**UNITED
        STATES**
 **SECURITIES
        AND EXCHANGE COMMISSION**
 **Washington,
        D.C. 20549**
 
 **FORM
        10-QSB**
 (Mark
        One)
 [
                  X
                  ]
              **QUARTERLY
                  REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
                  OF
                  1934**
 
 For
        the
        quarterly period ended June
        30,
        2006
 **OR**
 [    
                  ]
              **TRANSITION
                  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                  ACT OF
                  1934**
 
 For
        the
        transition period from to
 Commission
        file number 000-50739
  
 ENERGENX,
                  INC.(Exact
                  name of small business issuer as
                  specified in its charter)
  NEVADA
                
                20-1044677(State
                    or other jurisdiction of incorporation
                
                (I.R.S.
                    Employeror
                    organization)
                
                Identification
                    No.)
 
 6200
                      E. Commerce Loop, Post Falls, Idaho 83854(Address
                    of principal executive
                    offices)(208)
                    665-5553(Issuer’s
                    telephone
                    number)(Former
                    name, former address and former
                    fiscal year, if changed since last
                    report)
 Check
        mark whether the issuer (1) has 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
T  NO ࿶
  Indicate
        by check mark whether the registrant is a shell company (as defined in Rule
        12b-2 of the Exchange Act).  YES ࿶ NO T
 
 At
        August
        9, 2006, the issuer had outstanding the indicated number of shares of common
        stock: 27,497,276.
 
 Transitional
        Small Business Disclosure Format  YES ࿶NOT








**ENERGENX,
      INC.**





**INDEX**





PART
                I.
            
            FINANCIAL
                INFORMATIONItem
                1.
            
            Financial
                StatementsBalance
                Sheets as of June 30, 2006 (unaudited) and December 31, 2005
                (audited)
            
            
            1Statements
                of Operations (unaudited) for the three months and six months ended
                June
                30, 2006 and 2005
            
            
            2Statements
                of Cash Flows (unaudited) for the six months ended June 30, 2006
                and
                2005
            
            
            3Condensed
                Notes to Financial Statements
            
            
            4Item
                2.
            
            Management’s
                Discussion and Analysis or Plan of Operations
            
            
            9Item
                3.
            
            Controls
                and Procedures
            
            
            12Item
                4.
            
            Submission
                of Matters to a Vote of Security Holders
            
            
            12PART II.
            
            OTHER
                INFORMATION
            
            
            13Item
                6.
            
            Exhibits
            
            
            13














**ENERGENX,
                INC.****(A
                Development Stage Company)****BALANCE
                SHEETS**




June
                302006
            
            December
                31(unaudited)
            
            2005**ASSETS****CURRENT
                ASSETS**Cash
            
            $
            55,189
            
            $
            169,451Inventory
            
            
            11,078
            
            
            3,595Notes
                receivable
            
            
            11,291
            
            
            12,203Prepaid
                expense
            
            
            53,567
            
            
            6,924Total
                Current Assets
            
            
            131,125
            
            
            192,173**PROPERTY
                AND EQUIPMENT, NET**
            
            
            21,606
            
            
            19,673**OTHER
                ASSETS**License,
                net of accumulated amortization
            
            
            65,200
            
            
            68,800Patents,
                net of accumulated amortization
            
            
            39,149
            
            
            42,574Total
                Other Assets
            
            
            104,349
            
            
            111,374**TOTAL
                ASSETS**
            
            $
            257,080
            
            $
            323,220**LIABILITIES
                AND STOCKHOLDERS' EQUITY****CURRENT
                LIABILITIES**Accounts
                payable
            
            $
            5,517
            
            $
            4,124Interest
                payable
            
            
            2,674
            
            
            2,674Interest
                payable - related parties
            
            
            2,607
            
            
            2,607Payroll
                taxes payable
            
            
            8,748
            
            
            9,445Notes
                payable
            
            
            1,660
            
            
            1,660Accrued
                payroll
            
            
            15,700
            
            
            36,350Total
                Current Liabilities
            
            
            36,906
            
            
            56,860**COMMITMENTS
                AND CONTINGENCIES**
            
            
            -
            
            
            -**STOCKHOLDERS'
                EQUITY**Preferred
                stock, $0.001 par value; 5,000,000 shares authorized,no
                shares issued or outstanding
            
            
            -
            
            
            -Common
                stock, $0.001 par value; 55,000,000 shares authorized,27,497,276
                and 27,097,276 shares issued and oustanding,respectively
            
            
            27,497
            
            
            27,097Additional
                paid-in capital
            
            
            2,175,717
            
            
            1,976,117Deficit
                accumulated during development stage
            
            
            (1,983,040
            )
            
            (1,736,854
            )Total
                Stockholders' Equity
            
            
            220,174
            
            
            266,360**TOTAL
                LIABILITIES AND STOCKHOLDERS' EQUITY**
            
            $
            257,080
            
            $
            323,220





See
      accompanying condensed notes to interim financial statements.




1




**ENERGENX,
                INC.****(A
                Development Stage Company)****STATEMENTS
                OF OPERATIONS**




FromSeptember
                29,1999Three
                Months Ended
            
            Six
                Months Ended
            
            (Inception)
                toJune
                30,
            
            June
                30,
            
            June
                30,2006
            
            2005
            
            2006
            
            2005
            
            2006(unaudited)
            
            (unaudited)
            
            (unaudited)
            
            (unaudited)
            
            (unaudited)**REVENUES**
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            -
            
            $
            -**OPERATING
                EXPENSES**Amortization
                and depreciation
            
            
            5,136
            
            
            4,904
            
            
            10,463
            
            
            9,773
            
            
            101,666Board
                of directors fees
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            60,000Consulting
            
            
            2,500
            
            
            -
            
            
            2,500
            
            
            27,500
            
            
            314,029General
                and administrative
            
            
            4,795
            
            
            28,632
            
            
            13,702
            
            
            49,117
            
            
            152,841Legal
                and accounting
            
            
            9,810
            
            
            22,192
            
            
            20,978
            
            
            46,474
            
            
            127,598License
                and fees
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            107,524Marketing
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            19,464Rent
            
            
            7,200
            
            
            -
            
            
            13,800
            
            
            -
            
            
            173,668Research
                and development
            
            
            59,406
            
            
            70,250
            
            
            113,320
            
            
            95,154
            
            
            331,653Salaries
                and benefits
            
            
            48,122
            
            
            32,873
            
            
            71,453
            
            
            72,002
            
            
            560,941Travel
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            1,580**TOTAL
                OPERATING EXPENSES**
            
            
            136,969
            
            
            158,851
            
            
            246,216
            
            
            300,020
            
            
            1,950,964**LOSS
                FROM OPERATIONS**
            
            
            (136,969
            )
            
            (158,851
            )
            
            (246,216
            )
            
            (300,020
            )
            
            (1,950,964
            )**OTHER
                INCOME (EXPENSES)**Interest
                income
            
            
            -
            
            
            67
            
            
            30
            
            
            67
            
            
            191Interest
                expense
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (34,877
            )Loss
                on disposal of asset
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (1,709
            )Gain
                on forgiveness of debt
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            4,319**TOTAL
                OTHER INCOME (EXPENSES)**
            
            
            -
            
            
            67
            
            
            30
            
            
            67
            
            
            (32,076
            )**LOSS
                BEFORE TAXES**
            
            
            (136,969
            )
            
            (158,784
            )
            
            (246,186
            )
            
            (299,953
            )
            
            (1,983,040
            )**INCOME
                TAXES**
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -**NET
                LOSS**
            
            $
            (136,969
            )
            $
            (158,784
            )
            $
            (246,186
            )
            $
            (299,953
            )
            $
            (1,983,040
            )NET
                LOSS PER COMMON SHARE,BASIC
                AND DILUTED
            
            $
            nil
            
            $
            (0.01
            )
            $
            (0.01
            )
            $
            (0.01
            )WEIGHTED
                AVERAGE NUMBER OFCOMMON
                STOCK SHARESOUTSTANDING,
                BASIC AND DILUTED
            
            
            27,497,276
            
            
            26,697,276
            
            
            27,497,276
            
            
            26,697,276




See
      accompanying condensed notes to interim financial statements.




2





**ENERGENX,
                INC.**
              **(A
                Development Stage Company)**
              **STATEMENTS
                OF CASH FLOWS**




Six
                Months Ended
              June
                30,
            
            FromSeptember
                29,1999(Inception)
                toJune
                30,2006
              (unaudited)
            
            2005
              (unaudited)
            
            2006
              (unaudited)**CASH
                FLOWS FROM OPERATING ACTIVITIES:**Net
                loss
            
            $
            (246,186
            )
            $
            (299,953
            )
            $
            (1,983,040
            )Stock
                issued for directors fees
            
            
            -
            
            
            -
            
            
            50,000Stock
                issued for consulting fees
            
            
            -
            
            
            -
            
            
            110,000Stock
                issued for services
            
            
            -
            
            
            -
            
            
            55,366Stock
                issued for licensing fees
            
            
            -
            
            
            -
            
            
            100,000Stock
                issued for payment of interest
            
            
            -
            
            
            -
            
            
            8,300Gain
                on debt forgiveness
            
            
            -
            
            
            -
            
            
            (4,319
            )Loss
                on disposal of asset
            
            
            -
            
            
            -
            
            
            1,806Amortization
                and depreciation
            
            
            10,463
            
            
            9,773
            
            
            101,670Adjustments
                to reconcile net (loss) to net cashprovided
                (used) by operating activities:Decrease
                (increase) in note receivable
            
            
            912
            
            
            (2,524
            )
            
            (11,292
            )Decrease
                (increase) in accounts receivable
            
            
            -
            
            
            -
            
            
            -Decrease
                (increase) in prepaids
            
            
            (46,643
            )
            
            13,357
            
            
            (53,567
            )Decrease
                in deposits
            
            
            -
            
            
            -
            
            
            -Increase
                (decrease) in interest payable
            
            
            -
            
            
            -
            
            
            5,282Increase
                (decrease) in accounts payable
            
            
            1,393
            
            
            (8,170
            )
            
            9,831Increase
                (decrease) in accrued payroll
            
            
            (20,650
            )
            
            -
            
            
            15,700Increase
                (decrease) in payroll taxes payable
            
            
            (698
            )
            
            7,679
            
            
            8,748Increase
                (decrease) in inventory
            
            
            (7,482
            )
            
            (2,633
            )
            
            (11,077
            )Net
                cash used by operating activities
            
            
            (308,891
            )
            
            (282,471
            )
            
            (1,596,592
            )**CASH
                FLOWS FROM INVESTING ACTIVITIES:**Cash
                paid for patent
            
            
            -
            
            
            -
            
            
            (68,501
            )Cash
                paid for equipment purchased
            
            
            (5,371
            )
            
            (1,000
            )
            
            (44,733
            )Cash
                paid for leasehold improvements
            
            
            -
            
            
            -
            
            
            (4,599
            )Net
                cash used by investing activities
            
            
            (5,371
            )
            
            (1,000
            )
            
            (117,833
            )**CASH
                FLOWS FROM FINANCING ACTIVITIES:**Cash
                paid for stock offering costs
            
            
            -
            
            
            -
            
            
            (62,130
            )Merger
                and recapitalization costs
            
            
            -
            
            
            -
            
            
            (4,300
            )Proceeds
                from issuance of convertible debt
            
            
            -
            
            
            -
            
            
            60,010Proceeds
                from notes payable
            
            
            -
            
            
            -
            
            
            199,610Payment
                of notes payable
            
            
            -
            
            
            -
            
            
            (109,882
            )Proceeds
                from sale of common stock and options
            
            
            200,000
            
            
            -
            
            
            1,686,306Net
                cash provided by financing activities
            
            
            200,000
            
            
            -
            
            
            1,769,614Change
                in cash
            
            
            (114,262
            )
            
            (283,471
            )
            
            55,189**Cash,
                beginning of period**
            
            
            169,451
            
            
            413,015
            
            
            -**Cash,
                end of period**
            
            $
            55,189
            
            $
            129,544
            
            $
            55,189**SUPPLEMENTAL
                CASH FLOW INFORMATION:**Interest
                paid
            
            $
            -
            
            $
            -
            
            $
            15,255Income
                taxes paid
            
            $
            -
            
            $
            -
            
            $
            -**NON-CASH
                INVESTING AND FINANCING ACTIVITIES:**Common
                stock issued for equipment
            
            $
            -
            
            $
            -
            
            $
            3,612Common
                stock issued for debt
            
            $
            -
            
            $
            -
            
            $
            198,060Common
                stock issued for technology license
            
            $
            -
            
            $
            -
            
            $
            58,000





See
      accompanying condensed notes to interim financial statements.




3


**ENERGENX,
      INC.**


**(A
      Development Stage Company)**


**CONDENSED
      NOTES TO FINANCIAL STATEMENTS**


**June
      30, 2006**





**NOTE
      1 - BASIS OF PRESENTATION**





The
      foregoing unaudited interim financial statements have been prepared in
      accordance with generally accepted accounting principles for interim financial
      information and with the instructions to Form 10-QSB and Regulation S-B as
      promulgated by the Securities and Exchange Commission (“SEC”).
 Accordingly, these financial statements do not include all of the
      disclosures required by generally accepted accounting principles in the United
      States of America for complete financial statements.  These unaudited
      interim financial statements should be read in conjunction with the Company’s
      audited financial statements for the year ended December 31, 2005.  In the
      opinion of management, the unaudited interim financial statements furnished
      herein include all adjustments, all of which are of a normal recurring nature,
      necessary for a fair statement of the results for the interim period presented.
       Operating results for the six month period ended June 30, 2006 are not
      necessarily indicative of the results that may be expected for the year ending
      December 31, 2006.





The
      preparation of financial statements in accordance with generally accepted
      accounting principles in the United States of America requires the use of
      estimates and assumptions that affect the reported amounts of assets and
      liabilities, disclosure of contingent assets and liabilities known to exist
      as
      of the date the financial statements are published, and the reported amounts
      of
      revenues and expenses during the reporting period.  Uncertainties with
      respect to such estimates and assumptions are inherent in the preparation of
      the
      Company’s financial statements; accordingly, it is possible that the actual
      results could differ from these estimates and assumptions and could have a
      material effect on the reported amounts of the Company’s financial position and
      results of operations.





**NOTE
      2 - SIGNIFICANT ACCOUNTING POLICIES**




This
      summary of significant accounting policies of Energenx, Inc. is presented to
      assist in understanding the Company’s financial statements.  The financial
      statements and notes are representations of the Company’s management, which is
      responsible for their integrity and objectivity.  These accounting policies
      conform to accounting principles generally accepted in the United States of
      America, and have been consistently applied in the preparation of the financial
      statements.





Concentration
      of Credit Risk


The
      Company maintains its cash in one commercial account at a major financial
      institution. At times during the year, this balance can exceed Federal Deposit
      Insurance Corporation (FDIC) limits. Although the financial institution is
      considered credit worthy, at December 31, 2005, the Company’s cash balance
      exceeded FDIC limits by $69,451.







Estimates


The
      preparation of financial statements in conformity with accounting principles
      generally accepted in the United States of America requires management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and disclosure of contingent assets and liabilities at the date
      of
      the financial statements and the reported amounts of revenues and expenses
      during the reporting period.  Actual results could differ from those
      estimates.





4


Going
      Concern


As
      shown
      in the accompanying financial statements, the Company has incurred an
      accumulated deficit of $1,983,040 through June 30, 2006 and has a history of
      recurring losses.  The Company is currently putting technology in place
      which would likely, if successful, mitigate these factors which raise
      substantial doubt about the Company’s ability to continue as a going concern.
 The financial statements do not include any adjustments relating to the
      recoverability and classification of recorded assets, or the amounts and
      classification of liabilities that might be necessary in the event the Company
      cannot continue in existence.  Management has developed technology that if
      proven may result in a marketable product. Management intends to seek additional
      capital from new equity securities offerings that would provide funds needed
      to
      increase liquidity, fund internal growth and fully implement its business
      plan.





Management
      believes $1,000,000 is needed to finance the plan of operation for at least
      the
      next twelve months. The timing and amount of capital requirements will depend
      on
      a number of factors, including demand for products and services and the
      availability of opportunities for international expansion through affiliations
      and other business relationships.





Research
      and Development


Research
      and development expenses are charged to operations as incurred. The cost of
      intellectual property purchased from others that is immediately marketable
      or
      that has an alternative future use is capitalized and amortized as intangible
      assets. Capitalized costs are amortized using the straight-line method over
      the
      estimated economic life, typically 10 years, of the related asset. The Company
      periodically reviews its capitalized patent costs to assess recoverability
      based
      on the projected undiscounted cash flows from operations. Impairments are
      recognized in operating results when a permanent diminution in value occurs.
       Research and development expenses for the six months ended June 30, 2006
      and 2005 were $105,594 and $95,154, respectively. Salaries for those employees
      directly involved in research and development are included in research and
      development expense.





Accounting
      Pronouncements - Recent


In
      March
      2006, the Financial Accounting Standards Board issued Statement of Financial
      Accounting Standards No. 156, “Accounting for Servicing of Financial Assets—an
      amendment of FASB Statement No. 140.” This statement requires an entity to
      recognize a servicing asset or servicing liability each time it undertakes
      an
      obligation to service a financial asset by entering into a servicing contract
      in
      any of the following situations: a transfer of the servicer’s financial assets
      that meets the requirements for sale accounting; a transfer of the servicer’s
      financial assets to a qualifying special-purpose entity in a guaranteed mortgage
      securitization in which the transferor retains all of the resulting securities
      and classifies them as either available-for-sale securities or trading
      securities; or an acquisition or assumption of an obligation to service a
      financial asset that does not relate to financial assets of the servicer or
      its
      consolidated affiliates. The statement also requires all separately recognized
      servicing assets and servicing liabilities to be initially measured at fair
      value, if practicable and permits an entity to choose either the amortization
      or
      fair value method for subsequent measurement of each class of servicing assets
      and liabilities. The statement further permits, at its initial adoption, a
      one-time reclassification of available for sale securities to trading securities
      by entities with recognized servicing rights, without calling into question
      the
      treatment of other available for sale securities under Statement 115, provided
      that the available for sale securities are identified in some manner as
      offsetting the entity’s exposure to changes in fair value of servicing assets or
      servicing liabilities that a servicer elects to subsequently measure at fair
      value and requires separate presentation of servicing assets and servicing
      liabilities subsequently measured at fair value in the statement of financial
      position and additional disclosures for all separately recognized servicing
      assets and servicing liabilities. This statement is effective for fiscal years
      beginning after September 15, 2006, with early adoption permitted as of the
      beginning of an entity’s fiscal year. Management believes the adoption of this
      statement will have no impact on the Company’s financial condition or results of
      operations.




5


In
      February 2006, the Financial Accounting Standards Board issued Statement of
      Financial Accounting Standards No. 155, “Accounting for Certain Hybrid Financial
      Instruments, an Amendment of FASB Standards No. 133 and 140” (hereinafter “SFAS
      No. 155”). This statement established the accounting for certain derivatives
      embedded in other instruments. It simplifies accounting for certain hybrid
      financial instruments by permitting fair value remeasurement for any hybrid
      instrument that contains an embedded derivative that otherwise would require
      bifurcation under SFAS No. 133 as well as eliminating a restriction on the
      passive derivative instruments that a qualifying special-purpose entity (“SPE”)
      may hold under SFAS No. 140. This statement allows a public entity to
      irrevocably elect to initially and subsequently measure a hybrid instrument
      that
      would be required to be separated into a host contract and derivative in its
      entirety at fair value (with changes in fair value recognized in earnings)
      so
      long as that instrument is not designated as a hedging instrument pursuant
      to
      the statement. SFAS No. 140 previously prohibited a qualifying special-purpose
      entity from holding a derivative financial instrument that pertains to a
      beneficial interest other than another derivative financial instrument. This
      statement is effective for fiscal years beginning after September 15, 2006,
      with
      early adoption permitted as of the beginning of an entity’s fiscal year.
      Management believes the adoption of this statement will have no impact on the
      Company’s financial condition or results of operations.








**NOTE
      3 - PREPAID EXPENSES**





Prepaid
      expenses at June 30, 2005 includes the prepayment of a commercial lease, alarm
      system monitoring fees and prepaid legal fees.  See Note 7.





On
      March
      13, 2006, the Company renewed its office space lease for two years and prepaid
      the entire amount of the lease, $57,600.  The Company began expensing this
      amount in April 2006.




During
      the six months ended June 30, 2006, the Company paid $3,000 to its attorney
      as a
      retainer for services to be rendered in the future. At June 30, 2006, none
      of
      this balance has been expensed.








**NOTE
      4 - PROPERTY AND EQUIPMENT**





Property
      and equipment are recorded at cost.  Major additions and improvements are
      capitalized.  Minor replacements, maintenance and repairs that do not
      increase the useful lives of the assets are expensed as incurred.
 Depreciation of property and equipment is calculated using the
      straight-line method over the expected useful lives of the assets of 5 to 7
      years.  Depreciation expense for the six months ended June 30, 2006 and
      2005 was $3,438 and $2,748




6


Following
      is a summary of property, equipment, leasehold improvement, and accumulated
      depreciation:






June
                30,
            
            December
                31,2006
            
            2005Machinery
            
            $
            34,085
            
            $
            29,019Office
                Furniture and Equipment
            
            
            13,896
            
            
            13,591Leasehold
                Improvements
            
            
            3,158
            
            
            3,15851,139
            
            
            45,768Less
                Accumulated Depreciation
            
            
            (29,533
            )
            
            (26,095
            )Net
                Property and Equipment
            
            $
            21,606
            
            $
            19,673








**NOTE
      5 - PATENTS**




Costs
      relating to the development and approval of patents, other than research and
      development costs which are expensed, are capitalized and amortized using the
      straight-line method over ten years.  The Company’s patents relate to the
      creation of an EMF permanent electromagnetic motor generator.







The
      following is a summary of the costs of patents and patents pending:




Cost
            
            Accumulated
                Amortization
            
            Net
                AmountBalance,
                December 31, 2004
            
            $
            68,500
            
            $
            19,076
            
            $
            49,4242005
                Activity
            
            
            
            
            
            6,850
            
            
            -Balance,
                December 31, 2005
            
            
            68,500
            
            
            25,926
            
            
            42,5742006
                Activity
            
            
            
            
            
            3,426Balance
                June 30, 2006
            
            $
            68,500
            
            $
            29,351
            
            $
            39,149





**NOTE
      6 - RELATED PARTY TRANSACTIONS**





During
      the years ended December 31, 2002, the Company loaned to two of its officers
      a
      total of $4,900.  At the time the Company was not paying the salaries.
 Because the transactions occurred while the Company was still private, it
      was not subject to the Sarbanes-Oxley Act of 2002, and therefore, was not
      prohibited.  During the quarter ended September 30, 2005, the officers
      repaid these loans.





7


During
      the period ended June 30, 2006 and years ended December 31, 2005 and 2004,
      the
      Company paid expenses on behalf of Bedini Electronics, Inc., a company privately
      owned by two officers of Energenx. At the same time, Bedini Electronics, Inc.
      paid some of the expenses of the Company. This was done as the two companies
      shared joint office space and split certain expenses. The net amount owing
      from
      Bedini Electronics at December 31, 2005 was $10,176. In April 2005, the Company
      loaned Bedini Electronics $4,000 in cash for operations. This related loan,
      which bears interest of 6%, is payable in monthly installments of $352. At
      June
      30, 2006, the unpaid loan balance from Bedini Electronics included in notes
      receivable **-** related
      parties is $11,291.





**NOTE
      7 - COMMITMENTS AND CONTINGENCIES**





Leases





On
      March
      13, 2006, the Company entered into a new two-year lease for its office space.
       In lieu of a security deposit, the Company prepaid the entire amount of
      the lease, $57,600. The Company is expensing this amount over 24 months at
      a
      rate of $2,400 per month.  The Company began expensing this amount in April
      2--6.







**NOTE 8
      - COMMON STOCK**




During
      the six months ended June 30, 2006, the Company issued 400,000 of common stock
      at $0.50 per share for cash of $200,000 to a non-employee director.  These
      shares were issued under an existing subscription agreement for a total of
      $1,500,000 for 3,000,000 shares.  As of June 30, 2006, the agreement had
      $1,100,000 remaining for a future commitment of 2,200,000 shares of common
      stock.




8


**Item
      2.**   **Management’s
      Discussion and Analysis or Plan of Operations**





THIS
      QUARTERLY REPORT ON FORM 10-QSB CONTAINS “FORWARD-LOOKING STATEMENTS” WITHIN THE
      MEANING OF SECTION 27A OF THE SECURITIES ACT OF 1933, AS AMENDED, AND SECTION
      21E OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED. ALL STATEMENTS, OTHER
      THAN STATEMENTS OF HISTORICAL FACTS, INCLUDED IN OR INCORPORATED BY REFERENCE
      INTO THIS FORM 10-Q ARE FORWARD-LOOKING STATEMENTS. IN ADDITION, WHEN USED
      IN
      THIS DOCUMENT, THE WORDS “ANTICIPATE,” “ESTIMATE,” “PROJECT,” AND SIMILAR
      EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. THESE
      FORWARD-LOOKING STATEMENTS ARE SUBJECT TO CERTAIN RISKS, UNCERTAINTIES AND
      ASSUMPTIONS INCLUDING AMONG OTHERS, THE RISK THAT OUR PRODUCT DEVELOPMENT
      PROGRAMS WILL NOT PROVE SUCCESSFUL, THAT WE WILL NOT BE ABLE TO OBTAIN FINANCING
      TO COMPLETE ANY FUTURE PRODUCT DEVELOPMENT, THAT OUR PRODUCTS WILL NOT PROVE
      COMPETITVE IN THE MARKETS. THESE RISKS AND OTHERS ARE MORE FULLY DESCRIBED
      IN
      OUR REPORT ON THIS FORM 10-QSB AND IN OUR OTHER PUBLIC FILINGS, INCLUDING OUR
      FORM 10-KSB. SHOULD ONE OR MORE OF THESE RISKS OR UNCERTAINTIES MATERIALIZE,
      OR
      SHOULD UNDERLYING ASSUMPTIONS PROVE INCORRECT, ACTUAL RESULTS MAY VARY
      MATERIALLY FROM THOSE ANTICIPATED, ESTIMATED OR PROJECTED. ALTHOUGH WE BELIEVE
      THAT THE EXPECTATIONS INCLUDED IN SUCH FORWARD-LOOKING STATEMENTS ARE
      REASONABLE, WE CANNOT GIVE ANY ASSURANCES THAT THESE EXPECTATIONS WILL PROVE
      TO
      BE CORRECT. WE UNDERTAKE NO OBLIGATION TO PUBLICLY RELEASE THE RESULT OF ANY
      REVISIONS TO SUCH FORWARD-LOOKING STATEMENTS THAT MAY BE MADE TO REFLECT EVENTS
      OR CIRCUMSTANCES AFTER THE DATE HEREOF OR TO REFLECT THE OCCURRENCE OF
      UNANTICIPATED EVENTS.





The
      following discussion and analysis should be read in conjunction with our
      financial statements and the notes thereto appearing in Part I, Item
      1.




**A.**  **General.**




Since
      commencement of operations in 1999, our efforts have been principally devoted
      to
      research and development activities, including the development of an efficient
      energy generation system and battery chargers, recruiting management personnel
      and advisors, and raising capital.




Our
      current business strategy is to concentrate our financial resources primarily
      on
      the further development of our Potential Battery Charger technology. In addition
      to the battery charger program, we plan to continue to undertake research and
      development on our electromagnetic motor/generator battery system.







9




**B.**  **Product
      Research and Development Plans**




Our
      current plan of operation for the next 12 months primarily involves meeting
      any
      demand for Potential Battery Charger hybrid modules from GTG Corp., with whom
      we
      have an Exclusive Technology License Agreement, and, assuming availability
      of
      sufficient capital resources, research and development activities on energy
      generation and battery charger prototypes.




Concerning
      the battery chargers, product research will continue on improving the efficiency
      of the Potential Battery Charger. We will continue our development of variations
      of the Potential Battery Charger for specific markets to accommodate 12-volt,
      24-volt, 36-volt and 48-volt applications with a wide range of capacity
      requirements. In January 2006 we delivered a 36 volt variation of our Potential
      Battery Charger to GTG Corp. for UL assessment and testing. The UL assessment
      and testing is currently ongoing. Once testing of the 36 volt Potential Battery
      Charger is complete we expect to deliver a 48 volt variation of the Potential
      Battery Charger for UL assessment and testing.





We
      may
      generate revenues pursuant to our Exclusive Technology License Agreement with
      GTG Corp. if they order Potential Battery Charger hybrid modules. We did not
      receive any orders from GTG Corp. during the second quarter of 2006. We cannot
      assure you that GTG Corp. will order any Potential hybrid modules from us in
      2006 or ever, that licensed battery charger products will ever reach the market
      giving rise to royalty payments or that additional revenues from patent
      licensing will be generated.




Concerning
      the further development of our electromagnetic motor/generator battery system,
      given sufficient capital resources, we intend to improve the current system
      and
      design larger scale systems that may allow us to generate larger amounts of
      energy that can be utilized to charge multiple banks of batteries. No such
      research and development on the electromagnetic motor/generator battery system
      was undertaken during the second quarter of 2006.





While
      we
      have no plans to relocate our current research facility within the next twelve
      months, equipment purchases will be necessary if we receive orders for the
      Potential hybrid module from GTG Corp. Such equipment would include test
      equipment, oscilloscopes, analyzers, soldiering stations, and packaging
      equipment **.** Depending
      on the availability of capital and the volume of future orders from GTG Corp.,
      such equipment purchases are anticipated to be in the range of $100,000 for
      the
      next twelve months. Also depending on the availability of capital and the volume
      of orders from GTG Corp., we may hire up to three more employees if we receive
      orders from GTG Corp. We did not make any significant equipment purchases or
      hire any new employees in the three month period ending June 30, 2006. We intend
      to contract out the bulk of the manufacturing of the Potential hybrid modules,
      with final testing, potting and packaging of the hybrid modules to be done
      in
      house.





Our
      actual research and development and related activities may vary significantly
      from current plans depending on numerous factors, including changes in the
      costs
      of such activities from current estimates, the results of our research and
      development programs, technological advances, determinations as to commercial
      viability and the status of competitive products. The focus and direction of
      our
      operations will also be dependent on the establishment of our collaborative
      arrangement with other companies, the availability of financing and other
      factors. We expect our development costs to increase as **** our
      battery charger systems development programs enter the later stages of
      development.




10


**C.**  **Liquidity
      and Capital Resources.**




As
      of
      June 30, 2006, we had $55,189 in cash and cash equivalents and $94,219 in
      working capital as compared to $169,451 **** in
      cash
      and cash equivalents and $1,864,313 in working capital at December 31, 2005.
      We
      do not have any available lines of credit. Since inception we have financed
      our
      operations from private placements of equity securities and loans from
      shareholders.




Net
      cash
      used in operating activities during the six months ended June 30, 2006 was
      $308,891 resulting in a net loss of $246,186.




Marvin
      Redenius, a director of Energenx, signed a subscription agreement on September
      30, 2005 pursuant to which he agreed to purchase 3,000,000 shares of common
      stock from Energenx for $1,500,000. To date we have received $400,000 pursuant
      to this subscription and have issued 800,000 shares of common stock to this
      investor, including $200,000 received in the first quarter of 2006. There is
      currently an outstanding $1,100,000 subscription receivable. Given the
      substantial delays we have experienced in receiving the subscription funds
      from
      this investor do not know when we will receive this subscription receivable,
      if
      ever.




Our
      current real estate lease is on a two year renewal basis. We plan to finance
      our
      needs principally from the following:





·
            our
                existing capital resources and interest earned on that
                capital;





·
            revenues
                from purchase of Potential modules by GTG Corp., if
                any;





·
            royalty
                income, if any, from product sales by GTG
                Corp.;





·
            from
                collection of our outstanding subscription receivable;
                and





·
            through
                future private placement financing.





As
      mentioned above, we may generate revenue from GTG Corp. if they order Potential
      hybrid modules under our license agreement. We cannot at this time assure you
      that those orders will occur or that revenues will be generated in fiscal year
      2006, if at all.





Given
      that we have begun accruing wages for our President and Chief Executive Officer
      and our Vice President in June 2006, we believe that we have sufficient capital
      resources to finance our curtailed plan of operation at least through the third
      quarter of 2006. It is our intention to continue to accrue wages for our
      President and Chief Executive Officer and our Vice President until we generate
      sufficient revenues or raise sufficient equity capital to finance our plan
      of
      operations. However, this is a forward-looking statement, and there may be
      changes that could consume available resources before the end of the third
      quarter. Our long term capital requirements and the adequacy of our available
      funds will depend on many factors, including our reporting company costs, patent
      costs for filing, prosecuting, maintaining and defending our patent rights,
      among others.




11


We
      are
      pursuing potential equity financing that may generate additional capital for
      us,
      including the subscription receivable from an investor signed on September
      30,
      2005. We will need to raise additional capital or generate additional revenue
      to
      complete our development of product variations on our Potential Battery Charger
      and our hybrid electromagnetic motor/generator product candidate. We cannot
      assure you that we will generate sufficient additional capital or revenues,
      if
      any, to fund our operations beyond the third quarter of 2006, that any future
      equity financings will be successful, or that other potential financings through
      bank borrowings, debt or equity offerings, or otherwise, will be available
      on
      acceptable terms or at all. If we are unable to raise additional capital in
      the
      third quarter of 2006 we will have to further curtail operations or cease
      operations altogether.




**Critical
      Accounting Policies and Estimates.**





This
      discussion and analysis of our financial condition and results of operations
      are
      based on our financial statements that have been prepared under accounting
      principles generally accepted in the United States of America. The preparation
      of financial statements in conformity with accounting principles generally
      accepted in the United States of America requires our management to make
      estimates and assumptions that affect the reported amounts of assets and
      liabilities and the disclosure of contingent assets and liabilities at the
      date
      of the financial statements and the reported amounts of revenue and expenses
      during the reporting period. Actual results could materially differ from those
      estimates. We have disclosed all significant accounting policies in note 2
      to
      the financial statements included in our Form 10-KSB. Our critical accounting
      policies are:





**Research
      and development costs:** Research
      and development costs are expensed as incurred. Beginning with the financial
      statements for the quarter ending June 30, 2005 we have included certain salary
      and benefit expenses in the research and development line item.





**Item
      3.**   **Controls
      and Procedures.**




**Evaluation
      of disclosure controls and procedures.**





Our
      management, including our Chief Executive Officer and our Chief Financial
      Officer, has evaluated the effectiveness of our “disclosure controls and
      procedures” (as such term is defined in Rules 13a-15(e) and 15d-15(e) of the
      United States Securities Exchange Act of 1934, as amended (the “Exchange Act”))
      as of the end of the period covered by this Quarterly Report on Form 10-QSB.
      Based on that evaluation, our CEO and CFO have concluded that these disclosure
      controls and procedures were sufficiently effective to ensure that information
      required to be disclosed by us in reports that we file or submit under the
      Exchange Act is recorded, processed, summarized and reported within the time
      periods specified in United States Securities and Exchange Commission rules
      and
      forms.





Our
      management, including our Chief Executive Officer and Chief Financial Officer,
      does not expect that our disclosure controls and procedures or internal control
      over financial reporting will prevent all errors and all fraud. A control
      system, no matter how well conceived and operated, can provide only reasonable,
      not absolute, assurance that the objectives of the system are met and cannot
      detect all deviations. Because of the inherent limitations in all control
      systems, no evaluation of controls can provide absolute assurance that all
      control issues and instances of fraud or deviations, if any, within the company,
      have been detected. While we believe that our disclosure controls and procedures
      have been effective, in light of the foregoing, we intend to continue to examine
      and refine our disclosure control and procedures to monitor ongoing developments
      in this area.





12


**Item
      4.**   **Submission
      of Matters to a Vote of Security Holders.**





We
      held
      our 2006 Annual Meeting of Stockholders on July 14, 2006. At the meeting, the
      six incumbent directors of Energenx were re-elected. Gary A. Bedini, John C.
      Bedini, Thomas E. Bearden, Ph.D. Hans Werner Huss, Marvin Redenius, and Rick
      M.
      Street each received 18,633,949 votes for, 0 votes against, and 0 abstentions.
      The appointment of Williams & Webster, P.S., independent auditors, as
      Energenx’s auditors was ratified. The ratification of the auditors was approved
      by a vote of 18,633,949 votes for, 0 votes against, and 0
      abstentions.







**PART
      II - OTHER INFORMATION**




**Item
      6.**   **Exhibits**





(a)  Exhibits




31.1  Certification
      of Principal Executive Officer pursuant to rule 13a-14(a)/15d-14(a), as adopted
      pursuant to Section 302 of the Sarbannes-Oxley Act of 2002.




31.2  Certification
      of Principal Financial Officer pursuant to rule 13a-14(a)/15d-14(a), as adopted
      pursuant to Section 302 of the Sarbannes-Oxley Act of 2002.




32.1  Certification
      of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as
      adopted pursuant to Section 906 of the Sarbannes-Oxley Act of 2002.




32.2  Certification
      of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as
      adopted pursuant to Section 906 of the Sarbannes-Oxley Act of 2002.




**SIGNATURE**





Pursuant
      to the requirements of the Securities Exchange Act of 1934, Energenx has duly
      caused this report to be signed on its behalf by the undersigned thereunto
      duly
      authorized.




Dated
      August 9, 2006.


ENERGENX,
      INC.






By: /s/
      Gary A. Bedini


Gary
      A.
      Bedini


President
      and Chief Executive Officer




By: /s/
      Rick M. Street


Rick
      M.
      Street


Chief
      Financial Officer, Secretary, and Treasurer (Principal Financial and Accounting
      Officer)




13