U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-QSB

 [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934

                  For the quarterly period ended June 30, 2006

 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
                                  ACT OF 1934

               For the transition period from _______ to ________

                        COMMISSION FILE NUMBER: 000-32249

                     ENTECH ENVIRONMENTAL TECHNOLOGIES, INC.

                 (Name of small business issuer in its charter)


            Florida                                         77-0616120
--------------------------------                       -------------------
 (State or other jurisdiction of                         (I.R.S. Employer
  incorporation or organization)                        Identification No.)


                         3233 Grand Avenue, Suite N-353
                       Chino Hills, California 91709-1489
          (Address and telephone number of principal executive offices)

                                 (909) 623-2502
                             -----------------------
                           (Issuer's telephone number)


Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 [X] No [ ]

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of September 12, 2006, the issuer
had 32,380,840 shares of its common stock issued and outstanding.

Transitional Small Business Disclosure Format (check one): Yes [ ] No [X]

Indicate by check mark whether the registrant is a shell company (as defined in
rule 12b-2 of the Exchange Act). Yes|_| No |X|



<PAGE>



                                TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION...............................................F-1
         Item 1.  Financial Statements...............................F-1 to F-10
         Item 2.  Management's Discussion and Analysis
                  or Plan of Operation.........................................3
         Item 3.  Controls and Procedures......................................8

PART II - OTHER INFORMATION
         Item 1.  Legal Proceedings............................................9
         Item 2.  Unregistered Sales of Equity Securities
                  and Use of Proceeds..........................................9
         Item 3.  Defaults Upon Senior Securities.............................10
         Item 4.  Submission of Matters to a Vote
                  of Security Holders.........................................10
         Item 5.  Other Information...........................................10
         Item 6.  Exhibits....................................................10

SIGNATURES









                                       2

<PAGE>



                         PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                        ENTECH ENVIRONMENTAL TECHNOLOGIES, INC.
                              CONSOLIDATED BALANCE SHEET
                                     JUNE 30, 2006
                                      (UNAUDITED)

Assets

Current assets:

Cash                                                              $     27,974
Accounts receivable, net allowance for
  doubtful accounts totaling $85,825                                   889,914
Costs and estimated earnings in excess
  of billings on uncompleted contracts                                  88,700
Inventory                                                              121,043
Prepaid expenses and other                                              68,684
                                                                  ------------
Total current assets                                                 1,196,315

Property and equipment, net                                            425,993

Other assets                                                            40,091
                                                                  ------------

Total assets                                                      $  1,662,399
                                                                  ============


LIABILITIES AND DEFICIENCY IN STOCKHOLDERS' EQUITY:

Current liabilities:

Accounts payable                                                  $    585,336
Accrued interest and other                                             369,862
Accrued payroll                                                        154,578
Billings in excess of costs and estimated
  earnings on uncompleted contracts                                    167,675
Purchase price payable                                                  39,756
Due to de-consolidated entities                                        793,025
Current portion of notes payable, net of
  discounts totaling $135,402                                          926,611
Current portion of note payable - related party                         27,343
                                                                  ------------
Total current liabilities                                            3,064,186


Notes payable, net of current portion and
  net of discounts totaling $415,312                                    89,211
Note payable - related party, net of current portion                    99,437


Commitments and contingencies                                             --

Deficiency in stockholders' equity:
Preferred stock, $.001 par value; 10,000,000
  shares authorized; none issued and outstanding                          --
Common stock, $0.001 par value; 100,000,000
  shares authorized; 32,380,840 shares
  issued and outstanding                                                32,381
Additional paid-in capital                                          16,896,661
Common stock subscribed, 3,500 shares                                      597

Accumulated deficit                                                (18,520,074)
                                                                  ------------
Total deficiency in stockholders' equity                            (1,590,435)
                                                                  ------------

Total liabilities and deficiency in stockholders' equity          $  1,662,399
                                                                  ============

        See accompanying notes to the consolidated financial statements.


                                      F-1
<PAGE>

<TABLE>
<CAPTION>


                                         ENTECH ENVIRONMENTAL TECHNOLOGIES, INC.
                                          CONSOLIDATED STATEMENTS OF OPERATIONS
                                                      (UNAUDITED)



                                                    For the three months             For the nine months
                                                       ended June 30,                   ended June 30,
                                                ----------------------------    ----------------------------
                                                    2006            2005            2006            2005
                                                ------------    ------------    ------------    ------------
<S>                                             <C>             <C>             <C>             <C>
Revenues, net                                   $    963,625    $  1,790,403    $  3,722,302    $  3,844,586
Cost of goods sold                                   672,598       1,148,867       2,465,904       2,343,117
                                                ------------    ------------    ------------    ------------
Gross profit                                         291,027         641,536       1,256,398       1,501,469


Operating expenses:
Selling, general, and administrative expenses        464,744         494,205       1,433,026       1,481,933
Depreciation and amortization                         26,880          11,434          75,243          37,469
Goodwill impairment                                   21,532          48,412          21,532          48,412
                                                ------------    ------------    ------------    ------------
      Total operating expenses                       513,156         505,639       1,529,801       1,519,402
                                                ------------    ------------    ------------    ------------
Income (Loss) from continuing operations            (222,129)        135,897        (273,403)        (17,933)



Other income                                           6,171            --            44,106            --
Liquidated damages                                   167,821            --           358,459            --
Interest expense                                     224,740         155,096         586,859         461,356
                                                ------------    ------------    ------------    ------------
Loss from continuing operations before
  provision for income taxes                        (608,519)        (19,199)     (1,174,615)       (479,289)


Provision for income taxes                              --              --              --              --
                                                ------------    ------------    ------------    ------------
Net loss from continuing operations                 (608,519)        (19,199)     (1,174,615)       (479,289)


Discontinued operations, net of taxes                (54,414)        (29,491)       (146,600)        (66,977)
                                                ------------    ------------    ------------    ------------
Net loss                                        $   (662,933)   $    (48,690)   $ (1,321,215)   $   (546,266)
                                                ============    ============    ============    ============

Net loss per share - basic and fully diluted    $      (0.02)   $      (0.00)   $      (0.04)   $      (0.02)
                                                ============    ============    ============    ============


Basic and diluted weighted average
  number of shares outstanding                    32,377,507      27,789,728      32,380,747      26,914,392
                                                ============    ============    ============    ============
</TABLE>


        See accompanying notes to the consolidated financial statements.


                                      F-2
<PAGE>


                           ENTECH ENVIRONMENTAL TECHNOLOGIES, INC.
                            CONSOLIDATED STATEMENTS OF CASH FLOWS
                                         (UNAUDITED)
<TABLE>
<CAPTION>
                                                                     For the nine months
                                                                        ended June 30,
                                                                 -----------------------------
                                                                    2006           2005
                                                                 -----------    -----------
<S>                                                              <C>            <C>
Net loss                                                         $(1,321,215)   $   546,266)
Add back: Net loss from discontinued operations, net of taxes       (146,600)       (66,977)
                                                                 -----------    -----------
Net loss from continuing operations                               (1,174,615)      (479,289)


Cash flows from continuing operating activities:
Adjustments to reconcile net loss from continuing operations
to net cash used in operating activities:

   Depreciation and amortization                                      75,243         37,469
   Common stock issued for services                                    5,000           --
   Goodwill impairment                                                21,532           --
   Amortization of note discount                                     490,143        387,470
   Reserve for bad debts                                               1,583           --
   Gain on settlement                                                (37,935)          --
Changes in:
   Accounts receivable                                               179,817       (662,918)
   Due to de-consolidated entities                                   (20,000)          --
   Inventory                                                          56,099        (96,355)
   Construction in progress                                            6,002         24,763
   Other assets                                                      (62,701)       (31,759)
   Accounts payable and accrued expenses                             484,505        352,737
                                                                 -----------    -----------
Net cash provided by (used in) continuing operating activities        24,673       (467,882)


Cash flows from continuing investing activities:
   Purchases of property and equipment                               (81,146)       (28,399)
                                                                 -----------    -----------
   Net cash used in continuing investing activities                  (81,146)       (28,399)

Cash flows from continuing financing activities:
   Proceeds from notes payable                                       100,000        490,000
   Proceeds from notes payable - related party                          --           20,000
   Principal payments on notes payable                               (19,123)       (20,000)
                                                                 -----------    -----------
   Net cash provided by continuing financing activities               80,877        490,000

Net cash used for discontinued operations                           (109,583)       (66,977)
                                                                 -----------    -----------
Net decrease in cash                                                 (90,179)       (73,258)


Cash at beginning of period                                          113,153        158,093
                                                                 -----------    -----------
Cash at end of period                                            $    27,974    $    84,835
                                                                 ===========    ===========


SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION :


Cash paid during the period for interest                         $     8,250    $     3,045
                                                                 ===========    ===========

Cash paid during the period for income taxes                     $      --      $      --
                                                                 ===========    ===========


Beneficial conversion feature of convertible note                $   424,523    $   133,711
                                                                 ===========    ===========


Value of warrants issued with convertible note                   $    80,000    $   356,289
                                                                 ===========    ===========

</TABLE>

        See accompanying notes to the consolidated financial statements.


                                      F-3
<PAGE>



                     ENTECH ENVIRONMENTAL TECHNOLOGIES, INC.
                   NOTES TO CONSOLIDATED FINANCIAL INFORMATION
                                  JUNE 30, 2006
                                   (UNAUDITED)

NOTE 1 - BUSINESS, BASIS OF PRESENTATION and GOING CONCERN ISSUES

General
-------

The accompanying unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
of America for interim financial information and with the instructions to Form
10-QSB. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements.

In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Accordingly, the results from operations for the nine month period ended June
30, 2006 are not necessarily indicative of the results that may be expected for
the year ended September 30, 2006. The unaudited consolidated financial
statements should be read in conjunction with the consolidated September 30,
2005 financial statements and footnotes thereto included in the Company's SEC
Form 10-KSB.

Business and Basis of Presentation
----------------------------------

Entech Environmental Technologies, Inc. ("Entech" or the "Company"), formerly
Cyber Public Relations, Inc., was formed in June, 1998 under the laws of the
State of Florida. The Company, through its H.B. Covey subsidiary, provides
construction, maintenance and testing services to petroleum service stations in
the southwestern part of the United States of America, and provides installation
services for consumer home products in Southern California.

The accompanying financial statements include the accounts of the Company and
its wholly-owned subsidiary, H.B. Covey, Inc., a California corporation ("H.B.
Covey"). All significant intercompany transactions and balances have been
eliminated in the consolidated financial statements.

Going Concern Issues
--------------------

The accompanying consolidated financial statements have been prepared on a going
concern basis, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. During the years ended
September 30, 2005 and 2004, the Company incurred losses from continuing
operations of $1.2 million and $16.0 million, respectively; and had negative
cash flows from continuing operations of $588,000 and $1.7 million,
respectively. As of June 30, 2006, the Company has negative working capital of
$1.9 million, an accumulated deficit of $18.5 million, current portion of notes
payable of $1.1 million after full amortization of the note discount, and
accounts payable and accrued expenses of $1.1 million.

Other than cash received from the collection of accounts receivable for
construction and maintenance services, the Company's cash resources are
generally limited to borrowings under the Note Purchase Agreements as discussed
in Note 3. To date, the Company has borrowed $1.1 million under the original
agreement which provides for total aggregate borrowings of $1.5 million. The
Note Purchase Agreement provides certain restrictions on the Company's ability
to raise funds from other resources. As a result, payments to vendors, lenders
and employees may be delayed.

These factors raise substantial doubt about the Company's ability to continue as
a going concern. The accompanying financial statements do not include any
adjustments that might result from the outcome of this uncertainty. The
Company's existence is dependent upon management's ability to develop profitable
operations and to resolve its liquidity problems. Management anticipates the
Company will attain profitable status and improve its liquidity through the
continued development, marketing and selling of its services, and through
additional debt or equity investment in the Company.

                                      F-4
<PAGE>

Basic and diluted net loss per share
------------------------------------

Net loss per share is calculated in accordance with the Statement of Financial
Accounting Standards No. 128 (SFAS No. 128), Basic net loss per share is based
upon the weighted average number of common shares outstanding. Diluted net loss
per share is based on the assumption that all potential dilutive convertible
shares and stock options or warrants were converted or exercised. The
calculation of diluted net loss per share excludes potential common stock
equivalents if the effect is anti-dilutive. The Company's weighted common shares
outstanding for basic and dilutive were the same since the effect of common
stock equivalents was anti-dilutive.

The Company has the following dilutive convertible notes payable and warrants as
of June 30, 2006 and 2005 which were excluded from the calculation since the
effect is anti-dilutive.

                                     2006              2005
                                 -------------    -------------
Convertible notes payable          62,661,400       42,480,480
Warrants                           28,355,555       24,355,555
                                 -------------    -------------
Total                              91,016,955       66,836,035
                                 =============    =============


Recent Accounting Pronouncements
--------------------------------

On December 16, 2004, the FASB issued SFAS No. 123 (revised 2004), "Share-Based
Payment" (SFAS 123R). SFAS 123R eliminates the alternative of applying the
intrinsic value measurement provisions of APB 25 to stock compensation awards
issued to employees. Rather, the new standard requires enterprises to measure
the cost of employee services received in exchange for an award of equity
instruments based on the grant-date fair value of the award. That cost will be
recognized over the period during which an employee is required to provide
services in exchange for the award, known as the requisite service period
(usually the vesting period). On April 14, 2005, the Securities and Exchange
Commission ("SEC") announced the adoption of a rule that defers the required
effective date of SFAS 123R. The SEC rule provides that SFAS 123R is now
effective for small business issuers as of the beginning of the first fiscal
year beginning after December 15, 2005. SFAS 123R will be effective for our
fiscal year beginning October 1, 2006.

In March 2005, the SEC released Staff Accounting Bulletin No. 107, "Share-Based
Payment" ("SAB 107"), which provides interpretive guidance related to the
interaction between SFAS 123(R) and certain SEC rules and regulations. It also
provides the SEC staff's views regarding valuation of share-based payment
arrangements. In April 2005, the SEC amended the compliance dates for SFAS
123(R), to allow companies to implement the standard at the beginning of their
next fiscal year, instead of the next reporting period beginning after June 15,
2005. Management is currently evaluating the impact SAB 107 will have on the
financial statements.

In May 2005, the FASB issued FASB Statement No. 154, Accounting Changes and
Error Corrections. This new standard replaces APB Opinion No. 20, Accounting
Changes, and FASB Statement No. 3, Reporting Accounting Changes in Interim
Financial Statements, and represents another step in the FASB's goal to converge
its standards with those issued by the IASB. Among other changes, Statement 154
requires that a voluntary change in accounting principle be applied
retrospectively with all prior period financial statements presented on the new
accounting principle, unless it is impracticable to do so. Statement 154 also
provides that (1) a change in method of depreciating or amortizing a long-lived
nonfinancial asset be accounted for as a change in estimate (prospectively) that
was effected by a change in accounting principle, and (2) correction of errors
in previously issued financial statements should be termed a "restatement." The
new standard is effective for accounting changes and correction of errors made
in fiscal years beginning after December 15, 2005. Early adoption of this
standard is permitted for accounting changes and correction of errors made in
fiscal years beginning after June 1, 2005. Management believes that changes
resulting from adoption of the FASB will not have a material effect on the
financial statements taken as a whole.

In June 2005, the EITF reached a consensus on Issue 05-6, "Determining the
Amortization Period for Leasehold Improvements," which requires that leasehold
improvements acquired in a business combination or purchased subsequent to the
inception of a lease be amortized over the lesser of the useful life of the
assets or a term that includes renewals that are reasonably assured at the date
of the business combination or purchase. EITF 05-6 is effective for periods
beginning after June 29, 2005. Earlier application is permitted in periods for
which financial statements have not been issued. The adoption of this Issue did
not have an impact on the Company's financial statements.

                                      F-5
<PAGE>

In February 2006, the FASB decided to move forward with the issuance of a final
FSP FAS 123R-4 Classification of Options and Similar Instruments Issued as
Employee Compensation That Allow for Cash Settlement upon the Occurrence of a
Contingent Event. The guidance in this FSP FAS 123R-4 amends paragraphs 32 and
A229 of FASB Statement No. 123R to incorporate the concept articulated in
footnote 16 of FAS 123R. That is, a cash settlement feature that can be
exercised only upon the occurrence of a contingent event that is outside the
employee's control does not meet the condition in paragraphs 32 and A229 until
it becomes probable that the event will occur. Originally under FAS 123R, a
provision in a share-based payment plan that required an entity to settle
outstanding options in cash upon the occurrence of any contingent event required
classification and accounting for the share based payment as a liability. This
caused an issue under certain awards that require or permit, at the holder's
election, cash settlement of the option or similar instrument upon (a) a change
in control or other liquidity event of the entity or (b) death or disability of
the holder. With this new FSP, these types of cash settlement features will not
require liability accounting so long as the feature can be exercised only upon
the occurrence of a contingent event that is outside the employee's control
(such as an initial public offering) until it becomes probable that event will
occur. The guidance in this FSP shall be applied upon initial adoption of
Statement 123(R). An entity that adopted Statement 123(R) prior to the issuance
of the FSP shall apply the guidance in the FSP in the first reporting period
beginning after February 2006. Early application of FSP FAS 123R-4 is permitted
in periods for which financial statements have not yet been issued. The Company
does not anticipate that this new FSP will have any material impact upon its
financial condition or results of operations.

In February 2006, the FASB issued SFAS 155 "Accounting for Certain Hybrid
Financial Instruments, an amendment of FASB Statements No. 133 and In February
2006, the FASB issued SFAS 155 "Accounting for Certain Hybrid Financial
Instruments, an amendment of FASB Statements No. 133 and 140". This Statement
amends FASB Statements No. 133, Accounting for Derivative Instruments and
Hedging Activities, and No. 140, Accounting for Transfers and Servicing of
Financial Assets and Extinguishments of Liabilities. This Statement resolves
issues addressed in Statement 133 Implementation Issue No. D1, Application of
Statement 133 to Beneficial Interests in Securitized Financial Assets. This
Statement:

a. Permits fair value remeasurement for any hybrid financial instrument that
contains an embedded derivative that otherwise would require bifurcation;

b. Clarifies which interest-only strips and principal-only strips are not
subject to the requirements of Statement 133;

c. Establishes a requirement to evaluate interests in securitized financial
assets to identify interests that are freestanding derivatives or that are
hybrid financial instruments that contain an embedded derivative requiring
bifurcation;

d. Clarifies that concentrations of credit risk in the form of subordination are
not embedded derivatives; and e. Amends Statement 140 to eliminate the
prohibition on a qualifying special-purpose entity from holding a derivative
financial instrument that pertains to a beneficial interest other than another
derivative financial instrument.

This Statement is effective for all financial instruments acquired or issued
after the beginning of an entity's first fiscal year that begins after September
15, 2006. The fair value election provided for in paragraph 4(c) of this
Statement may also be applied upon adoption of this Statement for hybrid
financial instruments that had been bifurcated under paragraph 12 of Statement
133 prior to the adoption of this Statement. Earlier adoption is permitted as of
the beginning of an entity's fiscal year, provided the entity has not yet issued
financial statements, including financial statements for any interim period for
that fiscal year. Provisions of this Statement may be applied to instruments
that an entity holds at the date of adoption on an instrument-by-instrument
basis. The Company is currently evaluating the impact of SFAS 155.

NOTE 2 - ACQUISITION OF ASSETS and GOODWILL IMPAIRMENT

Acquisition of Assets
---------------------

On December 9, 2005, the Company entered into an Asset Purchase and Sale
Agreement with Pacific Coast Testing to acquire the assets of this fuel system
testing company for $125,000. No liabilities were assumed as part of the
transaction. The Company paid $75,000 of the purchase price at closing, and the
remaining $50,000 was payable in May 2006. The final payment is subject to
downward adjustment for issues that may arise subsequent to the transaction.

                                      F-6
<PAGE>

The assets acquired were valued at their fair market value, resulting in the
recording of goodwill totaling approximately $22,000. Following is a breakdown
of the purchase price allocation:

                     Amount
                  -----------
Vehicles           $  57,455
Equipment             37,590
Inventory              8,423
Goodwill              21,532
                  -----------
Purchase price     $ 125,000
                  ===========

Burr Northrop, the Company's President, advanced the funds to make the initial
$75,000 purchase price payment, and the Company recorded this as an advance from
related party. As noted below, the Company entered into a Note Purchase
Agreement to finance the repayment of the advance, and the advance was repaid in
January 2006. The advance and $500 of interest were paid to Mr. Northrop in
January 2006.

Goodwill Impairment
-------------------

The Company merged the Testing Services division with the Maintenance Services
division during the three months ended June 30, 2006, and recorded a goodwill
impairment charge of $21,532, which was the amount of goodwill recorded at
acquisition.

NOTE 3 - NOTE PURCHASE AGREEMENTS AND LIQUIDATED DAMAGES

In September 2004, the Company entered into a Note Purchase Agreement ("NPA #1")
whereby the Company would borrow a minimum of $100,000 and a maximum of
$1,500,000 pursuant to a secured convertible note or convertible notes. Through
June 30, 2006, the Company has borrowed $1.1 million under NPA #1, and this
amount is due on September 30, 2006. The notes are convertible into 42.5 million
common shares, and the Company issued warrants to purchase 15.9 million common
shares to the note holder pursuant to NPA #1. The shares underlying the
convertible notes and warrants have registration rights. The registration rights
agreement for NPA #1 provides for liquidated damages equal to 36% per annum of
the note principal in the event that a registration statement to register the
underlying shares is not filed timely or declared effective timely. The Company
filed a registration statement to register the shares underlying the convertible
note payable and warrants on June 8, 2006. The registration statement has not
been declared effective by the Securities and Exchange Commission, and the
Company will incur liquidated damages until the registration statement is
declared effective. The Company recorded liquidated damages of $97,100 and
$287,700 for the three months and nine months ended June 30, 2006. The Company
did not record liquidated damages for the three months and nine months ended
June 30, 2005.

In December 2005, the Company executed a Note Purchase Agreement ("NPA #2") to
provide for repayment of the advance by Burr Northrop that was used to pay the
initial purchase price in the acquisition of Pacific Coast Testing. NPA #2
provides for funding of $100,000 pursuant to a convertible note payable, and the
funding did not occur until January 2006. Accordingly, the transaction was
recorded in January 2006. The note bears interest at 8% per year, is due
December 30, 2007, and is convertible into 4.0 million shares of common stock.
The Company issued warrants to purchase 4.0 million common shares to the note
holder in December 2005. The value of the note proceeds were allocated to the
beneficial conversion feature and the warrants, resulting in a discount equal to
the face value of the note. The note discount is being amortized to interest
expense beginning on the funding date. The shares underlying the convertible
note and warrants have registration rights. The registration rights agreement
for NPA #2 provides for liquidated damages equal to 36% of the note principal in
the event that a registration statement to register the underlying shares is not
declared effective. The Company filed a registration statement to register the
shares underlying the convertible note payable and warrants on June 8, 2006. The
registration statement has not been declared effective by the Securities and
Exchange Commission, and the Company will incur liquidated damages until the
registration statement is declared effective. The Company recorded liquidated
damages of $18,000 for the three months and nine months ended June 30, 2006. The
Company did not record liquidated damages for the three months and nine months
ended June 30, 2005.

                                      F-7
<PAGE>

In January 2006, the Company executed a Note Purchase Agreement ("NPA #3") to
convert $236,680 of accrued liquidated damages on NPA #1 into a note payable.
The note bears interest at 8%, is due January 26, 2008, and is convertible into
approximately 9.5 million shares of common stock based on a conversion rate of
one common share for every $.025 of note principal. The value of the note
proceeds were allocated to the beneficial conversion feature, resulting in a
discount equal to the face value of the note. The note discount is being
amortized to interest expense beginning on the funding date. The shares
underlying the convertible note have registration rights. The registration
rights agreement for NPA #3 provides for liquidated damages equal to 36% of the
note principal in the event that a registration statement to register the
underlying shares is not declared effective. The Company filed a registration
statement to register the shares underlying the convertible note payable on June
8, 2006. The registration statement has not been declared effective by the
Securities and Exchange Commission, and the Company will incur liquidated
damages until the registration statement is declared effective. The Company
recorded liquidated damages of $42,600 for the three months and nine months
ended June 30, 2006. The Company did not record liquidated damages for the three
months and nine months ended June 30, 2005.

In April 2006, the Company executed a Note Purchase Agreement ("NPA #4) to
convert $167,843 of accrued liquidated damages on NPA #1, NPA #2 and NPA #3 into
a note payable. The note bears interest at 8%, is due April 20, 2008, and is
convertible into approximately 6.7 million shares of common stock based on a
conversion rate of one common share for every $.025 of note principal. The value
of the note proceeds were allocated to the beneficial conversion feature,
resulting in a discount equal to the face value of the note. The note discount
is being amortized to interest expense beginning on the funding date. The shares
underlying the convertible note have registration rights. The registration
rights agreement for NPA #4 provides for liquidated damages equal to 36% of the
note principal in the event that a registration statement to register the
underlying shares is not declared effective. The Company filed a registration
statement to register the shares underlying the convertible note payable on June
8, 2006. The registration statement has not been declared effective by the
Securities and Exchange Commission, and the Company will incur liquidated
damages until the registration statement is declared effective. The Company
recorded liquidated damages of $10,100 for the three months and nine months
ended June 30, 2006. The Company did not record liquidated damages for the three
months and nine months ended June 30, 2005.

The notes referenced above are secured by the Company's assets, and the Company
would lose all of its assets in the event of a default under the terms on the
note agreements.

Conversion of the convertible notes and exercise of the warrants issued pursuant
to NPA #1, NPA #2, NPA #3 and NPA #4 are limited such that the note holder can
not convert notes or exercise warrants that would result in beneficial ownership
by the holder or its affiliates of more than 4.9% of the outstanding common
shares on the conversion or exercise date.

NOTE 4 - SETTLEMENT AGREEMENT

In December 2005, the Company entered into a settlement agreement with a vendor
to satisfy accounts payable totaling $163,000. Terms of the agreement provided
for payment in cash of $35,000, and the issuance of 1,000,000 shares of common
stock. The common shares issued were valued at $90,000, or $0.09 per share,
which was the fair market value on the agreement date. The resulting gain on
settlement totaling $38,000 was recorded as other income during the three months
ended December 31, 2005.

NOTE 5 - COMMON STOCK

In December 2005, the Company entered into a settlement agreement with a vendor
to satisfy accounts payable totaling $163,000. Terms of the agreement provided
for payment in cash of $35,000, and the issuance of 1,000,000 shares of common
stock. The common shares issued were valued at $90,000, or $0.09 per share,
which was the fair market value of the common stock on the agreement date. The
resulting gain on settlement totaling $38,000 was recorded as other income
during the nine months ended June 30, 2006.



                                      F-8
<PAGE>

In March 2006, the Company cancelled 1,500,000 shares previously issued to a
former employee, and in April 2006, the Company issued 150,000 shares to replace
the cancelled shares pursuant to an agreement between the Company and the former
employee.

In April 2006, the Company issued 100,000 shares for public relations services
covering the three months from March to May, 2006. The Company recorded
compensation expense of $5,000 based on the closing market price of $0.05 on the
date of issuance, April 4, 2006.

During the nine months ended June 30, 2006, the Company issued 4,225,015 shares
that were previously subscribed. As of June 30, 2006, the Company has subscribed
for the issuance of 3,500 shares of common stock for services rendered.

As of June 30, 2006, the Company has outstanding convertible notes that are
convertible into 62.7 million common shares and has outstanding warrants that
are exercisable for 24.4 million common shares. Conversion of the convertible
notes and exercise of the warrants for 19.9 million common shares are limited
such that the note holder can not convert notes or exercise warrants that would
result in beneficial ownership by the holder or its affiliates of more than 4.9%
of the outstanding common shares on the conversion or exercise date.

The Company did not grant any stock options during the nine months ended June
30, 2006 or during the years ended September 30, 2005 or 2004.

NOTE 6 - DISCONTINUED OPERATIONS

In June 2006, the Company discontinued the operations of the Consumer Services
division, which consisted primarily of installation of home consumer products
for a major retailer. The employees of the Consumer Services division were
laid-off in and the fixed assets used in the Consumer Services Division were
transferred to the Company's other divisions. The net loss from discontinued
operations for the three and nine months ended June 30, 2006 was $54,400 and
$146,600, respectively. The net loss from discontinued operations for the three
and nine months ended June 30, 2005 was $29,500 and $67,000, respectively.

NOTE 7 - SEGMENT INFORMATION

Statement of Financial Accounting Standards No. 131, "Disclosures about Segments
of an Enterprise and Related Information" ("SFAS 131") establishes standards for
reporting information regarding operating segments in annual financial
statements and requires selected information for those segments to be presented
in interim financial reports issued to stockholders. SFAS 131 also establishes
standards for related disclosures about products and services and geographic
areas. Operating segments are identified as components of an enterprise about
which separate discrete financial information is available for evaluation by the
chief operating decision maker, or decision-making group, in making decisions
how to allocate resources and assess performance. Beginning in October 2004, the
Company operated in three segments: Construction Services; Maintenance Services,
and Consumer Services. Beginning in December 2005, the Company added a new
division called Testing Services. Beginning June 2006, the Company closed its
Consumer Services division and merged the Testing Services division into the
Maintenance Services division. The Company's Other segment includes primarily
general and administrative expenses.

During the three months ended June 30, 2006, we recognized revenue of $155,000
from one customer in the Construction Services division, and $253,000 and
$182,000 from two different customers in the Maintenance Services division.
During the three months ended June 30, 2005, we recognized revenue of $335,000
from one customer in the Construction Services division, and $298,000 and
$251,000 from two different customers in the Maintenance Services division.

During the nine months ended June 30, 2006, we recognized revenue of $1.1
million from one customer in the Construction Services division, and $737,000
and $664,000 from two different customers in the Maintenance Services division.
During the nine months ended June 30, 2005, we recognized revenue of $546,000
from one customer in the Construction Services division, and $791,000 and
$759,000 from two different customers in the Maintenance Services division.

While we consider our relationships with the customers to be satisfactory, given
the concentration of our sales to a few key customers, our continued
relationships may be subject to the policies and practices of the customers. We
continue to concentrate our efforts on expanding our customer base in order to
reduce our reliance on our current customers. Intersegment revenues are not
material and are not shown in the following tables.

                                      F-9
<PAGE>

The following table provides selected summary financial information data by
segment.

<TABLE>
<CAPTION>
                                              For the three months ended June 30, 2006
                                    --------------------------------------------------------
                                    Construction   Maintenance      Other       Consolidated
                                    ------------   -----------   -----------    ------------
<S>                                 <C>            <C>           <C>            <C>
Revenues                            $   346,229    $   617,396   $      --      $   963,625
Cost of sales                           317,731        354,867          --          672,598
Gross profit                             28,498        262,529          --          291,027
Operating expenses                       95,268        201,545       167,931        464,744
Depreciation expense and goodwill
  impairment                              2,388         36,348         9,676         48,412
Income (Loss) from operations           (69,158)        24,636      (177,607)      (222,129)
Interest expense and liquidated
  damages                                  --             --         392,561        392,561



                                            For the three months ended March 31, 2005
                                    --------------------------------------------------------
                                    Construction   Maintenance      Other       Consolidated
                                    ------------   -----------   -----------    ------------
Revenues                            $ 1,161,103    $   629,300   $      --      $ 1,790,403
Cost of sales                           748,986        399,881          --        1,148,867
Gross profit                            412,117        229,419          --          641,536
Operating expenses                       82,388        114,285       297,532        494,205
Depreciation expense and goodwill
  impairment                               --             --          11,434         11,434
Income (Loss) from operations           329,729        115,134      (308,966)       135,897
Interest expense and liquidated
  damages                                  --             --         155,096        155,096





                                            For the nine months ended June 30, 2006
                                    --------------------------------------------------------
                                    Construction   Maintenance      Other       Consolidated
                                    ------------   -----------   -----------    ------------
Revenues                            $ 1,905,183    $ 1,817,120   $      --      $ 3,722,303
Cost of sales                         1,416,280      1,049,625          --        2,465,905
Gross profit                            488,903        767,495          --        1,256,398
Operating expenses                      327,972        563,453       541,601      1,433,026
Depreciation expense and goodwill
  impairment                             10,777         56,046        29,952         96,775
Income (Loss) from operations           150,154        147,996      (571,553)      (273,403)
Interest expense and liquidated
  damages                                  --             --         945,318        945,318
Additions to long-lived assets             --           99,431         1,037        100,468



                                            For the nine months ended June 30, 2005
                                    --------------------------------------------------------
                                    Construction   Maintenance      Other       Consolidated
                                    ------------   -----------   -----------    ------------
Revenues                            $ 1,901,191    $ 1,943,395   $      --      $ 3,844,586
Cost of sales                         1,089,273      1,253,844          --        2,343,117
Gross profit                            811,918        689,551          --        1,501,469
Operating expenses                      229,599        408,606       843,728      1,481,933
Depreciation expense and goodwill
  impairment                               --           13,300        24,169         37,469
Income (Loss) from operations           582,319        267,645      (867,897)       (17,933)
Interest expense                           --             --         461,356        461,356
Additions to long-lived assets           12,784         14,783           832         28,399


</TABLE>


NOTE 8: LEGAL PROCEEDINGS

The proceedings described below are in various stages. While the ultimate effect
of the legal actions described below cannot be predicted with certainty, the
Company expects that the proceedings against its subsidiaries will not result in
liability to the Company due to the ongoing bankruptcy of CPI and AFFS.

                                      F-10
<PAGE>

The Company does not expect the outcome of these matters to have a material
effect on its financial condition or the results of its operations. The
following lawsuits have been filed against the Company:

NK Heating & Air Conditioning filed complaint against the Company and its
formerly owned subsidiary , CPI Development, Inc. in Los Angeles County Superior
Court. The complaint alleges a breach of contract, and asks for damages of
$98,000. The Company believes that it has meritorious defenses to the
plaintiff's claims and intends to vigorously defend itself against the
Plaintiff's claims.

Corona Service Park, et al filed complaint against the Company in the Central
District of California of the United States District Court. The complaint
alleges a breach of contract. The Company believes that it has meritorious
defenses to the plaintiff's claims and intends to vigorously defend itself
against the Plaintiff's claims.

The Company is also subject to other legal proceedings and claims which arise in
the ordinary course of its business. Although occasional adverse decisions or
settlements may occur, the Company believes that the final disposition of such
matters will not have material adverse effect on its financial position, results
of operations or liquidity

Other than described above, the Company is not engaged in any other litigation,
and is unaware of any claims or complaints that could result in future
litigation. The Company will seek to minimize disputes with its customers but
recognize the inevitability of legal action in today's business environment as
an unfortunate price of conducting business.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS.

FORWARD-LOOKING INFORMATION

Much of the discussion in this Item is "forward looking" as that term is used in
Section 27A of the Securities Act and Section 21E of the Securities Exchange Act
of 1934. Actual operations and results may materially differ from present plans
and projections due to changes in economic conditions, new business
opportunities, changed business conditions, and other developments. Other
factors that could cause results to differ materially are described in our
filings with the Securities and Exchange Commission.

There are several factors that could cause actual results or events to differ
materially from those anticipated, and include, but are not limited to general
economic, financial and business conditions, changes in and compliance with
governmental laws and regulations, including various state and federal
environmental regulations, our ability to obtain additional financing from
outside investors and/or bank and mezzanine lenders and our ability to generate
sufficient revenues to cover operating losses and position us to achieve
positive cash flow.

Readers are cautioned not to place undue reliance on the forward-looking
statements contained herein, which speak only as of the date hereof. We believe
the information contained in this Form 10-QSB to be accurate as of the date
hereof. Changes may occur after that date. We will not update that information
except as required by law in the normal course of its public disclosure
practices.

Additionally, the following discussion regarding our financial condition and
results of operations should be read in conjunction with the financial
statements and related notes contained in Item 1 of Part I of this Form 10-QSB,
as well as the financial statements in Item 6 of Part II of our Form 10-KSB for
the fiscal year ended September 30, 2005.

RESULTS OF OPERATIONS

CONTINUING OPERATIONS
---------------------

Beginning in October 2004, the Company operated in three segments: Construction
Services; Maintenance Services, and Consumer Services. Beginning in December
2005, the Company added a new division called Testing Services. Beginning June
2006, the Company closed its Consumer Services division and merged the Testing
Services division into the Maintenance Services division. The Company's Other
segment includes primarily general and administrative expenses.

                                        3
<PAGE>

THREE MONTHS ENDED JUNE 30, 2006 COMPARED TO THE THREE MONTHS ENDED
JUNE 30, 2005

<TABLE>
<CAPTION>
                                              For the three months ended June 30, 2006
                                    --------------------------------------------------------
                                    Construction   Maintenance      Other       Consolidated
                                    ------------   -----------   -----------    ------------
<S>                                 <C>            <C>           <C>            <C>
Revenues                            $   346,229    $   617,396   $      --      $   963,625
Cost of sales                           317,731        354,867          --          672,598
Gross profit                             28,498        262,529          --          291,027
Operating expenses                       95,268        201,545       167,931        464,744
Depreciation expense and goodwill
  impairment                              2,388         36,348         9,676         48,412
Income (Loss) from operations           (69,158)        24,636      (177,607)      (222,129)
Interest expense and liquidated
  damages                                  --             --         392,561        392,561



                                           For the three months ended March 31, 2005
                                    --------------------------------------------------------
                                    Construction   Maintenance      Other       Consolidated
                                    ------------   -----------   -----------    ------------
Revenues                            $ 1,161,103    $   629,300   $      --      $ 1,790,403
Cost of sales                           748,986        399,881          --        1,148,867
Gross profit                            412,117        229,419          --          641,536
Operating expenses                       82,388        114,285       297,532        494,205
Depreciation expense and goodwill
  impairment                               --             --          11,434         11,434
Income (Loss) from operations           329,729        115,134      (308,966)       135,897
Interest expense and liquidated
  damages                                  --             --         155,096        155,096

</TABLE>


Construction Services
---------------------

Construction Services revenues decreased $(814,900), or 70.20% due to
management's inability to secure and complete larger projects and to control
cost. The failures can be attributed to inadequate operating capital to support
large upfront costs, cyclical softening of the market, inadequate sales and
marketing effort, and lack of bonding capacity. Gross margin percentage
decreased to 8.2% from 35.5% because our efforts during the quarter focused
primarily on two large contracts which underperformed.

Operating expenses as a percentage of revenue increased from 7.1% to 27.5%
because of our lower revenue base in the current year quarter. On a gross dollar
basis, operating expenses increased $12,900, or 15.6%. Bad debt expense
increased $8,600, or 100%, during the current year quarter because we did not
allocate bad debt expense to the divisions in the prior year quarter, which has
no effect on consolidated operations. Employee related expenses decreased
$10,100, or 19.2% during the current year quarter because we reduced our
headcount by one project manager. Insurance expense increased $10,900, or 100%,
during the current year quarter because we did not allocate insurance expense to
the divisions in the prior year quarter, which has no effect on consolidated
operations.

Overall, Construction Services incurred a loss from operations during the
current year quarter of $69,200 compared to income from operations of $329,700
during the prior year quarter, a decrease of $398,900, or 121%, based on the
factors discussed above.

Maintenance Services
--------------------
Maintenance Services revenues decreased $11,900, or 1.9%. Revenues were
consistent because we made a business decision to focus on higher quality
customers and elimination of non-critical customers, which had the effect of
lowering maintenance related revenues by $35,200; and we recorded testing
services related revenue of $23,300, which we did not have in the prior year
quarter and which helped offset the decrease in maintenance services revenue.
Gross margin percentage increased to 42.5% from 36.5% primarily because we
increased our labor efficiency. Labor related charges in cost of goods sold
decreased $25,300, or 14.2%.

                                        4
<PAGE>

Operating expenses as a percentage of revenue increased to 32.6% from 18.2%, or
$45,600 in total. Bad debt expense increased $40,600, or 100%, during the
current year quarter because we did not allocate bad debt expense to the
divisions in the prior year quarter, which has no effect on consolidated
operations. Insurance expense increased $13,000, or 100%, during the current
year quarter because we did not allocate insurance expense to the divisions in
the prior year quarter, which has no effect on consolidated operations. Employee
related expenses increased $23,800, or 38.8%, due to salary increases and the
addition of one employee.

We merged the Testing Services division with the Maintenance Services division
during the current year quarter, and recorded a goodwill impairment charge
during the current year quarter of $21,500, which was the amount of the goodwill
recorded at acquisition.

Overall, Maintenance Services income from operations decreased $90,500, or
78.6%, based on the factors discussed above and cyclical softening of the
market.

Other
-----

Corporate overhead decreased from $297,500 to $167,900 or 43.6%. We allocated
insurance costs to the divisions in the current year, resulting in a decrease in
overhead costs of $39,700 during the current year quarter. The remainder of the
decrease is primarily attributable to lower legal, accounting and consulting
fees in the current year quarter. We incurred higher legal, accounting and
consulting fees in the prior year quarter related to our restructuring and
bankruptcy filings.

Interest expense increased to $225,000 from $155,000, or 44.9%. We have a higher
debt base this quarter compared to the prior year quarter which attributes to
the increase in interest expense. Interest expense also includes amortization of
the note discounts discussed in Note 3.

We recorded liquidated damages of $168,000 during the current year period
related to our failure to timely file a registration statement to register the
shares underlying the convertible notes and warrants discussed in Note 3. No
such charge was recorded in the prior year quarter.

Consolidated
------------

On a consolidated basis, our revenues decreased $826,800, or 46.2%, our gross
margin decreased $350,500, or 54.6%, our operating expenses decreased $29,500,
or 6.0%; our liquidated damages expense increased $168,000, or 100%; and our
interest expense increased $70,000, or 45.2%, all as discussed above on a
segment basis. We recorded a net loss of $662,900 in the current quarter,
compared to a net loss of $48,700 in the prior year quarter.

NINE MONTHS ENDED JUNE 30, 2006 COMPARED TO THE NINE MONTHS ENDED JUNE 30, 2005


<TABLE>
<CAPTION>

                                              For the nine months ended June 30, 2006
                                    --------------------------------------------------------
                                    Construction   Maintenance      Other       Consolidated
                                    ------------   -----------   -----------    ------------
<S>                                 <C>            <C>           <C>            <C>
Revenues                            $ 1,905,183   $ 1,817,120   $      --      $ 3,722,303
Cost of sales                         1,416,280     1,049,625          --        2,465,905
Gross profit                            488,903       767,495          --        1,256,398
Operating expenses                      327,972       563,453       541,601      1,433,026
Depreciation expense and goodwill
  impairment                             10,777        56,046        29,952         96,775
Income (Loss) from operations           150,154       147,996      (571,553)      (273,403)
Interest expense and liquidated
  damages                                  --            --         945,318        945,318
Additions to long-lived assets             --          99,431         1,037        100,468



                                        5
<PAGE>

                                           For the nine months ended June 30, 2005
                                    --------------------------------------------------------
                                    Construction   Maintenance      Other       Consolidated
                                    ------------   -----------   -----------    ------------
Revenues                            $ 1,901,191   $ 1,943,395   $      --      $ 3,844,586
Cost of sales                         1,089,273     1,253,844          --        2,343,117
Gross profit                            811,918       689,551          --        1,501,469
Operating expenses                      229,599       408,606       843,728      1,481,933
Depreciation expense and goodwill
  impairment                               --          13,300        24,169         37,469
Income (Loss) from operations           582,319       267,645      (867,897)       (17,933)
Interest expense                           --            --         461,356        461,356
Additions to long-lived assets           12,784        14,783           832         28,399

</TABLE>



Construction Services
---------------------

Construction Services revenues increased $4,000, or less than 1% due to cyclical
softening of the market, inadequate sales and marketing effort, and inadequate
operating capital. Gross margin percentage decreased to 25.7% from 42.7% because
our efforts during the third quarter of 2006 focused primarily on two large
contracts on which underperformed.

Operating expenses as a percentage of revenue increased from 12.1% to 17.2%. On
a gross dollar basis, operating expenses increased $98,400, or 42.8%. Employee
related costs increased $39,600, or 27.8%, during the current year period
because our un-billable labor increased during the current period. Insurance
expense increased $32,400, or 100%, during the current year period because we
did not allocate insurance expense to the divisions in the prior year period,
which has no effect on consolidated operations. Facility related costs increased
$12,600, or 72.5% during the current year period because we rented additional
storage space for vehicles, equipment and tools. Bad debt expense increased
$4,200, or 100%, during the current year period because we did not allocate bad
debt expense to the divisions in the prior year period, which has no effect on
consolidated operations.

Overall, Construction Services income from operations decreased by $432,200, or
74.2%, because of these factors.

Maintenance Services
--------------------

Maintenance Services revenues decreased $126,300, or 6.5%. We made a business
decision to focus on higher quality customers and to eliminate of non-critical
customers, which reduced maintenance related revenues by $242,500. This decrease
was offset by testing related revenues of $116,200 which we did not have in the
prior year period. Gross margin percentage increased to 42.2% from 35.5% because
we increased our labor efficiency. Labor related charges in cost of goods sold
decreased $188,300, or 29.2%.

Operating expenses as a percentage of revenue increased to 31.0% from 21.0%, or
$154,800 in total. Employee related expenses increased $53,300, or 23.6%, due to
salary increases and the addition of one employee. Bad debt expense increased
$43,400, or 100%, during the current year period because we did not allocate bad
debt expense to the divisions in the prior year quarter, which has no effect on
consolidated operations. Insurance expense increased $39,000, or 100%, during
the current year period because we did not allocate insurance expense to the
divisions in the prior year period, which has no effect on consolidated
operations.

We merged the Testing Services division with the Maintenance Services division
during the current year period, and recorded a goodwill impairment charge during
the current year period of $21,500, which was the amount of the goodwill
recorded at acquisition.

Other
-----

Corporate overhead decreased to $541,600 from $843,700, or 35.8%. We allocated
insurance costs to the divisions in the current year, resulting in a decrease in
overhead costs of $104,100 during the current year period. The remainder of the
decrease is primarily attributable to lower legal, accounting and consulting
fees in the current year period. We incurred higher legal, accounting and
consulting fees in the prior year period related to our restructuring and
bankruptcy filings.

                                       6
<PAGE>

Interest expense increased to $587,000 from $461,000, or 27.2%. We have a higher
debt base during the current year period compared to the prior year period which
attributes to the increase in interest expense. Interest expense also includes
amortization of the note discounts discussed in Note 3.

We recorded liquidated damages of $358,000 during the current year period
related to our failure to timely file a registration statement to register the
shares underlying the convertible notes and warrants discussed in Note 3. No
such charge was recorded in the prior year period.

Consolidated
------------

On a consolidated basis, our revenues decreased $122,200, or 3.2%; our gross
margin decreased $245,100, or 16.3%; our operating expenses decreased $48,900,
or 3.3%; liquidated damages increased $358,00, or 100%; and our interest expense
increased $126,000, or 27.2%, all as discussed above on a segment basis. Our net
loss increased to $1.3 million from $546,000 based on the factors discussed
above.

DISCONTINUED OPERATIONS

In June 2006, we discontinued the operations of the Consumer Services division,
which consisted primarily of installation of home consumer products for a major
retailer. The employees of the Consumer Services division were laid-off in and
the fixed assets used in the Consumer Services Division were transferred to the
Company's other divisions. The net loss from discontinued operations for the
three and nine months ended June 30, 2006 was $54,400 and $146,600,
respectively. The net loss from discontinued operations for the three and nine
months ended June 30, 2005 was $29,500 and $67,000, respectively.

LIQUIDITY AND CAPITAL RESOURCES

During the nine months ended June 30, 2006 and during the year ended September
30, 2005, we incurred net losses of $1.3 million and $1.2 million, respectively.
During the nine months ended June 30, 2006, our continuing operations provided
$19,700 of cash; however, for the year ended September 30, 2005, we used
$588,000 of cash for our operating activities. During the nine months ended June
30, 2006, we purchased property and equipment totaling $81,100 for our
continuing operations; Burr Northrop, our President, advanced us $75,000, which
we repaid; and we issued an 8% convertible note payable for $100,000.

At June 30, 2006, we have negative working capital of $1.9 million, and we have
outstanding obligations to Barron Partners of an aggregate of $1.1 million that
is due September 30, 2006. We filed a registration statement to register the
shares underlying the convertible notes payable on June 2, 2006, and will
continue to incur liquidated damages at the rate of 36% per year on the
outstanding balance of the notes payable until such registration statement is
effective.

In order to execute our business plan, we will need to acquire additional debt
or equity financing. Our independent certified public accountants have stated in
their report, included in our Form 10-KSB for the year ended September 30, 2005,
and in Note 1 of this Form 10-QSB that due to our net loss and negative cash
flows from operations, in addition to a lack of operational history, there is a
substantial doubt about our ability to continue as a going concern. In the
absence of significant revenue and profits, we will be completely dependent on
additional debt and equity financing arrangements. There is no assurance that
any financing will be sufficient to fund our capital expenditures, working
capital and other cash requirements for the fiscal year ending September 30,
2006. No assurance can be given that any such additional funding will be
available or that, if available, can be obtained on terms favorable to us. If we
are unable to raise needed funds on acceptable terms, we will not be able to
execute our business plan, develop or enhance existing services, take advantage
of future opportunities or respond to competitive pressures or unanticipated
requirements. A material shortage of capital will require us to take drastic
steps such as further reducing our level of operations, disposing of selected
assets or seeking an acquisition partner. If cash is insufficient, we will not
be able to continue operations.

ACCOUNTING POLICIES INVOLVING MANAGEMENT ESTIMATES AND ASSUMPTIONS

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions in certain circumstances that affect amounts reported in the
accompanying financial statements and related footnotes. In preparing these
financial statements, management has made its best estimates and judgments of

                                       7
<PAGE>

certain amounts included in the financial statements, giving due consideration
to materiality. We do not believe there is a great likelihood that materially
different amounts would be reported related to the accounting policies described
below. However, application of these accounting policies involves the exercise
of judgment and use of assumptions as to future uncertainties and, as a result,
actual results could differ from these estimates. Our senior management has
discussed the development and selection of the critical accounting estimates,
and related disclosures, with the Audit Committee of our Board of Directors.

Financial Reporting Release No. 60, which was released by the Securities and
Exchange Commission, or SEC, in December 2001, requires all companies to include
a discussion of critical accounting policies or methods used in the preparation
of financial statements. The Notes to Consolidated Financial Statements included
in our Annual Report on Form 10-KSB for the year ended September 30, 2005
includes a summary of our significant accounting policies and methods used in
the preparation of our financial statements. In preparing these financial
statements, we have made our best estimates and judgments of certain amounts
included in the financial statements, giving due consideration to materiality.
The application of these accounting policies involves the exercise of judgment
and use of assumptions as to future uncertainties and, as a result, actual
results could differ from these estimates. Our critical accounting policies are
as follows:

REVENUE RECOGNITION The Company recognizes revenues from fixed-price and
modified fixed-price construction contracts on the percentage-of-completion
method, measured by the percentage of cost incurred to date to estimated total
cost for each contract. Provisions for estimated losses on uncompleted contracts
are made in the period in which such losses are determined. Changes in job
performance, job conditions, and estimated profitability may result in revisions
to costs and income, which are recognized in the period in which the revisions
are determined. Changes in estimated job profitability resulting from job
performance, job conditions, contract penalty provisions, claims, change orders,
and settlements, are accounted for as changes in estimates in the current
period.

The Company recognizes revenue from repair and installation services, in
accordance with SEC Staff Accounting Bulletin No. 101, "Revenue Recognition in
Financial Statements" ("SAB 101"). SAB 101 requires that four basic criteria
must be met before revenue can be recognized: (1) persuasive evidence of an
arrangement exists; (2) delivery has occurred or services have been rendered;
(3) the selling price is fixed and determinable; and (4) collectability is
reasonably assured.

The SEC's Staff Accounting Bulletin, or SAB, No. 104, Revenue Recognition,
provides guidance on the application of generally accepted accounting principles
to selected revenue recognition issues. We believe that our revenue recognition
policy is appropriate and in accordance with generally accepted accounting
principles and SAB No. 104.

ALLOWANCE FOR DOUBTFUL ACCOUNTS We also maintain an allowance for doubtful
accounts for potential uncollectible accounts receivable arising from our
customers' inability to make required payments. Our estimate is determined by
analyzing historical bad debts, customer payment history and patterns, customer
creditworthiness, and economic, political or regulatory factors affecting the
customer's ability to make the required payments.

ITEM 3. CONTROLS AND PROCEDURES.

Disclosure controls and procedures are controls and other procedures that are
designed to ensure that information required to be disclosed by us in the
reports that we file or submit under the 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 by us in the reports that we file under the
Exchange Act is accumulated and communicated to our management, including our
principal executive and financial officers, as appropriate to allow timely
decisions regarding required disclosure.

Evaluation of Disclosure and Controls and Procedures. As of the end of the
period covered by this Quarterly Report, we conducted an evaluation, under the
supervision and with the participation of our chief executive officer and chief
financial officer, of our disclosure controls and procedures (as defined in
Rules 13a-15(e) of the Exchange Act). Based on this evaluation, our chief
executive officer and chief financial officer concluded that our disclosure
controls and procedures are effective to ensure that information required to be
disclosed by us in reports that we file or submit under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified
in Securities and Exchange Commission rules and forms.

                                       8
<PAGE>

Changes in Internal Controls Over Financial Reporting. There have not been any
changes in the our internal control over financial reporting (as such term is
defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the
fiscal quarter to which this report relates that have materially affected, or
are reasonably likely to materially affect, our internal control over financial
reporting.

                           PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

The proceedings described below are in various stages. While the ultimate effect
of the legal actions described below cannot be predicted with certainty, we
expect that the proceedings against our subsidiaries will not result in
liability to us due to the ongoing bankruptcy of CPI and AFFS.

We do not expect the outcome of these matters to have a material effect on our
financial condition or the results of our operations. The following lawsuits
have been filed against us:

NK Heating & Air Conditioning filed complaint against the Company and its
formerly owned subsidiary , CPI Development, Inc. in Los Angeles County Superior
Court. The complaint alleges a breach of contract, and asks for damages of
$98,000. The Company believes that it has meritorious defenses to the
plaintiff's claims and intends to vigorously defend itself against the
Plaintiff's claims.

Corona Service Park, et al filed complaint against the Company in the Central
District of California of the United States District Court. The complaint
alleges a breach of contract. The Company believes that it has meritorious
defenses to the plaintiff's claims and intends to vigorously defend itself
against the Plaintiff's claims.

The Company is also subject to other legal proceedings and claims which arise in
the ordinary course of its business. Although occasional adverse decisions or
settlements may occur, the Company believes that the final disposition of such
matters will not have material adverse effect on its financial position, results
of operations or liquidity

Other than described above, we are not engaged in any other litigation, and are
unaware of any claims or complaints that could result in future litigation. We
will seek to minimize disputes with our customers but recognize the
inevitability of legal action in today's business environment as an unfortunate
price of conducting business.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

In December 2005, the Company entered into a settlement agreement with a vendor
to satisfy accounts payable totaling $163,000. Terms of the agreement provided
for payment in cash of $35,000, and the issuance of 1,000,000 shares of common
stock. The common shares issued were valued at $90,000, or $0.09 per share,
which was the fair market value of the common stock on the agreement date. The
resulting gain on settlement totaling $38,000 was recorded as other income
during the nine months ended June 30, 2006.

In December 2005, the Company entered into settlement agreement with a law firm
in which the Company issued 225,000 shares of common stock. The services were
performed during the year ended September 30, 2005, legal expense of $36,000
($.016 per share) was recorded during the year ended September 30, 2005 based on
the fair market value of the common stock, and the shares were subscribed for
issuance as of September 30, 2005.

As of June 30, 2006, the Company has subscribed for the issuance of 3,500 shares
of common stock for services rendered.

As of June 30, 2006, the Company sold units consisting of convertible notes that
are convertible into 62.7 million common shares and warrants that are
exercisable for 19.9 million common shares. Conversion of the convertible notes
and exercise of the warrants are limited such that the note holder can not
convert notes or exercise warrants that would result in beneficial ownership by
the holder or its affiliates of more than 4.9% of the outstanding common shares
on the conversion or exercise date.

The offer and sale of such shares of our common stock were effected in reliance
on the exemptions for sales of securities not involving a public offering, as
set forth in Rule 506 promulgated under the Securities Act of 1933, as amended
(the "Securities Act") and in Section 4(2) and Section 4(6) of the Securities

                                       9
<PAGE>

Act and/or Rule 506 of Regulation D, based on the following: (a) the investors
confirmed to us that they were "accredited investors," as defined in Rule 501 of
Regulation D promulgated under the Securities Act and had such background,
education and experience in financial and business matters as to be able to
evaluate the merits and risks of an investment in the securities; (b) there was
no public offering or general solicitation with respect to the offering; (c) the
investors were provided with certain disclosure materials and all other
information requested with respect to our company; (d) the investors
acknowledged that all securities being purchased were "restricted securities"
for purposes of the Securities Act, and agreed to transfer such securities only
in a transaction registered under the Securities Act or exempt from registration
under the Securities Act; and (e) a legend was placed on the certificates
representing each such security stating that it was restricted and could only be
transferred if subsequently registered under the Securities Act or transferred
in a transaction exempt from registration under the Securities Act. All of the
investors took their securities for investment purposes without a view to
distribution and had access to information concerning the Company and our
business prospects, as required by the Securities Act.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5.  OTHER INFORMATION

None.

ITEM 6.  EXHIBITS

1.1**        Investment Banking Agreement with Windstone Capital Partners dated
             October 24, 2003
2.1**        Plan and Agreement of Triangular Merger Between Environmental
             Technologies, Inc., Parr Sub One, Inc. and Christie-Peterson
             Development dated December 29, 2003
2.2**        Agreement of Merger between Christie-Petersen Development and Parr
             Sub One, Inc. filed December 30, 2003
2.3**        Plan and Agreement of Triangular Merger Between Environmental
             Technologies, Inc., Parr Sub Two, Inc. and Advanced Fuel Filtration
             Systems, Inc. dated December 29, 2003
2.4**        Agreement of Merger between Advanced Fuel Filtration, Inc. and Parr
             Sub Two, Inc. filed December 30, 2003
2.5**        Plan and Agreement of Triangular Merger Between Environmental
             Technologies, Inc., Parr Sub Three, Inc. and H.B. Covey, Inc. dated
             December 29, 2003
2.6**        Agreement of Merger between H.B. Covey, Inc. and Parr Sub Three,
             Inc. filed December 30, 2003
3.1.1**      Articles of Incorporation of Cyber Public Relations, Inc., filed
             June 18, 1998
3.1.2**      Amended and Restated Articles of Incorporation of Cyber Public
             Relations, Inc., changing the name of the corporation to Entech
             Environmental Technologies, Inc., filed March 22, 2004
3.1.3**      Articles of Incorporation of Point 2 Point Services, Inc., filed
             April 5, 2001
3.1.4**      Certificate of Amendment to Articles of Incorporation of Point 2
             Point Services, Inc., changing the name of the corporation to Parr
             Development, Inc., filed December 31, 2002
3.1.5**      Amended and Restated Articles of Incorporation of Parr Development,
             Inc., changing the name of the corporation to Environmental
             Technologies, Inc., filed November 25, 2003
3.1.6**      Articles of Incorporation of Parr Sub One, Inc. filed December 19,
             2003
3.1.7**      Articles of Incorporation of Parr Sub Two, Inc. filed December 19,
             2003
3.1.8**      Articles of Incorporation of Parr Sub Three, Inc. filed December
             19, 2003
3.1.9**      Articles of Incorporation of Christie-Petersen Development filed
             September 15, 1995
3.1.10**     Articles of Incorporation of YLD/Clean Fuels, Inc. filed September
             18, 1995
3.1.11**     Certificate of Amendment of Articles of Incorporation of YLD/Clean
             Fuels, Inc., changing the name of the corporation to Advanced Fuel
             Filtration, Inc., filed September 27, 1997
3.1.12**     Articles of Incorporation of H.B. Covey, Inc., filed March 19, 1971

                                       10
<PAGE>

3.2.1**      Bylaws of Cyber Public Relations, Inc., adopted July 5, 1998
3.2.2**      Amended Bylaws of Cyber Public Relations, Inc. adopted February 16,
             2004
3.2.3**      Amended and Restated Bylaws of Entech Environmental Technologies,
             Inc., adopted April 28, 2004
3.2.4**      Bylaws of Point 2 Point Services, Inc
3.2.5**      Bylaws of Parr Sub One, Inc. , adopted December 29, 2003
3.2.6**      Bylaws of Parr Sub Two, Inc., adopted December 29, 2003
3.2.7**      Bylaws of Parr Sub Three, Inc., adopted December 29, 2003
3.2.8**      Bylaws of Christie-Petersen Development, adopted September 22, 1995
3.2.9**      Bylaws of YLD/Clean Fuels, Inc. dated October 6, 1995
3.2.10**     Bylaws of Entech Environmental Technologies, Inc. adopted February
             4, 2004
3.2.11**     Restated Bylaws of H.B. Covey, Inc. adopted April 1, 1999
3.3.1**      Charter of the Audit Committee of the Board of Directors of Cyber
             Public Relations, Inc., adopted January 29, 2004
3.3.2**      Charter of the Compensation Committee of the Board of Directors of
             Cyber Public Relations, Inc., adopted January 29, 2004
4.1**        Registration Rights Agreement with Barron Partners, LP regarding
             registration of shares, dated January 23, 2004
4.2**        Registration Rights Agreement with Wood Capital Associates,
             regarding registration of shares, dated January 23, 2004
4.3**        Registration Rights Agreement with Patricia L. Fiorese, regarding
             registration of shares, dated January 23, 2004
4.4**        Registration Rights Agreement with Vance Luedtke, regarding
             registration of shares, dated January 23, 2004
4.5**        Registration Rights Agreement with Diane C. Burge, regarding
             registration of shares, dated January 23, 2004
4.6**        Registration Rights Agreement with Clayton Chase, regarding
             registration of shares, dated January 23, 2004
4.7**        Registration Rights Agreement with James W. Moldermaker, regarding
             registration of shares, dated January 23, 2004
4.8**        Registration Rights Agreement with J. Kevin Wood, regarding
             registration of shares, dated January 23, 2004
4.9**        Registration Rights Agreement with Thomas Sheridan, regarding
             registration of shares, dated January 23, 2004
4.10**       Registration Rights Agreement with San Diego Torrey Hills Capital,
             regarding registration of shares, dated January 23, 2004
4.11**       Registration Rights Agreement with Norman E. Clarke, regarding
             registration of shares, dated January 23, 2004
4.12**       Registration Rights Agreement with Steven R. Green, regarding
             registration of shares, dated January 23, 2004
10.1**       Robert K. Christie Employment Agreement, dated December 15, 2003
10.2**       Steven D. Rosenthal Employment Agreement, dated December 15, 2003
10.3**       Douglas L. Parker Employment Agreement, dated December 15, 2003
10.4**       James R. Christ Employment Agreement, dated December 31, 2003
10.5**       Stock Pledge Agreement between Robert K. Christie and Environmental
             Technologies, Inc. dated December 29, 2003
10.6**       Stock Purchase Escrow Agreement between Barron Partners, LP, Cyber
             Public Relations, Inc. and Harbour, Smith, Harris &Merritt, P.C.
             dated January 21, 2004
10.7**       Capital Stock Exchange Agreement between the Registrant and the
             Stockholders of Environmental Technologies, Inc., dated January 21,
             2004
10.8**       Stock Purchase Agreement between Environmental Technologies, Inc.
             and Barron Partners, LP dated January 14, 2004
10.9**       Amendment to Stock Purchase Agreement between Environmental
             Technologies, Inc. and Barron Partners, LP dated January 21, 2004
10.10**      Lease Agreement, effective October 1, 1999
10.11**      Lease Agreement, effective September 1, 2001
10.12**      Lease Agreement, effective November 15, 2002
10.13**      Amendment No. 2 to Lease, effective July 31, 2003
10.14**      First Amendment to Lease, effective September 3, 2003
10.15**      Cyber Public Relations, Inc. A Warrant for the Purchase of Common
             Stock
10.16**      Cyber Public Relations, Inc. B Warrant for the Purchase of Common
             Stock
10.17**      Cyber Public Relations, Inc. C Warrant for the Purchase of Common
             Stock
10.18**      Cyber Public Relations, Inc. D Warrant for the Purchase of Common
             Stock
10.19**      Cyber Public Relations, Inc. E Warrant for the Purchase of Common
             Stock
10.20**      Cyber Public Relations, Inc. Warrant for the Purchase of Common
             Stock, Wood Capital Associates

                                       11
<PAGE>

10.21**      Cyber Public Relations, Inc. Warrant for the Purchase of Common
             Stock, Patricia L. Fiorese
10.22**      Cyber Public Relations, Inc. Warrant for the Purchase of Common
             Stock, Vance Luedtke
10.23**      Entech Environmental Technologies, Inc. Warrant for the Purchase of
             Common Stock, Diane C. Burge
10.24**      Entech Environmental Technologies, Inc. Warrant for the Purchase of
             Common Stock, Clayton Chase
10.25**      Entech Environmental Technologies, Inc. Warrant for the Purchase of
             Common Stock, James W. Moldermaker
10.26**      Entech Environmental Technologies, Inc. Warrant for the Purchase of
             Common Stock, J. Kevin Wood
10.27**      Entech Environmental Technologies, Inc. Warrant for the Purchase of
             Common Stock, Thomas Sheridan
10.28**      Entech Environmental Technologies, Inc. Warrant for the Purchase of
             Common Stock, San Diego Torrey Hills Capital
10.29**      Entech Environmental Technologies, Inc. Warrant for the Purchase of
             Common Stock, Norman E. Clarke
10.30**      Entech Environmental Technologies, Inc. Warrant for the Purchase of
             Common Stock, Steven R. Green
10.31**      Settlement Agreement with Norman T. Reynolds, Esq., dated September
             23, 2004
10.32**      Settlement Agreement with Stonegate Securities, dated September 21,
             2004
10.33**      Settlement Agreement with Russell Bedford Stefanou Mirchandani LLP,
             dated September 21, 2004
10.34**      Settlement Agreement with Birch Advisors Ltd. dated September 30,
             2004
10.35**      Settlement Agreement with Gerald Foster dated September 30, 2004
10.36**      Secured Convertible Note between Entech Environmental Technologies,
             Inc. and Barron Partners, L.P. dated September 30, 2004
10.37**      Cyber Public Relations, Inc. Warrant for the Purchase of Common
             Stock, Barron Partners, L.P.
10.38**      Note Purchase Agreement between Environmental Technologies, Inc.
             and Barron Partners, LP dated September 30, 2004
10.39**      Registration Rights Agreement with Barron Partners, LP regarding
             registration of shares, dated September 30, 2004
10.40**      Entech Environmental Technologies, Inc. Warrant for the Purchase of
             Common Stock for Barron Partners, LP
10.41**      Escrow Agreement between Entech Environmental Technologies, Inc.,
             Robert K. Christie and Norman T. Reynolds dated September 29, 2004
10.42**      Warrant Cancellation from Barron Partners, L. P. dated September
             30, 2004
10.43**      Settlement Agreement with San Diego Torrey Hills Capital, Inc.
             dated September 1, 2004
10.44**      Settlement Agreement with Donald G. St. Clair, CPA dated September
             30, 2004
10.45**      Termination of Investment Banking Agreement dated September 1, 2004
10.46*       Note Purchase Agreement between Environmental Technologies, Inc.
             and Barron Partners, LP dated December 30, 2005.
10.47*       Registration Rights Agreement with Barron Partners, LP regarding
             registration of shares, dated December 30, 2005.
10.48*       Secured Convertible Note between Entech Environmental Technologies,
             Inc. and Barron Partners, L.P. dated December 30, 2005.
10.49*       Entech Environmental Technologies, Inc. Warrant for the Purchase of
             Common Stock, Barron Partners, LP.
31.1*        Certification of Chief Executive Officer pursuant to 18 U.S.C.
             Sec.1350, as adopted pursuant toSec.302 of the Sarbanes-Oxley Act
             of 2002.
31.2*        Certification of Principal Financial and Accounting Officer
             pursuant to 18 U.S.C. Sec.1350, as adopted pursuant to Sec.302 of
             the Sarbanes-Oxley Act of 2002.
32.2*        Certification of Chief Executive Officer pursuant to 18 U.S.C.
             Sec.1350, as adopted pursuant to .906 of the Sarbanes-Oxley Act of
             2002.
32.2*        Certification of Principal Financial and Accounting Officer
             pursuant to 18 U.S.C. Sec.1350, as adopted pursuant to .906 of the
             Sarbanes-Oxley Act of 2002.

----------
*   Filed  herewith.
**  Previously  Filed


                                       12
<PAGE>


                                   SIGNATURES

Pursuant to the requirements of 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.

ENTECH ENVIRONMENTAL TECHNOLOGIES, INC.

Signature                             Title                       Date

/s/ Burr D Northrop           Chief Executive Officer       September 14, 2006
-------------------
Burr D. Northrop              Chief Financial Officer




                                       13