| Nevada                                                         |   |  20-3626387                        |
|----------------------------------------------------------------|--------|-----------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   |  (IRS Employer Identification No.) |

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| PART I - FINANCIAL INFORMATION                                                                       |   2  |
|-----------------------------------------------------------------------------------------------------------|-----------|
| Item 1.  Financial Statements                                                                   |   2  |
| Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations |   3  |
| Item 3.  Quantitative and Qualitative Disclosures About Market Risk                                  |   10 |
| Item 4.  Controls and Procedures                                                                |   10 |
| PART II - OTHER INFORMATION                                                                               |   11 |
| Item 1.  Legal Proceedings                                                                           |   11 |
| Item 1A.  Risk Factors                                                                               |   11 |
| Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds                                 |   11 |
| Item 3.  Defaults Upon Senior Securities                                                             |   11 |
| Item 4.  [Removed and Reserved]                                                                      |   11 |
| Item 5.  Other Information                                                                           |   11 |
| Item 6.  Exhibits                                                                                    |   11 |
| SIGNATURES                                                                                                |   12 |

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PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements

| Balance Sheets                    | F-1 |
|-----------------------------------|-----|
| Statements of Operations          | F-2 |
| Statements of Cash Flows          | F-3 |
| Notes to the Financial Statements | F-4 |

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|                                                                                                                                                   |   | March 31,2011$ |       |   | December 31,2010$ |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                                                                                                                                                   |   | (unaudited)    |       |   |              |   |
| ASSETS                                                                                                                                                 |   |           |       |   |              |   |
|                                                                                                                                                   |   |           |       |   |              |   |
| Current Assets                                                                                                                                         |   |           |       |   |              |   |
|                                                                                                                                                   |   |           |       |   |              |   |
| Cash                                                                                                                                                   |   |           | 5,249      |   |              |   | 39,384 |   |
| Amounts receivable                                                                                                                                     |   |           | 24,742     |   |              |   | 19,456 |   |
| Investment tax credit receivable (Note 2(m))                                                                                                           |   |           | 14,880     |   |              |   | 14,880 |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Total Current Assets                                                                                                                                   |   |           | 44,871     |   |              |   | 73,720 |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Property and equipment (Note 3)                                                                                                                        |   |           | 7,864      |   |              |   | 8,406 |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Total Assets                                                                                                                                           |   |           | 52,735     |   |              |   | 82,126 |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                            |   |           |       |   |              |   |   |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Current Liabilities                                                                                                                                    |   |           |       |   |              |   |   |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Accounts payable                                                                                                                                       |   |           | 33,654     |   |              |   | 24,084 |   |
| Accrued liabilities                                                                                                                                    |   |           | 20,698     |   |              |   | 3,797 |   |
| Accrued convertible interest payable to related parties (Note 5)                                                                                       |   |           | 40,125     |   |              |   | 34,065 |   |
| Advances from related parties (Note 6(a))                                                                                                              |   |           | 26,906     |   |              |   | 26,906 |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Total Current Liabilities                                                                                                                              |   |           | 121,383    |   |              |   | 88,852 |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Accrued convertible interest payable (Note 7)                                                                                                          |   |           | 10,254     |   |              |   | 8,065 |   |
| Convertible debenture (Note 7)                                                                                                                         |   |           | 28,552     |   |              |   | 28,954 |   |
| Convertible debentures issued to related parties (Note 5)                                                                                              |   |           | 333,127    |   |              |   | 332,403 |   |
| Advances from related parties (Note 6(b))                                                                                                              |   |           | 24,240     |   |              |   | 24,865 |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Total Liabilities                                                                                                                                      |   |           | 517,556    |   |              |   | 483,139 |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Contingencies and Commitments (Notes 1 and 9)                                                                                                          |   |           |       |   |              |   |   |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Subsequent Event (Note 10)                                                                                                                             |   |           |       |   |              |   |   |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Stockholders’ Deficit                                                                                                                            |   |           |       |   |              |   |   |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Common stock, 200,000,000 shares authorized, US$0.001 par value;45,569,068 shares issued and outstanding (December 31, 2010 – 45,569,068 shares) |   |           | 52,810     |   |              |   | 52,810 |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Additional paid-in capital                                                                                                                             |   |           | 1,685,787  |   |              |   | 1,685,787 |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Common stock to be issued (Note 9(b))                                                                                                                  |   |           | 2,320      |   |              |   | 2,320 |   |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Deficit accumulated during the development stage                                                                                                       |   |           | (2,205,738 | )      |              |   | (2,141,930 | ) |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Total Stockholders’ Deficit                                                                                                                      |   |           | (464,821   | )      |              |   | (401,013 | ) |
|                                                                                                                                                   |   |           |       |   |              |   |   |   |
| Total Liabilities and Stockholders’ Deficit                                                                                                      |   |           | 52,735     |   |              |   | 82,126 |   |

----

|                                             |   | Accumulated fromMarch 6, 1999(Date of Inception)to March 31,2011$ |       |   | For theThree monthsEndedMarch 31,2011$ |   |       | For theThree monthsEndedMarch 31,2010$ |   |
|--------------------------------------------------|--------|-------------------------------------------------------------------|------------|--------|----------------------------------------|--------|------------|----------------------------------------|--------|
|                                             |   |                                                              |       |   |                                   |   |       |                                   |   |
| Revenue                                          |   |                                                              | –    |   |                                   |   | –    |                                   |   |   | – |   |
|                                             |   |                                                              |       |   |                                   |   |       |                                   |   |   |   |   |
| Expenses                                         |   |                                                              |       |   |                                   |   |       |                                   |   |   |   |   |
|                                             |   |                                                              |       |   |                                   |   |       |                                   |   |   |   |   |
| Depreciation                                     |   |                                                              | 18,503     |   |                                   |   | 542        |                                   |   |   | 742 |   |
| Foreign exchange gain                            |   |                                                              | (43,929    | )      |                                   |   | (9,549     | )                                      |   |   | (8,386 | ) |
| General and administrative (Note 4)              |   |                                                              | 1,675,839  |   |                                   |   | 53,109     |                                   |   |   | 60,716 |   |
| Research and development                         |   |                                                              | 82,435     |   |                                   |   | 2,619      |                                   |   |   | 3,053 |   |
|                                             |   |                                                              |       |   |                                   |   |       |                                   |   |   |   |   |
| Total Operating Expenses                         |   |                                                              | 1,732,848  |   |                                   |   | 46,721     |                                   |   |   | 56,125 |   |
|                                             |   |                                                              |       |   |                                   |   |       |                                   |   |   |   |   |
| Loss From Operations                             |   |                                                              | (1,732,848 | )      |                                   |   | (46,721    | )                                      |   |   | (56,125 | ) |
|                                             |   |                                                              |       |   |                                   |   |       |                                   |   |   |   |   |
| Other Expenses                                   |   |                                                              |       |   |                                   |   |       |                                   |   |   |   |   |
|                                             |   |                                                              |       |   |                                   |   |       |                                   |   |   |   |   |
| Accretion of discounts on convertible debentures |   |                                                              | (373,630   | )      |                                   |   | (7,624     | )                                      |   |   | (8,357 | ) |
| Interest expense                                 |   |                                                              | (99,260    | )      |                                   |   | (9,463     | )                                      |   |   | (3,498 | ) |
|                                             |   |                                                              |       |   |                                   |   |       |                                   |   |   |   |   |
| Total Other Expenses                             |   |                                                              | (472,890   | )      |                                   |   | (17,087    | )                                      |   |   | (11,855 | ) |
|                                             |   |                                                              |       |   |                                   |   |       |                                   |   |   |   |   |
| Net Loss for the Period                          |   |                                                              | (2,205,738 | )      |                                   |   | (63,808    | )                                      |   |   | (67,980 | ) |
|                                             |   |                                                              |       |   |                                   |   |       |                                   |   |   |   |   |
| Net Loss Per Share – Basic and Diluted     |   |                                                              |       |   |                                   |   | –    |                                   |   |   | – |   |
|                                             |   |                                                              |       |   |                                   |   |       |                                   |   |   |   |   |
| Weighted Average Shares Outstanding              |   |                                                              |       |   |                                   |   | 45,569,000 |                                   |   |   | 45,670,000 |   |

----

|                                                                        |   | Accumulated fromMarch 6, 1999(Date of Inception)to March 31,2011$ |       |   | For theThree monthsEndedMarch 31,2011$ |   |    | For theThree monthsEndedMarch 31,2010$ |   |
|-----------------------------------------------------------------------------|--------|-------------------------------------------------------------------|------------|--------|----------------------------------------|--------|---------|----------------------------------------|--------|
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |
| Operating Activities                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |
| Net loss for the period                                                     |   |                                                              | (2,205,738 | )      |                                   |   | (63,808 | )                                      |   |   | (67,980 | ) |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Accretion of discounts on convertible debentures                            |   |                                                              | 373,630    |   |                                   |   | 7,624   |                                   |   |   | 8,357 |   |
| Depreciation                                                                |   |                                                              | 18,503     |   |                                   |   | 542     |                                   |   |   | 742 |   |
| Stock-based compensation                                                    |   |                                                              | 239,058    |   |                                   |   | – |                                   |   |   | 2,320 |   |
| Foreign exchange (gain) loss                                                |   |                                                              | (40,004    | )      |                                   |   | 5,279   |                                   |   |   | (10,433 | ) |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Changes in operating assets and liabilities:                                |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Amounts receivable                                                          |   |                                                              | (23,922    | )      |                                   |   | (5,286  | )                                      |   |   | (1,404 | ) |
| Investment tax credit receivable                                            |   |                                                              | (14,880    | )      |                                   |   | – |                                   |   |   | – |   |
| Prepaid expenses                                                            |   |                                                              | 1,125      |   |                                   |   | – |                                   |   |   | – |   |
| Accounts payable and accrued liabilities                                    |   |                                                              | (28,544    | )      |                                   |   | 12,051  |                                   |   |   | (4,972 | ) |
| Accrued convertible interest payable                                        |   |                                                              | 98,287     |   |                                   |   | 9,463   |                                   |   |   | 3,498 |   |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Net Cash Used In Operating Activities                                       |   |                                                              | (1,582,485 | )      |                                   |   | (34,135 | )                                      |   |   | (69,872 | ) |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Investing Activities                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Purchase of equipment                                                       |   |                                                              | (13,617    | )      |                                   |   | – |                                   |   |   | – |   |
| Net cash acquired on business acquisition                                   |   |                                                              | 178,365    |   |                                   |   | – |                                   |   |   | – |   |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Net Cash Provided by Investing Activities                                   |   |                                                              | 164,748    |   |                                   |   | – |                                   |   |   | – |   |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Financing Activities                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Proceeds from convertible debt                                              |   |                                                              | 550,471    |   |                                   |   | – |                                   |   |   | – |   |
| Proceeds from issuance of shares                                            |   |                                                              | 505,953    |   |                                   |   | – |                                   |   |   | – |   |
| Proceeds from related parties                                               |   |                                                              | 366,562    |   |                                   |   | – |                                   |   |   | – |   |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Net Cash Provided by Financing Activities                                   |   |                                                              | 1,422,986  |   |                                   |   | – |                                   |   |   | – |   |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Increase (decrease) in Cash                                                 |   |                                                              | 5,249      |   |                                   |   | (34,135 | )                                      |   |   | (69,872 | ) |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Cash - Beginning of Period                                                  |   |                                                              | –    |   |                                   |   | 39,384  |                                   |   |   | 117,489 |   |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Cash - End of Period                                                        |   |                                                              | 5,249      |   |                                   |   | 5,249   |                                   |   |   | 47,617 |   |
|                                                                        |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Supplemental Disclosures                                                    |   |                                                              |       |   |                                   |   |    |                                   |   |   |   |   |
| Interest paid                                                               |   |                                                              | –    |   |                                   |   | – |                                   |   |   | – |   |
| Income taxes paid                                                           |   |                                                              | –    |   |                                   |   | – |                                   |   |   | – |   |

----

----

|    |   | Fair Value Measurements Using                                       |   |
|---------|--------|---------------------------------------------------------------------|--------|
|    |   | Quoted Prices in Active Markets For Identical Instruments (Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   |  Significant Unobservable Inputs(Level 3) |   |   |  Balance as of March 31, 2011 |   |
| Assets: |   |                                                                |   |   |   |   |   |   |   |   |   |   |
| Cash    |   | $                                                                   | 5,249  |   |   |   | – |   |   |   | – |   |   | $ | 5,249 |   |

----

----

|               |   |   |   |   |                     |   |   | March 31,2011      |   |   | December 31,2010   |   |
|--------------------|--------|--------|--------|--------|--------------------------|--------|--------|--------------------|--------|--------|--------------------|--------|
|               |   | Cost$  |   |   | AccumulatedAmortization$ |   |   | Net CarryingValue$ |   |   | Net CarryingValue$ |   |
|               |   |   |   |   |                     |   |   |               |   |   |               |   |
| Equipment          |   |   | 13,617 |   |                     |   | 9,776  |               |   |   | 3,841              |   |   |   | 4,152 |   |
| Computer equipment |   |   | 3,283  |   |                     |   | 2,635  |               |   |   | 648                |   |   |   | 701 |   |
| Office furniture   |   |   | 9,467  |   |                     |   | 6,092  |               |   |   | 3,375              |   |   |   | 3,553 |   |
|               |   |   |   |   |                     |   |   |               |   |   |               |   |   |   |   |   |
|               |   |   | 26,367 |   |                     |   | 18,503 |               |   |   | 7,864              |   |   |   | 8,406 |   |

----

| a)  | On July 30, 2008, the Company entered into a convertible debenture agreement with a company controlled by the President of the Company. The Company received US$36,376 ($36,960) which bears interest at 10% per annum and is due five years from the advancement date. No interest shall be payable for the first year from the advancement date but shall accrue from the advancement date and all accrued interest shall be payable annually, on the subsequent anniversaries of the advancement date. Proceeds of the loan are to be used to acquire certain patents and intellectual property rights and the loan amount is secured against such intellectual property. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of US$0.17 per share. The Company recognized the intrinsic value of the embedded beneficial conversion feature of US$6,419 ($6,523) as additional paid-in capital and reduced the carrying value of the convertible debenture to US$29,957 ($30,437). The carrying value will be accreted over the term of the convertible debenture up to its face value of US$36,376. As at March 31, 2011, the carrying values of the convertible debenture and accrued convertible interest payable thereon were $31,987 and $9,412, respectively, after translation into Canadian dollars. The Company can repay any portion of the loan and accrued interest at any time without penalty. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)  | On October 16, 2008, the Company entered into a convertible debenture agreement with the President of the Company. The Company received US$50,000 ($59,110) which bears interest at 10% per annum and is due five years from the advancement date. No interest shall be payable for the first year from the advancement date but shall accrue from the advancement date and all accrued interest shall be payable annually, on the subsequent anniversaries of the advancement date. Proceeds of the loan are to be used to repay an outstanding loan and to further business development and research and development activities. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of US$0.07 per share. The Company recognized the intrinsic value of the embedded beneficial conversion feature of US$14,286 ($16,889) as additional paid-in capital and reduced the carrying value of the convertible debenture to US$35,714 ($42,221). The carrying value will be accreted over the term of the convertible debenture up to its face value of US$50,000. As at March 31, 2011, the carrying values of the convertible debenture and accrued convertible interest thereon were $40,243 and $11,901, respectively, after translation into Canadian dollars. The Company can repay any portion of the loan and accrued interest at any time without penalty. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)  | On April 9, 2009, the Company entered into a convertible loan agreement with a company controlled by directors of the Company. The Company received US$202,920 ($250,000) which bears interest at 10% per annum and is due five years from the advancement date. No interest shall accrue for the first year from the advancement date but shall begin to accrue on the second anniversary of the advancement date and all accrued interest shall be payable annually, on the subsequent anniversaries of the advancement date. Proceeds from the loan are to be used to further advance current business development and marketing initiatives, and to complete testing. The loan amount is secured against intellectual property rights owned by the Company. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of US$0.06 per share. The Company recognized the intrinsic value of the embedded beneficial conversion feature of US$101,460 ($125,000) as additional paid-in capital and reduced the carrying value of the convertible debenture to US$101,460 ($125,000). The carrying value will be accreted over the term of the convertible debenture up to its face value of US$202,920. As at March 31, 2011, the carrying value of the convertible debenture and accrued convertible interest thereon were $135,599 and $18,813, respectively, after translation into Canadian dollars. The Company can repay any portion of the loan and accrued interest at any time without penalty. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)  | On December 31, 2009, the Company entered into a convertible loan agreement with a company controlled by the President of the Company. The Company received US$50,000 ($52,550) which bears interest at 10% per annum and is due five years from the advancement date. Interest shall accrue from the advancement date and shall be payable on the fifth anniversary of the advancement date. Proceeds of the loan are to be used to continue with current business development activities. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of US$0.05 per share. As at March 31, 2011, the carrying value of the convertible debenture and accrued convertible interest thereon were $48,480 and $6,043, respectively, after translation into Canadian dollars. The Company can repay any portion of the loan and accrued interest at any time without penalty. |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| e)  | On July 15, 2010, the Company entered into a convertible debenture agreement with a company controlled by the President of the Company. The Company received $50,000 which is due five years from the advancement date. The loan shall be interest free for the first year, after which it shall bear interest at a rate of 10% per annum. The accrued interest shall be payable annually on the anniversaries of the advancement date, commencing on the second anniversary. Proceeds of the loan are to be used to continue with current business development activities. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of $0.035 per share. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $7,143 as additional paid-in capital and reduced the carrying value of the convertible debenture to $42,857. The carrying value will be accreted over the term of the convertible debenture up to its face value of $50,000. As at March 31, 2011, the carrying value of the convertible debenture was $46,285. The Company can repay any portion of the loan and accrued interest at any time without penalty. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| f)  | On November 30, 2010, the Company entered into a convertible debenture agreement with a company controlled by the President of the Company. The Company received $50,000 which is due five years from the advancement date. The loan shall be interest free for the first year, after which it shall bear interest at a rate of 10% per annum. The accrued interest shall be payable annually on the anniversaries of the advancement date, commencing on the second anniversary. Proceeds of the loan are to be used to continue with current business development activities. Any portion of the loan and unpaid interest are convertible at any time at the option of the lender into shares of common stock of the Company at a conversion price of $0.035 per share. The Company recognized the intrinsic value of the embedded beneficial conversion feature of $21,429 as additional paid-in capital and reduced the carrying value of the convertible debenture to $28,571. The carrying value will be accreted over the term of the convertible debenture up to its face value of $50,000. As at March 31, 2011, the carrying value of the convertible debenture was $30,533. The Company can repay any portion of the loan and accrued interest at any time without penalty. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)  | On December 9, 2008, the Company received $25,000 from a company controlled by the President of the Company. The amount owing is unsecured, non-interest bearing, and has no specified repayment terms. As at March 31, 2011, the Company owed this company $1,906 (December 31, 2010 - $1,906) for payment of expenses on behalf of the Company. |
|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)  | On September 5, 2008, the Company entered into a loan agreement with a company controlled by the President of the Company. The Company received US$25,000 ($26,388) which is non-interest bearing and is due five years from the advancement date. As at March 31, 2011, the loan payable was $24,240 (December 31, 2010 - $24,865) after translation into Canadian dollars. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                              |   | Number of Warrants |       |   | Weighted Average Exercise Price |   |
|-----------------------------------|--------|--------------------|------------|--------|---------------------------------|--------|
|                              |   |               |       |   |                            |   |
| Balance – December 31, 2010 |   |               | 3,466,192  |   |                            | $      | US0.11 |   |
|                              |   |               |       |   |                            |   |   |   |
| Expired                           |   |               | (3,278,692 | )      |                            | $      | US0.11 |   |
|                              |   |               |       |   |                            |   |   |   |
| Balance – March 31, 2011    |   |               | 187,500    |   |                            | $      | US0.07 |   |

| Number of Warrants | Exercise Price | Expiry Date   |
|--------------------|----------------|---------------|
|               |           |          |
| 187,500            | US$0.07        | July 28, 2011 |

| a)  | On September 15, 2008, the Company entered into a consulting agreement with the former employee for administrative services. Pursuant to the agreement, the Company agreed to pay the former employee $6,800 per month. This agreement may be terminated upon three months prior written notice. |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)  | On July 1, 2009, the Company entered into an investor relations agreement.  Pursuant to the agreement, the Company agreed to pay a fee of $1,000 per month for a period of six months beginning on August 1, 2009, and ending January 1, 2010. The Company must also issue 75,000 shares within 7 days of signing the agreement.  Any payments over 45 days will be subject to a penalty fee of 10% per week.  On February 8, 2010, the Company issued 75,000 shares of common stock, which was included in common stock to be issued at December 31, 2009 at a value of $2,627.  On January 1, 2010, the agreement was extended for twelve months and the Company will issue an additional 75,000 shares.  On January 1, 2011, the agreement was extended for twelve months for no additional consideration and can be cancelled by either party by giving one month’s written notice. As at March 31, 2011, the additional shares have not been issued and have been included in common stock to be issued at a value of $2,320. |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)  | On October 15, 2009, the Company entered into a license agreement with a licensee to grant a non-exclusive license to use, market and sell the Company’s intellectual property for a period of two years.  License and royalty fees are to be determined prior to the first sale. On March 14, 2011, the license agreement was terminated. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

----

| Territory | Patent Filing Number |
|-----------|----------------------|
| U.S.A.    | 6,622,482            |
| 7,018,590 |
| Canada    | 2,448,742            |
| 2,448,648 |
| Europe    | 02742591.7           |

|                                |   |   |    |   |
|-------------------------------------|--------|--------|---------|--------|
| Sales and marketing expenses        |   | $      | 30,000  |   |
| Research and development expenses   |   | $      | 40,000  |   |
| General and administrative expenses |   | $      | 180,000 |   |
| Total                               |   | $      | 250,000 |   |

----

----

|    |   | Fair Value Measurements Using                                            |   |
|---------|--------|--------------------------------------------------------------------------|--------|
|    |   | Quoted Prices in Active Markets For Identical Instruments (Level 1) |   |   | Significant Other Observable Inputs(Level 2) |   |   |  Significant Unobservable Inputs(Level 3) |   |   |  Balance as of March 31, 2011 |   |
| Assets: |   |                                                                     |   |   |   |   |   |   |   |   |   |   |
| Cash    |   | $                                                                        | 5,249  |   |   |   | – |   |   |   | – |   |   | $ | 5,249 |   |

----

----

|                                             |   | Three MonthsEndedMarch 31, 2011 |    |   | Three MonthsEndedMarch 31, 2010 |   |    | Change BetweenThree Month PeriodEndedMarch 31, 2011 andMarch 31, 2010 |   |
|--------------------------------------------------|--------|---------------------------------|---------|--------|---------------------------------|--------|---------|-----------------------------------------------------------------------|--------|
| Revenue                                          |   | $                               | Nil     |   |                            | $      | Nil     |                                                                  |   | $ | Nil |   |
| Depreciation                                     |   | $                               | 542     |   |                            | $      | 742     |                                                                  |   | $ | 200 |   |
| Foreign exchange loss (gain) loss                |   | $                               | (9,549  | )      |                            | $      | (8,386  | )                                                                     |   | $ | 1,163 |   |
| General and administrative                       |   | $                               | 53,109  |   |                            | $      | 60,716  |                                                                  |   | $ | 7,607 |   |
| Research and development                         |   | $                               | 2,619   |   |                            | $      | 3,053   |                                                                  |   | $ | 434 |   |
| Accretion of discounts on convertible debentures |   | $                               | (7,624  | )      |                            | $      | (8,357  | )                                                                     |   | $ | 733 |   |
| Interest expense                                 |   | $                               | (9,463  | )      |                            | $      | (3,498  | )                                                                     |   | $ | 5,965 |   |
| Net (Loss)                                       |   | $                               | (63,808 | )      |                            | $      | (67,980 | )                                                                     |   | $ | 4,172 |   |

----

|                      |   | AtMarch 31, 2011 |    |   | AtDecember 31, 2010 |   |
|---------------------------|--------|------------------|---------|--------|---------------------|--------|
| Current assets            |   | $                | 44,871  |   |                | $      | 73,720 |   |
| Current liabilities       |   | $                | 121,383 |   |                | $      | 88,852 |   |
| Working capital (deficit) |   | $                | (76,512 | )      |                | $      | (15,132 | ) |

|                                          |   | AtMarch 31, 2011 |    |   | AtMarch 31, 2010 |   |
|-----------------------------------------------|--------|------------------|---------|--------|------------------|--------|
| Net cash used in operating activities         |   | $                | 34,135  |   |             | $      | 69,872 |   |
| Net cash used in investing activities         |   | $                | Nil     |   |             | $      | Nil |   |
| Net cash provided by financing activities     |   | $                | Nil     |   |             | $      | Nil |   |
| Net increase (decrease) in cash during period |   | $                | (34,135 | )      |             | $      | (69,872 | ) |

----

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Item 4.  Controls and Procedures

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PART II - OTHER INFORMATION

Item 1.  Legal Proceedings

Item 1A.  Risk Factors

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

Item 3.  Defaults Upon Senior Securities

Item 4.  [Removed and Reserved]

Item 5.  Other Information

Item 6.  Exhibits

| Exhibit Number | Description                                                                                                                                                                   |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3)            | Articles of Incorporation and Bylaws                                                                                                                                          |
| 3.1            | Articles of Incorporation (incorporated by reference from our Registration Statement on Form SB-2 filed on May 4, 2005).                                                      |
| 3.2            | By-laws (incorporated by reference from our Registration Statement on Form SB-2 filed on May 4, 2005).                                                                        |
| (10)           | Material Contracts                                                                                                                                                            |
| 10.1           | Contribution Agreement with National Research Council of Canada Industrial Research Program (incorporated by reference from our Current Report on Form 8-K February 4, 2009). |
| 10.2*          | Convertible Loan Agreement with 51644 Newfoundland and Labrador Inc. dated April 21, 2011.                                                                                    |
| (21)           | Subsidiaries of the Registrant                                                                                                                                                |
| 21.1           | Environmental Control Corporation                                                                                                                                             |
| (31)           | Rule 13a-14(a)/15d-14(a) Certifications                                                                                                                                       |
| 31.1*          | Section 302 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer                                                                             |
| 31.2*          | Section 302 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Financial Officer and Principal Accounting Officer                                            |
| (32)           | Section 1350 Certifications                                                                                                                                                   |
| 32.1*          | Section 906 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer                                                                             |
| 32.2*          | Section 906 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Financial Officer and Principal Accounting Officer                                            |

----

SIGNATURES

|                           |   | ENVIRONMENTAL CONTROL CORP.                                    |
|--------------------------------|--------|----------------------------------------------------------------|
|                           |   | (Registrant)                                                   |
|                           |   |                                                           |
| Dated:  May 16, 2011 | By:    | /s/ Albert Hickman                                             |
|                           |   | Albert Hickman                                                 |
|                           |   | President, Chief Executive Officer and Director                |
|                           |   | (Principal Executive Officer)                                  |
|                           |   |                                                           |
| Dated:  May 16, 2011 | By:    | /s/ Gary Bishop                                           |
|                           |   | Gary Bishop                                                    |
|                           |   | Chief Financial Officer and Director                           |
|                           |   | (Principal Financial Officer and Principal Accounting Officer) |