<PAGE>


                     U.S. 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 6/30/01

[ ] 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 June 30, 2001, 10,486,800 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]

<PAGE>





                                Table of Contents
<TABLE>
<CAPTION>
                                                                                                          Page
<S>                                                                                                       <C>
Part I.......................................................................................................1

        Item 1.   Condensed Financial Statements

                  Balance Sheets as of June 30, 2001 and December 31, 2001 (Unaudited).......................2

                  Interim Statements of Operations for the Three Months Ended
                  June 30, 2001, the Six Months ended June 30, 2001, and
                  Cumulative from Inception on March 8, 2000 to June 30, 2001
                  (Unaudited)................................................................................4

                  Interim Statements of Cash Flows for the
                  Three Months Ended June 30, 2001, the period March 8, 2000 (Inception) to June
                   30, 2000 and Cumulative from Inception on March 8, 2000 to June 30, 2001..................5

                  Statement of Stockholders Equity for the period March 8, 2000 (Inception) to June 30,
                  2001(Unaudited)............................................................................8

                  Notes to Interim Financial Statements for the Six Months Ended June 30, 2001...............9

        Item 2.   Management's Discussion and Analysis of
                  Financial Condition and Results of Operation..............................................13

Part II.....................................................................................................14

        Item 6.   Exhibits and Reports on Form 8-K..........................................................14
</TABLE>



<PAGE>

                               INDIGO ENERGY, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                                   FORM 10-QSB

                       FOR THE QUARTER ENDED JUNE 30, 2001






PART 1.     FINANCIAL INFORMATION

            ITEM 1.     FINANCIAL STATEMENTS

                        BALANCE SHEETS AS OF JUNE 30, 2001 AND DECEMBER 31, 2000

                        INTERIM STATEMENTS OF OPERATIONS FOR THE THREE MONTHS
                        AND SIX MONTHS ENDED JUNE 30, 2001 AND 2000 AND
                        CUMULATIVE FROM INCEPTION ON MARCH 8, 2000 TO JUNE 30,
                        2001

                        INTERIM STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS
                        ENDED JUNE 30, 2001 AND 2000 AND CUMULATIVE FROM
                        INCEPTION ON MARCH 8, 2000 TO JUNE 30, 2001

                        STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) FOR THE
                        PERIOD MARCH 8, 2000 (INCEPTION) TO JUNE 30, 2001

                        NOTES TO INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS
                        ENDED JUNE 30, 2001


<PAGE>

                               INDIGO ENERGY, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                                 BALANCE SHEETS
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                      JUNE 30,            DECEMBER 31,
                                                                          2001                    2000
                                                                    ----------------------------------

                                                ASSETS

CURRENT ASSETS
<S>                                                                   <C>                     <C>
   Cash                                                               $  17,570               $ 11,050
   Receivable - shared research cost                                                            10,000
   Prepaid expenses                                                       4,776
   Advances to officers (stockholders)                                   87,562                 39,142
                                                                      ---------               --------

     TOTAL CURRENT ASSETS                                               109,908                 60,192
                                                                      ---------               --------

FIXED ASSETS - EQUIPMENT - Net of accumulated
   depreciation of $736 and $368, respectively                            2,946                  3,314
                                                                      ---------               --------

OTHER ASSETS

   Expenses preparatory to a public offering of the Company's
      common stock                                                                             100,855
   Patent application costs                                              42,142                 12,578
                                                                      ---------               --------

     TOTAL OTHER ASSETS                                                  42,142                113,433
                                                                       --------               --------

                                                                       $154,996               $176,939
                                                                       ========               ========
</TABLE>


<PAGE>

<TABLE>
<CAPTION>

                                                                                      JUNE 30,            DECEMBER 31,
                                                                                          2001                    2000
                                                                                      --------------------------------
<S>                                                                                   <C>                    <C>
              LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

CURRENT LIABILITIES

   Accounts payable                                                                   $ 241,493              $ 150,285
                                                                                      ---------              ---------


STOCKHOLDERS' EQUITY (DEFICIT)

   Preferred stock, $0.001 par value per share:
      Authorized and unissued 10,000,000 shares
      Common stock, $0.001 par value per share:
      Authorized 90,000,000 shares
      Issued and outstanding 11,486,800 and 10,486,800 shares, respectively              11,487                 10,487
   Additional paid-in capital                                                           496,458                303,313
   Deficit accumulated during the development stage                                    (594,442)              (287,146)
                                                                                      ---------              ---------

   TOTAL STOCKHOLDERS' EQUITY (DEFICIT)                                                 (86,497)                26,654
                                                                                      ---------              ---------



                                                                                      $ 154,996              $ 176,939
                                                                                      =========              =========
</TABLE>


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


<PAGE>



                               INDIGO ENERGY, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                        INTERIM STATEMENTS OF OPERATIONS
                    (With Cumulative Figures from Inception)
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                                THREE MONTHS ENDED                     SIX MONTHS ENDED
                                                  JUNE 30, 2001                           JUNE 30, 2001
                                           -------------------------           ------------------------------        MARCH 8, 2000
                                                                                                                    (INCEPTION) TO
                                                2001         2000                  2001               2000 (*)       JUNE 30, 2001
                                           ----------------------------------------------------------------------------------------
<S>                                        <C>             <C>                  <C>                 <C>              <C>
REVENUE                                    $      -        $    -               $      -            $    -           $       -
                                           ------------    ----------           ------------        ----------        ------------

EXPENSES
   Research and development expenses            143,549        23,484                147,190            29,777             334,709
   General and administrative expenses           95,503        18,243                159,738            18,985             259,922
   Depreciation                                     184            40                    368                40                 736
                                           ------------    ----------           ------------        ----------        ------------

TOTAL EXPENSES                                  239,236        41,767                307,296            48,802             595,367
                                           ------------    ----------           ------------        ----------        ------------

INTEREST INCOME                                 -             -                      -                 -                       925
                                           ------------    ----------           ------------        ----------        ------------

NET LOSS                                      $(239,236)     $(41,767)             $(307,296)         $(48,802)          $(594,442)
                                           ============    ==========           ============        ==========        ============

BASIC NET LOSS PER COMMON SHARE            $      (.021)   $    (.004)          $      (.031)       $    (.005)       $      (.056)
                                           ============    ==========           ============        ==========        ============
</TABLE>





(*) March 8, 2000 (inception) to June 30, 2000.



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


<PAGE>

                               INDIGO ENERGY, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                        INTERIM STATEMENTS OF CASH FLOWS
                    (With Cumulative Figures from Inception)
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                     FOR THE SIX              MARCH 8, 2000           MARCH 8, 2000
                                                       MONTHS ENDED          (INCEPTION) TO           (INCEPTION) TO
                                                   JUNE 30, 2001             JUNE 30, 2000           JUNE 30, 2001
                                                   ---------------------------------------------------------------
<S>                                                      <C>                       <C>                    <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net loss                                              $(307,296)                $(48,802)              $(594,442)
   Adjustments to reconcile net loss to net
   cash used in operating activities:
   Noncash items:
   Depreciation of equipment                                    368                       40                     736
   Value of services contributed to the
   Company by certain executive officers                     45,000                                          120,000
   (Increase) decrease in assets:
   Receivable - shared research cost                         10,000
   Prepaid expenses                                         (4,776)                 (37,811)                 (4,776)
   Increase in accounts payable                              91,208                   22,035                 241,493
                                                         ----------                 --------             -----------

NET CASH USED IN OPERATING ACTIVITIES                     (165,496)                 (64,538)               (236,989)
                                                         ----------                 --------             -----------

CASH FLOWS USED IN INVESTING ACTIVITIES:
   Payments for the purchase of equipment                                              (800)                 (3,682)
   Payments of patent application costs                    (29,564)                    (600)                (42,142)
   Advances to officers (stockholders)                     (48,420)                                         (87,562)
                                                         ----------                 --------             -----------

NET CASH USED IN INVESTING ACTIVITIES                      (77,984)                  (1,400)               (133,386)
                                                         ----------                 --------             -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from issuance of common stock, net              250,000                  238,800                 387,945
   Advances from officers (stockholders)                                               1,864
                                                         ----------                 --------             -----------

NET CASH PROVIDED BY FINANCING
   ACTIVITIES                                               250,000                  240,664                 387,945
                                                         ----------                 --------             -----------

NET INCREASE IN CASH                                          6,520                  174,726                  17,570

CASH AT BEGINNING OF PERIOD                                  11,050
                                                         ----------                 --------             -----------

CASH AT END OF PERIOD                                    $   17,570                 $174,726             $    17,570
                                                         ==========                 ========             ===========
</TABLE>

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

<PAGE>



                               INDIGO ENERGY, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                  INTERIM STATEMENTS OF CASH FLOWS (CONTINUED)
                    (with cumulative figures from inception)
                                   (UNAUDITED)


<TABLE>
<CAPTION>
                                           FOR THE SIX               MARCH 8, 2000        MARCH 8, 2000
                                           MONTHS ENDED             (INCEPTION) TO        (INCEPTION) TO
                                          JUNE 30, 2001             JUNE 30, 2000          JUNE 30, 2001
                                          ------------------------------------------------------------------
<S>                                           <C>                     <C>                    <C>
Supplemental information about
cash payments is as follows:
Cash payments for interest                    $    -                  $      -               $     -
                                              =========               ===========            ==========
Cash payments for income taxes                $    -                  $      -               $     -
                                              =========               ===========            ==========
</TABLE>




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


<PAGE>

                               INDIGO ENERGY, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                   STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT)
                                   (UNAUDITED)

                   MARCH 8, 2000 (INCEPTION) TO JUNE 30, 2001


<TABLE>
<CAPTION>
                                                                                                                    DEFICIT
                                                                                                                   ACCUMULATED
                                                                                        COMMON STOCK   ADDITIONAL  DURING THE
                                                                                                        PAID-IN     DEVELOPMENT
                                                                TOTAL          SHARES      AMOUNT       CAPITAL       STAGE
                                                              ------------------------------------------------------------------
<S>                                                           <C>            <C>          <C>           <C>         <C>
Year beginning March 8, 2000 (inception):

Common stock issued for cash                                  $   9,500      9,500,000    $ 9,500       $            $

Common stock issued in a securities offering,
net of expenses of $17,400                                      229,300        986,800        987        228,313

Value of services contributed to the Company
by certain executive officers                                    75,000                                   75,000

Net Loss - March 8, 2000 (inception) to December 31, 2000      (287,146)                                               (287,146)
                                                             ----------                   -------       --------      ---------

BALANCE - DECEMBER 31, 2000                                      26,654     10,486,800     10,487        303,313       (287,146)

Common stock issued in an initial public offering,
net of expenses of $100,855                                     149,145      1,000,000      1,000        148,145

Value of services contributed to the Company
by certain executive officers                                    45,000                                   45,000

Net Loss - Six months ended June 30, 2001                      (307,296)                                               (307,296)
                                                             ----------                   -------       --------      ---------

BALANCE (DEFICIT) - JUNE 30, 2001                            $  (86,497)    11,486,800    $11,487       $496,458      $(594,442)
                                                             ==========     ==========    =======       ========      =========
</TABLE>

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

<PAGE>





                               INDIGO ENERGY, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                      NOTES TO INTERIM FINANCIAL STATEMENTS

                         SIX MONTHS ENDED JUNE 30, 2001

NOTE 1.      STATEMENT OF INFORMATION FURNISHED

             The accompanying unaudited interim financial statements have been
             prepared in accordance with Form 10-QSB instructions and in the
             opinion of management contains all adjustments (consisting of only
             normal recurring adjustments) necessary to present fairly the
             financial position of Indigo Energy, Inc. as of June 30, 2001, and
             the results of operations for the three months ended June 30, 2001
             and 2000, the six months ended June 30, 2001, March 8, 2000
             (inception) to June 30, 2000, and cumulative from inception on
             March 8, 2000 to June 30, 2001, and the statements of cash flows
             for the six months ended June 30, 2001, March 8, 2000 (inception)
             to June 30, 2000, and cumulative from inception on March 8, 2000 to
             June 30, 2001 and the statement of stockholders' equity (deficit)
             for the period March 8, 2000 (inception) to June 30, 2001. These
             results have been determined on the basis of accounting principles
             and practices generally accepted in the United States and applied
             consistently with those used in the preparation of the Company's
             2000 financial statements.

             Certain information and footnote disclosures normally included in
             the financial statements presented in accordance with accounting
             principles generally accepted in the United States have been
             condensed or omitted. It is suggested that the accompanying
             financial statements be read in conjunction with the financial
             statements and notes thereto incorporated by reference in the
             Company's 2000 financial statements.

NOTE 2.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

             DESCRIPTION OF DEVELOPMENT STAGE ACTIVITIES

             The Company was organized as a corporation on March 8, 2000 in the
             State of Delaware and has adopted December 31 as its year end for
             tax and financial reporting. The Company is presently in its
             development stage and intends to become a developer and
             manufacturer of a reliable electrical backup power supply for the
             telecommunications industry.

             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
             Act, and under applicable state laws, rules and regulations.

             On January 4, 2001 the Company received an effective date from the
             SEC for its initial public offering (IPO). The IPO prospectus
             states that the sale of shares is offered on a "any and all, direct
             offering" basis of up to 1,000,000 shares of the

<PAGE>

             Company's common stock at an offering price of $.25 per share for
             an aggregate of $250,000. As at June 30, 2001, the Company received
             proceeds of $250,000. Costs associated with the offering, amounting
             to $100,855, have been charged to additional paid-in capital.


<PAGE>



                               INDIGO ENERGY, INC.
                          (A DEVELOPMENT STAGE COMPANY)

                    NOTES TO FINANCIAL STATEMENTS (CONTINUED)

                                  JUNE 30, 2001

NOTE 2.      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

                    USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS

             The preparation of financial statements in conformity with
             generally accepted accounting principles requires 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.

                    RESEARCH AND DEVELOPMENT

             Research and development costs are expensed as incurred.

                    FIXED ASSETS - EQUIPMENT

             Fixed assets - equipment are stated at cost, less accumulated
             depreciation. The cost of major improvements and betterments to
             existing fixed assets are capitalized, while maintenance and
             repairs are charged to expense when incurred. Upon retirement or
             other disposal of fixed assets, the profit realized or loss
             sustained on such transaction is reflected in income. Depreciation
             is computed on the cost of fixed assets on the straight-line
             method, based upon the estimated five year useful life of the
             assets.

                    PATENT APPLICATION COSTS

             Costs incurred in connection with patent applications are
             capitalized in the accounts of the Company at cost.

             In the event that a patent is granted to the Company, the costs
             incurred will be amortized on a straight-line basis over the
             economic life of the patent, but in no event longer than the legal
             life of the patent. Patent application costs recorded as assets
             which are subsequently determined to have no discernible future
             benefit will be charged to operations.

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
<PAGE>

             Net loss per common share was calculated under SFAS No. 128,
             "Earnings per Share". Basic net loss per share is computed by
             dividing the net loss by the weighted average outstanding shares
             during the period. There is no diluted net loss per share inasmuch
             as there are no potentially dilutive shares or options outstanding
             during the period.



<PAGE>



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

              Indigo Energy, Inc. was established to build and market flywheel
              energy storage systems (FESS).

              As at June 30, 2001 the Company's balance sheet reflects working
              capital of negative $131,585. The Company incurred a loss of
              $239,236 in the six months ended June 30, 2001, consisting
              primarily of research and development expenses of $143,549 and
              general and administrative expenses of $95,503.

              The Company will need to raise additional funds in the next
              eighteen months to continue the development of the planned
              flywheel energy storage systems.

              Based on our operating plan, we believe we can satisfy the
              Company's working capital needs for the next twelve months. As may
              be required, the Company expects to raise additional capital
              through a private placement.

              The Company continues to apply for patents on its technology and
              has identified potential new FESS products. In addition, the
              Company has contacted potential sales and marketing employees and
              plans to establish a manufacturing facility within the next six
              months, once the Company is funded adequately.








<PAGE>



                                    PART II.


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

(a)      The following exhibits are included herein:

                  None.

(b)      Reports on Form 8-K filed during the Quarter ended June 30, 2001:

                  None.





                                   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 August 14, 2001                      /s/ Christopher Gabrys
                                         ---------------------------------------
                                         Christopher Gabrys
                                         President and Director