----

----

|                                                           |                                                                               |
|----------------------------------------------------------------|------------------------------------------------------------------------------------|
| þ                                                         |  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE  |
|                                                           |  ACT OF 1934                                                                  |
|                                                           |
| For the quarterly period ended: April 30, 2010                 |
|                                                           |
| Or                                                             |
|                                                           |                                                                               |
| o                                                              |  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE |
|                                                           |  ACT OF 1934                                                                  |
| For the transition period from: _____________ to _____________ |

| Nevada                                                        |   | 333-140306             |   | 20-2356853                       |
|---------------------------------------------------------------|--------|------------------------|--------|----------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | Commissionfile number) |   | (IRS EmployerIdentification No.) |

|  Large Accelerated Filer |  o | Accelerated Filer |  o | Non-Accelerated Filer |  o | Smaller Reporting Company |  þ |
|-----------------------------------------|---------|------------------------|---------|----------------------------|---------|-------------------------------------|--------------|

----

----

----

| INDEX |
|-------|

| PART I - FINANCIAL INFORMATION |                                                                                                                                                                                                                                                           |   |   |
|--------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                           |                                                                                                                                                                                                                                                           |   |   |   |
| Item 1.                        | Financial Statements                                                                                                                                                                                                                                           |   |   |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
|                           | Consolidated Balance Sheets as of April 30, 2010 (Unaudited) and October 31, 2009                                                                                                                                                                              |   | 1      |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
|                           | Consolidated Statements of Operations For the Three and Six Months Ended April 30, 2010, for the Period from April 9, 2009 (Inception) through April 30, 2009, and for the Period from April 9, 2009 (Inception) through April 30, 2010  (Unaudited) |   | 2      |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
|                           | Consolidated Statement of Stockholders’ Equity for the Period from April 9, 2009 (inception) through April 30, 2010 (Unaudited)                                                                                                                          |   | 3      |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
|                           | Consolidated Statements of Cash Flows For the Six Months Ended January 31, 2010, and for the Period from April 9, 2009 (Inception) through April 30, 2009, and for the Period from April 9, 2009 (Inception) through April 30, 2010  (Unaudited)     |   | 4      |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
|                           | Notes to the Consolidated Financial Statements (Unaudited)                                                                                                                                                                                                     |   | 5      |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
| Item 2.                        | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                                                                                                                                                    |   | 16     |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
| Item 3.                        | Quantitative and Qualitative Disclosures About Market Risk                                                                                                                                                                                                     |   | 22     |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
| Item 4.                        | Controls and Procedures                                                                                                                                                                                                                                        |   | 22     |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
| PART II - OTHER INFORMATION    |                                                                                                                                                                                                                                                           |   |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
| Item 1.                        | Legal Proceedings                                                                                                                                                                                                                                              |   | 23     |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
| Item 2.                        | Unregistered Sales of Equity Securities and Use of Proceeds                                                                                                                                                                                                    |   | 23     |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
| Item 3.                        | Defaults Upon Senior Securities                                                                                                                                                                                                                                |   | 24     |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
| Item 4.                        | Submission of Matters to a Vote of Security Holders                                                                                                                                                                                                            |   | 24     |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
| Item 5.                        | Other Information                                                                                                                                                                                                                                              |   | 24     |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
| Item 6.                        | Exhibits                                                                                                                                                                                                                                                       |   | 24     |   |
|                           |                                                                                                                                                                                                                                                           |   |   |   |
| SIGNATURES                     |                                                                                                                                                                                                                                                           | 25     |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | April 30, 2010 |       |   | October 31, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | (Unaudited)    |       |   |             |   |
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |           |       |   |             |   |
| Current assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |           |       |   |             |   |
|    Cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $              | 603        |   |             | $      | 2,221 |   |
|    Prepaid expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           | 28,334     |   |             |   | 56,781 |   |
|    Other receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |           | 73,706     |   |             |   | - |   |
|    Capitalized issuance expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |           | 6,835      |   |             |   | 57,667 |   |
| Total current assets                                                                                                                                                                                                                             |   |           | 109,478    |   |             |   | 116,669 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |       |   |             |   |   |   |
| Property and equipment, net of accumulated depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |           | 10,352,970 |   |             |   | 10,538,970 |   |
| Equipment, net held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |           | 3,090,000  |   |             |   | 5,150,000 |   |
| License agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |           | -          |   |             |   | 1,500,000 |   |
| Total assets                                                                                                                                                                                        |   | $              | 13,552,448 |   |             | $      | 17,305,639 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |       |   |             |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |           |       |   |             |   |   |   |
| Current liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |       |   |             |   |   |   |
|   Accounts payable and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | $              | 1,406,844  |   |             | $      | 865,067 |   |
|   Related party payables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           | 16,546     |   |             |   | 214,085 |   |
|   Accrued interest payable                                                                                                                                                                                              |   |           | 317,648    |   |             |   | 282,502 |   |
|   Common stock in dispute (500,000 shares held by Company)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           | 2,000,000  |   |             |   | - |   |
|   Notes payable, net of discount                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |           | 1,429,030  |   |             |   | 1,320,250 |   |
|   Current portion of deferred liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |           | -          |   |             |   | 60,000 |   |
| Total current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |           | 5,170, 068 |   |             |   | 2,741,904 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |       |   |             |   |   |   |
| Deferred liability, net of current portion                                                                                                                                                                                   |   |           | -          |   |             |   | 1,440,000 |   |
| Derivative liability                                                                                                                                                                                |   |           | 4,273,153  |   |             |   | 4,392,823 |   |
| Deferred income tax liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |           | 1,792,934  |   |             |   | 1,792,934 |   |
|             Total liabilities                                                                                                           |   |           | 11,236,155 |   |             |   | 10,367,661 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |       |   |             |   |   |   |
| Stockholders’ equity:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           |       |   |             |   |   |   |
| Preferred Stock, $0.001 par value; 1,000,000 authorized,  22,500 shares designated as Series A Convertible preferred stock; 22,500 shares issued and outstanding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |           | 150,563    |   |             |   | 53,973 |   |
| Common stock, $0.001 par value, 74,000,000 shares  authorized, 18,156,077 and 17,581,077  issued and outstanding at April 30, 2010 and October 31, 2009, respectively                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |           | 18,156     |   |             |   | 17,581 |   |
| Additional paid-in capital                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |           | 7,023,327  |   |             |   | 3,386,023 |   |
| Earnings (deficit) accumulated during the development stage                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |           | (4,875,753 |   |             |   | 3,480,401 |   |
| Total stockholders’ equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |           | 2,316,293  |   |             |   | 6,937,978 |   |
| Total liabilities and stockholders’  equity                                                                                                                                         |   | $              | 13,552,448 |   |             | $      | 17,305,639 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |           |       |   |             |   |   |   |

----

|                                                                                           |   | ThreemonthsendedApril 30, 2010 |       |   | Six monthsendedApril 30, 2010 |   |       | For theperiod fromApril 9, 2009(Inception)April 30, 2009 |   |   | For theperiod fromApril 9, 2009(Inception)April 30, 2010 |   |
|------------------------------------------------------------------------------------------------|--------|-------------------------------------|------------|--------|------------------------------------|--------|------------|--------------------------------------------------------------------|--------|--------|--------------------------------------------------------------------|--------|
| Revenue:                                                                                       |   | $                                   | -          |   |                               | $      | -          |                                                               |   | $      | -                                                                  |   |   | $ | - |   |
|                                                                                           |   |                                |       |   |                               |   |       |                                                               |   |   |                                                               |   |   |   |   |   |
| Operating expenses:                                                                       |   |                                |       |   |                               |   |       |                                                               |   |   |                                                               |   |   |   |   |   |
|  Professional fees                                                                        |   |                                | 128,123    |   |                               |   | 508,359    |                                                               |   |   | -                                                                  |   |   |   | 856,901 |   |
|      Compensation expense                                             |   |                                | 2,531,836  |   |                               |   | 4,782,356  |                                                               |   |   | -                                                                  |   |   |   | 4,782,357 |   |
|      Management services                                              |   |                                | 125,000    |   |                               |   | 250,000    |                                                               |   |   | -                                                                  |   |   |   | 340,987 |   |
|      Depreciation and amortization                                    |   |                                | 99,250     |   |                               |   | 246,000    |                                                               |   |   | -                                                                  |   |   |   | 500,250 |   |
|      General and administration                                       |   |                                | 195,803    |   |                               |   | 484,439    |                                                               |   |   | -                                                                  |   |   |   | 681,154 |   |
| Total operating expenses                                                                  |   |                                | 3,080,012  |   |                               |   | 6,271,154  |                                                               |   |   | -                                                                  |   |   |   | 7,161,649 |   |
|                                                                                           |   |                                |       |   |                               |   |       |                                                               |   |   |                                                               |   |   |   |   |   |
| Loss from operations                                                                           |   |                                | (3,080,012 | )      |                               |   | (6,271,154 | )                                                                  |   |   | -                                                                  |   |   |   | (7,161,649 | ) |
|                                                                                           |   |                                |       |   |                               |   |       |                                                               |   |   |                                                               |   |   |   |   |   |
| Other expense (income):                                                                        |   |                                |       |   |                               |   |       |                                                               |   |   |                                                               |   |   |   |   |   |
|   Interest expense                                                                   |   |                                | 2,926      |   |                               |   | 48,080     |                                                               |   |   | -                                                                  |   |   |   | 95,826 |   |
|   Loss/(gain) on derivative liability                                                |   |                                | (493,854   | )      |                               |   | (23,080    | )                                                                  |   |   | -                                                                  |   |   |   | 4,128,980 |   |
|   Other income                                                                       |   |                                | -          |   |                               |   | -          |                                                               |   |   | -                                                                  |   |   |   | (16,779 | ) |
|   Impairment on equipment held for sale                                              |   |                                | -          |   |                               |   | 2,060,000  |                                                               |   |   | -                                                                  |   |   |   | 2,060,000 |   |
| Total other expense (income)                                                                   |   |                                | (490,928   | )      |                               |   | 2,085,000  |                                                               |   |   | -                                                                  |   |   |   | 6,268,027 |   |
|                                                                                           |   |                                |       |   |                               |   |       |                                                               |   |   | -                                                                  |   |   |   |   |   |
| Loss before income taxes and extraordinary gain                                                |   |                                | (2,589,084 | )      |                               |   | (8,356,154 | )                                                                  |   |   | -                                                                  |   |   |   | (13,429,676 | ) |
|                                                                                           |   |                                |       |   |                               |   |       |                                                               |   |   | -                                                                  |   |   |   |   |   |
| Income tax provision                                                                           |   |                                | -          |   |                               |   | -          |                                                               |   |   | -                                                                  |   |   |   | (1,792,934 | ) |
| Loss before extraordinary gain                                                                 |   |                                | -          |   |                               |   | -          |                                                               |   |   | -                                                                  |   |   |   | (15,222,610 | ) |
|                                                                                           |   |                                |       |   |                               |   |       |                                                               |   |   | -                                                                  |   |   |   |   |   |
| Extraordinary gain on acquisition                                                              |   |                                |       |   |                               |   |       |                                                               |   |   | -                                                                  |   |   |   | 10,346,857 |   |
| Net loss                                                                                       |   | $                                   | (2,589,084 | )      |                               | $      | (8,356,154 | )                                                                  |   | $      | -                                                                  |   |   | $ | (4,875,753 | ) |
|                                                                                           |   |                                |       |   |                               |   |       |                                                               |   |   |                                                               |   |   |   |   |   |
| Net loss per common share – basic and diluted                                            |   | $                                   | (0.14      | )      |                               | $      | (0.48      | )                                                                  |   | $      | (0.00                                                              | )      |   | $ | (0.89 | ) |
| Net income per common share from extraordinary gain on acquisition – basic & diluted |   |                                | 0.00       |   |                               |   | 0.00       |                                                               |   |   | 0.00                                                               |   |   |   | 0.60 |   |
|                                                                                           |   |                                |       |   |                               |   |       |                                                               |   |   |                                                               |   |   |   |   |   |
| Net loss per common share                                                                      |   | $                                   | (0.14      | )      |                               | $      | (0.48      | )                                                                  |   | $      | (0.00                                                              | )      |   | $ | (0.29 | ) |
|                                                                                           |   |                                |       |   |                               |   |       |                                                               |   |   |                                                               |   |   |   |   |   |
| Weighted average number of common shares outstanding - basic and diluted                       |   |                                | 17,948,212 |   |                               |   | 17,541,022 |                                                               |   |   | 17,201,433                                                         |   |   |   | 17,081,077 |   |

----

|                                                    |   | PreferredStock(Shares) |   |   | PreferredStock($) |   |    | Discount on Preferred Stock($) |   |   | CommonStock(Shares) |   |   | CommonStock($) |        |   | AdditionalPaid-inCapital($) |   |   | (Deficit)Income Accumulated During the DevelopmentStage($) |   |   | TotalStockholders’Equity($) |   |
|---------------------------------------------------------|--------|------------------------|--------|--------|-------------------|--------|---------|--------------------------------|--------|--------|---------------------|--------|--------|----------------|-------------|--------|-----------------------------|--------|--------|------------------------------------------------------------|--------|--------|-----------------------------------|--------|
| Balance at April 9, 2009 (Inception)                    |   |                   | -      |   |              | $      | -       |                           |   | $      | -                   |   |   |           | 9,760,000   |   |                        | $      | 9,760  |                                                       |   | $      | 49,995                            |   |   | $ | (83,218 | ) |   | $ | (23,463 | ) |
| Reverse Acquisition                                     |   |                   |   |   |              |   |    |                           |   |   |                |   |   |           | 7,321,077   |   |                        |   | 7,321  |                                                       |   |   | (66,745                           | )      |   |   | 83,218 |   |   |   | 23,794 |   |
| Sale of 12,000 preferred shares                         |   |                   | 12,000 |   |              |   | 120,000 |                           |   |   | (120,000            | )      |   |           |        |   |                        |   |   |                                                       |   |   |                              |   |   |   |   |   |   |   | - |   |
| Sale of 5,000 preferred shares                          |   |                   | 5,000  |   |              |   | 50,000  |                           |   |   | (50,000             | )      |   |           |        |   |                        |   |   |                                                       |   |   |                              |   |   |   |   |   |   |   | - |   |
| Sale of 5,500 preferred shares                          |   |                   | 5,500  |   |              |   | 55,000  |                           |   |   | (55,000             | )      |   |           |        |   |                        |   |   |                                                       |   |   |                              |   |   |   |   |   |   |   | - |   |
| Shares issued for cancelled warrants                    |   |                   |   |   |              |   |    |                           |   |   |                |   |   |           | 500,000     |   |                        |   | 500    |                                                       |   |   | 3,402,773                         |   |   |   |   |   |   |   | 3,403,273 |   |
| Amortization of discount on preferred shares            |   |                   |   |   |              |   |    |                           |   |   | 53,973              |   |   |           |        |   |                        |   |   |                                                       |   |   |                              |   |   |   |   |   |   |   | 53,973 |   |
| Net income                                              |   |                   |   |   |              |   |    |                           |   |   |                |   |   |           |        |   |                        |   |   |                                                       |   |   |                              |   |   |   | 3,480,401 |   |   |   | 3,480,401 |   |
| Balance at October 31, 2009                             |   |                   | 22,500 |   |              |   | 225,000 |                           |   |   | (171,027            | )      |   |           | 17,581,077  |   |                        |   | 17,581 |                                                       |   |   | 3,386,023                         |   |   |   | 3,480,401 |   |   |   | 6,937,978 |   |
| Shares in dispute, held by Company,                     |   |                   |   |   |              |   |    |                           |   |   |                |   |   |           | (500,000    | )      |                        |   | (500   | )                                                          |   |   | (1,999,500                        | )      |   |   |   |   |   |   | (2,000,000 | ) |
| Stockholder Shares issued for services                  |   |                   |   |   |              |   |    |                           |   |   |                |   |   |           |        |   |                        |   |   |                                                       |   |   | 4,782,281                         |   |   |   |   |   |   |   | 4,782,281 |   |
| Issuance of shares to Harborview                        |   |                   |   |   |              |   |    |                           |   |   |                |   |   |           | 75,000      |   |                        |   | 75     |                                                       |   |   |                              |   |   |   |   |   |   |   | 75 |   |
| Shares issued for debt on March 3, 2010                 |   |                   |   |   |              |   |    |                           |   |   |                |   |   |           | 1,000,000   |   |                        |   | 1,000  |                                                       |   |   | 854,523                           |   |   |   |   |   |   |   | 855,523 |   |
| Amortization of discount on  preferred shares |   |                   |   |   |              |   |    |                           |   |   | 96,590              |   |   |           |        |   |                        |   |   |                                                       |   |   |                              |   |   |   |   |   |   |   | 96,590 |   |
| Net loss                                                |   |                   |   |   |              |   |    |                           |   |   |                |   |   |           |        |   |                        |   |   |                                                       |   |   |                              |   |   |   | (8,356,154 | ) |   |   | (8,356,154 | ) |
| Balance at April 30, 2010                               |   |                   | 22,500 |   |              | $      | 225,000 |                           |   | $      | (74,437             | )      |   |           | 18,156, 077 |   |                        | $      | 18,156 |                                                       |   | $      | 7,023,327                         |   |   | $ | (4,875,753 | ) |   | $ | 2,316,293 |   |

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | For the SixMonth PeriodendedApril 30, 2010 |       |   | For the periodfrom April 9, 2009 (Inception)April 30, 2009 |   |   | For the periodfrom April 9, 2009(Inception)April 30, 2010 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|------------|--------|----------------------------------------------------------------------|--------|--------|---------------------------------------------------------------------|--------|
| Cash flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |   |                                                                 |   |   |                                                                |   |   |
| Net loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                    | (8,356,154 | )      |                                                                 |   | -      |                                                                |   | $ | (4,875,753 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                 |       |   |                                                                 |   |   |                                                                |   |   |   |   |
| Gain on acquisition, net of cash paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | -          |   |                                                                 |   | -      |                                                                |   |   | (10,284,842 | ) |
| Impairment on equipment held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | 2,060,000  |   |                                                                 |   | -      |                                                                |   |   | 2,060,000 |   |
| Discount on note payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                 | -          |   |                                                                 |   | -      |                                                                |   |   | (215,000 |   |
| Stock compensation expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                                                 | 4,782,356  |   |                                                                 |   | -      |                                                                |   |   | 4,782,356 |   |
| Loss/(gain) on derivative liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                 | (23,080    | )      |                                                                 |   | -      |                                                                |   |   | 4,206,652 |   |
| Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                 | 246,000    |   |                                                                 |   | -      |                                                                |   |   | 500,250 |   |
| Amortization of discount on preferred stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                 | 96,590     |   |                                                                 |   | -      |                                                                |   |   | 74,437 |   |
| Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | (102,840   | )      |                                                                 |   | -      |                                                                |   |   | (284,588 | ) |
| Changes in operating assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 |       |   |                                                                 |   |   |                                                                |   |   |   |   |
| Prepaid expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                 | 28,447     |   |                                                                 |   | -      |                                                                |   |   | 28,334 |   |
| Related party accounts receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |                                                 | (73,706    | )      |                                                                 |   | -      |                                                                |   |   | (73,706 | ) |
| Licensing agreement                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                 |       |   |                                                                 |   |   |                                                                |   |   | (1,500,000 | ) |
| Capitalized issuance expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 | 50,832     |   |                                                                 |   | -      |                                                                |   |   | (6,835 | ) |
| Accounts payable and accrued expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 | 576,923    |   |                                                                 |   | 1,450  |                                                                |   |   | 991,280 |   |
| Related party accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                 | 657,984    |   |                                                                 |   | -      |                                                                |   |   | 872,069 |   |
| Deferred liability                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                 | -          |   |                                                                 |   | -      |                                                                |   |   | 1,500,000 |   |
| Income taxes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                 | -          |   |                                                                 |   | -      |                                                                |   |   | 1,792,934 |   |
| Net cash provided by (used in) operating activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                                 | (56,648    | )      |                                                                 |   | 1,450  |                                                                |   |   | (432,412 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                 |       |   |                                                                 |   |   |                                                                |   |   |   |   |
| Cash flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |   |                                                                 |   |   |                                                                |   |   |   |   |
| Cash paid for Liquafaction acquisition                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                 | -          |   |                                                                 |   | -      |                                                                |   |   | (62,015 | ) |
|          Net cash used in investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                                                 | -          |   |                                                                 |   | -      |                                                                |   |   | (62,015 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                 |       |   |                                                                 |   |   |                                                                |   |   |   |   |
| Cash flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                                                 |       |   |                                                                 |   |   |                                                                |   |   |   |   |
| Sale of Series A convertible preferred stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |                                                 | -          |   |                                                                 |   | -      |                                                                |   |   | 225,000 |   |
| Cash from notes payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |                                                 | 55,030     |   |                                                                 |   | -      |                                                                |   |   | 270,030 |   |
| Net cash  provided by financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                 | 55,030     |   |                                                                 |   | -      |                                                                |   |   | 495,030 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                 |       |   |                                                                 |   |   |                                                                |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                 |       |   |                                                                 |   |   |                                                                |   |   |   |   |
| Net change in cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                                                 | (1,618     | )      |                                                                 |   | 1,450  |                                                                |   |   | 603 |   |
| Cash, beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                 | 2,221      |   |                                                                 |   | -      |                                                                |   |   | - |   |
| Cash, end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                                                    | 603        |   |                                                                 |   | 1,450  |                                                                |   | $ | 603 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |                                                 |       |   |                                                                 |   |   |                                                                |   |   |   |   |
| Supplemental disclosures:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |                                                 |       |   |                                                                 |   |   |                                                                |   |   |   |   |
| Cash paid during the period for interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $                                                    | -          |   |                                                                 |   | -      |                                                                |   | $ | - |   |
| Cash paid during the period for income taxes                                                                                             |   | $                                                    | -          |   |                                                                 |   | -      |                                                                |   | $ | - |   |

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| Level 1 | Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.                                              |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Level 2 | Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. |
| Level 3 | Pricing inputs that are generally observable inputs and not corroborated by market data.                                                                    |

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| ● | Of management’s responsibility for establishing and maintaining adequate internal control over its financial reporting; |
|---------|-------------------------------------------------------------------------------------------------------------------------------|

| ● | Of management’s assessment of the effectiveness of its internal control over financial reporting as of year end; and |
|---------|----------------------------------------------------------------------------------------------------------------------------|

| ● | Of the framework used by management to evaluate the effectiveness of the Company’s internal control over financial reporting.  Furthermore, it is required to file the auditor’s attestation report separately on the Company’s internal control over financial reporting on whether it believes that the Company has maintained, in all material respects, effective internal control over financial reporting. |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                  |   | July 14, 2009 |       |
|-------------------------------------------------------|--------|---------------|------------|
| Property & equipment                              |   | $             | 10,631,970 |   |
| Inventory available for sale                          |   |          | 5,150,000  |   |
|      Total assets            |   |          | 15,781,970 |   |
| Liabilities                                           |   |          | 1,868,749  |   |
|      Total acquisition price |   | $             | 3,473,364  |   |

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| Note Holder                               |   | Date of Issuance |   | Maturity Date |   | Interest Rate                       |   | Issue Amount |                                                      |
|-------------------------------------------|--------|------------------|--------|---------------|--------|-------------------------------------|--------|--------------|-----------------------------------------------------------|
| NWNRG/ADAB (1)                            |   | 4/27/2007        |   | 1/31/2010     |   |      9.25% |   | $            | 360,000                                                   |   |
| Shawn Bunce (2)                           |   | 5/29/2007        |   | 1/31/2010     |   | 12.00                               |   |         | 358,000                                                   |   |
| Bruce Blackwell (3)                       |   | 8/1/2008         |   | 1/31/2010     |   | 12.00                               |   |         | 220,000                                                   |   |
| Harborview Master Fund LP                 |   | 7/31/2009        |   | 11/30/2009    |   | 18.00                               |   |         | 215,000                                                   |   |
| Bruce Blackwell (4)                       |   | 5/1/2007         |   | 1/31/2010     |   | 12.00                               |   |         | 200,000                                                   |   |
| Marguerite Heiser (5)                     |   | 11/26/2007       |   | 10/31/2010    |   | 9.25                                |   |         | 11,000                                                    |   |
| Pat Brannen (6)                           |   | 2/15/2008        |   | 8/9/2008      |   | 9.50                                |   |         | 10,000                                                    |   |
|                                      |   |             |   |          |   |                                |   | $            |         1,374,000 |   |
| Accrued Interest                          |   |             |   |          |   |                                |   |         |      317,648                     |   |
| Penalties                                 |   |        |   |          |   |                                |   |         | 51,660                                                    |   |
| Total Principal, Interest & Penalties |   |             |   |          |   |                                |   | $            | 1,743,308                                                 |   |

| Note (5): | Marguerite Heiser entered into 3 separate promissory notes with Liquafaction; $39,600, $30,000 and $4,650.  The note for $39,600 was secured by equipment and was due on August 9, 2008.  When the principal balance and interest due was not paid as per the initial agreement, Marguerite Heiser enforced the security agreement and the equipment was sold to reduce her total notes payable balance.  A verbal agreement with Marguerite Heiser was entered into for $11,000 and is included in the notes payable balance at April, 30, 2010. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ● | Development of a 4 million gallon per year (mmgy) cellulosic ethanol production facility located in an area with a large availability of straw biomass. The project is attractive as the initial cellulosic facility due to the fact that the site for the proposed facility has existing ethanol components and equipment, initial design work for the project has already been completed, and certain permits for ethanol production already exist at the facility. These elements, combined with the goal of engineering and constructing a relatively small commercial scale production facility, provide the potential to complete the project and bring it online in as little as relatively quickly. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Development of a 60 mmgy cellulosic ethanol production facility to be located adjacent to an existing pulping facility. The project will leverage the existing mill assets for the handling of large quantities of wood biomass and the capability to produce pulp cellulose, and will utilize a proprietary technology to convert the cellulose to fermentable sugars. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 1. | To preserve and create jobs and to promote economic recovery                                                                                                        |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2. | To assist those most impacted by the recession                                                                                                                      |
| 3. | To provide investments needed to increase economic efficiency by spurring technological advances in science and health                                              |
| 4. | To invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits                                       |
| 5. | To stabilize State and local government budgets in order to minimize and avoid reduction in essential services and counterproductive state and local tax increases. |

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31.1

31.2

32.1

32.2

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|  Date: June 21, 2010  | EVOLUTION RESOURCES, INC.(Registrant)  |                                                                                 |
|---------------------------------|--------------------------------------------------|--------------------------------------------------------------------------------------|
|                            | By:                               |  /s/ Dennis G. McLaughlin                                                  |   |
|                            |                                             |  Dennis G. McLaughlin                                                      |   |
|                            |                                             |  President and Chief Executive Officer (Principal Executive Officer)  |   |