| 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 |

----

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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|                                                                                                                                                  |   | September 30, 2010$ |       |   | December 31, 2010$ |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------|--------|--------------------|--------|
|                                                                                                                                                  |   | (unaudited)         |       |   |               |   |
| ASSETS                                                                                                                                                |   |                |       |   |               |   |
|                                                                                                                                                  |   |                |       |   |               |   |
| Current Assets                                                                                                                                        |   |                |       |   |               |   |
|                                                                                                                                                  |   |                |       |   |               |   |
| Cash                                                                                                                                                  |   |                | 33,131     |   |               |   | 117,489 |   |
| Amounts receivable                                                                                                                                    |   |                | 15,394     |   |               |   | 8,406 |   |
| Investment tax credit receivable (Note 2(n))                                                                                                          |   |                | 14,880     |   |               |   | 14,880 |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Total Current Assets                                                                                                                                  |   |                | 63,405     |   |               |   | 140,775 |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Property and equipment (Note 3)                                                                                                                       |   |                | 9,148      |   |               |   | 11,374 |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Total Assets                                                                                                                                          |   |                | 72,553     |   |               |   | 152,149 |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                           |   |                |       |   |               |   |   |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Current Liabilities                                                                                                                                   |   |                |       |   |               |   |   |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Accounts payable                                                                                                                                      |   |                | 36,962     |   |               |   | 48,584 |   |
| Accrued liabilities                                                                                                                                   |   |                | 1,669      |   |               |   | 1,702 |   |
| Accrued convertible interest payable to related parties (Note 5)                                                                                      |   |                | 31,588     |   |               |   | 11,785 |   |
| Advances from related parties (Note 6(b))                                                                                                             |   |                | 26,906     |   |               |   | 26,906 |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Total Current Liabilities                                                                                                                             |   |                | 97,125     |   |               |   | 88,977 |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Accrued convertible interest payable (Note 7)                                                                                                         |   |                | 1,903      |   |               |   | – |   |
| Convertible debenture (Note 7)                                                                                                                        |   |                | 29,679     |   |               |   | – |   |
| Convertible debentures issued to related parties (Note 5)                                                                                             |   |                | 307,966    |   |               |   | 250,951 |   |
| Advances from related parties (Note 6(c))                                                                                                             |   |                | 25,725     |   |               |   | 26,275 |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Total Liabilities                                                                                                                                     |   |                | 462,398    |   |               |   | 366,203 |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Contingencies and Commitments (Notes 1 and 10)                                                                                                        |   |                |       |   |               |   |   |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Stockholders’ Deficit                                                                                                                           |   |                |       |   |               |   |   |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Common stock, 75,000,000 shares authorized, US$0.001 par value;45,569,068 shares issued and outstanding (December 31, 2009 – 45,869,068 shares) |   |                | 52,810     |   |               |   | 53,158 |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Additional paid-in capital                                                                                                                            |   |                | 1,664,636  |   |               |   | 1,632,019 |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Common stock to be issued (Note 8(b))                                                                                                                 |   |                | 2,320      |   |               |   | 2,627 |   |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Deficit accumulated during the development stage                                                                                                      |   |                | (2,109,611 | )      |               |   | (1,901,858 | ) |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Total Stockholders’ Deficit                                                                                                                     |   |                | (389,845   | )      |               |   | (214,054 | ) |
|                                                                                                                                                  |   |                |       |   |               |   |   |   |
| Total Liabilities and Stockholders’ Deficit                                                                                                     |   |                | 72,553     |   |               |   | 152,149 |   |

----

|                                             |   | Accumulated fromMarch 6, 1999(Date of Inception)to September 30, 2010$ |       |   | For theNine monthsEndedSeptember 30, 2010$ |   |       | For theNine monthsEndedSeptember 30, 2009$ |   |   | For theThree monthsEndedSeptember 30, 2010$ |   |   | For theThree monthsEndedSeptember 30, 2009$ |       |
|--------------------------------------------------|--------|------------------------------------------------------------------------|------------|--------|--------------------------------------------|--------|------------|--------------------------------------------|--------|--------|---------------------------------------------|--------|--------|---------------------------------------------|------------|
|                                             |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |
| Revenue                                          |   |                                                                   | –    |   |                                       |   | –    |                                       |   |   | –                                     |   |   |                                        | –    |   |   |   | – |   |
|                                             |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |   |   |   |   |   |
| Expenses                                         |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |   |   |   |   |   |
|                                             |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |   |   |   |   |   |
| Depreciation                                     |   |                                                                   | 17,219     |   |                                       |   | 2,226      |                                       |   |   | 2,753                                       |   |   |                                        | 792        |   |   |   | 854 |   |
| Foreign exchange gain                            |   |                                                                   | (21,312    | )      |                                       |   | (2,887     | )                                          |   |   | (31,514                                     | )      |   |                                        | (8,370     | ) |   |   | (19,779 | ) |
| General and administrative (Note 4)              |   |                                                                   | 1,594,271  |   |                                       |   | 163,735    |                                       |   |   | 237,632                                     |   |   |                                        | 62,612     |   |   |   | 68,514 |   |
| Research and development                         |   |                                                                   | 79,816     |   |                                       |   | 3,853      |                                       |   |   | 6,775                                       |   |   |                                        | –    |   |   |   | (9,661 | ) |
|                                             |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |   |   |   |   |   |
| Total Operating Expenses                         |   |                                                                   | 1,669,994  |   |                                       |   | 166,927    |                                       |   |   | 215,646                                     |   |   |                                        | 55,034     |   |   |   | 39,928 |   |
|                                             |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |   |   |   |   |   |
| Loss From Operations                             |   |                                                                   | (1,669,994 | )      |                                       |   | (166,927   | )                                          |   |   | (215,646                                    | )      |   |                                        | (55,034    | ) |   |   | (39,928 | ) |
|                                             |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |   |   |   |   |   |
| Other Expenses                                   |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |   |   |   |   |   |
|                                             |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |   |   |   |   |   |
| Accretion of discounts on convertible debentures |   |                                                                   | (359,761   | )      |                                       |   | (18,579    | )                                          |   |   | (15,140                                     | )      |   |                                        | (5,455     | ) |   |   | (7,885 | ) |
| Interest expense                                 |   |                                                                   | (79,856    | )      |                                       |   | (22,247    | )                                          |   |   | (7,645                                      | )      |   |                                        | (10,200    | ) |   |   | (2,390 | ) |
|                                             |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |   |   |   |   |   |
| Total Other Expenses                             |   |                                                                   | (439,617   | )      |                                       |   | (40,826    | )                                          |   |   | (22,785                                     | )      |   |                                        | (15,655    | ) |   |   | (10,275 | ) |
|                                             |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |   |   |   |   |   |
| Net Loss for the Period                          |   |                                                                   | (2,109,611 | )      |                                       |   | (207,753   | )                                          |   |   | (238,431                                    | )      |   |                                        | (70,689    | ) |   |   | (50,203 | ) |
|                                             |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |   |   |   |   |   |
| Net Loss Per Share – Basic and Diluted     |   |                                                                   |       |   |                                       |   | –    |                                       |   |   | (0.01                                       | )      |   |                                        | –    |   |   |   | – |   |
|                                             |   |                                                                   |       |   |                                       |   |       |                                       |   |   |                                        |   |   |                                        |       |   |   |   |   |   |
| Weighted Average Shares Outstanding              |   |                                                                   |       |   |                                       |   | 45,602,000 |                                       |   |   | 45,153,000                                  |   |   |                                        | 45,569,000 |   |   |   | 45,369,000 |   |

----

|                                                                        |   | For theNine monthsEndedSeptember 30, 2010$ |     |   | For theNine monthsEndedSeptember 30, 2009$ |   |
|-----------------------------------------------------------------------------|--------|--------------------------------------------|----------|--------|--------------------------------------------|--------|
|                                                                        |   |                                       |     |   |                                       |   |
| Operating Activities                                                        |   |                                       |     |   |                                       |   |
|                                                                        |   |                                       |     |   |                                       |   |
| Net loss for the period                                                     |   |                                       | (207,753 | )      |                                       |   | (238,431 | ) |
|                                                                        |   |                                       |     |   |                                       |   |   |   |
| Adjustments to reconcile net loss to net cash used in operating activities: |   |                                       |     |   |                                       |   |   |   |
| Accretion of discounts on convertible debentures                            |   |                                       | 18,579   |   |                                       |   | 15,140 |   |
| Depreciation                                                                |   |                                       | 2,226    |   |                                       |   | 2,753 |   |
| Stock-based compensation                                                    |   |                                       | 2,320    |   |                                       |   | 9,853 |   |
| Foreign exchange gain                                                       |   |                                       | (8,443   | )      |                                       |   | (32,245 | ) |
|                                                                        |   |                                       |     |   |                                       |   |   |   |
| Changes in operating assets and liabilities:                                |   |                                       |     |   |                                       |   |   |   |
| Receivables                                                                 |   |                                       | (6,988   | )      |                                       |   | (6,582 | ) |
| Investment tax credit receivable                                            |   |                                       | –  |   |                                       |   | (14,880 | ) |
| Prepaid expenses                                                            |   |                                       | –  |   |                                       |   | 638 |   |
| Accounts payable and accrued liabilities                                    |   |                                       | (11,358  | )      |                                       |   | (17,010 | ) |
| Accrued convertible interest payable                                        |   |                                       | 23,269   |   |                                       |   | 7,645 |   |
|                                                                        |   |                                       |     |   |                                       |   |   |   |
| Net Cash Used In Operating Activities                                       |   |                                       | (188,148 | )      |                                       |   | (273,119 | ) |
|                                                                        |   |                                       |     |   |                                       |   |   |   |
| Financing Activities                                                        |   |                                       |     |   |                                       |   |   |   |
|                                                                        |   |                                       |     |   |                                       |   |   |   |
| Proceeds from convertible debt                                              |   |                                       | 103,790  |   |                                       |   | 250,000 |   |
|                                                                        |   |                                       |     |   |                                       |   |   |   |
| Net Cash Provided by Financing Activities                                   |   |                                       | 103,790  |   |                                       |   | 250,000 |   |
|                                                                        |   |                                       |     |   |                                       |   |   |   |
| Decrease in Cash                                                            |   |                                       | (84,358  | )      |                                       |   | (23,119 | ) |
|                                                                        |   |                                       |     |   |                                       |   |   |   |
| Cash - Beginning of Period                                                  |   |                                       | 117,489  |   |                                       |   | 125,251 |   |
|                                                                        |   |                                       |     |   |                                       |   |   |   |
| Cash - End of Period                                                        |   |                                       | 33,131   |   |                                       |   | 102,132 |   |
|                                                                        |   |                                       |     |   |                                       |   |   |   |
| 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 September 30, 2010 |   |
| Assets: |   |                                                                |   |   |   |   |   |   |   |   |   |   |
| Cash    |   | $                                                                   | 33,131 |   |   |   | – |   |   |   | – |   |   | $ | 33,131 |   |

----

----

|               |   |   |   |   |                     |   |   | September 30, 2010 |   |   | December 31, 2009  |   |
|--------------------|--------|--------|--------|--------|--------------------------|--------|--------|--------------------|--------|--------|--------------------|--------|
|               |   | Cost$  |   |   | AccumulatedAmortization$ |   |   | Net CarryingValue$ |   |   | Net CarryingValue$ |   |
|               |   |   |   |   |                     |   |   |               |   |   |               |   |   |   |   |   |
| Equipment          |   |   | 13,617 |   |                     |   | 9,020  |               |   |   | 4,597              |   |   |   | 5,931 |   |
| Computer equipment |   |   | 3,283  |   |                     |   | 2,507  |               |   |   | 776                |   |   |   | 1,001 |   |
| Office furniture   |   |   | 9,467  |   |                     |   | 5,692  |               |   |   | 3,775              |   |   |   | 4,442 |   |
|               |   |   |   |   |                     |   |   |               |   |   |               |   |   |   |   |   |
|               |   |   | 26,367 |   |                     |   | 17,219 |               |   |   | 9,148              |   |   |   | 11,374 |   |

----

| 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 September 30, 2010, the carrying values of the convertible debenture and accrued convertible interest payable thereon were $33,375 and $8,122, 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 September 30, 2010, the carrying values of the convertible debenture and accrued convertible interest thereon were $41,466 and $10,064, 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 September 30, 2010, the carrying value of the convertible debenture and accrued convertible interest thereon were $136,553 and $9,554, 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 September 30, 2010, the carrying values of the convertible debenture and accrued convertible interest thereon were $51,450 and $3,848, 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 US$50,000 ($51,940) 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 US$0.035 per share. The Company recognized the intrinsic value of the embedded beneficial conversion feature of US$7,143 ($7,420) as additional paid-in capital and reduced the carrying value of the convertible debenture to US$42,857 ($44,520). The carrying value will be accreted over the term of the convertible debenture up to its face value of US$50,000. As at September 30, 2010, the carrying value of the convertible debenture was $45,122, after translation into Canadian dollars. The Company can repay any portion of the loan and accrued interest at any time without penalty. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)  | As at September 30, 2010, the Company owes the President of the Company $1,632 (December 31, 2009 - $nil) related to consulting fees, which is included in accounts payable. The amount owing is unsecured, non-interest bearing, and has no specified repayment terms. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)  | 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 September 30, 2010, the Company owed this company $1,906 (December 31, 2009 - $1,906) for payment of expenses on behalf of the Company. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)  | 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 September 30, 2010, the loan payable was $25,725 (December 31, 2009 - $26,275) after translation into Canadian dollars. |
|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| a)  | On February 8, 2010, the Company issued 75,000 shares of common stock at a value of $2,627 as compensation for investor relations and marketing services per the terms of an agreement dated July 1, 2009. This amount was included in common stock to be issued at December 31, 2009. Refer to Note 10(c). |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)  | On January 8, 2010, the Company was to issue 75,000 shares of common stock at a value of $2,320 as compensation for investor relations and marketing services per the agreement described in Note 10(c).  This amount is included in common stock to be issued at September 30, 2010. |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)  | On December 16, 2009, the Company issued 125,000 shares of common stock to a former employee according to the employment agreement referred to in Note 10(a) for services performed for the years ended July 28, 2008 and 2009. As at December 31, 2009, the 375,000 shares purchase warrants that were to have been issued under the agreement were not issued, however, 375,000 shares were issued in error.  At December 31, 2009, the par value of these shares had been recorded as additional paid-in capital and 375,000 of the share purchase warrants have been presented as issued. On February 1, 2010, the Company cancelled the additional 375,000 shares. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                               |   | Number of Warrants |       |   | Weighted Average Exercise Price |   |
|------------------------------------|--------|--------------------|------------|--------|---------------------------------|--------|
|                               |   |               |       |   |                            |   |
| Balance – December 31, 2009  |   |               | 4,624,277  |   |                            | $      | US0.15 |   |
|                               |   |               |       |   |                            |   |   |   |
| Expired                            |   |               | (1,158,085 | )      |                            | $      | US0.29 |   |
|                               |   |               |       |   |                            |   |   |   |
| Balance – September 30, 2010 |   |               | 3,466,192  |   |                            | $      | US0.11 |   |

| Number of Warrants | Exercise Price | Expiry Date      |
|--------------------|----------------|------------------|
|               |           |             |
| 3,278,692          | US$0.11        | February 5, 2011 |
| 187,500            | US$0.07        | July 28, 2011    |
| 3,466,192          |           |             |

| a)  | On July 28, 2006, the Company’s board of directors resolved to issue certain share-based payments to an employee of the Company over a three year period. Under the arrangement, the employee was to be issued 62,500 shares of common stock and 187,500 share purchase warrants, each on July 28, 2006, 2007, 2008, and 2009. The Company issued 62,500 shares on each of March 15, 2007 and August 19, 2008, and issued 125,000 shares on December 16, 2009. On September 12, 2008, the employee resigned and became a consultant to the Company (refer to Note 10(b)). It was mutually agreed that the former employee was entitled to the remaining shares and warrants to be issued under the arrangement. For the year ended December 31, 2009, stock-based compensation of $7,823 (2008 - $33,918) was recorded for the 187,500 warrants earned on July 28, 2009 (2008 – July 28, 2008). |
|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| b)  | On September 15, 2008, the Company entered into a consulting agreement with the former employee in Note 10(a), 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. |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| c)  | 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.  On January 1, 2010, the agreement was extended for twelve months and the Company will issue an additional 75,000 shares.  As at September 30, 2010, the additional shares have not been issued and have been included in common stock to be issued. |
|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| d)  | 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.   At the end of the two year period, the agreement can be renewed for a successive two year period by mutual agreement. |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

| Area          | Filing Number |
|---------------|---------------|
| United States | 6,622,482     |
|          | 7,108,590     |
| Canada        | 2,448,742     |
|          | 2,448,648     |
| Europe        | 02742591.7    |

----

|                                |   |   | $       |   |
|-------------------------------------|--------|--------|---------|--------|
| Sales and marketing expenses        |   |   | 110,000 |   |
| Research and development expenses   |   |   | 80,000  |   |
| General and administrative expenses |   |   | 80,000  |   |
| Total                               |   |   | 270,000 |   |

----

|    |   | 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 September 30, 2010 |   |
| Assets: |   |                                                                     |   |   |   |   |   |   |   |   |   |   |
| Cash    |   | $                                                                        | 33,131 |   |   |   | – |   |   |   | – |   |   | $ | 33,131 |   |

----

----

----

|                                             |   | Three Months EndedSeptember 30, 2010 |    |   | Three Months EndedSeptember 30, 2009 |   |    | Change BetweenThree Month PeriodEndedSeptember 30, 2010andSeptember 30, 2009 |   |
|--------------------------------------------------|--------|--------------------------------------|---------|--------|--------------------------------------|--------|---------|------------------------------------------------------------------------------|--------|
| Revenue                                          |   | $                                    | Nil     |   |                                 | $      | Nil     |                                                                         |   | $ | Nil |   |
| Depreciation                                     |   | $                                    | 792     |   |                                 | $      | 854     |                                                                         |   | $ | 62 |   |
| Foreign exchange loss (gain) loss                |   | $                                    | (8,370  | )      |                                 | $      | (19,779 | )                                                                            |   | $ | 11,409 |   |
| General and administrative                       |   | $                                    | 62,612  |   |                                 | $      | 68,514  |                                                                         |   | $ | (5,902 | ) |
| Research and development                         |   | $                                    | Nil     |   |                                 | $      | (9,661  | )                                                                            |   | $ | 9,661 |   |
| Accretion of discounts on convertible debentures |   | $                                    | (5,455  | )      |                                 | $      | (7,885  | )                                                                            |   | $ | (2,430 | ) |
| Interest expense                                 |   | $                                    | (10,200 | )      |                                 | $      | (2,390  | )                                                                            |   | $ | (7,810 | ) |
| Net (Loss)                                       |   | $                                    | (70,689 | )      |                                 | $      | (50,203 | )                                                                            |   | $ | (20,486 | ) |

|                                             |   | Nine Months EndedSeptember 30, 2010 |     |   | Nine Months EndedSeptember 30, 2009 |   |     | Change BetweenNine Month PeriodEndedSeptember 30, 2010andSeptember 30, 2009 |   |
|--------------------------------------------------|--------|-------------------------------------|----------|--------|-------------------------------------|--------|----------|-----------------------------------------------------------------------------|--------|
| Revenue                                          |   | $                                   | Nil      |   |                                | $      | Nil      |                                                                        |   | $ | Nil |   |
| Depreciation                                     |   | $                                   | 2,226    |   |                                | $      | 2,753    |                                                                        |   | $ | (527 | ) |
| Foreign exchange loss (gain) loss                |   | $                                   | (2,887   | )      |                                | $      | (31,514  | )                                                                           |   | $ | 28,627 |   |
| General and administrative                       |   | $                                   | 163,735  |   |                                | $      | 237,632  |                                                                        |   | $ | (73,897 | ) |
| Research and development                         |   | $                                   | 3,853    |   |                                | $      | 6,775    |                                                                        |   | $ | (2,922 | ) |
| Accretion of discounts on convertible debentures |   | $                                   | (18,579  | )      |                                | $      | (15,140  | )                                                                           |   | $ | 3,439 |   |
| Interest expense                                 |   | $                                   | (22,247  | )      |                                | $      | (7,645   | )                                                                           |   | $ | (14,602 | ) |
| Net (Loss)                                       |   | $                                   | (207,753 | )      |                                | $      | (238,431 | )                                                                           |   | $ | 30,678 |   |

----

|                      |   | AtSeptember 30, 2010 |    |   | AtDecember 31, 2009 |   |
|---------------------------|--------|----------------------|---------|--------|---------------------|--------|
| Current assets            |   | $                    | 63,405  |   |                |   | 140,775 |   |
| Current liabilities       |   |                 | 97,125  |   |                |   | 88,977 |   |
| Working capital (deficit) |   | $                    | (33,720 | )      |                |   | 51,798 |   |

|                                          |   | AtSeptember 30, 2010 |     |   | AtSeptember 30, 2009 |   |
|-----------------------------------------------|--------|----------------------|----------|--------|----------------------|--------|
| Net cash used in operating activities         |   | $                    | (188,148 | )      |                 |   | (273,119 | ) |
| Net cash used in investing activities         |   | Nil                  |     |   | Nil                  |   |
| Net cash provided by financing activities     |   |                 | 103,790  |   |                 |   | 250,000 |   |
| Net increase (decrease) in cash during period |   | $                    | (84,358  | )      |                 |   | (23,119 | ) |

----

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Item 4.  Controls and Procedures.

----

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). |
| (14)           | Code of Ethics                                                                                                                                                                |
| 14.1           | Code of Ethics (incorporated by reference from our Annual Report on Form 10-KSB filed on April 15, 2008).                                                                     |
| (31)           | Section 302 Certifications                                                                                                                                                    |
| 31.1*          | Section 302 Certification of Principal Executive Officer.                                                                                                                     |
| 31.2*          | Section 302 Certification of Principal Financial Officer and Principal Accounting Officer.                                                                                    |
| (32)           | Section 906 Certification                                                                                                                                                     |
| 32.1*          | Section 906 Certification of Principal Executive Officer.                                                                                                                     |
| 32.2*          | Section 906 Certification of Principal Financial Officer and Principal Accounting Officer.                                                                                    |

----

|                                |   | ENVIRONMENTAL CONTROL CORP.                                    |
|-------------------------------------|--------|----------------------------------------------------------------|
|                                |   | (Registrant)                                                   |
|                                |   |                                                           |
| Dated:  November 15, 2010 | By:    | /s/ Albert Hickman                                             |
|                                |   | Albert Hickman                                                 |
|                                |   | President and Chief Executive Officer                          |
|                                |   | (Principal Executive Officer)                                  |
|                                |   |                                                           |
| Dated:  November 15, 2010 | By:    | /s/ Gary Bishop                                                |
|                                |   | Gary Bishop                                                    |
|                                |   | Chief Financial Officer                                        |
|                                |   | (Principal Financial Officer and Principal Accounting Officer) |