UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549  FORM 10-Q (Mark One)  X. QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2012.  or  . TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _______________________  to  _______________________  Commission File Number:  333-139746  TRANSACT ENERGY CORP. (Exact name of registrant as specified in its charter)  Nevada98-0515445(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)SUITE 104-511 17503 La Cantera Parkway, San Antonio, TX, USA78257(Address of principal executive offices)(Zip Code)  210-888-0785 (Registrants telephone number, including area code)  _______________________________________________________ (Former name, former address and former fiscal year, 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 Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YesX.No.  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).  YesX.No.  Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.  Large accelerated filer.Accelerated filer.Non-accelerated filer. (Do not check if a smaller reporting company)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.NoX.  APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:  Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes.No.  APPLICABLE ONLY TO CORPORATE ISSUERS:  Indicate the number of shares outstanding of each of the issuers classes of common stock, as of May 12, 2011:  26, 668,952    PART I - FINANCIAL INFORMATION  ITEM 1.  FINANCIAL STATEMENTS  The accompanying financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at March 31, 2012 and 2011 and for the periods then ended have been made.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Companys December 31, 2011 management prepared financial statements.  The results of operations for the periods ended March 31, 2012 and 2011 are not necessarily indicative of the operating results for the full year.   - 2 -      TRANSACT ENERGY CORP. [A Development Stage Company]  INTERIM FINANCIAL STATEMENTS  JUNE 30, 2012  (Unaudited  Prepared by Management)    - 3 -    TRANSACT ENERGY CORP. [A Development Stage Company]  (Unaudited -  Prepared by Management )      CONTENTS      PAGEInterim Balance Sheets5Interim Statements of Operations6Interim Statements of Cash Flows7Notes to Interim Financial Statements8    - 4 -    TRANSACT ENERGY CORP.(A Development Stage Company)INTERIM BALANCE SHEETS( Unaudited - Prepared by Management)June 30,December 31,20122011ASSETSCurrentCash2-Prepaid Expenses$85,525$-Total Current Assets85,527-Software ,net4831,063$86,010$1,063LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)CurrentBank indebtedness$-$2,033Accounts payable147,732161,047Accrued interest48,08924,991Accrued interest - related party368,595231,554Compensation payable1,007,013740,257Notes payable - net of discount50,02249,583Notes payable - Related parties, net of discount163,467163,467Total Current Liabilities1,784,9181,372,932Stockholders' Equity (Deficit)Preferred stock, $.001 par value,
10,000,000 shares authorized no shares issued and outstandingCommon Stock, $.001 par value,
100,000,000 shares authorized
26, 668,952  shares  issued and outstanding26,66922,333Capital in excess of par value1,669,3231,518,275Deficit accumulated during the development stage(3,394,900)(2,912,477)Total Stockholders' Equity (Deficit)(1,698,908)(1,371,869)$86,010$1,063The accompanying notes are an integral part of these financial statements.   5


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|-------------------------------------------------------------------------- | - | -------------- | - | ------------ | - | ---------- | - | ------------ | - | -----------
|TRANSACT ENERGY CORP.                                                     
|(A Development Stage Company)                                             
|                                                                          
|INTERIM STATEMENTS OF OPERATIONS                                          
|(Unaudited - Prepared by Management)                                      
|                                                                           |   |                |   |              |   |            |   |              |   |            
|                                                                           |   | Cumulative     |   |              |   |            |   |              |   |            
|                                                                           |   | from inception |   | Three months |   | Six months |   | Three months |   | Six months 
|                                                                           |   | March 15, 2006 |   | ended        |   | ended      |   | ended        |   | ended      
|                                                                           |   | June 30,       |   | June 30,     |   | June 30,   |   | June 30,     |   | June 30,   
|                                                                           |   | 2012           |   | 2012         |   | 2012       |   | 2011         |   | 2011       
|                                                                           |   |                |   |              |   |            |   |              |   |            
|REVENUE                                                                    | $ | -              | $ | -            | $ | -          | $ | -            | $ | -          
|                                                                           |   |                |   |              |   |            |   |              |   |            
|EXPENSES                                                                   |   |                |   |              |   |            |   |              |   |            
|General and administrative                                                 |   | 2,544,006      |   | 170,737      |   | 307,172    |   | 169,346      |   | 976,342    
|Unsuccessful lease purchases                                               |   | 18,673         |   | -            |   | -          |   | -            |   | -          
|                                                                           |   |                |   |              |   |            |   |              |   |            
|Total Expenses                                                             |   | 2,562,679      |   | 170,737      |   | 307,172    |   | 169,346      |   | 976,342    
|                                                                           |   |                |   |              |   |            |   |              |   |            
|LOSS BEFORE OTHER INCOME (EXPENSE)                                         |   | (2,562,679)    |   | (170,737)    |   | (307,172)  |   | (169,346)    |   | (976,342)  
|                                                                           |   |                |   |              |   |            |   |              |   |            
|Interest income                                                            |   | 50,954         |   | -            |   | -          |   | -            |   | -          
|Interest expense                                                           |   | (605,591)      |   | (94,630)     |   | (174,394)  |   | (99,483)     |   | (145,738)  
|Gain on debt  settlement                                                   | $ | 34,864         | $ | -            | $ | -          | $ | 34,864       | $ | 34,864     
|Loss on write off of investment in lease                                   |   | (12,684)       |   | -            |   | -          |   | -            |   | -          
|Allowance for loss on loans receivable and related interest                |   | (299,474)      |   | -            |   | -          |   | -            |   | -          
|                                                                           |   |                |   |              |   |            |   |              |   |            
|LOSS FROM OPERATIONS                                                       |   |                |   |              |   |            |   |              |   |            
|BEFORE INCOME TAXES                                                        |   | (3,394,610)    |   | (265,367)    |   | (481,566)  |   | (233,965)    |   | (1,087,216)
|                                                                           |   |                |   |              |   |            |   |              |   |            
|CURRENT TAX EXPENSE                                                        |   | -              |   | -            |   | -          |   | -            |   | -          
|                                                                           |   |                |   |              |   |            |   |              |   |            
|DEFFRRED TAX EXPENSE                                                       |   | -              |   | -            |   | -          |   | -            |   | -          
|                                                                           |   |                |   |              |   |            |   |              |   |            
|NET LOSS                                                                   | $ | (3,394,610)    | $ | (265,367)    | $ | (481,566)  | $ | (233,965)    | $ | (1,087,216)
|                                                                           |   |                |   |              |   |            |   |              |   |            
|LOSS PER COMMON SHARE                                                      |   |                | $ | (0.01)       | $ | (0.02)     | $ | (0.01)       | $ | (0.05)     
|                                                                           |   |                |   |              |   |            |   |              |   |            
|The accompanying notes are an integral part of these financial statements.

6    TRANSACT ENERGY CORP.(A Development Stage Company)INTERIM  STATEMENTS OF CASH FLOWS( Unaudited - Prepared by Management)Cumulativefrom inceptionSix monthsSix monthsMarch 15, 2006 toendedendedJune 30,June 30,June 30,201220122011Cash Flow From Operating Activities:Net loss for the period$(3,394,610)$(481,566)$(1,087,216)Adjustments to reconcile net loss to cash used by
operating activities:Stock issued for services$313,242$25,000$3,000Stock issued for expenses9,7585,445-Debt issued for services12,847--Amortization2,997580580Loss on write off of investment in lease12,684--Allowance for interest receivable50,954--Allowance for loans receivable248,521--Interest expense from beneficial conversion
feature on notes payable124,548-29,895Loss on stock subscriptions receivable550,431-550,431Gain on debt settlement(34,864)-34,864Change in assets and liabilities:Decrease (Increase) in interest receivable(50,954)--Decrease (Increase) in prepaid expenses$(85,525)$(85,525)$(495)Increase (decrease) in accounts payable154,032(13,315)76,040Increase in compensation payable1,006,963266,756204,437Increase in accrued interest437,769175,23785,099Net Cash (used) by Operating Activities(641,207)(107,388)(173,093)Cash Flows From Investing Activities:Acquisition of oil and gas leases(12,684)--Purchase of software(3,480)--Loans receivable(263,521)--Proceeds from loans receivable15,000--Net Cash (Used) by Investing Activities(264,685)--Cash Flow From Financing ActivitiesProceeds from common stock issuance$543,551$111,930$100,000Proceeds received for stock not yet issued40,000--Stock offering costs(13,263)--Proceeds from notes payable399,535439129,985Repayment of notes payable$(63,929)$(5,000)$(53,000)Net Cash Provided by Financing Activities905,894107,369176,985Net Increase (Decrease) in Cash2(19)3,892Cash (Bank Indebtedness) at Beginning of Period-212,498Cash at End of Period$2$2$6,390Supplemental Disclosures of Cash Flow Information:Cash paid during the period for:Interest$-$-$30,600Income taxes$-$-$-Supplemental Schedule of Noncash Investing
and Financing Activities:For the three month period ended June 30, 2012
and 2011:Shares issued for services$330,402$25,000$3,000Shares issued on conversion of debt114,701-22,000Shares issued to shareholders in exchange
for free trading shares$680,127$125,383$-Subscriptions receivable(550,431)--Beneficial conversion feature on notes payable$59,084$-$2,750The accompanying notes are an integral part of these financial statements.   7    NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Organization - TransAct Energy Corp. (the Company) was organized under the laws of the State of Nevada on March 15, 2006. The Company is in the business of developing and managing power production facilities globally primarily using alternative/sustainable energy sources. The Company has not generated revenues and is considered a development stage company as defined in Accounting Standards Codification (ASC) Topic No. 915. The Company has, at the present time, not paid any dividends and any dividends that may be paid in the future will depend upon the financial requirements of the Company and other relevant factors.  Interim Condensed Financial Statements -The accompanying interim financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at  June 30, 2012 and 2011 and for the periods then ended have been made.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Companys December 31, 2011 unaudited financial statements.  The results of operations for the periods ended June 30, 2012 and 2011 are not necessarily indicative of the operating results for the full year.  Cash and Cash Equivalents - The Company considers all highly liquid debt investments purchased with a maturity of three months or less to be cash equivalents.  Software and related amortization - Software is recorded at cost and the Company provides for amortization using the straight line method over three years.  Income Taxes -The Company accounts for income taxes in accordance with ASC Topic No. 740, Accounting for Income Taxes.  The Company adopted the provisions of ASC Topic No. 740, Accounting for Income Taxes, on January 1, 2007. As a result of the implementation of ASC Topic No. 740, the Company recognized approximately no increase in the liability for unrecognized tax benefits.  The Company has no tax positions at June 30, 2012 and 2011 for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.  The Company recognizes interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. During the years ended December 31, 2011 and 2010, the Company recognized no interest and penalties. The Company had no accruals for interest and penalties at June 30, 2012 and December 31, 2011. All tax years starting with 2008 are open for examination.  Loss Per Share - The computation of loss per share is based on the weighted average number of shares outstanding during the period presented in accordance with ASC Topic No. 260, Earnings Per Share [See Note 9].  Accounting 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 the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimated by management.  Recently Enacted Accounting Standards - In September 2009 the FASB established the Accounting Standards Codification (Codification or ASC) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in accordance with generally accepted accounting principles in the United States (GAAP). Rules and interpretive releases of the Securities and Exchange Commission (SEC) issued under authority of federal securities laws are also sources of GAAP for SEC registrants.  Existing GAAP was not intended to be changed as a result of the Codification, and accordingly the change did not impact our financial statements. The ASC does change the way the guidance is organized and presented.  Accounting Standards Update (ASU) ASU No. 2009-05 (ASC Topic 820), which amends Fair Value Measurements and Disclosures  Overall, ASU No. 2009-13 (ASC Topic 605),  Multiple-Deliverable Revenue Arrangements, ASU No. 2009-14 (ASC Topic 985), Certain Revenue Arrangements that include Software Elements, and various other ASUs No. 2009-2 through ASU No. 2011-8 which contain technical corrections to existing guidance or affect guidance to specialized industries or entities were recently issued.  These updates have no current applicability to the Company or their effect on the financial statements would not have been significant.  8    NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)  Foreign Currency Translation - The Financial statements are presented in United States dollars. In accordance with ASC 830 Foreign Currency Matters, foreign denominated monetary assets and liabilities are translated into their United States dollar equivalents using foreign exchange rates which prevailed at the balance sheet date. Non-monetary assets and liabilities are translated at the exchange rates prevailing at the transaction date. Revenue and expenses are translated at average rate of exchange during the year. Gains or losses resulting from foreign currency transactions are included in results of operation.  Stock Offering Costs - Costs incurred in connection with stock offerings will be deferred and offset against the proceeds of the stock offering.  Costs incurred in connection with unsuccessful offerings will be expensed.  Reclassification Certain prior year amounts have been reclassified to conform with current year presentation.  NOTE 2  LOANS RECEIVABLE  RELATED PARTY   The $12,000, $5,000, $7,000, $212,000 and $12,520 loans receivable from a company whose sole shareholder holds less than 10% in TransAct, are secured and were due on November 1, November 10, November 29, December 6 and December 6, 2010, respectively. The loans are secured by certain assets and equipment of the company and bear interest at rates between 15% and 18% per annum for the terms of the loans. At June 30, 2011 and December 31, 2010 interest receivable was $50,954. These notes have not been granted an extension, are in default and management has formally demanded payment of the outstanding principal and interest and may pursue legal action if the cost of said action can be justified. At December 31, 2010 the Company recorded a total allowance of $299,475 charged to operations including principal of $248,521 and interest of $50,954.  NOTE 3 -  SOFTWARE


|            |                |        |              |               |            
|----------- | -------------- | ------ | ------------ | ------------- | -----------
|Accumulated | Net Book Value |        |              |               |            
|            |                | Cost   | Amortization | June 30, 2012 | Dec 31 2011
|            |                |        |              |               |            
|Software    |                | $3,480 | $ 2,707      | $ 483         | $1,063     

NOTE 4  NOTES PAYABLE  The $25,000 convertible promissory note dated June 10, 2010 and $40,000 convertible promissory note dated October 5, 2010 bore interest at 8% per annum and were due and payable on March 11, 2011 and July 7, 2011, respectively. The holder had the option to convert the entire principal amount of each particular note on or before March 11, 2011 and July 7, 2011 into common shares of the Company based on a conversion rate of 60% of the market price being the average of the lowest three trading prices over the past ten days prior to the conversion. At no time could the holder convert into an amount of shares which would result in the holder and its affiliates to beneficially own more than 4.99% of the outstanding shares of common stock. In February 2011 the holder elected to convert $12,000 of the June 10, 2010 note into 404,040 common shares of the Company which were issued. In February 2011 the terms of the June 10, 2010 and October 5, 2010 convertible promissory notes were amended by both parties to include a repayment option. Under this repayment option the borrower had the right to repay the balance of a note in cash equal to 150% of the outstanding principal and interest. On February 24, 2011 the Company paid $22,000 including $9,000 of interest to repay the remaining $13,000 balance of the June 10, 2010 note. In addition, on April 21, 2011 the Company paid $61,600 including $21,600 of interest to repay the $40,000 note dated October 5, 2010.  A beneficial conversion feature of $53,334 has been recorded as a discount to the notes with an offset to additional paid in capital. The discount was amortized over the life of the notes. The remaining unamortized discount has been expensed as interest since the note was repaid.  The $25,000 and $20,018 ($20,000 CAD) promissory notes payable dated April 22, 2011 and March 31, 2011 respectively are unsecured and bear interest at 60% per annum or $2,500 and $2,002 ($2,000 CAD) respectively whichever is greater. The notes are due on demand and may be prepaid in whole or part without penalty. Accrued interest was $ 33,095 at June 30, 2012.   9    NOTE 4  NOTES PAYABLE -  (CONTINUED)  The $ 5,005 ($5,000 CAD) promissory note payable dated September 12, 2011 is unsecured and bears interest at $ 505 ($500 CAD) up to September 16, 2011 and $ 50 ($50 CAD) per diem until all principal and interest is repaid. The note is due on demand and may be prepaid in whole or part without penalty. Accrued interest was $ 14,905 at June 30, 2012.  NOTE 5  NOTES PAYABLE  RELATED PARTIES  a) The $10,000 convertible promissory note payable to a company whose shareholders hold less than 10% in TransAct is unsecured, bears interest at 10% per annum and was due and payable on March 31, 2010. The payee had the option to convert the entire principal amount on or before April 29, 2009 into common shares of the Company based on a conversion rate of $.00345 per share. No interest was payable if the principal was converted to shares of the Company. The payee did not exercise its conversion option. The note is currently outstanding and in October 2010 the Company issued a check in the amount of $11,876 as payment in full of principal and interest which was returned un-cashed by the payee. The Company is currently in dispute regarding the expiration date of the conversion option in the agreement and the note remains in default. At June 30, 2012 accrued interest was $ 3,684  b) The $17,500 promissory note payable to a company whose shareholders hold less than 10% in TransAct is unsecured, bears interest at 10% per annum and is due on demand. This note is currently in default. At June 30, 2012 accrued interest was $5,673.  c) Promissory notes payable totalling $74,277 to an officer and shareholder are secured by certain assets and equipment of the Company and  bear interest at 8% and 10% per annum and are due on demand. At June 30, 2012 accrued interest was $ 14,573.  d) A $3,000 convertible promissory note payable to a former officer is secured by certain assets and equipment of the Company and bore interest at 8% per annum through the due date in November 2010 and is currently in default and bearing interest at 60% the highest lawful rate. A beneficial conversion feature of $3,000 has been recorded as a discount to the note with an offset to additional paid in capital. The discount was fully amortized in 2010. At June 30, 2012 accrued interest was $ 3,631.  e) A $22,030 promissory note payable dated February 24, 2011 to a former officer bears interest of $6,000 and was due on March 4, 2011. This note is accruing interest at $360 per day for every day after March 4, 2011 until the note is repaid in full. At June 30, 2012 accrued interest was $ 180,240.  f) A $46,660 promissory note payable dated April 22, 2011 to a former officer bears interest at 1% per diem. A beneficial conversion feature of $2,750 was recorded as a discount to the notes with the offset to Additional Paid In Capital. In May 2011 the holder of the note converted $10,000 of principal into 750,000 shares of common stock and the discount was expensed to interest. The remaining balance of $36,660 is due on demand. At June 30, 2012 accrued interest was $ 161,870.  Accrued interest and late fees for the notes at June 30, 2012 and December 31, 2011 was $ 417,166 and $231,554 respectively.  NOTE 6 - CAPITAL STOCK  Preferred Stock - The Company has authorized 10,000,000 shares of preferred stock, $.001 par value, with such rights, preferences and designations and to be issued in such series as determined by the Board of Directors. No shares are issued and outstanding at June 30, 2012 and December 31, 2011.  Common Stock - The Company has authorized 100,000,000 shares of common stock, $.001 par value, with such rights, preferences and designations and to be issued in such series as determined by the Board of Directors.  In December 2010 proceeds were received for 200,000 common shares at $.15 per share and 50,000 common shares at $.20 per share for a total of $ 40,000. These shares were issued in June 2011.  In January 2011 the Company issued  588,235 common shares at $.17 per share for total proceeds received of $100,000.  In February 2011 the Company issued 404,040 common shares pursuant to a convertible option of a note payable totaling $12,000 at $.0297 per share.  In June 2011 the Company issued 200,000 common shares for  compensation services at a value of $.015 per share.  In June 2011 the Company issued 750,000 common shares pursuant to a convertible option of a note payable totaling $10,000 at $.013 per share.  In June 2011 the Company issued 175,739 common shares at a value of $.015 per share in exchange for consulting services accrued as a liability at December 31, 2010 in the amount of $ 37,500. The difference of $34,864 has been recorded as a gain on debt settlement.  10    NOTE 7 - GOING CONCERN  The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern.  However, the Company has a working capital deficit and has incurred losses since its inception. These factors raise substantial doubt about the ability of the Company to continue as a going concern. In this regard, management is proposing to raise any necessary additional funds not provided by operations through loans and/or through additional sales of its common stock. There is no assurance that the Company will be successful in raising this additional capital or in achieving profitable operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.  NOTE 8 - RELATED PARTY TRANSACTIONS  Management Compensation    The Company has accrued executive compensation of $125,000 to the President of the Company for the period ended June 30, 2012  (See Note 10).  The Company has accrued executive compensation of $ 125,000 to the CFO of the Company for the period ended June 30, 2012 (See Note 10).  NOTE 9 - LOSS PER SHARE  The following data show the amounts used in computing loss per share for the periods presented:  Six months endedSix months  endedJune 30,June 30,20122011Loss available to common shareholders(numerator)$(481,566)$(1,087,216)Weighted average number of common shares outstanding during the period used in loss per share (denominator)26, 668,95220,901,429  Dilutive loss per share was not presented, as the Company had no common equivalent shares for all periods presented that would affect the computation of diluted loss per share.  NOTE 10  COMMITMENTS AND CONTINGENCIES  Compensation agreement - Effective October 1, 2009 through September 30, 2011, the Company entered into a compensation agreement with Shahhid Shafiq Vohra to assist the Company with business development globally for consideration of $90,000 for the contract period to be paid over 12 months plus 100,000 common shares of the Company valued at $0.55 per share which were issued in July 2010. On September 30, 2010 Shahhid Vohra resigned and terminated the agreement. Vohra has threatened legal action after making a claim against the Company of $44,264 through his legal counsel. The Company has claimed back that Vohra owes them $26,052 and intends on pursuing this claim. The $26,052 was charged to operations for the year ended December 31, 2010 as consulting fees. If any funds are received they will be recorded as an expense recovery in the year received.  Compensation agreement - Effective January 1, 2011 the Company entered into a CFO compensation agreement for a term of 5 years to December 31, 2016. The agreement pays an annual base salary of $250,000 and includes a signing bonus of 200,000 shares which was issued in June 2011. The compensation agreement also provides for a cash bonus equal to 3% of the annual EBITDA to a maximum of $15,000,000 in the first year with a 10% increase each year thereafter.  Lease agreement - The Company was committed to a three year lease for office space which commenced July 1, 2010 and expired on June 30, 2013. In September 2011 the lease was terminated by both parties and the Company forfeited its lease deposit and the landlord subsequently subleased the property.  Financing agreement - In April 2010 the Company entered into an investment banking agreement to arrange funding of not less than $6,000,000 through the sale of common shares of the Company. The Company had agreed to pay a fee in the amount of $50,000 of which $15,000 was paid and still held in escrow, to be disbursed for third party due diligence expenses according to the terms of the agreement. Under the terms of the agreement the Company had also agreed to pay a fee of not less than 2% of the monies obtained as a loan and 8% of the monies obtained via equity investors. InNovember 2010 the Company terminated this agreement due to unfulfilled terms and requested the funds held in escrow to be released back to the Company. As of June 30, 2012 the Company has not received any funds nor any response and has expensed the $15,000 as consulting fees in 2011. If any funds are returned they will be recorded as an expense recovery in the year received.   11    NOTE 10  COMMITMENTS AND CONTINGENCIES - CONTINUED  Compensation agreement  The President and Chief Executive Officer agreement pays an annual base salary of $250,000 which has been accrued to date, with a cash bonus annually based on 5% of EBITDA and a stock bonus formulated around the return on invested capital where the issued and outstanding stock of the Company times the rate of return divided by ten will equate to the stock issued.  Administration agreement  The agreement for administration services paid a salary of $ 42,038 ($42,000 CAD) per annum which was terminated on December 31, 2011. At June 30, 2012 $ 57,319 is included in compensation payable on the balance sheet.  Consulting agreement - Pursuant to an agreement dated September 15, 2010 the Company entered into a strategic and financial consulting agreement to assist the Company in its current financing activities. As an engagement fee for their services, the consultant was to receive 1,000,000 free trading common shares valued at $.50 per share.  In order to facilitate the terms of this agreement the Company by way of special resolution identified certain shareholders of the Company that had sufficient unrestricted common shares and agreed to replace the unrestricted shares with restricted common shares plus an incentive of an additional 10% of bonus shares. In September 2010 the Company issued 1,109,488 common shares, including 100,863 bonus shares, valued at $.50 per share.  In January 2011 the Company, due to the unfulfilled terms by the consultant, demanded a full refund of the shares issued. The Company is currently negotiating for a return of 70% of the original 1,000,000 free trading common shares. As of June 30, 2012 the Company has not received any return of the shares or any response and has expensed the stock subscription receivable in the amount of $550,431 as consulting fees in 2011. If any shares are returned they will be recorded as an expense recovery in the period received.  Pursuant to an agreement dated April 27, 2011  the Company agreed to issue a $3,000,000 convertible promissory note payable to a company whose shareholders hold less than 10% in TransAct. The convertible note is unsecured, bears interest at 8 % per annum and is due and payable on April 16, 2013. The note may be repaid by the Company in whole or part without penalty. The holder has the option to convert all or a portion of the entire principal amount on or before April 16, 2013 into a unit consisting of one common share of the Company at $ .40 per share and one warrant to purchase an additional share at $ .80 per share. To date the note has not been funded, however the Company was awarded a court order by the Cypriot courts and is waiting for the courts to enforce the holders bank to release the funds to the Company.  On May 3, 2012 the company entered into an agreement whereby 3,015,000 free trading shares are to be issued in exchange for a $20,000 advance to TransAct and the settlement of any and all obligations given to the parties of the agreement. These shares are intended to be sold to cover their costs including the advances and any balance of these shares not used in settlement would be used to raise capital and split evenly between the parties. The portion that goes to the consulting company will be expensed as consulting fees. In order to facilitate the terms of this agreement the Company by way of special resolution identified certain shareholders of the Company that had sufficient unrestricted common shares and agreed to replace the unrestricted shares with restricted common shares plus an incentive of an additional 10% of bonus shares. In May 30, 2012 the Company issued 3,316,500 common shares, including 301,500 bonus shares, valued at $.036 per share.  On June 28th, 2012 the agreement was extended to August 31, 2012 where originally on May 11, 2012 the Company arranged for 3,005,000 free trading shares to be placed as additional security for a $100,000 loan as a retainer for a financing of 100 million dollars. TransAct has a Memorandum of Understanding (MOU) to receive one third or 30 million dollars of this financing. If these shares are used to repay the loan TransAct will have to issue the shares used plus 10% additional shares to the contributing shareholders and expense whatever shares used as financing costs.  NOTE 11  SUBSEQUENT EVENTS  The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined there are no additional events to disclose.   12   ITEM 2.  PLAN OF OPERATIONS  MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  FORWARD-LOOKING STATEMENT NOTICE  This Form 10-Q contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  For this purpose any statements contained in this Form 10-Q that are not statements of historical fact may be deemed to be forward-looking statements.  Without limiting the foregoing, words such as may, will, expect, believe, anticipate, estimate or continue or comparable terminology are intended to identify forward-looking statements.  These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within our control.  These factors include but are not limited to economic conditions generally and in the industries in which we may participate; competition within our chosen industry, including competition from much larger competitors; technological advances and failure to successfully develop business relationships.  OUR BUSINESS  We formed as a Nevada corporation on March 15, 2006 as TransAct Energy Corp. Although our business plan called for the securing and managing of any energy leasehold, the Company focused on securing producing and non-producing oil and gas leases in Alberta, Canada. On September 7, 2006 we acquired a one hundred percent (100%) interest in a Petroleum and Natural Gas Lease, from the province of Alberta, Canada for twelve thousand and fifty-one dollars ($12,051), the MedHat Project. We did not develop this resource. We looked to expand our holdings in Alberta through acquisitions and joint ventures for the following two years. We have since discontinued our efforts in Alberta and allowed that lease to lapse.  A distinct trend appeared in the energy sector supporting sustainable energies. About the same time in late 2008 the Company was introduced to Dr. Mory Gomshei one of the worlds leading geothermal experts and two of his geothermal power (using superheated water from the earth to turn turbines) projects in British Columbia, Canada. The acquisition, resource evaluation, exploration process and administration for geothermal are very similar and in many jurisdictions come under the petroleum sector. We worked with independent companies Aqua Terra Power and Aqua Terra Geothermal through the balance of 2009 on the two geothermal power projects in British Columbia. Other than lending Aqua Terra funds no formal arrangement was entered into pending them securing drill permits on the two projects. These licenses lapsed under their original owners and were re-posted by the government for public tender, an Ontario corporation associated with Dr. Ghomshei acquired most of the original licenses and have initiated drilling applications. We entered discussions with this entity in the latter half of 2011 to form a Farm-in relationship. Discussions are ongoing and expected to culminate one way or the other  this year.  TransAct in mid-2009 started introducing the concept of geothermal power to markets in Western and South Asia with the plan to enter joint venture relationships to develop geothermal power projects in these areas. To enter these markets as a power producer the Company found it strategic to offer to develop traditional carbon fuelled power projects in addition. After discussions with the Republic of Iraq regarding geothermal opportunities in Northern Iraq, the Company, together with Spectrum Energy Project Investments (a UAE power company), submitted applications to the Basra Investment Commission to develop/manage three natural gas power plants. These multi-billion dollar projects come with long-term power purchase agreements (PPA) and sovereign guarantees and our application through Spectrum was shortlisted. We were unsuccessful in completing our acquisition of 50% of Spectrum and the initial offering lapsed.  On August 31, 2009, TransAct Energy completed and closed its initial public offering at twenty-five cents ($0.25) per share selling one million one hundred and two thousand shares (1,102,000) for a total capital raise of two-hundred and seventy four thousand three hundred and ninety-eight dollars ($274,398 USD). The majority of these funds were placed with Aqua Terra Power as convertible notes.  The Company was approved for listing on the OTCBB in December 2009 and received the trading symbol TEGY.  Throughout 2010 we laid the ground work for large power projects in South Europe, Asia and Africa; smaller projects for solar and hydrogen fuel cells specifically in India.  We worked to secure markets for geothermal, new solar photo-voltaic and hydrogen fuel cell generators.  Joint development agreement negotiations took place in December 2010 clearing the way for Transact to enter into one major project in South East Asia in 2011.  This project was stalled throughout 2011 because TransAct was unable to secure the funds it required to proceed.   13    The 2011 year was frustrated with the companys inability to collect raised or earned funds into the companys bank account. Thus projects, joint ventures and previous efforts were postponed or lost permanently. While we did maintain the companys trading status the year was taken up with collection efforts and supporting business relationships while in limbo.  In the last quarter 0f 2011 we did initiate negotiations and planning regarding a new Energy from Waste (EfW) technology in order to leverage the efforts made in India, Saudi Arabia and Brazil. Throughout the first quarter our efforts have involved finalizing a business plan, Joint Development Agreement and Financing for this Venture.  The second quarter of 2012 the Company continued its efforts to secure funding for its EfW Joint Venture with Mr Bruce Hutchon et al of Scotland by continuing its funding efforts with Alfra Developers based on a memorandum. The Alfra MOU provides Transact with a third of the capital we raise against their $315 Million USD asset in Cabo San Lucas Mexico. TransAct secured a term sheet on behalf of Alfra from Lupa Capital of the UK  in the middle of May 2012and have continued to work through the requirements of this financing. A financing commitment to Alfra is now pending final sign off of all parties involved.  PLAN OF OPERATION  The balance of this years efforts will be focused on building the first municipal scale plant of TransActs EFW joint venture.  We have completed the business plan for Transact Energy from Waste, identified the required capital for the first plants and set in motion financing that should cover the capital needs. We anticipate that within the third quarter the funds for the first plant in the UK should be fully committed so that we can proceed to finalizing sight acquisition, engineering and design.  To execute our strategy the Company will keep its team lean and build human resources in the JV.  All operations will be focused out of a central office either in the USA or Europe depending on the long-term focus of the JV partners.  When the company is able to complete its financing with Alfra Developers a portion of the funds will be allocated to the ongoing reporting and administration of TransAct Energy Corp.  At that point the Company will have its auditors complete any and all outstanding audits and reviews to be in good standing as a fully reporting company. The company plans to continue to operate on the OTC Pinks. If and when the company reaches significant earnings and assets it will contemplate which board or exchange will best serve the company.  SUBSEQUENT EVENTS  None  RESULTS OF OPERATIONS  Results of Operations for the Three Months Ended June 30, 2012 Compared to The Three Months Ended June 30, 2011  During the three months ended June 30, 2012, the Company worked diligently on its business and maintaining its reporting status with the SEC. However due to finances we were forced to file our Annual Report without auditors review resulting in the company being delinquent in required filings with the SEC as determined by the NASD.  We did not generate any revenue from January 1, 2012 to June 30, 2012 as was the same for the three month period in 2011. For the three months ended June 30, 2012 our general and administrative expenses were $ 170,737 compared to $169,346 for the same period in 2011. Expenses consisted of professional fees, administrative and management fees and miscellaneous expenses.   Management compensation was $125,000 for the period ending 2011 and $125,000 for the period ending June 30, 2012Travel/ Meeting expenses were $ 1637 versus $28 for the previous year three months June 30, 2011. As a result, we have reported a net loss of $481,566 for the Three Month period ended June 30, 2012.  Stock-Based Compensation Costs  There was $25,000 stock based compensation for the period ended June 30, 2012 and  none for 2011. Any shares issued are a part of our executive compensation plan, and are issued to obtain, retain and motivate our directors, executives and employees.  LIQUIDITY AND CAPITAL RESOURCES  As of June 30, 2012 we have no current assets.  Our current liabilities consist of accounts payable in the amount of $147,732, accrued interest of $416,684, compensation payable of $1,007,013 and Notes payable, net of discount of $50,022.  14    NEED FOR ADDITIONAL FINANCING  The Company made a public offering of up to 2,000,000 shares of common stock. The Company filed a registration statement with the United States Securities and Exchange Commission on Form S-1. The offering was declared effective on December 12, 2008. An offering price of $0.25 per share had arbitrarily been determined by the Company.  The offering was managed by the Company without any underwriter. The shares were offered and sold by officers and directors of the Company, who received no sales commissions or other compensation in connection with the offering, except for reimbursement of expenses actually incurred on behalf of the Company in connection with the offering.   The Company filed a post-effective amendment to its registration statement which was declared effective on July 17, 2009.  The offering was closed at August 31, 2009. The Company raised a total of $275,500 and subsequently issued 1,102,000 common shares.  The Company will need to raise significant capital over the next year, some of which may need to be done by way of selling equity in the Company. Depending on the market price and the terms that can be negotiated this will result in the dilution of current shareholders of the Companys stock.  ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.  Not required by smaller reporting companies.  ITEM 4T.  CONTROLS AND PROCEDURES.  (a) Evaluation of Disclosure Controls and Procedures.  The Companys management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934, as amended). We are committed to maintaining disclosure controls and procedures designed to ensure that information required to be disclosed in our periodic reports filed under the Securities Exchange Act of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the SECs rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures and implementing controls and procedures.  Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act. Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective at a reasonable assurance level as of September 30, 2011, the end of the period covered by this report.  (b) Changes in Internal Control over Financial Reporting.  There were no changes in the Company's internal controls or procedures over financial reporting, known to the chief executive officer or the chief financial officer that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.   15    PART II  OTHER INFORMATION  ITEM 1.  LEGAL PROCEEDINGS.  Our Company is not a party to any bankruptcy, receivership or other legal proceeding.  Circle Choice Ltd a Cyprus company entered an agreement to lend three million dollars to the Company. They chose not to fund this agreement in a reasonable timeframe and TransAct was forced to take legal action in Cyprus to conclude this transaction. The Company was awarded a court order by the Cypriot courts forcing Circle Choice to release the funds to TransAct. Further legal action was taken to force Circle Choices bank to cooperate in the transfer of the said funds this process is on going to this date.  ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.  The Company sold 588,235 shares for $100,000 in January 2011 to an offshore accredited investor. The funds were used for general office and administration expenses.  ITEM 3.   DEFAULTS UPON SENIOR SECURITIES.  None  ITEM 4.   REMOVED AND RESERVED  None.   ITEM 5.   OTHER INFORMATION.  None  ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K.  (a)  Exhibits  Copies of the following documents are included as exhibits to this report pursuant to Item 601 of Regulation S-K.


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|----------- | ------------------------------------------------------------------------------------------------------------------------------------------------------ | --------
|Exhibit No. | Title of Document                                                                                                                                      | Location
|10          | Material Contract                                                                                                                                      | Attached
|31.1        | Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                             | Attached
|31.2        | Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                             | Attached
|32.1        | Certification of the Principal Executive Officer pursuant to U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* | Attached
|32.2        | Certification of the Principal Financial Officer pursuant to U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002* | Attached

(b)  Reports on Form 8-K  None  * The Exhibit attached to this Form 10-Q shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to liability under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.   16    SIGNATURES  Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.   TRANSACT ENERGY CORP.   Date: August 20, 2012 By:/s/ Rod Bartlett Rod Bartlett President, Chief Executive Officer   17