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, 2004
                                  ------------------------------

                 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 20, 2004)




                                   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, 2004 and the results of its
operations and changes in its financial position from December 31, 2003
through March 31, 2004 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 Sheets
<Table>
<Caption>
                                                    March 31,  December 31,
                                                     2004          2003
                                                 ------------  ------------
                                                  (Unaudited)
<S>                                              <C>           <C>
                                   ASSETS
Current Assets
--------------
 Cash                                            $     7,822   $     3,690
                                                 ------------  ------------

Property Plant & Equipment (Net)                       5,755         6,574
--------------------------------                 ------------  ------------

Other Assets
------------
 Patent                                               26,745        25,075
                                                 ------------  ------------
   Total Assets                                  $    40,322   $    35,339
                                                 ============  ============

                    LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities
-------------------
 Accounts Payable and Accrued Expenses           $    51,651   $    80,225
 Accounts Payable - Related Party                      2,250         2,250
 Interest Payable                                     25,919        22,476
 Advanced Royalty Payments                            29,700         3,700
 Note Payable-Related Party                          324,234       324,234
                                                 ------------  ------------
  Total Current Liabilities                          433,754       432,885

Stockholders' Equity
---------------------
 Common Stock, Authorized 50,000,000
  Shares of $.001 Par Value, Issued and
  Outstanding 155,927, Retroactively Restated,
  Respectively                                           156           156
 Capital in Excess of Par Value                       44,761        44,761
 (Deficit) Accumulated During Development Stage     (438,349)     (442,463)
                                                 ------------  ------------
  Total Stockholders' Equity                        (393,432)     (397,546)
                                                 ------------  ------------
  Total Liabilities and Stockholders' Equity     $    40,322   $    35,339
                                                 ============  ============

</Table>



               See accompanying notes to financial statments.
                                     3

                       Softwall Equipment Corporation
                       (a Development Stage Company)
                          Statements of Operations
<Table>
<Caption>
                                                              For the Period
                                                                   October
                                                                    5, 1998
                                    For the Three Months Ended   (Inception)
                                             March       March     to March
                                          31, 2004    31, 2003     31, 2004
                                       ----------- -----------  -----------
                                       (Unaudited) (Unaudited)
<S>                                    <C>         <C>          <C>
Revenues
--------

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

Expenses
--------

 General and Administrative                   911      22,925      440,206
 Depreciation Expense                         819       1,434       23,624
 Research & Development                      -           -          16,715
                                       ----------- -----------  -----------
   Total Expenses                           1,730      24,359      480,545

   Loss from Operations                    (1,730)    (24,359)    (461,261)

Other Income (Expenses)
-----------------------

 License Fee Income                        10,000       5,900       60,000
 Interest Expense                          (4,156)     (2,329)     (26,838)
 Loss on Abandonment of Purchase
  Agreement                                  -           -         (10,000)
 Gain (Loss) on Sale of Equipment            -           -              50
                                       ----------- -----------  -----------
   Total Other Income (Expenses)            5,844       3,571       23,212
                                       ----------- -----------  -----------
   Income (Loss) Before Taxes               4,114     (20,788)    (438,049)

   Taxes                                     -           -             300
                                       ----------- -----------  -----------
   Net Income (Loss)                   $    4,114  $  (20,788)  $ (438,349)
                                       =========== ===========  ===========

Net Income (Loss) per Share            $     0.03  $    (0.15)

Weighted Average Shares Outstanding       155,927     141,427

</Table>
              See accompanying notes to financial statements.
                                     4

                       Softwall Equipment Corporation
                       (a Development Stage Company)
                          Statements of Cash Flows
<Table>
<Caption>
                                                                   For the Period
                                                                        October
                                                                         5, 1998
                                         For the Three Months Ended  (Inception)
                                                  March       March     to March
                                               31, 2004    31, 2003     31, 2004
                                            ----------- -----------  -----------
                                            (Unaudited) (Unaudited)
<S>                                         <C>         <C>          <C>
Cash Flows from Operating Activities
------------------------------------
 Net Income (Loss)                          $    4,114  $  (20,787)  $ (438,349)
 Adjustments to Reconcile Net (Loss) to
 Net Cash Provided by Operating Activities:
  Depreciation Expense                             819       1,434       23,624
  Stock for Services/Expenses                        -           -        6,467
  (Gain) on Sale of Equipment                        -           -          (50)
  Increase (Decrease) in Accounts Payable      (28,574)      1,415       53,901
  Increase in Advanced Royalties Payments       26,000           -       29,700
  Increase (Decrease) in Interest Payable        3,443       2,328       25,919
                                            ----------- -----------  -----------
   Net Cash Flows Provided (Used)
   by Operating Activities                      (5,802)    (15,610)    (298,798)

Cash Flows from Investing Activities
------------------------------------
 Purchase of Fixed Assets                            -           -      (29,379)
 Sale of Fixed Assets                                -           -          200
 Purchase of Patent                             (1,670)     (1,000)     (35,701)
 Reimbursement for Patent Costs                      -           -        6,031
                                            ----------- -----------  -----------
   Net Cash Flows Provided (Used)
   by Investing Activities                      (1,670)     (1,000)     (58,849)

Cash Flows from Financing Activities
------------------------------------
 Proceeds from Stock Sales                           -           -       24,450
 Proceeds from Notes Payable                         -      16,500      324,234
                                            ----------- -----------  -----------
   Net Cash Flows Provided (Used)
   by Financing Activities                           -      16,500      349,684
                                            ----------- -----------  -----------
   Net Increase (Decrease) in Cash               4,132        (110)       3,690

   Cash, Beginning of Period                     3,690       2,345            -
                                            ----------- -----------  -----------
   Cash, End of Period                      $    7,822  $    2,235   $    3,690
                                            =========== ===========  ===========
Supplemental Cash Flow Information
----------------------------------
 Interest                                   $      713  $        -   $      713
 Taxes                                               -           -          200

Non Cash Disclosures
--------------------
 Stock Issued for Assets                             -           -       18,010
 Stock Issued for Services                           -           -        6,467
</Table>
              See accompanying notes to financial statements.
                                     5
                       Softwall Equipment Corporation
                       (a Development Stage Company)
                     Notes to the Financial Statements
                               March 31, 2004

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

The financial statements for the three months ended March 31, 2004 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, 2003 audited
financial statements.  The results of operations for the periods ended
March 31, 2004 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 QUARTER ENDING MARCH 31, 2004

SOFTWALL

The Softwall prototype has been moved from the BYU campus to the Stansbury
Mine site and is currently stored in the Mine Shop awaiting further field
testing and transport to IMC Phosphate's operations in Florida.

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 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.

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.  The
company continued its patent prosecution efforts in Europe, Canada and
Australia this quarter.

Plans for this coming year will involve further refinement coordination
with IMC Phosphates as to a convenient time for production testing at their
pit in Mulberry Florida.  The Prototype has been Moved to the Stansbury,
Mine Shop in Rock Springs Wyoming for storage and upgrade of the  of the
water sluicing system.  and commercial demonstration for tailings mining.

SACUM Conveyor Technology
--------------------------
Revenue for the quarter was entirely from advance royalties from New
Stansbury Coal Company (NSCC) in prepayment of production royalties.
Management activities for the quarter involved working with NSCC in
organizing short term and long term financing for both companies.

                                  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

                                     7

                                 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 20, 2004                  Softwall Equipment Corporation

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
















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