|      |
|-----------|
| Form 10-Q |
|      |

|                                                   |
|--------------------------------------------------------|
| LIBERATED ENERGY, INC.                                 |
| (Exact name of registrant as specified in its charter) |
|                                                   |

| Nevada                                 |   | 27-4715504                           |
|----------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction           |   | (I.R.S. Employer Identification No.) |
|  of icorporation or organization) |   |                                 |

| 109 Burtons Road                         |   |       |
|------------------------------------------|--------|------------|
| Marlton, New Jersey                      |   | 08053      |
| (Address of principal executive offices) |   | (Zip Code) |

|                                                          |
|---------------------------------------------------------------|
| (Former Name or Former Address, if changed since last report) |

----

|   |  Large accelerated filer o                                                              |   |   |  Accelerated filer  o   |   |
|--------|----------------------------------------------------------------------------------------------|--------|--------|-----------------------------------|--------|
|   |  Non-accelerated filer o   (Do not check if a smaller reporting company) |   |   |  Smaller reporting company x |   |
|   |                                                                                         |   |   |                              |   |

----

TABLE OF CONTENTS

| Item #       |   | Description                                                                           |   | Page Numbers |
|--------------|--------|---------------------------------------------------------------------------------------|--------|--------------|
|         |   |                                                                                  |   |         |   |
|         |   | PART I                                                                                |   |  5      |   |
|         |   |                                                                                  |   |         |   |
| ITEM 1       |   | FINANCIAL STATEMENTS                                                                  |   | 5            |   |
|         |   |                                                                                  |   |         |   |
| ITEM 2       |   | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |   | 21           |   |
|         |   |                                                                                  |   |         |   |
| ITEM 3       |   | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                            |   |  25     |   |
|         |   |                                                                                  |   |         |   |
| ITEM 4       |   | CONTROLS AND PROCEDURES                                                               |   | 25           |   |
|         |   |                                                                                  |   |         |   |
|         |   | PART II                                                                               |   |  26     |   |
|         |   |                                                                                  |   |         |   |
| ITEM 1       |   | LEGAL PROCEEDINGS                                                                     |   | 26           |   |
|         |   |                                                                                  |   |         |   |
| ITEM 1A      |   | RISK FACTORS                                                                          |   | 26           |   |
|         |   |                                                                                  |   |         |   |
| ITEM 2       |   | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                           |   | 26           |   |
|         |   |                                                                                  |   |         |   |
| ITEM 3       |   | DEFAULTS UPON SENIOR SECURITIES                                                       |   | 27           |   |
|         |   |                                                                                  |   |         |   |
| ITEM 4       |   | MINE SAFETY DISCLOSURES                                                               |   | 27           |   |
|         |   |                                                                                  |   |         |   |
| ITEM 5       |   | OTHER INFORMATION                                                                     |   | 27           |   |
|         |   |                                                                                  |   |         |   |
| ITEM 6       |   | EXHIBITS                                                                              |   |  27     |   |
|         |   |                                                                                  |   |         |   |
|         |   | SIGNATURES                                                                            |   | 28           |   |
|         |   |                                                                                  |   |         |   |
| EXHIBIT 21.1 |   | SUBSIDIARIES                                                                          |   |         |   |
|         |   |                                                                                  |   |         |   |
| EXHIBIT 31.1 |   | SECTION 302 CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER                          |   |         |   |
|         |   |                                                                                  |   |         |   |
| EXHIBIT 31.2 |   | SECTION 302 CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER                          |   |         |   |
|         |   |                                                                                  |   |         |   |
| EXHIBIT 32.1 |   | SECTION 906 CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER                          |   |         |   |
|         |   |                                                                                  |   |         |   |
| EXHIBIT 32.2 |   | SECTION 906 CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER                          |   |         |   |

----

Table of Content

|   |    |                                                                                                                                                                                                   |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | • | risks arising from material weaknesses in our internal control over financial reporting, including material weaknesses in our control environment;                                                     |
|   |    |                                                                                                                                                                                                   |
|   | • | our ability to attract new clients and retain existing clients;                                                                                                                                        |
|   |    |                                                                                                                                                                                                   |
|   | • | our ability to retain and attract key employees;                                                                                                                                                       |
|   |    |                                                                                                                                                                                                   |
|   | • | risks associated with assumptions we make in connection with our critical accounting estimates;                                                                                                        |
|   |    |                                                                                                                                                                                                   |
|   | • | potential adverse effects if we are required to recognize impairment charges or other adverse accounting-related developments;                                                                         |
|   |    |                                                                                                                                                                                                   |
|   | • | potential downgrades in the credit ratings of our securities;                                                                                                                                          |
|   |    |                                                                                                                                                                                                   |
|   | • | risks associated with the effects of global, national and regional economic and political conditions, including fluctuations in economic growth rates, interest rates and currency exchange rates; and |
|   |    |                                                                                                                                                                                                   |
|   | • | developments from changes in the regulatory and legal environment for advertising and marketing and communications services companies around the world.                                                |

----

Table of Content

PART I

ITEM 1           FINANCIAL STATEMENTS

|   |
|--------|

| Consolidated Balance Sheets as of December 31, 2012 (Unaudited) and September 30, 2012  | Page      6 |
|----------------------------------------------------------------------------------------------|--------------------------------------|

| Consolidated Statements of Operations for the three months ended December 31, 2012 and 2011 (unaudited) |   7 |
|--------------------------------------------------------------------------------------------------------------|---------------|

| Consolidated Statements of Cash Flows for the three months ended December 31, 2012 and December 31, 2011 (unaudited) |   8 |
|--------------------------------------------------------------------------------------------------------------------------------|----------|

| Notes to Consolidated Financial Statements (Unaudited) |   9 |
|--------------------------------------------------------|----------|

----

|   |                                        |  Table of Content |
|--------|---------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY |                   |
|   |  (A Development Stage Company)         |                   |
|   | CONSOLIDATED BALANCE SHEET                  |                   |
|   |                                        |                   |

|                                                                                                                                                                            |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                            |   | December 31, 2012 |   |   | September 30, 2012 |   |
| ASSETS                                                                                                                                                                          |   |  (Unaudited) |   |   |   |   |
|                                                                                                                                                                            |   |   |   |   |   |   |
| CURRENT ASSETS:                                                                                                                                                                 |   |   |   |   |   |   |
|           Cash and Cash equivalents                                                                                                |   | $ | 3,904 |   |   | $ | 3,904 |   |
|           Prepaid rent deposit, net                                                                                                |   |   | -- |   |   |   | -- |   |
|           Prepaid deposit to supplier                                                                                              |   |   | 38,000 |   |   |   | 38,000 |   |
|                      Total current assets                                   |   |   | 41.904 |   |   |   | 41,904 |   |
|                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|            TOTAL ASSETS                                                                                                       |   | $ | 41,904 |   |   | $ | 41,904 |   |
|                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| CURRENT LIABILITIES:                                                                                                                                                            |   |   |   |   |   |   |   |   |
|            Accounts Payable                                                                                                   |   | $  | 44,250 |   |   | $ | 44,250 |   |
|                      Total current liabilities                         |   |   | 44,250 |   |   |   | 44,250 |   |
|                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| OTHER CURRENT LIABILITIES:                                                                                                                                                      |   |   |   |   |   |   |   |   |
|             Loans from Shareholders                                    |   |   | 88,737 |   |   |   | 88,737 |   |
|                       Total Other Current Liabilities                  |   |   | 88,737 |   |   |   | 88,387 |   |
|                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|            TOTAL LIABILITIES                                                                                                  |   |   | 132,987 |   |   |   | 132,987 |   |
|                                                                                                                                                                            |   |   |   |   |   |   |   |   |
| STOCKHOLDERS’ EQUITY                                                                                                                                                      |   |   |   |   |   |   |   |   |
|               Preferred Stock:                                                                                 |   |   |   |   |   |   |   |   |
|               10,000,000 shares authorized par value $0.001 per share; none issued and outstanding        |   |   | --  |   |   |   | --  |   |
|       Common Stock:                                                                                                                                    |   |   |   |   |   |   |   |   |
|               100,000,000 shares authorized par value $0.001 per share; 25,000,000 issued and outstanding |   |   | 25,000 |   |   |   | 25,000 |   |
|       Additional paid-in-capital                                                                                                                       |   |   | 73,125 |   |   |   | 73,125 |   |
|                Deficit accumulated during the development stage                                           |   |   | (189,248 | )  |   |   | (189,248 | )  |
|        Accumulated other comprehensive income (deficit)                                                                                      |   |   | 40 |   |   |   | 40 |   |
|                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|   TOTAL STOCKHOLDERS’ DEFICIT                                                                                                                                        |   |   | (91,083 | )  |   |   | (91,083 | ) |
|                                                                                                                                                                            |   |   |   |   |   |   |   |   |
|               TOTAL LIABILITIES AND EQUITY                                                                     |   | $ | 41,904 |   |   | $ | 41,904 |   |

----

|   |                                        |  Table of Content |
|--------|---------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY |                   |
|   |  (A Development Stage Company)         |                   |
|   | CONSOLIDATED STATEMENTS OF LOSS             |                   |
|   | (Unaudited)                                 |                   |

|                                                                                              |   |                       |       |   |                |   |       | Cumulative from      |   |
|---------------------------------------------------------------------------------------------------|--------|----------------------------|------------|--------|---------------------|--------|------------|----------------------|--------|
|                                                                                              |   | For the Three Months Ended |       |   | June 24, 2010       |   |
|                                                                                              |   | December 31,               |       |   | (Date of Inception) |   |
|                                                                                              |   | 2012                       |       |   | 2011                |   |       | to December 31, 2012 |   |
| Revenues                                                                                          |   | $                          | -          |   |                | $      | -          |                 |   | $ | 20,000 |   |
| Costs of Goods Sold                                                                               |   |                       | -          |   |                |   | -          |                 |   |   | (16,800 | ) |
|                                                                                              |   |                       |       |   |                |   |       |                 |   |   |   |   |
|     Gross Profit                                                              |   |                       | -          |   |                |   | -          |                 |   |   | 3,200 |   |
|                                                                                              |   |                       |       |   |                |   |       |                 |   |   |   |   |
| Operating Expenses                                                                                |   |                       |       |   |                |   |       |                 |   |   |   |   |
|        General and Administrative                              |   |                       | -          |   |                |   | 8,979      |                 |   |   | 192,448 |   |
|              Total Operating Expenses |   |                       | -          |   |                |   | 8,979      |                 |   |   | 192,448 |   |
|                                                                                              |   |                       |       |   |                |   |       |                 |   |   |   |   |
| Operating Loss                                                                               |   |                       | -          |   |                |   | (8,979     | )                    |   |   | (189,248 | ) |
|                                                                                              |   |                       |       |   |                |   |       |                 |   |   |   |   |
| Other Income (Expense)                                                                            |   |                       | -          |   |                |   | -          |                 |   |   | - |   |
| Interest Expense                                                                                  |   |                       | -          |   |                |   | -          |                 |   |   | - |   |
|                                                                                              |   |                       |       |   |                |   |       |                 |   |   |   |   |
|     Net Loss Before Taxes                                                     |   |                       | -          |   |                |   | (8,979     | )                    |   |   | (189,248 | ) |
|                                                                                              |   |                       |       |   |                |   |       |                 |   |   |   |   |
|     Net Loss                                                                  |   | $                          | -          |   |                | $      | (8,979     | )                    |   | $ | (189,248 | ) |
|                                                                                              |   |                       |       |   |                |   |       |                 |   |   |   |   |
| Loss per Share, Basic & Diluted                                                               |   | $                          | (0.00      | )      |                | $      | (0.00      | )                    |   |   |   |   |
|                                                                                              |   |                       |       |   |                |   |       |                 |   |   |   |   |
| Other comprehensive loss, net of tax                                                              |   |                       |       |   |                |   |       |                 |   |   |   |   |
|       Foreign currency translation adjustments                           |   |                       | -          |   |                |   | -          |                 |   |   | 40 |   |
|                                                                                              |   |                       |       |   |                |   |       |                 |   |   |   |   |
| Comprehensive Income (Loss)                                                                       |   | $                          | -          |   |                | $      | (8,979     | )               |   | $ | (189,208 | )  |
|                                                                                              |   |                       |       |   |                |   |       |                 |   |   |   |   |
| Weighted Average Shares                                                                           |   |                       |       |   |                |   |       |                 |   |
| Outstanding                                                                                       |   |                       | 25,000,000 |   |                |   | 25,000,000 |                 |   |   |   |   |
|                                                                                              |   |                       |       |   |                |   |       |                 |   |   |   |   |
| The accompanying notes are an integral part of these financial statements.                        |   |

----

|   |                                  |  Table of Content |
|--------|---------------------------------------|------------------------|
|   | LIBERATED ENERGY, INC. AND SUBSIDIARY |                   |
|   |  (A Development Stage Company)   |                   |
|   | CONSOLIDATED STATEMENTS OF CASH FLOWS |                   |
|   | (Unaudited)                           |                   |

|                                                                              |   | For the Three Months Ended |   |   | June 24, 2010       |   |
|-----------------------------------------------------------------------------------|--------|----------------------------|--------|--------|---------------------|--------|
|                                                                              |   | December 31,               |   |   | (Date of Inception) |   |
|                                                                              |   | 2012                       |   |   | 2011                |   |   | to December 31, 2012 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                             |   |                       |   |   |                |   |   |
| Net Loss                                                                          |   | $                          | -      |   |                | $      | (2,739 | ) |   | $ | (189,248 | ) |
|                                                                              |   |                       |   |   |                |   |   |   |   |   |   |   |
| Adjustments to reconcile net income to net cash provided by operating activities: |   |                       |   |   |                |   |   |   |   |   |   |   |
|      Non-cash portion of shares based legal fee expense  |   |                       | -      |   |                |   | - |   |   |   | 2,500 |   |
|      Non-cash portion of shares based consulting expense |   |                       | -      |   |                |   | - |   |   |   | 24,750 |   |
|      Prepaid deposit to supplier                         |   |                       | -      |   |                |   | - |   |   |   | (38,000 | )  |
|      Prepaid rent deposit                                |   |                       | -      |   |                |   | 2,509 |   |   |   | -- |   |
|      Account Payable                                     |   |                       | -      |   |                |   | - |   |   |   | 44,250 |   |
|       Loan from Shareholders                        |   |                       | -      |   |                |   | 220 |   |   |   | 88,737 |   |
| Net Cash Provided in Operating Activities                                         |   |                       | -      |   |                |   | - |   |   |   | (67,011 | ) |
|                                                                              |   |                       |   |   |                |   |   |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                             |   |                       |   |   |                |   |   |   |   |
| Net cash provided by Investing Activities                                         |   |                       | -      |   |                |   | - |   |   |   | -- |   |
|                                                                              |   |                       |   |   |                |   |   |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                             |   |                       |   |   |                |   |   |   |   |
|      Proceeds from issuance of common stock              |   |                       | -      |   |                |   | - |   |   |   | 70,875 |   |
| Net Cash Provided by Financing Activities                                         |   |                       | -      |   |                |   | - |   |   |   | 70,875 |   |
|                                                                              |   |                       |   |   |                |   |   |   |   |   |   |   |
| Effect of Exchange Rate on Cash                                                   |   |                       | -      |   |                |   | - |   |   |   | 40 |   |
| Net increase (decrease) in cash and cash equivalents                              |   |                       | 3,904  |   |                |   | 3,956 |   |   |   | 3,904 |   |
| Cash and cash equivalents at Beginning of the Period                              |   |                       | -      |   |                |   | - |   |   |   | - |   |
| Cash and cash equivalents at End of Period                                        |   | $                          | 3,904  |   |                | $      | 3,956 |   |   | $ | 3,904 |   |
|                                                                              |   |                       |   |   |                |   |   |   |   |   |   |   |
|                                                                              |   |                       |   |   |                |   |   |   |   |   |   |   |

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

----

|   |                                        |  Table of Content |
|--------|---------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY |                   |
|   |  (A Development Stage Company)         |                   |
|   | CONSOLIDATED NOTES TO FINANCIAL STATEMENTS  |                   |

----

|   |                                            |  Table of Content |
|--------|-------------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY     |                   |
|   |  (A Development Stage Company)             |                   |
|   | CONSOLIDATED NOTES TO FINANCIAL STATEMENTS |                   |

----

|   |                                            |  Table of Content |
|--------|-------------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY     |                   |
|   |  (A Development Stage Company)             |                   |
|   |  CONSOLIDATEDNOTES TO FINANCIAL STATEMENTS |                   |

----

|   |                                            |  Table of Content |
|--------|-------------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY     |                   |
|   |  (A Development Stage Company)             |                   |
|   |  CONSOLIDATEDNOTES TO FINANCIAL STATEMENTS |                   |

----

|   |                                            |  Table of Content |
|--------|-------------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY     |                   |
|   |  (A Development Stage Company)             |                   |
|   |  CONSOLIDATEDNOTES TO FINANCIAL STATEMENTS |                   |

| Pronouncement       |   | Issued        |   | Title                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------------------|--------|---------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ASC 605             |   | October 2009  |   | Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements – a consensus of the FASB Emerging Issues Task Force                                                                                                                                                                                                                                                                                                                             |
| ASC 860             |   | December 2009 |   | Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets                                                                                                                                                                                                                                                                                                                                                                                 |
| ASC 505             |   | January 2010  |   | Accounting for Distributions to Shareholders with Components of Stock and Cash – a consensus of the FASB Emerging Issues Task Force                                                                                                                                                                                                                                                                                                                         |
| ASC 810             |   | January 2010  |   | Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary – a Scope Clarification                                                                                                                                                                                                                                                                                                                                      |
| ASC 718             |   | January 2010  |   | Compensation – Stock Compensation (Topic 718): Escrowed Share Arrangements and the Presumption of Compensation                                                                                                                                                                                                                                                                                                                                              |
| ASC 820             |   | January 2010  |   | Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements                                                                                                                                                                                                                                                                                                                                                          |
| ASC 810             |   | February 2010 |   | Consolidation (Topic 810): Amendments for Certain Investment Funds                                                                                                                                                                                                                                                                                                                                                                                                |
| ASC 815             |   | March 2010    |   | Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives                                                                                                                                                                                                                                                                                                                                                                       |
| ASC-310 Receivables |   | July 2010     |   | For public entities, the disclosure as of the end of a reporting period are effective for interim and annual reporting periods ending on or after December 15, 2010. The disclosures about activity that occurs during a reporting period are effective for interim and annual reporting periods beginning on or after December 15, 2010. For nonpublic entities, the disclosures are effective for annual reporting period ending on or after December 15, 2011. |

----

|   |                                             |  Table of Content |
|--------|--------------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY      |                   |
|   |  (A Development Stage Company)              |                   |
|   |  CONSOLIDATED NOTES TO FINANCIAL STATEMENTS |                   |

----

|   |                                            |  Table of Content |
|--------|-------------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY     |                   |
|   |  (A Development Stage Company)             |                   |
|   |  CONSOLIDATEDNOTES TO FINANCIAL STATEMENTS |                   |

|                                                                                                      |   | Common Stock      |       |
|-----------------------------------------------------------------------------------------------------------|--------|-------------------|------------|
|                                                                                                      |   | Shares            |       |
|                                                                                                      |   |              |       |
| Issued common stocks to founder at $0.001 per share for organization expenses on 9/14/2010                |   |   14,972,120 |       |
|                                                                                                      |   |              |       |   |
| Issued common stocks to founder at $0.001 per share for consulting expenses paid by cash on 9/14/2010     |   |              | 5,902,880  |   |
|                                                                                                      |   |              |       |   |
| Issued common stocks to Williams @$0.01 per share for services rendered on 9/20/2010                      |   |              | 250,000    |   |
|                                                                                                      |   |              |       |   |
| Issued common stocks to Jian Di  @$0.01 per share  for services rendered on 9/20/2010 |   |              | 2,475,000  |   |
|                                                                                                      |   |              |       |   |
| Issued common stocks to Yuan Su and Guoyong Xu @$0.01 per share for cash on 9/20/2010                     |   |              | 1,000,000  |   |
|                                                                                                      |   |              |       |   |
| Issued common stocks to 40 shareholders @$0.1 per share for cash on 9/30/2010                             |   |              | 400,000    |   |
|                                                                                                      |   |              |       |   |
| Balance, December  31, 2012                                                                     |   |              | 25,000,000 |   |

----

|   |                                            |  Table of Content |
|--------|-------------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY     |                   |
|   |  (A Development Stage Company)             |                   |
|   |  CONSOLIDATEDNOTES TO FINANCIAL STATEMENTS |                   |

|                             |   | Total Shares |          |   | %      |   |
|----------------------------------|--------|--------------|---------------|--------|--------|--------|
|                             |   |         |          |   |   |   |
| Xiaozhong Wu, Chairman & CEO |   |         | 20,875,000.00 |   |   |   | 83.50 | % |
| Jian Di*                         |   |         | 2,475,000.00  |   |   |   | 9.90 | % |
| Yuan Su*                         |   |         | 500,000.00    |   |   |   | 2.00 | % |
|                             |   |         |          |   |   |   |   |   |
| Total                            |   |         | 23,850,000.00 |   |   |   | 95.40 | % |

| Name           | Title                             | Age    | Number of Shares of Common Stock | Percentage |
|----------------|-----------------------------------|--------|----------------------------------|------------|
| Lingling Wang  | CEO and Director                  | 37     | 11,000,000                       | 44.00%     |
| Lin Xiang Wang | General Manager and Director      | 33     | 500,000                          | 2.00%      |
| Guangqing Chen | Vice General Manager and Director | 44     | 500,000                          | 2.00%      |
| Hanjun Shi     | Vice  Manager           | 34     | 30,000                           | 0.12%      |
| Ke Wu          | CFO/Principal Accounting Officer  | 21     | 20,000                           | 0.08%      |
| Shaoyun Zhou   | Manager                           | 30     | 50,000                           | 0.20%      |
| Total          |                              |   | 12,100,000                       | 48.40%     |

----

|   |                                            |  Table of Content |
|--------|-------------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY     |                   |
|   |  (A Development Stage Company)             |                   |
|   |  CONSOLIDATEDNOTES TO FINANCIAL STATEMENTS |                   |

| Mega World Food Limited (HK) Expense Prior 9/14/2010 |   |   |     |
|------------------------------------------------------|--------|--------|----------|
| Bank Service Charges                                 |   |   | 61.75    |   |
| Registration Fee                                     |   |   | 2,947.05 |   |
| Rent Expense                                         |   |   | 1,226.44 |   |
| Travel Expense                                       |   |   | 1,218.69 |   |
| Total Expense Prior 9/14/2010                        |   | $      | 5,453.93 |   |

| HSBC Bank Balance                 |   | $ | 710.15    |   |
|----------------------------------------|--------|---|-----------|--------|
| Prepaid Rent Deposit    |   | $ | 8,808.04  |   |
| Loan from Mr. Xiaozhong Wu             |   | $ | 14,972.12 |   |

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|   |                                            |  Table of Content |
|--------|-------------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY     |                   |
|   |  (A Development Stage Company)             |                   |
|   |  CONSOLIDATEDNOTES TO FINANCIAL STATEMENTS |                   |

|                                     |   | 2010   |   |
|------------------------------------------|--------|--------|--------|
| Computed expected tax benefit            |   |   | (15.00 | ) % |
| State income tax, net of federal benefit |   |   | (7.30  | ) |
| Valuation allowance                      |   |   | 22.30  |   |
|                                     |   |   |   |   |
| Income tax benefit                       |   |   | -      | % |

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|   |                                            |  Table of Content |
|--------|-------------------------------------------------|------------------------|
|   |  LIBERATED ENERGY, INC. AND SUBSIDIARY     |                   |
|   |  (A Development Stage Company)             |                   |
|   |  CONSOLIDATEDNOTES TO FINANCIAL STATEMENTS |                   |

|                                |   | 2011   |   |
|-------------------------------------|--------|--------|--------|
| Valuation allowance                 |   | $      | -      |   |
| Registration Fee for start-up costs |   |   | -      |   |
| Net deferred tax assets             |   | $      | -      |   |

| ·   | 24-1 Forward Split payable upon surrender of old certificates              |
|--------------------|----------------------------------------------------------------------------|
| ·   | Pre-Split Total Shares Outstanding (prior to February 13, 2013): 3,000,000 |

| ·   | Post-Split Total Shares Outstanding (as of February 15, 2013): 72,000,000 |
|--------------------|---------------------------------------------------------------------------|
| ·   | New CUSIP: 53012R105                                                      |

| ·   | New Name: Liberated Energy, Inc. |
|--------------------|----------------------------------|
| ·   | New Symbol: LIBE                 |

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|                    |   |              |   |   |              |   |   | Cumulative from      |   |
|-------------------------|--------|-------------------|--------|--------|-------------------|--------|--------|----------------------|--------|
|                    |   | Three Month Ended |   |   | Three Month Ended |   |   | June 24, 2010        |   |
|                    |   | December 31,      |   |   | December 31, |   |   | (Date of Inception)  |   |
| Expense                 |   | 2012              |   |   | 2011              |   |   | to December 31, 2012 |   |
| Bank Service Charges    |   |              | -      |   |              |   | -      |                 |   |   | 381 |   |
| Postage and Delivery    |   |              | -      |   |              |   | -      |                 |   |   | 19 |   |
| Registration fee        |   |              | -      |   |              |   | 220    |                 |   |   | 7,566 |   |
| Professional Fees       |   |              |   |   |              |   |   |                 |   |   |   |   |
| Auditing/Accounting Fee |   |              | -      |   |              |   | -      |                 |   |   | 42,500 |   |
| Consulting Expense      |   |              | -      |   |              |   |   |                 |   |   | 56,153 |   |
| SEC filling Fee         |   |              | -      |   |              |   | -      |                 |   |   | 7,499 |   |
| Legal fee               |   |              | -      |   |              |   | 6,250  |                 |   |   | 43,250 |   |
| Total Professional Fees |   |              | -      |   |              |   | 6,250  |                 |   |   | 149,402 |   |
| Rent Expense            |   |              | -      |   |              |   | 2,509  |                 |   |   | 20,069 |   |
| Travel Expense          |   |              | -      |   |              |   | -      |                 |   |   | 1,219 |   |
| SEC Edgarzation Fee     |   |              | -      |   |              |   | -      |                 |   |   | - |   |
| Transfer Agent Service  |   |              | -      |   |              |   | -      |                 |   |   | 13,792 |   |
| Total Expense           |   |              | -      |   |              |   | 8,979  |                 |   |   | 192,448 |   |

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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| Item 3.  Quantitative and Qualitative Disclosure about Market Risk |
|------------------------------------------------------------------------------|

| Item 4.  Controls and Procedures. |
|---------------------------------------------|

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ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 4.  CONTROLS AND PROCEDURES

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| ·   | As of December 31, 2012, there was a lack of segregation of duties, in that we had only one person performing all accounting-related duties. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | As of December 31, 2012, there were no independent directors and no independent audit committee. |
|--------------------|--------------------------------------------------------------------------------------------------|

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

ITEM 1A.  RISK FACTORS

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

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ITEM 3. DEFAULT UPON SENIOR SECURITIES

ITEM 4. MINE SAFETY DISCLOSURES

ITEM 5. OTHER INFORMATION

ITEM 6. EXHIBITS

| EXHIBIT INDEX |   |
|---------------|--------|
|          |   |   |   |   |   |   |
|          |   |   |   | Incorporated by |
|          |   |   |   | Reference |
|          |   |   |   |   |   | Filing Date/ |
| Exhibit       |   |   |   |   |   | Period End |
| Number        |   | Exhibit Description |   | Form |   | Date |
|          |   |   |   |   |   |   |
|  21.1    |   | Subsidiaries of the Registrant |   |   |   |   |
|          |   |   |   |   |   |   |
| 31.1          |   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended. |   |   |   |   |
|          |   |   |   |   |   |   |
| 31.2          |   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended. |   |   |   |   |
|          |   |   |   |   |   |   |
| 32.1          |   | Certification of Chief Executive Officer 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 Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted Pursuant to Section 906 of the Sarbanes Oxley Act of 2002. |   |   |   |   |

| Description |   | Form   |   |  Filing Date |
|-------------|--------|--------|--------|-------------------|
|        |   |   |   |              |
|  None  |   |   |   |              |

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SIGNATURES

|                          |                              |
|-------------------------------|-----------------------------------|
|                          | PEGASUS TEL, INC.                 |
|  Date: February 19, 2013 |                              |   |
|                          | By:                               | /s/ FRANK PRINGLE |
|                          |                              | Frank Pringle |
|                          |                              | President, Director, Chief Executive Officer |
|                          |                              | (Principal Executive Officer) |
|                          |                              |   |
| Date: February 13, 2013       | By:                               | /s/ ELYSE THOMPSON |
|                          | Elyse Thompson                    |
|                          | Chief Financial Officer           |
|                          | (Principal Financial Officer      |
|                          | and Principal Accounting Officer) |

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