----

----

| U.S. SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549  |
|---------------------------------------------------------------------|

| Onteco Corporation                             |
|------------------------------------------------|
| (Name of small business issuer in its charter) |

| Nevada                                                                           |   | 51-0668045                                                   |
|----------------------------------------------------------------------------------|--------|--------------------------------------------------------------|
| (State or other jurisdiction of incorporation or organization)    |   |     (I.R.S. Employer Identification No.) |

| 19495 Biscayne Blvd.Suite 411Aventura, Florida 33180 |
|------------------------------------------------------|
| (Address of principal executive offices)             |

| (305) 932-9795                    |
|-----------------------------------|
| (Issuer’s telephone number) |

| Securities registered pursuant to Section 12(b) of the Act: |   | Name of each exchange on which registered: |
|-------------------------------------------------------------|--------|--------------------------------------------|
| None                                                        |   |                                       |
|                               |   |              |
| Securities registered pursuant to Section 12(g) of the Act: |
| Common Stock, $0.001                                        |   |                                       |
| (Title of Class)                                            |   |                                       |

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

| Class                |   | Outstanding as of  May 23, 2011 |
|----------------------|--------|-------------------------------------------|
| Common Stock, $0.001 |   | 184,390,258                               |

----

----

----

| Part 1.  FINANCIAL INFORMATION         |                                                                                        |   |   |
|---------------------------------------------|---------------------------------------------------------------------------------------------|--------|--------|
|                                        |                                                                                        |   |   |   |
| Item 1.                                     | Financial Statements                                                                        |   |   |   |
|                              |    Consolidated Balance Sheets                                               |   |   | F-2 |   |
|               |    Consolidated Statements of Operations                                     |   |   | F-3 |   |
|                                        |    Consolidated Statements of Cash Flows                                     |   |   | F-4 |   |
|                                        |    Notes to Consolidated Financial Statements                                |   |   | F-6 |   |
|                                        |                                                                                        |   |   |   |   |
| Item 2.                      | Management’s Discussion and Analysis of Financial Condition and Results of Operations |   |   | 6 |   |
|               |                                                                                        |   |   |   |   |
| Item 3.                      | Quantitative and Qualitative Disclosures About Market Risk                                  |   |   | 13 |   |
|               |                                                                                        |   |   |   |   |
| Item 4.                                     | Controls and Procedures                                                                     |   |   | 13 |   |
|                                        |                                                                                        |   |   |   |   |
| Part II.  OTHER INFORMATION            |                                                                                        |   |   |   |
|               |                                                                                        |   |   |   |   |
| Item 1.                      | Legal Proceedings                                                                           |   |   | 16 |   |
|               |                                                                                        |   |   |   |   |
| Item 1A.                                    | Risk Factors                                                                                |   |   | 16 |   |
|                                        |                                                                                        |   |   |   |   |
| Item 2.                           | Unregistered Sales of Equity Securities and Use of Proceeds                                 |   |   | 16 |   |
|                                        |                                                                                        |   |   |   |   |
| Item 3.                      | Defaults Upon Senior Securities                                                             |   |   | 17 |   |
|               |                                                                                        |   |   |   |   |
| Item 4.       | Reserved and Removed                                                                        |   |   | 17 |   |
|                                        |                                                                                        |   |   |   |   |
| Item 5.                           | Other Information                                                                           |   |   | 17 |   |
|               |                                                                                        |   |   |   |   |
| Item 6.            | Exhibits                                                                                    |   |   | 18 |   |
|               |                                                                                        |   |   |   |   |

----

|                                                                      |   | Index  |      |
|---------------------------------------------------------------------------|--------|--------|-----------|
|                                                                      |   |   |      |
|                                                                      |   |   |      |   |
| Consolidated Balance Sheets                                               |   |   | F–2 |   |
|                                                                      |   |   |      |   |
| Consolidated Statements of Operations                                     |   |   | F–3 |   |
|                                                                      |   |   |      |   |
| Consolidated Statements of Cash Flows                                     |   |   | F–4 |   |
|                                                                      |   |   |      |   |
| Consolidated Statements of Stockholders’ Deficit                    |   |   | F–5 |   |
|                                                                      |   |   |      |   |
| Notes to the Consolidated Financial Statements                            |   |   | F–7 |   |
|                                                                      |   |   |      |   |
| Restated Consolidated Balance Sheets                                      |   |   | F-10      |   |
|                                                                      |   |   |      |   |
| Restated Consolidated Statements of Operations                       |   |   | F-11      |   |
|                                                                      |   |   |      |   |
| Restated Consolidated Statements of Cash Flows                       |   |   | F-12      |   |
|                                                                      |   |   |      |   |
| Notes Continued  to the Consolidated Financial Statements  |   |   | F-13      |   |
|                                                                      |   |   |      |   |

----

|                                                                                                                 |   | As ofMarch 31, 2011(unaudited) |      |   | As ofDecember 31, 2010(audited) |   |
|----------------------------------------------------------------------------------------------------------------------|--------|--------------------------------|-----------|--------|---------------------------------|--------|
| ASSETS                                                                                                               |
| CURRENT ASSETS                                                                                                       |   |                           |      |   |                            |   |
|      Cash                                                                                   |   | $                              | 55,558    |   |                            | $      | 62,428 |   |
|      Due from NexPhase Lighting                                                             |   |                           | -         |   |                            |   | 35,150 |   |
|      Project Development Costs                                                              |   |                           | 27,600    |   |                            |   | 27,600 |   |
|      Accounts Receivable                                                                    |   |                           | 6,900     |   |                            |   | - |   |
|      Prepaid Expenses                                                                       |   |                           | 541       |   |                            |   | - |   |
|                 TOTAL CURRENT ASSETS |   |                           | 90,599    |   |                            |   | 125,178 |   |
|                                                                                                                 |   |                           |      |   |                            |   |   |   |
| FIXED ASSETS                                                                                                         |   |                           |      |   |                            |   |   |   |
|      Property and Equipment - Net                                                           |   |                           | 42,098    |   |                            |   | - |   |
|                                                                                                                 |   |                           |      |   |                            |   |   |   |
|                TOTAL FIXED ASSETS         |   |                           | 42,098    |   |                            |   | - |   |
|                                                                                                                 |   |                           |      |   |                            |   |   |   |
| OTHER ASSETS                                                                                                         |   |                           |      |   |                            |   |   |   |
|      Security Deposits                                                                      |   |                           | 11,709    |   |                            |   | - |   |
|      Intellectual Property                                                                  |   |                           | 2,981,107 |   |                            |   | - |   |
|                                                                                                                 |   |                           |      |   |                            |   |   |   |
|                TOTAL OTHER ASSETS         |   |                           | 2,992,816 |   |                            |   | - |   |
|                                                                                                                 |   |                           |      |   |                            |   |   |   |
| TOTAL ASSETS                                                                                                         |   | $                              | 3,125,513 |   |                            | $      | 125,178 |   |

| CURRENT LIABILITIES                                                                                                                                                                                                                                                      |   |   |            |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------------|--------|--------|--------|
|      Accounts Payable                                                                                                                                                                                                                           |   | $      | 3,178           |   |   | $      | 1,942 |   |
|      Accrued Interest                                                                                                                                                                                                                           |   |   | 31,721          |   |   |   | - |   |
|      Accrued Employee Compensation                                                                                                                                                                                                              |   |   | 353,000         |   |   |   | 308,000 |   |
|      Notes Payable – Related Parties                                                                                                                                                                                                      |   |   | 605,249         |   |   |   | 224,855 |   |
|      Notes Payable – Third Parties                                                                                                                                                                                                        |   |   | 224,090         |   |   |   | 57,100 |   |
|                                                                                                                                                                                                                                                                     |   |   |            |   |   |   |   |   |
|                TOTAL CURRENT LIABILITIES                                                                                                                                                      |   |   | 1,217,238       |   |   |   | 591,897 |   |
|                                                                                                                                                                                                                                                                     |   |   |            |   |   |   |   |   |
| OTHER LIABILITIES                                                                                                                                                                                                                                                        |   |   | -               |   |   |   | - |   |
|                                                                                                                                                                                                                                                                     |   |   |            |   |   |   |   |   |
|                TOTAL LIABILITIES                                                                                                                                                              |   |   | 1,217,238       |   |   |   | 591,897 |   |
|                                                                                                                                                                                                                                                                     |   |   |            |   |   |   |   |   |
| STOCKHOLDERS’ DEFICIT                                                                                                                                                                                                                                              |   |   |            |   |   |   |   |   |
|       Preferred Stock, $0.001 Par Value: 100,000,000 Shares Authorized;     Zero Shares Issued and Outstanding At December 31, 2010 and 2009,     Respectively                           |   |   |     - |   |   |   |     - |   |
|      Common Stock, $0.001 Par Values; 750,000,000 Shares and     75,000,000 Shares Authorized; 182,511,236 and 69,990,258     Issued and Outstanding at March 31, 2011 and 2010, Respectively |   |   |   182,755  |   |   |   |   116,890 |   |
|      Paid in Capital                                                                                                                                                                                                                            |   |   | 2,828,407       |   |   |   | 194,132 |   |
|      Treasury Stock                                                                                                                                                                                                                             |   |   | (61,000         | )      |   |   | - |   |
|      Accumulated Deficit                                                                                                                                                                                                                        |   |   | (1,041,887      | )      |   |   | (777,741 | ) |
|                                                                                                                                                                                                                                                                     |   |   |            |   |   |   |   |   |
|                TOTAL STOCKHOLDERS’ DEFICIT                                                                                                                                              |   |   | 1,908,275       |   |   |   | (466,719 | ) |
|                                                                                                                                                                                                                                                                     |   |   |            |   |   |   |   |   |
|                TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                                                                              |   | $      | 3,125,513       |   |   | $      | 125,178 |   |

----

|                                                                                                     |   |   For The ThreeMonths EndedMarch 31, 2011(unaudited) |        |   |    For The ThreeMonths EndedMarch 31, 2010(unaudited) |   |       |  CumulativeResults FromDecember 31, 2007(date of inception) toMarch 31, 2011(unaudited) |   |
|----------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|-------------|--------|----------------------------------------------------------------------|--------|------------|----------------------------------------------------------------------------------------------|--------|
| REVENUE                                                                                                  |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |
|      Total Revenue                                                              |   | $                                                              | 45,166      |   |                                                                 | $      | -          |                                                                                         |   | $ | 45,166 |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
| COSTS OF GOODS                                                                                           |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
|      Total Costs of Goods                                                       |   |                                                           | 10,306      |   |                                                                 |   | -          |                                                                                         |   |   | 10,306 |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
| GROSS PROFIT                                                                                             |   |                                                           | 34,860      |   |                                                                 |   | -          |                                                                                         |   |   | 34,860 |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
| EXPENSES                                                                                                 |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
|      Professional Expenses                                                      |   |                                                           | 36,555      |   |                                                                 |   | 5,000      |                                                                                         |   |   | 135,507 |   |
|      General and Admin Expenses                                                 |   |                                                           | 30,299      |   |                                                                 |   | -          |                                                                                         |   |   | 48,908 |   |
|      Stock-Based Compensation                                                   |   |                                                           | -           |   |                                                                 |   | 107,555    |                                                                                         |   |   | 290,055 |   |
|      Investor Relations                                                         |   |                                                           | 54,178      |   |                                                                 |   | -          |                                                                                         |   |   | 54,178 |   |
|      Occupancy                                                                  |   |                                                           | 15,018      |   |                                                                 |   | -          |                                                                                         |   |   | 20,320 |   |
|      Executive Compensation                                                     |   |                                                           | 41,500      |   |                                                                 |   | -          |                                                                                         |   |   | 41,500 |   |
|      Staff Compensation                                                         |   |                                                           | 92,750      |   |                                                                 |   | 49,000     |                                                                                         |   |   | 442,750 |   |
| Total Expenses                                                                                           |   |                                                           | 270,300     |   |                                                                 |   | 171,555    |                                                                                         |   |   | 1,033,218 |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
|                OPERATING LOSS |   |                                                           | 235,440     |   |                                                                 |   | 171,555    |                                                                                         |   |   | 998,358 |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
| OTHER EXPENSES                                                                                           |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
|      Loss on Disposition of Asset                                               |   |                                                           | -           |   |                                                                 |   | 567        |                                                                                         |   |   | 567 |   |
|      Write-off Amount Due from Others                                           |   |                                                           | -           |   |                                                                 |   | -          |                                                                                         |   |   | 1,000 |   |
|      Depreciation                                                               |   |                                                           | 2,415       |   |                                                                 |   | -          |                                                                                         |   |   | 2,415 |   |
|      Interest Expense                                                           |   |                                                           | 26,292      |   |                                                                 |   | --         |                                                                                         |   |   | 39,547 |   |
| Total Other Expenses                                                                                     |   |                                                           | 28,707      |   |                                                                 |   | 567        |                                                                                         |   |   | 43,529 |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
| NET LOSS BEFORE PROVISION FOR INCOME TAXES                                                               |   |                                                           | 264,147     |   |                                                                 |   | 172,122    |                                                                                         |   |   | 1,041,887 |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
| PROVISION FOR INCOME TAXES                                                                               |   |                                                           | -           |   |                                                                 |   | -          |                                                                                         |   |   | - |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
| NET LOSS                                                                                                 |   | $                                                              | 264,147     |   |                                                                 | $      | 172,122    |                                                                                         |   | $ | 1,041,887 |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
| Basic Loss Per Share                                                                                     |   | $                                                              | 0.02        |   |                                                                 | $      | 0.01       |                                                                                         |   |   |   |   |
| Fully Diluted Loss Per Share                                                                             |   | $                                                              | 0.01        |   |                                                                 | $      | 0.01       |                                                                                         |   |   |   |   |
|                                                                                                     |   |                                                           |        |   |                                                                 |   |       |                                                                                         |   |   |   |   |
| Weighted Average Number of Common Shares                                                                 |   |                                                           | 156,781,474 |   |                                                                 |   | 21,041,821 |                                                                                         |   |   |   |   |
| Fully Diluted Weighted Average Number of Common Shares                                                   |   |                                                           | 156,781,474 |   |                                                                 |   | 21,041,821 |                                                                                         |   |   |   |   |

----

|                                                                                                                               |   |   For The ThreeMonths EndedMarch 31, 2011(unaudited) |     |   |   For The ThreeMonths EndedMarch 31, 2010(unaudited) |   |     | CumulativeResults FromDecember 31, 2007(date of inception) toMarch 31, 2011(unaudited) |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------|----------|--------|----------------------------------------------------------------|--------|----------|----------------------------------------------------------------------------------------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                                               |   |                                                           |     |   |                                                           |   |     |                                                                                   |   |
|                                                                                                                               |   |                                                           |     |   |                                                           |   |     |                                                                                   |   |
|      Net Loss                                                                                             |   | $                                                              | (264,147 | )      |                                                           | $      | (172,122 | )                                                                                      |   | $ | (1,041,887 | ) |
|                                                                                                                               |   |                                                           |     |   |                                                           |   |     |                                                                                   |   |   |   |   |
|      Adjustments to Reconcile Net Loss     To Cash Provided (Used) by Operations |   |                                                           |     |   |                                                           |   |     |                                                                                   |   |   |   |   |
|                                                                                                                               |   |                                                           |     |   |                                                           |   |     |                                                                                   |   |   |   |   |
|      Stock-Based Compensation - Consolidated                                                              |   |                                                           | -        |   |                                                           |   | 107,555  |                                                                                   |   |   | 295,605 |   |
|      Stock-Based Compensation – NexPhase                                                            |   |                                                           | -        |   |                                                           |   | -        |                                                                                   |   |   | (5,550 | ) |
|      Write-off Amounts Due from Others                                                                    |   |                                                           | -        |   |                                                           |   | -        |                                                                                   |   |   | - |   |
|      Disposition of Software                                                                              |   |                                                           | -        |   |                                                           |   | 567      |                                                                                   |   |   | 567 |   |
|      Depreciation                                                                                         |   |                                                           | 2,415    |   |                                                           |   | -        |                                                                                   |   |   | 2,415 |   |
|                                                                                                                               |   |                                                           |     |   |                                                           |   |     |                                                                                   |   |   |   |   |
|      Increase (Decrease) in Operating Assets & Liabilities:                                           |   |                                                           |     |   |                                                           |   |     |                                                                                   |   |   |   |   |
|                                                                                                                               |   |                                                           |     |   |                                                           |   |     |                                                                                   |   |   |   |   |
|                Accounts Receivable                      |   |                                                           | (6,900   | )      |                                                           |   | -        |                                                                                   |   |   | (6,900 | ) |
|                Prepaid Insurance                        |   |                                                           | (541     | )      |                                                           |   |     |                                                                                   |   |   | (541 | ) |
|                Due To Onteco                            |   |                                                           | 229,754  |   |                                                           |   | -        |                                                                                   |   |   | 229,754 |   |
|                Due From NexPhase Lighting               |   |                                                           | (222,254 | )      |                                                           |   | -        |                                                                                   |   |   | (257,404 | ) |
|                Accounts Payable                         |   |                                                           | (1,992   | )      |                                                           |   | -        |                                                                                   |   |   | (50 | ) |
|                Accrued Interest                         |   |                                                           | 20,191   |   |                                                           |   | -        |                                                                                   |   |   | 20,191 |   |
|                Accrued Expenses                         |   |                                                           | -        |   |                                                           |   | 64,000   |                                                                                   |   |   | - |   |
|                Sales Tax Payable                        |   |                                                           | 2,678    |   |                                                           |   | -        |                                                                                   |   |   | 2,678 |   |
|                Accrued Employee Compensation            |   |                                                           | 45,000   |   |                                                           |   | -        |                                                                                   |   |   | 353,000 |   |
|                                                                                                                               |   |                                                           |     |   |                                                           |   |     |                                                                                   |   |   |   |   |
| NET CASH USED BY OPERATIONS                                                                                                        |   |                                                           | (195,796 | )      |                                                           |   | -        |                                                                                   |   |   | (408,122 | ) |
|                                                                                                                               |   |                                                           |     |   |                                                           |   |     |                                                                                   |   |   |   |   |
| CASH FLOWS USED IN INVESTING ACTIVITIES                                                                                            |   |                                                           |     |   |                                                           |   |     |                                                                                   |   |   |   |   |
|      Acquisition of Software                                                                              |   |                                                           | -        |   |                                                           |   | -        |                                                                                   |   |   | (567 | ) |
|      Project Development Costs                                                                            |   |                                                           | -        |   |                                                           |   | -        |                                                                                   |   |   | (27,600 | ) |
|      Security Deposits                                                                                    |   |                                                           | (7,589   | )      |                                                           |   | -        |                                                                                   |   |   | (7,589 | ) |
|      Purchase of Office Equipment                                                                         |   |                                                           | (9,954   | )      |                                                           |   | -        |                                                                                   |   |   | (9,954 | ) |
|                                                                                                                               |   |                                                           |     |   |                                                           |   |     |                                                                                   |   |   |   |   |
| NET CASH USED IN INVESTING ACTIVITIES                                                                                              |   |                                                           | (17,543  | )      |                                                           |   | -        |                                                                                   |   |   | (45,710 | ) |

| CASH FLOWS FROM FINANCING ACTIVITIES                                             |   |   |       |   |   |   |    |   |   |
|----------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|---------|--------|--------|
|      Sale of Common Stock                               |   |   | -          |   |   |   | -       |   |   |   | 5,567 |   |
|      Proceeds from Notes Payable                        |   |   | 554,848    |   |   |   | -       |   |   |   | 863,952 |   |
|      Stock Issued to Acquire Subsidiary                 |   |   | 2,700,000  |   |   |   | -       |   |   |   | 2,700,000 |   |
|      Conversion of Notes Payable                        |   |   | -          |   |   |   | -       |   |   |   | (15,400 | ) |
|      Investment in Subsidiary – NexPhase Lighting |   |   | (2,700,000 | )      |   |   | -       |   |   |   | (2,700,000 | ) |
|      Payments on Notes Payable                          |   |   | -          |   |   |   | -       |   |   |   | (11,750 | ) |
|      Common Stock Issued – Note Conversion        |   |   | 17,816     |   |   |   | -       |   |   |   | 33,216 |   |
|      Common Stock Issued – Consulting Agreement   |   |   | 66,325     |   |   |   | -       |   |   |   | 66,325 |   |
|      Common Stock Cancelled – Consulting Services |   |   | (84,000    | )      |   |   | -       |   |   |   | (84,000 | ) |
|      Treasury Stock – Repurchase                  |   |   | (61,000    | )      |   |   | -       |   |   |   | (61,000 | ) |
|      Assignment of Notes Payable                        |   |   | (302,462   | )      |   |   | -       |   |   |   | (302,462 | ) |
|                                                                             |   |   |       |   |   |   |    |   |   |   |   |   |
| NET CASH FROM INVESTING ACTIVITIES                                               |   |   | 191,527    |   |   |   | -       |   |   |   | 494,448 |   |
|                                                                             |   |   |       |   |   |   |    |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH                                                  |   |   | (21,812    | )      |   |   | -       |   |   |   | 40,616 |   |
|                                                                             |   |   |       |   |   |   |    |   |   |   |   |   |
| CASH AT BEGINNING OF PERIOD                                                      |   |   | 77,370     |   |   |   |    |   |   |   | 14,942 |   |
|                                                                             |   |   |       |   |   |   |    |   |   |   |   |   |
| CASH AT END OF PERIOD                                                            |   | $      | 55,558     |   |   | $      | -       |   |   | $ | 55,558 |   |
|                                                                             |   |   |       |   |   |   |    |   |   |   |   |   |
| SUPPLEMENTARY DISCLOSURE OF   CASH FLOW INFORMATION               |   |   |       |   |   |   |    |   |   |   |   |   |
|                                                                             |   |   |       |   |   |   |    |   |   |   |   |   |
|        Interest Paid                          |   | $      | -          |   |   | $      | -       |   |   | $ | - |   |
|        Income Taxes Paid                      |   | $      | -          |   |   | $      | -       |   |   | $ | - |   |
|        Stock-Based Compensation               |   | $      | -          |   |   | $      | 107,555 |   |   | $ | 290,055 |   |

----

|                                                    |   |  CommonStock |              |   |  CommonStock |   |          |  AdditionalPaid In |   |   |   Treasury |   |   | Accumulated During the Development |     |   |  Total Stockholders’ |   |
|---------------------------------------------------------|--------|-------------------|-------------------|--------|-------------------|--------|---------------|-------------------------|--------|--------|----------------------|--------|--------|------------------------------------|----------|--------|---------------------------------|--------|
|                                                    |   | Shares            |              |   | Amount            |   |          | Capital                 |   |   | Stock                |   |   | Stage                              |     |   | Deficit                         |   |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |
| Common Stock Issued Per Court OrderDec. 31, 2007        |   |              | 567,324           |   |              | $      | 567           |                    |   | $      | -                    |   |   | $                                  | -        |   |                            | $      | - |   |   | $ | 567 |   |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Net Loss for the Year EndedDec. 31, 2007                |   |              | -                 |   |              |   | -             |                    |   |   | -                    |   |   |                               | -        |   |                            |   | (225 | ) |   |   | (225 | ) |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Balance, Dec. 31, 2007                                  |   |              | 567,324           |   |              |   | 567           |                    |   |   | -                    |   |   |                               | -        |   |                            |   | (225 | ) |   |   | 342 |   |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Common Stock Issued Per Court OrderJan. 15, 2008        |   |              | 1,000,000         |   |              |   | 1,000         |                    |   |   | -                    |   |   |                               | -        |   |                            |   | - |   |   |   | 1,000 |   |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Common Stock Issued For CashFeb. 4, 2008                |   |              | 4,000,000         |   |              |   | 4,000         |                    |   |   | -                    |   |   |                               | -        |   |                            |   | - |   |   |   | 4,000 |   |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Net Loss for Year EndedDec. 31, 2008                    |   |              | -                 |   |              |   | -             |                    |   |   | -                    |   |   |                               | -        |   |                            |   | (3,775 | ) |   |   | (3,775 | ) |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Balance, Dec. 31, 2008                                  |   |              | 5,567,324         |   |              |   | 5,567         |                    |   |   | -                    |   |   |                               | -        |   |                            |   | (4,000 | ) |   |   | (3,775 | ) |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Common Stock Issued For WarrantsSept. 22, 2009          |   |              | 28,571,429        |   |              |   | 28,571        |                    |   |   | (28,571              | )      |   |                               | -        |   |                            |   | - |   |   |   | - |   |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Common Stock Issued For CompensationSept. 23, 2009      |   |              | 35,851,505        |   |              |   | 35,852        |                    |   |   | 71,703               |   |   |                               | -        |   |                            |   | - |   |   |   | 107,555 |   |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Net Loss for the Year EndedDec. 31, 2009                |   |              | -                 |   |              |   | -             |                    |   |   | -                    |   |   |                               | -        |   |                            |   | (172,122 | ) |   |   | (172,122 | ) |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Balance, Dec. 31, 2009                                  |   |              | 69,990,258        |   |              |   | 69,990        |                    |   |   | 43,132               |   |   |                               | -        |   |                            |   | (176,122 | ) |   |   | (63,000 | ) |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Common Stock Issued ForConversion of NoteOct. 7, 2010   |   |              |   14,400,000 |   |              |   |   14,400 |                    |   |   |   1,000         |   |   |                               |   - |   |                            |   |   - |   |   |   |   15,400 |   |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Common Stock Issued For CompensationNov. 25, 2010       |   |              | 12,500,000        |   |              |   | 12,500        |                    |   |   | 50,000               |   |   |                               | -        |   |                            |   | - |   |   |   | 62,500 |   |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Common Stock Issued ForConsulting AgreementDec. 1, 2010 |   |              |   4,000,000  |   |              |   |   4,000  |                    |   |   |   20,000        |   |   |                               |   - |   |                            |   |   - |   |   |   |   24,000 |   |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Common Stock Issued ForConsulting AgreementDec. 10 2010 |   |              |   16,000,000 |   |              |   |   16,000 |                    |   |   |   80,000        |   |   |                               |   - |   |                            |   |   - |   |   |   |   96,000 |   |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Net Loss for the Year EndedDec. 31, 2010                |   |              | -                 |   |              |   | -             |                    |   |   | -                    |   |   |                               | -        |   |                            |   | (601,619 | ) |   |   | (601,619 | ) |
|                                                    |   |              |              |   |              |   |          |                    |   |   |                 |   |   |                               |     |   |                            |   |   |   |   |   |   |   |
| Balance, Dec. 31, 2010                                  |   |              | 116,890,258       |   |              | $      | 116,890       |                    |   | $      | 194,132              |   |   | $                                  | -        |   |                            | $      | (777,741 | ) |   | $ | (466,719 | ) |

----

| Common Stock Issued ForAcquisition of Subsidiary – NexPhaseFeb. 14, 2011 |   |   |     67,500,000 |   |   |   |     67,500 |   |   |   |     2,632,500 |   |   |   |     - |   |   |   |     - |   |   |   |     2,700,000 |   |
|--------------------------------------------------------------------------------|--------|--------|-------------------------------|--------|--------|--------|----------------------|--------|--------|--------|-------------------------|--------|--------|--------|-----------------|--------|--------|--------|-----------------|--------|--------|--------|-------------------------|--------|
|                                                                           |   |   |                          |   |   |   |                 |   |   |   |                    |   |   |   |            |   |   |   |            |   |   |   |                    |   |
| Common Stock Issued ForConversion of NoteFeb. 25, 2011                         |   |   |     1,315,790       |   |   |   |     1,316  |   |   |   |     -         |   |   |   |     - |   |   |   |     - |   |   |   |     1,316     |   |
|                                                                           |   |   |                          |   |   |   |                 |   |   |   |                    |   |   |   |            |   |   |   |            |   |   |   |                    |   |
|  Common Stock Issued ForConversion of NoteMar. 10,2011                    |   |   |     4,000,000       |   |   |   |     4,000  |   |   |   |     -         |   |   |   |     - |   |   |   |     - |   |   |   |     4,000     |   |
|                                                                           |   |   |                          |   |   |   |                 |   |   |   |                    |   |   |   |            |   |   |   |            |   |   |   |                    |   |
|  Common Stock Issued ForConsulting ServicesMarch 15, 2011                 |   |   |     1,666,667       |   |   |   |     1,667  |   |   |   |     23,333    |   |   |   |     - |   |   |   |     - |   |   |   |     25,000    |   |
|                                                                           |   |   |                          |   |   |   |                 |   |   |   |                    |   |   |   |            |   |   |   |            |   |   |   |                    |   |
|  Common Stock Issued ForConsulting ServicesMarch 17, 2011                 |   |   |     100,000         |   |   |   |     100    |   |   |   |     1,250     |   |   |   |     - |   |   |   |     - |   |   |   |     1,350     |   |
|                                                                           |   |   |                          |   |   |   |                 |   |   |   |                    |   |   |   |            |   |   |   |            |   |   |   |                    |   |
|  Common Stock Issued ForConversion of NoteMar. 23, 2011                   |   |   |     2,032,521       |   |   |   |     2,033  |   |   |   |     10,467    |   |   |   |     - |   |   |   |     - |   |   |   |     12,500    |   |
|                                                                           |   |   |                          |   |   |   |                 |   |   |   |                    |   |   |   |            |   |   |   |            |   |   |   |                    |   |
|  Common Stock Issued ForConsulting ServicesMarch 23, 2011                 |   |   |     1,000,000       |   |   |   |     1,000  |   |   |   |     11,300    |   |   |   |     - |   |   |   |     - |   |   |   |     12,300    |   |
|                                                                           |   |   |                          |   |   |   |                 |   |   |   |                    |   |   |   |            |   |   |   |            |   |   |   |                    |   |
|  Common Stock Issued ForConsulting ServicesMarch 23, 2011                 |   |   |     1,250,000       |   |   |   |     1,250  |   |   |   |     14,125    |   |   |   |     - |   |   |   |     - |   |   |   |     15,375    |   |
|                                                                           |   |   |                          |   |   |   |                 |   |   |   |                    |   |   |   |            |   |   |   |            |   |   |   |                    |   |
|  Common Stock Issued ForConsulting ServicesMarch 23, 2011                 |   |   |     1,000,000       |   |   |   |     1,000  |   |   |   |     11,300    |   |   |   |     - |   |   |   |     - |   |   |   |     12,300    |   |
|                                                                           |   |   |                          |   |   |   |                 |   |   |   |                    |   |   |   |            |   |   |   |            |   |   |   |                    |   |
|  Common Stock Cancelled ForConsulting ServicesMarch 31, 2011              |   |   | (14,000,000                   | )      |   |   | (14,000              | )      |   |   | (70,000                 | )      |   |   |     - |   |   |   |     - |   |   |   | (84,000                 | )      |
|                                                                           |   |   |                          |   |   |   |                 |   |   |   |                    |   |   |   |            |   |   |   |            |   |   |   |                    |   |
|  Common Stock Re-Purchased d ByNexPhase InvestorsMarch 31, 2011           |   |   | (244,000                      | )      |   |   |     -      |   |   |   |     -         |   |   |   | (61,000         | )      |   |   |     - |   |   |   | (61,000                 | )      |
|                                                                           |   |   |                          |   |   |   |                 |   |   |   |                    |   |   |   |            |   |   |   |            |   |   |   |                    |   |
|  Net Loss for the Quarter EndedMar. 31, 2011                              |   |   |  - -                |   |   |   |   -             |   |   |   |   -                |   |   |   |   -        |   |   |   | (264,147        | )      |   |   | (264,147                | )      |
|                                                                           |   |   |                          |   |   |   |                 |   |   |   |                    |   |   |   |            |   |   |   |            |   |   |   |                    |   |
| Balance, Mar. 31, 2011                                                         |   |   | 182,511,236                   |   |   |   | 182,755              |   |   |   | 2,828,407               |   |   |   | (61,000         | )      |   |   | (1,041,887      | )      |   |   | 1,908,275               |   |

----

| 1.   | Nature of Operations and Continuance of Business |
|----------------|--------------------------------------------------|

| ·   | Effective on February 14, 2011, the Board of Directors of Onteco Corporation and Subsidiary, a Nevada corporation the (“Company”), approved and authorized the execution of a definitive agreement dated February  14, 2011 (the “Agreement”) among the Company, NexPhase Lighting, Inc., a privately held Florida corporation (“NexPhase”)., and the shareholders of NexPhase (the “NexPhase Shareholders”). In accordance with the terms and provisions of the Agreement: (i) the Company acquired from the NexPhase Shareholders an aggregate 55,622,000 shares of common stock of NexPhase representing the total issued and outstanding shares of NexPhase; (ii) in exchange thereof, the Company issued to the NexPhase Shareholders an aggregate 67,500,000 shares of its restricted common stock generally in proportion to the equity holdings of the NexPhase Shareholders; (iii) NexPhase transferred and assigned to the Company all existing material contracts including those related to distribution, licensing and marketing and those dealing with the grant of rights for the use of any and all intellectual property; (iv) the Company assumed all other assets of NexPhase, including licenses, royalty rights, equipment, product designs, marketing and sale materials, logos, trademarks, copyrights and website; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | NexPhase Lighting - Material Contract |
|--------------------|---------------------------------------|

| ·   | NexPhase Lighting - Ingredient Branding and Trademark License Agreement |
|--------------------|-------------------------------------------------------------------------|

| ·   | NexPhase Lighting - Patent |
|--------------------|----------------------------|

----

| ·   | NexPhase Lighting – Intellectual Property Appraisal |
|--------------------|-----------------------------------------------------------|

----

|                                                                                                                 |   | Restated As ofMarch 31, 2011(unaudited) |      |   | As ofMarch 31, 2011(unaudited) |   |      | DifferenceMarch 31, 2011(unaudited) |   |
|----------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------|-----------|--------|--------------------------------|--------|-----------|------------------------------------------|--------|
| ASSETS                                                                                                               |
| CURRENT ASSETS                                                                                                       |   |                                    |      |   |                           |   |      |                                     |   |
|      Cash                                                                                   |   | $                                       | 55,558    |   |                           | $      | 55,558    |                                     |   | $ | - |   |
|      Due from NexPhase Lighting                                                             |   |                                    | -         |   |                           |   | -         |                                     |   |   | - |   |
|      Project Development Costs                                                              |   |                                    | 27,600    |   |                           |   | 27,600    |                                     |   |   | - |   |
|      Accounts Receivable                                                                    |   |                                    | 6,900     |   |                           |   | 6,900     |                                     |   |   | - |   |
|      Prepaid Expenses                                                                       |   |                                    | 541       |   |                           |   | 541       |                                     |   |   | - |   |
|                 TOTAL CURRENT ASSETS |   |                                    | 90,599    |   |                           |   | 90,599    |                                     |   |   | - |   |
|                                                                                                                 |   |                                    |      |   |                           |   |      |                                     |   |   |   |   |
| FIXED ASSETS                                                                                                         |   |                                    |      |   |                           |   |      |                                     |   |   |   |   |
|      Property and Equipment - Net                                                           |   |                                    | 42,098    |   |                           |   | 42,098    |                                     |   |   | - |   |
|                                                                                                                 |   |                                    |      |   |                           |   |      |                                     |   |   |   |   |
|                TOTAL FIXED ASSETS         |   |                                    | 42,098    |   |                           |   | 42,098    |                                     |   |   | - |   |
|                                                                                                                 |   |                                    |      |   |                           |   |      |                                     |   |   |   |   |
| OTHER ASSETS                                                                                                         |   |                                    |      |   |                           |   |      |                                     |   |   |   |   |
|      Security Deposits                                                                      |   |                                    | 11,709    |   |                           |   | 11,709    |                                     |   |   | - |   |
|      Intellectual Property                                                                  |   |                                    | 2,981,107 |   |                           |   | 2,954,146 |                                     |   |   | 26,961 |   |
|                                                                                                                 |   |                                    |      |   |                           |   |      |                                     |   |   |   |   |
|                TOTAL OTHER ASSETS         |   |                                    | 2,992,816 |   |                           |   | 2,965,855 |                                     |   |   | 26,961 |   |
|                                                                                                                 |   |                                    |      |   |                           |   |      |                                     |   |   |   |   |
|                TOTAL ASSETS               |   | $                                       | 3,125,513 |   |                           | $      | 3,098,552 |                                     |   | $ | 26,961 |   |

| CURRENT LIABILITIES                                                                                                                                                                                                                                                      |   |   |           |   |   |   |           |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------|--------|--------|--------|----------------|--------|--------|
|      Accounts Payable                                                                                                                                                                                                                           |   | $      | 3,178          |   |   | $      | 3,178          |   |   | $ | - |   |
|      Accrued Interest                                                                                                                                                                                                                           |   |   | 31,721         |   |   |   | 21,917         |   |   |   | 9,804 |   |
|      Accrued Employee Compensation                                                                                                                                                                                                              |   |   | 353,000        |   |   |   | 353,000        |   |   |   | - |   |
|      Notes Payable – Related Parties                                                                                                                                                                                                      |   |   | 605,249        |   |   |   | 790,005        |   |   |   | (184,756 | ) |
|      Notes Payable – Third Parties                                                                                                                                                                                                        |   |   | 224,090        |   |   |   | 57,100         |   |   |   | 166,990 |   |
|                                                                                                                                                                                                                                                                     |   |   |           |   |   |   |           |   |   |   |   |   |
|                TOTAL CURRENT LIABILITIES                                                                                                                                                      |   |   | 1,217,238      |   |   |   | 1,225,200      |   |   |   | (7,962 | ) |
|                                                                                                                                                                                                                                                                     |   |   |           |   |   |   |           |   |   |   |   |   |
| OTHER LIABILITIES                                                                                                                                                                                                                                                        |   |   | -              |   |   |   |           |   |   |   |   |   |
|                                                                                                                                                                                                                                                                     |   |   |           |   |   |   |           |   |   |   |   |   |
|                TOTAL LIABILITIES                                                                                                                                                              |   |   | 1,217,238      |   |   |   | 1,225,200      |   |   |   | (7,962 | ) |
|                                                                                                                                                                                                                                                                     |   |   |           |   |   |   |           |   |   |   |   |   |
| STOCKHOLDERS’ DEFICIT                                                                                                                                                                                                                                              |   |   |           |   |   |   |           |   |   |   |   |   |
|      Preferred Stock, $0.001 Par Value: 100,000,000 Shares Authorized;     Zero Shares Issued and Outstanding At December 31, 2010 and     2009, Respectively                                 |   |   |   -       |   |   |   |   -       |   |   |   |   - |   |
|      Common Stock, $0.001 Par Values; 750,000,000 Shares and     75,000,000 Shares Authorized; 182,511,236 and 69,990,258     Issued and Outstanding at March 31, 2011 and 2010, Respectively |   |   |   182,755 |   |   |   |   184,390 |   |   |   | (1,635 | ) |
|      Paid in Capital                                                                                                                                                                                                                            |   |   | 2,828,407      |   |   |   | 2,826,632      |   |   |   | 1,775 |   |
|      Treasury Stock                                                                                                                                                                                                                             |   |   | (61,000        | )      |   |   | -              |   |   |   | (61,000 | ) |
|      Accumulated Deficit                                                                                                                                                                                                                        |   |   | (1,041,887     | )      |   |   | (1,137,670     | )      |   |   | 95,783 |   |
|                                                                                                                                                                                                                                                                     |   |   |           |   |   |   |           |   |   |   |   |   |
|                TOTAL STOCKHOLDERS’ DEFICIT                                                                                                                                              |   |   | 1,908,275      |   |   |   | (1,873,352     | )      |   |   | 34,923 |   |
|                                                                                                                                                                                                                                                                     |   |   |           |   |   |   |           |   |   |   |   |   |
|                TOTAL LIABILITIES AND                 STOCKHOLDERS’ DEFICIT                         |   | $      | 3,125,513      |   |   | $      | 3,098,552      |   |   | $ | 26,961 |   |

----

|                                                                                                     |   | RestatedFor The ThreeMonths EndedMarch 31, 2011(unaudited) |        |   |  For The ThreeMonths EndedMarch 31, 2011(unaudited) |   |       |   DifferenceMarch 31, 2011(unaudited) |   |
|----------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|-------------|--------|----------------------------------------------------------|--------|------------|------------------------------------------------------|--------|
| REVENUE                                                                                                  |   |                                                       |        |   |                                                     |   |       |                                                 |   |
|      Total Revenue                                                              |   | $                                                          | 45,166      |   |                                                     | $      | 45,166     |                                                 |   | $ | - |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
|  COSTS OF GOODS                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
|      Total Costs of Goods                                                       |   |                                                       | 10,306      |   |                                                     |   | 10,306     |                                                 |   |   | - |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
| GROSS PROFIT                                                                                             |   |                                                       | 34,860      |   |                                                     |   | 34,860     |                                                 |   |   | - |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
| EXPENSES                                                                                                 |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
|      Professional Expenses                                                      |   |                                                       | 36,555      |   |                                                     |   | 31,055     |                                                 |   |   | 5,500 |   |
|      General and Admin Expenses                                                 |   |                                                       | 30,299      |   |                                                     |   | 94,570     |                                                 |   |   | (64,271 | ) |
|      Stock-Based Compensation                                                   |   |                                                       | -           |   |                                                     |   | -          |                                                 |   |   | - |   |
|      Investor Relations                                                         |   |                                                       | 54,178      |   |                                                     |   | -          |                                                 |   |   | 54,178 |   |
|      Occupancy                                                                  |   |                                                       | 15,018      |   |                                                     |   | -          |                                                 |   |   | 15,018 |   |
|      Executive Compensation                                                     |   |                                                       | 41,500      |   |                                                     |   | 41,500     |                                                 |   |   | - |   |
|      Staff Compensation                                                         |   |                                                       | 92,750      |   |                                                     |   | 92,750     |                                                 |   |   | - |   |
| Total Expenses                                                                                           |   |                                                       | 270,300     |   |                                                     |   | 259,875    |                                                 |   |   | 10,425 |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
|                OPERATING LOSS |   |                                                       | 235,440     |   |                                                     |   | 225,015    |                                                 |   |   | 10,425 |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
| OTHER EXPENSES                                                                                           |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
|      Loss on Disposition of Asset                                               |   |                                                       | -           |   |                                                     |   | -          |                                                 |   |   | - |   |
|      Write-off Amount Due from Others                                           |   |                                                       | -           |   |                                                     |   | -          |                                                 |   |   | - |   |
|      Depreciation                                                               |   |                                                       | 2,415       |   |                                                     |   | 2,415      |                                                 |   |   | - |   |
|      Interest Expense                                                           |   |                                                       | 26,292      |   |                                                     |   | 10,388     |                                                 |   |   | 15,904 |   |
| Total Other Expenses                                                                                     |   |                                                       | 28,707      |   |                                                     |   | 12,803     |                                                 |   |   | 15,904 |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
| NET LOSS BEFORE PROVISION FOR INCOME TAXES                                                               |   |                                                       | 264,147     |   |                                                     |   | 237,818    |                                                 |   |   | 25,519 |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
| PROVISION FOR INCOME TAXES                                                                               |   |                                                       | -           |   |                                                     |   | -          |                                                 |   |   |   |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
| NET LOSS                                                                                                 |   | $                                                          | 264,147     |   |                                                     | $      | 237,818    |                                                 |   |   | 25,519 |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
| Basic Loss Per Share                                                                                     |   | $                                                          | 0.02        |   |                                                     | $      | 0.02       |                                                 |   |   | - |   |
| Fully Diluted Loss Per Share                                                                             |   | $                                                          | 0.01        |   |                                                     | $      | 0.01       |                                                 |   |   | - |   |
|                                                                                                     |   |                                                       |        |   |                                                     |   |       |                                                 |   |   |   |   |
| Weighted Average Number of Common Shares                                                                 |   |                                                       | 156,781,474 |   |                                                     |   | 76,396,833 |                                                 |   |   | 60,718,686 |   |
| Fully Diluted Weighted Average Number of Common Shares                                                   |   |                                                       | 156,781,474 |   |                                                     |   | 94,359,012 |                                                 |   |   | 78,680,865 |   |

----

|                                                                                                                               |   | RestatedFor The ThreeMonths EndedMarch 31, 2011(unaudited) |     |   |  For The ThreeMonths EndedMarch 31, 2011(unaudited) |   |     |   DifferenceMarch 31, 2011(unaudited) |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------------|----------|--------|----------------------------------------------------------|--------|----------|------------------------------------------------------|--------|
| CASH FLOWS FROM OPERATING ACTIVITIES                                                                                               |   |                                                       |     |   |                                                     |   |     |                                                 |   |
|                                                                                                                               |   |                                                       |     |   |                                                     |   |     |                                                 |   |
|      Net Loss                                                                                             |   | $                                                          | (264,147 | )      |                                                     | $      | (237,818 | )                                                    |   | $ | (26,329 | ) |
|                                                                                                                               |   |                                                       |     |   |                                                     |   |     |                                                 |   |   |   |   |
|      Adjustments to Reconcile Net Loss     To Cash Provided (Used) by Operations |   |                                                       |     |   |                                                     |   |     |                                                 |   |   |   |   |
|                                                                                                                               |   |                                                       |     |   |                                                     |   |     |                                                 |   |   |   |   |
|      Stock-Based Compensation - Consolidated                                                              |   |                                                       | -        |   |                                                     |   | -        |                                                 |   |   | - |   |
|      Stock-Based Compensation – NexPhase                                                            |   |                                                       | -        |   |                                                     |   | -        |                                                 |   |   | - |   |
|      Write-off Amounts Due from Others                                                                    |   |                                                       | -        |   |                                                     |   | -        |                                                 |   |   | - |   |
|      Disposition of Software                                                                              |   |                                                       | -        |   |                                                     |   | -        |                                                 |   |   | - |   |
|      Depreciation                                                                                         |   |                                                       | 2,415    |   |                                                     |   | 2,415    |                                                 |   |   | - |   |
|                                                                                                                               |   |                                                       |     |   |                                                     |   |     |                                                 |   |   |   |   |
|      Increase (Decrease) in Operating Assets & Liabilities:                                           |   |                                                       |     |   |                                                     |   |     |                                                 |   |   |   |   |
|                                                                                                                               |   |                                                       |     |   |                                                     |   |     |                                                 |   |   |   |   |
|                Accounts Receivable                      |   |                                                       | (6,900   | )      |                                                     |   | (6,900   | )                                                    |   |   | - |   |
|                Prepaid Insurance                        |   |                                                       | (541     | )      |                                                     |   | (541     | )                                                    |   |   | - |   |
|                Due To Onteco                            |   |                                                       | 229,754  |   |                                                     |   | -        |                                                 |   |   | 229,754 |   |
|                Due From NexPhase Lighting               |   |                                                       | (222,254 | )      |                                                     |   | (52,500  | )                                                    |   |   | (169,754 | ) |
|                Accounts Payable                         |   |                                                       | (1,992   | )      |                                                     |   | (1,991   | )                                                    |   |   | - |   |
|                Accrued Interest                         |   |                                                       | 20,191   |   |                                                     |   | 10,388   |                                                 |   |   | 9,803 |   |
|                Accrued Expenses                         |   |                                                       | -        |   |                                                     |   | -        |                                                 |   |   | - |   |
|                Sales Tax Payable                        |   |                                                       | 2,678    |   |                                                     |   | 2,678    |                                                 |   |   | - |   |
|                Accrued Employee Compensation            |   |                                                       | 45,000   |   |                                                     |   | 45,000   |                                                 |   |   | - |   |
|                                                                                                                               |   |                                                       |     |   |                                                     |   |     |                                                 |   |   |   |   |
| NET CASH USED BY OPERATIONS                                                                                                        |   |                                                       | (195,796 | )      |                                                     |   | (239,269 | )                                                    |   |   | (43473 | ) |
|                                                                                                                               |   |                                                       |     |   |                                                     |   |     |                                                 |   |   |   |   |
| CASH FLOWS USED IN INVESTING ACTIVITIES                                                                                            |   |                                                       |     |   |                                                     |   |     |                                                 |   |   |   |   |
|      Acquisition of Software                                                                              |   |                                                       | -        |   |                                                     |   | -        |                                                 |   |   | - |   |
|      Project Development Costs                                                                            |   |                                                       | -        |   |                                                     |   | -        |                                                 |   |   | - |   |
|      Security Deposits                                                                                    |   |                                                       | (7,589   | )      |                                                     |   | (7,589   | )                                                    |   |   | - |   |
|      Purchase of Office Equipment                                                                         |   |                                                       | (9,954   | )      |                                                     |   | (9,954   | )                                                    |   |   | - |   |
|                                                                                                                               |   |                                                       |     |   |                                                     |   |     |                                                 |   |   |   |   |
| NET CASH USED IN INVESTING ACTIVITIES                                                                                              |   |                                                       | (17,543  | )      |                                                     |   | (17,543  | )                                                    |   |   | - |   |
|                                                                                                                               |   |                                                       |     |   |                                                     |   |     |                                                 |   |   |   |   |

| CASH FLOWS FROM FINANCING ACTIVITIES                                             |   |   |       |   |   |   |       |   |   |
|----------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|      Sale of Common Stock                               |   |   | -          |   |   |   | -          |   |   |   | - |   |
|      Proceeds from Notes Payable                        |   |   | 554,848    |   |   |   | 235,000    |   |   |   | 312,384 |   |
|      Stock Issued to Acquire Subsidiary                 |   |   | 2,700,000  |   |   |   | 2,700,000  |   |   |   | - |   |
|      Conversion of Notes Payable                        |   |   | -          |   |   |   | -          |   |   |   | - |   |
|      Investment in Subsidiary – NexPhase Lighting |   |   | (2,700,000 | )      |   |   | (2,700,000 | )      |   |   | - |   |
|      Payments on Notes Payable                          |   |   | -          |   |   |   | -          |   |   |   |   |   |
|      Common Stock Issued – Note Conversion        |   |   | 17,816     |   |   |   | -          |   |   |   | 17,816 |   |
|      Common Stock Issued – Consulting Agreement   |   |   | 66,325     |   |   |   | -          |   |   |   | 66,325 |   |
|      Common Stock Cancelled – Consulting Services |   |   | (84,000    | )      |   |   | -          |   |   |   | (84,000 | ) |
|      Treasury Stock – Repurchase                  |   |   | (61,000    | )      |   |   | -          |   |   |   | (61,000 | ) |
|      Assignment of Notes Payable                        |   |   | (302,462   | )      |   |   | -          |   |   |   | (302,462 | ) |
|                                                                             |   |   |       |   |   |   |       |   |   |   |   |   |
| NET CASH FROM INVESTING ACTIVITIES                                               |   |   | 191,527    |   |   |   | 235,000    |   |   |   | (50,937 | ) |
|                                                                             |   |   |       |   |   |   |       |   |   |   |   |   |
| NET INCREASE (DECREASE) IN CASH                                                  |   |   | (21,812    | )      |   |   | (21,812    | )      |   |   | - |   |
|                                                                             |   |   |       |   |   |   |       |   |   |   |   |   |
| CASH AT BEGINNING OF PERIOD                                                      |   |   | 77,370     |   |   |   | 77,370     |   |   |   | - |   |
|                                                                             |   |   |       |   |   |   |       |   |   |   |   |   |
| CASH AT END OF PERIOD                                                            |   | $      | 55,558     |   |   | $      | 55,558     |   |   | $ | - |   |
|                                                                             |   |   |       |   |   |   |       |   |   |   |   |   |
| SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFO.                                      |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                                             |   |   |       |   |   |   |       |   |   |   |   |   |
|        Interest Paid                          |   | $      | -          |   |   | $      | -          |   |   | $ | - |   |
|        Income Taxes Paid                      |   | $      | -          |   |   | $      | -          |   |   | $ | - |   |
|        Stock-Based Compensation               |   | $      | -          |   |   | $      | -          |   |   | $ | - |   |

----

----

----

----

| 1.   | A lack of  observable market price because of the minimal volume of shares that had been traded on any independent market since inception of the Company, |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | The volatility of  the market price due to the limited marketability of the shares, |
|----------------|-----------------------------------------------------------------------------------------------|

| 3.   | The number of shares being issued compared to the number of shares of common stock outstanding prior to the stock issuance, |
|----------------|-----------------------------------------------------------------------------------------------------------------------------|

| 4.   | The unregistered status of the shares which limits the marketability of the shares, |
|----------------|-------------------------------------------------------------------------------------|

| 5.   | The fact that issuance of the shares may not change who is in control of the Company, and |
|----------------|-------------------------------------------------------------------------------------------|

| 6.   | The estimated value of the services provided. |
|----------------|-----------------------------------------------|

----

| 2.   | Project Development Cost |
|----------------|--------------------------|

| 3.   | Notes Payable – Related Parties – Onteco |
|----------------|------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | 2010   |   |   | 2009   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| · On February 10, 2010 the Company entered into a convertible promissory note with a web designer for services rendered in the amount of $3,150. Terms include bonus interest of $315, the note is payable on demand and has no stated interest rate or due date. On January 3, 2011 the parties amended the terms and conditions of the promissory note as follows: The “Note Conversion Price” shall be adjusted from $0.03 to the par value    of the common stock, or $0.001 per share representing 3,465,000 unregistered common shares. No payments have been made on this note. |   |   | 2,149  |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| · On August 9, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $5,000. Terms include simple interest at ten percent (10.0%), the note is due on August 9, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.                                                                                                                   |   |   | 5,000  |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| · On August 25, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $4,000. Terms include simple interest at ten percent (10.0%), the note is due on August 25, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.                                                                                                                 |   |   | 4,000  |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| · On September 2, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $20,000. Terms include simple interest at ten percent (10.0%), the note is due on September 2, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.                                                                                                            |   |   | 20,000 |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| · On October 13, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $3,000. Terms include simple interest at ten percent (10.0%), the note is due on October 13, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.                                                                                                               |   |   | 3,000  |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
| · On November 4, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $19,600. Terms include simple interest at ten percent (10.0%), the note is due on November 4, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.                                                                                                              |   |   | 19,600 |   |   |   | - |   |

----

| · On November 8, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $5,500. Terms include simple interest at ten percent (10.0%), the note is due on November 8, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.                                                                           |   |   | 5,500   |   |   |   | -      |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |
| · On November 30, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $9,300. Terms include bonus interest of $930, the note is payable on demand and has no stated interest rate or due date and is convertible at a rate of $0.001 per share or 9,300,000 unregistered common shares. No payments have been made on this note.                                                                                                                                                                                                       |   |   | 9,300   |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |
| · On December 15, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $15,500. Terms include simple interest at ten percent (10.0%), the note is due on December 15, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice.            No payments have been made on this note. |   |   | 15,500  |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |
| · On December 23, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $100,000. Terms include simple interest at ten percent (10.0%), the note is due on December 23, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.                                                                       |   |   | 100,000 |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |
| · On January 10, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $1,000. Terms include simple interest at ten percent (10.0%), the note is due on January 10, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.                                                                           |   |   | 1,000   |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |
| · On February 23, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $21,600. Terms include simple interest at ten percent (10.0%), the note is due on February 23, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.                                                                        |   |   | 21,600  |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |    |   |   |   |   |   |
| · On March 1, 2011 the Company entered into a convertible promissory note assigned from NexPhase in the amount of $60,000. Terms include simple interest at ten percent (10.0%), the note is due on March 1, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.                                                                                 |   |   | 60,000  |   |   |   | -      |   |

----

| · On March 2 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $6,000. Terms includesimple interest at ten percent (10.0%), the note is due on March 2, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.     |   |   | 6,000  |   |   |   | -      |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| · On March 8, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $51,000. Terms include simple interest at ten percent (10.0%), the note is due on March 8, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.  |   |   | 51,000 |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| · On March 10, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $3,000. Terms include simple interest at ten percent (10.0%), the note is due on March 10, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note. |   |   | 3,000  |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| · On March 31, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $5,500. Terms include simple interest at ten percent (10.0%), the note is due on March 31, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note. |   |   | 5,500  |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| · On March 31, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $6,500. Terms include simple interest at ten percent (10.0%), the note is due on March 31, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note. |   |   | 6,500  |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| · On March 31, 2011 the Company entered into a stock repurchase agreement with a NexPhase investor to repurchase 50,000 shares of Common Stock acquired in the NexPhase acquisition. Terms include principal in the amount of $25,000 and premium interest of ten percent (10.0%) ($2,500), the note is due on March 31, 2012.  No payments have been made on this note.                                                                                                                        |   |   | 27,500 |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| · On March 31, 2011 the Company entered into a stock repurchase agreement with a NexPhase investor to repurchase 10,000 shares of Common Stock acquired in the NexPhase acquisition. Terms include principal in the amount of $5,000 and premium interest of ten percent (10.0%) ($500), the note is due on March 31, 2012.  No payments have been made on this note.                                                                                                                           |   |   | 5,500  |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| · On March 31, 2011 the Company entered into a stock repurchase agreement with a NexPhase investor to repurchase 12,000 shares of Common Stock acquired in the NexPhase acquisition. Terms include principal in the amount of $6,000 and premium interest of ten percent (10.0%) ($600), the note is due on March 31, 2012.  No payments have been made on this note.                                                                                                                           |   |   | 6,600  |   |   |   | -      |   |

----

| · On March 31, 2011 the Company entered into a stock repurchase agreement with a NexPhase investor to repurchase 10,000 shares of Common Stock acquired in the NexPhase acquisition. Terms include principal in the amount of $5,000 and premium interest of ten percent (10.0%) ($500), the note is due on March 31, 2012.  No payments have been made on this note.    |   |   | 5,500   |   |   |   | -      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |   |   |
| · On March 31, 2011 the Company entered into a stock repurchase agreement with a NexPhase investor to repurchase 40,000 shares of Common Stock acquired in the NexPhase acquisition. Terms include principal in the amount of $20,000 and premium interest of ten percent (10.0%) ($2,000), the note is due on March 31, 2012.  No payments have been made on this note. |   |   | 22,000  |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                         |   |   |    |   |   |   |   |   |
| Subtotal Notes Payable – Related Parties - Onteco                                                                                                                                                                                                                                                                                                                                      |   | $      | 405,749 |   |   |   | -      |   |

| · On June 21, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $105,000. Terms include simple interest at ten percent (10.0%), the note is due on June 21, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note. On March 8, 2011, the Note was assigned to a Related Party. Thereafter, on March 10, 2011, a portion of the Note in the amount of $4,000 was converted to Common Stock. Thereafter, on March 21, 2011 a second portion of the Note in the amount of $50,000 was assigned to a Related Party. The remaning balance of the Notes Payable in the amount of $51,000 appears in the Notes Payable – Related Parties – Onteco. |   |   | -      |   |   |   | -      |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| · On August 4, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $60,000. Terms include simple interest at ten percent (10.0%), the note is due on August 4, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.            On March 1, 2011, the Note was assigned to Onteco.                                                                                                                                                                                                                                                                                                                     |   |   | -      |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| · On November 1, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $70,000. Terms include simple interest at ten percent (10.0%), the note is due on November 1, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 70,000 |   |   |   | -      |   |

| · On December 1, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $10,000. Terms include simple interest at ten percent (10.0%), the note is due on December 1, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.   |   |   | 10,000 |   |   |   | -      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| · On December 8, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $40,000. Terms include simple interest at ten percent (10.0%), the note is due on December 8, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.   |   |   | 40,000 |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| · On December 23, 2010 the Company entered into a convertible promissory note with an investment firm in the amount of $10,000. Terms include simple interest at ten percent (10.0%), the note is due on December 23, 2011 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note. |   |   | 10,000 |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| · On January 10, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $15,000. Terms include simple interest at ten percent (10.0%), the note is due on January 10, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.   |   |   | 15,000 |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| · On February 7, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $10,000. Terms include simple interest at ten percent (10.0%), the note is due on February 7, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.   |   |   | 10,000 |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| · On February 11, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $12,000. Terms include simple interest at ten percent (10.0%), the note is due on February 11, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note. |   |   | 12,000 |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |
| · On March 2, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $12,500. Terms include simple interest at ten percent (10.0%), the note is due on March 2, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.         |   |   | 12,500 |   |   |   | -      |   |

----

| · On March 11, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $20,000. Terms include simple interest at ten percent (10.0%), the note is due on March 11, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note. |   |   | 20,000  |   |   |   | -      |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |    |   |   |   |   |   |
| Subtotal Notes Payable – Related Parties – NexPhase                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 199,500 |   |   |   | -      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |    |   |   |   |   |   |
| Total Notes Payable – Related Parties                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 605,249 |   |   | $      | -      |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2010   |   |   | 2009   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| · On January 17, 2010 the Company entered into a convertible promissory note with an advisory firm for services rendered in the amount of $59,000. Terms include bonus interest of $5,900, the note is payable on demand and has no stated interest rate or due date and is convertible at a rate of $0.03 per share or 1,771667 unregistered common shares. Total payments of $11,750 have been made on this note.                                                                                      |   | $      | 53,150 |   |   | $      | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| · On February 10, 2010 the Company entered into a convertible promissory note with a project consultant for services rendered in the amount of $7,800. Terms include bonus interest of $780, the note is payable on demand and has no stated interest rate or due date and is convertible at a rate of $0.03 per share or 286,000 unregistered common shares. No payments have been made on this note.                                                                                                   |   |   | 8,580  |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| · On February 10, 2010 the Company entered into a convertible promissory note with an engineering firm for services rendered in the amount of $27,600. Terms include bonus interest of $2,760, the note is payable on demand and has no stated interest rate or due date and is convertible at a rate of $0.03 per share or 1,012,000 unregistered common shares. No payments have been made on this note.                                                                                               |   |   | 30,360 |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| · On June 7, 2010 the Company entered into a convertible promissory note with an investor in the amount of $10,000. The note is payable on demand and has no stated interest rate or due date and is convertible at a rate of $0.03 per share or 333,333 unregistered common shares. No payments have been made on this note.                                                                                                                                                                            |   |   | 10,000 |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| · On July 19, 2010 the Company entered into a convertible promissory note with an investor in the amount of $2,500. The note is payable on demand and has no stated interest rate or due date and is convertible at a rate of $0.03 per share or 83,333 unregistered common shares. No payments have been made on this note.                                                                                                                                                                             |   |   | 2,500  |   |   |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| · On March 1, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $57,000. Terms include simple interest at ten percent (10.0%), the note is due on March 1, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note. |   |   | 57,000 |   |   |   | - |   |

| · On March 1 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $25,000. Terms include simple interest at ten percent (10.0%), the note is due on March 1, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note.    |   |   | 25,000        |   |   |   | -        |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------------|--------|--------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |          |   |   |   |     |   |
| · On March 21, 2011 the Company entered into a convertible promissory note with an investment firm in the amount of $37,500. Terms include simple interest at ten percent (10.0%), the note is due on March 21, 2012 and is convertible at the option of the holder at a price which is the greater of (i) twice the par value of the common stock, or (ii) a seventy-five percent discount to the market closing bid price on the date of the conversion notice. No payments have been made on this note. |   |   |   37,500 |   |   |   |   - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |          |   |   |   |     |   |
| Total - Notes Payable – Third Parties - Onteco                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | $      | 224,090       |   |   |   | -        |   |

----

| 6.   | Executive Compensation Agreement |
|----------------|----------------------------------|

| 7.   | Executive Office Lease |
|----------------|------------------------|

| 8.   | Stockholders’ Deficit and Common Stock |
|----------------|----------------------------------------------|

| ·   | On June 15, 2010, our Board of Directors and shareholders holding a majority of the total issued and outstanding shares of common stock pursuant to written consents in lieu of a meeting approved an amendment to our Articles of Incorporation to increase the authorized capital (the “2010 Amendment”). The 2010 Amendment was filed with the Nevada Secretary of State on July 22, 2010 increasing our authorized capital from 75,000,000 shares of common stock to 350,000,000 shares of common stock, par value $0.001, and 100,000,000 shares of preferred stock, par value $0.001.  As of March 31, 2011 and March 31, 2010, there were a total of 182,511,236 and 69,990,258 common shares issued and outstanding, respectively. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Company’s first and second stock issuances took place pursuant to the Plan of Reorganization confirmed by the Bankruptcy Court:  On December 12, 2007, the Court ordered the distribution of shares in Onteco Corporation and Subsidiary to all general unsecured creditors of Arrin Systems, Inc.  ("Arrin"), with these creditors to receive one share in InfoSpi for each $2.94 of Arrin’s debt which they held. These creditors received an aggregate of 567,324 shares in the Company on December 31, 2007. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | On February 4, 2008 the Company issued a total of 4,000,000 shares of common stock to an Officer and Director in exchange for $4,000 in cash to be used as operating capital for the Company.  The shares were issued at a price of $0.001 per share, which is their par value. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The Court also ordered the distribution of shares and warrants in Onteco Corporation and Subsidiary to all administrative creditors of Arrin, with these creditors to receive one share and five warrants in InfoSpi for each $0.10 of Arrin's administrative debt which they held. On January 15, 2008, these creditors received an aggregate of 1,000,000 common shares in the Company and 5,000,000 warrants. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On November 13, 2009 and effective September 22, 2009, our Board of Directors pursuant to unanimous written consent acknowledged the warrants and authorized the exchange of 5,000,000 warrants and issuance of an aggregate 28,571,429 shares of our common stock at a per share price of $0.001 (par value). |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On October 28, 2009 and effective September 23, 2009, our Board of Directors pursuant to unanimous written consent authorized the issuance of an aggregate 35,851,505 shares of restricted common stock at $0.003 per share in exchange for prior services rendered including, but not limited to, introduction to potential funding arrangements and various strategic partners. Factors considered by the Board in determining the fair value of the 35,851,515 shares of common stock included: |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1.   | A lack of  observable market price because of the minimal volume of shares that had been traded on any independent market since inception of the Company, |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | The large number of shares being issued compared to the number of shares of common stock outstanding prior to the stock issuance, |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------|

| 3.   | The Company’s issuance of  28,571,429 shares for 5,000,000 warrants converted to common stock effective September 22,2009 at an issuance price of $0.001 per share, |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | The unregistered status of the shares which limits the marketability of the shares, |
|----------------|-------------------------------------------------------------------------------------|

| 5.   | The fact that issuance of these shares does not change who is in control of the Company, and |
|----------------|----------------------------------------------------------------------------------------------|

| 6.   | The estimated value of the services provided. |
|----------------|-----------------------------------------------|

| ·   | On October 7, 2010, the Board of Directors approved the issuance of 14,400,000 unregistered common shares in accordance with the convertibility provisions contained in a promissory note dated July 19, 2010 in the amount of $14,000 plus bonus interest. In accordance with the terms of the note, the shares were issued at $0.001 per share. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Effective on November 25, 2010, in accordance with the appointment of Dror Svorai as our sole executive officer, President/Chief Executive Officer, Secretary, Treasurer/Chief Financial Officer, and our sole director, we issued an aggregate 12,500,000 shares of restricted common stock to Svorai at $0.001 per share. The Board of Directors evaluated certain factors regarding the issuance including, but not limited to, the following: (i) the 12,5000,000 shares of common stock are restricted and cannot be resold except under the parameters of Rule 144; (ii) the opportunity for successful new business operations for us based upon the engagement of Svorai and the opportunities and business contacts provided to us through his engagement; and (iii) our inability to monetarily compensate Dror Svorai and recognition of his current and continuous dedication and long-term loyalty to us. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On December 1, 2010, we entered into an agreement (the “FIS Agreement”) with Financial Insights & Solutions Inc. (“FIS”). In accordance with the terms and provisions of the FIS Agreement: (i) FIS shall provide consulting services to us in the form of a senior administrator support for business transactions and coordination of outside legal and accounting services and other corporation matters and general business counsel relating to our overall business; (ii) we shall pay FIS an hourly rate of $175.00 for performance of such services; and (iii) issue to FIS 4,000,000 shares of our restricted common stock. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On December 10, 2010, we entered into a consulting agreement (the “CEC Consulting Agreement”) with Corporate Excellence Consulting LLC (“CEC”). In accordance with the terms and provisions of the CEC Consulting Agreement: (i) CEC shall perform such services in connection with business development and marketing and growth capital funding; and (ii) we shall issue to CEC 16,000,000 shares of our restricted common stock. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On January 18, 2011, our Board of Directors and shareholders holding a majority of the total issued and outstanding shares of common stock pursuant to written consents in lieu of a meeting approved a further amendment to our Articles of Incorporation to increase the authorized capital (the “2011 Amendment”). The 2011 Amendment was filed with the Nevada Secretary of State on January 19, 2011 increasing our authorized capital from 350,000,000 shares of common stock to 750,000,000 shares of common stock, par value $0.001, and 100,000,000 shares of preferred stock, par value $0.001. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Effective on February 14, 2011, the Board of Directors of ONTECO CORPORATION and Subsidiary, a Nevada corporation the (“Company”), approved and authorized the execution of a definitive agreement dated February  14, 2011 (the “Agreement”) among the Company, NexPhase Lighting, Inc., a privately held Florida corporation (“NexPhase”)., and the shareholders of NexPhase (the “NexPhase Shareholders”). In accordance with the terms and provisions of the Agreement: (i) the Company acquired from the NexPhase Shareholders an aggregate 55,622,000 shares of common stock of NexPhase representing the total issued and outstanding shares of NexPhase; (ii) in exchange thereof, the Company issued to the NexPhase Shareholders an aggregate 67,500,000 shares of its restricted common stock generally in proportion to the equity holdings of the NexPhase Shareholders; (iii) NexPhase transferred and assigned to the Company all existing material contracts including those related to distribution, licensing and marketing and those dealing with the grant of rights for the use of any and all intellectual property; (iv) the Company assumed all other assets of NexPhase, including licenses, royalty rights, equipment, product designs, marketing and sale materials, logos, trademarks, copyrights and website; and (v) the Company further assumed all liabilities of NexPhase, including all trade and debt obligations.  Therefore, as of the date of this Current Report, NexPhase has become the wholly-owned subsidiary of the Company. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | On February 25, 2011, $1,316 of the original note in the amount of $3,465 dated February 10, 2010 was converted to 1,315,790shares of Common Stock. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On March 10, 2011, $4,000 of the original note in the amount of $105,000 dated March 8, 2011 was converted to 4,000,000 shares of Common Stock. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On  March 15, 2011, 1,666,667 shares of Common Stock in the amount of $25,000 was issued in exchange for Consulting Services. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------|

| ·   |    On March 17, 2011, 100,000 shares of Common Stock in the amount of $1,350 was issued in exchange for Consulting Services. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |    On March 24, 2011, $12,500 of the original note in the amount of $105,000 dated March 8, 2011 was converted to 2,032,521 shares of Common Stock. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |    On March 23, 2011, 1,000,000 shares of Common Stock in the amount of $12,300 was issued in exchange for Consulting Services. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |    On March 23, 2011, 1,250,000 shares of Common Stock in the amount of $15,375 was issued in exchange for Consulting Services. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |    On March 23, 2011, 1,000,000 shares of Common Stock in the amount of $12,300 was issued in exchange for Consulting Services. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On March 29, 2011, we filed a Certificate of Amendment with the Nevada Secretary of State in order to change our name from “InfoSpi Inc.” to “Onteco Corporation” (the “Name Change”). The Name Change was effective with the Nevada Secretary of State on March 29, 2001 when the Certificate of Amendment was filed. The Name Change was approved by our Board of Directors pursuant to written conent resolutions dated March 15, 2011 and further approved by certain shareholders holding a majority of our total issued and outstanding shares of common stock pursuant to written consent resolutions dated March 16, 2011. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | On  March 31, 2011, the Company agreed with a vendor to cancel 14,000,000 shares of Common Stock in the amount of $ from an original agreement including the issuance 16,000,000 shares. A total 2,000,000 shares were issued in exchange for consulting services. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   |    On March 31, 2011, the Company agreed to re-purchase 244,000 shares of Common Stock in the amount of $67,100 related to five original investors in the NexPhase subsidiary. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 9.   | Income Taxes |
|----------------|--------------|

|                                 |   |   3 Mo. EndedMar. 31, 2011 |     |   | Period From Inception onDec. 31, 2007ThroughMar, 31, 2011 |   |
|--------------------------------------|--------|--------------------------------------|----------|--------|-----------------------------------------------------------|--------|
|                                 |   |                                 |     |   |                                                      |   |
| Net Operating Losses Carried Forward |   | $                                    | 264,147  |   |                                                      | $      | 1,041,887 |   |
| Statutory Tax Rate                   |   |                                 | 37.6     | %      |                                                      |   | 37.6 | % |
| Effective Tax Rate                   |   |                                 | -        |   |                                                      |   | - |   |
| Deferred Tax Asset                   |   | $                                    | 100,000  |   |                                                      | $      | 392,000 |   |
| Valuation Allowance                  |   | $                                    | (100,000 | )      |                                                      | $      | (392,000 | ) |
|                                 |   |                                 |     |   |                                                      |   |   |   |
| Net Deferred Tax Asset               |   | $                                    | -        |   |                                                      | $      | - |   |

| 10.   | Related Party Transactions |
|-----------------|----------------------------|

----

| 11.   | Commitments and Contingencies |
|-----------------|-------------------------------|

| 12.   | Consulting Agreement |
|-----------------|----------------------|

| 13.   | Subsequent Events |
|-----------------|-------------------|

----

----

----

----

----

| STATEMENT OF OPERATIONS                                        |   | Three Month Periods Ended March 31, 2011 and March 31, 2010 |       |   | For the Period from December 29, 2003 (inception) to March 31, 2011 |
|----------------------------------------------------------------|--------|------------------------------------------------------------------|------------|--------|---------------------------------------------------------------------|
|                                                           |   |                                                             |       |   |                                                                |   |   |   |
| Revenue                                                        |   | $                                                                | 45,166     |   |                                                                | $ | -0- |   |   | $ | 45,166 |   |
| Cost of Goods Sold                                             |   |                                                             | 10,306     |   |                                                                |   | -0- |   |   |   | 10,306 |   |
| Gross Profit                                                   |   |                                                             | 34,860     |   |                                                                |   | -0- |   |   |   | 34,860 |   |
|                                                           |   |                                                             |       |   |                                                                |   |   |   |   |   |
| Expenses                                                       |   |                                                             |       |   |                                                                |   |   |   |   |   |
| Professional expenses                                          |   | $                                                                | 36,555     |   |                                                                | $ | 5,000 |   |   | $ | 135,507 |   |
| General and administrative expenses                            |   |                                                             | 30,299     |   |                                                                |   | -0 - |   |   |   | 48,908 |   |
| Stock-Based Compensation                                       |   |                                                             | -0-        |   |                                                                |   | 107,555 |   |   |   | 290,055 |   |
| Investor Relations                                             |   |                                                             | 54,178     |   |                                                                |   | -0 - |   |   |   | 54,178 |   |
| Occupancy                                                      |   |                                                             | 15,018     |   |                                                                |   | -0 - |   |   |   | 15,018 |   |
| Executive Compensation                                         |   |                                                             | 41,500     |   |                                                                |   | -0- |   |   |   | 41,500 |   |
| Staff Compensation                                             |   |                                                             | 92,750     |   |                                                                |   | -0- |   |   |   | 442,750 |   |
| Operating Income (Loss)                                        |   |                                                             | (235,440   | )      |                                                                |   | (171,555 | ) |   |   | (998,358 | ) |
|                                                           |   |                                                             |       |   |                                                                |   |   |   |   |   |
| Other Expenses                                                 |   |                                                             |       |   |                                                                |   |   |   |   |   |
|      Loss on Disposition of Asset     |   | $                                                                | -0-        |   |                                                                | $ | 567 |   |   | $ | 567 |   |
|      Write-off Amount Due from Others |   |                                                             | -0-        |   |                                                                |   | -0- |   |   |   | 1,000 |   |
|      Depreciation                     |   |                                                             | 2,415      |   |                                                                |   | -0- |   |   |   | 2,415 |   |
|      Interest Expense                 |   |                                                             | 16,488     |   |                                                                |   | -0- |   |   |   | 29,743 |   |
| Total Other Expenses                                           |   |                                                             | 28,707     |   |                                                                |   | 567 |   |   |   | 43,529 |   |
|                                                           |   |                                                             |       |   |                                                                |   |   |   |   |   |
| Net Income (Loss)                                              |   |                                                             | (264,147   | )      |                                                                |   | (172,122 | ) |   |   | (1,041,887 | ) |
|                                                           |   |                                                             |       |   |                                                                |   |   |   |   |   |
| BALANCE SHEET DATA                                             |   | March 31, 2011                                                   |       |   | December 31, 2010                                                   |   |   |   |
| Total Assets                                                   |   | $                                                                | 3,125,513  |   |                                                                | $ | 125,178 |   |   |   |
| Total Liabilities                                              |   |                                                             | 1,217,238  |   |                                                                |   | 591,897 |   |   |   |   |   |
| Total Stockholders’ Equity (Deficit)                     |   |                                                             | (1,908,275 | )      |                                                                |   | (466,719 | ) |   |   |

----

----

----

----

----

----

----

| (a)   | The new public accounting firm Randall N. Drake, CPA, P.A. has been engaged to review and or audit our restated financial statements beginning with the quarterly report for period ended September 30, 2009. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | The firm engaged an accounting facilitator to assist with: (a) compiling and maintaining our financial records; (b) assisting the bookkeeping staff with proper recording of transactions; (c) maintaining permanent accounting records and proper backup procedures; and (d) providing continuous monitoring of accounting functions throughout the company. In addition, the facilitator will perform a risk assessment which identifies and analyzes the relevant risks management should address in order to achievement of its objectives. The facilitator will also assist with the preparation of written policies and procedures that will help ensure management directives are carried out. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Our President/Chief Executive Officer is serving as the point of communication between us and the audit firm. Communication between our President/Chief Executive Officer and the audit firm’s engagement partner has been established to ensure that the audit is aware of management’s intent and actions. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

| EXHIBIT NO.                            | DOCUMENT                                                                                                                                                                                                          |
|------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                       |                                                                                                                                                                                                              |
| 3.1                                                        | Articles of Incorporation (1)                                                                                                                                                                                     |
|                                                       |                                                                                                                                                                                                              |
| 3.1.2                                                 | Certificate of Amendment as filed with the Nevada Secretary of State on July 22, 2010.  (2)                                                                                                             |
|                                                       |                                                                                                                                                                                                              |
| 3.1.3                                            | Certificate of Amendment (2) as filed with the Nevada Secretary of State on January 19,, 2011 (3) .                                                                                                               |
|                                                       |                                                                                                                                                                                                              |
| 3.2                                                   | Bylaws (1)                                                                                                                                                                                                        |
|                                                       |                                                                                                                                                                                                              |
| 10.1                                                  | Share Exchange Agreement between InfoSpi  Inc., NexPhase Lighting Inc. and the shareholders of NexPhase Lighting Inc. dated February 14, 2011. (4)                                                      |
|                                                       |                                                                                                                                                                                                              |
| 10.2          | Letter of Intent dated January 20, 2011 between InfoSpi Inc. and NexPhase Lighting Inc. (5)                                                                                                                       |
|                                                       |                                                                                                                                                                                                              |
| 16. 1                                                 | Letter from Cornell, Beale and Leigh, LLCdated December 14, 2010.  (6)                                                                                                                                  |
|                                                       |                                                                                                                                                                                                              |
| 16.2                                                  | Letter from Randall N. Drake, CPA, dated January 5,2011 regarding confirmation of Section 4.02(b)(3). (7)                                                                                                         |
|                                                       |                                                                                                                                                                                                              |
| 31.1                                                  | Certification  of  Chief  Executive   Officer  Pursuant  toRule 13a-14(a) or 15d-14(a) of the Securities Exchange Act.                           |
|                                                       |                                                                                                                                                                                                              |
| 31.2                                             | Certification of Chief Financial Officer Pursuant  to  Rule13a-14(a) or 15d-14(a) of the Securities Exchange Act                                                                              |
|                                                       |                                                                                                                                                                                                              |
| 32.1                                        | Certification  of Chief  Executive  Officer  and Chief Financial Officer Under Section 1350 as Adopted  Pursuant to Section 906 of the Sarbanes-Oxley Act. |
| _________________                                          |                                                                                                                                                                                                              |
| (1)                                                        | Incorporated by reference from the Registration Statement on Form 10 filed with the Securities and Exchange Commission on February 28, 2008.                                                                      |
| (2)                                              | Incorporated by reference from the Current Report on Form 8-K filed with the Securities and Exchange Commission on December 6, 2010.                                                                              |
| (3)                                              | Incorporated by reference from the Current Report on Form 8-K filed with the Securities and Exchange Commission on April 4 , 2011.                                                                                |
| (4)                                              | Incorporated by reference from the Current Report on Form 8-K filed with the Securities and Exchange Commission on February 22 , 2011.                                                                            |
| (5)                                              | Incorporated by reference from the Current Report on Form 8-K filed with the Securities and Exchange Commission on January 24, 2011.                                                                              |
| (6)                                                   | Incorporated by reference from the Current Report on Form 8-K filed with the    Securities and Exchange Commission on December 14, 2010.                                                      |
| (7)                                                        | Incorporated by reference from the Current Report on Form 8-K filed with the Securities and Exchange Commission on January 5, 2011.                                                                               |

----

|                          | ONTECO CORPORATION  |                                 |
|-------------------------------|--------------------------|--------------------------------------|
| Dated: Auguat 22 , 2011  | By:                      | /s/ Dror Svorai                 |   |
|                          |                     | Dror Svorai, Chief Executive Officer |   |
|                          |                     |                                 |   |
|                          |                     |                                 |   |
| Dated: Auguat 22 , 2011       | By:                      | /s/ Dror Svorai                      |   |
|                          |                     | Dror Svorai, Chief Financial Officer |   |
|                          |                     |                                 |   |
|                          |                     |                                 |   |

----