**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  September
      30, 2006




**OR**




o
            **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 x  NO
o





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).  YES
o  NO 
      x





At
      November 10, 2006, the issuer had outstanding the indicated number of shares
      of
      common stock: 27,497,276.





Transitional
      Small Business Disclosure Format  YES ࿶  NO
x





**ENERGENX,
      INC.**





**INDEX**





PART
                I.
            
            FINANCIAL
                INFORMATIONItem
                1.
            
            Financial
                StatementsBalance
                Sheets as of September 30, 2006 (unaudited)and
                December 31, 2005 (audited)
            3Statements
                of Operations (unaudited) for the three months andnine
                months ended September 30, 2006 and 2005
            4Statements
                of Cash Flows (unaudited) for the ninemonths
                ended September 30, 2006 and 2005
            5Condensed
                Notes to Financial Statements
            6Item
                2.
            
            Management’s
                Discussion and Analysis or Plan of Operations
            11Item
                3.
            
            Controls
                and Procedures
            15PART
                II.
            
            OTHER
                INFORMATION
            15Item
                6.
            
            Exhibits
            15




2




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




September
                30
            
            December
                312006
            
            2005(unaudited)**ASSETS****CURRENT
                ASSETS**Cash
            
            $
            13,263
            
            $
            169,451Inventory
            
            
            11,078
            
            
            3,595Notes
                receivable
            
            
            11,983
            
            
            12,203Prepaid
                expense
            
            
            46,288
            
            
            6,924Total
                Current Assets
            
            
            82,612
            
            
            192,173**PROPERTY
                AND EQUIPMENT, NET**
            
            
            20,103
            
            
            19,673**OTHER
                ASSETS**License,
                net of accumulated amortization
            
            
            63,400
            
            
            68,800Patents,
                net of accumulated amortization
            
            
            38,887
            
            
            42,574Total
                Other Assets
            
            
            102,287
            
            
            111,374**TOTAL
                ASSETS**
            
            $
            205,002
            
            $
            323,220**LIABILITIES
                AND STOCKHOLDERS' EQUITY****CURRENT
                LIABILITIES**Accounts
                payable
            
            $
            5,025
            
            $
            4,124Deposit
                on License
            
            
            5,000Interest
                payable
            
            
            2,674
            
            
            2,674Interest
                payable - related parties
            
            
            2,607
            
            
            2,607Payroll
                taxes payable
            
            
            35,781
            
            
            9,445Notes
                payable
            
            
            1,660
            
            
            1,660Accrued
                payroll
            
            
            60,700
            
            
            36,350Total
                Current Liabilities
            
            
            113,447
            
            
            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
            
            
            (2,111,659
            )
            
            (1,736,854
            )Total
                Stockholders' Equity
            
            
            91,555
            
            
            266,360**TOTAL
                LIABILITIES AND STOCKHOLDERS' EQUITY**
            
            $
            205,002
            
            $
            323,220





See
      accompanying condensed notes to interim financial statements.




3




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




FromSeptember
                29,1999Three
                Months Ended
            
            Nine
                Months Ended
            
            (Inception)
                toSeptember
                30,
            
            September
                30,
            
            September
                30,2006
            
            2005
            
            2006
            
            2005
            
            2006(unaudited)
            
            (unaudited)
            
            (unaudited)
            
            (unaudited)
            
            (unaudited)**REVENUES**
            
            $
            -
            
            $
            -
            
            
            
            
            $
            $
            
            $
            -**OPERATING
                EXPENSES**Amortization
                and depreciation
            
            
            5,016
            
            
            4,877
            
            
            15,479
            
            
            14,652
            
            
            106,682Board
                of directors fees
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            60,000Consulting
            
            
            2,000
            
            
            -
            
            
            4,500
            
            
            27,500
            
            
            316,029General
                and administrative
            
            
            19,052
            
            
            8,381
            
            
            49,946
            
            
            44,732
            
            
            189,085Legal
                and accounting
            
            
            13,691
            
            
            11,975
            
            
            34,669
            
            
            58,449
            
            
            141,289License
                and fees
            
            
            1,372
            
            
            2,246
            
            
            -
            
            
            -
            
            
            109,770Marketing
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            19,464Rent
            
            
            7,200
            
            
            6,600
            
            
            21,000
            
            
            19,800
            
            
            180,868Research
                and development
            
            
            44,914
            
            
            55,608
            
            
            151,519
            
            
            150,761
            
            
            369,852Salaries
                and benefits
            
            
            35,372
            
            
            34,522
            
            
            95,556
            
            
            106,524
            
            
            585,044Travel
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            1,580**TOTAL
                OPERATING EXPENSES**
            
            
            128,617
            
            
            121,963
            
            
            374,915
            
            
            422,418
            
            
            2,079,663**LOSS
                FROM OPERATIONS**
            
            
            (128,617
            )
            
            (121,963
            )
            
            (374,915
            )
            
            (422,418
            )
            
            (2,079,663
            )**OTHER
                INCOME (EXPENSES)**Interest
                income
            
            
            -
            
            
            40
            
            
            
            
            
            107
            
            
            161Interest
                expense
            
            
            -
            
            
            -
            
            
            110
            
            
            -
            
            
            (34,877
            )Loss
                on disposal of asset
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            (1,709
            )Gain
                on forgiveness of debt
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            4,319**TOTAL
                OTHER INCOME (EXPENSES)**
            
            
            -
            
            
            40
            
            
            110
            
            
            107
            
            
            (32,106
            )**LOSS
                BEFORE TAXES**
            
            
            (128,617
            )
            
            (121,923
            )
            
            (374,805
            )
            
            (422,311
            )
            
            (2,111,769
            )**INCOME
                TAXES**
            
            
            -
            
            
            -
            
            
            -
            
            
            -
            
            
            -**NET
                LOSS**
            
            $
            (128,617
            )
            $
            (121,923
            )
            $
            (374,805
            )
            $
            (422,311
            )
            $
            (2,111,769
            )NET
                LOSS PER COMMON SHARE,BASIC
                AND DILUTED
            
            $
            nil
            
            $
            nil
            
            $
            nil
            
            $
            nilWEIGHTED
                AVERAGE NUMBER OFCOMMON
                STOCK SHARESOUTSTANDING,
                BASIC AND DILUTED
            
            
            27,497,276
            
            
            26,730,243
            
            
            27,497,276
            
            
            26,708,305




See
      accompanying condensed notes to interim financial statements.


4





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




Nine
                  Months EndedSeptember
                  30,
              
              From
                  September 29,1999 (Inception) to September 30,2006
              
              2005
              
              2006(unaudited)
              
              (unaudited)
              
              (unaudited)**CASH
                  FLOWS FROM OPERATING ACTIVITIES:**Net
                  loss
              
              $
              (374,805
              )
              $
              (422,311
              )
              $
              (2,111,658
              )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
              
              
              15,479
              
              
              14,652
              
              
              106,686Adjustments
                  to reconcile net (loss) to net cash
              
              
              
              
              
              
              
              
              -provided
                  (used) by operating activities:
              
              
              
              
              
              
              
              
              -Decrease
                  (increase) in note receivable
              
              
              220
              
              
              3,391
              
              
              (11,984
              )Decrease
                  (increase) in accounts receivable
              
              
              -
              
              
              -
              
              
              -Decrease
                  (increase) in prepaids
              
              
              (39,364
              )
              
              20,035
              
              
              (46,288
              )Decrease
                  in deposits
              
              
              -
              
              
              -
              
              
              -Increase
                  (decrease) in interest payable
              
              
              -
              
              
              -
              
              
              5,282Increase
                  (decrease) in accounts payable
              
              
              901
              
              
              (5,107
              )
              
              9,339Increase
                  (decrease) in deposit on license
              
              
              5,000
              
              
              -
              
              
              5,000Increase
                  (decrease) in accrued payroll
              
              
              24,350
              
              
              14,876
              
              
              60,700Increase
                  (decrease) in payroll taxes payable
              
              
              26,335
              
              
              3,152
              
              
              35,780Increase
                  (decrease) in inventory
              
              
              (7,483
              )
              
              (3,503
              )
              
              (11,078
              )Net
                  cash used by operating activities
              
              
              (349,367
              )
              
              (374,815
              )
              
              (1,637,068
              )**CASH
                  FLOWS FROM INVESTING ACTIVITIES:**Cash
                  paid for patent
              
              
              (1,450
              )
              
              -
              
              
              (68,501
              )Cash
                  paid for equipment purchased
              
              
              (5,371
              )
              
              (1,267
              )
              
              (44,733
              )Cash
                  paid for leasehold improvements
              
              
              -
              
              
              -
              
              
              (4,599
              )Net
                  cash used by investing activities
              
              
              (6,821
              )
              
              (1,267
              )
              
              (119,833
              )**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
              
              
              (156,188
              )
              
              (376,082
              )
              
              13,263**Cash,
                  beginning of period**
              
              
              169,451
              
              
              413,015
              
              
              -**Cash,
                  end of period**
              
              $
              13,263
              
              $
              36,933
              
              $
              13,263**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.


5


**ENERGENX,
      INC.**


**(A
      Development Stage Company)**


**CONDENSED
      NOTES TO FINANCIAL STATEMENTS**


**September
      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 nine month period ended September 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.




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.


6


ENERGENX,
      INC.


(A
      Development Stage Company)


CONDENSED
      NOTES TO FINANCIAL STATEMENTS




Going
      Concern




As
      shown
      in the accompanying financial statements, the Company has incurred an
      accumulated deficit of $2,111,659 through September 30, 2006 and has a history
      of recurring losses.  The Company is currently putting technology in place
      which will, 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 will result
      in a marketable product. Management intends to seek additional capital from
      new
      equity securities offerings that will 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 nine months ended September 30,
      2006 and 2005 were $151,519 and $150,769, respectively. Salaries for those
      employees directly involved in research and development are included in research
      and development expense.





Accounting
      Pronouncements




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.


7


ENERGENX,
      INC.


(A
      Development Stage Company)


CONDENSED
      NOTES TO FINANCIAL STATEMENTS




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 September 30, 2006 includes the prepayment of a commercial lease
      and
      an alarm system monitoring fees.  See Note 7.





During
      the year ended December 31, 2004, the Company purchased a security system.
      The
      cost of the system included a prepayment of the related monitoring services,
      totaling $638.   At September 30, 2006, $88 was remaining in the
      contract.




During
      the nine months ended September 30, 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.


8


ENERGENX,
      INC.


(A
      Development Stage Company)


CONDENSED
      NOTES TO FINANCIAL STATEMENTS




**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 nine months ended September 30, 2006 and
      2005 was $15,479 and $14,652




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





September
                30,
            
            September
                30,2006
            
            2005Machinery
            
            $
            34,085
            
            $
            18,811Office
                Furniture and Equipment
            
            
            13,896
            
            
            12,919Leasehold
                Improvements
            
            
            3,158
            
            
            3,15851,139
            
            
            34,888Less
                Accumulated Depreciation
            
            
            (31,036
            )
            
            (24,721
            )Net
                Property and Equipment
            
            $
            20,103
            
            $
            10,167





**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
            
            
            1,450
            
            
            5,138Balance
                September 30, 2006
            
            $
            69,951
            
            $
            31,064
            
            $
            38,887




9


ENERGENX,
      INC.


(A
      Development Stage Company)


CONDENSED
      NOTES TO FINANCIAL STATEMENTS




**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.





During
      the period ended September 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 is $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 September 30, 2006, the unpaid loan balance from Bedini Electronics
      included in notes receivable **-** related
      parties is $11,983.





**NOTE
      7 – COMMITMENTS AND CONTINGENCIES**





Leases





On
      March
      31, 2004, the Company entered into a new two-year lease for office space.
 In lieu of a security deposit, the Company in 2004 prepaid the entire
      amount of the lease, $52,800. The Company expensed this amount over 24 months,
      at a rate of $2,200 per month.





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




**NOTE 8
      – COMMON STOCK**




During
      the three months ended March 31, 2006, the Company issued 400,000 of Common
      Stock at $0.50 per share for cash of $200,000.  These shares were issued
      under an existing subscription agreement as part of a Stock Subscription plan
      and committment for a total of $1,500,000 for 3,000,000 shares.  As of
      September 30, 2006, this Commitment had $1,100,000 remaining for a future
      commitment of 2,200,000 shares of common stock.




Subsequent
        to September 30, 2006 the Company received
        additional monies under the agreement. See Note 9.




**NOTE
        9 – SUBSEQUENT
        EVENTS**




On
        November 10, 2006, the Company received $600,000
        under the agreement in Note 8 and issued 1,200,000 shares. As of November
        10,
        2006, the commitment had $500,000 remaining for a future commitment of 1,000,000
        shares.




10




**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 and our
      Battery Charge Control Unit for application with solar and wind systems. In
      addition to the battery charger programs, we plan to continue to undertake
      research and development on our electromagnetic motor/generator battery
      system.




11




**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 Underwriters Laboratories or UL assessment
      and
      testing. On October 25, 2006, GTG Corp. received notice that the engineering
      investigation of the 36 volt Potential Battery Charger had been completed by
      UL.
      However, before the Potential Battery Charger receives full UL certification
      and
      it can be shipped with the UL mark affixed, UL must do an initial production
      inspection at GTG Corp.’s designated manufacturing location.





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 third 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 third quarter of 2006.





Utilizing
      the same basic battery charging technology as that used with the Potential
      Battery Charger, in August 2006 Energenx built and began field testing a
      prototype of a Battery Charge Control Unit for use with residential solar and
      wind powered electric systems. The Charge Control System is a 12 and 24 volt
      variation of the Potential Battery Charger that uses digital circuitry to
      monitor and switch between two banks of batteries. In addition to exhibiting
      many of the advantages associated with the Potential Battery Charger, the system
      appears to be able to deliver more of the available energy from the source
      (the
      solar panels or wind turbine generator) to the batteries. This results in an
      increase of performance in such systems when solar or wind conditions are less
      then optimal.





Energenx
      plans to build further prototypes of the Battery Charge Control Unit and test
      them for application with solar and wind systems. Since the same principles
      are
      applicable for larger systems, the product spectrum could subsequently be
      extended into those areas. Energenx expects to develop an array of products,
      covering this market from small units to very large units of industrial scale.
      The intent is to provide the market with systems with higher efficiency than
      existing on the market today, resulting in a higher energy output from the
      same
      primary energy source.


12




Upon
      the
      successful conclusion of field testing of the Charge Control System, Energenx
      intends to seek to license out this technology for the manufacturing and sales
      of the Charge Control units in the United States, Canada, and Mexico. Energenx
      plans to work with such licensee to finalize the development of a Charge Control
      System, as well as assisting such licensee in industrializing the product line,
      and obtaining UL certification for the system.





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 September 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.




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




As
      of
      September 30, 2006, we had $13,263 in cash and cash equivalents and negative
      working capital of **$** 30,835
      as
      compared to $169,451 **** in
      cash
      and cash equivalents and $135,313 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 nine months ended September 30, 2006
      was
      $349,368 resulting in a net loss of $374,815.


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. Until recently, we had received only
          $400,000 pursuant to this subscription and had issued 800,000 shares of
          common
          stock to this investor, including $200,000 received in the first quarter
          of
          2006. On November 10, 2006, we received another payment of $600,000 from
          Marvin
          Redenius pursuant to his subscription. As a result of this investment,
          Mr.
          Redenius will be issued an additional 1,200,000 shares of common stock
          and will
          hold 6,800,000 shares of our common stock. There is currently an outstanding
          $500,000 subscription receivable. Upon completion of the purchase of the
          remainder of the 500,000 shares pursuant to the subscription agreement,
          Marvin
          Redenius will hold 7,800,000 shares of common stock.  Given
          the
          substantial delays we have experienced in receiving the subscription funds
          from
          this investor do not know when we will receive the remaining subscription
          receivable, if ever.


13




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;





·
            up
                front licensing fees pursuant to future license
                agreements;





·
            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.





With
        the
        receipt of additional funds from Marvin Redenius, we believe that we have
        sufficient capital resources to finance our plan of operation at least
        through the third quarter of 2007. However, this is a forward-looking
        statement, and there may be changes that could consume available resources
        before the end of the third quarter of 2007. 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.




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,
        our Battery Charge Control Unit 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 2007, 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 prior to the end of the
        third quarter of 2007 we will have to curtail operations or cease
        operations altogether.


14




**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 September 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.





**PART
      II  – OTHER INFORMATION**




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


(a)
              Exhibits31.1
              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.  15




**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:
      November 10, 2006.


ENERGENX,
                INC.By:
            Gary
              A.
              BediniGary
                A. BediniPresident
                and Chief Executive Officer




By:
            Rick
              M.
              StreetRick
                M. StreetChief
                Financial Officer, Secretary, and Treasurer (Principal Financial and
                Accounting Officer)




16