UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,
D.C.  FORM 10-Q (Mark
One) X QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the
quarterly period ended September 30, 2009  TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For
the transition period from to Commission
file number 333-141875 UTEC, INC. (Exact
name of Registrant as specified in its charter)  NEVADA
20-5936198(State or other jurisdiction of incorporation or
organization)
(IRS Employer Identification No.)  2420
Springer Drive, Suite 110 Norman,
OK 73069(Address of principal executive offices)  (620) 783-1361(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) filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the past 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. Yes . [ X]  No .  [  ] Indicate by
checkmark 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 during the preceding 12 months
(or for such shorter period that the registrant was required to submit and post
such files). [
 ]  Yes [X] No
(Not Required)  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 company [X]   1    Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).
               Yes
 [X  ]  No [  APPLICABLE ONLY TO CORPORATE ISSUERS As of November 16, 2009, the Company had 33,518,159 issued and
outstanding shares of its common stock.  2    PART I  FINANCIAL INFORMATION  The accompanying interim unaudited financial statements of UTEC,
Inc. (a Nevada corporation) are condensed and, therefore, do not include all
disclosures normally required by accounting principles generally accepted in the
United States of America. These statements should be read in conjunction with
the Company's most recent annual financial statements for the year ended
December 31, 2008 included in a 10-K filed with the U.S. Securities and Exchange
Commission (SEC) on April 15, 2009. In the opinion of management, all
adjustments necessary for a fair presentation have been included in the
accompanying interim financial statements and consist of only normal recurring
adjustments. The results of operations presented in the accompanying interim
financial statements for the nine months ended September 30, 2009 are not
necessarily indicative of the operating results that may be expected for the
full year ending December 31, 2009.  3        UTEC,
INC.  Consolidated Financial Statements  September 30, 2009 and December 31, 2008  4      Contents Consolidated
Balance Sheets 6 Consolidated
Statements of Operations 7 Consolidated
Statements of Cash Flows 8 Item
2. Managements Discussion and Analysis of Financial Condition and Results of
Operations.16 Item
3.  Quantitative and Qualitative Disclosures About Market
Risk 18 Item
4T. Controls and Procedures 18 PART
II  OTHER INFORMATION 19 Item
2.  Unregistered Sales of Equity Securities and Use of
Proceeds 19 Item
5.  Other Information 19 Item
6. Exhibits 19          5


UTEC, INC.Consolidated
Balance SheetsASSETSSeptember
30,

December
31,2009

2008(Unaudited)CURRENT ASSETSCash and cash
equivalents

$
-

$
-Total Current Assets


-


-PROPERTY, PLANT AND EQUIPMENT,
NET


328,013


328,013OTHER ASSETSIntangible assets, net


-


61,576Total Other Assets


-


61,576ASSETS FROM DISCONTINUED
OPERATIONS, NET


-


1,633,930TOTAL ASSETS

$
328,013

$
2,023,519LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)CURRENT LIABILITIESAccounts payable and accrued
liabilities

$
366,556

$
346,196Accrued Salary


100,000


-Accounts payable to related
parties


40,000


-Total Current
Liabilities


506,556


346,196TOTAL LIABILITIES


506,556


346,196STOCKHOLDERS' EQUITY
(DEFICIT)Preferred stock - 1,000,000
authorized, $0.001 par value;42,013 and
42,013 issued and outstanding, respectively


42


42Common stock - 74,000,000
authorized, $0.001 par value;29,468,159
and 51,968,159 issued and outstanding, respectively


29,468


51,968Additional paid-in
capital


2,238,215


2,149,515Accumulated deficit


(2,446,268)


(524,202)Total Stockholders' Equity
(Deficit)


(178,543)


1,677,323TOTAL LIABILITIES AND
STOCKHOLDERS'EQUITY

$
328,013

$
2,023,519The accompanying
condensed notes are an integral part of these financial
statements.4


UTEC, INC.Consolidated Statements of Operations(Unaudited)For the Three Months Ended

For the Nine Months EndedSeptember 30,

September 30,2009

2008

2009

2008REVENUES

$
-

$
-

$
-

$
-COST
OF SALES


-


-


-


-GROSS
MARGIN


-


-


-


-OPERATING
EXPENSESImpairment
of intangible assets


60,343


-


60,343


-General
and administrative


76,053


24,771


185,879


87,177Total
Operating Expenses


136,396


24,771


246,222


87,177LOSS
FROM OPERATIONS


(136,396)


(24,771)


(246,222)


(87,177)OTHER
INCOME AND (EXPENSE)Interest
expense


-


-


-


-LOSS
BEFORE TAXES


(136,396)


(24,771)


(246,222)


(87,177)Provision
for income taxes


-


-


(170,800)


-NET
LOSS FROM CONTINUING OPERATIONS


(136,396)


(24,771)


(417,022)


(87,177)Net
income from discontinued operations


-


36,200


225,698


2,705Loss
on disposal of discontinued operations


-


-


(1,730,742)


-Total
income (loss) from discontinued operations, net


-


36,200


(1,505,044)


2,705NET
INCOME (LOSS)

$
(136,396)

$
11,429

$
(1,922,066)

$
(84,472)BASIC
LOSS PER SHARE FROM CONTINUING OPERATIONS
$
(0.01)

$
(0.00)

$
(0.01)

$
(0.00)BASIC
LOSS PER SHARE FROM DISCONTINUED OPERATIONS
$
-

$
0.00

$
(0.04)

$
0.00TOTAL
BASIC LOSS PER SHARE

$
(0.00)

$
0.00

$
(0.05)

$
(0.00)WEIGHTED
AVERAGE NUMBEROF
SHARES OUTSTANDING


29,468,159


51,968,159


36,968,159


52,538,590The accompanying condensed notes are a integral part of these
financials statements.5


UTEC, INC.Consolidated
Statements of Cash Flows(Unaudited)For the Nine
Months EndedSeptember
30,2009

2008OPERATING ACTIVITIESNet loss

$
(1,922,066)

$
(84,472)Adjustments to Reconcile Net
Loss to NetCash Used by Operating
Activities:Depreciation


-


1,052Amortization of
intangibles


11,407


2,106Employee option grants
issued


66,200


64,500Impairment of long-lived
assets


60,343


-Loss from discontinued
operations


1,623,756


(131,367)Changes in operating assets and
liabilities:Accrued salary


100,000


-Accounts payable to related
parties


40,000


-Accounts payable and accrued
liabilities


20,360


-Net Cash Used in Operating
Activities


-


(148,181)INVESTING ACTIVITIESDiscontinued operations


-


(81,887)Net Cash Used in Investing
Activities


-


(81,887)FINANCING ACTIVITIESProceeds from line-of-credit
from related party


-


286,936Repayment on line-of-credit to
related party


-


(174,936)Proceeds from common
stock


-


42,000Net Cash Provided by Financing
Activities


-


154,000NET DECREASE IN CASH


-


(76,068)CASH AT BEGINNING OF
PERIOD


-


89,377CASH AT END OF PERIOD

$
-

$
13,309SUPPLEMENTAL DISCLOSURES
OFCASH FLOW INFORMATIONCASH PAID FOR:Income taxes paid

$
-

$
-Interest paid


-


10,261NON CASH FINANCING
ACTIVITIESNoneThe accompanying
condensed notes are an integral part of these financial
statements.7


UTEC, INC. Condensed Notes to Consolidated Financial Statements September 30, 2009 and December 31, 2008   NOTE 1:
 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  a)
Business Activity  UTEC
INC., formerly Lyon Capital Venture Corp., is a Nevada corporation organized on
November 8, 1993 as a For Profit corporation for the purpose of engaging in
any lawful activity.  The Company was in the development stage through
December 31, 2006.  The year ended December 31, 2007, is the first year
during which the Company is considered an operating company and was no longer
considered in a development stage.  On January 10, 2007, the Company
purchased 100% of the shares of UTEC Corporation, Inc for a total consideration
of 22,500,000 of the Companys par value $0.001 common shares and 20,000 of the
Companys par value $0.001 preferred shares.  The Company also issued
2,525,000 common shares in finders fees.  The
Companys business is to offer state
of the art testing and analysis to clients worldwide.  The Company is a
leader in commercial explosives technology, including development, analysis,
testing and manufacturing.  The
Company operates a chemical research and development laboratory near Riverton,
Kansas, which specializes in commercial explosives development and analysis. The
Company also operates a destructive test facility near Hallowell, Kansas, which
specializes in determining the detonating characteristics of commercial
explosives.  In
2007, the Company licensed technology covering the use of cold plasma oxidizer
technology for the destruction of solid and liquid hazardous chemicals and
biologicals.  During 2007 and 2008, the Company worked to validate the
technology and prepare a business plan for its commercialization.  In
April 2009, the Company divested its commercial explosives development,
analysis, testing and manufacturing business (Legacy Business) to eliminate
the need to inject new capital into the Company to support this business, and
concentrate on raising the funds necessary to commercialize its hazardous waste
destruction business in exchange for 22,500,000 shares of its common stock.  b)
 Unaudited Consolidated 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 September 30, 2009 and for all
periods presented 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, 2008 audited
financial statements.  The results of operations for the period ended
September 30, 2009 and 2008 are not necessarily indicative of the operating
results for the full year.





UTEC, INC. Condensed Notes to Consolidated Financial Statements September 30, 2009 and December 31, 2008     NOTE 1:
 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING  POLICIES
(CONTINUED)  c)  New
Accounting Pronouncements  In May
2009, the FASB issued FAS 165, Subsequent Events.  This pronouncement
establishes standards for accounting for and disclosing subsequent events
(events which occur after the balance sheet date but before financial statements
are issued or are available to be issued). FAS 165 requires and entity to
disclose the date subsequent events were evaluated and whether that evaluation
took place on the date financial statements were issued or were available to be
issued. It is effective for interim and annual periods ending after June 15,
2009. The adoption of  FAS 165 did not have a material impact on the
Companys financial condition or results of operation.  In June
2009, the FASB issued FAS 166, Accounting for Transfers of Financial Assets an
amendment of FAS 140. FAS 140 is intended to improve the relevance,
representational faithfulness, and comparability of the information that a
reporting entity provides in its financial statements about a transfer of
financial assets: the effects of a transfer on its financial position, financial
performance , and cash flows: and a transferors continuing involvement, if any,
in transferred financial assets. This statement must be applied as of the
beginning of each reporting entitys  first annual reporting period that
begins after November 15,  2009. The Company does not expect the adoption
of  FAS 166 to have an impact on the Companys results of operations,
financial condition or cash flows.  In June
2009, the FASB issued FAS 167, Amendments to FASB Interpretation No. 46(R) .
FAS 167 is intended to (1) address the effects on certain provisions of FASB
Interpretation No. 46 (revised December 2003), Consolidation of Variable
Interest Entities, as a result of the elimination of the qualifying
special-purpose entity concept in FAS 166, and (2) constituent concerns about
the application of certain key provisions of Interpretation 46(R), including
those in which the accounting and disclosures under the Interpretation do not
always provided timely and useful information about an enterprises involvement
in a variable interest entity. This statement must be applied as of the
beginning of each reporting entitys  first annual reporting period that
begins after November 15,  2009. The Company does not expect the adoption
of  FAS 167 to have an impact on the Companys results of operations,
financial condition or cash flows.  In June
2009, the FASB issued FAS 168, The FASB Accounting Standards Codification and
the Hierarchy of Generally Accepted Accounting Principles. FAS 168 will become
the source of authoritative U.S. generally accepted accounting principles (GAAP)
recognized by the FASB to be applied by nongovernmental entities. Rules and
interpretive releases of the Securities and Exchange Commission (SEC) under
authority of federal securities laws are also sources of authoritative GAAP for
SEC registrants. On the effective date of this Statement, the Codification will
supersede all then-existing non-SEC accounting and reporting standards. All
other nongrandfathered non-SEC accounting literature not included in the
Codification will become nonauthoritative. This statement is effective for
financial statements issued for interim and annual periods ending after
September 15, 2009.The Company does not expect the adoption of  FAS 168 to
have an impact on the Companys results of operations, financial condition or
cash flows.





UTEC, INC. Condensed Notes to Consolidated Financial Statements September 30, 2009 and December 31, 2008     NOTE 2:
 GOING CONCERN ASSUMPTION  The
Companys group of activities consists solely of UTEC Corporation.  The
legacy activities of UTEC Corporation have not been sufficient to fund
development and commercialization of the waste destruction business and
consequently, for the past several months, the Directors and Management of UTEC,
Inc. have been exploring various means to continue the growth of the business
and fund the final development and commercialization of the waste destruction
technology licensed from Ceramatec, Inc. in early 2007. A
decision was made to sell the legacy business to Energetic Systems, Inc., LLC.,
and retain within the UTEC consolidated group the Ceramatec license and waste
destruction assets developed over the past two years.  This will minimize
the immediate cash requirements of the company.  The sale was completed on
April 26, 2009, effective as of April 1, 2009.  UTEC, Inc. and its wholly
owned subsidiary UTEC Corporation will continue as public companies, retaining
the assets of the waste destruction business.  Following the sale, the companies do not have any significant
operations to fund, but do have some liabilities related to the purchase and
development of the waste destruction units that need to be satisfied within a
few months of the sale of the legacy business in order to continue as a going
concern.  In addition, UTEC Inc. needs to link up with a financial partner
capable of funding the business plan for the waste destruction business.
 Management believes this can be accomplished and has considering various
options to acquire this funding, but has not yet entered into an agreement to do
so.  NOTE 3:
 INTANGIBLE ASSETS  Intangible assets consist of the following at September 30, 2009
and December 31, 2008:  2009


2008(unaudited)Patent rights
$
-0-

$
71,750Accumulated amortization

-0-


(10,174)$
-0-

$
61,576  The
Patent rights are based upon the contractual agreement between the Company and
Ceramatec, as described in Note 4.  The Company is amortizing these Patent
rights over 17 years.  On September 2, 2009 the contract with Ceramatec was
cancelled due to nonperformance.  Accordingly, the assets associated with
the contract were impaired and an impairment expenses was recorded as detailed
in Note 7.  NOTE 4:
 CONTRACTUAL OBLIGATIONS  Ceramatec, Inc.  Effective February 1, 2007, the company entered into a License and
Supply Agreement with Ceramatec, Inc. of Salt Lake City, Utah (License) for a
world wide exclusive royalty-free license to practice Cermatecs Gild Arc Plasma
Oxidizer technology for the destruction of solid and liquid hazardous chemicals
and biologicals.  The agreement continues to the full end of the term or
terms for which patent rights held by Ceramatec and related to the technology
have not expired.





UTEC, INC. Condensed Notes to Consolidated Financial Statements September 30, 2009 and December 31, 2008     NOTE
4:  CONTRACTUAL OBLIGATIONS (CONTINUED)  In
connection with the agreement, the Company granted 850,000 shares of its Common
Stock to Ceramatec.  Subject to any Securities and Exchange Commission
regulations, Ceramatec may sell its stock starting two years from the Effective
Date of the agreement. The Ceramatec agreement provided for (i) a license to the
technology, (ii) support with the technology and (iii) a supply agreement with
Ceramatec in exchange for the shares provided.  The
shares to Ceramatec were provided for item (i), the license. The support and
supply agreement (i & ii) were included in the supply agreement and payments
made to Ceramatec to purchase the equipment and units specified in the
agreement.  The
restricted stock given in exchange for the exclusive licensing agreement with
Ceramatec was valued at $0.0842 per share.  This value was adopted from the
calculation of the value of the restricted shares given in exchange for the
acquired company, Utec Corporation.  The agreement with Ceramatec is dated
February 1, 2007 within three weeks of the day UTEC Corporation was acquired.
 Although the market price at the close of business on February 1, 2007 was
$0.52 per share a true trading market for the stock had not been established
during that brief period and Management believed a more accurate fair value was
represented by the value established in the acquisition of Utec Corporation.
 The Company has accounted for its share-based payments in accordance with
SFAS 123(R), Share Based Payments, and EITF Issue 96-18, Accounting
for Equity Instruments That Are Issued to Other Than Employees for Acquiring, or
in Conjunction with Selling, Goods or Services.  If
Ceramatec is not able to sell its stock granted under this agreement for at
least $700,000 within the first two years after it is allowed to sell its stock
under this agreement, then any license granted under this agreement shall become
non-exclusive. Ceramatec agreed to pay a finders fees of 85,000 shares to a
third party in connection with this agreement.  The
Company is amortizing the asset over seventeen (17) years, which is the
estimated remaining life of the patents to which the Company has exclusivity
rights.  See Note 5.  During
the term of the License, the company is obligated to purchase plasma oxidizer
units from Ceramatec in order to maintain exclusivity under the license
agreement. The companys minimum obligations under this purchase arrangement are
$100,000 in 2008, $200,000 in 2009 and $600,000 for each remaining year of the
agreement. If the minimum purchase requirement is not met for any year, the
license grant of this agreement shall automatically convert from exclusive to
nonexclusive for the remainder of the term of the agreement.  The
License includes a provision that entitles the Company to any improvements to
the technology, whether patentable or not, without further cost to the
Company.  On
September 30, 2009, this contract with Ceramatec was cancelled.  As of
September 30, 2009, the Company had not made any purchases from Ceramatec
against the minimum obligations for 2009, and the Company owed Ceramatec
$111,457 with respect to purchases during 2008 which is included in accounts
payable and accrued liabilities.





UTEC, INC. Condensed Notes to Consolidated Financial Statements September 30, 2009 and December 31, 2008      NOTE 5:
 EMPLOYEE STOCK PLAN  Effective March 26, 2008 the restricted shares issued pursuant to
the Employee Stock Ownership Plan dated January 11, 2007 were cancelled in their
entirety, except for 16,000 which were misplaced by the employee and will be
cancelled in a timely manner.  The Plan has since been rescinded.  In its
place each employee signed an Employee Stock Option Plan dated March 26, 2008.
The plan contains no provision for vesting and each employee may exercise their
rights to purchase shares at the strike price of $0.25 on the plan date.
 The unexercised options terminate at the end of five years or upon the
employee being terminated from the Company whichever is earlier.  The
fair value of each option award is estimated on the date of grant using a
Black-Scholes valuation model that uses the assumptions noted in the following
table. Expected volatilities are based on implied volatilities from traded
options on the Companys stock in addition to other publicly traded companies
stock within the market segment of industrial waste management. This is due
primarily to the fact that The Company does not have enough history to properly
ascertain the volatility rate. The expected term of options granted is also
estimated since the company does not have a history of granting stock rights and
represents the period of time that options granted are expected to be
outstanding. The risk-free rate for periods within the contractual life of the
option is based on the Libor rate in effect at the time of grant. FYE
2008Expected
volatility
71.44%Expected
dividends
0.00Expected term
(in years)
3.5Risk-free
rate
2.67%  A summary of the
status of The Companys non-vested stock options granted with this plan as of
September 30, 2009 is presented below: Non-vested Options
Options (000)
Weighted Average Grant-Date Fair ValueNon-vested at
January 1, 2009
$
      1,914
$
             0.24Granted
-
-Vested
1,914
0.24Forfeited
-
-Non-vested at
September 30, 2009
$
               -
$
                -





UTEC, INC. Condensed Notes to Consolidated Financial Statements September 30, 2009 and December 31, 2008   NOTE 5:
 EMPLOYEE STOCK PLAN (CONTINUED)  On
March 29, 2009 stock options totaling 5,650,000 of its $0.001 par value common
stock to key employees, consultants and officers and directors in a
non-qualified stock option plan with a conversion period of 10 years, at a
conversion price of $0.01 for past fully completed services.  Using the
Black-Scholes method of valuing the options detailed above the options were
valued using the following assumptions: FYE
2009Expected
volatility
71.44%Expected
dividends
0.00Expected term
(in years)
5.00Risk-free
rate
2.11%  A summary of the
status of The Companys non-vested stock options granted with this plan as of
September 30, 2009 is presented below: Non-vested
Options
Options (000)
Weighted-Average Grant-Date Fair ValueNon-vested at
January 1, 2009
$
                 -
$
                      0.236Granted
5,650
0.006Vested
5,650
0.006Forfeited
-
-Non-vested at
September 30, 2009
$
                 -
$
                             -  For the nine months
ending September 30, 2009 and 2008 share based compensation expense of $66,200
and $33,151 was recognized, respectively.  NOTE 6:
 DISCONTINUED OPERATIONS  In
April 2009, the Company sold its commercial explosives development, analysis,
testing and manufacturing business (Legacy Business) in a non-cash transaction
to a related party in exchange for stock in the Company totaling 22,500,000
shares.  The stock was cancelled in July of 2009.  A breakdown of the
loss associated with the discontinued is presented in the table below.  Three Months Ended September 30, 2009

Three Months Ended September 30, 2008

Nine  Months Ended September 30, 2009

Nine  Months Ended September 30, 2008Income
$
                -0-

$
      821,361

$
   1,039,595

$
 1,888,427Cost of Goods
Sold
-0-

247,477

353,544

521,259Operating
expenses
-0-

514,584

460,353

1,368,763Net Operating
Income (Loss)
-0-

59,300

225,698

(1,595)Loss on
disposal of assets
-0-

-0-

(1,730,742)

-0-Tax benefit at
34%
-0-

23,100

-0-

(4,300)Net income
(loss)
$
  -0-

$
    36,200

$
 (1,505,044)

$
    2,705





UTEC, INC. Condensed Notes to Consolidated Financial Statements September 30, 2009 and December 31, 2008     NOTE 7:
 IMPAIRMENT OF INTANGIBLE ASSETS  Effective February 1, 2007, the company entered into a License and
Supply Agreement with Ceramatec, Inc. of Salt Lake City, Utah (License) for a
world-wide exclusive royalty-free license to practice Cermatecs Gild Arc Plasma
Oxidizer technology for the destruction of solid and liquid hazardous chemicals
and biologicals.  The agreement continued to the full end of the term or
terms for which patent rights held by Ceramatec and related to the technology
have not expired.  The
company recognized an intangible asset associated with this license and patent
right and is amortizing this asset over the 17 year useful life of the contract.
 On September 2, 2009, this contract with Ceramatec was cancelled due to
non-performance.  In conjunction with the cancellation of the contract,
management has evaluated the intangible asset for impairment and has determined
that with no contract in place, the asset no longer has an economic value to the
Company.  Accordingly, the Company has impaired the entire carrying value
of the asset and recognized an impairment of intangible asset expense of
$60,343.  NOTE 8:
 SUBSEQUENT EVENTS  On
October 01, 2009 the Company entered into an agreement to purchase 100% of the
outstanding shares of C2R Energy Commodities, Inc., a Nevada corporation in
exchange for 4,050,000 shares of the Companys restricted common stock.  On
October 20, 2009 the Company sold 600,000 shares of restricted common stock for
$0.05 per share.


Item 2.
Managements Discussion and Analysis of Financial Condition and Results of
Operations.  2007
was the first year of operation for the Company, after it acquired the UTEC
Corporation from Energetic Systems Inc, LLC.  In 2007, the Company was
organized into three marketing units, Energetic Materials, Specialty Chemicals
and Raw Materials and Hazardous Chemicals and Biological Waste Destruction.
 The Companys historical legacy business was primarily constituted by the
first two marketing units and almost exclusively within the commercial
explosives market.  Revenue comparisons are included from these two
activities.  The new
marketing unit, Hazardous Chemicals and Biological Waste Destruction was in a
development stage through June of 2009, and had no commercial revenues.
 Focus has been on licensing and validation of the Cold Plasma Oxidizer
technology, and on the development of the Companys Waste Destruction System,
identification of potential markets, and preparation of its business plan.
 This business unit was structured in order to pursue commercialization of
Cold Plasma Oxidizer waste destruction systems during 2009.  During
the latter part of 2008, the Directors and Management conducted a review of the
Companys business prospects and concluded that the legacy activities of UTEC
Corporation were not sufficient to fund development and commercialization of the
waste destruction business.  Consequently, the Directors and Management
began exploring various means to continue the growth of the business and fund
the final development and commercialization of the waste destruction technology
licensed from Ceramatec.  A decision was made to sell the legacy business
to Energetic Systems, Inc., LLC., and retain within the UTEC consolidated group
the Ceramatec license and waste destruction assets developed over the past two
years.  The effect of this will be to simplify and focus the activities of
the Company on the waste destruction business, eliminate the need to inject
additional cash required to fund the legacy business, and thereby make the
Company more attractive to potential lenders and investors.  The sale was completed on
April 26, 2009, with effect from April 1, 2009.  UTEC, Inc. and its wholly
owned subsidiary UTEC Corporation will continue as public companies, retaining
the assets of the waste destruction business.  On
September 2, 2009 the Company received a termination notice from Ceramatec that
this agreement was cancelled for non-performance.  The Company had issued
850,000 of its $.001 par value common shares to Ceramatec that Ceramatec could
sell starting two years from the date of the agreement.  These unregistered
shares were issued under section 4(2) of the Securities Act of 1933 as they were
transactions by an issuer not involving any public offering.  The
Company has received assurances that the 765,000 shares still held by Ceramatec
issued under this agreement will be returned to treasury.  On
October 1, 2009 the Company purchased 100% of the outstanding shares of C2R
Energy Commodities Inc for the issuance of 4,050,000 of the Companys $0.001 par
value common shares. These unregistered shares were issued under section 4(2) of
the Securities Act of 1933 as they were transactions by an issuer not involving
any public offering.  Revenues  Revenues from continuing operations for the three and nine months
ended September 30, 2009 were $-0- and $-0-.  The Company divested all
assets that generated revenue in prior periods as part of the sale of the legacy
business.  Expenses  Expenses from continuing operations for the three and nine month
periods ended September 30, 2009 were $136,396 and $246,222.  For the same
periods ended September 30, 2008, expenses were $24,771 and $87,177.  The
majority of the remaining expenses are composed of $75,000 and $100,000 in
compensation to officers of the Company for the three and nine months ended
September 2009, respectively.  The Company also recorded a one-time
write-down of its intangible assets of $60,343 during the three months ended
September 30, 2009.         Discontinued
Operations  In
April 2009, the Company sold its commercial explosives development, analysis,
testing and manufacturing business (Legacy Business) in a non-cash transaction
to a related party in exchange for stock in the Company totaling 22,500,000
shares.  The stock was cancelled in July of 2009.  A breakdown of the
loss associated with the discontinued is presented in the table below.  Three Months Ended September 30, 2009

Three Months Ended September 30, 2008

Nine  Months Ended September 30, 2009

Nine  Months Ended September 30, 2008Income
$
                 -

$
      821,361

$
   1,039,595

$
 1,888,427Cost of Goods
Sold
-

247,477

353,544

521,259Operating
expenses
-

537,684

460,353

1,364,463Net Operating
Income (Loss)
-

36,200

225,698

2,705Loss on
disposal of assets
-

-

(1,730,742)

-Tax benefit at
34%
-

-

-

-Net income
(loss)
$
 -

$
    36,200

$
 (1,505,044)

$
    2,705  Liquidity and
Capital Resources  As of September 30, 2009, the Company had $-0- cash on hand.
 When UTEC Corporation was formed and acquired by UTEC, Inc., management
believed that the Company would need approximately $500,000 to properly fund
operations until such time as the Company was able to generate enough cash flow
from increased or new business to generate appropriate amounts of working
capital.  This money was to be raised via a secondary offering or through
private placements.  Due to current financial market conditions, the
Company was unable to externally finance, through independent third parties, the
projected $500,000 management believed would be necessary to properly fund
operations, and failed to generate the required funds from new or increased
business.  The
legacy activities of UTEC Corporation have not been sufficient to fund
development and commercialization of the waste destruction business and
consequently, for the past several months, the Directors and Management of UTEC,
Inc. have been exploring various means to continue the growth of the business
and fund the final development and commercialization of the waste destruction
technology licensed from Ceramatec, Inc. in early 2007.    It was
decided to sell the legacy business to Energetic Systems, Inc., LLC. and retain
within the UTEC consolidated group the Ceramatec license and waste destruction
assets developed over the past two years, thereby minimizing the immediate cash
requirements of the company.  The
sale was completed on April 26, 2009, effective as of April 1, 2009.  UTEC,
Inc. and its wholly owned subsidiary UTEC Corporation will continue as public
companies, retaining the assets of the waste destruction business.
  Following the sale, the companies do not have any significant
operations to fund, but do have some liabilities related to the purchase and
development of the waste destruction units that need to be satisfied within a
few months of the sale of the legacy business in order to continue as a going
concern.  In addition, UTEC Inc. needs to link up with a financial partner
capable of funding the business plan for the waste destruction business.
 Management believes this can be accomplished and has been considering
various options to acquire this funding, but has not yet entered into an
agreement to do so.  On September 2, 2009
the Company received a termination notice of the license from Ceramatec that
this agreement was cancelled for non-performance.          Item 3.
 Quantitative and Qualitative Disclosures About Market Risk  Not Applicable.   Item 4T. Controls
and Procedures  Our
management is responsible for establishing and maintaining adequate internal
control over financial reporting.  Internal control over financial
reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the
Securities Exchange Act of 1934 as a process designed by, or under the
supervision of, the companys principal executive and principal financial
officers and effected by the companys board of directors, management and other
personnel, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with accounting principles generally accepted in the
United States of America and includes those policies and procedures that:  - Pertain to the maintenance of records that in reasonable detail
accurately and fairly reflect the transactions and dispositions of the assets of
the company;  - Provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with
accounting principles generally accepted in the United States of America and
that receipts and expenditures of the company are being made only in accordance
with authorizations of management and directors of the company; and  - Provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use or disposition of the companys
assets that could have a material effect on the financial statements.  Because
of its inherent limitations, internal control over financial reporting may not
prevent or detect misstatements.  Projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.  All internal control
systems, no matter how well designed, have inherent limitations.
 Therefore, even those systems determined to be effective can provide only
reasonable assurance with respect to financial statement preparation and
presentation.  Because of the inherent limitations of internal control,
there is a risk that material misstatements may not be prevented or detected on
a timely basis by internal control over financial reporting. However, these
inherent limitations are known features of the financial reporting process.
 Therefore, it is possible to design into the process safeguards to reduce,
though not eliminate, this risk.  As of
September 30, 2009, management assessed the effectiveness of our internal
control over financial reporting based on the criteria for effective internal
control over financial reporting established in Internal Control--Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway
Commission ("COSO") and SEC guidance on conducting such assessments.  Based
on that evaluation, they concluded that, during the period covered by this
report, such internal controls and procedures were not effective to detect the
inappropriate application of US GAAP rules as more fully described below.
 This was due to deficiencies that existed in the design or operation of
our internal controls over financial reporting that adversely affected our
internal controls and that may be considered to be material weaknesses.  The
matters involving internal controls and procedures that our management
considered to be material weaknesses under the standards of the Public Company
Accounting Oversight Board were: (1) inadequate segregation of duties consistent
with control objectives.  The aforementioned material weakness was
identified by our Chief Executive Officer in connection with the review of our
financial statements as of September 30, 2009.  Management believes
that the material weakness set forth above did not have an effect on our
financial results.  Changes in
internal controls over financial reporting  There was no
change in our internal controls over financial reporting that occurred during
the period covered by this report that has materially affected, or is reasonably
likely to materially affect, our internal controls over financial reporting.          PART II  OTHER
INFORMATION   Item 2.
 Unregistered Sales of Equity Securities and Use of Proceeds  On
October 1, 2009 the Company purchased 100% of the outstanding shares of C2R
Energy Commodities Inc for the issuance of 4,050,000 of the Companys $0.001 par
value common shares. These unregistered shares were issued under section 4(2) of
the Securities Act of 1933 as they were transactions by an issuer not involving
any public offering.   Item 5.
 Other Information  On October 1, 2009,
the Board of Directors asked Suresh Subramanian to step down as President and
 J. Curt Stafford to step down as CFO of the Company pursuant to a
condition of the Companys agreement with CR2 Energy Commodities Corp.
 Effective October 1, 2009, the Board of Directors appointed Fortunato
Villamagna President and CEO; Kenneth B. Liebscher as Secretary and Howard Bouch
as CFO.   Item 6. Exhibits Exhibits:  Exhibit
No.
Document
Location31
Rule
13a-41(a)/15d-14(a) Certificates
Included32
Section
1350 Certifications
Included           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.   UTEC, INC.    November
17, 2009 /s/
Fortunato Villamagna Date Fortunato Villamagna, Director & CEO,