efforts ~~attorney~~to ~~regarding~~safeguard ~~the strength of the patents or patents pending~~ and ~~the~~secure ~~ability~~its oftrade ~~the~~secrets. There ~~Company~~can tobe ~~withstand~~no ~~any~~assurance ~~challenge~~that tothese ~~the~~safeguards ~~patent~~will orenable ~~any future efforts by~~ the Company to ~~enforce~~prevent ~~its~~competitors ~~rights~~from ~~under~~gaining aknowledge ~~patent~~of orthese ~~patents~~trade ~~against~~secrets ~~others. In~~and ~~2008~~using athem ~~court~~to ~~held~~their ~~that~~advantage ~~one~~and ofto the ~~AFIM~~detriment ~~patents~~of ~~was~~the ~~invalid~~Company.

The Company ~~believes~~relies ~~that~~to ita ~~has~~great ~~trade~~extent ~~secrets~~upon ~~and~~its itproprietary ~~has~~technology ~~made~~for ~~efforts~~development toof ~~safeguard and secure~~ its ~~trade secrets~~products. There can be no assurance that ~~these~~others ~~safeguards~~may ~~will~~not ~~enable~~develop ~~the~~technology ~~Company~~which tocompetes ~~prevent~~with ~~competitors~~the ~~from~~Company’s ~~gaining~~products ~~knowledge of these trade secrets~~ and ~~using them to their advantage and to the detriment of the Company~~technology.

~~The~~Part ~~Company relies on its technology in the development of its products~~II. ~~There can be no assurance that others may not develop technology which competes with the Company’s products and technology.~~

~~Accounting~~Item ~~Policies~~1. ~~and~~Legal ~~Estimates~~Proceedings.

WeThe ~~believe~~Company ~~that~~has ~~our~~filed ~~financial~~two ~~statements~~lawsuits ~~and~~against ~~the~~Millard ~~accompanying~~County ~~notes~~and ~~are~~at ~~prepared~~least inone ~~conformity~~of ~~with~~its ~~accounting~~employees ~~principles~~seeking ~~generally~~damages ~~accepted~~for inincorrect ~~the~~disclosures ~~United~~and ~~States~~assertions ofregarding ~~America,~~the ~~which~~Company ~~require management to make estimates~~ and ~~assumptions~~its ~~about~~activities. ~~future~~The ~~events~~lawsuits ~~that~~were ~~affect~~filed ~~the reported amounts~~ in the ~~financial~~Fourth ~~statements~~District ~~and~~Court of the ~~accompanying~~State ~~notes~~of Utah. WeMillard ~~identified~~County ~~certain~~asserted ~~accounting~~that ~~policies~~the ~~which~~Company ~~are~~did ~~important~~not inhave the ~~financial~~necessary ~~statements’~~and ~~reporting~~proper ofpermits ~~financial~~for ~~condition,~~its ~~results of operations, or liquidity~~activities. ~~Accounting~~ ~~policies~~The ~~cover~~Company ~~accounting~~believes ~~matters~~it ~~that~~has ~~are~~the ~~inherently~~necessary ~~uncertain~~permits ~~because~~and the ~~future~~statements ~~resolution~~ of ~~such~~Millard ~~matters~~County isare ~~unknown~~incorrect.

~~Off-Balance~~Litigation ~~Sheet~~to ~~Arrangements~~enforce patents, to protect proprietary information or to defend the Company against alleged infringement of the rights of others may occur. Such litigation could be costly, could divert our resources from other activities, and could have an adverse effect on our operations and financial condition.

11The Company and its president have been named as a defendant in a complaint by the United States Justice Department (DOJ), dated November 23, 2015, alleging participation in the marketing of a non-compliant tax deferral, tax deduction and a tax credit program. The Company feels it has done its due diligence in receiving the exclusive rights to patents, obtaining reviews of the technologies by third party experts in their fields of study, obtained two tax opinion letters to ascertain that a business structure with specific tax benefits is available and legal under the law, developed working prototypes, and finally produced lenses with a manufacturing partner who is a global leader in the design, development and manufacture of acrylic based products.

~~Under~~Even ~~SEC~~with ~~regulations,~~these wetwo ~~are~~opinion ~~required~~letters the Company contractually requires persons to ~~disclose~~seek ~~our~~independent ~~off-balance~~legal ~~sheet~~and ~~arrangements~~tax ~~that~~advice. ~~have~~The Company does not provide legal or ~~are~~tax ~~reasonably~~advice ~~likely~~and tois ~~have~~not a ~~current~~law orfirm, ~~future~~nor ~~effect~~does onit ~~our~~hold ~~financial~~itself ~~condition,~~out as such. asThe ~~changes~~Company infirmly ~~financial~~and ~~condition,~~unequivocally ~~revenues~~denies orthe ~~expenses,~~allegations ~~results~~made ofby ~~operations,~~the ~~liquidity,~~DOJ. ~~capital~~The ~~expenditures~~Company orhas ~~capital~~obtained ~~resources~~Legal ~~that~~Counsel ~~are~~and ~~material~~intends to ~~investors.~~pursue Weevery dolegal ~~not~~means ~~have~~possible ~~any~~to ~~off-balance~~protect ~~sheet~~its ~~arrangements~~rights, ~~that~~the werights ~~are~~of ~~required~~potential tocustomers ~~disclose~~and ~~pursuant~~its toshareholders ~~these~~in ~~regulations~~this matter. InThe ~~the~~final ~~ordinary~~outcome ~~course~~and the effect of ~~business,~~this wecase ~~may~~on ~~enter~~the ~~into~~Company ~~lease~~is ~~commitments~~yet to be determined but such litigation could be costly, ~~purchase~~could ~~commitments~~divert ~~and~~our resources from other ~~contractual~~activities, ~~obligations.~~and could have an adverse effect on our operations and financial condition.

~~ITEM~~Item 32. ~~QUANTITATIVE~~Changes ~~AND~~in ~~QUALITATIVE DISCLOSURE ABOUT MARKET RISK~~Securities.

WeThe ~~are~~Company ahas ~~smaller~~sold ~~reporting~~restricted ~~company~~shares ~~as defined by Rule 12b-2~~ of the ~~Securities Exchange Act of 1934 and are not required to provide the information under this item. Certain market risks were disclosed in the~~ Company’s ~~June~~common ~~30,~~stock ~~2014,~~as ~~Form 10K, which was filed July 16, 2015.~~follows:

~~ITEM 4. CONTROLS AND PROCEDURES.~~Date

~~Evaluation of Disclosure Controls and Procedures~~Shares

~~Evaluation of Disclosure Controls and Procedures~~Proceeds

~~Under~~March ~~the supervision and the participation of management~~19, ~~including~~2015 our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15 under the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the period covered by this report. Based upon the evaluation, our Chief Executive Officer and Chief Financial Officer concluded that the disclosure controls and procedures as of the end of the period covered by this report were effective such that the information required to be disclosed by us in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding disclosure. A controls system cannot provide absolute assurance, however, that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

~~Our~~29,412 ~~management~~shares is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes of accounting principles generally accepted in the United States.

~~Because of inherent limitations~~$10, ~~internal control over financial reporting may not prevent or detect misstatements~~000. ~~Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.~~

~~Our~~April ~~management~~27, ~~with the participation of the Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the Company’s internal control over financial reporting as of March 31,~~ 2015. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organization of the Treadway Commission (COSO) in Internal Control -- Integrated Framework. Based on this evaluation, our management, with the participation of the Chief Executive Officer and Chief Financial Officer, concluded that as of March 31, 2015 our internal control over financial reporting was not effective.

~~This~~85,714 ~~report~~shares does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this report.

~~Changes in Internal Control over Financial Reporting~~$30,000.

~~During~~July ~~the most recent quarter ended March 31~~8, 2015, there has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected or is reasonably likely to materially affect, our internal control over financial reporting.

~~Part~~64,103 ~~II.~~shares

~~Item 1~~$25,000. ~~Legal Proceedings.~~

~~There~~August ~~is a lawsuit pending. Refer to the June 30~~13, ~~2013 Form 10K filed on or about July 16,~~ 2015.

~~Item~~ 2.,500,000 ~~Unregistered Sales of Equity Securities and Use of Proceeds.~~shares

~~On August 13~~$800, ~~2015, the Company sold 2,500,~~000 ~~shares of restricted common stock at price of $0~~.~~32 per share. The proceeds were received by the Company on August 13, 2015.~~

~~Item~~August 3.17, ~~Defaults upon Senior Securities.~~2015

~~None.~~34,688 shares

~~Item 4~~$11,100. ~~Matters Submitted to a Vote of the Company's Shareholders.~~

~~None.~~November 24, 2015

~~Item~~11,538,462 ~~5. Other Information.~~shares

~~Our shares of common stock are quoted on the electronic over the counter bulletin board under the symbol “IAUS”~~$3,000,000.

~~Item~~December ~~6. Exhibits~~17, ~~Financial Statements, Schedules and Reports on Form 10-Q.~~2015

A. 9,660 ~~Exhibits.~~shares

No$1,739.

~~Description~~Item 3. Defaults

31 upon Senior Securities.1

~~Certification pursuant to Section 302~~None.

31Item 4.2 Matters Submitted to a Vote of the Company's Shareholders.

~~Certification pursuant to Section 302~~None.

32Item 5.1 Other Information.

~~Certification~~ Our shares of common stock are quoted on the over-the-counter electronic bulletin board under the symbol “IAUS.”.

32Item 6.2 Exhibits, Financial Statements, Schedules and Reports on Form 10-Q.

~~Certification~~A. Exhibits.

No.

~~B. Reports on Form 8-K.~~Description

~~None~~31.1

12Certification pursuant to Section 302

~~Signatures~~31.2

~~Pursuant~~Certification topursuant ~~the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report~~ to beSection ~~signed on its behalf by the undersigned thereunto duly authorized.~~302

~~Date: October~~ 32.1~~, 2015~~

~~International Automated Systems, Inc.~~Certification

~~By /s/Neldon Johnson~~32.2

~~President and Chief Executive Officer~~Certification

~~October 2, 2015~~.

13B. Reports on Form 8-K.

None

Item 9A CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Under the supervision and the participation of management, including our Chief Executive Officer and Chief Financial Officer, we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15 under the Securities Exchange Act of 1934 (the “Exchange Act”) as of the end of the period covered by this report. Based upon the evaluation, our Chief Executive Officer and Chief

Financial Officer concluded that the disclosure controls and procedures as of the end of the period covered by this report were not effective such that the information required to be disclosed by us in reports filed under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding disclosure. A controls system cannot provide absolute assurance, however, that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes of accounting principles generally accepted in the United States.

Because of inherent limitations, (chiefly the limited number of available personnel) internal control over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.

Our management, with the participation of the Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of the Company’s internal control over financial reporting as of September 30, 2015. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organization of the Treadway Commission (COSO) in Internal Control -- Integrated Framework. Based on this evaluation, our management, with the participation of the Chief Executive Officer and Chief Financial Officer, concluded that as of September 30, 2015 our internal control over financial reporting was not effective.

Evaluation of Internal Control Over Financial Reporting by Outside Auditor

This report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this report.

Changes in Internal Control Over Financial Reporting

During the most recent quarter ended September 30, 2015, there has been no change in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act) that has materially affected or is reasonably likely to materially affect, our internal control over financial reporting.

Signatures

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

Date: March 1, 2017

International Automated Systems, Inc.

By s/Neldon Johnson

President and Chief Operating Officer

Filing Compare · INTERNATIONAL AUTOMATED SYSTEMS INC