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UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-QSB

|ý | Quarterly Report under Section 13 or 15(d) of the Securities Exchange Act of 1934
|- | ---------------------------------------------------------------------------------

For the quarterly period ended June 30, 2002

|o | Transition report under Section 13 or 15(d) of the Exchange Act
|- | ---------------------------------------------------------------

For the transition period from  to

Commission File Number: 0-32129

ENERGY & ENGINE TECHNOLOGY CORPORATION(Exact name of registrant as specified in its charter)

Nevada(State or other jurisdiction
of incorporation or organization)

88-0471842(I.R.S. Employer
Identification No.)5308 West Plano Parkway
Plano, Texas(Address of principal executive offices)

75093(Zip Code)


Registrant's telephone number, including area code (972) 732-6360

Former address (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 ý    No o

The
number of shares of Registrant's common stock outstanding as of June 30, 2002 was 13,254,557.

Transitional
Small Business Disclosure Format  Yes ý    No o

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PART IFINANCIAL INFORMATION

Item 1. Financial Statements.

Following are the Financial Statements of Registrant for the three months ended June 30, 2002 and 2001, reviewed by Parker & Co., Chartered
Accountants.

Item 2. Management's Discussion and Analysis or Plan of Operation

Plan of Operation

Registrant
expects its current cash in the bank, in addition to the revenues it expects to derive from sales of its products and services to satisfy its cash requirements for business operations for
at least the next 12 months with a capital raise of $500,000$2,000,000 which will also cover future capital expenditures.

For
the three months ended June 30, 2002, Registrant had generated revenues of $28,804 but has not expended any significant amount of money for research and development. During the next
12 months, Registrant intends to spend approximately $50,000 on advertising, marketing and promotion of its services.

Liquidity and Capital Resources

Registrant's
working capital consists primarily of cash in the bank it has received from sales of its equity securities. As of June 30, 2002, Registrant had a total of $20,976 of cash in the
bank; $16,668 of accounts receivable; $0 in prepaid expenses and deposits; and $351,203 in gas gathering plant, equipment and furniture. Registrant had a total of $256,332 in outstanding accounts
payable. Registrant does not intend to spend any significant amounts of its working capital on capital expenditures during the next 12 months unless sufficient capital is raised.

Results of Operations

For
the three month period ended June 30, 2002, Registrant incurred a net operating loss of $322,680, which was comprised of general and administrative expenses and expenses of the gas
gathering system.

The
ability of Registrant to continue as a going concern is dependent on its ability to generate revenues or raise funds through sale of its equity securities for use in administrative and operational
activities.

2

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PART IIOTHER INFORMATION

Item 2. Changes in Securities and Use of Proceeds

On
June 28, 2002, the issuer sold 2,000,000 shares of its Common Stock, restricted under Rule 144 promulgated under the Securities Act of 1933. The securities were sold to a private
accredited investor. The total offering price was $200,000, and there were no discounts or commissions paid with respect to the aforementioned sale. The transaction was exempt from registration under
Section 4(2) of the Securities Act of 1933 as it was a sale by Registrant of its restricted Common Stock to one individual, previously known to senior management of Registrant, with whom senior
management has had a long term prior business relationship. Such individual has represented to senior management that he is an accredited investor, and such individual was the only person approached
with respect to such investment, and was approached by senior management directly. The use of such proceeds is general working capital.

3

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ENERGY & ENGINE TECHNOLOGY CORPORATIONFORMERLY BIDDER COMMUNICATIONS, INC.INTERIM CONSOLIDATED FINANCIAL STATEMENTSFOR
THE THREE MONTHS AND SIX MONTHS ENDED 30 JUNE 2002 AND 2001Unaudited  See Independent Review Engagement Report

C O N T E N T S

|                                                                  |  | Page  
|----------------------------------------------------------------- |  | ------
|INDEPENDENT REVIEW ENGAGEMENT REPORT                              |  | 1     
|INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION              |  | 2     
|INTERIM CONSOLIDATED STATEMENT OF LOSS AND DEFICIT                |  | 3     
|INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS                      |  | 4     
|INTERIM CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY |  | 5     
|NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS            |  | 6 & 10

---

|P A R K E R & C O.CHARTERED ACCOUNTANTS    |  | Page 1 of 10                           
|------------------------------------------ |  | ---------------------------------------
|                                          
|2002560 Simpson Road, Richmond BC V6X 2P9 |  | Tel: (604) 276-9920 Fax: (604) 276-4577
|                                          

INDEPENDENT REVIEW ENGAGEMENT REPORT

To
the stockholders of Energy & Engine Technology Corporation

We
have reviewed the interim consolidated statement of financial position of Energy & Engine Technology Corporation, as at 30 June 2002 and as at 31 December 2001 and the interim consolidated
statements of results of operations and cash flows for the three months and six months ended 30 June 2002 and 2001 and the interim consolidated statement of changes in stockholders' equity from
inception, 16 November 1999, to 30 June 2002, in accordance with the standards established by the American Institute of Certified Public Accountants. These interim consolidated financial statements
are the responsibility of the company's management.

A
review of interim consolidated financial information consists principally of obtaining an understanding of the system for the preparation of interim consolidated financial information, applying
analytical review procedures to financial data, and making inquiries of persons responsible for financial and accounting matters. A review is substantially less in scope than an audit in accordance
with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statement taken as a whole. Accordingly, we do not express such an opinion.

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

We
have previously audited, in accordance with generally accepted auditing standards in the United States, the statements of financial position as at 31 December 2001, and the statements of results of
operation and cash flow for the year then ended and the statement of changes in shareholders' equity from inception, 16 November 1999, to 31 December 2001. In our opinion, the information set forth in
the accompanying interim consolidated statement of financial position as of 30 June 2002, is fairly stated in all material respects in relation to the statement of financial position from which it has
been derived.

These
interim consolidated financial statements have been prepared assuming the company will continue as a going concern. As stated in Note 2 to the interim consolidated financial statements, the
company will require an infusion of capital to sustain itself. This requirement for additional capital raises substantial doubt about the company's ability to continue as a going concern. The interim
consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Richmond, British Columbia, Canada
09 August 2002

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PARKER & CO.
CHARTERED ACCOUNTANTS

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ENERGY & ENGINE TECHNOLOGY CORPORATIONFORMERLY BIDDER COMMUNICATIONS, INC.INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITIONUnaudited  See Independent Review Engagement
Report                                        
                                        Page 2 of 10

|                                                       |  | AS AT
30 JUNE
2002 |          | AS AT
31 DECEMBER
2001 |  
|------------------------------------------------------ |  | ------------------ | -------- | ---------------------- | -
|CURRENT ASSETS                                         |  |                    |          |                        |  
|Cash                                                   |  | $                  | 20,976   |                        | $
|Accounts Receivable                                    |  |                    | 16,668   |                        |  
|                                                       |  |                    |          |                        |  
|Total current assets                                   |  |                    | 37,644   |                        |  
|                                                       |  |                    |          |                        |  
|PLANT AND EQUIPMENT, NOTE 3                            |  |                    |          |                        |  
|Gas gathering system, equipment and furniture, at cost |  |                    | 351,203  |                        |  
|Accumulated amortization                               |  |                    | 107,256  |                        |  
|                                                       |  |                    |          |                        |  
|Unamortized plant and equipment costs                  |  |                    | 243,947  |                        |  
|                                                       |  |                    |          |                        |  
|                                                       |  |                    |          |                        |  
|TOTAL ASSETS                                           |  | $                  | 281,591  |                        | $
|                                                       |  |                    |          |                        |  
|CURRENT LIABILITIES                                    |  |                    |          |                        |  
|Accounts payable                                       |  | $                  | 255,513  |                        | $
|Employee deductions and payroll taxes payable          |  |                    | 819      |                        |  
|                                                       |  |                    |          |                        |  
|Total current liabilities                              |  |                    | 256,332  |                        |  
|                                                       |  |                    |          |                        |  
|STOCKHOLDERS' EQUITY                                   |  |                    |          |                        |  
|Share capital, Note 4                                  |  |                    | 13,187   |                        |  
|Additional paid-in capital                             |  |                    | 792,341  |                        |  
|Deficit                                                |  |                    | (780,269 | )                      |  
|                                                       |  |                    |          |                        |  
|Total stockholders' equity                             |  |                    | 25,259   |                        |  
|                                                       |  |                    |          |                        |  
|                                                       |  |                    |          |                        |  
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY             |  | $                  | 281,591  |                        | $
|                                                       |  |                    |          |                        |  

DIRECTORS'
APPROVAL:

---

ENERGY & ENGINE TECHNOLOGY CORPORATIONFORMERLY BIDDER COMMUNICATIONS, INC.INTERIM CONSOLIDATED STATEMENT OF LOSS AND DEFICITUnaudited  See Independent Review Engagement
Report                                        
                                        Page 3 of 10

|                                           |  | FOR THE THREE
MONTHS ENDED |           | FOR THE SIX
MONTHS ENDED |   
|------------------------------------------ |  | -------------------------- | --------- | ------------------------ | --
|
|REVENUE                                    |  |                            |           |                          |   
|Sales                                      |  | $                          | 28,804    |                          | $ 
|Other income                               |  |                            |          |                          |   
|                                           |  |                            |           |                          |   
|Total revenue                              |  |                            | 28,804    |                          |   
|                                           |  |                            |           |                          |   
|EXPENSES OF GAS GATHERING SYSTEMS          |  |                            |           |                          |   
|Gas disbursement                           |  |                            | 21,004    |                          |   
|Compressor expenses                        |  |                            | 401       |                          |   
|Pipeline operation and charts              |  |                            | 8,688     |                          |   
|Filed supervision, labour and benefits     |  |                            | 3,499     |                          |   
|Service Vehicles                           |  |                            | 5,794     |                          |   
|Shop                                       |  |                            | 3,726     |                          |   
|Office rent                                |  |                            | 1,133     |                          |   
|Amortization of plant and equipment        |  |                            | 17,656    |                          |   
|                                           |  |                            |           |                          |   
|Total expenses of gas gathering systems    |  |                            | 61,901    |                          |   
|                                           |  |                            |           |                          |   
|ADMINISTRATIVE EXPENSES                    |  |                            |           |                          |   
|Advertising                                |  |                            | 2,682     |                          |   
|Consulting                                 |  |                            | 19,900    |                          |   
|Courier, postage and parking               |  |                            | 903       |                          |   
|Professional fees                          |  |                            | 3,045     |                          |   
|Public investor relations                  |  |                            | 20,000    |                          |   
|Administration services                    |  |                            | 30,000    |                          |   
|Office supplies                            |  |                            | (2,426    | )                        |   
|Transfer agent                             |  |                            | 376       |                          |   
|Bank charges, interest                     |  |                            | 158       |                          |   
|Development Costs                          |  |                            | 39,777    |                          |   
|News release, registration and filing fees |  |                            | 7,091     |                          |   
|Wages and salaries                         |  |                            | 146,989   |                          |   
|Insurance, dues and subscriptions          |  |                            | 445       |                          |   
|Licence and permits                        |  |                            | 228       |                          |   
|Travel                                     |  |                            | 10,695    |                          |   
|Meals and entertainment                    |  |                            | 2,212     |                          |   
|Management fees                            |  |                            |          |                          |   
|Telephone and internet communications      |  |                            | 6,686     |                          |   
|Computer system                            |  |                            | 822       |                          |   
|                                           |  |                            |           |                          |   
|Total expenses                             |  |                            | 289,583   |                          |   
|                                           |  |                            |           |                          |   
|Total expensed cost                        |  |                            | 351,484   |                          |   
|                                           |  |                            |           |                          |   
|LOSSES BEFORE INCOME TAXES                 |  |                            | (322,680  | )                        |   
|INCOME TAXES, NOTE 5                       |  |                            |          |                          |   
|                                           |  |                            |           |                          |   
|NET LOSS                                   |  |                            | (322,680  | )                        |   
|DEFICIT, BEGINNING                         |  |                            | (457,589  | )                        |   
|                                           |  |                            |           |                          |   
|DEFICIT, ENDING                            |  | ($                         | 780,269   | )                        | ($
|                                           |  |                            |           |                          |   
|LOSS PER SHARE, NOTE 6                     |  | ($                         | 0.08      | )                        | ($
|                                           |  |                            |           |                          |   
|WEIGHTED AVERAGE NUMBER OF SHARES          |  |                            | 9,955,519 |                          |   
|                                           |  |                            |           |                          |   

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ENERGY & ENGINE TECHNOLOGY CORPORATIONFORMERLY BIDDER COMMUNICATIONS, INC.INTERIM CONSOLIDATED STATEMENT OF CASH FLOWSUnaudited  See Independent Review Engagement
Report                                        
                                        Page 4 of 10

|                                                    |                                               | FOR THE THREE
MONTHS ENDED |          | FOR THE SIX
MONTHS ENDED |  
|--------------------------------------------------- | --------------------------------------------- | -------------------------- | -------- | ------------------------ | -
|
|CASH PROVIDED (USED) FROM OPERATIONS                |                                               |                            |          |                          |  
|From operation                                      |                                               |                            |          |                          |  
|                                                    | Net loss                                      |                            | ($       | 322,680                  | )
|                                                    | Non cash items included therein               |                            |          |                          |  
|                                                    | Amortization of gas gathering system          |                            |          | 17,656                   |  
|                                                    |                                               |                            |          |                          |  
|                                                    | Cash used for loss                            |                            |          | (305,024                 | )
|                                                    |                                               |                            |          |                          |  
|Changes in working capital other than cash          |                                               |                            |          |                          |  
|                                                    | Goods and services taxes recoverable          |                            |          |                         |  
|                                                    | Deposit on rents                              |                            |          |                         |  
|                                                    | Accounts Receivable                           |                            |          | (16,668                  | )
|                                                    | Accounts payable                              |                            |          | 100,132                  |  
|                                                    | Employee deductions and payroll taxes payable |                            |          | 819                      |  
|                                                    |                                               |                            |          |                          |  
|                                                    | Cash provided (used) for working capital      |                            |          | 84,283                   |  
|                                                    |                                               |                            |          |                          |  
|Total cash provided (used) from operations          |                                               |                            | (220,741 | )                        |  
|                                                    |                                               |                            |          |                          |  
|CASH PROVIDED (USED) BY INVESTMENT ACTIVITY         |                                               |                            |          |                          |  
|                                                    | Acquisition of capital assets                 |                            |          |                         |  
|                                                    | Adjustment to capital assets purchased        |                            |          | 1,912                    |  
|                                                    |                                               |                            |          |                          |  
|Total cash provided (used) by investment activities |                                               |                            | 1,912    |                          |  
|                                                    |                                               |                            |          |                          |  
|CASH PROVIDED (USED) BY FINANCING ACTIVITY          |                                               |                            |          |                          |  
|                                                    | Shares issued                                 |                            |          | 2,610                    |  
|                                                    | Additional paid up capital                    |                            |          | 223,090                  |  
|                                                    |                                               |                            |          |                          |  
|Total cash provided by financing                    |                                               |                            | 225,700  |                          |  
|                                                    |                                               |                            |          |                          |  
|CASH CHANGE                                         |                                               |                            | 6,871    |                          |  
|CASH BEGINNING                                      |                                               |                            | 14,105   |                          |  
|                                                    |                                               |                            |          |                          |  
|CASH ENDING                                         |                                               | $                          | 20,976   |                          | $
|                                                    |                                               |                            |          |                          |  
|COMPRISED OF:                                       |                                               |                            |          |                          |  
|                                                    | Cash                                          |                            | $        | 20,976                   |  
|                                                    |                                               |                            |          |                          |  

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ENERGY & ENGINE TECHNOLOGY CORPORATIONFORMERLY BIDDER COMMUNICATIONS, INC.
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
FROM INCEPTION, 16 NOVEMBER 1999, TO 30 JUNE 2002Unaudited  See Independent Review Engagement
Report                                        
                                        Page 5 of 10

|CONSIDERATION                                                                                                |  | COMMON
STOCK
ISSUED |   | COMMON
STOCK
AMOUNT |        | ADDITIONAL
PAID IN
CAPITAL |   | (DEFICIT) |  | TOTAL |         
|------------------------------------------------------------------------------------------------------------ |  | ------------------- | - | ------------------- | ------ | -------------------------- | - | --------- |  | ----- | --------
|Private placement for cash on 1 December 1999                                                                |  | 2,000,000           |   | $                   | 2,000  |                            | $ | 0         |  |       |         
|Private placement for cash on 12 December 1999                                                               |  | 5,000,000           |   |                     | 5,000  |                            |   | 45,000    |  |       |         
|Net loss from incorporation, 16 November 1999, to 31 December 1999                                           |  |                     |   |                     |        |                            |   |           |  | ($    | 909     
|                                                                                                             |  |                     |   |                     |        |                            |   |           |  |       |         
|Balance as at 31 December 1999                                                                               |  | 7,000,000           |   |                     | 7,000  |                            |   | 45,000    |  |       | (909    
|Private placement for cash on 31 July 2000                                                                   |  | 1,300,000           |   |                     | 1,300  |                            |   | 63,700    |  |       |         
|Net loss for the year ended 31 December 2000                                                                 |  |                     |   |                     |        |                            |   |           |  |       | (42,550 
|                                                                                                             |  |                     |   |                     |        |                            |   |           |  |       |         
|Balance as at 31 December 2000                                                                               |  | 8,300,000           |   |                     | 8,300  |                            |   | 108,700   |  |       | (43,459 
|Private placement for cash on 26 June 2001                                                                   |  | 54,286              |   |                     | 54     |                            |   | 379,946   |  |       |         
|Shares issued in 1 December 1999 Surrendered for cancellation on 7 September 2001                            |  | (2,000,000          | ) |                     | (2,000 | )                          |   | 2,000     |  |       |         
|Private placement as partial consideration For the acquisition of a gas gathering system On 7 September 2001 |  | 3,827,621           |   |                     | 3,828  |                            |   |          |  |       |         
|Net loss for the year ended 31 December 2001                                                                 |  |                     |   |                     |        |                            |   |           |  |       | (215,201
|                                                                                                             |  |                     |   |                     |        |                            |   |           |  |       |         
|Balance as at 31 December 2001                                                                               |  | 10,181,907          |   |                     | 10,182 |                            |   | 490,646   |  |       | (258,660
|Shares issued for consulting services On 10 January 2002                                                     |  | 375,000             |   |                     | 375    |                            |   | 74,625    |  |       |         
|Shares issued for consulting services On 12 February 2002                                                    |  | 20,000              |   |                     | 20     |                            |   | 3,980     |  |       |         
|Net loss for the three months ended 31 March 2002                                                            |  |                     |   |                     |        |                            |   |           |  |       | (198,929
|                                                                                                             |  |                     |   |                     |        |                            |   |           |  |       |         
|Balance as at 31 March 2002                                                                                  |  | 10,576,907          |   |                     | 10,577 |                            |   | 569,251   |  |       | (457,589
|Shares issued for consulting services On 25 April 2002                                                       |  | 75,000              |   |                     | 75     |                            |   | 3,085     |  |       |         
|Replacement stock issued for stock paid for and not received by stockholders On 25 April 2002                |  | 67,650              |   |                     |       |                            |   |          |  |       |         
|Shares issued for patent acquisition On 26 April 2002                                                        |  | 35,000              |   |                     | 35     |                            |   | 1,440     |  |       |         
|Shares issued for consulting services On 24 May 2002                                                         |  | 500,000             |   |                     | 500    |                            |   | 20,565    |  |       |         
|Shares issued for cash On 28 June 2002                                                                       |  | 2,000,000           |   |                     | 2,000  |                            |   | 198,000   |  |       |         
|Net loss for the three months ended 30 June 2002                                                             |  |                     |   |                     |        |                            |   |           |  |       | (322,680
|                                                                                                             |  |                     |   |                     |        |                            |   |           |  |       |         
|Balance as at 30 June 2002                                                                                   |  | 13,254,557          |   | $                   | 13,187 |                            | $ | 792,341   |  | ($    | 780,269 
|                                                                                                             |  |                     |   |                     |        |                            |   |           |  |       |         

---

ENERGY & ENGINE TECHNOLOGY CORPORATIONFORMERLY BIDDER COMMUNICATIONS, INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS AND SIX MONTHS ENDED 30 JUNE 2002 AND 2001Unaudited  See Independent Review Engagement
Report                                        
                                        Page 6 of 10

Note 1 THE CORPORATION AND ITS BUSINESS

Energy
& Engine Technology Corporation was incorporated under the name Bidder Communications, Inc. in the State of Nevada, United States on 16 November 1999. It changed its name from Bidder
Communications, Inc. to Energy & Engine Technology Corporation on 4 December 2001.

On
7 September 2001 the company acquired 100% of the membership interest in Southern States Gas Gathering, LLC, a Louisiana Limited Liability Company whose business is the operation of a 65 mile gas
gathering system in the Caddo Pine Island field of North Louisiana for 3,827,621 shares of the common stock of the company plus $150,000 cash. The 3,827,621 shares of the common stock were issued at
their par value of $0.001 per share or $3,828 resulting in a total purchase valuation of $153,828. The accounting value of the assets in Southern States Gas Gathering, LLC were $250,703 at the time of
the acquisition. As a result the assets were valued down by $96,875 on consolidation. Southern States Gas Gathering, LLC's year end is 31 December.

As
part of this acquisition the company also acquired from Trailblazer Production Company, L.C., a Texas Limited Liability Company, Globalsat Technology data. In exchange for this data the company had
given Trailblazer Production Company, L.C. an option to acquire 25% of its interest in Southern States Gas Gathering, LLC. On 5 August 2002 the agreement was cancelled.

On
1 November 2001 the company's subsidiary Southern States Gas Gathering, LLC entered into a contract to sell gathered gas to a major gas gatherer and marketer. The contract is subject to market
pricing, quality requirements and volume sufficiency's. The contract is effective 1 November 2001 and is to continue in full force and effect for a primary term of six months and monthly thereafter.
The contract can be cancelled on 30 days written notice before any of the contract periods expire.

---

ENERGY & ENGINE TECHNOLOGY CORPORATIONFORMERLY BIDDER COMMUNICATIONS, INC.NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTSFOR THE THREE MONTHS AND SIX MONTHS ENDED 30 JUNE 2002 AND 2001Unaudited  See Independent Review Engagement
Report                                        
                                        Page 7 of 10

Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES

These
interim consolidated financial statements have been prepared in United States dollars, which have been rounded to the nearest whole dollar except for the net loss per share which has been
rounded to the nearest cent, using United States Generally Accepted Accounting Principles. These accounting principles are applicable to a going concern, which contemplates the realization and
liquidation of liabilities in the normal course of business. Current business activity has just begun and insufficient revenue has been generated to sustain the company as a going concern without the
infusion of additional capital.

The
acquisition of the subsidiary was accounted for as a purchase. The assets less liabilities were valued at their fair market value which equalled the price consideration. Asset cost in excess of
the fair market value or purchase price were excluded on consolidation. Only revenue, expenses and cash flow since the acquisition have been included in the interim consolidated financial statements.

Revenue
is recorded as a sale at the time the goods are shipped from the company's warehouse. Costs are recorded at the time an obligation to pay occurs and are expensed at the time the benefit to the
company is matched to revenue or, if there is no matching revenue, to the period in which the benefit is realized.

Capital
assets are recorded at their cost and amortized at 20% of their declining balance and prorated within a year.

Note 3 CAPITAL ASSETS

|                     |  | ACCUMULATED
COST AMORTIZATION |         | UNAMORTIZED
COST
30 June
2002 |   | UNAMORTIZED
COST
31 DECEMBER
2001
|-------------------- |  | ----------------------------- | ------- | ----------------------------- | - | ---------------------------------
|Gas gathering system |  | $                             | 351,203 |                               | $ | 107,256                          
|                     |  |                               |         |                               |   |                                  
|                     |  | $                             | 351,203 |                               | $ | 107,256                          
|                     |  |                               |         |                               |   |                                  

---

ENERGY & ENGINE TECHNOLOGY CORPORATIONFORMERLY BIDDER COMMUNICATIONS, INC.
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS AND SIX MONTHS ENDED 30 JUNE 2002 AND 2001Unaudited  See Independent Review Engagement
Report                                        
                                        Page 8 of 10

Note 4 SHARE CAPITAL

The authorized capital stock is 100,000,000 shares of common stock with a par value of $0.001. 13,254,557 shares of common stock have been issued as follows:

|CONSIDERATION                                                                                                                       |  | DATE              |  | ISSUED     |   | SHARE
CAPITAL |         | ADDITIONAL
PAID IN
CAPITAL |   | TOTAL  
|----------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- |  | ---------- | - | ------------- | ------- | -------------------------- | - | -------
|Private placement for cash
With trading restrictions                                                                                |  | 1 December 1999   |  | 2,000,000  |   | $             | 2,000   |                            | $ | 0      
|Private placement for cash
With trading restrictions                                                                                |  | 12 December 1999  |  | 2,500,000  |   |               | 2,500   |                            |   | 22,500 
|With trading restrictions which
were released on 4 January 2002                                                                     |  | 12 December 1999  |  | 2,500,000  |   |               | 2,500   |                            |   | 22,500 
|                                                                                                                                    |  |                   |  |            |   |               |         |                            |   |        
|Balance as at                                                                                                                       |  | 31 December 1999  |  | 7,000,000  |   |               | 7,000   |                            |   | 45,000 
|Private placement for cash
With no trading restrictions                                                                             |  | 31 July 2000      |  | 1,300,000  |   |               | 1,300   |                            |   | 63,700 
|                                                                                                                                    |  |                   |  |            |   |               |         |                            |   |        
|Balance as at                                                                                                                       |  | 31 December 2000  |  | 8,300,000  |   |               | 8,300   |                            |   | 108,700
|Private placement
With trading restrictions
For cash at $7 per share                                                                |  | 26 June 2001      |  | 54,286     |   |               | 54      |                            |   | 379,946
|Surrender for cancellation shares
that were issued on 1 December
1999 with trading restrictions                                     |  | 29 August 2001    |  | (2,000,000 | ) |               | (2,000  | )                          |   | 2,000  
|Private placement with trading
restrictions. At $0.001 per share
as partial consideration for the
purchase of the gathering system. |  | 30 September 2001 |  | 3,827,621  |   |               | 3,828   |                            |   |       
|                                                                                                                                    |  |                   |  |            |   |               |         |                            |   |        
|Balance as at 31 December 2001                                                                                                      |  | 10,181,907        |  | 10,182     |   |               | 490,646 |                            |   | 500,828
|Shares issued for consulting
Without trading restrictions                                                                           |  | 10 January 2002   |  | 375,000    |   |               | 375     |                            |   | 74,625 
|Shares issued for consulting
With trading restrictions                                                                              |  | 12 February 2002  |  | 20,000     |   |               | 20      |                            |   | 3,980  
|                                                                                                                                    |  |                   |  |            |   |               |         |                            |   |        
|Balance as at                                                                                                                       |  | 31 March 2002     |  | 10,576,907 |   |               | 10,577  |                            |   | 569,251
|Shares issued for consulting
Without trading restrictions                                                                           |  | 25 April 2002     |  | 75,000     |   |               | 75      |                            |   | 3,085  
|Replacement stock issued for stock paid for
and not received by stockholders
With trading restrictions                              |  | 25 April 2002     |  | 67,650     |   |               |        |                            |   |       
|Shares issued for patent acquisition
With trading restrictions                                                                      |  | 26 April 2002     |  | 35,000     |   |               | 35      |                            |   | 1,440  
|Shares issued for consulting
Without trading restrictions                                                                           |  | 24 May 2002       |  | 500,000    |   |               | 500     |                            |   | 20,565 
|Shares issued for cash
With trading restrictions                                                                                    |  | 28 June 2002      |  | 2,000,000  |   |               | 2,000   |                            |   | 198,000
|                                                                                                                                    |  |                   |  |            |   |               |         |                            |   |        
|Balance as at                                                                                                                       |  | 30 June 2002      |  | 13,254,557 |   |               | 13,187  |                            |   | 792,341
|                                                                                                                                    |  |                   |  |            |   |               |         |                            |   |        

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ENERGY & ENGINE TECHNOLOGY CORPORATIONFORMERLY BIDDER COMMUNICATIONS, INC.NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTSFOR THE THREE MONTHS AND SIX MONTHS ENDED 30 JUNE 2002 AND 2001Unaudited  See Independent Review Engagement
Report                                        
                                        Page 9 of 10

Note 4 SHARE CAPITAL (CONTINUED)

|Total restricted shares   |  | 8,504,557 
|------------------------- |  | ----------
|Total unrestricted shares |  | 4,750,000 
|                          |  |           
|Total issued              |  | 13,254,557
|                          |  |           

Restricted
shares cannot be sold except pursuant to certain limitations and restrictions.

Note 5 INCOME TAXES

Income
taxes on losses have not been reflected in these financial statement as it is not virtually certain that these losses will be recovered before the expiry period of the loss carry forwards.

YEAR
INCURRED

LOSSES
CARRIED
FORWARD1999

$
9092000


35,4502001


177,7642002


521,609$
735,732


Note 6 LOSS PER SHARE

Basic
loss per share is computed by dividing losses available to common stockholders by the weighted-average number of common shares during the period. Diluted loss per share is calculated on the
weighted average number of common shares that would have resulted if dilutive common stock equivalents had been converted to common stock. No stock options or similar rights were available or granted
during the period presented. Accordingly, basic and diluted loss per share are the same for all periods presented.

Note 7 RELATED PARTY TRANSACTION

The
officers and directors of the company are involved in other business activities, and may, in the future become active in additional other business activities. If a specific business opportunity
becomes available, such persons may face a conflict in selecting between the company and their own business interests. The company has not formulated a policy for the resolution of such conflicts.

---

ENERGY & ENGINE TECHNOLOGY CORPORATIONFORMERLY BIDDER COMMUNICATIONS, INC.NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTSFOR THE THREE MONTHS AND SIX MONTHS ENDED 30 JUNE 2002 AND 2001Unaudited  See Independent Review Engagement
Report                                        
                                        Page 10 of 10

Note 8 COMMITMENT

On
or about 3 June 2002, Clark Whittaker assigned US patent, serial no. 09/981572, entitled "Auxiliary Power Unit for Vehicles" to the company. This patent is for a type of auxiliary power unit for
vehicles which are not allowed to leave their main motors idling under new environmental regulations. The company has issue 35,000 shares of its restricted common stock to Clark Whittaker for
acquisition of the patent. In addition, a royalty of $100 is payable for each unit sold by the company which is payable only upon receipt of product. If the engines cannot be marketed within one year
all of the rights to the product revert back to Clark Whittaker.

---

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.

|                       |  | Energy & Engine Technology Corporation                                  
|---------------------- |  | ------------------------------------------------------------------------
|Dated: August 14, 2002 |  | By: /s/ Willard G. McAndrew III
President, CEO and Chairman of the Board

Pursuant
to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of Registrant and in the capacities and on the
dates indicated:

|By: /s/ Willard G. McAndrew III, President, Chief Executive
            Officer and Chairman of the Board
|---------------------------------------------------------------------------------------------------------
|Dated: August 14, 2002                                                                                   
|By: /s/ Roger Wurtele, Vice President, Secretary,
            Chief Financial Officer and Director       
|Dated: August 14, 2002                                                                                   

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