----

| (Mark One) |                                                                                                                                                                                                                                                       |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|            |                                                                                                                                                                                                                                                       |
| x               | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                                                                                                    |
|            |                                                                                                                                                                                                                                                       |
|            | For the Quarter Ended April 30, 2011                                                                                                                                                                                                                       |
|            |                                                                                                                                                                                                                                                       |
|            | or                                                                                                                                                                                                                                                         |
|            |                                                                                                                                                                                                                                                       |
| o               | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                                                                                                   |
|            |                                                                                                                                                                                                                                                       |
|            | For the transition period from                                      to |

----

| Nevada                                                 |   | 88-0490890          |
|--------------------------------------------------------|--------|---------------------|
| (State or Other Jurisdiction                           |   | (I.R.S. Employer    |
| of Incorporation or Organization)                      |   | Identification No.) |
|                                                   |   |                |
| 4894 Lone Mountain #168, Las Vegas, Nevada             |   | 89130               |
| (Address of Principal Executive Offices)               |   | (Zip Code)          |
|                                                   |
| (702) 425-7376                                    |
| (Issuer’s Telephone Number, Including Area Code) |

----

----

|                                                                                                                          |   | Page No. |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|---------------|--------|
| PART I. FINANCIAL INFORMATION                                                                                                 |   | 3             |   |
|                                                                                                                          |   |          |   |
| ITEM I – Unaudited Financial Statements                                                                                 |   | 3             |   |
|                                                                                                                          |   |          |   |
| Consolidated Balance Sheets as of April 30, 2011 and July 31, 2010 (Unaudited)                                                |   |          | 4      |   |
|                                                                                                                          |   |          |   |   |
| Consolidated Statements of Operations for the Three and Nine Months Ended April 30, 2011 and 2010 (Unaudited)                 |   |          | 5      |   |
|                                                                                                                          |   |          |   |   |
| Consolidated Statement of Comprehensive Income (Loss) for the Three and Nine Months Ended April 30, 2011 and 2010 (Unaudited) |   |          | 6      |   |
|                                                                                                                          |   |          |   |   |
| Consolidated Statements of Cash Flows for the Nine Months Ended April 30, 2011 and 2010 (Unaudited)                           |   |          | 7      |   |
|                                                                                                                          |   |          |   |   |
| Consolidated Statement of Stockholders Deficiency (Unaudited)                                                                 |   |          | 8      |   |
|                                                                                                                          |   |          |   |   |
| Notes to Unaudited Consolidated Financial Statements                                                                          |   |          | 9      |   |
|                                                                                                                          |   |          |   |   |
| ITEM 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations.                               |   |          | 21     |   |
|                                                                                                                          |   |          |   |   |
| ITEM 3 – Quantitative and Qualitative Disclosures About Market Risk                                                     |   |          | 26     |   |
|                                                                                                                          |   |          |   |   |
| ITEM 4T– Controls and Procedures.                                                                                       |   |          | 26     |   |
|                                                                                                                          |   |          |   |   |
| PART II. OTHER INFORMATION                                                                                                    |   |          | 26     |   |
|                                                                                                                          |   |          |   |   |
| ITEM 6 - Exhibits                                                                                                             |   |          | 28     |   |

----

----

| Li-ion Motors Corp.             |
|---------------------------------|
| (Formerly EV Innovations, Inc.) |
| Consolidated Balance Sheets     |
| (unaudited)                     |

|                                                                                          |   | April 30, |        |   | July 31, |   |
|-----------------------------------------------------------------------------------------------|--------|----------------|-------------|--------|---------------|--------|
|                                                                                          |   | 2011           |        |   | 2010          |   |
| Assets                                                                                        |   |           |        |   |          |   |
|                                                                                          |   |           |        |   |          |   |
| Current assets:                                                                               |   |           |        |   |          |   |
|                                                                                          |   |           |        |   |          |   |
| Cash and cash equivalents                                                                     |   | $              | 335         |   |          | $      | 2,113 |   |
| Note receivable, net of allowance for doubtful account of $849,317 and $841,207, respectively |   |           | 1,824,315   |   |          |   | - |   |
| Inventories                                                                                   |   |           | 390,765     |   |          |   | 35,000 |   |
| Employee advances                                                                             |   |           | 463         |   |          |   | 10,000 |   |
| Other current assets                                                                          |   |           | 91,004      |   |          |   | 51,000 |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Total current assets                                                                          |   |           | 2,306,882   |   |          |   | 98,113 |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Property and equipment, net                                                                   |   |           | 2,009,528   |   |          |   | 1,919,681 |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Deferred patent and trademark costs                                                           |   |           | 39,125      |   |          |   | 24,258 |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Total assets                                                                                  |   | $              | 4,355,535   |   |          | $      | 2,042,052 |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Liabilities and Stockholders' Equity (Deficiency)                                             |   |           |        |   |          |   |   |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Current liabilities:                                                                          |   |           |        |   |          |   |   |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Bank overdrafts                                                                               |   | $              | -           |   |          | $      | 14,104 |   |
| Accounts payable and accrued expenses                                                         |   |           | 986,301     |   |          |   | 1,296,734 |   |
| Current portion of long-term debt                                                             |   |           | 73,983      |   |          |   | 22,444 |   |
| Customer deposits                                                                             |   |           | 102,188     |   |          |   | 100,000 |   |
| Deferred revenue                                                                              |   |           | 383,333     |   |          |   | 501,288 |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Total current liabilities                                                                     |   |           | 1,545,805   |   |          |   | 1,934,570 |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Long-term liabilities:                                                                        |   |           |        |   |          |   |   |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Long-term debt, less current portion                                                          |   |           | 934,334     |   |          |   | 5,943,056 |   |
| Long-term deferred revenue, less current portion                                              |   |           | 1,414,583   |   |          |   | 83,333 |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Total liabilities                                                                             |   |           | 3,894,722   |   |          |   | 7,960,959 |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Commitments and contingencies                                                                 |   |           | -           |   |          |   | - |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Stockholders' deficiency                                                                      |   |           |        |   |          |   |   |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Preferred stock, $.001 par value, 5,000,000 shares authorized, 0 issued and outstanding       |   |           | -           |   |          |   | - |   |
| Common stock, $.001 par value, 100,000,000 shares authorized, 32,088,513 and                  |   |           |        |   |          |   |   |   |
| 30,047,301 issued and outstanding at April 30, 2011 and July 31, 2010, respectively.          |   |           | 32,088      |   |          |   | 30,047 |   |
|                                                                                          |   |           |        |   |          |   |   |   |
| Additional paid-in capital                                                                    |   |           | 62,613,779  |   |          |   | 56,758,511 |   |
| Accumulated deficit                                                                           |   |           | (62,176,485 | )      |          |   | (62,699,029 | ) |
| Accumulated other comprehensive income                                                        |   |           | (8,569      | )      |          |   | (8,436 | ) |
|                                                                                          |   |           |        |   |          |   |   |   |
| Stockholders' equity (deficiency)                                                             |   |           | 460,813     |   |          |   | (5,918,907 | ) |
|                                                                                          |   |           |        |   |          |   |   |   |
| Total liabilities and stockholders' equity (deficiency)                                       |   | $              | 4,355,535   |   |          | $      | 2,042,052 |   |

----

| Li-ion Motors Corp.                   |
|---------------------------------------|
| (Formerly EV Innovations, Inc.)       |
| Consolidated Statements of Operations |
| (unaudited)                           |

|                                                                                     |   | For the Three Months Ended |       |   | For the Nine Months Ended |   |
|------------------------------------------------------------------------------------------|--------|------------------------------------------------|------------|--------|-----------------------------------------------|--------|
|                                                                                     |   | April 30,                                 |       |   | April 30,                                |   |
|                                                                                     |   | 2011                                           |       |   | 2010                                          |   |   | 2011 |   |   | 2010 |   |
| Sales:                                                                                   |   | $                                              | 2,041      |   |                                          | $      | 358,596 |   |   | $ | 6,513 |   |   | $ | 484,505 |   |
|                                                                                     |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Costs and expenses:                                                                      |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Cost of sales                                                                            |   |                                           | 587        |   |                                          |   | 169,246 |   |   |   | 17,240 |   |   |   | 334,743 |   |
| General and administrative                                                               |   |                                           | 420,563    |   |                                          |   | 275,731 |   |   |   | 1,302,933 |   |   |   | 1,022,295 |   |
| Research and development                                                                 |   |                                           | (81,712    | )      |                                          |   | 400,432 |   |   |   | 947,493 |   |   |   | 1,057,206 |   |
|                                                                                     |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Total costs and expenses                                                                 |   |                                           | 339,438    |   |                                          |   | 845,409 |   |   |   | 2,267,666 |   |   |   | 2,414,244 |   |
|                                                                                     |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Loss from operations                                                                     |   |                                           | (337,397   | )      |                                          |   | (486,813 | ) |   |   | (2,261,153 | ) |   |   | (1,929,739 | ) |
|                                                                                     |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Other (expenses) income:                                                                 |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                                         |   |                                           | (105,505   | )      |                                          |   | (125,704 | ) |   |   | (408,226 | ) |   |   | (295,423 | ) |
| Other income                                                                             |   |                                           | 388,945    |   |                                          |   | 70,041 |   |   |   | 3,191,923 |   |   |   | 158,084 |   |
|                                                                                     |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) before provision for (benefit from) income taxes                     |   |                                           | (53,957    | )      |                                          |   | (542,476 | ) |   |   | 522,544 |   |   |   | (2,067,078 | ) |
|                                                                                     |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Provision for (benefit from) income taxes                                                |   |                                           | -          |   |                                          |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                     |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss)                                                                      |   |                                           | (53,957    | )      |                                          |   | (542,476 | ) |   |   | 522,544 |   |   |   | (2,067,078 | ) |
|                                                                                     |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Less: Net earnings (loss) attributable to noncontrolling interest                        |   |                                           | -          |   |                                          |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                     |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) attributable to Li-ion Motors Corp                                   |   | $                                              | (53,957    | )      |                                          | $      | (542,476 | ) |   | $ | 522,544 |   |   | $ | (2,067,078 | ) |
|                                                                                     |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share - basic and diluted:                                           |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per common share attributable to Li-ion Motors Corp. common shareholders |   | $                                              | (0.00      | )      |                                          | $      | (0.04 | ) |   | $ | 0.02 |   |   | $ | (0.18 | ) |
|                                                                                     |   |                                           |       |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average number of shares outstanding - basic and diluted                        |   |                                           | 30,299,586 |   |                                          |   | 13,670,385 |   |   |   | 30,129,548 |   |   |   | 11,725,331 |   |

----

| Li-ion Motors Corp.                                   |
|-------------------------------------------------------|
| (Formerly EV Innovations, Inc.)                       |
| Consolidated Statement of Comprehensive Income (Loss) |
| (unaudited)                                           |

|                                                                |   | For the Three Months Ended |    |   | For the Nine Months Ended |   |
|---------------------------------------------------------------------|--------|------------------------------------------------|---------|--------|-----------------------------------------------|--------|
|                                                                |   | April 30,                                 |    |   | April 30,                                |   |
|                                                                |   | 2011                                           |    |   | 2010                                          |   |   | 2011 |   |   | 2010 |   |
| Net earnings (loss)                                                 |   | $                                              | (53,957 | )      |                                          | $      | (542,476 | ) |   | $ | 522,544 |   |   | $ | (2,067,078 | ) |
|                                                                |   |                                           |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income                                          |   |                                           |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Currency translation adjustment                                     |   |                                           | 44      |   |                                          |   | - |   |   |   | 44 |   |   |   | - |   |
|                                                                |   |                                           |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                         |   |                                           | (53,912 | )      |                                          |   | (542,476 | ) |   |   | 522,588 |   |   |   | (2,067,078 | ) |
|                                                                |   |                                           |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss) attributable to noncontrolling interest |   |                                           | -       |   |                                          |   | - |   |   |   | - |   |   |   | - |   |
|                                                                |   |                                           |    |   |                                          |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income (loss) attributable to Li-ion Motors Corp      |   | $                                              | (53,912 | )      |                                          | $      | (542,476 | ) |   | $ | 522,588 |   |   | $ | (2,067,078 | ) |

----

|                                                                                                 |   | For the Nine Months Ended |       |
|------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|------------|
|                                                                                                 |   | April 30,                                |       |
|                                                                                                 |   | 2011                                          |       |   | 2010 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                                |   |                                          |       |   |   |   |
| Net earnings (loss)                                                                                  |   | $                                             | 522,544    |   |   | $ | (2,067,078 | ) |
| Adjustments to reconcile net earnings (loss)  to net cash utilized by operating activities |   |                                          |       |   |   |   |   |   |
| Depreciation                                                                                         |   |                                          | 50,857     |   |   |   | 61,389 |   |
| Provision for doubtful accounts                                                                      |   |                                          | 8,110      |   |   |   | - |   |
| Interest income                                                                                      |   |                                          | (74,315    | ) |   |   | - |   |
| Licensing fees                                                                                       |   |                                          | (160,417   | ) |   |   | - |   |
| Increase (decrease) in cash flows from changes in operating assets and liabilities                   |   |                                          |       |   |   |   |   |   |
| Non-cash stock based compensation                                                                    |   |                                          | -          |   |   |   | 966,500 |   |
| Accounts receivable, net                                                                             |   |                                          | -          |   |   |   | 13,522 |   |
| Inventories                                                                                          |   |                                          | (355,765   | ) |   |   | 119,231 |   |
| Employee advances                                                                                    |   |                                          | 9,537      |   |   |   | (13,778 | ) |
| Prepaid expenses and other current assets                                                            |   |                                          | (40,004    | ) |   |   | (38,257 | ) |
| Deferred patent and trademark costs                                                                  |   |                                          | (14,867    | ) |   |   |   |   |
| Bank overdraft                                                                                       |   |                                          | (14,104    | ) |   |   | - |   |
| Accounts payable and accrued expenses                                                                |   |                                          | (310,433   | ) |   |   | 325,417 |   |
| Customer deposits                                                                                    |   |                                          | 2,188      |   |   |   | (141,199 | ) |
| Deferred revenue                                                                                     |   |                                          | (376,287   | ) |   |   | (1,890 | ) |
| Net cash provided by (used in) operating activities                                                  |   |                                          | (752,956   | ) |   |   | (776,143 | ) |
|                                                                                                 |   |                                          |       |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES:                                                                |   |                                          |       |   |   |   |   |   |
| Additions to property and equipment                                                                  |   |                                          | (140,704   | ) |   |   | (6,716 | ) |
| Net cash used in investing activities                                                                |   |                                          | (140,704   | ) |   |   | (6,716 | ) |
|                                                                                                 |   |                                          |       |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                                |   |                                          |       |   |   |   |   |   |
| Advances on promissory note                                                                          |   |                                          | (176,959   | ) |   |   | - |   |
| Payments received on promissory note                                                                 |   |                                          | 168,849    |   |   |   | - |   |
| Proceeds from issuance of debt                                                                       |   |                                          | 2,002,423  |   |   |   | 1,321,963 |   |
| Payments on debt                                                                                     |   |                                          | (1,102,298 | ) |   |   | (27,530 | ) |
| Advances from related parties                                                                        |   |                                          | -          |   |   |   | 1,134,895 |   |
| Payments to related parties                                                                          |   |                                          | -          |   |   |   | (1,632,383 | ) |
| Net cash provided by (used in) financing activities                                                  |   |                                          | 892,015    |   |   |   | 796,945 |   |
|                                                                                                 |   |                                          |       |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                                         |   |                                          | (133       | ) |   |   | - |   |
|                                                                                                 |   |                                          | -          |   |   |   |   |   |
| CHANGE IN CASH AND CASH EQUIVALENTS                                                                  |   |                                          |       |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                 |   |                                          | (1,778     | ) |   |   | 14,086 |   |
| Cash and cash equivalents at beginning of period                                                     |   |                                          | 2,113      |   |   |   | 5,182 |   |
|                                                                                                 |   |                                          |       |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                           |   | $                                             | 335        |   |   | $ | 19,268 |   |
|                                                                                                 |   |                                          |       |   |   |   |   |   |
| SUPPLEMENTAL CASH FLOW DISCLOSURES                                                                   |   |                                          |       |   |   |   |   |   |
| Cash paid during the period for:                                                                     |   |                                          |       |   |   |   |   |   |
| Interest                                                                                             |   | $                                             | 321,407    |   |   | $ | 30,767 |   |
| Income taxes                                                                                         |   | $                                             | -          |   |   | $ | - |   |
|                                                                                                 |   |                                          |       |   |   |   |   |   |
| SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES                                             |   |                                          |       |   |   |   |   |   |
| Shares issued for related party advances                                                             |   | $                                             | -          |   |   | $ | 966,500 |   |
| Shares issued for debt                                                                               |   | $                                             | 5,857,309  |   |   |   |   |   |
| Accrued expenses transferred to long-term debt                                                       |   | $                                             | -          |   |   | $ | 32,201 |   |

----

| Li-ion Motors Corp.                                         |
|-------------------------------------------------------------|
| (Formerly EV Innovations, Inc.)                             |
| Consolidated Statement of Stockholders' Equity (Deficiency) |
| For the Periods Ended As Noted                              |
| (unaudited)                                                 |

|                                            |   | Number ofCommon Shares |       |   | Common Shares$0.01Par Value |   |   | Additional Paid inCapital |   |   | AccumulatedDeficit |   |   | Accumulated OtherComprehensiveIncome (Loss) |        |   | ComprehensiveIncome (Loss) |   |    | Total  |   |
|------------------------------------------------------|--------|----------------------------------|------------|--------|---------------------------------------|--------|--------|-------------------------------------|--------|--------|--------------------|--------|--------|-------------------------------------------------------|-------------|--------|---------------------------------|--------|---------|--------|--------|
|                                                 |   |                             |       |   |                                  |   |   |                                |   |   |               |   |   |                                                  |        |   |                            |   |    |   |   |
| Balance - August 1, 2009                             |   |                             | 15,112,302 |   |                                  |   | 15,112 |                                |   |   | 55,736,946         |   |   |                                                  | (58,765,425 | )      |                            |   | (13,413 | )      |   |   |   |   |   | (3,026,780 | ) |
| Exercise of stock options                            |   |                             | 685,000    |   |                                  |   | 685    |                                |   |   | 615,815            |   |   |                                                  | -           |   |                            |   | -       |   |   |   |   |   |   | 616,500 |   |
| Common stock issued as collateral on loan            |   |                             | 3,749,999  |   |                                  |   | 3,750  |                                |   |   | (3,750             | )      |   |                                                  | -           |   |                            |   | -       |   |   |   |   |   |   | - |   |
| Common stock issued as collateral on loan            |   |                             | 10,000,000 |   |                                  |   | 10,000 |                                |   |   | (10,000            | )      |   |                                                  | -           |   |                            |   | -       |   |   |   |   |   |   | - |   |
| Exercise of stock options                            |   |                             | 500,000    |   |                                  |   | 500    |                                |   |   | 349,500            |   |   |                                                  |        |   |                            |   |    |   |   |   |   |   |   | 350,000 |   |
| Issuance of non-employee stock options               |   |                             | -          |   |                                  |   | -      |                                |   |   | 70,000             |   |   |                                                  | -           |   |                            |   | -       |   |   |   |   |   |   | 70,000 |   |
| Foreign currency translation                         |   |                             | -          |   |                                  |   | -      |                                |   |   | -                  |   |   |                                                  | -           |   |                            |   | 4,977   |   |   | $ | 4,977 |   |   |   | 4,977 |   |
| Net Loss                                             |   |                             | -          |   |                                  |   | -      |                                |   |   | -                  |   |   |                                                  | (3,933,604  | )      |                            |   | -       |   |   |   | (3,933,604 | ) |   |   | (3,933,604 | ) |
| Comprehensive loss                                   |   |                             |       |   |                                  |   |   |                                |   |   |               |   |   |                                                  |        |   |                            |   |    |   |   | $ | (3,928,627 | ) |   |   | - |   |
|                                                 |   |                             |       |   |                                  |   |   |                                |   |   |               |   |   |                                                  |        |   |                            |   |    |   |   |   |   |   |   |   |   |   |
| Balance - July 31, 2010                              |   |                             | 30,047,301 |   |                                  | $      | 30,047 |                                |   | $      | 56,758,511         |   |   | $                                                     | (62,699,029 | )      |                            | $      | (8,436  | )      |   |   |   |   |   | $ | (5,918,907 | ) |
|                                                 |   |                             |       |   |                                  |   |   |                                |   |   |               |   |   |                                                  |        |   |                            |   |    |   |   |   |   |   |   |   |   |   |
| Issuance of stock for conversion of promissory notes |   |                             | 2,041,212  |   |                                  |   | 2,041  |                                |   |   | 5,855,268          |   |   |                                                  |        |   |                            |   |    |   |   |   |   |   |   |   | 5,857,309 |   |
| Foreign currency translation                         |   |                             | -          |   |                                  |   | -      |                                |   |   | -                  |   |   |                                                  | -           |   |                            |   | (133    | )      |   | $ | (133 | ) |   |   | (133 | ) |
| Net earnings                                         |   |                             | -          |   |                                  |   | -      |                                |   |   | -                  |   |   |                                                  | 522,544     |   |                            |   | -       |   |   |   | 522,544 |   |   |   | 522,544 |   |
| Comprehensive income                                 |   |                             |       |   |                                  |   |   |                                |   |   |               |   |   |                                                  |        |   |                            |   |    |   |   | $ | 522,411 |   |   |   | - |   |
|                                                 |   |                             |       |   |                                  |   |   |                                |   |   |               |   |   |                                                  |        |   |                            |   |    |   |   |   |   |   |   |   |   |   |
| Balance - April 30, 2011                             |   |                             | 32,088,513 |   |                                  | $      | 32,088 |                                |   | $      | 62,613,779         |   |   | $                                                     | (62,176,485 | )      |                            | $      | (8,569  | )      |   |   |   |   |   | $ | 460,813 |   |

----

----

----

|                      |   |   |   |   | Assets at Fair Value as of April 30, 2011 and July 31, 2010 Using |   |
|---------------------------|--------|--------|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|--------|
|                      |   |   |   |   | Quoted Prices inActivated Markets forIdentical Asssets                                                    |   |   | Significant OtherObservable Inputs |   |   | SignificantObservableInputs |   |
|                      |   | Total  |   |   | (Level 1)                                                                                                                     |   |   | (Level 2) |   |   | (Level 2) |   |
| April 30, 2011            |   |   |   |   |                                                                                                                               |   |   |   |   |   |   |   |
| Cash and Cash Equivalents |   | $      | 335    |   |                                                                                                                               | $      | 335 |   |   | $ | - |   |   | $ | - |   |
|                      |   |   |   |   |                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| July 31, 2010             |   |   |   |   |                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents |   | $      | 2,113  |   |                                                                                                                               | $      | 2,113 |   |   | $ | - |   |   | $ | - |   |

----

|            |   | April 30, |    |   | July 31, |   |
|-----------------|--------|----------------|---------|--------|---------------|--------|
|            |   | 2011           |    |   | 2010          |   |
| Raw Materials   |   | $              | 1,213   |   |          | $      | - |   |
| Work in Process |   |           | 354,552 |   |          |   | - |   |
| Finished Goods  |   |           | 35,000  |   |          |   | 35,000 |   |
|            |   | $              | 390,765 |   |          | $      | 35,000 |   |

----

|                                 |   | April 30, |      |   | July 31, |   |
|--------------------------------------|--------|----------------|-----------|--------|---------------|--------|
|                                 |   | 2011           |      |   | 2010          |   |
| Building and Improvements            |   | $              | 1,287,001 |   |          | $      | 1,287,001 |   |
| Equipment and Furniture and Fixtures |   |           | 328,662   |   |          |   | 198,781 |   |
| Vehicles                             |   |           | 98,829    |   |          |   | 66,429 |   |
| Software Costs                       |   |           | 28,913    |   |          |   | 28,913 |   |
| Land                                 |   |           | 700,000   |   |          |   | 700,000 |   |
|                                 |   |           | 2,443,405 |   |          |   | 2,281,124 |   |
|                                 |   |           |      |   |          |   |   |   |
| Less Accumulated Depreciation        |   |           | (433,877  | )      |          |   | (361,443 | ) |
| Net Property and Equipment           |   | $              | 2,009,528 |   |          | $      | 1,919,681 |   |

|                    |   | April 30, |   |   | July 31, |   |
|-------------------------|--------|----------------|--------|--------|---------------|--------|
|                    |   | 2011           |   |   | 2010          |   |
|                    |   |           |   |   |          |   |
| Retainers               |   | $              | 880    |   |          | $      | 7,500 |   |
| Deferred Warranty Asset |   |           | 8,576  |   |          |   | 25,594 |   |
| Prepaid Expenses        |   |           | 81,548 |   |          |   | 17,906 |   |
|                    |   |           |   |   |          |   |   |   |
| Total                   |   | $              | 91,004 |   |          | $      | 51,000 |   |

|                                        |   | April 30, |    |   | July 31, |   |
|---------------------------------------------|--------|----------------|---------|--------|---------------|--------|
|                                        |   | 2011           |    |   | 2010          |   |
|                                        |   |           |    |   |          |   |
| Accounts Payable                            |   | $              | 728,096 |   |          | $      | 599,518 |   |
| Accounts Payable - Related Parties          |   |           | 16,383  |   |          |   | 63,325 |   |
| Wages, Paid Leave and Payroll Related Taxes |   |           | 168,346 |   |          |   | 407,884 |   |
| Accrued Interest                            |   |           | 12,066  |   |          |   | 114,619 |   |
| Other                                       |   |           | 61,410  |   |          |   | 111,388 |   |
|                                        |   |           |    |   |          |   |   |   |
| Total                                       |   | $              | 986,301 |   |          | $      | 1,296,734 |   |

----

|                                                                                                                                                                                  |   | April 30, |      |   | July 31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|-----------|--------|---------------|--------|
|                                                                                                                                                                                  |   | 2011           |      |   | 2010          |   |
| 5% Note payable to Bayview Loan Servicing, LLC, payable in monthly installments of $5,349 including interest, collateralized by real property due in full on or before March 2038 (1) |   | $              | 945,505   |   |          | $      | 953,437 |   |
|                                                                                                                                                                                  |   |           |      |   |          |   |   |   |
| 10% Note payable to Starglow Asset, Inc. (formerly Crystal Capital Ventures, Inc.) paid in full (2)                                                                                   |   |           | -         |   |          |   | 3,000,000 |   |
|                                                                                                                                                                                  |   |           |      |   |          |   |   |   |
| 9.367% Note payable to Allegiance Direct Bank, payable in monthly installments of approximately $1000, due in full on February 28, 2012 (3)                                           |   |           | 8,074     |   |          |   | 5,000 |   |
|                                                                                                                                                                                  |   |           |      |   |          |   |   |   |
| 12% Note  payable to Frontline Asset Management, payable in monthly installments of interest only, due in full on March 1, 2012 (4)                                         |   |           | 22,765    |   |          |   | 1,235,404 |   |
|                                                                                                                                                                                  |   |           |      |   |          |   |   |   |
| 10% Note payable to Winsor Capital Inc. paid in full  (5)                                                                                                                   |   |           | -         |   |          |   | 771,659 |   |
|                                                                                                                                                                                  |   |           |      |   |          |   |   |   |
| 48.956% Note payable to Amicus Funding Group, LLC, payable in monthly installments of approximately $467, collateralized by real property due in full on September 1, 2013 (6)        |   |           | 7,850     |   |          |   | - |   |
|                                                                                                                                                                                  |   |           |      |   |          |   |   |   |
| 26.85% Note payable to Treger Financial, payable in monthly installments of approximately $2,000, collateralized by real property due in full on June 1, 2012 (7)                     |   |           | 24,123    |   |          |   | - |   |
|                                                                                                                                                                                  |   |           |      |   |          |   |   |   |
|                                                                                                                                                                                  |   |           | 1,008,317 |   |          |   | 5,965,500 |   |
| Less Current Portion                                                                                                                                                                  |   |           | (73,983   | )      |          |   | (22,444 | ) |
|                                                                                                                                                                                  |   | $              | 934,334   |   |          | $      | 5,943,056 |   |

| 2011       |   | $      | 73,983    |   |
|------------|--------|--------|-----------|--------|
| 2012       |   |   | 25,049    |   |
| 2013       |   |   | 20,547    |   |
| 2014       |   |   | 19,435    |   |
| 2015       |   |   | 20,448    |   |
| Thereafter |   |   | 848,855   |   |
|       |   | $      | 1,008,317 |   |

----

----

----

|                                                                   |   | Three Months Ended |       |   | Nine Months Ended |   |
|------------------------------------------------------------------------|--------|------------------------------|------------|--------|-----------------------------|--------|
|                                                                   |   | April 30,               |       |   | April 30,              |   |
|                                                                   |   | 2011                         |       |   | 2010                        |   |   | 2011 |   |   | 2010 |   |
| Basic and Diluted EPS:                                                 |   |                         |       |   |                        |   |   |   |   |   |   |   |
| Net Earnings Loss) Ascribed to Common Shareholders - Basic and Diluted |   | $                            | (53,957    | )      |                        | $      | (542,476 | ) |   | $ | 522,544 |   |   | $ | (2,067,078 | ) |
| Weighted Average Shares Outstanding - Basic and Diluted                |   |                         | 30,299,586 |   |                        |   | 13,670,385 |   |   |   | 30,129,548 |   |   |   | 11,725,331 |   |
|                                                                   |   |                         |       |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Basic and Diluted Net Earnings (Loss) Per Common Share                 |   | $                            | (0.00      | )      |                        | $      | (0.04 | ) |   | $ | 0.02 |   |   | $ | (0.18 | ) |

|                                                             |   | Three Months Ended |       |   | Nine Months Ended |   |
|------------------------------------------------------------------|--------|------------------------------|------------|--------|-----------------------------|--------|
|                                                             |   | April 30, 2010     |       |   | April 30, 2010    |   |
| Basic and Diluted Loss Per Common Share                          |   | $                            | (0.04      | )      |                        | $      | (0.18 | ) |
|                                                             |   |                         |       |   |                        |   |   |   |
| Weighted Average Number of Shares Outstanding -Basic and Diluted |   |                         | 13,670,385 |   |                        |   | 11,725,331 |   |

----

----

----

----

----

----

----

----

----

----

|           |         |                                                                                 |         |                |         | Principal   |         | Total Offering Price/ |
|----------------|--------------|--------------------------------------------------------------------------------------|--------------|---------------------|--------------|-------------|--------------|---------------------------------|
| Date           |         | Title and Amount(1)                                                        |         | Purchaser           |         | Underwriter |         | Underwriting Discounts     |
| April 19, 2011 |         | Anti-dilution warrant to purchase an indeterminate number of shares of common stock. |         | Starglow Asset Inc. |         | NA          |         | NA/NA                           |
|           |         |                                                                                 |         |                |         |        |         |                            |
| April 19, 2011 |    | Anti-dilution warrant to purchase an indeterminate number of shares of common stock. |    | Winsor Capital Inc. |    | NA          |    | NA/NA                           |

----

| 10.38  |          | Stock Purchase Warrant, dated April 19, 2011, issued to Starglow Asset, Inc., filed herewith.                                                                                                     |
|--------|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |          |                                                                                                                                                                                              |
| 10.39  |          | Stock Purchase Warrant, dated April 19, 2011, issued to Winsor Capital Inc., filed herewith.                                                                                                      |
|   |          |                                                                                                                                                                                              |
| 31     |     | Certification of Chief Executive Officer and Principal Officer Pursuant to Section 302 of the Sarbanes- Oxley Act of 2002, filed herewith.                                                        |
|   |          |                                                                                                                                                                                              |
| 32     |          | Certification of Chief Executive Officer and Principal Financial Offier Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant ot Section 906 of the Sarbanes-Oxely Act of 2002, filed herewith. |

----

|                | EV INNOVATIONS, INC. |                                                   |
|---------------------|----------------------|--------------------------------------------------------|
|                |                 |                                                   |   |
| Date: June 14, 2011 | By:             | /s/ Stacey Fling                                       |     |
|           |                 | Stacey Fling                                           |   |
|                |                 | Chief Executive Officer and PrincipalFinancial Officer |   |

----