SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                   FORM 10-QSB


 Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
              of 1934 for the Quarterly Period Ended June 30, 2002


                         Commission File Number 0-25853



                             SCIENTIFIC ENERGY, INC.

        (Exact name of small business issuer as specified in its charter)


         Nevada                                                 87-0570975

(State or other jurisdiction of                              (I.R.S. Employer

Incorporation or organization)                               Identification No.)


     630 North 400 West                                             84103
    Salt Lake City, Utah
(Address of principal executive offices)                         (Zip Code)


                                 (801) 359-2410

                           (Issuer's telephone number)



Check mark  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the  Exchange  Act of 1934  during the past 12 months (or
for such shorter period that the issuer was required to file such reports),  and
(2) has been  subject  to such  filing  requirements  for the past 90 days.  Yes
X No

State the number of shares outstanding of each of the issuer's classes of common
equity,  as of the latest  practicable  date.  As of June 30,  2002,  issuer had
42,200,000 shares of issued and outstanding common stock, par value $0.001.

Transitional Small Business Disclosure Format:  Yes   No X



<PAGE>

                         PART I - FINANCIAL INFORMATION


                          Item 1. Financial Statements


                         INDEPENDENT ACCOUNTANT'S REPORT


Scientific Energy, Inc.
(A Development Stage Company)


     We have reviewed the accompanying  consolidated balance sheet of Scientific
Energy,  Inc.  as of June 30,  2002  and  December  31,  2001,  and the  related
consolidated  statements  of  operations  for  the  three  and  six  months  and
statements of cash flows for the six months ended June 30, 2002. These financial
statements are the responsibility of the Company's management.

     We conducted our review in accordance  with  standards  established  by the
American  Institute  of  Certified  Public  Accountants.  A  review  of  interim
financial  information consists principally of applying analytical procedures to
financial  data and making  inquiries of persons  responsible  for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with generally accepted auditing standards, the objective of which is
the expression of an opinion regarding the financial statement taken as a whole.
Accordingly, we do not express such an opinion.

     Based on our review,  we are not aware of any material  modifications  that
should be made to the accompanying consolidated financial statements for them to
be in conformity with generally accepted accounting principles.

                                                   Respectfully submitted



                                                   /S/ ROBISON, HILL & CO.
                                                   Certified Public Accountants
Salt Lake City, Utah
August 12, 2002






<PAGE>

                             SCIENTIFIC ENERGY, INC.
                          (A Development Stage Company)
                           CONSOLIDATED BALANCE SHEET
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                                  June 30,          December 31,
                                                                                    2002                2001
                                                                             ------------------  ------------------
ASSETS
Current Assets:
<S>                                                                          <C>                 <C>
Cash & Cash Equivalents                                                      $            5,844  $               10
Prepaid Expenses                                                                          1,032              64,306
                                                                             ------------------  ------------------

     Total Current Assets                                                                 6,876              64,316
                                                                             ------------------  ------------------

Other Assets:
Intangibles                                                                              50,000             250,040
                                                                             ------------------

     Total Assets                                                            $           56,876  $          314,356
                                                                             ==================  ==================

LIABILITIES
Current Liabilities:
Accounts Payable                                                                         42,751              31,692
Accrued Payroll Liabilities                                                                   -               4,085
Note Payable - Shareholder                                                               59,415             196,879
                                                                             ------------------  ------------------

     Total Liabilities                                                                  102,166             232,656
                                                                             ------------------  ------------------

STOCKHOLDERS' EQUITY
Common Stock, Par Value $.001,
   Authorized 100,000,000 shares
   Issued 42,200,000 Shares at June 30, 2002 and
   27,000,000 Shares at December 31, 2001                                                42,200              27,000
Paid-In Capital                                                                         588,272             223,472
Deficit Accumulated During the
   Development Stage                                                                   (675,762)           (168,772)
                                                                             ------------------  ------------------

     Total Stockholders' Equity                                                         (45,290)             81,700
                                                                             ------------------  ------------------

     Total Liabilities and Stockholders' Equity                              $           56,876  $          314,356
                                                                             ==================  ==================
</TABLE>


                 See accompanying notes and accountants' report.


<PAGE>


                             SCIENTIFIC ENERGY, INC.
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>


                                                                                                               Cumulative
                                                                                                                 since
                                                                                                                May 30,
                                                      For the Period                       For the Period         2001
                                   For the Three       May 30, 2001       For the Six       May 30, 2001       Inception
                                                            to                                   to
                                    Months Ended                         Months Ended                              of
                                      June 30,           June 30,          June 30,           June 30,        Development
                                        2002               2001              2002               2001             Stage
                                 ------------------ ------------------ ----------------- ------------------ ----------------
<S>                              <C>                <C>                <C>               <C>                <C>
Revenues:                        $                - $                - $               - $                - $              -
                                 ------------------ ------------------ ----------------- ------------------ ----------------

Expenses:
Research & Development                        3,573             30,830            13,116             30,830           67,952
General & Administrative                     39,723             31,524           191,213             31,524          301,317
                                 ------------------ ------------------ ----------------- ------------------ ----------------

     Loss from Operations                   (43,296)           (62,354)         (204,329)           (62,354)        (369,269)

Other Income (Expense)
Interest, Net                                (2,917)               (82)           (6,910)               (82)         (10,742)
Write-down of Technology
    and Royalties                            (9,874)                 -          (295,751)                 -         (295,751)
                                 ------------------ ------------------ ----------------- ------------------ ----------------

     Net Loss                    $          (56,087)$          (62,436)$        (506,990)$          (62,436)$       (675,762)
                                 ================== ================== ================= ================== ================

Basic & Diluted Loss
Per Share                        $                - $                - $           (0.02)$                -
                                 ================== ================== ================= ==================
</TABLE>












                 See accompanying notes and accountants' report.


<PAGE>

                             SCIENTIFIC ENERGY, INC.
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                                                                     Cumulative
                                                                                                       since
                                                                               For the Period         May 30,
                                                           For the Period       May 30, 2001            2001
                                                                Ended                to             Inception of
                                                              June 30,            June 30,          Development
                                                                2002                2001               Stage
                                                          -----------------  ------------------  ------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
<S>                                                       <C>                <C>                 <C>
Net Loss                                                  $        (506,990) $          (62,436) $         (675,762)

Adjustments to Reconcile Net Loss to Net
Cash Used in Operating Activities:
Write-down of Technology and Royalties                              295,751                   -             295,751
Stock Issued for Expenses                                           130,000                   -             130,000

Change in operating assets and liabilities:
(Increase) Decrease in Prepaid Expenses                             (32,437)                  -             (96,743)
Increase (Decrease) in Accounts Payable                              11,059              31,495              42,751
Increase (Decrease) in Bank Overdraft                                     -               7,671                   -
Increase (Decrease) in Accrued Expenses                              (4,085)                 82                   -
                                                          -----------------  ------------------  ------------------
  Net Cash Used in operating activities                            (106,702)            (23,188)           (304,003)
                                                          -----------------  ------------------  ------------------

CASH FLOWS FROM INVESTING
ACTIVITIES:
Net cash provided by investing activities                                 -                   -                   -
                                                          -----------------  ------------------  ------------------

CASH FLOWS FROM FINANCING
ACTIVITIES:
Cash acquired in Merger                                                   -                 432                 432
Note Payable Shareholder                                            112,536              22,756             309,415
                                                          -----------------  ------------------  ------------------
  Net Cash Provided by Financing Activities                         112,536              23,188             309,847
                                                          -----------------  ------------------  ------------------

Net (Decrease) Increase in Cash
       and Cash Equivalents                                           5,834                   -               5,844
Cash and Cash Equivalents at
       Beginning Period                                                  10                   -                   -
                                                          -----------------  ------------------  ------------------

  Cash and Cash Equivalents at End of Period              $           5,844  $                -  $            5,844
                                                          =================  ==================  ==================
</TABLE>


<PAGE>

                             SCIENTIFIC ENERGY, INC.
                          (A Development Stage Company)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>


                                                                                                     Cumulative
                                                                                                       since
                                                                               For the Period         May 30,
                                                           For the Period       May 30, 2001            2001
                                                                Ended                to             Inception of
                                                              June 30,            June 30,          Development
                                                                2002                2001               Stage
                                                          -----------------  ------------------  ------------------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for:
<S>                                                       <C>                <C>                 <C>
  Interest                                                $           2,459  $                -  $            3,812
  Income taxes                                            $               -  $                -  $                -

SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING
ACTIVITIES: None

Common Stock Exchanged for Technology                     $         250,040  $                -  $          250,040
Note Payable Converted to Common Stock                    $         250,000  $                -  $          250,000

</TABLE>



















                 See accompanying notes and accountants' report.


<PAGE>

                             SCIENTIFIC ENERGY, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2002

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     This  summary of  accounting  policies for  Scientific  Energy,  Inc.  "the
Company," (a development  stage company) is presented to assist in understanding
the Company's financial statements. The accounting policies conform to generally
accepted  accounting  principles  and  have  been  consistently  applied  in the
preparation of the financial statements.

Interim Reporting

     The unaudited  financial  statements as of June 30, 2002, in the opinion of
management,  all adjustments  (which include only normal recurring  adjustments)
necessary to fairly state the financial  position and results of operations  for
the six  months.  Operating  results for  interim  periods  are not  necessarily
indicative of the results which can be expected for full years.

     In this interim report,  the Company,  has made a determination  to make an
adjustment of $295,750.  This  write-down is made pursuant to the  determination
that,  research on the long life battery  technologies has failed to achieve any
meaningful  results,  the Company is no longer going to fund its research at its
New Mexico  research  facility and that it will terminate its lease,  employment
and royalty agreements, thereby ceasing all forward progress on the research and
development of the Company's technologies.

Nature of Operations and Going Concern

     The  accompanying  financial  statements have been prepared on the basis of
accounting  principles  applicable to a "going  concern",  which assume that the
Company  will  continue in  operation  for at least one year and will be able to
realize  its assets  and  discharge  its  liabilities  in the  normal  course of
operations.

     Several  conditions  and events cast doubt about the  Company's  ability to
continue as a "going concern," in particular the aforementioned determination by
the  Company to  write-down  some of their  technology  assets.  The Company has
incurred  net losses of  approximately  $506,990  for the first two  quarters of
2002, has a liquidity  problem,  and requires  additional  financing in order to
finance its business  activities  and meet its  obligations on an ongoing basis.
The Company  has  attempted  to pursue  alternative  financing  with one entity,
although no commitments have been obtained. In the interim,  shareholders of the
Company have committed to meeting its minimal operating expenses.

     The Company's future capital  requirements  will depend on numerous factors
including,  but  not  limited  to,  its  willingness  to  continue  progress  in
developing its products.





<PAGE>

                             SCIENTIFIC ENERGY, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2002
                                   (Continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

     These  financial  statements  do not  reflect  adjustments  that  would  be
necessary  if the Company  were unable to continue as a "going  concern".  While
management believes that the actions already taken or planned, will mitigate the
adverse conditions and events which raise doubt about the validity of the "going
concern" assumption used in preparing these financial  statements,  there can be
no assurance that these actions will be successful.

     If  the  Company  were  unable  to  continue  as a  "going  concern",  then
substantial adjustments would be necessary to the carrying values of assets, the
reported  amounts of its  liabilities,  the reported  expenses,  and the balance
sheet classifications used.

Organization and Basis of Presentation

     The  Company  was  originally  incorporated  under the laws of the State of
Nevada,  under the name of Quazon Corp.,  Inc.  Scientific Energy was originally
incorporated under the laws of the State of Utah on May 30, 2000. As of June 30,
2002,  the  Company  is in the  development  stage  and  has not  begun  planned
principal operations.

Acquisition of Subsidiary

     On June 6, 2001,  Scientific  Energy,  Inc (A Utah Corporation) and Quazon,
Corp.   (A  Nevada   Corporation)   entered  into  an  agreement   and  plan  of
reorganization.  Pursuant to the agreement,  Scientific  Energy,  Inc.  acquired
20,000,000  shares of  Quazon's  shares in  exchange  for 100% of the issued and
outstanding shares of Scientific Energy.

Principles of Consolidation

     The consolidated  financial  statements  include the accounts of Scientific
Energy, Inc. (formerly Quazon,  Corp.) a Nevada corporation and its wholly-owned
subsidiary Scientific Energy, Inc., a Utah corporation.

     The results of subsidiaries  acquired during the year are consolidated from
their effective dates of acquisition.

     All  significant   inter-company   accounts  and  transactions   have  been
eliminated.




<PAGE>

                             SCIENTIFIC ENERGY, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2002
                                   (Continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Nature of Business

     The Company plans to enter into a written agreement with Grandway-USA,  and
its sister company in Taiwan and China for such entities to fund research toward
the  development  and  manufacture  of an extended life battery pack for lap-top
computers.  There can be no assurance that such an agreement will be reached and
finalized on terms and conditions  acceptable to the Company or, if an agreement
is reached,  that the development efforts will results in marketable products or
revenues to the Company.

Cash and Cash Equivalents

     For purposes of the  statement  of cash flows,  the Company  considers  all
highly liquid debt instruments purchased with a maturity of three months or less
to be cash equivalents to the extent the funds are not being held for investment
purposes.

Pervasiveness of Estimates

     The  preparation  of financial  statements  in  conformity  with  generally
accepted  accounting  principles  required  management  to  make  estimates  and
assumptions  that  affect the  reported  amounts of assets and  liabilities  and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from those estimates.

Concentration of Credit Risk

     The Company has no significant  off-balance-sheet  concentrations of credit
risk such as foreign  exchange  contracts,  options  contracts or other  foreign
hedging arrangements.

Loss per Share

     The  reconciliations  of the numerators and  denominators of the basic loss
per share computations are as follows:


<PAGE>

                             SCIENTIFIC ENERGY, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2002
                                   (Continued)

NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)

Loss per Share (Continued)
<TABLE>
<CAPTION>
                                                                                                     Per-Share
                                                              Income              Shares               Amount
                                                              ------              ------               ------
                                                           (Numerator)         (Denominator)

                                     For the Three Months Ended June 30, 2002
Basic Loss per Share
<S>                                                     <C>                          <C>         <C>
Loss to common shareholders                             $          (56,087)          34,904,000  $                -
                                                        ==================  ===================  ==================

                                   For the Period May 30, 2001 to June 30, 2001
Basic Loss per Share
Loss to common shareholders                             $          (62,436)          27,000,000  $                -
                                                        ==================  ===================  ==================

                                      For the Six Months Ended June 30, 2002
Basic Loss per Share
Loss to common shareholders                             $         (506,990)          30,952,000  $           (0.02)
                                                        ==================  ===================  ==================

                                   For the Period May 30, 2001 to June 30, 2001
Basic Loss per Share
Loss to common shareholders                             $          (62,436)          27,000,000  $                -
                                                        ==================  ===================  ==================
</TABLE>
         As of June 30, 2002, there are no common stock equivalents.

NOTE 2 - INCOME TAXES

     As of June 30, 2002, the Company had a net operating loss  carryforward for
income tax  reporting  purposes  of  approximately  $675,000  that may be offset
against future taxable income through 2022. Current tax laws limit the amount of
loss  available to be offset  against  future  taxable income when a substantial
change in ownership  occurs.  Therefore,  the amount  available to offset future
taxable income may be limited. No tax benefit has been reported in the financial
statements,  because the Company  believes  there is a 50% or greater chance the
carry-forwards  will expire unused.  Accordingly,  the potential tax benefits of
the loss carry-forwards are offset by a valuation allowance of the same amount.



<PAGE>

                             SCIENTIFIC ENERGY, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2002
                                   (Continued)

NOTE 3 - DEVELOPMENT STAGE COMPANY

     The  Company  has not begun  principal  operations  and as is common with a
development  stage  company,  the Company has had  recurring  losses  during its
development  stage.  The  Company's  financial  statements  are  prepared  using
generally  accepted  accounting  principles  applicable to a going concern which
contemplates  the  realization  of assets and  liquidation of liabilities in the
normal course of business.  However,  the Company does not have significant cash
or other material  assets,  nor does it have an  established  source of revenues
sufficient to cover its  operating  costs and to allow it to continue as a going
concern.  In the interim,  shareholders of the Company have committed to meeting
its minimal operating expenses.

NOTE 4 - COMMITMENTS

     As of June 30, 2002 all  activities  of the Company have been  conducted by
corporate  officers  from  their  business  offices.  Currently,  there  are  no
outstanding  debts owed by the company for the use of these facilities and there
are no commitments for future use of the facilities.

     The  Company,  as of the date of this report has  terminated  their  office
space for a research lab in New Mexico.  During the first  quarter of 2002,  the
Company decided to move its research to a new facility in Taiwan and China.

NOTE 5 - EMPLOYMENT CONTRACTS / ROYALTY AGREEMENT

     The Company,  as of the date of this  report,  has  terminated  all royalty
agreements  and  employment  contracts  with Paul Thomas,  Daryl  Conley,  David
Sanders and Otis H. Sanders. The royalty agreements provided for a royalty of 5%
of the  gross  manufacturing  cost of the  product  invented  by such  inventor.
Payment  of  royalties  was due on or before  the 30th day after  each  calendar
quarter for the previous quarter's manufacturing costs. No actual royalties were
ever paid,  however,  the royalty  agreements also provided for advances against
future royalties.

     The  annual  salaries  and  royalty   advances  that  resulted  from  these
agreements for each of these individuals were as follows:
<TABLE>
<CAPTION>
                                                                          Annual              Annual
                               Name                                      Salaries            Advances
------------------------------------------------------------------   -------------------------------------
<S>                                                                  <C>                <C>
Paul Thomas                                                          $           8,000  $           15,996
Daryl Conley                                                         $          14,000  $           27,996
David Sanders                                                        $           8,000  $           15,996
Otis H. Sanders                                                      $          20,000  $           39,966
                                                                     -------------------------------------

     Total                                                           $          50,000  $           99,954
                                                                     =================  ==================
</TABLE>
<PAGE>

                             SCIENTIFIC ENERGY, INC.
                          (A Development Stage Company)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                     FOR THE SIX MONTHS ENDED JUNE 30, 2002
                                   (Continued)

NOTE 6- INTANGIBLE ASSETS

     On May 30, 2001,  Scientific Energy, Inc. (Utah) acquired intangible assets
including  technology,  trade secrets,  and patent  applications  for design and
process and potential patents on either design or process on their technology of
$250,040.  The  Company  became  the  owner of the  technology  pursuant  to the
reorganization  entered into  between the Company and  Scientific  Energy,  Inc.
(Utah).  This technology  consists of energy cell technology that is believed to
provide a reliable energy source that can be used in portable electronic devices
and will increase the life of existing batteries significantly.

     During the first quarter of 2002, management reviewed the reasonableness of
the value of their  technology,  and decided that in the absence of research and
development  efforts the value of the  technology was only $50,000 at that time.
Thus, the intangible assets were written-down $200,000.

NOTE 7 - LINE OF CREDIT / NOTE PAYABLE - SHAREHOLDER

     On August 15,  2001,  the  president  of the  Company  gave the  Company an
unsecured line of credit for up to $350,000. The Line carries interest at Prime.
As of June 30, 2002 the Company owes $59,415 against this line of credit and has
been  reported  along  with  accrued  interest  in  the  accompanying  financial
statements as "Note Payable Shareholder."

NOTE 8- COMMON STOCK TRANSACTIONS

     On May 17, 2002,  the  president of the Company  converted  $250,000 of his
note payable into 10,000,000  shares of common stock.  Also on May 17, 2002, the
Company issued an additional  5,200,000 shares for accrued salaries of $130,000.
These  transactions  were  valued at  approximately  $0.025 per share,  the fair
market value of shares on the date of issuance.




<PAGE>



ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

     The  following   information   should  be  read  in  conjunction  with  the
consolidated  financial statements and notes thereto appearing elsewhere in this
Form 10-QSB.

Introduction

     The Company is a development stage company that has not engaged in material
operations  or realized  revenues for several  years.  An officer of the Company
has, in the past, advanced funds for payment of certain expenses incurred by the
Company. A portion of these advances has been subject to a note payable, and the
Company has issued shares of Company common stock for other advances.

     For the immediate  future,  necessary  funds,  including funds for expenses
related to the Company's reporting obligations under the Securities Exchange Act
of 1934,  will be provided by Todd Crosland,  president,  director and principal
stockholder  of the Company,  under a $350,000  loan  agreement.  As of June 30,
2002,  the  Company  owes  $59,415  on this note.  Until the  Company is able to
generate revenues or is able to obtain significant  outside financing,  there is
substantial doubt about its ability to continue as a going concern.

     At June 30, 2002,  the Company had total assets of $56,876,  consisting  of
cash,  prepaid  expenses  and  technology.  The  technology  was acquired by the
Company as part of a plan of reorganization with Scientific Energy, Inc., a Utah
Corporation  ("Scientific").  Pursuant  to the  agreement,  the  Company  issued
20,000,000  shares in exchange for 100% of the issued and outstanding  shares of
Scientific. The technology is the sole asset of Scientific. Total liabilities at
June 30, 2002, were $102,166, consisting of accounts payable of $42,751 and note
payable shareholder of $59,415.

Results of Operations

     For  the  three  and  six  months   ended  June  30,   2002,   general  and
administrative expenses were $39,723 and $191,213, respectively and research and
development  expenses  were  $3,573  and  $13,116.  General  and  administrative
expenses are primarily for legal, accounting services and salaries.

     The Company does not anticipate any material revenues during the succeeding
12 months. During this interim period, the Company anticipates that its expenses
will be stable.

     In the  opinion  of  management,  inflation  has not and  will  not  have a
material effect on the operations of the Company.

Plan of Operation

     As of June 30, 2002, the president of the Company has agreed to loan to the
Company up to $350,000.  The loan is repayable on demand with  interest at prime
rate.  As of June 30, 2002 the Company owes $59,415  against this line of credit
and has been reported along with accrued interest in the accompanying  financial
statements as "Note Payable Shareholder". The Company estimates that


<PAGE>



this loan agreement  will provide  sufficient  cash for its operating  needs for
general and administrative expenses,  research and development,  minimum royalty
payments and marketing efforts for the next 12 months.

     Because the Company  lacks funds,  it may be necessary for the officers and
directors  either  to  advance  additional  funds to the  Company  or to  accrue
expenses  until such time as  revenues  are  generated  sufficient  to cover the
expenses of the Company. Management intends to hold expenses to a minimum and to
obtain  services on a contingency  basis when possible.  Further,  the Company's
directors will defer any compensation  until such time as revenues are generated
sufficient to cover the expenses of the Company. However, if the Company engages
outside  advisors or consultants in its  development of the business,  it may be
necessary for the Company to attempt to raise  additional  funds. As of the date
hereof,  the Company has not made any  arrangements or definitive  agreements to
use outside advisors or consultants or to raise any capital.

     In the event the Company  needs  additional  capital,  most likely the only
method  available  will be the private  sale of its  securities.  Because of the
nature of the Company as a  development  stage  company,  it is unlikely that it
could make a public sale of securities or be able to borrow any  significant sum
from either a commercial or private  lender.  There can be no assurance that the
Company will be able to obtain  additional  funding when and if needed,  or that
such funding, if available, can be obtained on terms acceptable to the Company.

     The Company  does not expect to  purchase or sell any plant or  significant
equipment and does not expect significant  changes in the number of employees in
the next 12 months.

Net Operating Loss

     As of June 30, 2002, the Company had a net operating loss carry-forward for
income tax  reporting  purposes  of  approximately  $675,000  that may be offset
against future taxable income through 2022. Current tax laws limit the amount of
loss  available to be offset  against  future  taxable income when a substantial
change in ownership  occurs.  Therefore,  the amount  available to offset future
taxable income may be limited. No tax benefit has been reported in the financial
statements,  because the Company  believes  there is a 50% or greater chance the
carry-forwards  will expire unused.  Accordingly,  the potential tax benefits of
the loss carry-forwards are offset by a valuation allowance of the same amount.

Forward-Looking Information

     This report includes  forward-looking  statements because we believe it may
be  helpful  to   investors   to   communicate   our  plans  and   expectations.
Forward-looking  statements  about  what may  happen in the  future are based on
management's  beliefs,   assumptions  and  plans  for  the  future,  information
currently available to management,  and other statements that are not historical
in nature.  Forward-looking statements include statements in which words such as
"expect,"  "anticipate,"  "intend," "plan," "believe,"  estimate," "consider" or
similar  expressions  are  used.  These  forward-  looking  statements  are  not
guarantees  of  future   performance  and  involve  risks,   uncertainties   and
assumptions, including among others:



<PAGE>




     *    We may not be able to develop  commercially  viable  products based on
          our technologies.

     *    We have not obtained any third-party  independent  verification of our
          test results or of the efficacy of our product designs.

     *    We cannot assure that our  intellectual  properties do not infringe on
          the intellectual properties of others.

     *    We  may  not  be  able  to  prevent  others  from  infringing  on  our
          intellectual properties.

     *    We may not be able to obtain required additional capital.

     *    Our  technologies  may not  lead to  commercial  products  that can be
          manufactured  readily  or  economically  in large  numbers  that  will
          operate efficiently or economically.

     *    We may not be able to market any products we develop.

     Although  we believe our plans and  expectations  stated,  reflected  in or
suggested by our forward- looking statements are reasonable,  our future results
and  stockholder  values may differ  materially  from those  expressed  in these
forward-looking  statements.  Many of the  factors  that  will  determine  these
results  and  values  are beyond  our  ability  to  control  or  predict.  These
statements  reflect  management's  current  view of our  future  events  and are
subject to  certain  risks,  uncertainties,  assumptions  and risks.  Any of the
factors noted above or elsewhere in this document, as well as in other materials
filed with the Securities and Exchange  Commission,  should be considered before
any investor  decides to purchase or retain any of our  securities.  Any of such
factors  could have a material  adverse  effect on our  business  and  financial
condition and prospects,  results of operations and trading price for our common
stock.

     Our forward-looking  statements speak only as of the date they are made and
should not be relied upon as representing  our plans and  expectations as of any
subsequent  date.  We  do  not  undertake  to  update,  correct  or  revise  any
forward-looking  statements, even if our plans and expectations change. However,
from time to time,  we may  voluntarily  update,  correct or revise our previous
forward- looking statements.





<PAGE>

                           PART II--OTHER INFORMATION


ITEM 1.  LEGAL PROCEEDINGS

     There are  presently no material  pending  legal  proceedings  to which the
Company or any of its subsidiaries is a party or to which any of its property is
subject and, to the best of its knowledge,  no such actions  against the Company
are contemplated or threatened.


ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

     On May 17, 2002,  the  president of the Company  converted  $250,000 of his
note payable into 10,000,000  shares of common stock.  Also on May 17, 2002, the
Company issued an additional  5,200,000 shares for accrued salaries of $130,000.
These  transactions  were  valued at  approximately  $0.025 per share,  the fair
market value of shares on the date of issuance.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

     None.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     None.

ITEM 5.  OTHER INFORMATION

     None.














<PAGE>



ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

     (a) Exhibits:
<TABLE>
<CAPTION>
                  SEC
   Exhibit     Reference
   Number        Number                             Title of Document                               Location

------------- ------------ ------------------------------------------------------------------- -------------------

<S>                        <C>                                                                 <C>
      Item 2.              Plan of Acquisition, Reorganization, Arrangement, Liquidation or
                           Succession

         2.01 2            Agreement and Plan of Reorganization among Quazon Corp.,            Incorporated by
                           Scientific Energy, Inc., and the stockholders of Scientific Energy, reference(1)
                           Inc. dated June 6, 2001


       Item 3 3            Articles of Incorporation and Bylaws

------------- ------------ ------------------------------------------------------------------- -------------------
         3.01 3            Amendment to Articles of Incorporation to change the name of the    Incorporated by
                           Company to Scientific Energy, Inc.                                  reference(2)

     Item 10.              Material Contracts

------------- ------------ ------------------------------------------------------------------- -------------------
        10.01 10           Royalty Agreement dated May 31, 2001, by and between Otis H.        Incorporated by
                           Sanders, David Sanders, Daryl Conley, Paul Thomas and Scientific    reference(2)
                           Energy, Inc.

        10.02 10           Form of Employment Agreement dated May 31, 2001, by and             Incorporated by
                           between Scientific Energy, Inc. and related schedule of employees   reference(2)
                           and compensation

        10.03 10           Loan Agreement dated as of June 15, 2001, between Scientific        Incorporated by
                           Energy, Inc. and Todd B. Crosland with related form of Promissory   reference(2)
                           Note

     Item 99.
------------- ------------ ------------------------------------------------------------------- -------------------
         99.1 99           Certification Pursuant to 18 U.S.C. S 1350, As Adopted Pursuant to
                           Section 906 of the Sarbanes-Oxley Act of 2002.
         99.2 99           Certification Pursuant to 18 U.S.C. S 1350, As Adopted Pursuant to
                           Section 906 of the Sarbanes-Oxley Act of 2002.
</TABLE>
(1)  Incorporated  by  reference  from the current  report on Form 8-K,  June 6,
     2001.
(2)  Incorporated by reference from the Form 10-QSB, June 30, 2001.

     (b)  Reports on Form 8-K.  The Company did not file any reports on Form 8-K
during the quarter ended June 30, 2002.

<PAGE>

                                   SIGNATURES

     In accordance  with the  requirements  of the Exchange Act, the  registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.

                                                     SCIENTIFIC ENERGY, INC.


Date: August 12, 2002             By /S/ Todd B. Crosland
                                     -------------------------------------------
                                     Todd B. Crosland
                                     President and Chief Financial Officer
                                    (Principal Executive Officer)

Date: August 12, 2002             By /S/ Jana Meyer
                                     -------------------------------------------
                                     Jana Meyer
                                     Secretary/Treasurer and Director
                                    (Principal Financial and Accounting Officer)