UNITED STATES


SECURITIES AND EXCHANGE COMMISSION


WASHINGTON, D.C. 20549


_______________





FORM 10-Q


_______________





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





For the quarterly period ended March 31, 2011





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





For the Transition period fromto.










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


3639 Ambassador Caffery Blvd


P.O. Box 52523


Lafayette, LA 70505


(Address of Principal Executive Offices)


_______________





(337) 984-2000


(Issuer Telephone number)





(334) 988-1777


Issuer Fax Number


_______________








www.engt.com




Securities registered under Section 12(b) of the Exchange Act:
None.Securities registered under Section 12(g) of the Exchange Act
Common Stock, par value $0.001 per share(Title of Class)




Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.


Yes o                      No x





Indicate by check mark if the registrant is not required to file reports pursuant to Section 14 or Section 15(d) of the Act.


Yes o           No x









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 is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company filer.  See definition of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the Exchange Act (Check one):


Large Accelerated Filer o   Accelerated Filer o       Non-Accelerated Filer o       Smaller Reporting Companyx





Indicate by check mark whether the registrant is a shell company as defined in Rule 12b-2 of the Exchange Act.


Yes o  No x





State the number of shares outstanding of each of the issuer’s classes of common equity, as of May 14, 2011: 168,963,900 shares of common stock.











ENERGY & TECHNOLOGY, CORP.





FORM 10-Q





March 31, 2011





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 4T.
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), Energy Technology Manufacturing and Threading, LLC (ETMT), and Energy Pipe, LLC (EP), 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, ETMT, and EP (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.







PART I.  Financial Information





ITEM 1. Financial Statements





ENERGY & TECHNOLOGY, CORP.Consolidated Balance SheetsMarch 31,


December 31,2011


2010(Unaudited)


(Audited)AssetsCurrent AssetsCash and Cash Equivalents

$
234,738


$
453,658Accounts ReceivableTrade, Net


130,938



444,023Other


24,826



17,638Inventory


3,489,611



3,494,163Prepaid Expenses


32,761



48,891Deferred Tax Asset


729,603



462,259Total Current Assets


4,642,477



4,920,632Property and Equipment, Net


5,539,814



5,691,289Other AssetsPatent, net


472,566



479,763Deferred IPO Expenses


72,520



72,520Deposits


4,988



4,988Other Assets


50,857



101,828Total Other Assets


600,931



659,099Total Assets

$
10,783,222


$
11,271,020




See notes to consolidated financial statements.




1




ENERGY & TECHNOLOGY, CORP.Consolidated Balance Sheets (Continued)March 31,


December 31,2011


2010(Unaudited)


(Audited)Liabilities and Stockholders' EquityCurrent LiabilitiesCurrent Maturities of Notes Payable

$
231,211


$
234,567Accounts Payable


158,321



153,157Accrued Payroll and Payroll Liabilities


94,288



56,725Accrued Rent


1,525,000



1,487,500Customer Deposits


551,075



551,075Income Taxes Payable


19,022



19,022Total Current Liabilities


2,578,917



2,502,046Long-Term LiabilitiesNotes Payable


560,638



593,979Deferred Taxes Payable


958,360



954,470Due to Affiliates


1,829,449



1,875,998Total Long-Term Liabilities


3,348,447



3,424,447Stockholders' EquityPreferred Stock - $.001 Par Value; 10,000,000 Shares Authorized,None Issued


-



-Common Stock - $.001 Par Value; 250,000,000 Shares Authorized,168,909,500 Shares and 168,795,500 Shares Issued and Outstandingat March 31, 2011 and Decemberr 31, 2010, Respectively


168,910



168,796Discount on Capital Stock


(115,100
)


(115,100
)Paid-In Capital


4,244,597



4,237,741Retained Earnings


557,451



1,053,090Total Stockholders' Equity


4,855,858



5,344,527Total Liabilities and Stockholders' Equity

$
10,783,222


$
11,271,020




See notes to consolidated financial statements.




2




ENERGY & TECHNOLOGY, CORP.Consolidated Statements of Operations(Unaudited)Three Months EndedMarch 31,2011


2010Revenues

$
180,732


$
888,659Cost of RevenuesDepreciation


169,256



208,060Labor and Related Costs


145,297



171,252Subcontract Labor


135,781



169,404Materials and Supplies


22,197



16,240Insurance


18,026



31,486Other Costs


16,060



34,644Repairs and Maintenance


14,250



18,454Total Costs of Revenues


520,867



649,540Gross (Loss) Profit


(340,135
)


239,119Operating ExpensesSalaries and Wages


115,448



315,202Rent


65,586



66,722Professional Services


59,990



74,677Depreciation


40,952



30,263Travel, Lodging and Meals


15,810



31,159Office


14,716



15,352Utilities


10,905



12,241Communications


9,574



10,771Patent Amortization


7,196



7,196Repairs and Maintenance


5,952



8,468Other


33,921



26,176Total Operating Expenses


380,050



598,227(Loss) Income from Operations


(720,185
)


(359,108
)Other Income (Expense)Other Income


604



475,323Gain on Sale of Assets


-



428Investment Income


346



4,640Interest Expense


(39,858
)


(36,005
)Total Other Income (Expense)


(38,908
)


444,386(Loss) Income before Income Taxes


(759,093
)


85,278Provision for Income Taxes


(263,454
)


33,125Net (Loss) Income

$
(495,639
)

$
52,153(Loss) Earnings per Share - Basic

NM


$
0.01(Loss) Earnings per Share - Diluted

NM


$
0.01




See notes to consolidated financial statements.




3




ENERGY & TECHNOLOGY CORP.Consolidated Statements of Changes in Stockholders' Equity (Unaudited)Common StockDiscount on


Additional





TotalCapital


Paid-In


Retained


Stockholders'Shares


Amount


Stock


Capital


Earnings


EquityBalance at January 1, 2010


53,580,000


$
53,580


$
-


$
4,112,112


$
2,575,635


$
6,741,327Bonus shares issued


88,000



88



-



94,952



-



95,040Net Income


-



-



-



-



52,153



52,153Balance at March 31, 2010


53,668,000


$
53,668


$
-


$
4,207,064


$
2,627,788


$
6,888,520Balance at January 1, 2011


168,795,500


$
168,796


$
(115,100
)

$
4,237,741


$
1,053,090


$
5,344,527Bonus shares issued


114,000



114



-



6,856



-



6,970Net Income (Loss)


-



-



-



-



(495,639
)


(495,639
)Balance at March 31, 2011


168,909,500


$
168,910


$
(115,100
)

$
4,244,597


$
557,451


$
4,855,858




See notes to consolidated financial statements.




4




ENERGY & TECHNOLOGY, CORP.Consolidated Statements of Cash Flows (Unaudited)For the Three Months Ended March 312011


2010Cash Flows from Operating ActivitiesNet (Loss) Income

$
(495,639
)

$
52,153Adjustments to Reconcile Net Income to Net Cash Provided byOperating ActivitiesDepreciation


210,208



228,858Stock issued as Bonus


6,970



95,040Amortization of Patent Costs


7,196



7,195Deferred Income Taxes


(263,454
)


(27,685
)Changes in Assets and LiabilitiesTrade Receivables


313,085



799,864Other Receivables


(7,188
)


1,475Inventory


4,552



-Prepaid Expenses


16,130



7,883Accounts Payable


5,164



(1,248,458
)Accrued Payroll and Payroll Liabilities


37,564



50,374Income Taxes Payable


-



60,810Accrued Rent


37,500



37,500Net Cash (Used in) Provided by Operating Activities


(127,912
)


65,009Cash Flows from Investing ActivitiesIncrease in Other Assets


50,971



(797
)Purchase of Property and Equipment


(58,733
)


(68,780
)Net Cash Used in Investing Activities


(7,762
)


(69,577
)Cash Flows from Financing ActivitiesNet (Principal Repayments) Borrowings from Affiliates


(46,549
)


24,374Net (Principal Repayments) Borrowings on Notes Payable


(36,697
)


(51,559
)Net Cash Used in Financing Activities


(83,246
)


(27,185
)Net (Decrease) Increase in Cash and Cash Equivalents


(218,920
)


(31,753
)Cash and Cash Equivalents, Beginning of Year


453,658



1,657,330Cash and Cash Equivalents, End of Year

$
234,738


$
1,625,577Supplemental Disclosure of Cash Flow InformationCash Paid During the Period for Interest


30,208



9,201Cash Paid During the Period for Taxes


-



-


See notes to consolidated financial statements.




5




ENERGY & TECHNOLOGY, CORP.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.




Note 1.   Organization




Technical Industries & Energy, Corp. (“TIE” or the “Company”) was founded in the State of Delaware on November 29, 2006.  On January 3, 2007, we entered into a Stock Purchase and Share Exchange Agreement with Technical Industries, Inc., (“TII”) a Louisiana corporation founded May 11, 1971 whereby TII became our wholly owned operating subsidiary. 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.  The company activities are directed towards manufacturing, reclamation of essential commodities, energy, technology, sugar, biofuel, oil & gas equipment and products. We plan to expand our operations and may acquire other companies with services and products which complements existing services and products and offer our latest technology exploration  or other where needed, help the energy company reach deep energy reserves that present technology cannot reach and increase opportunities for income, growth and financing. Our business offices are located at Petroleum Towers, Suite 530 P.O. Box 52523, Lafayette, LA, 70505. Our telephone number is (337) 984-2000.





We are headquartered in Lafayette, Louisiana with a branch office and production facilities in Houston, Texas and Abbeville, Louisiana. We offer several services, which can be described as engineering, manufacturing, reclamation, sales, and non-destructive testing (“NDT”) services, storage, maintenance for pipe and equipment utilized in the energy industry.





NDT is more fully described as the application of industry-wide and/or proprietary test methods to examine pipe and equipment utilized in the energy industry, or any object, material or system associated therewith, without impairing their future usefulness. An essential characteristic of NDT is that the examination process does not change the composition, shape, integrity or properties of the test object, thus allowing the object to be utilized for the purpose for which it was manufactured. The end result is less time involved in testing, lower costs and less waste of materials than other forms of pipe inspection that require that the test object be destroyed.





Through our staff of industrial, electrical and computer engineers, we offer engineering services to assist our customers in the design, improvement, installation, and/or integration of NDT components and systems.  The services, which vary according to the needs of the customer, focus on design, layout, testing, and troubleshooting of NDT systems hardware and software.





We also manufacture our own proprietary ultrasonic NDT electronic equipment systems, which perform the NDT services including ultrasonic inspection, electromagnetic inspection and others. The layout and design of the systems’ physical components are produced and tested by our engineers. Once the design has passed testing, the individual components are built into the design. Some of the components, such as the circuit boards, may be assembled by a third party before being incorporated into the design. Last, the final assembly is integrated with proprietary inspection software developed by our programmers.





Another component of our business consists of selling pipe and equipment used in exploration, drilling, and production of oil and gas.  The manufactured pipe and equipment is supplied to us by various steel mills in finished or unfinished from for us to process. Before the pipe and equipment is offered to our customers for sale, it must undergo further processing, such as blasting, threading, coating, and non-destructive testing inspection before being turned into a final product.  We only sell oilfield pipe and equipment that has passed inspection and meets or exceeds API (American Petroleum Institute) and/or customer specifications.





Lastly, we provide manufacturing, reclamation including ultrasonic pipe inspection technology. Services include full-length electromagnetic inspection for pipe and equipment utilized in the energy industry, and full length ultrasonic inspection systems for new and used pipe including drill stem, tubing, casing, and line pipe. We offer several different types of electromagnetic and ultrasonic inspection processes, each of which is tailored to the inspection of a particular pipe characteristic, such as size, length, wall thickness, ovality, or detection of a particular pipe defect. The type of process is determined by the customer according to their particular needs.





All of the pipe and equipment that enters our facilities are carefully documented and incorporated into our propriety inventory tracking system, which is accessible to customers on the World Wide Web. Through this system, the customer is able to obtain real-time storage and inspection information on his pipe that is located at our facilities.





We operate year-round, 24 hours a day, seven days a week when needed, and the number of employees has exceeded 200, however, due to the market slowdown and BP accident in the Gulf of Mexico, the number of current employees is down to approximately 55.




6




ENERGY & TECHNOLOGY, CORP.
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




Today, we continue to serve the energy industry by manufacturing and maintaining proprietary systems that detect, and collect all available defects and wall thickness and outside diameter/ovality readings and store them in their proper position on the pipe, produce a three-dimensional image of the pipe, and allow the engineer to simulate burst, collapse, and pull apart the pipe on the computer prior to drilling. This helps energy companies reach reserves that otherwise cannot be reached with present technology. As a result of this advanced technology, the American Petroleum Institute (API) appointed Mr. George M. Sfeir, to serve on their 2008 committee for non-contact inspection. Recently, Technical Industries, Inc. developed new US Patent No. 7,263,887 and international patent pending inspection technology needed in order to reach deep energy reserves present technology cannot reach. The U.S. patent is current until 2039.





We serve customers in Houston, Texas, Newfoundland, Canada, and Lafayette, Abbeville, Louisiana, the Rockies, and we are expanding to Saudi Arabia, Egypt, UAE, Mexico, and other parts of the World. Our customer base of over 50 accounts consists of oil companies, steel mills, material suppliers, drilling companies, material rental companies, and engineering companies. We handle regular projects and specialize in deep water projects including BP Crazy Horse, ExxonMobil Alabama Bay and ExxonMobil GrandCanyon, Sakhalin Island and Caspian Sea, Texas A&M University Ocean Explorer, and other projects.





Additional services include full-length electromagnetic inspection for oil-field pipe and equipment and full length ultrasonic inspection systems for new and used tubing, casing and line-pipe, wet or dry Magnetic Particle Inspection ("MPI"); Dye Penetrant Testing ("PT"), or Ultrasonic Testing of the End Areas ("UT SEA") of plain end and threaded connections, including drill collars and drilling rig inspection; mill systems and mill surveillance; testing and consulting services. Today we continue to serve the energy industry niche by manufacturing and maintaining proprietary systems that are capable of detecting defects through the use of our patented technology.





Note 2.   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., the accounts of Energy Technology Manufacturing and Threading LLC, 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:  a) pipe is delivered and the customer takes ownership and assumes the risks of loss, b) collection of the relevant receivable is probable, c) persuasive evidence of an arrangement exists, and d) the sales price is fixed or determinable.





Trade Receivables


Trade accounts receivable are carried at their estimated collectible amounts.  Trade credit is generally extended on a short-term basis; thus receivables do not bear interest, although a finance charge may be applied to amounts past due. Trade accounts receivable are periodically evaluated for collectibility based on past credit history with customers and their current financial condition.  Provisions for uncollectible amounts are determined based on management’s estimate of collectability




7




ENERGY & TECHNOLOGY, CORP.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.





Note 2.   Summary of Significant Accounting Policies (Continued)





Inventory


Inventory is stated at the lower of cost determined by the specific identification method or market.  At March 31, 2011 and at December 31, 2010, inventory consisted of pipe available for sale.





Property and Equipment


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





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





Valuation of Long-Lived Assets


In the event facts and circumstances indicate that carrying amounts of long-lived assets may be impaired, the Company evaluates the recoverability of its long-lived assets using the estimated future undiscounted cash flows associated with the asset compared to the asset’s carrying amount to determine if a write-down is required, pursuant to the provisions of Financial Accounting Standards Board (FASB) ASC 360-10-35.  Any impairment loss is measured as the difference between the carrying amount and the fair value of the impaired asset.





Credit Risk


Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of temporary cash investments and trade receivables. For the three months ended March 31, 2010, three customers made up approximately 55% of the Company’s revenues, and one customer made up approximately 78% of the Company’s receivable balance at March 31, 2010.  For the three months ended March 31, 2011, two customers made up approximately 35% of the Company’s revenues, and approximately 13% of the Company’s receivable balance at March 31, 2011.





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





Advertising


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





Cash and Cash Equivalents


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


The Company recognizes income taxes in accordance with FASB ASC 740, “Income Taxes” (formerly Statement of Financial Accounting Standards (SFAS) No. 109, Accounting for Income Taxes).  ASC 740 uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of “temporary differences” by applying enacted statutory tax rates applicable to future years to the difference between financial statement carrying amounts and the tax basis of existing assets and liabilities.  Deferred taxes are also recognized for operating losses and tax credits that are available to offset future income taxes.





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








8





ENERGY & TECHNOLOGY, CORP.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.





Note 2.   Summary of Significant Accounting Policies (Continued)





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.





Recent Accounting Pronouncements





In June 2009, the Financial Accounting Standards Board (FASB) issued authoritative guidance that requires an acquirer in a business combination, upon initially obtaining control of another entity, to recognize the assets, liabilities and any non-controlling interest in the acquiree at fair value as of the acquisition date.  Any contingent consideration is also required to be recognized and measured at fair value on the date of acquisition.  Acquisition related costs are to be expensed as incurred.  Assets acquired and liabilities assumed in a business combination that arise from contingencies are to be recognized at fair value if fair value can be reasonably estimated.  This authoritative guidance became effective for business combinations closing on or after January 1, 2009.





In June 2009, the FASB changed the accounting guidance for the consolidation of variable interest entities. The current quantitative-based risks and rewards calculation for determining which enterprise is the primary beneficiary of the variable interest entity will be replaced with an approach focused on identifying which enterprise has the power to direct the activities of a variable interest entity and the obligation to absorb losses of the entity or the right to receive benefits from the entity. The new guidance became effective for the Company on January 1, 2010 with no impact on its financial statements.





In June 2009, the FASB changed the accounting guidance for transfers of financial assets. The new guidance increases the information that a reporting entity provides in its financial reports about a transfer of financial assets; the effects of a transfer on its statement of financial condition, financial performance and cash flows; and a continuing interest in transferred financial assets.  In addition, the guidance amends various concepts associated with the accounting for transfers and servicing of financial assets and extinguishments of liabilities including removing the concept of qualified special purpose entities.  This new guidance was adopted by the Company on January 1, 2010 with no impact on its financial statements.





In January 2010, the FASB issued authoritative guidance expanding disclosures related to fair value measurements including (i) the amounts of significant transfers of assets or liabilities between Levels 1 and 2 of the fair value hierarchy and the reasons for the transfers, (ii) the reasons for transfers of assets or liabilities in or out of Level 3 of the fair value hierarchy, with significant transfers disclosed separately, (iii) the policy for determining when transfers between levels of the fair value hierarchy are recognized and (iv) for recurring fair value measurements of assets and liabilities in Level 3 of the fair value hierarchy, a gross presentation of information about purchases, sales, issuances and settlements.  The new guidance further clarifies that (i) fair value measurement disclosures should be provided for each class of assets and liabilities (rather than major category), which would generally be a subset of assets or liabilities within a line item in the statement of financial position and (ii) disclosures should be provided about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements for each class of assets and liabilities included in Levels 2 and 3 of the fair value hierarchy.  The disclosures related to the gross presentation of purchases, sales, issuances and settlements of assets and liabilities included in Level 3 of the fair value hierarchy became effective for the Company on January 1, 2011 with no impact on its financial statements.  The remaining disclosure requirements and clarifications made by the new guidance became effective January 1, 2010 with no impact on its financial statements.





In December 2010, the FASB issued authoritative guidance that modified Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts.  For those reporting units, an entity is required to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists.  In determining whether it is more likely than not  that a goodwill impairment exists, an entity should consider whether there are any adverse qualitative factors indicating that an impairment may exist such as if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.  This new authoritative guidance became effective on January 1, 2011 with no impact on the Company’s financial statements.





In January 2011, the FASB issued authoritative guidance that deferred the effective date of disclosure requirements for public entities about troubled debt restructurings to be concurrent with the effective date of the guidance for determining what constitutes a troubled debt restructuring, which is concurrently being addressed by the FASB.  The guidance is anticipated to be effective for interim and annual reporting periods ending after June 15, 2011.





9





ENERGY & TECHNOLOGY, CORP.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS





Note 3.   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 4.   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 5.   Major Customers





For the three months ended March 31, 2011, the Company had two customers which generated revenues in excess of 10% of the Company’s total revenues.  Revenues for these three customers were approximately 35% of total revenues, and the total balance due from these two customers at March 31, 2011 was $224,272, of which $200,680 has been included in the allowance for bad debts.








Note 6.   Related Party Transactions





Included in due to affiliates is $1,476,353 and $1,447,405 at March 31, 2011 and December 31, 2010, respectively, 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 8.00%.  Interest expense associated with this obligation totaled $28,948 and $26,804 for the three month periods ended March 31, 2011 and 2010, respectively.








Note 7.   Earnings per Share





The weighted average common shares outstanding amounted to 168,884,811 and 53,600,533 for the three months ended March 31, 2011 and March 31, 2010, respectively.








Note 8.   Fair Value Disclosures





The following methods and assumptions were used by the Company in estimating fair values for financial instruments:





Cash and cash equivalents: The carrying amount reported in the balance sheet approximates fair value.





Notes Payable: The fair value of notes payable approximates the carrying amount reported in the balance sheet.





Due to Affiliates:  The carrying amount approximates fair values.





While these estimates of fair value are based on management's judgment of appropriate factors, there is no assurance that if the Company had disposed of such items at March 31, 2011 or December 31, 2010, the estimated fair values would have been achieved.  Market values may differ depending on various circumstances not taken into consideration in this methodology.  The estimated fair values at March 31, 2011 and December 31, 2010, should not necessarily be considered to apply at subsequent dates.





10





ENERGY & TECHNOLOGY, CORP.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS





Note 8.   Fair Value Disclosures (Continued)





In addition, other assets and liabilities that are not defined as financial instruments are not included in the following disclosures, such as property and equipment.  The estimated fair values of the Company's financial instruments are as follows:





March 31, 2011


31-Dec-10Carrying


Fair


Carrying


FairAmount


Value


Amount


ValueFinancial assets:Cash and cash equivalents

$
234,738


$
234,738


$
453,658


$
453,658Financial liabilities:Notes Payable

$
791,849


$
791,849


$
828,546


$
828,546Due to Affiliates


1,829,449



1,829,449



1,875,998



1,875,998$
2,621,298


$
2,621,298


$
2,704,544


$
2,704,544




Note 9.    Subsequent Events





In accordance with the subsequent events topic of the FASB ASC, Topic No. 855, “Subsequent Events”, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effects of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of March 31, 2011.  In preparing these financial statements, the Company evaluated the events and transactions through the date these financial statements were issued.




11





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





General





Headquartered in Lafayette, Louisiana, with production facilities in Houston, Texas and Abbeville, Louisiana, Energy & Technology, Corp. provides non-destructive testing (NDT) services, OCTG and oilfield pipe sales, service and storage, and rig and equipment sales.  Originally founded on May 11, 1971 as an inspection company, Energy & Technology, Corp. currently serves customers throughout the oil patch of Louisiana and Texas as well as in Canada, Mexico, and in the Gulf of Mexico. The Company’s customer base of over 130 accounts consists of major oil companies, steel mills, material suppliers, drilling companies, tool rental companies, and natural gas storage operators. Due to the nature of its technology, the Company maintains competitive advantages in offshore deep water and other onshore critical projects.




Technical Industries, Inc., a wholly owned subsidiary of Energy & Technology, Corp., manufactures its own proprietary NDT equipment.  The Company’s patented ultrasonic systems have some of the largest OD and pipe length capabilities in the industry and the deepest penetration capability offered for wall thickness measurement.   The Company holds patents on certain exclusive inspection technology that allows oil and gas companies to use their current drill strings and other equipment to reach depths that were previously unreachable. This technology can make wells safer, increase the success rate for critical wells, and greatly reduce the chances of a failure. As the industry moves to ever deeper reserves and makes advances in horizontal drilling, oil and gas wells are becoming more and more expensive and difficult to drill, making this technology more of a necessity.




In the oilfield pipe sales and storage segment, Energy & Technology, Corp utilizes a state-of-the-art web based inventory management system that allows each client to view and track projects during processing, to locate inventory throughout the plant, and access reports, bill of ladings, tally sheets, logs and other required information.




Energy Technology Manufacturing & Threading, LLC’s new facility has been completed and is fully operational.  This facility is capable of threading, bucking, and repair of drill pipe, casing, and tubing up to 11 7/8” diameter. The plant is equipped with a Computer Controlled lathe accurate to within the most critical of tolerances, and has the capability to manufacture, thread, repair, and manufacture pup joints and marker joints to any length the customer requires, as well as to machine any threads for which specs can be furnished. Technicians have between 10 and 34 years of experience in the manufacturing and threading industry. This new facility brings ENGT one step closer to its goal of supplying all tubular services under one roof.




Key Ongoing Operational Processes:




Update ISO Certification




Energy & Technology, Corp. recognizes that quality is every bit as important as price and prompt service.  This is even truer of the Company’s typical client, who often contracts for services that other companies are not able to provide.  In response to our clients requirements, the Company has obtained the latest ISO:9001 certification by Moody’s, recognized in the industry as representing the highest quality control available. As the Company’s business lines are very synergistic, management feels that it can leverage this dominant position to increase share in the markets in which it competes, and likely more in the critical service arena.




Foreign Trade Zone Status




Energy & Technology, Corp. has selected the well known auditing and financial consulting firm KPMG to assist the Company in meeting the requirements to establish a Foreign Trade Zone at its Houston, Texas facility.  KPMG has started the initial feasibility analysis with the formal application to follow. The establishment of a Foreign Trade Zone is expected to produce a substantial increase in the Company’s ability to sell to overseas markets, and make the Company a far more attractive distribution partner for foreign manufacturers. Management feels that market share could be taken through a successful designation as an FTZ subzone.




Increased Sales and Marketing Effort




Energy & Technology, Corp. has grown over the historical period without an aggressive marketing and sales effort. New business was generated from referrals, technical sessions given to oil & gas and industry related companies, the company website, and through the use of a marketing company on a limited basis. Currently, there are several employees whose duties are focused on sales, and one marketing and promotional activity director.  Management believes revenue can be greatly increased by expanding the Company's sales force.




12




Diversification




Energy & Technology, Corp. has diligently worked to diversify its business model by adding sales, service, and storage of OCTG and all types of oilfield pipe, as well as equipment leasing and sales. The Company’s new threading and repair facility, located on our Houston campus, became operation in July 2010.  Additional growth will come domestically, but management feels that overseas expansion is critical to the ultimate success of the business plan.




Critical Accounting Policies





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





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





Inventory.  Inventory is stated at the lower of cost determined by the specific identification method or market.  At March 31, 2011, inventory consisted of pipe available for sale.





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





Valuation of Long-Lived Assets.In the event facts and circumstances indicate that carrying amounts of long-lived assets may be impaired, the Company evaluates the recoverability of its long-lived assets using the estimated future undiscounted cash flows associated with the asset compared to the asset’s carrying amount to determine if a write-down is required, pursuant to the provisions of SFAS Financial Accounting Standards Board (FASB) ASC 360-10-35.  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, 2010 to March 31, 2011





At March 31, 2011, total assets amounted to $10,783,222 compared to $11,271,020 at December 31, 2010, a decrease of $487,798, or 4.3%. The decrease is primarily due to a decrease in cash of $218,920, a decrease in accounts receivable of $313,085, and a decrease of property and equipment of $151,475, partially offset by an increase in deferred tax asset of $267,344.





Our liabilities at March 31, 2011, totaled $5,927,364 compared to $5,926,493 at December 31, 2010, an increase of $871. The increase is primarily due to an increase in accrued payroll and payroll liabilities of 37,563, an increase in accrued rent of $37,500, partially offset by a decrease in notes payable of $36,697 and a decrease in other loans from affiliates of $46,549.





Total stockholder’s equity decreased from $5,344,527 at December 31, 2010, to $4,855,858 at March 31, 2011. This decrease was due to the issuance of 14,000 shares of common stock offset by the net loss for the quarter.





Cash and Cash Equivalents





Cash and Cash Equivalents totaled $234,738 at March 31, 2011, a decrease of $218,920 from the balance of $453,658 at December 31, 2010. The decrease in cash and cash equivalents was primarily due to our investment in property and equipment, primarily within our Houston facility, as well as repayment of debt during the three months ended March 31, 2011.





Inventory





We began purchasing pipe for sale to customers in December, 2007. This was an opportunity for us to expand our services to our customers. It is anticipated that the Company will continue its efforts to expand its sales of pipe, even though the market has contracted substantially due to the current economy.




13




Property and Equipment





The decrease in property and equipment is primarily due to the depreciation for the three months ended March 31, 2011 of $210,208.  The Company completed construction of a new building and equipment at our Houston, TX facility.  This facility, which became operational in July of 2010, was developed in order to add pipe threading services for our customers.  Additions totaling $58,733 were purchased in the three months March 31, 2011.





Deferred Tax Asset/Income Taxes Payable





Due to the Company’s loss for the three months ended March 31, 2011, our deferred tax asset was increased by $267,344.  We have increased our deferred income tax liability by $3,890 due to the change in book and tax depreciation differences.





Accounts Payable





Accounts payable at March 31, 2011 totaled $158,321 compared to $153,157 at December 31, 2010, an increase of $5,164.  This nominal increase is due to the normal operations and payments within 30 to 45 days of receipt of invoices.





Discussion of Results of Operations for the Three Months Ended March 31, 2011 compared to the Three Months Ended March 31, 2010





Revenues





Our revenue for the three months ended March 31, 2011, was $180,732 compared to $888,659 for the three months ended March 31, 2010, a decrease of $707,927 or 79.7%.  The decrease is attributable primarily to decreased inspection fees attributable to the current recession.





The following table presents the composition of revenue for the three months ended March 31, 2011 and 2010:




2011





2010





VarianceRevenue:

Dollars


Percentage


Dollars


Percentage


DollarsInspection Fees

$
116,302



64.3
%

$
515,693



58.1
%

$
(399,391.00
)Storage Fees


10,666



5.9
%


305,110



34.3
%


(294,444
)Pipe and Other Equipment Sales


45,146



25.0
%


-



0.0
%


45,146Other Income


8,618



4.8
%


67,856



7.6
%


(59,238
)Total Revenue

$
180,732



100.0
%

$
888,659



100.0
%

$
(707,927
)




Cost of Revenue and Gross Profit





Our cost of revenue for the three months ended March 31, 2011, was $520,867, or 288.2% of revenues, compared to $649,540, or 73.1% of revenues, for the three months ended March 31, 2010. The overall decrease in our cost of revenue is primarily due to our decreased sales.  The increase in cost of revenue as a percentage of revenues was due to the fixed costs which are included in operations.





The following table presents the composition of cost of revenue for the three months ended March 31, 2011 and 2010:





2011


2010





VarianceCost of Revenue

Dollars


Percentage


Dollars


Percentage


DollarsDepreciation

$
169,256



32.5
%

$
208,060



32.1
%

$
(38,804
)Labor and Related Costs


145,297



27.9
%


171,252



26.4
%


(25,955
)Subcontract Labor


135,781



26.1
%


169,404



26.1
%


(33,623
)Materials and Supplies


22,197



4.3
%


16,240



2.5
%


5,957Insurance


18,026



3.5
%


31,486



4.8
%


(13,460
)Other Costs


16,060



3.1
%


34,644



5.3
%


(18,584
)Repairs and Maintenance


14,250



2.7
%


18,454



2.8
%


(4,204
)Total Costs of Revenues

$
520,867



100.0
%

$
649,540



100.0
%

$
(128,673
)





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.





14





Operating Expenses





For the three months ended March 31, 2011, our operating expenses totaled $380,050 as compared to $598,227 in 2010, representing a decrease of $218,177, or 36.5%.  The largest components of our operating expenses for 2011 consist of salaries and wages, rent, professional fees, and depreciation expense.  Salaries and wages for general and administrative personnel was $115,448 for the three months ended March 31, 2011, compared to $315,202 for the three months ended March 31, 2010, a decrease of $199,754, or 63.4%.  During the three months ended March 31, 2010, the Company issued 88,000 shares of common stock valued at $95,040 as bonuses.  During the three months ended March 31, 2011, the Company issued 114,000 shares of common stock valued at $6,970 for bonuses and for vendor services.





Rent expense totaled $65,586 for the three months ended March 31, 2011, as compared to $66,722 for the three months ended March 31, 2010, a decrease of $1,136, or 1.7%.  Rent expense for both the three months ended March 31, 2011, and for the three months ended March 31, 2010, 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





Professional services expense decreased from $74,677 for the three months ended March 31, 2010, to $59,990 for the three months ended March 31, 2011, a decrease of $14,687, or 19.7%.  The decrease is primarily a result of management’s ability to control expenses, including legal and accounting fees.





Other operating expenses decreased from $141,626 for the three months ended March 31, 2010 to $139,026 for the three months ended March 31, 2011, a decrease of $13,289, or 11.7%.  Other operating expenses consist primarily of office expenses, sales, and travel expenses.





Other Income and Expense





Other income and expense consists of investment income, interest expense, and other income resulting from the settlement during the quarter ended March 31, 2010, of a lawsuit with a major pipe supplier that relates to pipe purchased in 2008. Other income totaled $604 for the quarter ended March 31, 2011.  Investment income, which consists of interest, dividends, realized gains and losses, and unrealized gains and losses, amounted to a gain of $346 for the three months ended March 31, 2011, compared to income of $4,640 for the three months ended March 31, 2010.





Interest expense totaled $39,858 for the three months ended March 31, 2011, as compared to $36,005 for the three months ended March 31, 2010, an increase of $3,853, or 10.7%.  Interest expense pertains primarily to amounts due to affiliates as well as to our notes payable with third parties, and the increase relates to new financing during 2010 and the first quarter of 2011, which was obtained to finance expansion and equipment.





During 2010, the Company entered into a settlement with North American Interpipe, Inc. whereby they paid $1 in exchange for forgiveness of all accounts payable balances in the amount of $1,298,074.  In addition, the company forgave accounts receivable balances totaling $919,751 offset by an allowance for doubtful accounts of $97,000.  The net effect of the settlement in addition to reducing accounts payable and accounts receivable resulted in the recognition of $475,323 in other income.




Provision for income taxes





For the three months ended March 31, 2011, we reported an income tax benefit of $263,454 compared to income tax expense of $33,125 for the three months ended March 31, 2010, a difference of $296,579 or 895.3% which is the result of the net loss for the quarter.





15




Comparative financial information for the first quarters ending March 31:




March 31,


March 31,


March 31,


March 31,


March 31,2011


2010


2009


2008


2007Revenues, for the first quarter

$
180,732


$
888,659


$
2,446,072


$
1,439,896


$
613,187Cost of Revenues


520,867



649,540



1,133,015



555,168



304,477Gross Profit (Loss)


(340,135
)


239,119



1,313,057



884,728



308,710Operating  Expenses:General & Administrative Expenses


339,098



567,964



429,800



263,035



135,387Depreciation


40,952



30,263



36,733



17,187



15,487Total Operating Expenses


380,050



598,227



466,533



280,222



150,874Income (Loss) from Operations


(720,185
)


(359,108
)


846,524



604,506



157,836Other Income (Expense)


(38,908
)


444,386



22,560



(20,101
)


(30,522
)Income Before Income Taxes


(759,093
)


85,278



869,084



584,405



127,314Provision for Income Taxes


(263,454
)


33,125



291,652



232,246



48,762Net Income(Loss)

$
(495,639
)

$
52,153


$
577,432


$
352,159


$
78,552




Capital Resources and Liquidity





As of March 31, 2011 we had $234,738 in cash and cash equivalents.  Our cash outflows have consisted primarily of expenses associated with our operations, and the construction on our Houston facility. These outflows have been offset by the timely inflows of cash from our customers regarding sales that have been made.  Currently, we have been able to utilize our relationships with affiliated entities to stabilize our liquidity needs.





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





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





Item 3.  Quantitative and Qualitative Disclosures About Market Risk





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





Item 4T.  Controls and Procedures





a)  Evaluation of Disclosure Controls. Our management evaluated the effectiveness of our disclosure controls and procedures as of the end of our first fiscal quarter 2011 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 the evaluation, management concluded that our disclosure controls and procedures were effective as of March 31, 2011.





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.




16




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.





PART II - OTHER INFORMATION





Item 1. Legal Proceedings.





We were recently served with a motion filed by a major Chinese supplier requesting the court for a Temporary Restraining Order against the Company regarding a contractual dispute; however, the court found that no wrong doing was committed by the Company in order to award the Temporary Restraining Order. The court ruled in favor of the Company and denied the supplier it’s motion. 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, except as stated above, which an adverse decision could have a material adverse effect.





Item 1A. Risk Factors.





None.





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





None.





Item 3. Defaults Upon Senior Securities.





None





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





None.





Item 5. Other Information.





None





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





(a)           Exhibits





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





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





(b)           Reports of Form 8-K





None.





Item 7. Up-dates and Clarifications to prior non-financial information





The Company currently carries 5 million U. S. Dollars ($5,000,000) in insurance.





17





SIGNATURES





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





ENERGY & TECHNOLOGY CORP.Date: May 16, 2011
By:
/s/ George M. SfeirGeorge M. SfeirPresident, Chief Executive Officer,

and DirectorDate: May 16, 2011
By:
/s/ Amer SalhiAmer SalhiChief Financial Officer