**U.S.      Securities and Exchange Commission**

**Washington,      D.C. 20549**

**Form      10-QSB**

*(Mark      One)*

|  | x     | Quarterly                Report Pursuant to Section 13 or 15(d) of the                Securities Exchange Act of                1934 |
|--|---------------------------|--------------------------------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended June 30, 2006**

|  | o | Transition                Report Pursuant to Section 13 or 15(d) of                the Securities Exchange Act |
|--|---|----------------------------------------------------------------------------------------------------------------|

**000-29780**

**Solpower      Corporation**

*(Exact      name of Registrant as specified in its charter)*

|  **Nevada**                                                                                       |  **87-0384678**                                     |
|--------------------------------------------------------------------------------------------------------|----------------------------------------------------------|
|  *(State                or other jurisdiction of *incorporation                or organization)** |  *(IRS                Employer Identification No.)* |

**307      East 22**
**nd**

**      Street**

**San      Pedro, CA 90731**

*(Address      of principal executive offices)*

**(310)      940-6408**

*(Issuer’s      telephone number)*

|   | Yes X | No                _  |   |
|--------|------------|---------------------------|--------|

|   | Yes                _ | No                 X |   |
|--------|----------------------|---------------------------|--------|

----

**Solpower      Corporation**

**Index      to Form 10-QSB Filing**

**For      the Quarter Ended June 30, 2006**

**Table      of Contents**

| **PART                   I****Financial                  Information** |
|-----------------------------------------------------------------------------|
|                                                                        |   | **Page** |
| Item                  1.                                                    | Financial                  Statements | 2 |
|                                                                        | Balance                  Sheet |   |   |
|                                                                        |     June                30, 2006 (Unaudited) | 3 |
|                                                                        | Statements                  of Operations and Comprehensive Income (Loss) |   |   |
|                                                                        |     For                the                Three Months Ended June 30, 2006 (Unaudited)  and                2005 (Unaudited) | 4 |
|                                                                        |   |   |  |
|                                                                        | Statements                  of Cash Flows |   |   |
|                                                                        |     For                the                Three Months Ended June 30, 2006 (Unaudited) and                2005 (Unaudited) | 5 |
|                                                                        |   |  |  |
|                                                                        | Notes                  to the Unaudited Financial Statements | 6 |
|                                                                        |   |   |   |
| Item                  2                                                     | Management’s Discussion                and Analysis and Plan of Operations | 9 |
|                                                                        |   |   |   |
| Item                  3.                                                    | Controls                and Procedures | 12 |
|                                                                        |   |   |   |
| **PART                  II****OTHER                  INFORMATION**          |
|                                                                        |   |   |   |
| Item                  2.                                                    | Changes                  in Securities and Use of Proceeds | 13 |
|                                                                        |   |   |   |
| Item                  4.                                                    | Submission                  of Matters to a Vote of Security Holders | 13 |
|                                                                        |   |   |   |
| Item                  6.                                                    | Exhibits | 13 |
|                                                                        |   |   |   |
| SIGNATURES                                                                  | 13 |
|                                                                        |   |   |   |
| CERTIFICATIONS                                                              | 14 |

----

**Part      I**

**Financial      Information**

**Item      1. Financial Statements**

|    **SOLPOWER                  CORPORATION**                                                         |   |
|---------------------------------------------------------------------------------------------------------------------|--------|
|    **BALANCE                  SHEET**                                                                |   |
|    **June                  30, 2006**                                                                |   |
|    **(Unaudited)**                                                                                   |   |
|                                                                                                                |   |    |   |   |   |   |   |
|                                                                                                                |   |    |   |   |   |   |   |
|   **ASSETS**                                                                                              |   |   |   |   |   |
| CURRENT                  ASSETS:                                                                                    |   |    |   |   |   |   |   |
| Cash                  and cash equivalents                                                                     |   |   |   |   |   |   |   | $ | 1,885 |   |
| Accounts                  receivable, net of allowance for uncollectible accounts of $5,819                    |   |   |   |   |   |   |   |   | 2,995 |   |
| Royalties                  receivable                                                                          |   |   |   |   |   |   |   |   | 14,346 |   |
| Prepaid                  expenses                                                                              |   |   |   |   |   |   |   |   | 6,025 |   |
| Inventory                                                                                                      |   |   |   |   |   |   |   |   | 145,679 |   |
|  Total                  Current Assets                                                                         |   |   |   |   |   |   |   |   | 170,930 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |
| OTHER                  ASSETS:                                                                                      |   |   |   |   |   |   |   |   |   |   |
| Intangible                  royalty agreement, net of amortization of $4,500                                   |   |   |   |   |   |   |   |   | 115,500 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |
| TOTAL                  ASSETS                                                                                       |   |   |   |   |   |   |   | $ | 286,430 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |
|  **LIABILITIES                  AND STOCKHOLDERS' DEFICIT**                                                    |   |   |   |   |   |   |   |
| CURRENT                  LIABILITIES:                                                                               |   |   |   |   |   |   |   |   |   |   |
| Customer                  advances                                                                             |   |   |   |   |   |   |   | $ | 247,752 |   |
| Accounts                  payable - trade                                                                      |   |   |   |   |   |   |   |   | 255,573 |   |
| -                  related parties                                                                                  |   |   |   |   |   |   |   |   | 256,745 |   |
| Accrued                  expenses                                                                              |   |   |   |   |   |   |   |   | 126,112 |   |
|  Total                  Current Liabilities                                                                    |   |   |   |   |   |   |   |   | 886,182 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |
| Commitments                  and Contingencies                                                                 |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |
| STOCKHOLDERS'                  (DEFICIT):                                                                           |   |   |   |   |   |   |   |   |   |   |
| Preferred                  stock, $0.001 par value - 5,000,000 shares                                          |   |   |   |   |   |   |   |   |   |   |
| authorized;                  issued and outstanding, none                                                      |   |   |   |   |   |   |   |   | - |   |
| Common                  stock, $.001 par value - 100,000,000 shares                                            |   |   |   |   |   |   |   |   |   |   |
| authorized;                  70,559,727 shares issued and outstanding                                          |   |   |   |   |   |   |   |   | 705,597 |   |
| Additional                  paid in capital                                                                    |   |   |   |   |   |   |   |   | 12,455,625 |   |
| Accumulated                  (deficit)                                                                         |   |   |   |   |   |   |   |   | (13,760,974 | ) |
|  Total                  Stockholder's (Deficit)                                                                |   |   |   |   |   |   |   |   | (599,752 | ) |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |
| TOTAL                  LIABILITIES AND STOCKHOLDERS' (DEFICIT)                                                      |   |   |   |   |   |   |   | $ | 286,430 |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of these financial                  statements.        |   |
|                                                                                                                |   |   |   |   |   |   |   |   |   |   |

----

|  **SOLPOWER                  CORPORATION**                                     |
|-------------------------------------------------------------------------------------|
|  **STATEMENTS                  OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)** |
|  **(Unaudited)**                                                               |

|                                                                                                                                               |   |                                                                         |       |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------|------------|--------|--------|
|                                                                                                                                               |   |                  For                    the Three Months Ended June 30, |       |
|                                                                                                                                               |   | 2006                                                                         |       | 2005   |   |
|                                                                                                                                               |   |                                                                         |       |   |   |
| NET                  REVENUES                                                                                                                      |   | $                                                                            | 162,597    |   | $      | 43,702 |   |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| COST                  OF REVENUES                                                                                                                  |   |                                                                         | 74,979     |   |   | 22,378 |   |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| GROSS                  PROFIT                                                                                                                      |   |                                                                         | 87,618     |   |   | 21,324 |   |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| OPERATING                  COSTS AND EXPENSES:                                                                                                     |   |                                                                         |       |   |   |   |   |
| Selling,                  general and administrative expenses                                                                                 |   |                                                                         | 79,601     |   |   | 103,841 |   |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| PROFIT                  (LOSS) FROM OPERATIONS                                                                                                     |   |                                                                         | 8,017      |   |   | (82,517 | ) |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| OTHER                  INCOME (EXPENSE):                                                                                                           |   |                                                                         |       |   |   |   |   |
| Exchange                  rate differential                                                                                                   |   |                                                                         | 395        |   |   | - |   |
| Interest                  income                                                                                                              |   |                                                                         | -          |   |   | 12 |   |
| Royalty                  income                                                                                                               |   |                                                                         | 2,555      |   |   | - |   |
| Interest                  expense                                                                                                             |   |                                                                         | -          |   |   | - |   |
|                                                                                                                                               |   |                                                                         | 2,950      |   |   | 12 |   |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| PROFIT                  (LOSS) BEFORE PROVISION FOR INCOME TAXES                                                                                   |   |                                                                         |       |   |   |   |   |
| AND                  DISCONTINUED OPERATIONS                                                                                                  |   |                                                                         | 10,967     |   |   | (82,505 | ) |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| PROVISION                  FOR INCOME TAXES                                                                                                        |   |                                                                         | -          |   |   | - |   |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| PROFIT                  (LOSS) FROM CONTINUING OPERATIONS                                                                                          |   |                                                                         | 10,967     |   |   | (82,505 | ) |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| DISCONTINUED                  OPERATIONS:                                                                                                          |   |                                                                         |       |   |   |   |   |
| (Loss)                  from discontinued operations                                                                                          |   |                                                                         | -          |   |   | (16,328 | ) |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| NET                  PROFIT (LOSS)                                                                                                                 |   | $                                                                            | 10,967     |   | $      | (98,833 | ) |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| Basic                  and Diluted Profit (Loss) Per Common Share                                                                                  |   |                                                                         |       |   |   |   |   |
| Continuing                  operations                                                                                                        |   | $                                                                            | -          |   | $      | - |   |
| Discontinued                  operations                                                                                                      |   |                                                                         | -          |   |   | - |   |
| Total                                                                                                                                         |   | $                                                                            | -          |   | $      | - |   |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| Weighted                  Average Number of Common Shares Outsatnding                                                                              |   |                                                                         |       |   |   |   |   |
| Basic                                                                                                                                         |   |                                                                         | 70,559,727 |   |   | 69,309,727 |   |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| A                  summary of comprehensive income (loss) for the three months ended                  June 30,                  2006 and 2005 are: |   |                                                                         |       |   |   |   |   |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
|  Net                  Income (Loss)                                                                                                           |   | $                                                                            | 10,967     |   | $      | (98,833 | ) |
|  Foreign                  Currency Translation (Loss)                                                                                         |   |                                                                         | -          |   |   | 119 |   |
|  Comprehensive                  Income (Loss)                                                                                                 |   | $                                                                            | 10,967     |   | $      | (98,714 | ) |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |
| The                  accompanying notes are an integral part of these financial                  statements.                                       |   |
|                                                                                                                                               |   |                                                                         |       |   |   |   |   |

----

|  **SOLPOWER                  CORPORATION**                                                              |   |
|--------------------------------------------------------------------------------------------------------------|--------|
|  **STATEMENTS                  OF CASH FLOWS**                                                          |   |
|  **For                  the Three Months Ended June 30, 2006 and 2005**                                 |   |
|  **(Unaudited)**                                                                              |   |
|                                                                                                         |   |   |   | **2006** |   | **2005** |   |
| CASH                  FLOWS FROM OPERATING ACTIVITIES:                                                       |   |   |   |   |   |   |   |
| Net                  earnings (loss)                                                                         |   |   |   |   | $ | 10,967 |   | $ | (98,833 | ) |
| Gain                  (loss) from discontinued operations                                                    |   |   |   |   |   | - |   |   | (16,328 | ) |
| Net                  (loss) attributable to continuing operations                                            |   |   |   |   |   | 10,967 |   |   | (82,505 | ) |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| Adjustments                  to reconcile net earnings (loss) to                                             |   |   |   |   |   |   |   |   |   |   |
| net                  cash (used in) operating activities:                                                    |   |   |   |   |   |   |   |   |   |   |
| Depreciation                  and amortization                                                          |   |   |   |   |   | 1,500 |   |   | 320 |   |
| Net                  change in current assets and liabilities:                                               |   |   |   |   |   |   |   |   |   |   |
| Accounts                  receivable                                                                    |   |   |   |   |   | 29,999 |   |   | 53,037 |   |
| Royalties                  receivable                                                                   |   |   |   |   |   | (2,949 | ) |   | - |   |
| Prepaid                  expense                                                                        |   |   |   |   |   | 6,035 |   |   | 17,069 |   |
| Inventory                                                                                               |   |   |   |   |   | 32,465 |   |   | 11,199 |   |
| Deposits                                                                                                |   |   |   |   |   | 350 |   |   | 400 |   |
| Accounts                  payable - trade                                                               |   |   |   |   |   | 7,698 |   |   | (8,764 | ) |
| -                  related parties                                                                      |   |   |   |   |   | (865 | ) |   | (1,632 | ) |
| Accrued                  expenses                                                                       |   |   |   |   |   | 17,483 |   |   | (73,742 | ) |
|  Net                  Cash Provided by (Used in) Continuing Operating Activities                        |   |   |   |   |   | 102,683 |   |   | (84,618 | ) |
|  Net                  (loss) from discontinued operations                                               |   |   |   |   |   | - |   |   | (16,328 | ) |
|  Net                  Cash Provided by (Used in) Operating Activities                                   |   |   |   |   |   | 102,683 |   |   | (100,946 | ) |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM INVESTING ACTIVITIES:                                                       |   |   |   |   |   |   |   |   |   |   |
| Net                  change in investment of discontinued operations                                         |   |   |   |   |   | - |   |   | 16,328 |   |
| Purchase                  of equipment                                                                       |   |   |   |   |   | - |   |   | (1,212 | ) |
|  Net                  Cash Provided by Investing Activities                                             |   |   |   |   |   | - |   |   | 15,116 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| CASH                  FLOWS FROM FINANCING ACTIVITIES:                                                       |   |   |   |   |   |   |   |   |   |   |
| Bank                  overdraft                                                                              |   |   |   |   |   | (587 | ) |   | - |   |
| Proceeds                  from the sale of common stock and call options                                     |   |   |   |   |   | - |   |   | 5,500 |   |
| Net                  customer advances                                                                       |   |   |   |   |   | (100,211 | ) |   | 117,325 |   |
|  Net                  cash (Used in) Provided by Financing Activities                                   |   |   |   |   |   | (100,798 | ) |   | 122,825 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| INCREASE                  IN CASH AND CASH EQUIVALENTS                                                       |   |   |   |   |   | 1,885 |   |   | 36,995 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS, BEGINNING OF PERIOD                                              |   |   |   |   |   | - |   |   | 62,396 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| CASH                  AND CASH EQUIVALENTS, END OF PERIOD                                                    |   |   |   |   | $ | 1,885 |   | $ | 99,391 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   |   |   |   |   |   |   |   |   |
| The                  accompanying notes are an integral part of these financial                  statements. |   |

----

**SOLPOWER      CORPORATION**

**NOTES      TO THE FINANCIAL STATEMENTS**

**June      30, 2006**

**(Unaudited)**

**NOTE      1 - ORGANIZATION AND OPERATIONS **

**Organization**

*Company*

**Nature      of Operations**

*Soltron*
*®*

*,      *
*Soltron*
*®*

**Discontinued      Operations - Sale of Virtual Technologies Pty. Ltd.      (Australia)**

*Accounting      for the Impairment or Disposal of Long-lived Assets.*

----

|                                                              |   | Three                Months EndedJune                30, |   |
|-------------------------------------------------------------------|--------|----------------------------------------------------------|--------|
|                                                              |   | 2006                                                     |   | 2005 |   |
| Revenues                                                          |   |                                                     |   |   | $ | $                73,668 |   |
|                                                              |   |                                                     |   |   |   |   |   |
| Cost                of Revenues                                   |   |                                                     | -      |   |   | 38,764 |   |
|                                                              |   |                                                     |   |   |   |   |   |
| Gross                Profit                                       |   |                                                     | -      |   |   | 34,904 |   |
|                                                              |   |                                                     |   |   |   |   |   |
| Expenses:                                                         |   |                                                     |   |   |   |   |   |
| General                and administrative                         |   |                                                     | -      |   |   | 50,864 |   |
|                                                              |   |                                                     |   |   |   |   |   |
| Operating                Income (Loss) from Continuing Operations |   |                                                     | -      |   |   | (15,960 | ) |
|                                                              |   |                                                     |   |   |   |   |   |
| Other                Income (Expense):                            |   |                                                     |   |   |   |   |   |
| Interest                income                                    |   |                                                     | -      |   |   | 153 |   |
| Interest                expense                                   |   |                                                     | -      |   |   | (521 | ) |
| Total                Other Income (Expense)                       |   |                                                     | -      |   |   | (368 | ) |
|                                                              |   |                                                     |   |   |   |   |   |
| Income                (Loss) Before Provision for Income Taxes    |   |                                                     | -      |   |   | (16,328 | ) |
|                                                              |   |                                                     |   |   |   |   |   |
| Provision                for Income Taxes                         |   |                                                     | -      |   |   | - |   |
|                                                              |   |                                                     |   |   |   |   |   |
| Net                Loss from Discontinued Operations              |   | $                                                        | -      |   | $ | (16,328 | ) |

**NOTE      2 - BASIS OF PRESENTATION **

----

**NOTE      3 -**
**      GOING CONCERN**
** **

**NOTE      4 -**
**      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**Comprehensive      Income (Loss)**

*Reporting      Comprehensive Income*

**Loss      per Common Share**

**Foreign      Currency Translation**

**NOTE      5 - STOCKHOLDER’S (DEFICIT)**

**Warrants**

----

**Options      **

|                                        |   | Options                Outstanding |      | Options                Exercisable             |   |
|---------------------------------------------|--------|------------------------------------|-----------|------------------------------------------------|--------|
|                                        |   | Number                of Shares    |      | Weighted                Average Exercise Price |   | Number                of Shares |   | Weighted                Average Exercise Price |   |
| Balance,                March 31, 2006      |   |                               | 1,000,000 |                                           | $      | 0.15 |   |   | 1,000,000 |   | $ | 0.15 |   |
| Vested                                      |   |                               | --        |                                           |   |   |   |   | -- |   |   | -- |   |
| Granted                                     |   |                               | --        |                                           |   | -- |   |   | -- |   |   | -- |   |
| Exercised                                   |   |                               | --        |                                           |   | -- |   |   | -- |   |   | -- |   |
| Balance,                June 30, 2006       |   |                               | 1,000,000 |                                           | $      | 0.15 |   |   | 1,000,000 |   | $ | 0.15 |   |
|                                        |   |                               |      |                                           |   |   |   |   |   |   |   |   |   |
| Weighted                average contractual |   |                               |      |                                           |   |   |   |   |   |   |   |   |   |
| Life                in years                |   |                               | .95       |                                           |   |   |   |   | .95 |   |   |   |   |
|                                        |   |                               |      |                                           |   |   |   |   |   |   |   |   |   |
| Aggregate                intrinsic value    |   | $                                  | -0-       |                                           |   |   |   | $ | -0- |   |   |   |   |

**NOTE      6 - CHANGE IN MANAGEMENT**

**NOTE      7 - SUBSEQUENT EVENTS**

----

**ITEM      2. **
**MANAGEMENT’S      DISCUSSION AND ANALYSIS AND PLAN OF OPERATION **

**Going      Concern**

----

**Off-Balance      Sheet Arrangements**

**Critical      Accounting Policies**

**Operating      Results for the Three Months Ended June 30, 2006 and 2005**

***Revenues***
***-***
*Soltron*
*®*

* *

***Gross      Profit***
***-***
*Soltron*
*®*

*Soltron*
*®*

***General      and Administrative Costs***
***-***

* *

***Net      Income***
***-***

**Plan      of Operation**

*Soltron*
*®*

*oltron*
*®*

----

**Liquidity      and Capital Reserves**

**Item      3 - Controls and Procedures**

**Evaluation      of Disclosure Controls and Procedures **

**Changes      in Internal Controls **

----

**Part      II**

**Other      Information**

**Item      2.**
**Unregistered      Sale of Equity Securities and Use of Proceeds**

**Item      4.**
**Submission      of Matters to a Vote of Security Holders**

**Item      6.**
**Exhibits**

| (a)   | The                following exhibits are filed as part of this                report: |
|-----------------|----------------------------------------------------------------------------------------|

|  | 31.1 | Certification                of Chief Executive Officer and Principal                Accounting Officer of Periodic Report pursuant to Rule 13a-14a and                Rule                15d-14(a). |
|--|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 32.1 | Certification                of Chief Executive Officer and Principal                Accounting Officer pursuant to 18 U.S.C. - Section                1350. |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

**SIGNATURES**

|                                              |                                                                                                          |                                              |
|---------------------------------------------------|---------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
|                                              | **SOLPOWER CORPORATION**                                                                                      |
|                                         |                                                                                                     |                                         |
| Date: June              28, 2007   | By:                                                                                                 | /s/ James              H.              Hirst |
|                                              | James                H. Hirst                                                                                 |
|                                              | Chief                Executive Officer, President, Director and                  Principal Accounting Officer |