**UNITED
      STATES**


**SECURITIES
      AND EXCHANGE COMMISSION**


Washington
      D. C. 20549




**FORM
      10-QSB**




x  Quarterly
      report pursuant to Section 13 or 15(d) of the Securities and


Exchange
      Act of 1934.




For
      the
      quarterly period ended June 30, 2008




 ̈  Transition
      report pursuant to Section 13 or 15(d) of the Exchange Act for


the
      transition period from _________ to _________.




*Commission
      File Number: 001-32528*




**SOLARGY
      SYSTEMS INC**




**formerly**




**SBD
      INTERNATIONAL, INC**


(Exact
      name of registrant as specified in charter)





NEVADA
            20-4357915(State
                of or other jurisdiction of
            (IRS
                Employer I.D. No.)incorporation
                or organization)





6464
      NW`5th Way,


Ft
      Lauderdale Florida 33309


(Address
      of Principal Executive Offices)




(954)
      533-0522


(Registrant's
      Telephone Number, Including Area Code)




Check
      whether the registrant: (1) has filed all reports required to be filed by
      Section 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  ̈  NO x




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




YES  ̈  NO x




Indicate
      the number of shares outstanding of each of the issuer's classes of stock as
      of
      June 30, 2008.




**286,930,782
      Common Shares**




**Transitional
      Small Business Disclosure Format:**




YES  ̈  NO x




**EXPLANATION**




This
      unaudited interim statement is presented for preliminary basic information
      only.
      The information contained here in will be revised and corrected in due course.
      The financial information is not intend to be used as a basis for any investment
      decision, but simply for information only.




Audited
      and reviewed statements will be published in due course.
















**SOLARGY
      SYSTEMS INC.**


(FORMERLY
      KNOWN AS SBD INTERNATIONAL INC. AND SUBSIDIARY)





INDEX
      TO
      FORM 10-QSB




PagePART
                I. FINANCIAL INFORMATIONItem
                1.
            Condensed
                Consolidated Financial Statements (unaudited)Condensed
                Consolidated Balance Sheet as of September 30, 2006
            3Condensed
                Consolidated Statements of Operations for the three and nine months
                ended
                September 30, 2006 and 2005
            4Condensed
                Consolidated Statements of Cash Flows for the three and nine months
                ended
                September 30, 2006 and 2005
            5Notes
                to Condensed Consolidated Financial Statements
            6Item
                2.
            Management's
                Discussion and Analysis of Financial Condition and Results of Operations
                (including cautionary statement)
            11Item
                3.
            Controls
                and Procedures
            18PART
                II. OTHER INFORMATIONItem
                1.
            Legal
                Proceedings
            19Item
                2.
            Changes
                in Securities
            19Item
                3.
            Defaults
                Upon Senior Securities
            19Item
                4.
            Submission
                of Matters to a Vote of Securities Holders
            19Item
                5.
            Other
                Information
            19Item
                6.
            Exhibits
            19Signature
            20Certification






2





Item
      1.
      CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.




**SOLARGY
      SYSTEMS INC**




**CONDENSED
      CONSOLIDATED UNAUDITED BALANCE SHEET AS OF JUNE 30, 2008**




(Unaudited)







ASSETSCURRENT
                ASSETS:Cash
                (including 217,655 of restricted cash)
            
            $
            71,711Trade
                receivables
            
            
            73,322Prepaid
            
            
            4,750Total
                current assets
            
            
            149,743PROPERTY
                AND EQUIPMENT (net of accumulated depreciation of $26,725)
            
            
            64,389LONG
                TERM INVESTMENTS
            
            
            115,373DEPOSITS
            
            
            17,470NOTES
                RECEIVABLE
            
            
            30,150TOTAL
                ASSETS
            
            $
            377,165LIABILITIES
                AND STOCKHOLDERS' DEFICITCURRENT
                LIABILITIES:Accounts
                payable
            
            $
            174,973Due
                to related parties
            
            
            293,459Accrued
                payroll and other liabilities
            
            
            78.648Total
                current liabilities
            
            
            546,986LONG-TERM
                LIABILITIESConvertible
                not payable (net of unamortized discount of $348,361)
            
            
            692,877Derivative
                financial instruments and warrant liability
            
            
            503,195Accrued
                liabilities
            
            
            41,187Total
                liabilities
            
            
            1,684,245STOCKHOLDERS'
                DEFICIT:Convertible
                Preferred Stock, Series A, $0.001 par value 20,000,000 shares authorized
                and 0 shares issued and outstanding
            
            
            5,200Convertible
                Preferred Stock, Series B, $1.00 par value 20,000,000 shares authorized
                and 1,100,000 shares issued and outstanding
            
            
            1,100,000Common
                stock, $0.001 par value, 750,000,000 shares authorized, 286,930,782
                shares
                issued and outstanding
            
            
            274,353Additional
                paid-in-capital
            
            
            9,775,571Accumulated
                deficit
            
            
            (11,594,172
            )Total
                stockholders' deficit
            
            
            (1,307,080
            )TOTAL
            
            $
            377,165




See
      notes
      to consolidated financial statements.


3


**SOLARGY
      SYSTEMS , INC**


(FORMERLY
      KNOWN AS SBD INTERNATIONAL INC , AND SUBSIDIARY)





**CONDENSED
      CONSOLIDATED STATEMENTS OF OPERATIONS**





(Unaudited)








For the
            
            For
                the
            
            For
                the
            
            For
                theSix months
            
            Six
                months
            
            Three
                months
            
            Three monthsEnded June.
            
            Ended
                June.
            
            Ended
                Mar.
            
            Ended Mar.30, 2008
            
            30,
                2007
            
            30,
                2008
            
            30, 2007REVENUES
            
            $
            4,100,000
            
            $
            710,430
            
            $
            4,100,000
            
            $
            223,318COST
                OF REVENUES
            
            
            (1,663,445
            )
            
            (436,956
            )
            
            (1,553,445
            )
            
            100,712GROSS
                PROFIT
            
            
            2,436,555
            
            
            274,474
            
            
            2,435,555
            
            
            122,606OPERATING
                EXPENSES:Stock
                based employee and consultant compensation
            
            
            201,299
            
            
            67,170
            
            
            201,299
            
            
            784,502General
                & Administrative
            
            
            10,086
            
            
            82,043
            
            
            62,115
            
            
            842,085Marketing
            
            
            5,410
            
            
            4,127
            
            
            5,912
            
            
            0Total
                operating expenses
            
            
            216,794
            
            
            942,340
            
            
            279,027
            
            
            807,240PROFIT
                (LOSS) FROM OPERATIONS
            
            
            2,218,761
            
            
            (942,340
            )
            
            (289,985
            )
            
            (807,240
            )OTHER
                EXPENSES:Derivative
                (income) expense
            
            
            503,195
            
            
            156,867Interest
                expense/settlement cost
            
            
            (1,154,047
            )
            
            (44,742
            )
            
            (272,763
            )
            
            (44,742
            )NET
                GAIN/LOSS
            
            $
            561,519
            
            $
            (987,082
            )
            $
            (405,881
            )
            $
            (851,982
            )PROFIT/LOSS
                /COMMON SHARE -BASIC/DILUTED
            
            $
            0.019
            
            $
            (0.51
            )
            $
            (0.00
            )
            $
            (0.17
            )WEIGHTED
                AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED
            
            
            286,930,782
            
            
            1,921,603
            
            
            232,045,919
            
            
            5,085,218




See
      notes
      to consolidated financial statements.


4


**SOLARGY
      SYSTEMS, INC**


(FORMERLY
      KNOWN AS SBD INTERNATIONAL INC. AND SUBSIDIARY)





**CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS**





(Unaudited)







For the
            
            For
                theSix months
            
            Six monthsEnded June
            
            Ended June30, 2008
            
            30, 2007CASH FLOWS FROM OPERATING ACTIVITIES:Net
                gain/loss
            
            
            561,519
            
            
            (1,333,252
            )Adjustments
                to reconcile net loss to net cash used in operating
                activities:Depreciation
                and amortization
            
            
            41,855
            
            
            4,752Stock
                issued for employee and consultant compensation
            
            
            201,299
            
            
            1,140,270Amortization
                of beneficial interest and change in derivative value
            
            
            101,741
            
            
            44,085Changes
                in assets and liabilities, net:Accounts
                receivable
            
            
            (95,283
            )
            
            (51,698
            )Deposits
            
            
            (5,520
            )Accounts
                payable and other liabilities
            
            
            174,973
            
            
            58,249Accrued
                and other liabilities
            
            
            366,405
            
            
            11,287NET
                CASH USED IN OPERATING ACTIVITIES
            
            
            (105,066
            )
            
            (126,307CASH
                FLOWS FROM INVESTING ACTIVITIES:Purchases
                of vehicles, furniture and equipment
            
            
            (19,604
            )
            
            (5,016
            )CASH
                USED IN INVESTING ACTIVITIES
            
            
            (19,504
            )
            
            (5,016
            )CASH
                FLOWS FROM FINANCING ACTIVITIES:Receipt
                of advances
            
            
            46,800Proceeds
                from subscription receivable
            
            
            23,550Proceeds
                from sale of common stock
            
            
            75,917Proceeds
                from mortgage refinancing
            
            
            150,325
            
            
            —Payment
                of Mortgage Note
            
            
            (2,275,000
            )Loan
                from related party
            
            
            351,475
            
            
            —NET
                CASH PROVIDED BY FINANCING ACTIVITIES
            
            
            (1,773,200
            )
            
            146,267NET
                CHANGE IN CASH
            
            
            442,700
            
            
            14,944CASH
                AT BEGINNING OF PERIOD
            
            
            5,119
            
            
            5,224CASH
                AND RESTRICTED CASH AT END OF PERIOD
            
            $
            71,711
            
            $
            20,168




See
      notes
      to consolidated financial statements.


5




**SOLARGY
      SYSTEMS, INC**


(FORMERLY
      KNOWN AS SBD INTERNATIONAL INC. AND SUBSIDIARY)




**NOTES
      TO CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**


**June
      30, 2008 AND 2007**




**NOTE
      1 - ORGANIZATION AND BASIS OF PRESENTATION**




The
      condensed consolidated unaudited interim financial statements included herein
      have been prepared, without audit, pursuant to the rules and regulations of
      the
      Securities and Exchange Commission ("SEC"). The condensed consolidated unaudited
      financial statements and notes are presented as permitted on form 10-QSB and
      do
      not contain information included in the Company's annual consolidated statements
      and notes. Certain information and footnote disclosures normally included in
      the
      consolidated unaudited financial statements prepared in accordance with
      accounting principles generally accepted in the United States of America have
      been or omitted pursuant to such rules and regulations, although the company
      believes that the disclosures are adequate to make the information presented
      not
      misleading. It is suggested that these consolidated unaudited financial
      statements be read in conjunction with the December 31, 2007 audited financial
      statements and the accompanying notes thereto. While management believes the
      procedures followed in preparing these consolidated unaudited financial
      statements are reasonable, the accuracy of the amounts are in some respects
      dependent upon the facts that will exist, and procedures that will be
      accomplished by the company later in the year.




On
      August
      1, 2006, the Company merged with SBD International (SBD), with SBD being the
      surviving entity. Upon execution of the merger an exchange of one share of
      SBD
      common stock was made for every 25 shares of The Company's common stock. This
      reduced the outstanding shares to approximately 8,794,000 shares of common
      stock.




**Basis
      of Presentation**




Our
      accompanying unaudited consolidated financial statements have been prepared
      in
      accordance with accounting principles generally accepted in the United States
      of
      America for interim financial information and the instructions to Form 10-QSB
      and Rule 10-1 of Regulation S-X of the Securities and Exchange Commission (the
      "SEC"). Accordingly, these consolidated financial statements do not include
      all
      of the footnotes required by accounting principles generally accepted in the
      United States of America. In our opinion, all adjustments (consisting of normal
      and recurring adjustments) considered necessary for a fair presentation have
      been included. Operating results for the three and nine months ended September
      30, 2006 are not necessarily indicative of the results that may be expected
      for
      the year ended December 31, 2008. The accompanying consolidated financial
      statements and the notes thereto should be read in conjunction with our
      (un)audited consolidated financial statements as of December 31, 2005 and for
      the years ended December 31, 2005 and 2004 contained in our Form
      10-KSB.




**NOTE
      2 - DUE TO RELATED PARTY**




The
      Company had outstanding debt of $46,276 to an officer/stockholder for expenses
      advanced on behalf of the Company at June 30, 2008. The Company also received
      cash advances from a shareholder. The outstanding debt to this shareholder
      was
      $305,469 at June 30, 2008 There are no specific repayment terms on either of
      these debts.




**NOTE
      3 - MORTGAGE PAYABLE**




The
      company retired all of its outstanding mortgages with the sale of its Chiefland
      properties.


6


**SBD
      INTERNATIONAL, INC**


(FORMERLY
      KNOWN AS SITEWORKS INC. AND SUBSIDIARY)


**NOTES
      TO CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**


**September
      30, 2006 AND 2005**




**NOTE
      4 - PROVISION FOR INCOME TAXES**




Deferred
      income taxes will be determined using the liability method for the temporary
      differences between the financial reporting basis and income tax basis of the
      Company's assets and liabilities. Deferred income taxes will be measured based
      on the tax rates expected to be in effect when the temporary differences are
      included in the Company's consolidated tax return. Deferred tax assets and
      liabilities are recognized based on anticipated future tax consequences
      attributable to differences between financial statement carrying amounts of
      assets and liabilities and their respective tax bases.




At
      June
      30, 2008 the Company had deficits accumulated approximating $11,627,172
      available to offset future taxable income through 2026. The Company established
      valuation allowances equal to the full amount of the deferred tax assets due
      to
      the uncertainty of the utilization of the operating losses in future
      periods.




**NOTE
      5- CONVERTIBLE NOTES PAYABLE, COMMON STOCK WARRANTS AND DERIVATIVE FINANCIAL
      INTRUMENTS**




At
      June
      30, 2008, the convertible note payable is comprised of the
      following:




8%
      Callable Secured Convertible Term Notes totaling $1,400,000:,




due
      from
      September 27, 2009 $ 500,000,  200,000,  200,000,
      due Jan 2011 150,000




Less:
      unamortized discount related to closing costs and bifurcated embedded derivative
      instruments and freestanding warrants (348,361)




**Convertible
      Note Payable $ 151,639**




On
      September 28, 2006, we issued a $500,000 8% Callable Secured Convertible Term
      Note, due September 27, 2009, unless sooner converted or called as discussed
      below and 5,000,000 Common Stock Purchase Warrants ("Warrants"), for aggregate
      consideration of $500,000 less $90,000 in closing costs. The Note, together
      with
      accrued and unpaid interest, is convertible at any time at the option of the
      holder into shares of our common stock at the lesser of i) $0.06 per share
      or
      ii) the average of the lowest 3 trading days during the last 20 trading days.
      Interest is paid quarterly but no interest is due for any month in which the
      trading price is greater than $.10 for each trading day of the month. The fixed
      conversion price is adjusted for stock splits, stock dividends, merger and
      similar events. The company is required to have authorized and reserved shares
      2
      times the number of shares that are actually issuable upon full conversion
      of
      the notes and warrants.


7


**SBD
      INTERNATIONAL, INC**


(FORMERLY
      KNOWN AS SITEWORKS INC. AND SUBSIDIARY)


**NOTES
      TO CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**


**September
      30, 2006 AND 2005**




**NOTE
      5- CONVERTIBLE NOTES PAYABLE, COMMON STOCK WARRANTS AND DERIVATIVE FINANCIAL
      INTRUMENTS (CONTINUED)**




The
      instruments are subject to a Registration Rights Agreement whereby we are
      required to file a registration statement with the Securities and Exchange
      Commission within 30 days of closing, registering the common stock underlying
      the secured convertible notes. The registration statement is to be effective
      within 120 days of funding (180 days in the event of SEC comments). We are
      required to maintain the effectiveness of the registration statement until
      all
      registered securities have been sold or until they may be sold without
      restriction under Rule 144(k). In the event that we fail to do so, we are
      obligated to pay, to the holders of the Note, damages of 2% of the face amount
      of the Notes per month.




If
      an
      Event of Default, as defined in the Note, occurs and is continuing, the holders
      of the Note may declare the entire unpaid principal balance of the Note,
      together with all interest accrued, due and payable and the interest rate
      increases from 8% to 15%. In the event that we breach any representation or
      warranty in the Securities Purchase Agreement, we may be required to pay
      liquidated damages in shares or cash, at our election, equal to two percent
      of
      the outstanding principal amount of the secured convertible notes per month
      plus
      accrued and unpaid interest.




The
      company has the option to redeem the note in cash, if the stock is trading
      below
      $.06 or greater than $3.50, by paying




o
      125% of
      the principal, interest and penalty outstanding for prepayments within 30 days
      of issue




o
      130% of
      the principal, interest and penalty outstanding for prepayments within 31 days
      of issue to 60 days or




o
      140% of
      the principal, interest and penalty outstanding for prepayments greater 61
      days
      of issue




o
      Plus an
      amount equal to the difference between the market price and $3.50, if the market
      price is greater than $3.50, times the number of shares that could have been
      converted.




The
      company has the option, if the market price is below $.06 for each trading
      day
      of the month, to prepay 104% of the outstanding principal divided by 36 plus
      one
      month's interest.




The
      Warrants, which are exercisable at any time had initial terms as
      follows:




o
      5,000,000 warrants, expiring September 28, 2013, at an exercise price of
      $0.10/share.




The
      warrants require that, if we issue common stock or other securities convertible
      into common stock at a price per share lower than the market price, the exercise
      price of the warrants will be reduced to that lower price.




Because
      the conversion price of the Note and the exercise price of the warrants will
      be
      lowered if we sell securities at a lower conversion or exercise price, the
      number of shares that we may have to issue on conversion of the Note or exercise
      of the warrants is not fixed or determinable. As a result, the Note is not
      considered to be "conventional convertible debt", as that term is used by EITF
      Issue 00-19. Accordingly, the embedded conversion option in the Note is subject
      to the requirements of EITF Issue 00-19. Because the number of shares we may
      have to issue is indeterminate, we are required by EITF Issue 00-19 to bifurcate
      the embedded conversion option of the Note and account for it, as well as the
      warrants, as derivative financial instrument liabilities. The derivative
      financial instrument liabilities are initially recorded at their fair value
      and
      are then adjusted to fair value at the end of each subsequent period, with
      any
      changes in the fair value charged or credited to income in the period of
      change.


8


**SOLARGY
      SYSTEMS, INC**


(FORMERLY
      KNOWN AS SITEWORKS INC. AND SUBSIDIARY)


**NOTES
      TO CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**


**June
      30, 2008 AND 2007**




**NOTE
      5- CONVERTIBLE NOTES PAYABLE, COMMON STOCK WARRANTS AND DERIVATIVE FINANCIAL
      INTRUMENTS (CONTINUED)**




We
      use
      the Black-Scholes option pricing model to value the warrants, and the embedded
      conversion option component of the bifurcated embedded derivative instrument.
      In
      valuing these derivative instruments, both at inception and at each quarter
      end,
      we use the market price of our common stock on the date of valuation, an
      expected dividend yield of 0%, and the remaining period to the expiration date
      of the warrants or repayment date of the Note. Because of the limited historical
      trading period of our common stock and the change in the industry of the
      company, the expected volatility of our common stock over the remaining life
      of
      the warrants and the Note has been estimated at 19.3%, by comparison to the
      average volatility of companies considered by management as comparable. The
      risk-free rates of return used ranged from 4.60% to 4.62%, based on constant
      maturity rates published by the U.S. Federal Reserve, applicable to the
      remaining life of the warrants and the Note.




The
      Note
      is being accreted using an effective interest method, to its redemption value
      of
      $500,00 over the 36 month period to its maturity on September 28,
      2009.




At
      June
      30, 2008, the following liabilities related to the Warrants and the embedded
      derivative instrument in the Note were outstanding:




Fair
      Value of the warrant is:





Issue
              Date
            
            Expiry
              Date
            
            Instrument
            
            Exercise
              Price/Share
            
            Value
              9/30/20069/28/2005
            
            9/28/2013
            
            Warrant 5,000,000
            
            $
            0.10
            
            
            15,594




Fair
      value of embedded derivatives:





Issue
              Date
            
            Expiry
              Date
            
            Instrument
            
            Exercise
              Price/Share
            
            Value
              9/30/20069/28/2005
            
            9/28/09
            
            Convertible Note- Conversion
              Feature
            
            $
            0.10
            
            
            70,9159/28/2005
            
            9/28/09
            
            Convertible Note Interest-
              Conversion Feature
            
            $
            0.10
            
            
            15,232




The
      carrying value of the note is:





Issue
              Date
            
            Expiry
              Date
            
            Instrument
            
            Value
              9/30/20069/28/2005
            
            
            9/28/2009
            
            $500,000
                Convertible Term Note
            
            
            151,639




**NOTE-
      6 ISSUANCE AND CHANGES TO COMMON STOCK**




During
      the six months ended June 30, 2008, The Company issued 6,700,000 shares of
      stock
      at fair value of $128,400 for compensation to an employee. Additionally the
      company issued 15,400,000 shares of stock at fair value of $521,600 for
      consulting services




On
      August
      1, 2006, the Company merged with SBD International (SBD), with SBD being the
      surviving entity. Upon execution of the merger an exchange of one share of
      SBD
      common stock was issued for every 25 shares of The Company's common stock.
      This
      reduced the outstanding shares to approximately 8,794,000 shares of common
      stock.




On
      August
      17, 2006 5,100,000 shares, the entire outstanding Series A Preferred Stock,
      was
      converted into 265,200,000 shares of common stock at an exchange ratio of 1
      to
      52.




On
      August
      31, 2006 an employee shareholder returned 143,000 shares of stock for no
      compensation.


9




**SOLARGY
      SYSTEMS INC**


(FORMERLY
      KNOWN AS SBD INTERNATIONAL INC. AND SUBSIDIARY)




**NOTES
      TO CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**


**September
      30, 2006 AND 2005**




**NOTE
      7- CONTINGENCY/UNCERTAINTY**




In
      June
      2005, the Company issued 1,100,000 shares of preferred stock Series B value
      at
      $1.00 a share. The Company also issued 35,000,000 shares of common stock par
      value valued at $1,000,000 in order to purchase property from Munich LLC. The
      property was appraised at $2,100,000. Subsequent to the purchase, the Company
      discovered that the property wasn't free and clear of mortgages and/or liens.
      The Company has recorded a contingent liability in the amount of $1,146,544
      for
      this lien although the holder is current on the payments on this
      note.




**NOTE
      8 - GOING CONCERN**




As
      shown
      in the accompanying consolidated unaudited financial statements, the Company
      incurred substantial net losses since inception and doesn't have the revenue
      stream to support itself. There is no guarantee as to whether the Company will
      be able to generate enough revenue and/or raise capital to support those
      operations. This raises substantial doubt about the Company's ability to
      continue as a going concern.




In
      addition, the Company may have issued certain shares of its stock that were
      not
      validly authorized (See Note 8) .




Management
      also states that they are confident that they can acquire projects and raise
      the
      appropriate funds needed either through a debt or equity offering to
      operate.




The
      consolidated unaudited financial statements do not include any adjustments
      that
      might results from the outcome of these uncertainties.




**Note
      9- SUBSEQUENT EVENTS**




**On
      Sept 30, 2008, the company filed a form 14 indicating a name change to Solargy
      Systems Inc and also indicating that the company stock will be reversed of
      a
      2500 to one basis.**




**This
      is in keeping with a fundamental change in what the company does and how it
      will
      operate going forward. Solargy Systems inc is has changed its mission to that
      of
      an alternative energy systems integrator. Solargy will engage in the production
      of photovoltaic panels and in the sales and installation of power systems using
      alternative energy products, including solar, wind and waste to
      energy.**




The
      company was required to file a registration statement, by the terms of a
      registration rights agreement, with the SEC on October 27, 2006. As of the
      date
      of this filing, the registration statement has not been filed. In the event
      that
      we fail to file this statement, we are obligated to pay, to the holders of
      the
      Note, damages of 2% of the face amount of the Notes per month.




**END
      OF FINANCIAL STATEMENTS**


10




**SOLARGY
      SYSTEMS, INC**


(FORMERLY
      KNOWN AS SBD INTERNATIONAL INC. AND SUBSIDIARY)


**NOTES
      TO CONDENSEDCONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)**


**June
      30, 2008 AND 200** **7**




**Item
      2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
      OF
      OPERATIONS**




**COMPANY
      OVERVIEW**




Solargy
      Systems Inc Inc currently traded as an OTC pink sheets (SLGS) , merged with
      Site
      Works Building & Development Co, in August of 2006 .(which was incorporated
      in Florida in 2001 as a construction and real estate development company).
      The
      Company has refocussed to be an alternative systems integrator, providing
      alternative energy solutions in emerging markets.




**Alternative
      Systems Integration Services**




The
      company has established relationships with manufacturers of alternative energy
      equipment suppliers and designers. These relationships enable the company to
      offer integrated solution to the high cost of electrical power in emerging
      markets. Currently the company is seeking power purchase agreements in the
      Caribbean .Solutions proposed to full fill the PP include hybrid systems
      including wind with solar and waste to energy with wind turbines. Additional
      information can be found at www.solargysystemsinc.com Areas being explored
      by
      the company include waste to energy plants, Solar farms and wind
      turbines.




**Preconstruction
      Planning Services**




As
      part
      of its preconstruction services, the Company offers a preconstruction package
      that includes: Establishment of a realistic budget; design and permitting
      assistance; value engineering alternatives; weekly meetings with all parties;
      schedules for both preconstruction and construction stages; subcontractor
      pricing; recommendations regarding the purchase of long lead items; and
      calculation of a guaranteed maximum price.




**Construction
      Management Services**




The
      Company offers construction management services throughout the building cycle
      and such services include, but are not limited to: assistance in all phases
      of
      permit processing; preparation of all subcontractors' and/or suppliers' purchase
      orders required in connection with the work; scheduling, coordination and
      supervision of the physical construction; establishment of a realistic budget;
      monitoring of compliance with assigned responsibilities; preparation and
      submission of all necessary documentation; preparation and maintenance of the
      project schedule; and training of the owner in mechanical and other systems
      operation.




The
      Company strives to ensure that all parties' roles and responsibilities are
      clearly defined and that all parties are focused on completing the project.
      Depending on the customer's needs, some of the preconstruction planning services
      to be offered by the Company may overlap with the Company's construction
      management services.




**Strategic
      Plan**




The
      Company intends to pursue a strategy of: securing Power purchase agreements
      with
      utility companies, and then using he income stream from the power purchase
      agreements to securitized funding from alternative energy funds.




**Projects**




The
      company is currently pursuing a number of Power purchase agreements with utility
      services I the Caribbean and South east Asia.




Management
      is also planning to use 50 acres of land it has access to as a joint venture
      to
      build a solar farm in Chiefland Florida




**CRITICAL
      ACCOUNTING POLICIES AND ESTIMATES**




Our
      discussion and analysis of our financial condition and the results of our
      operations are based upon our financial statements and the data used to prepare
      them. Our financials have been prepared in accordance with accounting principles
      generally accepted in the United States of America for interim financial
      information and the instructions to Form 10-QSB and Rule 10-1 of Regulation
      S-X
      of the Securities and Exchange Commission (the "SEC"). Estimates that are
      critical to our consolidated financial statements relate principally to the
      determination and valuation of derivative financial instruments and restricted
      securities, and the recoverability of long-lived assets. The markets for our
      services are characterized by intense competition which could impact the future
      realization of our assets. Estimates and assumptions are reviewed periodically
      and the effects of revisions are reflected in the period that they are
      determined to be necessary. It is at least reasonably possible that our
      estimates could change in the near term with respect to these
      matters.


11


Revenue
      recognition:




Our
      revenue recognition policy is consistent with the criteria set forth in Staff
      Accounting Bulletin 104 - Revenue Recognition in Financial Statements ("SAB
      104") for determining when revenue is realized or realizable and earned. In
      accordance with the requirements of SAB 104 we recognize revenue when (1)
      persuasive evidence of an arrangement exists; (2) delivery of our services
      has
      occurred; (3) our price to our customer is fixed or determinable; and (4)
      collectibility of the sales price is reasonably assured. As such, we recognize
      revenues as services are rendered. Sales of real estate are generally recognized
      under the full accrual method when each of the criteria in paragraph 5 of SFAS
      66 is met. Under that method, gain is not recognized until the collectibility
      of
      the sales price is reasonably assured and the earnings process is virtually
      complete. When a sale does not meet the requirements for income recognition
      a
      gain is deferred until those requirements are met.




The
      Company recorded the sale of property under the cost recovery method. When
      this
      method is used, no profit is recognized on the sales transaction until the
      cost
      of the property sold is recovered.




Revenues
      from fixed-price and modified fixed-priced construction contracts are
      anticipated to be recognized on the percentage-of-completion method, measured
      by
      the percentage of costs incurred to date compared to estimated total costs
      for
      each contract.




Contract
      costs will include all direct material and labor costs and those indirect costs
      related to contract performance, such as indirect labor, supplies, tools,
      repairs depreciation. General and administrative costs are charged to expense
      as
      incurred. Provisions for estimated losses on uncompleted contracts are
      recognized in the period in which such losses are determined. Changes in job
      performance, job conditions and estimated profitability may result in revisions
      to costs and income, which are recognized in the period in which the revisions
      are determined.




Revenues
      from time and material contracts are recognized currently as the work is
      performed.




**Stock
      Based Compensation**




Prior
      to
      December 31, 2005, we used Statement of Financial Accounting Standards No.
      148
      "Accounting for Stock-Based Compensation - Transition and Disclosure" (SFAS
      No.
      148) to account for our stock based compensation arrangements. This statement
      amended the disclosure provisions of FASB statement No. 123 to require prominent
      disclosure about the effects on reported net income of an entity's accounting
      policy decisions with respect to stock-based employee compensation. As permitted
      by SFAS No. 123 and amended by SFAS No. 148, we would have used the intrinsic
      value method under Accounting Principles Board Opinion No. 25, "Accounting
      for
      Stock Issued to Employees," to account for any of our stock-based employee
      compensation arrangements (no such arrangements were applicable through
      September 30, 2006).




In
      December 2004, the Financial Accounting Standards Board issued Statement Number
      123 ("FAS 123 (R)"), Share-Based Payments, which became effective on January
      1,
      2006. The statement requires us to recognize compensation expense in an amount
      equal to the fair value of share-based payments such as stock options granted
      to
      employees. Since we have not issued any stock options through September 30,
      2006, the adoption of this statement did not have an effect on our consolidated
      financial statements.


12


**RESULTS
      OF OPERATIONS**




**SIX
      AND THREE MONTHS ENDED JUNE 30, 2008 COMPARED TO SIX AND THREE MONTHS ENDED
      MARCH 30, 2007**




**Revenues**




The
      2008
      revenues consist primarily of revenues from sale of Chiefland project.. Revenues
      totaled $4,100,000 and $173,548 for the six and three months ended June 30,
      2008. The revenues for the same periods last year were zero because operations
      had not begun.




**Cost
      of Revenues**




Cost
      of
      revenues consists of materials, labor, equipment rental and other expenses
      related to the site preparation project. Cost of revenues totaled $2,817,492
      nd
      $184,506 for the six and three months ended June 30, 2008. The cost of revenues
      for the same periods last year was zero because operations had not yet
      commenced. The Gross Margin was significantly higher in the 3rd Quarter due
      to a
      higher than normal retainage on projects due to billing issues, that the company
      believes will be resolved in the company's favor. A positive result would result
      in higher than normal profit in future quarters.




**Operating
      Expenses**




General
      and administrative expense consists of property taxes, office expenses, rent,
      phones June 30, 2008 to $773,920 in the nine months ended June 30, 2008. The
      increase is due to to operations related to the completion of the Chiefland
      project.




Included
      in stock based employee and consultant compensation is the expense of issuing
      stock to an employee of $128,400 and $0 for the nine and three months ended
      June
      30, 2008. Consultants also received stock based compensation of $521,600 and
      $0
      for the nine and three months ended June 30, 2008 which is included in General
      and Administrative Expense.




**Other
      Expenses**




Interest
      expense for the nine and three months ended September 30, 2006 of $346,450
      and
      $272,763 is primarily attributable to our mortgage loan. A non-cash derivative
      income was recognized in the amount of $156,867 for the quarter and the year.
      This income was primarily caused by the decrease in the fair value of the
      conversion due to the market price dropping below the conversion price at the
      end of the quarter. Due to the adjustable conversion price of the note, this
      amount will most likely reverse in the next quarter.




**LIQUIDITY
      AND CAPITAL RESOURCES**




At
      June
      30, 20068, we had cash (exclusive of restricted cash) of approximately $71,711,
      an decrease of $224,940 from March 30, 2008,June 30, 2008 was the funds loaned
      to the Company by a stockholder, funds received from the sale of the property
      in
      Chiefland.




We
      believe that we will need to raise between $1 million and $5 million through
      the
      sale of debt and/or equity securities in order to fund working capital needs
      of
      the Company. If we are successful in raising these funds in a timely manner,
      we
      anticipate our revenues to exceed $1,000,000 and our general and administrative
      expense we be approximately $900,000. However, this estimate is a
      forward-looking statement that involves risks and uncertainties and is subject
      to a number of factors so there can be no assurance of such.




We
      are
      optimistic about our long term business prospects, however, raising these funds
      is not guaranteed. We cannot assure you that we will be able to raise such
      funds
      or that such funds will be available to us on favorable terms. If we raise
      additional funds for the issuance of our securities, such securities may have
      rights, preferences or privileges senior to those of the rights of our common
      stock and our stockholders may experience additional dilution.




**MANAGEMENT'S
      GOALS**




In
      our
      opinion we need to achieve the following events or milestones;




o
      Complete the property acquisition in Bangkok, Thailand By end of fiscal
      2008




o
      Raise
      additional capital of at least 5,000,000 for working capital




**RISK
      FACTORS AND RELATED DISCLOSURES**




Unless
      the context indicated otherwise, all references to "we," "us," "our" or the
      "Company" in this subsection "Risk Factors" refer to the Company. We are subject
      to a number of risks listed below, which could have a material adverse effect
      on
      our financial condition, results of operations and value of our Common
      Stock.


13






**Risks
      and Related Disclosures Relating to Our Business**




Because
      of losses incurred by us to date and our general financial condition, we
      received a going concern qualification in the auditors' report related to our
      financial statements for the fiscal year ended December 31, 2005 that raises
      doubt about our ability to continue our operations during the next 12
      months.




We
      had
      net losses of approximately $6,090,071 and $1,298,193 for the fiscal years
      ended
      December 31, 2005 and 2004, respectively, and generated $130,158 and $220,000
      (restated) in revenues during the fiscal years ended December 31, 2005 and
      2004,
      respectively. Our auditors included a going concern qualification in their
      report on our financial statements for the fiscal year ended December 31, 2005.
      We cannot assure you that we will be able to generate enough revenue or raise
      sufficient capital to operate our business during the next 12 months. Our
      existence is dependent upon our management's ability to develop profitable
      operations and resolve our liquidity problems. We cannot assure you that we
      will
      ever achieve profitable operations or generate significant revenues. We may
      continue to have operating losses in the foreseeable future. If we are unable
      to
      continue as a going concern, we may cease to operate and our investors may
      lose
      some or all of their investment.




We
      may be
      unable to obtain adequate financing to implement our business plan, which will
      negatively impact our liquidity and ability to continue our
      operations.




We
      have
      very limited financial resources. We will need to obtain funding for our working
      capital needs and business development. Our ability to obtain financing depends,
      in part, upon prevailing capital market conditions as well as our operating
      results which may impact our efforts to arrange financing on terms satisfactory
      to us. Moreover, we may not be able to obtain additional financing by the
      issuance of additional shares of our capital stock due to the fact that our
      authorized capital stock may not have been properly approved by our
      shareholders. Certain shares of our stock issued by us since incorporation
      may
      be invalidly issued under the Florida Business Corporation Act and, as a result,
      our shareholders may have rescission rights under federal and/or state
      securities laws." If adequate funds are not available, or are not available
      on
      acceptable terms, we may not be able to make future investments, take advantage
      of other opportunities, or otherwise respond to competitive challenges. Our
      failure to obtain capital on acceptable terms will also negatively impact our
      liquidity and our ability to continue our operations.




We
      depend
      on the services of our President to implement our business strategy and the
      loss
      of his services will have an adverse effect on our business.




The
      extensive experience and contacts of our President, Mr. Nurse, within the
      construction industry are a critical component of our business strategy. The
      growth of our operations is dependent upon the personal efforts and abilities
      of
      our President to evaluate and pursue our business opportunities. The loss of
      the
      services of our President, for any reason, will adversely affect our
      business.




We
      may be
      unable to hire and retain qualified employees which will have an adverse effect
      on our financial condition and result of operations.




We
      believe that our business strategy is substantially dependent upon our ability
      to attract, hire, retain and motivate qualified employees. We cannot assure
      you
      that we will be successful in hiring or retaining the services of qualified
      managerial, technical or administrative personnel necessary to support our
      business. Our inability to hire and retain qualified employees will have an
      adverse effect on our financial condition and results of
      operations.




We
      will
      encounter intense competition from substantially larger and better financed
      companies which may have a negative impact on our ability to achieve profitable
      operations.




Our
      success depends upon our ability to penetrate the market for general
      contracting, pre-construction management and construction management services.
      Our company will compete with more established entities with greater financial
      resources, longer operating histories and more recognition in the market place
      than we do. It is also possible that previously unidentified competitors may
      enter the market place and decrease our chance of acquiring the requisite market
      share. Our future success will depend upon our ability to penetrate the market
      quickly and efficiently. Our ability to respond to the evolving demands of
      the
      marketplace will play a key role in our success. If we are unable to respond
      and
      compete in these markets, it will have a material adverse effect on our results
      of operations and financial condition and will negatively impact our ability
      to
      achieve profitable operations.




If
      we
      fail to maintain an effective system of internal control over financial
      reporting and disclosure controls and procedures, we may be unable to accurately
      report our financial results and comply with the reporting requirements under
      the Exchange Act. As a result, current and potential shareholders may lose
      confidence in our financial reporting and disclosure required under the Exchange
      Act, which could adversely affect our business and we could be subject to
      regulatory scrutiny.




14




Pursuant
      to Section 404 of the Sarbanes-Oxley Act of 2002 ("Section 404"), we will be
      required, beginning with our annual report on Form 10-KSB for the fiscal year
      ending December 31, 2007, to include in our annual reports on Form 10-KSB,
      our
      management's report on internal control over financial reporting and the
      registered public accounting firm's attestation report on our management's
      assessment of our internal control over financial reporting. We are in the
      process of preparing an internal plan of action for compliance with the
      requirements of Section 404. As a result, we cannot guarantee that we will
      not
      have any "significant deficiencies" or "material weaknesses" reported by our
      independent registered public accounting firm. Compliance with the requirements
      of Section 404 is expected to be expensive and time-consuming. If we fail to
      complete this evaluation in a timely manner, or if our independent registered
      public accounting firm cannot timely attest to our evaluation, we could be
      subject to regulatory scrutiny and a loss of public confidence in our internal
      control over financial reporting. In addition, any failure to establish an
      effective system of disclosure controls and procedures could cause our current
      and potential shareholders and customers to lose confidence in our financial
      reporting and disclosure required under the Exchange Act, which could adversely
      affect our business.




We
      may be
      unable to implement our business and growth strategy which will negatively
      impact our financial condition and results of operations.




Our
      growth strategy and ability to generate revenues is largely dependent upon
      our
      ability to: (i) develop and provide general contracting, pre-construction
      planning and construction management services; (ii) hire highly skilled
      subcontractors; (iii) obtain adequate financing on acceptable terms to fund
      our
      growth strategy; (iv) develop and expand our customer base; and (v) negotiate
      agreements on terms that will permit us to generate adequate profit margins.
      Our
      failure with respect to any or all of these factors could impair our ability
      to
      successfully implement our growth strategy, which will have an adverse effect
      on
      our financial condition and results of operations.




If
      we are
      unable to accurately estimate the overall risks, revenues or costs on a
      contract, we may incur a loss on the contract which will have an adverse effect
      on our financial condition and results of operations.




We
      expect
      that will mostly enter into fixed price contracts which require us to perform
      the contract for a fixed price irrespective of our actual costs. As a result,
      we
      may realize a profit on these contracts only if we successfully control our
      costs and avoid cost overruns. We may also enter into cost plus award fee
      contracts which provide for reimbursement of the costs required to complete
      a
      project, but generally have a lower base fee and an incentive fee based on
      cost
      and/or schedule performance. If our costs exceed the revenues available under
      such a contract or are not allowable under the provisions of the contract,
      we
      may not receive reimbursement for these costs. Guaranteed maximum price
      contracts that we may enter into provide for a cost plus fee arrangement up
      to a
      maximum agreed-upon price. These contracts also place the risk on us for cost
      overruns that exceed the guaranteed maximum price. Pre-construction planning
      and
      construction management contracts are those under which we agree to manage
      a
      project for the customer for an agreed upon fee, which may be fixed or may
      vary
      based upon negotiated factors. Profitability on these types of contracts is
      driven by changes in the scope of work, which could cause cost overruns beyond
      our control and limit profits on these contracts. Cost overruns, whether due
      to
      inefficiency, faulty estimates or other factors, result in lower profit or
      a
      loss on a project. We expect that our contracts will be based, in part, on
      cost
      estimates that are subject to a number of assumptions. If our estimates of
      the
      overall risks, revenues or costs prove inaccurate or circumstances change,
      we
      may incur a lower profit or a loss on the contract which will negatively impact
      our financial condition and results of operations.




We
      may
      fail to meet schedule requirements of our contracts which could adversely affect
      our reputation and/or expose us to financial liability.




The
      construction services industry is highly schedule driven and our contracts
      are
      likely to be subject to specific completion schedule requirements with
      liquidated damages charged to us in the event the construction schedules are
      not
      achieved. Failure to meet any such schedule requirements could cause us to
      suffer damage to our reputation within the construction industry and customer
      base, as well as pay significant liquidated damages which will have an adverse
      effect on our financial condition and results of operation.




Compliance
      with regulations affecting our business could cause us to incur substantial
      costs both in time and money.




We
      are
      subject to extensive and complex laws and regulations that affect the
      construction industry, including, but not limited to, laws and regulations
      related to zoning, permitted land uses, levels of density, building design,
      warranties, storm water and use of open spaces. We generally may be required
      to
      obtain permits and approvals from local authorities to commence and complete
      various construction projects. Such permits and approvals may, from
      time-to-time, be opposed or challenged by local governments, neighboring
      property owners or other interested parties, adding delays, costs and risks
      of
      non-approval to the process. This process is further complicated by the fact
      that certain of our projects may be located in foreign countries where we may
      be
      unfamiliar with all regulatory requirements and approvals established by foreign
      governments. Economic, political and other risks associated with our
      international operations involve risks that could adversely affect our financial
      condition and results of operations." Our obligation to comply with the laws
      and
      regulations under which we operate, and the obligation of our subcontractors
      and
      other agents to comply with these and other laws and regulations, could result
      in delays in the performance of our service, and cause us to incur substantial
      costs.




We
      could
      incur significant costs as a result of liability under environmental laws which
      will have an adverse effect on our financial condition and results of
      operations.




Our
      operations are subject to environmental laws and regulations governing, among
      other matters, the discharge of pollutants into air and water, the handling,
      storage and disposal of solid or hazardous materials or wastes and the
      remediation of contamination, sometimes associated with leaks or releases of
      hazardous substances. Various federal, state and local environmental laws and
      regulations may impose liability for the entire cost of investigation and
      clean-up of hazardous or toxic substances. These laws may impose liability
      without regard to ownership at the time of the contamination or whether or
      not
      we caused the presence of contaminants. Violations of these environmental laws
      and regulations could subject us and our management to fines, civil and criminal
      penalties, cleanup costs and third party property damage or personal injury
      claims which will have an adverse affect on our financial condition and results
      of operations.




15




Work
      stoppages and other labor problems could adversely affect our financial
      condition and results of operations.




We
      intend
      to rely mostly on subcontractors in providing our general contracting services.
      Certain subcontractors in the construction industry are members of various
      labor
      unions. If the unionized workers engage in a strike or other work stoppage,
      or
      other subcontractors become unionized, we could experience a disruption of
      our
      operations and higher ongoing labor costs, which could adversely affect our
      financial condition and results of operations.Timing of the award of a new
      contract and performance of a new contract may have an adverse effect on our
      financial condition and results of operation in a particular fiscal
      quarter.




It
      is
      generally very difficult to predict whether and when we will receive an award
      of
      a new contract as these contracts frequently involve a lengthy and complex
      bidding and selection process which is affected by a number of factors,
      including, but not limited to, market conditions, financing arrangements and
      governmental approvals. Our results of operations can fluctuate from quarter
      to
      quarter depending on the timing of new contract awards.




In
      addition, timing of the revenues and cash flows from our projects can be delayed
      by a number of factors, including, but not limited to, weather conditions,
      delays in receiving material and equipment from vendors and changes in the
      scope
      of work to be performed. Such delays, if they occur, could have an adverse
      effect on our financial condition and operating results for a particular fiscal
      quarter.




We
      may
      not be able to fully realize the revenue reported in our backlog which will
      have
      an adverse affect on our financial condition and results of
      operation.




We
      include a construction project in our backlog at such time as a contract is
      awarded or a firm letter of commitment is obtained and funding is in place.
      The
      revenue projected in our backlog may not be realized or, if realized, may not
      result in profits. For example, if a project reflected in our backlog is
      terminated, suspended or reduced in scope, it would result in a reduction to
      our
      backlog which would reduce, potentially to a material extent, the revenue and
      profit we actually receive from contracts in backlog. If a customer cancels
      a
      project, we may be reimbursed for certain costs but typically have no
      contractual right to the total revenues reflected in our backlog. Significant
      cancellations or delays of projects in our backlog could have an adverse effect
      on our financial condition and results of operations.




Deterioration
      in economic conditions generally or in the market regions where we intend to
      operate could decrease demand and pricing in these areas and adversely affect
      our financial condition and results of operations.




The
      construction industry is sensitive to changes in regional and national economic
      conditions such as job growth, interest rates and consumer confidence. Material
      adverse changes in any of these conditions generally, or in the market regions
      where we intend to operate, could decrease demand and pricing for new
      construction projects in these areas or result in customer defaults on pending
      contracts, which could adversely affect the number of deliveries we make or
      reduce the prices we can charge, either of which could adversely affect our
      financial condition and results of operations.




Natural
      disasters and adverse weather conditions could delay deliveries or increase
      costs of construction projects in affected areas.




The
      occurrence of natural disasters or adverse weather conditions in the areas
      in
      which we intend to operate can delay deliveries, increase costs and negatively
      impact the demand for construction projects in affected areas. When natural
      disasters such as hurricanes, tornadoes, earthquakes, floods and fires affect
      an
      area in which we intend to operate or one nearby, there can be a diversion
      of
      labor and materials in such area from existing construction projects to
      rebuilding or repairing the buildings that were either destroyed or damaged
      in
      the natural disaster. This can cause delays in construction and delivery of
      projects in which we may be involved and reduce our revenues, if
      any.




Economic,
      political and other risks associated with our international operations involve
      risks that could adversely affect our financial condition and results of
      operations.




We
      intend
      to be involved as a general contractor in non-U.S. construction projects. Our
      international operations may expose us to risks inherent in doing business
      outside the United States, including, but not limited to:




o
      political risks, including risks of loss due to civil disturbances, acts of
      terrorism or acts of war;




o
      unstable economic, financial and market conditions;




o
      potential incompatibility with foreign joint venture partners;




o
      foreign
      currency controls and fluctuations in currency exchange rates;




o
      trade
      restrictions;




o
      increases in taxes and the effect of local regulations; and




o
      changes
      in labor conditions, labor strikes and difficulties in staffing and managing
      international operations.




16




Any
      of
      these factors could harm our potential international operations. Specifically,
      failure to successfully manage international growth could result in higher
      operating costs than anticipated or could delay or preclude altogether our
      ability to generate revenues which will have an adverse effect on our results
      of
      operations and financial condition and results of operations.




**Risks
      Relating to Our Common Stock**




Our
      stock
      price has been and may continue to be volatile and may result in substantial
      losses for investors.




The
      trading price of our Common Stock could be subject to wide fluctuations in
      response to:




o
      our
      prospects as perceived by others;




o
      our
      operating results;




o
      differences between our reported results and those expected by
      investors;




o
      announcements of new contracts by us or our competitors; and




o
      general
      economic or stock market conditions unrelated to our operating
      performance.




Fluctuations
      in our stock price as a result of any of the foregoing factors may result in
      substantial losses for investors.




Limited
      trading volume of our Common Stock may contribute to its price
      volatility.




Through
      December 31, 2005, the average daily trading volume during 2005 for our Common
      Stock was approximately 500,000 shares. We cannot assure you that a more active
      trading market in our Common Stock will develop. As a result, relatively small
      trades may have a significant impact on the price of our Common
      Stock.




We
      have
      never paid dividends and do not anticipate paying any in the foreseeable
      future.




We
      have
      never declared or paid a cash dividend and we do not expect to have any cash
      with which to pay cash dividends in the foreseeable future. If we do have
      available cash, we intend to use it to grow our business.




We
      will
      be subject to the penny stock rules which may adversely affect trading in our
      Common Stock.




On
      August
      16, 2006, the closing price of Common Stock was $0.76 bid . Our Common Stock
      is
      a "penny stock" security under the rules promulgated under the Exchange Act.
      In
      accordance with these rules, broker-dealers participating in certain
      transactions involving penny stocks must first deliver a disclosure document
      that describes, among other matters, the risks associated with trading in penny
      stocks. Furthermore, the broker-dealer must make a suitability determination
      approving the customer for penny stock transactions based on the customer's
      financial situation, investment experience and objectives. Broker-dealers must
      also disclose these determinations in writing to the customer and obtain
      specific written consent from the customer. The effect of these restrictions
      will probably decrease the willingness of broker-dealers to make a market in
      our
      Common Stock, decrease liquidity of our Common Stock and increase transaction
      costs for sales and purchases of our Common Stock as compared to other
      securities.




**CAUTIONARY
      STATEMENT**




This
      Form
      10-QSB, press releases and certain information provided periodically in writing
      or orally by our officers or our agents contain statements which constitute
      forward-looking statements within the meaning of Section 27A of the Securities
      Act, as amended and Section 21E of the Securities Exchange Act of 1934. The
      words expect, anticipate, believe, goal, plan, intend, estimate and similar
      expressions and variations thereof if used are intended to specifically identify
      forward-looking statements. Those statements appear in a number of places in
      this Form 10-QSB and in other places, particularly, Management's Discussion
      and
      Analysis or Results of Operations, and include statements regarding the intent,
      belief or current expectations us, our directors or our officers with respect
      to, among other things: (i) our liquidity and capital resources; (ii) our
      financing opportunities and plans and (iii) our future performance and operating
      results. Investors and prospective investors are cautioned that any such
      forward-looking statements are not guarantees of future performance and involve
      risks and uncertainties and that actual results may differ materially from
      those
      projected in the forward-looking statements as a result of various factors.
      The
      factors that might cause such differences include, among others, the following:
      (i) the validity of the Company's issued shares of stock; (ii) the Company's
      ability to continue as a going concern;




(iii)
      the
      availability of financing on terms acceptable to the Company; (iv) the
      management's ability to implement the Company's business and growth
      strategy;




(v)
      the
      validity of the underlying assumptions and estimates of projected costs and
      revenues on a contract; (vi) the management's ability to maintain an effective
      system of internal control over financial reporting and disclosure controls
      and
      procedures; (vii) any inability of us to successfully conduct our business
      in
      new markets; and (viii) other risks including those identified in our filings
      with the Securities and Exchange Commission. We undertake no obligation to
      publicly update or revise the forward looking statements made in this Form
      10-QSB to reflect events or circumstances after the date of this Form 10-QSB
      or
      to reflect the occurrence of unanticipated events.




17




**Item
      3. CONTROLS AND PROCEDURES**




(a)
      Evaluation of disclosure controls and procedures.




Within
      ninety (90) days prior to the filing of this report, under the supervision
      and
      with the participation of our management, including our principal executive
      officer and principal financial officer, we conducted an evaluation of the
      effectiveness of the design and operations of our disclosure controls and
      procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities
      Exchange Act of 1934, as of September 30, 2006. Based on this evaluation, our
      principal executive officer and principal financial officer concluded that
      our
      disclosure controls and procedures were effective such that the material
      information required to be included in our Securities and Exchange




18


Commission
      ("SEC") reports is recorded, processed, summarized and reported within the
      time
      periods specified in SEC rules and forms, and that such information is
      accumulated and communicated to our management and our Board of Directors,
      as
      appropriate, to allow timely decisions regarding disclosure. In designing and
      evaluating the disclosure controls and procedures, management recognizes that
      any controls and procedures, no matter how well designed and operated, can
      provide only reasonable assurance of achieving the desired objectives, and
      management necessarily is required to apply its judgment in evaluating the
      cost-benefit relationship of possible controls and procedures.




Our
      management, including the principal executive officer and principal financial
      officer, do not expect that our disclosure controls and procedures will prevent
      all error and fraud. A control system, no matter how well conceived and
      operated, can only provide reasonable, not absolute, assurance that the
      objectives of the control system are met. Further, the design of a control
      system must reflect the fact that there are resource constraints, and the
      benefits of controls must be considered relative to their costs. Because of
      the
      inherent limitations in all control systems, no evaluation of controls can
      provide absolute assurance that all control issues and instances of fraud,
      if
      any, within our Company have been detected. These inherent limitations include
      the realities that judgments in decision-making can be faulty, and that
      breakdowns can occur because of simple error or mistake. Additionally, controls
      can be circumvented by the individual acts of some persons, collusion of two
      or
      more people, or by management override of the control. The design of any system
      of controls also is based in part upon certain assumptions about the likelihood
      of future events, and there can be no assurance that any design will succeed
      in
      achieving its stated goals under all potential future conditions.




(b)
      Changes in internal controls over financial reporting.




There
      were no significant changes in our internal control over financial reporting
      that could significantly affect our controls during quarter ended September
      30,
      2006. We have not identified any significant deficiency or material weaknesses
      in our internal controls, and therefore there were no corrective actions
      taken.




**PART
      II. - OTHER INFORMATION**




**Item
      1. Legal Proceedings -**




Solargy
      System Inc does not have any current legal proceedings




**Item
      2. Changes in Securities -**




During
      the six months ended June 30, 2008, The Company issued 6,700,000 shares of
      stock
      at fair value of $128,400 for compensation to an employee. Additionally the
      company issued 15,400,000 shares of stock at fair value of $521,600 for
      consulting services




On
      August
      1, 2006, the Company merged with SBD International (SBD), with SBD being the
      surviving entity. Upon execution of the merger an exchange of one share of
      SBD
      common stock was issued for every 25 shares of The Company's common stock.
      This
      reduced the outstanding shares to approximately 8,794,000 shares of common
      stock.




On
      August
      17, 2006 5,100,000 shares, the entire outstanding Series A Preferred Stock,
      was
      converted into 265,200,000 shares of common stock at an exchange ratio of 1
      to
      52.




On
      August
      31, 2006 an employee shareholder returned 143,000 shares of stock for no
      compensation.




**Item
      3. Defaults Upon Senior Securities - NONE**




**Item
      4. Submission of Matters to a Vote of Securities Holders -
      NONE**




**Item
      5. Other Information - NONE**




**Item
      6. Exhibits**




**Exhibits**




31
      13a-14(a)/15d-14(a) Certification of Chief Executive Officer and Acting Chief
      Accounting Officer, Carl Nurse




32
      Section 1350 Certification, Carl Nurse - Chief Executive Officer and Chief
      Accounting Officer




19




**SIGNATURE**




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




**SOLARGY
      SYSTEMS INC**


By
              /s/
                  Carl NurseCarl
                  Nurse, Chief Executive Officer andChief
                  Financial OfficerOctober
                  22, 2008
  20