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

Forward - Looking Statements

The statements contained in this Quarterly Report on Form 10-Q that are not historical facts are "forward-looking statements". Such forward-looking statements may be identified by, among other things, the use of forward-looking terminology such as "believes," "intends," "plans" "expects," "may," "will," "should," or "anticipates" or the negative thereof or other variations thereon or comparable terminology, and similar expressions are intended to identify forward-looking statements. We remind readers that forward-looking statements are merely predictions and therefore inherently subject to uncertainties and other factors and involve known and unknown risks that could cause the actual results, performance e, levels of activity, or our achievements, or industry results, to be materially different from any future results, performance, levels of activity, or our achievements, or industry results, expressed or implied by such forward-looking statements. Such forward-looking statements appear in Item
2 -"Management's Discussion and Analysis of Financial Condition and Results of Operations," as well as elsewhere in this Quarterly Report. The factors discussed herein and expressed from time to time in our filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this filing, and except as required by law we undertake no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

As used in this Quarterly Report, the terms "we", "us", "our", "the Company", and "FMS" mean Fits My Style Inc. unless otherwise indicated.

Overview and Recent Developments

We were incorporated in the State of Nevada on July 26, 2010. We are a development stage company and to date, have not generated any revenue from operations. On June 14, 2010 we filed a registration statement on Form S-1 which was declared effective on August 12, 2011. As a result we became a reporting company. However, our shares are not traded yet on any stock market or quotation system. Monarch Bay Associates, LLC has agreed to act as our market maker and to file an application with the Financial Industry Regulatory Authority for our common stock to be eligible for quotation on the Over the Counter Bulletin Board.

We are yet to initiate operations and are still in the process of technological development.

Our goal is to develop an interactive web service followed by a Smartphone application that will allow potential buyers to visualize how merchandise would look like as if the merchandise was placed in their home, office or any other location before they actually purchase the product.

In January 2012, in accordance with our plan of operation, we launched our new public website and the "Fits My Style Designer" Proof-of-Concept (POC) website at http://www.fitsmystyle.com. The new website includes information about our company, brands and services. The new website also includes a hyperlink redirecting users to the company's "Fits My Style Designer " Proof-of-Concept (POC) website.

The Proof-of-Concept (POC) website simulates an online furniture retailer e-commerce store incorporating the "Fits My Style Designer" web service. The information displayed in this area is taken from "Fits My Style" servers and is not related to any retailer web store or servers.

In the POC website, the user can browse through various furniture catalog. The user is then provided with the ability to choose one of the rooms displayed or to upload another image and create a new room. Once the user has chosen a room, the "Fits My Style Designer" web service opens the selected room in "Design" mode and allows the user to add furniture from an imitated retailer's catalog to it and visually evaluate how the furniture will look like as if it was placed in the real room. The service allows the user to position the furniture anywhere in the room, to move, scale, rotate, duplicate or delete it, and to add additional furniture to complete the room design to meet the user's own favor and taste.

We are now focused on evaluating various alternatives for developing a more advanced and complete version of POC merchant-to-location web service. New additions to this version would be its administrative back-office capabilities that relies heavily on the Company's business logic which we believe would mature once we establish partnerships with website owners and completely understand their needs. The following phase after that will be to develop the Beta version which will also include greater capabilities and many more features that are not available in either version of the POC website. The development of the Beta version is not planned to be outsourced and will require recruiting in-house development staff, renting adequate space and require major additional funding. We estimate that the development of the Beta Version will take approximately 12 to 18 months after we have raised the required capital and hired the staff needed. There can be no assurance however that additional capital will be available to us.

Significant Accounting Policies and Estimates

Our financial statements are prepared in accordance with U.S. GAAP. In connection with the preparation of the financial statements, we are required to make assumptions and estimates about future events, and apply judgments that affect the reported amounts of assets, liabilities, revenue, expenses and related disclosures. We base our assumptions, estimates and judgments on historical experience, current trends and other factors that management believes to be relevant at the time the consolidated financial statements are prepared. On a regular basis, management reviews our accounting policies, assumptions, estimates and judgments to ensure that our financial statements are presented fairly and in accordance with U.S. GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such differences could be material. Our significant accounting policies are described in note 2 to our financial statements for the period of July 26, 2010 (inception) to December 31, 2011.

RESULTS OF OPERATIONS - THREE MONTHS ENDED DECEMBER 31, 2011 COMPARED WITH THE THREE MONTHS ENDED DECEMBER 31, 2010.

As we were incorporated in July 2010, we have minimal operating history from which to report and have generated no revenues since incorporation. We had a net loss of $7,998 for the three months ended December 31, 2011 compared to $1,751 for the three months ended December 31, 2010 which is attributable to the increase in our general and administrative expenses.

Research and Development

We had no research and development expenses during the three months ended December 31, 2011 and during the three months ended December 31, 2010.

General and Administrative

General and administrative expenses increased to $7,998 in the three months ended December 31, 2011 from $1,751 for the three months ended December 31, 2010. The increase is attributable to the increase in our legal expenses, printing and auditing fees in connection with our becoming a reporting company.

RESULTS OF OPERATIONS -SIX MONTHS ENDED DECEMBER 31, 2011 COMPARED TO THE PERIOD OF JULY 26, 2010 [INCEPTION] TO DECEMBER 31, 2010.

We had a net loss of $15,392 for the six months ended December 31, 2011 compared to $26, 751 for the period of July 26, 2010 (inception) to December 31, 2010. The decrease is attributable to the sharp decrease in research and development expenses offset by the increase in general and administrative expenses.

Research and Development

We incurred no research and development expenses in the six months ended December 31, 2011 compared to $24,500 incurred during the period July 26, 2010 (inception) to December 31, 2010 and which related to the issuance of shares to our Chief Executive Officer in consideration for the assignment of all of his rights in what is known as the Fits My Style products and invention.

General and Administrative

General and administrative expenses for the six months ended December 31, 2011 increased to $15,392 from $2,251 incurred during the period July 26, 2010 (inception) to December 31, 2010. The increase is attributable to the increase in our legal expenses, printing and auditing fees in connection with our becoming a reporting company.

Liquidity and Capital Resources

As of December 31, 2011, we had total current assets of $15,846 and current liabilities of $5,865. As of December 31, 2011, we had cash of $15,846.

Net cash used in operating activities during the six months ended December 31, 2011 was $21,184.

From October through December of 2010, we conducted a private placement whereby we offered and sold an aggregate of 776,000 shares of our common stock to 6 shareholders pursuant to an exemption from registration under Regulation D of the Securities Act of 1933, as amended (the "Securities Act") and 35 shareholders pursuant to an exemption from registration under Regulation S of the Securities Act, for an aggregate consideration of $38,800, or $0.05 per share.

As of December 31, 2011, we had a net loss and a deficit accumulated during the development stage of $57,319. This factor raises substantial doubt about our ability to continue as a going concern. While we have positive working capital at December 31, 2011, management expects that its current cash resources as well as expected lack of operating cash flows will not be sufficient to sustain operations for a period greater than six months.

Going Concern Consideration

The ability of the Company to continue as a going concern is dependent on management's plans, which include continuing to raise equity based financing as well as development of the business plan. Our audited financial statements included in our annual report for the year ended June 30, 2011, as well as the audited financial statements included in our Registration Statement on Form S-1 (Registration No. 333-174892) for the period ended March 31, 2011, contain additional note disclosures describing the circumstances that lead to this disclosure by our independent auditors.

The Company believes that it will need approximately $40,000 to fund its expenses over the next twelve months. In addition, in order to develop the more advanced and complete version of our POC merchant-to-location web service, we will need to raise an additional $100,000.

There can be no assurance that additional capital will be available to the Company. The Company currently has no agreements, arrangements or understandings with any person to obtain funds through bank loans, lines of credit or any other sources. Since the Company has no such arrangements or plans currently in effect, its inability to raise funds for the above purposes will have a severe negative impact on its ability to remain a viable company.

Off Balance Sheet Arrangements

We have no off balance sheet arrangements.