UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549



FORM 10-QSB



|ý                                                           | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 
|----------------------------------------------------------- | ----------------------------------------------------------------------------------------
|                                                            |                                                                                         
|For the quarterly period ended:      March 31, 2005        
|                                                            |                                                                                         
|                                                            | or                                                                                      
|                                                            |                                                                                         
|o                                                           | TRANSITION REPORT PURSUANT TO SECTION 13 0R 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
|                                                            |                                                                                         
|For the transition period from                           to
|                                                            |                                                                                         
|Commission File Number:        000-51008                   



TELESIS TECHNOLOGY CORPORATION

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



|Florida                                                         | 04-3684840                       
|--------------------------------------------------------------- | ---------------------------------
|(State or Other jurisdiction of
 incorporation or organization) | (IRS Employer
Identification No.)
|                                                                |                                  
|1611 12th Street East, Unit A
Palmetto, Florida                 | 34221                            
|(Address of principal executive offices)                        | (Zip Code)                       
|                                                                |                                  
|(941) 795-7441                                                 
|(Issuers telephone number including area code)                



Check whether the issuer (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 ý  No o



State the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.



Common Stock Outstanding as of March 31, 2005:  19,367,500 shares



Transitional Small Business Disclosure Format: Yes o  No ý











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Telesis Technology Corporation



Index to Form 10QSB











PART  I

Financial Information



Item 1.       
Financial Statements

Title Page

Report of Independent Registered Public Accounting Firm

Balance Sheet at March 31, 2005 & 2004

Stockholders Equity at March 31, 2005 & 2004

Statements of Operations at March 31, 2005 & 2004

Statements of Cash Flows at March 31, 2005 & 2004

Notes to Financial Statements



Item 2.

Managements Discussion and Analysis of Financial Condition and Results of Operations

Liquidity and Capital Resources

Critical Accounting Policies

Additional Factors That May Affect Future Results

Controls and Procedures



PART II

Other Information



Item 1.

Legal Proceedings

Item 2.

Changes in Securities and Use of Proceeds

Item 3.

Defaults Upon Senior Securities

Item 4.

Submission of Matters to a Vote of Security Holders

Item 5.

Other Information

Item 6.

Exhibits and Reports



SIGNATURES





















2





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Telesis Technology Corporation



Balance sheets as of March 31, 2005 and 2004



Statements of Operations, and

Cash Flows for the three month

period ended March 31, 2005 and 2004.



Notes to the financial statements





















































3





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E. Randall Gruber, CPA, PC

Certified Public Accountant                                           Telephone (314)238-1224

10805 Sunset Office Drive, Suite 300                                      Fax (314)238-1250

St. Louis, Missouri  63127





REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



Board of Directors

Telesis Technology Corporation



I have reviewed the accompanying balance sheets of Telesis Technology Corporation as of March 31, 2005 and 2004 and the related statements of operations, and cash flows for the three months ended March 31, 2005 and 2004. These financial statements are the responsibility of the Companys management.



I conducted my reviews in accordance with the standards of the Public Company Accounting Oversight Board (United States).  A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters.  It is substantially less in scope than an audit conducted in accordance with the standards of the Public Company Accounting Oversight Board, the objective of which is the expression of an opinion regarding the financial statements taken as a whole.  Accordingly, I do not express such an opinion.



Based on my reviews, I am not aware of any material modifications that should be made to the accompanying interim financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.



/S/

E. Randall Gruber, CPA, PC

--------------------------------------

May 4, 2005











Member:  American Institute of Certified Public Accountants

Registered:  Public Company Accounting Oversight Board (PCAOB)

















4





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|Telesis Technology Corporation                       |   |           |   |          
|---------------------------------------------------- | - | --------- | - | ---------
|Balance Sheets                                       |   |           |   |          
|(Unaudited)                                          |   |           |   |          
|                                                     |   |           |   |          
|ASSETS                                               |   | March 31,
|                                                     |   | 2005      |   | 2004     
|Current assets                                       |   |           |   |          
|Cash and cash equivalents                            | $ | 139,332   | $ | 32,058   
|Accounts receivable                                  |   | 262,035   |   | 193,877  
|Inventories                                          |   | 1,090,817 |   | 526,545  
|Prepaid expenses                                     |   | 2,703     |   | -----    
|                                                     |   |           |   |          
|Total current assets                                 |   | 1,494,887 |   | 752,480  
|Property and equipment (at cost), net of accumulated |   |           |  
|depreciation of $18493, and $6248 respectively       |   | 600,023   |   | 260,380  
|                                                     |   |           |   |          
|Other assets                                         |   |           |   |          
|Loan to shareholder                                  |   |           |   | 5,247    
|Deposits                                             |   | 150       |   | 1,260    
|                                                     |   |           |   |          
|Total other assets                                   |   | 150       |   | 6,507    
|                                                     |   |           |   |          
|Total assets                                         |   | 2,095,060 |   | 1,019,367
|                                                     |   |           |   |          
|LIABILITIES AND STOCKHOLDERS' EQUITY                 |   |           |   |          
|                                                     |   |           |   |          
|Current liabilities                                  |   |           |   |          
|Notes payable                                        |   | 32,029    |   | 32,029   
|Accounts payable                                     |   | 248,982   |   | 79,397   
|Accrued income taxes                                 |   | 22,100    |   | 14,528   
|Current maturities of long-term debt                 |   | 34,648    |   | 3,600    
|                                                     |   |           |   |          
|Total current liabilities                            |   | 337,759   |   | 129,554  
|                                                     |   |           |   |          
|Long-term debt                                       |   |           |   |          
|Mortgages payable, net of current maturities         |   | 294,800   |   | 156,934  
|                                                     |   |           |   |          
|Deferred income taxes                                |   | 37,465    |   | 1,194    
|                                                     |   |           |   |          
|Total liabilities                                    |   | 670,024   |   | 287,682  



5





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|Telesis Technology Corporation                           |   |             |   |            
|-------------------------------------------------------- | - | ----------- | - | -----------
|Balance Sheets                                           |   |             |   |            
|(Unaudited)                                              |   |             |   |            
|Continued                                                |   |             |   |            
|                                                         |   | March 31,  
|                                                         |   | 2005        |   | 2004       
|Stockholders' equity                                     |   |             |   |            
|Preferred stock, $0.001 par value; 20,000,000            |   |             |   |            
|shares authorized; no shares issued and                  |   |             |   |            
|outstanding                                              |   | ----------- |   | -----------
|Common stock, $0.001 par value; 100,000,000              |   |             |   |            
|shares authorized (2004) and $1.00 par value; 13,367,500 |   |            
|shares authorized (2004) and 19,367,500 (2005)           |   |             |   |            
|and 100 (2003) issued and outstanding                    |   | 19,368      |   | 12,225     
|Additional paid-in capital                               |   | 1,288,217   |   | 684,134    
|Other comprehensive income (loss                         |   | (13,300)    |   | -----------
|Retained earnings (accumulated deficit)                  |   | 130,751     |   | 35,326     
|Total stockholders' equity                               |   | 1,425,036   |   | 731,685    
|                                                         |   |             |   |            
|Total liabilities and stockholders' equity               | $ | 2,095,060   | $ | 1,019,367  



6





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|Telesis Technology Corporation      |   |                    |   |        
|----------------------------------- | - | ------------------ | - | -------
|Statements of Operations            |   |                    |   |        
|(Unaudited)                         |   |                    |   |        
|                                    |   | For the           
|                                    |   | Three months ended
|                                    |   | March 31,         
|                                    |   | 2005               |   | 2004   
|                                    |   |                    |   |        
|Revenues                            |   |                    |   |        
|Sales                               | $ | 661,226            | $ | 348,127
|                                    |   |                    |   |        
|Cost of Sales                       |   |                    |   |        
|Cost of goods sold                  |   | 488,262            |   | 225,496
|Freight                             |   | 5,824              |   | 3,173  
|                                    |   |                    |   |        
|Total cost of sales                 |   | 494,086            |   | 228,669
|                                    |   |                    |   |        
|Gross margin                        |   | 167,140            |   | 119,458
|                                    |   |                    |   |        
|Operating expenses                  |   |                    |   |        
|Salaries and wages                  |   | 62,876             |   | 40,836 
|Professional fees                   |   | 1,885              |   | 1,684  
|Outside services                    |   | 4,455              |   | 10,000 
|Utilities and telephone             |   | 4,924              |   | 1,516  
|Payroll taxes and employee benefits |   | 8,677              |   | 4,171  
|Other taxes                         |   | 1,377              |   | 373    
|Operating supplies                  |   | 1,167              |   | 1,699  
|Depreciation                        |   | 6,336              |   | 2,150  
|Office supplies                     |   | 1,094              |   | 677    
|Repairs and maintenance             |   | 536                |   | 465    
|Advertising and promotion           |   | 870                |   | 417    
|Vehicle expense                     |   | 1,381              |   | 1,157  
|Insurance                           |   | 786                |   | 916    
|Other operating expenses            |   | 1,864              |   | 1,718  
|                                    |   |                    |   |        
|Total operating expenses            |   | 98,228             |   | 67,779 
|                                    |   |                    |   |        
|Income (loss)  from operations      |   | 68,912             |   | 51,679 



7





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|Telesis Technology Corporation                 |   |                    |   |           
|---------------------------------------------- | - | ------------------ | - | ----------
|Statements of Operations                       |   |                    |   |           
|(Unaudited)                                    |   |                    |   |           
|Continued                                      |   | For the           
|                                               |   | Three months ended
|                                               |   | March 31,         
|                                               |   | 2005               |   | 2004      
|                                               |   |                    |   |           
|Other income (expenses)                        |   |                    |   |           
|Interest income                                |   | 279                |   |           
|Other income                                   |   | 809                |   |           
|Interest expense                               |   | (4,308)            |   | 631       
|                                               |   |                    |   |           
|Total other expenses                           |   | (3,220)            |   | 631       
|                                               |   |                    |   |           
|Income before income taxes                     |   | 65,692             |   | 51,048    
|                                               |   |                    |   |           
|Income taxes                                   |   | 24,100             |   | 15,722    
|                                               |   |                    |   |           
|Net income                                     | $ | 41,592             | $ | 35,326    
|Weighted average number of common shares       |   |                    |   |           
|outstanding - basic and fully diluted          |   | 19,156,718         |   | 12,713,736
|                                               |   |                    |   |           
|Net income per share - basic and fully diluted | $ | 0.00               | $ | 0.00      
|                                               |   |                    |   |           



8





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|Telesis Technology Corporation            |   |                    |   |          
|----------------------------------------- | - | ------------------ | - | ---------
|Statements of Cash Flows                  |   |                    |   |          
|(Unaudited)                               |   |                    |   |          
|                                          |   |                    |   |          
|                                          |   |                    |   |          
|                                          |   | For the           
|                                          |   | Three months ended
|                                          |   | March 31,         
|                                          |   | 2005               |   | 2004     
|Operating activities                      |   |                    |   |          
|Net income (loss)                         | $ | 41,592             | $ | 35,326   
|Adjustments to reconcile net income to    |   |                    |   |          
|net cash provided by operating activities |   |                    |   |          
|Depreciation and amortization             |   | 6,336              |   | 2,150    
|Deferred income taxes                     |   | 2,000              |   | 1,194    
|                                          |   |                    |   |          
|Changes in assets and liabilities         |   |                    |   |          
|Accounts receivable                       |   | (42,955)           |   | (32,568) 
|Prepaid expenses                          |   | (2,703)            |   | 5,000    
|Inventories                               |   | (130,721)          |   | (38,139) 
|Accounts payable                          |   | 194,272            |   | (10,778) 
|Accrued income taxes                      |   | 10,465             |   | 14,528   
|                                          |   |                    |   |          
|Net cash provided by operating activities |   | 78,286             |   | (23,287) 
|                                          |   |                    |   |          
|Investing activities                      |   |                    |   |          
|Expenditures for property and equipment   |   | (4,792)            |   | (128,387)
|Expenditures for software                 |   | (527)              |   | (3,066)  
|Loans to shareholder                      |   | 3,477              |   | (3,477)  
|Additional security deposits              |   | (260)              |   | (1,000)  
|                                          |   |                    |   |          
|Net cash used in investing activities     |   | (2,102)            |   | (135,930)
|                                          |   |                    |   |          
|Financing activities                      |   |                    |   |          
|Proceeds from issuance of long-term debt  |   | --                 |   | 125,029  
|Principal payments on long-term debt      |   | (6,403)            |   | (1,261)  
|Additional investment by shareholders     |   | --                 |   | --       
|                                          |   |                    |   |          
|Net cash provided by financing activities |   | (6,403)            |   | 123,768  
|                                          |   |                    |   |          
|Net decrease in cash and cash equivalents |   | 69,781             |   | (35,449) 
|                                          |   |                    |   |          
|Cash and cash equivalents, beginning      |   | 69,551             |   | 67,507   
|                                          |   |                    |   |          
|Cash and cash equivalents, end            | $ | 139,332            | $ | 32,058   



9





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|Telesis Technology Corporation                                                |   |                    |   |     
|----------------------------------------------------------------------------- | - | ------------------ | - | ----
|Statements of Cash Flows                                                      |   |                    |   |     
|(Unaudited)                                                                   |   |                    |   |     
|                                                                              |   |                    |   |     
|                                                                              |   |                    |   |     
|                                                                              |   | For the           
|                                                                              |   | Three months ended
|                                                                              |   | March 31,         
|                                                                              |   | 2005               |   | 2004
|Supplemental disclosures:                                                     |   |                    |   |     
|Interest paid                                                                 | $ | 4,308              | $ | 631 
|Income taxes paid                                                             |   | 4,769              | $ | --- 
|Non-cash investing and financing transactions - During the three months ended
|March 31, 2005, the Company's major shareholder transferred inventory items  
|to the Company.  The inventory was valued at replacement cost in the amount  
|of $457,561.  The stockholder was credited with common stock and additional  
|paid-in capital in the amount of $457,561.                                    |   |                    |   |     







10





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Telesis Technology Corporation

Notes to Financial Statements



Note A  Company overview and summary of significant accounting policies



Company overview



Telesis Technology Corporation is a publicly traded, multi-faceted, high technology company that designs, develops, tests, manufactures, and markets a diverse range of aerospace and defense products.  The Company is focused on providing product, system and service solutions for commercial and governmental customers.  The Company has several operating divisions  Telesis Aerospace; Commercial Products Division (CPD); Telesis Test Labs; and Telesis RF.



Basis of preparation of financial statements



The accompanying financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP).



Use of estimates



The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities on the date of the financial statements, and the reported amounts of revenues and expenses during the audit period.  An example of an estimate is the useful lives of property, plant, and equipment.  Actual results could differ from those estimates.



Revenue recognition



The Company derives its revenues primarily from product sales, testing services, and from packaging and preservation services.  The Company recognizes revenue from product sales at the time of shipment of services.  Revenues are recognized as the services are performed.  The Company has no long-term sales contracts.



Cash and cash equivalents



The Company considers all highly liquid investments with a remaining maturity at the date of purchase/investment of three months or less to be cash equivalents.  Cash and cash equivalents comprise cash and cash on deposit with banks.



Credit risk



The Companys major customer is the Defense Department of the United States government.  Sales to the United States government represent approximately 79% of Company sales for the three months ended March 31, 2005.  No provision for uncollectible accounts has been established at March 31, 2005.















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Telesis Technology Corporation

Notes to Financial Statements



Property and equipment



Property and equipment are stated at cost, less accumulated depreciation.  The Company depreciates property and equipment over their estimated useful lives using the straight-line method.  The estimated useful lives of assets are as follows:



| | Buildings                                 | 40 years 
| | ----------------------------------------- | ---------
| | Furniture and fixtures                    | 10 years 
| | Computer and telecommunications equipment | 5-7 years





Foreign currency translation



The Company prepares financial statements using the United States dollar as the functional currency.  The financial statements required no translation of foreign currencies since none of the foreign operations had transactions during the financial statement periods.



Income taxes



Upon incorporation in June, 2002, the Company elected to be taxed as an S Corporation in which all items of income and expense and other tax attributes pass-through to the shareholders individual income tax returns.



Effective January 1, 2004, the Company elected out of the S Corporation income tax status, and elected to be taxed as a regular corporation.  Financial statements for periods subsequent to December 31, 2003 include a provision for income taxes due by the Company.



Note B  Inventories



Inventories consist of the cost of parts, components, material, labor and manufacturing overhead used in the performance of services for customers, and are stated at the lower of cost or market on an FIFO (first-in, first-out) basis.  Inventory transferred to the Company by its major stockholders was valued at replacement cost since historical cost was not available.



Note C  Property and equipment



Property and equipment consist of the following at March 31, 2005:



| | Land                              | $  90,000
| | --------------------------------- | ---------
| | Building                          | 443,033  
| | Furniture, fixtures and equipment | 85,483   
| |                                   | 618,516  
| | Less  Accumulated depreciation   | (18,493) 
| |                                   | $600,023 



Depreciation expense totaled $6,336 for the three months ended March 31, 2005.







12





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Telesis Technology Corporation

Notes to Financial Statements



Note D  Related party transactions



The Companys major stockholder transferred inventory items to the Company during the period.  The inventory was valued at replacement cost (since historical cost was unavailable) in the amount of $457,561.  The stockholder was credited with additional paid-in capital in the amount of $457,561 in exchange for the inventory.



The Companys major stockholder has signed a personal guarantee for the mortgage debt and line of credit of the Company as described in Notes E and F.



Note E  Notes Payable



The Company has a revolving line of credit with a commercial bank.  The line of credit established on November 20, 2003 is in the amount of $50,000.  Interest on the line is due monthly and is at a rate of 1.5% over the index rate (Citibank, N.A. New York base rate).  The amount outstanding at March 31, 2005 is $32,029.



Note F  Long-Term Debt



Long-term debt consists of the following at March 31, 2005:



|Real estate mortgage issued in the original amount of $250,500 payable at 6.00% interest.  The note is amortized over thirty years with monthly payments in the amount of $1,798.  The note is subject to an interest rate change based on 3% over the one year U.S. Treasury rate effective October 15, 2004.  The balance of the notes is due on October 15, 2014.  The note is secured by real estate. | $     245,848
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | -------------
|Real estate mortgage issued in the original amount of $88,000.  The note is due in twenty quarterly installments of $4,400 beginning on January 31, 2005, with a final payment due on October 31, 2009.  The mortgage was issued by the City of Superior, Nebraska.  The note is secured by real estate.                                                                                                  | 83,600       
|Total long-term debt                                                                                                                                                                                                                                                                                                                                                                                      | 329,448      
|Less  Current maturities                                                                                                                                                                                                                                                                                                                                                                                 | (34,648)     
|Long-term debt, net of current maturities                                                                                                                                                                                                                                                                                                                                                                 | $     294,800



The maturities of long-term debt are as follows:



| | 2005        | 34,648  
| | ----------- | --------
| | 2006        | 25,344  
| | 2007        | 25,871  
| | 2008        | 26,328  
| | 2009        | 27,816  
| | Later Years | 189,441 
| |             | $329,448









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Telesis Technology Corporation

Notes to Financial Statements



Note G  Public Stock Offering



On December 29, 2003, the Company conducted a private placement of common stock pursuant to Regulation D, Rule 504 of the Securities Act, as amended (the Securities Act).  This offering was registered in the State of Nevada pursuant to N.R.S. 90.480  Registration by Qualification on December 29, 2003.  Pursuant to this offering, the Company offered to sell a minimum of 350,000 shares with a maximum of 1,500,000 shares of its common stock at a price of $.08 per share.  On April 16, 2004, the Company completed the private offering of shares of common stock of the Company in accordance with Regulation D, Rule 504 of the Securities Act and the Registration by Qualification in the State of Nevada, whereby it sold 1,042,500 shares of common stock for an aggregate total of $83,822.



Note H  Preferred and Common stock



The Company is authorized to issue 20,000,000 shares of preferred stock at $.001 par value and 100,000,000 shares of common stock at $.001 par value.  As of December 31, 2004 the Company had issued 12,225,000 shares of common stock to the initial shareholders.  The initial shareholders have entered into an agreement with the Company that the 12,225,000 shares will not be sold for two years from the issuance date.



Note I  Sales



Sales consists of the following for the three months ended March 31, 2005:



Product sales to the United States government       
$   523,960

Product sales to commercial entities                       
137,267

| | $   
      661,227
| | ------------------

> 



Note J  Income Tax Expense



Income tax expense consists of the following for the quarter ended March 31, 2005:



Federal and state income tax:



Current

$

22,100



Deferred

2,000

$ 24,100



Current income taxes are based on the annualized taxable income for the year.  Deferred income taxes, resulting from timing differences in the recognition of expenses for tax and financial reporting purposes.













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Telesis Technology Corporation

Notes to Financial Statements



Note K  Employee Retirement Plan



The Company has adopted an employee retirement plan under which employees may defer a portion of their annual compensation pursuant to provisions of the Internal Revenue Code.  The Company can elect to contribute to the plan.  Substantially all employees who have completed at least one year of service are eligible to participate in the plan.  The Company has not elected to make a contribution to the plan for the quarter ended March 31, 2005.



Note L  Commitments



The Company entered into an agreement with the City of Superior, Nebraska to purchase a commercial building and ten acres of real estate with no interest financing.  As part of the agreement the Company has committed that it will have a minimum of five full-time employees with three of those employees being low to moderate income.  All of the employees will have a base salary of not less than $8.25 per hour plus benefits.  The commitment is to be fulfilled by the conclusion of the first year of operation.



Note M  Common Stock



On January 4, 2005, the Company issued 6,000,000 shares of its common stock to Hasit Vibhakar, an officer of the Company in exchange for a transfer of inventory valued at $463,561.  The issuance of common stock was issued under an exemption from the registration provisions of Section 5 of the Securities Act of 1933, as amended (the Act), as provided under Section 4(2) of the Act and the Common Stock shall be restricted securities that cannot be resold by the purchaser without subsequent registration under the Act or the applicability of a secondary transactional exemption from the registration requirements of the Act (e.g. subject to the safe harbor guidelines and resale limitations as provided under Rule 144 of the Act).





















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Item 2.

Managements Discussion and Analysis of Financial Condition and Results of Operations.





This filing contains forward-looking statements, which involve risks and uncertainties.  Our actual future results may differ materially from the results discussed in the forward-looking statements.  When used in this report, the words expects anticipates and estimates and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those expressed in any forward-looking statement made by us include, but are not limited to:

- our ability to finance our activities and maintain our financial liquidity;
- our ability to attract and retain qualified, knowledgeable employees;
- the impact of general economic conditions on our business;
- postponements, reductions, or cancellations in orders from customers;
- the limited number of potential customers for our products;
- the variability in gross margins on our products;
- our ability to design  and market new products successfully;
- our failure to acquire new customers in the future;
- deterioration of business and economic conditions in our markets;
- intensely competitive industry conditions with increasing price competition;
- the rate of growth in the aerospace and defense markets.





Overview



Telesis Technology Corporation is a diversified Aerospace & Defense Company which designs, tests, manufactures and markets semiconductor, electronic components and machined components and sub assemblies serving the aerospace and defense markets. Our defense industry products are used in specifically for the repair and maintenance of weapons systems, ground support, and equipment spares programs radar and electronic warfare equipment integrated into electronic systems for tactical aircraft, ships, ground systems, and missile systems.  The demand for products manufactured by us and used in the aerospace and defense industry has been growing at a fast pace during the last 2 years and is expected to continue to grow. This growth is attributable to an increase in demand for our products by the government and all prime contractors dealing with the government, as well as to our strategy to acquire market share by offering leading edge products.





Results of Operations



Telesis Technology Corporation results for the first quarter and three months ended March 31, 2005.



Sales revenue for the three months ended on March 31, 2005 was $ 661,226.00 compared with $ 348,127.00 for the same period ended a year earlier in 2004.  This was an increase of 90%.  Gross Profit for the three months ended on March 31, 2005
was $ 167,140.00 compared with $ 119,458.00 for the same period in 2004.



16





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This was an increase of 40%.  Telesis Technology Corporation reported a net income before income taxes for the three months ended March 31, 2005 of $ 65,692.00 compared with $ 51,048.00 for the same period in 2004.  This was an increase of 29%.



Total Assets for the three months ended on March 31, 2005 were reported at
$ 2,095,060.00 compared to $ 1,019,367.00 for the same period in 2004.  This was an increase of 106%  Total Liabilities for the three months ended March 31, 2005 were $ 670,024.00 compared to $ 287,682.00 which is an increase of 133%.





Liquidity and Capital Resources



Since inception, we have financed our operations primarily from the founder and his initial and ongoing capital investments in the company and internally generated funds.  For the three months ended March 31, 2005 shareholders equity was reported at $ 1,425,036.00.



The company has been able to pay its expenses and costs through profitable operations.  The company needs to raise additional funds through the sale of its common stock or borrowing in order to accelerate growth and maintain a competitive edge against our competitors by increasing R&D, Sales and New product introductions.  Our future liquidity will depend on numerous factors, including the extent to which our present and future products gain market acceptance, the costs of sales, marketing and manufacturing activities, the cost, timing and business management of current and potential acquisitions and contingent liabilities associated with such acquisitions, and the extent to which products under development are successfully developed.  If necessary, we may be required to raise additional capital in the future through one or more of the following: (1) sale of equity or debt securities; (2) obtaining new loans; or (3) sale of assets, products or marketing rights. There is no guarantee that additional capital will be available from these sources on acceptable terms, if at all, and certain of these sources may require approval by existing lenders.





Critical Accounting Policies



Our discussion and analysis of our financial conditions and results of operations are based upon our financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States. The preparation of financial statements requires managers to make estimates and disclosures on the date of the financial statements. On an on-going basis, we evaluate our estimates, including, but not limited to, those related to revenue recognition. We use authoritative pronouncements, historical experience and other assumptions as the basis for making judgments. Actual results could differ from those estimates. We believe that the following critical accounting policies affect our more significant judgments and estimates in the preparation of our financial statements.



Revenue recognition.  We generate our revenue through the sale of products and services.  Our policy is to recognize revenue when the applicable revenue recognition criteria have been met, which generally include the following:





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- Persuasive evidence of an arrangement exists;
- Delivery has occurred or services have been rendered;
- Price is fixed or determinable; and
- Collectibility and Fund Collections is reasonably assured



Revenue from the sale of products is generally recognized after both the goods are shipped to the customer and acceptance has been received, if required. Our products are specialized and made to order for our customers, who primarily consist of original equipment manufacturers (OEMs). Our products are shipped complete and ready to be incorporated into higher level assemblies by our customers. The terms of the customer arrangements generally pass title and risk of ownership to the customer at the time of shipment.



Recording revenue from the sale of products and services involves the use of cost accounting estimates and management judgment. We must make a determination at the time of sale whether the customer has the ability to make payments in accordance with arrangements. While we do utilize past payment history, and, to the extent available for new customers, public credit information in making our assessment, the determination of whether collections is reasonably assured is ultimately a judgment decision that must be made by management.



Allowance for Doubtful Accounts.  We maintain specific allowance for doubtful accounts receivable based on customer-specific allowances. Specific allowances are maintained for customers which are determined to have a high degree of collection risk based on such factors, among others, as: (i) the aging of the accounts receivable balance; (ii) the customers past payment experience; or (iii) a deterioration in the customers financial condition, evidenced by weak financial condition and/or continued poor operating results, reduced credit ratings, and/or a bankruptcy filing.  A considerable amount of judgment is required in assessing the collection of accounts receivables. Should any of the factors considered in determining the adequacy of the overall specific allowance change, an adjustment to the provision for doubtful accounts receivable may be necessary.



Inventory.  Inventories are stated at the lower of cost or market, cost being determined on the first-in, first-out method. We review the carrying cost of our inventories by product each quarter to determine the adequacy of our reserves for obsolescence. In accounting for inventories we must make estimates regarding the estimated net realizable value of our inventory. This estimate is based, in part, on our forecasts of future sales and age of the inventory.





Additional Factors That May Affect Future Results



Future operating results may be impacted by a number of factors that could cause actual results to differ materially from those stated herein, which reflect managements current expectations. These factors include:

- Industry-specific factors (including the reliance upon growth of the aerospace and defense market sectors, significant competition characterized by rapid technological change, new product development, product obsolescence, and significant price erosion over the life of a product);



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- our ability to timely develop and produce commercially viable products at competitive prices;
- our ability to produce products which meet the quality standards of both existing and potential new customers;
- our ability to accurately anticipate customer demand;
- the availability and cost of components and raw materials;
- the impact of worldwide economic and political conditions on our business; and
- the ability to integrate current and potential future acquisitions into our existing operations.



We believe that, to the extent that foreign sales are recognized, we may face increased risk associated with political and economic instability, compliance with foreign regulatory rules governing export requirements, tariffs and other trade barriers, differences in intellectual property protections, longer accounts receivable cycles, currency fluctuations and general trade restrictions. If any of these risks materialize, they could have a material adverse effect on our business, results of operations, and financial condition.



We have evaluated the credit exposure associated with conducting business with foreign customers and have concluded that such risk is acceptable with great due diligence. Nevertheless, any significant change in the economy or a deterioration in United States trade relations or the economic or political stability of foreign markets could have a material adverse effect on our business, results of operations, and financial condition.



Sales to foreign customers are invoiced in U.S. dollars. Accordingly, we currently do not engage in foreign currency hedging transactions.  In addition, should the relative value of the U.S. dollar in comparison to foreign currencies increase, the resulting increase in the price of our products to foreign customers could result in decreased sales which could have a material adverse impact on our business, results of operations, and financial condition.



We experience significant price competition and expect price competition in the sale of our products to remain intense. We cannot assure you that our competitors will not develop new technologies or enhancements to existing products or introduce new products that will offer superior price or performance features. We expect our competitors to offer new and existing products at prices necessary to gain or retain market share. Several of our competitors have substantial financial resources, which may enable them to withstand sustained price competition or a downturn in the pricing of their products in the future. Substantially all of our competitors have, and potential future competitors could have, substantially greater technical, marketing, distribution and other resources than we do and have, or could have, greater name recognition and market acceptance of their products and technologies.





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The markets in which we compete are characterized by rapidly changing technology and continuous improvements in products and services.  Our future success depends on our ability to enhance our current products and to develop and introduce, in a timely manner, new products that keep pace with technological developments, that meet or exceed industry standards, that compete effectively on the basis of price, performance and quality, that adequately address OEM customer, distributor customer and end-user customer requirements, and that achieve market acceptance.  We believe that to remain competitive in the future we will need to continue to develop new technologies, plant, facilities and products, which will require the investment of significant financial resources.  In the event our newly developed products are not timely developed or do not gain market acceptance, our business, results of operations and financial condition could be materially adversely affected.





Item 3.
Controls and Procedures



(a)

Evaluation of disclosure controls and procedures.  Based on the evaluation of the companys disclosure controls and procedures (as defined in Rules 13a-14 (c) and 15d-14 (c) under the Securities Exchange Act of 1934) as of a date within 90 days of the filing date of this Quarterly Report on Form 10-QSB, our (CEO) Chief Executive Officer and (CFO) Chief Financial Officer have concluded that our disclosure controls and procedures are designed to ensure that the information we are required to disclose in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms and are operating in an effective manner.

(b)

Changes in internal controls.  There were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their most recent evaluation.





















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PART II OTHER INFORMATION





Item 1.

Legal Proceedings



To the knowledge of Telesis Technology Corporations executive management and directors, the company is not party to any legal proceeding or litigation and none of its property is the subject of a pending legal proceeding and the executive officers and directors know of no other threatened or contemplated legal proceedings or litigation.  To the companys knowledge, there are no lawsuits nor were any lawsuits commenced against the company during the quarter ended March 31, 2005, nor did the company commence any lawsuits during the same period.



Item 2.

Changes in Securities and Use of Proceeds

UNREGISTERED SALE OF EQUITY SECURITIES

On January 4, 2005, the Company issued 6,000,000 shares of its common stock to Hasit Vibhakar, an officer of the Company, in exchange for a transfer of inventory valued at $463,561.44 USD. This issuance of common stock was issued under an exemption from the registration provisions of Section 5 of the Securities Act of 1933, as amended (the Act), as provided under Section 4(2) of the Act and the Common Stock shall be restricted securities that cannot be resold by the Purchaser without subsequent registration under the Act or the applicability of a secondary transactional exemption from the registration requirements of the Act (e.g. subject to the safe harbor guidelines and resale limitations as provided under Rule 144 of the Act). Hasit Vibhakar is currently the President of the Company. No general solicitation was used. Hasit Vibhakar is an accredited investor who negotiated the terms of the agreement directly with the non-interested officers of the Company. Hasit Vibhakar acknowledged in writing that these shares of common stock have restrictions on their transfer. The certificates to be issued to Hasit Vibhakar, pursuant to this transaction, will bear a restrictive legend and stop-transfer instructions will be placed with the Company's transfer agent.

Item 3.

Defaults upon Senior Securities



Not Applicable.



Item 4.

Submission of Matters to a Vote of Security Holders



No matters were put forward to a vote of the security holders of the Company this quarter.



Item 5.

Other Information



Not Applicable.





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Item 6.

Exhibits and Reports

All Exhibits or Form 8-K filed in the first quarter ended March 31, 2005 and incorporated herein by reference.

Exhibits

|31.1 | Certification of Chief Executive Officer Pursuant to 302 of the Sarbanes-Oxley Act of 2002.
|---- | -------------------------------------------------------------------------------------------
|31.2 | Certification of Director of Finance Pursuant to 302 of the Sarbanes-Oxley Act of 2002.    
|32.1 | Certification of Chief Executive Officer Pursuant to 906 of the Sarbanes-Oxley Act of 2002.
|32.2 | Certification of Director of Finance Pursuant to 906 of the Sarbanes-Oxley Act of 2002.    



(1)

Previously filed with the Securities and Exchange Commission as an exhibit to the Companys Form 8-K dated January 5, 2005.

(2)

Previously filed with the Securities and Exchange Commission as an exhibit to the Companys Form 8-K dated February 2, 2005.

(3)

Previously filed with the Securities and Exchange Commission as an exhibit to the Companys Form 8-K dated February 9, 2004.

(4)

Previously filed with the Securities and Exchange Commission as an exhibit to the Companys Form 10QSB dated February 11, 2005.

(5)

Previously filed with the Securities and Exchange Commission as an exhibit to the Companys Form 8-K dated February 17, 2005.

(6)

Previously filed with the Securities and Exchange Commission as an exhibit to the Companys Form 10QSB/A dated March 18, 2005.

(7)

Previously filed with the Securities and Exchange Commission as an exhibit to the Companys Form 8-K dated March 24, 2005.

(8)

Previously filed with the Securities and Exchange Commission as an exhibit to the Companys Form 8-K dated March 28, 2005.

(9)

Previously filed with the Securities and Exchange Commission as an exhibit to the Companys Form 10KSB dated March 30, 2005.































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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.



|      | Telesis Technology Corporation                               
|----- | -------------------------------------------------------------
|      |                                                              
|      |                                                              
|Date: | May 9th, 2005.                                               
|      | Hasit Vibhakar                                               
|      | Chairman of the Board, President 
and Chief Executive Officer
|      |                                                              
|      |                                                              





























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Exhibit 31.1



CERTIFICATION





I, Hasit Vibhakar, Chief Executive Officer, certify that:



1.       
  I have reviewed this quarterly report on Form 10-QSB of Telesis Technology

Corporation;



2.         
Based on my knowledge, this quarterly report does not contain any

untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances

under which such statements were made, not misleading with respect to

the period covered by this quarterly report;



3.        
 Based on my knowledge, the financial statements, and other financial

information included in this quarterly report, fairly present in all

material respects the financial condition, results of operations and

cash flows of the registrant as of, and for, the periods presented in

this quarterly report;



4.         
The registrant's other certifying officer and I am responsible for

establishing and maintaining disclosure controls and procedures (as

defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal

control over financial reporting (as defined in Exchange Act Rules 13a

- 15(f) and 15d - 15(f)) for the registrant and have:



a)         
Designed such disclosure controls and procedures, or caused such

disclosure controls and procedures to be designed under our

supervision, to ensure that material information relating to the

registrant, including its consolidated subsidiaries, is made known to

us by others within those entities, particularly during the period in

which this quarterly report is being prepared;



b)        
Designed such internal control over financial reporting, or caused such



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internal control over financial reporting to be designed under our

supervision, to provide reasonable assurance regarding the reliability

of financial reporting and the preparation of financial statements for

external purposes in accordance with generally accepted accounting

principles;



c)         
Evaluated the effectiveness of the registrant's disclosure controls and

procedures and presented in this report our conclusions about the

effectiveness of the disclosure controls and procedures, as of the end

of the period covered by this report based on such evaluation; and



d)      
   Disclosed in this report any change in the registrant's internal

control over financial reporting that occurred during the registrant's

most recent fiscal quarter (the registrant's fourth fiscal quarter in

the case of an annual report) that has materially affected, or is

reasonably likely to materially affect, the registrant's internal

control over financial reporting; and



5.         
The registrant's other certifying officer and I have disclosed, based

on our most recent evaluation of internal control over financial

reporting, to the registrant's auditors and the audit committee of the

registrant's board of directors (or persons performing the equivalent

function):



a)         
All significant deficiencies and material weaknesses in the design or

operation of internal control over financial reporting which are

reasonably likely to adversely affect the registrant's ability to

record, process, summarize and report financial information; and



b)         
Any fraud, whether or not material, that involves management or other

employees who have a significant role in the registrant's internal

control over financial reporting.



/s/ Hasit Vibhakar

Name:   Hasit Vibhakar

Title:     Chairman, CEO & President

Date:

May 9th, 2005.









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Exhibit 31.2



CERTIFICATION







I, Erwin Goodwin, Chief Financial Officer, certify that:



1.         
I have reviewed this quarterly report on Form 10-QSB of Telesis Technology

Corporation;



2.         
Based on my knowledge, this quarterly report does not contain any

untrue statement of a material fact or omit to state a material fact

necessary to make the statements made, in light of the circumstances

under which such statements were made, not misleading with respect to

the period covered by this quarterly report;



3.         
Based on my knowledge, the financial statements, and other financial

information included in this quarterly report, fairly present in all

material respects the financial condition, results of operations and

cash flows of the registrant as of, and for, the periods presented in

this quarterly report;



4.         
The registrant's other certifying officer and I am responsible for

establishing and maintaining disclosure controls and procedures (as

defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal

control over financial reporting (as defined in Exchange Act Rules 13a

- 15(f) and 15d - 15(f)) for the registrant and have:



a)         
Designed such disclosure controls and procedures, or caused such

disclosure controls and procedures to be designed under our

supervision, to ensure that material information relating to the

registrant, including its consolidated subsidiaries, is made known to

us by others within those entities, particularly during the period in

which this quarterly report is being prepared;



b)         
Designed such internal control over financial reporting, or caused such



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internal control over financial reporting to be designed under our

supervision, to provide reasonable assurance regarding the reliability

of financial reporting and the preparation of financial statements for

external purposes in accordance with generally accepted accounting

principles;



c)         
Evaluated the effectiveness of the registrant's disclosure controls and

procedures and presented in this report our conclusions about the

effectiveness of the disclosure controls and procedures, as of the end

of the period covered by this report based on such evaluation; and



d)         
Disclosed in this report any change in the registrant's internal

control over financial reporting that occurred during the registrant's

most recent fiscal quarter (the registrant's fourth fiscal quarter in

the case of an annual report) that has materially affected, or is

reasonably likely to materially affect, the registrant's internal

control over financial reporting; and



5.         
The registrant's other certifying officer and I have disclosed, based

on our most recent evaluation of internal control over financial

reporting, to the registrant's auditors and the audit committee of the

registrant's board of directors (or persons performing the equivalent

function):



a)         
All significant deficiencies and material weaknesses in the design or

operation of internal control over financial reporting which are

reasonably likely to adversely affect the registrant's ability to

record, process, summarize and report financial information; and



b)         
Any fraud, whether or not material, that involves management or other

employees who have a significant role in the registrant's internal

control over financial reporting.



/s/ Erwin Goodwin

Name:   Erwin Goodwin

Title:     Chief Financial Officer (CFO)

Date:    May 9th, 2005.





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Exhibit 32.1









CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002







In connection with the Quarterly Report of Telesis Technology Corporation (the
"Company") on Form 10-QSB for the three month period ended March 31, 2005 as filed with the Securities and Exchange Commission on the date hereof
(the "Report"), I, Hasit Vibhakar, Chief Executive Officer of the Company,
certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

1. the Report fully complies with the requirement of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934: and



2. the information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the Company.











/s/ Hasit Vibhakar

Hasit Vibhakar

Chief Executive Officer

May 9th, 2005.









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Exhibit 32.2











CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350, AS ADOPTED

PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002







In connection with the Quarterly Report of Telesis Technology Corporation (the
"Company") on Form 10-QSB for the three month period ended March 31, 2005 as filed with the Securities and Exchange Commission on the date hereof
(the "Report"), I, Erwin Goodwin, Chief Financial Officer of the Company,
certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:



1. the Report fully complies with the requirement of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934: and



2. the information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the Company.







/s/ Erwin Goodwin

Erwin Goodwin

Chief Financial Officer

May 9th, 2005.











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