**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


**Washington,
      D.C. 20549**





**Form
      10-Q**




x
            Quarterly
                report pursuant Section 13 or 15(d) of the Securities Exchange Act
                of
                1934For
                the quarterly period ended June 30, 2008 ̈
            Transition
                report pursuant Section 13 or 15(d) of the Securities Exchange Act
                of
                1934For
                the transition period from _______ to
                _______.





**000-50739**


(Commission
      file number)




**ENERGENX
      INC.**


(Exact
      name of small business issuer as specified in its charter)





**Nevada**
            **20-1044677**(State
                or other jurisdiction
            (IRS
                Employerof
                incorporation or organization)
            Identification
                No.)




**6200
      E. Commerce Loop, Post Falls, Idaho 83854323**


(Address
      of principal executive offices)





**(208)
      665-5553**


(Issuer’s
      telephone number)





**N/A**


(Former
      name, former address and former fiscal year, if changed since last
      report)





Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be
      filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
      the
      preceding 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  ̈





Indicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, a non-accelerated filer, or a smaller reporting company.
      See
      the definitions of “large accelerated filer,” “accelerated filer” and “smaller
      reporting company” in Rule 12b-2 of the Exchange Act. (Check one):


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





Indicate
      by check mark whether the registrant is a shell company (as defined in Rule
      12b-2 of the Exchange Act).


Yes  ̈  No x





On
      August
      12, 2008, 29,697,276 shares of the registrant's common stock were
      outstanding.









**TABLE
      OF CONTENTS**





PART
                I – FINANCIAL INFORMATION
            
            3**Item1.**
            **Financial
                Statements**
            
            3**Item
                2.**
            **Management’s
                Discussion and Analysis of Financial Condition and Results of
                Operations**
            
            13**Item
                3.**
            **Quantitative
                and Qualitative Disclosures About Market Risk**
            
            16**Item
                4.**
            **Controls
                and Procedures**
            
            16Part
                II.OTHER
                INFORMATION
            
            16**Item
                1.**
            **Legal
                Proceedings**
            
            16**Item
                1A.**
            **Risk
                Factors**
            
            16**Item
                2.**
            **Unregistered
                Sales of Equity Securities and Use of Proceeds**
            
            17**Item
                3.**
            **Defaults
                Upon Senior Securities**
            
            17**Item
                4.**
            **Submission
                of Matters to a Vote of Security Holders**
            
            17**Item
                5.**
            **Other
                Information**
            
            17**Item
                6.**
            **Exhibits**
            
            17SIGNATURES
            
            
            18




2




**PART
      I – FINANCIAL INFORMATION**





**Item1.** **Financial
      Statements**




**ENERGENX,
      INC.**


**(A
      Development Stage Company)**


**BALANCE
      SHEET**







June
                  30,
              
              December
                  31,2008
              
              2007(unaudited)**ASSETS****CURRENT
                  ASSETS**Cash
              
              $
              298,262
              
              $
              532,545Inventory
              
              
              19,701Notes
                  receivable
              
              
              1,509
              
              
              1,509Prepaid
                  expense
              
              
              38,618
              
              
              7,614Total
                  Current Assets
              
              
              358,090
              
              
              541,668**PROPERTY
                  AND EQUIPMENT, NET**
              
              
              19,144
              
              
              18,130**OTHER
                  ASSETS**License,
                  net of accumulated amortization
              
              
              50,800
              
              
              54,400Patents,
                  net of accumulated amortization
              
              
              34,446
              
              
              38,404Total
                  Other Assets
              
              
              85,246
              
              
              92,804**TOTAL
                  ASSETS**
              
              $
              462,480
              
              $
              652,602**LIABILITIES
                  AND STOCKHOLDERS' EQUITY (DEFICIT)****CURRENT
                  LIABILITIES**Accounts
                  payable
              
              $
              7,741
              
              $
              8,101Accounts
                  payable - related party
              
              
              -
              
              
              1,040Customer
                  deposits
              
              
              12,900
              
              
              -Deposit
                  on license
              
              
              5,000
              
              
              5,000Payroll
                  taxes payable
              
              
              1,553
              
              
              4,024Accrued
                  payroll
              
              
              7,612
              
              
              -Unclaimed
                  property
              
              
              6,599
              
              
              6,599Total
                  Current Liabilities
              
              
              41,405
              
              
              24,764**COMMITMENTS
                  AND CONTINGENCIES**
              
              
              -
              
              
              -**STOCKHOLDERS'
                  EQUITY (DEFICIT)**Preferred
                  stock, $.001 par value; 5,000,000 shares authorized, no shares
                  issued or
                  outstanding
              
              
              -
              
              
              -Common
                  stock, $.001 par value; 50,000,000 shares authorized, 29,697,276
                  and
                  29,697,276 shares issued and oustanding, respectively
              
              
              29,697
              
              
              29,697Additional
                  paid-in capital
              
              
              3,650,717
              
              
              3,650,717Deficit
                  accumulated during development stage
              
              
              (3,259,339
              )
              
              (3,052,576
              )Total
                  Stockholders' Equity (Deficit)
              
              
              421,075
              
              
              627,838**TOTAL
                  LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)**
              
              $
              462,480
              
              $
              652,602




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




3




**ENERGENX,
      INC.**


**(A
      Development Stage Company)**


**STATEMENTS
      OF OPERATIONS**







From
              
              FromSeptember 29,
              
              September 29,Three Months
              
              Three Months
              
              Six Months
              
              Six Months
              
              1999
              
              1999Ended
              
              Ended
              
              Ended
              
              Ended
              
              (Inception) to
              
              (Inception) toJune 30,
              
              June 30,
              
              June 30,
              
              June 30,
              
              June 30,
              
              Dec 312008
              
              2007
              
              2008
              
              2007
              
              2008
              
              2007(unaudited)
              
              (unaudited)
              
              (unaudited)
              
              (unaudited)
              
              (unaudited)**REVENUES**
              
              $
              16,756
              
              
              3,735
              
              $
              23,831
              
              
              3,735
              
              $
              41,816
              
              
              17,985**COST
                  OF GOODS SOLD**
              
              
              10,290
              
              
              869
              
              
              16,971
              
              
              869
              
              
              18,654
              
              
              1,683**GROSS
                  PROFIT**
              
              
              6,466
              
              
              2,866
              
              
              6,860
              
              
              2,866
              
              
              23,162
              
              
              16,302**OPERATING
                  EXPENSES**Amortization
                  and depreciation
              
              
              5,953
              
              
              5,978
              
              
              11,676
              
              
              11,868
              
              
              147,510
              
              
              135,834Board
                  of directors fees
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              388,000
              
              
              388,000Consulting
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              316,029
              
              
              316,029General
                  and administrative
              
              
              14,569
              
              
              18,299
              
              
              24,592
              
              
              34,029
              
              
              291,162
              
              
              266,570Legal
                  and accounting
              
              
              25,256
              
              
              23,482
              
              
              37,931
              
              
              36,206
              
              
              252,684
              
              
              214,753License
                  and fees
              
              
              86
              
              
              1,527
              
              
              86
              
              
              1,651
              
              
              107,625
              
              
              107,539Marketing
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              19,464
              
              
              19,464Rent
              
              
              7,700
              
              
              7,200
              
              
              14,900
              
              
              14,400
              
              
              231,768
              
              
              216,868Research
                  and development
              
              
              33,231
              
              
              39,860
              
              
              75,339
              
              
              82,449
              
              
              719,054
              
              
              643,715Salaries
                  and benefits
              
              
              24,961
              
              
              23,170
              
              
              49,839
              
              
              50,310
              
              
              780,198
              
              
              730,359Travel
              
              
              -
              
              
              -
              
              
              
              
              
              -
              
              
              1,580
              
              
              1,580**TOTAL
                  OPERATING EXPENSES**
              
              
              111,756
              
              
              119,516
              
              
              214,363
              
              
              230,913
              
              
              3,255,074
              
              
              3,040,711**LOSS
                  FROM OPERATIONS**
              
              
              (105,290
              )
              
              (116,650
              )
              
              (207,503
              )
              
              (228,047
              )
              
              (3,231,912
              )
              
              (3,024,409
              )**OTHER
                  INCOME (EXPENSES)**Interest
                  income
              
              
              384
              
              
              637
              
              
              740
              
              
              972
              
              
              3,008
              
              
              2,268Other
                  income
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              853
              
              
              853Interest
                  expense
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              (34,877
              )
              
              (34,877
              )Loss
                  on disposal of asset
              
              
              -
              
              
              -
              
              
              -
              
              
              (21
              )
              
              (1,730
              )
              
              (1,730
              )Gain
                  on forgiveness of debt
              
              
              -
              
              
              -
              
              
              -
              
              
              1,000
              
              
              5,319
              
              
              5,319**TOTAL
                  OTHER INCOME (EXPENSES)**
              
              
              384
              
              
              637
              
              
              740
              
              
              1,951
              
              
              (27,427
              )
              
              (28,167
              )**LOSS
                  BEFORE TAXES**
              
              
              (104,906
              )
              
              (116,013
              )
              
              (206,763
              )
              
              (226,096
              )
              
              (3,259,339
              )
              
              (3,052,576
              )**INCOME
                  TAXES**
              
              
              -
              
              
              -
              
              
              -
              
              
              -
              
              
              -**NET
                  LOSS**
              
              $
              (104,906
              )
              
              (116,013
              )
              $
              (206,763
              )
              
              (226,096
              )
              $
              (3,259,339
              )
              
              (3,052,576
              )NET
                  LOSS PER COMMON SHARE, BASIC AND DILUTED
              
              $
              nil
              
              
              nil
              
              $
              (0.01
              )
              
              (0.01
              )WEIGHTED
                  AVERAGE NUMBER OF COMMON STOCK SHARES OUTSTANDING, BASIC AND
                  DILUTED
              
              
              29,697,000
              
              
              29,697,000
              
              
              29,697,000
              
              
              29,697,000





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




4




**ENERGENX,
        INC.**
 **(A
        Development Stage Company)**
 **STATEMENTS
        OF CASH FLOWS**
 
  FromSeptember
                    29,Six
                    Months
                
                Six
                    Months
                
                1999Ended
                
                Ended
                
                (Inception)
                    toJune
                    30,
                
                June
                    30,
                
                June
                    30,2008
                
                2007
                
                2008(unaudited)
                
                (unaudited)
                
                (unaudited)**CASH
                    FLOWS FROM OPERATING ACTIVITIES:**Net
                    loss
                
                $
                (206,763
                )
                $
                (226,096
                )
                $
                (3,259,339
                )Stock
                    and options issued for directors fees
                
                
                -
                
                
                -
                
                
                378,000Stock
                    issued for consulting fees
                
                
                -
                
                
                -
                
                
                110,000Stock
                    issued for services
                
                
                -
                
                
                -
                
                
                104,566Stock
                    issued for licensing fees
                
                
                -
                
                
                -
                
                
                100,000Stock
                    issued for payment of interest
                
                
                -
                
                
                -
                
                
                8,300Gain
                    on debt forgiveness
                
                
                -
                
                
                (1,000
                )
                
                (4,319
                )Loss
                    on disposal of asset
                
                
                -
                
                
                21
                
                
                1,827Amortization
                    and depreciation
                
                
                11,676
                
                
                11,868
                
                
                147,514Adjustments
                    to reconcile net (loss) to net cash provided (used) by operating
                    activities:Decrease
                    (increase) in note receivable
                
                
                -
                
                
                (1,068
                )
                
                (1,509
                )Decrease
                    (increase) in prepaids
                
                
                (31,004
                )
                
                14,557
                
                
                (38,618
                )Decrease
                    in deposits
                
                
                -
                
                
                -
                
                
                5,000Decrease
                    (increase) in inventory
                
                
                (19,701
                )
                
                
                
                
                (19,701
                )Increase
                    (decrease) in interest payable
                
                
                -
                
                
                (5,281
                )Increase
                    (decrease) in accounts payable
                
                
                (1,400
                )
                
                (3,739
                )
                
                12,054Increase
                    (decrease) in accrued payroll
                
                
                7,612
                
                
                (27,964
                )
                
                7,612Increase
                    (decrease) in payroll taxes payable
                
                
                (2,471
                )
                
                (23,253
                )
                
                1,554Increase
                    (decrease) in customer deposits
                
                
                12,900
                
                
                -
                
                
                12,900Increase
                    (decrease) in unclaimed property
                
                
                -
                
                
                -
                
                
                6,599Net
                    cash used by operating activities
                
                
                (229,151
                )
                
                (261,955
                )
                
                (2,427,560
                )**CASH
                    FLOWS FROM INVESTING ACTIVITIES:**Cash
                    paid for patent
                
                
                
                
                
                
                
                
                (79,151
                )Cash
                    paid for equipment purchased
                
                
                -
                
                
                (5,981
                )
                
                (51,116
                )Cash
                    paid for leasehold improvements
                
                
                (5,132
                )
                
                -
                
                
                (11,865
                )Net
                    cash used by investing activities
                
                
                (5,132
                )
                
                (5,981
                )
                
                (142,132
                )**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
                
                
                -
                
                
                -
                
                
                (111,542
                )Increase
                    in deposit on common stock
                
                
                -
                
                
                -
                
                
                600,000Proceeds
                    from sale of common stock
                
                
                -
                
                
                500,000
                
                
                2,186,306Net
                    cash provided by financing activities
                
                
                -
                
                
                500,000
                
                
                2,867,954Change
                    in cash
                
                
                (234,283
                )
                
                232,064
                
                
                298,262**Cash,
                    beginning of period**
                
                
                532,545
                
                
                499,235
                
                
                -**Cash,
                    end of period**
                
                $
                298,262
                
                $
                731,299
                
                $
                298,262**SUPPLEMENTAL
                    CASH FLOW INFORMATION:**Interest
                    paid
                
                $
                -
                
                $
                2,607
                
                $Income
                    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
                
                $
                -
                
                $
                -
                
                $
                58,000Common
                    stock issued for deposit
                
                $
                
                
                $
                
                
                $
                600,000Purchased
                    patent included in accounts payable
                
                $
                
                
                $
                
                
                $
                6,374Satisfaction
                    of debt through note receivable
                
                $
                
                
                $
                
                
                $
                660
 The
            accompanying notes are an integral part of these interim financial
            statements.
 7


**ENERGENX,
      INC.**


**NOTES
      TO FINANCIAL STATEMENTS**


**SIX
      MONTHS ENDED JUNE 30, 2008 AND 2007**


**(UNAUDITED)**





**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, 2007.  In the
      opinion of management, the unaudited interim financial statements furnished
      herein includes 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, 2008 are not
      necessarily indicative of the results that may be expected for the year ending
      December 31, 2008.





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.





Accounting
      Method


The
      Company uses the accrual basis of accounting in accordance with accounting
      principles generally accepted in the United States of America.





Accounting
      Pronouncements


In
      May,
      2008, the Financial Accounting Standards Board issued Statement of Financial
      Accounting Standards No. 163, “Accounting for Financial Guarantee Insurance
      Contracts—an interpretation of FASB Statement No. 60” (SFAS 163). This Statement
      requires that an insurance enterprise recognize a claim liability prior to
      an
      event of default (insured event) when there is evidence that credit
      deterioration has occurred in an insured financial obligation. This Statement
      also clarifies how Statement 60 applies to financial guarantee insurance
      contracts, including the recognition and measurement to be used to account
      for
      premium revenue and claim liabilities. Those clarifications will increase
      comparability in financial reporting of financial guarantee insurance contracts
      by insurance enterprises. This Statement requires expanded disclosures about
      financial guarantee insurance contracts. The accounting and disclosure
      requirements of the Statement will improve the quality of information provided
      to users of financial statements. This Statement is effective for financial
      statements issued for fiscal years beginning after December 15, 2008, and all
      interim periods within those fiscal years, except for some disclosures about
      the
      insurance enterprise’s risk-management activities. This Statement requires that
      disclosures about the risk-management activities of the insurance enterprise
      be
      effective for the first period (including interim periods) beginning after
      issuance of this Statement. Except for those disclosures, earlier application
      is
      not permitted. The adoption of this statement will have no material effect
      on
      the Company’s financial condition or results of operations.




8




**ENERGENX,
      INC.**


**NOTES
      TO FINANCIAL STATEMENTS**


**SIX
      MONTHS ENDED JUNE 30, 2008 AND 2007**


**(UNAUDITED)**




In
      March
      2008, the Financial Accounting Standards Board issued Statement of Financial
      Accounting Standards No. 161, “Disclosures about Derivative Instruments and
      Hedging Activities—an amendment of FASB Statement No. 133” (SFAS No. 161). This
      statement changes the disclosure requirements for derivative instruments and
      hedging activities. Entities are required to provide enhanced disclosures about
      (a) how and why an entity uses derivative instruments, (b) how derivative
      instruments and related hedged items are accounted for under Statement 133
      and
      its related interpretations, and (c) how derivative instruments and related
      hedged items affect an entity’s financial position, financial performance, and
      cash flows. This Statement is intended to enhance the current disclosure
      framework in Statement 133. The Statement requires that objectives for using
      derivative instruments be disclosed in terms of underlying risk and accounting
      designation. This disclosure better conveys the purpose of derivative use in
      terms of the risks that the entity is intending to manage. Disclosing the fair
      values of derivative instruments and their gains and losses in a tabular format
      should provide a more complete picture of the location in an entity’s financial
      statements of both the derivative positions existing at period end and the
      effect of using derivatives during the reporting period. Disclosing information
      about credit-risk-related contingent features should provide information on
      the
      potential effect on an entity’s liquidity from using derivatives. Finally, this
      Statement requires cross-referencing within the footnotes, which should help
      users of financial statements locate important information about derivative
      instruments.




Concentration
      of Credit Risk


The
      Company maintains its cash in one commercial account at a major financial
      institution. Although the financial institution is considered creditworthy
      and
      has not experienced any losses on its deposits, at June 30, 2008 and 2007 the
      Company’s cash balance exceeded Federal Deposit Insurance Corporation (FDIC)
      limits by $195,910 and $531,328, respectively.





Cost
      of Sales


Cost
      of
      sales consist of the cost of raw material, direct labor, commissions, inbound
      shipping charges, and packaging supplies.





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.





Fair
      Value of Financial Instruments


The
      Company's financial instruments as defined by Statement of Financial Accounting
      Standards No. 107, "Disclosures about Fair Value of Financial Instruments,"
      include cash, notes receivable, accounts payable, accrued expenses and
      short-term borrowings. All instruments are accounted for on a historical cost
      basis, which, due to the short maturity of these financial instruments,
      approximates fair value at June 30, 2008 and December 31, 2007.





Going
      Concern


As
      shown
      in the accompanying financial statements, the Company has incurred an
      accumulated deficit of $3,259,339 through June 30, 2008 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 $500,000 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.




9




**ENERGENX,
      INC.**


**NOTES
      TO FINANCIAL STATEMENTS**


**SIX
      MONTHS ENDED JUNE 30, 2008 AND 2007**


**(UNAUDITED)**





Inventory


The
      Company records inventories at the lower of cost or market on an average cost
      basis.




June
                30, 2008
            
            June
                30, 2007Raw
                Materials
            
            $
            3,852
            
            
            -Work-in-Process
            
            $
            10,361
            
            
            -Finished
                Goods
            
            $
            5,488
            
            
            -$
            19,701
            
            $
            -





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
      annually 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 period ended June 30, 2008 and
      2007 were $75,339 and $82,449, respectively. Salaries for those employees
      directly involved in research and development are included in research and
      development expense.





Revenue
      Recognition


Revenue
      is recorded when the Company has no significant remaining obligations,
      persuasive evidence of an arrangement exists, the price to the buyer is fixed
      or
      determinable, and collectability is reasonably assured or probable.





Product
      sales revenue is recognized when title and risk of loss have passed to the
      buyer. According to the Company’s terms of sale, title and risk of loss pass to
      the customer upon delivery to the carrier.





Royalties
      will be recognized as revenue when the amounts are contractually earned, fixed
      and determinable, and there is substantial probability of
      collection.





**NOTE
      3 - PREPAID EXPENSE**





Prepaid
      expenses at June 30, 2008 includes the prepayment of a commercial lease.


During
      the period ended June 30, 2008, the Company renewed its office space lease
      for
      one year and prepaid the entire amount of the lease, $34,800.  During the
      six months ended June 30, 2007, the Company expensed $2,900. The unamortized
      prepaid balance at June 30, 2007 was $31,900.





Also
      during the period ended June 30, 2008, the Company prepaid its insurance for
      the
      period July 5, 2008 to July 5, 2009 in the amount of $6,461.








**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 periods ended June 30, 2008 and December 31, 2007 was $2,528 and $7,501,
      respectively.





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


March 31,
              
              December 31,2008
              
              2007Machinery
              
              $
              35,379
              
              $
              35,379Office
                  Furniture and Equipment
              
              
              18,963
              
              
              18,963Leasehold
                  Improvements
              
              
              10,423
              
              
              5,29264,766
              
              
              59,634Less
                  Accumulated Depreciation
              
              
              (45,622
              )
              
              (41,504
              )Property
                  and Equipment - Net
              
              $
              19,144
              
              $
              18,130




10




**ENERGENX,
      INC.**


**NOTES
      TO FINANCIAL STATEMENTS**


**SIX
      MONTHS ENDED JUNE 30, 2008 AND 2007**


**(UNAUDITED)**





**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, and
      amortization expense:





Cost
            
            AccumulatedAmortization
            
            Net AmountBalance,
                December 31, 2004
            
            $
            68500
            
            $
            19,076
            
            $
            49,4242005
                Activity
            
            
            —
            
            
            6,850
            
            
            —Balance,
                December 31, 2005
            
            
            68,500
            
            
            25,926
            
            
            42,5742006
                Activity
            
            
            1,450
            
            
            6,907
            
            
            —Balance,
                December 31, 2006
            
            $
            69,950
            
            $
            32,833
            
            $
            37,1172007
                Activity
            
            
            9,201
            
            
            7,915Balance,
                December 31, 2007
            
            
            79,151
            
            
            40,748
            
            
            38,4042008
                Activity
            
            
            —
            
            
            3,957
            
            
            —Balance,
                June 30, 2008
            
            
            79,151
            
            
            44,705
            
            
            34,446





The
      amortization expense for the periods ended June 30, 2008 and 2007 were $3,957
      and $3,820 respectively.





**NOTE
      6** - **TECHNOLOGY
      LICENSES**





The
      Company aquired two technology licenses from an officer/director in 1999 and
      2001. The Company is amortizing these licenses over fifteen years using the
      straight-line method. The technology licenses relate to the design of the back
      EMF permanent electromagnetic motor generator. The amortization expense for
      the
      periods ended March 31, 2008 and 2007 were $3,600 and $3,600
      respectively.





**NOTE
      7 - RELATED PARTY TRANSACTIONS**





During
      the year ended December 31, 2007, the company purchased a piece of testing
      equipment in the amount of approximately $1,509, for which it will be reimbursed
      by GTG Corporation. The principal shareholder of GTG is also a director of
      the
      Company.





**NOTE
      8 – CAPITAL STOCK**





Preferred
      Stock


The
      Company is authorized to issue 5,000,000 shares of preferred stock with a par
      value of $0.001. As of December 31, 2007 and 2006, the Company has not issued
      any preferred stock.





Common
      Stock


The
      Company is authorized to issue 50,000,000 shares of common stock with a par
      value of $0.001. All shares have equal voting rights, are non-assessable and
      have one vote per share.




11




**ENERGENX,
      INC.**


**NOTES
      TO FINANCIAL STATEMENTS**


**SIX
      MONTHS ENDED JUNE 30, 2008 AND 2007**


**(UNAUDITED)**





During
      the initial period ended December 31, 1999, the Company issued 7,836,168 shares
      of its common stock at par, for cash.





During
      the year ended December 31, 2000, the Company issued 195,060 shares for
      convertible debt of $60,010. The Company also issued 9,750 shares for equipment
      valued at $3,250 and 330,000 shares for cash of $0.33 per share, or
      $110,000.





During
      the year ended December 31, 2001, the Company issued 453,000 shares of common
      stock for cash of $151,000, or $0.33 per share. The Company also issued 160,886
      share of common stock for services totaling $55,366, 1,086 shares of common
      stock to purchase equipment totaling $362, and 5,140,326 shares of common stock
      in payment of a technology license with a value of $58,000. See Note
      6.





On
      May 4,
      2001, the Company executed a 1 for 6 forward split to all shareholders of record
      as of May 1, 2001. The financial records have been restated to reflect this
      stock split in the accompanying financial statements.





During
      the year ended December 31, 2002, the Company issued 24,000 shares of its common
      stock for cash of $1.00 per share, or $24,000. The Company also issued 20,000
      shares of common stock in payment of debt of $20,000.





During
      the year ended December 31, 2003, the Company issued 3,200,000 shares of common
      stock to board members and other consultants at $0.05 per share, or $160,000.
      Also during the year ended December 31, 2003, the Company issued 2,000,000
      shares of common stock to Mr. John Bedini as a supplement to the licensing
      agreement. The Company valued these shares at $0.05 per share, or $100,000.





During
      the year ended December 31, 2004, the Company issued 2,527,000 shares of common
      stock at $0.05 per share in payment of outstanding loans and interest totaling
      $126,350. In addition, the Company issued 2,400,000 shares of common stock
      and
      options to purchase an additional 2,400,000 shares of common stock for $0.21
      per
      share for cash of $500,000. The stock options were issued with the stock in
      consideration of the stock purchase, and were valued at $0.03 per share, or
      $72,000 which was treated as a proration of additional paid-in capital upon
      the
      completion of this transaction. Furthermore, during 2004, this individual then
      exercised these options and purchased the 2,400,000 shares of common stock
      for
      $0.21 per share for an additional $500,000.





During
      the year ended December 31, 2005, the Company issued 400,000 shares 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
      commitment for a total of $1,500,000 for 3,000,000 shares. As of December 31,
      2005, this commitment had $1,300,000 remaining for a future commitment of
      2,600,000 shares of common stock. The Company is issuing the shares as the
      money
      is received.





During
      the year ended December 31, 2006, the Company issued 400,000 shares of common
      stock at $0.50 per share for cash of $200,000.





During
      the year ended December 31, 2007, the Company issued 2,200,000 shares of common
      stock at $0.50 per share for cash of $1,100,000.





During
      the period ended June 30, 2008, the Company did not issue any
      stock.





12


**Item
              2.**
            **Management’s
                Discussion and Analysis of Financial Condition and Results of
                Operations**




**CAUTIONARY
      STATEMENT FOR FORWARD-LOOKING STATEMENTS**





***THIS
      QUARTERLY REPORT ON FORM 10-Q CONTAINS “FORWARD-LOOKING STATEMENTS” WITHIN THE
      MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND INVOLVE
      A
      HIGH DEGREE OF RISK AND UNCERTAINTY. 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. OUR ACTUAL RESULTS MAY DIFFER MATERIALLY
      FROM THOSE PROJECTED IN THE FORWARD-LOOKING STATEMENTS DUE TO RISKS AND
      UNCERTAINTIES THAT EXIST IN OUR OPERATIONS. 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 THEIR MARKETS.
      THESE
      RISKS AND OTHERS ARE MORE FULLY DESCRIBED IN OUR ANNUAL REPORT ON 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.





**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.





**Product
      Research and Development Plans**





On
      May 9,
      2008, we signed a Test Market Program agreement with Classic Electrics, LLC
      under which we, in joint cooperation with Classic Electrics, will produce the
      first of a series of electric car batteries which will be manufactured by
      Energenx. The parties intend to enter into a finalized OEM agreement after
      an
      initial market testing period of one year to produce an OEM after-market
      electric car battery charger. Classic Electrics will do the initial market
      testing through its preexisting network and with additional marketing efforts.
      Energenx will design and manufacture the battery chargers, and provide such
      chargers to Classic Electrics on an agreed pricing schedule along with a one
      year limited manufacturers warranty and technical support.





Our
      current plan of operation for the next 12 months primarily involves meeting
      any
      demand for our battery charger/rejuvenator products from Renaissance Charger,
      LLC, GTG Corp., and Classic Electrics, LLC, and research and development
      activities on battery charger/rejuvenator and charge control unit
      products.





Concerning
      the battery charger/rejuvenators, product research will continue on improving
      efficiency. We will continue our development of variations of the
      charger/rejuvenators for specific markets to accommodate various
      volt **** applications
      with a wide range of capacity requirements. This will include the new battery
      chargers for electric cars for the market testing program with Classic
      Electrics. We are also currently developing a new charger for electric
      motorcycles which will charge batteries in the range from 12 to 72 volts. We
      plan to do additional market testing once this electric motorcycle battery
      charger product is finalized.




13




In
      June
      2007 we delivered a new golf cart version of the 36/48 volt of our battery
      charger/rejuvenator to GTG Corp. also for in-house testing and potentially
      for
      further UL assessment, testing and certification. In addition, in May 2007
      we
      completed development of a 12 volt battery charger. We have not received any
      purchase orders from GTG Corp. for battery charger/rejuvenators to
      date.





During
      2007 we sold 139 of the 12 volt battery chargers to Renaissance Charger LLC
      who
      is undertaking in-house testing and sample marketing of these battery chargers,
      which resulted in the recognition of $17,985 of revenue for the year ending
      December 31, 2007. Energenx and Renaissance have been operating under an
      informal joint venture relationship involving the sale and market testing of
      other charger/rejuvenators and solar/wind charge control units which has
      generated revenues for Energenx in 2008. For the first six months of 2008,
      Energenx has sold 73 chargers to Renaissance Charge, which resulted in the
      recognition of $14,765 of revenue for the six months ending June 30, 2008.
      In
      addition, sales of chargers for car batteries to individual customers generated
      $9,065 in revenue for the first six months of 2008.





We
      may
      generate revenues pursuant to our Exclusive Technology License Agreement with
      GTG Corp. if they order battery charger/rejuvenators, or pursuant to our Test
      Market Program with Electric Classics if they order electric car battery
      chargers. As mentioned above, we did generate revenues from the sale of 139
      of
      our 12 volt battery charger units to Renaissance Charger LLC during 2007, and
      sales of 73 chargers to Renaissance Charger during the first six months of
      2008.
      We cannot assure you that GTG Corp. or Classic Electrics will order any
      charger/rejuvenators from us in 2008 or ever, that Renaissance Charger LLC
      will
      order additional charger/rejuvenators, 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,
      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.





While
      we
      have no plans to relocate our current research facility within the next twelve
      months, equipment purchases will be necessary if we receive a significant volume
      of orders for the battery charger/rejuvenators from Renaissance Charger, Classic
      Electrics and/or GTG Corp. Such equipment would include test equipment,
      oscilloscopes, analyzers, soldiering stations, and packaging equipment. Such
      equipment purchases are likely to be in the range of $100,000 for the next
      twelve months if the need arises and assuming the availability of capital
      resources. We may also need to hire up to three more employees if we receive
      a
      significant volume of orders from GTG Corp., Renaissance Charger, or Classic
      Electrics. We intend to contract out the bulk of the manufacturing of the hybrid
      modules for GTG Corp., 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 enters the later stages of
      development.





**Liquidity
      and Capital Resources**





As
      of
      June 30, 2008, we had $298,262 in cash and cash equivalents as compared to
      $532,545 in cash and cash equivalents at December 31, 2007. 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.




14




Net
      cash
      used in operating activities during the six months ended June 30, 2008 was
      $229,151 resulting in a net loss of $206,684. During the three months and six
      months ended June 30, 2008, we had revenues of $16,756 and $23,831 respectively
      as compared to revenues of $3,735 for the three and six month period,
      respectively, ending June 30, 2007. The revenues in 2008 were derived largely
      from sales of our battery charging products to Renaissance Charge,
      LLC.




Our
      current real estate lease is on a two year renewal basis. Under the terms of
      an
      addendum to the lease agreement, during the quarter ending June 30, 2008 we
      renewed our office space lease at a new monthly rental rate of $2,900 for one
      year and prepaid the entire amount of the lease, in the amount of $34,800.
      In
      addition, during the quarter we also prepaid our commercial general liability
      insurance for a one year period ending July 5, 2009 in the amount of
      $6,461.





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;





·
            revenues
                from sale of chargers to Renaissance Charge, LLC or Classic Electrics,
                LLC, if any;





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





·
            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, from Classic Electrics if they
      order
      electric car chargers under the Test Market Program or if Renaissance Charge
      purchases more of our chargers. We cannot at this time assure you that those
      orders will occur or revenues will be generated in the second half of 2008,
      if
      at all.





We
      believe that we have sufficient capital resources to finance our plan of
      operation at least through the first quarter of 2009. However, this is a
      forward-looking statement, and there may be changes that could consume available
      resources before the end of the year. 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
      will
      need to raise additional capital or generate additional revenue to complete
      our
      development of product variations on our battery charger/rejuvenators, our
      hybrid electromagnetic motor/generator product candidate and our charge control
      unit. We cannot assure you that we will generate sufficient additional capital
      or revenues, if any, to fund our operations beyond the first quarter of 2009,
      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 when necessary we will have to curtail or cease operations.





**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:




15




**Revenue
      recognition** *:* Revenue
      is recorded when products are shipped and we have no significant remaining
      obligations, persuasive evidence of an arrangement exits, the price to the
      buyer
      is fixed or determinable, and collectability is reasonably assured or probable.
      Product sales revenue is recognized when title and risk of loss have passed
      to
      the buyer. According to our terms of sale, title and risk of loss pass to the
      customer upon delivery to the carrier. Royalties will be recognized as revenue
      when the amounts are contractually earned, fixed and determinable, and there
      is
      substantial probability of collection.





**Research,
      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.





**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.





**Intangible
      Assets.** Energenx’ intangible assets are composed of a patent and license. They are
      amortized on a straight-line basis over ten and fifteen year lives,
      respectively.





**Item
              3.**
            **Quantitative
                and Qualitative Disclosures About Market
                Risk**





Not
      required




**Item
              4.**
            **Controls
                and Procedures**





**Evaluation
      of Disclosure Controls and Procedures**





In
      connection with the preparation of this Quarterly Report on Form 10-QSB, an
      evaluation was carried out by our management, with the participation of our
      Chief Executive Officer and Chief Financial Officer, of the effectiveness of
      our
      disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)
      of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of
      June 30, 2008. Disclosure controls and procedures are designed to ensure that
      information required to be disclosed in reports filed or submitted under the
      Exchange Act is recorded, summarized, and reported within the time periods
      specified in SEC rules and forms and that such information is accumulated and
      communicated to management, including the Chief Executive Officer and Chief
      Financial Officer, to allow timely decisions regarding required disclosures.
      Based on that evaluation, and in light of the previously identified material
      weakness in internal control over financial reporting, as of December 31, 2007,
      relating to fundamental elements of an effective control environment described
      in the 2007 Annual Report on Form 10-KSB, our principal executive officer and
      our principal financial officer have concluded that our disclosure controls
      and
      procedures were not effective as of June 30, 2008.





During
      the quarter ended June 30, 2008, our board of directors formed an audit
      committee initially made up of the two directors who are not members of our
      management and such audit committee was involved in the review of this quarterly
      report and the financial statements. Our board of directors also adopted a
      Code
      of Ethics applicable to all officers, directors and employees.





**Part
      II.**  **OTHER
      INFORMATION**





**Item
              1.**
            **Legal
                Proceedings**





There
      have been no material changes from the disclosure provided in Part 1, Item
      3 of
      our Annual Report on Form 10-KSB for the year ended December 31,
      2007.




**Item
              1A.**
            **Risk
                Factors**





There
      have been no material changes from the disclosure provided in Part 1, Item
      1 of
      our Annual Report on Form 10-KSB for the year ended December 31,
      2007.




16




**Item
              2.**
            **Unregistered
                Sales of Equity Securities and Use of Proceeds******




None





**Item
              3.**
            **Defaults
                Upon Senior Securities**





None.





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





None.





**Item
              5.**
            **Other
                Information**





None.





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





(a)
            Exhibits





**Exhibit
                Number**
            **Description
                of Exhibit**10.1
            Addendum
                to Lease Agreement between Powderhorn Properties, LLC and Energenx,
                Inc.
                dated June 1, 200810.2
            Test
                Market Program agreement between Classic Electrics, LLC and Energenx,
                Inc.
                dated May 9, 200831.1
            Certification
                of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a),
                promulgated under the Securities and Exchange Act of 1934, as
                amended.31.2
            Certification
                of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d
                14(a),
                promulgated under the Securities and Exchange Act of 1934, as
                amended.32.1
            Certification
                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                906 of
                the Sarbanes-Oxley Act of 2002 (Chief Executive
                Officer).32.2
            Certification
                pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
                906 of
                the Sarbanes-Oxley Act of 2002 (Chief Financial
                Officer).




17





**SIGNATURES**





In
      accordance with the requirements of the Exchange Act, the registrant caused
      this
      report to be signed on its behalf by the undersigned, thereunto duly
      authorized.





Energenx,
                Inc.August
                12, 2008
            By:
            /s/ Gary
                BediniGary
                Bedini
              President
                and Chief Executive Officer
              (Principal
                Executive Officer)August
                12, 2008
            By:
            /s/ Rick
                StreetRick
                Street
              Chief
                Financial Officer
              (Principal
                Financial and Accounting Officer)





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