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 June 30, 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)


______________


www.engt.com


www.energyNtechnology.com


(Registrant’s
URL)


_______________




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




Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the 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
Filero       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




As of
August 14, 2009, there were 10,000,000 shares outstanding of the registrant’s
common stock.












ENERGY
& TECHNOLOGY, CORP.




FORM
10-Q




June
30, 2009




INDEX




PART
I—FINANCIAL INFORMATION




Item
      1.
            Financial
      StatementsItem
      2.
            Management’s
      Discussion and Analysis of Financial ConditionItem
      3
            Quantitative
      and Qualitative Disclosures About Market RiskItem
      4.
            Control
      and Procedures




PART
II—OTHER INFORMATION




Item
      1
            Legal
      ProceedingsItem
      1A
            Risk
      FactorsItem
      2.
            Unregistered
      Sales of Equity Securities and Use of ProceedsItem
      3.
            Defaults
      Upon Senior SecuritiesItem
      4.
            Submission
      of Matters to a Vote of Security HoldersItem
      5.
            Other
      InformationItem
      6.
            Exhibits
      and Reports on Form 8-K




SIGNATURE









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.








1




PART
I.  Financial Information





ITEM
1. Financial Statements









ENERGY
      & TECHNOLOGY, CORP.Consolidated
      Balance SheetsJune
      30,
                    
                    
                    December
      31,2009
                    
                    
                    2008(Unaudited)
                    
                    
                    (Audited)AssetsCurrent
      AssetsCash
      and Cash Equivalents
                    
                    $
                    1,135,408
                    
                    
                    $
                    603,275Accounts
      ReceivableTrade,
      Net
                    
                    
                    2,031,654
                    
                    
                    
                    1,684,890Other
                    
                    
                    25,206
                    
                    
                    
                    25,399Inventory
                    
                    
                    7,102,294
                    
                    
                    
                    7,102,294Prepaid
      Expenses
                    
                    
                    24,989
                    
                    
                    
                    73,968Deferred
      Tax Asset
                    
                    
                    -
                    
                    
                    
                    170,622Total
      Current Assets
                    
                    
                    10,319,551
                    
                    
                    
                    9,660,448Property
      and Equipment, Net
                    
                    
                    9,721,497
                    
                    
                    
                    9,755,533Other
      AssetsPatent,
      net
                    
                    
                    522,941
                    
                    
                    
                    537,335Deferred
      IPO Expenses
                    
                    
                    71,346
                    
                    
                    
                    71,346Deposits
                    
                    
                    4,988
                    
                    
                    
                    4,988Other
      Assets
                    
                    
                    37,420
                    
                    
                    
                    17,648Total
      Other Assets
                    
                    
                    636,695
                    
                    
                    
                    631,317Total
      Assets
                    
                    $
                    20,677,743
                    
                    
                    $
                    20,047,298




The
accompanying notes are an integral part of these financial
statements.
 2




ENERGY
      & TECHNOLOGY, CORP.Consolidated
      Balance Sheets - ContinuedJune
      30,
                  
                  
                  December
      31,2009
                  
                  
                  2008(Unaudited)
                  
                  
                  (Audited)Liabilities
      and Stockholders' EquityCurrent
      LiabilitiesCurrent
      Maturities of Notes Payable
                  
                  $
                  103,203
                  
                  
                  $
                  43,030Accounts
      Payable
                  
                  
                  4,904,712
                  
                  
                  
                  5,407,381Accrued
      Payroll and Payroll Liabilities
                  
                  
                  72,092
                  
                  
                  
                  110,661Accrued
      Rent
                  
                  
                  1,262,500
                  
                  
                  
                  1,187,500Customer
      Deposits
                  
                  
                  551,075
                  
                  
                  
                  551,075Income
      Taxes Payable
                  
                  
                  277,758
                  
                  
                  
                  66,147Accrued
      Liability for Capital Expenditures
                  
                  
                  7,235,717
                  
                  
                  
                  7,235,717Total
      Current Liabilities
                  
                  
                  14,407,057
                  
                  
                  
                  14,601,511Long-Term
      LiabilitiesNotes
      Payable
                  
                  
                  21,564
                  
                  
                  
                  92,393Deferred
      Taxes Payable
                  
                  
                  1,226,083
                  
                  
                  
                  1,181,929Due to Affiliates
                  
                  
                  1,719,480
                  
                  
                  
                  1,711,416Total
      Long-Term Liabilities
                  
                  
                  2,967,127
                  
                  
                  
                  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.10,000,000
      Issued and Outstanding at June 30, 2009.  175,100,000
      SharesIssued
      and Outstanding at December 31, 2008.
                  
                  
                  10,000
                  
                  
                  
                  175,100Discount
      on Capital Stock
                  
                  
                  -
                  
                  
                  
                  (125,000
                  )Paid-In
      Capital
                  
                  
                  220,475
                  
                  
                  
                  180,375Retained Earnings
                  
                  
                  3,073,084
                  
                  
                  
                  2,229,574Total
      Stockholders' Equity
                  
                  
                  3,303,559
                  
                  
                  
                  2,460,049Total
      Liabilities and Stockholders' Equity
                  
                  $
                  20,677,743
                  
                  
                  $
                  20,047,298





The
accompanying notes are an integral part of these financial
statements.
 3




ENERGY
      & TECHNOLOGY, CORP.Consolidated
      Statements of Operations(Unaudited)Three
      Months Ended
                    
                    
                    Six
      Months EndedJune
      30,
                    
                    
                    June
      30,2009
                    
                    
                    2008
                    
                    
                    2009
                    
                    
                    2008Revenues
                    
                    $
                    2,237,591
                    
                    
                    $
                    3,743,380
                    
                    
                    $
                    4,683,663
                    
                    
                    $
                    5,183,276Cost
      of RevenuesLabor
      and Related Costs
                    
                    
                    415,648
                    
                    
                    
                    183,267
                    
                    
                    
                    787,450
                    
                    
                    
                    374,561Subcontract
      Labor
                    
                    
                    196,124
                    
                    
                    
                    114,057
                    
                    
                    
                    408,389
                    
                    
                    
                    260,857Depreciation
      and Amortization
                    
                    
                    164,479
                    
                    
                    
                    91,174
                    
                    
                    
                    340,176
                    
                    
                    
                    181,368Maintenance
                    
                    
                    83,273
                    
                    
                    
                    40,946
                    
                    
                    
                    156,855
                    
                    
                    
                    96,200Materials
      and Supples
                    
                    
                    36,459
                    
                    
                    
                    1,516,535
                    
                    
                    
                    91,127
                    
                    
                    
                    1,538,882Insurance
                    
                    
                    41,641
                    
                    
                    
                    25,274
                    
                    
                    
                    73,865
                    
                    
                    
                    45,364Other
                    
                    
                    144,493
                    
                    
                    
                    30,626
                    
                    
                    
                    357,270
                    
                    
                    
                    59,815Total
      Costs of Revenues
                    
                    
                    1,082,117
                    
                    
                    
                    2,001,879
                    
                    
                    
                    2,215,132
                    
                    
                    
                    2,557,047Gross
      Profit
                    
                    
                    1,155,474
                    
                    
                    
                    1,741,501
                    
                    
                    
                    2,468,531
                    
                    
                    
                    2,626,229Operating
      ExpensesSalaries
      and Wages
                    
                    
                    270,318
                    
                    
                    
                    163,650
                    
                    
                    
                    469,014
                    
                    
                    
                    273,914Professional
      Services
                    
                    
                    80,575
                    
                    
                    
                    26,429
                    
                    
                    
                    150,719
                    
                    
                    
                    70,208Rent
                    
                    
                    81,794
                    
                    
                    
                    54,689
                    
                    
                    
                    149,196
                    
                    
                    
                    113,531Utilities
                    
                    
                    36,223
                    
                    
                    
                    26,698
                    
                    
                    
                    61,423
                    
                    
                    
                    32,993Office
      Supplies and Expenses
                    
                    
                    35,608
                    
                    
                    
                    31,119
                    
                    
                    
                    54,543
                    
                    
                    
                    41,509Other
                    
                    
                    62,488
                    
                    
                    
                    72,282
                    
                    
                    
                    111,911
                    
                    
                    
                    105,747Depreciation
                    
                    
                    52,489
                    
                    
                    
                    17,188
                    
                    
                    
                    89,222
                    
                    
                    
                    34,375Total
      Operating Expenses
                    
                    
                    619,495
                    
                    
                    
                    392,055
                    
                    
                    
                    1,086,028
                    
                    
                    
                    672,277Income
      from Operations
                    
                    
                    535,979
                    
                    
                    
                    1,349,446
                    
                    
                    
                    1,382,503
                    
                    
                    
                    1,953,952Other
      Income (Expense)Investment
      Income
                    
                    
                    1,985
                    
                    
                    
                    6,801
                    
                    
                    
                    3,243
                    
                    
                    
                    10,225Interest
      Expense
                    
                    
                    (25,309
                    )
                    
                    
                    (23,489
                    )
                    
                    
                    (49,127
                    )
                    
                    
                    (47,014
                    )Loss
      on Sale of Assets
                    
                    
                    (575
                    )
                    
                    
                    -
                    
                    
                    
                    (575
                    )
                    
                    
                    -Total
      Other Income (Expense)
                    
                    
                    (23,899
                    )
                    
                    
                    (16,688
                    )
                    
                    
                    (46,459
                    )
                    
                    
                    (36,789
                    )Income
      before Income Taxes
                    
                    
                    512,080
                    
                    
                    
                    1,332,758
                    
                    
                    
                    1,336,044
                    
                    
                    
                    1,917,163Provision
      for Income Taxes
                    
                    
                    200,882
                    
                    
                    
                    499,413
                    
                    
                    
                    492,534
                    
                    
                    
                    731,659Net
      Income
                    
                    $
                    311,198
                    
                    
                    $
                    833,345
                    
                    
                    $
                    843,510
                    
                    
                    $
                    1,185,504Earnings
      per Share - Basic
                    
                    $
                    0.03
                    
                    
                    $
                    0.005
                    
                    
                    $
                    0.01
                    
                    
                    $
                    0.006Earnings
      per Share - Diluted
                    
                    $
                    0.03
                    
                    
                    $
                    0.005
                    
                    
                    $
                    0.01
                    
                    
                    $
                    0.006






The
accompanying notes are an integral part of these financial
statements.
 4




ENERGY
      & TECHNOLOGY CORP.Consolidated
      Statements of Changes in Stockholders' Equity(Unaudited)Additional
                      
                      
                      
                      
                      
                      
                      
                      
                      TotalCommon
      Stock
                      
                      
                      Discount
      on
                      
                      
                      Paid-In
                      
                      
                      Retained
                      
                      
                      Stock
                      
                      
                      Stockholders'Shares
                      
                      
                      Amount
                      
                      
                      Capital
      Stock
                      
                      
                      Capital
                      
                      
                      Earnings
                      
                      
                      Subscriptions
                      
                      
                      EquityBalance
      at January 1, 2008
                      
                      
                      175,000,000
                      
                      
                      $
                      175,000
                      
                      
                      $
                      (125,000
                      )
                      
                      $
                      80,475
                      
                      
                      $
                      770,918
                      
                      
                      $
                      72,000
                      
                      
                      $
                      973,393Capital
      Stock Issued
                      
                      
                      100,000
                      
                      
                      
                      100
                      
                      
                      
                      -
                      
                      
                      
                      99,900
                      
                      
                      
                      -
                      
                      
                      
                      (72,000
                      )
                      
                      
                      28,000Net
      Income
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      1,185,504
                      
                      
                      
                      -
                      
                      
                      
                      1,185,504June
      30, 2008
                      
                      
                      175,100,000
                      
                      
                      $
                      175,100
                      
                      
                      $
                      (125,000
                      )
                      
                      $
                      180,375
                      
                      
                      $
                      1,956,422
                      
                      
                      $
                      -
                      
                      
                      $
                      2,186,897Balance
      at January 1, 2009
                      
                      
                      175,100,000
                      
                      
                      $
                      175,100
                      
                      
                      $
                      (125,000
                      )
                      
                      $
                      180,375
                      
                      
                      $
                      2,229,574
                      
                      
                      $
                      -
                      
                      
                      $
                      2,460,049Capital
      Stock Cancelled
                      
                      
                      (165,100,000
                      )
                      
                      
                      (165,100
                      )
                      
                      
                      125,000
                      
                      
                      
                      40,100
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -Net
      Income
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      -
                      
                      
                      
                      843,510
                      
                      
                      
                      -
                      
                      
                      
                      843,510Balance
      at June 30, 2009
                      
                      
                      10,000,000
                      *
                      
                      $
                      10,000
                      
                      
                      $
                      -
                      
                      
                      $
                      220,475
                      
                      
                      $
                      3,073,084
                      
                      
                      $
                      -
                      
                      
                      $
                      3,303,559*
      -June
      30, 2009, 9,850,000 shares are restricted 150,000 shares are non
      restricted








The
accompanying notes are an integral part of these financial
statements.
 5


ENERGY
      & TECHNOLOGY, CORP.Consolidated
      Statements of Cash Flows(Unaudited)Six
      Months EndedJune
      30,2009
                                            
                                            
                                            2008Cash
      Flows from Operating ActivitiesNet
      Income
                                            
                                            $
                                            843,510
                                            
                                            
                                            $
                                            1,185,504Adjustments
      to Reconcile Net Income to Net Cash Provided byOperating
      ActivitiesDepreciation
                                            
                                            
                                            415,005
                                            
                                            
                                            
                                            198,810Amortization
      of Patent Costs
                                            
                                            
                                            14,393
                                            
                                            
                                            
                                            16,933Deferred Income
      Taxes
                                            
                                            
                                            214,776
                                            
                                            
                                            
                                            371,649Changes in Assets
      and LiabilitiesTrade
      Receivables
                                            
                                            
                                            (346,764
                                            )
                                            
                                            
                                            (653,680
                                            )Other
      Receivables
                                            
                                            
                                            193
                                            
                                            
                                            
                                            (18,550
                                            )Inventory
                                            
                                            
                                            -
                                            
                                            
                                            
                                            (1,683,800
                                            )Prepaid
      Expenses
                                            
                                            
                                            48,979
                                            
                                            
                                            
                                            24,655Accounts
      Payable
                                            
                                            
                                            (502,669
                                            )
                                            
                                            
                                            1,849,108Accrued
      Payroll and Payroll Liabilities
                                            
                                            
                                            (38,569
                                            )
                                            
                                            
                                            25,669Income
      Taxes Payable
                                            
                                            
                                            211,611
                                            
                                            
                                            
                                            360,011Increase in
      Customer Deposits
                                            
                                            
                                            -
                                            
                                            
                                            
                                            425,270Accrued
      Rent
                                            
                                            
                                            75,000
                                            
                                            
                                            
                                            75,000Net
      Cash Provided by Operating Activities
                                            
                                            
                                            935,465
                                            
                                            
                                            
                                            2,176,579Cash
      Flows from Investing ActivitiesIncrease in Other
      Assets
                                            
                                            
                                            (19,772
                                            )
                                            
                                            
                                            (635
                                            )Repayment on
      Accrued Liability for Capital Expenditures
                                            
                                            
                                            -
                                            
                                            
                                            
                                            (47,873
                                            )Purchase of
      Property and Equipment
                                            
                                            
                                            (380,968
                                            )
                                            
                                            
                                            (215,881
                                            )Net
      Cash Used in Investing Activities
                                            
                                            
                                            (400,740
                                            )
                                            
                                            
                                            (264,389
                                            )Cash
      Flows from Financing ActivitiesDecrease in Cash
      Overdraft
                                            
                                            
                                            -
                                            
                                            
                                            
                                            (52,900
                                            )Payment of IPO
      Costs
                                            
                                            
                                            -
                                            
                                            
                                            
                                            (31,774
                                            )Issuance of
      Stock/Stock Subscriptions
                                            
                                            
                                            -
                                            
                                            
                                            
                                            28,000Borrowings from
      Affiliates
                                            
                                            
                                            8,064
                                            
                                            
                                            
                                            124,303Proceeds from Notes
      Payable
                                            
                                            
                                            13,046
                                            
                                            
                                            
                                            -Principal
      Repayments on Notes Payable
                                            
                                            
                                            (23,702
                                            )
                                            
                                            
                                            (5,151
                                            )Net
      Cash (Used in) Provided by Financing Activities
                                            
                                            
                                            (2,592
                                            )
                                            
                                            
                                            62,478Net
      Increase in Cash and Cash Equivalents
                                            
                                            
                                            532,133
                                            
                                            
                                            
                                            1,974,668Cash
      and Cash Equivalents, Beginning of Period
                                            
                                            
                                            603,275
                                            
                                            
                                            
                                            437,997Cash
      and Cash Equivalents, End of Period
                                            
                                            $
                                            1,135,408
                                            
                                            
                                            $
                                            2,412,665


The
accompanying notes are an integral part of these financial
statements.
 6
  ENERGY
      & TECHNOLOGY, CORP.
                          Consolidated
      Statements of Cash Flows - Continued
                          (Unaudited)Six
      Months EndedJune
      30,2009
                        
                        
                        2008Supplemental
      Disclosure of Cash Flow InformationCash
      Paid During the Period for Interest
                        
                        $
                        2,913
                        
                        
                        $
                        801Cash
      Paid During the Period for Income Taxes
                        
                        $
                        -
                        
                        
                        $
                        -





The
accompanying notes are an integral part of these financial
statements.
 7













ENERGY
& TECHNOLOGY, CORP.


NOES
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 and to take over the
assets and business of Technical Industries, Inc. (TII).  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 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
(Sfeir Family Trust) 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.  On April 1, 2009, the Company entered into an agreement with
American Interest, LLC and the Sfeir Family Trust whereby the two stockholders
agreed to cancel 118,046,500 common shares for American Interest, LLC and
47,053,500 common shares for the Sfeir Family Trust for the consideration to be
re-issued in the future or compensated for according to American Interest, LLC
and Sfeir Family Trust wishes. As a result, the Company has at June 30, 2009,
10,000,000 shares of common stock issued and outstanding, of
which 9,850,000 shares are restricted.





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









8






Note
2.    Acquisition (Continued)




LiabilitiesAccounts
      Payable and Accrued Expenses
                      
                      
                      (956,825
                      )Notes
      Payable
                      
                      
                      947,113
                      )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
collectability 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 June 30, 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.




9








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.





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.





The
Company has more than 50 active clients; however, for the six months ended June
30, 2009, four customers made up approximately 55% of the Company’s revenues and
approximately 52% of the Company’s receivable balance at June 30,
2009.  For the six months ended June 30, 2008, four customers made up
approximately 66% of the Company’s revenues and approximately 71% of the
Company’s receivable balance at June 30, 2008.





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




10







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.




11







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 his development
of specialized testing procedures for drilling pipe utilized by oil-exploration
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 June
30, 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





Even
though the Company has more than 50 active customers, for the six months ended
June 30, 2009, the Company had four customers which generated revenues in excess
of 10% of the Company’s total revenues.  Revenues for these four
customers were approximately 55% of total revenues, and the total balance due
from these four customers at June 30, 2009 was $1,064,086.  For the
six months ended June 30, 2008, the Company had four customers which generated
revenues in excess of 10% of the Company’s total revenues.  Revenues
for these four customers were approximately 66% of total revenues, and the total
balance due from these four customers at June 30, 2008 was
$1,505,721.






12







Note
8.   Related Party Transactions





Included
in due to affiliates at June 30, 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 June 30, 2009 and
2008.





Note
9.    Earnings per Share





The
weighted average common shares outstanding amounted to 10,000,000, and
92,093,923 for the three months and six months ended June 30, 2009,
respectively, and 175,100,000 for the three months and six months ended June 30,
2009, respectively.








13








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 new
technology that has been internationally patented including three issued patents
in the U.S.A., one in China, and one pending in Canada and another is pending
patent in Europe.  The new inspection technology is 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 agents 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 and we are working on training and
raising the capital needed.  Mr. Steve Piper previously worked for U.S. S.
Steel as a threading technician and a manager, has more than 20 years experience
in this field.  Mr. Piper has been hired by our company to organize and
manage Highland Energy Threading LLC.





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 over 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.





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 June 30, 2009, inventory consisted of pipe available
for sale.






14





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 June 30,
2009





At June
30, 2009, total assets amounted to $20,677,743 compared to $20,047,298 at
December 31, 2008, an increase of $630,445, or 3.14%.  The increase is
primarily due to an increase in cash of 532,133 and an increase in accounts
receivable of $346,764, 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
$34,036.





Our
liabilities at June 30, 2009, totaled $17,374,184 compared to $17,587,249 at
December 31, 2008, a decrease of $213,065, or 1.21%.  The decrease is
primarily due to a decrease in accounts payable of $502,669,
and.  This decrease was partially offset by increases in income taxes
payable of $211,611 and an increase in accrued rent of $75,000.





Total
stockholder’s equity increased from $2,460,049 at December 31, 2008, to
$3,303,559 at June 30, 2009.  This increase was due to net income
generated during the six months ended June 30, 2009 of $843,510.





Accounts
Receivable





Accounts
receivable increased approximately $346,764, or 20.58%, from December 31, 2008
to June 30, 2009.  The increase in accounts receivable pertains to an
account currently being contested due to some pipe that was returned which they
claim did not meet the appropriate specifications.  Approximately
56.4% of the balance of trade receivables at June 30, 2009 were outstanding for
60 days or less.




Property
and Equipment





During
the six months ended June 30, 2009, we purchased approximately $380,968 of
property and equipment for our facilities.  This amount was offset by
approximately $415,005 of depreciation expense recognized during the six months
ended June 30, 2009.  These transactions resulted in a decrease in our
property and equipment, net, of approximately $34,036.





Deferred
Tax Asset/Income Taxes Payable





Due to
the Company’s profitability for the six months ended June 30, 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 June 30, 2009 totaled $4,904,712 compared to $5,407,381, a decrease
of $502,669.  This decrease is due primarily to payments made during
the six months ended June 30, 2009 to our 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 June 30, 2009 compared to
the Three months Ended June 30, 2008






15





Revenues





Our
revenue for the three months ended June 30, 2009, was $2,237,591 compared to
$3,743,380 for the three months ended June 30, 2008, a decrease of $1,505,789,
or 40.23%.  The decrease is attributable primarily to the decrease in
pipe sales of $2,994,657 and was partially offset by an increase in storage fees
and other income.  During late 2008, 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 logistics coordination and storage of tubular goods at our Houston
facility for customers and suppliers.  During the three months ended
June 30, 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
logistic coordination and handling of these tubular goods, which is included in
other income.





The
following table presents the composition of revenue for the three months ending
June 30, 2009 and 2008:





Revenue:
              
              2009
              
              Percentage
              
              2008
              
              Percentage
              
              VarianceDollars
              Dollars
              DollarsInspection
      Fees
              
              $
              1,500,324
              
              67.1%
              
              $
              543,891
              
              14.5%
              
              $
              956,433Storage
      Fees
              
              $
              294,013
              
              13.1%
              
              $
              70,273
              
              1.9%
              
              $
              223,740Pipe
      Sales
              
              $
              -
              
              0.0%
              
              $
              2,994,657
              
              80.0%
              
              $
              (2,994,657)Other
      Income
              
              $
              443,254
              
              19.8%
              
              $
              134,559
              
              3.6%
              
              $
              308,695Total
      Revenue
              
              $
              2,237,591
              
              100.0%
              
              $
              3,743,380
              
              100.0%
              
              $
              (1,505,789)





Cost
of Revenue and Gross Profit





Our cost
of revenue for the three months ended June 30, 2009, was $1,082,117, or 48.4% of
revenues, compared to $2,001,879, or 53.9% of revenues, for the three months
ended June 30, 2008.  The overall decrease in our cost of revenue is
due to our decreased cost of pipe sold because we sold no pipe in
2009.  The decrease in cost of revenue as a percentage of revenues was
due to the lower markup on pipe sales in prior periods.  This decrease
in cost of pipe sold was offset by increases in labor costs, subcontract costs,
depreciation, and other costs.  Labor and related costs increased by
$232,381, or 126.8%.  Subcontract labor costs increased by $82,067, or
72%.  These increases are 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 June 30,
2009.  The increase in depreciation and amortization expense for the
three months ended June 30, 2009 compared to the six months ended June 30, 2008
is primarily due to equipment purchased and placed in service in the second half
of 2008 and first quarter of 2009 as the company continues the expansion of it’s
Abbeville, Louisiana and Houston, Texas facilities.





The
following table presents the composition of cost of revenue for the three months
ended June 30, 2009 and 2008:





Cost
      of Revenue:
                2009
                
                
                
                2008
                
                
                
                VarianceDollars
                Percentage
                Dollars
                Percentage
                DollarsLabor
      and Related Costs
                $
                415,648
                
                38.4%
                
                $
                183,267
                
                9.2%
                
                $
                232,381Subcontract
      Labor
                
                196,124
                
                18.1%
                
                
                114,057
                
                5.7%
                
                
                82,067Depreciation
      and Amortization
                
                164,479
                
                15.2%
                
                
                91,174
                
                4.6%
                
                
                73,305Maintenance
                
                83,273
                
                7.7%
                
                
                40,946
                
                2.0%
                
                
                42,327Materials
      and Supplies
                
                36,459
                
                3.4%
                
                
                1,516,535
                
                75.8%
                
                
                (1,480,076)Insurance
                
                41,641
                
                3.8%
                
                
                25,274
                
                1.3%
                
                
                16,367Other
                
                144,493
                
                13.4%
                
                
                30,626
                
                1.5%
                
                
                113,867Total Cost of 
      Revenue
                $
                1,082,117
                
                100.0%
                
                $
                2,001,879
                
                100.0%
                
                $
                (919,762)





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.






16





Operating
Expenses





For the
three months ended June 30, 2009, our operating expenses totaled $619,495, as
compared to $392,055 in 2008, representing an increase of $227,440, or
58%.  The largest component of our operating expenses consists of
salaries and wages.  Rent, professional services, utilities, office
supplies and expenses, and depreciation all increased from June 30, 2008 to June
30, 2009.  Salaries and wages for general and administrative personnel
was $270,318 for the three months ended June 30, 2009, compared to $163,650 for
the three months ended June 30, 2008, an increase of $106,668, or
65.2%.  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
conservative salary.





Rent
expense totaled $81,794 for the three months ended June 30, 2009, as compared to
$54,689 for the three months ended June 30, 2008, an increase of $27,105, or
49.6%.  Rent expense for both the three months ended June 30, 2009,
and for the three months ended June 30, 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 to enable the
company to store more tubular goods.





Professional
services expense increased from $26,429 for the three months ended June 30,
2008, to $80,575 for the three months ended June 30, 2009, an increase of
$54,146, or 204.9%.  The increase is primarily a result of expenses we
incurred throughout the three months ended June 30, 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 legal and accounting fees associated with the growth of the Company
over the past several months.




Other
Income and Expense





Other
income and expense consists of investment income, gains or losses on sale of
assets, and interest expense, respectively.  Investment income, which
consists primarily of interest, amounted to $1,985 for the three months ended
June 30, 2009, compared to income of $6,801 for the three months ended June 30,
2008.  The decrease is due primarily to the lower yields being earned
on our invested cash balances.





Interest
expense totaled $25,309 for the three months ended June 30, 2009, as compared to
$23,489 for the three months ended June 30, 2008, an increase of $1,820 or
7.7%.  Interest expense pertains primarily to amounts due to
affiliates as well as to our notes payable with third parties, and the increase
relates to the financing of new vehicles.





Provision
for income taxes





For the
three months ended June 30, 2009, we reported an income tax expense of $200,882
compared to income tax expense of $499,413 for the three months ended June 30,
2008, an decrease of $298,531 or59.8%, which is the result of the decreased
revenue and pre-tax net income for that period.








Discussion
of Results of Operations for the Six months Ended June 30, 2009 compared to the
Six months Ended June 30, 2008




Revenues





Our
revenue for the six months ended June 30, 2009, was $4,683,663 compared to
$5,183,276 for the six months ended June 30, 2008, a decrease of $499,613, or
9.64%.  The decrease is attributable primarily to the decrease in pipe
sales of $2,994,657 and was partially offset by an increase in storage fees and
other income.  During late 2008, 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 logistics coordination and storage of tubular goods at our Houston
facility for customers and suppliers.  During the six months ended
June 30, 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
logistic coordination and handling of these tubular goods, which is included in
other income.




17







The
following table presents the composition of revenue for the six months ending
June 30, 2009 and 2008:





Revenue:
                  
                  2009
                    Dollars
                  
                  Percentage
                  
                  
                  2008
                    Dollars
                  
                  Percentage
                  
                  
                  Variance
                    DollarsInspection
      Fees
                  
                  $
                  3,289,805
                  
                  70.2
                  %
                  
                  $
                  1,840,837
                  
                  35.5
                  %
                  
                  $
                  1,448,968Storage
      Fees
                  
                  $
                  540,801
                  
                  11.6
                  %
                  
                  $
                  130,344
                  
                  2.5
                  %
                  
                  $
                  410,457Pipe
      Sales
                  
                  $
                  0
                  
                  0.0
                  %
                  
                  $
                  2,994,657
                  
                  57.8
                  %
                  
                  $
                  (2,994,657
                  )Other
      Income
                  
                  $
                  853,057
                  
                  18.2
                  %
                  
                  $
                  217,438
                  
                  4.2
                  %
                  
                  $
                  635,619Total
      Revenue
                  
                  $
                  4,683,663
                  
                  100.0
                  %
                  
                  $
                  5,183,276
                  
                  100.0
                  %
                  
                  $
                  499,613




Cost
of Revenue and Gross Profit





Our cost
of revenue for the six months ended June 30, 2009, was $2,215,132, or 47.3% of
revenues, compared to $2,557,047, or 49.3% of revenues, for the six months ended
June 30, 2008.  The overall decrease in our cost of revenue is due to
our decreased cost of pipe sold because we sold no pipe in 2009.  The
decrease in cost of revenue as a percentage of revenues was due to the lower
markup on pipe sales in prior periods.  This decrease in cost of pipe
sold was offset by increases in labor costs, subcontract costs, depreciation,
and other costs.  Labor and related costs increased by $412,889, or
110.2%.  Subcontract labor costs increased by $147,532, or
56.6%.  These increases are 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 six months ended June 30, 2009.  The
increase in depreciation and amortization expense for the six months ended June
30, 2009 compared to the six months ended June 30, 2008 is primarily due to
equipment purchased and placed in service in the second half of 2008 and first
quarter of 2009 as the company continues the expansion of it’s Abbeville,
Louisiana and Houston, Texas facilities.





The
following table presents the composition of cost of revenue for the six months
ended June 30, 2009 and 2008:




Cost
      of Revenue:
                        
                        2009
                          Dollars
                        
                        
                        Percentage
                        
                        
                        2008
                          Dollars
                        
                        
                        Percentage
                        
                        
                        Variance
                          DollarsLabor and Related Costs
                        
                        $
                        787,450
                        
                        
                        35.6
                        %
                        
                        $
                        374,561
                        
                        
                        14.7
                        %
                        
                        $
                        412,889Materials
      and  Supplies
                        
                        
                        91,127
                        
                        
                        4.1
                        %
                        
                        
                        1,538,882
                        
                        
                        60.2
                        %
                        
                        
                        (1,447,755
                        )Subcontract
      Labor
                        
                        
                        408,389
                        
                        
                        18.4
                        %
                        
                        
                        260,857
                        
                        
                        10.2
                        %
                        
                        
                        147,532Maintenance
                        
                        
                        156,855
                        
                        
                        7.1
                        %
                        
                        
                        96,200
                        
                        
                        3.7
                        %
                        
                        
                        60,655Insurance
                        
                        
                        73,865
                        
                        
                        3.3
                        %
                        
                        
                        45,364
                        
                        
                        1.8
                        %
                        
                        
                        28,501Depreciation
      and Amortization
                        
                        
                        340,176
                        
                        
                        15.4
                        %
                        
                        
                        181,368
                        
                        
                        7.1
                        %
                        
                        
                        158,808Other
                        
                        
                        357,270
                        
                        
                        16.1
                        %
                        
                        
                        59,815
                        
                        
                        2.3
                        %
                        
                        
                        297,455Total Cost of 
      Revenue
                        
                        $
                        2,215,132
                        
                        
                        100.0
                        %
                        
                        $
                        2,557,047
                        
                        
                        100.0
                        %
                        
                        $
                        (341,915
                        )




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
six months ended June 30, 2009, our operating expenses totaled $1,086,028, as
compared to $672,277 in 2008, representing an increase of $413,751, or
61.5%.  The largest component of our operating expenses for 2008
consists of salaries and wages.  Rent, professional services,
utilities, office supplies and expenses, depreciation, and other costs all
increased from June 30, 2008 to June 30, 2009.  Salaries and wages for
general and administrative personnel was $459,014 for the six months ended June
30, 2009, compared to $273,914 for the six months ended June 30, 2008, an
increase of $195,100, or 71.2%.  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 conservative salary.





Rent
expense totaled $149,196 for the six months ended June 30, 2009, as compared to
$113,531 for the six months ended June 30, 2008, an increase of $35,665, or
31.4%.  Rent expense for both the six months ended June 30, 2009, and
for the six months ended June 30, 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/decrease] is
attributable to cost of additional land used at our Houston, Texas facility to
enable the company to store more tubular goods.





Professional
services expense increased from $70,208 for the six months ended June 30, 2008,
to $150,719 for the six months ended June 30, 2009, an increase of $80,511, or
114.7%.  The increase is primarily a result of expenses we incurred
throughout the six months ended June 30, 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 legal and
accounting fees associated with the growth of the Company over the past several
months.







18





Other
Income and Expense





Other
income and expense consists primarily of investment income, gains or losses on
sale of assets, and interest expense, respectively.  Investment
income, which consists primarily of interest, amounted to a gain of $3,243 for
the six months ended June 30, 2009, compared to income of $9,437 for the six
months ended June 30, 2008.  The decrease is due primarily to the
lower yields being earned on our invested cash balances.





Interest
expense totaled $49,127 for the six months ended June 30, 2009, as compared to
$47,014 for the six months ended June 30, 2008, an increase of $2,113 or
4.5%.  Interest expense pertains primarily to amounts due to
affiliates as well as to our notes payable with third parties, and the increase
relates to the financing of new vehicles, less the principal payments on those
debts and obligations.





Provision
for income taxes





For the
six months ended June 30, 2009, we reported an income tax expense of $492,534
compared to income tax expense of $731,659 for the six months ended June 30,
2008, a decrease of $239,125 or 32.7%, which is the result of the decreased
revenue and pre-tax net income for that period.




Comparative
financial information for the six months ended June 30:




June
      30, 2009
                  
                  
                  June
      30, 2008
                  
                  
                  June
      30, 2007
                  
                  
                  June
      30, 2006
                  
                  
                  June
      30, 2005Revenues-Six
      Mo. Ended June 30
                  
                  $
                  4,683,663
                  
                  
                  $
                  5,183,276
                  
                  
                  $
                  1,508,481
                  
                  
                  $
                  1,005,169
                  
                  
                  
                  928,635Cost
      of Revenues
                  
                  
                  2,215,132
                  
                  
                  
                  2,557,047
                  
                  
                  
                  664,071
                  
                  
                  
                  504,000
                  
                  
                  
                  460,427Gross
      Profit
                  
                  
                  2,468,531
                  
                  
                  
                  2,626,229
                  
                  
                  
                  844,410
                  
                  
                  
                  501,169
                  
                  
                  
                  468,208Operating  ExpensesGeneral
      & Administrative Expenses
                  
                  
                  996,806
                  
                  
                  
                  637,902
                  
                  
                  
                  306,567
                  
                  
                  
                  323,363
                  
                  
                  
                  380,613Depreciation
                  
                  
                  89,222
                  
                  
                  
                  34,375
                  
                  
                  
                  30,975
                  
                  
                  
                  44,490
                  
                  
                  
                  46,158Total
      Operating Expenses
                  
                  
                  1,086,028
                  
                  
                  
                  672,277
                  
                  
                  
                  337,542
                  
                  
                  
                  367,853
                  
                  
                  
                  426,771Income
      from Operations
                  
                  
                  1,382,503
                  
                  
                  
                  1,953,952
                  
                  
                  
                  506,868
                  
                  
                  
                  133,316
                  
                  
                  
                  41,437Other
      Income (Expense)
                  
                  
                  (46,459
                  )
                  
                  
                  (36,789
                  )
                  
                  
                  (46,242
                  )
                  
                  
                  (55,843
                  )
                  
                  
                  (60,706
                  )Income
      (Loss) Before Income Taxes
                  
                  
                  1,336,044
                  
                  
                  
                  1,917,163
                  
                  
                  
                  460,626
                  
                  
                  
                  77,473
                  
                  
                  
                  (19,269
                  )Provision
      for Income Taxes
                  
                  
                  492,534
                  
                  
                  
                  731,659
                  
                  
                  
                  230,965
                  
                  
                  
                  26,341
                  
                  
                  
                  (6,550
                  )Net
      Income (Loss)
                  
                  $
                  843,510
                  
                  
                  $
                  1,185,504
                  
                  
                  $
                  229,661
                  
                  
                  $
                  51,132
                  
                  
                  $
                  (12,719
                  )






19










Capital
Resources and Liquidity





As of
June 30, 2009 we had $1,135,408 in cash and cash equivalents.  Our
cash outflows have consisted primarily of expenses associated with our
operations.  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.





Off-Balance
Sheet Arrangements




We do not
have any off-balance sheet arrangements.





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
4.  Controls and Procedures





a)  Evaluation of Disclosure
Controls. George M. Sfeir, our Chief Executive Officer and Ms. (Joyce)
Chongyuan Zhu our Chief Financial Officer, evaluated the effectiveness of our
disclosure controls and procedures as of the end of our second 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 June 30, 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.






20






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.





There are
no material changes to our risk factors previously disclosed on Form 10-K, dated
December 31, 2008.




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




There
were no unregistered sales of Equity Securities and Use of Proceeds during the
period ended June 30, 2009.




Item
3. Defaults Upon Senior Securities.




There
were no defaults upon senior securities during the period ended June 30,
2009.




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




There
were no matters submitted for a vote of our security holders during the period
ended June 30, 2009.




Item
5. Other Information.




There is
no other information required to be disclosed under this item which was not
previously disclosed.




Item
6. Exhibits




(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









21








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:
      August 14, 2009
              By:
              /s/
      George M. SfeirGeorge
      M. SfeirPresident
      & Chief Executive Officer.By:
              /s/
      Joyce Zhu(Joyce)
      Chongyuan ZhuChief
      Financial Officer.