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        June 30, 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 August 13, 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 June 30, 2003 and the results of its
operations and changes in its financial position from December 31, 2002
through June 30, 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.

                       Softwall Equipment Corporation
                       (a Development Stage Company)
                               Balance Sheet
<Table>
<Caption>
                                                    June 30,   December 31,
                                                     2003          2002
                                                 ------------  ------------
                                                  (Unaudited)
<S>                                              <C>           <C>

                                   ASSETS
Current Assets
--------------
 Cash                                            $     7,680   $     2,345
                                                 ------------  ------------
Property Plant & Equipment (Net)                       9,442        12,311
--------------------------------                 ------------  ------------

Other Assets
------------
 Patent                                               25,075        20,480
                                                 ------------  ------------
  Total Assets                                   $    42,197   $    35,136
                                                 ============  ============

                    LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
-------------------
 Accounts Payable and Accrued Expenses           $    81,683   $    70,438
 Accounts Payable - Related Party                      4,000        10,000
 Interest Payable                                     16,224        11,279
 Note Payable-Related Party                          303,950       266,660
                                                 ------------  ------------
  Total Current Liabilities                          405,857       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                                 (407,127)     (366,708)
                                                 ------------  ------------
  Total Stockholders' Equity                        (363,660)     (323,241)
                                                 ------------  ------------
  Total Liabilities and Stockholders' Equity     $    42,197   $    35,136
                                                 ============  ============
</Table>
              See accompanying notes to financial statements.
                                     3

                       Softwall Equipment Corporation
                       (a Development Stage Company)
                          Statement of Operations
                                (Unaudited)
<Table>
<Caption>
                                                                             For the
                           For the     For the      For the     For the       Period
                            Three       Three         Six         Six        October
                            Months      Months       Months      Months      5, 1998
                            Ended       Ended        Ended       Ended    (Inception)
                            June        June         June        June        to June
                          30, 2003    30, 2002     30, 2003    30, 2002     30, 2003
                        ----------- -----------  ----------- -----------  -----------
<S>                     <C>         <C>          <C>         <C>          <C>
Revenues
--------
 Consulting Revenues    $    -      $    7,736   $    -      $    7,736   $   19,284
                        ----------- -----------  ----------- -----------  -----------
   Total Revenues            -           7,736        -           7,736       19,284

Expenses
--------
 General and
  Administrative            35,572      11,030       58,496      22,247      398,271
 Depreciation Expense        1,434       1,434        2,868       2,868       19,936
 Research & Development      -           -            -           -           16,715
                        ----------- -----------  ----------- -----------  -----------
   Total Expenses           37,006      12,464       61,364      25,115      434,922
                        ----------- -----------  ----------- -----------  -----------
Loss from Operations       (37,006)     (4,728)     (61,364)    (17,379)    (415,638)

Other Income (Expenses)
-----------------------
 License Fee Income         21,000       -           26,900       -           36,200
 Interest Expense           (3,626)     (1,297)      (5,955)     (2,401)     (17,439)
 Loss on Abandonment of
  Purchase Agreement         -           -            -           -          (10,000)
 Gain (Loss) on Sale
  of Equipment               -           -            -           -               50
                        ----------- -----------  ----------- -----------  -----------
   Total Other
   (Expenses)               17,374      (1,297)      20,945      (2,401)       8,811
                        ----------- -----------  ----------- -----------  -----------
   (Loss) Before Taxes     (19,632)     (6,025)      40,419     (19,708)    (406,827)

   Taxes                     -           -            -           -              300
                        ----------- -----------  ----------- -----------  -----------
   Net (Loss)           $  (19,632) $   (6,025)  $  (40,419) $  (19,708)  $ (407,127)
                        =========== ===========  =========== ===========  ===========
   Net (Loss)
   Per Share            $    (0.00) $    (0.00)  $    (0.00) $    (0.00)

   Weighted Average
   Shares Outstanding   14,142,000  14,142,000   14,142,000  14,143,288

</Table>

              See accompanying notes to financial statements.
                                     4

                       Softwall Equipment Corporation
                       (a Development Stage Company)
                          Statement of Cash Flows
                                (Unaudited)
<Table>
<Caption>
                                                                       For the Period
                                                                            October
                                                                            5, 1998
                                             For the Six Months Ended     (Inception)
                                                  June          June        to June
                                               30, 2003      30, 2002      30, 2003
                                             ------------  ------------  ------------
<S>                                          <C>           <C>           <C>
Cash Flows from Operating Activities
------------------------------------
 Net (Loss)                                  $   (40,419)  $    (6,025)  $  (407,127)
 Adjustments to Reconcile Net (Loss) to
 Net Cash Provided by Operating Activities:
  Depreciation Expense                             2,868         1,434        19,936
  Stock for Services/Expenses                      -             -            18,218
  Increase (Decrease) in Accounts Payable          5,245         3,279        85,683
  Increase (Decrease) in Accrued Interest          4,946         1,104        16,224
                                             ------------  ------------  ------------
   Net Cash Flows Provided (Used)
   by Operating Activities                       (27,360)         (208)     (267,066)

Cash Flows from Investing Activities
------------------------------------
 Purchase of Fixed Assets                          -             -           (29,379)
 Payments for Patent Cost                         (4,595)        -           (25,075)
                                             ------------  ------------  ------------
   Net Cash Flows Provided (Used)
   by Investing Activities                        (4,595)        -           (54,454)

Cash Flows from Financing Activities
------------------------------------
 Cash from Issuance of Common Stock                -             -            25,250
 Proceeds from Notes Payable                      37,290           900       303,950
                                             ------------  ------------  ------------
   Net Cash Flows Provided (Used)
   by Financing Activities                        37,290           900       329,200
                                             ------------  ------------  ------------
   Net Increase (Decrease) in Cash                 5,335           692         7,680
   Cash, Beginning of Period                       2,345           147         -
                                             ------------  ------------  ------------
   Cash, End of Period                       $     7,680   $       839   $     7,680
                                             ============  ============  ============
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 Unaudited Financial Statements
                               June 30, 2003

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

The financial statements for the six months ended June 30, 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 June 30,
2003.  The results of the six 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 period ended June
30, 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
---------------------

SOFTWALL
--------
The second quarter of 2003 began with demonstrations at Brigham Young
University (BYU) of the Softwall 2 Machine as the academic year was
completed.  This year the students prepared a very professional  DVD video
presentation of the SW2 machine in operation complete with hardware
description and operating instructions and project manual combining all 5
years of engineering prototyping and testing work.

The video clearly shows the machine working under about 5' of loose
material through which it mined a total distance of about 5ft proving all
functional principals of the system.  After working under the loose
material the material was compacted with a front end loader.  Again, all
fundamental principals were proven.

One more year at BYU will be sufficient to make the necessary changes to
the water system valving that we are still having troubles with before we
take the machine to Florida.

SACUM CONVEYOR
--------------
In April the Company and New Stansbury Coal Company LLC (NSCC) were
approached by Conveyor Services Corporation (CSC) of Pittsburgh, PA as
interested in the SACUM conveyor technology and operations at NSCC.  CSC is
the largest re-manufacturer of Conveyors in the United States and has the
majority of the market share for new belting sold in coalmines in the US as
well.  CSC's President Troy Dolan toured the BYU facilities with the
Company and with NSCC.  The three companies jointly decided to display at
SACUM at the Longwall USA2003 show in Pittsburgh, PA. CSC had already made
reservations for a booth so it extended its booth size to accommodate
Softwall/NSCC and fabricated a SACUM display for the Company shown in the
picture below.

Several companies expressed interest in using the SACUM Conveyor at the
show.  However, the purpose of the show was not to sell the SACUM system
but rather to illustrate how it will be put to use so that mining engineers
can be thinking and planning out  reserve strategies for years ahead.  Our
business strategy is simple.  We need to demonstrate the SACUM system
first, then market it after we have shown how it works in an affiliated
operation where we have some measure of control.  The Softwall DVD was also
displayed on the laptop on the table but it was the wrong audience.
Longwall  USA is primarily a coal show and Softwall is aggregates
technology.

PLAN OF OPERATIONS
------------------

Proposed US Technical Merger
----------------------------
The company began the year with tentative plans to merge operations with US
Technical Consultants.  However, material misrepresentations of financial
conditions and UST's refusal to provide produce an audit made it necessary
to terminate the agreement.  UST has filed claim against the company for
breach of contract and the company has filed a counterclaim against UST for
its damages in federal court.

                                     7

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.

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


                                     8

                                 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: August 18, 2003               Softwall Equipment Corporation


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