U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 10-Q



(Mark One)



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|R | QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED March 31, 2009.



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|£ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD OF _________ TO _________



Commission File Number: 000-19846



Current Technology Corporation

(Exact name of registrant as specified in its charter)



Canada__N/A_____State or other jurisdiction of(I.R.S. Employerincorporation or organizationIdentification No.)




800 West Pender Street, Suite 1430

Vancouver, B.C., Canada V6C 2V6

(Address of principal executive offices, including zip code)



Registrants telephone number: (604) 684-2727





Indicate by check mark whether the registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes oNo R



Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o   No o



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company:



Large accelerated filer o

Accelerated filer o

Non-accelerated filer o    Smaller Reporting company R



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

Yes oNo R



As of May 28, 2009, there were 155,646,285 shares of the Registrant’s no par value Common Stock (“Common Stock”), the Registrants only outstanding class of voting securities, outstanding.









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CURRENT TECHNOLOGY CORPORATION

QUARTERLY REPORT ON FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED March 31, 2009





PART I  FINANCIAL INFORMATION







ITEM 1. Financial Statements (unaudited)





INDEX TO CONSOLIDATED FINANCIAL STATEMENTS





Consolidated Financial Statements:



Consolidated Balance Sheets as of December 31, 2008 and March 31, 2009

3



Consolidated Statements of Operations for the three month period ended

March 31, 2009 and March 31, 2008

4



Consolidated Statements of Cash Flow for the three month period ended

March 31, 2009 and March 31, 2008

5



Condensed Notes to Consolidated Financial Statements

6





















[The balance of this page has been intentionally left blank.]





See accompanying notes -



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CURRENT TECHNOLOGY CORPORATION

(Incorporated under the Canada Business Corporations Act)

Interim Consolidated Balance Sheet

March 31, 2009 and December 31, 2008

(United States Dollars)



AssetsMarch 31, 2009 UnauditedDecember 31, 
 2008Current:Cash and cash equivalents$13,972$42,949Accounts receivable23,19761,500Due from related parties (Note 14)100,000100,000Inventories468,282492,644Prepaid expenses17,97317,973Total Current Assets623,424765,066Long term asset11,825-Equipment, Furniture, & Leased Assets (Note 8)485,858484,104Less accumulated depreciation168,868138,290Total Equipment, Furniture & Leased Assets316,990345,814Total Assets$952,239$1,060,880Liabilities and Stockholders DeficiencyCurrent:Accounts payable$645,809$606,186Due to related parties (Note 14)314,812230,479Stock based debt settlement-270,000Accrued liabilities242,975136,869Subscription liability (Note 10)37,500272,500Unearned revenue18,03818,038Total current liabilities1,259,1341,534,072Liabilities from discontinued operations (Note
    7)657,417657,417Convertible promissory note (Note 9)1,564,7361,428,365Total liabilities3,481,2873,619,854Stockholders Deficiency:Common shares without par value (Note 10)32,082,02830,835,668Additional paid-in capital (Note 11)4,385,9094,391,752Accumulated deficit(38,683,630)(37,473,039)Accumulated other comprehensive loss(313,355)(313,355)Total stockholders deficiency(2,529,048)(2,558,974)Total Liabilities and Stockholders Deficiency952,239$1,060,880Going Concern (Note 3)Commitments (Note
    17)Subsequent Events (Note
    18)Approved by Directors:
__ Robert Kramer
    __ George Chen




See accompanying notes -



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CURRENT TECHNOLOGY CORPORATION

Interim Consolidated Statement of Operations and Deficit

For the three months ended March 31

(Unaudited)

(United States Dollars)



20092008Revenue$90,760$11,612Cost of sales24,77810,03865,9821,574Selling, General and Administrative Costs and ExpensesGeneral & Administrative145,43665,631Salaries & wages572,940344,618Legal, auditing and filing fees41,51550,920Amortization and depreciation30,578-Consulting361,69670,400Corporate Communications80,20479,985Interest on convertible promissory note36,37028,293Foreign Exchange (Recovery)7,834(5,800)Total Selling, General and Administrative Costs and Expenses1,276,753634,047Income (Loss) from operations before income taxes, minority interests and equity in net loss (income) from associated companies(1,210,591)(632,473)Income taxes--Loss from associated companies before acquisition--Minority interest--Equity in net loss (income) from associated companies-57,623Net loss(1,210,591)(690,096)Deficit, beginning(37,473,039)$(28,660,295)Deficit, ending,$(38,683,630)$(29,350,391)Basic and fully diluted net loss per share$        (0.008)$       (0.006)Weighted average shares outstanding153,870,449121,578,045






See accompanying notes -



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CURRENT TECHNOLOGY CORPORATION

Interim Consolidated Statement of Cash Flows

For the three months ended March 31

(Unaudited)

(United States Dollars)







20092008Operating Activities:Net Loss$(1,210,591)$(690,096)Adjustments to reconcile net loss to net cash provided by (used in) operating activities-Amortization and Depreciation30,578-Bad debt expense9,50410,250Additional paid in capital11,516314,027Shares issued for services provided280,00060,000Interest on promissory note36,37028,293Minority interest--Loss before acquisition--Equity from associated companies-57,623Professional fees accrued8,00025,000Exchange adjustment(9,502)(471)Changes in operating assets and liabilities-(Increase) Decrease in accounts receivable38,30314,675(Increase) Decrease in inventory12,537-(Increase) Decrease in prepaid expenses-2,563(Increase) Decrease in subscription receivable-49,412Increase (Decrease) in accounts payable222,06225,943Increase (Decrease) in subscription liabilities(235,000)-Net cash used in operating activities(806,223)(102,781)Cash flows from investing activitiesInvestment in Celevoke-(1,517,159)Fixed assets purchase1,754-Net cash used in investing activities1,754(1,517,159)Cash flows from financing activities:Issuance of new shares679,0001,500,000Subscription advances-150,000Convertible promissory note100,000-Net cash provided by financing activities779,0001,650,000Net Increase in Cash and Cash Equivalents(28,977)30,060Cash and Cash Equivalents, beginning42,94933,498Cash and Cash Equivalents, ending$   13,972$    63,558Non-cash transactions not disclosed above:Shares issued for settlement of accounts payables$270,000-Shares issued for cashless warrants exercise17,360-




See accompanying notes -



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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)





1.

Basis of Presentation:



The accompanying unaudited interim consolidated financial statements have been prepared in accordance with US generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all the information and notes required by US generally accepted accounting principles for complete financial statements of Current Technology Corporation and its subsidiaries (the Company).  In the opinion of management, all adjustments consisting of normal recurring adjustments necessary for a fair presentation have been included.  Interim results are not necessarily indicative of the results that may be expected for the year.  The unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2008 included in the Companys Form 10-K filed with the Securities and Exchange Commission (the SEC) in April 2009.



The consolidated balance sheet at December 31, 2008 has been derived from the audited financial statements at that date but does not include all the information and notes required by US generally accepted accounting principles for complete financial statements.



The acquisitions described in Note 7 below significantly affects the comparability of the financial information for the three month period then ended.





2.

Nature of Operations:



On January 31, 2008, the Company entered into a securities purchase agreement with Celevoke, Inc. (Celevoke).  On May 23, 2008, the Company completed the purchase of 102 shares of Celevoke common stock for an aggregate purchase price of $2.5 million. During the remainder of the year ended December 31, 2008, the Company purchased an additional 55 common shares of Celevoke for a price of $1,750,000, and during the quarter ended March 31, 2009, the Company purchased an additional 6 common shares of Celevoke for a price of $200,000.  The Company has a 62% interest in Celevoke as at March 31, 2009.





The Company has developed an electrotherapeutic medical device designed to stimulate hair regrowth  (ElectroTrichoGenesis or ETG) and a cosmetic unit designed to improve the appearance of thinning hair (CosmeticTrichoGenesis or CTG).  ETG and CTG are marketed as TrichoGenesis platform products. The Company has entered into an exclusive distribution agreement with an entity based in the United States for the placement on a revenue sharing basis of its TrichoGenesis platform products in the United States, Canada, South America (excluding Brazil), Europe and Russia. The Company is working in concert with its United States based distributor to attempt to lower the cost of ETG devices and CTG units by having non-proprietary components of the chair and hood manufactured in China.

The Company was incorporated on June 3, 1986 and commenced operations on April 21, 1987. The Company currently does not generate sufficient funds from operations to support continuing activities and has financed expenditures through private and public offerings of equity securities and the private placement of debt instruments. The common shares of the Company trade on the OTCBB in the United States under symbol "CRTCF".













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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)





3.

Going Concern:



These unaudited consolidated financial statements have been prepared on the going concern assumption that the Company will be able to realize its assets and discharge its liabilities in the normal course of business.



A net loss of $1,210,591 was incurred during the three months (2008: $690,096).  Recurring losses have been reported since inception, which have resulted in an accumulated deficit of $38,683,630 (2008: $29,350,391). The Company may attempt to obtain additional debt or equity financing but there can be no assurance that such capital will be available in sufficient amounts or on acceptable terms and there is no certainty that these discussions will be concluded successfully.



The ability of the Company to continue as a going concern is dependent on the successful conclusion of these discussions, the receipt of additional financing, and/or proceeds on the sale of assets and ultimately its ability to generate sufficient cash from operations and financing sources to meet its obligations as they come due.



If the Company is unable to continue as a going concern, material adjustments may be required to the carrying value of assets and liabilities and to the classifications used on the balance sheet.



Any inability to obtain additional financing when needed would have a material adverse affect on the Company including possibly requiring the Company to significantly reduce or cease its operations.



4.

Accounting changes:



a)

Change in Functional Currency





Effective January 1, 2008, the Company changed its functional currency to the U.S. dollar from the Canadian dollar. With the acquisition of Celevoke, Inc (Note 7), the Companys primary economic environment changed from Canada to United States.  This has resulted in significant changes in economic facts and circumstances that clearly indicate that the functional currency has changed.  The Company accounted for the change in functional currency prospectively.



The financial statements of the Company for the year ended December 31, 2007 which is based on the Canadian functional currency, has been translated into the U.S. reporting currency using the current rate method as allowed by Statement of Financial Accounting Standards No.52 ("SFAS 52") as follows:  assets and liabilities using the rate of exchange prevailing at the balance sheet date; stockholders' deficiency using the applicable historic rate; and revenue and expenses using the monthly average rate of exchange. Translation adjustments have been included as part of the accumulated other comprehensive income.



b) Fair value measurement



In February 2008, the FASB issued FASB Staff Position (FSP) FAS 157-2, which delays the effective date of SFAS No. 157 to fiscal years beginning after November 15, 2008 and interim periods within those fiscal years, for all non-financial assets and non-financial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually).  Examples of items to which the deferral would apply include, but are not limited to:











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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)





4.

Accounting changes (continued):



·

Non-financial assets and non-financial liabilities initially measured at fair value in a business combination or other new basis event, but not measured at fair value in subsequent periods (non-recurring fair value measurements)

·

Reporting units measured at fair value in the first step of a goodwill impairment test and non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment test (measured at fair value on a recurring basis, but not necessarily recognized or disclosed in the financial statements at fair value)

·

Indefinite-lived intangible assets measured at fair value for impairment assessment (measured at fair value on a recurring basis, but not necessarily recognized or disclosed in the financial statements at fair value)

·

Long-lived assets (asset groups) measured at fair value for an impairment assessment (non-recurring fair value measurements); and

·

Liabilities for exit or disposal activities initially measured at fair value (non-recurring fair value measurements)



The company has adopted SFAS No. 157 on January 1, 2009, as required, and the adoption of SFAS 157 resulted in no impact on the Companys financial position, results of operations or cash flows.



c) Derivative instruments and hedging activities



In March 2008, the FASB issued Statement No. 161, Disclosure about Derivative Instruments and Hedging Activities  an amendment of FASB Statement No. 133 (SFAS 161).  SFAS 161 requires companies to provide enhance disclosures regarding derivative instruments and hedging activities.  It requires companies to better convey the purpose of derivative use in terms of the risks that such company is intending to manage.  Disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under SFAS No. 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect a companys financial position, financial performance, and cash flows are required.  SFAS 161 contains the same scope as SFAS 133 and is effective for fiscal years and interim periods beginning after November 15, 2008.  The Company adopted SFAS 161 on January 1, 2009, as required, and the adoption of SFAS 161 resulted in no impact on the Companys financial position, results of operations or cash flows.



d) Transfers of financial assets and repurchase financing transactions



In February 2008, the FASB issued a FASB Staff Position (FSP) on Accounting for Transfers of Financial Assets and Repurchase Financing Transactions (FSP FAS 140-3).  FSP FAS 140-3 addresses the issue of whether or not these transactions should be viewed as two separate transactions or as one linked transaction.  The FSP includes a rebuttable presumption that presumes linkage of the two transactions unless the presumption can be overcome by meeting certain criteria.  The FSP will be effective for fiscal years beginning after November 15, 2008 and will apply only to original transfers made after that date.  The Company adopted FAS 140-3 on January 1, 2009, as required, and the adoption of SFAS 161 resulted in no impact on the Companys financial position, results of operations or cash flows.













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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)





4.

Accounting changes (continued):



e) Useful life of intangible assets



In April 2008, the FASB issued FASB Staff Position (FSP) No. SFAS 142-3, Determination of the Useful Life of Intangible Assets (FSP SFAS 142-3).  FSP SFAS 142-3 amends the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under SFAS No. 142, Goodwill and Other Intangible Assets (SFAS 142).  The intent of FSP SFAS 142-3 is to improve the consistency between the useful life of a recognized intangible asset under SFAS 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS No. 141R (revised 2007), Business Combination (SFAS 141R) and other applicable accounting literature.  The Company adopted FAS 142-3 on January 1, 2009, as required, and the adoption of FAS 142-3 resulted in no impact on the Companys financial position, results of operations or cash flows.



f) Hierarchy of Generally Accepted Accounting Principles



In May 2008, the FASB issued SFAS No. 162, Hierarchy of Generally Accepted Accounting Principles (SFAS 162).  This statement is intended to improve financial reporting by identifying a consistent framework, or hierarchy, for selecting accounting principles to be used in preparing financial statements of nongovernmental entities that are presented in conformity with GAAP.  This statement will be effective 60 days following the US Securities and Exchange Commissions approval of the Public Company Accounting Oversight Board amendment to AU Section 411, The Meaning of Present Fairly in Conformity with Generally Accepted Accounting Principles.  The Company is currently evaluating the potential impact, if any, of the adoption of SFAT 162 on its financial position, results of operations or cash flows.



In June 2008, the FASB issued FSP No. EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (FSP EITF 03-6-1).  FSP EITF 03-6-1 affects entities that accrue cash dividends on share-based payment awards during the awards service period when dividends do not need to be returned if the employees forfeit the awards.  The Company adopted FAS 162 on January 1, 2009, as required, and the adoption of FAS 162 resulted in no impact on the Companys financial position, results of operations or cash flows.



h) Collaborative arrangements



In December 2007, the FASB ratified the consensus reached by the EITF on EITF Issue No. 07-1, Accounting for Collaborative Arrangements (EITF 07-1). EITF 07-1 requires collaborators to present the results of activities for which they act as the principal on a gross basis and report any payments received from (made to) other collaborators based on other applicable GAAP or, in the absence of other applicable GAAP, based on analogy to authoritative accounting literature or a reasonable, rational, and consistently applied accounting policy election. Further, EITF 07-1 clarified the determination of whether transactions within a collaborative arrangement are part of a vendor-customer (or analogous) relationship subject to EITF Issue No. 01-9, Accounting for Consideration Given by a Vendor to a Customer (Including a Reseller of the Vendors Products). EITF 07-1 became effective for the Company beginning on January 1, 2009. The implementation of EITF 07-1 did not have a material effect on the Companys consolidated financial statements.













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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)





6.

Summary of Significant Accounting Policies:



a)

Equipment, Furniture and Capital Lease



Leasehold, equipment and furniture are stated at cost.  Maintenance and repairs are charged to expense as incurred.  Expenditures, which extend the physical or economic life of the assets are capitalized and depreciated.  Depreciation is provided using the straight-line method over the estimated useful life as follows:



Equipment

1-5 years

Furniture

3 years

Leasehold improvement

1.5 years

Leased assets

5 years



b)

Impairment of Long-Lived Assets



In accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, long lived assets, such as equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimate undiscounted future cash flow expected to be generated by the asset.  If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeded the fair value of the asset.  Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or the fair value less costs to sell, and are no longer depreciated.  The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet.





c)

Revenue recognition



The Company recognizes revenue in accordance with Securities and Exchange Commission Staff Accounting Bulletin No. 104, Revenue Recognition in Financial Statements ("SAB 104").



i)

The following policies have been established with respect to revenue recognition on the sale of ETG devices and CTG units:



1)

Purchase/sale negotiations conclude with an agreement to purchase and are also secured by a deposit;



2)

Goods are shipped when collection of the balance of the purchase price is reasonably assured.  This is indicated by:

a)

actual receipt of funds from distributors or customers; or



b)

secured lease or term financing by distributors or customers which would result in immediate payment of the balance upon delivery; or



c)

distributors or customers exceptional credit and operating history, and an agreement in writing to specific terms of payment;







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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)





6.

Summary of Significant Accounting Policies (continued):



c)

Revenue recognition (continued):



3)

Revenue is recognized only after goods are shipped.  At this point collection is reasonably assured and risks and rewards of ownership have been transferred.



4)

Revenue from royalty agreements is recognized when earned, which is generally the period in which the services to which the royalty relates are provided to third parties and collection of the balance owing is reasonably assured.



Customer deposits, as required by the Companys revenue recognition policy above, received in advance are treated as deferred revenue until goods are shipped.  Only then is revenue recognized.



Revenue recognition relating to the Companys subsidiary, Celevoke Incs wireless asset tracking or control systems and internet hosting operation is recognized when evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable.  The Companys subsidiary enters into certain arrangements, where it is obligated to deliver multiple products and / or services (multiple elements).  In these arrangements, the Companys subsidiary generally allocates the total revenue among the elements based on the sales price of each element when sold separately (vendor-specific objective evidence).



d)

Deferred Revenues



Deferred revenue is attributable to deposits made by customers for goods and services not yet rendered.  Unearned revenue from certain licensing programs represents customer billings, paid either upfront or at the beginning of each billing coverage period, that are accounted for as subscriptions with revenue recognized ratably over the billing coverage period.  For certain other licensing arrangements, revenue attributable to undelivered elements is based on the sales price of those elements when sold separately and is recognized ratably on a straight-line basis over the related products life cycle.  Deferred revenues include subscription services where we have been paid upfront and earn the revenue when we provide the service or otherwise meet the revenue recognition criteria.



e)

Cost of Sales



Cost of revenue includes direct costs to produce and distribute products  or services and the direct costs associated with the delivery of online services, professional services, product support and resold hardware.



f)

Equity Investment



Purchased equity interests that are not publicly traded and / or do not have a readily determinable fair value are accounted for pursuant to the equity method of accounting if the Companys ownership position is large enough to significantly influence the operating and financial policies of an investee.  This is generally presumed to exist when we own between 20% - 50% of a corporation.  The Companys share of earnings and losses in equity method investees is included in loss from equity method investments on the Consolidated Statement of Operations.

For investments accounted for using the equity method of accounting, management evaluates information such as budgets, business plans, financial statements of the investee in determining





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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)





6.

Summary of Significant Accounting Policies (continued):



f)

Equity Investment (continued):



whether an other-than-temporary decline in value exists.  Factors indicative of an other-than-temporary decline in value include, but not limited to, recurring operating losses and credit defaults.  For any of the Companys investments in which the estimated fair value is less than its carrying value, the Company considers whether the impairment of that investment is other-than-temporary.



g)

Use of estimates



The preparation of consolidated financial statement in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amount of revenues and expenses during the reported period.  Because of the use of estimates inherent in the financial reporting process, actual results could differ from those estimates.



h)

Fair value of financial instrument



Effective January 1, 2008, we adopted SFAS 157, Fair Value Measurements ("SFAS 157"). SFAS 157 provides a definition of fair value, establishes a hierarchy for measuring fair value under generally accepted accounting principles, and requires certain disclosures about fair values used in the financial statements.

SFAS 157 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under SFAS 157 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following:

·

Level 1  Quoted prices in active markets for identical assets or liabilities

·

Level 2  Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

·

Level 3  Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.



The fair value of cash and cash equivalents; accounts receivable; accounts payable; loans; and mortgages for all periods presented approximate their respective carrying amounts.

















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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)





7.

Acquisitions:



Celevoke Inc



On January 31, 2008, the Company entered into a securities purchase agreement with Celevoke, Inc (Celevoke).  Under the agreement the Company purchased 102 shares of Celevoke common stock for an aggregate purchase price of $2,500,000.  The 102 shares were purchased in four installments of 20 shares and a fifth installment of 22 shares.



As at March 31, 2008, the Company completed the purchase of 60 shares out of the 102 shares of Celevoke common stock for total consideration of $1,500,000.  The 60 shares gave the Company 37.5% equity interest in Celevoke.  Consequently, the Company has accounted for this 37.5% interest in Celevoke as an equity investment.



On May 23, 2008, the Company completed the purchase of the remaining 42 shares of Celevoke and increased its ownership interest in the voting equity of Celevoke from 37.5% to 51%.  Effective with the close of that transaction on May 23, 2008, the Company began consolidating Celevokes financial results into the Companys interim consolidated financial statements.



From May 23, 2008 through December 31, 2008, the Company purchased an additional 55 common shares of Celevoke for a price of $1,750,000 and increased its ownership interest in the voting equity of Celevoke from 51% to 61%.  During the quarter ended March 31, 2009, the Company purchased an additional 6 common shares of Celevoke for a price of $200,000 and increased its ownership interest in the voting equity of Celevoke from 61% to 62%.





The acquisition was recorded under the purchase method of accounting and the purchase price was allocated based on the fair value of the assets acquired and the liabilities assumed to the extent of the 62% ownership interest acquired as of the various date the payments were made under step acquisition accounting.    The remaining 38% portion of the acquired net assets represents the minority interest ownership in Celevoke.



Star One Telematica S/A



On May 5, 2008, Celevoke, acquired 521 common shares of Star One Telematica S/A, a company incorporated under the laws of Brazil in April 2008, for a 51% interest. At the time of purchase, Star One was a newly formed company and therefore has no net assets. The purchase price for this 51% interest was $1,330,000.   Celevoke believed that the purchase could give it entry into the Brazilian market for Telematics Solutions and Tracking Systems before implementation of the law requiring tracking devices in vehicles commencing in August 2009.  Potential customers included local bus operators, regional trucking companies and tertiary service providers.



On March 20, 2009, Celevoke indefinitely suspended StarOnes operation due to the state of the capital markets and the inability to obtain sufficient financing to support ongoing operations.  Celevoke wrote off its investment in StarOne for the December 31, 2008 year end, taking a charge of $1,911,437. 
The Company also recorded a net liability of $657,417 on its balance sheet and
loss of $165,732 as a result of treating the subsidiary as discontinued
operation at December 31, 2008 year end.

















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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)







8.

Equipment, Furniture and Leased Assets:



CostAccumulated Amortization2009 Net2008 NetLeased assets$   212,500$95,625$  116,875$           -Furniture  and fixtures10,9003,8017,099-Equipment243,25555,144188,111-Leasehold improvement19,20314,2984,905-$485,858$168,868$   316,990$          -




9.

Convertible Promissory Note:



On September 29, 2008, the Company extended the maturity date of a previously issued  convertible promissory note from January 16, 2009 to January 19, 2010.  The extension of the maturity date has been accounted for as a modification to the original convertible promissory note.



As additional consideration for restructuring, the Company issued the holder of the convertible promissory note 5,200,000 share purchase warrants exercisable for common shares at $0.17 per share.  The expiry date of these warrants is the later of December 31, 2013 or the date which is two years after the note is fully repaid.



The note bears interest at 10% per annum and the holder of the convertible promissory note has the right to convert all or part of the note to common shares of the Company at a conversion price of $0.10 per share.





The note is secured by a security agreement under which the Company agreed to grant the lender a security interest over all the Companys property and assets, including all intellectual property.



At March 31, 2009At December 31, 2008Interest payable$36,371$33,646Convertible promissory note1,528,3651,394,719$1,564,736$1,428,365








Volatility factor of the market82.94%Price of the Company shares$0.083- $0.42Dividend yield0%Weighted average expiry date of options5 yearsRisk free interest rate3.00%






















Page14



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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)







10.   Share Capital:



a)

Authorized 

Unlimited Common shares without par value



Unlimited Class A Preference shares without par value



b)

Issued and fully paid 

March 31, 2009December 31, 2008Number ofNumber ofSharesAmountSharesAmountBalance, beginning141,911,253$30,835,667103,892,023$25,787,959Common Shares Issued -- For cash2,028,571284,00034,975,0004,695,000- For settlement of services
provided4,300,000550,000875,000103,750- Exercise of options----- Exercise of warrants6,906,461412,3612,169,230248,958Balance, ending155,146,285$32,082,028141,911,253$30,835,667








Options, warrants and convertible debt will have an anti-dilutive effect on loss per share







c)

Subscription Liability -



The Company received $37,500 for the private placement in which the underlying units had not been issued as of March 31, 2009.





11.  Additional Paid-In Capital:



The Company accounts for its stock-based compensation under the fair value based method using the Black-Scholes Option Pricing Model.  $11,516 of compensation expense relating to vested stock options has been charged to the additional paid-in capital account.  Options granted during the period were valued using the following assumptions:







Volatility factor of the market54.58% to 87.27%Price of the Company shares$0.09- $0.42Dividend yield0%Weighted average expiry date of options5 yearsRisk free interest rate3.00%-3.44%














Page15



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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)







12.

Stock Options:



From time to time, the Company grants incentive stock options to directors, officers, employees and promoters of the Company.  On September 2, 2004, the Company adopted the 2004 Stock Option and Stock Bonus Plan. Options outstanding on March 31, 2009 are as follows:



Expiry DateNumber of SharesOption PriceSeptember30,2009 *200,000$0.30December22,2009175,000$0.25December23,2009 *100,000$0.25January22011375,000$0.31August222011 *200,000$0.19August2920121,000,000$0.08September1620127,495,000$0.09January720135,000,000$0.15January102013 **50,000,000$0.14February2120131,050,000$0.20February242013 ***500,000$0.21July32013 ****600,000$0.23July32013 ***300,000$0.23July32013 ***100,000$0.23August152013600,000$0.32September52013 ****600,000$0.30December302013 *****850,000$0.3069,145,000






*

2004 Stock Option and Stock Bonus Plan



**

2004 Stock Option and Stock Bonus Plan

12.5 million vested on January 31, 2008, remainder vesting based on performance of Celevoke, Inc.





Cumulative Net Pre-Tax Profit of Celevoke up to and including June 30, 2010Cumulative Options to be Vested$1,000,0003,750,000$2,000,0007,500,000$3,000,00011,250,000$4,000,00015,000,000$5,000,00018,750,000$6,000,00022,500,000$7,000,00026,250,000$8,000,00030,000,000$9,000,00033,750,000$10,000,00037,500,000












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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)







12.

Stock Options (continued):



***

2004 Stock Option and Stock Bonus Plan

33% vested December 31, 2008

33% vested December 31, 2009

34% vested December 31, 2010

|                                                                                             |            |        
|-------------------------------------------------------------------------------------------- | ---------- | -------
|****
2004 Stock Option and Stock Bonus Plan

Vesting schedule:                               |           
|100,000 options on the completion of 1st 12 months of employment                            
|200,000 options on the completion of 2nd and 3rd years of employment                        
|Remaining 300,000 options tied to vesting schedule of performance based options listed below
|                                                                                             |            |        
|Cumulative pretax profit in Celevoke, Inc                                                    |           
|1st                                                                                          | $1,000,000 | 30,000 
|2nd                                                                                          | $1,000,000 | 30,000 
|3rd                                                                                          | $1,000,000 | 30,000 
|4th                                                                                          | $1,000,000 | 30,000 
|5th                                                                                          | $1,000,000 | 30,000 
|6th                                                                                          | $1,000,000 | 30,000 
|7th                                                                                          | $1,000,000 | 30,000 
|8th                                                                                          | $1,000,000 | 30,000 
|9th                                                                                          | $1,000,000 | 30,000 
|10th                                                                                         | $1,000,000 | 30,000 
|                                                                                             |            | 300,000





The following table summarizes information about stock options to purchase common shares outstanding and exercisable at March 31, 2009:



As at March 31, 2009
WeightedAs at December 31, 2008
WeightedCommonAverageCommonAverageSharesExercise PriceSharesExercise PriceOutstanding, beginning69,145,000$0.159,545,000$0.12- Granted--60,200,0000.15- Cancelled--(600,000)0.21Outstanding, ending69,145,000$0.1569,145,000$0.15Exercisable, ending28,571,307$0.1528,628,299$0.15






















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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)





12.

Stock Options (continued):





The following table summarizes information about stock options outstanding and exercisable at March 31, 2009:

Weighted NumberAverageWeighted NumberOutstanding atRemainingOutstandingExercise Price2009Contractual Life2008$0.081,000,0003.67years1,000,000$0.097,495,0003.71years7,495,000$0.1412,500,0006.50years12,500,000$0.155,000,0004.02years5,000,000$0.19200,0002.64years200,000$0.201,050,0004.15years1,050,000$0.21299,0294.16years166,130$0.23110,6114.50years267,169$0.30200,0000.75years200,000$0.25275,0000.98years275,000$0.31375,0002.01years375,000$0.3266,6674.68years100,00028,571,30728,628,299








13.  Warrants:



The following table summarizes information about warrants outstanding on March 31, 2009:

Expiry DateNumber of SharesExercise PriceJanuary 9, 20072,000,000$0.251,3January 9, 20072,980,000$0.101,3January 9, 20076,949,766$0.051,3January 9, 2007179,167$0.151,3January 9, 20071,600,000$0.501,3June 30, 20092,500,000$0.053June 15, 2009600,000$0.153June 15, 20091,117,696$0.205July 15, 2009200,000$0.205January 2, 20103,200,000$0.252,3March 25, 20101,200,000$0.255May 31, 20101,120,000$0.255July 25, 2010200,000$0.15September 21, 2010300,000$0.255September 21, 20102,852,000$0.255December 30, 2010600,000$0.255March 2, 2011144,000$0.255December 31, 20114,000,000$0.103,4February 12, 20121,750,000$0.1256March 30, 20127,200,000$0.105April 30, 20125,000,000$0.123,7August 9, 20125,150,000$0.10December 26, 20124,000,000$0.10






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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)







13.
Warrants (continued):


December 31, 20125,000,000$0.17January 10, 201320,000,000$0.153February 26, 20131,000,000$0.205April 3, 20131,000,000$0.20May 19, 20132,000,000$0.503August 5, 20135,000,000$0.453August 15, 2013650,000$0.453October 2, 20135,000,000$0.25December 31, 20135,200,000$0.173,9February 20, 20142,028,571$0.253




1

The expiry date for each set of warrants shall be the later of:

a)

January 9, 2007; and

b)

the date that is two years after the date on which the convertible promissory note (see Note 6) is paid in full.



2

The expiry date shall be the later of:

a)

January 2, 2010; and

b)

the date that is two years after the date on which the convertible promissory note (see Note 6) is paid in full.



3

These warrants have a cashless exercise provision.



4.

The expiry date shall be the later of:

a)

December 31, 2011; and

b)

the date that is two years after the date on which the convertible promissory note (see Note 6) is paid in full.



5.

The Company may accelerate the expiration date of the warrants if the average closing price equals or exceeds US$0.50 for 20 consecutive days.



6.

750,000 warrants are vested; 750,000 vest on sale of the 10th unit to Hair Envy, LLC; and 1,000,000 vest on the ordering of the 200th unit.



7.

The warrants vest in increment of 500,000 based on the Companys portion of profit derived from the sale of Spy-N-TellTM units.  The Company must earn $11,500,000 from the joint venture in order for the 5 million warrants to be fully vested.



8.

The expiry date shall be the later of:

a)

December 31, 2012; and

b)

the date that is two years after the date on which the convertible promissory note (see Note 6) is paid in full.



9.

The expiry date shall be the later of:

a)

December 31, 2013; and

b)

the date that is two years  after the date on which the convertible promissory note (see Note 6) is paid in full.

































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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)





13.

Warrants (continued):





The following table summarizes information about warrants to purchase common shares outstanding and exercisable at March 31:

As at
March 31,
2009As at December 31, 2008CommonAverageCommonAverageSharesExercise PriceSharesExercise PriceOutstanding, beginning106,767,629$0.1468,248,629$0.14Issued2,028,571$0.2540,175,000$0.18Exercised(7,075,000)$0.06(1,656,000)$0.13Expired----Outstanding, ending101,721,200$0.12106,767,629$0.14Exercisable, ending94,971,200$0.12100,017,629$0.14








14.

Related Party Transactions:



Transactions during the three months ended March 31,20092008Salaries and consulting fees accrued or paid to directors and companies controlled by directors of the Company.$70,189$70,197These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by related parties.Balance at March 31,20092008Salaries, consulting fees and other payable to directors and companies controlled by directors of the Company$25,215$9,306Other payables to directors and companies controlled by directors of the Companys subsidiary.$314,812$        -Receivable from company controlled by director of the Companys subsidiary$100,000$        -Convertible promissory note owing to a holder of more than 10% of the Companys outstanding common shares.
(Refer to note 9 for terms and conditions relating to the convertible promissory note)$1,564,736$1,163,132




Unless otherwise noted, all related party transactions noted above have been recorded at the exchange amount



15.

Foreign Currency Risk:



The company has cash, accounts receivable, inventory, prepaid expenses and accounts payable and accrued liabilities denominated in foreign currency.  The carrying value of these balances may change due to the volatility of foreign exchange rates.  The Company does not enter into hedging transactions.









Page20



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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)







16.

Segmented Information:



The major operations relate to the sales of GPS Telematics devices and services as well as sales and royalties charged on trichogenesis machines.

Three months ended March 31,20092008Revenues from external customersGPS Division$ 22,715$-Trichogenesis Division68,04511,612Consolidated$ 90,760$11,612Income (loss) before taxes, minority interests and equity net loss from associated companiesGPS Division$(720,112)$-Trichogenesis Division(490,479)(632,473)Consolidated$(1,210,591)$(632,473)Total AssetsGPS Division$648,148$-Trichogenesis Division304,0913,152,367Consolidated$952,239$3,152,367




17.

Commitments:



An agreement was entered into to lease office space from May 1, 2005 to April 30, 2011.  The future minimum lease payments for this commitment are as follows:



|     |        
|---- | -------
|     |        
|2009 | $19,563
|2010 | 28,568 
|2011 | 9,937  
|     | $58,068



Lease agreements were entered into with respect to automotive and office equipment. The future minimum lease payments for these commitments are as follows:



|     |        
|---- | -------
|     |        
|2009 | $11,929
|2010 | 8,022  
|2011 | 4,886  
|2012 | 2,647  
|2013 | 1,544  
|     | $29,028







18.

Subsequent Events:



| |  | 
| |  | 
| |  | 

a)

Share Capital



Subsequent to March 31, 2009, the Company issued 500,000 common shares for settlement of debt.







Page21



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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)





19.

Differences between Canadian and United States Generally Accepted Accounting Principles:



The Company prepares its unaudited interim consolidated financial statements in accordance with US generally accepted accounting principles (US GAAP) which, as applied in these unaudited interim consolidated financial statements, conform in all material respects to Canadian generally accounting principles (Canadian GAAP), except for the differences below as follows:



(a)

Convertible Promissory Note 



(i)

Equity component of convertible promissory note



Under Canadian GAAP, the liability component of the convertible promissory note is calculated as the present value of the scheduled cash payments of interest and principal due under the terms of the note discounted at the rate of interest applicable to a debt only instrument of comparable terms. The equity component which represents the value ascribed to the holder's option to convert the principal balance into equity, and is calculated as the difference between the amount issued and the liability component.  Interest on the convertible promissory note, calculated as the amount required to accrete the liability component back to the amount payable on maturity, is charged to interest expense.



Under US GAAP, in accordance with APB Opinion No. 14 (APB 14), Accounting for Convertible Debt and Debt Issued with Stock Purchase Warrants, no portion of the proceeds from the issuance of convertible debt securities should be accounted for as attributable to the conversion feature.  Emerging Issue Task Force  98 (EITF 98-5), Accounting for Convertible Securities with Beneficial Conversion Features or Contingently Adjustable Conversion Ratios, requires the conversion feature to be separately valued only if the convertible debt securities with non-detachable conversion feature is issued in-the-money at the commitment date (beneficial conversion feature).  As a result of applying APB 14, there is no impact on the income statement because no accretion of interest had been recorded.



(ii)

Fair valuation of warrants



Under Canadian GAAP Section 3855,
when the Company issues warrants in connection with a debt instrument, the estimated fair market value of the warrants is credited to shareholders equity/(deficiency). The reduced liability component of the debt is accreted by a charge to interest expense.



Under US GAAP, underwriting, legal and other direct costs incurred in connection with the issuance of debt measured under the fair value option should be recognized in earnings and not deferred.  Underwriting, legal and other direct costs incurred in connection with the issuance of debt not measured under the fair value option should be presented as a deferred charge and not as a reduction in the carrying amount of the debt.



(b)

Stock Based Compensation 



On January 1, 2002, the Company adopted Canadian GAAP Handbook Section 3870 Stock-based Compensation and Other Stock-based Payments.  Under this section, the Company adopted the fair value based method for all employees and non-employees stock options.  The value is recognized over the applicable vesting period as an increase to compensation expense and contributed surplus.  When the options are exercised, the proceeds received by the Company, together with the amount in contributed surplus, will be credited to common share capital.  For options granted prior to January 1, 2002, the Company continues to follow the accounting policy under which no expense is recognized for these stock options.  When these options are exercised, the proceeds received by the Company are recorded as common share capital.





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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)





19.

Differences between Canadian and United States Generally Accepted Accounting Principles: (Continued)



Under US GAAP, prior to January 1, 2002, the Company accounted for its employees stock options with the intrinsic value method under Accounting Principles Board Opinion 25, Accounting for Stock Issued to Employees (APB 25) as allowed by Statement of Financial Accounting Standard 123, Accounting for Share-Based Payments, (FAS 123).  APB 25 requires compensation cost for stock-based employee compensation plans to be recognized over the vesting period based on the difference, if any, between the quoted market price of the Companys stock as of the grant date and the amount employee must pay to acquire the stock.  Because the Company accounted for its employees stock options under APB 25, the Company separately disclosed pro forma information relating to the total compensation expense as required by FAS 123.



FAS 123 also establishes fair value as the measurement basis for transactions in which the Company acquires goods or services from non-employees in exchange for equity instruments.  All transactions in which goods or services are the consideration received for the issuance of equity instruments shall be accounted for based on the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.  For all non-employees stock options issued prior to January 1, 2002 the Company accounted for fair value of these stock options using an option pricing model, as allowed by FAS 123.





Reconciliation of Net Loss -



The application of Canadian GAAP would have the following effects on the net income as reported:

For the three months ended March 31, 2009For the three months ended March 31, 2008Loss for the period - US GAAP$(1,210,591)$(690,096)Adjustment for accretion interest  equity component of convertible debt(17,336)(17,622)Adjustment for accretion interest  fair valuation of warrants(116,899)(32,269)Loss for the period - Canadian GAAP$(1,344,826)$(739,987)


































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CURRENT TECHNOLOGY CORPORATION

Notes to Interim Consolidated Financial Statements

For the three months ended March 31, 2009 and 2008

Unaudited- (United States Dollars)







19.

Differences between Canadian and United States Generally Accepted Accounting Principles: (Continued)



Net Loss per Share -



The net loss per share computed under US GAAP is different from the net loss per share computed under Canadian GAAP due to differences noted in the accounting for convertible debt.  The adjusted basis loss per share under Canadian GAAP is as follows:



March 31, 2009March 31, 2008Weighted Average Number of Shares Outstanding150,042,941121,578,045US GAAP and Canadian GAAPLoss for the period - Canadian GAAP$(1,344,826)$(739,987)Basic loss per share under Canadian GAAP(0.009)(0.006)




The application of Canadian GAAP would have the following effects on the consolidated balance sheet items as reported under US GAAP:



March 31, 2009December 31,2008Liabilities - US GAAP$3,481,287$3,619,854Adjustment for unamortized portion of equity component of convertiblepromissory note(74,975)(68,614)Adjustment for unamortized portion of the fair valuation of warrants(502,973)(619,872)Liabilities - Canadian GAAP$2,903,339$2,931,368






March 31, 2009December 31, 2008Shareholders Equity (Deficiency)- US GAAP$(2,529,048)$(2,558,974)Effect of equity component  of convertible promissory note516,136492,439Cumulative effect of prior year adjustments to net loss(736,643)(463,849)Cumulative effect of current year adjustments to net loss(134,236)(272,794)Effect of fair valuation of warrants1,193,6001,193,600Shareholdersequity / (deficiency) - Canadian GAAP$(1,690,191)$(1,609,578)










Page24



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ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.



Cautionary Statement about Forward-Looking Statements



Certain statements contained in this 10-Q that are not historical facts constitute forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995, and are intended to be covered by the safe harbors created by that Act.  Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, which may cause actual results, performance, or achievements to differ materially from those expressed or implied.  All statements, other than statements of historical facts, included in this report that address activities, events, or developments that our management expects, believes, hopes or anticipates will or may occur in the future are forward looking statements.  Any forward-looking statements speak only as of the date made.  We undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date on which they are made.



Plan of Operation



Telematics Technology



On January 31, 2008, Current Technology Corporation (the Company or we) entered into a securities purchase agreement with Celevoke, Inc (Celevoke).  Under the agreement we were obligated to purchase 102 shares of Celevoke common stock in five installments for an aggregate purchase price of $2.5 million.We completed the acquisition on May 23, 2008 by making the final installment payment.  Through the end of our 2008 fiscal year, and subsequently, we purchased additional shares of Celevoke and now own 62% of the outstanding shares of Celevoke.



Celevoke is a developer and distributor of proprietary global positioning system (GPS) based Telematics products.  The technology utilizes the integrated use of telecommunications and informatics to enable users to remotely monitor, track, control and protect a wide variety of asset classes such as, automobiles, and other motorized vehicles, shipping containers, covert vehicles used for law enforcement, and even people.  This technology is referred to as Telematics.  We believe that Celevoke has a number of attributes that may lead to success in the marketplace, including its technology and products, its non-exclusive worldwide license with the patent holder LunarEYE, Inc., a functioning network operations center and established relationships with a number of channels of distributions.  Subject to the Companys ability to continue to fund ongoing operations, we are hopeful that Celevokeis poised to become a market leader in the global market for Telematics, which some third parties project to be a $38.3 billion industry by 2011.



During the majority of fiscal 2008 we primarily focused on growing, developing, and promoting Celevokes business operations.  During the quarter ended March 31, 2009 and through the period to the date of this report, the Company through Celevoke, continued to focus primarily on the development and promotion of Celevokes GPS-based asset tracking technology, including the further development of its previously announced NextGen Tracking System.  The fully automotive grade product features an extremely low power draw which the Company believes will be of significant interest to manufacturers of powersports equipment, including motorcycles.  Management further believes that this new product may provide Celevoke access to the Original Equipment Manufacturer market in the United States and other parts of the world.









Page25



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The on-going economic crisis has had a devastating effect on the automotive and transportation sectors, with a resulting negative impact on the Telematics space. As a relatively new company with high development expenses and no history of meaningful revenue, Celevoke has faced numerous challenges. Due to Celevokes lack of liquidity and the Companys difficulty in continuing to fund ongoing operations at historical levels in the face of the credit crisis, the Company and Celevoke were forced to make a number of difficult decisions during the first quarter of 2009 and thereafter. On March 20, 2009 Celevoke indefinitely suspended the operations of its Brazilian subsidiary, Star One Telematica S.A., because of a lack of funding.   As such the Company through Celevoke is not currently promoting its products or services in Brazil.  Further, in April 2009 Celevoke initiated material layoffs of both management and sales personnel to reduce overhead.



As a result of the foregoing we are not currently proceeding with our original business plan with respect to Celevoke.  During the past few months, sales and marketing efforts have been reduced consistent with the aforementioned staff reductions. Limited resources have been focused on new product development, continued upgrading of the network operating center and enhancement of the web-based interface. These activities have been directed by, and in many instances personally funded by, Celevokes CEO Chuck Allen. The Company is hopeful this difficult period is coming to an end, and believes Celevoke is well positioned to benefit from its product development focus as economic conditions improve, subject to its ability to obtain further financing to fund ongoing operations. However, if this new strategy is not successful Celevoke may have to suspend or cease operations altogether.



As of the date of this report, the Company and Celevoke CEO Chuck Allen have reached a broad verbal agreement to compensate Mr. Allen for providing a loan facility to Celevoke during this period (being the quarter ended March 31, 2009 and thereafter). Although all particulars have not been finalized, the Company believes the formal agreement will provide for the immediate vesting of all options granted to Chuck Allen, Brian Allen and Mark Beausoleil (the minority Celevoke shareholders) and all remaining Celevoke employees and consultants who have continued to perform valuable services during this difficult period of Celevokes development. In addition, funds advanced to Celevoke by Mr. Allen or the Company (only with respect to funds advanced by the Company to Celevoke as a loan) will be paid interest at the rate of 10% per annum.



TrichoGenesis Platform Products



Historically our operations focused on hair restoration and re-growth related products.  We have developed an electrotherapeutic medical device designed to stimulate hair regrowth (ElectroTrichoGenesis or ETG) and a cosmetic unit designed to improve the appearance of thinning hair (CosmeticTrichoGenesis or CTG).  ETG and CTG are marketed as TrichoGenesis platform products.  We own patents to the technology, methodology and design of these products.  ETG Treatment, the regrowth of hair by means of electrical stimulation, is believed to promote the healing of hair follicles that are dormant, but not dead. Research has been conducted to expand the indications for ETG. The CTG Mark 5 is a product for improving the appearance of thinning hair.  Using the TrichoGenesis technology platform, this product was developed specifically for the United States marketplace.













Page26



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The Company has entered into an exclusive distribution agreement with Hair Envy, LLC, an entity based in the United States, for the placement on a revenue sharing basis of its TrichoGenesis platform products in the United States, Canada, South America (excluding Brazil), Europe and Russia. The Company is working in concert with its United States based distributor to attempt to lower the cost of ETG devices and CTG units by having non-proprietary components of the chair and hood manufactured in China.   In June 2008 the Company inspected and approved the final prototype which was manufactured in China.  The last step prior to commencement of ongoing manufacturing in China was a factory inspection to be conducted by Canadian Standards Association International as part of its certification process.  The inspection was completed during October, 2008, and certificates confirming the approval were during November, 2008. The Company awaits the decision of Hair Envy as to if and/or when orders for its TrichGenesis products will be placed.



In the immediate future we plan to continue to focus primarily on Celevokes business operations, but will continue to market our TrichoGenesis products although we do not believe it is likely these products will generate significant revenues for the Company during the balance of fiscal 2009.



Results of Operation



On May 23, 2008 we became the majority holder of the voting equity of Celevoke.  On that day the Company began consolidating Celevokes financial results in the Companys interim consolidated financial statements.  Accordingly, the financial statements included with this quarterly report for the three month period ending March 31, 2009 are presented on a consolidated basis with Celevoke.  Prior to the filing of our quarterly report for the quarter ended June 30, 2008 our financial statements were not presented on a consolidated basis with Celevoke.   As such, the information presented in our financial statements included with this quarterly report may not provide a meaningful comparison when compared against the financial statements for three month period ending March 31, 2008.  Further, we expect that certain of our operation costs will decrease over time as the Companys business through Celevoke becomes more established and certain expenses, such as business development, are reduced.



Revenue for the three months ended March 31, 2009 was $90,760 as compared to $11,612 for the comparable period in 2008.  Approximately $64,052 of this revenue was generated through the sale of three CTG units sold through our TrichoGenesis division to a Korean customer.  We will not receive on-going royalties through the sale of these units.  Although our revenues were higher in the period ended March 31, 2009 when compared to the comparable 2008 period our revenues have decreased substantially over the most recent quarters.  For example, in the quarter ended September 30, 2008 we recognized revenues of $258,946, approximately 75% of which were generated through the sale and distribution of Celevokes GPS based technology, and in the quarter ended June 30, 2008 our revenues were $224,931.  However, as described above due to the general weak global economic and market conditions, lack of sales, and a lack of funding, Celevoke has had to significantly reduce and refocus its operations.  We are hopeful that Celevoke will be able to generate larger revenues going forward, however until Celevoke is adequately funded and/or market conditions and demand for Celevokes products improve there is substantial uncertainty about its ability to do so.



For the three months ended March 31, 2009, the Company experienced a net loss of ($1,210,591) or $(0.008) per share, compared to a net loss of $(690,096) or $(0.006) per share during the comparable period in the previous year.  In large part, the significant increase in our loss for the three month period ended March 31, 2009 was a result of the increased costs we have realized on a consolidated basis as a result of acquisition of a majority of Celevokes outstanding equity.  For example, during the quarter ended





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March 31, 2009 we incurred $361,696 in consulting expenses and costs as compared to $70,400 in the 2008 period.  Approximately $200,000 of these consulting expenses in the 2009 period were incurred for investor relations consulting services.  Similarly, other standard business expenses significantly increased in the period ended March 31, 2009 as compared to the comparable period in 2008 such as our general and administrative expenses ($145,436 in the 2009 period versus $65,631 in the 2008 period) and salaries and wages ($572,940 in the 2009 period versus $344,618 in the 2008 period). The significant increases in the 2009 period were a direct result of expenses incurred by and through Celevoke and our efforts to continue to develop and promote its business plan.  However, in the near future although we expect to continue to incur significant losses we expect these losses to decrease from their current levels as a result of Celevokes significantly reduced operations and business activities.



Liquidity and Capital Resources



Since inception the Company has primarily financed its operations through the sale of equity and debt securities.  However, we have generated limited amounts of revenues from sales of our TrichoGenesis products, and starting in the quarter ended June 30, 2008 we began recognizing revenues generated through Celevoke, although this revenue significantly decreased in the quarter ended March 31, 2009 as compared to our most recent three fiscal quarters.



As of March 31, 2009 we had working capital deficit of $635,710 as compared to a working capital deficit of $769,006 at December 31, 2008.  Although our working capital deficit decreased from December 31, 2008, except for a subscription liability of $272,500 as of December 31, 2008, it would have increased for the period as in general our other liabilities generally increased while our assets generally decreased during the period.  Our liabilities include amounts due under the terms of a promissory note issued to Keith Denner, our largest shareholder, that are due on or before January 19, 2010.



As of March 31, 2009 we had cash and cash equivalents of $13,972 on a consolidated basis.  This represents a $28,977 decrease from December 31, 2008 and a decrease of $367,642 from our quarter ended September 30, 2008.   This significant decrease is a result of our on-going operating losses, the significant amounts of resources that we expended to try to develop and promote Celevokes business operations, and our on-going use of our cash on-hand to fund our business operations.  During the quarter ended March 31, 2009 we raised approximately$444,000 through the sale of our equity securities.    Through the end of our fiscal year we expect to continue to experience a net loss from operations and thus will have to continue to expend our existing cash resources to fund our operations and business activities.



Our current resources on-hand are not sufficient to cover our costs through the end of current quarter.  Absent our ability to generate a significant amount of revenues through our business operations the Company will have to seek additional sources of liquidity in the near future to fund its business operations.  However, but there can be no assurance that additional financing will be available on reasonable terms, if at all.  Further, as a result of on-going recent volatility in the capital markets and the depressed market price of our common stock it may be increasingly difficult for us to obtain additional debt or equity financing.  As such, the ability of the Company to continue as a going concern is dependent on the successful conclusion of these discussions and/or negotiations, the receipt of additional financing and/or proceeds on the sale of assets and ultimately its ability to generate sufficient cash from operations and financing sources to meet obligations as they come due.













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ITEM 3. Quantitative and Qualitative Disclosures About Market Risk



Not applicable



ITEM 4. CONTROLS AND PROCEDURES



Disclosure Controls and Procedures

The Company's principal executive officer and principal financial officer have evaluated the effectiveness of the Company's disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this report. Based on that evaluation, our principal executive officer and our principal financial officer have concluded that our disclosure controls and procedures were not effective as of March 31, 2009 because of the identification of material weaknesses in our internal control over financial reporting which are identified in Item 9A included with our Annual Report on 10-K for the year ended December 31, 2008, which we view as an integral part of our disclosure controls and procedures. Depending on our financial resources we hope to take appropriate actions to remediate any such material weaknesses identified.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commissions rules and forms.  Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and our principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.



Internal Control Over Financial Reporting



There was no change in the Company's internal control over financial reporting that occurred during the fiscal quarter to which this report relates that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.











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PART II  OTHER INFORMATION





ITEM 1. Legal Proceedings



As previously described in our Annual Report on Form 10-K eighteen former employees of StarOne (a subsidiary of Celevoke) commenced a legal action for non-payment of wages.  Although the legal proceedings commenced in Brazil, Celevoke was named as a defendant. There were no material developments with respect to this case during the quarter ended March 31, 2009.



Item 1A. Risk Factors



There have been no material changes to the information included as risk factors set forth in our Annual Report on Form 10-K for the year ended December 31, 2008.



Item 2.  Unregistered Sales of Equity Securities



On May 12, 2009 the Company issued two accredited investors an aggregate of 500,000 shares of Company common stock.  The shares were issued in consideration for services provided to the Company.  We relied on the exemptions from registration provided by Section 4(2) and Section 4(6) of the Securities Act of 1933, and Rule 506 promulgated thereunder for this issuance.  No commissions or other remuneration were paid in connection with this issuance.





Item 3.  Default Upon Senior Securities



None.



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



None.



Item 5. Other Information



None.



Item 6.  Exhibits



|     |  |                                                                                                                                                             
|---- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |  |                                                                                                                                                             
|31.1 |  | Certification of CEO Pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
|     |  |                                                                                                                                                             
|31.2 |  | Certification of CFO Pursuant to Exchange Act Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith.
|     |  |                                                                                                                                                             
|32.1 |  | Certification of CEO and CFO Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith.      















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SIGNATURES



In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.





Date: June 9, 2009

By: /s/ Robert Kramer

Robert Kramer,

Principal Executive Officer



Date: June 9, 2009

By:/s/ George Chen

George Chen,

Principal Financial Officer and

Principal Accounting Officer



















































































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EXHIBIT 31.1

CERTIFICATION

I, Robert Kramer, certify that:



1.

I have reviewed this quarterly report on Form 10-Q of Current Technology Corporation:



2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;



3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;



4.

The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant: and have:



a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;



b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles



c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and



d) disclosed in this report any changes in the companys internal control over financial reporting that occurred during the period covered by the report that has materially affected, or is reasonably likely to materially affect, the companys internal control over financial reporting.



5.

The registrants other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent function):



a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and



b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls over financial reporting.



|                    |                                            |                  
|------------------- | ------------------------------------------ | -----------------
|Dated: June 8, 2009 | By                                         | /s/ Robert Kramer
|                    | Robert Kramer, Principal Executive Officer



















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EXHIBIT 31.2

CERTIFICATION

I, George Chen, certify that:



1.

I have reviewed this quarterly report on Form 10-Q of Current Technology Corporation:



2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;



3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;



4.

The registrants other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant: and have:



a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;



b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles



c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and



d) disclosed in this report any changes in the companys internal control over financial reporting that occurred during the period covered by the report that has materially affected, or is reasonably likely to materially affect, the companys internal control over financial reporting.



5.

The registrants other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting to the registrants auditors and the audit committee of registrants board of directors (or persons performing the equivalent function):



a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and



b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal controls over financial reporting.



|                    |                                          |                
|------------------- | ---------------------------------------- | ---------------
|Dated: June 8, 2009 | By                                       | /s/ George Chen
|                    | George Chen, Principal Financial Officer















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EXHIBIT 32.1

CURRENT TECHNOLOGY CORPORATION



Certification pursuant to 18 U.S.C. §1350 of the

Chief Executive Officer and Chief Financial Officer



In connection with the Quarterly Report on Form 10-Q (the Report) of Current Technology Corporation (the Company) for the quarter ended March 31, 2009, each of the undersigned Robert Kramer, the Chief Executive Officer of the Company, and George Chen, the Chief Financial Officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of the undersigneds knowledge and belief:

1.

The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.

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



June 8, 2009

/s/ Robert Kramer

___________________________

Robert Kramer, Chief Executive Officer





June 8, 2009

/s/ George Chen

______________________________

George Chen, Chief Financial Officer









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