UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549

                                   FORM 10-QSB



                                   (Mark One)

     [X] Quarterly report under Section 13 or 15(d) of the Securities Exchange
                                  Act of 1934

               For the quarterly period ended: September 30, 2002
      --------------------------------------------------------------------

       [ ] Transition report under Section 13 or 15(d) of the Exchange Act

          For the transition period from ___________ to ______________

                        Commission file number: 811-3584
                 ----------------------------------------------


                               Indigo Energy, Inc.
             -------------------------------------------------------
        (Exact Name of Small Business Issuer as Specified in Its Charter)

         Delaware                               13-4105842
         ------------------------------- -----------------------------
         State or Other Jurisdiction of         (I.R.S. Employer
         Incorporation or Organization)         Identification No.)


                   535 Westgate Drive, Napa, California 94558
               ---------------------------------------------------
                    (Address of Principal Executive Offices)


                                 (707) 254-9302
                     ---------------------------------------
                           (Issuer's Telephone Number)



                  ---------------------------------------------
         (Former Name, Former Address and Former Fiscal year, if Changed
                               Since Last Report)

Check whether the issuer; (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.

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

As of November 13, 2002, 12,013,262 shares of the issuer's common stock, par
value $0.001 per share, were outstanding.

Transitional Small Business Disclosure Format (check one): Yes         No   X
                                                              ------     ------



                                       1
<PAGE>




Table of Contents


                                                                        Page

Part I....................................................................1

Item 1.   Financial Statements (Unaudited) ...............................1

          Condensed Balance Sheet - September 30, 2002....................1

          Condensed Statements of Operations - Three Months...............2
          and Nine Months ended September 30, 2002 and 2001, and
          Cumulative for the period of March 8, 2000 (Inception)
          to September 30, 2002

          Condensed Statements of Cash Flows - Nine Months................3
          Ended September 30, 2002 and 2001, and Cumulative
          for the period of March 8, 2000 (Inception) to
          September 30, 2002

          Notes to Condensed Financial Statements.........................4

Item 2.   Management's Discussion and Analysis of
          Financial Condition and Results of Operation....................6

Item 3.   Controls and Procedures.........................................7

Part II...................................................................8

Item 6.   Exhibits and Reports on Form 8-K................................8

Signatures................................................................9

Certifications...........................................................10



                                       2
<PAGE>




PART 1.     FINANCIAL INFORMATION

ITEM 1.     FINANCIAL STATEMENTS

Indigo Energy, Inc. (A Development Stage Company)
Condensed Balance Sheet
September 30, 2002
(Unaudited)
<TABLE>
<CAPTION>


ASSETS

<S>                                                                       <C>
CASH                                                                      4,642
FIXED ASSETS - EQUIPMENT - Net of accumulated
   depreciation of $1,762                                                 3,497
                                                                      ---------
OTHER ASSETS
   Patent application costs                                             112,951
   Other                                                                  4,200
                                                                      ---------
   TOTAL OTHER ASSETS                                                   117,151
                                                                      ---------
               TOTAL ASSETS                                            $125,290
                                                                       ========

LIABILITIES AND STOCKHOLDERS' DEFICIT

CURRENT LIABILITIES

   Accounts payable                                                    $235,500
   Advances from officers (stockholders)                                 33,724
   Advances from consulting firm                                         10,900
                                                                       --------
   TOTAL CURRENT LIABILITIES                                            280,124
                                                                       --------
STOCKHOLDERS' DEFICIT

   Preferred stock, $0.001 par value; 10,000,000
      shares authorized; no shares issued and outstanding                    -
   Common stock, $0.001 par value; 90,000,000 shares
      authorized; 12,013,262 shares issued and outstanding               12,013
   Additional paid-in capital                                         1,062,191
   Deficit accumulated during the development stage                  (1,109,038)
   Notes receivable from officers (stockholders)                       (120,000)
                                                                       --------
   TOTAL STOCKHOLDERS' DEFICIT                                         (154,834)
                                                                       --------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                            $125,290
                                                                       ========

</TABLE>



The accompanying notes are an integral part of these condensed financial
statements.



                                       3
<PAGE>






Indigo Energy, Inc. (A Development Stage Company)
Condensed Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>


                                               Three Months Ended September 30,
                                                   2002         2001
                                               ---------------------------

<S>                                              <C>           <C>
REVENUE                                          $      -      $      -
                                                 ---------     ---------

EXPENSES
   Research and development expenses                    14        49,833
   General and administrative expenses              65,494        67,521
   Interest expense                                     -         35,333
   Depreciation                                        199           184
                                                 ---------     ---------
TOTAL EXPENSES                                      65,707       152,871
                                                 ---------     ---------
INTEREST INCOME                                      2,100            -
                                                 ---------     ---------
NET LOSS                                         $ (63,607)    $(152,871)
                                                 =========     =========

BASIC LOSS PER SHARE                             $    (.01)    $    (.01)
                                                 =========     =========

</TABLE>

<TABLE>
<CAPTION>

                                                                                   March 8, 2000
                                                Nine Months Ended September 30,   (Inception) to
                                                   2002          2001           September 30, 2002
                                               ---------------------------        ---------------

<S>                                              <C>           <C>                   <C>
REVENUE                                          $      -      $      -              $      -
                                                 ---------     ---------             ---------

EXPENSES
   Research and development expenses                10,286       197,023               397,115
   General and administrative expenses             247,106       227,259               649,315
   Depreciation                                        597           552                 1,762
   Interest                                            600        35,333                68,071
                                                 ---------     ---------             ---------
TOTAL EXPENSES                                     258,589       460,167             1,116,263
                                                 ---------     ---------             ---------
INTEREST INCOME                                      6,300            -                  7,225
                                                 ---------     ---------             ---------
NET LOSS                                         $(252,289)    $(460,167)           (1,109,038)
                                                 ==========    ==========            =========

BASIC LOSS PER SHARE                             $    (.02)    $    (.04)
                                                 =========     =========

</TABLE>



The accompanying notes are an integral part of these condensed financial
statements.


                                       4
<PAGE>



Indigo Energy, Inc. (A Development Stage Company)
Condensed Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>




                                                                                   March 8, 2000
                                                  Nine Months Ended September 30,  (Inception) to
                                                        2002         2001        September 30, 2002
                                                    ---------------------------    --------------

CASH FLOWS FROM OPERATING ACTIVITIES:
<S>                                                   <C>         <C>              <C>
   Net loss                                           $(252,289)  $(460,167)       $(1,109,038)
   Adjustments to reconcile net loss to net cash
      used in operating activities:
         Depreciation                                       597         552              1,762
         Value of services contributed to the
            Company by certain executive officers        22,500      67,500            187,500
         Consulting fee paid by issuance of
            common stock                                 79,000          -              79,000
         Receivable- share research cost                     -       10,000                 -
         Receivable- interest due from officer           (4,200)     (6,830)            (4,200)
         Interest paid by issuance of common stock           -           -              60,000

    Increase in accounts payable                         27,127     151,034            362,953
                                                      ---------    --------          ---------
NET CASH USED IN OPERATING ACTIVITIES                   (27,265)   (237,911)          (422,023)
                                                      ---------    --------          ---------
CASH FLOWS USED IN INVESTING ACTIVITIES:
   Purchase of equipment                                 (1,274)         -              (5,259)
   Payments of patent application costs                 (29,366     (35,716)          (112,951)
   Advances to officers (stockholders)                       -      (60,382)          (116,599)
   Advances to service providers                             -      (24,000)                -
                                                      ---------    --------          ---------
NET CASH USED IN INVESTING ACTIVITIES                   (30,640)   (120,098)          (234,809)
                                                      ---------    --------          ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from issuance of common stock, net          132,306     250,000            621,106
   Proceeds from convertible note payable                    -      100,000             10,900
   Advances from consulting firm                             -          -              100,000
   Advances from officers (stockholders)                 30,323         -               30,323
   Payments for expenses for public offering                 -          -             (100,855)
                                                      ---------    --------          ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES               162,629     350,000            661,474
                                                      ---------    --------          ---------

NET INCREASE (DECREASE) IN CASH                           4,724      (8,009)             4,642

CASH AT BEGINNING OF PERIOD                                 (82)     11,050                 -
                                                       ---------    --------          --------
CASH AT END OF PERIOD                                  $  4,642     $ 3,041          $   4,642
                                                       =========    ========          ========

Supplemental schedule of non-cash financing activities:

   Conversion of convertible notes and accrued
      interest to common stock                         $      -     $     -          $ 160,000
                                                       =========    ========         =========
   Conversion of accounts payable to common
      Stock                                            $      -     $     -          $ 127,453
                                                       =========    ========         =========
</TABLE>


The accompanying notes are an integral part of these condensed financial
statements.



                                       5
<PAGE>




Indigo Energy, Inc. (A Development Stage Company)
Notes to Condensed Financial Statements
Nine Months Ended September 30, 2002 and 2001
(Unaudited)


NOTE 1.      STATEMENT OF INFORMATION FURNISHED

The accompanying unaudited condensed financial statements as of September 30,
2002 and for the three and nine months ended September 30, 2002 and 2001, and
cumulative from March 8, 2000 (Inception) to September 30, 2002 have been
prepared in accordance with accounting principles generally accepted in the
United States of America for interim financial information and pursuant with the
rules and regulations of the Securities and Exchange Commission for Form 10-QSB.
Accordingly, the condensed financial statements do not include all the
information and notes to the financial statements required by accounting
principles generally accepted in the United States of America for complete
financial statements. In the opinion of management, the accompanying unaudited
condensed financial statements contain all adjustments (consisting of only
normal recurring adjustments) considered necessary for a fair presentation of
Indigo Energy, Inc.'s financial position, results of operations, and cash flows
for the periods presented. These results have been determined on the basis of
accounting principles generally accepted in the United States of America and
applied consistently with those used in the preparation of the Company's 2001
financial statements.

The results of operations for the interim periods ended September 30, 2002 and
2001 are not necessarily indicative of the results to be expected for the full
year. These interim financial statements should be read in conjunction with the
December 31, 2001 financial statements and related notes included in the
Company's Annual Report on Form 10-KSB for the year ended December 31, 2001.

NOTE 2.      OFFERINGS OF THE COMPANY'S COMMON STOCK

In May 2000, the Company completed an offering of 986,800 shares of its common
stock, at an offering price of $.25 per share, to qualified investors. Pursuant
to the offering, the Company received $246,700, less costs of $17,400 associated
with the offering, for net proceeds of $229,300. The offering was made pursuant
to the exemptions from registration with the Securities and Exchange Commission
("SEC") provided by Regulation D, Rule 506, of the 1933 Securities Act, and
under applicable state laws, rules and regulations.

On December 19, 2000, the Company filed a Registration Statement on Form SB-2
(Amendment No.2) with the SEC. The Registration Statement was declared effective
by the SEC on January 4, 2001, File No. 333-42026. In connection therewith, the
Company issued 1,000,000 shares of its common stock at an offering price of $.25
per share for an aggregate of $250,000. Costs associated with the offering,
amounting to $100,855, have been charged to additional paid-in capital.,
resulting in net proceeds from the offering of $149,145.

Pursuant to an agreement dated March 8, 2002, the Company issued 50,000 shares
of its common stock valued at $79,000 to a consultant, wherein the consultant
agreed to provide various services to the Company including business
development, business strategy and corporate image for a period of three months.
In connection with the agreement, the Company filed Form S-8 with the SEC to
register the shares.





                                       6
<PAGE>



Indigo Energy, Inc. (A Development Stage Company)
Notes to Condensed Financial Statements
Nine Months Ended September 30, 2002 and 2001
(Unaudited)


NOTE 2.      OFFERINGS OF THE COMPANY'S COMMON STOCK, CONTINUED

On July 12, 2002, the Company completed a private placement of 189,009 of its
common shares at a price of $0.70 per share to 33 accredited investors. The
private placement was made pursuant to the exemptions from registration with the
SEC provided by Regulation D, Rule 506, of the 1933 Securities Act, and under
applicable state laws, rules and regulations. No commissions were paid and no
registration rights were granted by the Company. The private placement provided
the Company with net cash proceeds, after expenses, of $132,306. The proceeds of
the private placement will be used to partially pay past due payables with the
balance added to working capital to fund ongoing research and development and
general corporate use.

NOTE 3.      GOING CONCERN

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. The Company is dependent upon
obtaining financing and/or raising capital to continue operations. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty. It is management's plan to raise additional funds to begin its
intended operations.

NOTE 4.      NET LOSS PER SHARE

Basic net loss per share is calculated by dividing the net loss by the
weighted-average number of common shares outstanding during the reporting
period. Diluted loss per share is computed in a manner consistent with that of
basis loss per share while giving effect to the potential dilution that could
occur if options to issue common stock were exercised. The weighted-average
number of shares in calculating basic net loss per share were 11,971,260 and
11,486,800 for the three months ended September 30, 2002 and 2001, respectively,
and 11,846,906 and 11,474,605 for the nine months ended September 30, 2002 and
2001, respectively. There is no diluted net loss per share inasmuch as there are
no potentially dilutive shares or options outstanding during the reporting
period.

NOTE 5.    STOCK OPTIONS GRANTED TO A DIRECTOR

On January 23, 2002 the Company granted options under its stock option plan to a
newly appointed director for the purchase of an aggregate of up to 50,000 shares
of the Company's common stock at an exercise price of $1.00 per share which
generally expires 10 years after the grant date. The options vest over a period
of four years.





                                       7
<PAGE>



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

Indigo Energy, Inc. is a developer of energy storage devices focused on
improving power quality and its reliability. Indigo is currently working to
commercialize new ultra-high reliability, long-life flywheel energy storage
systems for the prevention of power interruptions. These products are being
designed to be cost effective and environmentally friendly alternatives to lead
acid battery systems for telecom, manufacturing and alternative energy
applications.

As at September 30, 2002, the Company's balance sheet reflects a working capital
deficit of $275,482 compared to working capital deficit of $16,351 at December
30, 2001.

The Company generated no revenues during the first three quarters of 2002
because it focused its efforts on its research and development of flywheel
energy storage systems for uninterruptible power supply and attempting to raise
additional capital.

For the three months ended September 30, 2002, the Company incurred a net loss
of $63,607 compared to a net loss of $152,871 during the same period in 2001.
The Company incurred a net loss of $63,607 in the three months ended September
30, 2002, consisting primarily of general and administrative expenses of
$65,494. The decrease for the three months ended September 30, 2002 as compared
to the same period in 2001 was due to the reduced activity of the Company.

For the nine months ended September 30, 2002, the Company incurred a net loss of
$252,289 compared to a net loss of $460,167 during the same period in 2001. The
Company incurred a net loss of $252,289 in the nine months ended September 30,
2002, consisting primarily of general and administrative expenses of $247,106
and research and development expenses of $10,286. The decrease for the nine
months ended September 30, 2002 as compared to the same period in 2001 was due
to the reduced activity of the Company.

To protect our proprietary technology, Indigo Energy, Inc. has filed multiple
patent applications on the Company's energy storage devices. The Company will
need to raise additional funds to continue the development of the planned
flywheel energy storage systems.

The Company may not be able to continue its planned research and development, if
further funds are not obtained. Accordingly, the Company will be required to
seek additional financing through bank borrowings, private or public debt,
equity financing or otherwise. There can be no assurance that any such financing
will be available to the Company on acceptable terms, or at all. The Company's
inability to obtain necessary additional financing would have a material adverse
effect on the Company's operations. In addition, the failure to obtain
additional financing raises substantial doubt about the Company's ability to
continue as a going concern, and in such event the Company will most likely have
to curtail or discontinue its operations. Prior to the time the Company
commences sales and achieves profitability, it will be required to rely on
equity, debt or other sources of financing in addition to its revenues from its
existing operations.




                                       8
<PAGE>




Special Note Regarding Forward-Looking Statements
-------------------------------------------------

The Private Securities Litigation Reform Act of 1995 (the "Reform Act") provides
a safe harbor for forward-looking statements made by or on behalf of the
Company. The Company and its representatives may, from time to time, make
written or verbal forward-looking statements, including statements contained in
the Company's filings with the Securities and Exchange Commission and in its
reports to stockholders. Generally, the inclusion of the words "believe",
"expect", "intend", "estimate", "anticipate", "will", and similar expressions
identify statements that constitute "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 and that are intended to come within the safe
harbor protection provided by those sections.

All statements addressing events or developments that the Company expects or
anticipates will occur in the future, including statements expressing optimism
or pessimism about future results (in particular, statements under Part I, Item
2, Management's Discussion and Analysis or Results of Plan), contain
forward-looking statements within the meaning of the Reform Act. The
forward-looking statements are and will be based upon management's then-current
views and assumptions regarding future events and operating performance, and are
applicable only as of the dates of such statements but there can be no assurance
that the statement of expectation or belief will result or be achieved or
accomplished. In addition, the Company undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise. By their nature, all forward-looking statements
involve risk and uncertainties. Actual results may differ materially from those
contemplated by the forward-looking statements for a number of reasons,
including but not limited: competitive prices pressures, changes in market
demand, changing technology, and general economic, financial and business
conditions.


ITEM 3. CONTROLS AND PROCEDURES.

(a) The Company maintains controls and procedures designed to ensure that
information required to be disclosed in the reports that the Company files or
submits under the Securities Exchange Act of 1934 is recorded, processed,
summarized and reported within the time periods specified in the rules and forms
of the Securities and Exchange Commission. Based upon their evaluation of those
controls and procedures performed within 90 days of the filing date of this
report, the chief executive and chief financial officers of the Company
concluded that the Company's disclosure controls and procedures were adequate.

(b) The Company made no significant changes in its internal controls or in other
factors that could significantly affect these controls subsequent to the date of
the evaluation of those controls by the Chief Executive and Chief Financial
Officers.





                                       9
<PAGE>




PART II.

ITEM 6. EXHIBITS AND REPORTS ON FORM 8 - K.

(a) The following exhibits are included herein:

         Exhibit Number            Description
         --------------            -----------

         99.1                      Letter dated July 16, 2002 on change in
                                   certifying accountant.
         99.2                      Letter dated July 18, 2002 on change in
                                   certifying accountant.

(b) Reports on Form 8-K filed during the quarter ended September 30, 2002:

         (1) Report dated July 10, 2002 announcing change in certifying
         accountant. (2) Report dated July 10, 2002 amending the announced
         change in certifying accountant. (3) Report dated July 12, 2002
         announcing the completion of private placement.





                                       10
<PAGE>


                                   SIGNATURES


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


                                        INDIGO ENERGY, INC.


Date:    November 13, 2002              /s/ Christopher Gabrys
                                        ---------------------------
                                        Christopher Gabrys
                                        President and Chief Executive Officer






Date:    November 13, 2002              /s/ Scott Kostiuk
                                        ---------------------------
                                        Scott Kostiuk
                                        Secretary & Treasurer and
                                        Chief Financial Officer



                                       11
<PAGE>



                           CERTIFICATIONS


I, Christopher Gabrys, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Indigo Energy, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

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

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

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

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

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

Date: November 13, 2002

/s/ Christopher Gabrys
----------------------
President and Chief Executive Officer





                                       12
<PAGE>



I, Scott Kostiuk, certify that:

1. I have reviewed this quarterly report on Form 10-QSB of Indigo Energy, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;

3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;

b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and

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

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

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

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

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

Date: November 13, 2002

/s/ Scott Kostiuk
-----------------
Secretary & Treasurer and Chief Financial Officer