A:
The meeting has actually been held, although a lack of quorum prevented any business to be transacted.
If the bylaws merely state that an annual meeting is to be held, the organization has met its obligation.
(RONR pp. 341-342.)
However, usually they also require such other things as elections.
If this is the case, the proper procedure would be to Fix The Time To Which To Adjourn, then adjourn the meeting.
FTTTWTA sets a date and time (and possibly place) for the current meeting to continue.
(RONR section 22.)
Then round up a quorum and try again.