FORM 10-QSB

                     SECURITIES AND EXCHANGE COMMISSION
                           Washington D.C.  20549

                Quarterly Report Under Section 13 or 15 (d)
                   Of the Securities Exchange Act of 1934

                  For Quarter Ended        March 31, 2003
                                     -------------------------
                 Commission File Number      0001082562
                                        --------------------

                       SOFTWALL EQUIPMENT CORPORATION
           -----------------------------------------------------
           (Exact name of registrant as specified in its charter)

         UTAH                                               87-06254752
--------------------------------                       --------------------
(State or other jurisdiction of                        (IRS Employer
 incorporation or organization)                         Identification No.)

                           11602 Colchester Drive
                             SANDY, UTAH 84092
                  ---------------------------------------
                  (Address of principal executive offices)

     Registrant's telephone number
     including area code                          (801) 572-4724
                                                  --------------

        ------------------------------------------------------------
                Former Address, if changed since last report

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or such shorter period that the
registrant was required to file such reports)

     Yes   X   No
         -----    -----

and (2) has been subject to such filing requirements for the past 90 days.


     Yes   X   No
         -----    -----


                                  150,927
             --------------------------------------------------
            (Number of shares of common stock the registrant had
                       outstanding as of May 8, 2003)
                                        ------------


                                   PART 1

ITEM 1 - FINANCIAL STATEMENTS

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

     In the opinion of the Company, all adjustments, consisting of only
normal recurring adjustments, necessary to present fairly the financial
position of the Company as of March 31, 2003 and the results of its
operations and changes in its financial position from December 31, 2002
through March 31, 2003 have been made.  The results of its operations for
such interim period is not necessarily indicative of the results to be
expected for the entire year.























                                     2

                       Softwall Equipment Corporation
                       (a Development Stage Company)
                               Balance Sheet
<Table>
<Caption>
                                                 March 31,   December 31,
                                                   2003          2002
                                                ------------ ------------
<S>                                             <C>          <C>
                                   ASSETS
Current Assets
--------------
 Cash                                           $    2,235   $     2,345
                                                ------------ ------------
Property Plant & Equipment (Net)                    10,877        12,311
--------------------------------                ------------ ------------

Other Assets
------------
 Patent                                             21,480        20,480
                                                ------------ ------------
  Total Assets                                  $   34,592   $    35,136
                                                ============ ============

                    LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
-------------------
 Accounts Payable and Accrued Expenses           $    75,852   $    70,438
 Accounts Payable - Related Party                      6,000        10,000
 Interest Payable                                     13,607        11,279
 Note Payable-Related Party                          283,160       266,660
                                                 ------------  ------------

  Total Current Liabilities                          378,619       358,377

Stockholders' Equity
--------------------
 Common Stock, Authorized 50,000,000
  Shares of $.001 Par Value, Issued and
  Outstanding 141,427, Retroactively Restated,
  Respectively                                        14,142        14,142
 Capital in Excess of Par Value                       29,325        29,325
 (Deficit) Accumulated During
  Development Stage                                 (387,495)     (366,708)
                                                 ------------  ------------
  Total Stockholders' Equity                        (344,027)     (323,241)
                                                 ------------  ------------
  Total Liabilities and Stockholders' Equity     $    34,592   $    35,136
                                                 ============  ============
</Table>


              See accompanying notes to financial statements.
                                     3


                       Softwall Equipment Corporation
                       (a Development Stage Company)
                          Statement of Operations
<Table>
<Caption>
                                                              For the Period
                                                                  October
                                                                  5, 1998
                                  For the Three Months Ended    (Inception)
                                       March         March       to March
                                     31, 2003      31, 2002      31, 2003
                                   ------------  ------------  ------------
<S>                                <C>          <C>           <C>

Revenues
--------
 Consulting Revenues               $     -      $      -      $     19,284
                                   ------------  ------------  ------------
   Total Revenues                        -             -            19,284

Expenses
--------
 General and Administrative             22,925        11,217       362,699
 Depreciation Expense                    1,434         1,434        18,502
 Research & Development                  -             -            16,715
                                   ------------  ------------  ------------
   Total Expenses                       24,359        12,651       397,916
                                   ------------  ------------  ------------
   Loss from Operations                (24,359)      (12,651)     (378,632)

Other Income (Expenses)
-----------------------
 License Fee Income                      5,900         -            15,200
 Interest Expense                       (2,329)       (1,104)      (13,813)
 Loss on Abandonment of Purchase
  Agreement                              -             -           (10,000)
 Gain (Loss) on Sale of Equipment        -             -                50
                                   ------------  ------------  ------------
   Total Other (Expenses)                3,571        (1,104)       (8,563)
                                   ------------  ------------  ------------
   (Loss) Before Taxes                 (20,788)      (13,755)     (387,195)

   Taxes                                 -             -               300
                                   ------------  ------------  ------------
   Net (Loss)                      $   (20,788) $    (13,755) $   (387,495)
                                   ============  ============  ============
   Net (Loss) per Share            $      (.15) $      (0.10)

   Weighted Average
   Shares Outstanding                  141,427       141,427
</Table>

              See accompanying notes to financial statements.
                                     4

                       Softwall Equipment Corporation
                       (a Development Stage Company)
                          Statement of Cash Flows
<Table>
<Caption>
                                                                       For the Period
                                                                           October
                                                                           5, 1998
                                           For the Three Months Ended    (Inception)
                                                 March         March       to March
                                               31, 2003      31, 2002      31, 2003
                                             ------------  ------------  ------------
<S>                                          <C>          <C>           <C>
Cash Flows from Operating Activities
------------------------------------
 Net (Loss)                                  $   (20,787) $    (13,755) $   (387,495)
 Adjustments to Reconcile Net (Loss) to
 Net Cash Provided by Operating Activities:
  Depreciation Expense                                           1,434        18,502
  Stock for Services/Expenses                      1,434          -            5,017
  (Gain) on Sale of Equipment                       -             -              (50)
  (Increase) Decrease in Accounts Receivable        -           (2,200)        -
  Increase (Decrease) in Accounts Payable          1,415           721        94,497
  Increase (Decrease) in Interest Payable          2,328          -           13,813
                                             ------------  ------------  ------------
   Net Cash Flows Provided (Used)
   by Operating Activities                       (15,610)      (13,800)     (255,716)

Cash Flows from Investing Activities
------------------------------------
 Purchase of Fixed Assets                           -             -          (29,379)
 Sale of Fixed Assets                               -             -              200
 Capitalized of Costs                             (1,000)         (367)      (27,511)
 Reimbursement for Patent Costs                     -             -            6,031
                                             ------------  ------------  ------------
   Net Cash Flows Provided (Used)
   by Investing Activities                        (1,000)         (367)      (50,659)

Cash Flows from Financing Activities
------------------------------------
 Cash from Stock Sales                              -             -           25,450
 Increase (Decrease) in Notes Payable             16,500        11,185       283,160
                                             ------------  ------------  ------------
   Net Cash Flows Provided (Used)
   by Financing Activities                        16,500        11,185       308,610
                                             ------------  ------------  ------------
   Net Increase (Decrease) in Cash                  (110)       (2,982)        2,235

   Cash, Beginning of Period                       2,345         3,129          -
                                             ------------  ------------  ------------
   Cash, End of Period                       $     2,235  $        147  $      2,235
                                             ============  ============  ============
Supplemental Cash Flow Information
----------------------------------
 Interest                                    $      -     $       -     $       -
 Taxes                                              -             -              200
 Stock Issued for Assets                            -             -           18,010
 Stock Issued for Services                          -             -            5,017

</Table>
              See accompanying notes to financial statements.
                                     5

                       Softwall Equipment Corporation
                       (a Development Stage Company)
                     Notes to the Financial Statements
                               March 31, 2003

NOTE 1 - PREPARATION OF FINANCIAL STATEMENTS
--------------------------------------------

The financial statements for the three months ended March 31, 2003 were
prepared from the books and records of the company.  Management believes that
all adjustments have been made to the financial statements to make a fair
presentation of the financial condition of the company as of March 31, 2003.
The results of the three months are not indicative of a full year of
operation for the Company.

Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted.  It is suggested that these
financial statements be read in conjunction with the financial statements and
notes thereto included in the Company's December 31, 2002 audited financial
statements.  The results of operations for the periods ended March 31, 2003
are not necessarily indicative of the operating results for the full year.

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

Liquidity and Capital Resources
-------------------------------
The Company does not pay rent, has no ongoing compensations costs, or any
other long term or ongoing business overhead commitments.

In its initial offering the company issued a limited amount of stock to cover
some start-up and business expenses.  Randall D. Peterson has been working on
behalf of the company since its inception without pay and has billed his
professional time since inception.  Mr. Peterson has a consulting contract
with the Company and is billed his hours on an ongoing basis.  Mr. Peterson
has been careful to not incur company expenses when there have not been
sufficient funds to cover them.  He has done this by operating the company
business from his consulting office in his home, and by loaning the company
money to cover expenses, and by taking promissory notes in lieu of payment
for his professional fees.

IMC Phosphate has donated funds to BYU for the continuing development of the
technology and Peterson has contributed his professional time to that as
well.

Listed in order of priority, future capital funding will come from government
grants, debt financing, and additional offerings.  Peterson intends to
combine his consulting practice as part of the company when the company is in
a financial position to pay him a salary.

Once the technology is fully tested and demonstrated to the mining industry
and as opportunities allow, the Company may enter into a long term joint
venture with an existing manufacturing company already established in the
mining industry or with an existing mining company or that it may acquire
mineral properties or leases of its own to operate at a profit.


                                     6

Results of Operations
---------------------

This Quarter focused on subsurface field testing of the SW2 machine at BYU.
The test was successfully conducted in February and a high quality DVD video
was produced showing the operation of the machine.  The DVD also shows the
completion of work from students of all 5 years of engineering and testing at
the university.  Dr. K.S. Mortensen professor of Mechanical Engineering at
BYU published an article entitled "Developing a Softwall Mining Machine" in
February's issue of Mining Engineering Magazine published by the Society for
Mining Metallurgy and Exploration.  In March, the company co-hosted a booth
at the University of Utah's Engineering Experiment Station "Inventions to
Commercialization" Conference and Exhibit in Salt Lake City, Utah with New
Stansbury Coal Company, LLC where it illustrated the SACUM Conveyor and how
it will be used at the NSCC mine.  The Company also displayed the graphics
video clips from BYU of the SW2 machine in the booth.

The company filed counter-suit against US Technical for material
misrepresentation of its financial statements in the contemplated reverse-
merger.

Plan of Operations
------------------

Softwall Mining Technology
--------------------------
The company began its 5th year of engineering and field testing of the SW2
prototype at Brigham Young University.  Professor Mortensen published an
article summarizing the work completed in the first 4 years at BYU in mining
engineering magazine February, 2003 issue which included a successful test of
the machine in a windrow reclaim application.  At the time of writing this
report the 5th year of testing is now complete and the machine has been
proven in subsurface mining as well.  More technical articles will be
forthcoming in the engineering and mining journals.

Plans for the coming year will involve further refinement of the water
sluicing system and commercial demonstration for tailings mining.

SACUM Conveyor Technology
-------------------------
The Company has reached an agreement with New Stansbury Coal Company, LLC
(NSCC) to license its SACUM Conveyor technology for exclusive use by NSCC.
NSCC paid the company $9,300 for right of first refusal to an exclusive
license to all rights to US Patent 5,997,101 until Jan 31, 2003.  It is
expected that the option will be converted to a license agreement with
royalty and other terms some time during 2003.  Randall Peterson is Manager
Member for NSCC.

                                     7

In December, 2002 NSCC announced that it had executed a Purchase and Sale
Agreement with Anadarko Petroleum Corporation to purchase the Stansbury Coal
Mine.  NSCC has prepared mine plans for reopening the mine and for using the
SACUM Conveyor technology.  NSCC has submitted its business plans to the
Wyoming Business Council (WBC) for help in funding through the Wyoming State
Treasurer's office.  WBC in its due diligence retained two mining engineering
firms to review its mine plans and one business consultant to review its
business plans.  A reserve analysis was the subject of one of the engineering
reports and technical feasibility study of the SACUM Conveyor was the subject
of the other.  It was very favorable regarding the SACUM system.  The
recommendation from WBC to the State Treasurer was to proceed with an
Industrial Development Bond loan up to $12,000,000.  When this IDB is awarded
it will be the largest one ever awarded in the state of Wyoming.  Over
$2,000,000 of it is for building the first SACUM Conveyor and depending upon
the success of the first one more than 3,000,000 is budgeted for 2 additional
units in later years.

                                  PART II

OTHER INFORMATION

Item 1.   Legal Proceedings. . . . . . . . . . . . . . . . . . . . . . None

Item 2.   Changes in Securities. . . . . . . . . . . . . . . . . . . . None

Item 3.   Defaults Upon Senior Securities. . . . . . . . . . . . . . . None

Item 4.   Submission of Matters to a Vote of Security Holders. . . . . None

Item 5.   Other Information. . . . . . . . . . . . . . . . . . . . . . None

Item 6.   Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . None


                                 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 authorized officer.


Dated: May 8, 2003                   Softwall Equipment Corporation


                                     /S/ Randall Peterson
                                     -------------------------------------
                                     Randall Peterson
                                     Director








                                     8


                         SECTION 302 CERTIFICATION

     I, Randall Peterson, certify that:

     1.  I have reviewed this quarterly report on Form 10-QSB of Softwall
Equipment Corporation.;

     2.  Based on my knowledge, this annual 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 annual 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
annual report;

     4.  I am responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-
14) for the registrant and have:

     a) Designed such disclosure controls and procedures 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) Evaluated the effectiveness of the registrant's disclosure controls
     and procedures as of a date within 90 days prior to the filing date of
     this annual report (the "Evaluation Date"); and

     c) Presented in this quarterly report our conclusions about the
     effectiveness of the disclosure controls and procedures based on our
     evaluation as of the Evaluation Date;

     5.  I have disclosed, based on our most recent evaluation, to the
registrant's auditors and the audit committee of registrant's board of
directors (or persons performing the equivalent functions):

     a) All significant deficiencies in the design or operation of internal
     controls which could adversely affect the registrant's ability to
     record, process, summarize and report financial data and have
     identified for the registrant's auditors any material weaknesses in
     internal controls; and

     b) Any fraud, whether or not material, that involves management or
     other employees who have a significant role in the registrant's
     internal controls; and

     6.  I have indicated in this quarterly report whether or not there
were significant changes in internal controls or in other factors that
could significantly affect internal controls subsequent to the date of our
most recent evaluation, including any corrective actions with regard to
significant deficiencies and material weaknesses.

Date: May 8, 2003            /S/ Randall Peterson
                             -----------------------------------------
                            Randall Peterson, Chief Executive Officer
                            and President