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| Nevada                                                         | 88-0409170                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |

| Large accelerated filer  o | Accelerated filer  o              |
|--------------------------------------|---------------------------------------------|
| Non-accelerated filer  o   | Smaller reporting company  ý |

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|                                     |                                                                                        | Page   |
|------------------------------------------|---------------------------------------------------------------------------------------------|--------|
| PART I.  FINANCIAL INFORMATION |
|                                     |                                                                                        |   |
| Item 1.                                  | Financial Statements:                                                                       |   |
|                                     |                                                                                        |   |
|                                     | Consolidated Balance Sheets                                                                 | 2      |
|                                     |                                                                                        |   |
|                                     | Consolidated Statements of Operations                                                       | 3      |
|                                     |                                                                                        |   |
|                                     | Consolidated Statements of Cash Flows                                                       | 4      |
|                                     |                                                                                        |   |
|                                     | Notes to Consolidated Financial Statements                                                  | 5      |
|                                     |                                                                                        |   |
| Item 2.                                  | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 18     |
|                                     |                                                                                        |   |
| Item 3.                                  | Quantitative and Qualitative Disclosures about Market Risk                                  | 24     |
|                                     |                                                                                        |   |
| Item 4.                                  | Controls and Procedures                                                                     | 24     |
|                                     |                                                                                        |   |
|                                     |                                                                                        |   |
| PART II.  OTHER INFORMATION    |
|                                     |                                                                                        |   |
| Item 1.                                  | Legal Proceedings                                                                           | 25     |
|                                     |                                                                                        |   |
| Item 1A.                                 | Risk Factors                                                                                | 25     |
|                                     |                                                                                        |   |
| Item 2.                                  | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 25     |
|                                     |                                                                                        |   |
| Item 3.                                  | Defaults Upon Senior Securities                                                             | 25     |
|                                     |                                                                                        |   |
| Item 4.                                  | Submission of Matters to a Vote of Security Holders                                         | 25     |
|                                     |                                                                                        |   |
| Item 5.                                  | Other Information                                                                           | 25     |
|                                     |                                                                                        |   |
| Item 6.                                  | Exhibits                                                                                    | 26     |
|                                     |                                                                                        |   |
| SIGNATURES                               | 26                                                                                          |

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|                                                |   | (Unaudited) |       |   | (Audited)    |   |
|-----------------------------------------------------|--------|-------------|------------|--------|--------------|--------|
|                                                |   | June 30,    |       |   | December 31, |   |
|                                                |   | 2009        |       |   | 2008         |   |
| ASSETS                                              |   |        |       |   |         |   |
|                                                |   |        |       |   |         |   |
| Current assets:                                     |   |        |       |   |         |   |
| Cash                                                |   | $           | 2,312,674  |   |         | $      | 2,985,289 |   |
| Accounts receivable, net of allowance for doubtful  |   |        |       |   |         |   |   |   |
| accounts of $153,000 in 2009 and $108,000 in 2008   |   |        | 1,383,770  |   |         |   | 2,556,945 |   |
| Inventories, net                                    |   |        | 1,148,645  |   |         |   | 1,353,915 |   |
| Deferred income taxes                               |   |        | 87,000     |   |         |   | 68,000 |   |
| Other current assets                                |   |        | 140,805    |   |         |   | 107,423 |   |
|                                                |   |        |       |   |         |   |   |   |
| Total current assets                                |   |        | 5,072,894  |   |         |   | 7,071,572 |   |
|                                                |   |        |       |   |         |   |   |   |
| Property and equipment, net                         |   |        | 5,881,473  |   |         |   | 5,682,457 |   |
|                                                |   |        |       |   |         |   |   |   |
| Other assets:                                       |   |        |       |   |         |   |   |   |
| Deferred income taxes                               |   |        | 2,796,000  |   |         |   | 1,787,000 |   |
| Intangible assets, net                              |   |        | 64,184     |   |         |   | 69,815 |   |
|                                                |   |        |       |   |         |   |   |   |
| Total other assets, net                             |   |        | 2,860,184  |   |         |   | 1,856,815 |   |
|                                                |   |        |       |   |         |   |   |   |
| Total assets                                        |   | $           | 13,814,551 |   |         | $      | 14,610,844 |   |
|                                                |   |        |       |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY          |   |        |       |   |         |   |   |   |
|                                                |   |        |       |   |         |   |   |   |
| Current liabilities:                                |   |        |       |   |         |   |   |   |
| Current portion of long-term debt obligations       |   | $           | 528,695    |   |         | $      | 503,576 |   |
| Lines of credit - bank                              |   |        | 163,074    |   |         |   | - |   |
| Short-term notes payable                            |   |        | 1,350,000  |   |         |   | 1,000,000 |   |
| Accounts payable                                    |   |        | 448,770    |   |         |   | 1,421,423 |   |
| Accounts payable - related party                    |   |        | 211,437    |   |         |   | 89,372 |   |
| Accrued expenses                                    |   |        | 162,760    |   |         |   | 162,136 |   |
| Accrued payroll and payroll taxes                   |   |        | 428,595    |   |         |   | 324,339 |   |
| Customer deposits                                   |   |        | 234,653    |   |         |   | 431,775 |   |
|                                                |   |        |       |   |         |   |   |   |
| Total current liabilities                           |   |        | 3,527,984  |   |         |   | 3,932,621 |   |
|                                                |   |        |       |   |         |   |   |   |
| Long-term debt obligations, net of current portion  |   |        | 5,379,269  |   |         |   | 5,487,293 |   |
|                                                |   |        |       |   |         |   |   |   |
| Stockholders’ equity:                         |   |        |       |   |         |   |   |   |
| Common stock - $.001 par value; 100,000,000 shares  |   |        |       |   |         |   |   |   |
| authorized, 42,090,632 and 41,579,157 shares issued |   |        |       |   |         |   |   |   |
| and outstanding, respectively                       |   |        | 42,091     |   |         |   | 41,579 |   |
| Additional paid-in capital                          |   |        | 10,285,220 |   |         |   | 8,998,941 |   |
| Accumulated deficit                                 |   |        | (5,420,013 | )      |         |   | (3,849,590 | ) |
|                                                |   |        |       |   |         |   |   |   |
| Total stockholders’ equity                    |   |        | 4,907,298  |   |         |   | 5,190,930 |   |
|                                                |   |        |       |   |         |   |   |   |
| Total liabilities and stockholders’ equity    |   | $           | 13,814,551 |   |         | $      | 14,610,844 |   |

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|                                                                                    |   | (Unaudited)                         |       |   | (Unaudited)                       |   |
|-----------------------------------------------------------------------------------------|--------|-------------------------------------|------------|--------|-----------------------------------|--------|
|                                                                                    |   | For the Three Months Ended June 30, |       |   | For the Six Months Ended June 30, |   |
|                                                                                    |   | 2009                                |       |   | 2008                              |   |   | 2009 |   |   | 2008 |   |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |
| Revenue                                                                                 |   | $                                   | 1,936,656  |   |                              |   | 1,760,208 |   |   | $ | 4,349,325 |   |   | $ | 3,569,325 |   |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                                                                      |   |                                | 1,765,262  |   |                              |   | 1,589,307 |   |   |   | 3,733,464 |   |   |   | 3,029,524 |   |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit                                                                            |   |                                | 171,394    |   |                              |   | 170,901 |   |   |   | 615,861 |   |   |   | 539,801 |   |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Selling, general and administrative expenses                                            |   |                                | 881,846    |   |                              |   | 572,377 |   |   |   | 1,774,162 |   |   |   | 1,024,966 |   |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                                                    |   |                                | (710,452   | )      |                              |   | (401,476 | ) |   |   | (1,158,301 | ) |   |   | (485,165 | ) |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Other income (expense):                                                                 |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                        |   |                                | (277,378   | )      |                              |   | (89,968 | ) |   |   | (1,451,916 | ) |   |   | (171,806 | ) |
| Interest income                                                                         |   |                                | 4,049      |   |                              |   | - |   |   |   | 11,794 |   |   |   | - |   |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Total other income (expense)                                                            |   |                                | (273,329   | )      |                              |   | (89,968 | ) |   |   | (1,440,122 | ) |   |   | (171,806 | ) |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Loss before provision for income taxes                                                  |   |                                | (983,781   | )      |                              |   | (491,444 | ) |   |   | (2,598,423 | ) |   |   | (656,971 | ) |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Income tax benefit                                                                      |   |                                | 404,000    |   |                              |   | 213,000 |   |   |   | 1,028,000 |   |   |   | 185,000 |   |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                |   |                                | (579,781   | )      |                              |   | (278,444 | ) |   |   | (1,570,423 | ) |   |   | (471,971 | ) |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Less: Net income attributable to non-controlling interest in variable interest entities |   |                                | -          |   |                              |   | (41,351 | ) |   |   | - |   |   |   | (94,306 | ) |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Net loss attributable to Energy Composites Corporation                                  |   | $                                   | (579,781   | )      |                              | $      | (319,795 | ) |   | $ | (1,570,423 | ) |   | $ | (566,277 | ) |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Net loss per common share - basic and diluted                                           |   | $                                   | (0.01      | )      |                              | $      | (0.01 | ) |   | $ | (0.04 | ) |   | $ | (0.02 | ) |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |                                |       |   |                              |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average shares outstanding - basic and diluted                                 |   |                                | 42,061,142 |   |                              |   | 24,000,000 |   |   |   | 41,996,541 |   |   |   | 24,000,000 |   |

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|                                                   |   | (Unaudited)                       |       |
|--------------------------------------------------------|--------|-----------------------------------|------------|
|                                                   |   | For the Six Months Ended June 30, |       |
|                                                   |   | 2009                              |       |   | 2008 |   |
| Cash flows from operating activities:                  |   |                              |       |   |   |   |
| Net loss                                               |   | $                                 | (1,570,423 | ) |   | $ | (566,277 | ) |
| Adjustments to reconcile net loss to net cash          |   |                              |       |   |   |   |   |   |
| used in operating activities:                          |   |                              |       |   |   |   |   |   |
| Non-controlling interest in variable interest entities |   |                              | -          |   |   |   | 94,306 |   |
| Depreciation and amortization                          |   |                              | 204,329    |   |   |   | 167,687 |   |
| (Gain) loss on sale of other assets                    |   |                              | (650       | ) |   |   | 3,785 |   |
| Amortization of debt discount for imputed interest     |   |                              | 1,926      |   |   |   | 1,830 |   |
| Amortization of discount for warrants and beneficial   |   |                              |       |   |   |   |   |   |
| conversion feature on convertible debt                 |   |                              | 1,208,958  |   |   |   | - |   |
| Stock issued for interest payments                     |   |                              | 55,541     |   |   |   | - |   |
| Stock issued for compensation                          |   |                              | 156,250    |   |   |   | - |   |
| Deferred income taxes                                  |   |                              | (1,028,000 | ) |   |   | (185,000 | ) |
| Changes in operating assets and liabilities:           |   |                              |       |   |   |   |   |   |
| Accounts receivable, net                               |   |                              | 1,173,175  |   |   |   | 65,803 |   |
| Inventories, net                                       |   |                              | 205,270    |   |   |   | (183,137 | ) |
| Other current assets                                   |   |                              | (33,382    | ) |   |   | (26,496 | ) |
| Accounts payable                                       |   |                              | (972,653   | ) |   |   | 82,510 |   |
| Accounts payable - related party                       |   |                              | 122,065    |   |   |   | - |   |
| Accrued expenses                                       |   |                              | 624        |   |   |   | 46,243 |   |
| Accrued payroll and payroll taxes                      |   |                              | 104,256    |   |   |   | 23,174 |   |
| Customer deposits                                      |   |                              | (197,122   | ) |   |   | (40,062 | ) |
| Net cash used in operating activities                  |   |                              | (569,836   | ) |   |   | (515,634 | ) |
|                                                   |   |                              |       |   |   |   |   |   |
| Cash flows from investing activities:                  |   |                              |       |   |   |   |   |   |
| Purchase of property and equipment                     |   |                              | (384,981   | ) |   |   | (449,868 | ) |
| Proceeds from sale of property and equipment           |   |                              | 650        |   |   |   | 16,000 |   |
| Net cash used in investing activities                  |   |                              | (384,331   | ) |   |   | (433,868 | ) |
|                                                   |   |                              |       |   |   |   |   |   |
| Cash flows from financing activities:                  |   |                              |       |   |   |   |   |   |
| Increase (decrease) in bank overdraft payable          |   |                              | -          |   |   |   | (136,255 | ) |
| Net borrowings from lines of credit - bank             |   |                              | 163,074    |   |   |   | 354,630 |   |
| Financing costs for long-term debt                     |   |                              | (3,320     | ) |   |   | - |   |
| Net borrowings from short-term notes payable           |   |                              | 350,000    |   |   |   | 912,446 |   |
| Payments on long-term debt                             |   |                              | (228,202   | ) |   |   | (142,518 | ) |
| Capital distributions by variable interest entities    |   |                              | -          |   |   |   | (35,000 | ) |
| Net cash provided by financing activities              |   |                              | 281,552    |   |   |   | 953,303 |   |
|                                                   |   |                              |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents   |   |                              | (672,615   | ) |   |   | 3,801 |   |
|                                                   |   |                              |       |   |   |   |   |   |
| Cash and cash equivalents:                             |   |                              |       |   |   |   |   |   |
| Beginning of period                                    |   |                              | 2,985,289  |   |   |   | 30,739 |   |
|                                                   |   |                              |       |   |   |   |   |   |
| End of period                                          |   | $                                 | 2,312,674  |   |   | $ | 34,540 |   |

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|     |   |   |          |   |   |           |   |   | Percentage of |   |
|----------|--------|--------|---------------|--------|--------|----------------|--------|--------|---------------|--------|
|     |   |   | Percentage of |   |   | Trade Accounts |   |
|     |   |   | Total Sales   |   |   | Receivable     |   |
| Customer |   |   | 2009          |   |   | 2008           |   |   | 2009          |   |   | 2008 |   |
| 1        |   |   |          | 58.7   | %      |           |   | 0.4    | %             |   |   | 32.1 | % |   |   | 1.1 | % |
| 2        |   |   |          | 12.9   |   |           |   | -      |          |   |   | 15.0 |   |   |   | - |   |
| 3        |   |   |          | -      |   |           |   | 42.4   |          |   |   | 10.1 |   |   |   | 21.0 |   |
| 4        |   |   |          | 7.4    |   |           |   | 5.8    |          |   |   | 20.0 |   |   |   | 16.0 |   |
|     |   |   |          | 79.0   | %      |           |   | 48.6   | %             |   |   | 77.2 | % |   |   | 38.1 | % |

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|             |   | June 30, 2009 |      |   | December 31, 2008 |   |
|------------------|--------|---------------|-----------|--------|-------------------|--------|
| Raw materials    |   | $             | 372,174   |   |              | $      | 440,741 |   |
| Work in progress |   |          | 776,471   |   |              |   | 913,174 |   |
| Finished goods   |   |          | -         |   |              |   | - |   |
| Total            |   | $             | 1,148,645 |   |              | $      | 1,353,915 |   |

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|                           |   | June 30, 2009 |      |   | December 31, 2008 |   |
|--------------------------------|--------|---------------|-----------|--------|-------------------|--------|
| Land and improvements          |   | $             | 82,572    |   |              | $      | 74,023 |   |
| Buildings and improvements     |   |          | 3,583,467 |   |              |   | 3,590,267 |   |
| Machinery and equipment        |   |          | 2,488,034 |   |              |   | 2,125,177 |   |
| Vehicles and trailers          |   |          | 376,925   |   |              |   | 381,212 |   |
| Computer equipment             |   |          | 193,663   |   |              |   | 173,926 |   |
| Furniture and office equipment |   |          | 104,813   |   |              |   | 104,813 |   |
|                           |   |          | 6,829,474 |   |              |   | 6,449,418 |   |
| Less accumulated depreciation  |   |          | (948,001  | )      |              |   | (766,961 | ) |
| Net property and equipment     |   | $             | 5,881,473 |   |              | $      | 5,682,457 |   |

|                          |   | June 30, 2009 |    |   | December 31, 2008 |   |
|-------------------------------|--------|---------------|---------|--------|-------------------|--------|
| Non-compete agreement         |   | $             | 5,000   |   |              | $      | 5,000 |   |
| Customer list                 |   |          | 74,434  |   |              |   | 74,434 |   |
| Deferred financing costs      |   |          | 69,338  |   |              |   | 66,017 |   |
|                          |   |          | 148,772 |   |              |   | 145,451 |   |
| Less accumulated amortization |   |          | (84,588 | )      |              |   | (75,636 | ) |
| Net intangible assets         |   | $             | 64,184  |   |              | $      | 69,815 |   |

| 2009 – remaining |   | $      | 5,458  |   |
|------------------------|--------|--------|--------|--------|
| 2010                   |   |   | 8,567  |   |
| 2011                   |   |   | 7,388  |   |
| 2012                   |   |   | 5,396  |   |
| 2013                   |   |   | 4,872  |   |
| Thereafter             |   |   | 32,503 |   |
|                   |   |   |   |   |
| Total                  |   | $      | 64,184 |   |

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|                                                                                                                                                                                                                                                                                                                                   |   | June 30,2009 |    |   | December 31,2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|--------|------------------|--------|
| NPESB - a term loan secured by 15 ton deck crane, interest rate of 7.25%, due October 2010, monthly payments of $948                                                                                                                                                                                                                   |   | $            | 12,155  |   |             | $      | 17,302 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |         |    |   |             |   |   |   |
| NPESB – a term loan secured by all general business assets of AFT and unlimited continuing guarantee of ECC; interest rate of 6.75%, due on demand, monthly payments of $898                                                                                                                                                     |   |         | 48,132  |   |             |   | 51,808 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |         |    |   |             |   |   |   |
| NPESB - an industrial revenue bond term loan, secured by equipment and unlimited continuing guarantee of ECC; contains restrictive financial covenants, interest rate of 5.75%, due July 2014, monthly payments of $7,266                                                                                                              |   |         | 380,399 |   |             |   | 412,391 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |         |    |   |             |   |   |   |
| NPESB - an industrial revenue bond term loan, secured by equipment and unlimited continuing guarantee of ECC; contains restrictive financial covenants, interest rate of 5.75%, due July 2014, monthly payment of $7,266                                                                                                               |   |         | 374,603 |   |             |   | 406,761 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |         |    |   |             |   |   |   |
| City of Wisconsin Rapids, a term loan, secured by all assets and unlimited continuing guarantee of ECC; contains various operating covenants, interest rate 2%, due April 2012, monthly payments of $4,499                                                                                                                             |   |         | 416,843 |   |             |   | 439,545 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |         |    |   |             |   |   |   |
| Yale Financial Services, a capital lease term loan, secured by two Yale forklifts, interest rate 7.7%, due October 2010, monthly payments of $657                                                                                                                                                                                      |   |         | 9,968   |   |             |   | 13,451 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |         |    |   |             |   |   |   |
| City of Wisconsin Rapids, a $75,000 term loan, secured by ECC and AFT guarantees; imputed interest at 8% resulting in an original issue discount with an unamortized balance of $25,314 at June 30, 2009, balloons in August 2014; debt was assumed by AFT from M&W as part of the land and building purchase on December 31, 2008 |   |         | 49,686  |   |             |   | 47,760 |   |
|                                                                                                                                                                                                                                                                                                                                   |   |         |    |   |             |   |   |   |

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|                                                                                                                                                                                                                                                                                                                 |   | June 30,2009 |      |   | December 31,2008 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|--------|------------------|--------|
| NPESB – an industrial revenue bond term loan, secured by real estate, ECC and AFT guarantees; contains restrictive financial covenants, interest rate of 5.50%, due July 2027, monthly payment of $20,766; debt was assumed by AFT from M&W as part of the land and building purchase on December 31, 2008 |   |         | 2,834,566 |   |             |   | 2,879,672 |   |
|                                                                                                                                                                                                                                                                                                                 |   |         |      |   |             |   |   |   |
| M&W LLC (related party) – an unsecured term loan, interest rate of 4.775%, due December 2015, quarterly payment of $24,493 beginning March 2009                                                                                                                                                            |   |         | 1,020,924 |   |             |   | 1,045,328 |   |
|                                                                                                                                                                                                                                                                                                                 |   |         |      |   |             |   |   |   |
| NPESB – a term loan secured by all general business assets of AFT and an unlimited continuing guarantee of ECC; due January 2012, interest rate of 6.75%, monthly payments of $13,405 beginning February 2009                                                                                                  |   |         | 379,879   |   |             |   | 430,000 |   |
|                                                                                                                                                                                                                                                                                                                 |   |         |      |   |             |   |   |   |
| Convertible notes payable ($1,420,000 face value) – see Note 7                                                                                                                                                                                                                                                 |   |         | 380,809   |   |             |   | 246,851 |   |
|                                                                                                                                                                                                                                                                                                                 |   |         | 5,907,964 |   |             |   | 5,990,869 |   |
|                                                                                                                                                                                                                                                                                                                 |   |         |      |   |             |   |   |   |
| Less current portion of long-term obligations                                                                                                                                                                                                                                                                        |   |         | (528,695  | )      |             |   | (503,576 | ) |
|                                                                                                                                                                                                                                                                                                                 |   |         |      |   |             |   |   |   |
| Total long-term debt obligations, net of current portion                                                                                                                                                                                                                                                             |   | $            | 5,379,269 |   |             | $      | 5,487,293 |   |

| 2009 - remaining |   | $      | 284,787   |   |
|------------------|--------|--------|-----------|--------|
| 2010             |   |   | 489,194   |   |
| 2011             |   |   | 1,923,380 |   |
| 2012             |   |   | 631,588   |   |
| 2013             |   |   | 337,056   |   |
| Thereafter       |   |   | 3,281,150 |   |
|             |   |   |      |   |
| Total            |   | $      | 6,947,155 |   |

----

----

----

----

| Balance at January 1, 2008                                                                 |   | $      | -          |   |
|--------------------------------------------------------------------------------------------|--------|--------|------------|--------|
|                                                                                       |   |   |       |   |
| Plus: gross proceeds received in 2008                                                      |   |   | 6,370,000  |   |
|                                                                                       |   |   |       |   |
| Less: value assigned to:                                                                   |   |   |       |   |
| Warrants                                                                                   |   |   | (4,068,422 | )      |
| Beneficial conversion feature allotted to:                                                 |   |   |       |   |
| Additional paid-in capital                                                                 |   |   | (1,412,578 | )      |
| Deferred income tax liability                                                              |   |   | (889,000   | )      |
| Sub-total of assigned values                                                               |   |   | (6,370,000 | )      |
|                                                                                       |   |   |       |   |
| Plus: accretion of original issue discount from warrants and beneficial conversion feature |   |   | 4,121,851  |   |
|                                                                                       |   |   |       |   |
| Less: conversion of debt to common stock                                                   |   |   | (3,875,000 | )      |
|                                                                                       |   |   |       |   |
| Balance at December 31, 2008                                                               |   |   | 246,851    |   |
|                                                                                       |   |   |       |   |
| Plus: accretion of original issue discount from warrants and beneficial conversion feature |   |   | 1,208,958  |   |
|                                                                                       |   |   |       |   |
| Less: conversion of debt to common stock                                                   |   |   | (1,075,000 | )      |
|                                                                                       |   |   |       |   |
| Balance at June 30, 2009                                                                   |   | $      | 380,809    |   |

----

----

|                                                                                                |   | June 30, 2009 |     |   | June 30, 2008 |   |
|-----------------------------------------------------------------------------------------------------|--------|---------------|----------|--------|---------------|--------|
| Currently payable (refundable)                                                                      |   | $             | -        |   |          | $      | - |   |
| Deferred tax benefit                                                                                |   |          | (404,000 | )      |          |   | (213,000 | ) |
|                                                                                                |   |          | (404,000 | )      |          |   | (213,000 | ) |
| Establishment of the net deferred tax liabilities as of January 1, 2008 due to change in tax status |   |          | -        |   |          |   | - |   |
| Total income tax benefit                                                                            |   | $             | (404,000 | )      |          | $      | (213,000 | ) |

|                                                                                                |   | June 30, 2009 |       |   | June 30, 2008 |   |
|-----------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|---------------|--------|
| Currently payable (refundable)                                                                      |   | $             | -          |   |          | $      | - |   |
| Deferred tax benefit                                                                                |   |          | (1,028,000 | )      |          |   | (295,000 | ) |
|                                                                                                |   |          | (1,028,000 | )      |          |   | (295,000 | ) |
| Establishment of the net deferred tax liabilities as of January 1, 2008 due to change in tax status |   |          | -          |   |          |   | 110,000 |   |
| Total income tax benefit                                                                            |   | $             | (1,028,000 | )      |          | $      | (185,000 | ) |

----

----

|                |   | Three Months Ended June 30, 2009 |      |
|---------------------|--------|----------------------------------|-----------|
|                |   | Products &                   |      |   | Service & |   |   |   |   |
|                |   | Components                       |      |   | Installation |   |   | Total |   |
| Net sales           |   | $                                | 1,392,398 |   |   | $ | 544,258 |   |   | $ | 1,936,656 |   |
| Cost of sales       |   |                             | 1,542,279 |   |   |   | 222,983 |   |   |   | 1,765,262 |   |
| Gross Profit (Loss) |   | $                                | (149,881  | ) |   | $ | 321,275 |   |   | $ | 171,394 |   |
|                |   |                             |      |   |   |   |   |   |   |   |   |   |
|                |   | Three Months Ended June 30, 2008 |      |
|                |   | Products &                   |      |   | Service & |   |   |   |   |   |
|                |   | Components                       |      |   | Installation |   |   | Total |   |
| Net sales           |   | $                                | 1,164,719 |   |   | $ | 595,489 |   |   | $ | 1,760,208 |   |
| Cost of sales       |   |                             | 1,083,912 |   |   |   | 505,395 |   |   |   | 1,589,307 |   |
| Gross Profit        |   | $                                | 80,807    |   |   | $ | 90,094 |   |   | $ | 170,901 |   |

|          |   | Six Months Ended June 30, 2009 |      |
|---------------|--------|--------------------------------|-----------|
|          |   | Products &                 |      |   | Service & |   |   |   |   |
|          |   | Components                     |      |   | Installation |   |   | Total |   |
| Net sales     |   | $                              | 3,623,015 |   |   | $ | 726,310 |   |   | $ | 4,349,325 |   |
| Cost of sales |   |                           | 3,318,101 |   |   |   | 415,363 |   |   |   | 3,733,464 |   |
| Gross Profit  |   | $                              | 304,914   |   |   | $ | 310,947 |   |   | $ | 615,861 |   |
|          |   |                           |      |   |   |   |   |   |   |   |   |   |
|          |   | Six Months Ended June 30, 2008 |      |
|          |   | Products &                 |      |   | Service & |   |   |   |   |   |
|          |   | Components                     |      |   | Installation |   |   | Total |   |
| Net sales     |   | $                              | 2,703,190 |   |   | $ | 866,135 |   |   | $ | 3,569,325 |   |
| Cost of sales |   |                           | 2,280,533 |   |   |   | 748,991 |   |   |   | 3,029,524 |   |
| Gross Profit  |   | $                              | 422,657   |   |   | $ | 117,144 |   |   | $ | 539,801 |   |

----

----

|                                               |   | Three months ended June 30, |       |
|----------------------------------------------------|--------|-----------------------------|------------|
|                                               |   | 2009                        |       |   | 2008 |   |
| Basic earnings (loss) per share calculation:       |   |                        |       |   |   |   |
| Net income (loss) to common shareholders           |   | $                           | (579,781   | ) |   | $ | (319,795 | ) |
| Weighted average of common shares outstanding      |   |                        | 42,061,142 |   |   |   | 24,000,000 |   |
| Basic net earnings (loss) per share                |   | $                           | (0.01      | ) |   | $ | (0.01 | ) |
|                                               |   |                        |       |   |   |   |   |   |
| Diluted earnings (loss) per share calculation:     |   |                        |       |   |   |   |   |   |
| Net income (loss) to common shareholders           |   | $                           | (579,781   | ) |   | $ | (319,795 | ) |
| Weighted average of common shares outstanding      |   |                        | 42,061,142 |   |   |   | 24,000,000 |   |
| Convertible debentures (1)                         |   |                        | -          |   |   |   | - |   |
| Warrants (2)                                       |   |                        | -          |   |   |   | - |   |
| Diluted weighted average common shares outstanding |   |                        | 42,061,142 |   |   |   | 24,000,000 |   |
|                                               |   |                        |       |   |   |   |   |   |
| Diluted net income (loss) per share                |   | $                           | (0.01      | ) |   | $ | (0.01 | ) |

|                                               |   | Six months ended June 30, |       |
|----------------------------------------------------|--------|---------------------------|------------|
|                                               |   | 2009                      |       |   | 2008 |   |
| Basic earnings (loss) per share calculation:       |   |                      |       |   |   |   |
| Net income (loss) to common shareholders           |   | $                         | (1,570,423 | ) |   | $ | (566,277 | ) |
| Weighted average of common shares outstanding      |   |                      | 41,996,541 |   |   |   | 24,000,000 |   |
| Basic net earnings (loss) per share                |   | $                         | (0.04      | ) |   | $ | (0.02 | ) |
|                                               |   |                      |       |   |   |   |   |   |
| Diluted earnings (loss) per share calculation:     |   |                      |       |   |   |   |   |   |
| Net income (loss) to common shareholders           |   | $                         | (1,570,423 | ) |   | $ | (566,277 | ) |
| Weighted average of common shares outstanding      |   |                      | 41,996,541 |   |   |   | 24,000,000 |   |
| Convertible debentures (1)                         |   |                      | -          |   |   |   | - |   |
| Warrants (2)                                       |   |                      | -          |   |   |   | - |   |
| Diluted weighted average common shares outstanding |   |                      | 41,996,541 |   |   |   | 24,000,000 |   |
|                                               |   |                      |       |   |   |   |   |   |
| Diluted net income (loss) per share                |   | $                         | (0.04      | ) |   | $ | (0.02 | ) |

| (1)   | At June 30, 2009 and 2008, there were outstanding convertible debentures equivalent to 568,000 and 0 common shares, respectively.  The convertible debentures are anti-dilutive at June 30, 2009 and therefore have been excluded from diluted earnings per share. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | At June 30, 2009 and 2008, there were outstanding warrants equivalent to 2,548,000 and 0 common shares, respectively.  The warrants expire 3 years from their 2008 date of issuance and have an exercise price of $5.00 per share. The warrants are anti-dilutive at June 30, 2009 and therefore have been excluded from diluted earnings per share. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                   |   | June 30, |      |
|--------------------------------------------------------|--------|----------|-----------|
|                                                   |   | 2009     |      |   | 2008 |   |
| Supplemental disclosure of cash flow information:      |   |     |      |   |   |   |
| Cash paid for interest                                 |   | $        | 197,167   |   |   | $ | 160,740 |   |
|                                                   |   |     |      |   |   |   |   |   |
| Non-cash investing and financing activities:           |   |     |      |   |   |   |   |   |
| Purchase of property and equipment with long-term debt |   | $        | 9,412     |   |   | $ | 67,673 |   |
| Debt converted to common stock                         |   | $        | 1,075,000 |   |   | $ | - |   |

----

----

| Revenue                          |   | Three months ended June 30, |      |   | Six months ended June 30, |   |
|----------------------------------|--------|-----------------------------|-----------|--------|---------------------------|--------|
|                             |   | 2009                        |      |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
| ECC/AFT                          |   | $                           | 1,936,656 |   |                      | $      | 1,639,335 |   |   | $ | 4,349,325 |   |   | $ | 3,262,349 |   |
| M&W/FPF, net of eliminations |   |                        | -         |   |                      |   | 120,873 |   |   |   | - |   |   |   | 306,976 |   |
| Total consolidated revenue       |   | $                           | 1,936,656 |   |                      | $      | 1,760,208 |   |   | $ | 4,349,325 |   |   | $ | 3,569,325 |   |
|                             |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| ECC/AFT increase from 2008       |   | $                           | 297,321   |   |                      |   |   |   |   | $ | 1,086,976 |   |   |   |   |   |
| ECC/AFT % increase from 2008     |   |                        | 18.1      | %      |                      |   |   |   |   |   | 33.3 | % |   |   |   |   |

| Cost of goods sold               |   | Three months ended June 30, |      |   | Six months ended June 30, |   |
|----------------------------------|--------|-----------------------------|-----------|--------|---------------------------|--------|
|                             |   | 2009                        |      |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
| ECC/AFT                          |   | $                           | 1,765,262 |   |                      | $      | 1,479,973 |   |   | $ | 3,733,464 |   |   | $ | 2,764,639 |   |
| M&W/FPF, net of eliminations |   |                        | -         |   |                      |   | 109,334 |   |   |   | - |   |   |   | 264,885 |   |
| Total cost of goods sold         |   | $                           | 1,765,262 |   |                      | $      | 1,589,307 |   |   | $ | 3,733,464 |   |   | $ | 3,029,524 |   |
|                             |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| ECC/AFT increase from 2008       |   | $                           | 285,289   |   |                      |   |   |   |   | $ | 968,825 |   |   |   |   |   |
| ECC/AFT % increase from 2008     |   |                        | 19.3      | %      |                      |   |   |   |   |   | 35.0 | % |   |   |   |   |

----

| Gross profit                     |   | Three months ended June 30, |    |   | Six months ended June 30, |   |
|----------------------------------|--------|-----------------------------|---------|--------|---------------------------|--------|
|                             |   | 2009                        |    |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
| ECC/AFT                          |   | $                           | 171,394 |   |                      | $      | 159,362 |   |   | $ | 615,861 |   |   | $ | 497,710 |   |
| M&W/FPF, net of eliminations |   |                        | -       |   |                      |   | 11,539 |   |   |   | - |   |   |   | 42,091 |   |
| Total gross profit               |   | $                           | 171,394 |   |                      | $      | 170,901 |   |   | $ | 615,861 |   |   | $ | 539,801 |   |
|                             |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| ECC/AFT % of revenue             |   |                        | 8.9     | %      |                      |   | 9.7 | % |   |   | 14.2 | % |   |   | 15.3 | % |

| Selling, general & administrative expenses |   | Three months ended June 30, |    |   | Six months ended June 30, |   |
|------------------------------------------------|--------|-----------------------------|---------|--------|---------------------------|--------|
|                                           |   | 2009                        |    |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
| ECC/AFT                                        |   | $                           | 881,846 |   |                      | $      | 653,545 |   |   | $ | 1,774,162 |   |   | $ | 1,181,906 |   |
| M&W/FPF, net of eliminations               |   |                        | -       |   |                      |   | (81,168 | ) |   |   | - |   |   |   | (156,940 | ) |
| Total SG&A expenses                        |   | $                           | 881,846 |   |                      | $      | 572,377 |   |   | $ | 1,774,162 |   |   | $ | 1,024,966 |   |
|                                           |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| ECC/AFT % of revenue                           |   |                        | 45.5    | %      |                      |   | 39.9 | % |   |   | 40.8 | % |   |   | 36.2 | % |

| (Loss) from operations           |   | Three months ended June 30, |     |   | Six months ended June 30, |   |
|----------------------------------|--------|-----------------------------|----------|--------|---------------------------|--------|
|                             |   | 2009                        |     |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
| ECC/AFT                          |   | $                           | (710,452 | )      |                      | $      | (494,183 | ) |   | $ | (1,158,301 | ) |   | $ | (684,196 | ) |
| M&W/FPF, net of eliminations |   |                        | -        |   |                      |   | 92,707 |   |   |   | - |   |   |   | 199,031 |   |
| Total (loss) from operations     |   | $                           | (710,452 | )      |                      | $      | (401,476 | ) |   | $ | (1,158,301 | ) |   | $ | (485,165 | ) |
|                             |   |                        |     |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| ECC/AFT % of revenue             |   |                        | (36.7    | %)     |                      |   | (30.1 | %) |   |   | (26.6 | %) |   |   | (21.0 | %) |

----

| Other (expense)       |   | Three months ended June 30, |     |   | Six months ended June 30, |   |
|-----------------------|--------|-----------------------------|----------|--------|---------------------------|--------|
|                  |   | 2009                        |     |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
| ECC/AFT               |   | $                           | (273,329 | )      |                      | $      | (38,612 | ) |   | $ | (1,440,122 | ) |   | $ | (67,081 | ) |
| M&W/FPF           |   |                        | -        |   |                      | $      | (51,356 | ) |   |   | - |   |   | $ | (104,725 | ) |
| Total other (expense) |   | $                           | (273,329 | )      |                      | $      | (89,968 | ) |   | $ | (1,440,122 | ) |   | $ | (171,806 | ) |
|                  |   |                        |     |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| ECC/AFT % of revenue  |   |                        | (14.1    | %)     |                      |   | (2.4 | %) |   |   | (33.1 | %) |   |   | (2.1 | %) |

| Net loss                                     |   | Three months ended June 30, |     |   | Six months ended June 30, |   |
|----------------------------------------------|--------|-----------------------------|----------|--------|---------------------------|--------|
|                                         |   | 2009                        |     |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
| Loss before provision for income taxes       |   | $                           | (983,781 | )      |                      | $      | (491,444 | ) |   | $ | (2,598,423 | ) |   | $ | (656,971 | ) |
| Income tax benefit                           |   |                        | 404,000  |   |                      |   | 213,000 |   |   |   | 1,028,000 |   |   |   | 185,000 |   |
| Less: Net income attributable to M&W/FPF |   |                        | -        |   |                      |   | (41,351 | ) |   |   | - |   |   |   | (94,306 | ) |
| Net loss                                     |   | $                           | (579,781 | )      |                      | $      | (319,795 | ) |   | $ | (1,570,423 | ) |   | $ | (566,277 | ) |
|                                         |   |                        |     |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| % of ECC/AFT revenue                         |   |                        | (29.9    | %)     |                      |   | (19.5 | %) |   |   | (36.1 | %) |   |   | (17.4 | %) |
|                                         |   |                        |     |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| ECC/AFT increase / (decrease) from 2008      |   | $                           | (259,986 | )      |                      |   |   |   |   | $ | (1,004,146 | ) |   |   |   |   |
| ECC/AFT % increase / (decrease) from 2008    |   |                        | (81.3    | %)     |                      |   |   |   |   |   | (177.3 | %) |   |   |   |   |

----

----

----

----

| Date               | Persons or Class of Persons | Securities                    | Consideration                                                             |
|--------------------|-----------------------------|-------------------------------|---------------------------------------------------------------------------|
| April 1, 2009      | 25 accredited investors     | 7,119 shares of common stock  | $17,790 of accrued interest paid to debenture holders                     |
| May 14, 2009       | Executive officer           | 24,272 shares of common stock | Compensation for services                                                 |
| June 23, 2009      | 3 directors                 | 9,975 shares of common stock  | Compensation for services                                                 |
| April through June | 4 accredited investors      | 20,365 shares of common stock | Conversion of $50,000 of Debenture principal and $912 of accrued interest |

----

| RegulationS-K Number | Document                                                                                                                                      |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1                  | Articles of Merger effective October 14, 2008 (1)                                                                                             |
| 3.2                  | Amended and Restated Articles of Incorporation effective October 14, 2008 (1)                                                                 |
| 3.3                  | Amended and Restated Bylaws adopted October 14, 2008 (1)                                                                                      |
| 4.1                  | Form of Debenture (2)                                                                                                                         |
| 4.2                  | Form of Warrant (2)                                                                                                                           |
| 10.1                 | Share Exchange Agreement dated June 26, 2008 (3)                                                                                              |
| 10.2                 | First Amendment to Share Exchange Agreement dated August 8, 2008 (4)                                                                          |
| 10.3                 | 2008 Stock Incentive Plan (1)                                                                                                                 |
| 10.4                 | Industrial Development Revenue Bonds, Bond Agreement dated February 28, 2007 (1)                                                              |
| 10.5                 | Industrial Development Revenue Bonds, Promissory Note 2007A dated February 28, 2007 (1)                                                       |
| 10.6                 | Industrial Development Revenue Bonds, Promissory Note 2007B dated February 28, 2007 (1)                                                       |
| 10.7                 | Industrial Development Revenue Bonds, Promissory Note 2007C dated February 28, 2007 (1)                                                       |
| 10.8                 | Industrial Development Revenue Bonds, Credit Agreement dated February 28, 2007 (1)                                                            |
| 10.9                 | Industrial Development Revenue Bonds, Construction Mortgage, Assignment Of Leases And Rents and Fixture Filing dated February 28, 2007 (1)    |
| 10.10                | Industrial Development Revenue Bonds, Security Agreement dated February 28, 2007 (1)                                                          |
| 10.11                | Option Agreement dated June 18, 2008 (1)                                                                                                      |
| 10.12                | Purchase and Supply Agreement dated October 13, 2008 (1)                                                                                      |
| 10.13                | Unsecured Promissory Note dated December 31, 2008 (5)                                                                                         |
| 10.14                | Assignment and Assumption Agreement dated December 31, 2008 (6)                                                                               |
| 10.15                | Amendment to the Credit Agreement dated March 13, 2009 (7)                                                                                    |
| 10.16                | Employee Stock Purchase Plan (8)                                                                                                              |
| 31.1                 | Rule 13a-14(a) Certification of Samuel W. Fairchild                                                                                           |
| 31.2                 | Rule 13a-14(a) Certification of Jeffrey S. Keuntjes                                                                                           |
| 32.1                 | Certification of Samuel W. Fairchild Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 32.2                 | Certification of Jeffrey S. Keuntjes Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |

| (1)     | Filed as an exhibit to the Current Report on Form 8-K dated October 14, 2008, filed October 17, 2008. |
|------------------------|-------------------------------------------------------------------------------------------------------|

| (2)     | Filed as an exhibit to the Current Report on Form 8-K dated December 15, 2008, filed December 19, 2008. |
|------------------------|---------------------------------------------------------------------------------------------------------|

| (3)     | Filed as an exhibit to the Current Report on Form 8-K dated June 26, 2008, filed June 27, 2008. |
|------------------------|-------------------------------------------------------------------------------------------------|

| (4)     | Filed as an exhibit to the Definitive Information Statement on Schedule 14C, filed September 24, 2008. |
|------------------------|--------------------------------------------------------------------------------------------------------|

| (5)     | Filed as an exhibit to the Current Report on Form 8-K/A dated December 31, 2008, filed January 26, 2009. |
|------------------------|----------------------------------------------------------------------------------------------------------|

| (6)     | Filed as an exhibit to the Current Report on Form 8-K dated December 31, 2008, filed January 6, 2009. |
|------------------------|-------------------------------------------------------------------------------------------------------|

| (7)     | Filed as an exhibit to the Annual Report for the year ended December 31, 2008 on Form 10-K filed June 30, 2009. |
|------------------------|-----------------------------------------------------------------------------------------------------------------|

| (8)     | Filed as an exhibit to the Current Report on Form 8-K dated June 2, 2009, filed June 5, 2009. |
|------------------------|-----------------------------------------------------------------------------------------------|

|                              | ENERGY COMPOSITES CORPORATION |
|-----------------------------------|-------------------------------|
|                              |                          |   |
|                              |                          |   |
| Dated:  August 14, 2009 | By:                           | /s/ Samuel W. Fairchild |
|                              |                          | Samuel W. Fairchild, Chief Executive Officer |

----

----