UNITED
STATES

SECURITIES
AND EXCHANGE COMMISSION

WASHINGTON,
D.C. 20549



FORM
10-Q



|[X]       | Quarterly
    Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|--------- | -------------------------------------------------------------------------------------------
|          |                                                                                            
|          | For
    the quarterly period ended April 30, 2011                                          
|          |                                                                                            
|[
      ] | Transition
    Report pursuant to 13 or 15(d) of the Securities Exchange Act of 1934       
|          |                                                                                            
|          | For
    the transition period from __________ to__________                                 
|          |                                                                                            
|          | Commission
    File Number: 333-145794                                                     



Harmonic
Energy, Inc.

(Exact
name of registrant as specified in its charter)



|Nevada                                                             | 26-0164981                           
|------------------------------------------------------------------ | -------------------------------------
|(State
    or other jurisdiction of incorporation or organization) | (IRS
    Employer Identification No.)



|#406
    - 917 85th Street SW, Suite 167, Calgary, Alberta, Canada
|------------------------------------------------------------------
|(Address
    of principal executive offices)                      



|(403)
    698-9477                                                                    
|--------------------------------------------------------------------------------------
|(Registrant’s
    telephone number)                                                   
|__________________________________________________________                            
|(Former
    name, former address and former fiscal year, if changed since last report)



Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days [X] Yes [ ] No



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



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



|[
    ] Large accelerated filer Accelerated filer | [
    ] Non-accelerated filer
|------------------------------------------------- | -----------------------------
|[X]
    Smaller reporting company                 |                              



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



State
the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 54,724,119
as of September 20, 2011.




Table of Contents




|                                       | TABLE OF CONTENTS                                                                         |     
|-------------------------------------- | ----------------------------------------------------------------------------------------- | ----
|                                       |                                                                                           | Page
|PART
        I – FINANCIAL INFORMATION
|                                       |                                                                                           |     
|Item 1:                                | Financial
    Statements                                                                  | 3   
|Item 2:                                | Management’s
    Discussion and Analysis of Financial Condition and Results of Operations | 4   
|Item 3:                                | Quantitative
    and Qualitative Disclosures About Market Risk                            | 6   
|Item 4:                                | Controls
    and Procedures                                                               | 6   
|PART
        II – OTHER INFORMATION   
|Item 1:                                | Legal
    Proceedings                                                                     | 7   
|Item 1A:                               | Risk
    Factors                                                                          | 7   
|Item 2:                                | Unregistered
    Sales of Equity Securities and Use of Proceeds                           | 7   
|Item 3:                                | Defaults
    Upon Senior Securities                                                       | 7   
|Item 4:                                | (Removed
    and Reserved)                                                                | 7   
|Item 5:                                | Other
    Information                                                                     | 7   
|Item 6:                                | Exhibits                                                                                  | 7   

2


Table of Contents


PART
I - FINANCIAL INFORMATION



Item
1. Financial Statements



|Our
    financial statements included in this Form 10-Q are as follows:
|-----------------------------------------------------------------------
|                                                                       
|F-1                                                                    
|F-2                                                                    
|F-3                                                                    
|F-4                                                                    
|F-5                                                                    



These
financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America
for interim financial information and the SEC instructions to Form 10-Q. In the opinion of management, all adjustments considered
necessary for a fair presentation have been included. Operating results for the interim period ended April 30, 2011 are not necessarily
indicative of the results that can be expected for the full year.

3


Table of Contents




HARMONIC
ENERGY, INC.

(formerly
Aviation Surveillance Systems, Inc.)

(A
DEVELOPMENT STAGE COMPANY)

BALANCE
SHEETS (unaudited)

As
at April 30, 2011 and July 31, 2010



|ASSETS                                                                                                          | April
    30, 2011 |          | July
    31, 2010
|--------------------------------------------------------------------------------------------------------------- | ------------------ | -------- | -----------------
|Current Assets                                                                                                  |                    |          |                  
|Cash                                                                                                            | $                  | 0        |                  
|Total Current Assets                                                                                            |                    | 0        |                  
|                                                                                                                |                    |          |                  
|TOTAL ASSETS                                                                                                    | $                  | 0        |                  
|                                                                                                                |                    |          |                  
|LIABILITIES AND STOCKHOLDERS’
    DEFICIT                                                                       |                    |          |                  
|Liabilities                                                                                                     |                    |          |                  
|Current Liabilities                                                                                             |                    |          |                  
|Accrued expenses                                                                                                | $                  | 30,342   |                  
|Accrued interest-related
    party                                                                              |                    | 1,046    |                  
|Note
    payable-related party                                                                                  |                    | 20,000   |                  
|                                                                                                                |                    |          |                  
|Total Liabilities                                                                                               |                    | 51,388   |                  
|                                                                                                                |                    |          |                  
|STOCKHOLDERS’ DEFICIT                                                                                           |                    |          |                  
|Common stock, $.001 par value,
    100,000,000 shares authorized, 54,724,119  shares
    issued and outstanding |                    | 54,724   |                  
|Additional paid in capital                                                                                      |                    | 27,711   |                  
|Deficit
    accumulated during the development stage                                                            |                    | (133,823 | )                
|Total
    Stockholders’ Deficit                                                                                 |                    | (51,388  | )                
|                                                                                                                |                    |          |                  
|TOTAL LIABILITIES
    AND STOCKHOLDERS’ DEFICIT                                                                 | $                  | 0        |                  



See
accompanying notes to financial statements.

F-1


Table of Contents


HARMONIC
ENERGY, INC.

(formerly
Aviation Surveillance Systems, Inc.)

(A
DEVELOPMENT STAGE COMPANY)

STATEMENTS
OF OPERATIONS (unaudited)

Three
months and nine months ended April 30, 2011 and April 30, 2010

For
the period from May 1, 2007 (Date of Inception) through April 30, 2011





|                                              | Three months ended April
    30, 2011 |            | Three months ended April
    30, 2010 |  | Nine months ended April
    30, 2011 |            | Nine months ended April
    30, 2010 |  | Period from May 1, 2007
    (Inception) to April 30, 2011
|--------------------------------------------- | ------------------------------------- | ---------- | ------------------------------------- |  | ------------------------------------ | ---------- | ------------------------------------ |  | ---------------------------------------------------------
|                                              |                                       |            |                                       |  |                                      |            |                                      |  |                                                          
|Revenues                                      | $                                     | 0          |                                       |  | $                                    | 0          |                                      |  | $                                                        
|                                              |                                       |            |                                       |  |                                      |            |                                      |  |                                                          
|General and administrative expenses:          |                                       |            |                                       |  |                                      |            |                                      |  |                                                          
|Professional fees                             |                                       | 1,000      |                                       |  |                                      | 1,637      |                                      |  |                                                          
|Office
    and miscellaneous                  |                                       | 93         |                                       |  |                                      | 0          |                                      |  |                                                          
|Total general
    and administrative expenses |                                       | 1,093      |                                       |  |                                      | 1,637      |                                      |  |                                                          
|                                              |                                       |            |                                       |  |                                      |            |                                      |  |                                                          
|Loss from operations                          |                                       | (1,093     | )                                     |  |                                      | (1,637     | )                                    |  |                                                          
|                                              |                                       |            |                                       |  |                                      |            |                                      |  |                                                          
|Other expenses                                |                                       |            |                                       |  |                                      |            |                                      |  |                                                          
|Gain on settlement of accrued expense         |                                       | 0          |                                       |  |                                      | 75,052     |                                      |  |                                                          
|Interest expense                              |                                       | (300       | )                                     |  |                                      | 0          |                                      |  |                                                          
|Total other 
    income (expense)             |                                       | (300       | )                                     |  |                                      | 75,052     |                                      |  |                                                          
|                                              |                                       |            |                                       |  |                                      |            |                                      |  |                                                          
|Net income (
    loss) for the period         |                                       | (1,393     | )                                     |  |                                      | 73,415     |                                      |  |                                                          
|Net loss per share:                           |                                       |            |                                       |  |                                      |            |                                      |  |                                                          
|Basic
    and diluted                         | $                                     | (0.00      | )                                     |  | $                                    | 0.00       |                                      |  | $                                                        
|                                              |                                       |            |                                       |  |                                      |            |                                      |  |                                                          
|Weighted average shares outstanding:          |                                       |            |                                       |  |                                      |            |                                      |  |                                                          
|Basic
    and diluted                         |                                       | 54,724,119 |                                       |  |                                      | 22,934,104 |                                      |  |                                                          





See
accompanying notes to financial statements.

F-2


Table of Contents


HARMONIC
ENERGY, INC.

(formerly
Aviation Surveillance Systems, Inc.)

(A
DEVELOPMENT STAGE COMPANY)

STATEMENT
OF STOCKHOLDERS’ DEFICIT (unaudited)

Period
from May 1, 2007 (Date of Inception) through April 30, 2011





|                                                                               |  |  |                                                                                                                          |  |  |   |         |  |  |   |             |   |  |   | Deficit                                                                                                                |   |  |   |         |  
|------------------------------------------------------------------------------ |  |  | ------------------------------------------------------------------------------------------------------------------------ |  |  | - | ------- |  |  | - | ----------- | - |  | - | ---------------------------------------------------------------------------------------------------------------------- | - |  | - | ------- | -
|                                                                               |  |  |                                                                                                                          |  |  |   |         |  |  |   |             |   |  |   | accumulated                                                                                                            |   |  |   |         |  
|                                                                               |  |  |                                                                                                                          |  |  |   |         |  |  |   | Additional  |   |  |   | during
                                                                                                            the |   |  |   |         |  
|                                                                               |  |  | Common
                                                                                                            stock |  |  |   | paid-in |  |  |   | development |   |  |   |                                                                                                                        |  
|                                                                               |  |  | Shares                                                                                                                   |  |  |   | Amount  |  |  |   | capital     |   |  |   | stage                                                                                                                  |   |  |   | Total   |  
|                                                                               |  |  |                                                                                                                          |  |  |   |         |  |  |   |             |   |  |   |                                                                                                                        |   |  |   |         |  
|Balance May 1, 2007                                                            |  |  |                                                                                                                          |  |  | $ |         |  |  | $ |             |   |  | $ |                                                                                                                        |   |  | $ |         |  
|                                                                               |  |  |                                                                                                                          |  |  |   |         |  |  |   |             |   |  |   |                                                                                                                        |   |  |   |         |  
|Contributed capital                                                            |  |  |                                                                                                                          |  |  |   |         |  |  |   | 300         |   |  |   |                                                                                                                        |   |  |   | 300     |  
|                                                                               |  |  |                                                                                                                          |  |  |   |         |  |  |   |             |   |  |   |                                                                                                                        |   |  |   |         |  
|Issuance of common stock for cash at
    $.001 per share                       |  |  | 11,798,803                                                                                                               |  |  |   | 11,799  |  |  |   | (7,799      | ) |  |   |                                                                                                                        |   |  |   | 4,000   |  
|Issuance of common stock for cash at
    $.004 per share                       |  |  | 4,690,022                                                                                                                |  |  |   | 4,690   |  |  |   | 7,235       |   |  |   |                                                                                                                        |   |  |   | 11,925  |  
|Net loss for the
    period                                                    |  |  | —                                                                                                                        |  |  |   | —       |  |  |   | —           |   |  |   | (153                                                                                                                   | ) |  |   | (153    | )
|Balance, July 31, 2007                                                         |  |  | 16,488,825                                                                                                               |  |  |   | 16,489  |  |  |   | (264        | ) |  |   | (153                                                                                                                   | ) |  |   | 16,072  |  
|Net loss for the
    period                                                    |  |  | —                                                                                                                        |  |  |   | —       |  |  |   | —           |   |  |   | (15,709                                                                                                                | ) |  |   | (15,709 | )
|Balance, July 31, 2008                                                         |  |  | 16,488,825                                                                                                               |  |  |   | 16,489  |  |  |   | (264        | ) |  |   | (15,862                                                                                                                | ) |  |   | 363     |  
|Net loss for the
    period                                                    |  |  | —                                                                                                                        |  |  |   | —       |  |  |   | —           |   |  |   | (68,873                                                                                                                | ) |  |   | (68,873 | )
|Balance, July 31, 2009                                                         |  |  | 16,488,825                                                                                                               |  |  |   | 16,489  |  |  |   | (264        | ) |  |   | (84,735                                                                                                                | ) |  |   | (68,510 | )
|Conversion of shareholder loan and
    accrued interest to contributed capital |  |  |                                                                                                                          |  |  |   |         |  |  |   | 1,210       |   |  |   |                                                                                                                        |   |  |   | 1,210  
|Common shares issued                                                           |  |  | 38,235,294                                                                                                               |  |  |   | 38,235  |  |  |   | 26,765      |   |  |   |                                                                                                                        |   |  |   | 65,000  |  
|Net loss for the
    period                                                    |  |  | —                                                                                                                        |  |  |   | —       |  |  |   | —           |   |  |   | (37,864                                                                                                                | ) |  |   | (37,864 | )
|Balance, July 31, 2010                                                         |  |  | 54,724,119                                                                                                               |  |  |   | 54,724  |  |  |   | 27,711      |   |  |   | (122,599                                                                                                               | ) |  |   | (40,164 | )
|Net loss for the
    period                                                    |  |  | —                                                                                                                        |  |  |   | —       |  |  |   | —           |   |  |   | (11,224                                                                                                                | ) |  |   | (11,224 | )
|Balance, April
    30,2011                                                     |  |  | 54,724,119                                                                                                               |  |  | $ | 54,724  |  |  | $ | 27,711      |   |  | $ | (133,823                                                                                                               | ) |  | $ | (51,388 | )













See
accompanying notes to financial statements.

F-3


Table of Contents




HARMONIC ENERGY, INC.

(formerly Aviation Surveillance Systems,
Inc.)

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF CASH FLOWS (unaudited)

Nine months ended April 30, 2011 and April
30, 2010

For the period from May 1, 2007 (Date of
Inception) through April 30, 2011



|                                                                                          |  | Nine
    Months Ended April 30, 2011 |         | Nine
    Months Ended April 30, 2010 |  | Period from May 1, 2007 (Inception) to
April 30, 2011
|----------------------------------------------------------------------------------------- |  | ------------------------------------ | ------- | ------------------------------------ |  | -----------------------------------------------------
|CASH FLOWS FROM OPERATING ACTIVITIES                                                      |  |                                      |         |                                      |  |                                                      
|Net income (loss)
    and comprehensive loss                                              |  | $                                    | (11,224 | )                                    |  | $                                                    
|Change in non-cash working capital
    items Conversion of related party accrued interest |  |                                      | 0       |                                      |  |                                                      
|Gain on settlement of debt                                                                |  |                                      |         |                                      |  |                                                      
|Changes in operating assets and
    liabilities:                                          |  |                                      |         |                                      |  |                                                      
|Increase in
    accounts payable and accrued expenses                                     |  |                                      | (651    | )                                    |  |                                                      
|Increase in
    accrued interest-related party                                            |  |                                      | 892     |                                      |  |                                                      
|                                                                                          |  |                                      |         |                                      |  |                                                      
|CASH FLOWS USED IN OPERATING ACTIVITIES                                                   |  |                                      | (10,983 | )                                    |  |                                                      
|                                                                                          |  |                                      |         |                                      |  |                                                      
|CASH FLOWS FROM FINANCING ACTIVITIES                                                      |  |                                      |         |                                      |  |                                                      
|Proceeds from sale of common
    stock                                                    |  |                                      | 0       |                                      |  |                                                      
|Proceeds
    from note payable-related party                                              |  |                                      | 0       |                                      |  |                                                      
|CASH FLOWS FROM
    FINANCING ACTIVITIES                                                  |  |                                      | 0       |                                      |  |                                                      
|                                                                                          |  |                                      |         |                                      |  |                                                      
|NET INCREASE (DECREASE) IN CASH                                                           |  |                                      | (10,983 | )                                    |  |                                                      
|Cash, beginning
    of period                                                             |  |                                      | 10,983  |                                      |  |                                                      
|Cash,
    end of period                                                                   |  | $                                    | 0       |                                      |  | $                                                    
|                                                                                          |  |                                      |         |                                      |  |                                                      
|SUPPLEMENTAL CASH FLOW INFORMATION                                                        |  |                                      |         |                                      |  |                                                      
|Interest
    paid                                                                         |  | $                                    | —       |                                      |  | $                                                    
|Income
    taxes paid                                                                     |  | $                                    | —       |                                      |  | $                                                    
|                                                                                          |  |                                      |         |                                      |  |                                                      
|NON-CASH
    FINANCING ACTIVITIES                                                         |  |                                      |         |                                     
|Contributed
    capital                                                                   |  | $                                    | -       |                                      |  |                                                      





See
accompanying notes to financial statements.

F-4


Table of Contents


HARMONIC
ENERGY, INC.

(formerly
Aviation Surveillance Systems, Inc.)

(A
DEVELOPMENT STAGE COMPANY)

NOTES
TO THE FINANCIAL STATEMENTS

April
30, 2011



NOTE
1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Nature
of Business

Harmonic
Energy, Inc. (the Company), formerly known as Aviation Surveillance Systems, Inc. and Fairytale Ventures, Inc., was incorporated
in the State of Nevada on May 1, 2007.  The Company is currently seeking to acquire oil and gas prospects and/or producing
oil and gas properties in the United States and internationally.  The Company has not realized significant revenues to date
and therefore is classified as a development stage company.



Development
Stage Company

The
accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage
companies.  A development-stage company is one in which planned principal operations have not commenced or if its operations
have commenced, there has been no significant revenues there from.



Basis
of Presentation



The
accompanying unaudited interim financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read
in conjunction with the audited financial statements and notes thereto contained in the Company’s Form 10-K filed with the
SEC as of and for the period ended July 31, 2010. the opinion of management, all adjustments necessary for the financial
statements to be not misleading for the interim periods presented have been reflected herein.  The results of operations
for interim periods are not necessarily indicative of the results to be expected for the full year. The Company has adopted a
July 31 fiscal year end.



Fair
Value of Financial Instruments

The
Company’s financial instruments consist of cash and cash equivalents, accrued expenses and accrued interest – related
party. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest
rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.





Use of
Estimates

The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ
from those estimates.

F-5


Table of Contents


HARMONIC
ENERGY, INC.

(formerly
Aviation Surveillance Systems, Inc.)

(A
DEVELOPMENT STAGE COMPANY)

NOTES
TO THE FINANCIAL STATEMENTS

April
30, 2011



NOTE
1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



Basic
(Loss) per Common Share

Basic
(loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average
number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income
available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted
average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity.
There are no such common stock equivalents outstanding as of April 30, 2011.



Revenue
Recognition

The
Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.



Advertising
Costs

The
Company’s policy regarding advertising is to expense advertising when incurred. The Company has not incurred any advertising
expense as of April 30, 2011 and 2010.



Cash
and Cash Equivalents

For
purposes of the Statement of Cash Flows, the Company considers all highly liquid instruments purchased with a maturity of three
months or less to be cash equivalents to the extent the funds are not being held for investment purposes.



Reclassifications

Certain
accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial
statements.



Income
Taxes

Income
taxes are computed using the asset and liability method.  Under the asset and liability method, deferred income tax
assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities
and are measured using the currently enacted tax rates and laws.  A valuation allowance is provided for the amount of
deferred tax assets that, based on available evidence, are not expected to be realized.



Stock-Based
Compensation

Stock-based
compensation is accounted for at fair value in accordance with ASC Topic 718.  To date, the Company has not adopted
a stock option plan and has not granted any stock options. As of April 30, 2011, the Company has not issued any stock-based payments
to its employees.

F-6


Table of Contents


HARMONIC
ENERGY, INC.

(formerly
Aviation Surveillance Systems, Inc.)

(A
DEVELOPMENT STAGE COMPANY)

NOTES
TO THE FINANCIAL STATEMENTS

April
30, 2011





NOTE
1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)



Recent
Accounting Pronouncements

Harmonic
Energy does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s
results of operations, financial position or cash flow.



NOTE
2 – ACCRUED EXPENSES



Accrued
expenses consisted of the following as of April 30, 2011 and July 31, 2010:



|                                  |  | April 30, 2011 |        | July 31, 2010
|--------------------------------- |  | -------------- | ------ | -------------
|Accrued legal fees                |  | $              | 29,342 |              
|Accrued accounting and audit fees |  |                | 1,000  |              
|Accrued filing fees               |  |                | 0      |              
|Accrued bank fees                 |  |                | 0      |              
|Total Accrued Expenses            |  | $              | 30,342 |              



NOTE
3 – LOAN PAYABLE – RELATED PARTY



The
Company had a loan of $1,000 outstanding to an officer as of July 31, 2009.  The loan was unsecured, due on demand with
an interest rate of 8%.  The loan and accrued interest were converted to capital during the year ended July 31, 2010.  The
total amount recorded as contributed capital was $1,210.  Interest expense on the above loan was $47 for the year ended
July 31, 2010.



On
June 14, 2010, the Company signed a promissory note for $20,000 with an officer.  The loan is due on June 14, 2011,
bears 6% interest and is unsecured.  Interest expense on this loan was $300 and $892 for the three and nine months ended
April 30, 2011.



NOTE
4 – PREFERRED AND COMMON STOCK



The
Company has 10,000,000 preferred shares and 90,000,000 common shares of $0.001 par value stock authorized.



On
May 14, 2007, the Company received $4,000 from its founders for 7,374,252 shares of its common stock. On June 22, 2007, the Company
completed an unregistered private offering under the Securities Act of 1933, as amended, relying upon the exemption from registration

F-7


Table of Contents


HARMONIC
ENERGY, INC.

(formerly
Aviation Surveillance Systems, Inc.)

(A
DEVELOPMENT STAGE COMPANY)

NOTES
TO THE FINANCIAL STATEMENTS

APRIL
30, 2011



NOTE
4 – PREFERRED AND COMMON STOCK (CONTINUED)



afforded
by Rule 504 of Regulation D promulgated there under.  The Company sold 2,931,265 shares of its $0.001 par value common
stock at a price of $0.004 per share for $11,925 in cash.



On
July 21, 2008, the Company’s shares of common stock were forward split on the basis of 1.84356289 shares for 1.



On
May 1, 2009, the Company’s shares of common stock were forward split on the basis of 1.6 shares for 1. The forward stock
split has been recognized in the Company’s financial statements on a retroactive basis.



On
March 15, 2010, the Company sold 38,235,294 shares of common stock for total cash proceeds of $65,000.



As
of January 31, 2011, the Company has 54,724,119 shares of common stock issued and outstanding.



NOTE
5 – GOING CONCERN



The
accompanying financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate
continuation of the Company as a going concern.  However, the Company has accumulated deficit of $133,823 as of April
30, 2011.  The Company currently has limited liquidity, and has not completed its efforts to establish a stabilized
source of revenues sufficient to cover operating costs over an extended period of time.



Management
anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses
The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light
of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or
become financially viable and continue as a going concern.



F-8


Table of Contents


HARMONIC
ENERGY, INC.

(formerly
Aviation Surveillance Systems, Inc.)

(A
DEVELOPMENT STAGE COMPANY)

NOTES
TO THE FINANCIAL STATEMENTS

APRIL
30, 2011



NOTE
6 – INCOME TAXES



As
of April 30, 2011, the Company had net operating loss carry forwards of approximately $133,800 that may be available to reduce
future years’ taxable income in various amounts through 2031. Future tax benefits which may arise as a result of these losses
have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly,
the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.



The provision
for Federal income tax consists of the following:



|                                             |  | 2011 |        | 2010
|-------------------------------------------- |  | ---- | ------ | ----
|Federal income tax benefits attributable to: |  |      |        |     
|Current Operations                           |  | $    | 3,820  |     
|Less: valuation allowance                    |  |      | (3,820 | )   
|Net provision for Federal income taxes       |  | $    | 0      |     



The
cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:



|                                    |  | 2011 |         | 2010
|----------------------------------- |  | ---- | ------- | ----
|Deferred tax asset attributable to: |  |      |         |     
|Net operating loss carryover        |  | $    | 45,503  |     
|Less: valuation allowance           |  |      | (45,503 | )   
|Net deferred tax asset              |  | $    | 0       |     



Due
to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $133,800
for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating
loss carry forwards may be limited as to use in future years.



NOTE
7 – COMMITMENTS AND CONTINGENCIES



Harmonic
Energy neither owns nor leases any real or personal property. An officer has provided office services without charge.  There
is no obligation for this arrangement to continue.  Such costs are immaterial to the financial statements and accordingly
are not reflected herein.  The officers and directors are involved in other business activities and most likely will
become involved in other business activities in the future.

F-9


Table of Contents


HARMONIC
ENERGY, INC.

(formerly
Aviation Surveillance Systems, Inc.)

(A
DEVELOPMENT STAGE COMPANY)

NOTES
TO THE FINANCIAL STATEMENTS

APRIL
30, 2011





NOTE
8 – SUBSEQUENT EVENTS



Management
has evaluated subsequent events through July 5, 2011, the date these financial statements were issued, and has determined it does
not have any material subsequent events to disclose.

F-10


Table of Contents






Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operations



Forward-Looking
Statements



Certain
statements, other than purely historical information, including estimates, projections, statements relating to our business plans,
objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking
statements.” These forward-looking statements generally are identified by the words “believes,” “project,”
“expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,”
“may,” “will,” “would,” “will be,” “will continue,” “will likely
result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are
subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our
ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have
a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes
in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted
accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue
reliance should not be placed on such statements.



Company
Overview



We
are a Nevada corporation, formed May 1, 2007.  Currently, we do not have any active business operations. Our management
is evaluating business opportunities in the area of oil and gas and is searching for promising oil and gas prospects and/or producing
oil and gas properties in the United States and internationally.



Results
of operations for the three and nine months ended April 30, 2011 and 2010, and for the period from May 1, 2007 (date of inception)
through April 30, 2011.



We
have not earned significant revenues since the inception of our business and we earned no revenues during the three and nine months
ended April 30, 2011 and 2010.  We are presently in the development stage of our business and we can provide no assurance
that we will produce significant revenues or, if revenues are earned, that we will be profitable.



We
incurred net losses in the amount of $133,823 from our inception on May 1, 2007 through the period ending April 30, 2011.  During
the three months ended April 30, 2011, we incurred operating expenses in the amount of $1,093, together with interest expense
of $300, resulting in a net loss of $1,393. By comparison, we experienced operating expenses of $1,637, a gain on settlement of
accrued expenses in the amount of $75,052, and a net income of $75,052 during the three months ended April 30, 2010. We incurred
operating expenses of $10,332, interest expense of $892, and net losses in the amount of $11,224 during the nine months ended
April 30, 2011. By comparison, we incurred operating expenses $72,780, interest expense of $47, gain on settlement of accrued
expenses of $75,052, and a net income in the amount of $2,225 during the nine months ended April 30, 2010. Our operating expenses
from inception through April 30, 2011 consisted primarily of general and administrative expenses.  Our losses are attributable
to our operating expenses combined with a lack of significant revenues during our current stage of development.

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Table of Contents


Liquidity
and Capital Resources



As
of April 30, 2011, we had no current assets, no cash, and current liabilities of $51,388.  Thus, we had a working capital
deficit of $51,388 as of April 30, 2011.



We
have not established profitable operations and will be dependent upon obtaining financing to pursue a long-term business plan.
We will require substantial additional financing in order to purchase, fund and to undertake any oil and gas exploration and development
activities or to acquire any oil and gas project. We currently do not have any arrangements for financing and we may not be able
to obtain financing when required. For these reasons our auditors stated in their report that they have substantial doubt we will
be able to continue as a going concern.



Off
Balance Sheet Arrangements



As
of April 30, 2011, there were no off balance sheet arrangements.



Going
Concern



We
have negative working capital, have incurred losses since inception, and not yet established a source of revenues. These factors
create substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustment
that might be necessary if we are unable to continue as a going concern.



Our
ability to continue as a going concern is dependent on generating cash from the sale of our common stock and/or obtaining debt
financing and attaining future profitable operations. Management’s plans include selling our equity securities and obtaining
debt financing to fund our capital requirement and ongoing operations; however, there can be no assurance we will be successful
in these efforts.

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Table of Contents


Item
3. Quantitative and Qualitative Disclosures About Market Risk



A
smaller reporting company is not required to provide the information required by this Item.



Item
4. Controls and Procedures



We
carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of April 30, 2011. This evaluation was carried out under the supervision and
with the participation of our Chief Executive Officer and Interim Chief Financial Officer, Dan Forigo. Based upon that evaluation,
our Chief Executive Officer and Interim Chief Financial Officer concluded that, as of April 30, 2011, our disclosure controls
and procedures are not effective. There have been no changes in our internal controls over financial reporting during the quarter
ended April 30, 2011.



Management
determined that the material weaknesses that resulted in controls being ineffective are primarily due to lack of resources and
number of employees. Material weaknesses exist in the segregation of duties required for effective controls and various reconciliation
and control procedures not regularly performed due to the lack of staff and resources.



Disclosure
controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed
in our reports filed or submitted under the Exchange Act are recorded, processed, summarized and reported, within the time periods
specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated
to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required
disclosure.



Limitations
on the Effectiveness of Internal Controls



Our
management does not expect that our disclosure controls and procedures or our internal control over financial reporting will necessarily
prevent all fraud and material error.   Further, the design of a control system must reflect the fact that there are
resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations
in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud,
if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making
can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by
the individual acts of some persons, by collusion of two or more people, or by management override of the internal control. The
design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there
can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time,
control may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may
deteriorate.



6


Table of Contents


PART
II – OTHER INFORMATION



Item
1. Legal Proceedings



We
are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers,
directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse
to us.



Item
1A: Risk Factors



A
smaller reporting company is not required to provide the information required by this Item.



Item
2. Unregistered Sales of Equity Securities and Use of Proceeds



None



Item
3. Defaults upon Senior Securities



None



Item
4. Removed and Reserved



Item
5. Other Information



None



Item
6. Exhibits



|Exhibit
    Number | Description
    of Exhibit                                                                                                                                                                   
|------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|31.1               | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley
    Act of 2002                                        
|31.2               | Certification of Interim Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002                                
|32.1               | Certification
    of Chief Executive Officer and Interim Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
    906 of the Sarbanes-Oxley Act of 2002

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Table of Contents


SIGNATURES



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



|       | Harmonic
    Energy, Inc.              
|------ | ---------------------------------------
|       |                                        
|Date:  | September 20,
    2011                 
|       |                                        
|By:    | /s/
    Dan Forigo                     
|Title: | Dan Forigo, Chief
    Executive Officer





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