UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


WASHINGTON,
D.C. 20549


_______________




FORM
10-Q


_______________




x
            QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934




For
the quarterly period ended March 31, 2009




o
            TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
      1934





For the transition period from
______ to  ______.




ENERGY
& TECHNOLOGY, CORP.


(Exact
name of registrant as specified in Charter)




DELAWARE
            
            333-143215
            
            26-0198662(State
      or other jurisdiction of
              incorporation
      or organization)
            
            (Commission
      File No.)
            
            (IRS
      Employee Identification No.)





Petroleum Towers,
Suite 530


P.O. Box
52523


Lafayette,
LA 70505


(Address
of Principal Executive Offices)


_______________




(337)
984-2000


(Issuer
Telephone number)


_______________




(337)
988 1777
 (Issuer
Fax number)


_______________




www.engt.com
 www.enrgyNtechnoly.com
 (Issuer
URL)
 _______________




(Former
Name or Former Address if Changed Since Last Report)




Check
whether the issuer (1) has filed all reports required to be filed by Section 13
or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter
period that the issuer was required to file such reports), and (2)has been
subject to such filing requirements for the past 90 days. Yes x  No o
 
 Indicate
by check mark whether the registrant has submitted electronically and posted on
its corporate Web site, if any, every Interactive
Data File required to be submitted and posted pursuant to Rule 405 of Regulation
S-T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files). Yes o No o
  Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting company filer.
 See definition of “accelerated filer” and “large accelerated filer” in
Rule 12b-2 of the Exchange Act (Check one):
  Large
Accelerated Filer o     Accelerated
Filer o     Non-Accelerated
Filer o     Smaller
Reporting Company x
  Indicate
by check mark whether the registrant is a shell company as defined in Rule 12b-2
of the Exchange Act.
 Yes o  No x




State the
number of shares outstanding of each of the issuer’s classes of common equity,
as of May 15 2009: 175,100,000 shares of common stock, including 100,000 shares
non restricted and being traded.










ENERGY
& TECHNOLOGY, CORP.




FORM
10-Q




March
31, 2009




INDEX




PART
I—FINANCIAL INFORMATION




Item
      1.
              Financial
      Statements
              4Item
      2.
              Management’s
      Discussion and Analysis of Financial Condition
              16Item
      3
              Quantitative
      and Qualitative Disclosures About Market Risk
              21Item
      4T.
              Control
      and Procedures
              21
  PART
II—OTHER INFORMATION
  Item
      1
              Legal
      Proceedings
              22Item
      1A
              Risk
      Factors
              22Item
      2.
              Unregistered
      Sales of Equity Securities and Use of Proceeds
              22Item
      3.
              Defaults
      Upon Senior Securities
              22Item
      4.
              Submission
      of Matters to a Vote of Security Holders
              22Item
      5.
              Other
      Information
              22Item
      6.
              Exhibits
      and Reports on Form 8-K
              22


SIGNATURE




2




INTRODUCTORY NOTE





This
Quarterly Report on Form 10-Q contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995 about Energy
& Technology, Corp. (the “Company”) and our subsidiary, Technical
Industries, Inc. (TII), and Energy Pipe, LLC (a variable interest entity), that
are subject to risks and uncertainties.  Forward-looking statements
include information concerning future financial performance, business strategy,
projected plans and objectives.  Statements preceded by, followed by
or that otherwise include the words “anticipates,” “believes,” “estimates,”
“expects,” “intends,” “plans,” “may increase,” “may fluctuate” and similar
expressions of future or conditional verbs such as “will,” “should,” “would,”
and “could” are generally forward-looking in nature and not historical
facts.  Actual results may differ materially from those projected,
implied, anticipated or expected in the forward-looking
statements.  Readers of this quarterly report should not rely solely
on the forward-looking statements and should consider all uncertainties and
risks throughout this report. The statements are representative only as of the
date they are made.  The Company, TII, and Energy Pipe, LLC (sometimes
referred to herein on a consolidated basis as the Company, we, us, or similar
phrasing) undertakes no obligation to update any forward-looking
statement.





These
forward-looking statements, implicitly and explicitly, include the assumptions
underlying the statements and other information with respect to the Company's
beliefs, plans, objectives, goals, expectations, anticipations, estimates,
financial condition, results of operations, future performance and business,
including management's expectations and estimates with respect to revenues,
expenses, return on equity, return on assets, efficiency ratio, asset quality
and other financial data and capital and performance ratios.





Although
the Company believes that the expectations reflected in the forward-looking
statements are reasonable, these statements involve risks and uncertainties that
are subject to change based on various important factors, some of which are
beyond the control of the Company.  The following factors, among
others, could cause the Company's results or financial performance to differ
materially from its goals, plans, objectives, intentions, expectations and other
forward-looking statements:





·
            general
      economic and industry conditions;


·
            our
      capital requirements and dependence on the sale of our equity
      securities;


·
            the
      liquidity of the Company’s common stock will be affected by the lack of a
      trading market;


·
            industry
      competition;


·
            shortages
      in availability of qualified
personnel;


·
            legal
      and financial implications of unexpected catastrophic
    events;


·
            regulatory
      or legislative changes effecting the industries we serve;
    and


·
            reliance
      on, and the ability to attract, key
personnel.





For a
discussion of these and other risks and uncertainties that could cause actual
results to differ from those contained in the forward-looking statements, see
“Risk Factors” in the Company’s S-1 Report filed with the SEC, which is
available on the SEC’s website at www.sec.gov.  All
forward-looking statements are qualified in their entirety by this cautionary
statement, and the Company undertakes no obligation to revise or update this
Quarterly Report on Form 10-Q to reflect events or circumstances after the date
hereof.  New factors emerge from time to time, and it is not possible
for us to predict which factors, if any, will arise.  In addition, the
Company cannot assess the impact of each factor on the Company’s business or the
extent to which any factor, or combination of factors, may cause actual results
to differ materially from those contained in any forward-looking
statements.





3





PART
I.  Financial Information





ITEM
1. Financial Statements







ENERGY
      & TECHNOLOGY, CORP.Consolidated
      Balance SheetsMarch
      31,
                        
                        
                        December
      31,2009
                        
                        
                        2008(Unaudited)
                        
                        
                        (Audited)AssetsCurrent
      AssetsCash
      and Cash Equivalents
                        
                        $
                        592,201
                        
                        
                        $
                        603,275Accounts
      ReceivableTrade,
      Net
                        
                        
                        2,164,228
                        
                        
                        
                        1,684,890Other
                        
                        
                        27,949
                        
                        
                        
                        25,399Inventory
                        
                        
                        7,102,294
                        
                        
                        
                        7,102,294Prepaid
      Expenses
                        
                        
                        49,479
                        
                        
                        
                        73,968Deferred
      Tax Asset
                        
                        
                        -
                        
                        
                        
                        170,622Total
      Current Assets
                        
                        
                        9,936,151
                        
                        
                        
                        9,660,448Property
      and Equipment, Net
                        
                        
                        9,677,230
                        
                        
                        
                        9,755,533Other
      AssetsPatent,
      net
                        
                        
                        530,138
                        
                        
                        
                        537,335Deferred
      IPO Expenses
                        
                        
                        71,346
                        
                        
                        
                        71,346Deposits
                        
                        
                        4,988
                        
                        
                        
                        4,988Other
      Assets
                        
                        
                        28,025
                        
                        
                        
                        17,648Total
      Other Assets
                        
                        
                        634,497
                        
                        
                        
                        631,317Total
      Assets
                        
                        $
                        20,247,878
                        
                        
                        $
                        20,047,298




The
accompanying notes are an integral part of these consolidated financial
statements.







4




ENERGY
      & TECHNOLOGY, CORP.Consolidated
      Balance SheetsMarch
      31,
                        
                        
                        December
      31,2009
                        
                        
                        2008(Unaudited)
                        
                        
                        (Audited)Liabilities
      and Stockholders' EquityCurrent
      LiabilitiesCurrent
      Maturities of Notes Payable
                        
                        $
                        111,210
                        
                        
                        $
                        43,030Accounts
      Payable
                        
                        
                        4,980,466
                        
                        
                        
                        5,407,381Accrued
      Payroll and Payroll Liabilities
                        
                        
                        42,845
                        
                        
                        
                        110,661Accrued
      Rent
                        
                        
                        1,225,000
                        
                        
                        
                        1,187,500Customer
      Deposits
                        
                        
                        551,075
                        
                        
                        
                        551,075Income
      Taxes Payable
                        
                        
                        183,859
                        
                        
                        
                        66,147Accrued
      Liability for Capital Expenditures
                        
                        
                        7,235,717
                        
                        
                        
                        7,235,717Total Current Liabilities
                        
                        
                        14,330,172
                        
                        
                        
                        14,601,511Long-Term
      LiabilitiesNotes
      Payable
                        
                        
                        25,115
                        
                        
                        
                        92,393Deferred
      Taxes Payable
                        
                        
                        1,185,247
                        
                        
                        
                        1,181,929Due
      to Affiliates
                        
                        
                        1,714,983
                        
                        
                        
                        1,711,416Total
      Long-Term Liabilities
                        
                        
                        2,925,345
                        
                        
                        
                        2,985,738Stockholders'
      EquityPreferred
      Stock - $.001 Par Value; 10,000,000 Shares Authorized,None Issued
                        
                        
                        -
                        
                        
                        
                        -Common
      Stock - $.001 Par Value; 250,000,000 Shares Authorized,175,100,000 Shares Issued and Outstanding at March 31, 2009
      andDecember 31, 2008, 74,900,000 Shares Unissued at March 31,
      2009and December 31, 2008
                        
                        
                        175,100
                        
                        
                        
                        175,100Discount
      on Capital Stock
                        
                        
                        (125,000
                        )
                        
                        
                        (125,000
                        )Paid-In
      Capital
                        
                        
                        180,375
                        
                        
                        
                        180,375Retained Earnings
                        
                        
                        2,761,886
                        
                        
                        
                        2,229,574Total
      Stockholders' Equity
                        
                        
                        2,992,361
                        
                        
                        
                        2,460,049Total Liabilities and Stockholders' Equity
                        
                        $
                        20,247,878
                        
                        
                        $
                        20,047,298




The
accompanying notes are an integral part of these consolidated financial
statements.






5




ENERGY
      & TECHNOLOGY, CORP.Consolidated
      Statements of Operations(Unaudited)Three
      Months EndedMarch
      31,2009
                        
                        
                        2008Revenues
                        
                        $
                        2,446,072
                        
                        
                        $
                        1,439,896Cost
      of RevenuesLabor
      and Related Costs
                        
                        
                        371,802
                        
                        
                        
                        191,294Subcontract
      Labor
                        
                        
                        212,265
                        
                        
                        
                        146,800Depreciation
      and Amortization
                        
                        
                        175,697
                        
                        
                        
                        90,194Maintenance
                        
                        
                        73,582
                        
                        
                        
                        55,254Materials
      and Supples
                        
                        
                        54,668
                        
                        
                        
                        22,347Insurance
                        
                        
                        32,224
                        
                        
                        
                        20,090Other
                        
                        
                        212,777
                        
                        
                        
                        29,189Total
      Costs of Revenues
                        
                        
                        1,133,015
                        
                        
                        
                        555,168Gross
      Profit
                        
                        
                        1,313,057
                        
                        
                        
                        884,728Operating
      ExpensesSalaries
      and Wages
                        
                        
                        198,696
                        
                        
                        
                        110,264Professional
      Services
                        
                        
                        70,144
                        
                        
                        
                        43,779Rent
                        
                        
                        67,402
                        
                        
                        
                        58,842Utilities
                        
                        
                        25,200
                        
                        
                        
                        6,295Office
      Supplies and Expenses
                        
                        
                        18,935
                        
                        
                        
                        10,390Other
                        
                        
                        49,423
                        
                        
                        
                        33,465Depreciation
                        
                        
                        36,733
                        
                        
                        
                        17,187Total
      Operating Expenses
                        
                        
                        466,533
                        
                        
                        
                        280,222Income
      from Operations
                        
                        
                        846,524
                        
                        
                        
                        604,506Other
      Income (Expense)Investment
      Income
                        
                        
                        1,258
                        
                        
                        
                        3,424Interest
      Expense
                        
                        
                        (23,818
                        )
                        
                        
                        (23,525
                        )Total
      Other Income (Expense)
                        
                        
                        (22,560
                        )
                        
                        
                        (20,101
                        )Income
      before Income Taxes
                        
                        
                        823,964
                        
                        
                        
                        584,405Provision
      for Income Taxes
                        
                        
                        291,652
                        
                        
                        
                        232,246Net
      Income
                        
                        $
                        532,312
                        
                        
                        $
                        352,159Earnings
      per Share - Basic
                        
                        0.003
                        
                        
                        0.002Earnings
      per Share - Diluted
                        
                        0.003
                        
                        
                        0.002




The
accompanying notes are an integral part of these consolidated financial
statements.






6




ENERGY
      & TECHNOLOGY CORP.Consolidated
      Statements of Changes in Stockholders' Equity(Unaudited)Discount
      on
                                            
                                            
                                            Additional
                                            
                                            
                                            
                                            
                                            
                                            
                                            
                                            
                                            TotalCommon
      Stock
                                            
                                            
                                            Capital
                                            
                                            
                                            Paid-In
                                            
                                            
                                            Retained
                                            
                                            
                                            Stock
                                            
                                            
                                            Stockholders'Shares
                                            
                                            
                                            Amount
                                            
                                            
                                            Stock
                                            
                                            
                                            Capital
                                            
                                            
                                            Earnings
                                            
                                            
                                            Subscriptions
                                            
                                            
                                            EquityBalance
      at January 1, 2008
                                            
                                            
                                            175,000,000
                                              Restricted
                                            
                                            
                                            $
                                            175,000
                                            
                                            
                                            $
                                            (125,000
                                            )
                                            
                                            $
                                            80,475
                                            
                                            
                                            $
                                            770,918
                                            
                                            
                                            $
                                            72,000
                                            
                                            
                                            $
                                            973,393Capital
      Stock Issued
                                            
                                            
                                            100,000
                                            
                                            
                                            
                                            100
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            99,900
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            (72,000
                                            )
                                            
                                            
                                            28,000Net
      Income
                                            
                                            
                                            -
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            352,159
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            352,159Balance
      at March 31, 2008
                                            
                                            
                                            175,100,000
                                            
                                            
                                            $
                                            175,100
                                            
                                            
                                            $
                                            (125,000
                                            )
                                            
                                            $
                                            180,375
                                            
                                            
                                            $
                                            1,123,077
                                            
                                            
                                            $
                                            -
                                            
                                            
                                            $
                                            1,353,552Balance
      at January 1, 2009
                                            
                                            
                                            175,100,000
                                            
                                            
                                            $
                                            175,100
                                            
                                            
                                            $
                                            (125,000
                                            )
                                            
                                            $
                                            180,375
                                            
                                            
                                            $
                                            2,229,574
                                            
                                            
                                            $
                                            -
                                            
                                            
                                            $
                                            2,460,049Net
      Income
                                            
                                            
                                            -
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            532,312
                                            
                                            
                                            
                                            -
                                            
                                            
                                            
                                            532,312Balance
      at March 31, 2009
                                            
                                            
                                            175,100,000
                                            
                                            
                                            $
                                            175,100
                                            
                                            
                                            $
                                            (125,000
                                            )
                                            
                                            $
                                            180,375
                                            
                                            
                                            $
                                            2,761,886
                                            
                                            
                                            $
                                            -
                                            
                                            
                                            $
                                            2,992,361




The
accompanying notes are an integral part of these consolidated financial
statements.




7




ENERGY
      & TECHNOLOGY, CORP.Consolidated
      Statements of Cash Flows(Unaudited)Three
      Months EndedMarch
      31,2009
                        
                        
                        2008Cash
      Flows from Operating ActivitiesNet
      Income
                        
                        $
                        532,312
                        
                        
                        $
                        352,159Adjustments
      to Reconcile Net Income to Net Cash Provided byOperating ActivitiesDepreciation
                        
                        
                        205,234
                        
                        
                        
                        98,665Amortization of
      Patent Costs
                        
                        
                        7,197
                        
                        
                        
                        8,466Deferred Income
      Taxes
                        
                        
                        173,940
                        
                        
                        
                        206,746Changes in Assets and LiabilitiesTrade
      Receivables
                        
                        
                        (479,338
                        )
                        
                        
                        474,793Other
      Receivables
                        
                        
                        (2,550
                        )
                        
                        
                        (4,550
                        )Inventory
                        
                        
                        -
                        
                        
                        
                        (268,128
                        )Prepaid
      Expenses
                        
                        
                        24,489
                        
                        
                        
                        12,328Accounts
      Payable
                        
                        
                        (426,915
                        )
                        
                        
                        (231,047
                        )Accrued
      Payroll and Payroll Liabilities
                        
                        
                        (67,816
                        )
                        
                        
                        55,304Income
      Taxes Payable
                        
                        
                        117,712
                        
                        
                        
                        25,500Accrued
      Rent
                        
                        
                        37,500
                        
                        
                        
                        37,500Net
      Cash Provided by Operating Activities
                        
                        
                        121,765
                        
                        
                        
                        767,736Cash
      Flows from Investing ActivitiesIncrease in Other Assets
                        
                        
                        (10,377
                        )
                        
                        
                        (639
                        )Repayment on Accrued Liability for Capital Expenditures
                        
                        
                        -
                        
                        
                        
                        (47,873
                        )Purchase of Property and Equipment
                        
                        
                        (126,931
                        )
                        
                        
                        (70,317
                        )Net
      Cash Used in Investing Activities
                        
                        
                        (137,308
                        )
                        
                        
                        (118,829
                        )Cash
      Flows from Financing ActivitiesIncrease in Cash Overdraft
                        
                        
                        -
                        
                        
                        
                        40,986Payment of IPO Costs
                        
                        
                        -
                        
                        
                        
                        (8,000
                        )Issuance of Stock/Stock Subscriptions
                        
                        
                        -
                        
                        
                        
                        28,000Borrowings from Affiliates
                        
                        
                        3,567
                        
                        
                        
                        100,957Proceeds from Notes Payable
                        
                        
                        13,046
                        
                        
                        
                        -Principal Repayments on Notes Payable
                        
                        
                        (12,144
                        )
                        
                        
                        (3,753
                        )Net
      Cash Provided by Financing Activities
                        
                        
                        4,469
                        
                        
                        
                        158,190Net
      (Decrease) Increase in Cash and Cash Equivalents
                        
                        
                        (11,074
                        )
                        
                        
                        807,097Cash
      and Cash Equivalents, Beginning of Period
                        
                        
                        603,275
                        
                        
                        
                        437,997Cash
      and Cash Equivalents, End of Period
                        
                        $
                        592,201
                        
                        
                        $
                        1,245,094


The
accompanying notes are an integral part of these consolidated financial
statements.




8








ENERGY
      & TECHNOLOGY, CORP.Consolidated
      Statements of Cash Flows - Continued(Unaudited)Three
      Months EndedMarch
      31,2009
                        
                        
                        2008Supplemental
      Disclosure of Cash Flow InformationCash
      Paid During the Period for Interest
                        
                        $
                        711
                        
                        
                        $
                        418Cash
      Paid During the Period for Income Taxes
                        
                        $
                        -
                        
                        
                        $
                        -








The
accompanying notes are an integral part of these consolidated financial
statements.













9




ENERGY
& TECHNOLOGY, CORP.


NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS.





Note
1.   Organization





Technical
Industries
& Energy, Corp. (the Company) (TIE) was formed November 29, 2006 under the
laws of the State of Delaware in order to acquire companies including Technical
Industries, Inc. (TII).  A Louisiana company established since May 11,
1971.   On that date, the Company issued 125,000,000 shares of
common stock to American Interest, LLC, in exchange for founder services
rendered.  The fair value of these services was considered immaterial,
and no amounts were recognized in the financial statements.  At the
time the shares were issued to American Interest, LLC, TIE had no assets,
operations, or cash flows.  As such, the stock had no value at the
time TIE was established.  The par value was arbitrarily established
in order to comply with the State of Delaware laws.  In order to
reflect the par value of the shares issued, the Company has recognized a
discount on capital stock as a contra-equity account within the equity section
of the consolidated balance sheets.




On
January 3, 2007, the Company entered into a Stock Exchange Agreement and Share
Exchange (the Agreement) whereby the sole shareholder of TII exchanged all of
the outstanding shares of the TII to the Company in exchange for 50,000,000
shares of Company stock.  Accordingly, TII became a wholly-owned
subsidiary of the Company.  The assets acquired and liabilities
assumed were recorded at the carrying value to TII since TII and the Company
were under common control prior to the acquisition.  In accordance
with SFAS No. 141 and APB Opinion No. 16, the financial statements have been
restated as if the transaction had occurred on January 1, 2006.  The
number of shares of common stock outstanding as of December 31, 2006, were
restated to reflect the 50,000,000 shares exchanged for TII.





TII
specializes in the non-destructive testing of vessels, oilfield equipment and
mainly pipe, including ultrasonic testing, utilizing the latest
technologies.  These technologies enable TII to (i) provide detailed
information to customers regarding each pipe tested, and (ii) reach energy
reserves present technology cannot reach without extra cost to the oil and gas
companies.  Because of the intense scrutiny applied to each section of
pipe, TII is able to generate data which allows the pipe to be used in the most
extreme conditions, and has been proven especially useful in deep water drilling
operations in the Gulf of Mexico.





On August
29, 2008, the Company effected a name change from Technical Industries &
Energy Corp. to Energy & Technology, Corp. to better reflect the nature of
the Company’s business.





Note
2.   Acquisition





As
disclosed in Note 1, on January 3, 2007, the Company acquired all of the
outstanding common stock of Technical Industries, Inc, in exchange for
50,000,000 shares of $.001 par value common stock.  The assets and
liabilities assumed, which are summarized in the following paragraph, were
recorded at the carrying value to TII since TII and the Company were under
common control prior to the acquisition.





A summary
of the assets acquired and liabilities assumed in connection with the
acquisition of TII is as follows:




AssetsCash
      and Cash Equivalents
                      
                      $
                      492,752Receivables
                      
                      
                      570,801Prepaid
      Expenses
                      
                      
                      42,555Deferred
      Tax Asset
                      
                      
                      386,319Property
      and Equipment, net
                      
                      
                      1,359,209Capitalized
      Patent Costs
                      
                      
                      517,427Other
      Assets
                      
                      
                      14,988






10






Note
2.   Acquisition (Continued)




LiabilitiesAccounts
      Payable and Accrued Expenses
                      
                      
                      (956,825
                      )Notes
      Payable
                      
                      
                      (47,113
                      )Obligations
      under Capital Leases
                      
                      
                      (10,832
                      )Deferred
      Tax Liability
                      
                      
                      (85,779
                      )Amounts
      due to Affiliates
                      
                      
                      (1,877,693
                      )




Note
3.   Summary of Significant Accounting Policies


Basis of Presentation and Consolidation




The
consolidated financial statements include the accounts of the Company and its
wholly-owned subsidiary, Technical Industries, Inc., and the accounts of Energy
Pipe, LLC (a variable interest entity).  All significant intercompany
balances and transactions have been eliminated.





The
consolidated financial statements reflect all adjustments that are, in the
opinion of management, necessary for a fair presentation of financial
information for the interim periods presented.  These adjustments are
of a normal recurring nature and include appropriate estimated
provisions.




Basis of Accounting


Assets,
liabilities, revenues and expenses are recognized on the accrual basis of
accounting in conformity with accounting principles generally accepted in the
United States of America.





Use
of Estimates


The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect amounts reported in the financial
statements.  Accordingly, actual results could differ from those
estimates due to information that becomes available subsequent to the issuance
of the financial statements or for other reasons.





Revenue
Recognition


Revenue
for inspection services is recognized upon completion of the services
rendered.  Revenue for the sales of pipe is recognized when pipe is
delivered and the customer takes ownership and assumes the risks of loss,
collection of the relevant receivable is probable, persuasive evidence of an
arrangement exists, and the sales price is fixed or determinable.





Trade
Receivables


Trade
accounts receivable are carried at their estimated collectible
amounts.  Trade credit is generally extended on a short-term basis;
thus receivables do not bear interest, although a finance charge may be applied
to amounts past due. Trade accounts receivable are periodically evaluated for
collectibility based on past credit history with customers and their current
financial condition, and are charged against bad debt expense when they are
deemed uncollectible.  Use of this method does not result in a
material difference from the valuation method required by accounting principles
generally accepted in the United States of America.





Inventory


Inventory
is stated at the lower of cost determined by the specific identification method
or market.  At March 31, 2009 and at December 31, 2008, inventory
consisted of drilling pipe available for sale.





Property
and Equipment


Property
and equipment are stated at cost.  Expenditures for property and
equipment and items that substantially increase the useful lives of existing
assets are capitalized at cost and depreciated. Routine expenditures for repairs
and maintenance are expensed as incurred.  The cost and related
accumulated depreciation of property and equipment disposed of are eliminated
from the accounts, and any resulting gain or loss is recognized.





Depreciation
is provided utilizing the straight-line method over the estimated useful lives
of the assets capitalized.




11




Note
3.   Summary of Significant Accounting Policies
(Continued)





Valuation
of Long-Lived Assets


In the
event facts and circumstances indicate that carrying amounts of long-lived
assets may be impaired, the Company evaluates the recoverability of its
long-lived assets using the estimated future undiscounted cash flows associated
with the asset compared to the asset’s carrying amount to determine if a
write-down is required, pursuant to the provisions of SFAS No. 144, Accounting or Disposal of Long-Lived
Assets, and related interpretations.  Any impairment loss is
measured as the difference between the carrying amount and the fair value of the
impaired asset.





Credit
Risk


Financial
instruments that potentially subject the Company to concentrations of credit
risk consist principally of temporary cash investments and trade
receivables.  For the three months ended March 31, 2009, three
customers made up approximately 66% of the Company’s revenues, and approximately
68% of the Company’s receivable balance at March 31, 2009.  For the
three months ended March 31, 2008, two customers made up approximately 74% of
the Company’s revenues for the three months ended March 31, 2008, and
approximately 79% of the Company’s receivable balance at March 31,
2008.





The
Company maintains cash balances at several financial institutions, and
periodically maintains cash in bank accounts in excess of insured
limits.  The Company has not experienced any losses and does not
believe that significant credit risk exists as a result of this
practice.





Advertising


The
Company charges the costs of advertising to expense as incurred.





Cash
Flows


For
purposes of the consolidated statement of cash flows, the Company considers all
highly liquid investments with an original maturity of three months or less to
be cash equivalents.





Income
Taxes


Deferred
income tax assets and liabilities are determined using the liability (or balance
sheet) method.  Under this method, the net deferred tax asset or
liability is determined based on the tax effects of the temporary differences
between the book and tax bases of the various balance sheet assets and
liabilities and gives current recognition to change in tax rates and
laws.





When tax
returns are filed, it is highly certain that some positions taken would be
sustained upon examination by the taxing authorities, while others are subject
to uncertainty about the merits of the position taken or the amount of the
position that would be ultimately sustained.  The benefit of a tax
position is recognized in the financial statements in the period during which,
based on all available evidence, management believes it is more likely than not
that the position will be sustained upon examination, including the resolution
of appeals or litigation processes, if any.





Tax
positions taken are not offset or aggregated with other
positions.  Tax positions that meet the more-likely-than-not
recognition threshold are measured as the largest amount of tax benefit that is
more than 50% likely of being realized upon settlement with the applicable
taxing authority.  The portion of the benefits associated with tax
positions taken that exceeds the amount measured as described above would be
reflected as a liability for unrecognized tax benefits in the consolidated
balance sheet along with any associated interest and penalties that would be
payable to the taxing authorities upon examination.  Interest and
penalties associated with unrecognized tax benefits would be classified as
additional income taxes in the statement of operations









12




Note
3.   Summary of Significant Accounting Policies
(Continued)





Recent Accounting
Pronouncements


In
December 2007, the FSB issued SFAS 141(R), Business
Combinations.  SFAS 141(R) will impact how entities apply the
acquisition method to business combinations.  Significant changes to
how the Company accounts for business combinations under this Statement include
1) the acquisition date will be the date the acquirer obtains control, 2) all
identifiable assets acquired, liabilities assumed, and noncontrolling interests
in the acquiree will be stated at fair value on the acquisition date, 3) assets
or liabilities arising from noncontractual contingencies will be measured at
their acquisition date fair value only if it is more likely than not that they
meet the definition of an asset or liability on the acquisition date, 4)
adjustments subsequently made to the provisional amounts recorded on the
acquisition date will be made retroactively during a measurement period not to
exceed one year, 5) acquisition-related restructuring costs that do not meet the
criteria in SFAS 146, Accounting for Costs Associated with
Exit or Disposal Activities, will be expensed as incurred, transaction
costs will be expensed as incurred, 7) reversals of deferred income tax
valuation allowances and income tax contingencies will be recognized in earnings
subsequent to the measurement period, and 8) the allowance for loan losses of an
acquiree will not be permitted to be recognized by the
acquirer.  Additionally, SFAS No. 141(R) will require additional
disclosures regarding subsequent changes to acquisition-related contingencies,
contingent consideration, noncontrolling interests, acquisition-related
transaction costs, fair values and cash flows not expected to be collected for
acquired loans, and goodwill valuation.





In
December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in
Consolidated Financial Statements (an amendment of ARB No.
51).  This Statement was issued to improve the relevance,
comparability, and transparency of the financial information that a reporting
entity provides in its consolidated financial statements.  This
Statement is effective for fiscal years, and interim periods with those fiscal
years, beginning on or after December 31, 2008.





In March
2008, the FAS issued SFAS No. 161, Disclosures about Derivative
Instruments and Hedging Activities (an amendment of FASB Statement No.
133).  This Statement requires enhanced disclosures about an entity’s
derivative and hedging activities and thereby improves the transparency of
financial reporting.  This Statement is effective for financial
statements issued for fiscal years and interim periods beginning after November
15, 2008, with early adoption encouraged.





In May
2008, the FASB issued SFAS No. 162, The Hierarchy of Generally Accepted
Accounting Principles.  This Statement identifies the sources
of accounting principles and the framework for selecting the principles to be
used in the preparation of financial statements of nongovernmental entities that
are presented in conformity with generally accepted accounting principles in the
United States (the GAAP hierarchy).  This Statement is effective 60
days following the SEC’s approval of the PCAOB amendments to AU Section
411,The Meaning of Present
Fairly in Conformity with Generally Accepted Accounting
Principles.





In
September 2008, the FASB issued FASB Staff Position (FSP) FAS 133-1 and FASB
Interpretation (FIN) 45-4, Disclosures about Credit Derivatives
and Financial Guarantees.  The FSP requires companies that sell
credit derivatives to disclose information that will enable financial statement
users to assess the potential effect of the credit derivatives on the seller’s
financial position, financial performance, and cash flows.  FSP FAS
133-1 and FIN 45-4 is effective for annual periods ending after November 15,
2008.  This pronouncement is not expected to have an effect on the
financial position and results of operations of the Company.




In
February 2008, the FASB issued FSP FAS 140-3, Accounting for Transfers of
Financial Assets and Repurchase Financing Transactions, which provides
guidance on accounting for a transfer of a financial asset and a repurchase
financing.  The FSP presumes that an initial transfer of a financial
asset and a repurchase financing are considered part of the same arrangement
under SFAS No. 140 Accounting
for Transfers and Servicing of Financial Assets and Extinguishments of
Liabilities.  However, if certain criteria are met, the initial
transfer and repurchase shall not be evaluated as a linked transaction and
therefore evaluated separately under SFAS No. 140.  The FSP is
effective for repurchase financing in which the initial transfer is entered in
fiscal years beginning after November 15, 2008. The Company does not anticipate
a material impact on its consolidated financial statements as a result of this
position.





13




Note
3.   Summary of Significant Accounting Policies
(Continued)





Recent
Accounting Pronouncements (Continued)





In April
2008, the FASB issued FSP 142-3 which amends the list of factors an entity
should consider in developing renewal of extension assumptions used in
determining the useful life of recognized intangible assets under SFAS No. 142,
Goodwill and Other
Intangibles.  The new guidance applies to intangible assets
that are acquired individually or with a group of other assets and to intangible
assets acquired in both business combinations and asset
acquisitions.  The FSP is effective for financial statements issued
for fiscal years beginning after December 15, 2008.  The guidance must
be applied prospectively only to intangible assets acquired after the FSP’s
effective date.  This pronouncement is not expected to have an affect
on the financial position and results of operations of the Company.





In April
2009, the FASB issued FSP FAS 115-2 and FSP FAS 124-2 which amend
other-than-temporary impairment guidance in U.S. GAAP for debt securities to
make the guidance more operational and to improve the presentation and
disclosure of other-than-temporary impairments on debt and equity securities in
the financial statements.  These FSP’s are effective for annual
reporting periods ending after June 15, 2009. The Company does not
anticipate a material impact on its consolidated financial statements as a
result of these positions.





In April
2009, the FASB issued FSP FAS 157-4 which provides additional guidance for
estimating fair value in accordance with SFAS No. 157 when the volume and level
of activity for the asset or liability have significantly
decreased.  This FSP emphasizes that even if there has been a
significant decrease in the volume and level of activity for the asset or
liability and regardless of the valuation technique used, the objective of a
fair value measurement remains the same.  The FSP is effective for
annual reporting periods ending after June 15, 2009, and shall be applied
prospectively.  The Company does not anticipate a material impact on
its consolidated financial statements as a result of this position.





Note
4.   Patent





On September
4, 2007, the Company’s chief executive officer was awarded a patent from the
United States Patent and Trademark Office pertaining to their development of
specialized testing procedures for OCTG, Casing, Tubing, Drillpipe, Marine
Risers, and other Oilfield Pipe and Equipment utilized by oil & gas
exploration and production companies.




The
Company’s costs associated with its development of these testing procedures and
application for patent have been capitalized and recognized as an asset in the
Company’s balance sheet, and is being amortized over 20 years.





Note
5.   Accrued Liability for Capital Expenditures





At March
31, 2009, the Company had acquired a significant amount of equipment and other
capital assets for which the Company has recognized a liability for the
outstanding unpaid balance.  The Company intends to finance the
acquisition of these capital assets through a long-term financing
arrangement.  The Company has recognized the outstanding balance
associated with the acquisition of these capital assets as a current
liability.





Note
6.   Commitments





The
Company leases office premises, operating facilities, and equipment under
several operating leases expiring in various years through 2030.  The
Company also leases land for operating purposes on a month to month
basis.





Note
7.   Major Customers





For the
three months ended March 31, 2009, the Company had three customers which
generated revenues in excess of 10% of the Company’s total
revenues.  Revenues for these four customers were approximately 62% of
total revenues, and the total balance due from these three customers at March
31, 2009 was $1,489,761.






14







Note
8.   Related Party Transactions





Included
in due to affiliates at March 31, 2009 and December 31, 2008, is $1,155,336 in
acquisition debts paid by affiliates upon the acquisition of the Company in
1999.  The affiliates maintain a lien on the Company’s accounts
receivable and equipment to secure this loan.  The amounts due to the
affiliates have no set terms of repayment and bear interest at
5.00%.  Interest expense associated with this obligation totaled
$23,107 for both of the three month periods ended March 31, 2009 and
2008.






















15




ITEM
2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS




General





We have a
patented process which can help companies within the energy industry reach deep
energy reserves by using their existing drilling rigs, platforms and equipment,
thus save the customers money.





The
following list highlights a few areas of opportunity to expand the Company's
business:





Increased sales and marketing
effort:We have
grown over the historical period without an aggressive marketing and sales
effort.  Currently, new business is generated from referrals,
technical sessions given to oil and gas and industry related companies, a
website and through the use of a marketing company on a limited
basis.  To date, we have not hired any in-house
salespersons.  Currently, we have one employee whose duties are
focused on sales, marketing, and promotional activities for the
Company.  Management believes revenue can be increased by expanding
the Company's sales force.





Applying for additional patents to
protect proprietary rights:We have recently developed
international patent pending new inspection technology needed in order to reach
deep energy reserves.  Our expandable liners inspection technology
helps the oil and gas companies retrieve a large amount of energy reserves that
cannot be retrieved with current technology.  We have manufactured
several pieces of equipment in-house that have enabled us to successfully serve
the oilfield market.  Due to proprietary infringement risk, we have
discontinued manufacturing the equipment for sale to third
parties.  By securing a patent protecting our proprietary technology,
we could consider manufacturing equipment for sale again, which would open a new
line of revenue.





Introduction of complementary
services:We
are continually adding new services in order to meet customer
demand.  Most recently, we began drilling equipment inspection
services.  Other areas management has identified as potential growth
avenues include vessel inspection and inspection of pipelines in
service.  We are working to acquire pipe threading equipment which
could be attached to the inspection assembly line and provide additional service
for a very low increased cost to our customers.





Geographic expansion in the domestic
and international markets:We currently derive the majority of
revenue from the Houston, Texas market, where many of our clients are
based.  There are several other markets that could be better served,
such as in Louisiana where a new plant in Abbeville, Louisiana is now
operational in order to serve the deep wells in the Gulf of
Mexico.  Other expansions are being considered through the opening of
additional full-service, local plants.  Furthermore, we maintain
relations with sales representatives in the Mexico and Saudi Arabia and the
Middle East markets that could be better utilized if we are able to locally
serve customers.  Lastly, we have Canadian customers that utilize our
services on a limited basis, due to the high cost of shipping heavy
pipes.  To date, we have not had the capital or human resources to
establish plants in these potential markets.





We
continue to seek other companies which can complement our pipe and inspection
business with the goal of securing these businesses through a combination of
cash and stock payments.  All of these expansion plans rely heavily on
raising capital through a public offering of additional stock which would be
used to fund our acquisitions.  Currently, we are in the process of
performing due diligence procedures on two of the companies.





We have a
customer base of approximately 50 accounts, and are continually expanding its
customer base to increase revenue growth.  Currently, we serve
customers that are oil companies, steel mills, material suppliers,drilling companies,
material rental companies and engineering companies.  Our customer
relationships average over ten years which provides us repeat
business.







16




Critical
Accounting Policies





The
Company has identified the following accounting policies to be the critical
accounting policies of the Company:





Revenue
Recognition.  Revenue for inspection services is recognized
upon completion of the services rendered.  Revenue for the sales of
pipe is recognized when pipe is delivered and the customer takes ownership and
assumes the risks of loss, collection of the relevant receivable is probable,
persuasive evidence of an arrangement exists, and the sales price is fixed or
determinable.





Inventory.  Inventory
is stated at the lower of cost determined by the specific identification method
or market.  At March 31, 2009, inventory consisted of drilling pipe
available for sale.





Property and Equipment.Property and equipment are stated at cost.  Expenditures for
property and equipment and items that substantially increase the useful lives of
existing assets are capitalized at cost and depreciated. Routine expenditures
for repairs and maintenance are expensed as incurred.  The cost and
related accumulated depreciation of property and equipment disposed of are
eliminated from the accounts, and any resulting gain or loss is
recognized.  Depreciation is provided utilizing the straight-line
method over the estimated useful lives of the assets capitalized.





Valuation of Long-Lived
Assets.In the event facts and circumstances indicate that
carrying amounts of long-lived assets may be impaired, the Company evaluates the
recoverability of its long-lived assets using the estimated future undiscounted
cash flows associated with the asset compared to the asset’s carrying amount to
determine if a write-down is required, pursuant to the provisions of SFAS No.
144, Accounting or Disposal of
Long-Lived Assets, and related interpretations.  Any impairment
loss is measured as the difference between the carrying amount and the fair
value of the impaired asset.





Discussion
of Changes in Financial Condition from December 31, 2008 to March 31,
2009





At March
31, 2009, total assets amounted to $20,247,878 compared to $20,047,298 at
December 31, 2008, an increase of $200,580, or 1.0%.  The increase is
primarily due to an increase in accounts receivable of $479,338, which is
partially offset by a decrease in the Company’s deferred tax asset of $170,622
and a decrease in property and equipment, net, of $78,303.





Our
liabilities at March 31, 2009, totaled $17,255,517 compared to $17,587,249 at
December 31, 2008, a decrease of $331,732, or 1.9%.  The decrease
is primarily due to a decrease in accounts payable of $426,915, and a
decrease in accrued payroll and payroll liabilities of $67,816.  These
decreases were partially offset by increases in income taxes payable of $117,712
and an increase in accrued rent of $37,500.





Total
stockholder’s equity increased from $2,460,049 at December 31, 2008, to
$2,992,361 at March 31, 2009.  This increase was primarily due to net
income generated during the three months ended March 31, 2009 of
$532,312.





Accounts
Receivable





Accounts
receivable increased approximately $479,000, or 28.4%, from December 31, 2008 to
March 31, 2009.  The increase in accounts receivable pertains to our
overall increase in revenues.  Approximately 85% of the balance of
trade receivables at March 31, 2009 were outstanding for 60 days or
less.





17




Property
and Equipment





During
the three months ended March 31, 2009, we purchased approximately $127,000 of
property and equipment for our facilities.  This amount was offset by
approximately $205,000 of depreciation expense recognized during the three
months ended March 31, 2009.  These transactions resulted in decrease
in our property and equipment, net, of approximately $78,000.





Deferred
Tax Asset/Income Taxes Payable





Due to
the Company’s profitability for the three months ended March 31, 2009, our
deferred tax asset associated with net operating losses has been
eliminated.  In addition to reducing our deferred tax asset, we have
recorded income taxes payable for the estimated amount of income taxes
associated with our taxable income.





Accounts
Payable





Accounts
payable at March 31, 2009 totaled $4,980,466 compared to $5,407,381, a decrease
of $426,915.  This decrease is due primarily to payments made during
the three months ended March 31, 2009 to our suppliers of suppliers of pipe
inventory acquired in December of the previous fiscal year.




Accrued
Rent





The
Company leases property for its Houston facility on a month-to-month basis at a
rate of $12,500 per month.  The lessor of the property has agreed not
to demand payment for the outstanding balance until we are able to enhance our
capital position, either through the issuance and sale of common stock or
through internally generated growth.





Discussion
of Results of Operations for the Three Months Ended March 31, 2009 compared to
the Three Months Ended March 31, 2008




Revenues





Our
revenue for the three months ended March 31, 2009, was $2,446,072 compared to
$1,439,896 for the three months ended March 31, 2008, an increase of $1,006,176,
or 69.9%.  The increase is attributable primarily to increased
inspection fees.  During late 2009, we placed in service additional
inspection equipment to enable us to meet the overall increased demand for pipe
inspection services.  In addition to our inspection services, we
provide hauling and storage of tubular goods at our Houston facility for
customers and suppliers.  During the three months ended March 31,
2009, we received significant quantities of tubular goods from one of our
primary vendors to store at our Houston facility.  This resulted in an
increase in storage fee revenue as well in the amount we charged for the hauling
and handling of these tubular goods, which is included in other
income.





The
following table presents the composition of revenue for the three months March
31, 2009 and 2008:





Revenue:
            
            2009
              Dollars
            
            Percentage
            
            
            2008
              Dollars
            
            Percentage
            
            
            Variance
              DollarsInspection
      Fees
            
            $
            1,789,481
            
            73.2%
            
            
            $
            1,296,946
            
            90.1%
            
            
            $
            492,535Storage
      Fees
            
            $
            246,788
            
            10.1%
            
            
            $
            60,071
            
            4.2%
            
            
            $
            186,717Other
      Income
            
            $
            409,803
            
            16.7%
            
            
            $
            82,879
            
            5.7%
            
            
            $
            326,924Total
      Revenue
            
            $
            2,446,072
            
            100.0%
            
            
            $
            1,439,896
            
            100.0%
            
            
            $
            1,006,176





18




Cost
of Revenue and Gross Profit





Our cost
of revenue for the three months ended March 31, 2009, was $1,133,015, or 46.3%
of revenues, compared to $555,168, or 38.6% of revenues, for the three months
ended March 31, 2008.  The overall increase in our cost of revenue is
primarily due to our increased costs for hauling and fuel for moving customers’
pipe onto our yard for storage.  The increase in cost of revenue as a
percentage of revenues was due to the lower markup on these services which are
performed as a convenience to our customers and suppliers of tubular
goods.  In addition to these increases, labor and related costs
increased by $180,508, or 94.4 %.  The increase is primarily
attributable to the overall increase in volume of inspection services, as well
as the need for additional personnel, including subcontract labor, to handle and
store the amount of tubular goods received during the three months ended March
31, 2009.  The increase in depreciation and amortization expense for
the three months ended March 31, 2009 compared to the three months ended March
31, 2008 is primarily due to equipment purchased and placed in service in the
second half of 2008 and first quarter of 2009.





The
following table presents the composition of cost of revenue for the three months
ended March 31, 2009 and 2008:




Cost
      of Revenue:
            
            2009
              Dollars
            
            Percentage
            
            
            2008
              Dollars
            
            Percentage
            
            
            Variance
              DollarsLabor
      and Related Costs
            
            $
            371,802
            
            32.8
            %
            
            $
            191,294
            
            34.5
            %
            
            
            180,508Materials
      and  Supplies
            
            
            54,668
            
            4.8
            %
            
            
            22,347
            
            4.0
            %
            
            
            32,321Subcontract
      Labor
            
            
            212,265
            
            18.7
            %
            
            
            146,800
            
            26.4
            %
            
            
            65,465Maintenance
            
            
            73,582
            
            6.5
            %
            
            
            55,254
            
            10.0
            %
            
            
            18,328Insurance
            
            
            32,224
            
            2.9
            %
            
            
            20,090
            
            3.6
            %
            
            
            12,134Depreciation
      and Amortization
            
            
            175,697
            
            15.5
            %
            
            
            90,194
            
            16.2
            %
            
            
            85,503Other
            
            
            212,777
            
            18.8
            %
            
            
            29,189
            
            5.3
            %
            
            
            183,588Total Cost of 
      Revenue
            
            $
            1,133,015
            
            100.0
            %
            
            $
            555,168
            
            100.0
            %
            
            
            577,847




Due to
limitations with the pool of qualified individuals, we utilized the services of
subcontractors to assist us in providing timely and quality service to our
customers.  We will continue our efforts to attract, employ, and
retain qualified individuals to serve the needs of our customers.





Operating
Expenses





For the
three months ended March 31, 2009, our operating expenses totaled $466,533, as
compared to $280,222 in 2008, representing an increase of $186,311, or
66.5%.  The largest component of our operating expenses for 2008
consists of salaries and wages, rent, professional services, and office supplies
and expenses.  Salaries and wages for general and administrative
personnel was $198,696 for the three months ended March 31, 2009, compared to
$110,264 for the three months ended March 31, 2008, an increase of $88,432, or
80.2%.  During the second half of 2008, we hired a new salesman to
concentrate on tubular sales and began paying our founder, President, and CEO a
regular salary.





Rent
expense totaled $67,402 for the three months ended March 31, 2009, as compared
to $58,842 for the three months ended March 31, 2008, an increase of $8,560, or
14.6%.  Rent expense for both the three months ended March 31, 2009,
and for the three months ended March 31, 2008, pertains primarily to our rental
of office space for our headquarters in Lafayette as well as our rental of land
and facilities for operating purposes.  The increase is attributable
to cost of additional land used at our Houston, Texas facility.





Professional
services expense increased from $43,779 for the three months ended March 31,
2008, to $70,144 for the three months ended March 31, 2009, an increase of
$26,365.  The increase is primarily a result of expenses we incurred
throughout the three months ended March 31, 2009 for consulting services
pertaining to training and certification classes for our employees and
consulting services for our compliance with ISO standards, as well as an
increase in accounting fees associated with the growth of the Company over the
past several months.






19





Other
Income and Expense





Other
income and expense consists of investment income and interest expense,
respectively.  Investment income, which consists of interest,
dividends, realized gains and losses, and unrealized gains and losses, amounted
to a gain of $1,258 for the three months ended March 31, 2009, compared to
income of $3,424 for the three months ended March 31, 2008.  The
decrease is due primarily to the lower yields being earned on our invested cash
balances.





Interest
expense totaled $23,818 for the three months ended March 31, 2009, as compared
to $23,525 for the three months ended March 31, 2008, an increase of $293,
or 1.3%.  Interest expense pertains primarily to amounts due to
affiliates as well as to our notes payable with third parties, and the decrease
relates to the principal payments on those debts and obligations.





Provision
for income taxes





For the
three months ended March 31, 2009, we reported an income tax expense of $291,652
compared to income tax expense of $232,246 for the three months ended March 31,
2008, an increase of $59,406 or 25.6%, which is the result of the additional
revenue and pre-tax net income for that period.




Comparative
financial information for the three months ended March 31:




March
      31, 2009
              
              March
      31, 2008
              
              March
      31, 2007
              
              March
      31, 2006
              
              March
      31, 2005Revenues
      for the 1st
      quarter
              $2,446,072
              
              $1,439,896
              
              $613,187
              
              $508,331
              
              $442,613Cost
      of Revenues
              1,133,015
              
              555,168
              
              304,477
              
              237,567
              
              226,488Gross
      Profit
              1,313,057
              
              884,728
              
              308,710
              
              270,764
              
              216,125Operating  ExpensesGeneral
      & Administrative Expenses
              429,800
              
              263,035
              
              135,387
              
              99,888
              
              202,303Depreciation
              36,733
              
              17,187
              
              15,487
              
              21,567
              
              23,079Total
      Operating Expenses
              466,533
              
              280,222
              
              150,874
              
              121,455
              
              225,382Income
      from Operations
              846,524
              
              604,506
              
              157,836
              
              149,309
              
              (9,257)Other
      Income (Expense)
              22,560
              
              (20,101)
              
              (30,522)
              
              1,076
              
              (3,303)Income
      (Loss) Before Income Taxes
              823,964
              
              584,405
              
              127,314
              
              150,385
              
              (12,560)Provision
      for Income Taxes
              291,652
              
              232,246
              
              48,762
              
              53552
              
              (7,852)Net
      Income (Loss)
              $532,312
              
              $352,159
              
              $78,552
              
              $96,833
              
              $(4,708)







20





Capital
Resources and Liquidity





As of
March 31, 2009 we had $592,201 in cash and cash equivalents.  Our cash
outflows have consisted primarily of expenses associated with our operations,
and the purchase of  pipe for sale.  These outflows have
been offset by the timely inflows of cash from our customers regarding sales
that have been made.  Cash outflows for investing purposes have
consisted primarily of the development of our Abbeville, Louisiana facility, and
the acquisition of equipment and other technology to better serve our
customers.  Currently, we have been able to utilize our relationships
with affiliated entities to stabilize our liquidity needs.





We
believe we can satisfy our cash requirements for the next twelve months with our
current cash and expected revenues. However, completion of our plan of operation
is subject to attaining adequate revenue.  We cannot assure investors
that adequate revenues will be generated. In the absence of our projected
revenues, we may be unable to proceed with our plan of operations. Even without
adequate revenues within the next twelve months, we still anticipate being able
to continue with our present activities, but we may require financing to
potentially achieve our growth goals.





In the
event we are not successful in reaching our initial revenue targets, additional
funds may be required, and we may not be able to proceed with our business plan
for the development and marketing of our core services.  Should this
occur, we would likely seek additional financing to support the continued
operation of our business.





Item
3.  Quantitative and Qualitative Disclosures About Market
Risk





The
Company is subject to certain market risks, including changes in interest rates
and currency exchange rates.  The Company does not undertake any
specific actions to limit those exposures.





Item
4T.  Controls and Procedures





a)  Evaluation of Disclosure
Controls. George M. Sfeir, our Chief Executive Officer and Chief
Financial Officer, evaluated the effectiveness of our disclosure controls and
procedures as of the end of our first fiscal quarter 2009 pursuant to Rule
13a-15(b) of the Securities and Exchange Act.  Disclosure controls and
procedures are controls and other procedures that are designed to ensure that
information required to be disclosed by us in the reports that we file or submit
under the Exchange Act is recorded, processed, summarized and reported within
the time periods specified in the SEC’s rules and forms.  Disclosure
controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed by us in the
reports that we file under the Exchange Act is accumulated and communicated to
our management, as appropriate to allow timely decisions regarding required
disclosure.  Based on his evaluation, Mr. Sfeir concluded that our
disclosure controls and procedures were effective as of March 31,
2009.





It should
be noted that any system of controls, however well designed and operated, can
provide only reasonable, and not absolute, assurance that the objectives of the
system are met.  In addition, the design of any control system is
based in part upon certain assumptions about the likelihood of future
events.  Because of these and other inherent limitations of control
systems, there can be no assurance that any design will succeed in achieving its
stated goals under all potential future conditions.





(b)  Changes in internal control over
financial reporting.  There have been no changes in our
internal control over financial reporting that occurred during the last fiscal
quarter that has materially affected, or is reasonably likely to materially
affect, our internal control over financial reporting. Our management team will
continue to evaluate our internal control over financial reporting in 2009 as we
implement our Sarbanes Oxley Act testing.








21





PART
II - OTHER INFORMATION




Item
1. Legal Proceedings.




We are
currently not involved in any litigation that we believe could have a material
adverse effect on our financial condition or results of operations. There is no
action, suit, proceeding, inquiry or investigation before or by any court,
public board, government agency, self-regulatory organization or body pending
or, to the knowledge of the executive officers of our company or any of our
subsidiaries, threatened against or affecting our company, our common stock, any
of our subsidiaries or of our companies or our subsidiaries’ officers or
directors in their capacities as such, in which an adverse decision could have a
material adverse effect.




Item
1A. Risk Factors.





None.




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




None.




Item
3. Defaults Upon Senior Securities.




None




Item
4. Submission of Matters to a Vote of Security Holders.




None.




Item
5. Other Information.




None




Item
6. Exhibits and Reports of Form 8-K.




(a)           Exhibits




31.1
Certifications pursuant to Section 302 of Sarbanes Oxley Act of
2002




32.1
Certifications pursuant to Section 906 of Sarbanes Oxley Act of
2002




(b)           Reports
of Form 8-K




None.






22






SIGNATURES




Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.




ENERGY
      & TECHNOLOGY CORP.Date:
      May 15 2009
            By:
            /s/
      George M. SfeirGeorge
      M. SfeirPresident,
      Chief Executive Officer,
              Principal
      Accounting Officer,
              and
      Director