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| Utah                                                           | 87-0447580                        |
|----------------------------------------------------------------|-----------------------------------|
| (State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |

| o Large accelerated filer  | o Accelerated filer | o Non-accelerated filer | x Smaller reporting company |
|--------------------------------------|--------------------------|------------------------------|----------------------------------|

| Class                      | Outstanding as of October 31, 2010 |
|----------------------------|------------------------------------|
| Common Stock, no par value | 42,241,238 shares                  |

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| PART I – FINANCIAL INFORMATION                                                                           |
|----------------------------------------------------------------------------------------------------------------|
|                                                                                                           |
| Item 1: Financial Statements                                                                                   |   |
|                                                                                                           |   |
| Condensed Balance Sheets                                                                                       |   |
| As of September 30, 2010 (unaudited) and June 30, 2010 (audited)                                               | 1 |
|                                                                                                           |   |
| Unaudited Condensed Statements of Operations                                                                   |   |
| For the three months ended September 30, 2010 and 2009 and for the Period from                                 |   |
| September 26, 1986 (Date of Inception) through September 30, 2010                                              | 2 |
|                                                                                                           |   |
| Unaudited Condensed Statements of Cash Flows                                                                   |   |
| For the three months ended September 30, 2010 and 2009 and for the Period from                                 |   |
| September 26, 1986 (Date of Inception) through September 30, 2010                                              | 3 |
|                                                                                                           |   |
| Notes to Unaudited Condensed Financial Statements                                                              | 4 |
|                                                                                                           |   |
| Item 2:  Management’s Discussion and Analysis of Financial Condition and Results of Operations | 7 |
|                                                                                                           |   |
| Item 4:  Controls and Procedures                                                                     | 8 |
|                                                                                                           |
| PART II – OTHER INFORMATION                                                                              |
|                                                                                                           |
| Item 1:  Legal Proceedings                                                                           | 9 |
|                                                                                                           |   |
| Item 2:  Unregistered Sales of Securities and Use of Proceeds                                        | 9 |
|                                                                                                           |   |
| Item 3:  Defaults Upon Senior Securities                                                             | 9 |
|                                                                                                           |   |
| Item 4:  Reserved                                                                                    | 9 |
|                                                                                                           |   |
| Item 5:  Other Information                                                                           | 9 |
|                                                                                                           |   |
| Item 6:  Exhibits                                                                                    | 9 |
|                                                                                                           |   |
| Signatures                                                                                                     | 10 |

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|                                                                                                                                                                                                    |   | September 30, |        |   | June 30,  |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|-----------|--------|
|                                                                                                                                                                                                    |   | 2010          |        |   | 2010      |   |
|                                                                                                                                                                                                    |   | (unaudited)   |        |   | (audited) |   |
| ASSETS                                                                                                                                                                                                  |   |          |        |   |      |   |
| CURRENT ASSETS                                                                                                                                                                                          |   |          |        |   |      |   |
| Cash and cash equivalents                                                                                                                                                                               |   | $             | 2,741       |   |      | $      | 6,865 |   |
| Prepaid expenses                                                                                                                                                                                        |   |          | 2,000       |   |      |   | 2,000 |   |
|                                                                                                                                                                                                    |   |          |        |   |      |   |   |   |
| Total Current Assets                                                                                                                                                                                    |   |          | 4,741       |   |      |   | 8,865 |   |
|                                                                                                                                                                                                    |   |          |        |   |      |   |   |   |
| Alternate solar energy systems                                                                                                                                                                          |   |          | 567,265     |   |      |   | 537,825 |   |
| Property and Equipment, net of accumulated depreciation of $394,086 and $372,457, respectively                                                                                                          |   |          | 380,428     |   |      |   | 402,057 |   |
| Patents, net of accumulated amortization of $27,886 and $26,474, respectively                                                                                                                           |   |          | 68,141      |   |      |   | 69,553 |   |
|                                                                                                                                                                                                    |   |          |        |   |      |   |   |   |
| TOTAL ASSETS                                                                                                                                                                                            |   | $             | 1,020,575   |   |      | $      | 1,018,300 |   |
|                                                                                                                                                                                                    |   |          |        |   |      |   |   |   |
| LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                                                   |   |          |        |   |      |   |   |   |
|                                                                                                                                                                                                    |   |          |        |   |      |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                                                     |   |          |        |   |      |   |   |   |
| Accounts payable                                                                                                                                                                                        |   | $             | 203,871     |   |      | $      | 94,525 |   |
| Accrued liabilities                                                                                                                                                                                     |   |          | 382,872     |   |      |   | 350,622 |   |
| Related party payable                                                                                                                                                                                   |   |          | 653,531     |   |      |   | 507,532 |   |
| Customer deposits                                                                                                                                                                                       |   |          | 2,360,250   |   |      |   | 2,360,250 |   |
| Notes payable-current portion                                                                                                                                                                           |   |          | 16,185      |   |      |   | 30,881 |   |
|                                                                                                                                                                                                    |   |          |        |   |      |   |   |   |
| Total Current Liabilities                                                                                                                                                                               |   |          | 3,616,709   |   |      |   | 3,343,810 |   |
|                                                                                                                                                                                                    |   |          |        |   |      |   |   |   |
| Long-term notes payable                                                                                                                                                                                 |   |          | 70,231      |   |      |   | 83,834 |   |
|                                                                                                                                                                                                    |   |          |        |   |      |   |   |   |
| TOTAL LIABILITIES                                                                                                                                                                                       |   |          | 3,686,940   |   |      |   | 3,427,644 |   |
|                                                                                                                                                                                                    |   |          |        |   |      |   |   |   |
| Commitments and contingencies                                                                                                                                                                           |   |          |        |   |      |   |   |   |
|                                                                                                                                                                                                    |   |          |        |   |      |   |   |   |
| STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                                          |   |          |        |   |      |   |   |   |
| Preferred stock, Class A, no par value; 22,000,000 shares authorized, 4,400,000 shares issued and outstanding                                                                                           |   |          | 417,264     |   |      |   | 417,264 |   |
| Preferred stock, Class B, no par value, 3,000,000 shares authorized, 300,000 shares issued and outstanding                                                                                              |   |          | -           |   |      |   | - |   |
| Common stock, no par value, 225,000,000 shares authorized,  37,113,492 and 37,037,153 issued and outstanding, net of 4,997,493 and 3,538,118 shares held in escrow account, respectively |   |          | 36,052,180  |   |      |   | 36,032,789 |   |
| Deficit accumulated during the development stage                                                                                                                                                        |   |          | (39,135,809 | )      |      |   | (38,859,397 | ) |
| Total Stockholders' Deficit                                                                                                                                                                             |   |          | (2,666,365  | )      |      |   | (2,409,344 | ) |
|                                                                                                                                                                                                    |   |          |        |   |      |   |   |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT                                                                                                                                                             |   | $             | 1,020,575   |   |      | $      | 1,018,300 |   |

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|                                       |   |                       |       |   |           |   |       | For the Period     |   |
|--------------------------------------------|--------|----------------------------|------------|--------|----------------|--------|------------|--------------------|--------|
|                                       |   |                       |       |   |           |   |       | From Inception     |   |
|                                       |   | For the Three Months Ended |       |   | (September 26, |   |
|                                       |   | September 30,              |       |   |           |   |       | 1986) Through      |   |
|                                       |   | 2010                       |       |   | 2009           |   |       | September 30, 2010 |   |
| Revenues                                   |   |                       |       |   |           |   |       |               |   |
| Sales                                      |   | $                          | -          |   |           | $      | -          |               |   | $ | 111,226 |   |
| Income from related party                  |   |                       | -          |   |           |   | -          |               |   |   | 32,348 |   |
| Total revenues                             |   |                       | -          |   |           |   | -          |               |   |   | 143,574 |   |
|                                       |   |                       |       |   |           |   |       |               |   |   |   |   |
| Costs of sales                             |   |                       |       |   |           |   |       |               |   |   |   |   |
| Cost of sales                              |   |                       | -          |   |           |   | -          |               |   |   | 81,927 |   |
| Write down of carrying value of inventory  |   |                       | -          |   |           |   | -          |               |   |   | 233,131 |   |
| Total costs of sales                       |   |                       | -          |   |           |   | -          |               |   |   | 315,058 |   |
|                                       |   |                       |       |   |           |   |       |               |   |   |   |   |
| Gross loss                                 |   |                       | -          |   |           |   | -          |               |   |   | (171,484 | ) |
|                                       |   |                       |       |   |           |   |       |               |   |   |   |   |
| Operating expenses                         |   |                       |       |   |           |   |       |               |   |   |   |   |
| General and administrative                 |   |                       | 160,888    |   |           |   | 1,363,831  |               |   |   | 31,428,690 |   |
| Research and development                   |   |                       | 113,661    |   |           |   | 114,396    |               |   |   | 8,230,050 |   |
| Impairment of patents                      |   |                       | -          |   |           |   | -          |               |   |   | 140,577 |   |
| License fees                               |   |                       | -          |   |           |   | -          |               |   |   | 270,634 |   |
| Total operating expenses                   |   |                       | 274,549    |   |           |   | 1,478,227  |               |   |   | 40,069,951 |   |
|                                       |   |                       |       |   |           |   |       |               |   |   |   |   |
| Loss from operations                       |   |                       | (274,549   | )      |           |   | (1,478,227 | )                  |   |   | (40,241,435 | ) |
|                                       |   |                       |       |   |           |   |       |               |   |   |   |   |
| Other income (expenses)                    |   |                       |       |   |           |   |       |               |   |   |   |   |
| Loss on impairment of assets               |   |                       | -          |   |           |   | -          |               |   |   | (583 | ) |
| Forfeiture of deposits                     |   |                       | -          |   |           |   | -          |               |   |   | (236,803 | ) |
| Interest income                            |   |                       | -          |   |           |   | 59         |               |   |   | 26,580 |   |
| Interest expense                           |   |                       | (1,863     | )      |           |   | (2,530     | )                  |   |   | (33,341 | ) |
| Other income (expenses)                    |   |                       | -          |   |           |   | 274        |               |   |   | (32,250 | ) |
| Total other income (expenses)              |   |                       | (1,863     | )      |           |   | (2,197     | )                  |   |   | (276,397 | ) |
|                                       |   |                       |       |   |           |   |       |               |   |   |   |   |
| Loss before extraordinary gain             |   |                       | (276,412   | )      |           |   | (1,480,424 | )                  |   |   | (40,517,832 | ) |
|                                       |   |                       |       |   |           |   |       |               |   |   |   |   |
| Extraordinary gain on sale of patents      |   |                       | -          |   |           |   | -          |               |   |   | 1,382,023 |   |
|                                       |   |                       |       |   |           |   |       |               |   |   |   |   |
| Net loss                                   |   | $                          | (276,412   | )      |           | $      | (1,480,424 | )                  |   | $ | (39,135,809 | ) |
|                                       |   |                       |       |   |           |   |       |               |   |   |   |   |
| Net loss per common share                  |   |                       |       |   |           |   |       |               |   |   |   |   |
| Basic and diluted                          |   | $                          | (0.01      | )      |           | $      | (0.04      | )                  |   |   |   |   |
|                                       |   |                       |       |   |           |   |       |               |   |   |   |   |
| Weighted average common shares outstanding |   |                       |       |   |           |   |       |               |   |   |   |   |
| Basic and diluted                          |   |                       | 37,079,061 |   |           |   | 34,567,801 |               |   |   |   |   |

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|                                                                     |   |                       |     |   |           |   |       | For the Period     |   |
|--------------------------------------------------------------------------|--------|----------------------------|----------|--------|----------------|--------|------------|--------------------|--------|
|                                                                     |   |                       |     |   |           |   |       | From Inception     |   |
|                                                                     |   | For the Three Months Ended |     |   | (September 26, |   |
|                                                                     |   | September 30,              |     |   |           |   |       | 1986) Through      |   |
|                                                                     |   | 2010                       |     |   | 2009           |   |       | September 30, 2010 |   |
| Cash flows from operating activities                                     |   |                       |     |   |           |   |       |               |   |
| Net loss                                                                 |   | $                          | (276,412 | )      |           | $      | (1,480,424 | )                  |   | $ | (39,135,809 | ) |
| Adjustments to reconcile net loss to net cash from operating activities: |   |                       |     |   |           |   |       |               |   |   |   |   |
| Depreciation and amortization                                            |   |                       | 23,041   |   |           |   | 27,174     |               |   |   | 700,196 |   |
| Stock-based compensation                                                 |   |                       | 2,500    |   |           |   | 1,082,765  |               |   |   | 22,373,641 |   |
| Forfeiture of deposits                                                   |   |                       | -        |   |           |   | -          |               |   |   | 236,803 |   |
| Write down of carrying value of inventory                                |   |                       | -        |   |           |   | -          |               |   |   | 16,945 |   |
| Write off of equipment to research and development                       |   |                       | -        |   |           |   | -          |               |   |   | 23,900 |   |
| Loss on disposal of equipment                                            |   |                       | -        |   |           |   | -          |               |   |   | 18,679 |   |
| Impairment of patents and abandonment of in-process rights to technology |   |                       | -        |   |           |   | -          |               |   |   | 387,128 |   |
| Extraordinary gain on sale of patents                                    |   |                       | -        |   |           |   | -          |               |   |   | (1,382,023 | ) |
| Gain on settlement of debt                                               |   |                       | -        |   |           |   | -          |               |   |   | (6,123 | ) |
| Stock compensation for services                                          |   |                       | -        |   |           |   | -          |               |   |   | 120,247 |   |
| Changes in current assets and liabilities:                               |   |                       |     |   |           |   |       |               |   |   |   |   |
| (Increase) / decrease in prepaid expenses                                |   |                       | -        |   |           |   | 9,833      |               |   |   | 7,833 |   |
| (Increase) / decrease in alternate solar energy systems                  |   |                       | (29,440  | )      |           |   | (53,960    | )                  |   |   | (567,265 | ) |
| Increase / (decrease) in customer deposits                               |   |                       | -        |   |           |   | 540,000    |               |   |   | 2,360,250 |   |
| Increase / (decrease) in accounts payable                                |   |                       | 109,346  |   |           |   | (44,893    | )                  |   |   | 203,871 |   |
| Increase / (decrease) in related party payable                           |   |                       | 19,500   |   |           |   | -          |               |   |   | 93,001 |   |
| Increase / (decrease) in accrued liabilities                             |   |                       | 32,250   |   |           |   | 53,457     |               |   |   | 482,871 |   |
| Net cash from operating activities                                       |   |                       | (119,215 | )      |           |   | 133,952    |               |   |   | (14,065,855 | ) |
| Cash flows from investing activities                                     |   |                       |     |   |           |   |       |               |   |   |   |   |
| Purchase of property and equipment                                       |   |                       | -        |   |           |   | (2,234     | )                  |   |   | (772,135 | ) |
| Purchase of rights to technology                                         |   |                       | -        |   |           |   | -          |               |   |   | (706,643 | ) |
| Organization costs                                                       |   |                       | -        |   |           |   | -          |               |   |   | (1,880 | ) |
| Net cash advanced to related party                                       |   |                       | -        |   |           |   | -          |               |   |   | (1,644,988 | ) |
| Commitments and contingencies                                            |   |                       | -        |   |           |   | -          |               |   |   | 44,220 |   |
| Proceeds from sale of equipment                                          |   |                       | -        |   |           |   | -          |               |   |   | 2,500 |   |
| Repayment of cash loaned to related party                                |   |                       | -        |   |           |   | -          |               |   |   | 53,254 |   |
| Net proceeds from sale of patents                                        |   |                       | -        |   |           |   | -          |               |   |   | 1,382,023 |   |
| Net cash from investing activities                                       |   |                       | -        |   |           |   | (2,234     | )                  |   |   | (1,643,649 | ) |
| Cash flows from financing activities                                     |   |                       |     |   |           |   |       |               |   |   |   |   |
| Proceeds from issuance of common stock                                   |   |                       | 16,891   |   |           |   | 81,142     |               |   |   | 6,194,352 |   |
| Proceeds from reissuance of treasury stock                               |   |                       | -        |   |           |   | -          |               |   |   | 751,573 |   |
| Contributed capital                                                      |   |                       | -        |   |           |   | -          |               |   |   | 6,270,559 |   |
| Payments for treasury stock                                              |   |                       | -        |   |           |   | -          |               |   |   | (3,325 | ) |
| Payments for stock offering costs                                        |   |                       | -        |   |           |   | -          |               |   |   | (56,509 | ) |
| Proceeds from cash advances from related party                           |   |                       | 166,877  |   |           |   | 138,000    |               |   |   | 3,064,080 |   |
| Payments on cash advances from related party                             |   |                       | (40,378  | )      |           |   | (20,039    | )                  |   |   | (418,091 | ) |
| Proceeds from notes payable                                              |   |                       | -        |   |           |   | -          |               |   |   | 29,857 |   |
| Payments on notes payable and capital lease obligations                  |   |                       | (28,299  | )      |           |   | (12,007    | )                  |   |   | (275,910 | ) |
| Proceeds from related party deposits                                     |   |                       | -        |   |           |   | -          |               |   |   | 224,400 |   |
| Purchases of equipment held for distribution                             |   |                       | -        |   |           |   | -          |               |   |   | (68,741 | ) |
| Net cash from financing activities                                       |   |                       | 115,091  |   |           |   | 187,096    |               |   |   | 15,712,245 |   |
| Net change in cash                                                       |   |                       | (4,124   | )      |           |   | 318,814    |               |   |   | 2,741 |   |
| Cash at beginning of period                                              |   |                       | 6,865    |   |           |   | 47,537     |               |   |   | - |   |
| Cash at end of period                                                    |   | $                          | 2,741    |   |           | $      | 366,351    |               |   | $ | 2,741 |   |

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|   | 31.1 | Certification by the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|--------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification by the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|--------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification by the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification by the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------|

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| Date:  November 12, 2010 | By     |   /s/ Neldon Johnson               |   |
|-----------------------------------------|--------|----------------------------------------------|--------|
|                                    |   | Neldon Johnson                               |   |
|                                    |   | President, Chief Executive Officer, Director |   |
|                                    |   |                                         |   |
|                                    |   |                                         |   |
| Date: November 12, 2010                 | By     |   /s/ LaGrand Johnson              |   |
|                                    |   | LaGrand Johnson                              |   |
|                                    |   | Chief Financial Officer                      |   |

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