x  QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED June 30, 2009 

| Nevada                                                        |   | 20-5451302                           |
|---------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation ororganization) |   | (I.R.S. Employer Identification No.) |

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

----

| PART I: FINANCIAL INFORMATION |   |                                                                                        |
|-------------------------------|--------|---------------------------------------------------------------------------------------------|
| ITEM 1:                       |   | FINANCIAL STATEMENTS (Unaudited)                                                            |   | 3 |
|                          |   | Balance Sheets                                                                              |   | 4 |
|                          |   | Statements of Operations                                                                    |   | 5 |
|                          |   | Statements of Cash Flows                                                                    |   | 6 |
|                          |   | Notes to the Financial Statements                                                           |   | 7-8 |
| ITEM 2:                       |   | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |   | 9 |
| ITEM 3 :                      |   | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK                                  |   | 12 |
| ITEM 4:                       |   | CONTROLS AND PROCEDURES                                                                     |   | 12 |
| PART II: OTHER INFORMATION    |   |                                                                                        |
| Item 1                        |   | LEGAL PROCEEDINGS                                                                           |   | 13 |
| ITEM 1A :                     |   | RISK FACTORS                                                                                |   | 13 |
| ITEM 2                        |   | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS                                 |   | 13 |
| ITEM 3                        |   | DEFAULTS UPON SENIOR SECURITIES                                                             |   | 13 |
| ITEM 4                        |   | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS                                         |   | 13 |
| ITEM 6:                       |   | EXHIBITS                                                                                    |   | 13 |
| SIGNATURES                    |   | 14                                                                                          |

----

|                                                                                                                                                                       |   |                     |       |   |              |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|--------|-------------------|--------|
|                                                                                                                                                                       |   |                     |       |   |              |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |
|                                                                                                                                                                       |   | June 30, 2009(unaudited) |       |   | December 31, 2008 |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |
| ASSETS                                                                                                                                                                     |   |                     |       |   |              |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |
| CURRENT ASSETS                                                                                                                                                             |   |                     |       |   |              |   |
|   Cash                                                                                                                                                           |   | $                        | 13,993     |   |              | $      | 45,292 |   |
|   Other receviable                                                                                                                                               |   |                     | -          |   |              |   | 2,400 |   |
|   Prepaid expenses                                                                                                                                               |   |                     | 74,572     |   |              |   | 2,720 |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
|                         Total Current Assets       |   |                     | 88,565     |   |              |   | 50,412 |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
| PROPERTY & EQUIPMENT, at cost                                                                                                                                          |   |                     |       |   |              |   |   |   |
|    Machinery & equipment                                                                                                                                |   |                     | 71,498     |   |              |   | 71,498 |   |
|    Computer equipment                                                                                                                                       |   |                     | 17,559     |   |              |   | 17,559 |   |
|    Mobile vehicle                                                                                                                                           |   |                     | 40,252     |   |              |   | 40,252 |   |
|                                                                                                                                                                       |   |                     | 129,309    |   |              |   | 129,309 |   |
|    Less accumulated depreciation                                                                                                                            |   |                     | (39,659    | )      |              |   | (28,302 | ) |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
|                         Net Property and Equipment |   |                     | 89,650     |   |              |   | 101,007 |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
| OTHER ASSETS                                                                                                                                                               |   |                     |       |   |              |   |   |   |
|    Patents                                                                                                                                                  |   |                     | 14,417     |   |              |   | 8,773 |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
|                        TOTAL ASSETS                     |   | $                        | 192,632    |   |              | $      | 160,192 |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
| LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)                                                                                                                             |   |                     |       |   |              |   |   |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
| CURRENT LIABILITIES                                                                                                                                                        |   |                     |       |   |              |   |   |   |
|     Accounts payable                                                                                                                                   |   | $                        | 67,246     |   |              | $      | 34,806 |   |
|     Accrued expenses                                                                                                                                   |   |                     | 23,849     |   |              |   | 43,552 |   |
|     Note payable, investor                                                                                                                             |   |                     | 140,000    |   |              |   | 50,000 |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
|                        TOTAL CURRENT LIABILITIES        |   |                     | 231,095    |   |              |   | 128,358 |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
| SHAREHOLDERS' EQUITY/(DEFICIT)                                                                                                                                             |   |                     |       |   |              |   |   |   |
|    Common Stock, $0.001 par value;                                                                                                                          |   |                     |       |   |              |   |   |   |
|    500,000,000 authorized common shares                                                                                                                     |   |                     |       |   |              |   |   |   |
|    154,021,000 and 148,342,000 shares issued and outstanding, respectively                                                                                  |   |                     | 154,021    |   |              |   | 148,342 |   |
|    Additional paid in capital                                                                                                                               |   |                     | 2,675,504  |   |              |   | 2,155,533 |   |
|    Stock subscription payable                                                                                                                               |   |                     | 81,875     |   |              |   | 62,000 |   |
|    Accumulated deficit during the development stage                                                                                                         |   |                     | (2,949,863 | )      |              |   | (2,334,041 | ) |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
|                       TOTAL SHAREHOLDERS' EQUITY/(DEFICIT)   |   |                     | (38,463    | )      |              |   | 31,834 |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |
|     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY/(DEFICIT)                                                                                               |   | $                        | 192,632    |   |              | $      | 160,192 |   |
|                                                                                                                                                                       |   |                     |       |   |              |   |   |   |

----

|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |
|----------------------------------------------------------------|--------|--------------------|-------------|--------|------------------|--------|-------------|----------------|--------|--------|-------------|--------|--------|-------------------|-------------|
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   | From Inception on |        |
|                                                           |   | Three Months Ended |        |   | Six Months Ended |   |        | August 25,2006 |   |
|                                                           |   | June 30,           |        |   | June 30,         |   |        | through        |   |
|                                                           |   | 2009               |        |   | 2008             |   |        | 2009           |   |   | 2008        |   |   | June 30, 2009     |        |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |
| REVENUE                                                        |   | $                  | -           |   |             | $      | -           |           |   | $      | -           |   |   | $                 | -           |   |   | $ | - |   |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |   |   |   |   |   |
| OPERATING EXPENSES                                             |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |   |   |   |   |   |
|   Selling and marketing expenses                     |   |               | 199,716     |   |             |   | 158,446     |           |   |   | 376,001     |   |   |              | 308,082     |   |   |   | 1,905,083 |   |
|   General and administrative expenses                |   |               | 65,657      |   |             |   | 46,167      |           |   |   | 126,587     |   |   |              | 78,008      |   |   |   | 567,545 |   |
|   Research and development                           |   |               | 45,671      |   |             |   | 48,192      |           |   |   | 97,533      |   |   |              | 90,451      |   |   |   | 471,142 |   |
|   Depreciation expense                               |   |               | 5,679       |   |             |   | 4,212       |           |   |   | 11,357      |   |   |              | 8,424       |   |   |   | 39,659 |   |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |   |   |   |   |   |
| TOTAL OPERATING EXPENSES                                       |   |               | 316,723     |   |             |   | 257,017     |           |   |   | 611,478     |   |   |              | 484,965     |   |   |   | 2,983,429 |   |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |   |   |   |   |   |
| LOSS FROM OPERATIONS BEFORE  OTHER INCOME/(EXPENSES) |   |               | (316,723    | )      |             |   | (257,017    | )              |   |   | (611,478    | )      |   |              | (484,965    | ) |   |   | (2,983,429 | ) |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |   |   |   |   |   |
| OTHER INCOME/(EXPENSE)                                         |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |   |   |   |   |   |
|     Interest income                        |   |               | -           |   |             |   | 5,767       |           |   |   | -           |   |   |              | 14,327      |   |   |   | 39,521 |   |
|     Interest expense                       |   |               | (2,272      | )      |             |   | -           |           |   |   | (4,344      | )      |   |              | -           |   |   |   | (5,955 | ) |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |   |   |   |   |   |
|                                                           |   |               | (2,272      | )      |             |   | 5,767       |           |   |   | (4,344      | )      |   |              | 14,327      |   |   |   | 33,566 |   |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |   |   |   |   |   |
| NET LOSS                                                       |   |               | (318,995    | )      |             |   | (251,250    | )              |   |   | (615,822    | )      |   |              | (470,638    | ) |   |   | (2,949,863 | ) |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |   |   |   |   |   |
| BASIC AND DILUTED LOSS PER SHARE                               |   | $                  | (0.00       | )      |             | $      | (0.00       | )              |   | $      | (0.00       | )      |   | $                 | (0.00       | ) |   |   |   |   |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |   |   |   |   |   |
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING                     |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |   |   |   |   |   |
|       BASIC AND DILUTED          |   |               | 152,001,800 |   |             |   | 148,342,000 |           |   |   | 150,161,790 |   |   |              | 148,342,000 |   |   |   |   |   |
|                                                           |   |               |        |   |             |   |        |           |   |   |        |   |   |              |        |   |   |   |   |   |

----

|                                                        |   | Common stock |        |   | AdditionalPaid-in |   |    | StockSubscriptions |   |   | DeficitAccumulatedduring theDevelopment |   |   |   |     |
|-------------------------------------------------------------|--------|--------------|-------------|--------|-------------------|--------|---------|--------------------|--------|--------|-----------------------------------------|--------|--------|--------|----------|
|                                                        |   | Shares       |        |   | Amount            |   |    | Capital            |   |   | Payable                                 |   |   | Stage  |     |   | Total |   |
|                                                        |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |
| Balance at December 31, 2008                                |   |         | 148,342,000 |   |              | $      | 148,342 |               |   | $      | 2,155,533                               |   |   | $      | 62,000   |   |   | $ | (2,334,041 | )  |   | $ | 31,834 |   |
|                                                        |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Stock subscriptions payable (unaudited)                     |   |         | -           |   |              |   | -       |               |   |   | -                                       |   |   |   | 213,650  |   |   |   | - |   |   |   | 213,650 |   |
|                                                        |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Issuance of common stock for services in April 2009         |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |
| (172,500 shares issued at $0.10) (unaudited)                |   |         | 172,500     |   |              |   | 172     |               |   |   | 17,078                                  |   |   |   | -        |   |   |   | - |   |   |   | 17,250 |   |
|                                                        |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Issuance of common stock for services in April 2009         |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |
| (250,000 shares issued at $0.10) (unaudited)                |   |         | 250,000     |   |              |   | 250     |               |   |   | 24,750                                  |   |   |   | -        |   |   |   | - |   |   |   | 25,000 |   |
|                                                        |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Issuance of common stock for cash in May 2009               |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |
| (2.756,500 shares issued at $0.10 for cash) (unaudited)     |   |         | 2,756,500   |   |              |   | 2,757   |               |   |   | 272,893                                 |   |   |   | (275,650 | ) |   |   | - |   |   |   | - |   |
|                                                        |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Issuance of common stock for cash in May 2009               |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |
| (1,500,000 shares issued at $0.10 for cash) (unaudited)     |   |         | 1,500,000   |   |              |   | 1,500   |               |   |   | 148,500                                 |   |   |   | -        |   |   |   | - |   |   |   | 150,000 |   |
|                                                        |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Issuance of common stock for services in May 2009           |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |
| (1,000,000 shares issued at $0.10) (unaudited)              |   |         | 1,000,000   |   |              |   | 1,000   |               |   |   | 99,000                                  |   |   |   | -        |   |   |   | - |   |   |   | 100,000 |   |
|                                                        |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Stock issuance cost (unaudited)                             |   |         | -           |   |              |   | -       |               |   |   | (42,250                                 | )      |   |   | -        |   |   |   | - |   |   |   | (42,250 | ) |
|                                                        |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Stock subscriptions payable (unaudited)                     |   |         | -           |   |              |   | -       |               |   |   | -                                       |   |   |   | 81,875   |   |   |   | - |   |   |   | 81,875 |   |
|                                                        |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Net Loss for the six months ended June 30, 2009 (unaudited) |   |         | -           |   |              |   | -       |               |   |   | -                                       |   |   |   | -        |   |   |   | (615,822 | ) |   |   | (615,822 | ) |
|                                                        |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2009 (unaudited)                        |   |         | 154,021,000 |   |              | $      | 154,021 |               |   | $      | 2,675,504                               |   |   | $      | 81,875   |   |   | $ | (2,949,863 | ) |   | $ | (38,463 | ) |
|                                                        |   |         |        |   |              |   |    |               |   |   |                                    |   |   |   |     |   |   |   |   |   |   |   |   |   |

----

|                                                                                           |   |             |     |   |          |   |     |              |   |
|------------------------------------------------------------------------------------------------|--------|------------------|----------|--------|---------------|--------|----------|-------------------|--------|
|                                                                                           |   |             |     |   |          |   |     |              |   |
|                                                                                           |   |             |     |   |          |   |     |              |   |
|                                                                                           |   |             |     |   |          |   |     |              |   |
|                                                                                           |   |             |     |   |          |   |     | From Inception on |   |
|                                                                                           |   |             |     |   |          |   |     | August 25,2006    |   |
|                                                                                           |   | Six Months Ended |     |   | through       |   |
|                                                                                           |   | June 30, 2009    |     |   | June 30, 2008 |   |     | June 30, 2009     |   |
| CASH FLOWS FROM OPERATING ACTIVITIES:                                                          |   |             |     |   |          |   |     |              |   |
| Net loss                                                                                       |   | $                | (615,822 | )      |          | $      | (470,638 | )                 |   | $ | (2,949,863 | ) |
| Adjustment to reconcile net loss to net cash                                                   |   |             |     |   |          |   |     |              |   |   |   |   |
|   used in operating activities                                                       |   |             |     |   |          |   |     |              |   |   |   |   |
|  Depreciation expense                                                                     |   |             | 11,357   |   |          |   | 8,424    |              |   |   | 39,659 |   |
|  Stock issuance for services                                                              |   |             | 142,250  |   |          |   | -        |              |   |   | 217,250 |   |
|          (Increase) Decrease in:                  |   |             |     |   |          |   |     |              |   |   |   |   |
|              Other receivable |   |             | 2,400    |   |          |   | (12,000  | )                 |   |   | - |   |
|              Prepaid expenses |   |             | (71,852  | )      |          |   | 82,824   |              |   |   | (74,572 | ) |
|         Increase (Decrease) in:                        |   |             |     |   |          |   |     |              |   |   |   |   |
|              Accounts payable |   |             | 32,440   |   |          |   | (2,676   | )                 |   |   | 67,246 |   |
|              Accrued expenses |   |             | (19,703  | )      |          |   | (3,623   | )                 |   |   | 23,849 |   |
|                                                                                           |   |             |     |   |          |   |     |              |   |   |   |   |
| NET CASH USED IN OPERATING ACTIVITIES                                                          |   |             | (518,930 | )      |          |   | (397,689 | )                 |   |   | (2,676,431 | ) |
|                                                                                           |   |             |     |   |          |   |     |              |   |   |   |   |
| CASH FLOWS PROVIDED/(USED) IN INVESTING ACTIVITIES:                                            |   |             |     |   |          |   |     |              |   |   |   |   |
|    Investment in certificates of deposit                                        |   |             | -        |   |          |   | 485,674  |              |   |   | - |   |
|    Patent expenditures                                                          |   |             | (5,644   | )      |          |   | (3,000   | )                 |   |   | (14,417 | ) |
| Purchase of equipment                                                                          |   |             | -        |   |          |   | -        |              |   |   | (129,309 | ) |
|                                                                                           |   |             |     |   |          |   |     |              |   |   |   |   |
| NET CASH PROVIDED/(USED) IN INVESTING ACTIVITIES                                               |   |             | (5,644   | )      |          |   | 482,674  |              |   |   | (143,726 | ) |
|                                                                                           |   |             |     |   |          |   |     |              |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES:                                                          |   |             |     |   |          |   |     |              |   |   |   |   |
|     Advances from/(to) officer                                             |   |             | 40,000   |   |          |   | -        |              |   |   | 113,000 |   |
|     Loan from investor                                                     |   |             | 90,000   |   |          |   | -        |              |   |   | 300,000 |   |
|     Repayment of advances and loans                                        |   |             | (40,000  | )      |          |   | -        |              |   |   | (273,000 | ) |
|     Proceeds from subscriptions payable                                    |   |             | 81,875   |   |          |   | -        |              |   |   | 81,875 |   |
|  Proceeds from issuance of common stock,net                                               |   |             | 321,400  |   |          |   | -        |              |   |   | 2,612,275 |   |
|                                                                                           |   |             |     |   |          |   |     |              |   |   |   |   |
| NET CASH PROVIDED BY FINANCING  ACTIVITIES                                           |   |             | 493,275  |   |          |   | -        |              |   |   | 2,834,150 |   |
|                                                                                           |   |             |     |   |          |   |     |              |   |   |   |   |
| NET INCREASE/(DECREASE) IN CASH                                                                |   |             | (31,299  | )      |          |   | 84,985   |              |   |   | 13,993 |   |
|                                                                                           |   |             |     |   |          |   |     |              |   |   |   |   |
| CASH, BEGINNING OF PERIOD                                                                      |   |             | 45,292   |   |          |   | 9,539    |              |   |   | - |   |
|                                                                                           |   |             |     |   |          |   |     |              |   |   |   |   |
| CASH, END OF PERIOD                                                                            |   | $                | 13,993   |   |          | $      | 94,524   |              |   | $ | 13,993 |   |
|                                                                                           |   |             |     |   |          |   |     |              |   |   |   |   |
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION                                              |   |             |     |   |          |   |     |              |   |   |   |   |
|    Interest paid                                                                |   | $                | 4,344    |   |          | $      | -        |              |   | $ | 5,955 |   |
|    Taxes paid                                                                   |   | $                | 800      |   |          | $      | -        |              |   | $ | 800 |   |

----

----

| 3. | CAPITAL STOCK |
|----|---------------|

|   | The Company files income tax returns in the U.S. Federal jurisdiction, and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2005. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, on January 1, 2007.  Deferred income taxes have been provided by temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for tax purposes. To the extent allowed by GAAP, we provide valuation allowances against the deferredtax assets for amounts when the realization is uncertain. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Included in the balance at June 30, 2009 are no tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.  Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the paymentof cash to the taxing authority to an earlier period. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | The Company's policy is to recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| 5. | SUBSEQUENT EVENTS |
|----|-------------------|

|   | In accordance with the recently issued Statement of Financial Accounting Standards No. 165 “Subsequent Events” (SFAS 165), the company evaluated subsequent events after the balance sheet date of June 30, 2009 through August 14, 2009. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | As of August 14, 2009, the Company received $67,250 for stock subscriptions payable to purchase shares of common stock at a price of $0.10 per share through a private placement. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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OPERATIONS

| · | discuss our future expectations; |
|--------|----------------------------------|

| · | contain projections of our future results of operations or of our financial condition; and |
|--------|--------------------------------------------------------------------------------------------|

| · | state other "forward-looking" information. |
|--------|--------------------------------------------|

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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 stepin 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 non-financial asset be accounted for as a change in estimate (prospectively) that was effectedby 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. The Company has evaluated the impact of the adoption of Statement 154 and does notbelieve the impact will be significant to the Company's overall results of operations or financial position. 

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As of June 30, 2009, we had a (142,530) working deficit as compared to working capital of $477,568 as of June 30, 2008. This decrease of $620,098 was due primarily to use of funds for operating expenses. 

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None 

| Exhibit No. |   | Description                                                                                                                                                                                                                                         |
|-------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        |   |                                                                                                                                                                                                                                                |
| 3.1         |   | Articles of Incorporation of Carbon Sciences, Inc. filed with the Nevada Secretary of State on August 25, 2007. (Incorporated by reference to the Company’s Registration Statement on Form SB-2 filed on July 27, 2007)                       |
|        |   |                                                                                                                                                                                                                                                |
| 3.2    |   | Articles of Amendment of Articles of Incorporation of Carbon Sciences, Inc. filed with the Nevada Secretary of State on April 9, 2007 (Incorporated by reference to the Company’s Registration Statement on Form SB-2 filed on July 27, 2007) |
|        |   |                                                                                                                                                                                                                                                |
| 3.3    |   | Bylaws of Carbon Sciences, Inc. (Incorporated by reference to the Company’s Registration Statement on Form SB-2 filed on July 27, 2007)                                                                                                       |
|        |   |                                                                                                                                                                                                                                                |
| 10.1        |   | Form of Subscription Agreement dated as of September 18, 2006 (Incorporated by reference to the Company’s Registration Statement on Form SB-2 filed on July 27, 2007)                                                                         |
|        |   |                                                                                                                                                                                                                                                |
| 10.2        |   | Form of Subscription Agreement dated as of October 2, 2006(Incorporated by reference to the Company’s Registration Statement 10.2on Form SB-2 filed on July 27, 2007)                                                                         |
|        |   |                                                                                                                                                                                                                                                |
| 10.3        |   | Form of Subscription Agreement dated as of March 1, 2007(Incorporated by reference to the Company’s Registration Statement 10.3on Form SB-2 filed on July 27, 2007)                                                                           |
|        |   |                                                                                                                                                                                                                                                |
| 10.4        |   | Form of Subscription Agreement dated as of April 16, 2007(Incorporated by reference to the Company’s Registration Statement 10.4on Form SB-2 filed on July 27, 2007)                                                                          |
|        |   |                                                                                                                                                                                                                                                |
| 14.1        |   | Code of Ethics (Incorporated by reference to the Company’s Annual Report on Form 10-K for the year ended December 31, 2007 14.1filed on March 26, 2008)                                                                                       |
|        |   |                                                                                                                                                                                                                                                |
| 31.1*       |   | Certification by Chief Executive Officer and Acting Chief Financial Officer pursuant to Sarbanes-Oxley Section 302                                                                                                                                  |
|        |   |                                                                                                                                                                                                                                                |
| 32.1*       |   | Certification by Chief Executive Officer and Acting Chief Financial Officer pursuant to 18 U.S.C. Section 1350                                                                                                                                      |

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|   |   | CARBON SCIENCES, INC.                                                                                                                                 |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                  |
|   | By:    | /s/ Byron Elton                                                                                                                                       |   |
|   |   | Chief Executive Officer (Principal ExecutiveOfficer ) and Acting Chief Financial Officer(Principal Financial Officer and PrincipalAccounting Officer) |