10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

Form 10-Q

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

For the quarterly period ended June 30, 2011

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

For the transition period from _________ to _____________

Commission file number 333-151252

TouchIT Technologies, Inc.

 (Exact Name of Registrant as Specified in Its Charter)

Nevada	26-2477977
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

100 West Big Beaver Road, Suite 200, Troy, MI, 48084, USA

 (Address of Principal Executive Offices) (Zip Code)

248 680 6700 / 00 44 207 858 1045

(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   

Yes  x           No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  

Yes  ¨            No  ¨

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 definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Larger accelerated filer        ¨	Accelerated filer                        ¨
Non-accelerated filer           ¨ (Do not check if a smaller reporting company)	Smaller reporting company      x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ¨            No x

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 74,189,419 shares of common stock outstanding as of August 1, 2012.

TOUCHIT TECHNOLOGIES, INC.

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2012

INDEX

PART I - FINANCIAL INFORMATION		1
Item 1.	Financial Statements.	1
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations.	17
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	26
Item 4.	Controls and Procedures.	26
PART II - OTHER INFORMATION		27
Item 1.	Legal Proceedings.	27
Item 6.	Exhibits.	28

Signature   29

EXPLANATORY NOTE

TouchIT Technologies, Inc. (the “Company”) was incorporated in the State of Nevada as “Hotel Management Systems, Inc.”  On May 7, 2010, the Company entered into a share exchange agreement, with TouchIT Technologies Koll Sti (“TouchIT Tech KS”), TouchIT Education Koll Sti (“TouchIT Ed”)(“TouchIT Ed” and together with TouchIT Tech KS, “TouchIT”), and the stockholders of TouchIT Tech KS and Touch Ed.  Both TouchIT Tech KS and TouchIT Ed are corporations formed under the laws of Turkey and are based in Istanbul, Turkey. The closing of the transaction (the “Closing”) took place on May 7, 2010 (the “Closing Date”), all as disclosed on Form 8-K filed by the Company with the Securities and Exchange Commission on May 24, 2010.  See “Recent Developments”.  Subsequently, the Registrant amended its Articles of Incorporation to change its name to TouchIT Technologies, Inc., as disclosed on Form 8-K filed by the Registrant with the Securities and Exchange Commission on May 24, 2010.

Unless otherwise specified or required by context, as used in this Quarterly Report on Form 10-Q, the terms “we,” “our,” “us” and the “Company” refer collectively to (i) TouchIT Technologies, Inc., a Nevada corporation (“TouchIT”), (ii) TouchIT Tech KS and TouchIT Ed, both being wholly-owned subsidiaries of TouchIT.  In this Quarterly Report on Form 10-Q, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the shares of our common stock, $0.001 par value per share. All financial information presented is for the combined entity TouchIT, which comprises of TouchIT Tech KS and TouchIT Ed. They have not been consolidated and inter-company transactions, although not significant, do exist.

CAUTIONARY NOTE ON FORWARD LOOKING STATEMENTS

In addition to historical information, this Quarterly Report on Form 10-Q (this “Quarterly Report”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  The forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in such forward looking statements.  Factors that might cause such a difference include, but are not limited to, those discussed in the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”  Readers are cautioned not to place undue reliance on these forward looking statements, which reflect management’s opinions only as of the date thereof. 

In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “projects,” “potential,” “proposed,” “intended” or “continue” or the negative of these terms or other comparable terminology. You should read statements that contain these words carefully, because they discuss our expectations about our future operating results or our future financial condition or state other forward-looking information. Although we believe that the expectations reflected in the forward looking statements are reasonable, we cannot guarantee future results, growth rates, and levels of activity, performance or achievements. There may be events in the future that we are not able to accurately predict or control.

All forward-looking statements included in this Quarterly Report are based on information available to us on the date of this Quarterly Report.  Except to the extent required by applicable laws or rules, we undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements contained throughout this Quarterly Report.

PART I - FINANCIAL INFORMATION

TOUCHIT TECHNOLOGIES, INC

REVIEWED FINANCIAL STATEMENTS

(Unaudited)

June 30 2012

and

Comparative Periods

Edward Richardson Jr., CPA

15565 Northland Suite 508 West

Southfield, MI. 48075

To the Board of Directors

TouchIT Technologies, Inc.

100 West Beaver Road

Troy, MI.

I have reviewed the accompanying balance sheet of TouchIT Technologies, Inc. as of June 30, 2012, and the related statements of income and retained earnings and cash flows for the period then ended, and the accompanying supplementary information, which is presented only for supplementary analysis purposes, in accordance with the standards of the Public Company Accounting Oversight Board (United States). All information included is the representation of the Board of Directors of TouchIT Technologies.

A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an examination in accordance with US Generally Accepted Accounting Principles (“US GAAP”) standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, I do not express such an opinion.

Based on my review, I am not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with US GAAP standards.

My review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the financial statements in order for them to be in conformity with US GAAP. The information in the accompanying statements and schedules is presented only for supplementary analysis purposes. Such information has been subject to the inquiry and analytical procedures applied in the review of the basic financial statements, and I am not aware of any material medications that should be made thereto.

/S/ Edward Richardson Jr., CPA

July 22, 2012

-2-

TOUCHIT TECHNOLOGIES INC
BALANCE SHEET
FOR THE PERIODS ENDED 30 JUNE 2012 & 2011 AND YEARS ENDED 31 DECEMBER 2011 & 2010
(Amounts expressed in US Dollars (USD) in full unless otherwise indicated)
CURRENT ASSETS	30/06/2012			31/12/2011			30/06/2011			31/12/2010
Cash and cash equivalents		15,584			70,289			1,239			50,556
Trade receivables, net		122,194			240,867			5,060			705,225
Due from related parties		-			-			655,135			863,395
Due from Shareholders		-			-			41,955			50,585
Inventories		32,419			55,689			571,586			365,643
Other current assets								4,223			1,106
Total current assets		170,196			366,845			1,279,198			2,036,510
NON CURRENT ASSETS
Property, plant and equipment,net		2,032			1,027			59,530			64,495
Intangible assets, net					-			18,426			25,145
Rights					-			-			-
Other non current assets		400,000			-			12,763			3,555
Total non current assets		402,032			1,027			90,719			93,195
TOTAL ASSETS		572,228			367,872			1,369,917			2,129,705
CURRENT LIABILITIES
Borrowings		-			-			-			2,351
Trade payables		478,171			181,984			104,721			124,745
Due to shareholders		-			-			188,293			47,257
Due to related parties		-			265,318			878,822			1,145,992
Other current liabilities		47,260			27,390			68,463			73,233
Total current liabilities		525,431			474,692			1,240,299			1,393,578
NON CURRENT LIABILITIES
Borrowings		71,841			250,000			-			-
Employee termination benefits		-			-			-			-
Reserve for retirement pay		-			-			-			1,842
Share purchase advances		-			-			750,000			750,000
Total non current liabilities		71,841			250,000			751,078			751,842
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Share capital		544,303			127,570			127,570			127,570
Retained earnings		(520,454	)		(137,698	)		(143,285	)		(308,463	)
Net income / (loss) for the period		(48,893	)		(346,692	)		(605,745	)		173,899
Total shareholders’ equity		(25,044	)		(356,820	)		(621,460	)		(7,004	)
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY		572,228			367,872			1,369,917			3,138,416

-3-

TOUCHIT TECHNOLOGIES INC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIODS ENDED 30 JUNE 2012 & 2011 AND YEARS ENDED 31 DECEMBER 2011 & 2010
(Amounts expressed in US Dollars (USD) in full unless otherwise indicated)
	30/06/2012			31/12/2011			30/06/2011			31/12/2010
NET SALES		505,685			1,595,943			914,867			3,577,881
COST OF SALES		353,002			(1,341,374	)		(832,401	)		(2,502,037	)
Gross profit		152,683			254,569			82,466			1,075,844
MARKETING AND SELLING EXPENSE		37,458			(578,887	)		(427,851	)		(504,329	)
GENERAL AND ADMINISTRATIVE  EXPENSES		165,317			(316,528	)		(123,057	)		(479,064	)
Profit from operations		(50,092	)		(640,847	)		(468,442	)		92,451
OTHER INCOME AND EXPENSES,net		1,200			294,154			(46,344	)		24,094
FINANCIAL INCOME AND EXPENSES, net		--			--			(28,433	)		(8,294	)
Profit Loss before taxation and currency translation gain/(loss)		(48,892	)		(346,692	)		(605,745	)		60,063
TAXATION CHARGE		--			--			--			--
Taxation current		--			--			--			--
Deferred		--			--			--			--
CURRENCY TRANSLATION GAIN/(LOSS)		--			--			--			60,063
Net income/(loss)  for the year		(48,892	)		(346,692	)		(605,745	)		105,115
OTHER COMPREHENSIVE INCOME		--			--			--			--
Total comprehensive income		(48,892	)		(346,692	)		(605,745	)		165,178

-4-

TOUCHIT TECHNOLOGIES INC
STATEMENT OF CASH FLOW
FOR THE PERIODS ENDED 30 JUNE 2012 & 2011 AND YEARS ENDED 31 DECEMBER 2011 & 2010
(Amounts expressed in US Dollars (USD) in full unless otherwise indicated)
	30/06/2012			31/12/2011			30/06/2011			31/12/2010
CASH FLOWS FROM OPERATING  ACTIVITIES
Net income		(48,892	)		(346,692	)		(605,745	)		165,178
Prior Period Adjustments		(436,865	)
Adjustments to reconcile net income to net cash provided					6,615			--			--
By operating activities:
Depreciation and amortisation		--			--			14,357			17,516
Provision for employee benefit		--			--			(764	)		801
Changes in operating assets and liabilities
Trade receivables, net		118,674			1,378,337			700,165			(430,428	)
Due from shareholders		--			--			1,047			(773,544	)
Due from related parties		--			--			215,844			--
Inventories		23,270			309,953			(205,944	)		(17,620	)
Other current assets		--			1,106			(3,117	)		98,467
Other non current assets		--			--			(3,117	)		331
Trade payables		30,869			322,557			(7,640	)		54,126
Due to shareholders		--			--			45,912			54,413
Due to related parties		--			--			(184,430	)		392,276
Other current liabilities		19,870			(1,241,442	)		(4,770	)		(47,386	)
Share Purchase Advances					--			--			750,000
Net cash generated from (used for)  operating activities		(293,074	)		430,434			(31,721	)		67,197
CASH FLOWS FROM FINANCING ACTIVITIES
Increase/(decrease) in short-term borrowings		--			--			(2,351	)		(8,931	)
Increase/(decrease) in long-term  borrowings		238,574			(501,842	)		--			--
Dividends paid		--			--			--			--
Net cash (used for) provided from  financing activities		238,574			(501,842	)		(2,351	)		(8,931	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment and		(205	)		91,141			(15,245	)		(62,304	)
intangible assets					--			--			--
Share  capital increase					--			--			--
Net cash used for investing activities		(205	)		91,141			(15,245	)		(62,304	)
NET INCREASE / (DECREASE) IN CASH AND BANKS		(54,705	)		19,733			(49,317	)		(4,289	)
CASH AND BANKS AT BEGINNING OF THE YEAR		70,289			50,556			50,556			54,845
CASH AND BANKS AT END OF THE PERIOD		15,584			70,289			1,239			50,556

-5-

TOUCHIT TECHNOLOGIES INC

  STATEMENT OF CHANGES IN STOCKHOLDER’S EQUITY

FOR THE PERIOD ENDED 30 JUNE 2012

(Amounts expressed in US Dollars (USD) in full unless otherwise indicated)

																				Total
																	Retained			Stockholder's
	Common Stock				Preferred Stock				Paid-in Capital				Treasury Stock				Earnings			Equity
	Shares		Amount		Shares		Amount		Shares		Amount		Shares		Amount		Amount			Amount
Balance at January 1, 2012		55,839,419	$	127,570	$	-	$	-		55,839,419	$	416,733		-	$	-	$	(484,389	)	$	59,914
Net Income		-		-		-		-		-		-		-		-		(48,893	)		(48,893	)
Capital Transactions		18,350,000		-		-		-		18,350,000		-		-		-		(36,065	)		(36,065	)
Prior Period Adjustments		-		-		-		-		-		-		-		-		-			-
Balance at June 30, 2012		74,189,419	$	127,570	$	-	$	-		74,189,419	$	416,733		-	$	-	$	(569,347	)	$	(25,044	)

-6-

TOUCHIT TECHNOLOGIES, INC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED JUNE 30, 2012

1.             OPERATIONS OF THE COMPANY:

General

The Company was established as a form of partnership. In Turkey, partnership is the association of two or people who co-own a business for trading goods under a trade name. The owners have unlimited responsibility to their creditors. This form of company does not have minimum capital requirements. On May 7, 2010, the company became TouchIT Technologies, Inc, a Nevada domiciled company in the United States of America by means of a reverse merge transaction detailed herewith.

Organization

TouchIT Education Technologies Dis Ticaret Killektik Sirketi Andrew Stuart Brabin ve Ortagi formerly RT Lojistik Dis Ticaret Recep Tanisman ve Ortagi (referred as “TouchIT Education”) was established on August 27, 2007 with a “Share Transfer of Open Company and amendment Agreement.”

On May 7, 2010 TouchIT Education, TouchIT Technologies and their stockholders (“TouchIT Turkey”) entered into a Share Exchange Agreement with Hotel Management Systems, Inc. (“Hotel Management”), a Nevada corporation.

Pursuant to the terms of the Share Exchange Agreement, Hotel Management issued a total of 48,330,000 shares of their common stock, par value USD 01 per share (the “Common Stock”) to the shareholders of TouchIT Technologies and TouchIT Education in exchange for the transfer of 100% of the shares of TouchIT Tech and TouchIT Education to Hotel Management. This exchange transaction resulted in TouchIT Technologies and TouchIT Education becoming Hotel Management. The wholly-owned subsidiaries and the stockholders of TouchIT Turkey own approximately 78.93% of the Hotel Management’s issued and outstanding stock, prior to any financing.

Simultaneously with the closing of the Share Exchange Agreement, on May 7, 2010, Management entered into a Subscription Agreement (the “Subscription Agreement”) with investors for the sale of shares up to the value of USD 1,500,000 (the Purchase Price”). As a result USD 750,000 of the Purchase Price was recognized in TouchIT Education’s balance sheet as a future obligation to one of the investors.

The Turkish subsidiaries were officially closed in August 2011.

Average number of employees of the Company as of June 30, 2011 was twelve and June  30, 2012 is five.

Description of Business

TouchIT Technologies, Inc is a designer and manufacturer (via 3rd party) of Interactive Products, namely, Interactive Whiteboards and Interactive LCDs.

-7-

2.             IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS

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

3.             BASIS OF PRESENTATION

The Company maintains its books of account and prepares financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in the United States of America. The Company’s fiscal year ends on December 31.

4.             SIGNIFICANT ACCOUNTING POLICIES:

Cash and Cash Equivalents

Cash equivalents consist of highly liquid investments, which are readily convertible into, cash, with original maturities of three months or less.

Basis of Accounting

The Company uses the accrual basis of accounting.

Accounts Receivable – Recognition of Bad Debt

The Corporation considers accounts receivable to be fully collectible; accordingly, no allowance for doubtful accounts is required. If amounts become uncollectible, they will be charged to operations when that determination is made.

Revenue recognition

The company recognizes revenue when there is persuasive evidence of an arrangement, delivery has occurred or services are rendered, the sales price is terminable, and collectability is reasonably assure. Revenue typically is recognized at the time of shipment. Sales are recorded net of discounts, rebates, and returns.

Inventories

Inventories are stated at the lower of cost or market. Costs, including an appropriate portion of fixed and variable overhead expenses are assigned to inventories by the method most appropriate to the particular class of inventory being valued on the weighted average basis.

-8-

Related Parties

Parties are considered to be related if one parry has the ability to control the other party or exercise significant influence over the other party in making the financial and operating decisions. For the purpose of these financial statements shareholders are referred to as related parities. Related parties are also included individuals that are principle owners, management and members of the Company’s Board of Directors and their families.

Capitalization

All costs incurred over $500 are capitalized. Costs which lengthen the life of a fixed asset are capitalized and depreciated over the extended life of the asset.

Depreciation

Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Assets reviewed for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. If the fair value is less that the carrying amount of the asset, a loss is recognized for the difference.

Taxation

The Company has elected to be treated as a regular “C” corporation; therefore, the corporation , not the stockholders, will pay income taxes.

Retirement Pay Provision

Under Turkish laws, lump sum payments are made to employees retiring or involuntary leaving the Company. Such payments are considered as being part of a defined retirement benefit plan.

The retirement benefit obligation recognized in the balance sheet represents the present value of defined benefit obligation as adjusted for unrecognized actuarial gains and losses.

Leases

Leases are classified as capital leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Comprehensive Income

In June 1997, the Financial Accounting Standard Board issued SFAS No. 130, “Reporting Comprehensive Income.” SFAS No. 130 is effective for years beginning after June 15, 1997. This statement provides reporting standards of comprehensive income and its components and requires that all components of comprehensive income be reported in the financial statements in the period in which they are recognized. The Company has adopted the provisions of SFAS No. 130 in its financial statements and adoption of this statement did not have any effect.

-9-

Financial Instruments

Fair value is defined as the price that would be received to sell an assets or paid to transfer a a liability in an orderly transaction between participants at the measurement date (i.e., an exit price). The guidance includes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority

To unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1 – Quoted, active market prices for identical assets or liabilities. Level 1 also includes U.S. Treasury and federal agency securities and federal agency mortgage-backed securities, which are traded by dealers of brokers in active markets. Valuation are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. The Company did not have any Level 1 assets or liabilities.

Level 2 – Observable inputs other than Level 1, such as quoted market prices for similar assets or liabilities, quoted for identical or similar assets in inactive markets, and model derived valuations in which all significant inputs are observable in active markets. The Company did not have any Level 2 assets or liabilities.

Level 3 – Valuation techniques in which one or more significant inputs are observable in the marketable. The company did not have any Level 3 assets or liabilities.

5.             CASH AND CASH EQUIVALENTS

As of June 30, 2012 and June 30, 2011, cash and cash equivalents comprised were comprised of the following:

		30.06.2012		30.06.2011
Cash on Hand	$	0	$	0
Banks	$	15,584	$	1,239
Total	$	15,584	$	1,239

-10-

6.             TRADE RECEIVABLES

As of June 30, 2012 and June 30, 2011, trade receivables comprised were comprised of the following:

		30.06.2012			30.06.2011
Trade Receivables	$	124,194		$	5,060
Provision for doubtful accounts	$	(2,000	)	$	(0	)
Total	$	122,194		$	5,060

7.             RELATED PARTY TRANSACTIONS:

In the course of conducting its business, the Company conducted various business transactions with related parities on commercial terms.

Related parties and shareholders balances and transactions have been presented as follows:

Due from related parties		30.06.2012		30.06.2011
Emko Yazi Tahalari ve Egitim Gerecleri A.S.	$	0	$	321,494
TouchIT Technologies Koll. Sti.. Ronald George Murphy ve Ortaklari	$	0	$	162,965
Total	$	0	$	655,135

Due from shareholders		30.06.2012		30.06.2011
Andrew Stuart Brabin	$	0	$	41,955
Recep Tanisman	$	0	$	0
Total	$	0	$	41,955

Due to related parties		30.06.2012		30.06.2011
Kamron, Inc.	$	175,913	$	94,427
ASB Trading	$	148, 586	$	64,123
Emko Yazi Tahalari ve Egitim Gerecleri A.S.	$	0	$	339,542
TouchIT Education Koll. Sti	$	0	$	468,965
International RT	$	0	$	12,000
Other	$	0	$	36,089
Total	$	324,499	$	1,014,876

Due to Shareholders		30.06.2012		30.06.2011
Total	$	0	$	188,293

-11-

Major purchases from related parties		30.06.2012		30.06.2011
TouchIT Technologies Koll Sti	$	0	$	58,451
TouchIT Education Koll Sti	$	0	$	152,822
Emko Yazi Tahalari ve Egitim Gerecleri A.S	$	0	$	139,908
Total	$	0	$	351,181

Major sales to related parties		30.06.2012		30.06.2011
Emko Yazi Tahalari ve Egitim Gerecleri A.S	$	0	$	102,290
TouchIT Technologies Koll. Sti	$	0	$	152,822
TouchIT Education Koll Sti	$	0	$	58,451
TouchIT Technologies USA LLC	$	0	$	66 622
Total	$	0	$	380,185

Service provided by		30.06.2012		30.06.2011
Kamron, Inc.	$	175,913	$	98,991
Andrew Stuart Brabin	$	148,586	$	0
ASB Trading	$	0	$	68,987
Other	$	0	$	36,372
Total	$	324,499	$	204,350

8.             INVENTORIES

		30.06.2012		30.31.2011
Trade goods	$	32,419	$	571,586
Total	$	32,419	$	571,586

9.             OTHER CURRENT ASSETS

As of June 30, 2012 and June 30, 2011, other receivables comprised of the following:

		30.06.2012		30.06.2011
Prepaid Expense	$	0	$	4,223
Total	$	0	$	4,223

-12-

10.           NON-CURRENT ASSETS

As of June 30, 2012 and June 30, 2011,  non-currents comprised of the following:

		30.06.2012		30.06.2011
Fully Reporting Public Shell	$	400,000	$	0
Other	$	0	$	12,763
Total	$	400,000	$	12,763

11.           TRADE PAYABLES

As of June 30, 2012 and June 30, 2011, trade payables were comprised of the following:

		30.06.2012		30.06.2011
Trade payables	$	153,672	$	104,721
Total	$	153,672	$	104,721

12.           OTHER CURRENT LIABILITIES

As of June 30, 2012 and June 30, 2011, other current liabilities of the following:

		30.06.2012		30.06.2011
Social Security & Withheld Taxes Payable	$	10,871	$	0
Due to personnel	$	0	$	0
Accrued Expenses	$	0	$	0
Advances received	$	0	$	0
Other Liabilities	$	36,389	$	68,463
Total	$	47,260	$	68,463

13.           RESERVE FOR EMPLOYMENT TERMINATION BENEFITS

The principal assumption is that the maximum liability for each year of service will increase parallel with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. Consequently, in the accompanying financial statements as at June 30, 2011, the provision has been calculated by estimating the present value of the future probable obligation of the Company arising from the retirement of the employees. The anticipated rate of forfeitures is considered. As the maximum liability is revised semiannually, the maximum amount of TRY 2,623 effective from January 1, 2011 has been taken into consideration in calculation of provision from employment termination benefits (2010: TRY 2,517)

		30.06.2012		30.06.2011
Reserve for Employment Termination	$	0	$	0
Total	$	0	$	0

-13-

14.           CAPITAL STOCK

The issued share capital of the Company is respectively for the period ended at June 30, 2012 and 2011 is comprised of the following:

	30.06.2012		30.06.2011
	Insider		Insider
	Holdings		Holdings
Andrew Stuart Brabin		23,610,000		16,110,000
Ronald George Murphy		23,610,000		16,110,000
Recep Tanisman		0		16,110,000
Total Insider Holdings		47,220,000		48,330,000
Total Outstanding		74,189,419		64,549,419

15.           SALES

The composition of sales by principal for the periods ended June 30, 2012 and 2011 can be summarized as follows:

		30.06.2012		30.06.2011
CleverBoard	$	31,925	$	337,124
Document Camera	$	1,824	$	0
Electronic Parts	$	0	$	416,336
LCD Duo 32"	$	2,998	$	0
LCD Duo 42"	$	15,343	$	0
LCD Duo 55"	$	56,782	$	0
LCD Duo 65"	$	90,561.74	$	0
LCD Duo Pro 55"	$	7,998	$	0
LCD Duo Pro 65"	$	5,999	$	0
Stand IWB (Manual)	$	5,362	$	0
Stand LCD (Man)	$	3,521.25	$	0
Total Tablet	$	2,455	$	5,500
TouchIT Board 50"	$	2,256	$	9,639
TouchIT Board 78"	$	127,862	$	119,122
TouchIT Board 80"	$	53,365	$	39,446
TouchIT Board 90"	$	41,316	$	22,811
TouchIT Fusion 42"	$	4,999	$	0
TouchIT Fusion 55"	$	5,499	$	0
TouchIT Stand	$	675	$	0
Wall Mount 42" 55"	$	645	$	0
Wall Mount 65" to 70"	$	2,985	$	0
Voting	$	0	$	4,738
Other	$	41314.01	$	6,764
Returns	$	0	$	(46,613	)
	$	505,685	$	914,867

-14-

16.          COST OF SALES

The composition of cost of sales by principal for the periods ended June 30, 2012 and 2011 can be summarized as follows:

		30.06.2012		30.06.2011
Purchases	$	353,002	$	832,401
Total	$	353,002	$	832,401

17.          MARKETING AND SELLING EXPENSES

The composition of marketing and selling expenses by principal for the periods ended June 30, 2102 and 2011 are summarized as follows:

		30.06.2012		30.06.2011
Marketing and Selling Expenses	$	37,458	$	427,851
Total	$	37,458	$	427,851

18.          GENERAL AND ADMINISTRACTIVE EXPENSES

The composition of general and administrative expenses by the principal operations for the periods ended June 30, 2012 and 2011 are as follows:

		30.06.2012		30.06.2011
General and Administrative Expenses	$	165,317	$	123,057
Total	$	165,317	$	123,057

-15-

19.          OTHER INCOME AND (EXPENSES), net

The composition of other income and expenses for the years June 30, 2011 and 2012 can be summarized as follows:

		31.06.2012		31.06.2011
Other Income and Expenses	$	1,200	$	(46,344	)
Total	$	1,200	$	(46,344	)

20.          FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Financial risk factors

The Company’s activities expose it to a variety of financial risks, credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets seeks to minimize potential adverse effects on the Company’s financial performance.

Market risk

The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates.

Foreign currency risk management

The Company undertakes certain transactions denominated in foreign currencies. However, the main transaction currency is USD, United States Dollar.

Credit risk management

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a financial loss to the company. The Company has adopted a policy of only dealing with creditworthy counterparties. Theny’s exposure and the credit ratings of it counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

Liquidity risk management

Liquidity risk arises from the fact that the Company may not receive funds from its counterparties at the expected time. This risk is managed by maintaining a balance between continuity of funding and flexibility through the use of overdrafts and trade receivables.

-16-

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and the related notes appearing elsewhere in this Quarterly Report. This discussion and analysis may contain forward-looking statements based on assumptions about our future business. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors.

Forward-Looking Statements

This Quarterly Report contains forward-looking statements. The forward-looking statements are contained principally in, but not limited to, the sections entitled “Management’s Discussion and Analysis or Plan of Operation,” “Business” and those listed in our other Securities and Exchange Commission filings.  Forward-looking statements provide our current expectations or forecasts of future events. Forward-looking statements include statements about our expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Words or phrases such as “anticipate,” “believe,” “continue,” “ongoing,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project” or similar words or phrases, or the negatives of those words or phrases, may identify forward-looking statements, but the absence of these words does not necessarily mean that a statement is not forward-looking.

Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Our actual results could differ materially from those anticipated in forward-looking statements for many reasons. Accordingly, you should not unduly rely on these forward-looking statements, which speak only as of the date of this Report.

Unless required by law, we undertake no obligation to publicly revise any forward-looking statement to reflect circumstances or events after the date of this Report or to reflect the occurrence of unanticipated events. You should, however, review the factors and risks we describe in the reports we will file from time to time with the SEC after the date of this Report.

Management cautions that these statements are qualified by their terms and/or important factors, many of which are outside of our control, and involve a number of risks, uncertainties and other factors that could cause actual results and events to differ materially from the statements made, including, but not limited to, the following:

●        actual or anticipated fluctuations in our quarterly and annual operating results;

●        actual or anticipated product constraints;

●        decreased demand for our products resulting from changes in consumer preferences;

●        product and services announcements by us or our competitors;

●        loss of any of our key executives;

●        regulatory announcements, proceedings or changes;

●        announcements in the touch technology community;

●        competitive product developments;

●        intellectual property and legal developments;

●        mergers or strategic alliances in the touch technology industry;

●        any business combination we may propose or complete;

●        any financing transactions we may propose or complete; or

●        broader industry and market trends unrelated to its performance.

-17-

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements.

Plan of Operation

The ability of our Company to achieve our business objectives is contingent upon our success in raising additional capital until adequate revenues are realized from operations.

We are a manufacturer (via 3rd party contract manufacture) of touch based visual communication products for education and corporate worldwide marketplaces. Our mission is to design and manufacture high quality technology products. We manufacture a large range of touch screen and touch board products to suite all types of application from pen input wireless tablets, to large enameled steel touch-sensitive interactive whiteboards and large interactive Liquid Crystal Displays (“LCD”). Our products stand out from our competition in terms of our design, functionality and price offering.  Our customers seek our products as they provide them with a different point of entry to the market in terms of price, quality of design and margin. Currently, demand for our products is exceeding our ability to supply.

In the past four years, we have designed, manufactured, launched, developed and sold four new products as well as established the business from scratch.

COMPANY OVERVIEW

We manufacture touch-based visual communication products for the education and corporate worldwide marketplaces. Our products stand out from our competition in terms of design, functionality and price offering. Our customers seek our products as they provide them a different point of entry to the market in terms of price, quality of design and margin. 

Our keys to success are:

1. Establish and maintain working relationships and contractual agreements with distribution and Original Equipment Manufacturer (“OEM”) customers;

2. Increase our profit margin by lowering the import and raw material costs by bulk purchasing from vendors;

3. By increasing our purchasing power, we can increase our stock holding and lowering delivery times to customers thus enabling further sales growth; and

4. Effectively communicate with our current and potential customers, through targeted efforts, our position as a differentiated provider of the highest quality of margin laden touch-based communication products.

Recent Developments

On April 11, 2012, we borrowed Two Hundred Fifty Thousand Dollars ($250,000) (the “Advance”) from Bibby International Trade Finance (the “Lender”) pursuant to a revolving credit facility evidenced by a Master Purchase Agreement with an effective date of April 11, 2012 (the “MPA”).

The MPA evidences a revolving credit facility for the purchase of the Company’s accounts receivable up to the principal amount of $250,000, which subject to Lender approval, may be increased. The outstanding principal amount is due on April 11, 2013.

The Advance is secured by, among other things, (i) the MPA made by and between our Company and the Lender pursuant to which the Borrower has granted a security interest in all of the Borrower's assets to the Lender (the "Security Agreement"), (ii) a personal guaranty and validity guaranty executed by Andrew Brabin, Chief Executive Officer of our Company.

The MPA also includes customary representations and warranties and affirmative and negative covenants, including, among others, payment of certain customary fees and expenses, covenants relating to financial reporting, maintenance of property and insurance, incurrence of liens and/or other indebtedness. The MPA also contains customary provisions for events of default, remedies in circumstances of default, required notices, governing law and jurisdiction of governance.

-18-

We have now completed the development and the establishment of a production line in Taiwan for a new range of Interactive LCD products. These products include Interactive LCDs, with and without an embedded PC in sizes from 32” to 82”. The unique feature for the range of LCDs is that they do not require a driver to be installed, nor do they require any form of calibration by the user. These are true plug and play devices. All of these products are full high definition and touch-based and include options of multiple input “multi-touch”. We have also launched the TouchIT Fusion which is six interactive products in one. An Interactive LCD, and Interactive Easel and an Interactive Table. This is a revolutionary product as it takes us into new group collaboration markets.

We have seeded units into the United States, Australia and the Middle East for the new LCD product line. The company has received excellent feedback on these models and Management expects that by Quarter 4 2012, the LCD range will be 40% of revenue. The LCD range represents a higher ticket item which will impact revenues and also presents a greater margin opportunity which Management believes will have a positive impact on profits.

We have continued our efforts of expanding our product line through the K thru 12 markets as well as the higher Educational market. We are working on opportunities in Pennsylvania, Michigan, Mississippi, and higher educational institutions in Upstate NY and NJ. 

We have expanded our reseller base with Demco, PCMall.gov, Cascade, US Markerboard and look to expand further into the Canadian and South American marketplaces with several interested parties looking at the TouchIT product lines.

We have had additional interest from the US government on our interactive boards and Interactive LCD. Subsequently, the US Government has purchased sample units of the new TouchIT LCD Duo.

We have targeted the retail marketplace and partnered with the Sales and Marketing Team, Berberian Associates Group covering New England, Florida, Midwest and the South in order to take TouchIT Technologies' product line to the retail, online, educational and enterprise channels. Established for over 30 years, Berberian Associates have a wealth of experience in Sales and Marketing of technology products. They represent a host of brands and have the necessary infrastructure to help grow businesses. Berberian Associates completed sales training on the products and began the product introductions to some of the largest retailers in the USA. Companies that have expressed initial interest are Tech Depot, Tiger Direct and Sam’s Club. We have singed initial vendor agreements with Costco and Sam’s Club. Sam’s Club are currently uploading the products into their online portfolio ready for resale in Q3 2012.

We have signed a vendor agreement with Office Max in the United States of America. Office Max is currently undergoing a training program and the product line is being loaded into their website. We expect Office Max to begin selling the products in September 2012. We have also committed to being in the Office Max Maxi Catalogue which is released in Q4 2012 ready for 2013.

We entered the Australian market place by partnering with Ingram Micro PTY late in 2011. Ingram Micro is currently working on several large projects which encompass both the Interactive Whiteboard and the LCD product lines. Through one of the company’s resellers, our products have been chosen for the Western Australian Government Supply Contract for the next four years. Procurement from which begins in September 2012. This includes both the TouchIT Board and the TouchIT LCD Duo range.

We have signed a new distribution partner for the Italian market place, Satnet SRL. Satnet have now received their initial product and are beginning to sell into the Italian Market.

We have continued our expansion into the Middle East and are currently tendering our product in various government and private tenders. The outcomes of which we expect to be received before the end of calendar year 2012.

We continue to grow in the South African market. We officially launched the TouchIT LCD Duo range of LCD products in July and reseller training will take place in September 2012 in Johannesburg.

We have developed during Q2 a new product called TouchIT WebCast. This product is at final prototype stage and is expected to be launch 1st September 2012 in Europe, with a World-Wide roll-out before the end of the year. TouchIT WebCast is a media presentation system that allows you to stream your synchronized multimedia and video presentations over the Internet from a single location, a lecture theater or boardroom for example. You can then make the presentations available to multiple viewers on cross platform devices either live or on demand anywhere in the world. TouchIT WebCast is a combination of hardware and software that when used in conjunction with our cloud storage and streaming services, allows you to capture, stream and store lectures, training presentations or corporate updates for example.

-19-

We will generate revenue from the sale of the Recorder Box, the Cloud Services Package and the Accessories. The accessories are still being finalized and one will be the HD Camera as well as a lapel microphone to enable the Company to offer the complete package. The Cloud Services are an annual subscription so enables the company to have a reoccurring revenue model which we have not had before.

Last, we have undertaken and completed significant research and development of new technologies for a low cost interactive whiteboard. We have launched for the purpose of low cost tenders an Electromagnetic Interactive Whiteboard. This is a low cost product that will enable the Company to compete in large tenders that are particularly price sensitive in markets such as the Middle East.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The accompanying financial statements include the financial statements of TouchIT Tech KS and TouchIT Ed. Although not significant, it should be noted that inter-company transactions and balances do exist and have not been consolidated. TouchIT Tech KS and TouchIT Ed together are also referred to as the “Company.”

This management's discussion and analysis of our financial condition and results of operations are based on the financial statements of both TouchIT Tech and TouchIT Ed, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported net sales and expenses during the reporting periods. On an ongoing basis, we will evaluate these estimates and assumptions. We base our estimates on historical experience and on various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

We believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating this management discussion and analysis:

Basis of presentation financial statements:

Our Company maintains its books of account and prepares its statutory financial statements in accordance with accounting principles in the United States of America and tax legislation. The accompanying financial statements are based on the statutory records, with adjustments and reclassifications, for the purpose of fair presentation in accordance with United States generally accepted accounting principles (“US GAAP”).

There are inter-company transactions that have not been consolidated on these financial statements.

Revenue recognition:

Revenue is measured at the fair value of the consideration received or receivable. Revenue is reduced for customer returns, rebates, and other similar allowances.

Inventories:

Inventories are stated at the lower of cost or net realizable value. Costs, including an appropriate portion of fixed and variable overhead expenses, are assigned to inventories held by the method most appropriate to the particular class of inventory being valued on the weighted average basis. Net realizable value represents the estimated selling price less all estimated costs of completion and costs necessary to deliver service.

-20-

Property, plant and equipment:

Property, plant and equipment are carried at cost less accumulated depreciation and any accumulated impairment losses, if any. Depreciation is charged so as to write off the cost of assets, other than land and construction in progress, over their estimated useful lives, using straight line method. The estimated useful lives, residual values and depreciation method are reviewed at each year end, with the effect of any changes in estimate accounted for on a prospective basis.

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease. The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

The ranges of estimated useful lives are as follows:

-   Machinery and equipments: 2-6 years

-   Motor vehicles: 4 years

-   Furniture, fixtures and office equipments: 4-5 years

Shipping and handling:

Shipping and handling costs related to costs of the raw material purchased is included in cost of revenues.

Research and development costs:

Research and development costs are expensed as incurred. The costs of material and equipment that are acquired or constructed for research and development activities, and have alternative future uses, either in research and development, marketing, or sales, are classified as property and equipment or depreciated over their estimated useful lives.

Company reporting year end:

We use a calendar year as our fiscal year ending December 31.

RESULTS OF OPERATIONS

TOUCHIT TECHNOLOGIES, INC STATEMENTS OF COMPREHENSIVE INCOME

FOR QUARTER ENDED JUNE 30, 2012 & 2011

(Amounts expressed in US Dollars (USD) in full unless otherwise indicated)

	30/06/2012			30/06/2011
NET SALES		505,685			914,867
COST OF SALES		353,002			(832,401	)
Gross profit		152,683			82,466
MARKETING AND SELLING EXPENSE		37,458			(427,851	)
GENERAL AND ADMINISTRATIVE  EXPENSES		165,317			(123,057	)
Profit from operations		(50,092	)		(468,442	)
OTHER INCOME AND EXPENSES,net		1,200			(46,344	)
FINANCIAL INCOME AND EXPENSES, net		--			(28,433	)
Profit Loss before taxation and currency translation gain/(loss)		(48,892	)		(605,745	)
TAXATION CHARGE		--			--
Taxation current		--			--
Deferred		--			--
CURRENCY TRANSLATION GAIN/(LOSS)		--			--
Net income/(loss)  for the year		(48,892	)		(605,745	)
OTHER COMPREHENSIVE INCOME		--			--
Total comprehensive income		(48,892	)		(605,745	)

-21-

NET SALES (REVENUE) – For the first six months of the year, quarter ended June 30, 2012, as compared to the six months ended June 30, 2011, revenue has decreased by 45% or by $409,182 from $914,867 to $505,685. This decrease can be attributed firstly, to a slow down in the market due to uncertain budgetary commitments from certain of our customers. Our going forward sales activity reflects our management’s plan of increasing focus on the development of recurring business in existing and new markets for the new Interactive LCD Line. We are also looking to break into the retail market (Business to Business Divisions) of some of the larger retailers in the USA. The introduction of the TouchIT WebCast product in Q3 2012 will also add reoccurring sales revenue to the Company. Our management does anticipate that revenues will continue to grow for the balance of the year due to the LCD product line which represents a much larger value ticket item which will drive revenues higher.

GROSS PROFIT – For the first six months of the year, quarter ended June 30, 2012, as compared to the six months ended June 30, 2011, gross profit has increased by $70,217 from $82,466 to $152,683. This is primarily due to the restructuring of the business over the last three quarters and the closure of the Turkish manufacturing facilities. Our management does anticipate gross profits to continue to rise for the balance of the year.

OPERATIONAL PROFIT – For the first six months of the year, quarter ended June 30, 2012, as compared to the six months ended June 30, 2011, operational profit has increased from $(123,057) to $(50,092) an increase of $418,350. This can be attributed to the Management’s focus on reducing overhead costs to maximize profitability when revenues increase.

	30/06/2012			30/06/2012
MARKETING AND SELLING EXPENSE	$	37,458		$	427,851
As a percentage of revenue		7	%		47	%
GENERAL AND ADMINISTRATIVE EXPENSES	$	165,317		$	123,057
As a percentage of revenue		33	%		4	%

NET INCOME FOR THE PERIOD – For the first six months of the year, quarter ended June 30, 2012, as compared to the six months ended June 30, 2011, NET income for the period has increased by $556,853 from $(605,745) to $(48,892). This can be attributed to the Management’s focus on reducing overhead costs to maximize profitability when revenues increase.

-22-

TOUCHIT TECHNOLOGIES, INC BALANCE SHEET AT JUNE 30, 2012 & 2011

(Amounts expressed in US Dollars (USD) in full unless otherwise indicated)

CURRENT ASSETS	30/06/2012			30/06/2011
Cash and cash equivalents		15,584			1,239
Trade receivables, net		122,194			5,060
Due from related parties		-			655,135
Due from Shareholders		-			41,955
Inventories		32,419			571,586
Other current assets					4,223
Total current assets		170,196			1,279,198
NON CURRENT ASSETS
Property, plant and equipment,net		2,032			59,530
Intangible assets, net					18,426
Rights					-
Other non current assets		400,000			12,763
Total non current assets		402,032			90,719
TOTAL ASSETS		572,228			1,369,917
CURRENT LIABILITIES
Borrowings		-			-
Trade payables		143,672			104,721
Due to shareholders		-			188,293
Due to related parties		324,499			878,822
Other current liabilities		47,260			68,463
Total current liabilities		525,431			1,240,299
NON CURRENT LIABILITIES
Borrowings		71,841			-
Employee termination benefits		-			-
Reserve for retirement pay		-			-
Share purchase advances		-			750,000
Total non current liabilities		71,841			751,078
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Share capital		544,303			127,570
Retained earnings		(520,454	)		(143,285	)
Net income / (loss) for the period		(48,893	)		(605,745	)
Total shareholders’ equity		(25,044	)		(621,460	)
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY		572,228			1,369,917

-23-

CURRENT ASSETS – For the first six months of the year, quarter ended June 30, 2012, as compared to the six months ended June 30, 2011, total current assets have decreased by 1,109,002 or 87%. This decrease is due to a decrease in its inventory holding moving to a ‘just in time’ supply rather than overstocking which in turn helps cash flow. Monies owed from related parties and from shareholders has also decreased representing a reduction in assets of $697,090

NON-CURRENT ASSETS – For the first six months of the year, quarter ended June 30, 2012, as compared to the six months ended June 30, 2011, total non-current assets have increased by $311,313. This is mainly due to the recognition of the value of the Full Reporting Public Shell on the Company’s balance sheet.

TOTAL ASSETS – For the first six months of the year, quarter ended June 30, 2012, as compared to the six months ended June 30, 2011, total assets have decreased by $797,689 from $1,369,917 to $572,228. The reason for the decrease in assets can be attributed to the decrease dues from related parties and shareholders and the move of production from Turkey to Taiwan.

CURRENT LIABILITIES – For the first six months of the year, quarter ended June 30, 2012, as compared to the six months ended June 30, 2011, total current liabilities have decreased by $714,868 from $1,240,299 to $525,431, a 58% decrease. Trade payables have increased by 27% or $38,951, which can be attributed to the trade credit that is being offered to the Company from the LCD supplier.

NON-CURRENT LIABILITIES - For the first six months of the year, quarter ended June 30, 2012, as compared to the six months ended June 30, 2011 they have decreased by $679,237 from $751,078 to $71,841. This can be attributed to the Share Purchase Advance brought forward on TouchIT Education’s balance sheet not being shown on TouchIT Technologies Inc now the subsidiary has been closed.

-24-

TOUCHIT TECHNOLOGIES, INC STATEMENT OF CASH FLOW FOR QUARTERS ENDED

JUNE 30, 2012 & 2011

(Amounts expressed in US Dollars (USD) in full unless otherwise indicated)

	30/06/2012			30/06/2011
CASH FLOWS FROM OPERATING  ACTIVITIES
Net income		(48,892	)		(605,745	)
Prior Period Adjustments		(436,865	)
Adjustments to reconcile net income to net cash provided					--
By operating activities:
Depreciation and amortisation		--			14,357
Provision for employee benefit		--			(764	)
Changes in operating assets and liabilities
Trade receivables, net		118,674			700,165
Due from shareholders		--			1,047
Due from related parties		--			215,844
Inventories		23,270			(205,944	)
Other current assets		--			(3,117	)
Other non current assets		--			(3,117	)
Trade payables		30,869			(7,640	)
Due to shareholders		--			45,912
Due to related parties		--			(184,430	)
Other current liabilities		19,870			(4,770	)
Share Purchase Advances					--
Net cash generated from (used for)  operating activities		(293,074	)		(31,721	)
CASH FLOWS FROM FINANCING ACTIVITIES
Increase/(decrease) in short-term borrowings		--			(2,351	)
Increase/(decrease) in long-term  borrowings		238,574			--
Dividends paid		--			--
Net cash (used for) provided from  financing activities		238,574			(2,351	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment and		(205	)		(15,245	)
intangible assets					--
Share  capital increase					--
Net cash used for investing activities		(205	)		(15,245	)
NET INCREASE / (DECREASE) IN CASH AND BANKS		(54,705	)		(49,317	)
CASH AND BANKS AT BEGINNING OF THE YEAR		70,289			50,556
CASH AND BANKS AT END OF THE PERIOD		15,584			1,239

-25-

NET INCOME FOR THE PERIOD – For the first six months of the year, quarter ended June 30, 2012, as compared to the six months ended June 30, 2011, NET income for the period has increased by $556,853 from $(605,745) to $(48,892). This can be attributed to the Management’s focus on reducing overhead costs to maximize profitability when revenues increase.

NET CASH GENERATED FOR OPERATING ACTIVITIES – For the first six months of the year, quarter ended June 30, 2012, as compared to the six months ended June 30, 2011, NET cash generated for operating activities was $(293,074) compared to $(31,721) which is an increase of $261,353. This can be attributed primarily in the decrease of accrued liabilities which were cancelled following the closure of the Turkish Subsidiaries and a decrease in trade receivables.

Cash flow in general has improved as we make use of the Credit Facility from our Lender. Our management expects to utilize the facility to its full extent as our business grows.

CASH FLOW FROM FINANCING ACTIVITES – For the first six months of the year, quarter ended June 30, 2012, as compared to the six months ended June 30, 2011, cash flow from financing activities was $238,574 compared to $(2,351) at June 30, 2011. This is due to an increase in long term borrowings.

CASH POSITION. There was a NET decrease in the cash and cash equivalents of $66,645 from the beginning of the period through June 30, 2012. This change in cash position can be attributed to being normal in course of regular business We generally pay our suppliers on 30 day terms.

Item 3.   Quantitative and Qualitative Disclosures About Market Risk.

We are a “smaller reporting company” (as defined by Rule 12b-2 of the Exchange Act) and are not required to provide the information required under this item.

 Item 4.  Controls and Procedures.

(a) Disclosure Controls and Procedures

Regulations under the Securities Exchange Act of 1934 require public companies to maintain “disclosure controls and procedures,” which are defined to mean a company’s controls and other procedures that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms.

We conducted an evaluation, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the period covered by this Report.  Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of June 30, 2012, our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses described below.

-26-

A material weakness is a control deficiency (within the meaning of the Public Company Accounting Oversight Board (PCAOB) Auditing Standard No. 2) or combination of control deficiencies that result in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected.  Management has identified the following six material weaknesses in our disclosure controls and procedures:

1.           We do not have written documentation of our internal control policies and procedures.  Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act.  Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

2.           We do not have sufficient segregation of duties within accounting functions, which is a basic internal control.  Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible.  However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals.  Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

3.           We do not have review and supervision procedures for financial reporting functions. The review and supervision function of internal control relates to the accuracy of financial information reported. The failure to review and supervise could allow the reporting of inaccurate or incomplete financial information. Due to our size and nature, review and supervision may not always be possible or economically feasible.  Management evaluated the impact of our significant number of audit adjustments and has concluded that the control deficiency that resulted represented a material weakness.

To address these material weaknesses, management performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented.

(b) Changes in internal control over financial reporting

During the six months ended June 30, 2012, our Company has not made any changes to internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.           Legal Proceedings.

We are currently not aware of any such legal proceedings or claims that will have, individually or in the aggregate, a material adverse affect on its business, financial condition or operating results.

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

On May 7, 2010, we entered into a Share Exchange Agreement with TouchIT Tech KS, the stockholders of TouchIT Tech KS, TouchIT, and the stockholders of Touch Ed, pursuant to which we issued 48,330,000 shares of our Common Stock to the shareholders of TouchIT Tech KS and TouchIT Ed in exchange for all shares held by these shareholders in TouchIT Tech KS and TouchIT Ed.   The issuance of these shares was exempted from registration pursuant to Section 4(2) of the Securities Act of 1933. The terms of the Share Exchange Agreement are discussed more fully in Item 1.01 and 2.01 on Form 8-K, filed with the SEC on May 12, 2010.

In connection with the closing of the Share Exchange Agreement, on May 7, 2010, we entered into a Subscription Agreement with certain investors for the sale of up to $1,500,000 of principal amount convertible promissory notes of the Company convertible into up to 6,000,000 shares of our Common Stock and share purchase warrants to purchase up to 6,000,000 shares of our Common Stock.  The terms of the Subscription Agreement, Notes and Warrants (including the terms of conversion and/or exercise of the Notes and Warrants) are discussed more fully in Item 1.01 and 2.01 on Form 8-K, filed with the SEC on May 12, 2010.   The issuance of these securities was exempted from registration pursuant to Section 4(2) of the Securities Act of 1933.

-27-

Item 6.            Exhibits

(a)  Exhibits

Exhibit Number Description of Exhibit

31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a), promulgated under the Securities and Exchange Act of 1934, as amended.
31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d 14(a), promulgated under the Securities and Exchange Act of 1934, as amended.
32.1	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Principal Executive Officer).
101.INS	tucn-20120630.xml XBRL Instance Document
101.SCH	tucn-20120630.xsd XBRL Taxonomy Extension Schema Document
101.CAL	tucn-20120630_cal.xml XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	tucn-20120630_def.xml XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	tucn-20120630_lab.xml XBRL Taxonomy Extension Labels Linkbase Document
101.PRE	tucn-20120630_pre.xml XBRL Taxonomy Extension Presentation Linkbase Document

-28-

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.

TouchIT Technologies, Inc.
By:	/s/ Andrew Brabin
	Andrew Brabin Chief Executive Officer Dated: August 1st 2012

-29-

EX-31.1

Exhibit 31.1

CERTIFICATION

Pursuant to 18 U.S.C. 1350

(Section 302 of the Sarbanes-Oxley Act of 2002)

I,  Ronald Murphy, certify that:

1.           I have reviewed this Quarterly Report on Form 10-Q of TouchIT Technologies, Inc.;

2.           Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report;

3.           Based on my knowledge, the financial statements, and other financial information included in this Quarterly Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Quarterly Report;

4.           The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and we have:

(a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Quarterly Report is being prepared;

(b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)           Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Quarterly Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Quarterly Report based on such evaluation; and

(d)           Disclosed in this Quarterly Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.           The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and to the audit committee of Registrant’s board of directors (or persons performing the equivalent function):

(a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date:  August 1st 2012	By:	/s/ Ronald Murphy
		Name: Ronald Murphy
		Title:  Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

Pursuant to 18 U.S.C. 1350

(Section 302 of the Sarbanes-Oxley Act of 2002)

I, Andrew Brabin, certify that:

 1.           I have reviewed this Quarterly Report on Form 10-Q of TouchIT Technologies, Inc.;

2.           Based on my knowledge, this Quarterly Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report;

3.           Based on my knowledge, the financial statements, and other financial information included in this Quarterly Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Quarterly Report;

4.           The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and we have:

(a)           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Quarterly Report is being prepared;

(b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)           Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this Quarterly Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Quarterly Report based on such evaluation; and

(d)           Disclosed in this Quarterly Report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.           The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and to the audit committee of Registrant’s board of directors (or persons performing the equivalent function):

(a)           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b)           Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: August 1st 2012	By:	/s/ Andrew Brabin
		Name: Andrew Brabin
		Title:  Chief Executive Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

Pursuant to 18 U.S.C. 1350

(Section 906 of the Sarbanes-Oxley Act of 2002)

In connection with the Quarterly Report on Form 10-Q of TouchIT Technologies, Inc. (the “Company”) for the period ended June 30, 2012, as filed with the Securities and Exchange Commission (the “Report”) I, Andrew Brabin, Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 1st 2012	By:	/s/ Andrew Brabin
		Name: Andrew Brabin
		Title:  Chief Financial Officer

EX-32.2

Exhibit 32.2

CERTIFICATION

Pursuant to 18 U.S.C. 1350

(Section 906 of the Sarbanes-Oxley Act of 2002)

In connection with the Quarterly Report on Form 10-Q of TouchIT Technologies, Inc. (the “Company”) for the quarter ended June 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Andrew Brabin, Chief Executive Officer of the Company, hereby certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 1st 2012	By:	/s/ Andrew Brabin
		Name: Andrew Brabin
		Title:  Chief Executive Officer

XML

Marketing and Selling Expenses (Tables)

6 Months Ended

Jun. 30, 2012

Marketing and Selling Expenses [Abstract]

Composition of marketing and selling expenses

		30.06.2012		30.06.2011
Marketing and Selling Expenses	$	37,458	$	427,851
Total	$	37,458	$	427,851

XML

Capital Stock (Details)	Jun. 30, 2012	Jun. 30, 2011	May 07, 2010
Summary of share capital issued
Total Insider Holdings	47,220,000	48,330,000	48,330,000
Total Insider Holdings, Outstanding	74,189,419	64,549,419
Andrew Stuart Brabin [Member]
Summary of share capital issued
Total Insider Holdings	23,610,000	16,110,000
Ronald George Murphy [Member]
Summary of share capital issued
Total Insider Holdings	23,610,000	16,110,000
Recep Tanisman [Member]
Summary of share capital issued
Total Insider Holdings	0	16,110,000

XML

Other Current Assets (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Other receivables
Prepaid Expense	$ 0		$ 4,223
Total	$ 0	$ 0	$ 4,223	$ 1,106

XML

Sales (Details) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
Composition sales by principal
Total Sales	$ 505,685	$ 914,867	$ 1,595,943	$ 3,577,881
CleverBoard [Member]
Composition sales by principal
Total Sales	31,925	337,124
Document Camera [Member]
Composition sales by principal
Total Sales	1,824	0
Electronic Parts [Member]
Composition sales by principal
Total Sales	0	416,336
LCD Duo 32" [Member]
Composition sales by principal
Total Sales	2,998	0
LCD Duo 42" [Member]
Composition sales by principal
Total Sales	15,343	0
LCD Duo 55" [Member]
Composition sales by principal
Total Sales	56,782	0
LCD Duo 65" [Member]
Composition sales by principal
Total Sales	90,561.74	0
LCD Duo Pro 55" [Member]
Composition sales by principal
Total Sales	7,998	0
LCD Duo Pro 65" [Member]
Composition sales by principal
Total Sales	5,999	0
Stand IWB (Manual) [Member]
Composition sales by principal
Total Sales	5,362	0
Stand LCD (Man) [Member]
Composition sales by principal
Total Sales	3,521.25	0
Total Tablet [Member]
Composition sales by principal
Total Sales	2,455	5,500
TouchIT Board 50" [Member]
Composition sales by principal
Total Sales	2,256	9,639
TouchIT Board 78" [Member]
Composition sales by principal
Total Sales	127,862	119,122
TouchIT Board 80" [Member]
Composition sales by principal
Total Sales	53,365	39,446
TouchIT Board 90" [Member]
Composition sales by principal
Total Sales	41,316	22,811
TouchIT Fusion 42" [Member]
Composition sales by principal
Total Sales	4,999	0
TouchIT Fusion 55" [Member]
Composition sales by principal
Total Sales	5,499	0
TouchIT Stand [Member]
Composition sales by principal
Total Sales	675	0
Wall Mount 42" 55" [Member]
Composition sales by principal
Total Sales	645	0
Wall Mount 65" to 70" [Member]
Composition sales by principal
Total Sales	2,985	0
Voting [Member]
Composition sales by principal
Total Sales	0	4,738
Other [Member]
Composition sales by principal
Total Sales	41,314.01	6,764
Returns [Member]
Composition sales by principal
Total Sales	$ 0	$ (46,613)

XML

Related Party Transactions (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Related parties and shareholders balances and transactions
Due from related parties, Total	$ 0	$ 0	$ 655,135	$ 863,395
Due from shareholders, Total	0	0	41,955	50,585
Due to related parties, Total	0	265,318	878,822	1,145,992
Due to Shareholders, Total	0	0	188,293	47,257
Major purchases from related parties, Total	0		351,181
Major sales to related parties, Total	0		380,185
Service provided by. Total	324,499		204,350
EmkoYazi Tahalari ve Egitim Gerecleri A.S. [Member]
Related parties and shareholders balances and transactions
Due from related parties, Total	0		321,494
Due to related parties, Total	0		339,542
Major purchases from related parties, Total	0		139,908
Major sales to related parties, Total	0		102,290
TouchIT Technologies Koll. Sti.. Ronald George Murphy ve Ortaklari [Member]
Related parties and shareholders balances and transactions
Due from related parties, Total	0		162,965
Andrew Stuart Brabin [Member]
Related parties and shareholders balances and transactions
Due from shareholders, Total	0		41,955
Service provided by. Total	148,586		0
Recep Tanisman [Member]
Related parties and shareholders balances and transactions
Due from shareholders, Total	0		0
Kamron, Inc. [Member]
Related parties and shareholders balances and transactions
Due to related parties, Total	175,913		94,427
Service provided by. Total	175,913		98,991
ASB Trading [Member]
Related parties and shareholders balances and transactions
Due to related parties, Total	148,586		64,123
Service provided by. Total	0		68,987
TouchIT Technologies Koll Sti [Member]
Related parties and shareholders balances and transactions
Major purchases from related parties, Total	0		58,451
Major sales to related parties, Total	0		152,822
TouchIT Education Koll. Sti [Member]
Related parties and shareholders balances and transactions
Due to related parties, Total	0		468,965
Major purchases from related parties, Total	0		152,822
Major sales to related parties, Total	0		58,451
International RT [Member]
Related parties and shareholders balances and transactions
Due to related parties, Total	0		12,000
Other [Member]
Related parties and shareholders balances and transactions
Due to related parties, Total	0		36,089
Service provided by. Total	0		36,372
TouchIT Technologies USA LLC [Member]
Related parties and shareholders balances and transactions
Major sales to related parties, Total	$ 0		$ 66,622

XML

Trade Payables (Tables)

6 Months Ended

Jun. 30, 2012

Trade Payables [Abstract]

Summary of trade payables

		30.06.2012		30.06.2011
Trade payables	$	153,672	$	104,721
Total	$	153,672	$	104,721

XML

Marketing and Selling Expenses (Details) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
Composition of marketing and selling expenses by principal
Marketing and Selling Expenses	$ 37,458	$ 427,851	$ (578,887)	$ (504,329)
Total	$ 37,458	$ 427,851

XML

Financial Risk Management Objectives and Policies

6 Months Ended

Jun. 30, 2012

Financial Risk Management Objectives and Policies [Abstract]

Financial Risk Management Objectives and Policies

20.           FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

Financial risk factors

The Company’s activities expose it to a variety of financial risks, credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets seeks to minimize potential adverse effects on the Company’s financial performance.

Market risk

The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates.

Foreign currency risk management

The Company undertakes certain transactions denominated in foreign currencies. However, the main transaction currency is USD, United States Dollar.

Credit risk management

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in a financial loss to the company. The Company has adopted a policy of only dealing with creditworthy counterparties. Theny’s exposure and the credit ratings of it counterparties are continuously monitored and the aggregate value of transactions concluded is spread amongst approved counterparties.

Liquidity risk management

Liquidity risk arises from the fact that the Company may not receive funds from its counterparties at the expected time. This risk is managed by maintaining a balance between continuity of funding and flexibility through the use of overdrafts and trade receivables.

XML

Trade Payables (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Summary of trade payables
Trade payables	$ 478,171	$ 181,984	$ 104,721	$ 124,745
Total	$ 153,672		$ 104,721

XML

Operations of the Company (Details) (USD $)	1 Months Ended	6 Months Ended
	May 31, 2010	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010	May 07, 2010
Operations of the Company (Textual)
Entity Incorporation, Date Of Incorporation		May 07, 2010
Number of share issued by the Hotel Management		47,220,000	48,330,000			48,330,000
Common stock, par value						$ 0.001
Percentage shares transfer by TouchIT Tech and TouchIT Education to Hotel Management						100.00%
Ownership percentage of equity and outstanding stock						78.93%
Sale of shares, value	$ 1,500,000
Share purchase advances			$ 750,000	$ 0	$ 750,000	$ 750,000
Closing date of subsidiaries			August 2011.
Average number of employees of the Company		5	12

XML

Sales (Tables)

6 Months Ended

Jun. 30, 2012

Sales [Abstract]

Composition of sales By principal

		30.06.2012		30.06.2011
CleverBoard	$	31,925	$	337,124
Document Camera	$	1,824	$	0
Electronic Parts	$	0	$	416,336
LCD Duo 32"	$	2,998	$	0
LCD Duo 42"	$	15,343	$	0
LCD Duo 55"	$	56,782	$	0
LCD Duo 65"	$	90,561.74	$	0
LCD Duo Pro 55"	$	7,998	$	0
LCD Duo Pro 65"	$	5,999	$	0
Stand IWB (Manual)	$	5,362	$	0
Stand LCD (Man)	$	3,521.25	$	0
Total Tablet	$	2,455	$	5,500
TouchIT Board 50"	$	2,256	$	9,639
TouchIT Board 78"	$	127,862	$	119,122
TouchIT Board 80"	$	53,365	$	39,446
TouchIT Board 90"	$	41,316	$	22,811
TouchIT Fusion 42"	$	4,999	$	0
TouchIT Fusion 55"	$	5,499	$	0
TouchIT Stand	$	675	$	0
Wall Mount 42" 55"	$	645	$	0
Wall Mount 65" to 70"	$	2,985	$	0
Voting	$	0	$	4,738
Other	$	41314.01	$	6,764
Returns	$	0	$	(46,613	)
	$	505,685	$	914,867

XML

Reserve for Employment Termination Benefits (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Summary of employment termination benefits
Reserve for Employment Termination	$ 0	$ 0	$ 0	$ 0
Total	$ 0		$ 0

XML

Inventories (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Inventory
Trade goods	$ 32,419		$ 571,586
Total	$ 32,419	$ 55,689	$ 571,586	$ 365,643

XML

Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Significant Accounting Policies

4.             SIGNIFICANT ACCOUNTING POLICIES:

Cash and Cash Equivalents

Cash equivalents consist of highly liquid investments, which are readily convertible into, cash, with original maturities of three months or less.

Basis of Accounting

The Company uses the accrual basis of accounting.

Accounts Receivable – Recognition of Bad Debt

The Corporation considers accounts receivable to be fully collectible; accordingly, no allowance for doubtful accounts is required. If amounts become uncollectible, they will be charged to operations when that determination is made.

Revenue recognition

The company recognizes revenue when there is persuasive evidence of an arrangement, delivery has occurred or services are rendered, the sales price is terminable, and collectability is reasonably assure. Revenue typically is recognized at the time of shipment. Sales are recorded net of discounts, rebates, and returns.

Inventories

Inventories are stated at the lower of cost or market. Costs, including an appropriate portion of fixed and variable overhead expenses are assigned to inventories by the method most appropriate to the particular class of inventory being valued on the weighted average basis.

Related Parties

Parties are considered to be related if one parry has the ability to control the other party or exercise significant influence over the other party in making the financial and operating decisions. For the purpose of these financial statements shareholders are referred to as related parities. Related parties are also included individuals that are principle owners, management and members of the Company’s Board of Directors and their families.

Capitalization

All costs incurred over $500 are capitalized. Costs which lengthen the life of a fixed asset are capitalized and depreciated over the extended life of the asset.

Depreciation

Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Assets reviewed for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. If the fair value is less that the carrying amount of the asset, a loss is recognized for the difference.

Taxation

The Company has elected to be treated as a regular “C” corporation; therefore, the corporation , not the stockholders, will pay income taxes.

Retirement Pay Provision

Under Turkish laws, lump sum payments are made to employees retiring or involuntary leaving the Company. Such payments are considered as being part of a defined retirement benefit plan.

The retirement benefit obligation recognized in the balance sheet represents the present value of defined benefit obligation as adjusted for unrecognized actuarial gains and losses.

Leases

Leases are classified as capital leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Comprehensive Income

In June 1997, the Financial Accounting Standard Board issued SFAS No. 130, “Reporting Comprehensive Income.” SFAS No. 130 is effective for years beginning after June 15, 1997. This statement provides reporting standards of comprehensive income and its components and requires that all components of comprehensive income be reported in the financial statements in the period in which they are recognized. The Company has adopted the provisions of SFAS No. 130 in its financial statements and adoption of this statement did not have any effect.

Financial Instruments

Fair value is defined as the price that would be received to sell an assets or paid to transfer a a liability in an orderly transaction between participants at the measurement date (i.e., an exit price). The guidance includes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority

To unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1 – Quoted, active market prices for identical assets or liabilities. Level 1 also includes U.S. Treasury and federal agency securities and federal agency mortgage-backed securities, which are traded by dealers of brokers in active markets. Valuation are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. The Company did not have any Level 1 assets or liabilities.

Level 2 – Observable inputs other than Level 1, such as quoted market prices for similar assets or liabilities, quoted for identical or similar assets in inactive markets, and model derived valuations in which all significant inputs are observable in active markets. The Company did not have any Level 2 assets or liabilities.

Level 3 – Valuation techniques in which one or more significant inputs are observable in the marketable. The company did not have any Level 3 assets or liabilities.

XML

Significant Accounting Policies (Details) (USD $)	6 Months Ended
	Jun. 30, 2012
Significant Accounting Policies (Textual)
Maturuty period to be considered as cash equivalent	Three months or less.
Capitalized costs	$ 500

XML

Related Party Transactions (Tables)

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Related parties and shareholder's balances and transactions

Due from related parties		30.06.2012		30.06.2011
Emko Yazi Tahalari ve Egitim Gerecleri A.S.	$	0	$	321,494
TouchIT Technologies Koll. Sti.. Ronald George Murphy ve Ortaklari	$	0	$	162,965
Total	$	0	$	655,135

Due from shareholders		30.06.2012		30.06.2011
Andrew Stuart Brabin	$	0	$	41,955
Recep Tanisman	$	0	$	0
Total	$	0	$	41,955

Due to related parties		30.06.2012		30.06.2011
Kamron, Inc.	$	175,913	$	94,427
ASB Trading	$	148, 586	$	64,123
Emko Yazi Tahalari ve Egitim Gerecleri A.S.	$	0	$	339,542
TouchIT Education Koll. Sti	$	0	$	468,965
International RT	$	0	$	12,000
Other	$	0	$	36,089
Total	$	324,499	$	1,014,876

Due to Shareholders		30.06.2012		30.06.2011
Total	$	0	$	188,293

Major purchases from related parties		30.06.2012		30.06.2011
TouchIT Technologies Koll Sti	$	0	$	58,451
TouchIT Education Koll Sti	$	0	$	152,822
Emko Yazi Tahalari ve Egitim Gerecleri A.S	$	0	$	139,908
Total	$	0	$	351,181

Major sales to related parties		30.06.2012		30.06.2011
Emko Yazi Tahalari ve Egitim Gerecleri A.S	$	0	$	102,290
TouchIT Technologies Koll. Sti	$	0	$	152,822
TouchIT Education Koll Sti	$	0	$	58,451
TouchIT Technologies USA LLC	$	0	$	66 622
Total	$	0	$	380,185

Service provided by		30.06.2012		30.06.2011
Kamron, Inc.	$	175,913	$	98,991
Andrew Stuart Brabin	$	148,586	$	0
ASB Trading	$	0	$	68,987
Other	$	0	$	36,372
Total	$	324,499	$	204,350

XML

Trade Receivables (Tables)

6 Months Ended

Jun. 30, 2012

Receivables [Abstract]

Trade receivables

		30.06.2012			30.06.2011
Trade Receivables	$	124,194		$	5,060
Provision for doubtful accounts	$	(2,000	)	$	(0	)
Total	$	122,194		$	5,060

XML

Cost of Sales (Details) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
Composition of cost of sales by principal
Purchases	$ 353,002	$ 832,401
Total	$ 353,002	$ 832,401	$ (1,341,374)	$ (2,502,037)

XML

Cash and Cash Equivalents (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash and cash equivalents
Cash on Hand	$ 0		$ 0
Banks	15,584		1,239
Total	$ 15,584	$ 70,289	$ 1,239	$ 50,556	$ 54,845

XML

Inventories (Tables)

6 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

Inventory

		30.06.2012		30.31.2011
Trade goods	$	32,419	$	571,586
Total	$	32,419	$	571,586

XML

Other Current Assets (Tables)

6 Months Ended

Jun. 30, 2012

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other receivables

		30.06.2012		30.06.2011
Prepaid Expense	$	0	$	4,223
Total	$	0	$	4,223

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Basis of Presentation

3.             BASIS OF PRESENTATION

The Company maintains its books of account and prepares financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in the United States of America. The Company’s fiscal year ends on December 31.

XML

Non-current Assets (Tables)

6 Months Ended

Jun. 30, 2012

Non Current Assets [Abstract]

Summary of non-current assets

		30.06.2012		30.06.2011
Fully Reporting Public Shell	$	400,000	$	0
Other	$	0	$	12,763
Total	$	400,000	$	12,763

XML

General and Administrative Expenses (Tables)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Composition of general and administrative expenses operations

		30.06.2012		30.06.2011
General and Administrative Expenses	$	165,317	$	123,057
Total	$	165,317	$	123,057

XML

Reserve for Employment Termination Benefits (Details Textual) (TRY)	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2011
Reserve for employment termination benefits (Textual)
Maximum amount of liability		2,623
Provision from employment termination benefits	2,517

XML

Balance Sheet (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
CURRENT ASSETS
Cash and cash equivalents	$ 15,584	$ 70,289	$ 1,239	$ 50,556
Trade receivables, net	122,194	240,867	5,060	705,225
Due from related parties	0	0	655,135	863,395
Due from Shareholders	0	0	41,955	50,585
Inventories	32,419	55,689	571,586	365,643
Other current assets	0	0	4,223	1,106
Total current assets	170,196	366,845	1,279,198	2,036,510
NON CURRENT ASSETS
Property, plant and equipment,net	2,032	1,027	59,530	64,495
Intangible assets, net	0	0	18,426	25,145
Rights	0	0	0	0
Other non current assets	400,000	0	12,763	3,555
Total non current assets	402,032	1,027	90,719	93,195
TOTAL ASSETS	572,228	367,872	1,369,917	2,129,705
CURRENT LIABILITIES
Borrowings	0	0	0	2,351
Trade payables	478,171	181,984	104,721	124,745
Due to shareholders	0	0	188,293	47,257
Due to related parties	0	265,318	878,822	1,145,992
Other current liabilities	47,260	27,390	68,463	73,233
Total current liabilities	525,431	474,692	1,240,299	1,393,578
NON CURRENT LIABILITIES
Borrowings	71,841	250,000	0	0
Employee termination benefits	0	0	0	0
Reserve for retirement pay	0	0	0	1,842
Share purchase advances		0	750,000	750,000
Total non current liabilities	71,841	250,000	751,078	751,842
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Share capital	544,303	127,570	127,570	127,570
Retained earnings	(520,454)	(137,698)	(143,285)	(308,463)
Net income / (loss) for the period	(48,893)	(346,692)	(605,745)	173,899
Total shareholders’ equity	(25,044)	59,914	(621,460)	(7,004)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 572,228	$ 367,872	$ 1,369,917	$ 3,138,416

XML

Trade Receivables (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Trade receivables
Trade Receivables	$ 124,194		$ 5,060
Provision for doubtful accounts	(2,000)		0
Total	$ 122,194	$ 240,867	$ 5,060	$ 705,225

XML

Operations of the Company

6 Months Ended

Jun. 30, 2012

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Operations of The Company

1.             OPERATIONS OF THE COMPANY:

General

The Company was established as a form of partnership. In Turkey, partnership is the association of two or people who co-own a business for trading goods under a trade name. The owners have unlimited responsibility to their creditors. This form of company does not have minimum capital requirements. On May 7, 2010, the company became TouchIT Technologies, Inc, a Nevada domiciled company in the United States of America by means of a reverse merge transaction detailed herewith.

Organization

TouchIT Education Technologies Dis Ticaret Killektik Sirketi Andrew Stuart Brabin ve Ortagi formerly RT Lojistik Dis Ticaret Recep Tanisman ve Ortagi (referred as “TouchIT Education”) was established on August 27, 2007 with a “Share Transfer of Open Company and amendment Agreement.”

On May 7, 2010 TouchIT Education, TouchIT Technologies and their stockholders (“TouchIT Turkey”) entered into a Share Exchange Agreement with Hotel Management Systems, Inc. (“Hotel Management”), a Nevada corporation.

Pursuant to the terms of the Share Exchange Agreement, Hotel Management issued a total of 48,330,000 shares of their common stock, par value USD 01 per share (the “Common Stock”) to the shareholders of TouchIT Technologies and TouchIT Education in exchange for the transfer of 100% of the shares of TouchIT Tech and TouchIT Education to Hotel Management. This exchange transaction resulted in TouchIT Technologies and TouchIT Education becoming Hotel Management. The wholly-owned subsidiaries and the stockholders of TouchIT Turkey own approximately 78.93% of the Hotel Management’s issued and outstanding stock, prior to any financing.

Simultaneously with the closing of the Share Exchange Agreement, on May 7, 2010, Management entered into a Subscription Agreement (the “Subscription Agreement”) with investors for the sale of shares up to the value of USD 1,500,000 (the Purchase Price”). As a result USD 750,000 of the Purchase Price was recognized in TouchIT Education’s balance sheet as a future obligation to one of the investors.

The Turkish subsidiaries were officially closed in August 2011.

Average number of employees of the Company as of June 30, 2011 was twelve and June  30, 2012 is five.

Description of Business

TouchIT Technologies, Inc is a designer and manufacturer (via 3rd party) of Interactive Products, namely, Interactive Whiteboards and Interactive LCDs.

XML

Other Income and (Expenses), net (Details) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
Composition of other income and expenses
Other Income and Expenses	$ 1,200	$ (46,344)	$ (294,154)	$ (24,094)
Total	$ 1,200	$ (46,344)

XML

Reserve for Employment Termination Benefits (Tables)

6 Months Ended

Jun. 30, 2012

Compensation and Retirement Disclosure [Abstract]

Summary of employment termination benefits

		30.06.2012		30.06.2011
Reserve for Employment Termination	$	0	$	0
Total	$	0	$	0

XML

Marketing and Selling Expenses

6 Months Ended

Jun. 30, 2012

Marketing and Selling Expenses [Abstract]

Marketing and Selling Expenses

17.           MARKETING AND SELLING EXPENSES

The composition of marketing and selling expenses by principal for the periods ended June 30, 2102 and 2011 are summarized as follows:

		30.06.2012		30.06.2011
Marketing and Selling Expenses	$	37,458	$	427,851
Total	$	37,458	$	427,851

XML

Capital Stock (Tables)

6 Months Ended

Jun. 30, 2012

Equity [Abstract]

Summary of share capital issued

	30.06.2012		30.06.2011
	Insider		Insider
	Holdings		Holdings
Andrew Stuart Brabin		23,610,000		16,110,000
Ronald George Murphy		23,610,000		16,110,000
Recep Tanisman		0		16,110,000
Total Insider Holdings		47,220,000		48,330,000
Total Outstanding		74,189,419		64,549,419

XML

Other Income and (Expenses), net

6 Months Ended

Jun. 30, 2012

Other Income and Expenses [Abstract]

Other Income and Other (Expenses), net

19.           OTHER INCOME AND (EXPENSES), net

The composition of other income and expenses for the years June 30, 2011 and 2012 can be summarized as follows:

		31.06.2012		31.06.2011
Other Income and Expenses	$	1,200	$	(46,344	)
Total	$	1,200	$	(46,344	)

XML

Impact of Recently Issued Accounting Standards

6 Months Ended

Jun. 30, 2012

Impact Of Recently Issued Accounting Standards [Abstract]

Impact of Recently Issued Accounting Standards

2.             IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS

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

XML

Statements of Comprehensive Income (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
Income Statement [Abstract]
NET SALES	$ 505,685	$ 914,867	$ 1,595,943	$ 3,577,881
COST OF SALES	353,002	832,401	(1,341,374)	(2,502,037)
Gross profit	152,683	82,466	254,569	1,075,844
MARKETING AND SELLING EXPENSE	37,458	427,851	(578,887)	(504,329)
GENERAL AND ADMINISTRATIVE EXPENSES	165,317	123,057	(316,528)	(479,064)
Profit from operations	(50,092)	(468,442)	(640,847)	92,451
OTHER INCOME AND EXPENSES,net	(1,200)	46,344	294,154	24,094
FINANCIAL INCOME AND EXPENSES, net	0	(28,433)	0	(8,294)
Profit Loss before taxation and currency translation gain/(loss)	(48,892)	(605,745)	(346,692)	60,063
TAXATION CHARGE
Taxation current	0	0	0	0
Deferred	0	0	0	0
CURRENCY TRANSLATION GAIN/(LOSS)	0	0	0	60,063
Net income/(loss) for the year	(48,892)	(605,745)	(346,692)	165,178
OTHER COMPREHENSIVE INCOME	0	0	0	0
Total comprehensive income	$ (48,892)	$ (605,745)	$ (346,692)	$ 165,178

XML

Other Current Liabilities

6 Months Ended

Jun. 30, 2012

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

12.           OTHER CURRENT LIABILITIES

As of June 30, 2012 and June 30, 2011, other current liabilities of the following:

		30.06.2012		30.06.2011
Social Security & Withheld Taxes Payable	$	10,871	$	0
Due to personnel	$	0	$	0
Accrued Expenses	$	0	$	0
Advances received	$	0	$	0
Other Liabilities	$	36,389	$	68,463
Total	$	47,260	$	68,463

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2012	Aug. 01, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	TouchIT Technologies, Inc.
Entity Central Index Key	0001436229
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		74,189,419

XML

Reserve for Employment Termination Benefits

6 Months Ended

Jun. 30, 2012

Compensation and Retirement Disclosure [Abstract]

Reserve for Employment Termination Benefits

13.           RESERVE FOR EMPLOYMENT TERMINATION BENEFITS

The principal assumption is that the maximum liability for each year of service will increase parallel with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. Consequently, in the accompanying financial statements as at June 30, 2011, the provision has been calculated by estimating the present value of the future probable obligation of the Company arising from the retirement of the employees. The anticipated rate of forfeitures is considered. As the maximum liability is revised semiannually, the maximum amount of TRY 2,623 effective from January 1, 2011 has been taken into consideration in calculation of provision from employment termination benefits (2010: TRY 2,517)

		30.06.2012		30.06.2011
Reserve for Employment Termination	$	0	$	0
Total	$	0	$	0

XML

Statement of Cash Flows (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ (48,892)	$ (605,745)	$ (346,692)	$ 165,178
Prior Period Adjustments	(436,865)	0	0	0
Adjustments to reconcile net income to net cash provided By operating activities:
Depreciation and amortisation	0	14,357	0	17,516
Provision for employee benefit	0	(764)	0	801
Changes in operating assets and liabilities
Trade receivables, net	118,674	700,165	1,378,337	(430,428)
Due from shareholders	0	1,047	0	(773,544)
Due from related parties	0	215,844	0	0
Inventories	23,270	(205,944)	309,953	(17,620)
Other current assets	0	(3,117)	1,106	98,467
Other non current assets	0	(3,117)	0	331
Trade payables	30,869	(7,640)	322,557	54,126
Due to shareholders	0	45,912	0	54,413
Due to related parties	0	(184,430)	0	392,276
Other current liabilities	19,870	(4,770)	(1,241,442)	(47,386)
Share Purchase Advances		0	0	750,000
Net cash generated from (used for) operating activities	(293,074)	(31,721)	430,434	67,197
CASH FLOWS FROM FINANCING ACTIVITIES
Increase/(decrease) in short-term borrowings	0	(2,351)	0	(8,931)
Increase/(decrease) in long-term borrowings	238,574	0	(501,842)	0
Dividends paid	0	0	0	0
Net cash (used for) provided from financing activities	238,574	(2,351)	(501,842)	(8,931)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment and intangible assets	(205)	(15,245)	91,141	(62,304)
Share capital increase	0	0	0	0
Net cash used for investing activities	(205)	(15,245)	91,141	(62,304)
NET INCREASE / (DECREASE) IN CASH AND BANKS	(54,705)	(49,317)	19,733	(4,289)
CASH AND BANKS AT BEGINNING OF THE YEAR	70,289	50,556	50,556	54,845
CASH AND BANKS AT END OF THE PERIOD	$ 15,584	$ 1,239	$ 70,289	$ 50,556

XML

Related Party Transactions

6 Months Ended

Jun. 30, 2012

Related Party Transactions [Abstract]

Related Party Transactions

7.             RELATED PARTY TRANSACTIONS:

In the course of conducting its business, the Company conducted various business transactions with related parities on commercial terms.

Related parties and shareholders balances and transactions have been presented as follows:

Due from related parties		30.06.2012		30.06.2011
Emko Yazi Tahalari ve Egitim Gerecleri A.S.	$	0	$	321,494
TouchIT Technologies Koll. Sti.. Ronald George Murphy ve Ortaklari	$	0	$	162,965
Total	$	0	$	655,135

Due from shareholders		30.06.2012		30.06.2011
Andrew Stuart Brabin	$	0	$	41,955
Recep Tanisman	$	0	$	0
Total	$	0	$	41,955

Due to related parties		30.06.2012		30.06.2011
Kamron, Inc.	$	175,913	$	94,427
ASB Trading	$	148, 586	$	64,123
Emko Yazi Tahalari ve Egitim Gerecleri A.S.	$	0	$	339,542
TouchIT Education Koll. Sti	$	0	$	468,965
International RT	$	0	$	12,000
Other	$	0	$	36,089
Total	$	324,499	$	1,014,876

Due to Shareholders		30.06.2012		30.06.2011
Total	$	0	$	188,293

Major purchases from related parties		30.06.2012		30.06.2011
TouchIT Technologies Koll Sti	$	0	$	58,451
TouchIT Education Koll Sti	$	0	$	152,822
Emko Yazi Tahalari ve Egitim Gerecleri A.S	$	0	$	139,908
Total	$	0	$	351,181

Major sales to related parties		30.06.2012		30.06.2011
Emko Yazi Tahalari ve Egitim Gerecleri A.S	$	0	$	102,290
TouchIT Technologies Koll. Sti	$	0	$	152,822
TouchIT Education Koll Sti	$	0	$	58,451
TouchIT Technologies USA LLC	$	0	$	66 622
Total	$	0	$	380,185

Service provided by		30.06.2012		30.06.2011
Kamron, Inc.	$	175,913	$	98,991
Andrew Stuart Brabin	$	148,586	$	0
ASB Trading	$	0	$	68,987
Other	$	0	$	36,372
Total	$	324,499	$	204,350

XML

Trade Receivables

6 Months Ended

Jun. 30, 2012

Receivables [Abstract]

Trade Receivables

6.             TRADE RECEIVABLES

As of June 30, 2012 and June 30, 2011, trade receivables comprised were comprised of the following:

		30.06.2012			30.06.2011
Trade Receivables	$	124,194		$	5,060
Provision for doubtful accounts	$	(2,000	)	$	(0	)
Total	$	122,194		$	5,060

XML

General and Administrative Expenses

6 Months Ended

Jun. 30, 2012

General and Administrative Expenses [Abstract]

Selling, General and Administrative Expenses

18.           GENERAL AND ADMINISTRACTIVE EXPENSES

The composition of general and administrative expenses by the principal operations for the periods ended June 30, 2012 and 2011 are as follows:

		30.06.2012		30.06.2011
General and Administrative Expenses	$	165,317	$	123,057
Total	$	165,317	$	123,057

XML

Capital Stock

6 Months Ended

Jun. 30, 2012

Equity [Abstract]

Capital Stock

14.           CAPITAL STOCK

The issued share capital of the Company is respectively for the period ended at June 30, 2012 and 2011 is comprised of the following:

	30.06.2012		30.06.2011
	Insider		Insider
	Holdings		Holdings
Andrew Stuart Brabin		23,610,000		16,110,000
Ronald George Murphy		23,610,000		16,110,000
Recep Tanisman		0		16,110,000
Total Insider Holdings		47,220,000		48,330,000
Total Outstanding		74,189,419		64,549,419

XML

Non-current Assets

6 Months Ended

Jun. 30, 2012

Non Current Assets [Abstract]

Non-current assets

10.           NON-CURRENT ASSETS

As of June 30, 2012 and June 30, 2011,  non-currents comprised of the following:

		30.06.2012		30.06.2011
Fully Reporting Public Shell	$	400,000	$	0
Other	$	0	$	12,763
Total	$	400,000	$	12,763

XML

Inventories

6 Months Ended

Jun. 30, 2012

Inventory Disclosure [Abstract]

Inventories

8.             INVENTORIES

		30.06.2012		30.31.2011
Trade goods	$	32,419	$	571,586
Total	$	32,419	$	571,586

XML

Other Current Assets

6 Months Ended

Jun. 30, 2012

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

9.             OTHER CURRENT ASSETS

As of June 30, 2012 and June 30, 2011, other receivables comprised of the following:

		30.06.2012		30.06.2011
Prepaid Expense	$	0	$	4,223
Total	$	0	$	4,223

XML

Trade Payables

6 Months Ended

Jun. 30, 2012

Trade Payables [Abstract]

Trade Payables

11.           TRADE PAYABLES

As of June 30, 2012 and June 30, 2011, trade payables were comprised of the following:

		30.06.2012		30.06.2011
Trade payables	$	153,672	$	104,721
Total	$	153,672	$	104,721

XML

Other Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2012

Other Liabilities Disclosure [Abstract]

Other current liabilities

		30.06.2012		30.06.2011
Social Security & Withheld Taxes Payable	$	10,871	$	0
Due to personnel	$	0	$	0
Accrued Expenses	$	0	$	0
Advances received	$	0	$	0
Other Liabilities	$	36,389	$	68,463
Total	$	47,260	$	68,463

XML

Other Current Liabilities (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Other current liabilities
Social Security & Withheld Taxes Payable	$ 10,871		$ 0
Due to personnel	0		0
Accrued Expenses	0		0
Advances received	0		0
Other Liabilities	36,389		68,463
Total	$ 47,260	$ 27,390	$ 68,463	$ 73,233

XML

Cost of Sales

6 Months Ended

Jun. 30, 2012

Cost Of Sales [Abstract]

Cost of Sales

16.           COST OF SALES

The composition of cost of sales by principal for the periods ended June 30, 2012 and 2011 can be summarized as follows:

		30.06.2012		30.06.2011
Purchases	$	353,002	$	832,401
Total	$	353,002	$	832,401

XML

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash equivalents consist of highly liquid investments, which are readily convertible into, cash, with original maturities of three months or less.

Basis of Accounting

Basis of Accounting

The Company uses the accrual basis of accounting.

Accounts Receivable - Recognition of Bad Debt

Accounts Receivable – Recognition of Bad Debt

The Corporation considers accounts receivable to be fully collectible; accordingly, no allowance for doubtful accounts is required. If amounts become uncollectible, they will be charged to operations when that determination is made.

Revenue recognition

Revenue recognition

The company recognizes revenue when there is persuasive evidence of an arrangement, delivery has occurred or services are rendered, the sales price is terminable, and collectability is reasonably assure. Revenue typically is recognized at the time of shipment. Sales are recorded net of discounts, rebates, and returns.

Inventories

Inventories

Inventories are stated at the lower of cost or market. Costs, including an appropriate portion of fixed and variable overhead expenses are assigned to inventories by the method most appropriate to the particular class of inventory being valued on the weighted average basis.

Related Parties

Related Parties

Parties are considered to be related if one parry has the ability to control the other party or exercise significant influence over the other party in making the financial and operating decisions. For the purpose of these financial statements shareholders are referred to as related parities. Related parties are also included individuals that are principle owners, management and members of the Company’s Board of Directors and their families.

Capitalization

Capitalization

All costs incurred over $500 are capitalized. Costs which lengthen the life of a fixed asset are capitalized and depreciated over the extended life of the asset.

Depreciation

Depreciation

Depreciation is computed on the straight-line method over the estimated useful lives of the assets. Assets reviewed for impairment whenever changes in circumstances or events may indicate that the carrying amounts are not recoverable. If the fair value is less that the carrying amount of the asset, a loss is recognized for the difference.

Taxation

Taxation

The Company has elected to be treated as a regular “C” corporation; therefore, the corporation , not the stockholders, will pay income taxes.

Retirement Pay Provision

Retirement Pay Provision

Under Turkish laws, lump sum payments are made to employees retiring or involuntary leaving the Company. Such payments are considered as being part of a defined retirement benefit plan.

The retirement benefit obligation recognized in the balance sheet represents the present value of defined benefit obligation as adjusted for unrecognized actuarial gains and losses.

Leases

Leases

Leases are classified as capital leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Comprehensive Income

Comprehensive Income

In June 1997, the Financial Accounting Standard Board issued SFAS No. 130, “Reporting Comprehensive Income.” SFAS No. 130 is effective for years beginning after June 15, 1997. This statement provides reporting standards of comprehensive income and its components and requires that all components of comprehensive income be reported in the financial statements in the period in which they are recognized. The Company has adopted the provisions of SFAS No. 130 in its financial statements and adoption of this statement did not have any effect.

Financial Instruments

Financial Instruments

Fair value is defined as the price that would be received to sell an assets or paid to transfer a a liability in an orderly transaction between participants at the measurement date (i.e., an exit price). The guidance includes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority

To unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1 – Quoted, active market prices for identical assets or liabilities. Level 1 also includes U.S. Treasury and federal agency securities and federal agency mortgage-backed securities, which are traded by dealers of brokers in active markets. Valuation are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. The Company did not have any Level 1 assets or liabilities.

Level 2 – Observable inputs other than Level 1, such as quoted market prices for similar assets or liabilities, quoted for identical or similar assets in inactive markets, and model derived valuations in which all significant inputs are observable in active markets. The Company did not have any Level 2 assets or liabilities.

Level 3 – Valuation techniques in which one or more significant inputs are observable in the marketable. The company did not have any Level 3 assets or liabilities.

XML

Non-current Assets (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Summary of non-current assets
Fully Reporting Public Shell	$ 400,000		$ 0
Other	0		12,763
Total	$ 400,000	$ 0	$ 12,763	$ 3,555

XML

Other Income and (Expenses), net (Tables)

6 Months Ended

Jun. 30, 2012

Other Income and Expenses [Abstract]

Composition of other income and expenses

		31.06.2012		31.06.2011
Other Income and Expenses	$	1,200	$	(46,344	)
Total	$	1,200	$	(46,344	)

XML

Statement of Changes in Stockholder's Equity (USD $)	Total	Common Stock	Preferred Stock	Paid-In Capital	Treasury Stock	Retained Earnings
Balance at Dec. 31, 2011	$ 59,914	$ 127,570	$ 0	$ 416,733	$ 0	$ (484,389)
Balance, shares at Dec. 31, 2011	0	55,839,419	0	55,839,419	0	0
Net income	(48,892)	0	0	0	0	(48,893)
Capital Transactions	(36,065)	18,350,000	0	18,350,000	0	(36,065)
Prior Period Adjustments	0	0	0	0	0	0
Balance at Jun. 30, 2012	$ (25,044)	$ 127,570	$ 0	$ 416,733	$ 0	$ (569,347)
Balance, shares at Jun. 30, 2012		74,189,419	0	74,189,419	0

XML

Cash and Cash Equivalents

6 Months Ended

Jun. 30, 2012

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

5.             CASH AND CASH EQUIVALENTS

As of June 30, 2012 and June 30, 2011, cash and cash equivalents comprised were comprised of the following:

		30.06.2012		30.06.2011
Cash on Hand	$	0	$	0
Banks	$	15,584	$	1,239
Total	$	15,584	$	1,239

XML

General and Administrative Expenses (Details) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
Composition of general and administrative expenses by the principal operations
General and Administrative Expenses	$ 165,317	$ 123,057	$ (316,528)	$ (479,064)
Total	$ 165,317	$ 123,057

XML

Cash and Cash Equivalents (Tables)

6 Months Ended

Jun. 30, 2012

Cash and Cash Equivalents [Abstract]

Cash and Cash Equivalents

		30.06.2012		30.06.2011
Cash on Hand	$	0	$	0
Banks	$	15,584	$	1,239
Total	$	15,584	$	1,239

XML

Cost of Sales (Tables)

6 Months Ended

Jun. 30, 2012

Cost Of Sales [Abstract]

Composition of cost of sales by principal

		30.06.2012		30.06.2011
Purchases	$	353,002	$	832,401
Total	$	353,002	$	832,401

XML

Sales

6 Months Ended

Jun. 30, 2012

Sales [Abstract]

Sales

15.           SALES

The composition of sales by principal for the periods ended June 30, 2012 and 2011 can be summarized as follows:

		30.06.2012		30.06.2011
CleverBoard	$	31,925	$	337,124
Document Camera	$	1,824	$	0
Electronic Parts	$	0	$	416,336
LCD Duo 32"	$	2,998	$	0
LCD Duo 42"	$	15,343	$	0
LCD Duo 55"	$	56,782	$	0
LCD Duo 65"	$	90,561.74	$	0
LCD Duo Pro 55"	$	7,998	$	0
LCD Duo Pro 65"	$	5,999	$	0
Stand IWB (Manual)	$	5,362	$	0
Stand LCD (Man)	$	3,521.25	$	0
Total Tablet	$	2,455	$	5,500
TouchIT Board 50"	$	2,256	$	9,639
TouchIT Board 78"	$	127,862	$	119,122
TouchIT Board 80"	$	53,365	$	39,446
TouchIT Board 90"	$	41,316	$	22,811
TouchIT Fusion 42"	$	4,999	$	0
TouchIT Fusion 55"	$	5,499	$	0
TouchIT Stand	$	675	$	0
Wall Mount 42" 55"	$	645	$	0
Wall Mount 65" to 70"	$	2,985	$	0
Voting	$	0	$	4,738
Other	$	41314.01	$	6,764
Returns	$	0	$	(46,613	)
	$	505,685	$	914,867