UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended ~~December~~March 31, ~~2011~~2012

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

For the transition period from ___________ to _____________

Commission file number 000-53827

IP TECHNOLOGY SERVICES, INC.

(Exact name of registrant as specified in its charter)

Delaware

26-0378308

(State or Other Jurisdiction of

Incorporation Or organization)

(IRS Employer

Identification No.)

1202 Lexington Ave., Suite 355

New York, NY 10028

(Address of Principal Executive Offices) (Zip Code)

(646) 481-4524

(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 Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ~~Yes X . No .~~

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

Yes X . No .

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


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 Securities Exchange Act of 1934) (check one): ~~Yes X . No .~~

~~Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:~~Yes X ~~2,656,611~~. ~~shares of common stock outstanding at February 21, 2012~~No .

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 2,764,691 shares of common stock outstanding at May 15, 2012.

IP TECHNOLOGY SERVICES, INC.

Page PART I Item 1 – Financial Statements. 3 Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations. 1514 Item 3 – Quantitative and Qualitative Disclosures About Market Risk. 1615 Item 4 - Controls and Procedures. 1615 PART II 16 Item 1 - Legal Proceedings. 16 Item ~~1A. – Risk Factors 16 Item~~ 2 – Unregistered Sale of Equity Securities and Use of Proceeds. 16 Item 3 - Defaults Upon Senior Securities. 16 Item 4 – [Removed and Reserved] 16 Item 5 – Other Matters. 16 Item 6 – Exhibits. 1716 SIGNATURE 1716

IP ~~Technology~~TECHNOLOGY ~~Services~~SERVICES, ~~Inc~~INC.

~~December~~March 31, ~~2011~~2012 and ~~2010~~2011

Index to the Consolidated Financial Statements

Contents	Page(s)
	Page
Consolidated Balance Sheets at December 31, 2011 (Unaudited) and September 30, 2011	4
ITEM 1 – Financial Statements.
Consolidated Statements of Operations for the Three Months Ended December 31, 2011 and 2010 (Unaudited)	5
Consolidated Balance Sheets at March 31, 2012 (Unaudited) and September 30, 2011	4
Consolidated Statement of Stockholders’ Equity (Deficit) for the Fiscal Year Ended September 30, 2010 and for the Interim Period Ended December 31, 2011	6
Consolidated Statements of Operations for the Three Months Ended March 31, 2012 and 2011 (Unaudited)	5
Consolidated Statements of Cash Flows for the Three Months Ended December 31, 2011 and 2010 (Unaudited)	7
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2012 and 2011 (Unaudited)	6
Notes to the Consolidated Financial Statements (Unaudited)	8
Notes to the Unaudited Consolidated Financial Statements (Unaudited)	7

IP Technology Services, Inc.
Consolidated Balance Sheets
					December 31, 2011		September 30, 2011
						March 31, 2012			September 30, 2011
					~~(Unaudited)~~	(Unaudited)
Assets
Current assets
	Cash			$	~~8,381~~$	$1,041	~~2,845~~	$	2,845
	Accounts receivable					-			-
	Advances to stockholder					-			-
		Total current assets			~~8,381~~	1,041	~~2,845~~		2,845
			Total assets	$	~~8,381~~$	$1,041	~~2,845~~	$	2,845
Liabilities and deficit
Current liabilities:
	Accrued expenses			$	~~10,908~~$	$11,953	~~5,559~~	$	5,559
	Accounts Payable				-	-	-		-
	Common stock to be issued				-	-	-		-
	Advances from stockholder				-	-	-		-
		Total current liabilities			~~10,908~~	11,953	~~5,559~~		5,559
Deficit
	Preferred stock: $0.0001 par value: 1,000,000 shares authorized; none issued or outstanding				-		-
	Preferred stock: $0.0001 par value: 10,000,000 shares authorized; none issued or outstanding					-			-
	Common stock: $0.0001 par value: 99,000,000 shares authorized; 2,656,611 and 2,558,000 shares issued and outstanding, respectively				~~266~~	266	~~256~~		256
	Additional paid-in capital				~~73,366~~	73,366	~~63,515~~		63,515
	Accumulated deficit				~~(76,159)~~	(84,544)	~~(66,485)~~		(66,485)
		IP stockholders' deficit			~~(2,527)~~	(10,912)	~~(2,714)~~		(2,714)
	Noncontrolling interest				-	-	-		-
		Total deficit			~~(2,527)~~	(10,912)	~~(2,714)~~		(2,714)
			Total liabilities and deficit	$	~~8,381~~$	$1,041	~~2,845~~	$	2,845
See accompanying notes to the consolidated financial statements.

IP Technology Services, Inc. Consolidated Statements of Operations


IP Technology Services, Inc.

Consolidated Statements of Operations



				For the Three Months		For the Three Months
				Ended		Ended
				March 31, 2012		March 31, 2011
				(Unaudited)		(Unaudited)

Revenues			$	-	$	-

Operating expenses
	Compensation			-		46,430
	Professional fees			7,820		8,250
	Rent			-		-
	General and administrative expenses			565		2,770

		Total operating expenses		8,385		57,450

LOSS FROM OPERATIONS				(8,385)		(57,450)

OTHER (INCOME) EXPENSES
	Gain on sale of patent			-		-
	Income tax refund			-		(6,230)

		Total Other (Income) Expenses		-		(6,230)

Loss before income taxes				(8,385)		(51,220)

Income tax provision				-		-

Net loss				(8,385)		(51,220)

Net loss attributable to noncontrolling interest				-		-

Net loss attributable to IP Technology			$	(8,385)	$	(51,220)

Net loss per common share attributed to IP Technology:
	- Basic and diluted		$	(0.00)	$	(0.02)

	Weighted average common shares outstanding - basic and diluted
				2,656,611		2,500,000

See accompanying notes to the consolidated financial statements.

				For the Three		For the Three
				Months Ended		Months Ended
				December 31, 2011		December 31, 2010
				(Unaudited)		(Unaudited)
Revenues			$	-	$	-
Operating expenses
	Compensation			-		-
	Professional fees			7,739		-
	Rent			-		-
	Amortization			-		631
	General and administrative expenses			1,935		10
		Total operating expenses		9,674		641
LOSS FROM OPERATIONS				(9,674)		(641)
OTHER (INCOME) EXPENSES
	Gain on sale of patent			-		(38,701)
	Income tax refund			-		-
		Total Other (Income) Expenses		-		(38,701)
Income (loss) before taxes				(9,674)		38,060
Income tax provision				-		-
Net income (loss)				(9,674)		38,060
Net income (loss) attributable to noncontrolling interest				-		-
Net income (loss) attributable to IP Technology			$	(9,674)	$	38,060
Net income (loss) per common share attributed to IP Technology: - Basic and diluted			$	(0.00)	$	0.02
	Weighted average common shares outstanding - basic and diluted			2,578,245		2,500,000

See accompanying notes to the consolidated financial statements.

IP Technology Services, Inc.
Consolidated Statement of Stockholders' Equity (Deficit)
Consolidated Statements of Cash Flows
For the Fiscal Year Ended September 30, 2010 and for the Interim Period Ended December 31, 2011
						For the Six Months			For the Six Months
(Unaudited)
						Ended			Ended
	Common Stock, $0.0001 Par Value			Additional		Retained		Total IP Stockholders'				Total
						March 31, 2012			March 31, 2011
	Number of			Paid-in		Earnings		Equity		Noncontrolling		Equity
						(Unaudited)			(Unaudited)
	Shares	Amount		Capital		(Deficit)		(Deficit)		Interest		(Deficit)
Cash flows from operating activities:
Balance, September 30, 2010	2,500,000		250		34,750		(43,112)		(8,112)		-		(8,112)
Net loss					$	(18,059)		$	(13,160)
Cancellation of common stock upon change of control	(17,000)		(2)		2				-		-		-
Adjustments to reconcile net loss to net cash used in operating activities:
Sale of common stock	75,000		8		7,492				7,500		-		7,500
	Gain on sale of patent					-			(38,701)
Capital contribution					21,271				21,271		-		21,271
	Amortization					-			631
Net loss							(23,373)		(23,373)		-		(23,373)
	Changes in operating assets and liabilities:
Balance, September 30, 2011	2,558,000		256		63,515		(66,485)		(2,714)		-		(2,714)
		Accrued expenses				6,394			(11,615)
Sale of common stock	98,611		10		9,851				9,861		-		9,861
		Income taxes payable				-			-
Net loss							(9,674)		(9,674)		-		(9,674)
		Customer deposits				-			-
Balance, December 31, 2011	2,656,611	$	266	$	73,366	$	(76,159)	$	(2,527)	$	-	$	(2,527)
		Advances from stockholder				-			-
Net cash used in operating activities						(11,665)			(62,845)
CASH FLOWS FROM INVESTING ACTIVITIES:
	Proceeds from sale of patent					-			60,000
NET CASH PROVIDED BY INVESTING ACTIVITIES						-			60,000
Cash flows from financing activities:
	Proceeds from sale of common stock					9,861			-
Net cash provided by financing activities						9,861			-
Net change in cash						(1,804)			(2,845)
Cash, beginning of period						2,845			3,943
Cash, end of period					$	1,041		$	1,098
Supplemental disclosure of cash flows information:
	Interest paid				$	-		$	-
	Income tax paid				$	-		$	-
NON-CASH FINANCING AND INVESTING TRANSACTIONS:
See accompanying notes to the consolidated financial statements.

IP Technology Services, Inc. Consolidated Statements of Cash Flows

				For the Three		For the Three
				Months Ended		Months Ended
				December 31, 2011		December 31, 2010
				(Unaudited)		(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)			$	(9,674)	$	38,060
Adjustments to reconcile net income (loss) to net cash used in operating activities:
	Gain on sale of patent			-		(38,701)
	Amortization			-		631
	Changes in operating assets and liabilities:
		Accrued expenses		5,349		-
Net cash used in operating activities				(4,325)		(10)
CASH FLOWS FROM INVESTING ACTIVITIES:
	Proceeds from sale of patent			-		60,000
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES				-		60,000
CASH FLOWS FROM FINANCING ACTIVITIES:
	Proceeds from sale of common stock			9,861		-
Net cash provided by financing activities				9,861		-
NET CHANGE IN CASH				5,536		59,990
CASH, BEGINNING OF YEAR				2,845		3,943
CASH, END OF YEAR			$	8,381	$	63,933
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:
	Interest paid		$	-	$	-
	Income tax paid		$	-	$	-

See accompanying notes to the consolidated financial statements.

IP Technology Services, Inc.

~~December~~March 31, ~~2011~~2012 and ~~2010~~2011

Notes to the Consolidated Financial Statements

(Unaudited)

Note 1 - Organization and Operations

IP Technology Services, Inc.

IP Technology Services, Inc. (“IP” or the “Company”) was incorporated on June 6, 2007 under the laws of the State of Delaware. IP provides a range of services to assist inventors to leverage their patents and related intellectual property (“Portfolios”) and formulate a strategy to maximize the revenue and profit generated by the Portfolios.

Mural Comm LLC

On June 9, 2008, the company formed Mural Comm LLC (“LLC”) under the laws of the State of Delaware. The LLC, of which the Company is a 75% member, was formed to provide the same services as IP and is currently inactive.

Change in Control

On May 18, 2011, Joseph Levi, the Company’s then President, Chief Executive Officer, Chief Financial Officer, director and the stockholder sold 2,301,000 shares of the Company’s common stock (the “Shares”), through a Stock Purchase Agreement with R-Squared Partners representing 92% of the issued and outstanding common shares; (ii) the Company cancelled 17,000 shares of its common stock; (iii) Mr. Levi assumed certain outstanding liabilities of the Company; (iv) Neil Rock was elected President and as a member of the board of directors; and (v) Mr. Levi resigned as President, Chief Executive Officer, Chief Financial Officer and director of the Company.

Note 2 - Summary of Significant Accounting Policies

Basis of Presentation – Unaudited Interim Financial Information

The accompanying unaudited interim financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for the interim financial information, and with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, necessary to a fair statement of the results for the interim period presented. Unaudited interim results are not necessarily indicative of the results for the full fiscal year. These financial statements should be read in conjunction with the financial statements of the Company for the fiscal year ended September 30, 2011 and notes thereto contained in the information filed as part of the Company’s Annual Report on Form 10K filed with the SEC on January 13, 2012.

Principles of Consolidation

The consolidated financial statements include all accounts of IP and LLC as of ~~December~~March 31, ~~2011~~2012 and ~~2010~~2011 and for the interim period then ended. ~~All inter-company balances and transactions have been eliminated.~~

All inter-company balances and transactions have been eliminated.

Use of Estimates and Assumptions

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

The Company’s significant estimates and assumptions include the fair value of financial instruments; income tax rate, income tax provision, deferred tax assets and the valuation allowance of deferred tax assets, and the assumption that the Company will continue as a going concern. Those significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to those estimates or assumptions, and certain estimates or assumptions are difficult to measure or value.

Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.

Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, ~~and~~ if deemed appropriate, those estimates are adjusted accordingly. ~~Actual results could differ from those estimates.~~

Actual results could differ from those estimates.

Fair Value of Financial Instruments

The Company follows paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments and paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The three (3) levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below:


Level 1		Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

Level 2		Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

Level 3		Pricing inputs that are generally observable inputs and not corroborated by market data.

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

The carrying amounts of the Company’s financial assets and liabilities, such as cash and accrued expenses approximate their fair values because of the short maturity of these instruments.

Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.

It is not, however, practical to determine the fair value of advances from stockholders due to their related party nature.

Fiscal Year End

The Company elected September 30 as its fiscal year end date.

Cash Equivalents

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

Patent

The Company follows the guidelines as set out in paragraph 350-30-25-3 and paragraph 350-30-35-6 of the FASB Accounting Standards Codification for patent. Under the requirements as set out in paragraph 350-30-25-3 and paragraph 350-30-35-6 of the FASB Accounting Standards Codification, the Company amortizes the costs of acquired patent over its remaining legal lives, or estimated useful life, or the term of the contract, whichever is shorter. Upon becoming fully amortized, the related cost and accumulated amortization are removed from the accounts.

Related Parties

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

Pursuant to Section 850-10-20 the Related parties include a. affiliates of the Company; b. Entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; c. trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d. principal owners of the Company; e. management of the Company; f. other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a. the nature of the relationship(s) ~~involvedb~~involved; b. a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c. the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. mounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

Commitment and Contingencies

The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows.

109

Revenue Recognition

The Company’s revenues are derived principally from commissions earned through retaining a buyer or licensee(s) or obtaining product development funding for the Portfolios holder the Company represents. The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company will recognize revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. In addition to the aforementioned general policy, the following are the specific revenue recognition policies for each category of revenues:

Licensing revenues: Licensing revenues, net of licensor participations, are recognized when the underlying royalties from the sales of the related products are earned. The Company recognizes guaranteed royalties, net of licensor participations, at the time the arrangement becomes effective if the Portfolios holder has signed a non cancelable contract, has agreed to a fixed fee, has delivered the rights to the licensee who is free to exercise them, and the Portfolios holder and the Company, as a licensing agent has no remaining significant obligations with the underlying Portfolios or obligation to the licensee, and collectability of the full fee is reasonably assured. Where the Company has significant continuing direct involvement with the underlying Portfolios or obligation to the licensee, guaranteed minimum royalties, net of licensor participations, are recognized ratably over the term of the license or based on sales of the related products, if greater. Licensing advances and guaranteed payments collected but not yet earned by the Company are classified as deferred revenue in the accompanying consolidated balance sheets.

Commission income: Commission income, net of licensor participations, is recognized when the underlying commission from the sale of the Portfolios or securing product development funding is earned. The Company recognizes commission income, net of licensor participations, at the time the sale of the Portfolios or product development funding arrangement becomes effective if the Portfolios holder has signed a non cancelable contract, has agreed to a fixed or determinable amount, has sold the rights to the buyer or obtained the funding from the financing institutions, and collectability of the full commission is reasonably assured. If the Company determines that collection of the full commission is not reasonably assured, the Company defers the revenue recognition and recognizes commission income at the time collection becomes reasonably assured, which is generally upon receipt of cash.

Noncontrolling Interest

The Company follows paragraph 810-10-65-1 of the FASB Accounting Standards Codification to include non-controlling interests in Mural Comm LLC, its majority owned subsidiary in the equity section of the consolidated balance sheets. Noncontrolling interests represent 25% of the equity of the Company’s majority-owned subsidiary, Mural Comm LLC. Noncontrolling interests are adjusted for the noncontrolling interest holders’ proportionate share of the earnings or losses of Mural Comm LLC and the noncontrolling interest continues to be attributed its share of losses even if that attribution results in a deficit noncontrolling interest balance.

Income ~~Taxes~~Tax Provision

The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Income and Comprehensive Income in the period that includes the enactment date.

The Company adopted section 740-10-25 of the FASB Accounting Standards Codification (“Section 740-10-25”) with regards to uncertainty income taxes. Section 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section 740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures.

1110

The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying consolidated balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its consolidated balance sheets and provides valuation allowances as management deems necessary.

Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.

Uncertain Tax Positions

The Company did not take any uncertain tax positions and had no adjustments to unrecognized income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the interim period ended ~~December~~March 31, ~~2011~~2012 or ~~December 31, 2010~~2011.

Limitation on Utilization of NOLs due to Change in Control

Pursuant to the Internal Revenue Code Section 382 (“Section 382”), certain ownership changes may subject the NOL’s to annual limitations which could reduce or defer the NOL. Section 382 imposes limitations on a corporation’s ability to utilize NOLs if it experiences an “ownership change.” In general terms, an ownership change may result from transactions increasing the ownership of certain stockholders in the stock of a corporation by more than 50 percentage points over a three-year period. In the event of an ownership change, utilization of the NOLs would be subject to an annual limitation under Section 382 determined by multiplying the value of its stock at the time of the ownership change by the applicable long-term tax-exempt rate. Any unused annual limitation may be carried over to later years. The imposition of this limitation on its ability to use the NOLs to offset future taxable income could cause the Company to pay U.S. federal income taxes earlier than if such limitation were not in effect and could cause such NOLs to expire unused, reducing or eliminating the benefit of such NOLs.

Net Income (Loss) per Common Share

Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through convertible debt or preferred stock, contingent share arrangements, stock options and warrants.

There were no potentially dilutive common shares outstanding for the interim period ended ~~December~~March 31, ~~2011~~2012 or ~~2010~~2011.

Cash Flows Reporting

The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“Indirect method”) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification.

Subsequent Events

The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.

Recently Issued Accounting Pronouncements

~~In May 2011, the~~ FASB ~~issued the FASB~~ Accounting Standards Update No. 2011-04 “Fair Value Measurement” (“ASU 2011-04”). This amendment and guidance are the result of the work by the FASB and the IASB to develop common requirements for measuring fair value and for disclosing information about fair value measurements in accordance with U.S. GAAP and International Financial Reporting Standards (IFRSs).05

This update does not modify the requirements for when fair value measurements apply; rather, they generally represent clarifications on how to measure and disclose fair value under ASC 820, Fair Value Measurement, including the following revisions:

An entity that holds a group of financial assets and financial liabilities whose market risk (that is, interest rate risk, currency risk, or other price risk) and credit risk are managed on the basis of the entity’s net risk exposure may apply an exception to the fair value requirements in ASC 820 if certain criteria are met. The exception allows such financial instruments to be measured on the basis of the reporting entity’s net, rather than gross, exposure to those risks.

In the absence of a Level 1 input, a reporting entity should apply premiums or discounts when market participants would do so when pricing the asset or liability consistent with the unit of account.

Additional disclosures about fair value measurements.

The amendments in this Update are to be applied prospectively and are effective for public entity during interim and annual periods beginning after December 15, 2011.

In June 2011, the FASB issued the FASB Accounting Standards Update No. 2011-05 “Comprehensive Income” (“ASU 2011-05”), which was the result of a joint project with the IASB and amends the guidance in ASC 220, Comprehensive Income, by eliminating the option to present components of other comprehensive income (OCI) in the statement of stockholders’ equity. Instead, the new guidance now gives entities the option to present all non-owner changes in stockholders’ equity either as a single continuous statement of comprehensive income or as two separate but consecutive statements. Regardless of whether an entity chooses to present comprehensive income in a single continuous statement or in two separate but consecutive statements, the amendments require entities to present all reclassification adjustments from OCI to net income on the face of the statement of comprehensive income.

The amendments in this Update should be applied retrospectively and are effective for public entity for fiscal years, and interim periods within those years, beginning after December 15, 2011.

FASB Accounting Standards Update No. 2011-08

In September 2011, the FASB issued the FASB Accounting Standards Update No. 2011-08 “Intangibles—Goodwill and Other: Testing Goodwill for Impairment” (“ASU 2011-08”). This Update is to simplify how public and nonpublic entities test goodwill for impairment. The amendments permit an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test described in Topic 350. Under the amendments in this Update, an entity is not required to calculate the fair value of a reporting unit unless the entity determines that it is more likely than not that its fair value is less than its carrying amount.

The guidance is effective for interim and annual periods beginning on or after December 15, 2011. Early adoption is permitted.

FASB Accounting Standards Update No. 2011-10

In December 2011, the FASB issued the FASB Accounting Standards Update No. 2011-10 “Property, Plant and Equipment: Derecognition of in Substance Real Estate-a Scope Clarification” (“ASU 2011-09”). This Update is to resolve the diversity in practice as to how financial statements have been reflecting circumstances when parent company reporting entities cease to have controlling financial interests in subsidiaries that are in substance real estate, where the situation arises as a result of default on nonrecourse debt of the subsidiaries.

The amended guidance is effective for annual reporting periods ending after June 15, 2012 for public entities. Early adoption is permitted.

FASB Accounting Standards Update No. 2011-11

In December 2011, the FASB issued the FASB Accounting Standards Update No. 2011-11 “Balance Sheet: Disclosures about Offsetting Assets and Liabilities” (“ASU 2011-11”). This Update requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. The objective of this disclosure is to facilitate comparison between those entities that prepare their financial statements on the basis of U.S. GAAP and those entities that prepare their financial statements on the basis of IFRS.

The amended guidance is effective for annual reporting periods beginning on or after January 1, 2013, and interim periods within those annual periods.

FASB Accounting Standards Update No. 2011-12

In December 2011, the FASB issued the FASB Accounting Standards Update No. 2011-12 “Comprehensive Income: Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05” (“ASU 2011-12”). This Update is a deferral of the effective date pertaining to reclassification adjustments out of accumulated other comprehensive income in ASU 2011-05. FASB is to going to reassess the costs and benefits of those provisions in ASU 2011-05 related to reclassifications out of accumulated other comprehensive income. Due to the time required to properly make such a reassessment and to evaluate alternative presentation formats, the FASB decided that it is necessary to reinstate the requirements for the presentation of reclassifications out of accumulated other comprehensive income that were in place before the issuance of Update 2011-05.

All other requirements in Update 2011-05 are not affected by this Update, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011.

Other Recently Issued, but not yet Effective Accounting Pronouncements

Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.

Note 3 – Going Concern

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

As reflected in the accompanying consolidated financial statements, the Company had an accumulated deficit at ~~December~~March 31, ~~2011~~2012, a net loss and net cash used in operating activities for the interim period then ended, respectively. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

While the Company is attempting to commence operations and generate sufficient revenues, the Company’s cash position may not be sufficient enough to support the Company’s daily operations. While the Company believes in the viability of its strategy to generate sufficient revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and generate sufficient revenues. The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern.

The consolidated financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

Note 4 – Related Party Transactions

Free Office Space

The Company leases office space from a related party. There is no formal lease agreement existing at the present that obligates the Company to record any future minimum payments.

Note 5 – ~~Stockholders’~~Subsequent ~~Deficit~~Events

Common stock

The Company sold 98,611 shares of its common stock at $0.10 per share ($9,861) to four (4) investors during the quarter ended December 31, 2011.

Note 6 – Subsequent Events

The Company has evaluated all events that occurred after the balance sheet date through the date when the financial statements were issued to determine if they must be reported. The Management of the Company determined that there were no reportable subsequent events.

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

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Information set forth herein contains "forward-looking statements" which can be identified by the use of forward-looking terminology such as "believes," "expects," "may,” “should" or "anticipates" or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. No assurance can be given that the future results covered by the forward-looking statements will be achieved. The Company cautions readers that important factors may affect the Company’s actual results and could cause such results to differ materially from forward-looking statements made by or on behalf of the Company. These factors include the Company’s lack of historically profitable operations, dependence on key personnel, the success of the Company’s business, ability to manage anticipated growth and other factors identified in the Company's filings with the Securities and Exchange Commission, press releases and/or other public communications.

Plan of Operation

~~The~~Our ~~Company~~original ~~earned~~focus nowas ~~revenues~~to provide a range of services to assist inventors in leveraging their patents and related intellectual property and formulate strategies to maximize revenue and profits created by their intellectual property portfolios. The services that we provided included an initial analysis of a portfolio to identify its strengths and weaknesses and a determination of the ~~quarter~~value ~~ended~~of ~~December~~the ~~31,~~portfolio. ~~2011~~Our initial business model focused on the generation of revenue by receiving a portion of the economic value realized from our client portfolios. On March 3, 2009, the Company, through its subsidiary Mural Comm LLC, purchased from BancTec, Inc. for $90,000 U.S. Patent No. 6,341,351 titled Method for Communication and Controlling Transactions Between Unsecured Parties (the “Patent” ). After several attempts at licensing the Patent, on December 15, 2010, the Company sold the Patent for $60,000.

InWe ~~addition,~~do wenot ~~continue~~currently have agreements to ~~look~~represent ~~for~~any ~~commercially~~intellectual ~~viable~~property ~~Portfolios~~portfolios tonor ~~represent~~do we own any intellectual property or any other assets other than cash. To ~~that~~We ~~end,~~are wecurrently ~~will~~considered ~~continue~~a toshell ~~work~~company ~~with~~as ~~our~~defined ~~industry~~under ~~contacts,~~Rule ~~advertise~~12b-2 ~~and~~of ~~use~~the ~~our~~Securities ~~website~~Exchange ~~at www~~Act of 1934, as amended (the “Exchange Act”).~~iptechnologyservices.com~~ Our current focus is to ~~identify~~acquire, ~~additional~~through ~~Portfolios. For~~a ~~each~~merger, ~~such~~capital ~~Portfolio~~stock exchange, weasset ~~analyze~~acquisition, ~~the~~stock ~~Portfolio~~purchase, ~~identify~~reorganization, ~~relevant~~exchangeable ~~markets~~share ~~and/~~transaction or ~~identify~~other ~~potential~~similar ~~acquirers~~business transaction, ~~licensees~~one ~~and/~~or ~~investors~~more ~~for~~operating ~~the~~business ~~Portfolio~~or assets that we have not yet identified. In ~~addition,~~Although we ~~developed~~have aengaged ~~proprietary~~in ~~software~~discussions ~~program~~with ~~that~~several target businesses, we ~~believe~~do ~~will~~not ~~assist~~have usany inspecific ~~identifying~~merger, ~~patent~~capital ~~portfolios~~stock ~~that~~exchange, ~~have~~asset ~~substantial~~acquisition, ~~commercial~~stock ~~value~~purchase, reorganization, exchangeable share transaction or other similar business transaction under consideration. We ~~cannot~~can ~~guarantee,~~provide ~~however,~~no assurance that wea suitable target business will ~~find~~be ~~additional~~identified ~~suitable~~or ~~Portfolios~~if ~~for~~one ~~which~~is identified, if we will be successful in ~~completing~~negotiating athe ~~revenue~~terms ~~generating~~of an acquisition transaction that are in the best interests of the Company.

~~Generally,~~As weof ~~will~~March ~~enter~~31, ~~into~~2012, ~~one~~the orCompany ~~more~~had ~~agreements~~$1,041 ~~with~~in ~~our~~cash. ~~clients~~The ~~depending~~Company’s oncurrent ~~the~~cash ~~range~~position ofis ~~services~~not sufficient to befund ~~provided.~~operations Ifover athe ~~client~~next istwelve ~~seeking~~months toincluding ~~sell~~general oroverhead ~~license~~expenses asuch ~~Portfolio~~as salaries, wecorporate ~~will~~legal ~~typically~~and ~~enter~~accounting ~~into~~fees, aoffice ~~Patent~~overhead ~~Broker~~and ~~Agreement~~general ~~(“Broker~~working ~~Agreement”)~~capital. ~~under~~In ~~which~~the weevent ~~earn~~the aCompany ~~commission~~may ~~for~~require ~~finding~~additional acash ~~buyer~~to ~~and/or~~fund ~~licensee~~operations ofor ~~the~~purchase a Portfolio., ~~Our~~we ~~commission~~may ~~rates~~have ~~are~~to ~~typically~~borrow ~~one-third~~money ~~(33.33%)~~from ofshareholders ~~revenues~~or ~~generated~~issue ~~through~~debt ~~the~~or ~~sale/license~~equity ofor ~~the~~enter ~~Portfolio~~into ~~but~~a instrategic ~~certain~~arrangement ~~situations~~with ~~we may negotiate~~ a ~~different~~third ~~rate~~party. ~~Where~~Our aofficer ~~client~~will isfund ~~seeking~~any ~~funding~~expenses ~~for~~which ~~product~~arise ~~development,~~until wesuch ~~may~~time ~~enter~~as ~~into~~the aCompany ~~Patent~~raises ~~Finance~~sufficient ~~Agreement~~funds. ~~(“Finance~~There ~~Agreement”)~~can ~~under~~be ~~which~~no weassurance ~~earn~~that ~~commission~~additional ~~based~~capital onwill ~~the~~be ~~amount~~available ofto ~~capital~~us. weWe ~~assist~~currently inhave ~~raising.~~no ~~In certain situations~~agreements, wearrangements ~~may consider purchasing all~~ or ~~part~~understandings ofwith aany ~~Portfolio~~person ~~and~~to ~~develop~~obtain afunds ~~licensing~~through ~~campaign~~bank ~~for~~loans, ~~the~~lines ~~Portfolio~~of tocredit ~~generate~~or ~~revenues~~any ~~for~~other ~~the Company~~sources.

As of December 31, 2011, the Company had $8,381 in cash. The Company’s current cash position is not sufficient to fund operations over the next twelve months including general overhead expenses such as salaries, corporate legal and accounting fees, office overhead and general working capital. In the event the Company may require additional cash to fund operations or purchase a Portfolio, we may have to borrow money from shareholders or issue debt or equity or enter into a strategic arrangement with a third party. Our officer will fund any expenses which arise until such time as the Company raises sufficient funds. There can be no assurance that additional capital will be available to us. We currently have no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources.

Critical Accounting Policies

The preparation of financial statements and related notes requires us to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.

An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements.

Financial Reporting Release No. 60 requires all companies to include a discussion of critical accounting policies or methods used in the preparation of financial statements. There are no critical policies or decisions that rely on judgments that are based on assumptions about matters that are highly uncertain at the time the estimate is made.

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Seasonality

To date, we have not noted any significant seasonal impacts.

Off Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Item 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Not applicable.

ITEM 4 - CONTROLS AND PROCEDURES

As of ~~December~~March 31, ~~2011~~2012, we carried out the evaluation of the effectiveness of our disclosure controls and procedures required by Rule 13a-15(e) under the Exchange Act under the supervision and with the participation of our management, including our President. Based upon that evaluation, our President concluded that, as of ~~December~~March 31, ~~2011~~2012, our disclosure controls and procedures were not effective to ensure that information we are required to disclose in reports that we file or submit 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 President, as appropriate to allow timely decisions regarding required disclosure.

There has been no change in our internal control over financial reporting identified in connection with this evaluation that occurred during our fiscal quarter ended ~~December~~March 31, ~~2011~~2012 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II — OTHER INFORMATION

Item 1. - Legal Proceedings

None.

Item 1A. – Risk Factors

Not applicable.

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

~~During~~In ~~the~~May ~~period~~2012, ~~ended~~we ~~December~~entered ~~31,~~into ~~2011,~~subscription agreements with certain existing stockholders of the Company pursuant to which we issued and sold an aggregate of 98108,~~611~~080 shares of the Company’s common stock atfor agross ~~purchase~~proceeds ~~price~~ of $0.10,808. ~~per~~The ~~shared~~securities were issued in a private placement transaction to ~~four~~a limited number of accredited investors ~~for~~in ~~aggregate~~reliance ~~proceeds~~upon an exemption from registration provided by Section 4(2) of $9the Securities Act of 1933,~~861~~ as amended, which exempts transactions by an issuer not involving a public offering.

We issued the forgoing securities in reliance on the safe harbor provided under Rule 506 of Regulation D and/or Section 4(2) of the Securities Act of 1933 as amended, without payment of commissions to any person.

Item 3. - Defaults Upon Senior Securities

Not applicable.

Item 4. – [Removed and Reserved]

Item 5. - Other Information

Not applicable

Item 6. - Exhibits and Reports on Form 8-K

Exhibits .

31.1		Certification of Principal Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Principal Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1		Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant To Section 906 Of The Sarbanes-Oxley Act Of 2002.

SIGNATURES

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

	IP TECHNOLOGY SERVICES, INC.
		/s/ Neil Rock
		Neil Rock
	Title:	President (Principal Executive Officer and Principal Financial Officer)
	Date:	~~February~~May 2116, 2012

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